Relationship between Interactional Justice and Pay for Performance as an Antecedent of Job Satisfaction: an Empirical Study in Malaysia

Abstract

This study investigated the effect of pay for performance and interactional justice on job satisfaction using 132 usable questionnaires gathered from employees who have worked in seventeen GIATMARA centers in two states of Malaysia, that are Kuala Lumpur and Selangor (GIATMARAKLS). Outcomes of stepwise regression analysis showed that relationship between interactional justice and pay for performance features (i.e., adequacy of pay and participation in pay systems) positively and significantly correlated with job satisfaction. Further, this result confirms that interactional justice does act as a full mediating variable in the pay for performance models of the organizational sample. In addition, conclusion and implications of this study are elaborated.