TOPIC EFFECT OF MANAGERIAL COACHING ON JOB PERFORMANCE

FOREIGN TRADE UNIVERSITY HO CHI MINH CITY CAMPUS *** GROUP RESEARCH PROJECT TOPIC: EFFECT OF MANAGERIAL COACHING ON JOB PERFORMANCE Lecturer: Mrs Le Hang My Hanh GROUP 10 Member's name Student ID Nguyễn Thị Thảo Hằng 2011156065 Nguyễn Thị Thu Hà 2011155140 Nguyễn Phương Anh 2011155032 Đinh Đức Huy 2011155203 Phạm Hồ Phú Huân 2011155191 Dương Việt Đức 2011156057 Ho Chi Minh City, April 25th, 2021 TABLE OF CONTEN Abstract .1 I Introduction II Literature review .4 2.1 Managerial coaching 2.2 Job performance 2.3 Managerial coaching and job performance III Metholody and data .7 3.1 Proposed research model 3.2 Procedures and sample 3.3 Measures IV Results 11 4.1 Reliability Statistics 11 4.2 Exploratory factor analysis (EFA) 11 4.3 The Rotated Component Matrix 12 4.4 Ordinary Least Squares regression 14 4.4.1 Analysis of Variance (ANOVA test) .14 4.4.2 Coefficients table 14 V Conclusion .16 REFERENCES 177 LIST OF FIGURES Figure 1: The proposed research model LIST OF TABLES Table 3.1: Predictor variable table Table 3.2: Criterion variable table Table 4.1: Cronbach’s Alpha Test Table 4.2: KMO and Bartlett's Test of Independent variables Table 4.3: KMO and Bartlett's Test of Dependent variables Table 4.4: Rotated Component Matrixa Table 4.5: Component Matrix Table 4.6: Model Summaryb of Ordinary Least Squares regression Table 4.7: ANOVA table Table 4.8: Coefficientsa table Abstract The need for improving job performance of employees is increasing rapidly Therefore, managerial coaching is considered as an effective ways to achieve this objective Despite this, few empirical research has looked at the impact of managerial coaching on employee performance Our study using the a four-dimensional framework of coaching of McLean et al.,2005, which include: open communication, team approach, value given to people, and acceptance of ambiguity, and then tests the impact of these four elements on job performance Using the OLS model to test the hypothesis that management coaching behavior have positive effects on employee performance, the results shows that only Acceptance of ambiguity is statistically significant Keywords: performance, managerial coaching, managerial coaching behavior, job performance I Introduction An organization refers to a group of people involved in pursuing defined objectives, and individual job outcomes would contribute to organizational achievement Employers need employees to get jobs done with the highest efficiency; thus, employees should be enhanced their job performance to achieve that objective Higher job performance is when employees are doing their tasks well, which is a motivation for improving morale in the workplace As indicated, employees who aren't motivated to get the job done can lower the result of an entire department Moreover, employees with ineffective job performance who directly approach customers may make them feel that the company is apathetic to their needs Otherwise, with better performance, he/she can boost the company’s earning potential through dedicated care for customers These two aforementioned motives are the reasons why the need to enhance job performance is so essential To keep up with the rapid change in the nature of work and also a more dynamic environment in the workplace, organizations need to focus on enhancing the role of managerial behavioral skills in shaping behavior and attitude to employees When the impacts of manager behaviors have been more noticeable, managerial coaching has also been drawing more attention since it could be used as a tool to navigate people toward the collective performance orientation of the organization (Ellinger et al., 2011; Gilley et al., 2010; Kim et al., 2013; Hsu et al., 2019, Maamari, 2021) Since then, managerial coaching has become widely recognized as one of the most desired behaviors for a learning company and effective management and leadership (Ellinger et al 2003; Hargrove 2008) Managerial coaching is focused on practice one-to-one through giving employees open questions, active listening, and feedback related to job issues Managerial coaching is commonly seen as an effective technique for enhancing employee performance through negotiations toward labor’s perception as well as a consultant while approaching difficulties Managerial coaching has grown in popularity in enterprises during the last two decades (Park 2007) In the annual learning and development survey claimed that eighty percent of UK managers are expected by their organizations to coach their employees This is same with the results of Wang (2011) in China, Kim (2014) in Korea According to Longenecker and Neubert (2005), employees also want more coaching from their supervisors because feel that such coaching leads to personal growth and organizational competition There are many studies that have shown that there is a direct and indirect positive relationship between managerial coaching and job performance Effective coaches can inspire team members to accomplish tasks and promote active learning, thereby improving team task performance (Hackman and Wageman, 2005) Besides, when employees actively acquire knowledge from managerial coaching, their individual performances are improved (Ribeiro et al., 2020) Maamari et al., (2021) also emphasized in their study that the internal changes in employees' behavior and cognition as a result of coaching, such as creativity, motivation, commitment, learning, and OCB, as well as the impact of all of these internal behavioral and cognitive changes on performance Business managers and organizations later recognized the benefits of having a coach (Evered and Selman, 1989) Employees who were given coaching seemed to be happier, while motivated employees who were given coaching were seen to be more productive Coaching of employees by managers became related with increased productivity and revenues in firms inside practice circles Coaching has become a component of a company manager's role, and it has been acknowledged as an essential performance management and training tool in modern organizational literature for those firms that have adopted it Following the four-dimensional framework of coaching of McLean et al (2005), our study also separates managerial coaching skills into four characteristics: (1) maintaining effective and open communication, (2) focusing on teams, (3) valuing people over tasks, and (4) accepting the ambiguous nature of working environments in order to enhance employees' development and improve their performance Realizing the importance of improving job performance in enterprises, this study examines the influence of coaching on job performance through the four factors mentioned above 4 II Literature review 2.1 Managerial coaching Coaching could be defined as a management philosophy that aims to change the relationship between managers and employees (Ellinger et al., 2003a), or in short, it is often called ‘managerial coaching’ According to Maharani & Widiartanto (2017), managerial coaching is an activity that helps employees gain necessary knowledge and skills from their coaching superiors so as to develop themselves professionally In detail, managerial coaching is understood as an employee’s process consisting of three main steps, starting from learning, then discovering their ambitions and finally receiving guidance from the managers (Ellinger et al., 2003; Ellinger et al., 2011; Whitmore, 2010) The term ‘coaching’ used here has been distinguished from counseling and mentoring, when managerial coaching is defined as a one-to-one approach to achieve more specific goals of personal learning, behavioral adjustment and retention (Day, 2001; Zhang, 2008) Based on the findings of Levinson (1995), employees may feel grateful and even turn more of their attention to the organization’s growth after receiving organizational support through timely management and leadership practices Ellinger et al (2003) also discovered the differences between managerial coaching and other traditional management strategies While coaching focuses on building a connective, effective relationship between managers and subordinates, traditional management methods have the two characteristics: bureaucratic and directive Therefore, managerial coaching has become one of the most important human resource development strategies of many companies in the long run (Hackman & Wageman, 2005) 2.2 Job performance Siswanto (2002) stated that job performance is the progress made by an employee when carrying work-related responsibilities assigned to him According to Campbell (1990), job performance is the behavior of a person with the objective of the organization’s benefits Murphy (1989) identified that there is the problem of which organizational employees are running for achieving goals just because they find it easier to achieve goals in comparison with paying attention to their behaviors Therefore, the focus of work-related performance should be put on the behavior of the employees To broaden the scope, Rivai (2004) mentioned that performance is actual behaviors of employees in accordance with their role in the company Porter and Lawler (1968) also had the similar discovery that job performance refers to employee’ working effectiveness and is often regarded as the final result of role achievement at the workplace 5 2.3 Managerial coaching and job performance The relationship between managerial coaching and performance has been discussed by many scholars According to Fournies (1987), Orth, Wilkinson & Benfari (1987), performance improvement is always regarded as one of the potential outcomes of managerial coaching In Whitmore (1994)’s research, the ways of managerial coaching enhancing the performance of employees are demonstrated in detail One of the coaching ways is to discuss job-related problems with employees, followed by possible solutions to solve these issues More specifically, workers could be asked open questions to examine their awareness towards the situation and be urged to conduct a solution to the given problem To support this view, Hargrove (1995) also emphasized that conversational style in coaching helps the employees deal with hard work-related issues better, resulting from the thorough discussion about the characteristics of the situation and the possibility of the upbringing solutions Ellinger (1999) discovered a link between managerial coaching and improved employee performance as well as expense-reducing strategies, leading to an improved organizational climate Ellinger, Ellinger and Keller (2003) conducted empirical research to discover the relationship between managerial coaching behavior and employee performance and found it positive McLean et al (2005) also identified four factors of coaching behavior which contribute to the enhancement of the work-related performance, consisting of open communication, team approach, valuing employees over task, and ambiguous characteristics of the workplace Heslin et al (2006) asserted that the most important purpose of coaching is to ensure the personal and professional development of organizational employees as well as the improvement of work-related performance Managerial coaching requires a committed, attentive approach which motivates the workers of the organization (Boyatzis & Howard, 2006) In a prior study, Har (2008) used a survey research study in Malaysia to analyze the impact of managerial coaching on employee performance and turnover intentions Following the examination, it was determined that there was a positive association between employee commitment and the negative reaction in the event of job turnover intentions During their investigation, Park, Yang and MacLean (2008) discovered a similar link Elmadag, Ellinger, and Franke (2008) found that a positive stimulus was created on employee dedication to service excellence Hamlin, Ellinger, and Beattie (2009) identified some major skills to enhance the effectiveness of managerial coaching application, including asking questions technique, active listening, collaboration, decision-making, effective communication and support in the working place The effect of managerial coaching on employee performance progression over time was explored by Liu and Batt (2010) It was determined according to an individual's level of performance gains is proportional to the amount of coaching he or she got When managers who coached those people leveraged group incentives, the changes were more noticeable This feature was clearer in Liu's research on employee job performance in various Chinese firms Researchers observed that supervisors with self-consciousness and the capacity to lead from the front had a significant influence on work performance; moreover, the above-mentioned attributes, as well as physiological assistance and vocational growth, had a favorable influence on employee performance In a study conducted by Kalkavan and Katrinli (2014), the direct impacts of managerial coaching on employee work performance, job satisfaction, role ambiguity, and satisfaction with managers were once taken into investigation The research was focused on Turkey's Insurance Industry Final results of the study revealed that managerial coaching behavior in the insurance industry had a favorable impact on workers' role clarity, job satisfaction, career commitment, employee performance at work, and organizational commitment Recently, more mediation variables are added into the model to indicate the impact of managerial coaching on job performance such as affective commitment (Ribeiro et al., 2020), organisational citizenship behaviour (Maamari et al., 2021) The following is developed based on the above discussion: H0: Managerial coaching has a positive impact on Job performance of the employee 7 III Methodology and data 3.1 Proposed research model Based on the four-dimensional framework of coaching of McLean et al (2005), our study also separates managerial coaching skills into four characteristics (written in the model below), which enhance employees' development and improve their performance Figure The proposed research model 3.2 Procedures and sample To test the research hypotheses, a self-report survey was conducted online The questionnaire was sent via personal contact to the respondents working in different fields in Ho Chi Minh city The questionnaire set out the purpose of the study, and also ensured that the data would be used for the right purpose In addition, information related to data security is also provided sufficiently to ensure the safety of surveyors' information Because of the short survey time, the team only collected a small number of samples The final sample included 61 people, of which 72,131% were females (44 females and 16 males, is not specific) The respondents were quite young, with nearly 85,246% between 18 and 25 years old, 11,475% between 25 and 35 years old (only two respondents are over 35 years old) The research team's questionnaire consists of parts Part includes the scales of independent variables, intermediate variables and dependent variables Part includes questions about the general information of the respondents (gender, age) 3.3 Measures The constructs were measured with validated scales adapted from the relevant literature This study used a 5-point Likert scale (1- totally not agree; - totally agree), the study asked people to indicate to what extent each statement presented applied to them or to their managers Coaching abilities for managers (predictor variable) This variable was assessed using 20 items adapted from the work of McLean et al (2005) The mentioned authors validated a four-dimensional multidimensional measure of managerial coaching skills: open communication, team approach, people value, and uncertainty acceptance This was modified to assess employees' evaluations of their managers' abilities, which includes not only behaviors but also attitudes and beliefs that support a coaching mindset (Hagen and Peterson, 2015) Individual accomplishments (criterion variable) To assess employees' individual performance, we used four questions produced by Staples et al (1999) and frequently used by other writers such as Rego and Cunha (2008), who translated it into Portuguese As a result, rather than using an objective metric, the researchers utilized a self-rated one Several writers, such as Alzghoulet al (2018) and Karatepe and Uludag (2008), suggest that variables like work performance can be quantified using selfreport because adopting a self-report measure does not always result in systematic bias We collected the information on respondents’ personal information, such as age and gender Dimension and scales table: Predictor variable Items in factor analysis OP1 Open communication Previous approach When asked to share feelings, (McLean et my manager feels free to so al.,2005) OP2 In difficult job-related situations, my manager reveals his/her opinions openly and frankly OP3 When talking to other people, my manager shares his/her feelings openly OP4 When developing relationships, my manager openly shares his/her personal values OP5 When questioned about his/her Expecte d impact + professional experiences, my manager willingly shares details Team approach TA1 When asked to volunteer for work-related projects, my manager chooses to these with teams TA2 In general, my manager enjoys performing tasks in which my manager works with others TA3 As part of a working group, my (McLean et manager prefers to foster group al., 2005) consensus TA4 When a decision has to be made, my manager prefers to consult other people TA5 When my manager thinks of ways to achieve goals, my manager seeks information from other people VP1 Value given to In decision-making processes, people my manager overcomes feelings with logic VP2 In discussions with others, my manager focuses on the individual needs of each person VP3 When my manager seeks to (McLean et make work meetings dynamic, al., 2005) my manager still allows time for building relationships VP4 In the workplace, my manager finds ways to establish links with others VP5 At work, my manager tends to focus more on people + + 10 AA1 Acceptance of When others are making career ambiguity decisions, my manager emphasizes risk-taking AA2 When my manager is looking for solutions to problems, my manager may want to try new solutions AA3 My manager views conflict as constructive AA4 When my manager works with others, my manager poses questions with many possible answers (McLean et al., 2005) Criterion variable IP1 IP2 IP3 IP4 Individual performance I’m an effective employee My colleagues see me as a very (Rego and productive employee Cunha, 2008; I am satisfied with the quality Staples et al., of my work 1999) My superior sees me as an effective employee + 11 IV Results SPSS version 20 software was utilised to run the factor analyses and test the hypotheses The Exploratory Factor Analysis (EFA) was conducted to examine the relationship of the hypothesized model The use of SPSS was to facilitate testing the direct relationship between the factors The hypotheses were tested using the Ordinary Least Square (OLS) method with 61 samples in total 4.1 Reliability Statistics Cronbach’s alpha is referred to as a measure of “internal consistency” reliability The coefficient of reliability α runs from to When α stays at 0, it means that ech scale items are totally unrelevant (i.e., they are not correlated or share no covariance); otherwise, α will approach when all items have high covariances Theoretically the standards for good α coefficient are dependent on the knowledge of the scale in questions However, it is a recommendation that a minimum α coefficient is between 0.65 and 0.8 (or higher in many cases); α coefficients that are less than 0.5 are usually unacceptable, especially for scales purporting to be unidimensional The test results of Cronbach's Alpha reliability coefficient of all factors are in the range from 0.5 to 0.7, showing that the scale used in the study is reliable Elements Cronbach's Alpha Open communication Team approach Value given to people Acceptance of ambiguity 0.774 0.523 0.693 0.709 Table 4.1 Cronbach’s Alpha test 4.2 Exploratory factor analysis (EFA) After testing the reliability of scales using Cronbach's Alpha, all observed variables (dependent variable, independent variable) were included in exploratory factor analysis (EFA) The Kaiser-Meyer-Olkin Measure of Sampling Adequacy is a statistic that indicates the proportion of variance in your variables that might be caused by underlying factors The scale is accepted when 0.5 ≤ KMO ≤ (Hair et al., 1998) When the value of KMO test approach 1, generally it indicates that a factor analysis 12 may be more suitable with your model If the value is less than 0.50, the results of the factor analysis probably won't be very useful Bartlett's test examines the hypothesis that your correlation matrix is an identity matrix, which could mean that there is no relationship between your variables and therefore unsuitable for structure detection With the significant value is smaller than 0.05, factor analysis can be useful with your data Independent variables KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy Approx Chi-Square Bartlett's Test of df Sphericity Sig .669 270.497 45 000 Table 4.2: KMO and Bartlett's Test of Independent variables Dependent variables KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy Approx Chi-Square Bartlett's Test of df Sphericity Sig .697 148.709 000 Table 4.3: KMO and Bartlett's Test of Dependent variables The test results show that the KMO indexes of all variables in the model are bigger than 0.5 and Bartlett's Test Sig = 0.000 < 0.05, so factor analysis is appropriate 4.3 The Rotated Component Matrix The Rotated Component Matrix contains the Pearson correlations between items and components or “factors” These are known as factor loadings and allow us to interpret which traits our components may reflect Independent variable The factor loading represents the contribution of a variable in a model An observed variable with a low factor loadings, below the standard threshold of the study, which means that the observed variable contributes too little to the study As a result, this variable should be considered and removed so as not to affect the research results According to Hair, J F (2009): • Factor Loading stays at: ± 0.3: Minimum values to be included in the model • Factor Loading stays at ± 0.5: The factor is statistically significant • Factor Loading stays at ± 0.7: The factor is highly statistically significant 13 Rotated Component Matrixa Component 885 872 845 767 AA4 AA2 AA1 AA3 OP2 OP5 TA1 TA2 VL2 VL1 890 821 899 888 856 812 Table 4.4: Rotated Component Matrixa There are eight factors are excluded from the model since the factor loading of the factor is less than the acceptable level (0.7), remove these variables and run EFA again Excluded factors include: OP1, OP4, VL4, TA4, VL3, VL5, TA5, OP3 Dependent variable Component Matrix Component IP4 906 IP3 865 IP2 841 IP1 839 Table 4.5: Component Matrix Because only one dependent variable is included in the model, EFA will also only extract one factor It is good to extract only one factor, which means that the scale ensures unidirectionality, the observed variables of the dependent variable converge quite well Factor loadings of the factors in the model are all greater than 0.7 which is highly statistically significant 4.4 Ordinary Least Squares regression Model R R Square Model Summaryb Adjusted R Std Error of the Durbin-Watson 14 559 a 313 Square 264 Estimate 65024 2.368 R Square and Adjusted R Square are used to evaluate the fit of the model The result shows that R square and Adjusted R square are respectively recorded at 0.313 and 0.264 There is no fixed standard for Adjusted R square at which shows that the model is the most fitted one, the closer this index is to 1, the more significant the model, the closer to 0, the weaker the model's significance R square and Adjusted R square in the model are low (one of the reason is the small sample size of the study) 4.4.1 Analysis of Variance (ANOVA test) ANOVA Model Sum of Squares Regr ession 10.775 Resi dual 23.678 Total 34.453 d Mean Square F Sig 2.694 6.3 71 000b f 423 a Dependent Variable: IP b Predictors: (Constant), AA, TA, VL, OP The ANOVA tells us whether our regression model explains a statistically significant proportion of the variance In this table, we concerned most about F – ratio and Sig index P-value/ Sig value: Commonly, there are three general level of significant used: 0.1, 0.05, and 0.01 In our research, 0.05 is chosen, which means that the p-value should be less than 0.05 In the above table, it is 000 Therefore, the result is significant F-ratio: A value is greater than for F-ratio yield efficient model In the above table, the value is 6.371, which is good 4.4.2 Coefficients table 15 Coefficientsa Model (Con stant) OP TA VL AA Unstandardiz ed Coefficients B Std Error 652 668 033 040 187 437 Standard ized Coefficients t S ig Toler ance Beta 473 100 040 098 -.046 133 165 113 479 IF 742 687 166 402 886 V 016 330 404 Collinearity Statistics 000 852 174 944 059 886 129 809 236 The Coefficients table gives us the values for the regression line P-values and coefficients in regression analysis work together to tell you which relationships in your model are statistically significant and the nature of those relationships The coefficients describe the mathematical relationship between each independent variable and the dependent variable The p-values for the coefficients indicate whether these relationships are statistically significant The coefficients lower than 0.005 is accepted In our result, only the significant of acceptance of ambiguity, recorded at 0.000 (below 0.005) The coefficient for open communication; team approach; value given to people are 0.742, 0.687, 0.166 respectively, which are not statistically significance The main reason for these results is that the small sample size of the study Variance magnification factor VIF is used to check whether multicollinearity occurs or not? If VIF > 2, there is a sign of multicollinearity, and if VIF > 10, then there is definitely multicollinearity Otherwise, it is may be no sign of multicollinearity In our research, the VIF of variables are lower than 2, as the result, multicollinearity may not happen 16 V Conclusion The purpose of this study is to examines the impact of managerial coaching skills on employee’s performance Coaching has recently grown in importance among the development of organization, however there has not been much study on these effects In this paper, we took some determinants representing managerial skills such as open communication, team approach, value given to people, and acceptance of ambiguity; examined their relationships with outcomes of employees and then drew out their statistics To have a better understanding about this topic as well as derive data for detailed analysis, our group has launched an investigation in the form of Likert Scale among three groups of ages (18-25, 25-35, and above 35) and genders (male and female) The questionnaire result has been recorded with the sample of 61 people, of which 72,131% were females (44 females and 16 males, is not specific) The respondents were quite young, with nearly 85,246% between 18 and 25 years old, 11,475% between 25 and 35 years old (only two respondents are over 35 years old) By the end, the data was put into the model of EFA to bring out the relationship Following the final result of our research model, the variable of Acceptance of ambiguity was statistically significant It has a direct impact on an employee's job performance However, the remaining three variables in the article; namely Open communication, Team approach and Value given to people were not statistically significant In other words, they not affect the performance of workers Reason for this result could be the scale of our sample, as it was not so large, and there was also an over-concentration on one group of target subjects in the investigation (ages of 1825), lacking diversity From the perspective of the result of this paper, our group has come up with some recommendations on the issue of Acceptance of ambiguity First of all, having a deeper insight into this aspect, it could be referred to the willingness of the manager in terms of taking the risk to achieve the final objective This tendency would foster the creativity of the employees and allow them to approach new activities with up-to-date knowledge more frequently They would also be able to implement what they learned in real working environment In addition, this could stimulate critical thinking, which is a way of thinking that requires a deep understanding of a problem Therefore, they might come up with some groundbreaking ideas to easily address these issues, providing the organization with a variety of solutions to choose from Last but not least, Acceptance of ambiguity could also lead to a freer working environment, because it diminishes the restriction for creativity 17 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