Intrinsic motivation and in role job performance a study in vietnam luận văn thạc sĩ

MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HOCHIMINH CITY  BUI AN ANH TUAN INTRINSIC MOTIVATION AND IN-ROLE JOB PERFORMANCE A STUDY IN VIETNAM MASTER THESIS OF BUSINESS ADMINISTRATION HO CHI MINH CITY - 2012 MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HOCHIMINH CITY  BUI AN ANH TUAN INTRINSIC MOTIVATION AND IN-ROLE JOB PERFORMANCE A STUDY IN VIETNAM Subject: Master of Business Administration Code: 60.34.01.02 MASTER THESIS OF BUSINESS ADMINISTRATION SUPERVISOR: PhD PHAM QUOC HUNG HO CHI MINH CITY - 2012 i ACKNOWLEDGEMENT The achievement of this study is not only my effort but also the valuable contribution of many individuals I would like to express my thankful feeling and deep memory to all of them First of all, I would like to thank my supervisor, PhD Pham Quoc Hung, for his close attention, suggestion, encouragement from the first step and during my thesis development He is very kind to help me all materials related to my thesis Next, I am so happy to have the warmest love from my family who always concerns and supports me in any case Finally, I am very lucky to receive a large knowledge and enlightened understanding from hundreds of guidelines and comments from my friends They are my classmates and my friends who are willing to reply promptly all my relevant questions at any time and everywhere I ask Importantly, all the right arguments in this study were surely explained with the help of above mentioned individuals, all the mistakes or shortcomings are solely due to my weakness All comment and suggestion are welcomed Ho Chi Minh City, October 2012 Student: Bui An Anh Tuan ii COMMITMENT To teachers and readers I am Bui An Anh Tuan, student of Master of Business Administration, K19 (EMBA K19) of the University of Economics Ho Chi Minh City I commit that the thesis “Intrinsic Motivation and In-role Job Performance: A Study in Viet Nam” was carried out and accomplished by my serious study procedure and scientific research The related literature and quotations used in this study are sourced from books, articles, researches, references The data in the study was primarily collected from companies in Ho Chi Minh city The data analysis and results of the study were conducted and explained scientifically by myself I declare and commit again that this study is not copied originally from any other study and research Ho Chi Minh City, October 2012 Student: Bui An Anh Tuan TABLE OF CONTENT Acknowledgement i Commitment ii Table of content iii List of tables v List of figures v Abstract vi CHAPTER 1: INTRODUCTION 1.1 Research introduction 1.2 Problem statement 1.3 Purpose and significance of the study 1.4 Delimitation of the study 1.5 Structure of the study CHAPTER 2: LITERATURE REVIEW 2.1 Job performance 2.2 Two measures of job performance 2.3 Motivation 2.4 General Self-Determination Theory 2.5 Extrinsic motivation 2.6 Intrinsic motivation 11 2.7 Psychology needs 12 2.7.1 Autonomy 12 2.7.2 Competence 15 2.7.3 Relatedness 16 2.8 Influential factor of social context 16 2.9 Motivation and job performance 18 2.10 Research model and hypotheses 19 CHAPTER 3: METHODOLOGY 3.1 Research design .22 3.2 Measurement development 24 3.2.1 Questions of questionnaire .24 3.2.2 Questionnaire back translation .24 3.2.3 Autonomy measurement 25 3.2.4 Competence measurement 26 3.2.5 Relatedness measurement 26 3.2.6 In-role Job Performance measurement 27 3.2.7 Demographic items 27 3.3 Pilot study 28 3.4 Sampling design 29 3.5 Data collection and analysis 30 3.5.1 Data cleaning and input method 30 3.5.2 Reliability test 31 3.5.3 Confirmatory factor analysis 31 3.5.4 Analysis of variance .32 3.5.5 Regression analysis 32 CHAPTER 4: DATA ANALYSIS 4.1 Data description .33 4.2 Normality analysis 34 4.3 Scale reliability analysis 35 4.4 Confirmatory factor analysis 36 4.5 Group analysis 40 4.6 Regression analysis 44 4.6.1 Linear multiple regression 47 4.6.2 Testing assumptions for regression 49 4.6.3 Regression with dummy variable 50 CHAPTER 5: DISCUSSION AND CONCLUSION 5.1 Result discussion .52 5.2 Research contribution 53 5.2.1 Theoretical implication 53 5.2.2 Managerial implication 54 5.3 Limitation and further research 55 REFERENCES .56 APPENDICES 61 List of tables Table 2.1: Type of extrinsically motivated behavior 11 Table 3.1: Autonomy scale .26 Table 3.2: Competence scale 26 Table 3.3: Relatedness scale 27 Table 3.4: Performance scale 27 Table 3.5: Demographic variables 28 Table 4.1: Survey data 33 Table 4.2: Normality descriptive statistics 35 Table 4.3: Cronbach’s alpha of sub scales 36 Table 4.4: Goodness of fit indices 37 Table 4.5: Standardized regression weight .37 Table 4.6: Gender group statistic 40 Table 4.7: Independent Samples Test 41 Table 4.8: Marital group Statistics 42 Table 4.9: Mean of Groups Analysis 44 Table 4.10: Correlations 46 Table 4.11: Multiple regression 47 Table 4.12: The coefficients 48 List of figures Figure 2.1: The research model 21 Figure 3.1: Research process 23 Figure 4.1: Modified model 38 Figure 4.2: Adjusted model 39 Abstract We need people to work at their best effort voluntarily to have the best performance We have to understand the psychological motivation and create the good condition in which people are motivated Psychological motivation is of two types: intrinsic and extrinsic Intrinsic motivation comes from internal or self stipulation Extrinsic motivation comes from external or contingent rewards The study based on Self-Determination Theory that focuses specially on intrinsic motivation and its effect on job performance The study has carried out a survey of 239 respondents from companies in the Ho Chi Minh city based on the well designed self-reported questionnaire Using multiple regression model, three intrinsic motivators – perceived autonomy, perceived competence, perceived relatedness – have showed their positive effects on in-role job performance Interestingly, relatedness has the strongest effect, autonomy has moderate effect and competence has lowest effect The mean analysis has not been found statistically significant difference among demographic groups This study also contributes to the theory of motivation and initially confirms the validation of SelfDetermination Theory in the Viet Nam context CHAPTER 1: INTRODUCTION 1.1 Introduction Many studies have been carried out to understand about the motivation According to definition of Psychology Today, Motivation is literally referred to the desire of a person to things (Psychology Today, How to get motivated, 2012) Ryan & Deci asserted that motivation concerns energy, direction, persistence – all aspects of activation and intention Motivation relates to the person who are managers, teachers, leaders and involves mobilizing others to act (Ryan & Deci, 2000) Kinicki and Kreiner suggested that motivation presents psychological processes that cause stimulation, persistence of voluntary actions that are goal directed (Kinicki & Kreitner, 2001) Employees that are motivated to work long and hard are normally more productive than that are not motivated (Daniels, J.D and Radebaugh, 2001) Motivation is of two general types: intrinsic motivation and extrinsic motivation As defined by Gagne and Deci (2005), intrinsic motivation refers to internal factors such as interest, enjoyment, choice, perceived competence, relatedness etc Satisfaction of these factors causes and maintains intrinsic motivation Aronson, Wilson and Akert (2002) defined “Extrinsic motivation refers to external factors which can be measured in monetary terms such as salary and bonuses etc” (cited in Mundhra & Jacob, 2011) These are external to the people According to Ryan and Deci (2000), the term extrinsic motivation is the attainment of separate outcome from the performance of an activity; and intrinsic motivation is the performance of an activity for the inherent satisfaction from the activity itself They also mentioned that fun and challenge are of greater significance to an intrinsically-motivated person than external pressures, contingencies and rewards In this study, based on the Self-Determination Theory proposed by Deci and Ryan (2000), I refer to perceived competence, perceived autonomy and perceived relatedness as three intrinsic motivators to evaluate the motivation of the company on employees Performance has the important concern for the leaders to pay attention and it can be used to evaluate the leadership effectiveness Performance of an individual depends on his ability and motivation There are two types of employee performance in-role and extra-role as the overall motivation It is used to assess the motivation through perceived performance by himself As suggested by William and Anderson (1991), a person undertakes his job responsibilities and requirements, he has done his inrole performance A person takes the actions beyond his job responsibilities and requirements at his voluntary behavior, he has taken extra-role performance (William and Anderson, 1991) In this study, I refer to in-role performance to measure the overall motivation of employee 1.2 Problem Statement Morgan (1997) (cited in Mundhra & Jacob, 2011) stated that people are valuable resource that may contribute in several different ways to a company’s outcome provided that the company creates them an appropriate chance to Mundhra and Jacob (2011) mentioned that a company needs its employees working at their best effort towards its goals for its success Employee also have a desire to remain and work for long time in the company However, according to a report, in average, every three new employees are recruited, there are two current employees leaving the company The turnover rate is about 40-50% (Tran, 2011) Also, this paper reported that a survey by Navigos in 208 enterprises in 2005 with 35,000 participants, the job leave rate was very high: 18.2% for management level; 14.8% for experts and 23% for office staff and workers And research of Kevin and Keri (2006) confirmed that the primary principle for employment loyalty and commitment in the twenty first century is of leadership factors Moreover, the absenteeism and bad attitude (stress, negative effort, tardiness, stealing) are also important issues for the companies Such loyalty and commitment comes from motivation Motivation has been defined as the amount, quality and direction of the employee, effort that energizes their behavior within the work environment (Perry and Porter, 1982) Schultz (1998) CHAPTER 5: DISCUSSION AND CONCLUSION Chapter has showed some findings from the data analysis and the hypotheses were confirmed This chapter will give brief summarized discussion and contribution of the study Finally, the research delimitation and suggestions for further study are referred 5.1 Brief result discussion From the findings of the data analysis, the result was proved that the hypotheses were confirmed The intrinsic motivation has the relationship with job performance of employee All factors of motivator have positive effect to the dependent factor of performance With the observed variables (questions), the study showed that Relatedness has the strongest influence on the performance The next important factor is about Autonomy which also has the rather strong effect to the performance And finally, factor Competence also has positive relation to the job performance in the working environment This has supported the assumptions H1, H2 and H3 posited in the literature chapter The scales of SDT are statically accepted in the scope of this research All the variables are highly evaluated with means in range from 4.8 to 5.3 average point of points scale There are the difference in groups of respondents, however, it is not too varied Regression for different groups with dummy factors has no statistically significant variation In the Vietnam context, this result could provide the evidence that the SDT (Deci and Ryan, 2000) is valid and has the importance to the people Furthermore, support of intrinsic motivation has influence and positive effect to the outcome In different way, the outcome could be improved if people know how to develop the intrinsic motivators 5.2 Research contribution 5.2.1 Theoretical contribution Firstly, the study applied the new behavioral theory into the Vietnam context (at least according to the author’s knowledge) Although many theories about motivation have been developed and applied so far, Self-Determination Theory has a different concept of basic human needs It contributes to the motivation theory for diversified tools and research methods In other countries, this theory have been studied and applied largely and deeply in varied sectors and received the academic recognition In our academic research, this theory is still very narrow and limited Secondly, the factors of intrinsic motivators have been realized and evaluated by employee Among three factors, interestingly, Relatedness has the most influence Relatedness refers to the concern of employee about the goal of the company and the working environment, connection or belongingness to the social community Autonomy has the second order in influential coefficient The last is related to Competence need Contrary to the normal thinking that competence should be the most important consideration in the working context, this dimension is ranked after relatedness and autonomy This is very useful for managerial implication Thirdly, this study has measured and tested the validity and reliable of measurement of intrinsic motivation (localized scale of intrinsic motivators) Also it has proved statistically the relationship between intrinsic motivation and job performance This study can be supportive that extrinsic rewards (i.e money) could not be the most important factor to have the best effort and outcome in some situations Or in some cases, extrinsic contingent rewards can be harmful to the self motivation This result can be implied that improving intrinsic motivation can increase the performance By taking relatedness and autonomy into the adequate consideration, the outcome can be improved effectively From this perspective, managers of company can learn and apply to their business 5.2.2 Managerial implication To attract and keep the talents and to have their utmost effort, company must understand their behavior and basic needs People usually think of monetary incentive or external rewards as the first factors to have the best result The result from this study showed that there are some other factors can be useful and effective to apply Entrepreneur should focus on intrinsic motivation to have the best job performance Specifically, according to this study, relatedness is the most important concern (greatest coefficient) Relatedness relates to the goal of the company Employer should consider and set up the company goal suitable to the goal of employee Or at least, it is an suitable indicator to choose the right person to take the responsibility/position If the employee finds that their objectives have the similar or relevant objectives of the company, employee will feel self motivated and intrinsically their best effort to achieve the result Besides, the good relationship in the working environment belongs to this concern People have the need to communicate freely and friendly with peers in the social space Maslow has showed this need in his model (Maslow,1943) The working atmosphere must be friendly and trustful where people can believe in each other It must build the positive attitude and helpful behavior in the daily activity The company culture must be strong and pleased to be proud of Employee must feel excited and happy when they are member of that company The employer must create a good image of their business to link people together Autonomy is the next considerable issue Autonomy relates to the feeling of self decision Employer must support the free choice and idea of employee The challenge should often be created and call for people to voluntarily participate The new innovation should be encouraged and welcomed Mistake and error should be normal and consulting Superior should create the equal chance for people to self develop People should be advised to work based on their self careful decision Briefly, when people feel autonomous, they can freely innovate and exert their most talent to finish the responsibility The last of the three intrinsic motivators is competence This concerns the feeling of effective and appreciation Employer must understand this need to help improve the performance Creating the challenging duties are the best way to prove the competence Employee are concerned to have the condition to express their optimal effort Positive feedbacks have the strong motivation for people to feel competent It helps create the self confidence and internal motivation When they are happy and satisfied with their fulfillment, they are more intrinsically motivated and eager to take further challenge Best result will be beneficial Summary, the study showed a new perspective about intrinsic motivation and the relationship with performance Understanding the intrinsic motivation is critical for the company to achieve highest result Relatedness, autonomy and competence are key factors for manager to build the suitable internal environment It helps the entrepreneur have more opportunity to get the optimal performance of their staff 5.3 Limitation and further research Beside the valuable findings and useful contribution of this study, there are limitation needed to discuss as well The study was not used all scale of intrinsic motivation of SDT by Ryan and Deci So, there is potential to have error in measuring the test factors The data used in this study was collected in the area of Ho Chi Minh city The sampling method used was based on non statistical and convenient technique This can have some biases due to the simple sampling method 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Khác:……□ Appendix B: Tables of data analysis Reliability of Autonomy Reliability Statistics Cronbach's Alpha N of Items 858 Item-Total Statistics Scale Mean if Item Scale Variance if Corrected Item-Total Cronbach's Alpha if Deleted Item Deleted Correlation Item Deleted QA1 29.81 46.666 562 847 QA2 30.70 43.075 607 842 QA3 30.62 43.649 716 826 QA4 30.71 43.368 716 825 QA5 30.60 43.056 713 825 QA6 31.59 46.924 441 865 QA7 30.14 43.884 645 835 Reliability of Competence Reliability Statistics Cronbach's Alpha N of Items 875 Item-Total Statistics Scale Mean if Item Scale Variance if Corrected Item-Total Cronbach's Alpha if Deleted Item Deleted Correlation Item Deleted QC1 21.67 20.540 688 855 QC2 21.36 23.576 654 860 QC3 20.75 23.783 661 860 QC4 21.54 20.812 779 830 QC5 21.22 20.154 763 834 Reliability of Relatedness Reliability Statistics Cronbach's Alpha 785 N of Items Item-Total Statistics Scale Mean if Item Scale Variance if Corrected Item-Total Cronbach's Alpha if Deleted Item Deleted Correlation Item Deleted QR1 10.05 6.690 639 695 QR2 10.48 6.360 638 693 QR3 10.50 5.974 601 739 Reliability of Performance Reliability Statistics Cronbach's Alpha N of Items 891 Item-Total Statistics Scale Mean if Item Scale Variance if Corrected Item-Total Cronbach's Alpha if Deleted Item Deleted Correlation Item Deleted QP1 18.98 27.920 739 866 QP2 18.55 30.148 686 878 QP3 19.60 27.720 685 880 QP4 19.14 26.951 801 852 QP5 19.03 27.839 770 860 Regression Result ANOVA Mode l Sum of Squares Regression b df Mean Square 62.537 8.934 Residual 344.608 231 1.492 Total 407.145 238 Regression 288.673 10 28.867 Residual 118.472 228 520 Total 407.145 238 F Sig .000 55.555 000 Predictors: (Constant), Income, Gender, Company, Original, Education, Marital Status, Age Predictors: (Constant), Performance, Original, Company, Gender, Marital Status, Education, Income, Age, Autonomy, Relatedness Dependent Variable: Performance a 5.989 a Regression result with income dummy variable Model Unstandardized Standardized Coefficients Coefficients B Beta (Constant) -.168 Autonomy 384 Relatedness Competence Collinearity Statistics t Sig Tolerance VIF -.554 580 324 5.977 000 445 2.248 502 460 8.695 000 468 2.138 127 111 2.252 025 533 1.875 Income_DLow -.388 -.147 -2.693 008 437 2.287 Income_DMedium -.254 -.096 -1.806 072 467 2.143 Dependent variable: Performance Charts for residuals of inclusive test variables ... better in- role job performance And in- role job performance is chosen and given more importance and measured to find overall motivation 2.10 Research Model and Hypotheses Barrow (1976) and Lowin and. .. the equivalent affect that task and OCB have to explain the variance of job performance assessment Managers can use task and OCB with the similar importance in evaluating the job performance of... take an action that are new and interesting As defined by Ryan, Connel and Crolnick, intrinsic motivation is an “innate, rather than derivative, propensity to explore and master one’s internal