The impact of leadership on their employees’ job attitudes and performance a case study of phuc thanh corporation, vietnam

ĐẠI HỌC QUỐC GIA HÀ NỘI TRƯỜNG QUẢN TRỊ VÀ KINH DOANH - DƯƠNG VĂN MINH THE IMPACT OF LEADERSHIP ON THEIR EMPLOYEES’ JOB ATTITUDES AND PERFORMANCE: A CASE STUDY OF PHUC THANH CORPORATION, VIETNAM TÁC ĐỘNG CỦA LÃNH ĐẠO ĐẾN THÁI ĐỘ VÀ HIỆU QUẢ CÔNG VIỆC CỦA NHÂN VIÊN CÔNG NGHỆ THÔNG TIN: NGHIÊN CỨU TRƯỜNG HỢP CỦA CÔNG TY CỔ PHẦN PHÚC THÀNH, VIỆT NAM LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH HÀ NỘI - 2022 ĐẠI HỌC QUỐC GIA HÀ NỘI TRƯỜNG QUẢN TRỊ VÀ KINH DOANH - DƯƠNG VĂN MINH THE IMPACT OF LEADERSHIP ON THEIR EMPLOYEES’ JOB ATTITUDES AND PERFORMANCE: A CASE STUDY OF PHUC THANH CORPORATION, VIETNAM TÁC ĐỘNG CỦA LÃNH ĐẠO ĐẾN THÁI ĐỘ VÀ HIỆU QUẢ CÔNG VIỆC CỦA NHÂN VIÊN CÔNG NGHỆ THÔNG TIN: NGHIÊN CỨU TRƯỜNG HỢP CỦA CÔNG TY CỔ PHẦN PHÚC THÀNH, VIỆT NAM Chuyên ngành: Quản trị kinh doanh Mã số: 8340101.01 LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH NGƯỜI HƯỚNG DẪN KHOA HỌC: TS NGUYỄN TÚ ANH HÀ NỘI - 2022 DECLARATION The author confirms that the thesis’ research outcome is the result of the author’s independent work compiled mainly during his study and research period, and it has not been published in any other research and article The other’s research results and documentation (quotes, tables, figures, formulas, charts, and other documents) used in the thesis are cited properly with permission of their authors The author is responsible in front of the Thesis Defense Committee, the Hanoi School of Business and Management, and under the law for thisdeclaration Date………………………… i ACKNOWLEDGEMENT After studying and researching with the enthusiastic assistance of teachers, friends, and colleagues, thesis Master of Business Administration with the topic “THE IMPACT OF LEADERSHIP ON THEIR EMPLOYEES’ JOB ATTITUDES AND PERFORMANCE: A CASE STUDY OF PHUC THANH CORPORATION, VIETNAM” has been accomplished To complete this thesis, the author has received great encouragement and support from friends, teachers, and the company First of all, the author would like to express his deep gratitude to Ph.D NGUYEN TU ANH who enthusiastically guided the author to carry out his research The author would also like to express his sincere gratitude to teachers who provided the author with extremely useful supplementary knowledge during his study at the HSB School of Business and Management, Hanoi National University While carrying out the thesis, the author made efforts to complete the thesis in the best way, but due to limitations of knowledge, time, experience, and references, the thesis might contain mistakes Therefore, the author would like to receive further suggestions and guidance from teachers and colleagues Thank you so much for the honor! …………, ………/………/……… Author’s name ii TABLES OF CONTENT DECLARATION i ACKNOWLEDGEMENT ii TABLES OF CONTENT iii LIST OF TABLES vi LIST OF FIGURE vii CHAPTER 1: INTRODUCTION 1.1 Research rationale 1.2 Review of previous researches 1.3 Research objectives 1.4 Research methodology 1.5 Research scope 1.6 Hypothesis CHAPTER 2: THEORETICAL BACKGROUND 2.1 Introduction 2.2 Leader competency 10 2.3 Job attitudes 12 2.3.1 Job Satisfaction 13 2.3.2 Job commitment 14 2.3.3 Job involvement 15 2.4 Job outcomes 15 2.4.1 Job retention 15 2.4.2 Job performance 16 2.5 The relationship between leader competency, job attitudes, and job outcomes 17 2.6 Suggested research model 18 iii CHAPTER 3: APPLICATION OF THEORY OF PHUC THANH VIETNAM JOINT STOCK COMPANY 21 3.1 Research design 21 3.1.1 Methodological approach 21 3.1.2 Research problems 21 3.1.3 Research questions 22 3.2 Data collection 22 3.2.1 Methods of analysis 23 3.2.2 Introduction to Phuc Thanh Vietnam Joint Stock Company and Software solutions center 24 3.2.2 Analysis of business activities and human resources of the software solutions center 28 3.3 Construct measurements 34 3.3.1 Measurement Scale 34 3.3.2 Questionnaire 36 3.4 Data Analysis procedure 39 CHAPTER 4: RESEARCH RESULT 40 4.1 Analysis of survey outcomes 40 4.2 Regression 40 4.3 Summary 50 4.4 Limitations 51 CHAPTER 5: CONCLUSION AND SUGGESTION 52 5.1 Strategic planning of the Software solutions center for the 2022 – 2024 period 52 5.2 Suggestions to improve the job attitudes and job outcomes of information technology employees of Phuc Thanh Vietnam Joint Stock Company 55 5.3 Conclusion 57 5.4 The limitations and further research directions of the topic 57 iv References 58 Appendix 62 Appendix 1: Leader knowledge 62 Appendix 2: Leader ability 63 Appendix 3: Leader behavior 64 Appendix 4: Job satisfaction 65 Appendix 5: Job involvement 66 Appendix 6: Job commitment 67 Appendix 7: Job retention 68 Appendix 8: Job performance 69 v LIST OF TABLES Table 4.1 Model summary Hypothesis 41 Table 4.2 Anova test Hypothesis 41 Table 4.3 Coeficients of Hypothesis 42 Table 4.4 Model Summary Hypothesis 42 Table 4.5 Anova test hypothesis 43 Table 4.6 Coefficients of Hypothesis 44 Table 4.7 Model summary Hypothesis 44 Table 4.8 KMO and Bartlett’s test 45 Table 4.9 Total Variance Explained 45 Table 4.10 The matrix pivot-table of the factors 46 Table 4.11 of correlation coefficients 49 vi LIST OF FIGURE Figure 2.1 : Suggested Research model 19 Figure 3.1 Organizational chart of PhucThanh Vietnam Jsc 24 Figure 3.2 Major partners of PhucThanh Vietnam Jsc 27 Figure 3.3 Feature chart of software system 31 Figure 5.1 SOWT of PhucThanh Solutions Unit 54 vii CHAPTER 1: INTRODUCTION 1.1 Research rationale Human resources play a particularly important role in any business, especially businesses in the software industry In the Industry 4.0 era, human resource mobility is inevitable and a challenge for businesses In addition to retaining employees, businesses must improve employees’ work efficiencies in the new situation According to the statistics on the social-economic situation in the second quarter and the first months of 2021 of the General Statistics Office, GDP growth is estimated to increase 6,61%, 0,39% higher than in the second quarter of 2020 In the context of an epidemic of acute respiratory infections caused by a new strain of Coronavirus (Covid-19), a strong outbreak on a global scale has seriously affected all socio-economic aspects of many countries in the world However, Information Technology businesses were still growing during the Covid-19 pandemic storm In the first outbreak of the disease from March 2020 to the present time, the IT market, as well as the recruitment demand for the IT industry, have gone through many stages, from difficulty, adaptation, to recovering and regaining the development momentum With high awareness and good preparation for the digital transformation wave, accompanied by positive changes from the government’s policies & flexibility, business initiatives and relentless competition,and market breaks, we all have more or less control and regain balance, sanity to coordinate survival and development As evidenced by many important market economic parameters, Vietnam still maintains a positive growth momentum despite the impacts of Covid-19 Total revenue of the ICT industry in Vietnam in 2020 reached 120 billion USD, up 7.1% compared to 2019, in which hardware reached 107 billion USD, software reached billion USD ICT exports reached US$84.45 - In a short term, allying to companies with a similar scale to share human resources and projects f) Human resources strategy - Improving remuneration policy (applying salaries, bonuses, remuneration process so that there is no gap between current and new employees) - Creating a young, friendly corporate culture where employees can maximumly promote their creation and passion (within the scope of the company’s whole strategy) g) Marketing strategy - Promoting what the brand can do, what the brand has done, and what the brand is ready to - Promoting available products to users 5.2 Suggestions to improve the job attitudes and job outcomes of information technology employees of Phuc Thanh Vietnam Joint Stock Company With the company's 2022 - 2024 strategy and research results above, essential to improve leader competency to improve the job outcomes of employees at Phuc Thanh Vietnam Joint Stock Company Therefore, it is necessary to improve and enhance the leader competency of managers at all levels to increase the job performance and job commitment of employees For the leaders need to improve their communication ability to convey their messages to customers and employees They also need to share more about their vision, objectives, ideas, or any common issue of the leaders and their employees to develop together Also, improving leader competency helps leaders have a general view of their employees’ jobs as well as promote, encourage the employees’ enthusiasm in their work Right actions of leaders create motivation for employees to work Leaders need to bring subordinates a joyful spirit and motivate them when they are under work pressure It is 55 necessary for leaders to have the ability to manage conflicts because it makes members of the team open-minded and work together more efficiently, and this causes a direct influence on their whole job performance Therefore, leader competency assists leaders to identify the target way which leads to success Information technology is a sector with a young human resource, thus, building an appropriate corporate culture is necessary Creating an open environment allows employees to unleash their creation as well as straight exchange in work to change job attitude of employees Build a culture in which there is no distance between leaders and subordinates and put codes of conduct or special rules into practice to make employees more comfortable in behaving the others Praise employees with high work performance and encourage those with not good performance Make open conversations, hold training sessions to improve their soft skills as well as update technological information, in order to exchange in their work easily and to empower employees’ job attitudes In group work, teams of which members work more actively will get better job outcomes for sure Members with a good attitude will consolidate, build the whole team’s work targets enthusiastically, and boost the work progress Some solutions to improve IT staff’s job performance such as: Deploying sets of management tools applying work procedures for each team Today, the Agile and Scrum methodologies are applied much in the information technology field instead of the Waterfall model Applying indicators and regularly monitor KPIs to help evaluate employee’s job performance Limit overtime because when employees are overloaded, it may lead to disappointment, mistakes, and low productivity Praise and encourage in meetings for their contribution This recognizes their value and helps spread the good working spirit to other members of the team 56 5.3 Conclusion This research has been able to achieve several objectives which can be taken as significant contributions to Phuc Thanh Vietnam JSC in order to improve leader competency for management and increase job outcomes employees Firstly it explored the correlation between leader behavior on employees’ job attitudes and job outcomes Besides, employees’ attitudes also have an impact on their job outcomes Secondly the good leader behavior positively influences employee’s retention rates and improves the employees’ job outcomes The main contribution of this study is the exploration of some new aspects of the correlation between leader behavior and employees’ job outcomes The research more or less contributes to the management of projects in the software industry of Phuc Thanh Vietnam Joint Stock Company Software projects have gained certain advancements in quality as well as deadlines Additionally, project managers will be able to strengthen the interaction with subordinates to ensure job maintenance and maximum efficiency 5.4 The limitations and further research directions of the topic As with most organizational research studies, this study has several limitations This study was conducted at Phuc Thanh Vietnam Joint Stock, a young company in the IT field however, it is not out of the trend to improve leader capacity and improve job performance This study measures the impact of leadership on employee attitudes and performance The research design is based on information from domestic small and medium businesses (SMEs), and the survey data is collected on a small scale which does not represent the whole population The difference between the culture of domestic SMEs and the ones in developed countries may lead to differences in human attitudes Furthermore, the survey takers may give out dishonest answers, leading to 57 research deviation Further research direction of the topic, the authors will focus on evaluating and re-surveying at a larger scale and better quality of answers to run the model again In addition, more construct validity evidence is needed by expanding the investigated factors related to job attitude and job outcomes, and to explore leader competency in more 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and comparing organisational cultures 570-582 60 61 Appendix Appendix 1: Leader knowledge Reliability Statistics Cronbach’s Alpha N of Items ,938 Item-Total Statistics Scale Mean Scale if Corrected Cronbach’s Item Variance if Item-Total Alpha Deleted Item Correlation Item Deleted Deleted LK1 6,50 6,475 ,824 ,931 LK2 6,63 6,963 ,870 ,914 LK3 6,54 6,574 ,875 ,912 LK4 6,61 7,089 ,855 ,919 62 if Appendix 2: Leader ability Reliability Statistics Cronbach’s Alpha N of Items ,949 Item-Total Statistics Scale Mean if Item Deleted Scale Corrected Variance if Item-Total Item Correlation Deleted Cronbach's Alpha if Item Deleted LA1 15,80 7,576 ,773 ,952 LA2 15,84 7,065 ,892 ,932 LA3 15,88 7,016 ,869 ,936 LA4 15,90 7,101 ,911 ,929 LA5 15,82 7,099 ,859 ,938 63 Appendix 3: Leader behavior Reliability Statistics Cronbach’s N Alpha Items ,853 of Item-Total Statistics Scale Mean Scale if Corrected Cronbach’s Item Variance if Item-Total Alpha Deleted Item Correlation Item Deleted Deleted LB1 14,46 9,079 ,549 ,851 LB2 14,54 8,534 ,623 ,833 LB3 15,00 7,939 ,709 ,811 LB4 14,87 7,589 ,716 ,809 LB5 14,77 7,815 ,734 ,804 64 if Appendix 4: Job satisfaction Reliability Statistics Cronbach’s N Alpha Items ,914 of Item-Total Statistics Scale Mean Scale if Corrected Cronbach’s Item Variance if Item-Total Alpha Deleted Item Correlation Item Deleted Deleted JS1 10,83 6,345 ,742 ,908 JS2 11,19 5,610 ,823 ,882 JS3 10,85 5,947 ,838 ,876 JS4 10,78 6,012 ,813 ,885 65 if Appendix 5: Job involvement Reliability Statistics Cronbach’s N Alpha Items ,890 of Item-Total Statistics Scale Mean Scale if Corrected Cronbach’s Item Variance if Item-Total Alpha Deleted Item Correlation Item Deleted Deleted JI1 11,32 3,695 ,694 ,888 JI2 11,11 3,776 ,787 ,848 JI3 10,96 3,756 ,816 ,838 JI4 10,98 3,959 ,753 ,862 66 if Appendix 6: Job commitment Reliability Statistics Cronbach’s N Alpha Items ,852 of Item-Total Statistics Scale Mean Scale if Corrected Cronbach’s Item Variance if Item-Total Alpha Deleted Item Correlation Item Deleted Deleted JC1 12,50 7,303 ,559 ,849 JC2 12,08 7,428 ,608 ,836 JC3 12,21 6,733 ,719 ,807 JC4 12,14 6,263 ,801 ,783 JC5 12,31 7,044 ,639 ,828 67 if Appendix 7: Job retention Reliability Statistics Cronbach’s N Alpha Items ,924 of Item-Total Statistics Scale Mean Scale if Corrected Cronbach’s Item Variance if Item-Total Alpha Deleted Item Correlation Item Deleted Deleted JR1 9,84 9,792 ,825 ,903 JR2 9,82 9,886 ,808 ,906 JR3 10,01 10,717 ,811 ,907 JR4 10,00 10,141 ,818 ,904 JR5 9,97 10,716 ,761 ,915 68 if Appendix 8: Job performance Reliability Statistics Cronbach’s N Alpha Items ,949 of Item-Total Statistics Scale Mean Scale if Corrected Cronbach’s Item Variance if Item-Total Alpha Deleted Item Correlation Item Deleted Deleted JP1 16,27 5,734 ,856 ,937 JP2 16,28 5,759 ,858 ,937 JP3 16,29 5,562 ,895 ,930 JP4 16,30 5,768 ,879 ,933 JP5 16,22 6,133 ,808 ,945 69 if ... Administration with the topic ? ?THE IMPACT OF LEADERSHIP ON THEIR EMPLOYEES’ JOB ATTITUDES AND PERFORMANCE: A CASE STUDY OF PHUC THANH CORPORATION, VIETNAM? ?? has been accomplished To complete this thesis,... analysis of their advantages, disadvantages, opportunities, challenges but also their decisiveness and acumen Besides, capable leaders are also the ones able to gather task takers and reach their. .. be always clearly aware of Chances and Challenges in the market, identify the Advantages and Disadvantages of the organization so as to have a right and efficient Company’s Strategy, with the