Organizational commitment at KIDO (vietnam)

MASTER OF BUSINESS ADMINISTRATION INTERNATIONAL PROGRAM  RESEARCH PROJECT (BMBR5103) ORGANIZATIONAL COMMITMENT AT KIDO (VIETNAM) STUDENT’S FULL NAME : VO NGOC KHANH PHUONG STUDENT ID : CGS00019374 INTAKE : MARCH 2015 ADVISOR’S NAME & TITLE : DR KHAI NGUYEN Ho Chi Minh City, July 2016 ADVISOR’S ASSESSMENT ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ADVISOR’S SIGNATURE ………………………………………………………………………………………………………… (July 2016) ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… NGUYEN THE KHAI (DBA) ACKNOWLEDGMENTS I would like to express my profound gratitude and deep regards to DR KHAI NGUYEN for his supervision, and constant guidance in this report His guidance and help will encourage me along this path of live Also, I’d like to thank KIDO group and the participants in my survey, who have willingly shared their precious time during the process of interviewing I would like to thank my loved ones, who have supported me throughout entire process, both by keeping me harmonious and helping me putting pieces together I will be grateful forever for your love Once again, I thank very much to all Vo Ngoc Khanh Phuong Student CONTENTS ABSTRACT PART ONE INTRODUCTION 1 About KIDO group Organization structure 13 Research problem statement 18 Research objective 19 Research scope 19 Significance of research 20 PART TWO LITERATURE REVIEW Definition of Constructs 21 21 Organizational Commitment 21 Supportive and Non-Controlling Supervision 23 Supervisory Support 24 Role Justice 24 Distributive, Procedural, and Interactive Justice 24 Argument for the relationship among the constructs 26 Maslow’s theory 26 Alderfer’s ERG theory 30 Adams’s Equity theory 31 Hackman and Oldham's Job Characteristics 32 Meyer and Allen’s three-component model 34 Albert Bandura’s Social Cognitive theory 37 10 PART THREE 11 12 PART FOUR 13 14 15 PART FIVE Hypotheses 41 Research model 42 METHODS Data collection 42 42 Design template scale 42 Data collection progress 50 Data analysis 51 RESULTS Cronbach’s Alpha 52 52 Cronbach’s Alpha standard applied 52 Cronbach’s Alpha of constructs 52 Statistics information 54 Descriptive statistics 54 Correlation statistics 54 Hypotheses testing 55 Hypothesis proposed (H1) 56 Hypothesis proposed (H2) 56 Hypothesis proposed (H3) 57 Hypothesis proposed (H4) 58 CONCLUSIONS 60 16 Discussion 60 17 Limitation of research 61 18 Recommendation 61 REFERENCES 63 63 APPENDIX Appendix 1: Survey 66 Appendix 2: Presentation 73 FIGURE & TABLE FIGURE Figure Maslow's hierarchy of needs 27 Figure Alderfer’s ERG theory 30 Figure Hackman and Oldham's Job Characteristics 33 Figure Research model of Job Satisfaction 42 Table Organizational Commitment Scale 43 Table Supportive and Non-Controlling Supervision Scale 44 Table Supervisory Support Scale 44 Table Role Justice Scale 47 Table Distributive, Procedural, and Interactive Justice Scale 48 Table Time table for data collection progress 51 Table Cronbach’s Alpha - Internal Consistency 52 Table Cronbach’s Alpha of Organizational Commitment 52 Table Cronbach’s Alpha of Supportive and Non-Controlling Supervision TABLE 53 Table 10 Cronbach’s Alpha of Supervisory Support 53 Table 11 Cronbach’s Alpha of Role Justice 53 Table 12 Cronbach’s Alpha of Distributive, Procedural, and Interactive Justice 53 Table 13 Descriptive statistics 54 Table 14 Correlation statistics 54 Table 15 Model summary of H1 56 Table 16 Coefficients of H1 56 Table 17 Model summary of H2 57 Table 18 Coefficients of H2 57 Table 19 Model summary of H3 57 Table 20 Coefficients of H3 58 Table 21 Model summary of H4 58 Table 22 Coefficients of H4 58 Business Research Methods P a g e / 77 ABSTRACT The purpose of this research is to test the relationship between variables in the model such as Supportive and Non-Controlling Supervision; Supervisory Support; Role Justice; Distributive, Procedural, and Interactive Justice with Organizational Commitment The empirical study result was conducted in KIDO group with 500 employees And SPSS software is a tool that is used to analysis data in this research The collected data were analyzed through factor analysis, Cronbach’s alpha, descriptive statistics, correlation, and multiple regression analysis The research showed that there are four factors influencing Organizational Commitment are Supportive and Non-Controlling Supervision; Supervisory Support; Role Justice; Distributive, Procedural, and Interactive Justice Moreover, the research provides some recommendations implications for managers to raise the level of commitment with organization of the employees Finally, the research also point out the limitation and future directions in the same research Key word: Organizational Commitment; Supportive and Non-Controlling Supervision, Supervisory Support; Role Justice; Distributive, Procedural, and Interactive Justice and KIDO group Student: Vo Ngoc Khanh Phuong (ID:19374) 111111115838) Business Research Methods P a g e / 77 PART ONE: INTRODUCTION About KIDO group KIDO CORPORATION at a glance  Head office 138-142 Hai Ba Trung, Dakao Ward, District 1, HCMC, Vietnam  Founders The company was founded by Kim Thanh Tran, Le Nguyen Tran, Buu Linh Vuong, Ngoc Xiem Vuong and Ching Hua Wang in 1993  Date of 1993 establishment  Scope of Work KIDO Group Corp is engaged in production of confectionery, purified water, and fruit juice; and processing agricultural products and foods It is also engaged in selling & purchasing agricultural products and foods, industrial Student: Vo Ngoc Khanh Phuong (ID:19374) 111111115838) Business Research Methods P a g e / 77 products, and fabric  Market capitalization 8,020,476 Tr.VND  Number of 7,741 employees  Stock exchange HOSE (Ho Chi Minh Stock Exchange, Vietnam) Kinh Do Corporation (Vietnamese: Công ty Kinh Đô, KDC) (KINHDO:VN, KDC:VN) is a business group of Vietnam with an emphasis on food production Main offices of the company are located in Ho Chi Minh City Kinh Do was established in 1993 and has gone through 17 years of formation and development Up to now, Kinh Do has become a system of corporations in the field of foodstuff including: cake, candy, beverage, ice-cream, and products from milk The development strategy of Kinh Do is to maintain as one leading foodstuff group in Vietnam and orient to become a multi-sector group including: foodstuff, real estate, finance and retail in order to ensure the sustainable development in the future From the size of only 70 staffs at the initial establishment, up to now, Kinh Do has total staff of over 7,741 persons Products under the Kinh Do trademark are selling in all provinces through a diversified distribution system nationwide including 524 distributors, 31 Kinh Do Bakery shops and 200,000 retail outlets as well as franchised distribution systems with a growth rate of 30%/year The products of Kinh Do have Student: Vo Ngoc Khanh Phuong (ID:19374) 111111115838) Business Research Methods P a g e / 77 been sold to 35 countries; particularly Kinh Do has conquered the most difficult customers such as Japan, USA, France, Germany and Singapore, etc… 30/06/2015, Having sold 80% of its confectionery business to Mondelez International for around US$370 million, Kinh Do Corporation (KDC) has changed its name into KIDO Corporation, effectively abandoning its core confectionery operations Shareholders agreed on the company name change but keeping the stock code intact, KDC A new chapter of KIDO begun as it transitioned away from the confectionary business and established the KIDO Group in October 2015 as a Food & Flavor company Scope business Kido is diversified into several fields of interest, listed along with significant subsidiary companies:  Food, primarily confections and soft drinks, are manufactured and distributed by the following:  Kinh Do Corporation  Binh Duong Kinh Do Corporation  North Kinh Do Food Joint Stock Company  Ki Do Corporation - ice cream and frozen yogurt  Kinh Do Saigon  Vinabico Corporation - confectionary  Finance and investment: Kinh Do Investment Corporation  Real estate: Kinh Do Land Student: Vo Ngoc Khanh Phuong (ID:19374) 111111115838) Business Research Methods P a g e 63 / 77 REFENRENCES William G Zikmund (2013) Business Research Methods 13th McGraw-Hill/Irwin Maslow A H (1943) Theory of Human Motivation Psychological Review, 370-396 Kreitner R & Kinicki A (2007) Organizational Behavior 7th McGraw-Hill/Irwin Robbins, Stephen P (2002) Organizational Behavior 10th Pearson Gary Dessler (2013) Human Resource Management 13th McGraw-Hill/Irwin Dail L Fields (2002) Taking the measure of work: a guide to validated scales for organizational research and diagnosis Regent University Thomas S Bateman, Scott A Snell (2013) Management - Leading & Collaborating in a Competitive World 10th McGraw/Hill Bandura, A (1997) Self-efficacy: The exercise of control New York: W.H Freeman Bandura, A (1986) Social Foundations of Thought and Action Englewood Cliffs, NJ: Prentice-Hall Bandura, A (1973) Aggression: A Social Learning Analysis Englewood Cliffs, NJ: Prentice-Hall Bandura, A (1977) Social Learning Theory New York General Learning Press Bandura, A (1969) Principles of Behavior Modification New York: Holt, Rinehart & Winston Bandura, A & Walters, R (1963) Social Learning and Personality Development New York: Holt, Rinehart & Winston Miller, N & Dollard, J (1941) Social Learning and Imitation New Haven, NJ: Yale University Press Student: Vo Ngoc Khanh Phuong (ID:19374) 111111115838) Business Research Methods P a g e 64 / 77 Cianci R et al (2003) “Maslow's hierarchy of needs: Does it apply in a collectivist culture” Journal of Applied Management and Entrepreneurship (2): 143-161 Kenrick D T, Griskevicius V, Neuberg S L, Schaller M (2010) “Renovating the pyramid of needs: Contemporary extensions built upon ancient foundations” Perspectives on Psychological Science (3): 157-163 C.A Arnolds and C Boshoff (2002) “Compensation, esteem valence and job performance: an empirical assessment of Alderfer's ERG theory” The International Journal of Human Resource Management Harrell, Adrian M, Stahl, Michael J (1981) “A behavioral decision theory approach for measuring McClelland's trichotomy of needs” Journal of Applied Psychology, Vol 66 (2), 242-247 Robert J House and Lawrence A Wigdor (2006) “Herzberg's dual-factor theory of job satisfaction and motivation: A review of the evidence and a criticism” Personnel Psychology, Vol 20 (4), 369-390 Management (2014) Retrieval from http://management.about.com/ Management of Forbes (2014) Retrieval from http://www.forbes.com/management/ Basic management models and theories associated with motivation and leadership and be able to apply them to practical situations and problems (2014) Retrieval from http://www.healthknowledge.org.uk/public-health-textbook/organisationmanagement/5c-management-change/basic-management-models Historical and contemporary theories of management (2014) Retrieval from http://managementhelp.org/management/theories.htm Student: Vo Ngoc Khanh Phuong (ID:19374) 111111115838) Business Research Methods P a g e 65 / 77 Giới thiệu tổng quát tập đoàn KIDO group (2015) Retrieval from https://www.kdc.vn/ Lĩnh vực hoạt động tập đoàn KIDO group (2014) Retrieval from http://baodatviet.vn/kinh-te/doanh-nghiep/kido-group-buoc-chuyen-minh-cua-kdc3274831/ Hoạt động xã hội, cộng đồng, môi trường KIDO group (2014) Retrieval from http://123doc.org/document/56477-gioi-thieu-chung-ve-cong-ty-kido.htm The End Student: Vo Ngoc Khanh Phuong (ID:19374) 111111115838) Business Research Methods P a g e 66 / 77 APPENDIX Appendix 1: Survey QUESTIONNAIRE Dear Mr / Ms, My name is Vo Ngoc Khanh Phuong I’m a student of MBA Collaboration Program at Open University Malaysia and Ho Chi Minh City University of Technology I am conducting the research for my thesis My research thesis is about: Organizational Commitment at KIDO company I would like to look for your help by answering the following questionnaire All of your information will be strictly confidentially kept and be solely used for the purpose of my studying Your value time and feedback are extremely useful and meaningful to my fulfillment of my graduation thesis Thank you very much for your very kindly response to this questionnaire It is highly appreciated If you need any information related to this questionnaire, would you please call me at my mobile number 84.917857379 or contact with me through my email at bettyphuong2010@yahoo.com Thank you very much! Student: Vo Ngoc Khanh Phuong (ID:19374) 111111115838) Business Research Methods P a g e 67 / 77 QUESTIONAIRE 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 Strongly disagree Strongly agree Statement 11 12 I feel loyalty to this organization 13 I would take almost any job to keep working for this organization 15 I am proud to be working for this organization 16 I would turn down another job for more pay in order to stay with this organization 5 5 5 5 I talk up this organization to my friends as a great organization to work for 18 I find that my values and the organization’s values are very similar 17 I am willing to work harder than I have to in order to help this organization succeed 14 This organization really inspires the very best in me in the way of job performance Student: Vo Ngoc Khanh Phuong (ID:19374) 111111115838) Business Research Methods P a g e 68 / 77 PART II: SUPPORTIVE AND NON- CONTROLLING SUPERVISION 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 19 My supervisor helps me solve work- related problems 20 My supervisor encourages me to develop new skill 5 5 5 5 21 My supervisor keeps informed about how employees think and feel about things 22 My supervisor encourages employees to participate in important decisions 23 My supervisor praises good work 24 My supervisor encourages employees to speak up when they disagree with a decision 25 My supervisor rewards me for good performance 26 My supervisor does not always seem to be around checking on my work 27 My supervisor does not tell me what shall be done and how it shall be done 28 My supervisor gives me a chance to make important decisions on my own Student: Vo Ngoc Khanh Phuong (ID:19374) 111111115838) Business Research Methods P a g e 69 / 77 PART III: SUPERVISORY SUPPORT Please indicate how much you agree or disagree with each of following statements using the numbers through where = Strongly Disagree, = Disagree, = Neutral, = Agree and = Strongly Agree Please circle only one number that is most suitable with your response Strongly disagree Statement Strongly agree 5 5 5 5 29 My supervisor takes the time to learn about my career goals 30 and aspirations My supervisor cares about whether or not I achieve my goals opportunities for me in the organization 31 My supervisor keeps me informed about different career opportunities for me in the organization 32 My supervisor makes sure I get the credit when I accomplish something substantial on the job 33 My supervisor gives me helpful feedback about my performance 34 My supervisor gives me helpful advice about improving my performance when I need it 35 My supervisor supports my attempts to acquire additional training, or education to further my career 36 My supervisor provides assignments that give me the Student: Vo Ngoc Khanh Phuong (ID:19374) 111111115838) Business Research Methods P a g e 70 / 77 opportunity to develop and strengthen new skills 37 My supervisor assigns me special projects that 5 increase my visibility in the organization 38 My supervisor is willing to listen to my personal problems PART IV: ROLE JUSTICE Please give your most suitable response to each of the following statements by circling the numbers through where 1= the affected individual would respond very unfairly, 5= the affected individual would respond very fairly Statement 5 5 39 One of your role senders is negatively affected because you were not informed of your responsibilities, or you were not told what exactly was expected of you 40 One of your role senders is negatively affected because you had to satisfy contradictory requests, or to work with guidelines which were incompatible with one another 41 One of your role senders is negatively affected because your job required you to work too fast, or to complete an assignment without the needed time to it properly 42 One of your role senders is negatively affected because you did not have the freedom to decide how to organize your work, or the authority to control what was happening Student: Vo Ngoc Khanh Phuong (ID:19374) 111111115838) Business Research Methods P a g e 71 / 77 PART V: DISTRIBUTIVE, PROCEDURAL, AND INTERACTIVE JUSTICE Please indicate how much you agree or disagree with each of following statements using the numbers through where = Strongly Disagree, = Disagree, = Neutral, = Agree and = Strongly Agree Please circle only one number that is most suitable with your response Strongly disagree Strongly agree Statement 43 My work schedule is fair 44 I think that my level of pay is fair 45 Overall, the rewards I receive here are quite fair 5 5 5 46 I feel that my job responsibilities are fair 47 To make formal job decisions, my general manager collects accurate and complete information 48 My general manager clarifies decisions and provides additional information when requested by employees 49 Employees are allowed to challenge or appeal job decisions made by the general manager 50 When decisions are made about my job, the general manager treats me with kindness and consideration 51 When decisions are made about my job, the general manager treats me with respect and dignity Student: Vo Ngoc Khanh Phuong (ID:19374) 111111115838) Business Research Methods P a g e 72 / 77 52 When decisions are made about my job, the general manager is sensitive to my personal needs Personal Information Gender  Male  Female Age  Under 24 years old  From 24 to 36 years old  From 36 to 45 years old  Above 45 years old Academic degree  High school  Colleges Degree  Bachelor Degree  Master Degree  Doctoral Degree Working seniority  Under years  From to years  From to years  Above years Working position  Direct employee  Office staff  Manager  Senior Manager  Supervisor/Team leader You have successfully done the questionnaire Thank you very much! Student: Vo Ngoc Khanh Phuong (ID:19374) 111111115838) Business Research Methods Appendix 2: Presentation Student: Vo Ngoc Khanh Phuong (ID:19374) 111111115838) P a g e 73 / 77 Business Research Methods Student: Vo Ngoc Khanh Phuong (ID:19374) 111111115838) P a g e 74 / 77 Business Research Methods Student: Vo Ngoc Khanh Phuong (ID:19374) 111111115838) P a g e 75 / 77 Business Research Methods Student: Vo Ngoc Khanh Phuong (ID:19374) 111111115838) P a g e 76 / 77 Business Research Methods Student: Vo Ngoc Khanh Phuong (ID:19374) 111111115838) P a g e 77 / 77 [...]... psychological attachment to the organization Organizational commitment plays a very large role in determining whether a member will stay with the organization and zealously work towards organizational goals Theory of Organizational Commitment A prominent theory in organizational commitment is the three-component model (or TCM) The model argues that organizational commitment has three distinctive components:... management at KIDO group Research objectives This purpose of this research is way to find the factors influence to the Organizational Commitment of employees working at KIDO group My research will focus 3 main factors:  Firstly: search related information and try to define what meaning Organizational Commitment is of employees at KIDO group  Secondly: design research model and test related factors... TWO: LITERATURE REVIEW Definition of Constructs Organizational Commitment It was developed for and used in the 1991 General Social Survey, describe overall organizational commitment It includes 8 items The concept of Organizational Commitment has been developed in many ways by many different researchers and practitioners One of the most widely used definitions in organizational research is that of O’Reilly... trust and loyalty… In order to build a sustainable workforce for organizations, many domestic and foreign researched on Organizational Commitment of employees CEO at KIDO group realized Organizational Commitment of employees is important factor for KIDO group develop sustainably their human resource to help organization to operate more efficient, produce quality of products and services, build brand... P a g e 23 / 77 organization In other words, low affective, continuance, and normative commitment increases the likelihood that a member will leave the organization, while high levels of affective, continuance, and normative commitment are related to high retention rates Affective commitment has been linked to performance For example, employees with a high level of affective commitment will be less... mainly related to procedural justice, whereas organizational citizenship behavior was similarly predicted by distributive and procedural justice Most satisfaction measures were similarly related to all justice types Although organizational commitment and trust were mainly related to procedural justice, they were also substantially related to the other types of justice Findings from laboratory and field... professional demands of their work and satisfy their personal needs It value the capabilities, attitudes, and commitments of our professional staffs KIDO s continuous growth helps to ensure that compensation and bonus packages always remains attractive to attract the right talent To attract the best talents is to become the best company will always be our philosophy KIDO HAS BUILT UP A POOL OF TALENTED... e 22 / 77 Affective commitment is your emotional attachment to an organization If you have a high level of affective commitment, you enjoy your relationship with the organization and are likely to stay You stay because you want to stay Continuance commitment is the degree with which you believe that leaving the organization would be costly If you have a high level of continuance commitment, you will... the organisation, including a sense of job involvement, loyalty and belief in the values of the organisation” Organisational commitment from this point of view is characterised by employee's acceptance of organisational goals and their willingness to exert effort on behalf of the organisation (Miller & Lee, 2001) Others have defined it as simply as an organizational member's psychological attachment... an organization because you feel that you must stay For example, you may feel quitting your job may lead to an unacceptable length of unemployment On the other hand, you may feel you will lose a certain degree of status if you leave a well-respected organization such as a top law firm or research company Normative commitment is the degree you feel obligated to the organization or believe that staying