Leadership style, role clarity and employee job satisfaction link evidence in hochiminh city banking employees

MINISTRY OF EDUCATION AND TRAINING HO CHI MINH CITY UNIVERSITY OF ECONOMICS TRỊNH MINH CHIÊU LEADERSHIP STYLE, ROLE CLARITY AND EMPLOYEE JOB SATISFACTION LINK: EVIDENCE IN HOCHIMINH CITY BANKING EMPLOYEES ECONOMICS MASTER THESIS Ho Chi Minh City – 2011 MINISTRY OF EDUCATION AND TRAINING HO CHI MINH CITY UNIVERSITY OF ECONOMICS TRỊNH MINH CHIÊU LEADERSHIP STYLE, ROLE CLARITY AND EMPLOYEE JOB SATISFACTION LINK: EVIDENCE IN HOCHIMINH CITY BANKING EMPLOYEES MAJOR : BUSINESS ADMINISTRATION CODE : 60.34.05 ECONOMICS MASTER THESIS INSTRUCTOR: Dr., Assoc Prof NGUYỄN ĐÌNH THỌ Ho Chi Minh City – 2011 ACKNOWLEDGEMENT ABSTRACT Due to the rapid growth in banking industry in Vietnam and the dynamic business environment, many banks and credit institutions are facing more and more continuous challenges To overcome the issues, banks employees play vital role Although some foreign researchers have done exploration on dimensions of employee’s satisfaction, Vietnam climate can vary This study investigates the relationship between leadership style, role clarity and employee job satisfaction The author explores the effect of leadership style on role clarity and employee job satisfaction as well as clarifies the impact of role clarity to employee job satisfaction using data collected from 177 responses in Ho Chi Minh City area A surprising finding is that directive leadership style does not support for employee role clarity The fundamental implication in this study is that democratic leadership styles are suitable management methods Keywords: Leadership style; role clarity; job satisfaction; bank 1    CONTENTS CONTENTS LIST OF TABLES LIST OF FIGURES CHAPTER I: INTRODUCTION 1.1 Research problems 1.2 Research objectives 11 1.3 Scope and limitations 11 1.4 Research methodology 12 1.5 Structure of the study 12 CHAPTER II: LITERATURE REVIEW 14 2.1 Introduction 14 2.2 Leadership 14 2.2.1 Concept of leadership 15 2.2.2 Directive Leadership 18 2.2.3 Participative Leadership 20 2.2.4 Empowering Leadership 22 2.3 Role Clarity 23 2.4 Job Satisfaction 29 2.5 Hypotheses 34 2.6 Summary 40 CHAPTER III: METHODOLOGY 42 2    3.1 Introduction 42 3.2 Research design 42 3.2.1 Research process 42 3.2.2 Preliminary research (qualitative research) 43 3.2.3 Main research (quantitative research) 44 3.2.3.1 Sampling 44 3.2.3.2 Sample Size 46 3.2.3.3 Survey methods 46 3.2.3.4 Data analysis techniques 47 3.3 Measurement scales development 50 3.4 Summary 56 CHAPTER IV: DATA ANALYSIS AND FINDINGS 57 4.1 Introduction 57 4.2 Descriptive statistics of sample 57 4.3 Assessment of measurement scale 60 4.3.1 Reliability with Cronbach’s alpha 60 4.3.2 Validity with Exploratory Factor Analysis 63 4.4 Hypothesis testing 67 4.5 Summary 76 CHAPTER V: FINDINGS, LIMITATIONS AND RECOMMENDATIONS 77 5.1 Introduction 77 5.2 Findings and research contributions 77 3    5.2.1 Leadership style and employee role clarity 77 5.2.2 Leadership style and employee job satisfaction 78 5.2.3 Employee role clarity and employee job satisfaction 78 5.2.4 Research contributions 79 5.3 Recommendations 80 5.4 Limitations and future research 82 REFERENCES 83 APPENDIX Interview Form – Vietnamese version 89 APPENDIX Interview Form – English version 92 APPENDIX Results of reliability with Cronbach’s alpha 95 APPENDIX Results of validity with Exploratory Factor Analysis 100 4    LIST OF TABLES   Table 3.1 Type and technique of research 42 Table 3.2 Measures used in the study 53 Table 3.3 Final questionnaire 54 Table 4.1 Demographic characteristics 57 Table 4.2 Descriptive statistic of measurement items 59 Table 4.3 Summary of Cronbach’s alpha 63 Table 4.4 Rotated Component Matrix 64 Table 4.5 Final construct measurement scales 66 Table 4.6 Linear Regression test of role clarity - organization with directive leadership style 68 Table 4.7 Linear Regression test of employee job satisfaction - organization with directive leadership style 69 Table 4.8 Linear Regression test of role clarity - organization with participative leadership style 71 Table 4.9 Linear Regression test of employee job satisfaction - organization with participative leadership style 72 Table 4.10 Linear Regression test of role clarity - organization with empowering leadership style 73 5    Table 4.11 Linear Regression test of employee job satisfaction - organization with empowering leadership style 74 Table 4.12 Model test results 76 6    LIST OF FIGURES   Figure 1.1 Job satisfactions rating of Vietnamese employee Figure 1.2 Vietnam job changing reason pyramid Figure 2.1: Schematic diagram of the conceptual framework 40 Figure 3.1 Research process diagram 43 87    Quỳnh, Trần Thị Ngọc (2008), Đánh giá mức độ hài lòng người lao động công việc doanh nghiệp dệt may đại bàn TP Hồ Chí Minh, Luận văn thạc sĩ kinh tế, Khoa Quản Trị Kinh doanh, Đại học Kinh tế TPHCM Remus, I and Timothy, A.Z (2004), An experience-sampling measure of job satisfaction and its relationships with affectivity, mood at work, job beliefs, and general job satisfaction, European Journal Of Work And Organizational Psychology, Vol 13(3), 367-389 Robert, W.T (2010), Validity and Reliability of Quantitative, Published in the Journal of Neurotherapy, 14, 122-152 Ronald, A.C., Michael, D.H and Keith, C.J (2009), The Effects of Leadership Style on Hotel Employees' Commitment to Service Quality, Cornell Hospitality Quarterly, Vol 50(2), 209-231 Rukmani, K., Ramesh, M and Jayarkrishnan, J (2010), Effect of Leadership Styles on Organizational Effectiveness, European Journal of Social Science, Vol 15(3), 365-370 Thọ, Nguyễn Đình (2011), Phương pháp nghiên cứu khoa học kinh doanh, TPHCM: NXB Lao động - Xã hội Trung, N.T (2009), Measuring customer-based brand equity of english training centers: evidence in Hochiminh city, Master Thesis, University of Economics HoChiMinh City Van, D.T.T (2011), Service quality and customer satisfaction in the retail banking sector in Vietnam, at http://dinhthithanhvan.blogspot.com/ on 09/05/2011 Vincent, F.F (2009), Supervisor accessibility and subordinate role clarity, Journal of Applied Communication Research, Vol 10(2), 133-147 Warren, B (2007), Concepts of Leadership, http://www.nwlink.com/~donclark/leader/leadcon.html on 05/09/2011 at 88    Wei, L., David, P.L., Riki, T and Henry, P.S.J (2003), Matching leadership styles with employment modes: strategic human resource management perspective, Human Resource Management Review, 13, 127-152 Whitaker, B and McKinney, J (2009), Role Clarity, Social Skills and the Feedback Seeking/Job Satisfaction Link, International Journal of Organisational Behaviour, Vol 14(1), 54-68 Wikipedia (2011), 09/05/2011 Leadership, at http://en.wikipedia.org/wiki/Leadership on 89    APPENDIX Interview Form – Vietnamese version Nghiên cứu mối liên hệ phong cách lãnh đạo, rõ ràng nội dung công viêc hài lịng cơng việc Nghiên cứu nhằm mục đích tìm hiểu đánh giá Anh/Chị mối liên hệ phong cách lãnh đạo, rõ ràng nội dung cơng việc hài lịng cơng việc Xin lưu ý khơng có trả lời hay sai Các trả lời Anh/Chị có giá trị nghiên cứu với chúng tơi Họ tên người trả lời: Giới Tính: Nam Nữ Tuổi: Dưới 20 21-30 Học Vấn: Trung Học 31-40 41-50 Trên 50 Cao Đẳng Đại Học Trên Đại Học 2-4 năm 5-7 năm 8-10 năm Số năm kinh nghiệm làm việc: Dưới năm Trên 11 năm Đơn vị công tác: Chức vụ: Xin cho biết mức độ đồng ý Anh/Chị phát biểu theo qui ước: Hoàn toàn phản đối Phản đối Có khuynh hướng phản đối Trung hịa Có khuynh hướng đồng ý 90    Đồng ý Hoàn toàn đồng ý Lưu ý câu hỏi đây, người quản lý người quản lý trực tiếp Anh/Chị 1.Hoàn toàn phản đối -> 7.Hoàn tồn đồng ý Người quản lý ln nói rõ cho Anh/Chị biết họ mong muốn họ anh chị Người quản lý yêu cầu Anh/Chị sử dụng qui trình chung, 7 7 7 7 7 7 đồng tổ chức Người quản lý cố áp đặt ý kiến họ xuống Anh/Chị Người quản lý muốn Anh/Chị hiểu rõ quan điểm, thái độ họ Người quản lý ln muốn vai trị họ tổ chức Anh/Chị hiểu rõ Người quản lý định rõ tiêu chuẩn công việc cho Anh/Chị Người quản lý yêu cầu Anh/Chị thực qui định, nội quy tổ chức Người quản lý khuyến khích Anh/Chị tham gia định quan trọng Người quản lý khuyến khích Anh/Chị nói khơng hài lịng với định Người quản lý thường định với tham khảo í kiến Anh/Chị Người quản lý thường định quan trọng với tham dự Anh/Chị Người quản lý cho phép Anh/Chị tự việc thực công việc 91    Người quản lý cho phép Anh/Chị sử dụng ý kiến để 7 7 7 7 7 7 Anh/Chị có hội thăng tiến công ty Công việc công việc lý tưởng Anh/Chị 7 giải vấn đề Người quản lý khuyến khích sáng kiến Anh/Chị Người quản lý cho phép Anh/Chị làm việc theo cách mà Anh/Chị thấy tốt Người quản lý để Anh/Chị tự quản lý công việc giao công việc Người quản lý cho phép Anh/Chị sử dụng sáng kiến riêng mức độ cao Người quản lý tin tưởng định Anh/Chị Nghĩa vụ trách nhiệm Anh/Chị công việc rõ ràng Mục tiêu, mục đích cơng việc Anh/Chị rõ ràng Công việc Anh/Chị liên quan rõ ràng với mục tiêu chung phận Anh/Chị làm việc Kết mong đợi công việc Anh/Chị rõ ràng Phân bổ thời gian cơng việc giao Anh/Chị hợp lí Nếu định lại, Anh/Chị chọn công việc Chính sách, chế độ đãi ngộ nơi Anh/Chị làm nói chung tốt Cơng việc giống Anh/Chị mong muốn bắt đầu Xin chân thành cảm ơn giúp đỡ quý Anh/Chị! 92    APPENDIX Interview Form – English version Research on relationship among leadership styles, role clarity and employee job satisfaction This research aims to analyze your assessments on the relationship among leadership styles, role clarity and employee job satisfaction Please be noted that there are no right or wrong questions All your feedbacks are valid to this research Name: Gender: Nam Nữ Age: Under 20 21-30 Education: High School 31-40 Colleges 41-50 Graduate Above 50 Post Graduate Working Experience: Under year 8-10 years 2-4 years 5-7 years Above 11 years Current Company: Position: Consider each statement and mark the answer that indicates the extent to which you agree with the statement: Strongly Disagree Disagree Slightly Disagree Neutral Slightly Agree Agree 93    Strongly Agree Please be noted that manager in below questions implies your line manager 1.Strongly Disagree-> 7.Strongly Agree My manager lets employees know what his expectation is My manager encourages the use of uniform procedures My manager tries out his ideas on employees My manager makes his attitude clear to employees 7 7 7 7 7 7 My manager makes sure that his role in the organization is understood by employees My manager maintain definite standards of performance My manager ask employees follow the standard rules and regulations My manager encourages employees to participate in important decision My manager encourages employees to speak out when they disagree with a decision My manager often make decisions with asking employees for opinions My manager make important decision with involving employees My manager allows employees complete freedom in their work My manager permits employees to use their own judgment in solving problems My manager encourages initiative in employees My manager lets employees their work the way they think best My manager assigns tasks, then let employees handle them 94    My manager allows employees a high degree of initiative My manager trusts employees to exercise good judgment My duties and responsibilities The goal and objectives of my job 7 The expected results of my work How to divide my time among the tasks required of my job 7 General organization’s job policies is good I have opportunities for advancement with organization This job is my ideal job This is just like the job I wanted when I started this job How my work relates to the overall objectives of my work unit If I had to decide all over again, I would still choose the job I have now Thank you for your participation! 95    APPENDIX Results of reliability with Cronbach’s alpha Directive leadership style – Original running Cronbach's Alpha N of Items 771 Scale Mean if Item Scale Variance if Item Corrected Item-Total Cronbach's Alpha if Item Deleted Deleted Correlation Deleted DL1 16.92 28.232 430 755 DL2 17.07 24.818 635 712 DL3 15.34 28.737 213 812 DL4 17.12 27.609 531 738 DL5 16.99 23.602 737 689 DL6 16.70 24.063 663 705 DL7 17.48 29.081 343 780 Directive leadership style – Adjusted running Cronbach's Alpha N of Items 832 Scale Mean if Item Deleted Scale Variance if Item Corrected Item-Total Cronbach's Alpha if Item Deleted Correlation Deleted DL1 10.53 17.398 506 831 DL2 10.68 15.161 659 791 DL4 10.73 17.060 600 809 DL5 10.60 14.742 700 778 DL6 10.31 14.443 701 778 96    Participative leadership style – Original running Cronbach's Alpha N of Items 945 Scale Mean if Item Scale Variance if Item Corrected Item-Total Cronbach's Alpha if Item Deleted Deleted Correlation Deleted PL1 15.21 16.678 712 982 PL2 14.71 15.843 838 906 PL3 14.98 16.386 823 912 PL4 14.73 15.994 828 910 Empowering leadership style – Original running Cronbach's Alpha N of Items 877 Scale Mean if Item Deleted Scale Variance if Item Corrected Item-Total Cronbach's Alpha if Item Deleted Correlation Deleted EL1 31.97 30.164 741 847 EL2 32.06 30.547 802 840 EL3 31.78 30.559 696 854 EL4 32.05 32.639 569 871 EL5 31.81 31.599 770 846 EL6 32.20 31.012 708 852 EL7 32.57 36.451 347 895 97    Empowering leadership style – Adjusted running Cronbach's Alpha N of Items 895 Scale Mean if Item Scale Variance if Item Corrected Item-Total Cronbach's Alpha if Item Deleted Deleted Correlation Deleted EL1 27.14 24.993 748 871 EL2 27.23 25.153 831 859 EL3 26.94 25.656 676 883 EL4 27.21 27.226 576 894 EL5 26.97 26.403 769 869 EL6 27.36 25.653 725 875 Role clarity – Original running Cronbach's Alpha N of Items 756 Scale Mean if Item Deleted Scale Variance if Item Corrected Item-Total Cronbach's Alpha if Item Deleted Correlation Deleted RC1 21.42 12.598 272 786 RC2 21.92 8.778 634 669 RC3 21.65 11.093 549 710 RC4 22.02 8.568 628 673 RC5 22.50 10.342 568 698 98    Role clarity – Adjusted running Cronbach's Alpha N of Items 786 Scale Mean if Item Scale Variance if Item Corrected Item-Total Cronbach's Alpha if Item Deleted Deleted Correlation Deleted RC2 15.97 7.010 595 736 RC3 15.69 9.122 500 780 RC4 16.07 6.336 684 686 RC5 16.54 7.897 635 717 Employee job satisfaction – Original running Cronbach's Alpha N of Items 814 Scale Mean if Item Deleted Scale Variance if Item Corrected Item-Total Cronbach's Alpha if Item Deleted Correlation Deleted JS1 17.08 21.294 375 853 JS2 17.42 20.040 522 804 JS3 17.67 19.280 785 731 JS4 17.94 18.456 709 745 JS5 17.49 19.751 720 748 99    Employee job satisfaction – Adjusted running Cronbach's Alpha N of Items 853 Scale Mean if Item Deleted Scale Variance if Item Corrected Item-Total Deleted Correlation Cronbach's Alpha if Item Deleted JS2 12.60 12.956 547 882 JS3 12.85 12.785 772 786 JS4 13.12 11.564 763 783 JS5 12.67 12.949 735 799 100    APPENDIX Results of validity with Exploratory Factor Analysis KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling 626 Adequacy Bartlett's Test of Approx Chi-Square 4052.335 Sphericity df 253 Sig .000 Total Variance Explained Component Total Initial Eigenvalues Rotation Sums of Squared Loadings % of Variance Cumulative % Total % of Variance Cumulative % 7.780 33.824 33.824 4.097 17.812 17.812 4.059 17.646 51.471 3.734 16.235 34.047 2.030 8.825 60.296 3.308 14.383 48.430 1.667 7.249 67.544 2.916 12.680 61.109 1.432 6.227 73.771 2.912 12.662 73.771 935 4.067 77.838 748 3.251 81.089 643 2.798 83.887 588 2.558 86.445 10 528 2.295 88.740 11 476 2.068 90.808 12 412 1.791 92.599 13 338 1.470 94.069 14 329 1.432 95.501 101    15 301 1.307 96.809 16 207 899 97.707 17 135 585 98.293 18 122 531 98.824 19 115 499 99.323 20 077 334 99.657 21 045 194 99.851 22 028 124 99.975 23 006 025 100.000 ...MINISTRY OF EDUCATION AND TRAINING HO CHI MINH CITY UNIVERSITY OF ECONOMICS TRỊNH MINH CHIÊU LEADERSHIP STYLE, ROLE CLARITY AND EMPLOYEE JOB SATISFACTION LINK: EVIDENCE IN HOCHIMINH. .. leadership styles and employee job satisfaction in banking industry in Vietnam  Examine the relationship between employee role clarity and employee job satisfaction in banking industry in Vietnam The... enhancing job satisfaction level of employees However, there was seldom seen a work that has been performed on leadership style, role clarity and employee job satisfaction in the banking industry in