The relationship of occupational safety management practices and leadership on employee performance: the mediating role of organisational justice

Abstract

The oil and gas industry are risky based on the rate of the high number of accidents recorded within this industry. The high risk hinders the employee performance in this industry. The literature review showed that occupational safety practices and leadership is critical for reducing the accident rate and improving employee performance. Previous studies focused on safety performance and organizational performance while few examined the employee performance in public sector in developing countries. In addition, previous studies focused on occupational safety practices and the role of leadership in manufacturing, educational, and small and medium enterprises in developed countries. Further, organisational justice as a variable received less attention in determining the relationship between occupational safety management practices and leadership on employee performance. Applying social exchange, organisational justice, and transformational leadership theory, this study aims to examine the relationship between occupational safety management practices (OSMP) and transformational leadership (TL) with employee performance (EP). This study also examines the relationship between organisational justice (OJ) and EP in the Iraqi oil and gas industry. Based on a literature review, this research proposed a significant relationship between OSMP, TL, and EP. This research also proposed a significant relationship between OJ and EP. In addition, it proposed OJ as mediating variable in determining the relationship between OSMP and TL with EP. A quantitative research design was adopted for this study. The study population comprised employees of the Oil Companies in Iraq. A purposive sampling technique was deployed to collect data through questionnaire, which was subjected to a validation and reliability analysis in a pilot study prior to the field data collection. A total of 409 respondents were successfully surveyed. The data was analysed using Smart Partial Least Square (Smart PLS). The findings showed that OSMP and TL have significant positive relationship with EP. The result also showed that dimensions of OSMP, such as safety investment, management commitment, and safety reward, have significant relationship with EP. Dimensions of TL, such as inspirational motivation, idealized influence, and intellectual stimulation, have a significant positive relationship with EP. OJ showed positive relationship with EP and a partially mediated relationship between OSMP and TL on EP. Improving OSMP and TL levels in oil and gas companies in Iraq will enhance the performance of employees. Management is advised to continuous support on enhancing occupational safety and rewarding the orientation toward safety behaviour.