Impacts of human resource practices on organizational engagement and turnover intention case of business employees in ho chi minh city

MINISTRY OF EDUCATION AND TRAINNING UNIVERSITY OF ECONOMICS HCM CITY  TRƯƠNG QUỐC CƯỜNG IMPACTS OF HUMAN RESOURCE PRACTICES ON ORGANIZATIONAL ENGAGEMENT AND TURNOVER INTENTION: CASE OF BUSINESS EMPLOYEES IN HO CHI MINH CITY MASTER OF BUSINESS ADMINISTRATION THESIS Ho Chi Minh City – 2019 MINISTRY OF EDUCATION AND TRAINNING UNIVERSITY OF ECONOMICS HCM CITY  TRƯƠNG QUỐC CƯỜNG IMPACTS OF HUMAN RESOURCE PRACTICES ON ORGANIZATIONAL ENGAGEMENT AND TURNOVER INTENTION: CASE OF BUSINESS EMPLOYEES IN HO CHI MINH CITY Major: Business administration (research) Code: 8340101 MASTER OF BUSINESS ADMINISTRATION THESIS SUPERVISOR: Assoc.Prof Dr TRẦN THỊ KIM DUNG Ho Chi Minh City - 2019 ACKNOWLEDGEMENT I would like to express my deepest gratitude and appreciation to my research supervisor, Assoc Prof Dr Trần Kim Dung for her valuable ideas, guidance, suggestions and supports for this thesis I would like to thanks all lectures of the MBA class who gave us all knowledge, guidance during the course And it was a memory time during the course studying with MBA class member, together we faced and overcame all difficulties and finished the course And I also would like to thanks all my friends and my colleagues who helped me during conducting survey and data analysis Finally, I am grateful to my family for caring, encouraging and supporting me during my studying till now Ho Chi Minh City, March 7th 2019 Truong Quoc Cuong COMMITMENT I hereby declare that the thesis with title “Impacts of HR practices on organizational engagement and turnover intention, case of employees in Hochiminh City” is my study that was adviced by Assoc Prof Dr Tran Kim Dung All information in this thesis has been obtained and presented in concordance with academic rules and ethical conduct I am fully charged of responsibility for all content of this research Hochiminh city, March 07th 2019 Truong Quoc Cuong TABBLE OF CONTENT COMMITMENT LIST OF ABBREVIATION LIST OF TABLES LIST OF FIGURES ABSTRACT CHAPTER 1: INTRODUCTION 1.1 Research background 1.2 Objectives for study 1.3 Research scope and approach 1.4 Research methodology 1.5 Theoretical and practical significance of study 1.6 Structure for this study CHAPTER 2: LITERATURE REVIEW AND RESEARCH MODEL 2.1 Concepts definition and concepts measurement 2.1.1 Organizational engagement 2.1.2 Human resource practices (HR practices) 15 2.1.3 Turnover and Turnover intention 21 2.2 Relevant researches and relationship of concepts 25 2.2.1 Relevant researches 25 2.2.2 The effects of HR practices on turnover intention 27 2.2.3 HR practices and engagement 28 2.2.4 Organizational engagement and turnover intention 31 2.2.5 Mediating role of organizational engagement 32 2.3 Hypotheses and research model 33 CHAPTER 3: RESEARCH METHODOLOGY 35 3.1 Method of research 35 3.2 Research design and process 35 3.3 Qualitative research 38 3.5 Method of data analysis 46 CHAPTER 4: RESULT OF DATA ANALYSIS 53 4.1 Descriptive data analysis 53 4.2 Normal distribution examining 54 4.3 Reliability of measurement scales 54 4.4 Explore Factors Analysis 55 4.5 Confirmatory Factor Analysis (CFA) 57 4.6 Checking hypothesis and research model 66 CHAPTER 5: CONCLUSIONS AND IMPLICATIONS 71 5.1 Research conclusions 71 5.2 Research contributions 73 5.3 Managerial implications 74 5.4 Limitations and recommendations for further research 74 REFERENCES APPENDIX LIST OF ABBREVIATION Abbreviation Full word AVE Average variance extracted CM Career management CFA Confirmatory Factor Analysis CFI Comparative Fit Index Chi-sq, 𝜒2 Chi-square CP Compensation CR Construct reliability df Degree of freedom EFA Exploratory Factor Analysis EE Employee engagement GFI Goodness -of Fit Index HR Human resource KMO Kaiser - Meyer - Olkin RMSEA Root Mean Square Error Approximation SE Selection SEM Structural Equation Model Sig (p) Significance of Testing (p-value) SET Social exchange theory TLI Tucker and Lewis Index TI Turnover intention LIST OF TABLES Table 2- 1: Summary researchers about engagement 12 Table 2- 2: Components of HR practices 18 Table 3- 1: PA scale 40 Table 3- 2: CD scale 41 Table 3- 3: SE scale 42 Table 3- 4: CP scale 43 Table 3- 5: OE scale 44 Table 3- 6: TI scale 44 Table 3- 7: Sample size 45 Table 3- 8: Fit index of CFA 50 Table 3- 9: Formula of CR, AVE 51 Table 4- 1: Description of sample 54 Table 4- 2: Summarized Cronbach Alpha test for all variables 55 Table 4- 3: EFA result with factors 56 Table 4- 4: Discriminant validity and construct reliability of HR practices scale 58 Table 4- 5: Construct reliability of pooled model 62 Table 4- 6: Unidimensionalityality of the pooled model 62 Table 4- 7: Discriminant validity of pooled model 63 Table 4- 8: The relationship of all concepts 67 Table 4- 9: The total effect of HR practices on turnover intention 68 Table 4- 10: Comparing effect of HR practices on TI, OE 70 LIST OF FIGURES Figure 2- 1: Research model of Juhdi et al (2013) 25 Figure 2- 2: Research model of Chughtai (2013) 26 Figure 2- 3: Proposed research model 34 Figure 3- 1: research process 37 Figure 4- 1: The CFA construct model of HR practices 59 Figure 4- 2: The CFA of pooled measurement model 65 Figure 4- 3: the analysis result of research model 66 ABSTRACT The purpose of this study is examining the relationship of HR practices (Selection, performance appraisal, compensation and career management) with Organizational engagement (OE) and Turnover intention (TI) Basing on previous research frameworks, the study still tests the negative impact of both HR practices and OE on TI And tests positive impact of HR practices to OE and the mediating role of OE in relationship of HR practices and TI The survey was conducted with total 405 employees who are working as staff in various sectors in Ho Chi Minh City and studying at UEH The data was collected by mainly face to face survey; then it was analyzed using SPSS and AMOS software The results were found that: all the adjusted, developed variables scales used to measure HR practices, OE and TI met the criteria of liability and fitness validity; HR practices with componentes had significant effect on OE and TI PA had strongest effect on OE (β=0.334) while SE had weakest effect on OE (β=0.083) Each component of HR practices had its own effect on TI SE had strongest negative effect on TI (β=-0.454) and CM had weakest negative effect on TI (β=-0.017) OE had important role to predict TI (β=-0.424) The result proved that OE played mediator in relationship between HR practices and TI The study also discussed and proposed about contributions, limitations and managerial implications Key words: HR practices, Organizational engagement, Turnover intention, employees ...MINISTRY OF EDUCATION AND TRAINNING UNIVERSITY OF ECONOMICS HCM CITY  TRƯƠNG QUỐC CƯỜNG IMPACTS OF HUMAN RESOURCE PRACTICES ON ORGANIZATIONAL ENGAGEMENT AND TURNOVER INTENTION: CASE OF. .. essence of this study in practice and theory, the main achieving goals of this study: Examing impacts of human resource practices on organizational engagement and turnover intention, case of employees. .. OF BUSINESS EMPLOYEES IN HO CHI MINH CITY Major: Business administration (research) Code: 8340101 MASTER OF BUSINESS ADMINISTRATION THESIS SUPERVISOR: Assoc.Prof Dr TRẦN THỊ KIM DUNG Ho Chi Minh