(Luận văn) examine the mediating role of organizational citizenship behaviour in the relationship between perceived human resource management practices and intention to leave of employees

MINISTRY OF EDUCATION AND TRANNING t to UNIVERSITY OF ECONOMICS, HO CHI MINH CITY ng hi  ep w n lo ad ju y th LE NGOC LAN yi pl n ua al n va EXAMINE THE MEDIATING ROLE OF ll fu ORGANIZATIONAL CITIZENSHIP BEHAVIOUR IN m oi THE RELATIONSHIP BETWEEN PERCEIVED nh at HUMAN RESOURCE MANAGEMENT PRACTICES z z AND INTENTION TO LEAVE OF EMPLOYEES k jm ht vb om l.c gm MASTER THESIS IN BUSINESS ADMINISTRATION an Lu n va ey t re HO CHI MINH CITY – 2013 MINISTRY OF EDUCATION AND TRANNING t to UNIVERSITY OF ECONOMICS HO CHI MINH CITY ng hi  ep w LE NGOC LAN n lo ad y th ju EXAMINE THE MEDIATING ROLE OF yi pl ORGANIZATIONAL CITIZENSHIP BEHAVIOUR IN al n ua THE RELATIONSHIP BETWEEN PERCEIVED n va HUMAN RESOURCE MANAGEMENT PRACTICES fu ll AND INTENTION TO LEAVE OF EMPLOYEES oi m nh at Subject: Master of Business Administrator z z k jm ht vb Code: 06.34.01.02 gm om l.c MASTER THESIS IN BUSINESS ADMINISTRATION n va Dr PHAM QUOC HUNG an Lu SUPERVISOR: ey t re HO CHI MINH CITY – 2013 ACKNOWLEDGEMENT t to ng Firstly, I wish to express my deepest gratitude to my supervisor, Dr Phạm Quốc hi ep Hùng, for giving me insightful guidance and valuable advice throughout undertaking of this study w n I also thank to all respected lecturers of the eMBA19 course of for their devotions lo ad during the training, which enrich my knowledge in order to implementing this study ju y th successfully My heartfelt thanks to respondents, who provide me supportive attitude and honest yi pl answer to make a good and solid database for the analysis al n ua Finally, I would like to say thanks to my beloved friend and family members, whom n va have given me much support, encouragement and assistance with this thesis ll fu oi at nh Ho Chi Minh City, September 2013 m Le Ngoc Lan z z ht vb k jm om l.c gm n a Lu n va y te re t to COMMITMENT ng I hereby declare that all information in this document has been obtained and hi ep presented in accordance with academic rules and ethical conduct I also declare that, as required by these rules and conduct, I have fully cited and referenced all material and w n results that are not original to this work lo ad Le Ngoc Lan ju y th yi pl n ua al n va ll fu oi m at nh z z ht vb k jm om l.c gm n a Lu n va y te re TABLE OF CONTENT t to ng hi ep CHAPTER - INTRODUCTION TO THE STUDY 10 1.1 Research background 10 1.2 Research objective 11 1.3 Practical significances of the study 12 1.4 Research scope and approach 12 1.5 Research structure 12 CHAPTER - LITERATURE REVIEW 14 2.1 Human Resource Management 14 2.1.1 Human Resource Management Pratices 14 2.1.2 Human Resource Management effects on Intention To Leave 15 2.2 Organizational Citizenship Behaviour 15 2.2.1 Definition of OCB 15 2.2.2 The important of OCB 17 2.3 Research model and hypotheses 17 2.3.1 The effects of HRM on OCB 17 2.3.2 The effect of Retention Oriented Compensation on Intention to Leave 19 2.3.3 The effect of Formalized Training on Intention to Leave 19 2.3.4 The effect of OCB on intention to leave 20 2.3.5 The mediating role of OCB 20 CHAPTER - RESEARCH METHODOLOGY 22 3.1 Research design 22 3.2 Research process 22 3.3 Questionnaire development 23 3.4 The pilot study 27 3.4.1 Pilot study phase 27 3.4.2 Pilot study phase 27 3.5 Main study 28 3.5.1 Target population 28 3.5.2 Sampling design 28 3.5.3 Data collection 28 3.6 Methods of data analysis 29 3.6.1 Data cleaning 29 3.6.2 Reliability 29 3.6.3 Confirmatory factor analysis 30 3.6.4 Analysis of Variance (one-way and two-way ANOVA) 31 3.6.5 Multiple regression analysis 31 3.6.6 Testing mediation with regression analysis 32 CHAPTER - DATA ANALYSIS 35 4.2 Data cleaning 35 4.3 Profiles of qualified respondents 35 4.4 Normality analysis 37 4.5 Reliability of the measurements 37 4.6 Confirmatory factor analysis 38 w n lo ad ju y th yi pl n ua al n va 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 ep 4.7 Hypotheses testing 43 4.7.1 Correlation analysis 43 4.7.2 Testing residuals of dependent variable 45 4.7.3 Effect of Perceived HRM Practices (Retention-oriented Compensation and Formalized Training) on Organizational Citizenship Behaviour (H1 & H2) 45 4.7.4 Effect of Perceived HRM Practices (Retention-oriented Compensation, Formalized Training) and Organizational Citizenship Behaviour on Employees’ Intention to Leave (H3, H4 & H5) 46 w 4.7.4.1 Effect of Perceived HRM Practices (Retention-oriented Compensation and Formalized Training) on Employees’ Intention to Leave (H3 & H4) 46 n lo ad 4.7.4.2 Effect of Organizational Citizenship Behaviour on Employees’ Intention to Leave (H5) 47 y th ju 4.7.5 The mediating effect of Organizational Citizenship Behaviour on the relationship between Perceived HRM Practices and Employees’ Intention to Leave (H6 & H7) 47 CHAPTER - DISCUSSION 52 5.1 Discussion of findings 52 5.2 Contribution of the current study 53 5.3 Practical implications 53 5.4 Limitation and further research 54 yi pl n ua al n va ll fu oi m at nh z z ht vb k jm om l.c gm n a Lu n va y te re LIST OF FIGURE t to ng hi ep Figure 2-1: Partial model by Nishii and Wright, 2004 14 Figure 2-2: Hypothesized Research Model 21 Figure 3-1: Research process 23 Figure 3-2: Mediating model 33 Figure 4-1: Hypothesized model 38 Figure 4-2: Modified model 42 w n lo ad ju y th yi pl n ua al n va ll fu oi m at nh z z ht vb k jm om l.c gm n a Lu n va y te re LIST OF TABLE t to ng hi ep Table 3-1: Measurement scales of independent variables 24 Table 3-2: Measurement scales of dependent variable 26 Table 3-3: Assessing Fit Indices 31 Table 4-1: Variables included in the Analysis 35 Table 4-2: Socio-demographic Characteristics of The Qualified Samples 36 Table 4-3: Summary of Cronbach Alpha Measures across Variables 37 Table 4-4: Assessing Fit Indices – Hypothesized Model 40 Table 4-5: Standardized Regression Weights – Hypothesized Model 41 Table 4-6: Assessing Fit Indices – Modified Model 43 Table 4-7: Descriptive Statistics and Correlations 44 Table 4-8: Model Summary of H6 49 Table 4-9: Coefficients of H6 hierarchical regression 50 Table 5-1: Research Purposes, Hypotheses and Results 52 w n lo ad ju y th yi pl n ua al n va ll fu oi m at nh z z ht vb k jm om l.c gm n a Lu n va y te re ABSTRACT This study seeks to investigate the mediating role of organizational t to citizenship behavior on the relationship between perceived HRM practices and ng hi employees’ intention to leave ep The study was conducted in Ho Chi Minh City, Vietnam with the sample of w 182 employees n lo The results showed that Organizational Citizenship Behaviour mediates the ad y th relationship between retention-oriented compensation and employees’ intention to ju leave In addition, the study also finds that there are no relationship between yi formalized training and organizational citizenship behavior; hence, organizational pl ua al citizenship behavior does not mediate the relationship between formalized training n and employees’ intention to leave suggest n findings va These that HR practitioners should monitoring ll fu organizational citizenship behavior to better predict employees’ intention to leave, m oi in order to make timely adjustment on retention-oriented compensation system nh at KEYWORDS: Organizational Citizenship Behaviour, Perceived HRM z z practices, Retention-Oriented Compensation, Formalized Training, ht vb Employees’ Intention to Leave k jm om l.c gm n a Lu n va y te re CHAPTER INTRODUCTION TO THE STUDY t to ng 1.1 Research background hi ep Employees are extremely crucial to the organization since their value to the organization is essentially intangible and not easily replicated (Meaghan & Nick w n 2002) And employee’s intention to leave remains one of the most widely lo ad researched topics in organizational analyses due to its significant effects on ju y th organizations (DeMicco & Giridharan 1987; Dyke & Strick 1990; Cantrell & Saranakhsh 1991; Denvir & Mcmahon 1992) (as cited in Mahmud, 2011) yi pl Muhammad et al (2011) noted that there is a positive relationship between al n ua HRM practices with employee retention However, there are very few studies n va investigated how human resource management practices effects on the intention to ll fu leave of employees, and how employees react on that oi m In the past decades, OCB has received much attention from researcher In nh relatively uncomplicated production environments, the extra efforts on the part of at the employee may seem minor, but a growing number of jobs is becoming more z z complicated, consisting of large numbers of unstructured tasks, so more discretion is vb ht with the employee, and thus the difference between a good performer and a bad jm performer becomes increasingly large (Hunter et al., 1990) Despite such an k gm important role of OCB, it is surprising to note that past studies often seem to ignore l.c how employees’ behavioural reactions affect the relationships between HRM a Lu 2003; Morrison 1996) om practices and employee’s intention to leave (Guest, Michie, Conway and Sheehan n Organizations need employees who anticipate and monitor rapid changes in involved in their behavioural process to help explain the HRM-performance relationship (Lam et al, 2009) 10 y the employees’ organizational citizenship behaviour (OCB), in particular, is te re effectiveness (Organ, Podsakoff and MacKenzie 2006) Therefore, it is argued that n va the business, and figure out how to deal with these changes to sustain or enhance