Non-Family Employees: Levels of Job Satisfaction and Organizational Justice in Small and Medium-Sized Family and Non-Family Firms

Keywords: Family business, Job satisfaction, Organizational justice

Abstract

The purpose of this paper is to explore differences between non-family employees of family firms and employees of non-family firms regarding their levels of job satisfaction. Moreover, focusing on family firms, we assess the impact of non-family employees’ perceptions of organizational justice on their levels of job satisfaction; we also seek to understand which dimensions of job satisfaction are most affected by the employees’ perceptions of organizational justice. The empirical evidence is provided by a sample of 205 Portuguese employees (98 non-family employees of family firms and 107 employees of non-family firms), working in small and medium-sized privately-owned enterprises. The findings reveal that non-family employees of family firms do not differ from employees of non-family firms regarding their levels of job satisfaction. Furthermore, it was found that, in family firms, there is a positive influence of the perceptions of organizational justice on the job satisfaction levels, in particular regarding to the satisfaction with the benefits and with the supervision.

References

Adams, J. S. (1963). Towards an understanding of inequity. The Journal of Abnormal and Social Psychology, 67 (5), 422.

Alderson, K. (2011). Understanding the Family Business. New York: Business Express Press.

Alegre, I., Mas-Machuca, M., & Berbegal-Mirabent, J. (2016). Antecedents of employee job satisfaction: Do they matter?.Journal of Business Research, 69 (4), 1390-1395.

Ambrose, M. L. & Schminke, M. (2007). Examining justice climate: Issues of fit, simplicity, and content. In Dansereau, F., & Yammarino, F. J. (Eds.), Multi-level issues in organizations and time (pp. 397-413). Bingley, West Yorkshire:.Emerald Group Publishing Limited.

Arnold, J., Robertson, I. T., & Cooper, C. L. (1991). Work psychology: understanding human behaviour in the workplace. London: Pitman.

Azoury, A., Daou, L., & Sleiaty, F. (2013). Employee engagement in family and non-family firms. International Strategic Management Review, 1 (1-2), 11-29.

Bateman, T. S., & Organ, D. W. (1983). Job satisfaction and the good soldier: The relationship between affect and employee “citizenship”. Academy of management Journal, 26 (4), 587-595.

Barnett, T., Kellermanns, F.W. (2006). Are we family and are we treated as family? Nonfamily employees’ perceptions of justice in the family firm. Entrepreneurship Theory and Practice, 30, 837–854.

Beer, M. (1964). Organizational size and job satisfaction. Academy of Management Journal, 7(1), 34-44.

Blau, P. (1964). Exchange and power in social life. New York: Wiley.

Boles, J. S. (1996). Influences of work‐family conflict on job satisfaction, life satisfaction and quitting intentions among business owners: The case of family‐operated businesses. Family Business Review, 9 (1), 61-74.

Boling, J. R., Pieper, T. M. & Covin, J. G. (2015). CEO Tenure and Entrepreneurial Orientation Within Family and Nonfamily Firms. Entrepreneurship Theory and Practice, 40 (4), 891-913. https://doi.org/10.1111/etap.12150

Brayfield, A. H., & Rothe, H. F. (1951). An index of job satisfaction. Journal of applied psychology, 35 (5), 307.

Chua, J., Chrisman, J. & Sharma, P. (1999). Defining family business by behavior, Entrepreneurship Theory and Practice, 23 (4), 19-39.

Chua, J.H., Chrisman, J.J., & Bergiel, E.B. (2009). An agency theoretical analysis of professional family firms. Entrepreneurship Theory and Practice, 33, 355-372.

Classen, N., Carree, M., Van Gils, A., & Peters, B. (2014). Innovation in family and non-family SMEs: an exploratory analysis. Small Business Economics, 42 (3), 595-609.

Cohen-Charash, Y. & Spector, P. E. (2001). The role of justice in organizations: A meta-analysis. Organizational behavior and human decision processes, 86 (2), 278-321.

Colquitt, J. A. (2001). On the Dimensionality of Organizational Justice: A Construct Validation of a Measure. Journal of Applied Psychology, 86, 386-400.

Colquitt, J. A., Conlon, D. E., Wesson, M. J., Porter, C. O. & Ng, K. Y. (2001). Justice at the Millenium: A Meta-Analytic Review of 25 Years of Organizational Justice Research. Journal of Applied Psychology, 86 (3), 425. https://doi.org/10.1037//0021-9010.86.3.425

Colquitt, J., Lepine, J. A., Wesson, M. J., & Gellatly, I. R. (2011).Organizational behavior: Improving performance and commitment in the workplace. New York: McGraw-Hill Irwin.

Cook, J. D., Hepworth, S. J., Wall, T. D. & Warr, P. B. (1981). The experience of work: A compendium and review of 249 measures and their use. London: Academic Press.

de Vries, M. F. K. (1993). The dynamics of family controlled firms: The good and the bad news. Organizational dynamics, 21 (3), 59-71.

Deephouse, D. L. & Jaskiewicz, P. (2013). Do Family Firms Have Better Reputations Than Non-Family Firms? An Integration of Socioemotional Wealth and Social Identity Theories. Journal of Management Studies, 50 (3), 337-360. https://doi.org/10.1111/joms.12015

Dundar, T., & Tabancali, E. (2012). The relationship between organizational justice perceptions and job satisfaction levels. Procedia-Social and Behavioral Sciences, 46, 5777-5781.

European Family Businesses (2012). Family Business Statistics. Retrieved from http://www.europeanfamilybusinesses.eu/uploads/Modules/Publications/pp---family-business-statisticsv2.pdf

Family Firm Institute, Inc. (2015). Global Data Points. Retrieved from https://www.ffi.org/page/globaldatapoints.

Faragher, E. B., Cass, M., & Cooper, C. L. (2013). The relationship between job satisfaction and health: a meta-analysis. In Cooper, C (Ed.), From Stress to Wellbeing Volume 1 (pp. 254-271). London: Palgrave Macmillan.

Ferreira, J., Fernandes, R., Santos, E., & Peiró, J. (2010). Contributo para o estudo psicométrico da versão portuguesa do Cuestionario de Satisfacción Laboral S20/23. Psychologica, 2 (52), 7-34.

Gersick, K. E., Gersick, K. E., Davis, J. A., Hampton, M. M. & Lansberg, I. (1997). Generation to generation: Life cycles of the family business, Brighton, MA: Harvard Business Press. ‎.

Gómez-Mejía, L.R., Cruz, C., Berrone, P. & De Castro, J. (2011). The bind that ties: socioemotional wealth preservation in family firms. The Academy of Management Annals, 5 (1), 653-707.

Greenberg, J. (1990). Employee theft as a reaction to underpayment inequity: The hidden cost of pay cuts. Journal of Applied Psychology, 75 (6), 667–667. https://doi.org/10.1037/0021-9010.75.6.667

Harari, M. B., Thompson, A. H., & Viswesvaran, C. (2018). Extraversion and job satisfaction: The role of trait bandwidth and the moderating effect of status goal attainment. Personality and Individual Differences, 123, 14-16.

Heller, D., & Watson, D. (2005). The Dynamic Spillover of Satisfaction Between Work and Marriage: The Role of Time and Mood. Journal of Applied Psychology, 90 (6), 1273-1279.

Ilies, R., Fulmer, I. S., Spitzmuller, M., & Johnson, M. D. (2009). Personality and citizenship behavior: The mediating role of job satisfaction. Journal of Applied Psychology, 94 (4), 945.

Judge, T. A., & Bono, J. E. (2001). Relationship of core self-evaluations traits self-esteem, generalized self-efficacy, locus of control, and emotional stability with job satisfaction and job performance: A meta-analysis. Journal of applied Psychology, 86 (1), 80.

Khamisa, N., Oldenburg, B., Peltzer, K., & Ilic, D. (2015). Work related stress, burnout, job satisfaction and general health of nurses. International journal of environmental research and public health, 12 (1), 652-666.

Khan, K., Abbas, M., Gul, A., & Raja, U. (2015). Organizational justice and job outcomes: Moderating role of Islamic work ethic. Journal of Business Ethics, 126 (2), 235-246.

Khanin, D., Turel, O., & Mahto, R. V. (2012). How to increase job satisfaction and reduce turnover intentions in the family firm: The family–business embeddedness perspective. Family Business Review, 25 (4), 391-408.

Kristensen, N., & Westergaard-Nielsen, N. (2007). Reliability of job satisfaction measures. Journal of Happiness Studies, 8 (2), 273-292.

Leung, K., Smith, P. B., Wang, Z., & Sun, H. (1996). Job satisfaction in joint venture hotels in China: An organizational justice analysis. Journal of International Business Studies, 27 (5), 947-962.

Lien, Y., Teng, C. & Li, S. (2015). Institutional reforms and the effects of family control on corporate governance. Family Business Review, 29 (2), 174-188.

Locke, E. A. (1969). What is job satisfaction?. Organizational behavior and human performance, 4 (4), 309-336.

López-Cabarcos, M. Á., Machado-Lopes-Sampaio-de Pinho, A. I., & Vázquez-Rodríguez, P. (2015). The influence of organizational justice and job satisfaction on organizational commitment in Portugal’s hotel industry. Cornell Hospitality Quarterly, 56 (3), 258-272.

Lu, H., While, A.E. & Barriball, K.L. (2005). Job satisfaction among nurses: a literature review. International Journal of Nursing Studies, 42 (2), 211.

Lu, L., Lu, A. C., Gursoy, D., & Neale, N. R. (2016). Work engagement, job satisfaction, and turnover intentions: A comparison between supervisors and line-level employees.International Journal of Contemporary Hospitality Management, 28 (4), 737-761.

Masterson, S. S., Lewis, K., Goldman, B. M., & Taylor, M. S. (2000). Integrating justice and social exchange: The differing effects of fair procedures and treatment on work relationships. Academy of Management journal, 43 (4), 738-748.

Mathieu, J.E. & Zajac, D.M., (1990), A review and meta-analysis of the antecedents, correlates, and consequences of organizational commitment, Psychological Bulletin, 108 (2), 171-194.

Meier, O. & Schier, G. (2016). The early succession stage of a family firm: exploring the role of agency rationales and stewardship attitudes. Family Business Review, 29 (3), 256-277.

Meliá, J. L. & Peiró, J. M. (1989). La medida de la satisfacción laboral en contextos organizacionales: el Cuestionario de Satisfacción S20/23. Psicologemas, 3 (5), 59-74.

Mobley, W. H. (1977). Intermediate linkages in the relationship between job satisfaction and employee turnover. Journal of applied psychology, 62 (2), 237.

Morck, R. & Yeung, B. (2003). Agency problems in large family business groups. Entrepreneurship Theory & Practice, 27 (4), 367-382.

Nadiri, H., & Tanova, C. (2010). An investigation of the role of justice in turnover intentions, job satisfaction, and organizational citizenship behavior in hospitality industry. International journal of hospitality management, 29 (1), 33-41.

Peiró, J. M. & Prieto, F. (1996). Tratado de Psicologia del trabajo. Madrid: Editorial Síntesis.

Pérez-González, F. (2006). Inherited control and firm performance. American Economic Review, 96 (5), 1559-1588.

Pimentel, D., Scholten, M., & Couto, J. P. (2017). Profiling family firms in the autonomous region of the Azores. Revista portuguesa de estudos regionais, 46, 91-107.

Pimentel, D., Couto, J. P. & Scholten, M. (2017). Entrepreneurial Orientation in Family Firms: Looking at a European Outermost Region. Journal of Enterprising Culture, 25 (4), 441-460. https://doi.org/10.1142/S0218495817500169

Pimentel, D., Scholten, M. & Couto, J. P. (2018). Fast or slow? Decision making styles in small family and nonfamily firms. Journal of Family Business Management, 8 (2), 113-125. https://doi.org/10.1108/JFBM-02-2017-0007

Porter, L. W., Steers, R. M., Mowday, R. T., & Boulian, P. V. (1974). Organizational commitment, job satisfaction, and turnover among psychiatric technicians. Journal of applied psychology, 59 (5), 603.

Poutziouris, P. (2006). The UK Family Business PLC Economy. London: Institute for Family Business.

Rego, A (2000). Justiça organizacional: Desenvolvimento e validação de um instrumento de medida. Psicologia, 14 (2), 285-307.

Rego, A. & Souto, S. (2004). A percepção de justiça como antecedente do comprometimento organizacional: um estudo luso-brasileiro. Revista de administração contemporânea, 8 (1), 151-177.

Ruizalba, J., Soares, A., Arán, M. V., & Porras, J. L. G. (2016). Internal market orientation and work-family balance in family businesses. European Journal of Family Business, 6 (1), 46-53.

Rutherford, M. W., Kuratko, D. F. & Holt, D. T. (2008). Examining the Link between “Familiness” and Performance: Can the F–PEC Untangle the Family Business Theory Jungle?. Entrepreneurship Theory and Practice, 32 (6), 1089-1109.

Schröder, E., Schmitt-Rodermund, E. and Arnaud, N. (2011). Career choice intentions of adolescents with a family business background. Family Business Review, 24 (4), 305-321.

Sharma, P. (2004), “An overview of the field of family business studies: current status and directions for the future”, Family Business Review, Vol. 17 No. 1, pp. 1-36.

Sia, L. A., & Tan, T. A. G. (2016). The Influence of Organizational Justice on Job Satisfaction in a Hotel Setting. DLSU Business & Economics Review, 26 (1). 17-29.

Sieger, P., Zellweger, T., Nason, R. S., & Clinton, E. (2011). Portfolio entrepreneurship in family firms: a resource‐based perspective. Strategic Entrepreneurship Journal, 5 (4), 327-351.

Spector, P. E. (1997). Job satisfaction: Application, assessment, causes, and consequences (Vol. 3). Thousand Oaks: Sage publications.

Sy, T., Tram, S., & O’Hara, L. A. (2006). Relation of employee and manager emotional intelligence to job satisfaction and performance. Journal of vocational behavior, 68 (3), 461-473.

Van Saane, N., Sluiter, J. K., Verbeek, J. H. A. M., & Frings‐Dresen, M. H. W. (2003). Reliability and validity of instruments measuring job satisfaction - a systematic review. Occupational medicine, 53 (3), 191-200.

Villalonga, B. & Amit, R. (2006). How do family ownership, control and management affect firm value?. Journal of financial Economics, 80 (2), 385-417.

Vroom, V. H. (1964). Work and Motivation. New York: Wiley

Wanous, J. P., Reichers, A. E., & Hudy, M. J. (1997). Overall job satisfaction: how good are single-item measures?. Journal of applied Psychology, 82 (2), 247.

Yean, T. F. & Yusof, A. A. (2016). Organizational justice: A conceptual discussion. Procedia-Social and Behavioral Sciences, 219, 798-803.

Zellweger, T. M. & Astrachan, J. H. (2008). On the emotional value of owning a firm. Family Business Review, 21 (4), 347-363.

Published
2019-03-01
How to Cite
Pimentel, D. (2019). Non-Family Employees: Levels of Job Satisfaction and Organizational Justice in Small and Medium-Sized Family and Non-Family Firms. European Journal of Family Business, 8(2), 93-102. https://doi.org/10.24310/ejfbejfb.v8i2.5178
Section
Research Paper (SI)