Factors influencing career commitment of employees at hoa phat group

- MASTER OF BUSINESS ADMINISTRATION INTERNATIONAL PROGRAM  RESEARCH PROJECT (BMBR5103) FACTORS INFLUENCING CAREER COMMITMENT OF EMPLOYEES AT HOA PHAT GROUP STUDENT’S FULL NAME : DO THANH LAM STUDENT ID : CGS00019897 INTAKE : SEPTEMBER, 2015 ADVISOR’S NAME & TITLE : NGUYEN THE KHAI (DBA) - ADVISOR’S ASSESSMENT ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ADVISOR’S SIGNATURE ………………………………………………………………………………………………………… (March 2017) ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… NGUYEN THE KHAI (DBA) - ACKNOWLEDGMENTS I would like to express my profound gratitude and deep regards to DR KHAI NGUYEN for his supervision, and constant guidance in this report His guidance and help will encourage me along this path of live Also, I‟d like to thank Hoa Phat group and the participants in my survey, who have willingly shared their precious time during the process of interviewing I would like to thank my loved ones, who have supported me throughout entire process, both by keeping me harmonious and helping me putting pieces together I will be grateful forever for your love Once again, I thank very much to all Do Thanh Lam Student - CONTENTS PART ONE ABSTRACT INTRODUCTION About Hoa Phat group 2 Organization structure Research problem statement 13 Research objective 14 Research scope 14 Significance of research 15 PART TWO LITERATURE REVIEW 15 Definition of Constructs 15 Career Commitment 15 Role Overload 16 Job Role Ambiguity 17 Goal and Process Clarity 17 Perceived Ability-Job Fit 18 Argument for the relationship among the constructs 18 Maslow‟s theory 18 Alderfer‟s ERG theory 19 Meyer and Allen‟s three-component model 22 Adams‟s Equity Theory 23 Herzberg‟s two-factor theory 26 - 10 PART THREE 11 12 PART FOUR 13 14 15 Hypotheses 29 Research model 30 METHODS Data collection 30 Design template scale 30 Data collection progress 38 Data analysis 39 RESULTS Cronbach‟s Alpha 39 39 Cronbach‟s Alpha standard applied 39 Cronbach‟s Alpha of constructs 40 Statistics information 41 Descriptive statistics 42 Correlation statistics 42 Hypotheses testing Hypothesis proposed PART FIVE 30 43 44 CONCLUSIONS 46 16 Discussion 47 17 Limitation of research 47 18 Recommendation 47 REFERENCES 49 APPENDIX 52 Appendix 1: Survey 52 Appendix 2: Presentation 60 - FIGURE & TABLE FIGURE Figure Maslow's hierarchy of needs 19 Figure How Maslow’s and Alderfer’s Levels Relate 20 Figure Research model of Career Commitment 30 Table Career Commitment Scale 31 Table Role Overload Scale 32 Table Job Role Ambiguity Scale 33 Table Goal and Process Clarity Scale 35 Table Perceived Ability-Job Fit Scale 37 Table Time table for data collection progress 38 Table Cronbach’s Alpha - Internal Consistency 40 Table Cronbach’s Alpha of Career Commitment 40 Table Cronbach’s Alpha of Role Overload 41 Table 10 Cronbach’s Alpha of Job Role Ambiguity 41 Table 11 Cronbach’s Alpha of Goal and Process Clarity 41 Table 12 Cronbach’s Alpha of Perceived Ability-Job Fit Scale 41 Table 13 Descriptive statistics 42 Table 14 Correlation statistics 42 Table 15 Model summary of Hypothesis 44 Table 16 Coefficients of Hypothesis 44 TABLE - Business Research Methods P a g e / 64 ABSTRACT This research is intended to understand the key variables that contribute towards making managers committed with employees about career in an organization This research has been carried out to test relationship among Role Overload, Job Role Ambiguity, Goal and Process Clarity, Perceived Ability Job-Fit and Career Commitment It is established through hypotheses which were tested by collecting data from employees of Hoa Phat Group in form of a questionnaire Sample size for study was 400 In general, employee participation affects Career Commitment more as compared to Job Role Ambiguity and Goal and Process Clarity It was observed during the study that if these factors were studied by comparing the job performance of employees in organization The result of these surveys shall be statistically analyzed by software SPSS version 22 (copyright of IBM) Hypotheses used this research includes construct: one dependent construct (Career Commitment) and four independent constructs (Role Overload, Job Role Ambiguity, Goal and Process Clarity, Perceived Ability Job-Fit) This research provides some recommendations implications for managers to raise the level of commitment with organization of the employees Key word: Role Overload, Job Role Ambiguity, Goal and Process Clarity, Perceived Ability JobFit and Career Commitment and Hoa Phat group Student: Do Thanh Lam (ID: 19897) - Business Research Methods P a g e / 64 PART ONE: INTRODUCTION About Hoa Phat Group Transaction name: Hoa Phat Group Joint Stock Company Business Registration Certificate No.: 0900189284 Charter capital: VND 7.329.514.190.000 Address: Pho Noi A Industrial Zone, Giai Pham Commune, Yen My District, Hung Yen Province Head Office: 39 Nguyen Dinh Chieu, Le Dai Hanh Ward, Hai Ba Trung District, Hanoi Phone: (84) 62848666 Fax: (84) 62833456 Da Nang Branch 171 Truong Chinh, An Khe Ward, Thanh Khe District, Da Nang City Phone: (84) 511 3721232 Fax: (84) 511 3722833 HCM City Branch: 643 - 645 Dien Bien Phu, Ward 25, Binh Thanh District, Ho Chi Minh City Phone: (84) 62985599 Fax: (84) 62987799 Website: www.hoaphat.com.vn Share information Stock sticker: HPG Stock exchange: HOSE Initial offering date: 15 November 2007 Shares in circulation: 732,951,419 shares Business activities Student: Do Thanh Lam (ID: 19897) - Business Research Methods P a g e / 64 Trading, exporting and importing iron and steel, materials and equipments for refining and rolling steel; Producing rolling steel and roof fabrication; Producing steel pipes and galvanized ones, stainless ones; Producing and trading non-ferrous metal and non-ferrous metal scrap; Refining steel and casting iron; Manufacturing and trading coke coal; Mining for metal ores; trading metals, metal ores and metal scrap; Manufacturing and trading construction and mining equipment; Producing interior furniture for offices, households and schools; 10 Manufacturing, trading, assembling, repairing, and maintaining electric, electronic, refrigeration, civil electric products and air conditioners; 11 Investing and building infrastructure for industrial zones and urban areas; 12 Real estate business 13 Producing and trading animal feed for livestock and poultry, raising livestock, and processing meat and meat products, etc Overview The Hoa Phat Group is one of the leading private industrial manufacturing groups in Vietnam Originating as a small construction machine and equipment trading company in August 1992, Hoa Phat has gradually expanded its business to trading and production of Furniture (1995), Steel Pipes (1996), Steel (2000), Refrigeration (2001), and Property Development (2001) In 2007, Hoa Phat was reorganized into a group structure, with Hoa Phat Group Joint Stock Company being the Parent Company of its subsidiaries and associates Since 15th November 2007, Hoa Phat has been officially Student: Do Thanh Lam (ID: 19897) - Business Research Methods P a g e / 64 listed on the Ho Chi Minh City Stock Exchange under the stock ticker symbol “HPG” As of February 2016, the Hoa Phat Group has 18 subsidiaries The Hoa Phat Group operates with a focus in segments such as steel, refrigeration, furniture, machinery and property development including industrial zones and housing; its agricultural segment comprises husbandry and feed production with dozens of plants in various provinces nationwide At present, production of construction steel is the core business activity of the Group and accounts for 79.4% of its total revenue and 82.3% of total profit Through its construction steel segment, the Hoa Phat Group is the owner of the Hoa Phat Integrated Steel Complex in Hai Duong Province With a total capacity of up to 1.7 million tonnes per year, the project put all three stages into operation simultaneously in Quarter I of 2016 Presently, the Hoa Phat Group is recognized as one of the three largest construction steel manufacturers in Vietnam with a 21.3% market share In addition to this, various other products of the Group, including steel pipes, furniture are traded under reputable brands as market leaders in their respective markets The Hoa Phat Group officially entered the agricultural sector in early 2015 by establishing the Hoa Phat Feeds Production & Trading One Member Limited Liability Company, with a charter capital of VND300 billion and a capacity designed to reach 300,000 tonnes per year Currently Hoa Phat has expanded its feed production segment to the Southern region by establishing the Hoa Phat Dong Nai Animal Feed One Member Limited Liability Company Hoa Phat Livestock Development Joint Stock Company, a subsidiary of the Group with a charter capital of VND300 billion, focuses on raising sows and pigs in various locations Hoa Phat has set for itself targets of a Student: Do Thanh Lam (ID: 19897) - Business Research Methods P a g e 50 / 64 Carswell, L., & Allen, N J (2000) A meta analytic review of occupational commitment: Relations with person and work related variables Journal of Applied Psychology Coloquitt, J., Lepine, A., & Wesson, M.J (2011) Organizational Behavior: Improving performance and commitment in the workplace McGraw-Hill/Irwin Darden, W R., Hampton, R., & Howell, R (1989) Career vs organizational commitment Antecedent and consequences of retail sales people commitment Journal of Retailing,65(1):80-106 Gaertner, K & Nollen, S (1989) Career experiences, perceptions of employment practices and psychological commitment to the organization, Human Relations, 42(11)975-991 Goulet, L R & Singh, P (2002).Career Commitment A Re-examination and Extension Journal of Vocational Behaviour Hall, D T (1971) A theoretical model of career sub identity development in organizational settings Organizational Behaviour and Human Performance, 6,50-76 Herscovitch, L., & Meyer, J P (2002) Commitment to organizational change Journal of Applied Psychology Mathews, B P.,& Shepherd, J L (2002) Dimensionality of cooks and wall‟s (1980) British organizational commitment scale revisited Journal of occupational and organizational psychology Student: Do Thanh Lam (ID: 19897) - Business Research Methods P a g e 51 / 64 Meyer, J P., & Allen, N J (1990).The measure and antecedents of affective ,continuance and normative commitment to the organization Journal of occupational psychology,63 Meyer, J P., & Allen, N J (1997) Commitment in workplace Thousand Oaks, CA sage Publications Meyer, J P., Stanley, D J Herscovitch, L & Topolnytsky, L (2002) Affective, Continuance and Normative commitment to the organization:A Meta-Analysis of Antecedents, Correlates and Consequences Journal of Vocational behaviour61(1) 2052 Kreitner R & Kinicki A (2007) Organizational Behavior 7th, McGraw-Hill/Irwin C.A Arnolds and C Boshoff (2002) “Compensation, esteem valence and job performance: an empirical assessment of Alderfer's ERG theory” The International Journal of Human Resource Management Harrell, Adrian M.; Stahl, Michael J (1981) “A behavioral decision theory approach for measuring McClelland's trichotomy of needs” Journal of Applied Psychology, Vol 66 (2), 242-247 Management (2014), retrieval from http://management.about.com/ Management of Forbes (2014), http://www.forbes.com/management/ Hoa Phat Group Website: www.hoaphat.com.vn The End Student: Do Thanh Lam (ID: 19897) - Business Research Methods P a g e 52 / 64 APPENDIX Appendix 1: Survey QUESTIONNAIRE Dear Mr / Ms, My name is Do Thanh Lam I‟m a student of MBA Collaboration Program at Open University Malaysia and Ho Chi Minh City University of Technology I am conducting the research for my thesis My research thesis is about: “Factors influencing Career Commitment of Employees at Hoa Phat group” I would like to look for your help by answering the following questionnaire All of your information will be strictly confidentially kept and be solely used for the purpose of my studying Your value time and feedback are extremely useful and meaningful to my fulfillment of my graduation thesis Thank you very much for your very kindly response to this questionnaire It is highly appreciated If you need any information related to this questionnaire, would you please call me at my mobile number (+84) 918561324 or contact with me through my email at thanhlamdolotus301@gmail.com Thank you very much! Student: Do Thanh Lam (ID: 19897) - Business Research Methods P a g e 53 / 64 QUESTIONAIRE PART I: CAREER COMMITMENT Please indicate the degree of your Agreement or Disagreement with each statement by circling one of the five alternatives below each statement (Response are obtained using a 5-point Likert-type subscale where = Strongly agree, = Unsure, and = Strongly disagree) Items denoted with (R) are reverse scored I like this career too well to give it up If I could go into a different profession which paid the same, I would probably take it (R) If I could it all over again, I would not choose to work in this profession (R) I definitely want a career for myself in this profession 5 If I had all the money I needed without working, I would probably still continue to work in this profession I am disappointed that I ever entered this profession (R) Student: Do Thanh Lam (ID: 19897) - Business Research Methods P a g e 54 / 64 This is the ideal profession for a life‟s work PART II: ROLE OVERLOAD Please indicate the degree of your False or True with each statement by circling one of the five alternatives below each statement (Responses are obtained on a 5-point Likert-type scale where = Definitely false and = Definitely true) I don‟t have time to finish my job I‟m rushed in doing my job I have a lot of free time on my hands PART III: JOB ROLE AMBIGUITY Please indicate the degree of your agreement or disagreement with each statement by circling one of the five alternatives below each statement (Responses are obtained using a 5-point Likert-type scale where = Strongly disagree, = Disagree to some extent, = Uncertain, = Agree to some extant and = Strongly agree (lower scores indicate higher level: ambiguity)) Student: Do Thanh Lam (ID: 19897) - Business Research Methods P a g e 55 / 64 Work method ambiguity items: I am certain how to go about getting my job done (the methods to use) I know what is the best way (approach) to go about getting my work done I know how to get my work done (what procedures to use) Scheduling ambiguity items: I know when I should be doing a particular aspect (part) of my job I am certain about the sequencing of my work activities (when to what) My job is such that I know when I should be doing a given work activity Performance criteria ambiguity items: Student: Do Thanh Lam (ID: 19897) - Business Research Methods P a g e 56 / 64 I know what my supervisor considers satisfactory work performance It is clear to me what is considered acceptable performance by my supervisor I know what level of performance is considered acceptable by my supervisor PART IV: GOAL AND PROCESS CLARITY Please indicate the degree of your Uncertain or Certain with each statement by circling one of the five alternatives below each statement (Responses are obtained using a 5-point Likert-type scale where = Very uncertain and = Very certain Respondents are asked to indicate the degree of certainty about each of the following items) Goal clarity items: My duties and responsibilities The goals and objectives for my job Student: Do Thanh Lam (ID: 19897) - Business Research Methods P a g e 57 / 64 How my work relates to the overall objectives of my work unit The expected results of my work 5 What aspects of my work will lead to a positive evaluation Process clarity items: How to divide my time among the tasks required of my job How to schedule my work day How to determine the appropriate procedures for each work task The procedures use to my job are correct and proper 5 Considering all your work tasks, how certain are you that you know the best ways to these tasks Student: Do Thanh Lam (ID: 19897) - Business Research Methods P a g e 58 / 64 PART V: PERCEIVED ABILITY-JOB FIT Please indicate how much you agree or disagree with each of following statements using the numbers through where = Strongly Disagree, = Disagree, = Neutral, = Agree and = Strongly Agree Please circle only one number that is most suitable with your response (Responses are obtained on a 5-point Likert-type subscale where = Strongly disagree and = Strongly agree) I feel that my work utilizes my full abilities I feel competent and fully able to handle my job My job gives me a chance to the things I feel I best I feel that my job and I are well matched 5 I feel I have adequate preparation for the job I now hold Student: Do Thanh Lam (ID: 19897) - Business Research Methods P a g e 59 / 64 Personal Information Gender  Male  Female Age  Under 24 years old  From 24 to 36 years old  From 36 to 45 years old  Above 45 years old Academic degree  High school  Colleges Degree  Bachelor Degree  Master Degree  Doctoral Degree Working seniority  Under years  From to years  From to years  Above years Working position  Direct employee  Office staff  Manager  Senior Manager  Supervisor/Team leader You have successfully done the questionnaire Thank you very much! Student: Do Thanh Lam (ID: 19897) - Business Research Methods Appendix 2: Presentation Student: Do Thanh Lam (ID: 19897) P a g e 60 / 64 - Business Research Methods Student: Do Thanh Lam (ID: 19897) P a g e 61 / 64 - Business Research Methods Student: Do Thanh Lam (ID: 19897) P a g e 62 / 64 - Business Research Methods Student: Do Thanh Lam (ID: 19897) P a g e 63 / 64 - Business Research Methods Student: Do Thanh Lam (ID: 19897) P a g e 64 / 64