(OUM OPEN UNIVERSITY MALAYSIA
RESEARCH PROJECT |
(BMBR5103) 109%
THE FACTORS EFFECT OF
Trang 3ABSTRACT
This research focus on the factors effect of transformation leadership on organizational commitment and the employee’s job satisfaction aperformanc at PUMA Vietnam Data were collected through a questionnaire from 200 employees in PUMA Vietnam The 133 questionnaires were sent back to researcher In this study, multiple regression was used to analyze data Results showed that transformational and had direct relationship with the employee’s satisfaction and and the organizational commitment The main implication of this study, the leader should use appropriate polices and innovative managing methods to increase employee’s job satisfaction and job performance by uses of limited resources
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ACKNOWLEDEMENTS
Iwould like to thank a lot of people for their continued guidance and support with whom in this study was made possible
I would like to express my sincere gratitude and appreciation to Dr Bui Phi Hung, my thesis advisor who has given permission and approval for me to proceed with this research His wide knowledge and thinking have been much great value for me, his understanding, encouraging and personal guidance have provided a good basis for present thesis, inspiring guidance, patience, wisdom,
and motivation helped me overcome obstacles If without Dr Bui Phi Hung, I
cannot complete my thesis successfully and smoothly
Trang 5TABLE OF CONTENTS
ABSTRACT SH nh h hư hư hư nà iii
ACKNOWLEDEMENTS .- 0000e cere eee reste eran iv
CHAPTER 1 2 00 ee ee et ee eet th nh 1
INTRODUCTION - " 1
1.1 Imtroducfion . - nh nh nh th h tt 1
1.2 Background of study .-. -ŸŸÍnằn nh nh hh nh 3
1.3 Statement of the problem - - - - - Tu ng xa 5
1.4 Research objectiYes teenies 6
1.5 Research questions 0 6.6 eee ee ett nh nh nh 6 1.6 Scope of research -.‹ - ch nh nh nh nh nh nh nhớ 6 1.7 Expected benefifs of study - {Ích nh nh nh 6 1.8 Operation definition - - - - - ¬ 7 CHAPTER2 -. - {TS nh nh nh nh h th 10 LULIIERATURE REVIEW ào SỈ nh nh nh nh 10 2.1Leadership - - {ch nh nh nh nh nh hnh 10 2.1.1 Transformational leadership - - - - - - -: 12
2.1.2 Job satisfaction ¬ et eee 14
Trang 6vị 2.2.4 Relationship between transformational leadership and employees°organizational commitmenf - : ‹ - - - - - - - : - - - 24 CHAPTER3 - nh nh h nh nh th tt ng 26 RESEARCH METHODOLOGY_ - "<< 26 3.1 Research Design .-. - co nh nh nh nh eae 26 3.2 Research instrument - + + nh nh nh nh nh nh 27 Part 1: Demographic . - +e ee reer nh 27 Part 2: Leadership 20-2 2-2 cece eee reer nh nh nh nh 27 Part 3: Organizafional commitment - - - - - - - - - 27
Part 4: Employee’s job satisfaction . - see rr reeeres 28
3.3 Samples si . - - {ch nh nh nh nh nh nh nh nh nợ 29 3.4 Variables of the research - - - - Lee eee eee 29 3.5 Data analysis eee eee e rere eens este es 30 CHAPTER4 -. - nh nh nh th h th th 32 DATA ANALYSIS AND RESULTS - 32 4.1 Demographic CharacferisfiC - - - ©Ÿ ch 32 4.2 Descriptive Statistifs - se hh nh nh nh nh nh nh nh 33 4.3 Interpretation - nh nh nh h nh nh nh nh ng 35 CHAPTERS -. - ¬ 37
Trang 7Part 2: Leadership
Part 3: Organizational commitment Part 4: Employee’s job satisfaction
ee rere rere eee eH OHH
Trang 8LIST
Viil
OF TABLE
Table-1; Demographic Analysis 6 eee eee creer Table-2: Descriptive Statistics
Table-3: Regression Analysis
PageV|
Trang 9INTRODUCTION
This chapter presented the importance of transformational leadership on organizational commitment and employee’s satisfication in the organization The following points have been discussed 1.1 Introduction 1.2 Background of Study 1.3 Statement of the Problem 1.4Research Objectives 1.5 Research Questions 1.6 Scope of the Research
1.7 Expected Benefit of the Research 1.8 Operation Definition
1.1 Introduction
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(2008) defined transformational leadership as a system of changing and transforming people
If leaders want to produce a positive influence on individuals, groups and organizations, then leadership should be broadened from old rigid autocratic style to friendly and contemporary style (Dess et al., 1998) Modern leaders perfectly adopt an attitude that support employees, provide them a vision,
cultivate hope, encourage them to think innovatively, individualized consideration and broaden the communication All these factors are the main features of transformational leadership style leading to boost up organizational strengths and increasing level of job satisfaction and organizational commitment in workforce Job satisfaction is the degree to which a person is pleased or satisfied with his/her job or work Success of organizations highly depends on its workforce More satisfied and happy employees would be more productive and profitable for the organization (Saari & Judge, 2004) Job satisfaction helps to create positive attitudes in employees, boosts up their morals, improves their performance and creates pleasant relationship with their co-workers Employees who are satisfied with their jobs tend to be more creative and innovative that help businesses to grow, flourish and bring positive changes according to market situations and thus making organizations able to compete at international level
For the organizations, they have no longer layoffs in the forms of voluntary resignation to cut costs to brace for the worst, it’s to find ways to retain employees to make the organization be efficiency and succeed Foosiri (2002) explained that the organizational commitment is an important job outcome because of its demonstrated influence on positive work-related attitudes and behaviors, for example, employee’s job satisfaction, high performance, organizational citizenship behavior and low turnover The other aspects of this study are to research three-component model of organizational commitment by Allen, Meyer (1990) and Meyer, Allen (1991) To explain with a high level of commitment, employees may have a strong belief in the organization’s objective and values, wish to optimistically express the organization, and finally have an intense desire to continue being members in the organization (Mowday et al.,
Trang 111982) In the past studies, the concept of employees’ organizational commitment was a very complex and diversified subject, but it is now considered as a
multidimensional work attitude (Allen & Meyer, 1996; Lin et al., 2011; Lin et
al., 2010)
1.2 Background of study
In the early studies of human resource, research began to describe on the characteristics of leadership behavior between leaders and followers in the
organizations (Bass & Avolio, 1991; Howell & Avolio, 1993; Schriesheim et al.,
1999) Recently the crises of organizational also have emphasized the need for leadership from the decision maker and become more and more critical for getting organizational success (Earle 1996) This means the leader who is an important person who is able to give a clear view to the employees how to achieve the organization’s goals and encourages employees to achieve the organization’s goals and then to make organization succeed Thus, a lot of the organizations in the world are deeply concerned with understanding, seeking and developing leadership
On the other hands, if we would like to make the employee loyalty, share employee’s beliefs and values with the organization become more popular topic in the organization now The past empirical studies indicated that how to retain employees and keep them committing to an organization is one of the most significant issues in management David, Andrews and Bucklew (2010) also said that the competitive advantage of the company is inevitable to have talented and loyal individuals willing retain in the organization Therefore, until today there are a lot of scholars regarding it as the study of organizational commitment (Allen & Meyer, 1990; Jaussi, 2007)
Nowadays the competition is increasingly stiff, employee is the most significant resource for every business organization (Chang & Lee, 2007) Employee’s initiative work behaviors are decided to organizational success in
changing economic environment as soon as possible (Crant, 2000; Frese & Fay,
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2001; Parker, 2000) As leadership has been seen as a very important for the improvement of individual and institutional performance, it has attracted the researchers to pay attention to studies (Northouse, 2010) Although the concept of leadership has been used since the beginning of the 19th century, but it has not consistent agreement upon a method to measure the nature and consequences of successful leadership (Stogdill, 1974) Burns (1978) explain that leadership is the most observed but the least understood standout in the world While early theories focused on the exchange relationship between leaders and employees was existed At that time, the leaders only set the goal, support and increase the capacity for the employee But, now this business world is changing constantly, the leaders should go out of and expansion from the old rigid autocratic style to mix together present leadership style when leaders want to have a positive impact on personal employee, team and the organization (Dess et al., 1998)
To cope with increasing competition pressure globalization and demand for efficiency, many organizations wish to have an excellent employee to stay in the organization to increase the competitiveness of the organization In the past, research on organizational commitment examined its specialized aspects with a variety of definitions for each type of commitment However, further research was difficult due to the conflicting definitions and inconsistencies in measurement Meyer & Allen (1991) proposed a model of organizational commitment that unified several streams of research They suggested that researchers could better understand an employee’s relationship with an organization by assessing and analyzing three distinct components of organization commitment simultaneously Organizational commitment is a psychological link between the employee and their organization Some studies have presented strong relation of organizational commitment and job satisfaction with turnover (Benkhoff, 1997) Particularly, employees have attitudes or viewpoints about many aspects of employee’s jobs, employee’s careers and organizations commitment (Lise & Timothy, 2004) Price (1997) also interpreted
Trang 13that commitment and satisfaction focus on employees’ attitudes toward organization and employees’ job, turnover referred to actual movement across the membership boundary of an organization
1.3 Statement of the problem
Leader is one of the most indispensable roles in an organization (WeiChi et 2009) Since the leadership is a bond which to create willingness in the mind of the led to achieve the goal and to make people to work together in organization (Bushra et al., 2011) The employee can through the continuous learning to creating more knowledge, to be excellent talents and products highly values, which would make more profitable for organization and make the organization achieve success The person to leaded and administrated the employee to become more and more important at this time Leaders of the organization hope that they can know the factors impact of leadership on employee’s job satisfaction and performance well, so that they able guide the development of the organization better Therefore now every organization wanted to different types of leadership skills to be an arm to beat other organizations in the competition (Barlow et al.,
2003)
On the other side, organizational commitment is a very important employee attitude In the turnover decision-making models linking employees’ affective responses, employees’ attitudes have played an important role (Cotton & Tuttle, 1986) Organization wanted to retain employee and create greater performance which will become an important factor in influence development of the organization If the employees have lower level of commitment in the organization, it will lead to higher intention to quit or turnover of employees and all the performance of the organization will decrease (Elangovan 2001; Meyer & Allen, 1990; Ton & Huckman, 2008) Thus, organizational commitment was an important job outcome because of the demonstrated influence on positive work-related attitudes and behaviors, such as high performance and low turmmover
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Past research had showed that leadership substantially cause influenced on output of personnel resource such as performance, job satisfaction, job resigning and job attitude A good leader can increase employee’s job satisfaction and expand the organizational commitment On the other side, organizational commitment can increase job attitude direct leads to job satisfaction and performance, thereby enhancing the strength of the organization 1.4 Research objectives 1 To study the effect of transformational leadership on employee’s job satisfaction 2.To study the effect of transformational leadership on employee’s job - organization commitment 1.5 Research questions
1 How does transformational leadership affect employee’s job satisfaction? 2 How does transformational leadership affect employee’s job commitment? 1.6 Scope of research
The independent variables were transformational leadership The dependent variables were employee’s job satisfaction and employee’s job commitment The respondents of this research focus on the employees who work in Puma
1.7 Expected benefits of study
1 To understand the effect of leadership on the employee’s job satisfaction and employee’s job commitment in order to enhance employee’s job satisfaction This may final contribute to an improvement in the overall performance of the organization
te To help human resource department to find what factors of leadership which will influence the employee's job satisfaction and job commitment and help in making corrective actions in order to increase employee’s job satisfaction
and enhance employee commitment
Trang 153 The result of this study will help to raise the employee’s job satisfaction and commitment from aspect of leader style
1.8 Operation definition Leadership |
Leadership means the actions of the person who inspired, enabled, supported and directed authority to employees and helps employee to complete tasks toward the setting goal
Transformational leadership
Transformational leadership means the way of the leader inspire
subordinates to transcend subordinates self interest, subordinates’ self-
actualization and produce excellent results for organization Idealized influence
Idealized influence referred to the charismatic actions of the leader which allowed leader to serve as role models for the employees The idealized influence leaders who is admired, respected, and trusted to attracted employees to emulate them, whereby the employees feel trust, admiration, loyalty and respect for the leader
Inspirational motivation
Inspirational motivation which refers the way to inspire their followers by rising communicated expectations that followers want to meet and also prove commitment to goals and the shared vision
Intellectual stimulation
Intellectual stimulation referred to the actions of the leader who challenged their followers’ ideas, to show their followers new ways to solved old problems, values for solving problems and looking at how to complete assignments for
employees
Individualized consideration
Individualized consideration which referred acting as a mentor or coach spends time in teaching employees, enable them to develop self-actualize, pay
special attention to each employee’s needs for achievement and growth by Page
Trang 16§ helping employees to develop their strengths Affective commitment
Affective commitment meant that the employee's emotional attachment, self-identity and input on the organization Employee would loyalty and hard work for the organization, mainly due to the employee's deep feelings of the
organization rather than the material interests of the organization Work experiences
Work experience was the things that had happened to you which influenced the way you think and behave which was to make person feel comfort and competence towards working
Continuance commitment
Continuance commitment referred the willingness of employees to remain in an organization because of the investment that the employee has with “nontransferable” investments which is the employee pay times, job efforts, development of work friendships and organization-specific skills in the organization, thereby change the idea of employee's turnove
Normative commitment
Normative commitment was the personal commits to and remains with an organization because of feelings of obligation and as an employee’s moral commitment that the employee stays with the organization because employee invests a great deal they will receive advanced rewards
Organization investment
Organization investment meant that the organization provided the rewards in advance and incurs significant costs for the employees
Job satisfaction
Job satisfaction referred to the process of an individual work in the organization could meet the needs of individual and provides him/her with pleasure
Intrinsic satisfaction
Intrinsic satisfaction referred to the employees could get job meets the needs of an employee and provides employee with pleasure comes from inside an
Trang 17individual, including the feeling of self-esteem, worthwhile accomplishment in the job and self-judgment at work etc It was level of satisfaction with various features associated with the job itself
Extrinsic satisfaction
Extrinsic satisfaction referred to the employees could get job meets the needs of an employee and provides employee with pleasure from outside an individual, including relationship with supervision, promotion opportunities of job, salary and Job security etc It was level of satisfaction with various features
associated with the environment in which the work was performed
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CHAPTER 2
LITERATURE REVIEW
This chapter presented the relevant background literature for this study It summarized the major streams of research on which this study was based on the transformational leadership theory and Meyer and Allen (1997) integrated into their model The first section was the leadership, in this study the transformational leadership theories were applied The second section described the organizational commitment, its antecedents and theoretical background, which included the three-component model of organizational commitment (Allen & Meyer, 1990; Meyer & Allen, 1991) The third section focused on the employee’s job satisfaction which it had been separated into intrinsic and extrinsic two portions by Herzberg (1966)
The objectives of this chapter were to review the effect of transformational leadership on organizational commitment and the employee’s job satisfaction
2.1 Leadership
Leadership was the way of person who initiatives, enables and supports to employees and helped employee to complete tasks which employees and superiors were expected (Spillane et al., 2003) Daft (2005) also made a defined that leadership as an affect relationship between leaders and followers who intended real changes and outcomes that reflex their common goal Leadership meant that the way to produce a clear vision, give the self-confidence to their subordinates, created the detail through coordination and communication (Bohn & Grafton, 2002) Lussier & Archua (2007) and McLaurin (2008) also gave an explained that leadership was the process by which the leader influence their employee to achieve organizational goals The leader through motivating their employee to achievement the organization's goals and adapt the environment's changes (Amis et al., 2004).Leadership had been described in terms of the
‘page
Trang 19position, personality, responsibility, influence process, an instrument to achieve a goal and behaviors Having various scholars give most definitions is the act of influencing the activities of an organized group in its efforts toward setting goal and achievement goal (Stogdill, 1950) Robbins (2003) explained that leaders who built direction by developing a vision of the future for organization, then leader communicating vision with employees, at the same time inspired the employees to overcome hurdles
The book of “The Philosophy of Leadership” by Hodgkinson (1983) said that classification was the beginning of scientific, from leading scientific research can be divided from the type of the leader Depends on the characteristics of a leader can be divided into Habitat for Humanity leadership and capable leadership; Depending on the work style of the leaders can be divided into dictatorial leadership, authoritarian leadership, democratic leadership and the laissez-faire type; Accordant with the mentality of the leader can be divided into transformational and transactional leadership Since 1980s, a lot of scholars have begun to researches the distinguishing between the transformational and transactional leadership (Figure 2.1) Burns (1978) was the first person to articulate that a leader can be considered either transformational or transactional The theories of leadership tried to found different leadership style, which was the general ways to practice the leadership (Barling et al., 1983)
Leadership continued to be one of the most widely discussed topic by the researchers from all over the world (Kuchler, 2008) Jong and Hartog (2007) described leadership as a process to influence people in order to get desired results Lok and Crawford (2004) proclaimed that leadership plays a vital role in determining the success and failure of a firm Gill (2006) identified that leaders help to stimulate, motivate, encourage, and recognize their followers in order to get key performance results There are many different styles of leadership Mosadeghard (2003) had pointed out following styles of leadership: autocratic, bureaucratic, laissez-faire, charismatic, democratic, participative, situational,
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transactional, and transformational leadership In this study, transformational leadership is will be under discussion |
Each aspect of transformational leadership idealized influence, inspirational motivation, intellectual stimulation, and individualized consideration all are positive impact of worker,productivity, job satisf action and job commitment
2.1.1 Transformational leadership
Transformational leadership one of the leadership style that leaders inspired employees to transcend employees self interests for the good of the organization, increase the employee's motivation, beliefs, perceptions, level of their morals and coalition with the objectives of the organization (Burns, 1978) At the same, Burns (1978) also explained that transformational leader is encourages employees to put in extra effort and to go beyond what the employees expected Bass (1985) suggested that transformational leaders raised employees’ understanding of the signification of organizational outputs and helped transform employees’ personal values to be accordant with the group objective or mission of the organization The employees of transformational leaders will trust the leader, adore, loyalty, and respect to the leaders and the employees will energetic to perform extra-role behaviors (Bass, 1985; Katz & Kahn, 1978) Because of transformational leaders able to inspire their employees to increase employees’ capabilities for success and develop employees’ innovative to solving issue skills, therefore, scholars said that the transformational leaders can achieve the greatest performance from employees (Bass, 1985; Yammarino & Bass, 1990) Transformational leadership was positively connected with significant work- related, attitudes and behaviors of employees, such as job satisfaction,
performance, trust the leader and turnover intentions will be fewer (Avolio et al.,
1999)
Bass (1985) explained that transformational leadership had four key components: idealized influence, inspirational motivation, intellectual
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First, idealized influence was referred to the charismatic actions of the leader, whereby individuals transcend their self-interest for the benefit of the organization and develop a collective sense of mission and purpose (Bryman et al., 1996) The idealized influence leader to make employees be admired, respected, and trusted The employees ensure leader with their charismatic personality and attracted employees to imitate them At the same time, these leader were endowed by employees have extraordinary capabilities, persistence and determination (Bass & Riggio, 2006) Bass and Avolio(1994) purports that in the idealized influence leader give signification to employees’ needs more than leaders’ own, develop and practice higher ethical and moral principles and do not use authority for their benefit
Second, inspirational motivation contains enthusiastically building shared vision or shared purposes Inspirational motivation was an aspect of charismatic leadership in which leaders inspire the employees by emotional appeals and good visions, increasing employees' goals, and showing passion and hopefulness (Northouse, 2010) Inspirational leadership is communication a vision with fluency and confidence, raising optimism, warmth, and giving inspirational to employees (Yammarino & Dubnisky, 1994) As a result of these behaviors, employees can feel an affection attachment and identification with transformational leader Inspirational motivation can make followers achieve ambitious goals through producing enthusiastic excitement, increasing followers’ expectations and communicating confidence (Bass & Avolio, 2000)
Third, intellectual stimulation was referred a transformational leader stimulates their employees’ struggles, through encouraging questioning and critical reflection to increase employees’ innovation and creativity (Bass & Avolio, 1994) Intellectual stimulation was encouraging employees to adopt new perspectives and new idea how their work can be completed best The leaders encourage employees to try out new behaviors or to find new solutions to solve old problems Northouse (2010) proposed that in the intellectual stimulation
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leadership also encourages employee to challenge their viewpoint and morals, and the leader's philosophy
The fourth one was individualized consideration means that a transformational leader through performing the role of a mentor to focuses on employees’ success and development to their highest level (Avolio, 1999) Individualized consideration was the behavior of leadership that conducive to employee’s satisfaction by giving close attention to the individual needs of employee, to be a mentor or coach for employee, and inspire employee to develop and self-actualize
2.1.2 Job satisfaction
Job satisfaction is a topic which has derived attention of not only organizational employees but also of researchers (Lu et al., 2005) Job satisfaction is the emotional response of an individual toward his or her job or place of job coming out from his or her experience from the job Luthans (2007, p.141) defined job satisfaction as “a pleasurable or positive emotional state resulting from the appraisal of one’s job or job experience” Job satisfaction ultimately leads to job performance and organizational commitment which ensures organizational success (Spector, 2003)
Job satisfaction has been defined differently by numerous researchers, scholars often defined as the extent to which a job meets the needs ofanemployee and provides him/her with pleasure or people like their jobs (Spector, 1997) Locke (1976) perceives job satisfaction as an emotional state resulting from the evaluation or appraisal of employee’s job experiences This emotional satisfaction was achieved when an employee’s job offers something that employee feels was worthwhile (Nguni et al., 2006; Lofquist & Dawis, 1991) Some researchers defined that job satisfaction which an employee was positive or negatively feeling about the job (Odom et al., 1990) The more satisfied and happy employees were those which happy with their job, more productive and profitable for the organization (Saari & Judge, 2004) Robbins (2005) defined job
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Trang 23satisfaction as an employee collection of feelings that an individual holds towards their job In the wider sense, job satisfaction referred to employee cognition that employees contributing to the overall achievement of organizational goals (Guimareas, 1996; Weiss et al., 1976) Whereas, others consider defined job satisfaction to be the attitude or feeling that an employee has towards his/her job (Evans, 1999; Roberts, 2001; Smith et al., 1969) Literature suggests that a lot of factors influence employee job satisfaction, including: wages, fringe benefits, co- workers, supervisor, achievement and opportunities of promotion Based on the others scholars thinks that the employees was the degree of fit between the job features and employees’ expectations, employees were relatively more satisfied with their jobs when met employee's expectations or exceeded, otherwise, dissatisfaction would be the outcome of a work experience (Tutuncu & Kozak, 2007) Additionally, researchers often looked at job satisfaction in terms of intrinsic and extrinsic rewards (Handel, 2005; Kalleberg, 1977)
Dawis and Lofquist (1990) explained that job satisfaction did not become an issue until the early 19th century because prior to this time one’s career was often predetermined by the occupation of that person’s parents Since that time a lot of scholars were began to research the theories and measurements of job satisfaction (Angela, 2008) Maslow (1943) had proposed the hierarchy of needs theory, he concluded that individuals must satisfy five-level model ofa person's needs, in which was physiological, safety, love, esteem, and self-actualization (Figure 2.4) Based on the Maslow’s (1943) research, the organizations realized that except to meet the lower-level needs of their employees which were the physiological and safety needs, the organizations also have to meet the higher- level needs, specifically self-esteem and self-actualization Siripak (2006) explained the need hierarchy theory was the job satisfaction of employee to meet their need or desires were fulfilled through his/her job and related work atmosphere or through their job and related work atmosphere to achieve their willing Maslow (1954) explained that the needs of an individual should satisfy with the basic lower needs before higher levels If the individual dissatisfied with basic lower needs, basic lower needs no longer serve as motivators for the
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individual Moreover, Worrell (2004) referred the success of motivating people depends on recognizing the needs that are unsatisfied and helping the individual to meet those needs
Intrinsic satisfaction
Job satisfaction was the degree that how much the people like their jobs Job satisfaction as a multidimensional complicated construct can be divided into two dimensions which were intrinsic job satisfaction and extrinsic job satisfaction (Sharp, 2008) Kalleberg (1977) also explained that job satisfaction consists of two components These were intrinsic which referring to the work itself and extrinsic which representing facets of the job external to the task itself for the job satisfaction Herzberg (1966) suggested that composed of intrinsic and extrinsic are two factors of job satisfaction as well The factors of intrinsic include autonomy and responsibility for the work Have a lot of scholars explained that definition of intrinsic job satisfaction was an attitude for individual toward work based in internal factors such as work types, achievement and utilization ability (Wanous & Lawler, 1972; Weiss, et al., 1967) Hirschfeld (2000) gave another definition of intrinsic job satisfaction that was assesses the nature of the job tasks themselves, it was in the intrinsic of job such as development of professional opportunities and other similar factors William and Hazer (1986) gave other defined for the intrinsic job satisfaction refers to an employee's emotional condition Intrinsic job satisfaction was derived from the individual, psychological value of employee and the work itself, employee can administered satisfactions by themselves such as feelings of accomplishment and personal growth (Mohammad et al., 2011)
2.3.2 Extrinsic satisfaction
Numerous researchers had explained definition of extrinsic job satisfaction is an attitude for individual toward work based on the external or environmental factors such as working environmental, supervision, and co- workers (Wanous & Lawler, 1972; Weiss, et al., 1967) Another researcher said that extrinsic job satisfaction assesses of the working situation outside the job
that were external to the job tasks such as wages, benefits and bonuses Page
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Trang 25(Hirschfeld, 2000) Extrinsic job satisfaction was derived from outside the individual or external environment and employee cannot control extrinsic job satisfaction by individual, the benefits of extrinsic job satisfaction associated with doing the job rather than the work itself such as job security, fringe benefits, promotion prospect and work condition (Mohammad et al., 2011) Herzberg, et al., (1957) made a distinction between intrinsic and extrinsic factors of job satisfaction Characteristic of the job was involved in the intrinsic factors, and the work environment was concerned with the extrinsic satisfaction Researchers found that intrinsic factors have relevance with job satisfaction and extrinsic factors were related to job dissatisfaction
The present study used Mohrman-Cooke-Mohrman Job Satisfaction Scale (MCMJSS) and along with the Multifactor Leadership Questionnaire (MLQ) to measure the employee's job satisfaction The MCMJSS was developed by Mohrman, et al., (1977) and the MLQ developed by Weiss, et al., (1967), the aims of the MCMJSS and MLQ to use in this study was to measure employees’ self-perceived job satisfaction with a specific focus on leadership styles, organizational commitment and both facets (intrinsic and extrinsic) of job satisfaction (Mohrman et al., 1977) In this study, the employee's job satisfaction was divided into intrinsic and extrinsic job satisfaction Personal growth and development, achievement and expectations and self-respect were included in the intrinsic job satisfaction The extrinsic job satisfaction facets contained fair treatment, supervisor/leader and the opportunity to participate in the
determination of goals' organization
2.1.3 The relationship between leadership and employee’s job satisfaction Although there are numerous leadership styles which could have an impact on employees’ job satisfaction and their organizational commitment but we are mainly concerned with transformational leadership We choose transformational leadership because of its supportive, productive and innovative nature Cumming et al (2010) stated that leadership that is concerned only with the output of the workers and do not care about their feelings failed to attain best efforts of the staff The study suggested that transformational leadership should
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be adopted to improve workers satisfaction, selection, work environment and to avoid employee turnover Miles and Mangold
(2002) proclaimed that job satisfaction is facilitated by leaders’ performance and effective supervisory interaction with employees Leader’s capability to identify and solve the conflicts of employees determined the employees’ perception about leaders’ performance AL-Hussami (2007) concluded that transformational leadership positively effects the employees’ job satisfaction Hamidifar (2009) conducted a study in Islamic Azad University in Tehran and explored that among different leadership styles transformational positively determine the employees’ job satisfaction Employees are more satisfied with transformational leadership than any other style
2.2 Organizational commitment
Luthans (2007, p.147.) stated organizational commitment as “an attitude reflecting 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” Henkin and Marchiori (2003) defined organizational commitment as a feeling of employees which force them to be the part of their organization and recognize the goals, values, norms and ethical standards of an organization Shaw (2003) identified three dimensions of organizational commitment: affective, continuance and normative commitment Positive, sincere and utmost involvement of employee for its organization is called affective commitment
Continuance commitment can be seen when individual is committed with the organization because of some specific benefits like pension, insurance, medical and other fringe benefits Employees’ Commitment with the organization because of the ethical standards or social norms is called normative commitment According to Tella et al (2007) Organizational commitment is the strongest motivator that highly affects persons’ intentions to perform well, increases his efficiency, and improves his skills Organizational commitment is important for organizations because it is a good predictor of organizational goals and
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Affective commitment was described as the relative strength of an individual’s identification with and involvement in a particular organization (Mowday et al., 1982) Affective commitment results in the employee “wanting” to remain in the relationship This was probably the most beneficial component of commitment for an organization to engender within its employees as it is associated with productive behavior aimed at contributing meaningfully to the organization (Meyer & Allen, 1997)
Depending on the Meyer and Allen’s three-component model of commitment (Meyer & Allen, 1991), the affective component of organizational commitment will develop on the basis of two factors: experience which was the employees can experience each of these psychological states to different degrees The other one is personal characteristics which was demographic variables of employees such as gender, age, tenure and education
Work experience was thus far the most researched and strongest antecedent of affective commitment (Morit, 2010) Allen and Meyer (1990) found that affective commitment in the aspect of work experience can be divided into comfortable and competent two groups which are meet needs satisfy of employees to feel comfortable in the relationship with the organization and feel competent in the work-role Work experience can be divided in categories, a kind of experiences that comfort an employee physically or psychologically another one is contribute to an employee’s feeling of competence at his work (Meyer & Allan, 1991) Such as comforting work experience is role clarity, freedom from conflict, autonomy or job challenge (Blau, 1986; Morris & Koch 1979; DeCottis & Summers 1987; Buchanan, 1974; Meyer & Allen 1987, 1988) Meyer and Allen (1991) believe that the best measured of comfort category is pre-entry expectations, equity in reward distribution, freedom from conflict, supporting of organizational , trustiness of organizational, role clarity and consideration by supervisor competence category can measured by achievement, autonomy,
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performance-based rewards equitable, challenge and scope of the job, promotion prospect, opportunity for self expression, decision making and personal significant in the organization
The literature studied shows that personal characteristics and experiences have contributes to the workplace in the affective commitment Although DeCotis and Summers (1987) argued that because commitment profile inexistence, therefore impossibility connection between one’s personal characteristics and commitment to an organization Overall, relations between demographic variables and affective commitment are neither strong nor consistent But on the contrary, Mowday et al (1992) and Steers (1977) through research the role of personal characteristics and found that the personal characteristics and experiences can predict their commitment to the organization Gallie and White (1993) found that more high educated employees have a higher task commitment, and that a higher level of education opens more possibilities to do the work that one likes Some scholars found that the age of employee had a positive relationship with tenure in the organization and the level of commitment as well (Buchanan, 1974 & Hall et al., 1977) Additionally, Meta-analytic evidence also reports positive relations between organization tenure and affective commitment (Cohen, 1993; Mathieu & Zajac, 1990) Allen and Meyer (1993) had been evidenced suggests that when employee age was partial out of the relation between tenure and affective commitment, correlations are reduced considerably Thus, it was possible that the link between organizational tenure and affective commitment to the organization was really due to employee age Hackman & Oldham (1976) showed that personal characteristic should lead to better work attitudes
2.2.2 Continuance commitment
Stebbins (1970) referred that continuance commitment was the awareness of the impossibility of choosing a different social identity because of the immense penalties involved in making the switch In addition, other researcher explained that continuance commitment was calculative and exchange-based in nature and
Trang 29refers to the costs and benefits associated with organizational membership that was unrelated to affect (Etzioni, 1975; Hrebiniak & Alutto, 1972; Stevens et al., 1978) Reichers (1985) also refer that continuance commitment was the willingness to remain in an organization because of the personal investment which is form of nontransferable investments such as retirement, close working relationships with employees, or special things to the organization Continuance commitment which is based on the idea that the investments, the employee pay times, job efforts, development of work friendship and organization-specific skills in the organization, thereby reduce the attractiveness of external employment alternatives (Allen & Meyer; 1990) Continuance commitment results in individuals feeling like they have to stay in the relationship because leaving would cost too much or because they perceive few employment alternatives exist elsewhere A key predictor of desire to stay or leave was commitment to the organization (Wong et al., 1995)
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Meyer et al., (2002) showed that the Job alternatives have most strongly relation and negatively correlated with continuance commitment The definition of alternatives was the availability of a comparable job in another organization Yoon and Lawler (2005) explained that the definition of the alternatives was the totality of benefits of a current relationship relative to those obtainable from alternative relationships Personal investments and organizational benefits can common defines of alternatives which had strength with continuance commitment (Meyer & Allen, 1991) If the person has irrelevant with the organizational membership, the cost of leaving organizational for this person may be even higher (Meyer & Allen, 1984) Conversely, the alternatives could have weakened relationship between the continuance commitment and employee (Meyer & Allen, 1997) This variable does not account for movement to another job within the same organization Meyer and Allen (1997) explained that in order to keep employees had continuance commitment in organization that the employee must be able to identify alternatives
2.2.3 Normative commitment
Normative commitment was the internalized normative pressure to act in a way which meets organizational goals and interests (Wiener, 1983) This has been studied extensively, especially in the psychological contract between an employer and employee (Levinson et al., 1962; Rousseau, 1990; Schein, 1965) Normative commitment referred to the employees believed they had to the organization and employee’s feeling of obligation to remain with the organization (Bolon, 1997) Randall and Driscoll (1997) defined normative commitment as an employee’s moral commitment that manifests itself when an organization provides moral and financial support for the employee’s development
Normative commitment was only natural, because was the way to the people put forward in the society In the literature on the organizational socialization, socialization was defined as the process of a person to learning the values, norms, required behaviors and allows the person to be a member of the
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Trang 31organization (Wanous & Collela, 1989) Normative commitment can be explained by other commitments such as marriage, family, religion, etc Hence when it involved to person’s commitment and place of work, employees will have a moral obligation to the organization (Wiener, 1982) Wiener (1982) suggested that the socialization such as organization, familial and cultural socialization will internalization of normative pressures exerted on an employee, to make employee feeling of obligation to remain with an organization For this study, organizational socialization was described as culture values, defined as a learned to set of norms for beliefs and social behavior that were shared by members of a group Yali and Yuchi (2012) noted that to be a car salesman if the socialization high, the organizational commitment will high as well, and socialization on
organizational commitment has significant predictive power
In addition to the socialization processes, organizational investment could be a more specific reciprocity mechanism for the normative commitment (Meyer & Allen, 1991) The normative commitment may also develop, however, when an organization provide rewards in advance or organization investments important cost for employee, such as paying college tuition and costs associated with job training for employees Organization investments cost will make employees feel an obligation to reciprocate by committing themselves to the organization until the debt has been repaid (Scholl, 1981) For individual, employees receipt of special favors or organizational investment which was individual has internalized a reciprocity norm or exchange ideology (Eisenberger et al., 1986) Thus, the organizational investment may oblige employees to remain in the organization even the employees face to other more attractive and alternatives organization (Meyer & Allen, 1991)
In this study, the tool designed to measure organizational commitment based on Organizational Commitment Questionnaire (OCQ) by Mowday and Porter (1979) It followed the three-dimensional definition outlined above, although in practice, most researchers used this tool as a one-dimensional instrument A 15-item scale in the organizational commitment questionnaire was aimed at assess for the acceptance to the values of organizational, exert every
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effort, and retain the membership in the organization Mowday et al., (1979) also give provided strong evidence for the internal consistency, test-retest reliability, and convergent, discriminate, and predictive validity of the Oca
2.2.4 Relationship between transformational leadership and employees’ organizational commitment
Trang 33The above research model is showing relationship between independent variable (IV) and dependent variables (DVs) Here, transformational leadership is working as IV while job satisfaction and organizational commitment are working as DVs The model is showing that transformational leadership is positively affecting employees’ job satisfaction and organizational commitment, on the basis of which H1 and H2 are derived
Trang 3427 3.2 Research instrument
The title of this study was the factors effect of transformational leadership on the employee’s job satisfaction and organization commitment Questionnaire was used which was the instrument to collected data for this study
The questionnaire was composed of four parts The first part consisted of personal information, for example gender, age, level of education and service tenure The second part included the transformational and leadership The transformational leadership included the idealized influence, inspirational motivation, intellectual stimulation, and individualized consideration
The third part was the organizational commitment was composed by affective, continuous and normative commitment The forth part was employee’s job satisfaction divided by intrinsic and extrinsic satisfaction
All the questionnaires were measured using five point Likert scale 1=strongly disagree; 2=disagree; 3=neutral; 4=agree; 5=strongly agree
Part 1: Demographic
The questions of demographic were adopted to determine the characteristics of respondents like gender, age, level of education and service tenure The items were in nominal and ordinal
Part 2: Leadership
The transformational leadership divided into idealized influence, inspirational motivation, intellectual stimulation and individualized consideration, respectively have 4 items to measure this researcher The measured of transformational leadership was based on the MLQ Form 5X-Short by Bass (1985)
Part 3: Organizational commitment
Organizational commitment was divided into the affective commitment, continuance commitment and the normative commitment For the affective commitment, work experiences were presented in the part 3 The continuance commitment divided into side-bet and alternatives The normative commitment divided into organization investment and socialization In this part respectively
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Trang 35have 4 items to measure this researcher
In this part of study, the measurement of affective commitment was based on version of Allen and Meyer (1990) which consistent of 4 items that measure affective commitment scale based on work experiences To measure continuance commitment by using multidimensional continuance organizational commitment scale (Groff et al., 2008) For this scale respectively consists of 4 items which measure continuance organizational commitment scale based on side-bet, for example “I put a lot of energy in this organization, so I’d like to continue to work in this organization”, and for measure continuance organizational commitment scale based on alternatives, for example “no organization can replace the status of the organization now in my mind” The normative commitment had used the questionnaires develop by Mowday, Steers and Porter (1979) The questionnaires combine with Mowday, Steers and Porter (1979) updated based on the definition of organization investment and socialization
Part 4: Employee’s job satisfaction
The employee’s job satisfaction could be divided into two sections which were intrinsic employee’s job satisfaction and extrinsic employee’s job satisfaction, respectively had 4 items to measure this researcher
In this study had used Mohrman-Cooke-Mohrman J ob Satisfaction Scale (MCMJSS) by Al-Omari (2008) to measures intrinsic and extrinsic employee’s job satisfaction According to the operation definition of the intrinsic and extrinsic employee’s job satisfaction, the questionnaire also combined with MCMJSS and update from the operation definition of the intrinsic and extrinsic employee’s job satisfaction The higher score means the higher job satisfaction
Trang 3629 3.3 Samples size
The samples were selected by random sampling from the employees who was work in the Puma The sampling size was calculated using Yamane (1993) formula
According to the population from the workers in the Puma, the total numbers of the people are 400 Therefore, used Yamane (1993) formula, as follow:
N
n=
1+ Ne’
Where, n= size of sample
N= size of population and E= error of sampling
400 Thus , the size of sample can calculated as: n =——~_——_|} 1+400*0,05
n= 200
So, the numbers of samples is approximately equivalent to 200 employees 3.4 Variables of the research
Independent variables:
Based on the literature review, the independent variables were classified as transformationa leadership and The transformational leadership dealt with idealized influence, inspirational motivation, intellectual stimulation and individualized consideration
Dependent variable:
The dependent variable of the research was composed by employee’s job
Trang 37divided into intrinsic employee’s job satisfaction and extrinsic employee’s satisfaction.The organizational commitment divided into the affective commitment, continuance commitment and the normative commitment
3.5 Data analysis
The objectives of this study were to find out the factors effect of transformational leadership on the employee’s job satisfaction and organization commitment The method used to analyze the data collected in this study had Five point Likert, multiple regression analysis and hypothesis testing By using multiple regression analysis, the relationship between the independent variables and dependent variables can be analyzed
Even through in this study, the questionnaire of leadership, organizational commitment, employee’s job satisfaction and job performance were not normal scale, but it was designed to be 5 Likert scale Thus, this research used the width of the range to calculate the data
Five point Likert scale being one of the most reliable measurement scales and very popular in every research, this scale was applied to the present study The higher the scales the more important the variables as evaluative criteria,
5= Number of respondents those choose strongly agree
4= Number of respondents those choose agree 3= Number of respondents those choose
neutral
2= Number of respondents those choose disagree
1= Number of respondents those choose strongly disagree
For determining the range of result, this study used the formula to interval with five points scale, as:
N(Width of the range)= 2M) —0 0g=(5-1)/5 Level
Based on the above calculation the, the scores fall between the ranges of: Page
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Averages mean score between 4.20-5.00 are considered as strongly agree Averages mean score between 3.40-4.19 are considered as agree
Averages mean score between 2.60-3.39 are considered as neutral Averages mean score between ].80-2.59 are considered as disagree
Averages mean score between 1.00-1.79 are considered as strongly disagree This study analyses the data using statistical software and multiple regression
analysis The multiple regression analysis is used to test hypotheses about relationship between two or more means
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Trang 39CHAPTER 4
DATA ANALYSIS AND RESULTS
This chapter aimed to analyze and to interpret of the data obtained from the collected questionnaires, which had been designed from the conceptual framework Both descriptive and the statistical tools were used to analyzed the findings of the study The following points had been discussed
4.1 Demographic Characteristic
Table 1 exhibits the demographic information of this study The population consisted of 133 employees work in Puma Vietnam Survey respondents included 71.4% males and 28.6% females 55% of the respondents belonged to 20-30 years of age, 34.4% employees belonged to 31-40 years of age Employees having masters degree showed 54.9% of the sample, graduated employees were 41.4% of the sample
Whereas, 3.8% of the sample belonged to employees lying in a category other than mentioned above Employees having experience less than 2 years comprised 33.9% of the sample, 2-5 years experienced employees were 48.8% of the sample, 6-10 years experienced employees comprised 7.1% of the sample whereas, 10.2%of the sample showed employees having experience of more than
10 years
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The results show that employees are somewhat loyal to their organizations, feel pride to be a part of it, find similarity between their own values and organization values, and ready to accept any type of job assignment for the smooth running of organization but not at a very large scale
Table-2: Descriptive Statistics Mean Std Deviation Job satisfaction 3.4629 62075 Transformational leadership 2.4034 45424 Org commitment 3.2632 77488 Table 3 shows the results of regression analysis, which demonstrate the
dependence of overall job satisfaction and organizational commitment (dependent variables) on transformational leadership (independent variable) Value of R explains the strength of association between independent variables and dependent variables and R value lies between 0-1 (Ibrahim et al., 2006) The R value near to 1, shows a strong association between IVs and DVs and vice versa The results of the study are as following:
1-Regression analysis of transformational leadership and overall job satisfaction shows that 37% change in overall job satisfaction is due to the transformational leadership while remaining 63% is the unexplained variability R value as 61 shows a strong and significant (F=78.356, P<.05) relationship between transformational leadership and overall job satisfaction Thus, our model is fit Regression coefficients (B) of transformational leadership as 83 shows that 1 unit change in transformational leadership will bring 83 unit changes in overall job satisfaction in positive direction
2- Regression analysis of transformational leadership and organizational commitment shows that 16% change in organizational commitment is due to the transformational leadership, while remaining 84% is the unexplained variability
R value as 40 shows a moderate and significant (F=25.244, P<.05) relationship Page