The impact of organizational factors on employees performance in vietnamese companies

UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business NGO CONG TRUONG THE IMPACT OF ORGANIZATIONAL FACTORS ON EMPLOYEES’ PERFORMANCE IN VIETNAMESE COMPANIES MASTER OF BUSINESS (Honours) SUPERVISOR: CAO HAO THI ACKNOWLEDGEMENTS This thesis could not be accomplished without the help, advise, support, guidance and encouragement of many people I wish to express my sincere gratitude to my advisor, Dr Cao Hao Thi, for his clear and careful direction, guidance and correction to my thesis, especially for his enthusiasm in answering reminding, help and support Secondly, I would like to thank my dear colleagues, friend and classmates for their invaluable advice, help, encouragement and support during the time I was doing this thesis Last but not least, I would like to express my great thanks to my beloved wife and my family for their support, assistance and encouragement for my study and thesis fulfillment i ABSTRACT Vietnam is a developing country and has the emerging market, so the employees' performance in Vietnamese companies plays a significant role to increase the competitive advantages However, so far the study for employees' performance in Vietnamese companies has not yet been thoroughly conducted This research is carried out with the objectives to identify the measurement scale of employees’ performance, identify the organizational factors that impact on employees’ performance and measure the strength of relationship between organizational factors and employees’ performance in the Vietnamese companies This research is done by a thorough literature review on concepts relating to employees' performance from which the initial research model and hypotheses are constructed Research process has three steps including Generation of Items, used to assure the appropriateness of the initial research model and its components; Pilot Survey, used to verify the initial questionnaires and see if there should be any adjustment or modification needed; Survey and data analysis used to collect the answer for the survey on various employees in the South organizational factors Vietnam with the sample size of 175 for data analysis Number of statistical analysis techniques are used to analyze the data collected via SPSS program Factor analysis results in the identification of factors having significant impact to employees' performance, and the extraction of four factor groups named as Organizational Culture, Leadership, Communication and Working Environment Regression analysis proved that these four groups have statistically significant influence to the employees' performance in Vietnamese companies, which Communication has the highest impact The research results can be used as a reference for the team leaders, managers, supervisors in Vietnamese companies to enhance and better the employees' performance in the future ii TABLE OF CONTENTS ACKNOWLEDGEMENTS i ABSTRACT ii TABLE OF CONTENTS iii ABBREVIATION v LIST OF TABLES vi LIST OF FIGURES .vii LIST OF EXHIBITS viii LIST OF FORMULA ix THE IMPACT OF ORGANIZATIONAL FACTORS ON EMPLOYEES' PERFORMANCE IN VIETNAMESE COMPANIES CHAPTER INTRODUCTION 1.1 Background 1.2 Research questions and objectives 1.3 Research scope .3 1.4 Research contribution 1.5 Research structure CHAPTER LITERATURE REVIEW 2.1 Introduction 2.2 Theoretical review 2.2.1 Employees’ performance 2.2.2 Organizational factors 2.2.3 Relationship between organizational factors and employees' performance 14 2.3 Research model 16 2.4 Hypotheses summary 17 2.5 Summary 18 CHAPTER .19 RESEARCH METHODOLOGY 19 3.1 Introduction 19 3.2 Research design 19 3.3 Measurement scale 20 3.4 Sample size 22 3.5 Sampling techniques 22 3.6 Data collection methods .22 3.6.1 Primary data collection 22 3.6.2 Secondary data collection 22 3.7 Data quality control 23 3.7.1 Validity 23 3.7.2 Reliability 23 3.8 Data analysis method 23 3.9 Summary 24 CHAPTER .25 DATA ANALYSIS 25 4.1 Introduction 25 4.2 Pilot testing 25 4.3 Descriptive statistics 27 4.4 Assessment and refinement of measurement scale 28 4.4.1 Refinement of measurement scale 28 4.4.2 Exploratory Factor Analysis (EFA) 31 4.4.3 Refined research model and hypotheses 35 4.5 Hypotheses testing 36 4.5.1 Regression analysis 36 4.5.2 Hypotheses testing 39 4.6 Summary 40 CHAPTER .42 CONCLUSIONS 42 5.1 Introduction 42 5.2 Findings 42 5.3 Managerial implications and recommendations 43 5.4 Limitations and future research direction 45 REFERENCE 46 APPENDICES 51 APPENDIX A: QUESTIONNAIRE IN VIETNAMESE 51 APPENDIX B: DESCRIPTIVE STATISTICS 57 APPENDIX C: SURVEY RESULTS 59 APPENDIX D: SURVEY RESULTS 62 APPENDIX E: SURVEY RESULTS 64 ABBREVIATION ORGF: Organizational Factors ORGC: Organizational Culture WENV: Working Environment LEAD: Leadership COM: Communication TEAM: Teamwork SPSS: Statistical Package Software for Social Science LIST OF TABLES Table 2.1: List of variables Table 3.1: Measurement scale 21 Table 4.1: Reliability analysis of pilot survey .26 Table 4.2: Descriptive statistics 28 Table 4.3: Reliability analysis of official survey 30 Table 4.4: KMO and Barlett’s Test 31 Table 4.5: Refined rotated component matrix 31 Table 4.6: Reliability analysis of refined model 32 Table 4.7: KMO and Barlett;s test for employees’ performance 32 Table 4.8: Component matrix 33 Table 4.9: Variables in Leadership .34 Table 4.10: Regression analysis of employees' performance .37 Table 4.11: Hypotheses summary 37 LIST OF FIGURES Figure 2.1: Research model 17 Figure 3.1: Research process .19 Figure 4.1: Refined research model .36 Figure 4.2: Result of refined research model .38 vii LIST OF EXHIBITS Exhibit 1.1: Vietnam competitiveness ranking, 2010-2011 LIST OF FORMULA Formula 3.1: Cronbach’s alpha coefficient 23 Hoàn toàn khơng đồng ý Hồn tồn đồng ý Cơng ty tơi tôn trọng đề cao tất nhân viên * Hồn tồn khơng đồng ý Hồn tồn đồng ý Các lãnh đạo cơng ty tơi hiểu rõ họ làm * Hồn tồn khơng đồng ý Hồn tồn đồng ý Cơng ty tơi có sách tốt phúc lợi làm hài lòng tất ngƣời làm việc * Hồn tồn khơng đồng ý Hồn tồn đồng ý Tôi cho công ty nơi tuyệt vời để làm việc * Hồn tồn khơng đồng ý Hồn tồn đồng ý Môi trƣờng làm việc công ty giúp cho nhân viên cân cơng việc sống * Hoàn toàn khơng đồng ý Hồn tồn đồng ý So với cơng ty khác, cơng ty tơi có cơng cụ phƣơng pháp truyền thông hiệu * Hồn tồn khơng đồng ý Hồn tồn đồng ý Nhìn chung, thơng tin cơng ty tơi đƣợc truyền thông tới nhân viên tốt * Hồn tồn khơng đồng ý Hồn tồn đồng ý Tất thơng tin kiến thức đƣợc chia sẻ rộng rãi công ty *1 Hồn tồn khơng đồng ý Hồn tồn đồng ý Tơi có đầy đủ thơng tin để hồn tất cơng việc cách tốt * Hồn tồn khơng đồng ý Hồn tồn đồng ý Cơng ty tơi coi trọng làm việc nhóm * Hồn tồn khơng đồng ý Hoàn toàn đồng ý Các cấp quản lý ln hỗ trợ nhân viên * Hồn tồn khơng đồng ý Hồn tồn đồng ý Tơi nhận đƣợc hợp tác tốt ngồi phận tơi làm việc * Hoàn toàn khơng đồng ý Hồn tồn đồng ý Các nhân viên cơng ty ln hợp tác với tơi để hồn thành công việc cách tốt * Hồn tồn khơng đồng ý Hồn tồn đồng ý KẾT QUẢ LÀM VIỆC Tôi tin nhân viên làm việc hiệu * Hồn tồn khơng đồng ý Hồn tồn đồng ý Tơi hạnh phúc với chất lƣợng kết công việc * Hồn tồn khơng đồng ý Hồn tồn đồng ý Sếp tin nhân viên hiệu * Hoàn tồn khơng đồng ý Hồn tồn đồng ý Các đồng nghiệp tin nhân viên làm việc suất * Hồn tồn khơng đồng ý Hồn tồn đồng ý Tơi ln hồn thành nhiệm vụ đƣợc giao cách hiệu * Hồn tồn khơng đồng ý Hồn tồn đồng ý THƠNG TIN CÁ NHÂN Anh/chị vui lịng cung cấp số thơng tin cá nhân cách chọn câu trả lời thích hợp Tôi cam đoan nội dung dƣới đƣợc bảo mật sử dụng cho mục đích nghiên cứu Giới tính anh/chị * Nam Nữ Anh/chị thuộc nhóm tuổi nhóm dƣới đây? * Dƣới 25 tuổi Từ 25 đến 30 tuổi Từ 30 đến 40 tuổi Trên 40 tuổi Cấp bậc công việc anh/chị nay? * Nhân viên Trƣởng nhóm Trƣởng phịng Giám đốc Other: Cơng ty anh chị cơng ty * Tƣ nhân Nhà nƣớc Vốn đầu tƣ nƣớc Đa quốc gia Other: CHÂN THÀNH CẢM ƠN ANH/CHỊ RẤT NHIỀU! APPENDIX B: DESCRIPTIVE STATISTICS Gender of respondents Age of respondents Enterprise Ownership Job Level APPENDIX C: SURVEY RESULTS Rotated Component Matrix Component ORGC 886 168 217 -.016 ORGC 843 181 -.083 275 ORGC 800 067 211 148 ORGC 215 715 -.028 208 WENV 082 -.091 171 897 WENV 415 116 241 519 WENV -.017 291 -.035 784 COM 082 423 325 582 COM 126 765 324 023 COM 192 355 603 082 COM 086 319 847 160 TEAM 053 634 553 094 TEAM 381 619 246 165 TEAM 811 214 170 -.099 TEAM 222 -.016 756 138 Extraction Method: Principal Component Analysis Rotation Method: Varimax with Kaiser Normalization Total Variance Explained Component Initial Eigenvalues Total % of Cumulative Variance % Extraction Sums of Squared Rotation Sums of Squared Loadings Loadings Total % of Cumulative Variance % Total % of Cumulative Variance % 5.805 38.697 38.697 5.805 38.697 38.697 3.283 21.890 21.890 2.031 13.540 52.236 2.031 13.540 52.236 2.507 16.714 38.604 1.611 10.743 62.979 1.611 10.743 62.979 2.448 16.318 54.922 1.056 7.042 70.022 1.056 7.042 70.022 2.265 15.100 70.022 894 5.958 75.979 844 5.628 81.607 670 4.467 86.074 520 3.465 89.539 422 2.813 92.352 10 330 2.198 94.550 11 247 1.650 96.200 12 208 1.388 97.587 13 200 1.335 98.922 14 093 619 99.541 15 069 459 100.000 Extraction Method: Principal Component Analysis Total Variance Explained Component Initial Eigenvalues Total Extraction Sums of Squared Loadings % of Cumulative Variance % 3.183 63.665 63.665 772 15.448 79.112 454 9.070 88.183 376 7.516 95.699 215 4.301 100.000 Extraction Method: Principal Component Analysis Total 3.183 % of Cumulative Variance % 63.665 63.665 Results of Hypotheses testing Variables Entered/Removed Model a Variables Entered Variables Removed WENV, ORGC, COM, LEAD Method b Enter a Dependent Variable: EP b All requested variables entered Model Summary Model R R Square Adjusted R Square Std Error of the Estimate a 732 536 525 2.04827 a Predictors: (Constant), WENV, ORGC, COM, LEAD ANOVA a Model Sum of Squares df Mean Square Regression 824.492 206.123 Residual 713.222 170 4.195 1537.714 174 Total a Dependent Variable: EP b Predictors: (Constant), WENV, ORGC, COM, LEAD F 49.130 Sig b 000 APPENDIX D: SURVEY RESULTS EP ORGC LEAD COM WENV Pearson Correlation Sig (1-tailed) N Descriptive Statistics Mean Std Deviation 17.3143 2.97278 12.4514 3.00702 10.4857 2.27898 9.9714 2.12383 6.6286 1.55522 EP ORGC LEAD COM WENV EP ORGC LEAD COM WENV EP ORGC LEAD COM WENV Correlations EP ORGC 1.000 405 405 1.000 512 472 666 389 423 166 000 000 000 000 000 000 000 014 175 175 175 175 175 175 175 175 175 175 LEAD 512 472 1.000 531 294 000 000 000 000 175 175 175 175 175 N 175 175 175 175 175 COM WENV 666 423 389 166 531 294 1.000 275 275 1.000 000 000 000 014 000 000 000 000 175 175 175 175 175 175 175 175 175 175 a Residuals Statistics Minimum Maximum Mean Std Deviation 10.9881 20.8206 17.3143 2.17680 -4.44962 3.98705 00000 2.02459 Predicted Value Residual Std Predicted -2.906 Value Std Residual -2.172 a Dependent Variable: EP N 175 175 1.611 000 1.000 175 1.947 000 988 175 Collinearity Diagnostics Model Dimension Eigenvalue Condition Index a Variance Proportions (Constant) ORGC LEAD COM WENV 4.884 1.000 00 00 00 00 00 046 10.294 01 29 02 01 61 029 12.930 00 59 10 38 14 021 15.190 42 00 66 13 09 019 16.015 57 11 21 48 15 a Dependent Variable: EP APPENDIX E: SURVEY RESULTS ... 23 THE IMPACT OF ORGANIZATIONAL FACTORS ON EMPLOYEES? ?? PERFORMANCE IN VIETNAMESE COMPANIES CHAPTER INTRODUCTION This chapter includes five sections The first section introduces the background of. .. Based on the findings of this chapter on organizational factors, this research will attempt to find out the set of organizational factors and set of employees' performance in Vietnamese companies. .. organizational performance What is lacking in existing literature is an understanding of the intervening mechanism that explains the path of the influence from organizational context to organizational