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t to MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HO CHI MINH CITY ng hi ep w n lo ad TRAN GIANG PHONG ju y th yi pl al n ua RELATIONSHIP BETWEEN AUTHENTIC va n LEADERSHIP AND JOB SATISFACTION & ll fu oi m MODERATING ROLES OF SELF-EFFICACY nh at AND OPTIMISM z z ht vb k jm gm om l.c MASTER THESIS OF BUSINESS ADMINISTRATOR n a Lu n va y te re HO CHI MINH CITY – 2012 t to MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HO CHI MINH CITY ng hi ep TRAN GIANG PHONG w n lo ad y th ju RELATIONSHIP BETWEEN AUTHENTIC yi pl ua al LEADERSHIP AND JOB SATISFACTION & n MODERATING ROLES OF SELF-EFFICACY n va ll fu AND OPTIMISM oi m nh at Subject: Master of Business Administrator z z Code: 60.34.01.02 ht vb jm k THESIS OF MASTER OF BUSINESS ADMINISTRATOR n a Lu DR PHAM QUOC HUNG om l.c gm SUPERVISOR: n va y te re HO CHI MINH CITY – 2012 I t to ng ACKNOWLEDGEMENT hi ep I would like to express my sincerest gratitude to the following w for their commitment, guidance and support: n lo My family, my father and my mother for your unwavering love, ad ju y th Respectful lecturers of University of Economics Ho Chi Minh City, yi who have empowered me with considerably useful knowledge during the time pl I studied in the University, especially Dr Pham Quoc Hung, who have whole- al n ua heartedly instructed me to approach relevant matters in reality, scientific n va research methods, as well as the contents of the subject ll fu Students of the eMBA – K19 course, University of Economics Ho Chi oi m Minh City for kindly helping me collect information necessary for the study nh at My friends and work colleagues, who support me to collect data as well z as emotional support during the completion of this thesis z vb ht Although the author has tried the best to complete the thesis, but errors jm could not be comprehensively avoided Therefore, the author is looking k om l.c friends, so that the thesis could be more and more improved gm forward to receiving the inputs and comments from respectful lecturers and n a Lu Tran Giang Phong Ho Chi Minh, 26 Oct 2012 n va y te re II t to ng hi ep COMMITMENT w n I would like to commit that this thesis, “relationship between authentic lo ad leadership and job satisfaction & moderating roles of self-efficacy and y th optimism”, was accomplished based on my independent and serious studies ju and scientific researches The data was collected in reality and it has clear yi pl origins In addition to that, the data would be trust-worthily handled and it has al n ua never been released in any menu n va Tran Giang Phong ll fu oi m at nh z z ht vb k jm om l.c gm n a Lu n va y te re t to ng hi CONTENTS ep CHAPTER 1: INTRODUCTION TO THE STUDY w Research background n 1.1 lo Research objectives: 1.3 Research scope and approach: 1.4 Research structure ad 1.2 ju y th yi CHAPTER 2: LITERATURE REVIEW, THEORETICAL FRAMEWORK AND HYPOTHESES pl 2.1 Authentic leadership al n ua 2.1.1 Authenticity va 2.1.2 Dimensions of authentic leadership n 2.2 Job satisfaction 14 fu ll 2.2.1 Definition 14 m oi 2.2.2 Role of job satisfaction 15 at nh 2.2.3 Determinants of job satisfaction 16 2.3 The influence of authentic leadership on job satisfaction 18 z z 2.4 Self-efficacy 18 vb ht 2.5 Optimism 20 jm 2.6 Summary 21 k CHAPTER 3: RESEARCH METHODOLOGY 23 gm 3.1 Research design 23 om l.c 3.2 Questionnaire development 24 3.2.1 Authentic leadership 24 a Lu 3.2.2 Job satisfaction 25 n 3.2.3 Optimism and Self-Efficacy 25 3.5 Target population 28 th 3.4.2 Pilot study phase 28 y 3.4.1 Pilot study phase 27 te re 3.4 The pilot study 27 n va 3.3 Translation of the questionnaire 26 t to ng 3.6 Sample size 29 hi ep 3.7 Selecting the sample and collecting data 29 3.8 Sample characteristics 30 w n 3.9 Methods of data analysis 31 lo 3.9.1 Data screening 31 ad 3.9.2 Reliability 31 y th ju 3.9.3 Confirmatory Factor Analysis (CFA) 31 yi 3.9.4 Correlation analysis 33 pl 3.9.5 Multiple regressions 34 al n ua 3.9.6 Independent Samples T-test 35 va 3.9.7 Summary 35 n CHAPTER 4: DATA ANALYSIS 36 fu ll 4.1 Data cleaning 36 m oi 4.2 Profiles of qualified respondents 36 at nh 4.3 Reliability of the measurements 39 4.4 Confirmatory factor analysis 40 z z 4.5 Correlation analysis 41 vb 4.6 Hypotheses testing 44 ht jm 4.6.1 Effects of authentic leadership, self-efficacy and optimism on job satisfaction: 44 k 4.6.2 Moderating effects of self-efficacy and optimism on the relationship between authentic leadership and job satisfaction 45 gm l.c 4.7 Independent Samples T-test 49 om 4.8 Summary 50 a Lu CHAPTER 5: DISCUSSION 51 n 5.1 Discussions of findings: 51 va 5.2 Practical implications 52 th Appendix 1: Questionnaires 65 y Appendix 65 te re REFERENCE: 55 n 5.3 Limitations and recommendations for future research: 54 t to ng Appendix 2: result of reliability test of the measurements 71 hi ep Appendix 3: result of confirmatory factor analysis 73 Appendix 4: result of regression analysis 76 w n lo Figure 2-1: the hypothesized model……………………………………………… …………… ……………….……………… 22 ad Figure 3-1: The Research Process ……………….………………………………………………………….…………………………24 y th Figure 4-1: CFA model………………………….……………………………………………………………… ….………………………41 ju yi Figure 4-2: effect of interaction between authentic leadership and optimism on job satisfaction… 49 pl Table 3-1: Assessing Fit Indices………………………………………………………………………………………………….………33 al ua Table 4-1: Socio-demographic Characteristics of The Qualified Samples………………………………….……….38 n Table 4-2: Summary of Cronbach Alpha Measures Across Variables…………………………………….……………39 va Table 4-3: Assessing Fit Indices – Hypothesized Model…………………………………………………… ….………… 40 n ll fu Table 4-4: correlation………………………………………………………………………………………………………….………….…43 oi m Table 4-5: result of regression analysis of authentic leadership on job satisfaction……………………….…44 nh Table 4-6: result of regression analysis of moderating effect of self-efficacy and optimism at in groups …………………………………………………………………………………………………………………………………… …46 z Table 4-8: Independent Samples T-test: difference of job satisfaction level on gender of respondents ……………………………………………………………………………………….…………………………………………………………………50 z k jm ht vb om l.c gm n a Lu n va y te re th t to ng CHAPTER 1: hi ep INTRODUCTION TO THE STUDY w n lo Research background ad 1.1 ju y th Neither reputation, customers, technology nor physical resources, human resource is the most important asset which makes organization successful Without good yi pl manpower, organization could not develop their business Retaining the talents in al ua organization is an emergent challenge that every organization must consider According n to Berry (1997), organization must improve job satisfaction of employees to be va n successful Robbins & Judge (2007) found that the effective organization usually had fu ll more satisfied employees Moreover, satisfied employees are more likely productive In m oi short, improving employees’ satisfaction is an essential solution for an organization to be at nh successful z The practice of leadership has existed for thousands of years and research efforts z vb have been undertaken to better understand leadership in organizations for well over 50 jm ht years (Bass, 1990) Leaders and leadership play an important role in organizations in the k way that effective leaders are related to successful team work, high morale, and effective gm performance; and on the contrary, ineffective leaders are related to job dissatisfaction, Collins, 2001a, 2001b; Day, Zaccaro, & Halpin, 2004) om l.c low commitment, and ineffective performance (Avolio & Bass, 2002; Bass, 1998; 1999; a Lu We also have seen some big scandals in ethical leadership in the world as well as n in Vietnam In Vietnam, according to Thuc (2011), some big organizations such as Hàng th and Lehman Brothers in U.S Together with new societal challenge such as terrorism, y decrease of ethical leadership of the top managers of WorldCom, Enron, General Motors te re large profit, but actually, they lost a lot In international level, we also know the big n va Hải Đông Đô, Masan Group, Quoc Cuong Gia Lai announced to investors that they made t to ng aging society, and environmental pollution… these destroy the trust of investors In hi ep reality, according to National Leadership Index 2009, 63% of Americans not trust what business leaders say and 83% believe that business leaders work to merely their w n benefit or a small group with special interests, not society overall In the difficult lo ad situation, there is an urgent need of the positive and more genuine leadership (Avolio & ju y th Gardner, 2005) Reliability, integrity and authenticity are the essential characteristics of the business leaders in this situation (Blausten, 2009) yi pl In the light of current developments in global business, a new construct emerged: al ua authentic leadership Authentic leadership refers to the extent to which an individual n exhibits a pattern of openness and clarity in his or her behavior towards others by sharing va n the necessary information to make decisions, accepting other’s inputs, and disclosing his fu ll or her personal values, motives and sentiments in a manner that enables followers to m oi more accurately assess the competence and morality of the leader’s actions Business nh practitioners are calling for leaders who lead with purpose, values, and integrity, leaders at z who build enduring organizations, motivate their employees to provide customer service, jm ht Research objectives: vb 1.2 z and create long-term value for shareholder k In this study, the author examines the effects of authentic leadership behaviors on gm followers’ job satisfaction while also taking into account possible moderating roles of l.c self-efficacy and optimism to the relationship authentic leadership and job satisfaction om Accordingly, the study aims at answering the research questions: “How does authentic a Lu leadership influence follower job satisfaction?” and “what are the moderating roles of n satisfaction? th What is the relationship between authentic leadership and follower job y addressed in this research: te re In order to answer to this research question, the following four sub-questions are n va self-efficacy and optimism between authentic leadership and job satisfaction?” t to ng How does self-efficacy play a moderating role in the relationship between hi ep authentic leadership and job satisfaction? How does optimism play a moderating role in the relationship between w n authentic leadership and job satisfaction? lo ad Is job satisfaction level different between male and female? y th Research scope and approach: ju 1.3 yi First, this study is conducted in Ho Chi Minh City, the biggest city in Vietnam pl Second, the research includes into the analysis those respondents who have been al n ua working with their leaders for at least months to ensure that followers have enough time n va to observe and to be influenced by their leaders’ leadership behaviors ll fu Third, the research only focuses on employees who are graduated from high- oi m school or higher This choice of population and sample frame makes the study feasible (given time and resource limitation) by facilitating online survey method and helps nh at address the research questions in the simplest way possible z Forth, this study considers self-efficacy and optimism as the moderating variables z ht vb Self-efficacy, optimism are two of components of psychological capital However, k considered in this study jm other components of psychological capital which are resilience and hope are not gm Fifth, the study is conducted in main phases: pilot study (comprising of sub- l.c phases) and main study The purpose of the pilot study is to check the contents and to om examine the measurement scales Then the main study is conducted to confirm the n a Lu measurement scales, to test the hypotheses and to confirm the research model th as well as research scope and approach y Chapter 1: Introduction will provide the research background, research objectives, te re The structure of study includes chapters as following: n Research structure va 1.4 67 t to D Cuối cùng, xin Anh (Chị) cho biết thông tin cá nhân: ng hi Giới tính Anh (Chị): □ Nam □ Nữ ep Tuổi: ………… Anh (Chị) làm cho công ty bao lâu? ……… năm …… tháng w n lo Trình độ học vấn Anh (Chị)? □ Phổ thông □ Cao đẳng ad y th □ Đại học □ Sau đại học ju yi Vị trí Anh (Chị) cơng ty? □ Nhân viên □ Quản lý pl n ua al n va Anh (Chị) làm việc với Sếp Anh (Chị) bao lâu? ……… năm …… tháng ll fu oi m Giới tính Sếp Anh (Chị): □ Nam □ Nữ k jm □ 15-20 triệu ht □ 10-15 triệu vb □ 5-10 triệu z □ 2-5 triệu z Thu nhập Anh (Chị) từ Công ty: at nh Quốc tịch Sếp Anh (Chị): …………………… om Thành thật cảm ơn Anh (Chị)! l.c gm □ 20 triệu n a Lu n va y te re th 68 t to English questionnaires ng hi Dear Sir/Madam, ep This survey is done by the University of Economic Ho Chi Minh City The primary purpose of w this study is to discover relationship between authentic leadership and follower job satisfaction in n lo Vietnamese organizations This questionnaire is completely confidential When you finish, ad please seal your questionnaire in the envelope provided y th Thank you very much for your support ju yi pl A The following survey items refer to your leader’s style, as you perceive it Please judge how frequently each statement fits his or her leadership style using the following scale and circling the suitable number for each statement: n ua al va n Note: if you have more than leader, please assess the one who most and directly influence you ll fu oi m at nh My Leader: z Never Always z ▼ 7 tells you the hard truth makes decisions based on his or her core values asks you to take positions that support your core values listens carefully to different points of view before coming to conclusions shows he or she understands how specific actions impact others k jm om ht vb ▼ gm l.c a Lu n n va y te re th 69 t to ng hi ep B The following survey items refer to your current situation Please judge how you feel about yourself using the following scale and circling the suitable number for each statement w n lo ad Always ▼ ▼ ju y th Never yi I feel confident helping to set targets/goals in my work area I feel confident presenting information to a group of colleagues If something can go wrong for me work-wise it will (R) I’m optimistic about what will happen to me in the future as it pertains to work 7 7 pl n ua al n va ll fu oi m at nh 10 I approach this job as if "every cloud has a silver lining" z z k jm ht vb C The following survey items refer to your job satisfaction Please judge how satisfied you feel about job using the following scale and circling the suitable number for each statement: gm Never Always om l.c ▼ 11 Most days I am enthusiastic about my work 12 I feel fairly satisfied with my present job 13 I find real enjoyment in my work 14 Each day at work seems like it will never end 15 I consider my job rather unpleasant a Lu ▼ n n va y te re th 70 t to D Lastly, a couple of questions about you: ng hi Your gender: □ Male □ Female ep Your age: ………… Gender of your manager: ……… How long have you worked for your current company? ……… years …… month How long have you worked with your manager? ……… years …… month Nationality of your manager? □ Vietnamese □ Other w n lo ad ju y th yi Your income from the company? □ VND 2-5 mil □ VND 5-10 mil pl n ua □ over VND 20 mil □ VND 15-20 mil al □ VND 10-15 mil n va at nh □ Post Graduate oi m □ Graduate ll fu What is your education level? □ High school □ College z z k jm ht vb What is your position in company? □ Staff □ Manager om l.c gm Thank you very much for your time n a Lu n va y te re th 71 t to Appendix 2: result of reliability test of the measurements ng Authentic leadership: hi ep Reliability Statistics N of Items Cronbach's Alpha w n 876 lo ad Item-Total Statistics y th Scale Mean if Item Scale Variance if ju Deleted Item Deleted Corrected Item- Cronbach's Alpha Total Correlation if Item Deleted yi 24.246 684 857 21.911 827 822 20.463 747 842 Leader4 20.0833 21.295 714 850 Leader5 20.0111 25.162 592 875 n 20.5222 va Leader3 n 20.1278 ua Leader2 al 20.0111 pl Leader1 ll fu m oi Job satisfaction: nh N of Items z Cronbach's Alpha at Reliability Statistics z jm ht vb 911 Item-Total Statistics k Deleted Item Deleted Corrected Item- Cronbach's Alpha Total Correlation if Item Deleted Jobsatis2 20.6278 18.928 766 893 Jobsatis3 20.8611 18.076 796 887 Jobsatis4 20.6000 19.560 746 897 Jobsatis5 20.5611 18.393 893 868 n va 911 n 686 a Lu 19.134 om 20.3944 l.c Jobsatis1 gm Scale Mean if Item Scale Variance if y te re th 72 t to Self-efficacy ng Reliability Statistics hi N of Items ep Cronbach's Alpha 800 w n lo Item-Total Statistics ad Scale Mean if Item Scale Variance if y th Deleted Item Deleted ju Selfefficacy1 5.8111 Corrected Item- Cronbach's Alpha Total Correlation if Item Deleted 667 a 1.342 667 a yi 1.227 5.5667 pl Selfefficacy2 al a The value is negative due to a negative average covariance among items This violates ua reliability model assumptions You may want to check item codings n va n Job satisfaction ll fu oi Cronbach's Alpha m Reliability Statistics N of Items nh at 967 z z Item-Total Statistics Cronbach's Alpha Total Correlation if Item Deleted 5.453 921 956 Optimism2 11.1000 5.185 935 946 Optimism3 10.9167 5.418 930 950 om l.c 11.1278 gm Optimism1 k jm Item Deleted Corrected Item- ht Deleted vb Scale Mean if Item Scale Variance if n a Lu n va y te re th 73 t to Appendix 3: result of confirmatory factor analysis ng Model Fit Summary hi ep CMIN w Model CMIN DF P CMIN/DF 38 153.897 82 000 1.877 120 000 15 2175.392 105 000 20.718 n NPAR lo Default model ad ju y th Saturated model Independence model yi pl ua RMR GFI n Model al RMR, GFI AGFI PGFI va 090 901 855 616 Saturated model 000 1.000 Independence model 641 297 196 259 NFI Delta1 RFI rho1 IFI Delta2 TLI rho2 CFI 929 909 966 956 965 n Default model ll fu oi m at nh z Baseline Comparisons z 000 000 om 000 l.c 000 1.000 gm 000 1.000 k Independence model 1.000 jm Saturated model ht Default model vb Model a Lu Parsimony-Adjusted Measures n PNFI PCFI Default model 781 726 754 Saturated model 000 000 000 1.000 000 000 n PRATIO va Model y te re th Independence model 74 t to NCP ng Model LO 90 HI 90 71.897 40.790 110.821 000 000 000 2070.392 1922.450 2225.697 hi NCP ep Default model w Saturated model n lo Independence model ad ju FMIN pl LO 90 HI 90 860 402 228 619 Saturated model 000 000 000 10.740 12.434 ua al Default model 11.566 n va 12.153 000 n Independence model F0 yi Model y th FMIN ll fu oi m RMSEA nh Model LO 90 HI 90 PCLOSE Default model 070 053 087 030 Independence model 332 320 344 000 at RMSEA z z jm ht vb Default model 229.897 237.357 351.229 389.229 Saturated model 240.000 263.558 623.155 743.155 2205.392 2208.337 2253.287 2268.287 Independence model n CAIC a Lu BIC om BCC l.c AIC gm Model k AIC n va LO 90 HI 90 MECVI Default model 1.284 1.111 1.502 1.326 th ECVI y Model te re ECVI 75 t to ng ECVI LO 90 HI 90 MECVI Saturated model 1.341 1.341 1.341 1.472 12.321 11.494 13.188 12.337 hi Model ep Independence model w n HOELTER lo ad Model ju y th Default model HOELTER 05 HOELTER 01 134 11 12 yi 122 pl Independence model n ua al n va ll fu oi m at nh z z k jm ht vb om l.c gm n a Lu n va y te re th 76 t to Appendix 4: result of regression analysis ng hi ep Result of regression analysis on relationship between authentic leadership and job satisfaction of group (respondents with higher level of job satisfaction): w n b lo Variables Entered/Removed ad Variables Entered Lnationality, Removed Method ju y th Model Variables yi al AuthenticLeader, pl Level, ua GenderM, n Tenure, Income, Enter va Education, n GenderE, Age a fu ll a All requested variables entered m oi b Dependent Variable: JobSatis at nh z Model Summary z a Estimate 117 GenderM, Tenure, Income, Education, GenderE, Age om l.c gm a Predictors: (Constant), Lnationality, Level, AuthenticLeader, 97579 k 185 Square jm 430 R Square ht R Std Error of the vb Model Adjusted R n a Lu n va y te re th 77 t to b ANOVA ng Model Sum of Squares Residual ep Regression hi w n Total df Mean Square 23.271 2.586 102.835 108 952 126.106 117 F Sig 2.716 007 a lo a Predictors: (Constant), Lnationality, Level, AuthenticLeader, GenderM, Tenure, Income, ad Education, GenderE, Age y th b Dependent Variable: JobSatis ju yi pl a ua al Coefficients Standardized n 4.945 912 Sig 5.423 000 245 2.649 009 -.135 -1.290 200 -.178 -1.436 154 -1.099 274 1.505 135 084 oi 222 t m AuthenticLeader Beta ll (Constant) Std Error fu B Coefficients n Model va Unstandardized Coefficients nh -.288 223 Age -.283 197 Education -.209 190 165 110 162 Level -.092 241 -.036 GenderM -.190 230 -.078 -.826 410 Income 081 092 088 877 382 Lnationality 520 265 181 1.964 at GenderE z z jm ht vb Tenure -.120 -.381 704 k l.c gm om a Dependent Variable: JobSatis 052 n a Lu n va y te re th 78 t to Result of regression analysis on relationship between authentic leadership and job ng satisfaction of group (respondents with lower level of job satisfaction): hi ep Variables Entered/Removed w Model Variables Variables Entered Removed b Method n Lnationality, lo ad AuthenticLeader, y th Tenure, ju GenderE, Age, Enter yi Income, pl GenderM, al Education, ua Level a n n va a All requested variables entered b Dependent Variable: JobSatis ll fu oi m R Square Adjusted R Std Error of the Square Estimate z R at Model nh Model Summary z 700 a 490 401 85197 ht vb jm a Predictors: (Constant), Lnationality, AuthenticLeader, Tenure, GenderE, Age, Income, GenderM, Education, Level k gm l.c b ANOVA df Mean Square 4.026 Residual 37.744 52 726 Total 73.979 61 5.547 th b Dependent Variable: JobSatis y GenderM, Education, Level a te re a Predictors: (Constant), Lnationality, AuthenticLeader, Tenure, GenderE, Age, Income, 000 n va 36.235 Sig n Regression F a Lu Sum of Squares om Model 79 t to Coefficients a ng Standardized hi Unstandardized Coefficients ep (Constant) Std Error 1.027 609 102 188 t Sig .040 637 5.992 000 273 080 689 494 -.012 188 -.007 -.062 951 -.330 243 -.170 -1.357 181 -.194 121 -.178 -1.606 114 -.026 380 -.011 -.068 946 GenderM 278 103 866 390 Income 023 132 027 177 860 Lnationality 641 342 207 1.875 066 n 2.165 Beta 2.108 w B n Model Coefficients lo AuthenticLeader ad GenderE pl Tenure yi Education ju y th Age ua 240 n va ll fu oi m a Dependent Variable: JobSatis al Level at nh z z k jm ht vb om l.c gm n a Lu n va y te re th 80 t to Result of regression analysis on relationship between authentic leadership and job ng satisfaction of group (respondents with all level of job satisfaction – mix of group hi ep and group 2): w Variables Entered/Removed b n Variables ad Removed lo Variables Model Method y th Entered AuthenticLeader, ju Income, Tenure, yi GenderM, pl Lnationality, al ua Education, n GenderE, Level, a n va Age Enter fu a All requested variables entered ll b Dependent Variable: JobSatis oi m nh a Estimate 191 96482 jm 232 ht 481 Square vb R Square Std Error of the z R Adjusted R z Model at Model Summary k a Predictors: (Constant), AuthenticLeader, Income, Tenure, om l.c gm GenderM, Lnationality, Education, GenderE, Level, Age b ANOVA Regression df Mean Square Residual 158.248 170 931 Total 205.949 179 5.694 000 b Dependent Variable: JobSatis th GenderE, Level, Age y a Predictors: (Constant), AuthenticLeader, Income, Tenure, GenderM, Lnationality, Education, a te re 5.300 n Sig va 47.701 F n Sum of Squares a Lu Model 81 t to ng hi ep Coefficients a w Standardized n Unstandardized Coefficients B ad (Constant) GenderE ju y th lo Model yi pl Age 690 -.175 174 -.064 -.232 -.004 n va Level 3.838 ua Tenure Std Error al Education Coefficients -.147 Beta t Sig .000 -.078 -1.010 314 137 -.039 -.469 640 142 -.128 -1.632 104 081 -.004 -.055 956 195 -.059 -.757 450 176 021 285 776 057 695 488 171 2.473 014 402 5.857 000 n 5.559 050 Income 051 Lnationality 511 207 AuthenticLeader 368 063 ll 074 oi m at nh z a Dependent Variable: JobSatis fu GenderM z k jm ht vb om l.c gm n a Lu n va y te re th