(Luận văn) the relationship between emotional intelligence and turnover intention the case of ho chi minh city employees

t to UNIERSITY OF ECONOMICS HO CHI MINH CITY ng hi International School of Business ep w n lo ad ju y th yi NGUYEN THI THIEN HUONG pl n ua al n va fu ll THE RELATIONSHIP BETWEEN EMOTIONAL INTELLIGENCE AND TURNOVER INTENTION: THE CASE OF HO CHI MINH CITY EMPLOYEES oi m at nh z z k jm ht vb om l.c gm an Lu n va MASTER OF BUSINESS (Honors) ey t re th Ho Chi Minh City-Year 2016 t to UNIERSITY OF ECONOMICS HO CHI MINH CITY ng hi International School of Business ep w n lo ad ju y th yi NGUYEN THI THIEN HUONG pl n ua al n va fu ll THE RELATIONSHIP BETWEEN EMOTIONAL INTELLIGENCE AND TURNOVER INTENTION: THE CASE OF HO CHI MINH CITY EMPLOYEES oi m at nh z z k jm ht vb om l.c gm ID: 22130029 an Lu n ey t re SUPERVISOR: DINH THAI HOANG va MASTER OF BUSINESS (Honors) th Ho Chi Minh City-Year 2016 t to ACKNOWLEDGEMENT ng First all, I would like to express my sincere gratitude to my supervisor, Dr Dinh Thai hi ep Hoang, for his professional guidance, positive encouragements and helpful guidance during the w time of doing my research n lo I would like to express my appreciation to Dr Nguyen Dong Phong, Dr Nguyen Dinh ad ju y th Tho, Dr Tran Ha Minh Quan and Dr Nguyen Thi Nguyet Que for their valuable time and advice yi as the members of the proposal examination committee Their comments and meaningful pl suggestions are significantly contributed to this research completion ua al My sincere thanks are given to all of my teachers at International Business School for n va n their teaching and guidance during my master course fu ll Finally, my deepest gratitude also goes to my family for their financial support and gentle m oi encouragement so that I have an opportunity to be here - University of Economics of Ho Chi at nh Minh City z z k jm ht vb om l.c gm an Lu n va ey t re th t to ABSTRACT ng The concept of employee turnover intention is becoming a popular topic for managerial hi ep effectiveness both in the public organization and private companies In 21st century, employee w retention is considered as a key factor for business survival for all level of management in n lo service industry However, very few of the scholars have discussed about this matter particularly ad ju y th in the field of sales In term of sales management, staff turnover is also incredibly important due yi to the nature of sales positions, their historically high turnover levels, and the difficulty involved pl in filling them In an effort to help sales executive have an overview about the behavior and ua al performance of employees, the present study explores the relationship between emotional n va n intelligence and turnover intention through the impact of emotional intelligence on work-family fu ll conflict and emotional exhaustion A survey had sample size of 201 valid questionnaires that m oi were used for data analysis with CFA and SEM The findings broaden knowledge on how these nh at variables affect the turnover intention and how to reduce turnover rate more successfully in the z z world of intense competition vb k intention, turnover jm ht Keywords: Emotional intelligence, work-family conflict, emotional exhaustion, turnover om l.c gm an Lu n va ey t re th t to CONTENTS ng hi ACKNOWLEDGEMENT ep ABSTRACT w n ABBREVIATION lo ad y th Chapter 1: INTRODUCTION Background to the research and research problem 1.2 Research objectives 1.3 Methodology 1.4 Research significance 1.5 Research structure ju 1.1 yi pl n ua al va n CHAPTER LIETERATURE REVIEW AND HYPOTHESES fu Turnover intention 2.2 Emotional intelligence 2.3 Work-family conflict 2.4 Emotional exhaustion 11 2.5 Relationship among variables 11 2.6 Conceptual model 15 ll 2.1 oi m at nh z z ht vb jm Chapter 3: METHODOLOGY 17 Research design 17 k 3.1 gm Research process 17 3.1.2 Measurement scales 19 om 3.2 l.c 3.1.1 The quantitative study 23 an Lu 3.2.1 Sampling and data collection 23 3.2.2 Data analysis procedure 24 Respondents’ demographics 26 4.2.2 CFA for second-order constructs 32 4.2.3 CFA for the final measurement model 34 th CFA for the first-order constructs 28 ey 4.2.1 t re 4.1 n va Chapter 4: DATA ANALYSIS 26 t to 4.3 Structural equation modeling (SEM) 39 Discussion 42 ng 4.4 hi ep Chapter 5: CONCLUSIONS, IMPLICATIONS AND LIMITATION 46 Conclusions and implications 46 5.2 Limitations and recommendations for Future Research 49 5.1 w n lo REFERENCES 51 ad APPENDIX 60 ju y th yi pl n ua al n va ll fu oi m at nh z z k jm ht vb om l.c gm an Lu n va ey t re th t to LIST OF FIGURES ng hi ep Figure 2.1 Conceptual model 15 Figure 3.1 Research process 18 Figure 4.1 CFA model of Work-Family Conflict 28 Figure 4.2 CFA model of emotional exhaustion 30 Figure 4.3 CFA model of turnover intention 30 Figure 4.4 CFA model of Emotional Intelligence 33 Figure 4.5 Final measurement model 38 Figure 4.6 Structural results (standardized estimates) 40 w n lo ad ju y th yi LIST OF TABLES pl n ua al Table 3.1 Source of data collection 23 Table 4.1 Respondents’ characteristics 27 Table 4.2 The first run of CFA (of work-family conflict, emotional exhaustion and turnover intention) 29 Table 4.3 Summarized of CR, AVE and Cronbach’α (first order constructs) 31 Table 4.4 Summarized of CR, AVE andCronbach’α (emotional intelligence) 32 Table 4.5 Correlation (of Emotional Intelligence) 34 Table 4.6 Summarized of CR, AVE and Cronbach’α (final model) 35 Table 4.7 CFA Summary of eliminated item 36 Table 4.8 Correlations (final measurement model) 36 Table 4.9 Chi-square difference test for the constrained and unconstrained models (other-emotions appraisal and use of emotions) 37 Table 4.10 Unstandardized structural paths 39 Table 4.11 Measurement validation 41 n va ll fu oi m at nh z z k jm ht vb gm LIST OF APPENDIX om l.c Appendix A List of in-depth interviews’ participants 60 Appendix B Qualitative in-depth interview 60 Appendix C Qualitative in-depth interview findings 63 Appendix D Questionnaire (English Version) 67 Appendix E Questionnaire (Vietnamese Version) 70 Appendix F Correlations among components of emotional intelligence, work-family conflict, emotional exhaustion and turnover intention 73 an Lu n va ey t re th t to ABBREVIATION ng Averaged variance extracted CFA Confirmatory Factor Analysis COR Conservation of resource theory CR Composite reliability hi AVE ep w n lo ad Employee Assistance Programs EFA ju y th EAPs Exploratory Factor Analysis yi al General Statistics Office of Vietnam n ua GSO Gross Domestic Product pl GDP n Structural equation modeling ll fu SEM International Labor Organization va ILO Statistical Package for the Social Sciences oi m SPSS at nh z z k jm ht vb om l.c gm an Lu n va ey t re th t to Chapter 1: INTRODUCTION ng hi 1.1 Background to the research and research problem ep In the recent decades, the concept of employee turnover intention has been further w becoming a popular term in various studies on different managerial disciplines; thus, prompting n lo ad more executives/managers in many different business fields (e.g sales in service industry) to ju y th apply this concept for their employee management (Tett & Meyer, 1993; Lee & Chon, 2000) yi Lee and Chon (2000) identify job turnover intention as key considered management term for pl ua al successful careers and business survival at all level in service industry for 21st century n Therefore, organizations in the service industry should give a try to improve their people work- va n life and take advantages of these emotional balance to create beneficial outcomes fu ll The special feature of a service industry is “the contact and interaction between service m oi providers (employees) and service acceptors (customers)” (Tsaur, Chang, & Wu, 2003, p 435) nh at The main products provided by service organizations are services and the employees who play z z role as service providers will provide those services to customers Thus, employee in service ht vb industry becomes a part of service products and the work-life balance will enhance their suitable jm k emotions in responding customers’ expectations help to form image of organizations (Kusluvan, gm l.c 2003) The issue, then, is how service employees manage their emotions effectively and lessen om job turnover intention Most successful service organizations understand their people’s feelings an Lu and always have the special cares about any issues that may hurt the employees Thus, the ey even with the workaholic (Cropanzano, Rupp & Byrne, 2003) It is critical for an organizations t re understand subordinates while the tones of workloads and stresses are killing human emotions n va traditional management provided by hierarchical structure might not be a truthful way to th to build a working environment of trust, understanding and encouraging (Taylor, 2001) t to In the trend of transitioning and developing Vietnam’s economy, service sector is ng hi identified as one of the largest sectors in the economy and one of the biggest contributors to the ep overall growth rate According to the general statistics office of Vietnam, the growth rate of the w service industry is 6.56%/year and the economic structure has been adjusted to the better n lo ad direction that the services sector continued to contribute the largest portion to the GDP ju y th increasing from 41.7% of 2012 to 43.31% in 2013 Furthermore, it is said that Service sector yi plays a significant role in the economic development of Ho Chi Minh City with the fastest rate of pl ua al growth among industry and agriculture sectors during 2011-2013 (GSO, as cited in Tap Chi n Cong San, 2013) As a result, service domain should provide excellent customer service that va n comes from a quality workforce However, International Labor Organization (2015) stated that fu ll Viet Nam’s labor productivity level is the lowest among ASEAN countries due to low-skill labor oi m forces and high job turn-over intention This organization also assumes that recent productivity nh at growth rates are maintained, “Viet Nam will reach the Philippines only by 2038, Thailand by z z 2069 and take far more time to catch up with many other countries” (ILO, 2015, p 1) It is also ht vb said that Viet Nam's service workforce lacks experience, skills and professionalism for providing jm k good quality services (Tran, as cited in Xuan Huong, 2013) Aslam, Shumaila, Azhar and gm l.c Sadaqat (2011) realized that these service fields are experiencing labor shortage problems caused om by high job turnover and poor employee performance Therefore, the service industry are an Lu strongly required to improve its human resource management in providing services ey professionalism for providing good quality services (Nguyen Van Tuan, as cited in Thanh Tam, t re Vietnam The workforce in this industry has been training to gain more experience, skills and n va Currently, Vietnamese government efforts are trying to renovate service industry in th 2014) However, the challenge is that Vietnam service organizations are characterized by t to Walsh, J P., Ashford, S J., & Hill, T E (1985) Feedback obstruction: The influence of the ng hi information environment on employee turnover intentions Human Relations, 38(1), 23-46 ep Wong, C S., & Law, K S (2002) The effects of leader and follower emotional intelligence on w performance and attitude: An exploratory study The Leadership Quarterly, 13(3), 243- n lo ad 274 y th Xuan Huong (2013, April 22) VN looks to tap tourism potential Viet Nam News Retrieved ju yi from http://vietnamnews.vn/economy/238446/vn-looks-to-tap-tourism-potential.html pl n ua al n va ll fu oi m at nh z z k jm ht vb om l.c gm an Lu n va ey t re th 59 t to APPENDIX ng hi Appendix A List of in-depth interviews’ participants ep No Full name Age Job title w (years old) n lo Gion Thuan 25 Salesperson (Dat Xanh) Vu Thi Thao 32 Salesperson (Hoang Chuong Travel) Nguyen Ngoc Son 23 Salesperson (Vietravel) Quach Van Quan 27 Sales Supervisor (New Viet Dairy) Ho Hoang Tu 28 Salesperson (Vingroup) Huynh Nhu Y ad ju y th yi pl n ua al va Salesperson (Hung Thinh real estate) n 24 fu ll Appendix B Qualitative in-depth interview oi m Introduction at nh z Thanks for your attentions into the interview of the research “The relationship between z ht vb emotional intelligence and turnover intentions: Evidence from Vietnam” All your opinions k jm are meaningful for the interview Please present your thinking and ideas honestly! I will read l.c gm loudly each measurement item If you fully understand, I will be reading a next item If you not understand or you think it is not suitable for the Vietnamese context, please tell me why, and om tell me your suggestions an Lu n va ey t re th 60 t to Measurement scale used in qualitative research ng hi Measurement items ep Variables Reference Wong & Law intelligence (2002) Emotional w n I have a good sense of why I have certain feelings most of lo Self-Emotions ad Appraisal (SEA) the time y th I have good understanding of my own emotions ju I really understand what I feel yi pl I always know whether or not I am happy ua I always know my friends’ emotions from their behavior n Appraisal (OEA) al Others-Emotions va I am a good observer of others’ emotions n ll fu I am sensitive to the feelings and emotions of others nh around me oi m I have good understanding of the emotions of people at Use of Emotion z I always set goals for myself and then try my best to z (UOE) 10 I always tell myself I am a competent person k 11 I am a self-motivating person jm ht vb achieve them of 13 I am able to control my temper so that I can handle 14 I am quite capable of controlling my own emotions n ey t re 16 I have good control of my own emotions va 15 I can always calm down quickly when I am very angry an Lu difficulties rationally om Emotion (ROE) l.c Regulation gm 12 I would always encourage myself to try my best th 61 t to ng Work-family The demands of my work interfere with my home and Netemeyer et al., conflict family life (1996) hi ep The amount of time my job takes up makes it difficult to fulfill family responsibilities w Things I want to at home not get done because of the n lo demands my job puts on me ad My job produces strain that makes it difficult to fulfill y th family duties ju yi Due to work-related duties, I have to make changes to my pl plans for family activities al I feel emotionally drained from my work Maslach & exhaustion I feel fatigued when I get up in the morning and have to Jackson (1981, n ua Emotional va 1986) n face another day on the job fu ll Working with people all day is really a strain for me oi m I feel burned out from my work at I feel frustrated by my job nh Working directly with people puts too much stress on me z z I feel used up at the end of the workday jm I feel like I'm at the end of my rope ht vb I feel I'm working too hard on my job As soon as I can find a better job, I will leave this center intention I am actively looking for a job at another center Walsh k Turnover al., (1985) I think I will be working for this center years from now om l.c gm I am seriously thinking of quitting my job et an Lu (reverse coded) n va ey t re th 62 t to Appendix C Qualitative in-depth interview findings ng hi The findings of in-depth interview got agreements of interviewees on the below contents: ep They confirmed their understanding about self-management, psychological empowerment, self- w efficacy, and job performance as well as the consequential relationship among these dimensions n lo ad However, the measurement scale has some items which are not suitable for the Vietnamese ju y th contexts, especially the tourism and hospitality working environment of Vietnam They need to yi be modified and complemented to be more appropriate In detail, the items were modified as pl ua al below: Original Comments information measurement n Respondents' Final measurement va scales n ll fu scales oi m Emotional intelligence: Self-Emotions Appraisal (SEA) Gion Thuan- 25 years old, I always know The respondents stated Excluded this item nh whether or not I that they understood due to it is not at salesperson the scale meaning necessary Salesperson However, Quach Van Quan- 27 years admitted this item is old, sales supervisor partly z Vu Thi Thao- 32 years old, am happy z described years old, Salesperson have good In regard to this item, Excluded this item understanding an Lu Nguyen Ngoc Son – 23 I om Emotional intelligence: Others-Emotions Appraisal (OEA) l.c scale gm clearer by other item in k jm ht vb they the interviewees stated due to it is easily Vietnamese duplicated by other n va Vu Thi Thao- 32 years old, of the emotions that of people employees might not item in scale old, Salesperson This item is easily the duplicated 63 differences by other th see ey Huynh Nhu Y – 24 years around me t re Salesperson t to item in scale ng Emotional intelligence: Use of Emotion (UOE) hi ep Ho Hoang Tu – 28 years I would always With encourage old, Salesperson this item, Excluded this item respondents stated that due to it is not w Gion Thuan- 25 years old, myself to try it is not clarified in common in Vietnam n my best lo salesperson meaning, as well as it context and it is ad Nguyen Ngoc Son – 23 is y th years old, Salesperson difficult for difficult Vietnamese employees ju subordinates Salesperson measure This item is yi Vu Thi Thao- 32 years old, pl al ua partly for to to measure this item described n clearer by other item in va n scale fu ll Emotional intelligence: Regulation of Emotion (ROE) m Nguyen Ngoc Son – 23 I am a self- The oi motivating recommended In the general, I am a self- at nh years old, Salesperson interviewee Modified: researcher to add the motivating person old, sales supervisor phrase “in general” in Huynh Nhu Y – 24 years front of the sentence to old, Salesperson make this scale more z Quach Van Quan- 27 years person z good All respondents Excluded this item om salesperson have l.c Gion Thuan- 25 years old, I gm Emotional intelligence: Regulation of Emotion (ROE) k jm ht vb understandable control of my criticized this item is due to it is not described necessary clearer by other item in Nguyen Ngoc Son – 23 scale n Salesperson va partly an Lu Vu Thi Thao- 32 years old, own emotions t re years old, Salesperson ey th Quach Van Quan- 27 years old, sales supervisor Ho Hoang Tu – 28 years 64 t to old, Salesperson ng Huynh Nhu Y – 24 years hi ep old, Salesperson Work-family conflict w Gion Thuan- 25 years old, The amount of With regard to this Excluded this item n time lo salesperson my job sentence, respondents due to it is not ad Vu Thi Thao- 32 years old, takes up makes mentioned that it is clarified in meaning y th Salesperson it difficult to quite vague It is also ju Ho Hoang Tu – 28 years fulfill yi family partly responsibilities n ua old, Salesperson al Huynh Nhu Y – 24 years by other item in scale pl old, Salesperson measured va n Emotional exhaustion fu ll Nguyen Ngoc Son – 23 I feel burned With regard to this Excluded this item from my item, the interviewees due to it is not oi out m years old, Salesperson mentioned that it is not common in Vietnam old, sales supervisor clarified in meaning context Ho Hoang Tu – 28 years and it is not popular in old, Salesperson Vietnam context at nh Quach Van Quan- 27 years work z z k jm ht vb Huynh Nhu Y – 24 years years old, Salesperson directly The interviewees Excluded this item with mentioned l.c Nguyen Ngoc Son – 23 Working gm old, Salesperson they due to it is partly om Quach Van Quan- 27 years people puts too understood the scale described clearer by much stress on meaning However, other item in scale they admitted this item partly described ey Gion Thuan- 25 years old, I feel like I'm at In relate to this item, Excluded this item the end of my the 65 interviewees due to it is not th scale salesperson t re clearer by other item in n is va me an Lu old, sales supervisor t to ng Vu Thi Thao- 32 years old, rope criticized that the common in Vietnam Salesperson phrase of “end of my context hi ep rope” is not a common habit of Vietnamese w This item is partly n lo described clearer by ad other item in scale ju y th yi pl n ua al n va ll fu oi m at nh z z k jm ht vb om l.c gm an Lu n va ey t re th 66 t to Appendix D Questionnaire (English Version) ng hi Dear Sir/Madam ep I am Nguyen Thi Thien Huong, a student of Master Program of University of Economics Ho Chi w Minh City I am undertaking a research to investigate “the relationship between emotional n lo intelligence and turnover intention” It should take you no longer than 10 minutes to complete ad ju y th the questionnaire Your personal information will not be disclosed without your permission If yi you have concerns or questions over this study, please contact me via email address: pl n I Section A ua al thienhuong761@gmail.com va n How long have you been doing your current job as a salesperson? b Over six months ll Less than six months fu a oi m Are you a salesperson in service industry? at b Yes, I am nh a No, I’m not z z ht vb If your answer for question and are “a”, you can stop your work here Thank you for your k jm cooperation in completing this questionnaire If your answer for question and are “b”, please l.c gm continue answering the questions in Section B and Section C om II Section B an Lu This section explores your attitude and perceptions regarding emotional intelligence, work- n va family conflict, emotional exhaustion and turnover intention ey t re th 67 t to To what extent you agree with each of the following Neither agree nor agree Agree Strongly agree ep Disagree hi Strongly disagree ng statements, please indicate your answer using the following 5- I have a good sense of why I have certain feelings most of the 5 5 5 5 point scale where: = Strongly disagree w = Disagree n lo = Neither agree nor agree ad = Agree y th = Strongly agree yi pl ju Question ua al time I have good understanding of my own emotions I really understand what I feel I always know my friends’ emotions from their behavior I am a good observer of others’ emotions I am sensitive to the feelings and emotions of others I always set goals for myself and then try my best to achieve them I always tell myself I am a competent person I am a self-motivating person 10 I am able to control my temper so that I can handle difficulties 5 n n va ll fu oi m at nh z z k jm ht vb I am quite capable of controlling my own emotions 12 I can always calm down quickly when I am very angry l.c 4 13 The demands of my work interfere with my home and family life 14 Things I want to at home not get done because of the 5 om 11 gm rationally My job produces strain that makes it difficult to fulfill family for family activities 68 th Due to work-related duties, I have to make changes to my plans ey t re duties 16 n va 15 an Lu demands my job puts on me t to ng 17 I feel emotionally drained from my work 18 I feel fatigued when I get up in the morning and have to face hi ep another day on the job Working directly with people puts too much stress on me 20 I feel frustrated by my job 5 19 w n I feel used up at the end of the workday 22 I feel I'm working too hard on my job 23 As soon as I can find a better job, I will leave this center 24 I am actively looking for a job at another center 25 I am seriously thinking of quitting my job 26 I think I will be working for this center years from now (reverse lo 21 ad ju y th yi pl n ua al va coded) n III Section C – Background Information ll fu m This section of the questionnaire refers to background or biographical information The oi nh information will allow me to classify and compare groups of respondents at z z Gender ht vb Female k jm Male 26 – 35 36 – 45 > 45 an Lu Income per month (1,000,000vnd/month) > 15 n 10 – 15 va – 10 45 k jm 26 – 35 ht vb 18 – 25 gm Thu nhập hang tháng (1,000,000vnd/tháng) l.c an Lu 10 – 15 om – 10 15 va n Học vấn Sau đại học ey t re Cao đẳng/ Đại học Phổ thông/ Trung câp nghề th CẢM ƠN ANH CHỊ ĐÃ THAM GIA KHẢO SÁT 72 t to Appendix F Correlations among components of emotional intelligence, work-family ng hi conflict, emotional exhaustion and turnover intention ep Correlation r(SE) 1-r t-value (1-r) 0.733(0.049) 0.27 5.50 0.000 UseEmo 0.703(0.051) 0.30 5.85 0.000 RegulaE 0.711(0.050) 0.29 5.75 0.000 TurnOverIntention -0.064(0.071) 1.06 14.93 0.000 WorkFamilyConflict -0.324(0.068) 1.32 19.59 0.000 SelfEmoA EmoExhaustion -0.355(0.067) 1.36 20.29 0.000 OtherEmoA UseEmo 0.757(0.047) 0.24 5.21 0.000 OtherEmoA RegulaE 0.710(0.050) 0.29 5.77 0.000 OtherEmoA TurnOverIntention 0.040(0.071) 0.96 13.45 0.000 OtherEmoA WorkFamilyConflict -0.245(0.069) 1.25 17.98 0.000 OtherEmoA EmoExhaustion -0.252(0.069) 1.25 18.11 0.000 UseEmo RegulaE 0.707(0.051) 0.29 5.80 0.000 UseEmo TurnOverIntention 0.084(0.071) 0.92 12.87 0.000 UseEmo WorkFamilyConflict -0.189(0.070) 1.19 16.95 0.000 UseEmo EmoExhaustion -0.284(0.068) 1.28 18.75 0.000 RegulaE TurnOverIntention 0.167(0.070) 0.83 11.83 0.000 RegulaE WorkFamilyConflict -0.301(0.068) 1.30 ht 19.10 0.000 RegulaE EmoExhaustion -0.219(0.070) 1.22 17.49 0.000 WorkFamilyConflict TurnOverIntention 0.417(0.065) 0.58 8.98 0.000 EmoExhaustion TurnOverIntention 0.426(0.065) 0.57 8.88 0.000 WorkFamilyConflict EmoExhaustion 0.520(0.061) 0.48 7.87 0.000 n OtherEmoA oi w SelfEmoA p-value lo yi SelfEmoA ju SelfEmoA y th SelfEmoA ad SelfEmoA pl n ua al n va ll fu m at nh z z vb k jm om l.c gm an Lu n va ey t re th 73