Organizational culture, employees job satisfaction and turnoverintention in the hotel industry in thai nguyen province

ORGANIZATIONAL CULTURE, EMPLOYEES’ JOB SATISFACTION AND TURNOVER INTENTION IN THE HOTEL INDUSTRY IN THAI NGUYEN PROVINCE A DISSERTATION PAPER Presented to the Faculty of the Graduate Program of the College of Business and Accountancy Central Philippine University, Philippines In Collaboration with Thai Nguyen University, Vietnam In Partial Fulfillment Of the Requirements for the Degree DOCTOR OF MANAGEMENT NGUYEN VAN THONG February 2019 CAMPAIGNS I pledge that this is my own research The data stated in the thesis is true, all citations are indicated origin The research results of the dissertation were published in the scientific journal, not identical with any other works The author of the thesis Nguyen Van Thong i LỜI CAM ĐOAN Tôi xin cam đoan cơng trình nghiên cứu riêng tơi Các số liệu nêu luận án trung thực, trích dẫn rõ nguồn gốc Những kết nghiên cứu luận án tác giả công bố tạp chí khoa học, khơng trùng với cơng trình khác Tác giả luận án Nguyễn Văn Thông ii ACKNOWLEDGEMENT The author wishes to convey the gratitude to the following persons who wholeheartedly devoted and helped make this piece of work a reality: To Associate Prof Do Anh Tai and PhD Pham Van Hanh for his advices, guidance, supervision, suggestions and precious time in enthusiastically reading and checking the manuscript, providing the author useful materials; To the leadership of International Cooperation Center for Training and Study Abroad and their staff for their enthusiasm to support executive for the participants completed the study program To the faculties and researchers of Thai Nguyen University of Economics and Business Administration and the respondents of the study, for their active involvement and cooperation which made the conduct of the study possible; To my family and friends for their love and support in one way or another, and to all who have contributed to make this study a success Thank you so much! NGUYEN VAN THONG LỜI CẢM ƠN Tác giả mong muốn truyền tải lòng biết ơn đến người sau hết lòng cống hiến giúp đỡ tác giả trở thành thực: Tôi xin bày tỏ lòng biết ơn sâu sắc tới PGS.TS Đỗ Anh Tài TS Phạm Văn Hạnh người hướng dẫn khoa học tận tình giúp đỡ định hướng để tơi hồn thiện Luận án Trong q trình học tập nghiên cứu, nhận hỗ trợ giúp đỡ tận tình từ Ban Giám hiệu, Lãnh đạo cán Trung tâm Hợp tác Quốc tế Đào tạo Du học, Lãnh đạo Khoa Kinh tế tồn thể thầy giáo Trường Đại học Kinh tế Quản trị Kinh doanh - Đại học Thái Nguyên Đại học Central Philippine, xin ghi nhận chân thành cảm ơn Cuối cùng, tơi xin bày tỏ lòng biết ơn tới đồng nghiệp, bạn bè gia đình ln kịp thời động viên, chia sẻ tạo điều kiện tốt giúp tơi hồn thành luận án Tác giả Luận án Nguyễn Văn Thông TABLE OF CONTENTS CAMPAIGNS i LỜI CAM ĐOAN ii ACKNOWLEDGEMENT iii LỜI CẢM ƠN .iv TABLE OF CONTENTS v LIST OF TABLE viii LIST OF FIGURES x ABSTRACT xi CHAPTER THE PROBLEM AND ITS SETTING 1.1 Background and Rationale of the Study 1.2 Objectives 1.3 Theoretical Framework 1.4 Conceptual Framework 1.5 Hypotheses 11 1.6 The Operational Definitions 13 1.7 Significance of the Study 16 1.8 Scope and Delimitation 16 CHAPTER LITERATURE REVIEW 18 2.1 Organizational Culture in Service Businesses 18 2.2 Job Satisfaction 21 2.3 Turnover Intention 26 2.4 Influence of Organizational Culture on Employee Job Satisfaction 32 2.5 Influence of Organizational Culture on Employee Turnover Intention 35 2.6 Mediating role of Employee’s Job Satisfaction 37 2.7 Related studies 37 CHAPTER METHODOLOGY 44 3.1 Research Design 44 3.2 Population, Sample Size, Sampling Technique 46 3.3 Research Instruments 48 3.4 Reliability and Validity test 51 3.5 Data Collection Procedures 61 3.6 Data Analysis Procedures 62 CHAPTER DATA PRESENTATION, ANALYSIS AND INTERPRETATION 64 4.1 Sample Profile 64 4.2 The Results of Descriptive Analysis 65 4.2.1 Descriptive Analysis for Clan Culture Scale 65 4.2.2 Descriptive Analysis for Adhocracy Culture Scale 67 4.2.3 Descriptive Analysis for Market Culture Scale 68 4.2.4 Descriptive Analysis for Hierarchy Culture Scale 70 4.2.5 Descriptive Analysis for Employees’ Job Satisfaction Scale 72 4.3 Confirmatory Factor Analysis and Hypotheses Testing 72 4.4 Hypothesis Testing 82 CHAPTER SUMMARY, CONCLUSIONS AND RECOMMENDATIONS 94 5.1 Summary 94 5.2 The Current Situation of Business of Hotels in Thai Nguyen Province 96 5.3 Recommendations 98 REFERENCES 103 APPENDIX .108 vii LIST OF TABLE Table 1.1 Table 1.2 Table 3.1 Employees’ Satisfaction Scale 14 Turnover Intention Scale 15 The number of hotel and respondents 47 Table 3.2 List of Items 48 Table 3.3 List of Items (continue) 50 Table 3.4 Factor Pattern and Reliability of Organizational Culture 52 Table 3.5 EFA for Clan Culture Scale 56 Table 3.6 EFA for Adhocracy Culture Scale 57 Table 3.7 EFA for Market Culture Scale 58 Table 3.8 EFA for Hierarchy Culture Scale 58 Table 3.9 EFA for Job Satisfaction Scale 59 Table 3.10 EFA for Turnover Intention Scale 60 Table 3.11 Scale Reliability 61 Table 4.1 Characteristics of Sample 64 Table 4.2 The Descriptive Statistic Results of Clan Culture Scale 65 Table 4.3 The Descriptive Statistic Results of Adhocracy Culture Scale 67 Table 4.4 The Descriptive Statistic Results of Market Culture Scale 69 Table 4.5 The Descriptive Statistic Results of Hierarchy Culture Scale 70 Table 4.6 The Descriptive Statistic Results of Hierarchy Culture Scale 72 Table 4.7 Confirmatory Factor Analysis Results for Clan Culture Scale 74 Table 4.8 Confirmatory Factor Analysis Results for Adhocracy Culture 75 Table 4.9 Confirmatory Factor Analysis Results for Market Culture Scale 75 Table 4.10 Confirmatory Factor Analysis Results for Hierarchy Culture Scale 76 Table 4.11 Confirmatory Factor Analysis Results for Employee Job Satisfaction Scale 78 The results of this thesis suggest that organizations interested in retaining their most valuable assets - the employees- might find guidance in organizational culture The findings derived from various hotels in Thai Nguyen revealed that the two types of organizational culture - clan, adhocracy- contribute to less turnover intention among employees Among these four culture types, clan and adhocracy culture were the types of culture that showed full mediational influence on turnover intention suggesting that it indirectly affects turnover intention though job satisfaction The remaining two types of culture, market and hierarchy, showed partial mediational influence on turnover intention suggesting that both types of culture affect turnover intention directly and indirectly through job satisfaction The hotels should build the ability and habits of strategic thinking, ensuring equality in their businesses In addition, hotels in Thai Nguyen province need to develop and implement a system of regulations, rules, regulations, sharing responsibilities and authority to more subordinate levels, encourage community spirit in the hotels Hotels should have a comprehensive strategic plan, rather than a plan or general direction in the long run Hotels should use those strategic plans as a benchmark, applying it nimbly and flexibly to activities within the scope of that plan The hotels in Thai Nguyen also implement a fair mechanism, clearly publicize the construction plan, develop employees, help them see their future Indeed, rather than just shaping the corporate culture, hotels should build a corporate culture based on the strategic direction they set out on the basis of rational consideration The basic elements (customers, competitors, suppliers, potential entry, substitutes) will then gradually form a unique cultural identity and bring about high performance Trade unions in hotels in Thai Nguyen must also pay special attention to business leaders in building corporate culture, aiming to improve workplace relations in the workplace and increase labor productivity Hotels need to encourage the development of social learning in the community to create a knowledge base for building corporate culture Right in the hotels, the leaders need to be aware of the tremendous change of surroundings, and know how to make groundbreaking changes, to create new ideas, to facilitate changes Changes the culture of the hotels, adapt more quickly to changes in the business environment Leaders need to make clear statements about the mission, the mission of the hotels, to enhance internal consistency, avoid embarrassing staff ambiguity in action Hotels need a reasonable time for the change of corporate culture: From to 10 years Corporate culture is something that is tested in time, enough for the members to accept and share It is a process of integration between "approved culture" and "culture in reality" of the hotels Therefore, it is necessary to pay attention to the inheritance of the next gen eration leaders on the orientation of building corporate culture of the predecessor Leaders themselves need to be modest, easy to approach and ethical Lead by dedication, not greed, cultivate individual, not discriminate, be fair, be sure but never be small, be cheerful, be close to people, be forgiving Mistake, take risks and share sacrifices Need to exemplify their commitments, what they promised employees employees to learn responsibility and build trust in them Hotels in Thai Nguyen province need to have active activities in accordance with new values, new procedures:  Employee selection is tied to the value orientation of the hotels That is, in the selection, not only based on the knowledge and skills appropriate for the work but also to consider the suitability between the personality, perspectives of living and working employees with the direction of the value and corporate culture To build a corporate culture, hotels start by building a "recruiting culture" This is the first communication gateway between the hotels and the candidate, the future employees of the hotels A good first impression is always the premise for long-term cooperation and cohesion  Managers must lead by examples They are the symbol for employees to follow, from walking, talking and acting Training programs need to be updated to accelerate the process of bringing something new to the hotels Training, retraining, and promotion of positions, status symbols and promotion criteria should be consistent with the mission statement, the value of the hotel's direction  Attention to logo, slogans, languages, myths in the hotel, architecture and decoration colors so that the direction of action and behavior of the employees in accordance with corporate culture Mission statements and hotels’ logos are the factors that strongly influence the corporate culture  Regularly review the structure of the hotel, to direct the department into the workflow, in line with the value orientation and mission of the hotel itself Stumbling on the apparatus, see what is the most invariable is the psychology of the majority of Vietnamese  When expanding operations, changing tasks and reorienting basic values, the hotel needs to rebuild its internal regulatory system, to involve employees, gender Limit their habits into a common hotel framework  The hotel should organize the holiday season combined with communication skills training, communication through management games, towards building partnerships within the business unit At the same time, it is necessary to make use of holidays and Tet to evaluate the results of labor and reward, attach material incentives to the hotel's cultural activities for each individual to reflect on and behave appropriately The balance between the fruits of individual labor and collective cooperation  Hotels in Thai Nguyen area need to build their own unique business culture, not only bring the general characteristics of Vietnamese business culture but also bring the typical characteristics of good tradition, unique of each hotel In the context of international economic integration today, hotels should focus on creating and protecting their brands, because brand is an indispensable part of corporate culture, showing prestige and brand name This is the pride of the hotel, creating consumer confidence in the products and services provided by the hotel  Hotels should build a behavioral culture internally, which will help the hotels run smoothly with highly qualified, adhere to general principles In order to have a positive internal cultural environment, the hotel culture should be based on the following criteria: respect for colleagues, empowerment, fair compensation, fair recruitment and promotion, regulation The responsibility of using the assets of the hotel (cash, financial assets, facilities, tools, e-mail system, internet, computer data ) Behavioral culture with the outside also has the effect of enhancing the image of business in the marketplace PR-public relations require employees to be based on common interests and express the firm's basic mission to avoid the conflict between personal and business responsibilities To so, businesses need to apply two things: leadership and commitment to employees The external behavioral culture is characterized by: gifts (only acceptable traditional social gifts, no gifts exceeding social prescriptions); Work outside and develop the skills of employees, attitudes toward customers, businesses, suppliers, partners, and other organizations and individuals, and sensitive customer information Investment relations, shopping (absolutely not accept commissions, gifts, privileges, or outside activities from partners) REFERENCES Agho, A O., Price, J L., & Mueller, C W (1992) Discriminant validity of measures of job satisfaction, positive affectivity and negative affectivity Journal of Occupational and Organizational Psychology, 65(3), 185-196 Aksu, A., & Aktas, A (2005) Job satisfaction of managers in tourism: Cases in the Antalya region of Turkey Managerial Auditing Journal, 20(5), 479-488 Babakus, E., Yavas, U., &Karatepe, O M 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Boston, MA: Wadsworth Cengage Learning Yang, J T (2008) Effect of newcomer socialization on organizational commitment, job satisfaction, and turnover intention in the hotel industry The Service Industries Journal, 28(4), 429-443 Zanmoto, R.F (2001), Quantitative and qualitative studies of organizational culture, Research in organizational change and development, Vol pp 83-114 APPENDIX QUESTIONNAIRE I DEMOGRAPHICS AND PERSONAL INFORMATION The following items are requested for some statistical purposes only Please place a check mark or write the numbers in the categories that best describes you You are: Male Female Grade/Qualification: High School Undergraduate Income: Less than millions VND Age: Graduate From to 10 millions VND Over 10 millions VND Experience: Less than year From to years Over years II RESPONDENTS’ ASSESSION OF ORGANIZATIONAL CULTURE, JOB STASFACTION AND TURNOVER INTENTION Please read the following statements and circle the most appropriate numbers E1 m T hi Os C ho tel is T O he C he ad T O he Cm an T he O gl C ue th at T h e O cl Ci m at e T hi Os C ho tel de T hi Os C ho tel is T O he C he ad T he Om C an ag e T he O gl C ue th at T he O cli C m at e T hi O s C ho tel de T hi O s C ho tel is 109 O C O C O C O C O C O C O C O C O C 2 O C T he he ad of T he m an ag e m T he gl ue th T he cli m at e in T hi s h ot el d ef in e s T hi s ho tel T he he ad of T he m an ag e m T he gl ue th T he cli 110 O C pe r m an en Th is ho tel de fi ne E m E pl I Sa 1E m I Sa 2E m M Sy 3E w I Sa 4E m In Sm yE m E pl I T pl T E an I T of T E te I T int T E en I T int T en 111 ... INTENTION IN THE HOTEL INDUSTRY IN THAI NGUYEN PROVINCE Nguyen Van Thong This study is to examine the influence of organizational culture on employee job satisfaction and employee turnover intention... followings objectives: - Identify the influence of four types of organizational culture on job satisfaction of employees in hotels in Thai Nguyen province - Analyze the influence of job satisfaction. .. turnover intention of employees in hotels in Thai Nguyen province - Clarify the mediating role of employees job satisfaction in relationship among four types of organizational culture and turnover intention