The effect of leadership on employee commitment in FPT distribution company a full range leadership approach

THE EFFECT OF LEADERSHIP ON EMPLOYEE COMMITMENT IN FPT DISTRIBUTION COMPANY – A FULL RANGE LEADERSHIP APPROACH In Partial Fulfillment of the Requirements of the Degree of MASTER OF BUSINESS ADMINISTRATION In International Business By Tran Thi Ngoc Quyen ID: MBA03027 International University – Vietnam National University HCMC February 2013 THE EFFECT OF LEADERSHIP ON EMPLOYEE COMMITMENT IN FPT DISTRIBUTION COMPANY – A FULL RANGE LEADERSHIP APPROACH In Partial Fulfillment of the Requirements of the Degree of MASTER OF BUSINESS ADMINISTRATION In International Business by Ms Tran Thi Ngoc Quyen ID: MBA03027 International University - Vietnam National University HCMC February 2013 Under the guidance and approval of the committee, and approved by all its members, this thesis has been accepted in partial fulfillment of the requirements for the degree. Approved: ---------------------------------------------- --------------------------------------------- Chairperson Supervisor ---------------------------------------------- --------------------------------------------- Committee member Committee member i ACKNOWLEGEMENT This thesis is done with great deal of supporting from the wonderful people, who showed significant concern towards me during the time of working on this dissertation. I would like to take this opportunity to express my sincere gratitude to them. I wish to express my deepest gratitude to Dr. Truong Thi Lan Anh for her great supervision and continuous support as well as providing critical insights during the course of my research. I would like to extend my thanks to all employees of FPT Distribution Company for their time completing all questionnaires, especially for their assistance, coordination and support during the research survey process. Last but not least, I want to say thankful to my family, who always beside me and give me power to complete my dissertation. With many thanks, ii PLAGIARISM STATEMENTS I would like to declare that, apart from the acknowledged references, this thesis either does not use language, ideas, or other original material from anyone; or has not been previously submitted to any other educational and research programs or institutions. I fully understand that any writings in this thesis contradicted to the above statement will automatically lead to the rejection from the MBA program at the International University – Vietnam National University Ho Chi Minh City. iii COPYRIGHT STATEMENT This copy of the thesis has been supplied on condition that anyone who consults it is understood to recognize that its copyright rests with its author and that no quotation from the thesis and no information derived from it may be published without the author‟s prior consent. ©Tran Thi Ngoc Quyen/MBA03027/2013 iv Table of Contents Chapter 1: INTRODUCTION......................................................................................................... 1 1.1. Research background: .......................................................................................................... 1 1.2. FPT Distribution Company introduction: ............................................................................ 2 1.3. Rationales and Problem statement: ...................................................................................... 3 1.4. Research objectives:............................................................................................................. 4 1.5. Scope of research: ................................................................................................................ 4 1.6. Significance of research: ...................................................................................................... 4 1.7. Research structure: ............................................................................................................... 4 Chapter 2: LITERATURE REVIEW AND RESEARCH MODEL ............................................... 6 2.1. Leadership: ........................................................................................................................... 6 2.1.1. 2.1.1.1. Differences between Managers and Leaders:........................................................ 6 2.1.1.2. Some definitions of leadership: ............................................................................. 7 2.1.2. Traditional leadership theories: .................................................................................... 8 2.1.2.1. Trait Theory: ......................................................................................................... 8 2.1.2.2. Behavioural Theory: .............................................................................................. 9 2.1.2.3. Contingency Theory: ........................................................................................... 11 2.1.3. 2.2. Concepts: ...................................................................................................................... 6 Full-range leadership theories: ................................................................................... 14 Employee commitment: ..................................................................................................... 19 2.2.1. Concepts: .................................................................................................................... 19 2.2.2. Components of employee commitment: ..................................................................... 21 2.3. Relationship between leadership and employee commitment: .......................................... 22 2.4. Research model and hypothesis: ........................................................................................ 25 Chapter 3: METHODOLOGY ...................................................................................................... 26 3.1. Research design: ................................................................................................................ 26 3.2. Research process: ............................................................................................................... 29 3.3. Population and Data sampling: .......................................................................................... 29 3.4. Data collection: .................................................................................................................. 30 3.4.1. Secondary data:........................................................................................................... 31 v 3.4.2. Primary data:............................................................................................................... 31 3.4.2.1 Preliminary research: ................................................................................................ 32 3.4.2.2 Final survey:.............................................................................................................. 33 3.5. Data analysis: ..................................................................................................................... 38 3.5.1. Coding data: ................................................................................................................ 38 3.5.2. Descriptive statistics: .................................................................................................. 39 3.5.3. Reliability and Validity test: ....................................................................................... 40 3.5.4. Regression analysis: ................................................................................................... 41 Chapter 4: RESEARCH RESULTS AND ANALYSIS ............................................................... 42 4.1. Response rate: .................................................................................................................... 42 4.2. Demographic data: ............................................................................................................. 42 4.3. Results of Validity test: ...................................................................................................... 43 4.3.1. Exploratory factor analysis –EFA of independent variables: ..................................... 43 4.3.2. Exploratory factor analysis –EFA of dependent variables: ........................................ 44 4.3.3. Rename factors: .......................................................................................................... 46 4.4. Results of Reliability test: .................................................................................................. 49 4.4.1. Cronbach‟s alpha for leadership variables: ................................................................ 49 4.4.1.1. Contingent Reward: ................................................................................................. 49 4.4.1.2. Personal Motivation: ................................................................................................ 49 4.4.1.3. Idealized Influence: .................................................................................................. 50 4.4.1.4. Management by exception: ...................................................................................... 50 4.4.1.5. Laissez-faire: ............................................................................................................ 51 4.4.1.6. Intellectual Stimulation: ........................................................................................... 51 4.4.2. Cronbach‟s alpha for employee commitment variables: ............................................ 52 4.4.2.1. Continuance Commitment: ...................................................................................... 52 4.4.2.2. Affective Commitment: ........................................................................................... 52 4.4.2.3. Normative Commitment: ......................................................................................... 53 4.4.3. 4.5. Restate Research Model: ............................................................................................ 53 Regression analysis and Hypothesis testing: ..................................................................... 56 4.5.1. Correlation analysis: ................................................................................................... 56 4.5.2. Regression analysis: ................................................................................................... 58 vi 4.5.3. 4.6. Hypothesis testing: ..................................................................................................... 60 Differences among groups of followers:............................................................................ 63 4.6.1. T-test: .......................................................................................................................... 63 4.6.2. One-way ANOVA: ..................................................................................................... 64 Chapter 5: RESEARCH DISCUSSION AND IMPLICATIONS ................................................ 66 5.1. Effect of personal motivation on continuance and affective commitment: ....................... 66 5.2. Effect of idealized influence on continuance and affective commitment: ......................... 67 5.3. Effect of contingent reward on continuance and affective commitment: .......................... 68 Chapter 6: RESEARCH CONCLUSION AND RECOMMENDATION .................................... 70 6.1. Research Conclusion:......................................................................................................... 70 6.2. Recommendation: .............................................................................................................. 70 6.2.1. Personal motivation: ................................................................................................... 70 6.2.2. Idealized influence:..................................................................................................... 71 6.2.3. Contingent reward: ..................................................................................................... 72 6.3. Limitation and suggestion: ................................................................................................. 72 REFERENCES ............................................................................................................................. 74 APPENDIX ................................................................................................................................... 82 Appendix 1: Structured interview ............................................................................................. 82 Appendix 2: Survey Questionnaire: .......................................................................................... 84 Appendix 3: Survey questionnaire (Vietnamese version) ........................................................ 87 Appendix 4: Descriptive Statistics ............................................................................................ 90 Appendix 5: Result of exploratory factor analysis ................................................................... 92 Appendix 6: Result of reliability test ...................................................................................... 100 vii LIST OF TABLES Table 1: Comparison between Leaders and Managers ................................................................... 6 Table 2: Studies of leadership traits and characteristic ................................................................... 9 Table 3: Summary of the development of Full Range Leadership Theory................................... 18 Table 4: Measurement for leadership variable.............................................................................. 35 Table 5 Measurement for employee commitment variable .......................................................... 37 Table 6: Summary of coding variables ......................................................................................... 39 Table 7: Summary of demographic data ....................................................................................... 42 Table 8: Rotated Component Matrix ............................................................................................ 43 Table 9: KMO and Bartlett's Test ................................................................................................. 44 Table 10: KMO and Bartlett's Test ............................................................................................... 44 Table 11: Total Variance Explained ............................................................................................. 45 Table 12: Rotated Component Matrix .......................................................................................... 46 Table 13: Summary of renaming factors after EFA...................................................................... 47 Table 14: Reliability coefficient of contingent reward measurement scale .................................. 49 Table 15: Reliability coefficient of personal motivation measurement scale ............................... 49 Table 16: Reliability coefficient of idealized influence measurement scale ................................ 50 Table 17: Reliability coefficient of management by exception measurement scale ..................... 50 Table 18: Reliability coefficient of laissez-faire measurement scale ........................................... 51 Table 19: Reliability coefficient of intellectual stimulation measurement scale .......................... 51 Table 20: Reliability coefficient of continuance commitment measurement scale ...................... 52 Table 21: Reliability coefficient of affective commitment measurement scale ........................... 52 Table 22: Reliability coefficient of normative commitment measurement scale ......................... 53 Table 23: Summary of revised research model............................................................................. 54 Table 24: Pearson's Rotated factor loading................................................................................... 57 Table 25: Regression – Coefficients of continuance commitment ............................................... 58 Table 26: Regression – Coefficients of affective commitment .................................................... 58 Table 27: Regression analysis at second round ............................................................................ 59 Table 28: Regression – coefficient of dependent variables .......................................................... 59 Table 29: Summary result of hypotheses test ............................................................................... 62 viii Table 30: Group statistic on Gender ............................................................................................. 63 Table 31: Result of independent sample test ................................................................................ 64 Table 32: Test of Homogeneity of Variances ............................................................................... 64 Table 33: Result of ANOVA test .................................................................................................. 65 ix LIST OF FIGURES Figure 1: The basic leadership approaches ................................................................................... 14 Figure 2: A Model of the Full Range Leadership Development Theory ...................................... 16 Figure 3: Conceptual framework .................................................................................................. 25 Figure 4: Research process ........................................................................................................... 29 Figure 5: Restated Research Model .............................................................................................. 54 Figure 6: Resulted model .............................................................................................................. 63 x ABSTRACT This research investigates the relationship between leadership styles and different types of employee commitment in FPT Distribution Company. The literature provided discusses the leadership and employee commitment. Information was gathered, using two instruments, from a sample of 210 raters. The Multifactor Leadership Questionnaire, which was formulated from Bass and Avolio‟s (1997) Full Range Leadership Development Theory, was used to determine leadership style within the organisation. Employee commitment was captured using Meyer and Allen‟s (1997) Organisational Commitment including Three-Component Model of employee commitment. Leadership was identified as the independent variable and organisational commitment as the dependent variable. Data obtained from each of the research instruments was then statistically processed in data analysis in order to refine and operationalize the conceptual model and to investigate the relative effects of the various factors. Result of data processing indicated that there are three factors affect employees‟ continuance and affective commitment such as personal motivation, idealized influence and contingent reward. In which personal motivation and contingent reward is the key factor and idealized influence is an important factor have an impact on employee commitment. The analysis emphasizes the importance of increasing level of employee commitment to the organization by increasing rewards, often reviewing salaries or building mutual trust between leaders and subordinates. Keywords: employee commitment, leadership xi xii Chapter 1: INTRODUCTION 1.1. Research background: The increase of organization‟s day by day changes is becoming a major component of everyday organizational functioning. These changes require most companies to supply the best and highest quality of products and services. Therefore, employee commitment is extremely crucial in order to remain competitive of these pressures. It can be said that the success of an enterprise depends on many determinants ranging from internal to external. Along with capital and resources, workforce is also the company‟s greatest assets. People are becoming a source of competitive advantage for most organizations (Ulrich, 2000). Ulrich (2002) has argued in his work that the competitive edge of companies no longer lies in its products, but in its people. People are seen to be the lifeblood of organizations and they represent the most valuable resources of organizations. It is undeniable that no organization can perform at top levels unless each employee is committed to the organization‟s objectives and works effectively. However, recruiting the right employees is not as difficult as making them devoted for the organization. It is obviously affected by so many different reasons. The objective of the organization is not only to acquire workforce but also look for an efficient and effective labor force. Leadership is essentially the core and spirit of organizations which helps to maximize efficiency and to achieve organizational targeted goals. According to Bass & Avolio (1993), leadership styles are behaviors or processes that leaders conduct or participate in that enable extraordinary things to be done in or by the organization. Leaders set a direction for the rest, they help subordinates recognize what lies ahead; and visualize which achievement that can be obtained; they also encourage and inspire their staff to work to their utmost. Effective leadership helps company get through peril times and make the business run smoothly and successfully. It is sure that without leadership, organization will move slowly, stagnate, and lose its initial way and subordinates will quickly degenerate into argument and conflict. Much of the literature about organizations stresses decision-making and implies that if decision-making is timely, complete, and correct, then things will go well. Yet a decision by itself changes nothing. 1 Hughes (2005) had proved that the success of any organization is dependent upon the collection of individuals, including leaders and subordinates, and the amount of effort each individual puts into it. Many previous researchers recognize that employee commitment (Meyer et al., 2004; Allen & Myer, 1990) and leadership styles (Bass, 1997; Bass et al., 2003) are of major factors to the organizational success or failure. If leaders ensure that employees will have an opportunity to be appreciated and recognized for their individual attempt, they will be ready to make profit and contribute to the company‟s success. Allen & Myer (1990) also suggest that the continued interest is a result of the belief that if properly managed, employee commitment can lead to benefits such as leadership effectiveness, improved employee performance, reduced turnover and absenteeism. 1.2. FPT Distribution Company introduction: FPT Distribution Company (FDC) is one of seven affiliate companies of FPT Corporation, Vietnam‟s largest informatics organization. It was officially established on April 13th, 2003 whose headquarter was located in Ha Noi and other branches was in Ho Chi Minh City, Da Nang and Can Tho Province. FDC is always proud to have the country‟s largest distribution network, with agents nationwide, and enjoys an annual average growth rate of approximately 32 percent. FDC has been the leader in both information technology and telecommunication market in Vietnam. Currently, FDC is valuable partners with more than 60 leading IT companies from around the world namely IBM, Microsoft, HP, Nokia, Toshiba, Oracle, Samsung, Computer Associates, Apple, Intel, Symantec, NEC, etc. It is highly appreciated by consumers as well as partners simply because FDC brings customers the latest IT products together with various types and perfect quality. With its existing strengths and customer-oriented principles, FDC commits to continue bringing its customers the added value, maintaining trust and credibility with partners, developing in domestic market and expanding to foreign countries. In general, the amount of employees in FDC increased slightly, from 553 in 2008 to 571 in 2010 (3.9% in 3 years). However, compared to the number of people who quit job and were hired, this amount was small. In 2008, 26 staff including managers and employees left their 2 position in FDC and this became an alarmed situation when this proportion grew significantly to 45 in 2010. Disloyal employees considerably affect the organizational process since newcomers need at least 2 month probation to catch up with working progress. Also, FDC has some longterm projects in IT distribution which requires the in-charge staff should take care of vendors as well as retailers from the beginning till the end. If a member stops his/her work at the middle of the progress, the project and company‟s turnover will surely influenced. Therefore, in order to maximize profit and decrease all cost of recruitment or canceling project, leaders in FDC recognize to sustain their competent people by building a strong commitment basis among their workforce. Commitment is complex and continuous, thus it requires employers or managers to discover ways of enhancing the work life of their employees. 1.3. Rationales and Problem statement: FDC has well recognized human capital as a competitive advantage. Thus, for FDC‟s vision to become a reality, its leadership relies on employees to execute strategic objectives. The employees‟ knowledge, experience, skills, expertise, the ability to collectively innovate and their decision making processes is the key to the success of FDC. As you know that, most of FDC‟s profit comes from IT projects with big retailers. And a project will surely run well unless sales managers have good relationship as well as enough experience in dealing prices. However, in recent years, FDC may face challenges of losing competent and experienced employees. They tend to move to FDC‟s competitors such as Viettel, Digiworld,… Obviously, turnover among these competent employees results in interruptions in normal operations, loss of efficiency, increased replacement and recruitment cost, project delays, increased customer dissatisfaction, and many other difficulties. Lack of employee commitment threatens the survival of the organization because a loss of a competent employee is a loss of competitive advantage for the organization. The loss of skillful employees in FDC mainly lies in the way of leading the organization. Thus, the ability of FDC‟s leadership to retain competent employees is critical to its success. It is said that committed employees tend to generate high performance business outcomes as measured by increased sales, improved productivity, profitability and enhanced employee 3 retention. Although obtaining experienced employees is hard, keeping them deep-seated in organization is harder. Therefore, this study is considered important to determine the relationship between full-range leadership styles (i.e. transformational, transactional and laissez-faire leadership) and employee commitment (i.e. affective, normative and continuance) in FPT IT Distribution Company – a subsidiary of FPT Corporation. And the purpose of this study is figuring out which factors of leadership in the company can significantly influence employees in FDC and how to improve these factors in order to increase the level of a staff‟s commitment to an enterprise. 1.4. Research objectives: This research is aimed to: - Identify which leadership attributes affect employee commitment of FDC. - Examine their importance towards employee commitment. - Suggest solutions to improve leadership for higher employee commitment to organization. 1.5. Scope of research: This research was done in FPT Distribution Company in Ho Chi Minh City, focusing on follower perspective. 1.6. Significance of research: This dissertation contributes to understanding of emerging leadership styles in FPT Distribution Company and their impacts on commitment. It helps managers to understand the importance of improving the way of leading in order to increase employees‟ long-term commitment. 1.7. Research structure: This thesis comprises 5 chapters as below: 4 - Chapter 1: Introduction This chapter gives a brief introduction about research background, problem should be solved of the company and objectives of research. - Chapter 2: Literature review and research model This chapter introduces conceptual framework about some related concepts and theories of the study, then hypotheses are built based on these basic concepts. - Chapter 3: Methodology This chapter states the method used in research which includes research design and instrument, data collection and sampling and also the way how to analyze data in order to test the measurement and conceptual framework. - Chapter 4: Research results and analysis This chapter presents and discusses the results of the correlation analysis of the research hypothesis and the assessment of the reliability of the research data. - Chapter 5: Research discussion and Implications After presenting the results of the research in the previous chapter, the implications of these results are now discussed in the light of the literature review. - Chapter 6: Research conclusion and Recommendations Research limitations are identified and recommendations of the research are also discussed in this chapter. 5 Chapter 2: LITERATURE REVIEW AND RESEARCH MODEL 2.1. Leadership: 2.1.1. Concepts: 2.1.1.1. Differences between Managers and Leaders: Controversy has arisen over whether leaders are different from managers or they are the same. Actually, both of them are essential for an organization‟s prosperity. While leaders develop the vision, managers carry out the vision. Managers should therefore acknowledge the importance of the leadership component of their work and be developed to become leaders who achieve goals. Leadership is arguably based on purpose, change, and emotions, in contrast, management is based on objectives, stability, and rationality. Below table defines some differences between the two concepts: Leaders Managers Are the heart of an organization Are the brain of an organization Motivate, encourage and work with people Establish systems Create a vision and set a direction, and share Create rules and operational procedures with followers Align people based on their knowledge, Are a task-oriented and often not peopleabilities and personality oriented Ask how and when Ask what and why Take you to a new place Take care of where you are Wonder that if the problem set in a new Think environment might require a different solution that a successful solution management problem can be used again Write business plans, set budgets and monitor Get organizations and people to change progress Do things right Do the right things (Source: Colvard, 2009) Table 1: Comparison between Leaders and Managers 6 to a 2.1.1.2. Some definitions of leadership: There are a number of definitions and views on the nature of leadership in the literature. According to Sorenson (2002), Stogdill‟s Handbook of Leadership, first published in 1974, listed 4,725 studies of leadership and 189 pages of references. Therefore, it is complicated to find a standard definition for leadership. Bass (1985b) also supported this idea by noting that finding one specific definition of leadership is a very complex task as studies on this topic are varied and there is no single generally accepted definition. In the literature, leadership has been identified as an important subject in the field of organizational behavior. Generally speaking, leadership involves influencing other individuals to act towards the achievement of a goal. Some definitions describe leadership as an act of influence, some as a process and yet others have looked at a person‟s trait qualities (Lussier and Achua, 2001). Various authors regard leadership as the behaviour of an individual when directing the activities of a group toward a shared goal. John Martin (2005) defined “leadership reflects the ability of one person to direct and control the activities of others, albeit from a slightly different perspective than that of management. It still reflects the process of influence and therefore the exercise of power”. Lee and Chuang (2009) also explained that the excellent leader not only inspires subordinate‟s potential to enhance efficiency but also meets their requirements in the process of achieving organizational goals. Fry (2003) explained leadership as use of leading strategy to offer inspiring motive and to enhance the staff‟s potential for growth and development. Some authors define leadership as a process whereby an individual influences a group of individuals to achieve a common target. Vecchio (1997) describes leadership as a process through which leaders influence the attitudes, behaviors and values of others towards organizational goals. This was supported by Jacques and Clement (1994) who defined leadership as a process in which one person sets the purpose or direction for others and gets them to move along together with him/her in that direction with competence and commitment. Other researches defined leadership as the process of moving a group (or groups) in the same direction through mostly non-coercive means. This definition is consistent with some researchers such as Bass (1990a) and Yammarino (1997). Bass has been in the forefront of 7 approaching leadership in terms of styles. He has described three well-known styles of leadership: laissez-faire, transactional, and transformational leadership. Transformational leaders encourage subordinates to adopt the organizational vision as their own, through inspiration, thus adopting a long-term perspective and focus on future needs (Bass, 1990b). Transformational leaders tend to have a holistic perspective of organizational factors. Transactional leaders, on the other hand, identify and clarify job tasks for their subordinates and communicate how successful execution of those tasks will lead to receipt of desirable job rewards (Bass, 1990b). According to Avolio et al. (1991), a transactional leader determines and defines goals for their subordinates and suggests how to execute tasks. They provide feedback and rewards on completed tasks. These leaders motivate subordinates to achieve expected levels of performance by helping them to recognise task responsibilities, identify goals and develop confidence about meeting desired performance levels. They also make subordinates understand how their needs and the rewards they desire are linked to goal achievement. Laissez-faire leaders abandon their responsibility, leave their subordinates to work relatively on their own and avoid making decisions (Bass, 1990b). 2.1.2. Traditional leadership theories: 2.1.2.1. Trait Theory: Early studies analysed leadership based on hereditary attributes and compared traits of leaders with those of followers. Trait approach emphasizes attributes of leaders such as personality, motives, values and skills. By identifying specific traits or characteristics of leaders, one could distinguish a leader from a follower (Hughes, 2005, p.25) Research concerning trait theory concentrated on the following factors: (a) physical factors such as age, height, weight, physique, health and appearance; (b) ability factors such as fluency of speech, tone of voice, academic performance, intelligence, judgment and decision, insight and initiative; and (c) personality features such as integrity, emotional control, self-confidence and popularity (Bass, 1990a). According to this theory, an individual must possess these traits or characteristics in order to assume leadership. 8 Seeking to ascertain if trait theory accurately predicted leadership potential, Mann had reviewed trait studies, and reported that the foundation of trait theory lacked validity. Hence, Stogdill (1974) completed a second review of trait leadership research which identified factors associated with energy, age, status, mobility, education and intelligence as being able to separate effective leaders from ineffective leaders. However, Stogdill (1974) surmised that trait theory research produced confusing results because a combination of traits proved effective in some groups of leaders, while they were ineffective in others. Therefore, Stogdill concluded that leadership requires more than just the study of people, but also the study of situations (Hughes, 2005, p26). Stogdill (1948) Mann (1959) Stogdill (1974) Lord et al.(1986) Kirkpatrick and Locke (1991) Intelligence Intelligence Achievement Intelligence Drive Alertness Masculinity Persistence Masculinity Motivation Responsibility Adjustment Insight Dominance Integrity Initiative Dominance Initiative Confidence Persistence Extroversion Self-confidence Cognitive ability Self-confidence Conservatism Responsibility Task knowledge Socialbility Cooperativeness Tolerance Influence Sociability Table 2: Studies of leadership traits and characteristics (Northouse, 2001) 2.1.2.2. Behavioural Theory: Failure of the trait theory led to further research that focused on behavioural styles of leadership. Behavioural leadership proposed that behaviour of the leader impacted work and follower effectiveness. This era of research focused on leadership behaviour as a mean of identifying the best way to lead. Under this approach, many studies were carried out to support this theory, majorly: McGregor‟s Theory X and Theory Y (1960), the Ohio State and University 9 of Michigan Models (in Hellriegel et al., 2004) and the Managerial Grid Model of Blake and Mouton (1964). McGregor‟s (1960) Theory X and Theory Y model proposed two distinct theories of leadership behaviours: one negative labelled theory X and the other positive labeled theory Y. His theories contend that leadership behaviours are based on an assumption about employees. His Theory X assumption includes the belief that employees dislike work and will avoid it if possible. According to McGregor (1960), here managerial behaviours include coercing employees, controlling their tasks and activities, and directing their behaviours. McGregor‟s (1960) Theory Y assumption includes the belief that employees can view work as a positive experience given the right conditions. Here, managerial behaviours include providing encouragement, positive reinforcement and rewards. The Ohio State studies were viewed as influential because the research focused on activities of leaders, instead of traits (Bryman, 1986). Through this research, the Leadership Behaviour Description Questionnaire was developed. Results of the Ohio State studies indicated two major dimensions of leadership behaviour, labelled “consideration” and “initiating structure”. Consideration reflects the extent to which the leader establishes trust, mutual respect and rapport with the group. This dimension is associated with two-way communication, participation and the human relations approach to leadership. Initiating structure reflects the extent to which the leader defines and consolidates group interactions toward attainment of formal goals and organizes group activities. This dimension is associated with efforts to achieve organizational goals. Leadership research during the 1940s conducted at the University of Michigan compared the behaviour of effective leaders with ineffective leaders. These studies resulted in the development of two type of leadership behaviour (Bryman, 1986). Employee-centered leaders focus on the individual needs of followers, while job-centered leaders direct activities toward efficiency by focusing on reaching task goals and facilitating the structure of tasks. Although the employee-centred and job-centred styles of leadership correspond to the Ohio State studies concepts of consideration and initiating structure, the Michigan studies concluded that leaders used one type of leadership and did not change styles depending on employee competency. 10 One popularized outgrowth of the emphasis on leader behaviour aimed at both task and people issues is the Managerial Grid, developed by Robert Blake and Jane Mouton (Blake & Mouton, 1985, p.10-11). The foundation of the theory is the contrast between two approaches to the managerial role: (a) concern for production and (b) concern for people (Bryman, 1986). Blake and Mouton believed that both concerns are essential ingredients of effective management and each is conceptualized as a nine-point scale, thus producing eighty-one possible combinations of managerial behaviour. They later added flexibility as a third variable. According to Blake et al. (1964), leaders can only exhibit behaviours that fall into two primary categories (task-oriented or people-oriented). Depending on which category is most frequently shown, a leader could be placed along each of the two categories. The behavioural approach looks at what effective and ineffective leaders actually do; how they delegate tasks to subordinates, where and when they communicate to others and how they perform their roles. Behavioural models made a great contribution to the understandings of leadership, as the focus shifted from who leaders are (traits) to what leaders do (behaviours). However, leadership behaviours that are appropriate in one situation aren‟t necessarily appropriate in another. Because the behavioural models failed to uncover a leadership style that were consistently appropriate to all situations, other leadership models were devised (Hellriegel, et al., 2004). 2.1.2.3. Contingency Theory: Contingency theories tried to predict which types of leadership style will be most effective in different types of situations. Contingency approaches hypothesize that there are no universally acceptable styles of leadership. A particular leadership style may prove valid in one situation, yet ineffective in another. Many studies have attempted to isolate critical situational factors that affect leadership effectiveness including the degree of structure in the task being performed, the quality of leader-member relations, the leader‟s position power, subordinate‟s role clarity, group norms, information availability, subordinate acceptance of leaders‟ decisions, and subordinate maturity (Howell et al., 1986, p.88-102) The models of contingency theory discussed include Leadership Continuum of Tannenbaum and Schidt, Fiedler‟s Contingency Model, House and Mitchell‟s path-goal theory, 11 Hersey and Blanchard‟s Situational Leadership theory and Vroom and Yetton‟s Contingency Model. Fiedler‟s (1967) contingency theory posited that effective group performance was dependent upon the appropriate match of the leader‟s personality and the situation. Personality orientation of the leader is centered on a task or interpersonal style. Hellriegel and colleagues (2004) indicated that leadership depends on matching a leader‟s style to a situation‟s demand. Situational factors that influence leader effectiveness included leader-member relations, degree of task structure, and power position of the leader. Leader-member relations referred to the quality of the relationship between the leader and member (Fiedler, 1967). The leader‟s influence over the members was enhanced through a strong relationship. The path-goal theory of leadership (House, 1971) postulated that the eventual performance and satisfaction of group members was highly influenced by the appropriateness of leader behaviours in relation to member‟s needs and desires as well as the characteristics of the task. Therefore, the function of the leader was to provide coaching, guidance and personal support to members if necessary. The path-goal theory proposed that group members preferred a highly structured regime when presented with ambiguous, varied and interdependent tasks. Initiating structure and close supervision from the leader helped clarify the path-goal relationship and increased the coordination, satisfaction and performance of the group members. Hersey and Blanchard‟s (1977) situational leadership theory proposed that leaders should vary their behaviours according to the member‟s maturity and they classified leader behaviours along two dimensions: directive behaviour (similar to initiating structure and production-centred) and supportive behaviour (similar to consideration structure and employee-centred). Directive behaviour, described one-way directional communication from the leader to the member. Supportive behaviour, described bidirectional communication from the leader when providing social-emotional support for the member. Hersey and Blanchard (1977) also claimed that the levels of directive and supportive leader behaviour should be based on the level of readiness of the followers. Member maturity or readiness referred to the ability and willingness of members to take responsibility for directing their own behaviour in relation to a specific task. These behaviours are labeled as delegating, participating, selling, and telling. 12 Vroom and Yetton (1973) focused their research on decision-making rather than styles of leadership. This model seeks to enhance the decision-making ability of the leader and the follower‟s acceptance of those decisions. It was complex decision tree incorporating seven contingencies whose relevance could be identified by making “Yes” or “No” choices (Robbins, 1997). Vroom and Yetton‟s model was normative, it provided a sequential set of rules that should be followed for determining the form and amount of participation desirable in decision making, as dictated by different types of situations (Robbins, 1997). The model presents three basic styles: autocrative (where the leader unilaterally makes decisions), consultative (where the leader solicits member inputs before deciding) and group (where the leader collaborates with members to arrive at a joint decision). The weakness of the contingency approach is that it failed to provide some universal principles of leadership (Bass, 1990a). Yukl (2002) also stated that although situational leadership theories provide insights into reasons for effective leadership, conceptual weaknesses limit the approach‟s usefulness. Thus, it is difficult to derive specific testable propositions from the approach, with the approach not permitting strong inferences about the direction of causality. 13 Figure 1: The basic leadership approaches Note: Adapted from Amos and Ristow (1999). Small Business Management Series Human Resources Management, pp134. 2.1.3. Full-range leadership theories: In the past, there are many approaches to leadership theory. According to Yukl (2005), numerous studies on the theory of leadership can be summarized into five broad theories, namely, trait, behavioral, contingency or situational approach, contemporary integrative approach, and power and influence approach. Although previous studies about these leadership 14 theories have different approaches, they all state that each leadership has their own distinct style and it is totally different with others. However, this judgment seems unilateral since a leader may employ different styles at different times actually. Therefore, the results and suggestions of these researches cannot be applied in reality any more. This study applies the “full-range leadership theory” as conceptualized by Bass (1985) and developed by Avolio and Bass (1991). The fullrange leadership theory model describes a full range of influencing styles from „non-leadership‟ to powerful transformational leadership behaviors. The model captures different kinds of behaviors which make a difference to outcomes for associates of the leader. In other words, the range of behaviors starts with transformational leader behaviors to transactional leader behaviors reaching to the lowest leader interaction of laissez-faire leader behaviors (MLQ, undated; Bass et al., 2003). Bass (1985) argued that existing theories of leadership primarily focused on follower goal and role clarification and the ways leaders rewarded or sanctioned follower behavior. This transactional leadership was limited to inducing only basic exchanges with followers. Bass suggested that a paradigm shift was required to understand how leaders influence followers to transcend self-interest for the greater good of their units and organizations in order to achieve optimal levels of performance. He referred to this type of leadership as transformational leadership. Bass‟s original theory included four transformational and two transactional leadership factors. Bass and his colleagues (Avolio & Bass, 1991; Avolio et al., 1991) further expanded the theory based on the results of studies completed between 1985 and 1990. In its current form, the Full Range Leadership theory represents nine single-order factors including five transformational leadership factors, three transactional leadership factors, and one nontransactional laissez-faire leadership. These leadership styles have been described to have a direct effect on individual and organisational level outcomes (Bass, 1990a). Bass (1985a) based his descriptions of transformational and transactional leaders on Burns‟s (1978) original ideas. Burns proposed that one could differentiate ordinary from extraordinary leadership. He described transactional leaders as those leaders who influence compliance by expected rewards. Transactional leadership is an exchange relationship that involves the reward of effort, productivity and loyalty. Transformational leaders emphasize higher motive development and arouse followers‟ motivation and positive emotions by means of 15 creating and representing an inspiring vision of the future (Bass, 1997). Transformational leaders are those who motivate their followers to perform beyond expectation by raising the follower‟s confidence levels and providing support for developing to higher levels. Followers feel a greater degree of respect and trust for the leaders who spiritually encourage them to achieve their working target. The main idea of this theory is that followers are more motivated to enhance their performance by transformational leadership rather than transactional leadership (Bass & Avolio, 1990b). The work of Bass and colleagues (Bass, 1990a) expanded Burns‟s factors of leadership to include a third leadership style called laissez-faire leadership style. Bass (1990a) described the laissez-faire leader as an extremely passive leader who is reluctant to influence subordinates considerable freedom, to the point of abdicating his/her responsibilities. In a sense, this extremely passive type of leadership indicates the absence of leadership. Figure 2: A Model of the Full Range Leadership Development Theory (Bass and Avolio, 1994: 5) Avolio and Bass (1991) classify leadership into three major types of behaviour: laissezfaire (non-leadership), transactional, and transformational leadership. Bass (1990), proposed four 16 behaviours of transformational leadership including charisma, inspirational motivation, intellectual stimulation, and individual consideration. Idealized influence attributes or behaviors, or Charisma is characterized by vision and a sense of mission, instilling pride in and among the group, and gaining respect and trust (Humphreys & Einstein, 2003). Charismatic behaviour also induces followers to go beyond selfinterest for the good of the group, providing reassurance that obstacles will be overcome, and promoting confidence in the achievement and execution influence (Howell and Frost, 1989) and followers place an inordinate amount of confidence and trust in charismatic leaders (Howell and Avolio, 1992). Idealized influence (attributes) refers to the socialized charisma of the leader, whether the leader is perceived as being confident and powerful, and whether the leader is viewed as focusing on higher-order ideals and ethics; while idealized influence (behaviors) refers to charismatic actions of the leader that are centered on values, beliefs, and a sense of mission. Turning to inspirational motivation, Bass (1985) pointed out that followers look up to their inspirational leader as one providing emotional appeal to increase awareness and understanding of mutually desirable goals. This characteristic was formed by the communication of high expectations, using symbols to focus efforts, and expressing important purpose in simple ways. The leaders always talk optimistic things about the future, articulate a compelling vision for the future and provide an exciting image of organizational change (Bass and Avolio, 1994). The leaders encourage followers to envision attractive future states, for the organization and themselves (Bass et al, 1997). Intellectual stimulation provides followers with challenging new ideas and encourages them to break away from the old ways of thinking (Bass, 1985). The leader is recognized as one who promotes intelligence, rationality, logical thinking, and careful problem solving. The attributes include seeking differing perspectives when solving problems, suggesting new ways of examining how to complete assignments and encouraging re-thinking of ideas that have not been questioned in the past (Bass and Avolio, 1994). Finally, the fourth dimension of transformational leadership is individual consideration which is concerned with developing followers by coaching and mentoring (Bass, 1985; Bass & Avolio, 1991). The leader pays close attention to the inter-individual differences among the 17 followers and act as mentor to the follower. He teaches and helps others develop their strengths, and listens attentively to other‟ concerns (Bass and Avolio, 1994). Followers are treated individually in order to raise their levels of maturity and to enhance effective ways of addressing their goals and challenges (Bass, 1985). Bass and Avolio (1997) described transactional leadership in terms of two characteristics: the use of contingent rewards and management by exception. Contingent reward is described as the reward that the leader will bestow on the subordinate once the latter has achieved goals that were agreed to. It is therefore the exchange of rewards for meeting agreed-on objectives. By making and fulfilling promises of recognition, paying increases and advancement for employees who perform well, the transactional leader is able to get things done. Transactional leaders may also rely on active management by exception which occurs when the leader monitors followers to ensure mistakes are not made, but otherwise, allows the status quo to exist without being addressed (Bass & Avolio, 1995). In passive management by exception, the leader intervenes only when things go wrong. Both the transformational and transactional leadership are found to be contrasted with the third style of leadership, called laissez-faire leadership (Bass, 1990 as cited in Bučiūnienė & Škudienė, 2008). James & Collins (2008) described the laissez-faire leader as an extreme passive leader who is reluctant to influence subordinates‟ considerable freedom, to the point of handing over his/her responsibilities. In a sense, this extremely passive type of leadership indicates the absence of leadership. Bass (1990a) concludes that there is a negative association between laissez-faire leadership and a variety of subordinate performance, effort and attitudinal indicators. This implies that laissez-faire leadership is always an inappropriate way to lead. Leadership theories Trait Theories Behavioural Theories Features Limitation Focused on leaders‟ physical ability Lacks validity, leaders without and personality; leaders are borne. traits ruled and vice versa; difficult to list endless traits. Contended that behaviours of the Absence of interaction with leaders affect work and followers‟ situations; not explain why effectiveness. leaders fail. 18 This is a refinement of the situational Not explain the interpersonal viewpoint and focuses on behavior or the different effect on identifying the situational variables members of the group; it is not which best predict the most practicable to allow the situation appropriate or effective leadership continually determine who leads. style to fit the particular circumstances. Transactional Leadership is a social exchange, Emphasized on rewarding system, Theory where leaders guide or motivate their positive or negative. The effect on followers in the direction of followers is short. established goals by clarifying role, task requirements and rewarding system. Transformational Leaders motivate followers into a Lacked the overall view of Theory common vision that identifies high leaders‟ behaviours; other styles goals for the organization, moves are needed for the prosperity of them gradually from concerns for organizations, and a less level of exchange to achievement and environment consideration than growth. The effects last long. transactional. Full-range Viewed the leadership behavior as a leadership Theory multi-dimensional construct, where leaders may act transformational, transactional and laissez-faire, depending on the interaction among all variables, including leaders, followers, situation, work environment and all related factors. Table 3: Summary of the development of Full Range Leadership Theory (conceptualized by Hassan Othman Saqer, 2009) Contingency Theories 2.2. Employee commitment: 2.2.1. Concepts: Over the past few years, the study of commitment has advanced in many different directions. A variety of disciplines have adopted the topic as a theme in their research and these have offered fresh and significant insights. These recent advances include new approaches to the conceptualisation of employee commitment. Newstrom and Davies (2002) define employee commitment as the degree to which an employee identifies with the organization and wants to continue actively participating in it. Like a strong magnetic force attracting one metallic object to another, it is a measure of the 19 employees‟ willingness to remain with a firm in the future. It often reflects the employees‟ belief in the mission and goals of the firm, willingness to expend effort in their accomplishment, and intentions to continue working there. Commitment is usually stronger among longer-term employees, those who have experienced personal success in the organization, and those working with a committed employee group. Luthans (1995) explains that, as an attitude, organizational commitment is most often defined as: • a strong desire to remain a member of a particular organization; • a willingness to exert high levels of effort on behalf of the organization; and • a definite belief in and acceptance of the values and goals of the organization. In other words, this commitment is an attitude about employees‟ loyalty to their organization and is an ongoing process through which organizational participants express their concern for the organization and its continued success and well-being. The organizational commitment attitude is determined by a number of personal (age, tenure in organization, and dispositions such as positive or negative affectivity, or internal or external control attributions) and organizational (the job design and leadership style of one‟s supervisor) variables. Even nonorganizational factors such as the availability of alternatives, after making the initial choice to join an organization, will affect subsequent commitment. Meyer & Allen (1997) [as cited in Meyer & Becker, 2004] define a committed employee as being one “stays with an organization, attends work regularly, puts in a full day and more, protects corporate assets, and believes in the organizational goals”. This employee positively contributes to the organization because of its commitment to the organization. Organizational commitment is associated with increased satisfaction, performance, and organizational adaptability (Meyer & Becker, 2004), as well as decreased absenteeism and employee turnover (Lo et al., 2010). According to Madigan et al. (1999), committed employees would work diligently, conscientiously, provide value, promote the organization‟s services or products and seek continuous improvement. In exchange, they expect a work environment that fosters growth and 20 empowerment, allows for a better balance of personal and work life, provides the necessary resources to satisfy the needs of customers and provides for their education and training as well as that of their co-workers. Hellriegel (2001) emphasizes that organizational commitment goes beyond loyalty to include an active contribution to accomplishing organizational goals. Organizational commitment represents a broader work attitude than job satisfaction because it applies to the entire organization rather than just to the job. Further, commitment typically is more stable than satisfaction because day-to-day events are less likely to change it. 2.2.2. Components of employee commitment: The most popular multi-dimensional approach to organizational commitment is the conceptualization of Meyer and his colleagues. This theory differs from others in the nature of the psychological state being described. In 1984, Meyer and Allen, based on Becker‟s side-bet theory, introduced the dimension of continuance commitment to the already existing dimension of affective commitment. As a result, organizational commitment was regarded as a bidimensional concept that included an attitudinal aspect as well as a behavioral aspect. In 1991, Allen and Meyer added a third component, that is, normative commitment to their two dimensions of organizational commitment. They proposed that commitment as a psychological attachment may take the following three forms: the affective, continuance and normative forms. Affective commitment refers to an employee's emotional attachment to, involvement in, and identification with the organization and its goals. Affective commitment involves three aspects such as the formation of an emotional attachment to an organization, identification with, and the desire to maintain organizational membership (Allen & Meyer, 1991). Continuance commitment is a commitment situation originating from the needs of employees to stay in the organization considering the costs of leaving. In continuance commitment, the employees consider the disadvantages of leaving the organization and avoid quitting. Continuance commitment also includes factors such as years of employment or benefits that the employee may receive that are unique to the organization (Hunt and Morgan, 1994). 21 The third dimension of employee commitment is normative commitment, which reflects a feeling of obligation to continue employment. Those with high levels of normative commitment stay with an organization because they feel they ought to remain (Allen & Meyer, 1991). Normative commitment can be explained by other commitments such as marriage, family, religion, etc. Therefore, when it comes to one‟s commitment to their place of employment, they often feel like they have a moral obligation to the organization. 2.3. Relationship between leadership and employee commitment: Several studies have reported the relationship between two variables: commitment and leadership style. According to Stum (1999), employee commitment reflects the quality of the leadership in the organization. It is important for the company to know what are the aspects that plays important role or have big impact in boosting the commitment of the employees. Hence, in order to be effective, it is critical for managers to influence their subordinates, peers, and superiors, to assist and support their proposals, plans, and to motivate them to carry out with their decisions. Swanepoel et al. (2000) highlighted that leadership styles that encourage employee commitment is essential in order for an organization to successfully implement business strategies, achieve their goals, gain competitive advantage and optimize human capital. Previous researchers on managerial performance pointed out that an important component of successful management is the ability to influence others. As such, committed employees are more motivated and dedicated towards meeting and achieving organizational goals. Lee (2004) found out that transformational leadership correlates significantly with organizational commitment with samples of research and development professional in Singapore. On the other hand, Hayward et al. (2004) noted that transformational leadership has moderate positive correlation with affective commitment. Other researchers such as Kent and Chelladurai (2001) posited that individualised consideration has positive relationship with both affective commitment and normative commitment. Similarly, positive correlations was found between intellectual stimulation and both affective commitment and normative commitment. Bass and Avolio (1994) revealed that transformational leaders who encourage their followers to think critically and creatively can have an influence on their followers‟ commitment. 22 Transformational leadership helps to increase trust, commitment and team efficacy. Also in this research, Bass and Avolio (1994) further suggest that employees are far more likely to be committed to the organization if they have confidence with their leaders. This is further supported by Walumbwa and Lawler (2003) that transformational leaders can motivate and increase followers‟ motivation and organizational commitment by getting them to solve problems creatively and also understanding their needs. Hence, hypotheses are formulated as follow: H1: Idealized influence is positively related to employee commitment. H2: Inspirational motivation is positively related to employee commitment. H3: Intellectual stimulation is positively related to employee commitment. H4: Individual consideration is positively related to employee commitment. Contrary to transformational leadership, transactional one does not have significant relationship with organizational commitment. Similarly, Hayward et al. (2004) indicated that no correlation was found between transactional leadership and affective, normative and continuance commitment. However, Bass (1985) insisted that rewarding when employees reached targets had a positive and considerable influence on their next attempt and increased their work efficiency. In addition, when subordinates made mistakes, if leaders directed and gave them valuable advises, they would be more confident and dedicated to the organization. This would lead to significant effect on a staff‟s work. Hence, hypotheses are formulated as follow: H5: Contingent reward is positively related to employee commitment. H6: Active management by exception is positively related to employee commitment. H7: Passive management by exception is positively related to employee commitment. Bass et al. (1997) conceptualized a third type of leadership, laissez‐faire leadership, which was hypothesized to occur when there is an absence or avoidance of leadership. In this case the decisions are delayed, and reward for involvement is absent. No attempt is made to motivate the followers, or to recognize and satisfy their needs. The research of Nyengane, M.H. (2007) indicates a weak, but significant and negative correlation between laissez-faire leadership 23 behaviour and affective commitment. The results also suggest that this leadership behaviour will have a negative influence on the affective commitment. Hence, hypothesis is formulated as follow: H8: Laissez-faire leadership is negatively related to employee commitment. Although many previous researchers had various studies about the relationship between leadership style and employee commitment in an organization, there seems so few researches applied in IT distribution company. Also, from the original theory of Bass and Avolio (2000) and Meyer and Allen (1997), some measurements are developed to make the research suitable for FDC‟s reality and shown in research instrument. These characteristics will make my research different and special from other previous studies. 24 2.4. Research model and hypothesis: Based on the literature review, the conceptual framework is developed as follows: Idealized influence H1 (+) Inspirational motivation H2 (+) Intellectual stimulation H3 (+) Employee commitment: H4 (+) Individual consideration - Affective H5 (+) - Continuance Contingent reward H6 (+) - Normative H7 (-) Active management by exception H8 (-) Passive management by exception Laissez-faire leadership Figure 3: Conceptual framework Due to above framework, the hypotheses are formed as follows: H1: Idealized influence is positively related to employee commitment. H2: Inspirational motivation is positively related to employee commitment. H3: Intellectual stimulation is positively related to employee commitment. H4: Individual consideration is positively related to employee commitment. H5: Contingent reward is positively related to employee commitment. H6: Active management by exception is positively related to employee commitment. H7: Passive management by exception is positively related to employee commitment. H8: Laissez-faire leadership is negatively related to employee commitment. 25 Chapter 3: METHODOLOGY 3.1. Research design: As King (1994) cited in his research that an effective research design links abstract and stylized concepts and questions with the empirical world‟s complexities and challenges. A research design must at once be specific and highly flexible. It must be expansive enough to adapt these very complexities while still pointing you towards relevant data. The research design is a comprehensive master plan of the research study to be undertaken, giving a general statement of the methods to be used. The function of a research design is to ensure that requisite data in accordance with the problem at hand is collected accurately and economically. Simply stated, it is the framework, a blueprint for the research study which guides the collection and analysis of data. The research design, depending upon the needs of the researcher may be a very detailed statement or only furnish the minimum information required for planning the research project. According to Babbie and Mouton (2004), there are different types of social research methods that can be identified from the literature, namely exploratory research, descriptive research and explanatory research. Babbie and Mouton (2004) concluded that the aims for social research vary a great deal, ranging from, gaining new sights into the phenomenon; undertaking preliminary investigation before a more structured study of the phenomenon is done; describing central concepts and constructs of a phenomenon; determining priorities for the research and developing new hypotheses about existing phenomena. Since the objective of the research is to explore the relationship between leadership style being practiced within FPT Distribution Company and organizational commitment to the organization, the research design for this study is an exploratory case study that is analysed through mixed method. Quantitative research involves the collection of data so that information can be quantified and subjected to statistical treatment in order to support or refute “alternate knowledge claims” (Creswell, 2003, p. 153). Qualitative research is also described as an unfolding model that occurs in a natural setting that enables the researcher to develop a level of detail from high involvement in the actual experiences (Creswell, 1994). What constitutes qualitative research involves 26 purposeful use for describing, explaining, and interpreting collected data. Leedy and Ormrod (2001) alleged that qualitative research is less structured in description because it formulates and builds new theories. Qualitative research can also be described as an effective model that occurs in a natural setting that enables the researcher to develop a level of detail from being highly involved in the actual experiences (Creswell, 2003). Quantitative research is an inquiry into an identified problem, based on testing a theory, measured with numbers, and analyzed using statistical techniques. The goal of quantitative methods is to determine whether the predictive generalizations of a theory hold true. In contrast to the quantitative approach, qualitative research approaches reality from a constructivist position, which allows for multiple meanings of individual experiences. In this approach a researcher develops a complex, holistic picture, analyses words, reports detailed views of informants, and conducts the study in a natural setting (Creswell, 2007). The goal of qualitative research is to explore and understand a central phenomenon in a qualitative research study (Creswell, 2005). Qualitative research uses a naturalistic approach that seeks to understand phenomena in context-specific settings, such as "real world setting [where] the researcher does not attempt to manipulate the phenomenon of interest" (Patton, 2002). Qualitative research, broadly defined, means "any kind of research that produces findings not arrived at by means of statistical procedures or other means of quantification" (Strauss and Corbin, 1990, p. 17) and instead, the kind of research that produces findings arrived from real-world settings where the "phenomenon of interest unfold naturally" (Patton, 2002). Unlike quantitative researchers who seek causal determination, prediction, and generalization of findings, qualitative researchers seek instead illumination, understanding, and extrapolation to similar situations. Because all methods of data collection have limitations, the use of multiple methods can neutralize or cancel out some of the disadvantages of certain methods. As well, the strengths of each approach can complement each other. Therefore, this study is conducted by using both qualitative and quantitative research called mixed method research. Quantitative is the main method and will be supported by qualitative method. Mixed method research is the type of research in which a researcher or team of researchers combines elements of qualitative and quantitative approaches (e.g., use of qualitative and quantitative viewpoints, data collection, analysis, inference techniques) for the purpose of breadth and depth of understanding and 27 corroboration (Johnson et al,. 2007). Mixed methods in social science research are defined as a technique that “mixes or combines quantitative and qualitative research techniques, methods, approaches, concepts or language into a single study” (Johnson and Onwuegbuzie, 2004:17). Johnson and Onwuegbuzie (2004) hoped that the mixed methods approach to research provided researchers with an alternative to believing that the quantitative and qualitative research approaches are incompatible and, in turn, their associated methods “cannot and should not be mixed” (p. 14). With the mixed methods approach to research, researchers incorporate methods of collecting or analyzing data from the quantitative and qualitative research approaches in a single research study (Creswell, 2003; Johnson & Onwuegbuzie, 2004; Tashakkori & Teddlie, 2003). That is, researchers collect or analyze not only numerical data, which is customary for quantitative research, but also narrative data, which is the norm for qualitative research in order to address the research question(s) defined for a particular research study. The goal for researchers using the mixed methods approach to research is to draw from the strengths and minimize the weaknesses of the quantitative and qualitative research approaches (Johnson & Onwuegbuzie, 2004). 28 3.2. Research process: Define research problem and identify research objectives Give conclusion and recommendations Review related literature Findings Build conceptual framework Test hypothesis Produce draft questionnaires Restate research model Conduct pilot test Analyze data Generate final questionnaire Process data Define samples and sample size Collect data Figure 4: Research process 3.3. Population and Data sampling: Trochin (2000) describes a research population as a group that the researcher wants to generalize to and the sample as the group of people that are selected to be in the study. This was supported by Zikmund (2003) when he defined a sample as a subset, or some part, of a larger population. The definition of the sample is of vital importance as the results of an investigation are not trustworthy more than the quality of the population or representativeness of the sample. The targeted population for this study is all leaders and employees in 12 different departments of FDC in Ho Chi Minh City only. 29 According to the literature when utilizing factor analysis, it is critical that more subjects than variables are sampled for algebraic reasons, and that the ratio of subjects to variables ranges from 2:1 and 100:1 (Costello & Osborne, 2005), with a preference towards larger ratios to improve factor reliability. Costello and Osborne (2005) are of the opinion that a sample subject to item ratio of 2:1 is insufficient, they note that even with large subject to item ratios, for instance 20:1, exploratory factor analysis (EFA) is still prone to error. The variability in the literature suggests there is contention in terms of ideal sample size, and that this is as yet an unsettled dispute. However, the ratio of 5:1 is considered the rule of thumb by contemporary writers (Hair et al., 2010). In factor analysis, a sample size of 100 or greater is advised (Hair et al., 2010). A sample of 100 is sufficiently large enough to produce reliable factors. If less than 100 subjects is used then replication studies are required using other samples for purposes of validity. This study focuses on FDC‟s leaders and employees as the population of interest and the company as the case study organization. It also applies the 5:1 principle (Hair et al., 2010) in determining sample size. The MLQ and OCQ will be given to both leaders and employees in FDC. They have to answer total 41 questions: 31 questions in MLQ and other 10 questions in OCQ. Therefore, in order to collect at least 5 responses per 1 observed variable, the study need to collect at the minimum sample size of 205 responses (n = 41 x 5 = 200). To get this sample size, 250 questionnaires were given to employees. 3.4. Data collection: In order to identify the objective of investigating whether leadership style has any effects on employee commitment to the organization, this study incorporated both primary and secondary sources of data. According to Creswell (2003), it is useful to consider the full range of possibilities for data collection in any study and to organize these approaches by their degree of predetermined nature, their use of closed – ended versus open – ended questioning, and their focus for numeric versus non – numeric data analysis. The following approaches can be used in data collection in mixed 30 research, open – ended questions, closed – ended questions, observation, document data, text and image analysis, interviews, focus groups, archived and research data. 3.4.1. Secondary data: In „„secondary data analysis,‟‟ the individual or group that analyzes the data is not involved in the planning of the experiment or the collection of the data. Such analysis can be done based upon information that is available in the statistical information in the published articles, the data available in the text, tables, graphs, and appendices of the published articles, or upon the original data. These data sets, generally collected by governments, research institutions, and, in some cases, agencies, provide researchers with readily available resources to examine characteristics of populations or particular hypotheses (Vartanian, 2010, p3). Using large secondary data sets provides an alternative to the collection of primary data, often giving the researcher access to more information than would be available in primary data sets. Secondary data can include any data that are examined to answer a research question other than the question(s) for which the data were initially collected. The secondary data of this study is gained from two main sources. Firstly, data was collected from the human resources in order to find out the number of people who quit and were hired in recent years. Then, based on comparing these two proportions, the researcher will give some reasons and link to the research topic. Secondly, data is also compiled from many sources like e-sources, library books, and journals/articles. This data is used to get better insight on the research topic, to establish the viable platform for the theoretical framework constituting the bases of this research, and to design the sample frame and questionnaire for retrieving the primary data. Another advantage of using secondary data is its comparability character. The researcher used it to validate and compare the data get through questionnaire to existing literature and articles. 3.4.2. Primary data: Primary data sets are collected by the researchers who will also examine that data. Researchers collect primary data directly through interviews, questionnaires, focus groups, observation, the examination of primary sources such as writings or speeches, or a variety of 31 other such collection methods (Vartanian, 2010, p3). According to Biggam (2008), primary data is the information that the researcher finds out by him/herself regarding a specific topic. The main advantage with this type of data collection is that it is collected with the research‟s purpose in mind. This means that the information resulting from it is more consistent with the research questions and purpose. The data collected by me is directly linked with this study, thus providing me with important information. As this study is basically empirical in nature, primary data was gathered from academic employees (instructors) and their leaders/supervisors to answer the above questions. Hence, the more emphasize is inclined to the primary data source. Primary data is gathered from interview and survey as below:  In-depth interviews: interview both leaders and staff to identify the factors which are appropriate with company context.  Questionnaire: measure each of the components in full range leadership theory through a survey of total 30 to 40 questions. 3.4.2.1 Preliminary research: a) Interview: Semi structured interviews were conducted to further explore other factors which the close ended questionnaires could not delve into that could influence the employees decision to remain in the organization. Therefore, a draft structured questionnaire was delivered to 15 employees. Based on their feedback, the draft questionnaire would be add or eliminate the factor in order to make it more understandable and suitable for FDC environment. After the interview, based on respondents‟ comments, researcher added some variables which were then tested in the final survey into the questionnaire such as: - In Multifactor Leadership Questionnaire: add “Keep track of all results and mistakes through KPI” to Measurement for Active management by exception. - In Organizational Commitment Questionnaire: add “I would not leave this organization right now because I am familiar with the process here and afraid of challenge of new job” to Measurement for continuance commitment. 32 And add “I would not leave this organization right now because my project has just started” to Measurement for normative commitment. The details of adding new variables are clearly presented in table 3.1 and 3.2. b) Pilot test: Pilot testing involves conducting a preliminary test of data collection tools and procedures to identify and eliminate problems, allowing researcher to make corrective changes or adjustments before actually collecting data from the target population. Pilot testing gives researcher an opportunity to make revisions to instruments and data collection procedures to ensure that appropriate questions are being asked, the right data will be collected, and the data collection methods will work. Researcher delivered draft questionnaire to 10 people and used their feedback to adjust and eliminate question. After pilot test, there are 40 questions left and some questions are adjusted to make questionnaire understandable and easier to answer. 3.4.2.2 Final survey: a) Questionnaire design: Questionnaire was designed in Vietnamese, and divided into three main parts (Appendix): - Part 1: asks participants 5 questions related to basic information such as age, gender, experience, education and position to classify participants. - Part 2: is designed to collect assessments from employees and leaders about leadership styles they receive in FDC. - Part 3: includes questions about respondents‟ commitment. Part 2 and 3 comprises of 40 questions and 10 variables in total. The measurement bases on a 5-point rating scale which corresponding to 1 = strongly disagree, 2 = disagree, 3 = neither agree nor disagree, 4 = agree, 5 = strongly agree. The designed questionnaire is distributed via internal mailing system. This is a nonpersonal technique of data collection due to the fact that the respondents complete the questionnaires without the interviewer being present. Each questionnaire was accompanied by a further covering letter explaining the purpose of the study to the prospective respondent. General 33 instructions on completing the questionnaire and the importance of completing all questions were included. The covering letter also explained why it is important that the potential respondent personally complete the questionnaire. This technique of data collection addressed issues of cost, time and geographical constraints. After each 2 days in one week, there is a reminding email. The respondents are instructed during the administration of the questionnaires by the researcher to mark the most suitable answer. b) Research instruments: This research will be conducted using two separate instruments. Following is an overview of the instrumentation selection process and a discussion of the instruments that will be used as part of this research. Two questionnaires were used to obtain information and identify the leadership styles and employees‟ commitment, that is, the Multifactor Leadership Questionnaire (MLQ) and the Organizational Commitment Questionnaire (OCQ) developed by Bass and Avolio (1997) and Meyer and Allen (1997) respectively. These were used because they have been tested in many different organisational settings and found to be reliable.  Leadership measurement: The instrument for data collection was a version of the most recent Multifactor Leadership Questionnaire (MLQ Form 5x-Short) developed by Bass and Avolio (2000) to measure all eight dimensions of the transformational-transactional or full range leadership model. These eight dimensions are as follows: (a1) Idealized Influence (Attributed) (a2) Idealized Influence (Behavior) (b) Inspirational Motivation (c) Intellectual Stimulation (d) Individual Consideration (e) Contingent Reward (f) Management-by-Exception (Active) (g) Management–by-Exception (Passive) (h) Laissez-faire Leadership. The separation of the Idealized Influence/Charisma dimension into (a1) and (a2) in the MLQ reflects the recommendation by House et al. (1991) that behavioral and attributed Idealized Influence be differentiated on the basis that charisma is demonstrated by leadership behavior and is also a quality attributed to a leader by followers. 34 Measurement for Idealized Influence (Attributed) 1 Leaders talk about their most important values and Bass and Avolio (2000) beliefs 2 Emphasize the importance of having a collective sense Bass and Avolio (2000) of mission 3 Leaders respect people as valuable, unique, imperfect Bass and Avolio (2000) and developing souls Measurement for Idealized Influence (Behavior) 4 Go beyond self-interest for the good of the group Bass and Avolio (2000) 5 Make subordinates feel good to be around employers Bass and Avolio (2000) 6 Leaders instill pride in others for being associated with Bass and Avolio (2000) them Measurement for Inspirational Motivation 7 Talk optimistically about the future Bass and Avolio (2000) 8 Help others see their purpose of working Bass and Avolio (2000) 9 Express with a few simple words what others could and Bass and Avolio (2000) should do 10 Provide attractive images about what others can do Bass and Avolio (2000) Measurement for Intellectual Stimulation 11 Suggests new ways of looking at how to complete Bass and Avolio (2000) assignments 12 Seeks differing perspectives when solving problems Bass and Avolio (2000) 13 Rethink ideas that they had never questioned before Bass and Avolio (2000) Measurement for Individual Consideration 14 Give personal attention to others who seem rejected. Bass and Avolio (2000) 15 Let others know how I think they are doing Bass and Avolio (2000) 16 Help others to develop my strengths Bass and Avolio (2000) 17 Treat others as an individual rather than just as a Bass and Avolio (2000) member of a group Measurement for Contingent Reward 35 18 Tell others what to do if they want to be rewarded for Bass and Avolio (2000) their work 19 Provide recognition/rewards when others reach their Bass and Avolio (2000) goals 20 Make other pay attention to what they can get if they Bass and Avolio (2000) accomplish their work Measurement for Active management by exception 21 Focus attention on irregularities, mistakes, exceptions, Bass and Avolio (2000) and deviations from standards. 22 Keep track of all results and mistakes through KPI FDC evaluates performance of the employees through KPI every quarter 23 Direct subordinates‟ attention toward failures to meet Bass and Avolio (2000) standards 24 Tell others the standards they have to know to carry out Bass and Avolio (2000) their work Measurement for Passive management by exception 25 Fail to interfere until problems become serious Bass and Avolio (2000) 26 Wait for things to go wrong before taking action Bass and Avolio (2000) 27 As long as things are working, leaders do not try to Bass and Avolio (2000) change anything. Ask others to do basic things, not encourage them to try to learn more from work Measurement for Laissez-faire Bass and Avolio (2000) 29 Avoid getting involved when important issues arise Bass and Avolio (2000) 30 Avoid making decisions Bass and Avolio (2000) 31 Delay responding to urgent questions Bass and Avolio (2000) 28 Table 4: Measurement for leadership variable  Employee commitment measurement: The Allen & Meyer‟s (1997) OCQ was selected as the measure of employees‟ organizational commitment for this study. This OCQ which is a self-scoring questionnaire 36 consists of three dimensions as “Affective commitment”, “Continuance commitment” and “Normative commitment”. Measurement for affective commitment 1 I feel like part of the family at this organization Meyer and Allen (1997) 2 I feel emotionally attached to this organization Meyer and Allen (1997) 3 This department has a great deal of personal meaning Meyer and Allen (1997) for me Measurement for continuance commitment 4 Too much of my life would be disrupted if I decided Meyer and Allen (1997) that I wanted to leave this organization now. 5 I feel that I have very few options to consider leaving Meyer and Allen (1997) this organization 6 It would be very costly for me to leave this Meyer and Allen (1997) organization right now. 7 I would not leave this organization right now because I FDC has a close and standard am familiar with the process here and afraid of process, and when people get challenge of new job. used to the process here, they will be more passive and be lazy to change work. Measurement for normative commitment 8 I would not leave this organization right now because FDC has many long-term my project has just started. projects, if employees stop in the middle of project, they will receive nothing. 9 I would feel guilty if I left my organization now Meyer and Allen (1997) 10 This organization deserves my loyalty Meyer and Allen (1997) Table 5: Measurement for employee commitment variable 37 3.5. Data analysis: 3.5.1. Coding data: Once the questionnaires had been completed, the responses in each question were then coded. These scores were captured in a Microsoft Excel spreadsheet for statistical analysis with respect to Demographic, Leadership and Employee Commitment variables. In section related to demographic, there are five items: age, gender, working experience, education and working position.  Age: an ordinal variable ranges as following: - Under 25 years old: coding = 1 - 25 – 30 years old: coding = 2 - Over 30 years old: coding = 3  Gender: a nominal variable ranges as following: - Male: coding = 1 - Female: coding = 2  Working experience: an ordinal variable ranges as following: - Less than 1 to 2 years: coding = 1 - Less than 3 to 5 years: coding = 2 - More than 5 years: coding = 3  Education: an ordinal variable ranges as following: - Bachelor: coding = 1 - Master: coding = 2 - Others: coding = 3  Working position: an ordinal variable ranges as following: - Employee: coding = 1 - Manager: coding = 2 - Director: coding = 3 The responses in the two remaining sections used 5-point Likert scale from Strongly Disagree to Strongly Agree and were coded as following: - Strongly Disagree: coding = 1 38 - Disagree: coding = 2 - Neither Agree Nor Disagree: coding = 3 - Agree: coding = 4 - Strongly Agree: coding = 5 The details of subscales were coded as shown in below table: CONCEPT CONSTRUCT Gender, CODING OF OBSERVABLE VARIABLES Demographic Age, Working DEMOGR01, DEMOGR02, DEMOGR03, (Control Factors) Experience, DEMOGR04, DEMOGR05 Idealized Influence IDEALI01, IDEALI02, IDEALI03, IDEALI04, IDEALI05, IDEALI06 Leadership (Independent Factors) Inspirational motivation INSPIR07, INSPIR08, INSPIR09 Intellectual stimulation INTELL10, INTELL11, INTELL12 Individual consideration INDIVI13, INDIVI14, INDIVI15, INDIVI16 Contingent reward CONTIG17, CONTIG18, CONTIG19 Management by exception MANAGE20, MANAGE21, MANAGE22, MANAGE23, MANAGE24, MANAGE25, MANAGE26, MANAGE27 Laissez-faire LAISSE28, LAISSE29, LAISSE30 Employee Affective commitment AFFECT31, AFFECT32, AFFECT33 Commitment Continuance commitment CONTIN34, (Dependent Factors) CONTIN35, CONTIN36, CONTIN37 Normative commitment NORMAT38, NORMAT39, NORMAT40 Table 6: Summary of coding variables 3.5.2. Descriptive statistics: Descriptive statistics are used to describe the basic features of the data in a study. They provide simple summaries about the sample and the measures. Together with simple graphics analysis, they form the basis of virtually every quantitative analysis of data. The common purpose of these techniques is to summarize both variability (that is the spread of the numbers) and the centre of data by using mean and standard deviation, respectively. 39 3.5.3. Reliability and Validity test: Reliability and validity are two key components to be considered when evaluating a particular instrument. Cronbach‟s alpha coefficients were calculated to estimate the reliability of the MLQ and OCQ instruments of this research. Cronbach‟s alpha is a common measure of internal consistency (reliability) of a test or scale. Internal consistency describes the extent to which all the items in a test measure the same concept or construct and hence it is connected to the innerrelatedness of the items within the test (Tavakol et al., 2011). The Cronbach‟s Alpha is interpreted as a coefficient Alpha and its value ranges from 0 to 1. Sekaran (2000) advises that when calculating Cronbach‟s reliability coefficient, reliabilities less than 0.6 are considered poor, reliabilities within 0.7 ranges are considered acceptable and those coefficients over 0.8 are considered good. Exploratory factor analysis is used in order to both examine the structure or relationship between variables and evaluate the construct validity. Exploratory factor analysis is a powerful statistical technique which is used for data reduction and summarization. In EFA, the research can apply Kaisaer-Meyer-Olkin (KMO) to test the correlation matrix of the variables. The KMO index ranges from 0 to 1, with 0.50 considered suitable for factor analysis. All elements on the diagonal of the matrix should be greater than 0.5 if the sample is adequate (Field, 2000). By performing exploratory factor analysis, investigator can decide the number of factors to extract in the model. According to Kaiser, factor which has eigenvalue 30 Gender MALE FEMALE Experience 1 - 2 years 2 - 5 years > 5 years 1 - 2 years Education BACHELOR MASTER Position EMPLOYEE MANAGER Percent Valid Percent Cumulative Percent 12 157 41 5.7 74.8 19.5 5.7 74.8 19.5 5.7 80.5 100.0 116 94 55.2 44.8 55.2 44.8 55.2 100.0 48 124 38 48 22.9 59.0 18.1 22.9 22.9 59.0 18.1 22.9 22.9 81.9 100.0 22.9 208 2 99.0 1.0 99.0 1.0 99.0 100.0 176 29 83.8 13.8 83.8 13.8 83.8 97.6 42 DIRECTOR 5 2.4 2.4 Table 7: Summary of demographic data 100.0 4.3. Results of Validity test: This research chose to apply principal component in EFA step. 4.3.1. Exploratory factor analysis –EFA of independent variables: After 12 rounds of running EFA, the result for independent variables found that initial eight components reduce to six components extracted with eigenvalues greater than 1. Researcher eliminated 11 variables which had factor loading lower than 0.5 such as IDEALI01, IDEALI02, IDEALI05, INSPIR09, INDIVI15, INDIVI16, MANAGE20, MANAGE21, MANAGE22, MANAGE23, MANAGE24. Finally, after making exploratory factor analysis, leadership scale includes 19 observed variables and divided into 6 components. The results are shown as table below: Component 1 2 CONTIG17 .898 CONTIG18 .894 CONTIG19 .893 3 INSPIR08 .805 INDIVI13 .729 INDIVI14 .714 INSPIR07 .666 4 IDEALI06 .794 IDEALI04 .784 IDEALI03 .718 43 5 6 MANAGE26 .812 MANAGE25 .739 MANAGE27 .706 LAISSE30 .805 LAISSE28 .788 LAISSE29 .685 INTELL10 .767 INTELL11 .732 INTELL12 .626 Table 8: Rotated Component Matrix Besides, exploratory factor analysis is adequate with KMO value of 0.717 and Sig. value of .000. In addition, with Cumulative % of Variance of 64.329%, these 6 factors explain 64.329% of leadership variance. Kaiser-Meyer-Olkin Measure of Sampling Adequacy. Approx. Chi-Square Bartlett's Test of Sphericity .717 1181.657 df 171 Sig. .000 Table 9: KMO and Bartlett's Test 4.3.2. Exploratory factor analysis –EFA of dependent variables: Employee commitment scale includes 3 items. In KMO and Bartlett's Test, KMO value measuring the sampling adequacy equals to 0.826 with Sig. is .000. These numbers confirm the validity of data for exploratory factor analysis. Kaiser-Meyer-Olkin Measure of Sampling Adequacy. Approx. Chi-Square 44 .826 658.523 Bartlett's Test of Sphericity df 45 Sig. .000 Table 10: KMO and Bartlett's Test The analysis extracts 3 components which have eigenvalues of 3.906, 1.306, 1.033 respectively (greater than 1). All 3 employee commitment items define these components with factor loadings greater than 0.5 for each item. The cumulative variance is 62.453% which means that these factors explain 62.453% of employee commitment variance. In short, after making exploratory factor analysis, the employee commitment scale includes 10 observed variables, extracted to 3 components. Component Initial Eigenvalues Total % of Variance Extraction Sums of Squared Loadings Cumulative % Total % of Variance Cumulative % 1 3.906 39.061 39.061 3.906 39.061 39.061 2 1.306 13.058 52.119 1.306 13.058 52.119 3 1.033 10.334 62.453 1.033 10.334 62.453 4 .853 8.533 70.986 5 .767 7.668 78.654 6 .583 5.834 84.488 7 .499 4.992 89.480 8 .466 4.657 94.137 9 .302 3.025 97.162 10 .284 2.838 100.000 Table 11: Total Variance Explained 45 Component 1 2 CONTIN36 .851 CONTIN35 .778 CONTIN37 .758 CONTIN34 .616 3 .306 AFFECT32 .836 AFFECT31 .796 AFFECT33 .781 NORMAT38 .522 NORMAT40 .787 NORMAT39 .754 Table 12: Rotated Component Matrix 4.3.3. Rename factors: After exploratory factor analysis, there are 6 factors remaining in leadership scale. Apart from factor 2, the others are kept the original name. Factor 2 namely Personal Motivation is a combination of variables in Individual Consideration (INDIVI13, INDIVI14) and Inspirational Motivation (INSPIR07, INSPIR08). Name of the other factors are unchanged such as Contingent Reward (CONTIG17, CONTIG18, CONTIG19), Idealized Influence (IDEALI03, IDEALI04, IDEALI06), Management by exception (MANAGE25, MANAGE26, MANAGE27), Laissezfaire (LAISSE28, LAISSE29, LAISSE30), Intellectual Stimulation (INTELL10, INTELL11, INTELL12). Turning to employee commitment components, there are 3 factors left. Factor 1 has 3 observed variables of Continuance Commitment (CONTIN34, CONTIN35, CONTIN36, CONTIN37), thus research keeps the name Continuance Commitment. Factor 2 comprises of 3 variables in Affective Commitment (AFFECT31, AFFECT32, AFFECT33) and 1 variable in Normative Commitment (NORMAT38) and researcher keeps the name Affective Commitment 46 for these 4 variables. Therefore, factor 3 only has 2 variables and is named Normative Commitment (NORMAT39, NORMAT40). Resulted factors from Measures EFA (renamed) Coding Independent variables Contingent Reward Leaders tell others what to do if they want to be CONTIG17 rewarded for their work. Leaders provide recognition/rewards when others CONTIG18 reach their goals. Leaders make other pay attention to what they can CONTIG19 get if they accomplish their work. Personal Motivation Leaders give personal attention to others who seem INDIVI13 rejected. Idealized Influence Leaders let others know how I think they are doing. INDIVI14 Leaders talk optimistically about the future. INSPIR07 Leaders help others see their purpose of working. INSPIR08 Leaders respect people as valuable, unique, imperfect IDEALI03 and developing souls. Leaders go beyond self-interest for the good of the IDEALI04 group. Leaders instill pride in others for being associated IDEALI06 with them. Management by Leaders wait for things to go wrong before taking exception MANAGE25 action. As long as things are working, leaders do not try to MANAGE26 change anything. Leaders ask others to do basic things, not encourage MANAGE27 them to try to learn more from work. Intellectual Stimulation Leaders suggest new ways of looking at how to complete assignments. 47 INTELL10 Leaders seek differing perspectives when solving INTELL11 problems. Leaders rethink ideas that they had never questioned INTELL12 before. Laissez-faire Leaders avoid getting involved when important LAISSE28 issues arise, Leaders avoid making decisions. LAISSE29 Leaders delay responding to urgent questions. LAISSE30 I feel like part of the family at this organization. AFFECT31 I feel emotionally attached to this organization. AFFECT32 This department has a great deal of personal meaning AFFECT33 Dependent variables Affective Commitment for me I would not leave this organization right now because NORMAT38 my project has just started. Continuance Too much of my life would be disrupted if I decided Commitment that I wanted to leave this organization now. I feel that I have very few options to consider leaving CONTIN34 CONTIN35 this organization. It would be very costly for me to leave this CONTIN36 organization right now. I would not leave this organization right now because CONTIN37 I am familiar with the process here and afraid of challenge of new job. Normative I would feel guilty if I left my organization now. NORMAT39 This organization deserves my loyalty. NORMAT40 Commitment Table 13: Summary of renaming factors after EFA 48 4.4. Results of Reliability test: 4.4.1. Cronbach’s alpha for leadership variables: 4.4.1.1. Contingent Reward: Cronbach‟s Alpha of measurement is 0.882 (> 0.6). The Corrected Item Total Correlation of 3 variables CONTIG17, CONTIG18, CONTIG19 > 0.3 and Cronbach‟s Alpha if item deleted of CONTIG17, CONTIG18, CONTIG19 < 0.882. Hence, 3 variables are accepted and can use in the next step. Scale Mean if Item Scale Variance if Corrected Item- Cronbach's Alpha Deleted Item Deleted Total Correlation if Item Deleted CONTIG17 8.00 1.713 .764 .838 CONTIG18 8.04 1.553 .770 .837 CONTIG19 8.01 1.746 .785 .823 Cronbach’s Alpha = .882 Table 14: Reliability coefficient of contingent reward measurement scale 4.4.1.2. Personal Motivation: Cronbach‟s Alpha of measurement is 0.764 (> 0.6). The Corrected Item Total Correlation of 4 variables INDIVI13, INDIVI14, INSPIR07, INSPIR08 > 0.3 and Cronbach‟s Alpha if item deleted of INDIVI13, INDIVI14, INSPIR07, INSPIR08 < 0.764. Hence, 4 variables are accepted and can use in the next step. Scale Mean if Scale Variance if Corrected Item- Cronbach's Alpha if Item Deleted Item Deleted Total Correlation Item Deleted INDIVI13 10.08 4.400 .539 .722 INDIVI14 9.95 4.170 .559 .712 INSPIR07 9.83 4.296 .563 .709 INSPIR08 9.84 4.337 .596 .692 49 Cronbach’s Alpha = .764 Table 15: Reliability coefficient of personal motivation measurement scale 4.4.1.3. Idealized Influence: Cronbach‟s Alpha of measurement is 0.742 (> 0.6). The Corrected Item Total Correlation of 3 variables IDEALI03, IDEALI04, IDEALI06 > 0.3 and Cronbach‟s Alpha if item deleted of IDEALI03, IDEALI04, IDEALI06 < 0.742. Hence, 3 variables are accepted and can use in the next step. Scale Mean if Scale Variance if Corrected Item- Cronbach's Alpha Item Deleted Item Deleted Total Correlation if Item Deleted IDEALI03 6.51 1.859 .586 .634 IDEALI04 6.44 2.018 .601 .622 IDEALI06 6.24 1.991 .519 .714 Cronbach’s Alpha = .742 Table 16: Reliability coefficient of idealized influence measurement scale 4.4.1.4. Management by exception: Cronbach‟s Alpha of measurement is 0.685 (> 0.6). The Corrected Item Total Correlation of 3 variables MANAGE25, MANAGE26, MANAGE27 > 0.3 and Cronbach‟s Alpha if item deleted of MANAGE25, MANAGE26, MANAGE27 < 0.685. Hence, 3 variables are accepted and can use in the next step. Scale Mean if Scale Variance if Corrected Item- Cronbach's Alpha Item Deleted Item Deleted Total Correlation if Item Deleted MANAGE25 5.80 2.802 .523 .559 MANAGE26 5.85 2.560 .563 .502 MANAGE27 5.33 3.400 .419 .685 Cronbach’s Alpha = .685 Table 17: Reliability coefficient of management by exception measurement scale 50 4.4.1.5. Laissez-faire: Cronbach‟s Alpha of measurement is 0.666 (> 0.6). The Corrected Item Total Correlation of 3 variables LAISSE28, LAISSE29, LAISSE30 > 0.3 and Cronbach‟s Alpha if item deleted of LAISSE28, LAISSE29, LAISSE30 < 0.666. Hence, 3 variables are accepted and can use in the next step. Scale Mean if Scale Variance if Corrected Item- Cronbach's Alpha Item Deleted Item Deleted Total Correlation if Item Deleted LAISSE28 5.13 1.376 .490 .556 LAISSE29 5.09 1.351 .412 .666 LAISSE30 5.32 1.319 .541 .490 Cronbach’s Alpha = .666 Table 18: Reliability coefficient of laissez-faire measurement scale 4.4.1.6. Intellectual Stimulation: Since Cronbach‟s Alpha of this measurement is 0.514, smaller than 0.6, this factor is eliminated from the model in order to ensure the reliability of the test. Scale Mean if Scale Variance if Corrected Item- Cronbach's Alpha Item Deleted Item Deleted Total Correlation if Item Deleted INTELL10 7.71 .741 .410 .275 INTELL11 6.92 1.252 .400 .356 INTELL12 7.45 1.215 .234 .558 Cronbach’s Alpha = .514 Table 19: Reliability coefficient of intellectual stimulation measurement scale 51 4.4.2. Cronbach’s alpha for employee commitment variables: 4.4.2.1. Continuance Commitment: Cronbach‟s Alpha of measurement is 0.800 (> 0.6). The Corrected Item Total Correlation of 4 variables CONTIN34, CONTIN35, CONTIN36, CONTIN37 > 0.3 and Cronbach‟s Alpha if item deleted of CONTIN34, CONTIN35, CONTIN36, CONTIN37 < 0.800. Hence, 4 variables are accepted and can use in the next step. Scale Mean if Item Scale Variance if Corrected Item- Cronbach's Alpha Deleted Item Deleted Total Correlation if Item Deleted CONTIN34 11.25 4.522 .509 .803 CONTIN35 11.05 4.352 .628 .743 CONTIN36 10.79 4.176 .695 .711 CONTIN37 11.13 4.294 .631 .742 Cronbach’s Alpha = .800 Table 20: Reliability coefficient of continuance commitment measurement scale 4.4.2.2. Affective Commitment: Cronbach‟s Alpha of measurement is 0.774 (> 0.6). The Corrected Item Total Correlation of 4 variables AFFECT31, AFFECT32, AFFECT33, NORMAT38 > 0.3. Hence, 4 variables are accepted and can use in the next step. Scale Mean if Item Scale Variance if Corrected Item- Cronbach's Alpha Deleted Item Deleted Total Correlation if Item Deleted AFFECT31 10.21 4.501 .643 .684 AFFECT32 10.29 4.150 .717 .640 AFFECT33 10.30 4.642 .601 .706 NORMAT38 10.50 5.227 .371 .824 Cronbach’s Alpha = .774 52 Table 21: Reliability coefficient of affective commitment measurement scale 4.4.2.3. Normative Commitment: Since Cronbach‟s Alpha of this measurement is 0.368, smaller than 0.6, this factor is eliminated from the model in order to ensure the reliability of the test. Scale Mean if Item Scale Variance if Corrected Item- Cronbach's Alpha Deleted Item Deleted Total Correlation if Item Deleted NORMAT39 3.44 .296 .229 . NORMAT40 3.13 .428 .229 . Cronbach’s Alpha = .368 Table 22: Reliability coefficient of normative commitment measurement scale In conclusion, through reliability analysis, two factors – Intellectual Stimulation and Normative Commitment – are removed from the empirical model of this research. The initial scale with 29 variables, now, reduces to 24 observed variables (16 variables for leadership scale and 8 variables for employee commitment scale). There are some possible reasons to explain why so many variables are eliminated. Firstly, when translating from English into Vietnamese, the researcher cannot express the exact meaning of the original questionnaire. The second reason comes from the respondents. The context of this research is different from the initial one, therefore, respondents have their own standard to evaluate leadership and their commitment to the organization. Moreover, inconsistency exist among questions in a questionnaire since respondents did not commit to answer, they just ticked the answer by their feelings. 4.4.3. Restate Research Model: Based on the result of Cronbach‟s alpha and Exploratory factor analysis, the research model is adjusted and hypotheses are restated as below: H1a: Contingent reward is positively related to affective commitment. H1b: Contingent reward is positively related to continuance commitment. H2a: Personal motivation is positively related to affective commitment. 53 H2b: Personal motivation is positively related to continuance commitment. H3a: Idealized influence is positively related to affective commitment. H3b: Idealized influence is positively related to continuance commitment. H4a: Management by exception is positively related to affective commitment. H4b: Management by exception is positively related to continuance commitment. H5a: Laissez-faire is negatively related to affective commitment. H5b: Laissez-faire is negatively related to continuance commitment. Contingent Reward H1a Affective Commitment H2a Personal Motivation H3a H4a H5a Idealized Influence H2b H1b H3b Management by exception H4b Continuance Commitment H5b Laissez-faire Figure 5: Restated Research Model Factors Measurement Independent variables 54 Contingent Reward Leaders tell others what to do if they want to be rewarded for their work. Leaders provide recognition/rewards when others reach their goals. Leaders make other pay attention to what they can get if they accomplish their work. Personal Motivation Leaders give personal attention to others who seem rejected. Leaders let others know how I think they are doing. Leaders talk optimistically about the future. Leaders help others see their purpose of working. Idealized Influence Leaders respect people as valuable, unique, imperfect and developing souls. Leaders go beyond self-interest for the good of the group. Leaders instill pride in others for being associated with them. Management by exception Leaders wait for things to go wrong before taking action. As long as things are working, leaders do not try to change anything. Leaders ask others to do basic things, not encourage them to try to learn more from work. Laissez-faire Leaders avoid getting involved when important issues arise, Leaders avoid making decisions. Leaders delay responding to urgent questions. Dependent variables Affective Commitment I feel like part of the family at this organization. I feel emotionally attached to this organization. 55 This department has a great deal of personal meaning for me I would not leave this organization right now because my project has just started. Continuance Commitment Too much of my life would be disrupted if I decided that I wanted to leave this organization now. I feel that I have very few options to consider leaving this organization. It would be very costly for me to leave this organization right now. I would not leave this organization right now because I am familiar with the process here and afraid of challenge of new job. Table 23: Summary of revised research model 4.5. Regression analysis and Hypothesis testing: 4.5.1. Correlation analysis: The results of the correlation analysis were presented below. As can be seen from correlation matrix, the independent variables had correlation with dependent variable. In examining the correlation between independent variables and Continuance Commitment, the Pearson correlations of 5 factors were 0.229, 0.319, 0.270, 0.138 and 0.020. It meant that Contingent Reward, Personal Motivation, Idealized Influence, Management by exception, and Laissez-faire can be used in model to explain for Continuance Commitment. Similarly, Contingent Reward, Personal Motivation, Idealized Influence, Management by exception, and Laissez-faire can be used in model to explain for Continuance Commitment since the Pearson correlations of these 5 factors were 0.285, 0.534, 0.403, 0.258 and 0.106, respectively. 56 Continuance Affective Commitment Commitment .229** .285** .001 .000 .319** .534** .000 .000 .270** .403** Sig. (2-tailed) .000 .000 Pearson Correlation .138* .258** Sig. (2-tailed) .046 .000 Pearson Correlation .020 .106 Sig. (2-tailed) .773 .127 Pearson Correlation Contingent Reward Sig. (2-tailed) Pearson Correlation Personal Motivation Sig. (2-tailed) Pearson Correlation Idealized Influence Management by exception Laissez-faire *. Correlation is significant at the 0.05 level (2-tailed). **. Correlation is significant at the 0.01 level (2-tailed). Pearson Contingent Reward Correlation Contingent Human Idealized Management Reward Motivation Influence by exception 1 Sig. (2-tailed) Pearson Human Motivation Correlation Sig. (2-tailed) Pearson Idealized Influence Correlation Sig. (2-tailed) Management by exception Pearson Correlation Sig. (2-tailed) Pearson Laissez-faire Correlation Sig. (2-tailed) .049 Laissez-faire .049 .030 -.021 -.147* .478 .664 .759 .033 1 .412** .342** .151* .000 .000 .029 1 .352** .026 .000 .710 1 .117 .478 .030 .412** .664 .000 -.021 .342** .352** .759 .000 .000 -.147* .151* .026 .117 .033 .029 .710 .091 57 .091 1 *. Correlation is significant at the 0.05 level (2-tailed). **. Correlation is significant at the 0.01 level (2-tailed). Table 24: Pearson's Rotated factor loading Moreover, since the correlation of independent variables are all small (< 0.8), so the research model is not in a multi-collinearity situation. Then the researcher can continue test the regression. 4.5.2. Regression analysis: According to the results in Coefficients table, 2 factors Management by exception and Laissez-faire have Sig. greater than 0.05. Thus, these two factors do not reliably explain Continuance Commitment and are eliminated from the model. Unstandardized Coefficients Model Standardized Coefficients t Sig. 3.218 .002 B Std. Error Beta (Constant) 1.390 .432 Contingent Reward .229 .069 .214 3.310 .001 Personal Motivation .241 .073 .239 3.282 .001 Idealized Influence .168 .074 .164 2.271 .024 Management by exception .002 .059 .002 .029 .977 Laissez-faire .014 .082 .011 .169 .866 Table 25: Regression – Coefficients of continuance commitment Similarly, 2 factors Management by exception and Laissez-faire had Sig. of 0.492 and 0.189 which were greater than 0.05. Hence, these two factors did not reliably explain Affective Commitment and are eliminated from the model. Unstandardized Coefficients Standardized t Sig. -.556 .579 4.906 .000 Coefficients Model B Std. Error (Constant) -.210 .378 Contingent Reward .298 .061 Beta .270 58 Personal Motivation .425 .064 .409 6.608 .000 Idealized Influence .221 .065 .210 3.408 .001 Management by exception .036 .052 .041 .689 .492 Laissez-faire .095 .072 .074 1.317 .189 Table 26: Regression – Coefficients of affective commitment Then, the regression analysis continues to be conducted at the second time with three factors: Contingent reward, Personal motivation and Idealized influence. Model R R Square Adjusted R Square Std. Error of the Estimate Affective Commitment Continuance Commitment .626a .392 .383 .54335 .412a .170 .158 .61672 a. Predictors: (Constant), Idealized Influence, Contingent Reward, Personal Motivation Table 27: Regression analysis at second round In Table model summary, adjusted R-square value accounts for 0.383 and 0.158. This value indicates that 38.3% of the variance in Affective Commitment and only 15.8% of the variance in Continuance Commitment can be explained by three components, namely Contingent reward, Personal motivation and Idealized influence. Standardized Unstandardized Coefficients B Std. Error (Constant) .091 .320 Contingent Reward .283 .060 Personal Motivation .449 Idealized Influence .228 Collinearity Statistics Coefficients Model t Sig. Beta Tolerance VIF .283 .777 .257 4.726 .000 .997 1.003 .062 .432 7.237 .000 .829 1.207 .063 .217 3.643 .000 .830 1.205 a. Dependent Variable: Affective Commitment Standardized Unstandardized Coefficients Coefficients Model B Std. Error Beta 59 Collinearity Statistics t Sig. Tolerance VIF (Constant) 1.431 .364 3.936 .000 Contingent Reward .227 .068 .212 3.341 .001 .997 1.003 Personal Motivation .244 .070 .241 3.459 .001 .829 1.207 Idealized Influence .168 .071 .164 2.360 .019 .830 1.205 a. Dependent Variable: Continuance Commitment Table 28: Regression – coefficient of dependent variables The results of regression indicate that with Sig. < 0.05, three independent variables (Contingent reward, Personal motivation and Idealized influence) have effect on both Affective and Continuance Commitment. Variance inflation factor (VIF) values of these three components are very small (less than 2). Thus the research model is not in a multi-collinearity situation. 4.5.3. Hypothesis testing: Hypothesis 1a: Contingent reward is positively related to affective commitment. It is clear that there is a weak, but significant, positive relationship between contingent reward and affective commitment (r = 0.285 which is below 0.5 & p-value = 0.000 < 0.05). The researcher accepts hypothesis 1a and concludes that there is sufficient evidence that there is a positive relationship between contingent reward and affective commitment. Hypothesis 1b: Contingent reward is positively related to continuance commitment. It is clear that there is a weak, but significant, positive relationship between contingent reward and continuance commitment (r = 0.229 which is below 0.5 & p-value = 0.001 < 0.05). The researcher accepts hypothesis 1b and concludes that there is sufficient evidence that there is a positive relationship between contingent reward and continuance commitment. Hypothesis 2a: Personal motivation is positively related to affective commitment. It is clear that there is a weak, but significant, positive relationship between personal motivation and affective commitment (r = 0.534 which is below 0.5 & p-value = 0.000 < 0.05). The researcher accepts hypothesis 2a and concludes that there is sufficient evidence that there is a positive relationship between personal motivation and affective commitment. Hypothesis 2b: Personal motivation is positively related to continuance commitment. 60 It is clear that there is a weak, but significant, positive relationship between personal motivation and continuance commitment (r = 0.319 which is below 0.5 & p-value = 0.001 < 0.05). The researcher accepts hypothesis 2b and concludes that there is sufficient evidence that there is a positive relationship between personal motivation and continuance commitment. Hypothesis 3a: Idealized influence is positively related to affective commitment. It is clear that there is a weak, but significant, positive relationship between idealized influence and affective commitment (r = 0.403 which is below 0.5 & p-value = 0.000 < 0.05). The researcher accepts hypothesis 3a and concludes that there is sufficient evidence that there is a positive relationship between idealized influence and affective commitment. Hypothesis 3b: Idealized influence is positively related to continuance commitment. It is clear that there is a weak, but significant, positive relationship between idealized influence and continuance commitment (r = 0.270 which is below 0.5 & p-value = 0.019 < 0.05). The researcher accepts hypothesis 3b and concludes that there is sufficient evidence that there is a positive relationship between idealized influence and continuance commitment. Hypothesis 4a: Management by exception is positively related to affective commitment. Since p-value = 0.492 > 0.05, the researcher rejects hypothesis 4a and concludes that there is sufficient evidence that there is no positive relationship between management by exception and affective commitment. Hypothesis 4b: Management by exception is positively related to continuance commitment. Since p-value = 0.977 > 0.05, the researcher rejects hypothesis 4b and concludes that there is sufficient evidence that there is no positive relationship between management by exception and continuance commitment. Hypothesis 5a: Laissez-faire is positively related to affective commitment. 61 Since p-value = 0.189 > 0.05, the researcher rejects hypothesis 5a and concludes that there is sufficient evidence that there is no positive relationship between laissez-faire and affective commitment. Hypothesis 5b: Laissez-faire is positively related to continuance commitment. Since p-value = 0.866 > 0.05, the researcher rejects hypothesis 5b and concludes that there is sufficient evidence that there is no positive relationship between laissez-faire and continuance commitment. No 1a 1b 2a 2b 3a 3b 4a 4b 5a 5b Hypothesis Contingent reward is positively related to affective commitment Contingent reward is positively related to continuance commitment Personal motivation is positively related to affective commitment Personal motivation is positively related to continuance commitment Idealized influence is positively related to affective commitment Idealized influence is positively related to continuance commitment Management by exception is positively related to affective commitment Management by exception is positively related to continuance commitment Laissez-faire is positively related to affective commitment r Β p-value (sig.) Result 0.285 0.270 0.000 Accept 0.229 0.214 0.001 Accept 0.534 0.409 0.000 Accept 0.319 0.239 0.001 Accept 0.403 0.210 0.000 Accept 0.270 0.164 0.019 Accept 0.258 0.041 0.492 Reject 0.138 0.002 0.977 Reject 0.106 0.074 0.189 Reject 0.866 Reject Laissez-faire is positively related to 0.020 0.011 continuance commitment Table 29: Summary result of hypotheses test 62 Based on the above result table, the research model was restated as below: Contingent Reward Affective Commitment Personal Motivation Continuance Commitment Idealized Influence Figure 6: Resulted model 4.6. Differences among groups of followers: 4.6.1. T-test: Independent samples T-test is used to compare the means of two genders, male and female. Gender Continuance Commitment Affective Commitment N Mean Std. Deviation MALE 116 3.6810 .70139 FEMALE 94 3.6888 .63784 MALE 116 3.4547 .67615 FEMALE 94 3.4255 .71357 Table 30: Group statistic on Gender Std. Error Mean .06512 .06579 .06278 .07360 According to Table , the mean scores for male are marginally higher than those of the female in Affective Commitment and lower in Continuance Commitment. The values of standard deviation show that there is not much difference in variability of the scores of the two samples. Regarding the standard error mean, the table shows that the standard error mean is almost equal for both the male and female responses. 63 Levene's Test for t-test for Equality of Means Equality of Variances F Sig. t df Sig. (2- Mean Std. Error 95% Confidence tailed) Difference Difference Interval of the Difference Lower Upper Equal variances Continuance assumed Commitment Equal 1.969 .162 variances -.083 208 .934 -.00780 .09350 -.19212 .17653 -.084 205.210 .933 -.00780 .09257 -.19030 .17471 .304 208 .762 .02921 .09619 -.16042 .21884 .302 194.357 .763 .02921 .09674 -.16158 .22000 not assumed Equal variances Affective Commitment .087 .769 assumed Equal variances not assumed Table 31: Result of independent sample test As can be seen from Table, there is possibility of equality of variances because sig. in Levene‟s Test of both continuance and affective commitment were greater than 0.05. So the researcher can conclude that there is no significant difference between male and female in both two commitments to the organization as the p-values of these two components are above the significance level of 0.05. 4.6.2. One-way ANOVA: A One-Way Analysis of Variance is a way to test the equality of three or more means at one time by using variances. In this research, one-way ANOVA test is used to find the differences between Age, Experience, Education, Position variable and Continuance/Affective Commitment variables. Levene Statistic Continuance Commitment Affective Commitment Age .770 .544 Experience .710 .719 Education .096 2.375 64 Position 2.367 .089 Table 32: Test of Homogeneity of Variances According to Table, there is possibility of equality of variances because sig. in Levene‟s Test of both continuance and affective commitment were greater than 0.05. Sig. Age Experience Education Position Continuance Commitment .104 .008 .353 .000 Affective Commitment .490 .138 .252 .000 Table 33: Result of ANOVA test Based on above table, the researcher can conclude that differences exist between the responses of position and two factors of commitment (p-value < 0.05). Turning to experience, although differences exist between the responses of experience and continuance commitment, there is no there is no significant difference between the responses of experience and affective commitment. With other demographic data, as the p-values of all dimensions are above the significance level of 0.05, the researcher can jump to the conclusion that there is no significant difference between the responses of both two commitments and age and education. 65 Chapter 5: RESEARCH DISCUSSION AND IMPLICATIONS 5.1. Effect of personal motivation on continuance and affective commitment: As can be seen from the results in section 4, personal motivation which comprises of individual consideration and inspirational motivation has relatively strong but significant, positive correlation with affective commitment (0.534) and a strong but significant, positive relationship with continuance commitment (0.319) whereas no relationship with normative commitment. It can be said that personal motivation is a key factor which seriously affected continuance and affective commitment. This result is also supported by a research done by Lo M.C., Ramayah T., Min H.W. and Songan P. (2010) who found a positive direct relationship between inspirational motivation, and affective and normative commitment. They also found that two dimensions of transformational leadership, namely intellectual stimulation and individualized consideration, were found to have positive relationship with continuance commitment. As stated by Meyer and Allen (1997), employees who stay with an organization because they feel obligated or having no choice do not exhibit the same eagerness and involvement as employees who stay with an organization. In the present study, FDC leaders are so good on talking optimistic things about the future and providing an exciting image of organizational change, however, since there is so much work to do, they do not have much time for caring about developing subordinates‟ strengths and listening to attentively to others. Paying attention to the differences among followers and discovering what motivates each individual might the level of organizational commitment of the employees. These allow leaders to become familiar with followers, enhance communication and improve information exchange. If leaders advise staff on their careers, show staff the best way to perform, carefully observe and record followers‟ progress and encourage staff to attend technical courses, the proportion of employees remaining in the organization will increase. In this case, employees will have strong desire to stay with the company because they feel at ease when working and particularly they have a feeling of being appreciated. 66 5.2. Effect of idealized influence on continuance and affective commitment: Similarly, idealized influence also has relatively weak, but significant positive correlation with affective commitment (0.403) and very weak, but significant, positive relationship with continuance commitment (0.270) while there is no relationship between idealized influence and normative commitment. Idealized influence is considered to be an important factor which has an impact on developing employees‟ continuance and affective commitment. Chiun et al. (2009) states that three components of transformational leadership i.e. idealize influence, inspirational motivation and intellectual stimulation have positive direct relationship with affective commitment. Sudha & Venkat (2009) also support this idea by showing in their study that affective and normative commitment of the employee are enhanced by idealized influence attributed, idealized influence behavior, inspirational motivation, intellectual stimulation, and individualized consideration. Thus, an employee's emotional attachment to the organization can be enhanced by having a manager with idealized influence qualities, thereby making the employee feel positively obliged to stay with the organization. Leaders who apply idealized influence on their followers gain the trust and confidence of the followers. The followers admire the leader as a role model and respect the decisions made by him or her. In reality, although leaders have a clear sense of mission, purpose and values and they are willing to make personal sacrifices to achieve a goal for their group or organization, it seems that they are not good at respecting people as valuable, unique, imperfect and developing souls. Employees feel that they work like a machine, they cannot express their ideas or their ideas are not appreciated. As for the lack of statistically significant correlations between the personal motivation/idealized influence and normative commitment, my findings suggest that these two leadership style may not be related to how employees feel about their obligation to stay with organization. The finding that personal motivation and idealized influence has no relationship with normative commitment is also appropriate since employees who stay with an organization because they feel obligated to do may not exhibit the same enthusiasm and involvement as employees who stay with an organization because they want to stay and need to stay. 67 5.3. Effect of contingent reward on continuance and affective commitment: According to the analysis results, there is a strong and but significant, positive relationship between contingent reward and both affective (0.285) and continuance commitment (0.229). On the other hand, there is no relationship between contingent reward and normative commitment. Contingent reward had a positive relationship with continuance commitment and indicated a lesser variance than personal motivation or idealized influence. This means that leadership behaviours, which involve providing followers with material and psychological rewards on contingent on the fulfillment of contractual obligations, explain only a little of the variation in how employees feel about needing to stay with the organisation. Like personal motivation, contingent reward is also a key factor which needs to be paid attention to when considering continuance and affective commitment. The finding also supports the studies of Lo et al. (2010) those indicated that transactional leadership has positive relationship with employees‟ organizational commitment. The positive correlation between contingent reward and affective commitment and continuance commitment suggests that leadership behaviors involving exchange of rewards for meeting agreed-on objectives, promising for higher incentives and praising related to how employees feel about want to stay and need to stay with the organization (Bass & Avolio, 1993). This relationship also indicates that the leaders‟ and followers‟ associations affects employees‟ moral identification with an organization and relates to their feelings of responsibility (Allen & Meyer, 1990). On the other hand, the absence of relationship for contingent reward with normative commitment suggests that leadership behaviors involving rewards may not be related to how employees feel about ought to stay with the organization. These natures are more related with negative performance (Allen & Meyer, 1990; Bass & Avolio, 1993). Actually, one third of FDC‟s profit comes from projects. When successfully finishing, employees who are in charge will be encouraged by a deserved bonus. And this depends on the contribution to the projects, people who work more get more, who work less get less or be punished. High incentive is one of the best motive power which makes staff have a strong and long-term attachment to the organization. The more experience and the longer employees stay with the company, the higher incentive they get for the project. However, many people still left in the past 4 years. There are two main reasons for their quitting. The first reason is unequal 68 paying among staff. Two people with the same background, the same task but may get different salary. Secondly, finished projects generate high profit and high incentives but only for experienced employees. A new employee have to spend at least 6 months to get used to the price, the content, the relationship and other things related to projects and at least one year to be responsible for a project independently. Many new people feel exhausted and frustrated and choose leaving as the best solution. The overall statistical findings show a clear picture of the relationship and impact of leadership styles on organization commitment. Overall results show that personal motivation and idealized influence is playing strong role in contribution of the transformational leadership towards the affective and continuance commitment. So is contingent reward of transactional leadership. However, there is no correlation between these factors with normative commitment. In conclusion, the transformational and transactional leadership styles (personal motivation, idealized influence and contingent reward) have positive impact and contribution in the organizational commitment. 69 Chapter 6: RESEARCH CONCLUSION AND RECOMMENDATION 6.1. Research Conclusion: The main objective of the study was to investigate the relationship between various leadership styles and various employee commitment styles in FPT Distribution Company. This study found that personal motivation and idealized influence of transformational leadership behaviours were positively related with affective and continuance commitment, although not very strongly. This means that leadership behaviours which involve engendering trust, inspiring a shared vision, generating enthusiasm, encouraging creativity, providing coaching and recognizing accomplishments, do explain some of the variation in how employees feel about wanting to, or needing to, stay with the organisation. The more they display these behaviours, the more employees may want to or need to stay. Overall findings from this study suggest that personal motivation and contingent reward are key factor while idealized influence behaviours do play important roles in determining levels of affective commitment and continuance commitment. 6.2. Recommendation: Empirical evidence seems to support the hypothesis that leadership style can affect the development of organisational commitment. Managers in FDC might be able to increase employees‟ levels of organizational commitment by improving leadership styles particularly in personal motivation, idealized influence and contingent reward. This is critical to the organization as commitment results in better performance and more meaningful contributions. 6.2.1. Personal motivation: In order to develop employee commitment in FDC, leaders can play a role in building commitment by assuring that the organisation makes effort to address both the work content and the work context by engaging in management practices to minimize employee alienation. They should demonstrate their commitment to the employees by sharing information, provide for the development and growth of employees within the organization. In this era of empowered 70 employees and teams, leaders still need to communicate to their subordinates the sense that the organization respects them and values the contributions that they make. With new process or new project which is usually occur in FDC, leaders should hold a short term training course. Besides coaching staff things related to new project, leaders could care more about subordinates‟ lives and stuff after class. It is the best way to make them feel appreciated. Although a question or interest from leaders cannot help them solve their out of work problems, they will have more power to concentrate on project and try their best to finish work on time and successfully. Additionally, after each quarter, leaders should have a personal meeting with employees in department they are responsible for. In this meeting, by reviewing what each staff achieved as well as failed during last quarter, both leaders and subordinates can analyse reasons and set up new target for next three months. Surely, the content of meeting is secret and unrevealed. This is a good opportunity for leaders to ask about the problems staff had to overcome or any comments about colleagues and work, and from this, leaders can adjust the work or relieve subordinates to the most beneficial way for both. It is also the best chance for employees to express and show their real feelings. In addition, any organisation that requires their employees to develop organisational commitment should provide comprehensive training that will encourage leadership to exhibit leadership behaviours such as building trust, inspiring a shared vision, encouraging creativity, emphasising development, and recognising accomplishments. 6.2.2. Idealized influence: Leaders with idealized influence may create a friendly and open relationship environment among staff. The trust and respect for the leaders who have idealized influence makes it easier for followers to take risks with suggestions and to be more open and forthcoming. Since idealized influence is marked by making others feel good, making others proud, and earning faith from the subordinate, the leader must do this through interaction that will involve some form of communication, either verbal or nonverbal. Leaders should make sure to avoid criticism that would violate commonality. They are also recommended using humor and phrases that the protégé can relate to in order to save face. Instead of emphasizing a mistake, leaders could use a softer way to point out mistake and criticize others. 71 In addition, leaders can point out problems to subordinates without necessarily violating their autonomy. Rather than acting mad and frustrated if a report is late, leaders can emphasize how the report affects promotion of subordinates and how important it is when leaders evaluate employees monthly. The strategy allows assertion of the importance of submitting reports on time, but does not emphasize the mistake to the point of isolating the constituent. If someone violates a policy, rather than pursuing the perpetrator like a criminal, the TL strategy might be to provide the policies, emphasize why the policies were established, and describe the big picture impact of violating the policies. The approach provides an avenue for maintaining commonality and avoiding rifts. The strategy also seems to build respect. The leader is not avoiding punishment, but using the event as an opportunity to train, teach, and improve the performance of the individual. 6.2.3. Contingent reward: In order to reduce level of leaving employees because of wages and incentives, leaders in FDC are trying to apply the policy of paying 17 months of salary instead of 13 months like other companies. After every quarter, Managers of each Department will review what each staff achieved during that period. They also get feedback from another department who has to work directly with their staff. Then, they will give scores for each staff based on what they have collected. And the score one person gets equals to the percentage of that person‟s salary. For instance, if one person get 100/100 scores and his monthly payment is 10 million VND, they will get 10 million VND bonuses for that quarter. Moreover, if one person works for company for more than one year, at the end of the year, that person will get 15% of reward under the name of “support from inflation”. Addition to these bonuses, FDC also share more profit for people if its business goes well in the year. Besides, after 6 months, every employees should have the benefit of being reviewed their salary by evaluating their contribution during 6 months. 6.3. Limitation and suggestion: Like other researches, my finding has several limitations which should be considered during study procedure. First limitation is that the questionnaire developed by Bass and Avolio does not clearly mention the incentives based comparison. Some other factors such as work 72 environment, competition, population and demographics also affect the employees‟ commitment which is not covered by this questionnaire. Secondly, it is recommended that other studies split FDC staff into supervisors and subordinates groups. Thereafter, future researches can compare the supervisors‟ self-rating with their subordinates‟ perception of leadership style. Another limitation of the study is that income was not collected as a respondent‟s information. This is also a factor which seriously affects organizational commitment. Last but not least, this research is only conducted in Ho Chi Minh City while FDC has subsidiaries in four countries: Ha Noi, Ho Chi Minh, Da Nang and Can Tho. The weakness of present survey provides suggestion for future research. Possible future direction can use a more differentiated measure for leadership styles. Future studies should attempt to cover all four regions in FDC and then, make a general conclusion of what factors exactly affect employee commitment and give the best solutions from these reasons. 73 REFERENCES Amos, T. and Ristow, A. 1999. Human Resource Management: Small Business Management Series. Cape Town: Juta. Allen, N., & Meyer, J. (1990). 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Please take a look at the questionnaire: A- When thinking of my leaders, I feel that: 1 Leaders talk about their most important values and beliefs 2 Leaders emphasize the importance of having a collective sense of mission 3 Leaders respect people as valuable, unique, imperfect and developing souls 4 Leaders go beyond self-interest for the good of the group 5 Leaders make subordinates feel good to be around employers 6 Leaders instill pride in others for being associated with them 7 Leaders talk optimistically about the future 8 Leaders help others see their purpose of working 9 Leaders express with a few simple words what others could and should do 10 Leaders provide attractive images about what others can do 11 Leaders suggest new ways of looking at how to complete assignments 12 Leaders seek differing perspectives when solving problems 13 Leaders rethink ideas that they had never questioned before 14 Leaders give personal attention to others who seem rejected. 15 Leaders let others know how I think they are doing 16 Leaders help others to develop my strengths 17 Leaders treat others as an individual rather than just as a member of a group 18 Leaders tell others what to do if they want to be rewarded for their work 82 19 Leaders provide recognition/rewards when others reach their goals 20 Leaders make other pay attention to what they can get if they accomplish their work 21 Leaders focus attention on irregularities, mistakes, exceptions, and deviations from standards. 22 Leaders direct subordinates‟ attention toward failures to meet standards 23 Leaders tell others the standards they have to know to carry out their work 24 Leaders fail to interfere until problems become serious 25 Leaders wait for things to go wrong before taking action 26 As long as things are working, leaders do not try to change anything. 27 28 Leaders ask others to do basic things, not encourage them to try to learn more from work Leaders avoid getting involved when important issues arise 29 Leaders avoid making decisions 30 Leaders delay responding to urgent questions B- When evaluating of my company and my work, I suppose that: 1 I feel like part of the family at this organization 2 I feel emotionally attached to this organization 3 This department has a great deal of personal meaning for me 4 Too much of my life would be disrupted if I decided that I wanted to leave this organization now. 5 I feel that I have very few options to consider leaving this organization 6 It would be very costly for me to leave this organization right now. 7 I would feel guilty if I left my organization now 8 This organization deserves my loyalty Please answer the following questions: 1. Do you understand the questions? 2. Are there any identical questions? Which ones? 3. Do you want to add more factors to leadership style and employee commitment which are related to FDC‟s reality? What are they? 83 Appendix 2: Survey Questionnaire: Dear participants, For my master thesis, I am conducting a study to determine the relationship between Full-range leadership style and employee commitment. I would greatly appreciate if you would spend the approximately 5-6 minutes of your time to respond to this multiple choice questionnaire. Forty descriptive statements are listed as below. Please read and rate each question on the scale of 1-5 in the respective columns. Thank you in advance for your assistance with this research project. Score level 2 3 4 5 When thinking of my leaders, I feel that: 1 Leaders talk about their most important values and beliefs. 2 Leaders emphasize the importance of having a collective sense of mission. 3 Leaders respect people as valuable, unique, imperfect and developing souls. 4 Leaders go beyond self-interest for the good of the group. 5 Leaders make subordinates feel good to be around employers. 6 Leaders instill pride in others for being associated with them. 7 Leaders talk optimistically about the future. 8 Leaders help others see their purpose of working. 9 Leaders provide attractive images and express with a few simple words what others could and should do. 10 Leaders suggest new ways of looking at how to complete assignments. 11 Leaders seek differing perspectives when solving problems. 12 Leaders rethink ideas that they had never questioned before. 13 Leaders give personal attention to others who seem rejected. 14 Leaders let others know how I think they are doing 15 Leaders help others to develop my strengths. 84 Disagree Strongly disagree Please rate each statement on the scale of 1-5 by ticking () one answer to each question in the respective columns. Strongly agree 1 Agree Questions Neither agree nor disagree No 16 Leaders treat others as an individual rather than just as a member of a group. 17 Leaders tell others what to do if they want to be rewarded for their work. 18 Leaders provide recognition/rewards when others reach their goals. 19 Leaders make other pay attention to what they can get if they accomplish their work. 20 Leaders focus attention on irregularities, mistakes, exceptions, and deviations from standards. 21 Leaders keep track of all results and mistakes through KPI (Key Performance Index). 22 Leaders direct subordinates‟ attention toward failures to meet standards. 23 Leaders tell others the standards they have to know to carry out their work. 24 Leaders fail to interfere until problems become serious. 25 Leaders wait for things to go wrong before taking action. 26 As long as things are working, leaders do not try to change anything. 27 Leaders ask others to do basic things, not encourage them to try to learn more from work. 28 Leaders avoid getting involved when important issues arise, 29 Leaders avoid making decisions. 30 Leaders delay responding to urgent questions. When evaluating of my company and my work, I suppose that: 31 I feel like part of the family at this organization. 32 I feel emotionally attached to this organization. 33 This department has a great deal of personal meaning for me 34 Too much of my life would be disrupted if I decided that I wanted to leave this organization now. 35 I feel that I have very few options to consider leaving this organization. 36 It would be very costly for me to leave this organization right now. 37 I would not leave this organization right now because I am familiar with the process here and afraid of challenge of new job. 38 I would not leave this organization right now because my project has just started. 39 I would feel guilty if I left my organization now. 40 This organization deserves my loyalty. Please tell us about yourself and your work by answering the following questions: 1. Your age:  Under 25  25 - 30 years old 85  Over 30 2. Your gender:  Nam  Female 3. How long have you been working in FDC?  1-2 years  2-5 years  More than 5 years 4. What is your highest degree of education?  Bachelor  Master  Others: ……….  Managers  Directors 5. Your current position:  Staff ---Thank you for taking time and effort to fill out this survey--- 86 Appendix 3: Survey questionnaire (Vietnamese version) I. II. THÔNG TIN CÁ NHÂN: 1. Độ tuổi của Anh/Chị:  Dưới 25 tuổi  25 tuổi -30 tuổi 2. Giới tính của Anh/Chị:  Nam  Nữ 3. Thời gian Anh/Chị làm việc cho công ty:  Dưới 1-2 năm  Dưới 3-5 năm 4. Trình độ học vấn của Anh/Chị:  Đại học  Thạc sĩ 5. Vị trí công việc hiện tại của Anh/Chị:  Nhân viên  Trưởng/Phó phòng  Trên 30 tuổi  >5 năm  Khác: ……….  Phó Giám đốc/Giám Đốc NỘI DUNG CÂU HỎI ĐỐI VỚI NHÂN VIÊN: Cho biết mức độ đồng ý của Anh/Chị đối với các phát biểu sau bằng cách đánh dấu vào ô tương ứng với mức độ mà Anh/Chị chọn: Hoàn toàn không đồng ý, Không đồng ý, Không có ý kiến, Đồng ý, Hoàn toàn đồng ý. Khi nghĩ về lãnh đạo trực tiếp của mình, tôi cảm thấy:… 1 Lãnh đạo thường nói với tôi về những giá trị hoặc niềm tin quan trọng nhất đối với họ. 2 Lãnh đạo nhấn mạnh tầm quan trọng của việc có ý thức trách nhiệm. 3 Lãnh đạo tôn trọng sự khác biệt của các cá nhân. 4 Lãnh đạo hi sinh lợi ích của cá nhân vì lợi ích của tập thể. 5 Lãnh đạo làm cho tôi cảm thấy thoải mái khi làm việc cùng. 6 Lãnh đạo truyền niềm tự hào vào tôi khi làm việc với họ. 7 Lãnh đạo thường nói một cách lạc quan về tương lai của tổ chức. 8 Lãnh đạo giúp tôi hiểu được ý nghĩa công việc của tôi. 87 Hoàn toàn đồng ý Đồng ý Không có ý kiến Xin cho biết mức độ đồng ý của Anh/Chị đối với các phát biểu sau bằng cách đánh dấu () vào ô tương ứng mà Anh/Chị chọn: Không đồng ý Mức độ đồng ý với câu hỏi 1 2 3 4 5 Câu hỏi Hoàn toàn không đồng ý TT Lãnh đạo truyền đạt và giúp tôi hình dung một cách đơn giản những gì tôi có thể làm hoặc nên làm. 10 Lãnh đạo giúp tôi nhìn nhận vấn đề cũ theo những cách mới. 11 Lãnh đạo giúp tôi nhìn nhận vấn đề từ nhiều khía cạnh khác nhau. 12 Lãnh đạo giúp tôi suy nghĩ về những điều mà trước đây tôi chưa từng thắc mắc. 13 Lãnh đạo quan tâm riêng tới những nhân viên có vẻ như bị cô lập khỏi nhóm/phòng ban của mình. 14 Lãnh đạo quan tâm đến mối quan hệ giữa tôi với các đồng nghiệp/phòng ban khác. 15 Lãnh đạo giúp tôi phát huy những ưu điểm của mình. 16 Lãnh đạo quan tâm đến từng cá nhân chứ không đánh đồng cho mọi thành viên trong nhóm/phòng/ban. 17 Lãnh đạo nói với tôi những việc phải làm nếu tôi muốn được thưởng khi hoàn thành công việc. 18 Lãnh đạo tưởng thưởng khi tôi hoàn thành công việc. 19 Lãnh đạo khiến tôi chú ý tới những gì tôi sẽ nhận được khi hoàn thành công việc được giao. 20 Lãnh đạo tập trung chú ý giải quyết những sai phạm, sự lệch hướng so với tiêu chuẩn đặt ra. 21 Lãnh đạo theo dõi/đánh giá những sai phạm và kết quả của tôi thông qua KPI (Key Performance Index). 22 Lãnh đạo chỉ cho tôi những lỗi sai sót để tôi làm tốt hơn. 23 Lãnh đạo nói với tôi những tiêu chuẩn cần đạt được khi thực hiện công việc của mình. 24 Lãnh đạo chỉ hành động khi mọi việc xảy ra sai sót. 25 Lãnh đạo không can thiệp cho đến khi công việc có vấn đề/trở nên trầm trọng. 26 Khi mọi việc đang diễn ra bình thường, lãnh đạo không muốn thay đổi bất cứ thứ gì. 27 Lãnh đạo muốn tôi chỉ làm những việc cần làm và không khuyến khích tôi tìm tòi, sáng tạo trong công việc. 28 Lãnh đạo hay né tránh tham gia vào những vấn đề khó khăn, 29 Lãnh đạo tránh đưa ra các quyết định. 30 Lãnh đạo thường trì hoãn việc trả lời các câu hỏi quan trọng. Khi đánh giá về công ty và công việc của mình, tôi cho rằng:… 31 Tôi có cảm giác công ty là một gia đình và tôi là một thành viên của gia đình đó. 32 Tôi cảm thấy có tình cảm gắn bó với tổ chức này. 33 Bộ phận tôi đang làm có một ý nghĩa quan trọng với tôi. 34 Cuộc sống của tôi sẽ bị phá vỡ/xáo trộn nếu tôi quyết định rời công ty lúc này. 35 Tôi cảm thấy có ít sự lựa chọn khi cân nhắc về việc rời công ty. 36 Sẽ rất tốn kém khi tôi rời công ty lúc này. 37 Tôi sẽ không rời công ty ngay bây giờ bởi vì tôi đã quen với quy 9 88 38 39 40 trình của công ty và tôi ngại sự thay đổi (học hỏi lại quy trình mới từ đầu). Tôi sẽ không chuyển việc bởi vì dự án của tôi chỉ mới vừa bắt đầu. Tôi cảm thấy có lỗi nếu tôi đổi qua việc mới. Công ty này xứng đáng với lòng trung thành của tôi. -----------o0o---------- 89 Appendix 4: Descriptive Statistics N Minimum Maximum Mean Std. Deviation IDEALI01 210 2 5 3.29 .702 IDEALI02 210 2 5 3.50 .658 IDEALI03 210 1 5 3.09 .837 IDEALI04 210 1 5 3.15 .761 IDEALI05 210 1 5 3.17 .873 IDEALI06 210 2 5 3.36 .831 INSPIR07 210 1 5 3.40 .871 INSPIR08 210 2 5 3.40 .831 INSPIR09 210 2 5 3.58 .702 INTELL10 210 2 5 3.33 .796 INTELL11 210 3 5 4.12 .493 INTELL12 210 2 5 3.59 .629 INDIVI13 210 1 5 3.15 .862 INDIVI14 210 1 5 3.28 .914 INDIVI15 210 1 5 2.76 .965 INDIVI16 210 1 5 2.95 1.003 CONTIG17 210 2 5 4.03 .684 CONTIG18 210 2 5 3.99 .748 CONTIG19 210 2 5 4.01 .660 MANAGE20 210 1 5 3.15 .848 MANAGE21 210 2 5 3.42 .709 MANAGE22 210 1 5 3.06 .777 MANAGE23 210 1 5 2.81 .968 MANAGE24 210 1 5 2.83 .943 MANAGE25 210 1 5 2.69 1.033 MANAGE26 210 1 5 2.64 1.081 MANAGE27 210 1 5 3.16 .922 LAISSE28 210 1 5 2.64 .672 LAISSE29 210 1 5 2.68 .737 LAISSE30 210 1 5 2.45 .670 AFFECT31 210 1 5 3.56 .874 AFFECT32 210 1 5 3.48 .913 AFFECT33 210 1 5 3.47 .870 CONTIN34 210 1 5 3.49 .887 CONTIN35 210 1 5 3.69 .833 CONTIN36 210 1 5 3.95 .831 90 CONTIN37 210 1 5 3.61 .847 NORMAT38 210 1 5 3.27 .926 NORMAT39 210 2 4 3.13 .654 NORMAT40 210 2 5 3.44 .544 Valid N (listwise) 210 91 Appendix 5: Result of exploratory factor analysis 1. Result of EFA after first round: KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .781 Approx. Chi-Square Bartlett's Test of Sphericity 2072.481 df 435 Sig. .000 Communalities Initial Extraction IDEALI01 1.000 .654 IDEALI02 1.000 .569 IDEALI03 1.000 .596 IDEALI04 1.000 .592 IDEALI05 1.000 .623 IDEALI06 1.000 .637 INSPIR07 1.000 .605 INSPIR08 1.000 .630 INSPIR09 1.000 .494 INTELL10 1.000 .659 INTELL11 1.000 .586 INTELL12 1.000 .502 INDIVI13 1.000 .604 INDIVI14 1.000 .611 INDIVI15 1.000 .684 INDIVI16 1.000 .621 CONTIG17 1.000 .788 CONTIG18 1.000 .819 CONTIG19 1.000 .803 MANAGE20 1.000 .695 MANAGE21 1.000 .469 MANAGE22 1.000 .638 MANAGE23 1.000 .735 MANAGE24 1.000 .494 MANAGE25 1.000 .648 MANAGE26 1.000 .713 MANAGE27 1.000 .572 92 LAISSE28 1.000 .634 LAISSE29 1.000 .630 LAISSE30 1.000 .716 Extraction Method: Principal Component Analysis. Total Variance Explained Componen t Initial Eigenvalues Total % of Variance Extraction Sums of Squared Loadings Cumulative % Total % of Variance Rotation Sums of Squared Loadings Cumulative % Total % of Variance Cumulative % 1 6.082 20.274 20.274 6.082 20.274 20.274 3.051 10.168 10.168 2 2.866 9.554 29.828 2.866 9.554 29.828 2.988 9.959 20.127 3 1.960 6.533 36.361 1.960 6.533 36.361 2.639 8.797 28.924 4 1.805 6.016 42.377 1.805 6.016 42.377 2.147 7.158 36.082 5 1.574 5.246 47.623 1.574 5.246 47.623 1.989 6.629 42.711 6 1.442 4.805 52.428 1.442 4.805 52.428 1.831 6.103 48.814 7 1.189 3.962 56.391 1.189 3.962 56.391 1.659 5.529 54.342 8 1.086 3.621 60.012 1.086 3.621 60.012 1.536 5.119 59.462 9 1.016 3.386 63.398 1.016 3.386 63.398 1.181 3.936 63.398 10 .954 3.180 66.577 11 .880 2.934 69.511 12 .871 2.904 72.416 13 .800 2.668 75.084 14 .738 2.460 77.543 15 .672 2.240 79.783 16 .638 2.128 81.911 17 .621 2.070 83.981 18 .551 1.837 85.818 19 .507 1.689 87.507 20 .481 1.602 89.110 21 .450 1.500 90.610 22 .429 1.431 92.041 23 .413 1.376 93.417 24 .349 1.165 94.582 25 .348 1.159 95.741 26 .309 1.031 96.773 27 .275 .916 97.688 28 .251 .837 98.525 29 .223 .744 99.269 30 .219 .731 100.000 93 Extraction Method: Principal Component Analysis. Component Matrix a Component 1 2 3 4 5 6 IDEALI03 .662 IDEALI05 .636 INSPIR07 .618 INDIVI14 .614 MANAGE21 .614 INDIVI13 .614 IDEALI04 .585 IDEALI06 .576 MANAGE22 .576 MANAGE23 .575 .407 INSPIR08 .569 -.350 MANAGE25 .556 MANAGE24 .550 IDEALI01 .534 INDIVI16 .489 -.396 MANAGE26 .473 .389 INSPIR09 .393 MANAGE27 .380 -.340 -.343 -.329 -.357 .311 CONTIG19 .803 CONTIG17 .792 LAISSE30 -.510 .388 INTELL11 .366 -.634 INTELL10 .381 -.611 LAISSE29 .352 .504 -.417 .399 .454 .381 -.312 IDEALI02 .341 -.320 -.382 -.363 .377 -.372 -.431 -.326 -.406 .377 INTELL12 MANAGE20 -.400 -.300 .460 .346 9 -.327 .815 INDIVI15 8 -.311 CONTIG18 LAISSE28 7 -.348 .335 .421 -.676 Extraction Method: Principal Component Analysis. a. 9 components extracted. 94 Rotated Component Matrix a Component 1 2 3 INDIVI13 .711 INSPIR08 .710 INDIVI14 .678 INSPIR09 .600 INSPIR07 .545 .304 INDIVI16 .493 .365 IDEALI06 .767 IDEALI05 .707 IDEALI04 .683 IDEALI03 .636 4 5 7 .893 CONTIG19 .888 CONTIG17 .872 MANAGE26 .803 MANAGE27 .709 MANAGE25 .702 .322 .405 9 .393 LAISSE30 .815 LAISSE28 .763 LAISSE29 .638 MANAGE23 .768 MANAGE22 .667 MANAGE21 8 -.347 CONTIG18 MANAGE24 6 .342 .368 INTELL10 .741 INTELL11 .682 INTELL12 .638 IDEALI01 .667 IDEALI02 .587 -.366 -.433 -.314 INDIVI15 .409 -.311 MANAGE20 .782 Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. a. Rotation converged in 9 iterations. Component Transformation Matrix 95 Component 1 2 3 4 5 6 7 8 9 1 .568 .579 .130 .393 .068 .372 .002 .135 .097 2 .063 -.062 .865 -.146 -.444 .007 -.014 -.130 -.094 3 .339 -.406 .251 -.195 .552 .012 .414 .372 -.070 4 -.155 -.004 .300 .072 .593 -.001 -.719 -.109 -.002 5 -.650 -.059 .205 .430 .062 .411 .285 .230 .200 6 .248 -.454 -.008 .538 .050 -.062 .136 -.627 .161 7 -.120 .305 .033 -.490 .285 .313 .310 -.576 .210 8 -.142 .206 .020 .205 .157 -.057 .219 -.192 -.884 9 -.125 .388 .197 .158 .171 -.767 .261 .023 .291 Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. 2. Result of EFA at second round after remove INDIVI15, MANAGE22, MANAGE23, MANAGE21, MANAGE24, INDIVI16, MANAGE20, IDEALI01, INSPIR09, IDEALI02, IDEALI05 KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .717 Approx. Chi-Square Bartlett's Test of Sphericity 1181.657 df 171 Sig. .000 Communalities Initial Extraction IDEALI03 1.000 .635 IDEALI04 1.000 .687 IDEALI06 1.000 .670 INSPIR07 1.000 .537 INSPIR08 1.000 .660 INTELL10 1.000 .624 INTELL11 1.000 .585 INTELL12 1.000 .420 INDIVI13 1.000 .566 INDIVI14 1.000 .572 CONTIG17 1.000 .815 CONTIG18 1.000 .820 CONTIG19 1.000 .808 MANAGE25 1.000 .675 96 MANAGE26 1.000 .698 MANAGE27 1.000 .563 LAISSE28 1.000 .645 LAISSE29 1.000 .539 LAISSE30 1.000 .702 Extraction Method: Principal Component Analysis. Total Variance Explained Component Initial Eigenvalues Total % of Variance Extraction Sums of Squared Loadings Cumulative % Total % of Variance Rotation Sums of Squared Loadings Cumulative % Total % of Variance Cumulative % 1 3.697 19.458 19.458 3.697 19.458 19.458 2.488 13.094 13.094 2 2.640 13.896 33.354 2.640 13.896 33.354 2.477 13.039 26.133 3 1.791 9.425 42.779 1.791 9.425 42.779 1.980 10.423 36.556 4 1.717 9.036 51.815 1.717 9.036 51.815 1.861 9.797 46.353 5 1.332 7.012 58.827 1.332 7.012 58.827 1.855 9.762 56.116 6 1.045 5.502 64.329 1.045 5.502 64.329 1.561 8.213 64.329 7 .914 4.811 69.140 8 .820 4.313 73.453 9 .749 3.944 77.397 10 .679 3.574 80.971 11 .589 3.098 84.069 12 .557 2.930 86.998 13 .462 2.433 89.431 14 .438 2.304 91.735 15 .412 2.169 93.904 16 .348 1.832 95.736 17 .335 1.761 97.496 18 .239 1.256 98.752 19 .237 1.248 100.000 Extraction Method: Principal Component Analysis. Component Matrixa Component 1 2 INSPIR07 .672 IDEALI03 .653 INDIVI14 .648 3 4 97 5 6 INDIVI13 .625 INSPIR08 .611 MANAGE25 .602 IDEALI04 .587 IDEALI06 .569 -.304 .486 -.386 .302 .464 CONTIG18 .862 CONTIG19 .848 CONTIG17 .833 .322 INTELL10 .728 INTELL11 .714 INTELL12 .427 .421 LAISSE29 .626 LAISSE30 -.462 .620 LAISSE28 -.357 .571 .301 MANAGE26 .536 .626 MANAGE27 .430 .547 Extraction Method: Principal Component Analysis. a. 6 components extracted. Rotated Component Matrixa Component 1 2 CONTIG17 .898 CONTIG18 .894 CONTIG19 .893 3 INSPIR08 .805 INDIVI13 .729 INDIVI14 .714 INSPIR07 .666 4 IDEALI06 .794 IDEALI04 .784 IDEALI03 .718 5 MANAGE26 .812 MANAGE25 .739 MANAGE27 .706 6 LAISSE30 .805 LAISSE28 .788 LAISSE29 .685 98 INTELL10 .767 INTELL11 .732 INTELL12 .626 Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. a. Rotation converged in 6 iterations. Component Transformation Matrix Component 1 2 3 4 5 6 1 .026 .689 .530 .467 .162 -.017 2 .916 .053 .057 -.059 -.387 .032 3 -.155 .390 -.272 -.136 -.268 .812 4 .348 .181 -.396 -.116 .816 .098 5 .083 -.350 -.294 .856 -.006 .227 6 .085 -.465 .632 -.119 .292 .527 Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. 99 Appendix 6: Result of reliability test 1. Reliability of dependent variable: - Continuance commitment: Case Processing Summary - N Valid a Cases Excluded Total % 210 100.0 0 .0 210 100.0 a. Listwise deletion based on all variables in the procedure. Reliability Statistics Cronbach's Alpha N of Items .800 4 Item-Total Statistics Scale Mean if Item Scale Variance if Corrected Item-Total Cronbach's Alpha if Deleted Item Deleted Correlation Item Deleted CONTIN34 11.25 4.522 .509 .803 CONTIN35 11.05 4.352 .628 .743 CONTIN36 10.79 4.176 .695 .711 CONTIN37 11.13 4.294 .631 .742 - Affective commitment: - Case Processing Summary N Cases Valid % 210 100.0 100 a Excluded Total 0 .0 210 100.0 a. Listwise deletion based on all variables in the procedure. Reliability Statistics Cronbach's Alpha N of Items .774 4 Item-Total Statistics Scale Mean if Item Scale Variance if Corrected Item-Total Cronbach's Alpha if Deleted Item Deleted Correlation Item Deleted AFFECT31 10.21 4.501 .643 .684 AFFECT32 10.29 4.150 .717 .640 AFFECT33 10.30 4.642 .601 .706 NORMAT38 10.50 5.227 .371 .824 - Normative commitment: - Case Processing Summary N Valid Cases Excludeda Total % 210 100.0 0 .0 210 100.0 a. Listwise deletion based on all variables in the procedure. Reliability Statistics 101 Cronbach's Alpha N of Items .368 2 Item-Total Statistics Scale Mean if Item Scale Variance if Corrected Item-Total Cronbach's Alpha if Deleted Item Deleted Correlation Item Deleted NORMAT39 3.44 .296 .229 . NORMAT40 3.13 .428 .229 . 2. Reliability of independent variable: - Contingent reward: Case Processing Summary - N Valid Excludeda Cases Total % 210 100.0 0 .0 210 100.0 a. Listwise deletion based on all variables in the procedure. Reliability Statistics Cronbach's Alpha N of Items .882 3 Item-Total Statistics Scale Mean if Item Scale Variance if Corrected Item-Total Cronbach's Alpha if Deleted Item Deleted Correlation Item Deleted CONTIG17 8.00 1.713 .764 .838 CONTIG18 8.04 1.553 .770 .837 102 CONTIG19 - 8.01 1.746 .785 .823 Personal motivation: Case Processing Summary - N Valid a Cases Excluded Total % 210 100.0 0 .0 210 100.0 a. Listwise deletion based on all variables in the procedure. Reliability Statistics Cronbach's Alpha N of Items .764 4 Item-Total Statistics Scale Mean if Item Scale Variance if Corrected Item-Total Cronbach's Alpha if Deleted Item Deleted Correlation Item Deleted INDIVI13 10.08 4.400 .539 .722 INDIVI14 9.95 4.170 .559 .712 INSPIR07 9.83 4.296 .563 .709 INSPIR08 9.84 4.337 .596 .692 - Management by exception: - Case Processing Summary N Cases Valid % 210 100.0 103 a Excluded Total 0 .0 210 100.0 a. Listwise deletion based on all variables in the procedure. Reliability Statistics Cronbach's Alpha N of Items .685 3 Item-Total Statistics Scale Mean if Item Scale Variance if Corrected Item-Total Cronbach's Alpha if Deleted Item Deleted Correlation Item Deleted MANAGE25 5.80 2.802 .523 .559 MANAGE26 5.85 2.560 .563 .502 MANAGE27 5.33 3.400 .419 .685 - Idealized influence: Case Processing Summary - N Valid Cases Excludeda Total % 210 100.0 0 .0 210 100.0 a. Listwise deletion based on all variables in the procedure. Reliability Statistics Cronbach's Alpha .742 N of Items 3 104 Item-Total Statistics Scale Mean if Item Scale Variance if Corrected Item-Total Cronbach's Alpha if Deleted Item Deleted Correlation Item Deleted IDEALI03 6.51 1.859 .586 .634 IDEALI04 6.44 2.018 .601 .622 IDEALI06 6.24 1.991 .519 .714 - Laissez-faire: Case Processing Summary - N Valid Excludeda Cases Total % 210 100.0 0 .0 210 100.0 a. Listwise deletion based on all variables in the procedure. Reliability Statistics Cronbach's Alpha N of Items .666 3 Item-Total Statistics Scale Mean if Item Scale Variance if Corrected Item-Total Cronbach's Alpha if Deleted Item Deleted Correlation Item Deleted LAISSE28 5.13 1.376 .490 .556 LAISSE29 5.09 1.351 .412 .666 LAISSE30 5.32 1.319 .541 .490 - Intellectual Stimulation: 105 Case Processing Summary - N Valid Excludeda Cases Total % 210 100.0 0 .0 210 100.0 a. Listwise deletion based on all variables in the procedure. Reliability Statistics Cronbach's Alpha N of Items .514 3 Item-Total Statistics Scale Mean if Item Scale Variance if Corrected Item-Total Cronbach's Alpha if Deleted Item Deleted Correlation Item Deleted INTELL10 7.71 .741 .410 .275 INTELL11 6.92 1.252 .400 .356 INTELL12 7.45 1.215 .234 .558 106 [...]... behaviour: laissezfaire (non -leadership) , transactional, and transformational leadership Bass (1990), proposed four 16 behaviours of transformational leadership including charisma, inspirational motivation, intellectual stimulation, and individual consideration Idealized influence attributes or behaviors, or Charisma is characterized by vision and a sense of mission, instilling pride in and among the. .. identification with the organization and its goals Affective commitment involves three aspects such as the formation of an emotional attachment to an organization, identification with, and the desire to maintain organizational membership (Allen & Meyer, 1991) Continuance commitment is a commitment situation originating from the needs of employees to stay in the organization considering the costs of leaving... effort on behalf of the organization; and • a definite belief in and acceptance of the values and goals of the organization In other words, this commitment is an attitude about employees‟ loyalty to their organization and is an ongoing process through which organizational participants express their concern for the organization and its continued success and well-being The organizational commitment attitude... behavior as a leadership Theory multi-dimensional construct, where leaders may act transformational, transactional and laissez-faire, depending on the interaction among all variables, including leaders, followers, situation, work environment and all related factors Table 3: Summary of the development of Full Range Leadership Theory (conceptualized by Hassan Othman Saqer, 2009) Contingency Theories 2.2 Employee. .. represents nine single-order factors including five transformational leadership factors, three transactional leadership factors, and one nontransactional laissez-faire leadership These leadership styles have been described to have a direct effect on individual and organisational level outcomes (Bass, 199 0a) Bass (198 5a) based his descriptions of transformational and transactional leaders on Burns‟s... in the field of organizational behavior Generally speaking, leadership involves influencing other individuals to act towards the achievement of a goal Some definitions describe leadership as an act of influence, some as a process and yet others have looked at a person‟s trait qualities (Lussier and Achua, 2001) Various authors regard leadership as the behaviour of an individual when directing the activities... operationalize the conceptual model and to investigate the relative effects of the various factors Result of data processing indicated that there are three factors affect employees‟ continuance and affective commitment such as personal motivation, idealized influence and contingent reward In which personal motivation and contingent reward is the key factor and idealized influence is an important factor... within the organisation Employee commitment was captured using Meyer and Allen‟s (1997) Organisational Commitment including Three-Component Model of employee commitment Leadership was identified as the independent variable and organisational commitment as the dependent variable Data obtained from each of the research instruments was then statistically processed in data analysis in order to refine and... is determined by a number of personal (age, tenure in organization, and dispositions such as positive or negative affectivity, or internal or external control attributions) and organizational (the job design and leadership style of one‟s supervisor) variables Even nonorganizational factors such as the availability of alternatives, after making the initial choice to join an organization, will affect subsequent... transactional one does not have significant relationship with organizational commitment Similarly, Hayward et al (2004) indicated that no correlation was found between transactional leadership and affective, normative and continuance commitment However, Bass (1985) insisted that rewarding when employees reached targets had a positive and considerable influence on their next attempt and increased their ... to stay in the organization considering the costs of leaving In continuance commitment, the employees consider the disadvantages of leaving the organization and avoid quitting Continuance commitment. .. that analyzes the data is not involved in the planning of the experiment or the collection of the data Such analysis can be done based upon information that is available in the statistical information.. .THE EFFECT OF LEADERSHIP ON EMPLOYEE COMMITMENT IN FPT DISTRIBUTION COMPANY – A FULL RANGE LEADERSHIP APPROACH In Partial Fulfillment of the Requirements of the Degree of MASTER OF BUSINESS ADMINISTRATION