Decision-making participation eulogizes probability of behavioral output; job satisfaction, and employee performance (evidence from professionals having low and high levels of perceived organizational support)
| Published date | 10 September 2018 |
| Date | 10 September 2018 |
| DOI | https://doi.org/10.1108/WJEMSD-01-2018-0006 |
| Pages | 321-339 |
| Author | Imran Ahmed Shahzad,Muhammad Farrukh,Nagina Kanwal,Ali Sakib |
| Subject Matter | Strategy,Business ethics,Sustainability |
Decision-making participation
eulogizes probability of behavioral
output; job satisfaction, and
employee performance (evidence
from professionals having low and
high levels of perceived
organizational support)
Imran Ahmed Shahzad
Post Graduate Center, Limkokwing University of Creative Technology,
Cyberjaya, Malaysia and
Department of Graduate Studies, SKEMA, Sophia, France
Muhammad Farrukh
Faculty of Business & Management,
Cyberjaya University College of Medical Sciences, Cyberjaya, Malaysia, and
Nagina Kanwal and Ali Sakib
Post Graduate Center, Limkokwing University of Creative Technology,
Cyberjaya, Malaysia
Abstract
Purpose –The purpose of this paper is to test social exchange in the presence of perception about
organizational support theory.
Design/methodology/approach –Data have been collected through a questionnaire survey at a primary
level and were analyzed primarily by smartPLS.
Findings –Results show that all relationships amongstudy variables are highly responsive to the perception
about organizational support. Nonmonetary rewards create reciprocity of employee performance (EP), but
their magnitudes get affected where practioners need to pay specific attention on employee perception about
organizational discretionary arrangements.
Research limitations/implications –The sample size for this study was taken only 10 percent from the
top ten banking organizations and these organizations were selected from three big cities only including two
provincial capitals. Purposive/judgmental sampling technique is being used for the data collection purpose.
As moving out from these cities earning opportunities, langue and behaviors are different; so, the results
cannot be generalized to the entire country and other industries.
Practical implications –All managers who are intended and assigned for the increase in overall firms’
performances can achieve their targets and goals by focusing on decision-making participation (DMP)
through job satisfaction. Further to this, in order to increase the strength of exchange relationship where
firms can introduce DMP to increase employees’performance, perception about organizational support (if it is
to be focused) to its workers well-being can yield and induce employees to perform more.
Originality/value –This study ensures researchers not to forget to check the impact of perceived
organizational support during a discussion on social exchange and more specifically nonmonetary part of the
exchange. This study suggests the way to increase employee outcomes is by focusing on the employee
perception about the organizational care about them and involving them in DMP which does not involve any
monetary benefits and ultimately managers and organizations can concentrate on these points to have the
overall increase in EP, while keeping themselves in limited or available budgets/resources.
Keywords Perceived organizational support, Job satisfaction, Employee performance,
Decision-making participation, Organizational support theory, Personal construction theory
Paper type Research paper
World Journal of
Entrepreneurship, Management
and Sustainable Development
Vol. 14 No. 3, 2018
pp. 321-339
© Emerald PublishingLimited
2042-5961
DOI10.1108/WJEMSD-01-2018-0006
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/2042-5961.htm
321
Job satisfaction
and employee
performance
Introduction
Background
In order to satisfy human needs, society and organizations interact with each other, either
to earn profits by developing and selling products and services or to acquire compensation
against services they render. In doing so, it provides organizations to pool all its resources
including prudent use of human skills to fulfill the basic economic law. Centuries have
passed and this relationship is getting strength day by day. What employee and employer
expect from each other may differ and create conflict and it may resist the organization to
achieve its predefined goals, if handled poorly. In order to ensure that both employer and
employees are aligned in their expectations, humanization of the workplace seems
highly needed. Orally or verbally workers are well communicated about what they are
supposed to do, organizations remain unaware of the fact that how much hard work will
be done in performing responsibilities or how enthusiastically work will be carried on
while staying with organization. Further to this, organizations are always found in a need
to understand a bit of returns against investment on humanization of the workplace. This
is why the broad aim of this study was to identify that if organizations invest on
humanization of the working environment by involving them in decision-making, what
wouldbethereturnsforthefirm?
Resources are exchanged with a hope to receive back in the desired form by the donor
(Gouldner, 1960). Cropanzano and Mitchell (2005) explain this relationship as reciprocity of
expectation and social exchange. Social exchange theory by Homans (1974) worked out by
Peter Blau (1964) and social psychologists Thibaut and Kelley (1959), rooted in economics,
psychology and sociology, describes a series of interactions that are interdependent,
contingent on the actions of the social exchange partners. Employers’arrangements in this
connection usually comprise over two parts famously known as monetary and nonmonetary
rewards. Whereas monetary rewards are considered compulsory to be paid by many of the
external forces like regulatory authorities, nonmonetary rewards are usually considered as
discretionary, totally dependent on the firms’affordability and management’s visionary
spectrum. Thus, the second aim of this study was to investigate the return, as a reciprocity;
an organization can enjoy by investing in discretionary arrangements.
The theory of organization support or perceived organizational support (POS),
interchangeably used in the literature, explains the relationships between employee
intentional outcomes, like job satisfaction ( JS), organizational commitment, lower level of
turnover intention, etc., and employees’behavioral outputs, like job performance, etc. Thus,
the third aim of the paper was to identify whether POS strengthens and helps in conversion
of intentions into outcomes or not? And how social exchange gets into practice in the
presence of employees’perception about an organizational support. According to
(Eisenberger et al., 1986; Eisenberger et al., 1986; Shore and Shore, 1995; Rhoades and
Eisenberger, 2002; Bartram et al., 2014; Chiang et al., 2015) employees create a perception
about their employer (organization) about the extent to which their employer is caring about
employees’work efforts and well-being. This perception about organizational support help
them to exert the level of efforts for the achievement of organizational goals and objectives,
develop organizational commitment, build expectations that extra efforts will be rewarded,
decrease in turnover intentions, absenteeism, and put more efforts for the in-role and extra-
role that an employee performs.
Many of the studies in advanced countries highlighted the fruits of social exchange
between firms and employees. This study is unique in nature from three standpoints: first, it
is to be done in a developing country. Second, nonmonetary rewards either contribute
toward overall output or not. This study will also advise practioners that outcomes are to be
deemed to have any linkage with nonfinancial aspects of the workspace or not, in general.
Third, this study will check that when employees are having perception that organization is
322
WJEMSD
14,3
To continue reading
Request your trial