Intrinsic motivation and in role job performance a study in vietnam

MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HOCHIMINH CITY - BUI AN ANH TUAN INTRINSIC MOTIVATION AND IN-ROLE JOB PERFORMANCE A STUDY IN VIETNAM MASTER THESIS OF BUSINESS ADMINISTRATION HO CHI MINH CITY - 2012 MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HOCHIMINH CITY - BUI AN ANH TUAN INTRINSIC MOTIVATION AND IN-ROLE JOB PERFORMANCE A STUDY IN VIETNAM Subject: Master of Business Administration Code: 60.34.01.02 MASTER THESIS OF BUSINESS ADMINISTRATION SUPERVISOR: PhD PHAM QUOC HUNG HO CHI MINH CITY - 2012 i ACKNOWLEDGEMENT The achievement of this study is not only my effort but also the valuable contribution of many individuals I would like to express my thankful feeling and deep memory to all of them First of all, I would like to thank my supervisor, PhD Pham Quoc Hung, for his close attention, suggestion, encouragement from the first step and during my thesis development He is very kind to help me all materials related to my thesis Next, I am so happy to have the warmest love from my family who always concerns and supports me in any case Finally, I am very lucky to receive a large knowledge and enlightened understanding from hundreds of guidelines and comments from my friends They are my classmates and my friends who are willing to reply promptly all my relevant questions at any time and everywhere I ask Importantly, all the right arguments in this study were surely explained with the help of above mentioned individuals, all the mistakes or shortcomings are solely due to my weakness All comment and suggestion are welcomed Ho Chi Minh City, October 2012 Student: Bui An Anh Tuan ii COMMITMENT To teachers and readers I am Bui An Anh Tuan, student of Master of Business Administration, K19 (EMBA K19) of the University of Economics Ho Chi Minh City I commit that the thesis “Intrinsic Motivation and In-role Job Performance: A Study in Viet Nam” was carried out and accomplished by my serious study procedure and scientific research The related literature and quotations used in this study are sourced from books, articles, researches, references The data in the study was primarily collected from companies in Ho Chi Minh city The data analysis and results of the study were conducted and explained scientifically by myself I declare and commit again that this study is not copied originally from any other study and research Ho Chi Minh City, October 2012 Student: Bui An Anh Tuan iii TABLE OF CONTENT Acknowledgement i Commitment ii Table of content iii List of tables v List of figures v Abstract vi CHAPTER 1: INTRODUCTION 1.1 Research introduction 1.2 Problem statement 1.3 Purpose and significance of the study 1.4 Delimitation of the study 1.5 Structure of the study CHAPTER 2: LITERATURE REVIEW 2.1 Job performance 2.2 Two measures of job performance 2.3 Motivation 2.4 General Self-Determination Theory 2.5 Extrinsic motivation 2.6 Intrinsic motivation 11 2.7 Psychology needs 12 2.7.1 Autonomy 12 2.7.2 Competence 15 2.7.3 Relatedness 16 2.8 Influential factor of social context 16 2.9 Motivation and job performance 18 2.10 Research model and hypotheses 19 CHAPTER 3: METHODOLOGY 3.1 Research design 22 3.2 Measurement development 24 3.2.1 Questions of questionnaire 24 3.2.2 Questionnaire back translation 24 iv 3.2.3 Autonomy measurement 25 3.2.4 Competence measurement 26 3.2.5 Relatedness measurement 26 3.2.6 In-role Job Performance measurement 27 3.2.7 Demographic items 27 3.3 Pilot study 28 3.4 Sampling design 29 3.5 Data collection and analysis 30 3.5.1 Data cleaning and input method 30 3.5.2 Reliability test 31 3.5.3 Confirmatory factor analysis 31 3.5.4 Analysis of variance 32 3.5.5 Regression analysis 32 CHAPTER 4: DATA ANALYSIS 4.1 Data description 33 4.2 Normality analysis 34 4.3 Scale reliability analysis 35 4.4 Confirmatory factor analysis 36 4.5 Group analysis 40 4.6 Regression analysis 44 4.6.1 Linear multiple regression 47 4.6.2 Testing assumptions for regression 49 4.6.3 Regression with dummy variable 50 CHAPTER 5: DISCUSSION AND CONCLUSION 5.1 Result discussion 52 5.2 Research contribution 53 5.2.1 Theoretical implication 53 5.2.2 Managerial implication 54 5.3 Limitation and further research 55 REFERENCES 56 APPENDICES 61 v List of tables Table 2.1: Type of extrinsically motivated behavior 11 Table 3.1: Autonomy scale 26 Table 3.2: Competence scale 26 Table 3.3: Relatedness scale 27 Table 3.4: Performance scale 27 Table 3.5: Demographic variables 28 Table 4.1: Survey data 33 Table 4.2: Normality descriptive statistics 35 Table 4.3: Cronbach’s alpha of sub scales 36 Table 4.4: Goodness of fit indices 37 Table 4.5: Standardized regression weight 37 Table 4.6: Gender group statistic 40 Table 4.7: Independent Samples Test 41 Table 4.8: Marital group Statistics 42 Table 4.9: Mean of Groups Analysis 44 Table 4.10: Correlations 46 Table 4.11: Multiple regression 47 Table 4.12: The coefficients 48 List of figures Figure 2.1: The research model 21 Figure 3.1: Research process 23 Figure 4.1: Modified model 38 Figure 4.2: Adjusted model 39 vi Abstract We need people to work at their best effort voluntarily to have the best performance We have to understand the psychological motivation and create the good condition in which people are motivated Psychological motivation is of two types: intrinsic and extrinsic Intrinsic motivation comes from internal or self stipulation Extrinsic motivation comes from external or contingent rewards The study based on Self-Determination Theory that focuses specially on intrinsic motivation and its effect on job performance The study has carried out a survey of 239 respondents from companies in the Ho Chi Minh city based on the well designed self-reported questionnaire Using multiple regression model, three intrinsic motivators – perceived autonomy, perceived competence, perceived relatedness – have showed their positive effects on in-role job performance Interestingly, relatedness has the strongest effect, autonomy has moderate effect and competence has lowest effect The mean analysis has not been found statistically significant difference among demographic groups This study also contributes to the theory of motivation and initially confirms the validation of SelfDetermination Theory in the Viet Nam context CHAPTER 1: INTRODUCTION 1.1 Introduction Many studies have been carried out to understand about the motivation According to definition of Psychology Today, Motivation is literally referred to the desire of a person to things (Psychology Today, How to get motivated, 2012) Ryan & Deci asserted that motivation concerns energy, direction, persistence – all aspects of activation and intention Motivation relates to the person who are managers, teachers, leaders and involves mobilizing others to act (Ryan & Deci, 2000) Kinicki and Kreiner suggested that motivation presents psychological processes that cause stimulation, persistence of voluntary actions that are goal directed (Kinicki & Kreitner, 2001) Employees that are motivated to work long and hard are normally more productive than that are not motivated (Daniels, J.D and Radebaugh, 2001) Motivation is of two general types: intrinsic motivation and extrinsic motivation As defined by Gagne and Deci (2005), intrinsic motivation refers to internal factors such as interest, enjoyment, choice, perceived competence, relatedness etc Satisfaction of these factors causes and maintains intrinsic motivation Aronson, Wilson and Akert (2002) defined “Extrinsic motivation refers to external factors which can be measured in monetary terms such as salary and bonuses etc” (cited in Mundhra & Jacob, 2011) These are external to the people According to Ryan and Deci (2000), the term extrinsic motivation is the attainment of separate outcome from the performance of an activity; and intrinsic motivation is the performance of an activity for the inherent satisfaction from the activity itself They also mentioned that fun and challenge are of greater significance to an intrinsically-motivated person than external pressures, contingencies and rewards In this study, based on the Self-Determination Theory proposed by Deci and Ryan (2000), I refer to perceived competence, perceived autonomy and perceived relatedness as three intrinsic motivators to evaluate the motivation of the company on employees Performance has the important concern for the leaders to pay attention and it can be used to evaluate the leadership effectiveness Performance of an individual depends on his ability and motivation There are two types of employee performance in-role and extra-role as the overall motivation It is used to assess the motivation through perceived performance by himself As suggested by William and Anderson (1991), a person undertakes his job responsibilities and requirements, he has done his inrole performance A person takes the actions beyond his job responsibilities and requirements at his voluntary behavior, he has taken extra-role performance (William and Anderson, 1991) In this study, I refer to in-role performance to measure the overall motivation of employee 1.2 Problem Statement Morgan (1997) (cited in Mundhra & Jacob, 2011) stated that people are valuable resource that may contribute in several different ways to a company’s outcome provided that the company creates them an appropriate chance to Mundhra and Jacob (2011) mentioned that a company needs its employees working at their best effort towards its goals for its success Employee also have a desire to remain and work for long time in the company However, according to a report, in average, every three new employees are recruited, there are two current employees leaving the company The turnover rate is about 40-50% (Tran, 2011) Also, this paper reported that a survey by Navigos in 208 enterprises in 2005 with 35,000 participants, the job leave rate was very high: 18.2% for management level; 14.8% for experts and 23% for office staff and workers And research of Kevin and Keri (2006) confirmed that the primary principle for employment loyalty and commitment in the twenty first century is of leadership factors Moreover, the absenteeism and bad attitude (stress, negative effort, tardiness, stealing) are also important issues for the companies Such loyalty and commitment comes from motivation Motivation has been defined as the amount, quality and direction of the employee, effort that energizes their behavior within the work environment (Perry and Porter, 1982) Schultz (1998) 51 The result showed that the regression model with dummy variable was significant (sig.