The Importance of Ethical Environment to Organizational Performance in Employment at Will States

Abstract

This article highlights the importance of ethical environment in enhancing organizational performance. It is vital that organizations set ethical standards for their employees alongside providing an environment that fosters trust and commitment, provides leadership, and creates a high quality of workforce to improve organizational performance. To study the impact of ethical environment on organizational performance, we employ elements from André de Waal's high-performance organization (HPO) framework. Data for this study come from a national survey conducted in four states in the United States, which are classified as at-will employment states: Oregon, Utah, Washington, and Florida. We find evidence that ethical environment plays an important role in determining organizational performance. This is particularly important in the context of at-will employment, where state governments are facing the challenge to maintain employee commitment while improving organizational performance.

Research Capability, Job Satisfaction, and a Multiple Approach of Competitiveness: A Conceptual Framework for University Kuala Lumpur, Malaysia

“…This is in line with the argument that employee satisfaction and organisational performance are correlated and a strong relationship is expected between them (Ostroff, 1992). As empirically supported, motivating work design could positively affect organisational performance (Barrick, et al, 2015;Hijal-Moghrabi, et al, 2015). Moreover, Vermeeren et al (2014) found that job satisfaction positively affects organisational performance.…”

“…Barrick, Thurgood, Smith, & Courtright, 2015;Hijal-Moghrabi, Sabharwal, & Berman, 2015;Ostroff, 1992;Zutshi & Sohal, 2004;Vermeeren, Kuipers, & Steijn, 2014). Zutshi and Sohal (2004) found that involving employees in the planning of the environmental management systems benefitted the corporations in enhancing morale building within the corporation, and fulfilling the customer expectations due to considering employees as stakeholders.…”

Moderating Role of Ethical Climates on HRM Practices and Organizational Performance: A Proposed Conceptual Model

“…Based on the above stated justification the researcher intended to employ HRM practices as Independent variables. While on the EC as the moderating variable, previous studies found EC as a strong predictor of organizational performance (Hijal-Moghrabi et al, 2015;Manroop et al, 2014), others prior studies tested EC as moderator on the relationship between job satisfaction and organizational commitment in Asian context (Zehir et al, 2012), African context (Nafei, 2015) result of the previous studies explained positive moderating effect. Based on the above empirical evidences, a proposed research framework for this study illustrating the moderating effect of EC on the relationship between HRM practices and organizational performance is depicted in Figure 1.…”

“…In other words, EC influences both decision making as well as performances in an organization (Martin & Cullen, 2006). Previous studies found EC as a good predictor on organizational performance (Hijal-Moghrabi et al, 2015;Manroop, Singh, & Ezzedeen, 2014).…”

“…Similarly, Antony and Bhattacharyya (2010) debated that organizational performance is all about the process in which organizational success is measured with regards to the value it creates and deliver to internal as well as external clients. Even though a narrow meaning of organizational performance mainly focuses on efficiency-and Effectiveness-related matters, a comprehensive explanation covers, efficiency and effectiveness, equity, responsiveness, fairness, managerial expectations employee satisfaction, and the use of performance measurement and performance evaluation (Hijal-Moghrabi, Sabharwal, & Berman, 2015).…”