Title: The effect of organisational justice across firm HR practices on employee job satisfaction and firm performance

Authors: Rubaiya Nadia Huda; Quazi Tafsirul Islam; Rifat Iqbal

Addresses: North South University, Dhaka 1229, Bangladesh ' North South University, Dhaka 1229, Bangladesh ' North South University, Dhaka 1229, Bangladesh

Abstract: The purpose of this study is to explore the relationship between organisational justice and firm performance through job satisfaction. The study investigates the relationship using the partial least squares (PLS) structural equation modelling (SEM) approach with SmartPLS (v.3.3.3) software. The sample includes 335 responses from employees working in the manufacturing and service sectors in Bangladesh. The data are collected through an online questionnaire. The study reveals that all three dimensions of organisational justice have a significant positive influence on job satisfaction. Furthermore, an increase in job satisfaction has a positive impact on firm performance. The study also examined the mediating effect of job satisfaction on the relationship between organisational justice and firm performance. Interactional justice indirectly impacts firm performance through job satisfaction. Additionally, IPMA revealed that managers need to concentrate more on procedural justice to improve job satisfaction. This paper advances the literature related to organisational behaviour by empirically showing the importance of organisational justice in improving a firm's performance through job satisfaction. The implications are that policymakers, employers and managers can improve job satisfaction and firm performance by addressing fairness and equity in the decision's outcome, process, and interpersonal treatment in the workplace.

Keywords: organisational justice; procedural justice; interactional justice; distributive justice; partial least squares; PLS; structural equation modelling; SEM; firm performance; job satisfaction; mediating effect; IPMA.

DOI: 10.1504/IJWOE.2024.136603

International Journal of Work Organisation and Emotion, 2024 Vol.15 No.1, pp.23 - 43

Received: 02 Jan 2022
Accepted: 01 Apr 2023
Published online: 08 Feb 2024 *