The Impact of Employee Participation in Decision Making, Procedural Justice, and Job Satisfaction towards Turnover Intention

Abstraksi

This study discusses the role of employee participation in decision making to turnover intention by considering the mediation role of procedural justice and job satisfaction. The turnover intention may cost the organization (Kacmar, Andrews, Van Rooy, Steilberg & Cerrone, 2006). Employee participation in decision making refers to the level of authority that the employee has in the decision-making process (Cotton, Vollrath, Froggatt, Lengnick-Hall & Jennings, 1988). Employee participation in decision making has proven to be one of the most effective tools to motivate employee to achieve desired behavior (Vroom, 1964). Employees who participate in decision making, use their organizational rights (Mithcell, 1973). Therefore, all forms of communication channels within an organization must be effective because it is important for managers to gather various suggestions from organizational members in making decisions (Newman, Summer & Kirby 1973). This research uses descriptive conclusive research design with single-cross sectional method. Questionnaires were distributed to 185 respondents, ranging from staff to manager level using convenience sampling at a services industry. This research showed that the employee participation in decision making would be perceived as reducing their turnover intention if it was mediated by the procedural justice and job satisfaction. The employees would perceive the importance of participating in decision making if they have perceived that the procedural justice was established and they experienced job satisfaction, therefore they would reduce their turnover intention to leave the organization. This research found that ensuring employees that they have the opportunity to participate in decision making does not guarantee them from having turnover intention. Support from procedural justice within the company is needed as well as job satisfaction that is felt by the employees. With these two aspects, employees could participate well in making various decisions to reduce the turnover intention.