Researchbackground
Effective leadership is crucial for driving change that enhances efficiency and profitability, particularly in the labor-intensive FMCG industry, which faces increasing environmental demands Leadership skills enable organizations to better utilize human resources and effectively address environmental pressures However, research on leadership within Vietnam's FMCG sector has been somewhat overlooked From a human relations perspective, an employee's stress levels are influenced by the personality traits of their superiors, such as temperament, openness, industriousness, and pleasantness Positive traits can alleviate stress and boost employee satisfaction Understanding the impact of leadership skills and styles can help organizations optimize their human resources and navigate environmental challenges successfully.
(2013),theturnoverrateamongworkersislikelyt o g r o w t h i s yeara s m a n y h o p e t o c h a n g e t h e i r j o b s , a n o n l i n e s u r v e y h a s f o u n d Fast- movingconsumergoods,pharmaceuticals,oil,and gasarepredictedto be thetop sectorsofturnoverrate.Thehighturnoverrateofemployeescomesfrommanyreasons.One ofthemostimportantreasonsthatleadtoresignationofemployeeisnotappropriatelead ership.Employeesfeelunsatisfiedwiththeirboss.Theydecidetoquitjobinshorttimeofworking.T h
2 e w o r k p l a c e s t r e s s isr e c o g n i z e d , b u t l i t t l e a t t e n t i o n isg i v e n t o t h e i n c i d e n c e o f t h i s probleminthethisindustryinVietNam,despitethegrowthofthissector,andtheobviousreleva nceofstresstofluidsituationswheremuchdependsoninter-personalrelations.
Leadership is a compelling topic that has led to the development of various theories aimed at identifying effective leaders It can be defined as a social influence process that involves setting objectives for a group or organization, motivating behaviors to achieve these goals, and shaping group dynamics and culture (Yukl, 1994) Key constructs such as job stress, burnout, organizational commitment, and job performance have been extensively studied and empirically tested in industrialized countries (Baba, Jamal & Tourigny, 1998; Maslach, 2003) Job stress is characterized as an individual's emotional and physical response to perceived threats within the work environment (Jamal, 2005) and can significantly impact various outcomes, including job performance, organizational effectiveness (Borucki, 1987), personal relationships, and overall health (Bosma et al., 1998).
Researchquestionsandresearchobjectives
Theturnover ratein Companies inV i e t n a m is growingespecially inSalesdepartm entof F MCG s companies,therearefewstudiesoftheinfluenceofleadershipbehaviors onbotho rg an izat io nal andleadereffectiveness.Thatiswhy
FMCGcompaniesandemployeeswhow o r k insales sectoraremainly focusoft hi s study T h e proposed r esea rc h questionis as fo l l o w s:
Researchcontribution/significance
Thes t u d y findings a d d t o t h e f i e l d o f l e a d e r s h i p w i t h i n f o r m a t i o n o n t h e r e l a t i o n s h i p o f leadersandfollowersintermsofthedegreetowhichleadershipstylesm i g h t r e l a t e t o e mployee‟sstressintheworkplace.
Therearerelationsbetweenleaderpowerbasesandsubordinates‟jobstress.Thefindin gssupportthatLegitimatepowerbasestimulatejobstress,Rewardpower,Expertpowera ndC o e r c i v e Powerdonotstimulatetojobstress.ThathelpstheboarddirectorassociateswithH Rdepartmentoforganizationstrainmanagers/ leadersofcompaniestouseeffectivelykindo f leadershipstylestoreducejobstressofsubordinateandi ncreasetheeffectivenessofboththeleaderandtheorganization.
Ifanorganizationwantstosucceedinarapidlychangingbusinessenvironment,itisbetterf or ma nagerstou s e , R e w a r d p o w e r , E x p e r t p o w e r a n d C o e r c i v e P o w e r t h a n L e g i t i m a t e power.Managersusevariousleadershipstylestoinfluencesubordinates,decreasetheirjo bs t r e s s andtogetthingsdoneinorganizations.Jobperformancewillincreasesothat,itwilli ncreasethesuccessoftheirorganization.
Scopeof thestudyanddelimitation
Theframeworkofthisstudyistoanalyzetheinteractionamongmajorvariablesofpowerb a s e s depicted.The primarydataused in this studyis securedthroughsurveyquestionnaire.T h e respondentsofthisstudyarefrommanycompanies inVietNambutarelargelyfromS a l e s d e p a r t m e n t a n d marketingd e p a r t m e n t , w h i c h h a v e h i g h t u r n o v e r r a t e a c c o r d i n g t o M a r k e t RemunerationReportfromHayGroup(2 013).Thisstudyhaslimitationsthatcouldb e futureresearch t o p i c s , sucha s otherse c t o r s , demographic c h a r ac t e r i s t i cs o f t h e p a r t i c i p a n t s , e t c T h e s t u d y f o c u s e s o n e m p l o y e e s a n d managersw h o w o r k i n p o p u l a r companiesinHoChiMinhCityofVie tNam(Unilever,P&G,Colgate,Pepsi, Coca–
Cola,Vinamilk,Bank,IBM,KPMG,Etc.).Thisstudyfocusesmuchonleadershippowerbas es,h o w itaffectsonjobstress.
Researchstructure
The research is organized into five main chapters Chapter 1 outlines the research background, problem, questions, objectives, delimitations, contributions, significance, scope, and thesis structure Chapter 2 provides a literature review that discusses key concepts related to the researched topic, including leadership power bases and job stress, followed by a presentation of the conceptual research model and its hypotheses Chapter 3 details the methodology employed to test the research model Chapter 4 presents the results of data analysis, hypothesis testing, and discussions based on the research findings Finally, Chapter 5 summarizes the research results, highlighting the findings, limitations, and recommendations.
Thischapterintroduceskeyconcepts relatedtotheresearchertopicandliteraturerelating toleadershippowerb a s e s a n d j o b s t r e s s o f employeew h i c h i n c l u d e s i n p r e v i o u s r e s e a r c h r e s u l t , discussionsandarguments.Throughoutthischapter,variableswillbeesta blisheda n d g r o u p e d i n t o r e l e v a n t f a c t o r s T h i s c h a p t e r a l s o m e n t i o n s somep r e v i o u s s t u d i e s a n d experiencesrelatedtotheresearchtopic.
Literaturereview
Theextensiveamountofresearchperformedonleadershipandstressoverthepastseverald e c a d e s p r e c l u d e d a n e x h a u s t i v e r e v i e w o n e a c h t o p i c T h e p u r p o s e o f t h i s s t u d y ist o providea n o v e r v i e w o f l e a d e r s h i p stylesa n d j o b s t r e s s a n d layt h e f o u n d a t i o n fora n empiricalr e v i e w o f t h e correlationb e t w e e n l e a d e r s h i p s t y l e s a n d j o b s t r e s s E r k u t l u andChafraalreadyexaminedt h e i n f l u e n c e o f l e a d e r s h i p p o w e r b a s e s o n s u b o r d i n a t e s ‟j o b s t r e s s atboutiquehotelsinTurkeyin2006.
BrianE.Daenzer(2009)alsoprovedthequantitativecorrelationofleadershipstylesandjobstressina MidwestUnitedStatesautocompany.Stillnow,therehavenothasstudyinVietNamsofarabo u t therelationship ofL e a d e r s h i p powerbases an d Jobstress Theinvestigationoftopic isverynecessaryineverybusinessandeveryoccupation.Leadershipstyleshave animpacto n t he employee o f an organization, andjobstr ess m i g h t correlate w i t h certainstylesof leadership.TheresearchstudiedemployeemainlyfromSalesDepartment.
ConceptofLeadershipand thebasesof power
Legitimatepower
Legitimate power refers to an individual's ability to influence the behavior of others based on their position within an organization, often known as formal authority This power is granted by the organization, allowing individuals in specific roles to direct others within the scope of their authority For instance, when a manager requests an employee to work late on a project, they are exercising their legitimate power Managers can strengthen their position power by establishing policies and procedures, such as requiring all new hires to receive their approval, thereby exerting authority over the hiring process (DuBrin, 2009).
Rewardpower
Reward power is the ability to influence others by providing desired rewards, which can be financial, like pay raises or bonuses, or non-financial, such as promotions, recognition, and more responsibility Managers can effectively use reward power to shape employee behavior as long as those rewards are valued by the employees According to French and Raven (1959), this power relies on the ability to offer positive incentives while minimizing negative aspects However, it must be used judiciously to avoid employees becoming reliant on rewards for completing routine tasks, which are part of their contractual obligations Frequent reward offerings can diminish their impact, leading to employee fatigue, especially if the rewards are perceived as trivial For instance, if a manager offers a promotion that employees do not value due to personal circumstances, the manager's reward power is effectively diminished.
Coercivepower
Coercive power refers to an individual's ability to influence others' behavior through the threat of punishment or the actual imposition of consequences This form of power is primarily a potential influence rather than an active one According to French and Raven (1959), the effectiveness of coercive power is determined by the severity of the threatened punishment and the perceived likelihood that the individual can avoid it by complying For instance, employees may follow a manager's orders out of fear of repercussions Common organizational punishments include reprimands, undesirable work assignments, withholding information, demotion, suspension, or termination However, the use of coercive power can have detrimental effects and should be exercised cautiously, as it often leads to negative feelings towards the authority figure.
Expertpower
Expert power refers to an individual's ability to influence others' behavior through recognized knowledge, skills, or abilities Physicians, computer specialists, tax accountants, and economists exemplify this power due to their expertise, which often leads people to follow their advice Notably, experts can wield significant influence regardless of their rank within an organization's hierarchy As organizations become more technologically complex and specialized, the expert power of members at all levels becomes increasingly vital Some firms intentionally involve lower-level staff with expert power in top-level decision-making processes In today's high-tech workplaces, knowledge is indeed a form of power.
Referentpower
Referent power is the ability of an individual to influence others based on their admiration, respect, and likability According to French and Raven (1959), it is characterized by a desire for identification with the leader This type of power arises when followers perceive qualities in their leaders that they aspire to emulate Followers identify with their leaders and strive to imitate them However, referent power is contingent upon how followers view their leader's personality, meaning that not every leader will possess referent power over all their followers While some leaders may only influence a select few, others, like Gandhi, have inspired millions through their charisma and personal qualities.
Forexample,supposeyouarefriendswithyourboss.Oneday,sheasksyoutotakeonaspecialprojectth atyoudonotlike.Toanyoneelse,youwouldlikelydeclinetherequest, butbecauseofyourspecial relationshipwiththisindividual,youmaydoitasafavor.Inthisinstance,yourbosshaspowerovery oubecauseo f yourpositiverelationship.
JobStress
Stressisapervasiveandessentialpartoflife.Itisdefinedasthereactionofindividualstodema nds( s t r e s s o r s ) i m p o s e d u p o n t h e m S t r e s s playsa p o s i t i v e r o l e byt r i g g e r i n g t h e m o b i l i z a t i o n ofadaptiveresponses(Selye,1976).Contrarytopopularbe lief,stresscanbeassociated withbothpleasantandunpleasantevents(Levi,1972)andon lybecomesproblematicw h e n i t r e m a i n s u n r e s o l v e d b e c a u s e o f l a p s e s i n thei n d i v i d u a l ‟ s a d a p t i v e capacity.Whenthishappens,theindividualbecomesdisorganized,disori entedandthereforelessabletocope;stressrelatedhealthproblemsmayresult.
Jobstressissynonymous withoccupational stress, andorganizationalstress Thes etermsreflectexcessivestrainleadingtoharmfulphysicaloremotionalresponsesthatoccur whenthecapabilitiesoftheworkercannotmatchtheresourcesorrequirementsofthejob(Spielb erger&Vagg,1999).
S identifiedt h e f r e q u e n c y ands e ve r i t y ofs p ecifics t r es s o r s T h e r e s p o n d e n ts ‟ r a t i n g s w e re tabulatedtocalculatemeasuresofoveralljobstress,jobpressures,andlackofo r g a n i z a t i o n a l support(Spielberger&Vagg,1999).
Thetermstresswillattimesbeinterchangeablewithjobstress.Inthegeneraldefinitionofst r e ss f o r t h e study,s t r e s s i s a measureo f p h y s i o l o g i c a l a n d t w e n t y - t w o p s y c h o l o g i c a l stressorsaswellast h e frequencyandseverityofspecificstressorsthatar especifictow o r k p l a c e stress(Spielberger&Vagg,2005).
Relationshipsamongconcepts
LegitimatePower and JobStress
Subordinatesplayamajorroleintheexerciseoflegitimatepower.Ifsubordinatesviewt h e u s e o f p o w e r a s legitimate,theyc o m p l y ( G i b s o n , I v a n c e v i c h , Donnelly,& K o n o p a s k e , 2 0 1 2 ) T h a t i s , l e g i t i m a t e p o w e r c o v e r s a r e l a t i v e l y n a r r o w r a n g e o f i n f l u e n c e a n d , t h e r e f o r e , i t m a y b e i n a p p r o p r i a t e t o o v e r s t e p t h e s e bo undsG r e e n b e r g , 2 0 1 1 ) Forexample,abossmayrequirehissecretarytotypeacompan ydocument.
However,itwouldbeanabuseofpowertoaskthatsecretarytotypehisdoctorald is s e r t at io n
T h e s e c r e t a r y m a y d e c i d e t o c o m p l e t e t h e t a s k , b u t d o i n g s o w o u l d n o t b e wit hinthescopeoftheboss‟sformalauthority.Legitimateauthorityisaperson‟sauth or i tytomakediscretionarydecisionsaslongasfollowersacceptthisdiscretion( B a r n a r d , 19 38:McShane&VonGlinow,2012).
Perceivedlegitimatepowerofthesupervisorpositivelyrelatedtostress,becausethesubordinat eis remindedofresponsibilitiesto be fulfilledand realizes thathisorherperformancewillbemonitoredandevaluated.Theconstantfocusondutiesande valuationw i l l likelyincreasesubordinate stress.Leaders havetherighttoinfluenc eandemployeesh a v e theobligationtoacceptthisinfluence,thiskindofpowermayshown egativerelationwiththestressofemployees.
RewardPowerandJobStress
Rewardpowercanleadtobetterperformance,aslongastheemployeeseesaclearl i n k b e t w e e n p e r f o r m a n c e a n d r e w a r d s T o u s e r e w a r d p o w e r e f f e c t i v e l y , t h e r e f o r e , t h e managershouldbeexplicitaboutthebehaviorbeingrewardedandshouldmakec leartheconnectionbetweenthebehaviorandthereward(Nelson&Quick,2012).Employees alsohaver e w a r d p o w e r o v e r t h e i r managerst h r o u g h t h e u s e o f 3 6 0 - d e g r e e f e e d b a c k systems( M c S h a n e & V o n G l i n o w , 2 0 1 1 ) E m p l o y e e f e e d b a c k a f f e c t s managers‟p r o m o t i o n s andotherr e w a r d s , somanagerst e n d to beh avedifferently towardemployees a f t e r 360- degreefeedbackisintroducedintotheorganization(Mabey,2001).
Ifoneconformstogainacceptance,rewardpowerisawork.However,ifconformitytakespla cet o f o r e s t a l l r e j e c t i o n T h i s p o w e r d e r i v e s f r o m c o n t r o l o v e r p o s i t i v e o r r e w a r d i n g outcomesforsubordinatesareexpectedtobeaneffectivemayincreasethes atisfactionofemployee.Otherwise,iftherewardisnotworthy,theemployeecanbedissat isfactionandeasylookforotherjobopportunity.
CoercivePower and JobStress
The availability of coercive power varies among organizations and managers, with most now implementing clearly defined policies on employee treatment These rules and procedures help prevent superiors from misusing their legitimate power arbitrarily and unethically Additionally, the presence of unions can significantly weaken coercive power It's important to note that individuals do not need to hold a position of authority to possess coercive power; employees can also exert influence through tactics like sarcasm and the fear of rejection to ensure conformity to group norms Many organizations depend on the coercive power of team members to regulate employee behavior.
The threat of disciplinary action for tardiness effectively encourages many employees to be punctual When leaders utilize this power positively, it can foster a pleasant work environment that motivates employees Conversely, if leaders use this authority to control and force compliance, it can lead to disappointment and stress among employees Thus, the hypothesis is as follows:
ExpertPowerandJobStress
Expert power is determined by how much followers attribute knowledge and expertise to a leader Individuals are seen as experts in specific functional areas, such as medicine or technology, but not beyond those domains To be recognized as possessing expert power, a leader must be perceived as credible, trustworthy, and relevant Credibility stems from having the appropriate credentials, as seen with professionals like physicians and tax accountants, who are listened to closely due to their demonstrated expertise However, these specialists may not hold expert power outside their specific fields Additionally, the individual seeking expert power must be trustworthy, maintaining a reputation for honesty, while also being relevant to the context in which they are operating.
Morespecifically,expertpowerofthesupervisorservestoreassurethesubordinateintermso f reducin gjobuncertainty,handlingtaskcomplexity,enablingrole,andgoalclarity( B u s c h , 1980),thusl eadingtolowerstress.Leaderwhousesthiskindofpowerwillmakeemployeefeelmorepleas anttowork,eagertolearnfromtheirleadersalsofeellessstress.T h e hypothesisisasfollow:Hypothesis4:Expertpowerhasthenegativerelationtojobstressofemployee.
ReferentPowerandJobStress
Referent power arises from admiration for others and the desire to emulate them, which explains why celebrities like Michael Jordan and Serena Williams command millions in endorsements, as their influence significantly impacts consumer choices in athletic products (Craig & Douglas, 2006) This concept also applies to business leaders who possess strong reputations, attractive personal traits, or charisma, as a charismatic leader can inspire an entire organization (Kudisch et al., 1995; Tosi et al., 2004) The referent power of a supervisor enhances their attractiveness and acceptance among subordinates, contributing to a more pleasant work environment and reduced stress levels Previous research indicates a positive correlation between expert power, referent power, and subordinate affect (Podsakoff & Schriesheim, 1985).
Perceivingone‟ssupervisortobehighonexpertandreferentpowercanbeseenassimilart o h a v i n g a s t r o n g s o c i a l s u p p o r t s y s t e m a t w o r k T h e s u b o r d i n a t e w o u l d c o n s i d e r t h e supervisor‟sexpertisetobeasourceofworksupport (e.g.resourceforclarifying issuesand
Employee’s Job Stress tacklingdifficultproblems)whilet h e supervisor‟spersonalappealandlikeabilitywouldinducease nseofinterpersonalsupport.
Wemayliketheirpersonalities, admiretheiraccomplishments, believeintheircause s,ors ee t h e m a s r o l e m o d e l s T h i s b a s e o f p o w e r h a s a t r e m e n d o u s i m p a c t o n i n t e r p e r s o n a l relationship Therefore,thehypothesisisasfollow:
H4 Expertpowerhasthenegative relationto job stress ofemployee.
H5 Referentpower has thenegative relationto jobstressofemployee.
Avarietyofmodelshasbeenusedtomeasuretheinfluenceofleadershippowerbasesonj o b stressofemployee.Inthisresearch,thereare6constructsusedintheresearchmodel,inadditiont o t y p i c a l constructso f modeli n c l u d i n g c o n s t r u c t : LegitimateP o w e r , R e w a r d
Research Problem/ research objectives and research scope
Concepts, research model and Hypothesis
Pilot Survey in-depth interview with 5 managers and 15 employees
Encode and input data set Data cleaning Descriptive statistics Conbach‟s alpha test for scales Explore factor analysis Regression annalysis
Itisimportanttopresentclearlymethodologythatwillbeusedinthisstudy.Thus,ino r d e r t o e n s u r e t h r o u g h o u t v a l i d i t y a n d r e l i a b i l i t y o f t h e r e s e a r c h , t h i s c h a p t e r w i l l d i s c u s s aboutmethodsofresearchwillbeconductedinrealworld.Moreover,itisalsoim portanttoevaluateanapproachofresearchusedinordertoa n sw e r theresearchq u e s t i o n s Inthischapter,theauthorreportedthemethodologythattheauthorusedtod o theresearch.
ResearchProcess
Phase Type Methods Subjects Howto
1 Pilot Qualitative Managersoremployeesof Discuss leadership and how manageemployeesfeelstressabout employeethat.
2 Main Quantitative Leadership power base Questio
ResearchDesign
This research was conducted in two phases: qualitative research and a quantitative survey involving employees from various companies in Ho Chi Minh City, Vietnam The objective of the qualitative phase was to explore and clarify factors influencing job stress among employees, building on insights from previous studies and adapting them to the Vietnamese context Following this, the quantitative phase validated the findings through a broader survey, ensuring a more comprehensive understanding of the results Details of both the qualitative and quantitative phases are outlined in the subsequent sections.
Amainsurveywasconductedbymeansofonlinesurveyinvitationstobesentbyema ilsorwereimplementedbythequestionnairesinhardcopiesbyfacetofacef o r cus tomers.Datawascollectedtwoweeksafter.
Dataw a s t o b e p r o c e s s e d a n d a n a l y z e d byu s i n g E x p l o r a t o r y F a c t o r Analy sisa n d C r o n b a c h ‟salphareliabilityanalysistovalidatethequestionnaireandma kesurether e l i a b i l i t y o f t h e measurements c a l e S t a n d a r d multipler e g r e s s i o n w a s u s e d t o t e s t h y p o t h e s e s Thenthemainresultsweredrawnandreported.
ResearchprocessneededtoachievetheresearchobjectivesinFigure1.Clearly,t heresearchprocedureinthisstudyconsistsofeightsteps:S t e p 1:Researchtopic withobjectiveswasformulated
Step2:D e v e l o p t h e i n i t i a l r e s e a r c h m o d e l a n d a c o n s o l i d a t e d d r a f t q u e s t i o n n a i r e B a s ed o n t h e l i t e r a t u r e r e v i e w , t h e c o n c e p t u a l m o d e l a b o u t r e l a t i o n s h i p b e t w e e n c o m p o n e n t s wasdevelopedandthedraf tquestionnairewasconductedfromvariousm e a s u r e m e n t scalesinsomepreviou sstudies.
Step3:Conductaqualitativepilotstudytorefineaquestionnaire.Thefirststepofthep i l o t stu dyisa q ua l i t a t i v e o ne, inw hic h, s e r i es o f i n d i v i d u a l in - dep th interviews/ discussions5–15managersor employeeswere undertaken to evaluatether e l e v a n c e andsufficiencyofvariousmeasuresoftheconsolidateddraftques tionnaire.D i s c u s s i o n s wererecorded,summarizedandisthebasisfortheadjustm ent,additiono r deletionofobservedvariablesinthescale.
Step4:Conductaquantitativepilotsurveytotesttheclarityofthequestionnaire.A quantitativepilotstudywasconductedasthesecondroundofthispilotstudyinwhichindivid ualface-to– faceinterviewswereundertakenwith20employeeswhomostlyw o r k inFMCGco mpaniesformorethanoneyear.Thepurposeofthisdiscussions/interviewsis:
Thefeedbacksfromtheseemployeewereseriouslytakentorefinethequestionsinaw a y toensure theclearunderstanding ofmostinterviewees(thepresented language isappropriateornot,thesentencemaybeambiguousornot)sothattheycouldanswert h e questionsproperly.Thisrefinedquestionnairewasthefinalversiontobelaunchedinthefollo wingmainsurvey.
Step5:Launchamainsurveyand collectthedata twoweeksafter. Themainsurveyw a s conductedafterthequestionnairewasrefinedbasedonthere sultsoftheq u a n t i t a t i v e p i l o t survey.Sowesuggestthesamples i ze consistsofa t l e a s t 175employees,a b o u t 350 questionnairesw e r e s e n t o u t , 3 0 0 responsesarereceivedtwow e e k s afterthesurveyw aslaunched.
Step6:TestthevalidityofthescaleswithExploreFactoranalysis(EFA)andmodifytherese archmodelaccordingly.
Fromt h e d a t a c o l l e c t e d f r o m t h i s mains u r v e y , t h e measuresw e r e a s s e s s e d byE x p l o r a t o r y FactorA n a l y s i s t o ex p l o r e t h e i n t e r - r e l a t i o n s h i ps a m o n g a se t o f v a r i a b l e s Theinter- correlationsamongthevariableswereconsideredstrongwhenthecorrelationmatrix forevidenceof coefficientswas0.3 Barlett‟stestof sphericitywass i g n i f i c a n t (p