The Effect of Organizational Injustice on Employees’ Turnover Intention And Organizational Commitment and are They Moderated by Leadership Behavior? The Case of Oil and Gas Sector of Pakistan

Abstract

The purpose of this quantitative correlational research was to determine whether, in the oil and gas sector of Pakistan, there is a relationship between salary capping, bell curve appraisal, organizational retaliatory behavior, turnover intention, and organizational commitment, and whether any of these relationships are moderated by leadership behavior. This study was based on Adams’ equity theory of motivation. The research design was non-experimental and correlational, and the sample size was 363 employees working in the three largest public oil and gas companies in Pakistan. The data gathering tool used to carry out the current study consisted of an online survey instrument, and data analysis included confirmatory factor analysis, exploratory factor analysis, and structural equation modelling. The analysis showed a significant positive relationship between salary capping, bell curve appraisal, organizational retaliatory behavior, turnover intention, and the same three variables with organizational commitment among the O & G sector employees. In addition, the study found that perceived injustice in rewards, benefits, and appraisal was positively associated with turnover intentions and organizational commitment, and leadership behavior positively influences the relationship between the bell curve and turnover intention, as well as between salary capping, the bell curve, and organizational commitment. However, there is no interaction between salary capping and turnover intention, nor between organizational retaliatory behavior and turnover intention. Additionally, there is no interaction effect between organizational retaliatory behavior and organizational commitment. This finding is consistent with previous research and offers new insight into the relationship between turnover intention and organizational commitment in the context of the O & G sector of Pakistan.