Contact of Communal Ethical Practices and Personality Ethical Behavioral Organizational Job Pleasure

Table of contents

1. Introduction

ccording to a survey of Transparency International, 2010, Pakistan was not rated very high on the formulation and implementation of ethical standards and is apparently corrupt public sector in the world. Ethical practices of organizations do play an important role among all stakeholders. The rising demand from stakeholders such as employees, customers, shareholders, and the society for corporations to act morally responsible way, can no longer be overlooked. Organizational ethics is not a new concept and have been investigated since 18 th century, (Strategic Direction, 2002). Ethical practices of Organization and their leaders are crucial.

A positive employee perception toward their organizational ethical values leads to employee satisfaction (Koh and Boo, 2001;Labs, 1997). Individual ethics also have substantial effects on the institutional performance, employee satisfaction, employee performance, and organizational commitment. However, consistency between organizational and individual ethics improves employee's satisfaction. Through ethical practices organizations get many advantages from their stakeholders like customer loyalty, employee satisfaction, stockholder attraction and the favor of government. Organizational ethics and individual ethics are important causes determining intra-organizational relationship and employee's perceptions (Valentine.et al., 2011).

Examining the effects of organizational and individual ethics on employee satisfaction is an important research area. Study investigates individual's behavior when they face ethical issues in organizations. So, individual perception toward these ethical issues is the major considerations of recent research. However main objective of this study is to examine impacts of organizational and individual ethics on job satisfaction in local context. Such influences therefore, are tested, using a set of data collected from a sample of managers working in different local companies with reference to Pakistani context.

Employees perceived that their organization sustain moral behavior. This perception of employees thus, increases job satisfaction. Nevertheless, a little bit work has been done on this scenario in Pakistan. Therefore this study is conducted to fill this gap by examining such relationship and. In addition study also investigates the impact of individual ethics on job satisfaction. This study contributes body of knowledge to previous research in the same research era (Trevino et al., 2006, p.963, Elango. et al., 2010). Prior studies investigated the effects of organizational and individual ethics on ethical intention. Present study examines these effects on job satisfaction which add-up further contributions with previous study. Elc et al., (2009) presented similar research model in which they observed impacts of three types of organizational ethical climate on job satisfaction. Previous literatures enable us to make clear understanding about the influences of these factors on employee satisfaction Study provides the managerial implications for top management, policy makers as well as government to enhance employee motivation through ethical practices in Pakistan. Findings of the study can be used to enhance organizational ethical practices, ethical decision making, and ethical activities of the leaders, which strongly influence employee's satisfaction.

The remaining sections of this study are arranged as follows: The subsequently section explains literature review and research hypotheses. The following sections include the methodology and statistical findings. The final section provides relevant discussion and managerial implications.

2. II.

Literature Review Franken (1973) has sketched two major hypothetical views in ethical dilemmas-that are known as deontological and teleological theories. Deontological perspective represents that "what is morally right'' is reliant upon the characteristics of behavior itself. On the other hand, the teleological viewpoint highlights the outcomes of a behavior, when evaluating whether the behavior is ethical. Therefore, a behavior is right, if it perceived for creating batter over bad that some other option and is unethical, if it does not do so.

Past researches show strong evidences that organizational ethics significantly influence job satisfaction (e.g. Traynor, 1999 and Valentine, et al;2011). This study looks at these associations by two important theories of ethics which have revealed ethics as "a process by which members of the society appraise their actions form a moral values view point". Cognitive dissonance theory" discusses all those efforts which are made to minimize individual differences in an environment (Festinger, 1942). Some other researchers also defined same types of theories (Heider, 1958;Goetz man and Pales, 1997;Gerald et al., 1998). Another point of view, often discussed in literature is the "justice theory" (Weiss, 2003) -distributive justice and procedural justice. This theory indicates that organizational justice affects employee's perception towards their job related behaviors. Distributive justice may best be represented of as a teleological thought of justice due to its focus on employee outcomes, whereas procedural justice is best known as deontological thought as of its focal point on the means of decisions making process (Viswesvaran et al., 1998).

According to Dailey & Kirk (1992), both procedural and distributive justice strongly relate to employee satisfaction. Lind's (1992) investigated that if an employee perceives his organization to be ethical, also likely perceived that he is fairly treated by his organization. These positive perceptions of employee's increase job satisfaction. Literatures indicate that ethical environment, organization support for ethical climate, and association between career success and moral behaviors have significant impact on job satisfaction. Study focuses on the impact of organizational ethics (top management support, ethical climate and relationship between career success and ethical behavior) and individual ethics on job satisfaction.

Job satisfaction is an attitude which employees show towards their organization and behave "what they like or dislike" on the job, (Koh & Boo, 2001). According to Locke (1976) In organizations where higher authority provides adequate support for ethical behavior, employees are expected to respond positively to management decisions, even if those decisions are contrary to their determination of what is ethical (Trevino, 1986) According to "cognitive dissonance theory", the in consistency between employee's behaviors and the ethical values of top management, do lead to lower job satisfaction. On the other hand "justice theory" described that fair management provide adequate support for ethical behavior of its employees, this will result higher job satisfaction (Clay-Warner et al., 2005). Festinger, (1942), Dozier & Miceli (1985) Schwepker (1999), investigated that top management support for ethical behavior is positively influences job satisfaction. As Koh et al., (2001) postulated in a survey that ethical behaviors of top management positively influence employee satisfaction. Thus, hypothesis is proposed to test whether management support for moral behavior has any influence on the job satisfaction of Pakistani managers: H2: Top management support for ethical behavior has significant impact on job satisfaction Lufthansa and Stajkovic's (1999) conducted an empirical research on the bases of reinforcement theory. There study examined that there are three types of reinforcement factors such as: money, feedback and social recognition which encourage individual behavior. Therefore, in an institution where moral behaviors are closely connected with career success, the ethical behaviors of employees are strengthened. As the organization recognizes ethical practices, provides fair reward system and ethical career opportunities which does match with those intrinsically valued by employees, this will result greater job satisfaction. Cognitive dissonance theory also revealed that if organizations reinforce unethical behaviors, the result is definitely lower job satisfaction.

Correspondingly, from the justice theory view point, if organization do not promote or reward those employees who do not compromise their ethical values, will feel impatience that leads to lower the job satisfaction. According to Vitel and Davis (1990b) and Viswesvaran and Deshpande (1996) there is positive association between ethical behavior & job satisfaction. Schwepker (1999) also revealed that there is positive relationship between moral behavior and career success. Furthermore, Koh et al., (2001) has proved that relations among ethical behaviors and career success increase employee satisfaction.

Based on literature, the study conjures up a hypothesis, a positive relationship between organizational ethics and job satisfaction is probable. That is, stronger organizational ethical behaviors are anticipated to be linked with job satisfaction.

H3: Higher the organizational ethical behavior and career success, higher will be the job satisfaction.

3. IV.

4. Individual Ethics

Individual ethic is separate philosophy from business ethic which reveals that individual believes about morality, "right or wrong''. Individual ethics play pivotal role in human personal as well as official life. Individual ethics are based on environmental factors and may be derived from parents, grandparents, friends, colleagues, societies or cultures. Posner and Schmidt (1993) revealed "value congruencies" for both individual, and organization, he proved that consistency between individual ethics and organizational ethics has positive impact on ethical decision making which increases job satisfaction, but individual's value effects strongly. Adkins et al., (1996) also investigated that "Value congruence" positively influences employee's satisfaction. Individuals have their own values, norms, believes, and attitudes that are influenced by culture, religious, and environmental forces. These forces affect their choice of perceptions. Values have attained much attention of researchers because, these direct to positive behavior which may or may not obey the rules of ethical standards of an organization (Ostrowsky et al., 2009;Trevin?o et al., 2006;) According to Sims and Kroeck (1994); and Sims & Keon (1997), that individual prefers high ethical congruence, while Ambrose et al., (2008) examined that these congruencies positively influence employee satisfaction. Individual ethical values are important element that strongly influences employee's productivity as well as organizational performance (Schein, 2004). A study describes that values also affect employee satisfaction (Valentine et al., 2002;Watrous et al., 2006Cazier et al., 2006Alas, 2009). According to Liedtka (1988) ''value congruence'' refers to as internal consistency of person's and institutional values. Liedtka emphasized to resolve the internal difference, either difference to the individual or difference between person and institution. Individuals with strong internal consistency are more determined to resolve ethical conflict and to make ethical decisions than individual with less internal consistency. Schwpker, (1999) investigated that generally employees do not like inconsistency between their personal moral value and organizational values. H4: There is positive relationship between individual ethic and job satisfaction.

V.

5. Methodology a) Research Sample

The sample of the study was taken from Ph.Ds and M.Phil scholars enrolled management sciences department at two major institutions in Pakistan. They are working full-time in public and private sector Descriptive statistics (Mean and S.D) are used to build up abstract of the respondents and to sum up the variables. Also, reliability coefficients are calculated to check consistency of individual ethics, and organizational ethics, to job satisfaction. To better understand the associations among the variables; correlation analysis is carried out to generate the correlation matrix. Lastly, to measure hypotheses, regression analysis is used.

6. VI.

7. Measurement

To measure individual ethical behaviors study follows that Peters (1972) scale (with some minor changes) that has been developed to observe value and attitude, concerning social responsibility. Modified Peter's scale has been used by Paul et al., (1997) and Meager & Schuyte (2005) to measure individual ethical attitudes in organizations. This study made some minor changes in modified scale by Elango et al., (2010). Since the main aims of the present research were toward individual's ethical behavior in business market with reference to Pakistan. Many of original scale items were deleted to put emphasis on local business situation of recent survey, resulting in a scale with 9 questions. The cronbach, s alpha is 0.71. All items were keep on a 5-point lykert scale, range from 1=''Extremely Disagree'' to 5 = ''Extremely Agree,''.

Three items included to measured top management proceedings towards ethical practices, designed by Hunt et al., (1984). The reliability of these three item s is 0.833. Similarly study adapted three items (out of seven) to measure relationship between career success and ethical behavioral by sing scale, developed by Hunt et al., (1984), which was further modified by Elango et al., (2010). Only small changes we have made in these scales due to cultural differences. The alpha for these three items is .789. Third component of organizational ethics; ethical climate was measured in terms of Egoistic, benevolent and principled. Items to measure three components of ethical climate were adapted from original ethical climate scale designed by Cullen et al., (1993), which was adapted by Elango et al., (2010). Only 8 items were included after little modifications. The alpha is 0.806. All items were measured on five point scale, ranging from "Extremely disagree" to "Extremely agree".

Four dimensions (supervision, compensations, promotion and, colleague's behaviors) of job satisfaction were measured by using scales developed by various research scholars (Vitel & Davis, 1990 registered as scholars, as was the case with this sample. In order not to sensitize the scholar to the exact temperament of the research topic, rather we informed that the aim of this study was to get ''the judgment of administration and management on organizational ethical behavior for a research scheme on ethical decision making by the organizations.'' The respondents were informed that the data is confidential and assured promised that the study data would only be used for educational research. Nevertheless, the constraints of such agreement were that we could not investigate for non-response bias. Sample demographic data, is presented in table1.

scale series from 1=: extremely disagree" to "5=extremely agree" which has been adapted by different researchers The alpha is 0.825.This study used SPSS 18.0 to calculate the mean, standard deviation, cronbach,s, alpha and hierarchical regression models to confirm hypothesized associations.

8. Table-2 explains descriptive statistic and correlation between variables designed in this study.

There is a positive and significant relationship (r = .226, p<.01) between the Top management support and job satisfaction. There is a positive but insignificant relationship (r = .143, p >.01) between ethical climate and job satisfaction. Career success and ethical behavior have positive and significant correlation (r = 0.300, p <.01) with job satisfaction. Similarly relationship between individual ethics and job satisfaction is also positive and significant (r = 0.334, p < 0.01). Likewise, the independent and dependent variable were somewhat correlated with each other and with demographic variable. The impact of demographic factors on job satisfaction was examined by regression analysis. The values of R 2 in table 5 shows that 3.8% of the variation in job satisfaction is accounted for by the demographic factors with (F=22.7%, p<0.081). Beta values of 0.203 (p<0.01) shows that there is a positive and significant impact of age on job satisfaction. Similarly, beta values of 0.205 (p<0.748) show that there is a positive but not significant impact of gender on job satisfaction, while, beta values of -0.033 (p<0.672) show that there is a negative but not significant impact of duration on job satisfaction. (1998). They observed that this types of result might have been recognized to cultural dissimilarities. The authors speculated that the in significant results might have been attributed to cultural differences as the fundamental descriptions were based on the literature from American samples. It is possible that the Pakistani managers are accepting the ethical decisions of top management more passively than other managers.

Similarly, beta values of 0.231 (p<0.01) shows that there is a positive & significant impact of ethical climate on job satisfaction. Result supports our hypothesis 1. Beta values of 0.087 (p<0.07) shows that there is a positive but not significant impact of association between career success and ethical behavior on job satisfaction (Koh et al., 2001). Our last hypothesis, individual ethics strongly influence job satisfaction, is proved with a beta value of 0.132(p<0.005) which shows positive and significant relationship between job satisfaction and individual ethics (Valentine et al., 2002;Watrous et al., 2006Cazier et al., 2006Alas, 2009).

9. VII.

10. Discussion and Conclusions

In an environment where organizations are facing ethical issues, their ethical practices play an important role with respect to all stakeholders. This study is conducted to examine influences of individual and, organizational ethic on job satisfaction. In spite of ethics significance, this is the first study with respect to local context that efforts to recognize associations of employee's behavior with ethical practice and individual ethical behavior.

Result stated that there is a negative and insignificant relationship between top management support for ethical behavior and job satisfaction. Such relations have been founded by the study of Viswesvaran et al. (1998). They observed that this types of result might have been recognized to cultural dissimilarities. The authors speculated that the insignificant results might have been attributed to cultural differences as the fundamental descriptions were based on the literature from American samples. It is possible that the Pakistani managers are accepting the ethical decisions of top management more passively than other managers.

This study holds up a strong positive correlation as founded between the top management support for ethical behavior, association between career success and ethical behavior and individual ethical behaviors with job satisfaction. The results revealed that stronger the individual ethics, top management support for ethical behavior and relationship between careers success and ethical behavior, higher will be the job satisfaction. Therefore our three hypotheses: H1, H3 and H4 are accepted due to significant positive associations founded by the result. Result does not support hypothesis 2 because of negative relationship. Thus, the findings of this study mirror those of Adkins et al., (1996) As individual ethics literature propose one potential enlightenment for this result could be that, when employees have strong ethical value, they are likely to think about their relationship with their ethical organization in terms of societal exchange rather than monetary exchange and they are possibly to give in return by helping the organization in a variety of ways (Organ, 1990). Thus, individual ethical behavior promotes going above and beyond the call of duty and job satisfaction. The recent results also authenticate the previous conclusions of Joseph & Deshpanday (1997).

From literature review, it can be seen that organizational ethics influence job satisfaction which in turn encourage positive job attitudes.

This study adds the body of knowledge in business ethics in two ways. First, the proven linkage between organizational, individual ethics and job satisfaction point out that business ethics care about moral concerns. Many of the respondents make an attempt to notify the reality and assist their organizations to make moral judgment. Second, the quantitative data representing reasons of ethical differences that would be excellent resources from which additional research can be made. The results of this research propose a contributory association between an organizational, individual ethics, and job satisfaction. Eventually, these facts recommend that how to resolve ethical differences and further ethical practice in organizations. These conclusions demonstrated that ethical problems which practitioners face in organizations are frequent. More than fifty percent of the respondents responded that they have suffered ethical variances in their organizations. They indicated that job satisfaction was strongly influenced by ethical grief in organizations. The consequences showed that the ethical issue needs to be critically addressed in institutions generally and in at Pakistan specifically.

11. VIII. Limitations and Future Research

Recent research has some restrictions due to the cultural factors, purposes of research, geographic factors, and business environment related issues. Sample of the study used MS, phd scholars with managerial acquaintance and significant national coverage as a substitute to confine genuine ethical employee's attitudes. Despite the fact that the using MS, PhD scholars as sample, was reliable in earlier literatures for investigative survey such as this one. Scholars in classrooms are expected to imitate on moral concerns more intentionally than they may in genuine administrative observations or to convey imprecise answers due to societal reactions bias.

The present research paid attention on national business ethical matters. Whereas the national setting, its cultural background, customs, and traditions of the nation have larger collisions outside the classroom surroundings which could ever repeat. Since, this research sample was small therefore, a prudent and comprehensive study framework was required, restricting the addition of probable determinants recognized in existing researches, (Ford & Richaedson (1994 For further investigations, a more purposeful research will be helpful. In addition, the degree to which, job satisfaction is linked with individual and organizational ethical behavior match to real ethical behavior, is not easy to judge. Therefore, research designed specially at this question is required to move this matter further ahead. Additional variables that could affect job satisfaction such as ethics training programs, religious and organizational ethics, should be added in future researches. Future research might be conducted on moderating variable such as leadership or demographic as age, gender, income or mediating factors. Future research should also examine mediating role of job satisfaction by adding employee's outcome, such as turnover intention, organizational commitment etc. In addition this research can be conducted in other context to examine these relationships.

Figure 1.
; Loe et al., 2000; O'Falon & Buterfield 2005; Trevino et al., 2006). They proposed many of factors that influence organizational, and individual ethical behavior.
Figure 2. Pay?A
My organization pays better than competitors. ? My pay is adequate considering the responsibilities I have. ? My fringe benefits are adequate Promotion ? Promotions are infrequent in my organization. ? If I do a good job, I am likely to get promoted. ? I am satisfied with my rate of advancement Coworkers ? My colleagues provide me enough support ? In my organization, when I ask people to do things, the job gets done. ? I enjoy working with the people in my organization. ? In my organization, I work with responsible people. Supervisor ? The managers I work for are competent. ? My supervisors listen to me. ? Management treats me fairly a) Organizational Ethics i. Top Management support ? Top management in my organization does not accept unethical behaviors of employees ? Unethical behavior of managers are discouraged if they are for personal gain ? Unethical behavior of managers are discouraged if they are for corporate gain ii. Ethical climate a. Egoistic ? My organization emphasizes the importance of furthering its interests ? My organization does not expects from employee to be fair with its interest ? In my organization, all decision are made just for business interest ? My organization can compromise on its business interest b. Benevolent ? My organization generally concern with employee welfare. ? All decisions in my organization are made best interest of everyone c. Principled ? Employees in my organization strictly obey the rules and procedures ? People who avoids organization rules and procedures are discouraged iii. Association between ethical behavior and career success ? Successful manager in my organization are more ethical than unsuccessful managers. ? Successful managers in my organization withhold information that is unfavorable to their self-interest. ? Ethical behaviors is important for success in my organization b) Individual Ethics ? Maximizing profits should be the single most important goal of business ? I would probably quit a company that I felt was unethical in the market ? I am not concerned about the company decision, when I know that I can do nothing ? Nation's problem should be important for business even if there are no rewards for the business ? Company product standards can be higher, as long as it does not break the local law ? I feel that a company's only major responsibility is to its shareholders Global Journal of Management and Business Research Volume XV Issue X Version I Year 2015 ( ) Contact of Communal Ethical Practices and Personality Ethical Behavioral Organizational Job Pleasure ? Government has no right to ask companies to do anymore than what it has contracted ? Government has no right to ask companies for any kind of assistance for social reasons
Figure 3. A
Year 2015
Volume XV Issue X Version I
( )
Global Journal of Management and Business Research
Figure 4. Table 1 :
1
Figure 5.
Contact of Communal Ethical Practices and Personality Ethical Behavioral Organizational Job Pleasure
organizations and having greater than one years of job
experience. Students in management and business
administration programs have been presented as
alternative to indicate management views in many past
studies (Bekun et al., 2005; Vitel & Hidalgo, 2006)
because they have an assured degree of personal
maturity, life familiarity, and work know-how. Literature
has shown that these scholars can provide efficiently as
substitute in managerial decision-making, behavioral,
marketing research and in consumer behavior studies
respectively (Ramous, 1986; Khera &Benson, 1970;
Burnett & Dune, 1986; Ennis et al., 1972). In fact, Ph Ds
Year 2015 Organizational Ethical Behavior: and M. Phil scholars frequently have management experience and are working as managers even they are
28 1. Top Management Support 2. Ethical Climate Job Satisfaction
Volume XV Issue X Version I Demographic factors Gender: Male 3. Carrier Associated between Percentage 92.00% Success & Ethical Behavior Individual Ethical Behavior
( ) A Female Age: 08.00%
Global Journal of Management and Business Research 20>30 30>40 40>60 Experience: 01>02 02>05 55.15% 39.70% 05.15% 41.18% 49.26%
fourth dimension comprises four items measured on a
© 2015 Global Journals Inc. (US) 1
Figure 6. Table 2 :
2
Variables Mean S.D 1 2 3 4 5 6 7
1.Age 1.3842 .56345
2.Duration 1.7966 .86825 .219 **
3.Top management support 3.2900 .91287 .191 * .015
4.Ethical climate 3.1172 .68804 -.015 -.035 .162 *
5.Career success & ethical behavior 3.4821 .85048 -.100 .034 .310 ** .552 **
6.Individual ethics 3.0094 .63717 -.061 -.031 .264 ** .503 ** .636 **
7.Job satisfaction 3.3125 .62321 -.219 ** .172 * .226 ** .143 .300 ** .334 **
**. Correlation is significant at the 0.01. *. Correlation is significant at the 0.05.
Figure 7. Table 3 :
3
R2= 0.038 Î?"R2 = 0.038 F 2.277, df = 3, sig of F changes p=0.081
Note: SE= Standard error; ?= Standardized beta
Job satisfaction= dependent variable
Figure 8. Table 4 :
4
Dependent Variable: JS
R2= 0.120 Î?"R2 = 0.120 F =5.847, df = 4, sig of F changes p=0.00
Note: SE= Standard error; ?= Standardized beta
The statistical analysis used for testing four
hypotheses, is based on stepwise hierarchical
regression models as shown in
Figure 9. Table 4 .
4
Year 2015
29
Model (Const) Age Gender Duration SE .207 .086 .119 .056 ? .203 .025 -.033 T 14.473 2.597 .322 -.424 Sig. .000 .010 .748 .672 Volume XV Issue X Version I ( )
Model Top management support (Const) Ethical climate Career success & ethical behavior Individual ethics SE .269 .060 .090 .071 .075 ? -.028 .231 .087 .132 T 7.869 -.312 2.309 .888 1.720 Sig. .000 .755 .010 .076 .005 Global Journal of Management and Business Research
© 2015 Global Journals Inc. (US)
Note: AContact of Communal Ethical Practices and Personality Ethical Behavioral Organizational Job Pleasure independent variable with (F=58.47%, p<0.001). Beta values of.-0.028 (p<0.755) shows that there is a negative and insignificant association between job satisfaction and top management support for ethical behavior. So our second hypothesis is rejected by the result. Such relations have been founded by the study ofViswesvaran et al.
Figure 10.
Figure 11. ?
References Références Referencias
subordinate work value congruence and
IX. subordinate performance: a pilot study', journal of Appendix -Measurement of Constructs Job Satisfaction business and psychology 12(2), 205-217. Global Journal of Management and Business Research Volume XV Issue X Version I Year ( ) A 2015
© 2015 Global Journals Inc. (US) 1
Note: 1
1
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Notes
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Date: 2015-05-15