The role of middle managers’ motivation on the relationship between managerial skills training and their own job performance the case of manufacturing industry in vietnam

VIETNAM NATIONAL UNIVERSITY, HANOI VIETNAM JAPAN UNIVERSITY PHAM TUAN MINH THE ROLE OF MIDDLE MANAGERS’ MOTIVATION ON THE RELATIONSHIP BETWEEN MANAGERIAL SKILLS TRAINING AND THEIR OWN JOB PERFORMANCE: THE CASE OF MANUFACTURING INDUSTRY IN VIETNAM MASTER’S THESIS VIETNAM NATIONAL UNIVERSITY, HANOI VIETNAM JAPAN UNIVERSITY PHAM TUAN MINH THE ROLE OF MIDDLE MANAGERS’ MOTIVATION ON THE RELATIONSHIP BETWEEN MANAGERIAL SKILLS TRAINING AND THEIR OWN JOB PERFORMANCE: THE CASE OF MANUFACTURING INDUSTRY IN VIETNAM MAJOR: BUSINESS ADMINISTRATION CODE: 8340101.01 RESEARCH SUPERVISORS: Dr MAI ANH Prof Dr TANABU MOTONARI Ha Noi, 2021 ACKNOWLEDGEMENT Throughout the writing of this Master’s thesis, I have received a great deal of support and assistance I would like to especially express my sincere thanks and gratitude to Dr Mai Anh and Prof Dr Motonari Tanabu for their continuous, persistent advisory for my research I also would like to express a similar attitude to Prof Yoshiki Matsui and Prof Hisashi Kurata, who have been the co-hosts of the weekly online joint seminar Their invaluable and insightful feedback, encouragement, and guidance with details across every section have played a crucial role to help me complete the research My thankful thoughts also dedicate to all other lecturers and assistants from Vietnam Japan University and Yokohama National University, also to all invited lecturers participating in this MBA program during the fourth intake Their exemplary knowledge, effort, and devotion bring to students unlimited opportunities to learn and improve themselves, of which the completion of this research can be considered as one of the most fruitful outcomes In addition, I would also like to thank nearly 140 middle managers with different titles, from various sectors of the manufacturing industry across Vietnam, who have spent their valuable time to answer the survey seriously, as well as assist to introduce the survey to the right respondents during the difficult situation caused by the Covid-19 Last but not least, my dearest words would like to come to all my family members and classmates, whose encouragement and support have been indispensable for me to be able to complete the extremely challenging journey during the past memorable two years of my life./ SUMMARY Not fully basing on any classic theories of work motivation or performance to propose a quite new research model, which put together Managerial Skills Training, Work Motivation, and Job Performance to test their roles and interrelationship, the thesis can touch some facets of these extremely complex, frequently-studied dimensions in the field of human resources management and I/O psychology The final results once again confirm and strengthen the traditional concept regarding work motivation and its dichotomy between intrinsic – extrinsic types These two dimensions, due to their opposite in nature, hardly share the same model of effects on job performance Besides, intrinsic motivation is considered to be much more beneficial to the organizations than the extrinsic one, in long term, as it can positively support and strengthen the individual job performance of middle managers Therefore, firms and their management teams should focus on investing intrinsic motivation, especially while designing training programs and strategies for middle managers in the manufacturing industry in Vietnam However, this small research still contains several drawbacks and shortcomings that possibly affect the accuracy of the final results, more or less These weaknesses should be carefully evaluated and fixed in future studies relating to this topic TABLE OF CONTENTS LIST OF TABLES i LIST OF FIGURES ii LIST OF ABBREVIATIONS iii CHAPTER 1: INTRODUCTION 1.1 Research background 1.2 Research purpose 1.3 Research questions 1.4 Scope of research 1.5 Research structure CHAPTER 2: LITERATURE REVIEW .9 2.1 Managerial skills training 2.2 Job performance 11 2.3 Work motivation 13 2.3.1 Definitions 13 2.3.2 Work motivation and job performance 15 2.3.3 Work motivation and (managerial) skills training 16 2.4 Research gap .17 2.5 Propose the research model & Hypotheses 17 CHAPTER 3: RESEARCH METHODOLOGY 20 3.1 Research design 20 3.2 Survey plan 20 3.3.1 Variables .20 3.3.2 Questionnaire 21 3.3.3 Sampling and data collection 25 3.3 Plan for data analysis 26 3.3.1 Reliability analysis 26 3.3.2 Exploratory Factor Analysis (EFA) 26 3.3.3 Pearson’s correlation 27 3.3.4 Regression method 27 CHAPTER 4: RESULTS ANALYSIS AND DISCUSSION .29 4.1 Respondents’ profiles 29 4.2 Reliability analysis 31 4.2.1 Independent variable .31 4.2.2 Motivational variables 32 4.2.2 Dependent variable .34 4.3 Exploratory factor analysis (EFA) 36 4.3.1 Independent variable .36 4.3.2 Motivational variables 37 4.3.3 Dependent variable .38 4.3.4 Wrap-up of EFA results 40 4.4 Pearson correlation 41 4.5 Causal relations between dependent variables and predictors 41 4.6 Mediating analysis 45 4.7 Moderating analysis 46 4.8 Hypotheses testing results 48 CHAPTER 5: CONCLUSIONS AND IMPLICATIONS .49 5.1 Conclusions 49 5.2 Implications 50 5.3 Limitations 51 REFERENCES 52 LIST OF TABLES Table 2.1: Dimensions of job performance and its variables 12 Table 3.1: The 5-point Likert scale values of agreement level .21 Table 3.2: The question items for Motivation .22 Table 3.3: The question items for Managerial skills training .23 Table 3.4: The question items for Job performance .23 Table 4.1: Respondents’ profile by geography .29 Table 4.2: Respondents’ profile by gender 29 Table 4.3: Respondents’ profile by age 30 Table 4.4: Cross-tabulation of variables EDU and DGR 30 Table 4.5: Cross-tabulation of variables EXP and EDU .31 Table 4.6: Cross-tabulation of variables EXP and DGR .31 Table 4.7: Reliability test of the independent variable 32 Table 4.8: Reliability test of Extrinsic motivation 33 Table 4.9: Reliability test of Intrinsic motivation 33 Table 4.10: Reliability test of the dependent variable 35 Table 4.11: Component matrix of independent variable after EFA 37 Table 4.12: Rotated component matrix of work motivation 38 Table 4.13: Rotated component matrix of the dependent variable 40 Table 4.14: Summarized results after EFA 40 Table 4.15: Correlation coefficients between variables 41 Table 4.16: Regression results of simultaneous effects of predictors 42 Table 4.17: Regression results for EM separately 43 Table 4.18: Regression results for IM separately 44 Table 4.19: Test for mediating role of intrinsic motivation 45 Table 4.20: Test for moderating role of intrinsic motivation 47 Table 4.21: Summarization of hypotheses testing results .47 i LIST OF FIGURES Figure 2.1: Research model A - Mediating effect 18 Figure 2.2: Research model B - Moderating effect .18 Figure 5.1: The mediating effect model of intrinsic motivation 49 Figure 5.2: The moderating effect of intrinsic motivation 49 ii LIST OF ABBREVIATIONS DGR: Educational degree EDU: Educational background EFA: Exploratory factor analysis EM: Extrinsic motivation EXP: (Years of) experience in middle-level management HRM: Human Resource Management IM: Intrinsic motivation IP: Interpersonal facilitation I/O: Industrial / Organizational (Psychologists) JD: Job dedication JP: Job performance MOIT: Ministry of Industry and Trade MOV: Work motivation MST: Managerial skills training OP: Overall performance PMST: Perceived managerial skills training PTE: Perceived training effectiveness PTO: Perceived training opportunity PJP: Perceived job performance iii CHAPTER 1: INTRODUCTION 1.1 Research background In a developing economy like Vietnam, the matter of “job performance” seems to be emphasized more and more frequently, attracts big interest from every stakeholder, who want to take advantage of the strong momentum of a dynamic economy The collective performance of a firm or company has continuously been taken care of by all the investors, shareholders, and policymakers since the starting days of every business Meanwhile, individual performance, which is obviously among the most crucial contributors to the collective performance, in many cases, usually catches the remarkable attention of the board of management only when the collective performance cannot reach its target, or when there is some arisen issue of human resources When such a situation happens, the reality shows that the middle manager position frequently has to bear the highest pressure, not the top management nor the entry-level employees Because middle managers are considered as the backbone of each enterprise when they are the links from the top managers to the lowest level staff Therefore, middle managers’ job performance in Vietnam deserves to be paid much higher attention to, as well as to be researched for continuous maintenance and improvement If so, there is a reasonable question coming up: how to assess their job performance suitably? Experts have developed some specific models for a set of specific occupations, as well as for applicability across occupations (Viswesvaran & Ones, 2000) There are some commercial instruments designed specifically for managers However, in the context of this dissertation, the student would like to approach academic options Some broad performance dimensions have been suggested and widely accepted For instance, the research of (Borman & Brush, 1993) has proposed a taxonomy including leadership; interpersonal relations; technical behaviors and mechanics of management; other useful behaviors and skills Meanwhile, (van Scotter & Motowidlo, 1996) have pointed out that (1) interpersonal facilitation and (2) job dedication should be reliable, too Additionally, a study by (Kuvaas, 2006) reminds us that “overall work performance” assessed by superiors is indispensable to measure 4.4 Pearson correlation Table 4.15: Correlation coefficients between variables Pearson Correlation PJP PMST EM IM PJP PMST EM IM 0.720** 0.175* 0.788** 0.000 0.041 0.000 0.185* 0.800** 0.030 0.000 0.154 Sig (2-tailed) Pearson Correlation 0.720** Sig (2-tailed) 0.000 Pearson Correlation 0.175* 0.185* Sig (2-tailed) 0.041 0.030 Pearson Correlation 0.788** 0.800** 0.154 Sig (2-tailed) 0.000 0.000 0.073 0.073 ** Correlation is significant at the 0.01 level (2-tailed) * Correlation is significant at the 0.05 level (2-tailed) Comments: - PMST, EM, IM separately correlate with PJP Respectively, PMST and IM have strong correlations with PJP whereas EM has a much weaker correlation - PMST strongly correlates with IM and has a much weaker correlation with EM - EM does not correlate with IM as the sig value is 0.073 (> 0.05) - EM weakly correlates with PJP and PMST respectively (0.175 and 0.185), in comparison with IM’s correlation coefficients with those two variables (0.788 and 0.800) 4.5 Causal relations between dependent variables and predictors Firstly, the simultaneous effects of the perceived managerial skills training (PMST), extrinsic motivation (EM), intrinsic motivation (IM), control variables (EDU, DGR, EXP) on the perceived job performance (PJP) are examined This test can serve both research models Adapting from the results of the factor analysis process, and from the formula explained in section 3.3.4, a multiple regression formula was run, and its results are shown as in the below table: 41 Table 4.16: Regression results of simultaneous effects of predictors PJP ← f(PMST, EM, IM, EDU, DGR, EXP) Standardized Coefficients β Sig VIF 0.257 0.004 2.848 EM 0.046 0.390 1.065 IM 0.557 0.000 2.974 DGR -0.008 0.874 1.021 EDU 0.060 0.262 1.037 EXP 0.049 0.372 1.097 Regression model Independent variable PMST Motivational variables Control variables Model summary R2 0.650 Adjusted R2 0.634 F-value 40.226 0.000 The above results affirm the fitness of the model with the F-value of 40.226 with Sig value of 0.000 With all predictors entered as in the regression formula, they can explain 63.4% of the variation of the dependent variable (Adjusted R2 = 0.634; R2 = 0.650) It means that the choice of these predictors was reasonably acceptable Besides, the VIF coefficients ranged from values of 1.021 to 2.848, met the requirement of avoiding multicollinearity Among all predictors, the variable IM had the highest standardized coefficient β, even higher than the independent variable PMST (0.557 versus 0.257) It means that intrinsic motivation was predicted to have the strongest impact on the variation of the dependent variable, even stronger than the independent variable PMST, in the same 42 positive direction This finding seems to be consistent with the correlation coefficients found in section 4.4, as well as partially supports hypotheses H2 and H3 However, this regression model shows that the Sig values of EM, EDU, EXP, DGR are bigger than 0.05 It means that these variables were not statistically related to the perceived job performance (PJP) The extremely low correlation coefficients between the two pairs (EM, PMST) and (EM, PJP) in section 4.4 somehow support this finding Secondly, the separate effect of EM and IM was examined The regression results were as below table: Table 4.17: Regression results for EM separately PJP ← f(PMST, EM, EDU, DGR, EXP) Regression model Standardized Coefficients β Sig VIF 0.689 0.000 1.065 0.847 0.399 1.065 -0.012 0.102 0.125 0.834 0.090 0.039 1.021 1.020 1.040 0.545 0.528 31.441 0.000 Independent variable PMST Motivational variables EM Control variables DGR EDU EXP Model summary R2 Adjusted R2 F-value The regression model shows that the Sig values of EM, EDU, DGR are bigger than 0.05 It means that these variables were not statistically related to the perceived job performance (PJP) 43 Table 4.18: Regression results for IM separately PJP ← f(PMST, IM, EDU, DGR, EXP) Regression model Standardized Coefficients β Sig VIF 0.264 0.003 2.821 0.559 0.000 2.973 -0.004 0.054 0.051 0.946 0.307 0.350 1.009 1.019 1.094 0.648 0.634 48.216 0.000 Independent variable PMST Motivational variables IM Control variables DGR EDU EXP Model summary R2 Adjusted R2 F-value The regression model shows that the Sig values of EDU, EXP, DGR are bigger than 0.05 It means that these variables were not statistically related to the perceived job performance (PJP) To sum up, after three regression models to test the causal relations between the dependent variable and its predictor, the results consistently showed that extrinsic motivation (EM) and all control variables (DGR, EDU, EXP) were not statistically related to the dependent variable (PJP) Especially, EM was not statistically qualified in both tests, simultaneously with IM and separately itself Therefore, they will be omitted from evaluating their roles and effects within the context of this dissertation There is only one sub-variable of work motivation left (intrinsic motivation - IM) to test the mediating and moderating roles in the relationship between managerial skills training and job performance 44 4.6 Mediating analysis Based on regression results in section 4.5, adapted from the formula in section 3.3, the procedure to test the mediating role of intrinsic motivation would be as below: Step 1: IM ← f(PMST) Step 2: PJP ← f(PMST) Step 3: PJP ← f(PMST, IM) The results of that multiple regression are shown in below table: Table 4.19: Test for mediating role of intrinsic motivation Step Step Step Regression model Dependent variable IM PJP PJP 0.800 0.720 0.250 Direct effect PMST Mediating role 0.588 IM Model summary R2 0.640 0.519 0.643 Adjusted R2 0.637 0.515 0.638 240.036 145.389 120.655 F-value In step 1, the variable PMST was regressed on the variable IM The values of R2 (0.640) and F-value (240.036) show that the perceived managerial skills training can have a positive effect on intrinsic motivation (β = 0.800) Carrying out the regression formula EM ← f(PMST), the results show that the perceived managerial skills training doesn’t have a positive effect on intrinsic motivation (R2 = 0.034, F-value = 4.798) Therefore, we can conclude that hypothesis H1 was partially supported 45 In step 2, the variable PMST was regressed on the variable PJP The values of R2 (0.519) and F-value (145.389) show that the perceived managerial skills training can have a positive effect on the perceived job performance (β = 0.720) It means that hypothesis H3 was concluded to be partially supported Because the extrinsic motivation was concluded to not be statistically related to the perceived job performance in section 4.5 In step 3, with the presence of the variable IM as the mediator, the relationship between PMST and PJP was examined The values of R2 (0.643) and F-value (120.655) confirm a significant relationship in this regression formula Table 4.19 clearly shows that the coefficient β of PMST actually decreased in Step with the presence of the mediator IM, became noticeably smaller than its coefficient in Step Furthermore, the value of R2 increased from Step to Step It means that the presence of the mediator IM can better explain the variation of the dependent variable PJP All steps and arguments above were reliable to concluded that intrinsic motivation (IM) had a mediating role in the relationship between perceived managerial skills training (PMST) and perceived job performance (PJP), following (Baron & Kenny, 1986) Thus, hypothesis H5 was concluded to be partially supported 4.7 Moderating analysis Based on regression results in section 4.5, where variable EM and all control variables were concluded to not statistically related to the variable PJP, also adapted from the formula in section 3.3, the procedure to test the mediating role of intrinsic motivation would be as below: Step 1: PJP ← f(PMST, IM) Step 2: PJP ← f(PMST, IM, PMST*IM) The results of that multiple regression are shown in below table: 46 Table 4.20: Test for moderating role of intrinsic motivation Step Step Regression model Dependent variable PJP PJP PMST 0.250 0.791 IM 0.588 1.105 Direct effect Moderating role / Interaction term -1.013 PMST * IM Model summary R2 0.643 0.661 Adjusted R2 0.638 0.653 120.655 86.269 F-value In step 1, the two variables PMST and IM were regressed on the dependent variable PJP The values of R2 (0.643) and F-value (120.655) show that both perceived managerial skills training (PMST) and intrinsic motivation (IM) can affect the perceived job performance (PJP), with the standardized coefficient β = 0.250 and 0.588, respectively In step 2, the interaction term between PMST and IM was input into the regression formula done in step The results showed that the interaction term was significant as its Sig = 0.010 < 0.05 Furthermore, the R2 increased from 0.643 (step 1) to 0.661 (step 2) The increases in values of coefficient β of PMST and IM also happened while comparing those evolvements from step to step All were in a positive direction It means that the presence of the interaction term positively affected the relationship between variables PMST and PJP Therefore, following (Baron & Kenny, 1986), the intrinsic motivation (IM) satisfied the requirement of having a moderating role in the relationship between perceived managerial skills training (PMST) and perceived job performance (PJP) Thus, hypothesis H4 was concluded to be partially supported 47 4.8 Hypotheses testing results Table 4.21: Summarization of hypothses testing results Hypotheses Effects Correlation Support H1 IM ← PMST 0.800** Partially supported H2 PJP ← IM 0.788** Partially supported H3 PJP ← PMST 0.720** Partially supported H4 Moderating Partially supported H5 Mediating Partially supported ** Correlation is significant at the 0.01 level (2-tailed) 48 CHAPTER 5: CONCLUSIONS AND IMPLICATIONS 5.1 Conclusions Intrinsic Motivation Managerial Job performance skills training Figure 5.3: The mediating effect model of intrinsic motivation Intrinsic Motivation Managerial skills training Job performance Figure 5.4: The moderating effect of intrinsic motivation The results of testing the role of motivation once again confirm what has been predicted in the literature review about work motivation with the dichotomy of intrinsic motivation and extrinsic motivation Intrinsic motivation can have both moderating and mediating effects on the relationship between Managerial Skills Training and Job Performance Meanwhile, extrinsic motivation and all control variables, such as educational degree, educational background, years of experience in middle-level management cannot statistically relate to this relationship 49 5.2 Implications The results of the dissertation may give some suggestions to practitioners while designing the training strategy within the manufacturing sector, they can fully focus on the activities that can enhance or create more value for intrinsic motivation at the workplace Then they can receive positive performance from middle managers – the backbone of their organizations For scholars and researchers, since recently there has been more voice of critique on the way implementing and designing managerial skills training (Caproni & Arias, 1997), the cultural factors should be taken into consideration more frequently and seriously The exchanges between cultures or civilizations may shape the way training programs are designed, as well as significant effect on the motivation of trainees attending those training sessions There is one concern regarding the stability of the acquired results, as extrinsic motivation could not show any effect in this study This situation seems to be unusual So, this manifestation will be just a short-term event, or is it the signal for a changin tendency? Does the pandemic of the Covid-19 have any impact on this research’s results? Last but not least, there is a contradiction arised from the results of this dissertation, while intrinsic motivation is the mediator and moderator at the same time Following the work of (Karazsia & Berlin, 2018), this situation could not conceptually happen, according to MacArthur approach: “the moderator must occur before the predictor” In this case, the moderating effect of intrinsic motivation must accur before the event of managerial skills training Perhaps, acrossing the time, there might be some components of the intrinsic motivation, after mediating the relationship between managerial skills training at present time, can adaptively evolve to a higher or lower level of impact to become a moderator for this same relationship, but in a different status in quality of the training and the job performance At that moment, the intrinsic motivation can exert its moderating effect on the managerial skills training, but in a new level Because training is a kind of activity or process that never has an end 50 5.3 Limitations Despite trying extremely hard, this dissertation still can not collect the expected sample size of the questionnaire as suggested by (Hair et al., 1995) This shortcoming surely affects the accuracy of the research results, more or less More than 90% of respondents live and work in the North of Vietnam However, the manufacturing sector is much stronger in the southern provinces, where working attitudes and living culture are not identical with other regions Therefore, the thesis’ results may not reflect the whole picture about the role of work motivation across the country Furthermore, the answers from respondents about motivational elements and job performance are mostly self-evaluation, hence containing high subjectivity This technical drawback may also affect collected data’s accuracy 51 REFERENCES Amabile, T M (1993) Motivational synergy: Toward new conceptualizations of intrinsic and extrinsic motivation in the workplace Human Resource Management Review, 3(3), 185–201 https://doi.org/10.1016/1053-4822(93)90012-S Baldwin, T T., & Ford, J K (1988) Transfer of training: A review and directions for future research Personnel Psychology, 41(1), 63–105 Baron, R M., & Kenny, D A (1986) The Moderator-Mediator Variable Distinction in Social Psychological Research: Conceptual, Strategic, and Statistical Considerations (Vol 51, Issue 6) Psychological Association, Inc Bartlett, M S (1950) Tests of Significance in Factor Analysis British Journal of Statistical Psychology, 3(2), 77–85 Blumberg, M., & Pringle, C D (1982) The Missing Opportunity in Organizational Research: Some Implications for a Theory of Work Performance Academy of Management Review, 7(4), 560–569 https://doi.org/10.5465/amr.1982.4285240 Bollen, K A (2011) Evaluating effect, composite, and causal indicators in structural equation models In MIS Quarterly: Management Information Systems (Vol 35, Issue 2, pp 359–372) University of Minnesota Borman, W C., & Brush, D H (1993) More Progress Toward a Taxonomy of Managerial Performance Requirements Human Performance, 6(1), 1–21 https://www.tandfonline.com/doi/abs/10.1207/s15327043hup0601_1 Cameron, K S., & Whetten, D A (1983) A model for teaching management skills Journal of Management Education, 8(2), 21–27 Caproni, P J., & Arias, M E (1997) Managerial Skills Training from a Critical Perspective In Journal of Management Education (Vol 21, Issue 3, pp 292–308) Chiaburu, D S., & Tekleab, A G (2005) Individual and contextual influences on multiple dimensions of training effectiveness Journal of European Industrial Training, 29(8), 604–626 Công nghiệp chế biến chế tạo thu hút 13,6 tỷ USD vốn FDI năm 2020, phát huy vai trò động lực tăng trưởng kinh tế (Manufacturing industry attracted 13,6 billion USD of FDI in 2020, strengthening its role of development motive) – General Statistics Office of Vietnam (n.d.) 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