RESEARCH PROJECT (BMBR5103) THE FACTORS INFLUENCING ORGANIZATIONAL COMMITMENT AT GRANT THORNTON VIET NAM COMPANY STUDENT’S FULL NAME STUDENT ID INTAKE ADVISOR’S NAME & TITLE : : : : TU TRUNG TIN CGS00018510 SEPTEMBER, 2014 NGUYEN THE KHAI, DBA December, 2015 Business Research Method Assignment ADVISOR’S ASSESSMENT Advisor’s signature Nguyen The Khai, DBA Page Business Research Method Assignment ACKNOWLEDGEMENTS No success has come without associated with the support During the period from the beginning of learning, I've received a lot of help from my lecturer, classmates and colleagues With deepest gratitude, I would like to send thank you to the International Training Institute of Hutech which organized for us to have access to MBA courses and perform the Research Project I sincerely thank Dr Nguyen The Khai has dedicated guided us through each classroom sessions as well as the creative practice in scientific research Without these instructions, I think my thesis is hard to be completed Again, I sincerely thank you I also would like to express my thanks to my colleagues who helped me with very useful information to this assignment Thanks all employees of Grant Thornton Vietnam Company for their precious comments and helps to collect data for this research The study is being conducted over a period of approximately weeks Initially, in practice, to learn about the field of creativity in scientific research, my knowledge is limited and much surprise Therefore, the inevitable gaps is a sure thing, I look forward to the valuable feedback of your teachers and the classmates to my knowledge in this field is excellent Page Business Research Method Assignment TABLE OF CONTENTS LIST OF FIGURE & LIST OF TABLE ABSTRACT I INTRODUCTION OF GRANT THORNTON VIETNAM 1.1 Over view of the company 1.2 Type and line of business 10 1.3 Organisation Structure 12 II 12 II RESEARCH INTRODUCTION 12 2.1 Problem statement 12 2.2 Purpose of the study 13 2.3 Purpose of the research 13 2.4 Research objective 13 2.5 Research questions 14 CHARPTER II: LITERATURE REVIEW 15 I ORGANIZATIONAL COMMITMENT 15 II.OVERALL JOB SATISFACTION 17 III.PECEIVED PERSON – ORGANIZATION FIT 19 IV.SUPERVISORY SUPPORT 21 V.FAIRNESS IN SKILL-BASED PAY 23 CHARPTER III: RESEARCH MODEL AND HYPOTHESES 24 I RESEARCH MODEL 24 II RESEARCH HYPOTHESES 26 2.1 Summary of hypotheses 26 2.2 Instrument 28 2.3 Research Participants 30 2.4 Procedure for Data Collection and Analyze 30 CHARPTER IV: ANALYSIS AND RESULTS 32 I DEMOGRAPHIC CHARACTERISTICS OF THE RESPONDENTS 32 II RELIABILITY ANALYSIS 34 III DESCRIPTIVE ANALYSIS 35 IV CORRELATION OF ALL VARIABLES STATISTICS 35 V HYPOTHESIS TESTING 37 CHARPTER V: DISCUSSION AND CONCLUSIONS 39 I DISCUSSION 39 1.1 Recommendations for Overall Job Satisfaction 39 1.2 Recommendations for Perceived Person – Organization Fit 39 1.3 Recommendations for Supervisory Support 40 1.4 Recommendations for Fairness in Skill-Based Pay 41 II SIGNIFICANCE OF RESEARCH 41 III LIMITATION OF THE STUDY 42 IV CONCLUSIONS 43 APPENDIX 49 Page Business Research Method Assignment APENDIX 1: QUESTIONNAIRE 49 APENDIX 2: PRESENTATION SLIDES 55 Page Business Research Method Assignment LIST OF FIGURE Figure 1: Organizational Chart…………………………………………12 Figure 2: Hypothesized Research Model……………………………….24 Figure 3: A summary of frequency analysis for qualitative variables ,33 LIST OF TABLE Table 1: Summary of Cronbach’s Alpha of the variables…………….34 Table 2: Descriptive Statistics………………………………………….35 Table 3:Summary of Correlations of all variables…………………….36 Table 4: Model Summary of all hypotheses………………………… 37 Table 5: Coefficients of all hypotheses……………………………… 37 Page Business Research Method Assignment ABSTRACT Nowadays, the success of an organization is strongly believed to stem from individuals’ contributions and its fellows are precious assets of an organization An organization seems to be a small world with various types of people of dissimilar viewpoints, cultures and lifestyles Organizational commitment has a great impact on the successful performance of an Organization Thus, how to make employees willingly engage and devote to the collective objectives is one of the most complicated challenges of an organization This is especially true for Grant Thornton Vietnam, one of Big five international auditing firm in the Audit, Tax & Finance advisory and assurance services in Vietnam Grant Thornton Vietnam Company is currently facing challenges is in recently some employees have intention to leave Grant Thornton Vietnam after one or two years working Accordingly, identifying the factors affecting the levels of Organizational Commitment to attract employee’s cooperation and contributions in the long time is critical Being able to deal with this mission will bring about a desirable success for Grant Thornton Vietnam in the human resource management This study will be tested by collecting data from 250 Grant Thornton Vietnam’s employees in the Head Office and Branch The reliability analysis, descriptive analysis, and hypothesis testing were employed to analyze the data The purpose of the study is to explore factors affecting to the Organizational Commitment of employees in Grant Thornton Vietnam through a questionnaire Following the analysis process, factors collected are Overall Job Satisfaction, Perceived Person – Organization fit, Supervisory Support, and Fairness In Skill-Based Pay on Organizational Commitment The interpretation of collected data will be followed by the researcher’s strategic recommendations related to Organizational Commitment In spite of unavoidable limitations, the research outcomes are expected to be a possibly constructive source for Grant Thornton Vietnam to refer in the Company’s strategies to enhance the Organizational Commitment of the employees Page Business Research Method Assignment CHAPTER I: INTRODUCTION I INTRODUCTION OF GRANT THORNTON VIETNAM 1.1 Over view of the company Founded in Chicago in 1924, Grant Thornton LLP (Grant Thornton) is the U.S member firm of Grant Thornton International Ltd, one of the world’s leading organizations of independent audit, tax and advisory firms Grant Thornton has revenue in excess of $1.3 billion and operates 57 offices across the United States with more than 500 partners and 6,000 employees Grant Thornton Vietnam is an independent member firm of Grant Thornton International and was established in 1993 Initially it was a joint venture with Concetti In 1997, Grant Thornton Vietnam was converted to a 100% foreign owned enterprise, and opened a branch in Ho Chi Minh City It was a huge step In 1998, the Company officially became a full member of Grant Thornton International The firm's name was changed to Grant Thornton Vietnam Limited in 1999 In 2007, Grant Thornton Vietnam proudly met the criteria to audit listed companies In 2013, Grant Thornton Vietnam more than excited to celebrate our 20 years Anniversary in Vietnam It has been a gratifying and successful endeavour as Grant Thorton Vietnam have grown from our first days in 1993 to who Grant Thorton Vietnam are today Also in this year, Grant Thornton Vietnam has been listed as the only foreign invested firm that has been permitted to determine the value of 100-per-cent state-owned enterprises by the Ministry of Finance Vietnam 2014 has marked another milestone From 1st July 2014, Grant Thornton Vietnam Ltd and Nexia ACPA Auditing & Consulting Co Ltd ("ACPA") are to merge officially The merged firm will be part of the Grant Thornton global network and will practice under the Grant Thornton name The merger brings together a leading professional services firm in Vietnam with an excellent combination of professional team of 14 partners and more than 300 professional staff in offices located in Hanoi (Address: 18th Floor, Hoa Binh International Office Building, 106 Hoang Page Business Research Method Assignment Quoc Viet Street, Cau Giay District) and Ho Chi Minh City (Address: 28th, Floor Saigon Trade Center, 37 Ton Duc Thang Street, District 1) Company’s vision: "Empowered people providing bold leadership and distinctive Client service worldwide" Company’s value: - Collaboration Provide distinctive Client service to all Grant Thornton Clients regardless of origin Share knowledge, opportunity and best practices for the benefit of our Clients and the development of our people Bring a global perspective to our advice and our actions Cooperate with others to get things done and achieve results Work together to bring resources and expertise to serve all Clients Be proud of our global identity, and make it part of our everyday language - Leadership Take a leadership position on issues of importance to our profession, the firm and the public interest Lead and communicate with clarity and confidence Exercise initiative to make a positive difference Have the courage to live our values without compromise in word and action; commit to doing what is right Accept challenges to be the best we can be, and inspire others to reach their full potential - Excellence Be better tomorrow than we are today, individually and collectively Continue investment in our own and others' development Attain the highest level of competence in our expertise Develop leading-edge solutions that set the benchmark in our profession Page Business Research Method Assignment Achieve the highest standards of quality and innovation in everything we - Agility Understand the world in which we live and work, and anticipate how changes might affect our various stakeholders Create and communicate clear expectations, define roles and responsibilities and empower each member of the team Ensure that the right people are doing the right work Thrive in change; understand the "why" and help otherx`s to so React positively and respond quickly to changes in direction Make objective, timely decisions, and act on them promptly - Respect Seek first to understand and then be understood Treat others as we would like to be treated Consider, with an open mind, the perspective and opinion of others Give and seek regular, open and honest feedback so that we improve and grow at all levels Acknowledge and promote the mindset that work is only one part of life Express genuine appreciation for others' contributions Resolve differences promptly - with compassion and understanding - Responsibility Make decisions that look to the long term and consider the wider impact, in addition to our immediate objectives Act with integrity; be transparent in carrying out our duties, accept accountability for our results and use our influence wisely Honor our commitments; what we say we will do, when we say we will it Speak up if something "feels wrong" Page Business Research Method Assignment REFERENCE - Bretz, R D , Jr , & Judge, T A (1994) Person-organization fit and the theory of work adjustment: Implications for satisfaction, tenure, and career success Journal of Vocational Behavior, 44, 32-54 Items were taken from Table 1, p.39 Copyright © 1994 by Academic Press Reproduced with permission - Bretz, R D , Jr , & Judge, T A (1994) Person-organization fit and the theory of work adjustment: Implications for satisfaction, tenure, and career success Journal of Vocational Behavior, 44, 32-54 - CA O'Reilly, J Chatman (1986) Journal of applied psychology 71 (3), 492 - CA O'Reilly, J Chatman, DF Caldwell (1991) Academy of management journal 34 (3), 487-516 - Caplan, R D , Cobb, S , Frence, J R P , Van Harrison, R , & Pinneau, S R (1980) Job demands and worker health Ann Arbor: University of Michigan, Institute of Social Research Items were taken from Appendix E, pp.238-239 Copyright @ 1980 Reproduced with permission - Chuang-Liao (2010) Strategic Human Resource Management in Service Context: Taking Care Of Business By Taking Care Of Employees And Customers, Personnel Psychology - Cohen, A (1993) Organizational Commitment and turnover: A metanalysis Academy of Management Journal Review, 36, 1140-1157 Page 44 Business Research Method Assignment - Dall L Fields (2002), Taking a Measure of Work, Sage Publications - DF Caldwell, JA Chatman, CA O'Reilly (1990) Journal of occupational Psychology 63 (3), 245-261 - Dwyer, D J , & Ganster, D C (1991) The effects of job demands and control on employee attendance and satisfaction Journal of Organizational Behavior, 12, 595- 608 - Edwards, J R (1991) Person-job Fit: A conceptual integration, literature review, and ethodological critique In C L Coop & I T Robertson (Eds ), International review of industrial and organizational psychology, New York: John Wiley - Eisenberger, R„ Cummings, J., Armeli, S., Lynch, P (1997) Perceived organizational support, discretionary treatment and job satisfaction Journal of Applied Psychology, 82(5), 812-820 - Eisenberger, R , Fasolo, P , & David La Mastro, V (1990) Perceived organizational support and employee diligence commitment, and innovation Journal, Applied Psychology, 75(1), 51 -59 - Greenhaus, J H , Parasuraman, A , & Wormley, W M (1990), Effects race on organizational experiences, job performance evaluations, and care outcomes Academy of Management Journal, 33(1), 64-86 © 1990 In Academy of Management Items were taken from the appendix, pp.85-8 Reproduced with permission of Academy of Management in the format text book via Copyright Clearance Center Page 45 Business Research Method Assignment - Hutchinson, S , Valentino, K E , & Kirkner, S L (1998) What works for the gander does not work as well for the goose: The effects of leader behavior Journal of Applied Social Psychology, 28(2), 171-182 - Joolideh F & Yeshodhara K (2009) Organizational commitment among high school teachers of India and Iran Journal of Educational Administration, 47 (1), 127-136 - Khai Nguyen (2014), Materials in OUM MBA course, Business Research Methods - Lee, C Law, K S , & Bobko, P (1998) The importance of justice on pay effectiveness: A two-year study of a skill - based pay plan Journal of Management, 25(6), 851-873 Items were taken from the appe p.871 © 1998, reprinted with permission of Elsevier Science - Mansour-Cole, D M , & Scott, S G (1998) Hearing it through the grapevine: The influence of source, leader - relations, and legitimacy on survivors’ fairness perceptions Personnel Psychology, 51(1), 25-54 - Meyer, J.P and Allen, N.J (1991), A Three-Component Conceptualization of Organizational Commitment, Human Resource Management Review, no 1, pp 61–89 - Meyer, J P & Allen, N.J (1997) Commitment in workspace Thousand Oaks, CA: Sage - Meyer, J P., Allen, N.J & Smith, C A (1993) Commitment to organizations and occupations: Extensions and tests of a three- Page 46 Business Research Method Assignment component conceptualization Journal of Applied Psychology, 78, 538551 - Morgan, R.M and Hunt S.D (1994), The Commitment-Trust Theory of Relationship - Eisenberger, Robert; Fasolo, Peter; Davis-LaMastro, Valerie (1990) Perceived organizational support and employee diligence, commitment, and innovation Journal of Applied Psychology, Vol 75(1) - Mowday, R T., Porter, L W & Steers, R M (1982) Employeeorganization linkages: The psychology of commitment, absenteeism, and turnover New York: Academic Press - Johnason, P (2009) HRM in changing organizational contexts In D G Collings & G Wood (Eds.), Human resource management: A critical approach (pp 19-37) London: Routledge - Wiener, Y (1982) Commitment in organizations: A normative view Academy of Management Review, 7, 418-428 - Zikmund, Babin, Carr, Griffin (2013) Business Research Methods, Ninth Edition - http://en.wikipedia.org/wiki/ - www.businessdictionary.com - http://www.gt.com.vn/ - Other internal materials from Grant Thornton Vietnam Page 47 Business Research Method Assignment APPENDIX APENDIX 1: QUESTIONNAIRE Dear my colleagues, My name’s Tu Trung Tin I’m a student of Open University Malaysia From my Master of Business Administration courses, I am undertaking a research project on employees’ commitments towards my organization Please remember that you will fill out a short questionnaire that aims to improve the organizational commitment of employees Your answers will remain confidential and used for survey purpose only Your name will not be written on the questionnaire or be kept in any other records When the results of the study are reported, you will not be identified by name or any other information that could be used to infer your identity I would like to say thank you for your time to complete my survey For any inquiries, please not hesitate to contact me as below: - Hand phone: 0938.364.134 - E-mail: trungtintu128@gmail.com Thank you very much Please mark the cycle (O) on the sentences for your choice Page 49 Business Research Method Assignment PART I: ORGANIZATIONAL COMMITMENT Please indicate the degree of your agreement or disagreement with each statement by circling one of the five alternatives below each statement Responses are obtained using a point Likert - type scale where = disagree, = slightly disagree, = neither agree nor disagree, = slightly agree, and 5= agree Strongly disagree Strongly agree Statement 5 5 5 5 5 I am willing to put in a great deal of effort beyond that 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 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 chose this organization to work for over others I was considering at the time I joined I really care about the fate of this organization For me, this is the best of all possible organizations for which to work Page 50 Business Research Method Assignment PART II: OVERALL JOB SATISFACTION Please indicate the degree of your agreement or disagreement with each statement by circling one of the five alternatives below each statement Responses are obtained using a point Likert - type scale where = disagree, = slightly disagree, = neither agree nor disagree, = slightly agree, and 5= agree Strongly disagree Strongly agree Statement 10 My job is like a hobby to me 11 My job is usually interesting enough to keep me from getting bored 12 It seems that my friends are more interested in their jobs (R) 13 I consider my job rather unpleasant (R) 14 I enjoy my work more than my leisure time 15 I am often bored with my job (R) 16 I feel fairly well satisfied with my present job 17 Most of the time I have to force myself to go to work (R) 18 I am satisfied with my job for the time being 19 I feel that my job is no more interesting than others I could get (R) 20 I definitely dislike my work (R) 21 I feel that I am happier in my work than most other people Page 51 5 5 5 5 5 5 Business Research Method Assignment 22 Most days I am enthusiastic about my work 23 Each day of work seems like it will never end (R) 24 I like my job better than the average worker does 25 My job is pretty uninteresting (R) 26 I am disappointed that I ever took this job (R) 27 I find real employment in my work PART III: PERCEIVED PERSON-ORGANIZATION FIT Please assess the level of an employee’s perception of your fit with your organization on each of the following statements by circling the numbers through where = not at all, = Only a little, = Some, = A lot and = Completely Please circle only one number that is most suitable with your response Not at all Statement Completely 5 5 28 To what degree you feel your values “match” or fit this organization and the current employees in this organization? 29 My values match those of the current employees in this organization 30 Do you think the values and “personality” of this organization reflect your own values and personality? Page 52 Business Research Method Assignment PART IV: SUPERVISORY SUPPORT Please indicate the degree of your agreement or disagreement with each statement by circling one of the five alternatives below each statement Responses are obtained using a point Likert - type scale where = disagree, = slightly disagree, = neither agree nor disagree, = slightly agree, and 5= agree Strongly disagree Strongly agree Statement 31 My supervisor makes sure I get the credit when I 5 5 5 5 5 accomplish something substantial on the job 32 My supervisor gives me helpful feedback about my performance 33 My supervisor gives me helpful advice about improving my performance when I need it 34 My supervisor supports my attempts to acquire additional training on education to further my career 35 My supervisor provides assignments that give me the opportunity to develop and strengthen new skills 36 My supervisor assigns me special projects that increase my visibility in the organization 37 My supervisor takes the time to learn about my career goals and aspirations 38 My supervisor keeps me informed about different career opportunities for me in the organization 39 My supervisor cares about whether or not I achieve my goals Page 53 Business Research Method Assignment PART V: FAIRNESS IN SKILL-BASED PAY Please indicate the degree of your agreement or disagreement with each statement by circling one of the five alternatives below each statement Strongly disagree Strongly agree Statement 40 Supervisors a good job of certifying employees for 5 5 skill-based raises 41 The skill-based pay certification are a fair test of employee ability to perform a task 42 If an employee really knows how to perform the tasks that make up a skill level, the employee will be able to pass the certification tests for that skill level 43 Supervisors a good job of certifying employees for skill-based raises Personal Information Gender Male Female Age Under 25 years old From 25 to 35 years old From 36 to 45 years old Above 45 years old Academic degree Colleges Degree Bachelor Degree Master Degree Degree Working seniority Under years From to 10 years From 11 to 20 years Above 20 years Working position Officer/ staff Supervisor Manager Senior Manager THANK YOU! Page 54 Doctoral Business Research Method Assignment APENDIX 2: PRESENTATION SLIDES Page 55 Business Research Method Assignment Page 56 Business Research Method Assignment Page 57 Business Research Method Assignment Page 58 Business Research Method Assignment Page 59 [...]... organizations proactively hire employees based on their fit with organizations' cultures (Bowen, Ledford, and Nathan, 1991) So, it is clear that Perceived person – organization fit takes an impact on individual commitment to his/her organization Hypotheses 3: Supervisory Support is positive with Organizational Commitment at Grant Thornton Vietnam In organizational commitment literature the scope of the. .. orientation that links the identity of the person to the organization, a process by which the goals of the organization and those of the individual become congruent, an involvement with a particular organization, the perceived rewards associated with continued participation in an organization, the costs associated with leaving, and normative pressures to act in a way that meets organizational goals... of intrinsic motivation (Statt, 2004) The term job satisfaction refers to the attitude and feelings people have about their work Positive and favorable attitudes towards the job indicate job satisfaction Negative and unfavorable attitudes towards the job indicate job dissatisfaction (Armstrong, 2006) Job satisfaction is the collection of feeling and beliefs that people have about their current job... Division Figure 1- Organizational Chart II RESEARCH INTRODUCTION 2.1 Problem statement The Company is currently facing challenges that some employees have intention to leave Grant Thornton Vietnam after one or two years working and the rest do not commit to working with Grant Thornton Vietnam for long time Accordingly, identifying the factors affecting the levels of Organizational Commitment to attract employee’s... objective of this study, these research questions have been formulated: 1 How Overall Job Satisfaction influences on Organizational Commitment? 2 How is the impact Perceived Person – Organization Fit on Organizational Commitment? 3 How does Supervisory Support take influence on Organizational Commitment? 4 What is the impact of Fairness in Skill-based Pay on Organizational Commitment? Page 14 Business... AND HYPOTHESES I RESEARCH MODEL The primary goal of this study is to investigate the effects of Overall Job Satisfaction, Person – Environment Fit, Supervisory Support and Fairness In Skill-Based Pay on Organizational Commitment in Grant Thornton Vietnam The methodology specifically described the research model, the research instrument, the research hypothesis, data collection process, and the procedure... LITERATURE REVIEW I ORGANIZATIONAL COMMITMENT Organizational Commitment is defined by business dictionary as the strength of feeling of responsibility that an employee has towards to mission of the organization According to Meyer & Allen (1997), Organizational Commitment refers to the employee commitment to an organization which being defined in a variety of ways including an altitude or an orientation... to ensure that employees give the high commitment, employer should give high job satisfaction that should get by the employees However, the top management of Grant Thornton Vietnam Page 12 Business Research Method Assignment Company has little understanding of how to satisfy their employees and how this employee’s satisfaction level influences their commitment to the company With regard to this problem,... Key construct: Organizational Commitment (OC) Other constructs: Overall Job Satisfaction (OS) Perceived Person - Organization Fit (PO) Supervisory Support (SS) Fairness in Skill-Based Pay (FP) Page 25 Business Research Method Assignment II RESEARCH HYPOTHESES 2.1 Summary of hypotheses Hypotheses 1: Overall Job Satisfaction is positive with Organizational Commitment at Grant Thornton Vietnam Researchers... paradigm Job satisfaction has been found to be an important area of research because one of the top reasons individuals give for leaving a job is dissatisfaction Much of the literature on the relationship between commitment and satisfaction with one’s job indicates that if employees are satisfied they develop stronger commitment to their work Kalleberg (1990) studied work attitudes of workers in the USA ... is positive with Organizational Commitment at Grant Thornton Vietnam In organizational commitment literature the scope of the studies were elaborated and researchers confirmed that employees might... the Company officially became a full member of Grant Thornton International The firm's name was changed to Grant Thornton Vietnam Limited in 1999 In 2007, Grant Thornton Vietnam proudly met the. .. among employees in Grant Thornton Vietnam The main purpose of this research is to investigate the reason why the organizational commitment of employees in Grant Thornton Vietnam has been reducing