INTERNATIONAL JOURNAL OF SCIENTIFIC & TECHNOLOGY RESEARCH VOLUME 9, ISSUE 03, MARCH 2020 ISSN 2277-8616 4012 IJSTR©2020 www.ijstr.org THE RELATIONSHIP OF ORGANIZATIONAL JUSTICE ON JOB SATISFACTION AND JOB PERFORMANCE IN BANKING COMPANY Yuswanto Hery Purnama, Heru Kurnianto Tjahjono, Syeh Assery, Nur Rachman Dzakiyullah Abstract— This study aims to predict the relationship among organizational justice, job satisfaction, and job performance in the banking sector in Indonesia. The population of this study was all managers of a Bank at Central Java Indonesia. Data were collected by using questionnaires that distributed to 100 managers and being analyzed statistically using Partial Least Square (PLS). Results found that Distributive Justice has a positive and significant effect on Job Satisfaction, but Procedural Justice and Interactional Justice have no effect on Job Satisfaction. It is also found that Job Satisfaction has a positive and significant effect on Job Performance. This study implies that managers related have to play more attention for Distributive Justice to advance their Job satisfaction and Job Performance. Index Terms— organizational justice, job satisfaction, job performance, banking sector. ——————————  —————————— 1 INTRODUCTION Previous studies on organizational justice found that employee’s perceptions on organizational justice have a strong influence in determining job satisfaction and performance [1]. Organizational justice has a positive effect on employee’s performance and job satisfaction in banking industry [2]. Organizational justice consists of three forms, which are distributive justice, procedural justice, and interactional justice [3]. Interactional justice and distributive justice have a positive effect on job satisfaction, while procedural justice has no effect on job satisfaction[4]. Organizational justice is the whole perception of something fair at the workplace. Greater organizational size will affect injustice gap between managers and employees [5]. It still needs more exploration on the relationship among organizational justice towards job satisfaction and job performance. This research question was revealed on how the effect of organizational justice to job satisfaction and job performance? 2 LITERATURE REVIEW Distributive justice is one of the main factors affecting job satisfaction [1], [6], [7]. Distributive justice also has a significant impact on outcomes regarding opportunities for promoting personal work content and employee satisfaction[8], [9]. Distributive justice related with satisfaction of payment, one of the components of job satisfaction [10]. In a study conducted in the banking sector to identify factors that have a significant influence on customer-oriented behaviour and employee involvement in their work, it was found that employees were more supportive in meeting customer’s needs when they realized that the organization was fair in the distribution of awards [11]. (H1: Distributive justice has a positive effect on employee job satisfaction). Procedural justice related to job satisfaction and existing literature supports this high lead relationship [12], [13]. Justice in the process of implementing and maintaining the law and order situation helps increase public trust [14]. If employees feel the decision making process is fair and just, their works improve rapidly and they become increasingly cooperative [15]. Decisions that are taken fairly tend to please employees more than when decisions are taken in an unfair way that results in dissatisfaction [16]. Dynamics of job satisfaction can be well explained by procedural fairness [17]. Other studies show that if organizational processes and procedures are considered fair by employees, they tend to feel more satisfied, more willing to accept procedural resolutions, and more likely to foster higher organizational commitment [18]. When an organization is encountered with high employee turnover, procedural justice can play an important role in employee satisfaction [19]. (H2: Procedural justice has a positive effect on job satisfaction). There is a study found a significant relationship between international justice and employee job satisfaction [20]. There was a level of interaction injustice that was felt among employees, which tended to place a higher emphasis on their interactions with superiors [21]. Participation in stopping employee’s payments gives them a positive perception of international justice felt at the institution [22]. This, in turn, increases the job satisfaction job [23]. Individuals who maintain caring and positive relationships with their co- workers are more likely to be satisfied at their work [24]. (H3: Interactive justice has a positive impact on employee job satisfaction). ————————————————  Yuswanto Hery Purnama, Department of Management, Universitas Islam Indonesia, Yogyakarta, Indonesia. Email: yuswanto.purnama@gmail.com  Heru Kurnianto Tjahjono, Department of Management, Universitas Muhammadiyah Yogyakarta, Indonesia, Email: herukurnianto@umy.ac.id  Syeh Assery, Department of Management, STIE Widya Wiwaha, Yogyakarta, Indonesia, Email: assery@stieww.ac.id.  Nur Rachman Dzakiyullah, Faculty of Information and Communication Technology, Universiti Teknikal Malaysia Melaka (UTeM), Malaysia. E-mail: nurrachmandzakiyullah@gmail.com /P031710013@student.utem.edu.my