Factors affecting employees organizational commitment at dat xanh group

Advisor’s Assessment - Advisor’s signature Page of 69 ACKNOWLEDGEMENTS I would like to acknowledge the assistance of HCMC University of Technology (HUTECH) staff associated with the MBA and MBA administrative and project support staff In particular, I would like to acknowledge the continued support and patience of Nguyen The Khai, DBA who has supervised this research and Do Thi Thanh Truc whose help with data analysis on SPSS Software has been invaluable Those who participated in interviews and those who responded to the survey made this report possible I would like to recognise their contribution I am also grateful the management of Dat Xanh Group and in particular CEO Luong Tri Thin for his support and willingness to help This report, and indeed the completion of this Masters of Business Administration, would not have been possible without the love, eternal patience and support of my wonderful wife and children They have scarified much during this journey Finally but by no means least, I would like to recognise the continuous motivating force that has been my classmates, and especially monitor – Nguyen Dinh Thi whom have shared their knowledge and time to learn together in order to complete all assignments especially this paper Page of 69 TABLE OF CONTENTS LIST OF FIGURES LIST OF TABLES ABBREVIATIONS ABSTRACT Chapter 1: INTRODUCTION 1.1 Company Brief Introduction 1.2 Research Problem Statement 14 1.3 Purpose of the research 15 1.4 Scope of research 16 1.5 Question of the research 16 Chapter 2: LITTERATURE REVIEW 17 2.1 Organizational Commitment 17 2.2 Job Satisfaction 19 2.3 Perceived Organizational Support 21 2.4 Procedural Justice 23 2.5 Perceived Person-Organization Fit 25 2.6 The relationship between JS and Organizational Commitment 26 2.7 The relationship between POS and Organizational Commitment 27 2.8 The relationship between PJ and Organizational Commitment 27 2.9 The relationship between POF and Organizational Commitment 28 Chapter 3: RESEARCH MODEL, HYPOTHESES AND METHODS 29 3.1 Research model 29 3.1.1 Dependent Variables: 29 3.1.2 Independent Variables: 29 3.2 Constructs 30 3.3 Research Hypotheses: 30 3.4 Measure of each construct 31 3.4.1 Organizational Commitment 31 3.4.2 Job satisfaction 33 3.4.3 Perceived Organizational Support 36 3.4.4 Procedural Justice 37 Page of 69 3.4.5 Perceived Person-Organization Fit 39 3.5 Data Collection Process 40 3.6 Procedure for data analysis 41 Chapter 4: RESEARCH FINDINGS AND ANALYSIS 44 4.1 Reliability statistic 44 4.2 Descriptive statistic 45 4.3 Correlation of all variable statistic 45 4.4 Hypothesis Testing 47 Chapter 5: DISCUSSION AND RECOMMENDATION 49 5.1 Summary and Discussion 49 5.2 Management Implications 51 5.3 Limitations of Study and Further Research Recommendation 53 5.4 Conclusion 54 REFERENCES 55 APPENDIX A 59 APPENDIX B 64 Page of 69 LIST OF FIGURES Figure 0-1: DXG at a glance 10 Figure 0-2: DXG management organization 10 Figure 0-3: List of Subsidiaries and Associates 12 Figure 0-4: List of Project Portfolio 13 Figure 0-5: Proposed Research Model of Organizational Commitment in DXG 29 Page of 69 LIST OF TABLES Table 1: Measurement of Organizational Commitment 32 Table 2: Measurement of Job Satisfaction 34 Table 3: Measurement of Perceived Organizational Support 36 Table 4: Measurement of Procedural Justice 38 Table 5: Measurement of perceived person-organization fit 40 Table 6: Reliability of the measurement scales 41 Table 7: Degree of correlation 42 Table 8: Summary of Cronbach’s Alpha of the variables 44 Table 9: Descriptive statistics 45 Table 10: Summary of Correlations of all variables 46 Table 11: Model Summary of all hypotheses 47 Table 12: Coefficients of all hypotheses 47 Page of 69 ABBREVIATIONS DXG Dat Xanh Group HRM Human Resource Management SPSS Statistical Packages for the Social Science OC Organizational Commitment JS Job Satisfaction POS Perceived Organizational Support PJ Procedural Justice POF Perceived Person–Organization Fit Page of 69 ABSTRACT The purpose of this research is to examine factors affecting employee’s Organization Commitment at Dat Xanh Group It is expected that the findings of the research will give an overall view of how internal management items affect the turnover rate at Dat Xanh Group Then, Dat Xanh Group management team could find the project’s results as reference on adjusting and developing couple of solutions that fill in the gap in HRM system and retaining its talents in today strong competitive context This research was conducted to evaluate the relationship of Job Satisfaction, Perceived Organizational Support, Procedural Justice, Perceived Person-Organization Fit, and Organizational Commitment Responses were collected via questionnaires from 287 respondents Regression used as a statistical tool and the results showed that all four independent constructs involved in examining with dependent construct were supported The findings on direct effects revealed that predictor variables have a positive relationship with Organizational Commitment In general, the Job Satisfaction (pay, promotion, supervision, benefits and rewards) has the largest effect on Organizational Commitment and followed by Procedural Justice (the justice in procedures shows the degree of authenticity of the organization) and Perceived Person-Organizational Fit (there were significant fitness of values, goals and objectives, work-family balance, ethics between person and organization at DXG) and Perceived Organizational Support has the lowest effect on Organizational Commitment To improve step by step the commitment from employees to DXG, the necessary thing is that top management should be aware of the importance of developing and retaining its workforce And then, focusing on reviewing and revising the human resource policies and procedures effectively The management should also take steps to support their employees and apply rules fairly and consistently to all employees and pay due attention to the concept of Person – Organization fit as a means to improve the organization’s performance Keywords: Job Satisfaction, Perceived Organizational Support, Procedural Justice, Perceived Person-Organization Fit, and Organizational Commitment Page of 69 Chapter 1: INTRODUCTION 1.1 Company Brief Introduction Dat Xanh Real Estate Service and Constructions Corporation (“DXG” code) formerly known as Dat Xanh Services and Real Estate Construction Limited Company was established in 2003 with initial chartered capital of VND0.8 billion The company's chartered capital now is VND1,172 billion The company's stock was listed on HOSE in 2009 and operated as corporation since 2011 Over 12 years developing, Dat Xanh Real Estate Service And Constructions Corporation has become one of the fast developing companies in investing and trading real estate in Vietnam, being the leading one in distributing projected land and apartments The company currently has large distribution network in Vietnam with 20 branches, subsidiaries, associated companies, joint venture companies over the country The company has many key projects, one of which is "Sunview Town" project, which was voted as "Top best apartments in Vietnam" (as announced in South East Asia Property Awards 2014) according to Property Report magazine Since its founding date, Dat Xanh Group has invested and develop in cooperation over 311.56 hectares of project land, provided the market with 5,375 villas, terraced houses and apartments in Ho Chi Minh City, Binh Duong, Long An DXG is deploying more than 180 hectares of new land in Ho Chi Minh City, Dong Nai and Phu Quoc and intend to annually provide the market with about 3,0005,000 villas, terraced houses and apartments over the next few years Projects with convenient locations, complete infrastructure, modern design style, quality construction, fully furnished, and clean environment that offers true living value for people have been and will always be the targets of Dat Xanh Group Page of 69 DXG at a glance  Head office 27, Dinh Bo Linh Street, Ward 24, Binh Thanh District, Ho Chi Minh City  Founders Luong Tri Thin; Luong Tri Tu and Tran Van Anh  Date of establishment November, 2003  Scope of Work Operating in real estate sector, investing in real estate projects, trading centers, hotels, restaurants, and offices Distributing and marketing real estate projects, financial investments, securities brokerage  Market capitalization 2,274 billion VND (as of 16 December 2015)  Number of employees 1,600 (as of November 2015)  Stock exchange HOSE (Ho Chi Minh Stock Exchange, Vietnam)  Website www.datxanh.com.vn Figure 0-1: DXG at a glance  DXG’s Organizational Chart Figure 0-2: DXG management organization Page 10 of 69 REFERENCES - Dail L Fields (2002il) Taking the Measure of Work – A Guide to Validated Scales for Organizational research and Diagnosis Sage Publications, Inc - Richard t Mowday and richard m Steers, 1979 The Measurement of Organizational Commitment, University of California at Irvine - Adler, R and Corson, D., 2003 Organizational Commitment, Employees and Performance Chartered Accountants Journal of New Zealand, 82(3):31-33 - Buchanan B ,1974 Building organizational commitment: The socialization of managers in work organizations Administrative Science Quarterly, 19, 533-546 - Bard, K., 2002 Employee Ownership and Affective Organizational Commitment: Employee Perceptions of Fairness and the Preference and Their Preference for Company Shares over Cash Scandinavian Journal of Management - Ansari, M.A.; Daisy, K.M.H.; and Aafaqi, R 2001 Fairness of human resource management practices, leader-member exchange, and organizational commitment Paper presented at the Fourth Asian Academy of Management Meeting, Johor Bahru, Malaysia - Allen, N J., & Meyer, J P (1990) The Measurement and Antecedents of Affective, Continuance and Normative Commitment to the Organization Journal of Occupational Psychology , 63, 1-18 - Meyer, J P & Smith, C A 2000 HRM Practices and Organizational Commitment: Test of a Mediation Model Canadian Journal of Administrative Sciences, 17(4): 319–331 - Brayfield, A H., & Rothe, H F (1951) An Index of Job Satisfaction Journal of Applied Psychology , 35 (5), 307-311 - Dirani, K M., & Kuchinke, K P (2011) Job Satisfaction and Organizational Commitment: Validating the Arabic Satisfaction and Commitment Questionnaire Page 55 of 69 (ASCQ), Testing the Correlations, and Investigating the Effects of Demographic Variables in the Lebanese Banking Sector The International Journal of Human Resource Management , 22 (05), 1180-1202 - Armstrong, M (2006) A Handbook of Human resource Management Practice, Tenth Edition, Kogan Page Publishing, London, , p 264 - Getahun, S., Sim, B., & Hummer, D (2007) Job Satisfaction and Organizational Commitment among Probation and Parole Officers: A Case Study 13(5) - Tang, T L., & Baldwin, L J S (1996) Distributive and procedural justice as related to satisfaction and 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Fasolo, P.M., & Davis-LaMastro, V (1990) Effects of perceived organizational support on employee diligence, innovation, and commitment Journal of Applied Psychology, 53, 51-59 Page 56 of 69 - Meyer, J.P., Allen, N.J., & Smith, C.A (1993) Commitment to organizations and occupations: Extension and test of a three-component conceptualization Journal of Applied Psychology, 78, 538-551 - Shore, L.M., & Wayne, S.J (1993) Commitment and employee behavior: Comparison of affective commitment and continuance commit- ment with perceived organizational support Journal of Applied Psychology, 78, 774-780 - Bakshi ,A., Kumar, K., & Rani , E (2009) Organizational justice perceptions as predictor of job satisfaction and organization commitment International Journal Business Management, 4(9): 145-154 - Folger, R., & Cropanzano, R (1998) Effects of procedural and distributive justice on reactions to pay raise decision Academy of Management Journal, 32(2): 115–130 - Bakshi ,A., Kumar, K., & Rani , E (2009) Organizational justice perceptions as predictor of job satisfaction and organization commitment International Journal Business Management, 4(9): 145-154 - Cable, D., & Judge, T A (1994) Pay preferences and job search decisions: A person organization fit perspective Personnel Psychology expectations, 47, 317– 348 - Chatman, J A (1989) Improving interactional organizational reprofessional research: A model of person-organization fit Academy of Management Review, 14, 333–349 - Adkins, C.L., Ravlin, E.C., and Meglino, B.M (1992) Value congruence between co-workers and its relationship to work-related outcomes Paper presented at the Academy of Management Annual Meeting, Las Vegas, NV - Ash, S.R., Dineen, B.R and Noe, R.A (2002) A web of applicant attraction Person-organization fit in the context of web-based recruitment Journal of Applied Psychology, 87, 723-734 - Boxx, W R., Odom, R Y., and Dunn, M G (1991) Organizational values and value congruency and their impact on satisfaction, commitment, and cohesion: an Page 57 of 69 empirical examination within the public sector Public Personnel Management, 20 (1), 195-205 - Cable, D.M and Judge, J.A (1994) Pay preferences and job search decisions: A person-organization fit perspective Personnel Psychology, 7, 317-348 - Cable, D and Judge, T (1996) Person-organization fit, job choice decisions, and organizational entry Organizational Behavior and Human Decision Processes, 673, 294–311 - Cable, D and Judge, T (1997) Interviewers’ perceptions of person–organization fit and organizational selection decision Journal of Applied Psychology, 824, 546–561 - Kristof, A.L.(1996) Person-organization fit: An integrative review of its conceptualizations, measurement, and implications Personnel Psychology,49, 150 Page 58 of 69 APPENDIX A QUESTIONNAIRE: EMPLOYEE’S ORGANIZATIONAL COMMITMENT SURVEY Dear colleagues, I am Nguyen Ai from MBA OUM program Thank you for your support during the past time I would like to take your time to conduct my survey for final reports This questionnaire is designed to help me to understand employee commitment within the organization This is also your opportunity to tell me what you think of your job, both what I well and what I need to improve Feedback from this survey steers my thinking and actions and directly impacts on the improvements I make, so please make your voice heard The survey should take no more than 30 minutes of your time, and will be open until Saturday 21 November 2015 We would like to assure you that all individual responses will remain confidential In case you have any question regarding the survey, please call Nguyen Ai at quocai229@gmail.com or 093 271 4272 I appreciate your time and your suggestions Sincerely, HR manager Listed below is a series of statements that represent possible feelings that you might have about the organization for which you work With respect to your own feelings about the organization for which you are now working, please indicate the degree of your agreement or disagreement or frequency with each statement by ticking the box () next to the number that best matches your opinion Page 59 of 69 Strongly disagree Neither agree nor disagree Agree Disagree Strongly agree No Items I am willing to put in a great deal of effort beyond normally expected in order to help this organization be successful      I talk up this organization to my friends as a great organization to work for      I feel very loyalty to this organization      I would accept almost any types of job assignment in order to keep working for this organization      I find that my values and the organization’s values are very similar      I am proud to tell others that I am part of this organization      This organization really inspires the very best in me in the way of job performance      I am extremely glad that I chose this organization to work for over others I was considering at the time I joined      Often, I find it easy to agree with this organization's policies on important matters relating to its employees      10 For me, this is the best of all possible organizations for which to work      11 I feel I am being paid a fair amount for the work I      12 I feel satisfied with my chances for salary increases      13 Those who well on the job stand a fair chance of being promoted      Page 60 of 69 14 My supervisor is quite competent in doing his/her job      15 Many of our rules and procedures make doing a good job easy      16 I enjoy my co-workers      17 The organization values my contribution to its wellbeing      18 The organization strongly considers my goals and values      19 The organization would take care complaint from me      20 Help is available from the organization when I have a problem      21 The organization is willing to help me when I need a special favor      22 The organization cares about my opinions      23 I am told promptly when there is a change in policy, rules, or regulations that affects me      24 There are adequate procedures to get my performance rating reconsidered if necessary      25 I understand the performance appraisal system being used in this organization      26 Affirmative action policies have helped advance the employment opportunities in this organization      27 In general, disciplinary actions taken in this organization are fair and justified      28 I am not afraid to "blow the whistle" on things I find wrong with my organization      29 If I were subject to an involuntary personnel action, I believe my agency would adequately inform me of my grievance and appeal rights      Page 61 of 69 30 I am aware of the specific steps I must take to have a personnel action taken against me reconsidered      31 The procedures used to evaluate my performance have been fair and objective      32 In the past, I have been aware of what standards have been used to evaluate my performance      Responses are obtained on a 5-point Likert-type scale where = very poor fit and very good fit The respondent has to choose one option from these five alternative selections No Items 33 Values      34 Ethics      35 Goals and objectives      36 Attitudes      37 Interactions with co-workers      38 Work-family balance      39 Definition of career success      General information about yourself Gender  (1) Male  (2) Female Age  (1) Under 25 years old  (2) From 25 to 35 years old  (3) From 36 to 45 years old  (4) Above 45 years old Page 62 of 69 Education  (1) High school  (2) College  (3) Bachelor  (4) Master  (5) Ph.D  (6) Other…… Your position  (1) Officer/ staff  (2) Supervisor  (3) Manager  (4) Senior Manager Working seniority  (1) Under years  (2) From to 10 years  (3) From 11 to 20 years  (4) Above 20 years - End of questionnaire -Thank you for sharing your thoughts Page 63 of 69 APPENDIX B PRESENTATION OF BUSINESS RESEARCH METHODS Page 64 of 69 Page 65 of 69 Page 66 of 69 Page 67 of 69 Page 68 of 69 Page 69 of 69 [...]... Job Satisfaction on employee’s Organizational Commitment at DXG? - How are the effects of Perceived Organizational Support on employee’s Organizational Commitment at DXG? - How are the effects of Procedural Justice on employee’s Organizational Commitment at DXG? - How are the effects of Perceived Person-Organization Fit on employee’s Organizational Commitment at DXG? Page 16 of 69 Chapter 2: LITTERATURE... (7) The relationship between POS and Organizational Commitment - (8) The relationship between PJ and Organizational Commitment - (9) The relationship between POF and Organizational Commitment 2.1 Organizational Commitment Employee commitment to an organization has been defined in a variety of ways including an attitude or an orientation that links the identity of the person to the organization, a process... for employees; allowance for traditional days (1/1; 30/4; 2/9; 8/3; 20/10…),  Subsidiaries and Associates in Dat Xanh Group No Companies Control 1 Ha Thuan Hung 99.9% 2 Long Kim Phat 100% 3 Dat Xanh Mien Nam 51% 4 Dat Xanh Dong Nam Bo 51% 5 Dat Xanh Mien Bac 51% Page 11 of 69 No Companies Control 6 Dat Xanh Mien Trung 55% 7 Dong Bang Song Cuu Long 75% 8 ECI Construction 82% 9 Tam Thong Real Estate... personorganization fit affecting employee’s organizational commitment in Dat Xanh Group (DXG) The methodology specifically describes the research model, the construct, the research hypothesis, the measure of each construct, data collection process, and the procedure for the data analysis 3.1 Research model Job Satisfaction H1+ Perceived Organizational Support H2+ H3+ Procedural Justice Organizational Commitment. .. Job satisfaction relates significantly and positively to employee organizational commitment at DXG b) The relationship between POS and Organizational Commitment It appears that employees with higher levels of POS are likely to be more committed and possibly more willing to engage in extra role or organizational commitment (Organ, 1988) than are employees who feel that the organization does no value... employee organizational commitment at DXG d) The relationship between POF and Organizational Commitment An accurate understanding of the job requirements and the organization’s values has been shown to enhance people’s adjustment to their jobs as well as their subsequent level of satisfaction and organizational commitment (Posner, 1992) A person whose values match the operating values of the organization... and this job satisfaction leads to the organizational commitment Lambert et al (2005) also argued that perceptions of procedural justice have a greater impact on organizational commitment of employees than perceptions of distributive justice Page 27 of 69 2.9 The relationship between POF and Organizational Commitment Organizations must not discount applicants’ perceptions of the organization during... Person-Organization Fit Figure 0-5: Proposed Research Model of Organizational Commitment in DXG 3.1.1 Dependent Variables: - Organizational Commitment 3.1.2 Independent Variables: - Job Satisfaction - Perceived Organizational Support Page 29 of 69 - Procedural Justice - Perceived Person -Organizational Fit 3.2 Constructs - Key construct: Organizational Commitment (OC) - Other constructs:  Job Satisfaction... and experience employees but also have to incur more cost to recruit and train new staff It is therefore essential for the human resources department to identify factors affecting organizational commitment among employees at Dat Xanh Group 1.3 Purpose of the research The purpose of this research is to examine and approach whether items in terms of Job Satisfaction, Perceived Organizational Support,... to meet organizational demands (Kristof, 1996) Value congruence is an important form of fit because organizational values are fundamental components of organizational culture that affect employees' attitudes and behaviors (Chatman, 1989) Person-organization fit can be operationalized as an individual's goal congruence with organizational leaders and peers (Vancouver & Schmitt, 1991) An alternative approach ... Associates in Dat Xanh Group No Companies Control Ha Thuan Hung 99.9% Long Kim Phat 100% Dat Xanh Mien Nam 51% Dat Xanh Dong Nam Bo 51% Dat Xanh Mien Bac 51% Page 11 of 69 No Companies Control Dat Xanh. .. POS and Organizational Commitment - (8) The relationship between PJ and Organizational Commitment - (9) The relationship between POF and Organizational Commitment 2.1 Organizational Commitment. .. 69 ABBREVIATIONS DXG Dat Xanh Group HRM Human Resource Management SPSS Statistical Packages for the Social Science OC Organizational Commitment JS Job Satisfaction POS Perceived Organizational