Researchbackground
In today's competitive landscape, organizations recognize the critical role of human resources in driving growth and development, particularly in sectors like banking and finance The workforce in these industries possesses specialized professional characteristics and undergoes training in standardized processes, making them essential for the technical operations of each bank Furthermore, banks understand that employee commitment significantly contributes to long-term success and value creation Engaged employees are not only passionate about their work but also act in ways that benefit the organization This level of engagement helps optimize talent retention, as employees are more likely to remain with the company even when other job opportunities arise.
Facingtotherecentlyglobalfinancial crisisan dtheheavydownfallofban k in g and f i n a n c e s e c t o r i n V i e t N a m , mosto f b a n k s a d j u s t H R p o l i c i e s a n d d i d p e r s o n n e l r e s t r u ct u r i n g Themaincauseiscostofcapitalorfundisinpressure.Ba nkersbegantoreducelaborandtightencompensationbenefits Theresultistheturno verrateinmanybanksareincreasing.Whilebankersfaceto difficultiesasrecruitingandtrainingcosts,asw e l l asdestabilizingforbusiness,theemploye esalsohaveunstablecareerbecausetheydonotensuretheconditionsfortheirlong- termcommitment.Turnoverisasymptomofal a r g e r systemicproblemsuchasineffectiver etentionmanagement,companiesoughttou n d e r s t a n d whatcausespeopletocomm
2 itthemselvestobeingproductiveandloyal.Soit‟sw o r t h t o k n o w w h a t i s t h e c a u s e o f thise m p l o y e e t u r n o v e r a n d h o w tomake employeesh a v e long- termc o m m i t m e n t o r e n g a g e m e n t t o t h e w o r k p l a c e T h e a u t h o r aimst o d e t e r m i n e t h e e f f e c t o f H R p r a c t i c e f a c t o r s tothee m p l o y e e c o m m i t m e n t inb a n king i n d u s t r y i n HoC h i M i n h c i t y T h e r e b y , somes u g g e s t i o n s a r e g i v e n t o h e l p o r g a n i z a t i o nsmaintaintheirprecioushumanresources.
Researchproblems
According to a KPMG survey conducted at the end of 2012, 46% of banks indicated they would not increase their workforce in 2013, reflecting a downturn in employment trends within the banking sector The financial statements of major local banks showed a decline in employee numbers, with Asia Commercial Bank (ACB) halting the hiring of over 100 new employees by the end of 2012 In the first half of 2013, ACB experienced over 600 employee departures, a number that exceeded 1,000 by year-end Significant layoffs were also reported by Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank), which let go 79 employees in the first quarter and 110 in the second quarter of 2013 Additionally, the Bank for Investment and Development of Vietnam (BIDV) reduced its workforce by 285 employees in the first four months of 2013, while Vietnam Export-Import Bank (Eximbank) cut 29 positions in Q1 and 36 in Q2 of the same year Furthermore, Eximbank's salaries and allowances decreased by 6.5% compared to the previous year.
319billionsVietnamdong.Rankedfirstinthelistofbankshavethehighesta v e r a g e i n c o m e i n t h e b a n k i n g i n d u s t r y , MilitaryBank( M B B a n k ) h a s c u t a l m o s t 2 2 5 staff i n t h e f i r s t quartero f 2 0 1 3 A t a r e c e n t s h a r e h o l d e r s meetingi n 2 0 1 3 , M a r i t i m e
The bank has announced plans to reduce its wage bill to 731 billion VND in 2012, which involves cutting 679 positions, representing 13.9% of its total staff This decision stems from a current surplus of staff and a lack of high-quality employees The bank aims to prioritize quality over quantity during this challenging period, leading to significant staff reductions as they seek to replace underperforming employees with more qualified candidates As a result, there is a noticeable shift within Vietnamese banks, with a growing demand for experienced staff Many banks are actively recruiting from competitors to capitalize on their expertise, which helps minimize training costs and leverage existing customer relationships This trend is particularly evident for managerial and senior positions, where experience is highly valued.
Despitedoingpersonnelrestructuringandlayoff,wagebillandrelatedbenefitstoempl oyeesstillaccountforthelargestcomponentofoperatingexpensesinalmostVietnamesebanks Accordingtostatisticsfromthefinancialstatementsof33banksmadebyKPMG,anreputationaud itfirm,salarybillsaremorethanhalfofthetotaloperatingc o s t s in2012.Notonlyin2012 ,statisticsfromthe2013semi- annualreportshowedbyVnExpress.net,int he f i r s t 6monthso f 2 0 1 3, b ot hst ate - o wne d banks and co mme rc ia l b a n k s s t i l l s p e n d h a l f ofoperatingexpensesonsalaryalthoughmostofthemwereefforts
Figure 1.1 Components of Operating Costs of Vietnamese Banks in 2012
1% 7% 1% tax, fees wage property management activities insurance for deposit of customers provision for diminution in value of long term other
Vi et co mb an k), B I D V a n d MBB a n k , s a l a r y a n d b o n u s e s t o e m p l o y e e s i n t h e f i r s t 6 monthsof2013were54%oftotaloperatingexpenses.
ButaccordingtoKPMG,reducingemployeeisthecurrenttrendofglobalbanks,t heaverageproportionofspendingonhumanresourcesaccountingfor40%ofoperatingco st s Aswellasspendingtoomuchonstaffsalaries,increasingnumberofstaffoftheViet namesebankingsectorcontinuestogo againstthe generaltrendof theworld. Infact,t h e banksoftheworldarefocusedondevelopingproductsandservicescombi nedwithtechniquessuchas Internet Banking, MobileBanking andtheydonotrequiredeveloping branchn e t w o r k T h e r e f o r e , t h e i m p o r t a n t a n d e s s e n t i a l t h i n g a r e d e v e l o p i n g b u s i n e s s strategiesincollaboratedwithadjustingHRpoliciesunderpressureoflimit edfundstoincreasecompetitiveadvantageandretaincoretalentemployees.
Researchobjectivesandquestions
Basingonp r e v i o u s r e l i a b l e t h e o r i e s , t h i s r e s e a r c h a i m s t o d e t e r m i n e t h e m a j o r f a c t o r s impacttoemployeecommitment.Thereforetheauthoranalyzsean dgivessomeimplicatedsuggestionsf o r bankingmanagersorbankerstor e t a i n a n d m a i n t a i n t h e i r p r e c i o u s humanresources.Thespecificresearchquestionsare:
- Whata r e t h e mainf a c t o r s i n H R M t h a t a f f e c t t o employeec o m m i t m e n t inb a n k i n g i n d u s t r y inHoChiMinhcity?
Researchscope
Theobjectofthis studyistheemployees ofbanks inHo Chi
Minhcity,oneoftheb i g g e s t economiccentersofVietNam.Theauthorattemptstoco nductthestudyinallf o u r g r o u p s o f b a n k s i n H o C h i M i n h city(typedbyt h e o w n e r s h i p o f b a n k : S t a t e - Own ed Bank,Joint-StockCommercialBank,Joint- VentureBank,WhollyForeign-O w n e d B a n k /
Research methodology
Thestudyiscarriedoutwithintwostepsrelatingtotwodifferentmethods:Qualitative research: using group discussion method to amend the translatedq u e s t i o n n a i r e suitablewiththepurposesoftheauthoradjusttheobservedvariables.
Quantitativer e s e a r c h:b a s i n g o n c o l l e c t e d d a t a fromq u e s t i o n n a i r e , t h e a u t h o r implementt o t e s t t h e s c a l e a n d v e r i f y t h e t h e o r e t i c a l m o d e l D a t a analyse t o o l ( S P S S v e r s i o n 21)willbeusedforthisresearch.Thepreliminaryscaleistestedthereliabi litybyC r o n b a c h ‟ s A n p h a ,t h e n bye x p l o r a t o r y f a c t o r analysis( E F A ) A f t e r t h a t t h e a d j u s t e d scalewillbe runbyLinearReg ress io n totesttheproposedmodeland thehypotheses T h e researchonlyapproachesintothementionedfactors,itmeansotherfa ctors(ifhave)w i l l beoutofthetopicofthisresearch.
Thischapter pr esen ts research backgroundofth e study,aswellas,researchproble ms, r e se ar c h objectives,researchmethodologyandscopes.
Basedontheresearch objectivesandscopes,researchmethodologyconcerning,literaturer e v i e w a n d e m p i r i c a l modelp r e s e n t e d i n p r e v i o u s c h a p t e r s , t h i s c h a p t e r p a r t i c u l a r l y p r e s e n t s theresearchdesign,methodologyandreportstheprocessesofdoingresearch.
Thischapterpresentsthecharacteristicsof researchsamplesandpresentstheresultofther es ear ch afteranalyzingdata Basedonthe results, theauthorwill maked e e p analysisa b o u t eachfactorthatimpactonemployeecom mitment.
Therearesomerealiablepreviousreasearchsaboutemployeecommitmentorengagement,or ganizationalcommitmentorretentioninmanyfieldsallovertheword.Int h i s chapter,Iprese ntsomepreviouscorrelativebasictheorieswhicharefoundationoft h i s study,a n d m e n t i o n t o d e f i n i t i o n s o f someb a s i c c o n c e p t s , a l s o h y p o t h e s e s a n d pro po sal scalesarepresented.
Employee satisfaction and retention are critical concerns for administrators and researchers, influenced by encouragement and preferential treatment F.W Taylor's classical motivation theory (1915) emphasizes that to motivate staff, administrators must identify effective training methods and utilize economic incentives like salaries and bonuses Similarly, Abraham Maslow (1943) argued that understanding and satisfying employees' needs is essential for motivation, positing that individuals are driven by a complex set of motivations beyond mere rewards or unconscious desires Maslow's theory suggests that people are motivated to fulfill specific needs, highlighting the importance of addressing these needs in the workplace.
.Whenone needisfulfilleda person seeksto fullfilthenextone,andsoon.T h e earliestand mostwidespreadversionof Maslow's(19 43,1954)hierarchyofn e e d s includesf i v e m o t i v a t i o n a l n e e d s , o f t e n d e p i c t e d a s h i e r a r c h i c a l l e v e l s w i t h i n a pyramid.Theoriginalhierarchyofneedsfive- stagemodelincludes:
- BiologicalandPhysiologicalneeds-air,food,drink,shelter,warmth,sex,sleep.
- Esteemneeds- achievement,mastery,independence,status,dominance,prestige,self- respect,respectfromothers.
ThetheoryofhumannatureofDouglasMc.Gregor(1956)alospointedout,thatde pendingontheXnature(whodoesnotliketowork,lazyatwork )ortheYnature( w h o are keentoworkwithhighself- consciousness )oftheemployeestohavemotivatemeasure.FortheXnature,managersshoulde mphasizeelementsbyphysicalstimulation,s p e c i f i c tasksassignedandtoregularlyinsp ectandsupervisethem.Incontrast,withthe
Yn a t u r e , administratorss h o u l d letthemt a k e d e c i s i o n s o n theirjobs,respectt h e i r initiatives,andcreateconditionsfortheirprovenabilityratherthansup ervisethem.
Herzberg's two-factor theory, developed in 1976, is based on empirical research through surveys and direct interviews with employees, contrasting with the theories of Maslow and McGregor that rely on psychological principles This theory identifies two distinct sets of workplace factors: hygiene factors, which prevent dissatisfaction but do not enhance satisfaction, and motivators, which actively promote job satisfaction Hygiene factors must be maintained to avoid employee dissatisfaction, while motivators drive employees to perform energetically and seek fulfillment in their work Understanding these factors is crucial for enhancing employee motivation and overall job satisfaction.
- Hygienefactors(e.g status,jobsecurity,salary,fringebenefits,workconditions)t h a t d o n o t g i v e p o s i t i v e s a t i s f a c t i o n , t h o u g h d i s s a t i s f a c t i o n r e s u l t s f r o m t h e i r ab sence Theseareextrinsictotheworkitself,andincludeasp ectssuchascomp an ypolicies,supervisorypractices,orwages/salary.
- Motivators( e.g c h a l le n g i n g w o r k , r e c o g n i t i o n , r e s p o ns i b i l i t y ) t h a t g i v e p o s i t i v e satisfaction,arisingfromintrinsicconditionsofthejobitself,suchasreco gnition,achi evem ent , orpersonalgrowth
It‟srequiredtosatisfactorilyresolvebothgroupsofhygienefactorsandmotivators.Thist h e o r y s u g g e s t s thattoimprovejobattitudesandproductivity,administratorsmust recognizean da t t e n d tobo th se t s o f c h a r a c t e r i s t i c s an dn o t a s s u m e t h a ta n i n c r e a s e i n sat i s f a ct i o n l e a d s t o d e c r e a s e i n u n p l e a s u r a b l e d i s s a t i s f a c t i o n A n d i t ‟ s c o n s i d e r e d a fundamentalresearchgivengeneralfactorsinHRMandnewpract icalmethodtoresearchhumanb e h a v i o r i n H R M B a s i n g o n t h i s , l a t e r s t u d i e s a r e g o i n g t o r e s e a r c h s p e c i f i c elementinspecificfield.
Over the past decade, research on employee commitment has evolved significantly across various disciplines, providing valuable insights into its conceptualization and the human resource practices designed to enhance it Current studies reveal that viewing commitment as a one-dimensional construct, influenced by specific HR policies, oversimplifies the issue For instance, while flexible working arrangements or additional training may seem beneficial, they cannot address the diverse needs of all employees The success of an organization increasingly relies on the commitment of its workforce, especially in a competitive environment where qualified personnel are essential for maintaining market position Moreover, employee effectiveness and productivity are critical to a company's progress Financial incentives alone are insufficient to drive motivation; therefore, fostering strong employee commitment is crucial, as it leads to improved performance and overall organizational success, whereas low commitment typically results in poor outcomes.
Commitment is defined as a stabilizing force that helps maintain behavioral direction when expectations or equity conditions are unmet (Meyer & Allen, 2001) It requires individuals to honor their commitments despite fluctuating attitudes (Brown, 1996) The strength of an individual's identification with and involvement in an organization is crucial (Mowday et al., 1979) According to Salancik (1977), commitment binds individuals to beliefs that sustain their actions and involvement Allen and Meyer (1990) further describe commitment as a psychological state that connects the individual to the organization.
Iti s t h e p s y c h o l o g i c a l b o n d o f a n employeet o a n o r g a n i z a t i o n , t h e s t r e n g t h o f whichdependsonthedegreeofemployeeinvolvement,employeeloyaltyan dbeliefinthevaluesoftheorganization.AsdefinedbyPoter(1974),employeecommitme ntisther el at i ve s t r e n g t h o f t h e i n d i v i d u a l ' s i d e n t i f i c a t i o n witha n d i n v o l v e m e n t i n a p a r t i c u l a r organization.I t c o n s i s t s o f t h r e e f a c t o r s : A s t r o n g d e s i r e t o r e m a i n a member o f t h e organization;Astrongbeliefin,andacceptanceof,thevaluesandgoalsoft heor gani zati on; Areadinesstoexertconsiderableeffortonbehalfoftheorganization.
Employeem e n t i o n d h e r e a r e p e r m a n e n t e m p l o y e e s c o m p r i s i n g t h e c e n t r a l a n d f o u n d a t i o n a l g r o u p t h a t p r o v i d e s t h e s k i l l s e s s e n t i a l t o t h e s u r v i v a l a n d g r o w t h o f a n o r g an iz a t io n , alsocalled coreemployee Coreemploye earesupportedintheirworkbycontingentorperipheralemployees(BusinessDictionary) Criticaljobfunctionswillber e t a i n e d bysmallg r o u p , r e l a t i v e l y p e r m a n e n t " c o r e " o f e m p l o y e e s w i t h b o a r d s k i l l allowingthemtotackleavarietyofjobs (Janet,2004).AsdefinitionfromRenee(2012)acor eemployeeisafull- timeattendance.Coreemployeeusuallyarerequiredtoworkatl e a s t 4 0 h o u r s p e r w e e k C o r e e m p l o y e e s a r e n e c e s s a r y f o r a b u s i n e s s t o f u n c t i o n A contingentw orkerisusuallyatemporaryworker.Commoncorearepersonwhoworksf u l l time( Renee,2012),theyarethepersonswhorespondmultijobandaffectonotherp e r s o n (Jan et,2004)andworkfororganizationmorethan6months.
Organizational commitment has gained significant attention in recent years, becoming a key focus of human resource management According to Guest (1987), HRM policies aim to enhance organizational integration, employee commitment, flexibility, and work quality Commitment, characterized by attachment and loyalty, can manifest at various levels, including to one's job, profession, department, supervisor, or the organization as a whole Mowdray (1992) defines organizational commitment as comprising three essential components: alignment with the organization's goals and values, a desire to belong, and a willingness to exert effort on behalf of the organization.
Organizationalc o m m i t m e n t measurest h e f e e d b a c k o f employeesf o r t h e company'saffection,itfoundedfromMeyer&Allen( 1997);Porteratal.,
(1974)with5itemsandJanet(2004).AccordingtothemodelwasdevelopedbyMeyer&Allen(19 97),o r g a n i z a t i o n a l commitmentreflectsatleastthreegeneralthemes:
- Affectivecommitmentto theorganization:It‟stheemployeesemotionalattachmentto,ide ntificationwithandinvolvementintheorganization Employeeswithastrongaf fe ctiv e commitmentcontinueemploymentwiththeorganizationbecausetheywantto.
Theperceivedcostassociatedwithleavingit:Theindividualcommitstotheorganizationb e c a u s e he/ sheperceiveshighcostsoflosingo r g a n i z a t i o n a l m e m b e r s h i p i n c l u d i n g economi cc o s t s ( s u c h a s p e n s i o n a c c r u a l s ) a n d s o c i a l c o s t s ( f r i e n d s h i p t i e s w i t h c o - w o r k e r s ) t h a t c o u l d b e i n c u r r e d T h e e m p l o y e e r e m a i n s withtheorg anizationbecausehe/ she“hasto”.Itreferstoanawarenessoftheco st s a s s o c i a t e d w i t h l e a v i n g t h e o r g a n i z a t i o n T h e p o t e n t i a l c o s t o f l e a v i n g a n organization includethethreatofw astingthetimeandeffortspentacquiringnont r an sf er a bl e s k i l l s , l o s i n g a t t r a c t i v e b e n e f i t s , g i v i n g u p s e n i o r i t y – b a s e d p r i v i l e g e s o r havingtouprootfamilyanddisruptpersonalrelationships.Italso developsasaresultoflack ofalternativeemploymentopportunities.Employeesinthiscategory remainbecausetheyneedto.
The obligation to remain within an organization stems from employees feeling a sense of duty to continue their employment This normative commitment can be fostered by organizations through preemptive rewards, such as paying for college tuition Such investments create a perception of indebtedness, prompting employees to reciprocate by committing to the organization until they feel the obligation has been fulfilled However, it's important to note that not all forms of employee commitment correlate with superior performance For instance, an employee with low affective and normative commitment but high continuance commitment may not contribute positively to performance, primarily remaining in the organization due to the high costs associated with leaving.
In2004,Dr.JanetChengLianChewfromMurdochUniversitytestedanddisclos ured c o m p o n e n t s c a l e o f o r g a n i z a t i o n a l commitmenti n h e r p u b l i s h e d r e s e a r c h ThisresearchpresentednotonlyspecificfactorsinHRMbutalsoresearchmethodology t h a t canbeappliedinlaterresearchinotherfields.Accordingtothis,theresearchscalecon sistsfivecomponentsofcommitmentaretraining,leadership,workingenvironment,r e m u n e t i o n andpolicy:
Training :Thatdefinitioniscalledbydifferentwaybytheauthors:Learning,trainingo p p o r t u n i t i e s (Bhavna.&Swati.,2012;Waleed.,2011)trainingandcareerdevelopme nt( M u ham mad ,2011),coaching(Liette,2010),traininganddevelopment,(MohammadA.
Career development is a crucial aspect of human growth, shaping an individual's work identity throughout their lifetime (Dawn R Mc.K, 2012) It begins with early awareness of how people earn a living and progresses through exploration of various occupations, ultimately leading to job preparation and advancement Organizations can enhance employee retention by assisting core employees in defining their career paths, fostering a sense of job security for the future A well-structured career path aligns individual career needs with organizational workforce requirements (Leibowitz et al., 1986) Effective training and career development involve adequate training, job design, and job control, as highlighted by various studies (Blau, 1989; Cammann et al., 1979; Hausknecht et al., 2002; Jones et al., 2001; Warr et al., 1979; Janet, 2004).
A job that offers regular feedback, autonomy, and a clear sense of task completion enhances an employee's career satisfaction Increased perceived control fosters stronger emotional connections with the organization and positively influences employee attitudes and behaviors at work When training aligns with both organizational and personal needs, tasks become intrinsically satisfying, leading to greater employee commitment Conversely, commitment diminishes when employees are assigned repetitive tasks with limited career development opportunities Employees are more engaged and dynamic when they are well-qualified, capable, and properly trained, which further boosts their commitment to the organization.
Leadership :ThatwasdefinedbydifferentwordsasWorkplaceleadership(Bhavna&S w a t i , 2 0 1 2 ) M a n a g e m e n t s t y l e a n d l a c k o f o p p o r t u n i t i e s ( W a l e e d , 2 0 1 1 ) , g o o d leadership(Petra,2011),supervision(Kazi& Sisi,2011),a senseofownershipa n d i d e n t i t y (Bhavna&Swati,2012),leadershipbehavior(Mohammad&Mohd,2009),trusti n s u p e r v i s o r ( F l e i s c h l i n , 2 0 0 8 ) , h a v i n g a s a y ( A g a r w a l & G u p t a , 2 0 1 2 ) , s u p e r v i s o r support(Muhammad,2011),leadership(Janet,2004).Leadershipisdefiniteasbehavi oro f anindividualthatresultinnone- coerciveinfluentwhenthatpersonindirectingand cooperatingt h e a c t i v i t i e s o f a g r o u p t o w a r d s t h e a c c o m p l i s h m e n t o f t h e s h a r e d g o a l (Bryman,1992).
The relationship between core employees and their supervisors plays a crucial role in employee retention Leaders serve as the "human face" of the organization, linking practice applications to stated goals and expectations By balancing competing demands, they help manage both internal and external work environments If this relationship falters, employees are likely to seek new opportunities elsewhere It is often said that employees leave bosses, not jobs, highlighting the importance of supportive leadership in retention strategies When leaders prioritize employee development over formal evaluations, it significantly enhances employee commitment and retention.
2007).Leadership consistsoftransformationalleadership effectiveness,performance andsatisfactionthosefactorsareincludingorganizationleaderandteamleaderfromAli mo-M et calf e &AlbanMetcalfe(2001),Bass&Avolio(1995),Podsakoffatal.
(1996),Singhat al.,(2000),Yammarionoatal.,(1990),Bass&Avolio(1995),Bishopatal.,(1997).
Leaderinterpersonalrelationshipbehaviorincludesharingappropriateinformati on,allowingmutualityofinfluence,recognizingandrewardinggoodperformancea n d n o t a b u s i n g t h e v u l n e r a b i l i t y o f o t h e r s S o t h e e x t e n t t o w h i c h t h e supe rvisordisplaysthesebehaviorswillthuslargelydeterminesubordinatecommitmentlevel.Sothe authorhypothesizesthat:
Workingenvironment :Therearemanyalternativenameswiththesamemeaning:Theq u a l i t y of workingrelationships,thebuiltenvironment,workplaceenvironment(Bhavna
&Swati,2012),workplaceculture (Waleed,2011),workenvironment,working e n v i r o n m en t ( M u h a m m a d , 2 0 1 1 ) , b e i n g safe( B h a v n a & S w a t i , 2 0 1
2 ) , p o s i t i v e a n d negative situations(Waleed,2011),internalcommunication s(Andyetal,2003),Socialatmosphere(Ansetal.,2003),workenvironment
(2011) was tode te rm in e whatre lat io ns hi ps betweenworking en v i r o n m e n t a n d o r g a n i z a t i o n a l c o m m i t m e n t T h a t i s s u p p o r t o f t h e o r g a n i z a t i o n f o r flexibl etimeworking,workingstress.
Workingenvironmentisoneofthefactorsthataffectemployee‟sdecisiontostayw i t h company.It‟sveryimportanttorecognizetheemergingneedsofindividualstokeept h e m commi ttedandprovidetheworkenvironmentasnecessitate.Peoplereportedthat employeesenjoyworking,andstrivetoworkinthosebanksthatprovidepositiveworke n v i r o n m e n t wheretheyfeeltheyaremakingdifferenceandwheremostpeopleinth eorganizationareproficientandpullingtogethertomovetheorganizationforward.Wor kspacedesignshave aprofoundimpact one m p l o ye e s andtendtolivewithj ob aslon gassatisfied.Authorthereforehypothesizesthat:
R e m u n e r a t i o n a n d r ew a r d :T h a t i s d e f i n e d bysomer e s e a r c h e r s bydifferent w o r d s : comp en sation andrewardsismorepopularandwascalledbyWaleed(2011)Muhamma d(2011)K a z i & S i s i ( 2 0 1 1 ) , M o h a m m a d & M o h d ( 2 0 0 9 ) a n d E l i z a b e t h e t a l
( 2 0 0 8 ) ; Waleed(2011)calleditispayandconditions,Muhammad(2011)calleditissala ryandw a g e s rewards,Janet(2004)calleditisremunerationandrewards.Theterm„reward
Rewards are frequently discussed in the literature as a response from organizations to employee contributions and performance, while also being something that employees desire (Agarwal, 1998) These rewards can be categorized as extrinsic or intrinsic, including cash bonuses or recognition such as "Employee of the Month." Ultimately, rewards serve to motivate employees for future positive behavior In a corporate environment, rewards can take various forms, including cash bonuses, recognition awards, free merchandise, and complimentary trips The concepts of remuneration and rewards encompass job characteristics and both intrinsic and extrinsic rewards, as developed by Broadfoot & Ashkanasy (1994), Cammann et al (1979), and Hackman & Oldham (1975).
Idaszak &Drasgow(1987),Rhoadesatal.,( 2001),Seashoreatal., (1982),Warr&Wall(1979)andJanet(2004).
Itis veryimportantthattherewards havealasting impressionont h e emplo yeeandi t w i l l c o n t i n u e tos u b s t a n t i a t e t h e e m p l o y e e ‟ s p erceptionthatth eya r e v a l u e d C o m p e t i t i v e factorsandthelivingstandardarealsopartoflaborv alue.Thatincomeiscorrelationbetweencompensationandemployee'sperformance. Andthusformingd e c i s i o n w i l l c o n t i n u e t o s t i c k w i t h c u r r e n t o r g a n i z a t i o n o r t h o u g h t s t o a n o t h e r org an izat io n Forthisreason,theauthorhypothesizesthat:
Organizational culture and policies encompass various definitions, including organizational justice, culture, autonomy, and uniqueness As described by Furnham (2002), culture is an invisible element that reflects management philosophy, communication protocols, rituals, and taboos, contributing to a company's distinctiveness The structure of an organization, which includes job design and work patterns, complements its culture by defining control and reporting relationships that dictate how work is conducted The interplay between organizational culture and policies can limit employee actions and highlights the importance of clarity in organizational goals and planning, as examined by Broadfoot & Ashkanasy (1994), Kabanoff (2000), and others.
When employees believe that their organization values quality products, they are more likely to engage in behaviors that promote high quality If they feel that their participation matters, they become motivated to seek solutions and suggest improvements, contributing to the organization's success A positive organizational culture that aligns with employees' perspectives fosters long-term cooperation, encouraging employees to remain committed to the organization Therefore, I support the hypothesis that alignment between employee values and organizational policies enhances retention and engagement.
Basingonscaleofc o m m i t m e n t o f Jane t( 20 04 ) we w i l l a d j u s t t o b u i l d t hi s m o d e l f o r bank in gindustryinVietNam.Themodelconsistsoffivecomponents:
(5)Organizionalcultureandpolicies.Andallthesecomponentshavepositivei m p a c t o n e m p l o y e e c o m m i t m e n t.I nt h i s c h a p t e r I a l s o p o i t e d o u t f e w o r i g i n a l b a s i c theorieswhichwerethefoundationforlateractualresearches,andthisstudywasconfor medtotheseliterature.
Thisc h a p t e r p r e s e n t s t h e r e s e a r c h m e t h o d o l o g y u s e d t o b u i l d a n d testt h e t h e o r e t i c a l modelandthehypotheses.Ialsohighlighthowtheresearchproblemswillbedetermin ed,h o w t h e participants takepartinthisresearchandhow themeasuringinstrumentswillbeu s e d Thischapterconsistsoftwosections,researchdesignanda nalysismethod.
Theobjectiveofthestudywastoinvestigatefactorsthatimpactontheemployeec o m m i t m e n t inbankingindustryinHoChiMinhcitysothatthebankingemployeewastheun itof observation.Theemployeeworkedatdifferentdepartmentsfordifferent kindso f banksinHoChiMinhcitysuchas:state– ownedbank,jointStockCommercialBank,joint–venturebank,whollyforeign– ownedbank,orforeignbank‟sbranchinHoChiM i n h city.Theresearchwascarriedout throughtwosteps:(1)qualitativeresearchand
Basedo n p r e v i o u s r e s e a r c h e s , I e s t a b l i s h e d t h e r e s e a r c h m o d e l w i t h f i v e c o m p o n e n t s h av e positivelya f f e c t i n g toemployeecommitment.Thequestionsform e a s e u r e m e n t s c a l e a l s o b o r r o w e d f r o m J a n e t ( 2 0 0 4 ) T h i s p r e l i m i n a r y scalew a s i n
Groupdiscussionoutline.Thequalitativereasearchusedgroupdiscussionan dplayingrol emethod.Itaimedtoamendthetranslatedquestionnairesuitablewiththep u r p o s e s oftheauth orandadjusttheobservedvariablesusedforformalresearch.
I conducted a group discussion in Ho Chi Minh City with ten banking employees, including an HR manager from Asia Commercial Bank (ACB) and a branch manager from Orient Commercial Joint Stock Bank (OCB), along with eight employees from various banks such as Eximbank, Vietcombank, Agribank, Sacombank, Standard Chartered Bank Vietnam, and Shinhan Bank Vietnam As a fellow banking employee, I aimed to assess their understanding of a translated questionnaire and evaluate the appropriateness of the research scale in this context Additionally, I sought their suggestions for improving the scale based on their insights and experiences.
Finally,thegroupdiscussiongavetheusefulfeedback.Therefore,therespondentsa g r e e d t h a t f i v e g i v e n f a c t o r s c o n c e r n i n g w i t h t h e i r c o m m i t m e n t i n b a n k i n g c a r e e r They‟req u i t e a d e q u a t e a n d w e r e mainr e p r e s e n t a t i v e
The HRM factors were refined based on feedback indicating that some items on the scale were unclear, duplicated, or unnecessary For instance, in the Training and Career Development factor, two lengthy and similar items were simplified to a single clear statement: "Career development programs for employees." Additionally, the expression "I can still perform well in this position at another company" was often misunderstood by interviewers, who interpreted it as a self-assessment rather than as a query about the current bank's environment for employee performance Consequently, this item was removed from the formal questionnaire to enhance clarity and relevance.
Specifically,measurement scaleofemployeecommitmentwereadjustedfro m9itemsto5items,measurementscaleoffiveresearchcomponentswerereducedfrom2 4itemsto19items,andsomestatementsalsowereexpressedindifferentwordstobetter u n d er s t a n d i n g ThepreliminaryscalewaspresentedinAppendix1 –
Groupdiscussionou t l in e ItwasdesignedbothinEnglishasIborrowedfromJanet(2 004)andtranslatedintoVietnamese.FinallyIhadadjustedmeasurementscalewasusedforq uestionnaireinformalresearch.AndIalsoencodedthescaleitemsfordataentryingandprocessing.
Questionnairew a s d e s i g n e d inE n g l i s h , a f t e r t h a t t h e a u t h o r t r a n s l a t e d i t i n t o Vietnameseforresearchingpurposes.Andthen,theresultwastranslatedbacktoEn glish.T h e questionnairewasdesignedtoallowtheresearchertocollecttherelevantinformationt o tes tproposedmodel.Sothequestionswereincorporatedintothequestionnaireforthep u r p o se ofthisstudyanddividedintotwopartspresentedinAppendix2-Questionaire: PartA-
Invidualinformation :Therewereeightquestionsinthissectionaboutinterviewer‟sd emographicp r o f i l e T h a t d a t a h e l p t h e a u t h o r u n d e r s t a n d a b o u t t h e i r intervieweeandknowdeeplyresearchobjective.ThatdataalsohelptheauthorinSPSS regressiont o deeplyresearchth e f a c t o r s influencing toem pl oyee s u c h asa ge, gend er, education,salary,jobposition,organization,experiencetime.
Mainsurveycontent :ThispartwasbaseondesignedLikertscalesandshowtheactiona n d a t t i t u d e o f b a n k i n g e m p l o y e e a b o u t t h e i r b a n k s u c h a s t r a i n i n g , l e a d e r s h i p , worki nge n v i r o n m e n t , r e m u n e r a t i o n a n d p o l i c i e s a l s o I u s e d 5 l e v e l L i k e r t s c a l e w i t h l e v e l 1forstronglydisagreetolevel5forstronglyagree.Andthemainsurveyconte ntw a s theadjustedmeasurementscaleobtainedfromthispastpreliminaryresearch.
Itwereconveniencesampling,thismethodwerechosenbecauseit‟sadvantageislo wcost,quickresponsibility I n t e r v i e w e e s was bankingemployeesworkinginHo ChiMinhcity,ifoneofquestioninpartArejected(ascompanyowner,workingparttim e,w o r k i n g less6monthsornotsupporttheorganizationalcultureandvision),thisinte rviewwerenotrecorded.Sothatmydatasatisfiedwithmypurpose.
Samplesw e r e s e l e c t e d byc o n v e n i e n t m e t h o d G i v e n thatt h e m i n i m u m s a m p l e s i z e is5samplefor1estimatedparameters(Bollen, 1989).Thestudysamplest andard5 : 1 Theoreticalmodelinthisstudyhas34parameterstobeestimated,sothemi nimumsamplesizeis34*50samples.Thesamplesizewasestimated,hadbeenemittedis 170.Sotheremaining170questionnaireswereusedforthestudy.
DatawasanalyzedbytheSPSS21(StatisticalPackagefortheSocialSciences).SomemaintoolsofSPSSsuchas:DiscriptiveStatistics,Graphswereusedforsam ple description.A f t e r t h a t , u s i n g t h e t o o l t o t e s t t h e s c a l e r e l i a b i l i t y ( C r o n b a c h ‟ s
ExploratoryFactorAnalysis(EFA)wasused toidentifyfactors that affect toemployeec o m m i t m e n t i n b a n k i n g i n d u s t r y i n HoC h i M i n h c i t y T h e s c a l e f a c t o r s i s a s s e s s e d throughCronbach‟salphacoefficientreliability,factoranalysisex ploringEFA( E x p l o r a t o r y FactorAnalysis).
Regressionwasusedtotestthegivenhypotheses.Whetherallfactorsoftheresearchm odelh a v e i m p a c t o n employeec o m m i t m e n t a n d a n d allo f t h e m a r e p o s i t i v e correla tions.
Becausestudiedscalewerelearnedandtestedinotherfieldsandothercountries s o thescalemustbecalibratedtosuitthesituationinVietnamingeneralandinparticularf o r bankin gindustry.Firstly,ItestedthescalebyCronbach‟salphacoefficienttoassesst h e converge ncepropertiesoftheobservedvariablesmeasuringacertainelementinther e s e a r c h e n v i r o n m e n t a n d t o removet h e g a r b a g e T h u s , t h e v a r i a b l e s a r e c o r r e l a t e d vari ables -total(item- totalcorrelation)islessthan.3willbedisqualifiedandcriteria f a c t o r s ( s c a l e ) w h e n ith a s r e l i a b i l i t y C r o n b a c h ‟sA l p h a o f 6 o r h i g h e r ( N u n n a l l y &
1 According t o Nunnally& Burnstein(1994),Cronbach'sAlphai s toohigh( > 9 5 ) , itappearslikelysuccessorob servedvariables(Redundantitems)inthoughtthescale.Turnexcessisobservedvariablesmeasuringaconceptal mostcoincideswithothermeasurementvariables,similartothecaseofcollinear(collinearity)intheregression,whi leredundantvariablesareeliminated).
Next,I t e s t e d t h e va lu e o f t h i s sc a le d i f f e r e n t i a t e d byfactora n a l y s i s EF A.
T h e w e i g h t e d variables(factorloading)islessthan.5intheEFAanalysiswillcontinuetobe del eted 2 FactorextractionmethodusedwasPrincipalaxisfactoringwithPromax3r o t a t i o n s ,stopsripsfactorseigenvalueis1.Scaleisacceptablewhenthetotalvarianceex t ra ct ed greaterthanorequalto50%
(Gerbing&Anderson1988).AndfinallyKMOc o e f f i c i e n t ≥.5,theBartletttesthadast atisticallysignificant(Sig.3istheminimumrequirement,factorloading> 4 isimportant,f actorl o a d i n g ≥ 5 i s practicalsignificance.Andthesuggestioni s ifu s i n g factorloading>.3,theminimumsa mplesizeis350,ifthesamplesizeisabout100,shouldusingfactorloading> 55,withthesamplesizeisabout50,sh ouldusingfactorloading> 75.
3 According toGerbing& Anderson(1988),quotedPrincipalAxisFactoringMethodwithPromaxrotation(oblique )structurewillreflectmoreaccuratedataformulti- scalenavigation.MeanwhilePrincipalComponentsextractionmethodwithVarimaxrotation(orthogonal)wasus edforuni-directionalscales.
4 KMO isanindicatorusedtoexaminetheappropriatenessofEFA,KMO.5≤1,thefactoranalysisisappropriate.T estingthehypothesisofBartlettreviewedthecorrelationbetweentheobservedvariablesint h e overallzero.Ift h i s inspectionwasstatisticallysignificant( S i g < 0 5 ) , t h e observedvariablesarecorrelatedwitheachotherinthe overall(HoangTrong&ChuNguyenMongNgoc,2008).
Meansandstandarddeviationsand correlationsC o r r e l a t i o n coefficientsw e r e c a l c u l a t e d f o r initiale x p l o r a t i o n o f t h e r e l a t i o n s h i p s b e t w e e n v a r i a b l e s C o r r e l a t i o n i s usedtomeasurethesize anddirectionoftherelationshipbetweentwovariables( T a b a c h n ic k & F i d e l l , 2 0
0 1 ) I n t h i s s t u d y , a c o r r e l a t i o n a n a l y s i s w a s c a r r i e d o u t t o measuret h e i n t e r - r e l a t i o n s h i p b e t w e e n i n d e p e n d e n t v a r i a b l e s ( w o r k i n g e n v i r o n m e n t , r e m u n e r a t i o n a n d r e w a r d s , t r a i n i n g a n d c a r e e r d e v e l o p m e n t , l e a d e r s h i p , o r g a n i z a t i o n a l cultureandpolicies),dependentvaria bles(employeecommitment).Oncompletionofthecorrelationanalysis,aregressionanalysis wasconductedinordertofurtherevaluateandu n d e r s t a n d t h e r e l a t i o n s h i p s b e t w e e n t h e d e p e n d e n t a n d i n d e p e n d e n t v a r i a b l e s o f t h e study,andtotestthehypoth esesofinterest.
Qualitative Research (Group discussion, n = 10) Adjusted Scale
Cronbatch‟s alpha & EFA (to identify correlated & strong impact factors)
Regression (to test the given hypotheses)
This chapter outlines the research methodology employed to develop and test the scale The study involved two primary steps: qualitative and quantitative research Qualitative research was conducted through group discussions and role-playing with ten banking employees from various banks and positions in Ho Chi Minh City The findings from this qualitative phase informed adjustments to the borrowed scale, which was then utilized in the quantitative research The quantitative phase involved an online survey targeting 170 banking employees from different banks in Ho Chi Minh City Additionally, this chapter clarifies the data analysis methods used to test the scale and theories, as well as the reconstruction of the research model, with all results presented in the following chapter.
WithdataanalysismethodpresentedinChapter3, inthischapter,Ipresentedthegeneralresultsofcollected data fromsurvey,thescale te sting resultsth ro ug h reliability c o e f f i c i en t analysisCronbach‟salpha,explora tory factoranalysisEFAan d hypotheses testingresultsthroughmultipleregressionanalys is.Eachresearchelementwasclarifiedinthischapterandwasdiscussedmoreinthelastchapter.
Genderstructure:In170bankingemployeeswereinterviewed,thenumberof fem alestaffis96people,accountedsuperiorratefor57%thanmalestaffaccountedfor43%.
Educations t r u c t u r e : E m p l o y e e sw i t h b a c h e l o r d e g r e e w a s majorf o r c e w i t h 8 5 % Somebanksstillhavecollegestaffnowbutit‟sthelowest.Alsoquitemanyem ployeesh a v e masterorupperdegree,thisisconsistentwithcurrenttrendinVietNam.
Typeofbankstructure:JointStockCommercialBankwasmajorityinVietNamstilln o w with71%,accountedlowestrateisgroupstaffover40yearsold.
In addition,the collectedsamplewas depictthat creditofficerwasthemajorworkf o r c e Youngemployeewithworkingexperienceunder5y earswasmajorinvietnameseb a n k i n g industry.AndpopularwagesinmostbanksinHoC hiMinhwasfrom6to11millionsV i e t n a m dongp e r month.S p e c i f i c informationa b o u t c o l l l e c t e d s a m p l e w a s a t t a c h e d asAppendix3–Descriptivestatistics.
T o t a l C o r r e l a t i o n i n d e x s w e r e a b o v e 3 a n d t h e C r o n b a c h ' s A l p h a indexsw erequitehigh,above.6.Soallofthese24itemswereusedinthenextExploratory F a c t o r Ana lysis( E F A ) T h e C r o n b a c h ' s A l p h a i n d e x o f EmployeeC o m m i t m e n t scal ewastooreliable (.775),andthisscalewere measured byfiveitemsw i t h hightotalco rrelations(seeTable4.2.1).
ScaleVar iancei f It emDelet ed
Thes c a l e s o f f i v e r e s e a r c h f a c t o r s a l s o werer e l i a b l e , sot h e n e x t E x p l o r a t o r y F ac t o r Analysis(EFA)consistedoftwoitemsofTrainingandCareerdev elopment,sixitemsofLeadership,threeitemsofWorkingEnvironment, fouritemso fRemunerationa n d RewardsandfouritemsofOrganizationalCultureandPolicies(seeTable4.2. 2).
ScaleVar iancei f It emDelet ed
Asmentionedins e c t i o n 4 2 , a l l o b s e r v e d v a r i a t i o n s o f employeec o m m i t m e n t s c a l e wereincludedinthis EFAanalysis.Sinceitwasanunidirectional scal esothatIusedPrincipalcomponentswithvarimaxrotationmethod.Employeecommit mentscaleh a d onefactorextractedattheeigenvalue2.665,thetotalvarianceextractedwa sgreaterthan50%.Theweightedvariables(factorloading)≥.4,theKMOcoefficient
≥.5.AndtheBartletttesthadastatisticallysignificant(Sig 9 5 ) , itappearslikelysuccessorob servedvariables(Redundantitems)inthoughtthescale.Turnexcessisobservedvariablesmeasuringaconceptal mostcoincideswithothermeasurementvariables,similartothecaseofcollinear(collinearity)intheregression,whi leredundantvariablesareeliminated).
Next,I t e s t e d t h e va lu e o f t h i s sc a le d i f f e r e n t i a t e d byfactora n a l y s i s EF A.
T h e w e i g h t e d variables(factorloading)islessthan.5intheEFAanalysiswillcontinuetobe del eted 2 FactorextractionmethodusedwasPrincipalaxisfactoringwithPromax3r o t a t i o n s ,stopsripsfactorseigenvalueis1.Scaleisacceptablewhenthetotalvarianceex t ra ct ed greaterthanorequalto50%
(Gerbing&Anderson1988).AndfinallyKMOc o e f f i c i e n t ≥.5,theBartletttesthadast atisticallysignificant(Sig.3istheminimumrequirement,factorloading> 4 isimportant,f actorl o a d i n g ≥ 5 i s practicalsignificance.Andthesuggestioni s ifu s i n g factorloading>.3,theminimumsa mplesizeis350,ifthesamplesizeisabout100,shouldusingfactorloading> 55,withthesamplesizeisabout50,sh ouldusingfactorloading> 75.
3 According toGerbing& Anderson(1988),quotedPrincipalAxisFactoringMethodwithPromaxrotation(oblique )structurewillreflectmoreaccuratedataformulti- scalenavigation.MeanwhilePrincipalComponentsextractionmethodwithVarimaxrotation(orthogonal)wasus edforuni-directionalscales.
4 KMO isanindicatorusedtoexaminetheappropriatenessofEFA,KMO.5≤1,thefactoranalysisisappropriate.T estingthehypothesisofBartlettreviewedthecorrelationbetweentheobservedvariablesint h e overallzero.Ift h i s inspectionwasstatisticallysignificant( S i g < 0 5 ) , t h e observedvariablesarecorrelatedwitheachotherinthe overall(HoangTrong&ChuNguyenMongNgoc,2008).
Meansandstandarddeviationsand correlationsC o r r e l a t i o n coefficientsw e r e c a l c u l a t e d f o r initiale x p l o r a t i o n o f t h e r e l a t i o n s h i p s b e t w e e n v a r i a b l e s C o r r e l a t i o n i s usedtomeasurethesize anddirectionoftherelationshipbetweentwovariables( T a b a c h n ic k & F i d e l l , 2 0
0 1 ) I n t h i s s t u d y , a c o r r e l a t i o n a n a l y s i s w a s c a r r i e d o u t t o measuret h e i n t e r - r e l a t i o n s h i p b e t w e e n i n d e p e n d e n t v a r i a b l e s ( w o r k i n g e n v i r o n m e n t , r e m u n e r a t i o n a n d r e w a r d s , t r a i n i n g a n d c a r e e r d e v e l o p m e n t , l e a d e r s h i p , o r g a n i z a t i o n a l cultureandpolicies),dependentvaria bles(employeecommitment).Oncompletionofthecorrelationanalysis,aregressionanalysis wasconductedinordertofurtherevaluateandu n d e r s t a n d t h e r e l a t i o n s h i p s b e t w e e n t h e d e p e n d e n t a n d i n d e p e n d e n t v a r i a b l e s o f t h e study,andtotestthehypoth esesofinterest.
Qualitative Research (Group discussion, n = 10) Adjusted Scale
Cronbatch‟s alpha & EFA (to identify correlated & strong impact factors)
Regression (to test the given hypotheses)
This chapter outlines the research methodology employed to develop and test the scale The study involved two key steps: qualitative and quantitative research Qualitative research was conducted through group discussions and role-playing with ten banking employees from various positions across different banks in Ho Chi Minh City The findings from the qualitative phase informed adjustments to the borrowed scale, which was subsequently utilized for the quantitative research The quantitative aspect was carried out via an online survey involving 170 banking employees from multiple banks in Ho Chi Minh City Additionally, this chapter clarifies the data analysis methods used to test the scale and theories, as well as the reconstruction of the research model All results will be detailed in the following chapter.
WithdataanalysismethodpresentedinChapter3, inthischapter,Ipresentedthegeneralresultsofcollected data fromsurvey,thescale te sting resultsth ro ug h reliability c o e f f i c i en t analysisCronbach‟salpha,explora tory factoranalysisEFAan d hypotheses testingresultsthroughmultipleregressionanalys is.Eachresearchelementwasclarifiedinthischapterandwasdiscussedmoreinthelastchapter.
Genderstructure:In170bankingemployeeswereinterviewed,thenumberof fem alestaffis96people,accountedsuperiorratefor57%thanmalestaffaccountedfor43%.
Educations t r u c t u r e : E m p l o y e e sw i t h b a c h e l o r d e g r e e w a s majorf o r c e w i t h 8 5 % Somebanksstillhavecollegestaffnowbutit‟sthelowest.Alsoquitemanyem ployeesh a v e masterorupperdegree,thisisconsistentwithcurrenttrendinVietNam.
Typeofbankstructure:JointStockCommercialBankwasmajorityinVietNamstilln o w with71%,accountedlowestrateisgroupstaffover40yearsold.
In addition,the collectedsamplewas depictthat creditofficerwasthemajorworkf o r c e Youngemployeewithworkingexperienceunder5y earswasmajorinvietnameseb a n k i n g industry.AndpopularwagesinmostbanksinHoC hiMinhwasfrom6to11millionsV i e t n a m dongp e r month.S p e c i f i c informationa b o u t c o l l l e c t e d s a m p l e w a s a t t a c h e d asAppendix3–Descriptivestatistics.
T o t a l C o r r e l a t i o n i n d e x s w e r e a b o v e 3 a n d t h e C r o n b a c h ' s A l p h a indexsw erequitehigh,above.6.Soallofthese24itemswereusedinthenextExploratory F a c t o r Ana lysis( E F A ) T h e C r o n b a c h ' s A l p h a i n d e x o f EmployeeC o m m i t m e n t scal ewastooreliable (.775),andthisscalewere measured byfiveitemsw i t h hightotalco rrelations(seeTable4.2.1).
ScaleVar iancei f It emDelet ed
Thes c a l e s o f f i v e r e s e a r c h f a c t o r s a l s o werer e l i a b l e , sot h e n e x t E x p l o r a t o r y F ac t o r Analysis(EFA)consistedoftwoitemsofTrainingandCareerdev elopment,sixitemsofLeadership,threeitemsofWorkingEnvironment, fouritemso fRemunerationa n d RewardsandfouritemsofOrganizationalCultureandPolicies(seeTable4.2. 2).
ScaleVar iancei f It emDelet ed
Asmentionedins e c t i o n 4 2 , a l l o b s e r v e d v a r i a t i o n s o f employeec o m m i t m e n t s c a l e wereincludedinthis EFAanalysis.Sinceitwasanunidirectional scal esothatIusedPrincipalcomponentswithvarimaxrotationmethod.Employeecommit mentscaleh a d onefactorextractedattheeigenvalue2.665,thetotalvarianceextractedwa sgreaterthan50%.Theweightedvariables(factorloading)≥.4,theKMOcoefficient
≥.5.AndtheBartletttesthadastatisticallysignificant(Sig 9 5 ) , itappearslikelysuccessorob servedvariables(Redundantitems)inthoughtthescale.Turnexcessisobservedvariablesmeasuringaconceptal mostcoincideswithothermeasurementvariables,similartothecaseofcollinear(collinearity)intheregression,whi leredundantvariablesareeliminated).
Next,I t e s t e d t h e va lu e o f t h i s sc a le d i f f e r e n t i a t e d byfactora n a l y s i s EF A.
T h e w e i g h t e d variables(factorloading)islessthan.5intheEFAanalysiswillcontinuetobe del eted 2 FactorextractionmethodusedwasPrincipalaxisfactoringwithPromax3r o t a t i o n s ,stopsripsfactorseigenvalueis1.Scaleisacceptablewhenthetotalvarianceex t ra ct ed greaterthanorequalto50%
(Gerbing&Anderson1988).AndfinallyKMOc o e f f i c i e n t ≥.5,theBartletttesthadast atisticallysignificant(Sig.3istheminimumrequirement,factorloading> 4 isimportant,f actorl o a d i n g ≥ 5 i s practicalsignificance.Andthesuggestioni s ifu s i n g factorloading>.3,theminimumsa mplesizeis350,ifthesamplesizeisabout100,shouldusingfactorloading> 55,withthesamplesizeisabout50,sh ouldusingfactorloading> 75.
3 According toGerbing& Anderson(1988),quotedPrincipalAxisFactoringMethodwithPromaxrotation(oblique )structurewillreflectmoreaccuratedataformulti- scalenavigation.MeanwhilePrincipalComponentsextractionmethodwithVarimaxrotation(orthogonal)wasus edforuni-directionalscales.
4 KMO isanindicatorusedtoexaminetheappropriatenessofEFA,KMO.5≤1,thefactoranalysisisappropriate.T estingthehypothesisofBartlettreviewedthecorrelationbetweentheobservedvariablesint h e overallzero.Ift h i s inspectionwasstatisticallysignificant( S i g < 0 5 ) , t h e observedvariablesarecorrelatedwitheachotherinthe overall(HoangTrong&ChuNguyenMongNgoc,2008).
Meansandstandarddeviationsand correlationsC o r r e l a t i o n coefficientsw e r e c a l c u l a t e d f o r initiale x p l o r a t i o n o f t h e r e l a t i o n s h i p s b e t w e e n v a r i a b l e s C o r r e l a t i o n i s usedtomeasurethesize anddirectionoftherelationshipbetweentwovariables( T a b a c h n ic k & F i d e l l , 2 0
0 1 ) I n t h i s s t u d y , a c o r r e l a t i o n a n a l y s i s w a s c a r r i e d o u t t o measuret h e i n t e r - r e l a t i o n s h i p b e t w e e n i n d e p e n d e n t v a r i a b l e s ( w o r k i n g e n v i r o n m e n t , r e m u n e r a t i o n a n d r e w a r d s , t r a i n i n g a n d c a r e e r d e v e l o p m e n t , l e a d e r s h i p , o r g a n i z a t i o n a l cultureandpolicies),dependentvaria bles(employeecommitment).Oncompletionofthecorrelationanalysis,aregressionanalysis wasconductedinordertofurtherevaluateandu n d e r s t a n d t h e r e l a t i o n s h i p s b e t w e e n t h e d e p e n d e n t a n d i n d e p e n d e n t v a r i a b l e s o f t h e study,andtotestthehypoth esesofinterest.
Qualitative Research (Group discussion, n = 10) Adjusted Scale
Cronbatch‟s alpha & EFA (to identify correlated & strong impact factors)
Regression (to test the given hypotheses)
Researchprocess
This chapter outlines the research methodology employed to develop and test the scale The study comprised two key phases: qualitative and quantitative research The qualitative phase involved group discussions and role-playing with ten banking employees from various positions and banks in Ho Chi Minh City The insights gained from this phase were instrumental in refining the borrowed scale for the quantitative research The quantitative phase utilized an online survey, gathering responses from 170 banking employees across different banks in Ho Chi Minh City Additionally, this chapter details the data analysis methods used to evaluate the scale and theories, leading to a reconstruction of the research model All findings will be discussed in the following chapter.
WithdataanalysismethodpresentedinChapter3, inthischapter,Ipresentedthegeneralresultsofcollected data fromsurvey,thescale te sting resultsth ro ug h reliability c o e f f i c i en t analysisCronbach‟salpha,explora tory factoranalysisEFAan d hypotheses testingresultsthroughmultipleregressionanalys is.Eachresearchelementwasclarifiedinthischapterandwasdiscussedmoreinthelastchapter.
DemographicSampling
Genderstructure:In170bankingemployeeswereinterviewed,thenumberof fem alestaffis96people,accountedsuperiorratefor57%thanmalestaffaccountedfor43%.
Educations t r u c t u r e : E m p l o y e e sw i t h b a c h e l o r d e g r e e w a s majorf o r c e w i t h 8 5 % Somebanksstillhavecollegestaffnowbutit‟sthelowest.Alsoquitemanyem ployeesh a v e masterorupperdegree,thisisconsistentwithcurrenttrendinVietNam.
Typeofbankstructure:JointStockCommercialBankwasmajorityinVietNamstilln o w with71%,accountedlowestrateisgroupstaffover40yearsold.
In addition,the collectedsamplewas depictthat creditofficerwasthemajorworkf o r c e Youngemployeewithworkingexperienceunder5y earswasmajorinvietnameseb a n k i n g industry.AndpopularwagesinmostbanksinHoC hiMinhwasfrom6to11millionsV i e t n a m dongp e r month.S p e c i f i c informationa b o u t c o l l l e c t e d s a m p l e w a s a t t a c h e d asAppendix3–Descriptivestatistics.
TestingofreliabilitybyCronbach'salphacoefficient
T o t a l C o r r e l a t i o n i n d e x s w e r e a b o v e 3 a n d t h e C r o n b a c h ' s A l p h a indexsw erequitehigh,above.6.Soallofthese24itemswereusedinthenextExploratory F a c t o r Ana lysis( E F A ) T h e C r o n b a c h ' s A l p h a i n d e x o f EmployeeC o m m i t m e n t scal ewastooreliable (.775),andthisscalewere measured byfiveitemsw i t h hightotalco rrelations(seeTable4.2.1).
ScaleVar iancei f It emDelet ed
Thes c a l e s o f f i v e r e s e a r c h f a c t o r s a l s o werer e l i a b l e , sot h e n e x t E x p l o r a t o r y F ac t o r Analysis(EFA)consistedoftwoitemsofTrainingandCareerdev elopment,sixitemsofLeadership,threeitemsofWorkingEnvironment, fouritemso fRemunerationa n d RewardsandfouritemsofOrganizationalCultureandPolicies(seeTable4.2. 2).
ScaleVar iancei f It emDelet ed
Exploratoryfactoranalysis(EFA)
Scaleofemployeecommitment
Asmentionedins e c t i o n 4 2 , a l l o b s e r v e d v a r i a t i o n s o f employeec o m m i t m e n t s c a l e wereincludedinthis EFAanalysis.Sinceitwasanunidirectional scal esothatIusedPrincipalcomponentswithvarimaxrotationmethod.Employeecommit mentscaleh a d onefactorextractedattheeigenvalue2.665,thetotalvarianceextractedwa sgreaterthan50%.Theweightedvariables(factorloading)≥.4,theKMOcoefficient
≥.5.AndtheBartletttesthadastatisticallysignificant(Sig