EFFECT OF PERCEIVED ORGANIZATIONAL JUSTICE ON EMPLOYEES ORGANIZATIONAL CITIZENSHIP BEHAVIOR: THE CASE OF STAFFS OF COMMERCIAL BANKS IN GURAGHE ZONE, ETHIOPIA

Abstract

Multifaceted problems directly and indirectly hinder employee organizational citizenship behaviors (OCB) in the Ethiopian banking industry, further exacerbating the sector's challenges. The purpose of this study was to investigate the effect of perceived organizational justice and demographic factors on organizational citizenship behavior. The research utilized both descriptive and explanatory research designs. Also, both quantitative and qualitative approaches were used in this study. The population under study was employees of commercial banks of Guraghe Zone. Both primary and secondary data sources were used in this study. The required data were collected using semi structured questionnaires from a total of 186 respondents in Guraghe zone. The study employed descriptive statistics, correlation analysis, and econometrics model method of analysis. The study revealed that procedural justice was generally viewed positively (mean= 4.025), though employees felt that managers could improve in addressing staff issues before making decisions. Distributive justice also received positive ratings (mean =4.054), suggesting satisfaction with reward allocation. Interactional justice scored the lowest (mean =4.383), indicating potential issues in how employees perceive they are treated by management. Organizational citizenship behavior was evaluated through altruism, conscientiousness, civic virtue, and sportsmanship. Altruism and conscientiousness were strong, with employees showing willingness to help colleagues and maintain diligence. Civic virtue showed moderate engagement in organizational activities, while sportsmanship was evident in maintaining positive attitudes. The multiple liner regression model suggests that demographic factors like sex (p behavior. The output of the study gives valuable information for banks in the Guraghe Zone to enhance employee morale and organizational performance through targeted improvements in justice perceptions and organizational citizenship behavior.