Organizational Justice as a Mediator for Transformational Leadership and Work Outcomes

Abstract

This study examined the mediating role of distributive and procedural justice in linking transformational leadership and job satisfaction, organizational commitment and turnover intention. Survey data was consisted of 370 employees from 60 institutions of Islamic microfinance in Central Java, Indonesia. The empirical tests indicated that transformational leadership has significant effect on procedural and distributive justice. Also, distributive and procedural justice has significant effect on all the three work outcomes. Furthermore, distributive justice was found to have mediation effect in the relationship between transformational leadership and organizational commitment and job satisfaction, but not for turnover intention. However, the study did not find any significant mediating effect of procedural justice on the relationship between transformational leadership and job satisfaction and turnover intention, but significant on organizational commitment .