Effect Of Organizational Commitment And Organizational Justice On Employee Performance With Work Stress As An Intervening Variable In The General Department Of PT Indonesia Asahan Aluminum (Inalum) Kuala Tanjung North Sumatra

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Effect of Organizational Commitment and Organizational Justice on Employee Performance with Work Stress as an Intervening Variable in the General Department of PT Indonesia Asahan Aluminum (Inalum) Kuala Tanjung North Sumatra

Introduction

In today's fast-paced business environment, employee performance is a crucial factor in determining the success of an organization. Many companies have turned to various strategies to improve employee performance, including enhancing organizational commitment and organizational justice. However, the impact of these factors on employee performance is still a topic of debate among researchers. This study aims to investigate the effect of organizational commitment and organizational justice on employee performance, with work stress as an intervening variable, in the General Department of PT Indonesia Asahan Aluminum (Inalum) in Kuala Tanjung, North Sumatra.

Background

Organizational commitment refers to the degree to which employees feel bound to their organization, often characterized by a sense of loyalty and dedication. On the other hand, organizational justice refers to the perceived fairness and equity of treatment by the organization. Both factors have been shown to have a significant impact on employee performance, but the relationship between them is complex and multifaceted. Work stress, which is a common phenomenon in many organizations, can also affect employee performance, either positively or negatively.

Methodology

This study employed an intervening analysis method, involving 84 respondents as samples chosen through the purposive sampling method. The data used was primary data processed using SPSS software. The study was conducted at the General Department of PT Indonesia Asahan Aluminum (Inalum) in Kuala Tanjung, North Sumatra, in 2020.

Results

The results of this study showed that organizational commitment did not have a significant influence on employee work stress. This indicates that even though employees feel bound by the organization, the stress levels they experience are not influenced by these commitments. Conversely, organizational justice is proven to have a positive and significant influence on work stress. This shows that employees who feel justice in organizations tend to experience lower stress, which in turn can affect their performance.

In terms of employee performance, research found that organizational commitment had a positive but not significant effect. This can mean that even though employees feel bound and have a high commitment to the company, this does not directly improve their performance. On the other hand, organizational justice has a positive and significant influence on employee performance, shows that when employees feel treated fairly, they tend to show better performance.

Interestingly, work stress has an insignificant negative effect on employee performance. This shows that although stress can interfere, there are other factors that can support employee performance even though they experience stress. In addition, this study also noted that organizational commitment had no significant effect on employee performance through work stress. Meanwhile, organizational justice has a positive and significant effect on performance through work stress, shows that feelings of justice can help reduce stress and at the same time improve employee performance.

Discussion

The findings of this study provide important insights for the management of PT Inalum and other organizations. The existence of organizational justice is very vital in creating a healthy and productive work environment. For this reason, companies must pay attention to justice factors and create a supportive culture, so that employees feel valued and motivated. Thus, both organizational commitment and justice can contribute to improving employee performance effectively.

Conclusion

In conclusion, this study highlights the importance of organizational justice in improving employee performance. The findings suggest that employees who feel treated fairly tend to experience lower stress and show better performance. On the other hand, organizational commitment, although positive, does not have a significant effect on employee performance. The study also notes that work stress has an insignificant negative effect on employee performance, but organizational justice can help reduce stress and improve performance.

Recommendations

Based on the findings of this study, the following recommendations are made:

  1. Organizational Justice: Companies should prioritize organizational justice by creating a fair and equitable work environment. This can be achieved by implementing policies and procedures that promote fairness and transparency.
  2. Supportive Culture: Companies should create a supportive culture that values and motivates employees. This can be achieved by providing opportunities for growth and development, recognizing and rewarding employees, and promoting a positive work-life balance.
  3. Employee Commitment: Companies should focus on building employee commitment by promoting a sense of loyalty and dedication among employees. This can be achieved by providing opportunities for growth and development, recognizing and rewarding employees, and promoting a positive work-life balance.
  4. Work Stress: Companies should take steps to reduce work stress by providing a healthy and productive work environment. This can be achieved by implementing policies and procedures that promote work-life balance, providing opportunities for relaxation and recreation, and promoting a positive work environment.

Limitations

This study has several limitations that should be noted. Firstly, the study was conducted in a single organization, which may limit the generalizability of the findings. Secondly, the study used a cross-sectional design, which may not capture the dynamic nature of organizational commitment and organizational justice. Finally, the study relied on self-reported data, which may be subject to biases and limitations.

Future Research Directions

Future research should aim to replicate this study in other organizations and settings to increase the generalizability of the findings. Additionally, future research should explore the dynamic nature of organizational commitment and organizational justice by using longitudinal designs. Finally, future research should investigate the impact of organizational commitment and organizational justice on employee performance in different cultural and organizational contexts.

References

  • [List of references cited in the study]

Appendix

  • [Appendix materials, including additional tables and figures]

Table of Contents

  1. Introduction
  2. Background
  3. Methodology
  4. Results
  5. Discussion
  6. Conclusion
  7. Recommendations
  8. Limitations
  9. Future Research Directions
  10. References
  11. Appendix
    Frequently Asked Questions (FAQs) about the Effect of Organizational Commitment and Organizational Justice on Employee Performance with Work Stress as an Intervening Variable

Q: What is organizational commitment, and how does it affect employee performance?

A: Organizational commitment refers to the degree to which employees feel bound to their organization, often characterized by a sense of loyalty and dedication. While organizational commitment can have a positive effect on employee performance, the findings of this study suggest that it does not have a significant influence on employee performance.

Q: What is organizational justice, and how does it affect employee performance?

A: Organizational justice refers to the perceived fairness and equity of treatment by the organization. The findings of this study suggest that organizational justice has a positive and significant influence on employee performance, indicating that employees who feel treated fairly tend to show better performance.

Q: What is work stress, and how does it affect employee performance?

A: Work stress refers to the emotional and psychological strain experienced by employees in the workplace. The findings of this study suggest that work stress has an insignificant negative effect on employee performance, indicating that although stress can interfere, there are other factors that can support employee performance even though they experience stress.

Q: How can organizations promote organizational justice and reduce work stress?

A: Organizations can promote organizational justice by creating a fair and equitable work environment, implementing policies and procedures that promote fairness and transparency, and providing opportunities for growth and development. To reduce work stress, organizations can provide a healthy and productive work environment, promote work-life balance, and provide opportunities for relaxation and recreation.

Q: What are the implications of this study for organizations?

A: The findings of this study suggest that organizations should prioritize organizational justice and create a supportive culture that values and motivates employees. By doing so, organizations can improve employee performance, reduce work stress, and promote a positive work environment.

Q: What are the limitations of this study?

A: This study has several limitations, including the use of a single organization, a cross-sectional design, and self-reported data. Future research should aim to replicate this study in other organizations and settings to increase the generalizability of the findings.

Q: What are the future research directions for this study?

A: Future research should aim to replicate this study in other organizations and settings to increase the generalizability of the findings. Additionally, future research should explore the dynamic nature of organizational commitment and organizational justice by using longitudinal designs. Finally, future research should investigate the impact of organizational commitment and organizational justice on employee performance in different cultural and organizational contexts.

Q: What are the practical implications of this study for employees?

A: The findings of this study suggest that employees who feel treated fairly and experience lower stress tend to show better performance. Employees can promote organizational justice by speaking up when they experience unfair treatment, providing feedback to their managers, and advocating for policies and procedures that promote fairness and transparency.

Q: What are the practical implications of this study for managers?

A: The findings of this study suggest that managers should prioritize organizational justice and create a supportive culture that values and motivates employees. Managers can promote organizational justice by implementing policies and procedures that promote fairness and transparency, providing opportunities for growth and development, and recognizing and rewarding employees.

Q: What are the implications of this study for HR professionals?

A: The findings of this study suggest that HR professionals should prioritize organizational justice and create a supportive culture that values and motivates employees. HR professionals can promote organizational justice by implementing policies and procedures that promote fairness and transparency, providing opportunities for growth and development, and recognizing and rewarding employees.