(Luận văn) factors influencing organizational commitment and intention to stay of core employees in small medium sized companies in hochiminh city

UNIVERSITY OF ECONOMICS HO CHI MINH CITY t to ng International School of Business hi ep w n lo ad Huỳnh Thiên Hải ju y th yi pl al n ua FACTORS INFLUENCING ORGANIZATIONAL COMMITMENT AND INTENTION TO STAY OF CORE EMPLOYEES IN SMALL - MEDIUM SIZED COMPANIES IN HOCHIMINH CITY n va ll fu oi m at nh z z k jm ht vb om l.c gm MASTER OF BUSINESS (Honours) an Lu n va ey t re th Ho Chi Minh City - Year 2012 t to ng hi UNIVERSITY OF ECONOMICS HO CHI MINH CITY ep International School of Business w n lo ad y th ju Huỳnh Thiên Hải yi pl n ua al n va FACTORS INFLUENCING ORGANIZATIONAL COMMITMENT AND INTENTION TO STAY OF CORE EMPLOYEES IN SMALL - MEDIUM SIZED COMPANIES IN HOCHIMINH CITY ll fu oi m at nh z z k jm ht vb om l.c gm ID: 60340102 an Lu MASTER OF BUSINESS (Honours) ey t re Dr NGUYỄN THỊ NGUYỆT QUẾ n va SUPERVISOR th Ho Chi Minh City - 2012 INDEX t to ng hi ACKNOWLEDGEMENTS ep LIST OF FIGURES w n LIST OF TABLES lo ad LIST OF APPENDIX y th ABSTRACT ju yi 1.1 Background to the research 10 pl ua al 1.1.1 The importance of small and medium sized companies 10 n 1.1.2 The facts of labor force in SMEs and problem statement 10 va 1.2 Research objective 12 n fu ll 1.3 Scope of the study 12 m oi 1.4 Significances of the study: 12 nh at 1.5 Structure of the study 13 z z CHAPTER 2: LITERATURE REVIEW .14 vb jm ht 2.1 Chapter introduction 14 k 2.2 Relative concepts and definition 14 gm l.c 2.2.1.Small and medium companies 14 2.2.2 Core employees 15 om 2.2.3 Core employee retention 15 an Lu 2.3 Review of previous study 17 n va 2.3.1 Organizational commitment 18 2.3.5 Remuneration and reward 21 2.3.6 Organizational culture and policies 22 th 2.3.4.Working environment 20 ey 2.3.3 Leadership 19 t re 2.3.2 Training 19 3.3.7 Intention to stay 22 t to ng 2.4 Proposal research hypotheses 23 hi ep 2.5 Chapter conclusion 24 CHAPTER 3: METHODOLOGY 25 w n 3.1 Research process 25 lo ad 3.2 Questionnaire design .26 y th ju 3.2.1 Measure of variable 26 yi 3.2.2 Draft questionnaire 30 pl ua al 3.3 Pilot study 30 n 3.4 Main survey 31 va n 3.4.1 Sample method 31 fu ll 3.4.2 Sample size 31 m oi 3.5 Data analysis technique 32 nh 3.5.1 Recoding data 32 at z 3.5.2 Testing of Reliability 32 z ht vb 3.5.3 Exploratory factor analysis (EFA) 33 jm 3.5 Hypotheses testing: Multiple Regression Analysis 33 k 3.7 Chapter conclusion 34 gm l.c CHAPTER 4: DATA ANALYSIS 35 om 4.1 Sample description and data clearance 35 an Lu 4.2 Demography Sampling 35 n va 4.4 Testing of Reliability 36 5.2 Limitation 46 th 5.1 Finding and discussion 45 ey 4.7 Chapter conclusion 43 t re Exploratory factor analysis (EFA) .37 5.3 Suggestion for future Research .47 t to ng APPENDIX .55 hi ep APPENDIX 1.1: QUESTIONAIRE (English version) 55 APPENDIX 1.2: QUESTIONAIRE (Vietnamese version) 59 w n lo APPENDIX 4.1 CODING 62 ad Appendix 4.2 Demography 65 y th ju Appendix 4.3: Testing of reliability variables .65 yi pl Appendix 4.4 EFA for all independent variables .67 al n ua Appendix 4.4 EFA for all independent variables (The first time in times) 67 va Appendix 4.4.2: EFA with all independent variable (the second time in times) 68 n Appendix 4.4 EFA for all independent variables (The third time in times) 70 fu ll Appendix 4.4 EFA for all independent variables (The fourth time in times) 71 m oi Appendix 4.5 Regression, model Independent variables: Training, leadership, nh at remuneration and company policies; dependent variable: Commitment .73 z Appendix 4.6 Regression, model Independent variables: Organizational Commitment; z vb dependent variable: intention to stay 76 k jm ht om l.c gm an Lu n va ey t re th ACKNOWLEDGEMENTS t to ng First at all, I would like to express my sincere gratitude to my supervisors, Dr hi ep Nguyen Thi Nguyet Que for her continuous support of my thesis w I would like to take this opportunity to thank leaders, teachers and staffs in ISB who n lo help me usefully all the subjects of my master course ad y th My sincere thanks also goes to the friends and colleagues who participated in the ju initial trial survey stages that led to the development of the final survey questionnaire and yi pl their support over the time when I am busy to study ua al I would like to thank my Mummy, my sisters, brothers and my special friend who is n n va my moral support in all my studying period fu ll Last at all, I would like to present the achievement to my Dad's soul who spent all the oi m life for my family at nh Ho Chi Minh City, December 28, 2012 z z k jm ht vb Huynh Thien Hai om l.c gm an Lu n va ey t re th LIST OF FIGURES t to ng Name of configure Page hi Figure 2.1 proposal research hypothesis Figure 3.1 Research Design Process ep 24 26 44 w Figure 4.1 Final model n lo LIST OF TABLES ad y th Table name Page 16 ju Table 2.1 Classification of SMEs in Vietnam yi pl Table 3.1 Measurement of training and career development 27 al ua 27 n Table 3.2 Measurement of leadership 28 n va Table 3.3 Measurement of working environment Table 3.4 Measurement of remuneration and rewards Table 3.5 Measurement of company policies ll fu 29 oi m 29 nh Table 3.6 Measurement of organizational commitment 30 at 30 z Table 3.7 Measurement of intention to stay Table 3.8: Cronbach’s alpha reliability coefficient z vb 37 k gm 37 om an Lu n va ey t re 37 40 40 41 41 43 43 46 l.c Table 4.1 Sample Demography Table 4.2: Cronbach’s alpha reliability coefficient of variable Table 4.3: Pattern matrix in the last time (the fourth time) of regression analysis Table 4.4 Correlations model Table 4.5 Model Summaryb model Table 4.6 ANOVA of model Table 4.7 Coefficientsa of medel Table 4.8 Model Summaryb model Table 4.9 Coefficientsa of model Table 5.1 Questionnaire for organizational polices jm ht 33 th LIST OF APPENDIX t to ng Appendix name Page hi 55 APPENDIX 1.2: VIETNAMESE QUESTIONAIRE 50 APPENDIX 4.1 CODING 62 ep APPENDIX 1.1: ENGLISH QUESTIONAIRE w Appendix 4.3: Testing of reliability of variables 65 Appendix 4.4 EFA for all independent variables Appendix 4.4 EFA for all independent variables (The first time in times) Appendix 4.4.2: EFA with all independent variable (the second time in times) Appendix 4.4 EFA for all independent variables (The third time in times) Appendix 4.4 EFA for all independent variables (The fourth time in times) Appendix 4.5.Correlation bivariable model Appendix 4.5.Correlation bivariable model 67 67 lo 65 ad n Appendix 4.2 Demography ju y th yi pl ua al 68 n 70 n va ll fu 71 oi m 73 76 at nh z z k jm ht vb om l.c gm an Lu n va ey t re th LIST OF ABBREVIATION t to ng SME Small and medium sized company hi ep SMEs Small and medium sized companies w n HCMC Hochiminh City lo ad VCCI Vietnam Chamber of Commerce and Industry y th ju HR Human resource yi pl ua al VND Vietnam Dong n WTO the World Trade Organization n va ll fu WB World Bank oi m at nh z z k jm ht vb om l.c gm an Lu n va ey t re th ABSTRACT t to ng Employee retention especially core employees is one of the most important ongoing hi ep practices of human resource management Employee’s turnover is a major HR organizational threat The problem is being faced by different organizations of almost all the countries w n Organizations are trying different plans to get maximum output from employees Core lo ju y th results ad employee retention is one of the main factors that could help in achieving the required yi There are many theories for retention employees but there is not any closed research for pl ua al SME employees in HCMC n This study elaborates the retention of core employees; its benefits and factors that may help va n to retain the best employees of the organization ll fu oi m Questions with five-point Likert scale are used to the research for investigating needs of core leadership; working environment ; remuneration-rewards and at training-career path; nh employees Base on the result of investigation, the most affective factors among of factors: z z organizational culture-policies will be recognized Intermediary variable is organizational jm ht vb commitment that is used in the research k The research findings prove significant relationship of training-career path; leadership; gm working environment; remuneration-rewards and organizational culture-policies that l.c influence the staying decision of core employee This study will help SMEs in HCMC to find om out various HR policies and to revise their current policies for further improvements an Lu n va ey t re th