Researching about factors affact employee organization commitment at imexpharm company

 RESEARCH PROJECT (BMBR5103) RESEARCHINH ABOUT FACTORS AFFACT EMPLOYEE ORGANIZATION COMMITMENT AT IMEXPHARM COMPANY STUDENT’S FULL NAME STUDENT ID INTAKE ADVISOR’S NAME & TITLE : NGUYEN THI THANH BINH : CGS00019592 : SEPTEMBER, 2015 : DBA Khai Nguyen March, 2017 Advisor’s Assessment - Advisor’s signature ACKNOWLEDGEMENTS Without acknowledge the help, assistance, guidance, and understanding of several individuals this research would not have been possible Firstly, I am very grateful to my advisor Dr Khai Nguyen His patience, time, and commitment, in addition to his constant encouragement, effort, constructive comments, support, and individualized attention were a major source of inspiration Thanks to the board of managers and all employees of Imexpharm company for their precious comments and helps to collect data for this thesis Thanks to the encouragement and support from family and close friends to help on their studies I wish to give my sincerest and deepest gratitude to them With kindest regards, HCMC, March 2015 CONTENTS ABSTRACT CHAPTER 1: INTRODUCTION .2 Imexpharm company introduction Research problem statement Research objective .10 Research scope 11 Limitations of the study .11 The Structure of the paper 12 CHAPTER 2: LITERATURE REVIEW 13 Definition of Constructs 13 Theory of organizational commitment 24 Hypothesis 32 Research model 33 CHAPTER 3: METHODOLOGY 33 Research design 33 Sample 33 Measures 34 Data Analysis .40 CHAPTER 4: RESULTS .41 Reliability statistic .41 Descriptive statistic .43 Correlation statistic 44 Hypotheses Testing Results .45 CHAPTER 5: DISCUSSION 49 CHAPTER 6: RECOMMENDATION 53 Limitations of data collection approach 53 Future research directions 54 Implications for practitioners 55 REFERENCES 57 Appendix 1: Survey Questionnaires .60 Appendix 2: Presentation Slides .65 LIST OF TABLE Table 1: Time table for data collection progress 34 Table 2: Overall job satisfaction Scale 35 Table 3: Job over load Scale 35 Table 4: Job stress scale Scale 36 Table 5: Fairness in Skill-Based Pay Scale 37 Table 6: Person environment fit Scale 38 Table 7: Organizational commitment Scale 39 Table 8: Cronbach‟s Alpha - Internal Consistency 41 Table 9: Descriptive statistics 44 Table 10: Correlations 45 Table 11: Model Summary 46 Table 12: Coefficients 46 LIST OF FIGURE Figure 1: Imexpharm Head Office Figure 2: A four component model adapted from Cohen 2007 28 Figure 3: Modified from Cohen‟s (2007) model of the development of organizational commitment 30 Figure 4: Research model of organizational commitment 33 ABSTRACT Employee loyalty can be defined as employees being committed to the success of the organization and believing that working for this organization is their best option The aim of the study was to find the impact of organizational commitment on employee loyalty in Imexpharm company This study also finds out the relationship between overall job satisfaction (OJS) , job over load (JOL), job stress scale (JSS), fairness in skill-based pay (FSB) , person environment fit on employee organazition commitment (OC) in Imexpharm company Practical data were collected from 400 employees out of 1,012 employees in the Imexpharm company by means of a questionnaire Statistical techniques such as descriptive statistics, correlation and linear regression were employed At last, the factors affecting employee organazition commitment was also determined The results of the study indicated a positive significant relationship between overall job satisfaction (OJS), fairness in skill-based pay (FSB) , person environment fit and employee organazition commitment Empirical results also indicated that the job over load (JOL) and job stress scale (JSS) were having negatively impact on employee organazition commitment I hope results of this research will help the CEO; managers of Imexpharm have some reference angle in human resource management to improve and increase our quality resource based on employee organazition commitment Key words: overall job satisfaction (OJS) , job over load (JOL), job stress scale (JSS), fairness in skill-based pay (FSB) , person environment fit, employee organazition commitment (OC), Imexpharm Nguyen Thi Thanh Binh Page of 71 CHAPTER 1: INTRODUCTION Imexpharm company introduction Imexpharm Pharmaceutical Joint Stock Company is a leading pharmaceutical firm in Vietnam with its prestigious trade name and product quality meet national and regional standards The Company has specialized in pharmaceutical chemistry products and has been famous for its antibiotic groups of a new generation, which have found remarkable appreciation by experts As a pioneering venture over the past 30 years, continuous improvement and necessary changes have been made Up to now, Imexpharm is proud of being a firm which has created a sustainable development trend for local pharmaceutical industries Imexpharm is the first pharmaceutical firm in Vietnam, exporting to leading pharmaceutical groups in Europe such as Sandoz (Austria), Sanofi – Aventis; DP Pharma (France) and many others In 2008, the Company signed a contract on a production joint venture with PharmaScience – Canada Up to now, cooperation agreements on production have been carried out for 130 products From which 92 products come with registration number and 86 products were launched onto the market The main business activities of Imexpharm are producing and trading pharmaceutical products, and importing and purchasing the packaging materials to serve the production As of 31/12/2015, Imexpharm had a total of 1,012 employees Female labor accounted by 39% due to specific characteristics of production that need more male labor to perform heavy work Nguyen Thi Thanh Binh Page of 71 Figure 1: Imexpharm Head Office Key product groups of Imexpharm: Nguyen Thi Thanh Binh Page of 71 Imexpharm Head office No 04, 30/4 Street, Ward 1, Cao Lanh City, Dong Thap Province, Viet Nam Company name IMEXPHARM PHARMACEUTICAL JOINT STOCK COMPANY Abbreviation Date of establishment IMEXPHARM 07/2001 Company logo Field of Manufacture and Trade Producing and trading pharmaceutical products, and importing and purchasing the packaging materials to serve the production Market capitalization 289,426,460, 000 VND Stock exchange HOSE (Ho Chi Minh Stock Exchange, Vietnam) Nguyen Thi Thanh Binh Page of 71 REFERENCES Allen, N & Mayer, J 1990 The measurement and antecedents of affective, continuance and normative commitment to the organization Journal of Occupational Psychology 63, 1–18 Briscoe, J P 2006 Protean Career In J H Greenhaus & G A Callanan (Eds.) Encyclopedia of Career Development Thousand Oaks, CA: SAGE Publications, Inc., 650–653 Caldwell, D., Chatman, J., & O'Reilly, C 1990 Building organizational commitment: A multi-firm study Journal of Occupational Psychology 63 (3), 245–261 Conway, E & Monks, K 2009 Unravelling the complexities of high commitment: an employee-level analysis Human Resource Management Journal 19 (2), 140–158 De Witte, H 1999 Job insecurity and psychological well-being: Review of the literature and exploration of some unresolved issues European Journal of Work and Organizational Psychology (2), 155–177 De Witte, H 2005 Job insecurity: review of the international literature on definitions, prevalence, antecedents and consequences SA Journal of Industrial Psychology 31 (4), 1–6 Enache, M., Sallan, J M., Simo, P & Fernandez, V 2013 Organizational commitment within a contemporary career context International Journal of Manpower 34 (8), 880–898 Boyett, J.H., & Boyett, J.T (2004) The Skills Based Pay Design Manual Lincoln NE: ASJA Press Canavan, J (2008) Overcoming the challenge of aligning skill based pay levels to the external market WorldatWork Journal, 17(1), 18 25 Nguyen Thi Thanh Binh Page 57 of 71 Carsten, J M., & Spector, P E (1987) Unemployment, job satisfaction, and employee turnover: A meta-analytic test of the Muchinsky model Journal of Applied Psychology, 72, 374-381 10 Cheloha, R S., & Farr, J L (1980) Absenteeism, job involvement, and job satisfaction in an organizational setting Journal of Applied Psychology, 65(4), 467-473 doi: http://dx.doi.org/10.1037/0021-9010.65.4.467 11 Meyer, J.P and Herscovitch, L (2001) Commitment in the Workplace: Toward a General Model Human Resource Management Review, Vol 11, 299-326 12 Rusbult, C.E and Farrell, D (1983) A Longitudinal Test of the Investment Model: the Impact of Job Satisfaction, Job Commitment and Turnover Variations in Rewards, Costs, Alternatives and Investments Journal of Applied Psychology, Vol 69, 429-438 13 Blau, G.J (1985) The Measurement and Prediction of Career Commitment Journal of Occupational Psychology, Vol 58, 277-288 14 Meyer, J.P., Vandenberghe, C and Becker, T.E (2004) Employee Commitment and Motivation: A Conceptual Analysis and Integrative Model Journal of Applied Psychology, Vol 89, 991-1007 15 Iles, P et al (1990) HRM Practices and Employee Commitment: Possibilities, Pitfalls and Paradoxes British Journal of Management, Vol 1, 147-157 16 Dessler,G.,(2013) Human resource management, 13th ed USA: Courier Kendallville 17 Cole,L.E., Cole,M.S Employee satisfaction and organizational performance: a summary of key findings from applied psychology Retrieved on 10, Sept, 2014 from http://www.teammax.net/files/LiteratureReview.pdf 18 Deepa,S., Palaniswamy,R., Kuppusamy,S.,(2014) Effect of Performance Appraisal System in Organizational Commitment, Job Satisfaction and Productivity The Journal Contemporary Management Research, 8(1), 72 - 82 Nguyen Thi Thanh Binh Page 58 of 71 19 Shumaila Latif,S., Gulzar,A.,(2011) The impact of organizational and supervisory support on survivors‟ organizational commitment after downsizing in telecom sector of Pakistan International Journal of Economics and Management Sciences,1(5), 55-61 20 Aziri, B.,(2011) Job satisfaction: a literature review Management research and practice, 3(4), 77-86 Nguyen Thi Thanh Binh Page 59 of 71 Appendix 1: Survey Questionnaires SURVEY QUESTIONNAIRES RESEARCHINH ABOUT FACTORS AFFACT EMPLOYEE ORGANIZATION COMMITMENT AT IMEXPHARM COMPANY INTRODUCTION Dear Sir / Madam! I am Nguyen Thi Thanh Binh – MBA student of Open University Malaysia, I am on progressing to conduct the research for my final thesis My research is evaluating and enhancing “the factors affect employee organization commitment” at Imexpharm company We look forward to the support from you for the problems in the following questionnaire Your contributions much useful for research of us Please take a few your minutes to tick the circle in the box number of these questionnaires and feedback to me as soon possible follow contact information: Full name : Nguyen thi Thanh Binh Cell phone : 0919634259 Email : nguyenthithanhbinh103@gmail.com All the information was collected from this questionnaire are secured and only used for purpose research We are committed to not disclose information to any other purpose out off purpose research We would like to thank the collaboration of yours How to answer Please use Black or Blue ink Nguyen Thi Thanh Binh Page 60 of 71 For most of the questions there is a list of possible answers with a box beside each one Please choose your answer and put a cross in the box beside it For example, X If you make a mistake, please circle out the whole cross and then put a cross in the correct answer X X PART 1: Questionnaire Please choose the number in the box to the level of your agreement with the following issues of the company: Measure overall job satisfaction = strongly disagree, = disagree, 3= neither agree nor disagree, = agree, and 5= strongly agree All in all I am satisfied with my job In general I don‟t like my job In general, I like working here Measure job over load 1= rarely, = occasionally, = sometimes, = fairly often, and = very often How often does your job require you to work very fast? 5 How often does your job require you to work very hard? How often does your job leave you with little time to get things done? How often is there a great deal to be done? 5 = hardly any, = a little = some, = a lot, and = a great deal How much slowdown in the workload you experience? Nguyen Thi Thanh Binh Page 61 of 71 How much time you have to think and contemplate? 10 How much workload you have? 11 What quantity of work others expect you to do? 12 How much time you have to all your work? Measure Job stress scale = strongly disagree, = disagree, agree 3= neither agree nor disagree, = agree, and 5= strongly Time stress items: 5 15 Working here makes it hard to spend enough time with my family I spend so much time at work I can't see the forest for the trees Working here leaves little time for other activities 16 I have too much work and too little time to it in 5 5 13 14 17 18 19 I sometimes dread the telephone ringing at home because the call might he job-related I feel like never have a day off Too many people at my level in the company get burned out by job demands Anxiety items 20 I have felt fidgety or nervous as a result of my job 21 My job gets to me more than it should There are lots of times when my job drives me right up the wall Measure Fairness in Skill-Based Pay 22 Nguyen Thi Thanh Binh Page 62 of 71 = strongly disagree, = disagree, 3= neither agree nor disagree = agree, and 5= strongly agree 23 Supervisors a good job of certifying employees for skill- 5 5 29 How much workload you have? (would you like to have) 30 What quantity of work others expect you to do? (would you prefer others to expect of you) How much time you have to all your work? (would you 31 like to have) 5 = hardly any, = a few, = some, = a lot, and = a great number How many How many projects, assignments, or tasks you 33 have? (would you like to have) Nguyen Thi Thanh Binh Page 63 of 71 24 based pay raises The skill-based pay certifications are a fair lest of employee ability perform a task If an employee really knows how to perform the tasks that 25 make skill level, the employee will be able to pass the certification test: that skill level 26 The skill-based pay plan is fair to most employees Measure Person environment fit = hardly any, = a little, = some, = a lot, and = a great deal How much slowdown in the workload you experience? 27 (would you prefer) 28 32 How much time you have to think and contemplate? (would you like) Ng i qu n l (S p) tr c ti p quan t m i v i c ng vi c n s h i l ng c a t i 34 How many lulls between heavy workload periods you have? (would you like to have) Measure Organizational commitment = strongly disagree, = disagree, 3= neither agree nor disagree, = agree, and 5= strongly agree 35 I am quite proud to be able to tell people who it is that I work for 36 I sometimes feel like leaving this employment for good 5 37 I‟m not Willing to put myself out just to help the organization 38 Even if the firm were not doing too well financially, I would be reluctant to change to another employer 39 I feel myself to be part of the organization 5 To know that my own work had made a contribution to the 40 good of the organization would please me PART 2: Individual information Sex Female Age years old Male Highest College degree Years of working University Master Year Position in the Other Staff company Director manager Secon line manager Head business unit Thank you for your assistance! Nguyen Thi Thanh Binh Page 64 of 71 Appendix 2: Presentation Slides Nguyen Thi Thanh Binh Page 65 of 71 Nguyen Thi Thanh Binh Page 66 of 71 Nguyen Thi Thanh Binh Page 67 of 71 Nguyen Thi Thanh Binh Page 68 of 71 Nguyen Thi Thanh Binh Page 69 of 71 Nguyen Thi Thanh Binh Page 70 of 71 Nguyen Thi Thanh Binh Page 71 of 71 ... to conceptualize organizational commitment O’Reilly and Chatman’s model O‟Reilly and Chatman (1986) see organizational commitment as a psychological attachment to an organization According to... on employee organazition commitment (OC) in Imexpharm company Practical data were collected from 400 employees out of 1,012 employees in the Imexpharm company by means of a questionnaire Statistical... importance of employee organization commitment That is the most important factor to show the effectiveness of the policy, the organization operating concept in human matters Committed employees