The influence of the supervisor’s transformational leadership and organizational justice on job satisfaction and organizational commitment of the employees of the bank for agriculture and agricultural cooperatives head office

Abstract

The objectives of this research were (1) To study the influence of supervisor’s transformational leadership and organizational justice on job satisfaction of employees of BAAC head office; (2) To study the influence of supervisor’s transformational leadership, organizational justice and job satisfaction on organizational commitment of employees of BAAC head office. (3) To validate the causal relationship model of supervisor’s transformational leadership and organizational justice on job satisfaction and the organizational commitment of employees of BAAC head office with empirical data. The variables in this investigation consisted of the following: supervisor’s transformational leadership and organizational justice consist as the independent variables; job satisfaction as mediating variable; and organizational commitment as dependent variable. The researcher used quantitative methods which involved empirical research. The instrument of research was a questionnaire used to collect data from 399 employees from BAAC head office. The statistics used in data analysis were frequency, mean, percentage and structural equation model analysis. It was found that the model was consistent with the empirical data. Goodness of fit measures were found to be Chi-square (2) = 122.230; Degree of freedom = 150; p-value = 0.952; Relative Chi-square (2/df) = 0.815; Goodness of Fit Index (GFI) = 0.980; Adjusted Goodness of Fit Index (AGFI) = 0.938; Comparative Fit Index (CFI) = 1.000; Standardized Root Mean Square Residual (SRMR) = 0.020 and Root Mean Square Error of Approximation (RMSEA) = 0.000. It was also found that: 1. Supervisor’s transformational leadership had positive and direct influence on employee’s job satisfaction. 2. Supervisor’s transformational leadership had positive and direct influence on organizational commitment. 3. Organizational justice in the dimension of distributive justice had positive and direct influence on job satisfaction. 4. Organizational justice in the dimension procedural justice had positive and direct influence on job satisfaction. 5. Organizational justice in the dimension of distributive justice had positive and direct influence on organizational commitment. 6. Job satisfaction had positive and direct influence on organizational commitment. Based on these findings, the researcher recommends that BAAC head office more fully focus on supervisor’s transformational leadership, organizational justice in the dimensions of distributive justice and procedural justice to deepen the job satisfaction and organizational commitment.