The effects of authentic leadership on symmetrical internal communication and employee organization relationships

MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HO CHI MINH CITY ------ HOANG THI KIM QUY THE EFFECTS OF AUTHENTIC LEADERSHIP ON SYMMETRICAL INTERNAL COMMUNICATION AND

MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HO CHI MINH CITY

- -

HOANG THI KIM QUY

THE EFFECTS OF AUTHENTIC LEADERSHIP ON SYMMETRICAL INTERNAL COMMUNICATION AND EMPLOYEE-ORGANIZATION RELATIONSHIPS

MASTER OF BUSINESS

Ho Chi Minh City - 2017

MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HO CHI MINH CITY

- -

HOANG THI KIM QUY

THE EFFECTS OF AUTHENTIC LEADERSHIP ON SYMMETRICAL INTERNAL COMMUNICATION AND EMPLOYEE-ORGANIZATION RELATIONSHIPS Major: Business Administration (Research) ID: 60340102

MASTER OF BUSINESS

SUPERVISOR: DR TRAN MAI DONG

Ho Chi Minh City – 2017

ACKNOWLEDGE

First of all, I would like to express my gratefulness to Dr Tran Mai Dong for his intensive support, introduction, valuable suggestions as well as his encouragement over six months of doing my research His professional knowledge and his experiences inspire me a lot and help me get more motivation to conduct and complete my study

Additionally, I would like to give a sincere thank to all my friends, who are working for aviation organizations in Ho Chi Minh city for their intensive support when I collected the data I am so grateful to all of you

Last but not least, my warm thanks to my family who always stood by me, support for me to complete this study

Thank you for giving me your strength I love all of you!

ABSTRACT

The definition of leadership and the role of effective leadership in organizations has been investigated by many scholars over the world However, the perception of leadership in Viet Nam remains limited Obviously, Vietnamese leaders have not identified the important role of applying an effective leadership style in enhancing organizational performance Moreover, they have not had a sufficient perception of employee’s importance and focused on how to maintain a long-term relationship with their subordinates Thus, a further research need to conduct to prove the crucial role of leadership in organizations and how the leadership style affects the company performance in terms of the quality of employee-organization relationships

The purpose of this current study is to examine empirically the impacts of authentic leadership on symmetrical internal communication and employee-organization relationships This research was conducted through a two-phase study, including the qualitative study and main quantitative research After interviewing deeply with six participants, who come from different positions with various backgrounds in a wide range of aviation organizations to get their opinions about research problems and modification for scale items, a final single survey was achieved Then, this survey was delivered to Vietnamese staffs from the aviation industry in Vietnam The data were collected based on a sample size of 140 participants by the convenient sampling technique Moreover, structural equation modeling (SEM) indicated that authentic leadership positively affects EORs both directly and indirectly, through symmetrical internal communication Also, the study provides theoretical and practical implications as well as suggested directions for future research On the other hand, some limitations were mentioned in this study

Keywords:Leadership, Authentic leadership, Symmetrical internal communication, Employee-organization relationships

TABLE OF CONTENTS

ACKNOWLEDGE

ABSTRACT TABLE OF CONTENTS LIST OF ABBREVIATIONS LIST OF TABLES LIST OF FIGURES CHAPTER 1: INTRODUCTION 1

1.1 Research background and research problem 1

1.2 Research objectives 4

1.3 Scope and subject of the study 4

1.4 Research methodology 5

1.5 Research significance 6

1.6 Thesis structure 6

CHAPTER 2: LITERATURE REVIEW 8

2.1 Literature Review 8

2.1.1 Leadership 8

2.1.2 Leadership theories 9

2.1.3 Authentic leadership (AL) 13

2.1.4 Symmetrical internal communication (SIC) 15

2.1.5 Employee – organization relationships (EORs) 16

2.2 Hypothesis development 17

2.2.1 Authentic leadership and symmetrical internal communication 17

2.2.2 Authentic leadership and employee-organization relationships 19

2.2.3 Symmetrical communication and employee-organization relationships 21 2.3 Research model 22

2.4 Chapter summary 22

CHAPTER 3: METHODOLOGY 24

3.1 Research paradigm 24

3.2 Research procedure 25

3.3 Measurement scale 26

3.3.1 Authentic leadership scale (AL) 26

3.3.2 Symmetrical internal communication (SIC) 28

3.3.3 Employee-organization relationships (EORs) 28

3.4 Qualitative study 29

3.4.1 Sampling 29

3.4.2 Data analysis technique 31

3.4.3 Qualitative findings 32

3.4.3.1 Qualitative results 32

3.4.3.2 Modified scale items 32

3.5 Main quantitative study 33

3.5.1 Sampling 34

3.5.2 Data analysis techniques 35

3.6 Chapter summary 36

CHAPTER 4: DATA ANALYSIS 37

4.1 Respondent demographics 37

4.2 Evaluate the measurement by CFA 38

4.2.1 CFA result of Authentic leadership 38

4.2.2 CFA result of Symmetrical internal communication 41

4.2.3 CFA result for Employee-organization relationships 42

4.3 The saturated model 44

4.4 Structural model (The hypothesized model) 45

4.5 Results of testing the hypotheses 47

4.6 Bootstrap method 48

4.7 Chapter summary 49

CHAPTER 5: CONCLUSIONS, IMPLICATIONS AND LIMITATIONS 50

5.1 Discussion 50

5.2 Implication of research findings 53

5.2.1 Theoretical implications 53

5.2.2 Practical implications 54

5.2.3 Limitations and directions for further research 55

5.2.3.1 Limitations 55

5.2.3.2 Directions for future research 56

5.3 Conclusion 57

REFERENCES 58

APPENDICES 69

Appendix 2.1: Review of definitions of authentic leaders and authentic leadership 69

Appendix 3.1: English Qualitative Interview Questions 77

Appendix 3.2: Vietnamese Qualitative Interview Questions 81

Appendix 3.3: Data transcript of Staff 1 (English version) 85

Appendix 3.4: Data transcript of Staff 1 (Vietnamese version) 92

Appendix 3.5: The qualitative research findings 98

Appendix 3.6: Questionnaire (English Version) 102

Appendix 3.7: Questionnaire (Vietnamese Version) 105

LIST OF ABBREVIATIONS

AMOS Analysis of Moment Structures

CFA Confirmation Factor Analysis

SPSS Statistical Package for the Social Sciences

AL Authentic leadership

SIC Symmetrical internal communication EORs Employee-organization relationships SEM Structural Equation Modelling

CR Composite reliability

AVE Averaged variance extracted

EFA Exploratory Factor Analysis

C.R Critical value ratios

LIST OF TABLES

Table 3.1 Scale items of Authentic leadership 27

Table 3.2 Scale items of Symmetrical internal communication 28

Table 3.3 Scale items of Employee – organization relationships 29

Table 3.4: Participants’demographics 30

Table 4.1 Demographic profile 38

Table 4.2 Summarized of CR, AVE and Cronbach’α (Authentic leadership 40

Table 4.3 Correlation of Authentic leadership 41

Table 4.4 Summarized of CR, AVE and Cronbach’α 42

Table 4.5 Summarized of CR, AVE and Cronbach’α (EORs) 43

Table 4.6 Correlation of Employee-organization relationships 44

Table 4.7 Constructs Correlation 45

Table 4.8 Results of testing the hypotheses 47

Table 4.9 Regression Weights (bootstrap standard errors) 49

LIST OF FIGURES

Figure 2.1 Research model 22

Figure 4.2 CFA of Symmetrical internal communication 41

Figure 4.3 CFA of Symmetrical internal communication 43

Figure 4.4 SEM analysis results for saturated model 44

Figure 4.5 The hypothesized structural model 46

Figure 4.6 Results of testing the hypotheses 47

CHAPTER 1: INTRODUCTION

In this chapter, the critical role of leadership style in relationship between internal communication and the quality of employee-organization relationships was demonstrated, particularly in an uncertain business environment as today In addition, this chapter illustrated the research problem in the Vietnamese context with dimensions adapted to the specific Vietnamese culture Moreover, the purpose, scope and significance of the study were also introduced

1.1 Research background and research problem

Internal communication is always a vital process by which employees share information, targets, relationships, make meaning, establish organizational culture

as well as an organizational value (Berger, 2008) Internal communication is considered as a fundamental factor of modern organizations Numerous scholars have suggested that effective internal communication plays a critical role in developing positive follower attitudes such as trust, organization's commitment (Jo and Shim, 2005), job satisfaction (Gray and Laidlaw, 2004), identification with an organization (Smidts et al., 2001) and positive employees-organization relationships These attitudes and behaviors, in turn, increase productivity, improve performance, build greater relationships with other stakeholders Recognizing the importance of employees in achieving organization's successes, researchers have conducted broadly studies exploring the drivers of internal communication effectiveness Dozier et al., (1995); Grunig et al., (2002) suggested that a participative organizational culture, an organic structure, gender equality and power symmetry are the key factors that facilitate the organization’s internal communication However, in recent years, researchers have noticed about the influences of leadership on internal communication Leader’s communication styles are one of the main contextual factors in the internal communication system in the organization (Whitworth, 2011; Men, 2014), affect follower attitudes and behaviors

(Holladay and Coombs, 1993; Berger, 2008; Kim and Rhee, 2011; Men and Stacks,

2013, 2014) Furthermore, leaders enable context and determine the degree in which internal communication takes place Yukl (2006) defined leadership as the process

of influencing followers Leadership at different organizational levels directly or indirectly determines structural forms, organizational culture and climate, power distribution, and communication Different types of leadership advocate different communication styles to influence followers, and thus constitute a major component

of the internal communication system (Whitworth, 2011) Also, leader’s communication competence, management styles, leader’s communication behaviors

is closely connected to employee outcomes, the quality of employee-organization relationships On the other hand, studies related to the impact of leadership styles on internal and external communication effectiveness have limitations Most previous studies considered the connection between internal communication and general leadership style Similarly, a noticeable role of specific leadership style in that relationship has not yet to been proved broadly in various contexts in research, involving authentic leadership which embraces considerable effects on the internal communication system in an organization (Men and Stacks, 2014) According to George et al., (2007), authentic leaders demonstrate a passion for their purpose, lead with their hearts as well as their heads and their values are practiced consistently Previous scholars suggested that authentic leaders establish long-term, meaningful relationships and have the self discipline to get results They know who they are and become true to themselves Thus, they proactively foster positive environments where their employees can easily conduct two way communication, including feedback about their managers, whether it is good or not Further, leaders with authentic leadership openly sharing information and expressions of one’s true thoughts and feelings while trying to minimize displays of inappropriate emotions (Kernis, 2003) These leaders don’t hesitate to disclose information related to making decisions or any issues happening within the organization which employees have right to know and respond Besides that, authentic leaders recognize that

leadership is not about their success or about getting loyal subordinates to follow them (George et al., 2007) Thanks to their character, authentic leaders are noted to foster the long-term relationship with their subordinates Moreover, they act in harmony with their words as well as deep personal values and convictions to build credibility and win the respect and trust of followers (Walumbwa et al., 2008) These things make a significant contribution to employee engagement and improve the quality of employee-organization relationships Although, authentic leadership generates numerous positive outcomes, most studies are conducted in western countries which charactered by individualism value, low-power distance (Gardner

et al., 2011) In the view of these gaps, the current study makes an important contribution to fulfill

Additionally, few empirical studies have directly examined the effects of internal communication with employees-organization relationships (Kim, 2007; Kim and Rhee, 2011; Shen, 2011; Waters et al., 2013; Men, 2014; Men and Stacks, 2014;)

In contrast, recent researchers have tested the linkage between internal communication and organization performance (Broom and Dozier, 1983; Dozier, 1990; Grunig et al., 2002; Yates, 2006; Meng and Berger, 2012; Michaelson and Stacks, 2017) as well as the influences of leadership styles, particularly authentic leadership and top manager’s communication forms of effective internal communication, employee engagement, positive employee-organization relationships (Men and Stacks, 2014; Men 2015; Kang, 2017) Leadership styles, excellent communication have significantly proved to nurture better relationship between employees and their organization (Kress, 2005; Lockswood, 2007; Men and Stacks, 2014; Kang, 2017)

The studies on the relationship amongst leadership styles, internal communication, the quality of employee-organization relationships have limitations

in Vietnam’s current business context Furthermore, Vietnamese enterprises’s perceptions of these strategic problems have been misunderstood (Vu, 2013) They

have not determined the importance of effective internal communication operation

in enhancing company performance in the future, specifically, top manager’s roles

in applying leadership and management perspectives to work on and increase employee commitment through effective internal communication system in the organization (Vu, 2013) Thus, this study investigates the effects of authentic leadership on symmetrical internal communication and employee-organization The aim of study is to examine authentic leadership scale (AQL) of Neider & Schriesheim (2011), Grunig’s internal communication scale in Vietnam and measure the linkage between these two concepts and the quality of employee-organization relationships The findings provide significant implications for communication professionals and organizational leaders on how to develop the best practices of internal communication and positive employee attitudes and behavior that contribute to organizational effectiveness

1.2 Research objectives

The purposes of this study are:

 To investigate the impacts of authentic leadership on symmetrical internal communication, direct and indirect effects of this leadership style on employee-organization relationships

 To adapt the authentic leadership scale, symmetrical internal communication, employee-organization relationships to Vietnamese context

 To provide management implications to enhance the positive influences of internal communication on employee outcomes

1.3 Scope and subject of the study

 Subject of the study: The effects of authentic leadership on

symmetrical internal communication and employee-organization

relationships

 The scope of the study: The research is conducted in a range of

medium – large companies doing business in the aviation sector in

Ho Chi Minh city This one of specific fields, making a significant

contribution to the development of the Vietnamese economy

1.4 Research methodology

To accomplish the aims of this research, two steps of the study were carried out:

a qualitative study and a quantitative study

 Quantitative study

In the quantitative research, 140 participants working in the aviation sector in Ho Chi Minh City were recruited for the survey by convenient sampling techniques A self-administered questionnaire with Likert five-point scale that measures the constructs of the study is developed on the effects of authentic leadership on symmetrical internal communication and employee-organization relationships literature review Subjects were asked to rate their agreement with each item on a five-point Likert scale ranging from 1 (strongly disagree) to 5 (strongly agree) All

of questionnaire items were taken from previously valid scales Data related to gender, education, job status of respondents was measured by nominal scale, subject’s ages were measured by ordinal scale Descriptive statistics for the entire

sample were done with Statistical Package for SPSS 20 To test the measurement model and structural equation modeling (SEM), Analysis of Moment Structures (AMOS) 20 was used for data analysis

 Practical contribution

Based on the research results, some useful management implications were suggested to help Vietnamese managers in the Aviation field understand deeply about the importance of the authentic leadership in providing internal communication effectiveness in order to boost employee satisfaction and increase their engagement, improve employee-organization relationships as well as the followers’s positive attitudes

1.6 Thesis structure

The thesis is divided into five chapters:

 The first chapter introduces the subject matter and provides the problem, the research objects, scope and significance of the study

 The second chapter reviews and synthesizes the theories in the literature of research’s concepts, including the authentic leadership, symmetrical internal communication and employee-organization

relationships This chapter also describes the conceptual model and hypotheses

 In the third chapter, a methodology is presented to appraise measurement scale Then the research design and data collection process for this study are explained

 Chapter four presents the results of data analysis and analyzes them for their relevance to the research objects or hypotheses

 The final chapter, chapter 5 shows conclusions, implications and limitations of the thesis and provides contributions for future research

CHAPTER 2: LITERATURE REVIEW

This chapter mainly provided the theories which were proposed by many scholars in academic field and were related to all the concepts and research model Beginning with an introduction about leadership theories and the link to a key leadership style authentic leadership which was undertaken in this research Next, the definitions of the constructs, including the authentic leadership, internal communication, employee-organization relationships were discussed and then the relationships among those concepts conducted by previous studies were also developed for proposing a conceptual model and hypotheses

2.1 Literature Review

2.1.1 Leadership

Leadership is one of the critical factors determining the success of an organization and attain increasing interest in the fields of management, business, marketing However, studies on leadership in the public relation, social relationships are emerging in recent decades (Bass and Avolio, 1994; Aldoory and Toth, 2004) Yukl (2006) and Northouse (2004) noted that, leadership as the interaction between the leaders and their subordinates and influencing others to know and understand what must be done and the ways how to do it, and the process

of facilitating individual and collective efforts to accomplish shared objectives Leadership is to seek and establish methods in order to motivate people, provide them directions to achieve their goals (Amirul and Daud, 2012)

House (2004) defined that leadership is an individual‘s capability in influencing, motivating, encouraging other people to contribute organization’s success and effectiveness of which they are members Leaders are suggested to create a fair working environment Within this condition, leaders and their subordinates openly share information, messages, emphasize on reciprocity, responsiveness, two-way communication Similarly, Bass (1985, p 20) argued that, a leader is “one who

motivates us to do more than we originally expected to do” He suggested that this motivation could be attained by raising the perception about the importance of work performance and ways how to reach it

as old – fashioned now to that of the closely related “leadership traits” theory, to the emerging leadership theories of the transactional leadership and the transformational leadership styles, ethical, servant, authentic, intentional, and collaborative leadership philosophies and management practices Besides, previous scholar also paid significant attention to the positive outcomes of leadership in various contexts, involving countries, organizations, individuals (Ortega, 2017) In this section, a short review about literature on leadership theories and approaches is demonstrated to get a clear perception of an overall picture of leadership theories

and diverse development during the last decades The aim of this approach is to reveal the reasons why the author decides to choose authentic leadership to discuss

in the current study

b) Style approach

Style approach studies suggested that people can be trained to lead Research tended to behaviors of specific leaders started in the 1940s and was led by two different studies: The Ohio State studies, the University of Michigan studies Similarly, Blake and Mouton's (1964) managerial grid continued pay attention to

this approach (Northouse, 2013; Tran et al., 2015) The research approaches focus

on two perspectives of leader’s behaviors: Task oriented behavior and relationship oriented behavior All together, Ohio State, Michigan research and Blake & Mouton’s Leadership Grid found that the ideal leader is always both performance and maintenance oriented (Katz et al., 1950; Katz et al., 1951; Katz and Kahn, 1952; Likert, 1961; Hernandez et al., 2011; Northhouse, 2013; Tran et al., 2015)

On the contrary, a number of limitations of this approach started to be considered in the 1960s Firstly, the relationship between the behaviors of leaders and the outcomes such as job satisfaction and productivity have not been investigated (Northouse, 2013) Next, because specific behaviors and actions of leaders may be relevant and effective at a particular point of time and noticeably depend on situational variables while at another, it could be out of the picture Therefore, the effect of time factor as well as situation has been ignored in this approach

d) Modernist leadership approach

Modernist leadership approaches clarify the differences between leadership phenomenon and management in term of enhancing subordinate’s motivation and engagement in the leader’s cause Northouse (2013) proposed that this perspective

began appearing in the mid-1980s, one of the newest leadership approach which embraces many models and developed theories of leadership For instance, transformational leadership, charismatic leadership, value-based leadership, individualized leadership, vertical dyad linkage, leader-member exchange, principle -centered leadership, multilevel and leaderplnex, implicit leadership theories, ethical leadership, romance of leadership, multiple linkage and influence tactics (Yammario et al., 2005; Avolio et al., 2009; Northouse, 2013) Because of the dynamic business environment as well as the impacts of development of science & technology, leadership trends reckon with a lot of changes and require more relevant leadership theories, adapt to the continuous movement of business contexts A new stage of leadership research is emerging

e) Postmodernist leadership approach

In the 21st century leadership theories have seen a significant concern with a variety of strategic approaches Emerging research on leadership development, is also concerned with traits or attributes (Wolff et al., 2002; Foti and Hauenstein, 2007) and experiences (Avolio et al., 2009) that predispose an individual to emerge

as a leader Encouragingly, scholars are beginning to appreciate the effects or outcomes of leaders by using a systematic approach (Lichtenstein and Plowman, 2009) with social contexts, such as shared leadership (Carson et al., 2007) and virtual teams (Balthazard et al., 2009) The leadership has involved with technology, labor, social, economic, and cultural changes as well as the needs of the organization change to respond to the turbulence and uncertainty of the environment The letters and follower relationship were no longer of main concern

to the study of leadership (Clegg et al., 2011) The postmodernist have paid increased attention to the ethical and moral values-based content of a leader’s behavior (Dinh et al., 2013) such as level-five leadership, authentic leadership, ethical leadership, self-leadership, electronic leadership, blue ocean leadership, empowering leadership, servant leadership, substitutes for leadership, and cross-

cultural leadership (Yammario et al., 2005; Avolio and Gardner, 2005; Gardner et al., 2011; Northouse, 2013; Dinh et al., 2013) The postmodernist perspective to leadership and development should be integrated in further studies to identify, leverage the advances in awareness of leadership and organization performance The purpose of discussion of the general picture of leadership theories and evolution has reviewed the literature on leadership approaches and investigated the ways in which field leadership is developing Through this section, the perception

of leadership is deeply understood In addition, leadership theories are built up and applied to different periods of time, based on the development process in order to adapt to the dynamic environment and various cultural contexts Notably, the models of leadership and their effectiveness is combined with certain contextual factors Moreover, the influences of leadership approaches in the relationship with organization‘s outcomes need to be considered logically to determine what, how and when leadership is operating effectively

2.1.3 Authentic leadership (AL)

In the earliest stage of authentic leadership theory with original models of authentic leadership, Luthans and Avolio (2003) noted that the theory arose from the nexus of positive organizational behavior, transformational/full-range leadership development, and work on ethical and moral perspective-taking capacity Moreover, they revealed that such leadership worked when “[an individual is] true to him/herself and the exhibited behavior positively transforms or develops associates into leaders themselves” (Gardner et al., 2011, p 1120) Therefore, the mechanism

of influence involved role modeling and arose from the leader’s alignment of his or her behavior with core personal values and beliefs Since followers observed such behavior, they were often positively affected by the leader and impacted to likewise adjust their values and actions Furthermore, Avolio and Gardner (2005) suggested that authentic leadership constitute the ‘root construct’ that underlies positive forms

of leadership such as transformational and transactional leadership, ethical leadership, servant leadership theories

Although authentic leadership has been only recognized broadly in recent decades and seen as one of emerging leadership theories, previous researchers advanced a variety of definitions of leader authenticity or AL over time as the table 2.1 (see Appendix 2.1) Based on intensive review of the definitions, content analysis of authentic leadership as well as the development of leadership theories in recent studies This current study’s conceptualization of AL was based at Walumbwa et al., (2008) This construct involving four particular dimensions are

identified: Self-awareness refers to a leader’s understanding of how one derives

and makes meaning of the world and how that meaning making process impacts the way one views himself or herself over time (Garner et al., 2011) This understanding is also to present recognition of one’s strengths and weaknesses and the multifaceted nature of the self Through interaction with other, leader with high self - awareness, gain valuable insight into the self through exposure to others, and

being cognizant of one’s impact on other people (Kernis, 2003) Relational transparency involves the presentation of one’s authentic self to others Such

behavior promotes trust through disclosures that involve openly sharing information and expressions of one’s true thoughts and feelings while trying to minimize

displays of inappropriate emotions (Kernis, 2003) Balanced processing of information demonstrates a leader who shows that they objectively analyze all

relevant data before coming to a decision In addition, authentic leaders seek out objective information even if it challenges their preexisting notions (Garner et al., 2011) Such leaders also solicit views that challenge their deeply held positions

(Gardner et al., 2011) Finally, an internalized moral perspective refers to a leader

holding and adhering to core standards, ethical values, and principles as an act of personal choice Additionally, it is also an internalized and integrated form of self-regulation “guided by internal moral standards and values versus group, organizational, and societal pressures” and “results in expressing decision making

and behavior that is consistent with these internalized values” (Walumbwa et al.,

2008, p 96)

As discussed in previous sections, scholarly research on the leadership topic has seen a considerable increase over the last decade, resulting in a variety of leadership models and theories In recent years, scholars have shown increased concern toward

to emerging leadership theories such as transformational and transactional leadership, ethical leadership, shared leadership However, almost studies on leadership models, especially authentic leadership have been conducted in Western culture with high perception of leadership Gardner et al., (2011) revealed that from 2003 to 2010, there were two Asian countries in which studies on authentic leadership were examined, China and Singapore Thus, after conducting

an extensive review on authentic leadership, scholars noted that future research should present more concern toward expansion of the nomological network for AL, including two test AL in other contexts (e.g, national and organizational culture; industry and occupation) that affect to awareness and understanding of AL (Gardner

et al., 2011) Also, in this current study, in order to examine the relationships Furthermore, AL seems associated with important outcome variables in the organization Still, the mechanisms through which AL works are not clear in varied context Thus, the present study continues to examine the leadership in the connection to employee-organization relationships This approach embraces broader perspectives and focuses on communication role of authentic leaders, especially in collectivist culture and leadership’s perception shortage as Viet Nam Also, employees in this view are considered as a stakeholder of organizations and they play an integral role in enhancing the relationship with their organizations

2.1.4 Symmetrical internal communication (SIC)

The symmetrical internal communication is originated from Grunig’s Excellence Theory (1984) about the two-way symmetrical communication model Grunig (1992) proposed that employees are one of the key stakeholders of organizations

Thus, these organizations need to approach their employee relation similar to their relationship with customers, suppliers, stockholders “Excellent programs of employee communications are based on the concepts of strategic management, an integrated communication function, and the managerial role, and the two-way symmetrical model of public relations” (Grunig, 1992, p 536) Later, in 2006, based on Murphy’s (1991) description of a mixed-motive model, Grunig (2006) suggested that the aim of a symmetrical model focus on the ways in which an individual, organizations, and the public adopt communication to adjust their opinions, attitudes and behaviors, rather than trying to control or manipulate how the other party thinks or behaves Furthermore, in organizational contexts, symmetrical internal communication is as communication efforts for symbiotic interests that is characterized by its emphasis on “trust, credibility, openness, relationships, reciprocity, network symmetry, horizontal communication, feedback, adequacy of information, employee centered style, tolerance for disagreement, and negotiation” (Grunig, 1992, p 558) As a result, it’s nature and aims is to establish dialogues, interaction and promote mutual understanding between the organization and its employees Grunig (2011) found that symmetrical internal communication

is based upon principles of employee empowerment and participation in making and often associated with a participative organizational culture and an organic structure Because of the strategic importance of this element in developing organizations, many researchers have carried out studies related to the positive associations of internal symmetrical communication and employee outcomes, such

decision-as job satisfaction, identification, loyalty, employee-organization relationships, and employee communication behavior (Grunig et al., 2002; Jo and Shim, 2005; Smidts

et al., 2001; Kim and Rhee, 2011; Men and Stacks, 2014; Kang, 2017)

2.1.5 Employee – organization relationships (EORs)

Employees are one of the strategic factors in any organizations In other words, the mission and vision as well as the success of an organization cannot be fulfilled

if not identifying employee as a resource needed to invest and maintain a

sustainable relationship Therefore, an employee-organization relationships are always the core subject of many studies Over the last decades, a researcher has conducted numerous studies related to EORs in the association with variedantecedents and outcomes Besides that, through their research, scholars attempt to define this term An EOR is “an overarching term to describe the relationship between the employee and the organization” (Shore et al., 2004, p 292) Kim and Rhee (2011, p 251) noted that if employees have had positive attitudes and behaviors as well as experienced good long-term relationships with their organization, “they are likely to consider organizational problems as their own, and are thus likely to forward and share the supportive information for their organization during the organizational turbulence” Moreover, Tsui and Wang (2002, p 78) demonstrated the EOR as “the formal and informal, the economic, social, and psychological connection between an employee and his or her employer” Likewise, Men (2011b) refers an employee-organization relationship as the degree in which trust is considered as the fundamental connection between an organization and its employees and agree on who has the rightful power to influence, experience satisfaction with each other, and commit oneself to the other

2.2 Hypothesis development

2.2.1 Authentic leadership and symmetrical internal communication

Authentic leaders are generally highly aware of their values, and are more likely

to act in accordance with them Through their consistent actions, they become a role model for their followers Based upon their openness and truthfulness, an openly sharing environment is created in their organization In this respect, Walumbwa et al., (2008); Walumbwa et al., (2010) argued that authenticity is often accompanied

by open communication, disclosure, and the expressions of one’s true and genuine thoughts and feelings (as cited in Men and Stacks, 2014) Likewise, authentic leaders recognized that, once they are true to their self, their followers, in turn, an accurate flow of information will come to them Then, the importance of two-way

internal communication is always embraced in organizations in which authentic leaders lead With the aim of maintaining sustainable relationships with subordinates, authentic leaders truly care about the employees’ well-being Notably, they highly emphasize the symmetrical notion of non manipulations of followers (Walumbwa et al., 2010, cited in Men and Stack, 2014) Also, in the AL construct suggested by Walumbwa et al., (2008), one of the core dimensions of AL is balanced processing of information which refers to key responsibilities of authentic leadership in processing information to make decisions In other words, leaders with authentic leadership don’t hesitate to reckon with any issues, even these matters brings negative impacts for them Interestingly, authentic leaders willing to support

an open and fair working environment with transparent information for their employees (Men and Stacks, 2014) Particularly, to the extent possible, authentic leaders disclose work related information in a transparent and open fashion, as long

as doing so does not violate the privacy or safety of others Additionally, when undesirable situations occur and full disclosure would be inappropriate, such leaders release as much information as possible, while communicating the reasons for not withholding certain facts As a result, followers catch up with the reasons behind a leader’s decision, which limits the fear of the unknown and fosters feelings of trust (Garner et al., 2011) Similarly, due to their highly self-awareness and internalized moral perspective, authentic leaders open to feedback, whether it is good or not about themselves Thus, authentic leadership communication is characterized by openness, consistency, transparency, truthfulness, and accountability (Men and Stack, 2014) Moreover, Men (2014) reports a positive correlation between authentic leadership and symmetrical internal communication The study also demonstrated the role of leadership communication with followers in internal communication setting Also, the author notes that when employees are supervised

by authentic leaders, they are more likely to perceive the organization’s communication as symmetrical

Based on the above mentioned discussion, this study, therefore hypothesizes that:

H1: Authentic leadership has a positive effect on a symmetrical communication

2.2.2 Authentic leadership and employee-organization relationships

Authentic leadership has been linked to diverse antecedents and outcomes, both theoretically and empirically (Gardner et al., 2011) Many researchers provided evidence that authentic leadership can be great for any organization or team Overall, the Gardner et al (2011) review proposes that authentic leadership is connected to the positive leader (psychological well-being), positive follower’s behaviors and attitude such as empowerment, job outcomes, job satisfaction, organizational citizenship behaviors, employee engagement, trust in leadership, motivation, innovation to work and organizational outcomes (openness of organizational climate and firm financial performance) Scholars also present the negative relationship between Al and undesirable outcomes as follower burnout (Gardner et al., 2011) Together, these results provide evidence of predictive validity of the authentic leadership construct Authentic leadership gets more attention due to increasing changes of business environment and crisis periods People believe that authenticity is crucial element that leaders need to have in order

to lead their organization successfully in a dynamic environment as today Therefore, there is a variety of research, noting a positive linkage between AL and various outcomes such as perceived leader effectiveness (Moriano et al., 2011), follower extra effort (Moriano et al., 2011), satisfaction with the leader (Moriano et al., 2011; Neider and Schriesheim, 2011), follower basic need satisfaction (Leroy et al., 2012b), follower organizational commitment (Neider and Schriesheim, 2011), follower affective commitment (Leroy et al., 2012b), follower social exchange (Chiaburu et al., 2011), follower creativity (Chiaburu et al., 2011), follower work role performance (Leroy et al., 2012b), positive (Woolley et al., 2011) and collective psychological capital (Woolley et al., 2011), organizational citizenship behavior (Walumbwa et al., 2011), positive work environments (Walumbwa et al., 2011), group level performance (Woolley et al., 2011), firm level performance,

team trust (Walumbwa et al., 2011), team authenticity (Hannah et al., 2011), and teamwork behavior (Hannah et al., 2011) Likewise, Gardner et al., (2011) also carried out an extensive review of authentic leadership literature, studies on authentic leadership from 2003 to 2010 These authors provide that existing 91 publications that focus on authentic leadership, including theoretical, empirical, and practitioner studies The literature has presented a wide range of positive authentic leadership outcomes, including positive attitude and behaviors Walumbwa et al., (2008) and Wong and Cummings (2009) found that authentic leadership contribute

to employee job performance and trust Also, authentic leaders link to identify with the leaders, organizational citizenship behavior, employee engagement (Walumbwa

et al., 2010) A study of Jensen and Luthans (2006) with a sample of 179 respondents reveals that authentic leaders have positive impacts on employee work happiness and organizational commitment

Authentic leaders are identified with consistent actions based on their value What they say, they act is associated with their fundamental and deeply rooted shared values with the organization and high moral standards Thus, authentic leaders increase their follower’s trust and commitment (Berger, 2008) Similarly, Men (2011b) suggested that employees’s favorable identification of the organization and employee engagement is cultivated by the perceived credibility of

an organization’s senior leadership Next, when the organization’s leadership is considered as trustworthy and credible, employees tend to engage the organization more Identical notions may also be applied to the employee’s immediate leaders Additionally, authentic leaders easily to become a role model for their subordinates because they never ignore their follower’s perspectives and utilize such inputs in making decisions They openly share information fairly and transparently with employees, and are oriented toward building a quality relationship with them A positive environment, including higher levels of disclosure, transparency, two-way communication, and relationship orientation characterized by authentic leadership, establishes a context where employees feel trusted and empowered Based on these

certain contributions, employee trust, control mutuality, satisfaction, and commitment to the organization are boosted Therefore,

H2: Authentic leadership has a positive effect on employee-organization relationships

2.2.3 Symmetrical communication and employee-organization relationships

Previous studies have provided a variety of evidence that indicates the effectiveness of symmetrical internal communication in fostering employee- organization relationships Kim and Rhee (2011) argued that symmetrical internal communication and EORs are antecedents influencing on communication behaviors

of the leaders The study also reports a significant positive correlation between symmetrical internal communication and employee-organization relationships In the line with this, Vu (2013) investigated the effects of four-dimensional internal communication construct on employee engagement with a sample of employees working in Ho Chi Minh large companies The author notes that effective internal communication enhances employee engagement and makes a significant contribution for company’s development In addition, Men (2014); Men and Stacks (2014) and Kang (2017) also suggested that symmetrical internal communication has a strong connection to employee-organization relationships Furthermore, Grunig et al., (2002) noted that excellent employee communications could ultimately nurture quality employee relationships and supportive employee behaviors toward the organizations

Besides that, with its definition as “trust, credibility, openness,… reciprocity, network symmetry, horizontal communication, feedback,… negotiation’’ (Grunig,

1992, p 558; cited in Kim and Rhee, 2011, p 252) This demonstrates the impacts

of symmetrical communication efforts on the quality of employee-organization relationships

Based on the above mentioned discussion, this study, therefore hypothesizes that:

H3: Symmetrical internal communication has a positive effect on employee – organization relationships

2.3 Research model

After reviewing the literature above, the following conceptual model has been developed Figure 2.1 depicts a conceptual model explaining the role of authentic leadership in symmetrical communication and subsequently in employee-organization relationships Notably, the model proposes that authentic leadership has a positive effect on employee-organization relationships through symmetrical internal communication

Figure 2.1 Research model

2.4 Chapter summary

This chapter presented an intensive review of three key concepts in the present research based on previous studies A clear view of the notion of authentic leadership was illustrated followed by an emphasizing on symmetrical internal communication and employee-organization relationships All of these three constructs were considered carefully before the official definitions were provided to support for the current study Although, there were so many views of authentic

Authentic leadership

Symmetrical internal communication

Employee – organization relationships

H1 (+)

H3 (+)

H2 (+)

leadership, symmetrical internal communications as well as EORs in previous studies, the researcher decided to choose the relevant views to apply to the present study Further, chapter 2 also demonstrated a particular investigation about the impact of authentic leadership on symmetrical internal communication and EORs Based on literature review of three concepts, the findings of previous research as well as the research models which were tested before, three hypotheses are developed After that, a research model for was built The methodology for testing the research model and hypotheses was described in the next chapter.

CHAPTER 3: METHODOLOGY

The purpose of this chapter is to provide methodological approach First, the research of paradigm was presented to determine research problems and methods to explore these problems Then, the research procedure and the sample description were illustrated to clarify how the current study is conducted Furthermore, the measurement scales were given to develop questionnaires, followed by data collection method After that, an in-depth interview with a sample of six participants was conducted to adjust measurement scales and make these scales clearer, understandable as well as relevant to Vietnamese context Based on the above steps, the final questionnaire was given to respondents in the main quantitative research and data of quantitative survey was used to examine the measurement and structural models

3.1 Research paradigm

With the aim of determining research problems and the ways how to explore these problems, a research paradigm is presented (Perry et al., 1999) As suggested above, the effects of authentic leadership on symmetrical communication and employee-organization relationships were not clearly investigated in Vietnam Scholars and managers have not paid adequate attention to this strategic phenomenon Therefore, two phrases of study, including a qualitative research and

a quantitative study were conducted to achieve the purposes of the current study First, qualitative study is used because of its advantages depending on proving qualitative research characteristics According to Denzin and Lincoln (2000); Anderson (2010); Merriam and Tisdell (2016), a large quantity of rich, detailed, informative data is generated through the quantitative method Besides, these data leave the participant’s perspectives intact and provide multiple, various contexts for understanding the phenomenon under study In this respect, qualitative studies can be utilized to vividly describe phenomena as well as to conduct cross-case

comparisons and analysis of individuals or groups Based on the contributions of qualitative method, the measurement scales, including authentic leadership scale, symmetrical internal communication scale, EORs scale in the present study are adjusted to ensure the content validity and associated with research subject Moreover, conducting qualitative research also captures contextual factors, cultural factors into investigating the research problem (Marshall and Rossman, 1995; Denzin and Lincoln, 2000; Merriam and Tisdell, 2016)

Second, a main quantitative research is conducted based on the findings of the qualitative study Unlike the qualitative method, the quantitative one focuses on gathering data in order to examine scientific literature assumed form given literature (Babbie, 2010) Regarding the given purposes of the current study, the quantitative study technique is necessary to determine the relationship among variables within a population Clearly, in the research model above, the linkages between independent variables, mediate variable, dependent and moderate variables can be logically examined based on the applied specific techniques of quantitative method Also, specific variables contained within the study framework are recognized and isolated based on the this study technique Besides, the validity and reliability of measurement scales are presented through employing prescribed procedures (McNabb, 2008; Babbie, 2010; Brians and Manheim, 2011) Likewise, the quantitative study allows greater objectivity and accuracy of results as well as construct statistical models in an attempt to explain what is observed

3.2 Research procedure

Based on the purposes of the current study, the capabilities of the author, time limit as well as methodology, analysis above, the procedure of the present research were described in the Figure 3.1 below

3.3.1 Authentic leadership scale (AL)

This construct was assessed using Authentic Leadership Inventory (ALI) 14-item scale of Neider and Schriesheim, which comprises four dimensions: Self-awareness consisting three items; relational transparency containing three items; internalized moral perspective consisting four items and finally, balanced processing capturing four items

& Hypotheses development

Factor Analysis

Structural Equation Modeling

Table 3.1 Scale items of Authentic leadership

Authentic leadership Code

4 My manager clearly states what he/she means ALR1

5 My manager openly shares information with others ALR2

6 My manager expresses his/her ideas and thoughts clearly to

others

ALR3

Internalized moral perspective

7 My manager shows consistency between his/her beliefs and

actions

ALI1

8 My manager uses his/her core beliefs to make decisions ALI2

9 My manager resists pressures on him/her to do things contrary

11 My manager asks for ideas that challenge his/her core beliefs ALB1

12 My manager carefully listens to alternative perspectives

before reaching a conclusion

3.3.2 Symmetrical internal communication (SIC)

This measurement scale was adapted from Kang 2017 and Dozier et al, (1997) with some modifications based on reviewing literature as well as capturing Vietnamese context in constructing measurement of the author As a result, final symmetrical internal communication scale was presented bellow

Table 3.2 Scale items of Symmetrical internal communication

Symmetrical internal communication Code

15 Most communication between managers and other employees

in our company can be said to be two-way communication

S1

16 Our company encourages differences of opinion S2

17 The purpose of communication in our company is to help

managers to be responsive to the problems of other employees

S3

18 I am usually informed about major changes in policy that

affect my job before they take place

S4

19 I am comfortable talking to my manager when things are

going wrong

S5

Source: Kang (2017) and Dozier et al., (1997)

3.3.3 Employee-organization relationships (EORs)

Employee-organization relationships were accessed along the dimensions of trust, satisfaction, commitment, control mutuality in Grunig and Huang (2000)’s 12 item-scale

Table 3.3 Scale items of Employee-organization relationships

Employee – organization relationships Code

Trust

20 Whenever this company makes an important decision, it will

be concerned about me

ET1

21 This company can be relied on to keep its promises ET2

22 I believe that this company takes my opinions into account

when making decisions

ET3

Satisfaction

23 I am happy with this company ES1

24 I am not happy in my interactions with this company ES2

25 Both the organization and I benefit from the relationship ES3

28 Compared to other organizations, I value my relationship with

this company more

EC3

Control mutuality

29 This company and I are attentive to what each other say EM1

30 This company believes my opinions are legitimate EM2

31 This company has a tendency to throw its weight around EM3

Source: Grunig and Huang (2000)

3.4 Qualitative study

3.4.1 Sampling

Firstly, six potential participants were selected from different positions, including one senior manager, two middle managers, one supervisor and two employees