Organizational culture and organizational citizenship behavior in the service industry

UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Nguyen Hoang Van ORGANIZATIONAL CULTURE AND ORGANIZATIONAL CITIZENSHIP BEHAVIOR IN THE SERVICE INDUSTRY MASTER OF BUSINESS (Honours) Ho Chi Minh City – Year 2012 UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Nguyen Hoang Van ORGANIZATIONAL CULTURE AND ORGANIZATIONAL CITIZENSHIP BEHAVIOR IN THE SERVICE INDUSTRY ID: 60340102 MASTER OF BUSINESS (Honours) SUPERVISOR: Dr Nguyen Huu Lam Ho Chi Minh City – Year 2012 ACKNOWLEDGEMENTS This thesis could not have been completed without the support, guidance and encouragement of many people First of all, I would like to express my genuine appreciation to my supervisor, Dr Nguyen Huu Lam, for the precious time of countless advice and sharing his wisdom of knowledge and experience in every stage of my study I could not have completed this research without his teaching, support and assistance I would also like to thank the committee members, Dr Nguyen Dinh Tho, Dr Nguyen Dong Phong, Dr Tran Ha Minh Quan, Dr Nguyen Thi Mai Trang and Dr Nguyen Thi Nguyet Que Thanks for their advice, willingness to help and insightful comments I am thankful to all staffs of International School of Business for their support and help during the last two years as well as their experience sharing There are also a lot of other professors, classmates, colleagues and friends who supported me in the long journey of my graduate study Lastly, I owe a great gratitude to my family I could not have completed this achievement without their continued support and encouragement Ho Chi Minh City, December 31st, 2012 Nguyen Hoang Van Organizational Culture and Organizational Citizenship Behavior in the Service Industry Page i ABSTRACT Research on organizational citizenship behavior (OCB) has received considerable attention over the past several decades OCB is defined as the discretionary contributions of employees that beyond a job description and not formally result in reward Previous research have identified a wide range of antecedents of OCB, including attitudinal variables (e.g., satisfaction, perceptions of justice, organizational commitment), individual characteristics (e.g., conscientiousness, agreeableness, positive affectivity) and elements within the organization (e.g., leadership, organizational supportiveness, task characteristics) The purpose of current study is finding out the correlation between organizational culture and OCB The research was done by quantitative approach Data was collected from 342 respondents who are employees from service companies in Ho Chi Minh City A two-step approach in SEM was employed to analyze the data Confirmatory factor analysis (CFA) was used to validate the measurement scale of organizational culture and organizational citizenship behavior And structural equation model (SEM) was used to measure the influence of organizational culture on OCB as well as measure the impact of each dimensions of organizational culture on OCB The statistical result identified that organizational culture has a positive impact on OCB Among seven dimensions of organizational culture, three dimensions affected positively on OCB: Competitiveness, Performance Orientation and Stability; four remain dimensions Social Responsibility, Innovation, Supportiveness and Emphasis on Reward did not impact on OCB Based on result of data analysis, managerial implications have been discussed; limitations and further research directions have also been indicated Organizational Culture and Organizational Citizenship Behavior in the Service Industry Page ii TABLE OF CONTENTS ACKNOWLEDGEMENTS ABSTRACT TABLE OF CONTENTS LIST OF TABLES LIST OF FIGURES CHAPTER I: INTRODUCTION I.1 BACKGROUND I.2 RESEARCH OBJECTIVE I.3 RESEARCH QUESTIONS I.4 SCOPE OF THE STUDY I.5 THESIS STRUCTURE CHAPTER II: LITERATURE REVIEW II.1 ORGANIZATIONAL CITIZENSHIP BEHAVIOR (OCB) II.1.1 Definition of Organizational citizenship behavior (OCB) II.1.2 The roots of OCB within organizational theory II.1.3 The development of the concept of OCB 10 II.1.4 OCB Dimensions: 12 II.1.5 Antecedents and Consequences of OCB 15 II.2 ORGANIZATIONAL CULTURE 16 II.2.1 Definition and the importance of organizational culture 16 II.2.2 Levels of organizational culture 18 II.2.3 Dimensions and types of organizational culture 19 Organizational Culture and Organizational Citizenship Behavior in the Service Industry Page iii II.3 RESEARCH HYPOTHESIS: 23 II.4 MODEL 25 CHAPTER III: RESEARCH METHODOLOGY 26 III.1 CONSTRUCT MEASUREMENT AND QUESTIONNAIRE 26 III.1.1 Questionnaire 26 III.1.2 Construct measurement 26 III.2 DATA COLLECTION AND SAMPLING 29 III.3 DATA ANALYSIS 30 CHAPTER IV: DATA ANALYSIS 32 IV.1 ANALYSIS RESULTS 32 IV.2 DESCRIPTIVE ANALYSIS 32 IV.3 CHECK THE RELIABILITY OF MEASUREMENT SCALE BY CRONBACH’S ALPHA 33 IV.4 CONFIRMATORY FACTOR ANALYSIS (CFA) 35 IV.5 STRUCTURAL EQUATION MODEL ANALYSIS 45 IV.4.1 Estimate the casual relationship between OC and OCB …………46 IV.4.2 Measure the impact of each dimension of OC on OCB 47 CHAPTER V: DISCUSSION, IMPLICATION, LIMITATION AND SUGGESTION FOR FUTURE RESEARCH 52 V.1 DISCUSSION AND IMPLICATION 52 V.1.1 Discussion 52 V.1.2 Implication 53 V.2 CONTRIBUTION, LIMITATION AND SUGGESTIONS FOR FURTHER RESEARCH 55 V.2.1 Contribution of the study 55 V.2.2 Limitations and further research directions 56 Organizational Culture and Organizational Citizenship Behavior in the Service Industry Page iv REFERENCES APPENDICES Appendix A: Questionnaire i Appendix B: Regression Weights and Standardized Regression Weights of Model (Standardized Estimates) ix Organizational Culture and Organizational Citizenship Behavior in the Service Industry Page v LIST OF TABLES Table 3.1: Organizational Culture measurement scale 27 Table 3.2: Organizational Citizenship Behavior measurement scale 28 Table 3.3: Key goodness-of-fit indices (Byrne, 2001 and Kline, 2005) 31 Table 4.1: Descriptive Analysis of respondents 33 Table 4.2: Cronbach’s alpha of measurement scale 35 Table 4.3: Goodness-of-fit Indices of CFA with Organizational Culture construct 38 Table 4.4: Standardized Confirmatory Factor Analysis Coefficients, Construct Reliability and Average Variance Extracted (Organizational Culture) 40 Table 4.5: Regression Weight and Standardized Regression Weight – CFA with OCB construct 42 Table 4.6: Goodness-of-fit Indices of CFA with OCB construct 43 Table 4.7: Standardized Confirmatory Factor Analysis Coefficients, Construct Reliability and Average Variance Extracted (Organizational Citizenship Behavior) 44 Table 4.8: OC and OCB scale 45 Table 4.9: Regression Weight and Standardized Regression Weight – SEM 47 Table 4.10: Regression Weight and Standardized Regression Weight – SEM 49 Table 4.11: Regression Weight and Standardized Regression Weight – SEM 50 Organizational Culture and Organizational Citizenship Behavior in the Service Industry Page vi LIST OF FIGURES Figure 2.1: There levels of organizational culture Adapted from Organizational Culture and Leadership by Schein, E.H (3rd ed.), 2004, San Francisco, CA: Josses-Bass, Inc 18 Figure 2.2: The Competing Values Framework Quadrant Adapted from Diagnosing and changing organizational culture by Cameron, K.S., & Quinn, R.E., 1999 Reading, MA: Addison-Wesley 20 Figure 2.3: Dimensions of Organizational Culture Profile (OCP) Adapted from People and Organizational Culture: A Profile Comparison Approach to Assessing Person-Organization Fit by O’Reilly, Charles A.III, Chatman, J., & Caldwell, D.F.,1991 Academy of Management Journal 34, 487-516 22 Figure 2.4: A conceptual model 25 Figure 4.1: CFA with Organizational Culture construct 37 Figure 4.2: Revised CFA – CFA with organizational culture construct 39 Figure 4.3: CFA with Organizational Culture construct 41 Figure 4.4: Revised CFA – CFA with OCB construct 43 Figure 4.5: Structural Equation Model (SEM 1) 46 Figure 4.6: Structural Equation Model (SEM 2) 48 Figure 4.7: Structural Equation Model (SEM 3) 50 Organizational Culture and Organizational Citizenship Behavior in the Service Industry Page vii Chapter I: Introduction CHAPTER I INTRODUCTION This chapter presents general information about organizational citizenship behavior and the importance of developing organizational citizenship behavior in the organization The research objective, research questions and scope of the study are also discussed in this chapter I.1 BACKGROUND Utilizing current resources is one of the factors for the success in any organization In order to achieve the highest utilization, managers should understand the different types of individual behavior inside the organization McShane and Von Glinow (2008) discussed types of work-related behaviors They are: - Task performance - Exhibiting Organizational Citizenship - Counterproductive Work Behavior - Joining and Staying in the Organization - Maintaining Work Attendance While other positive behaviors are related directly to the employee’s productivity within his role, organizational citizenship behavior (OCB) focuses on extra activities performed by the employee beyond his formal duties OCB as definition is a type of organizational behavior that goes beyond existing role expectations (Organ, Podsakoff & MacKenzie, 2006) OCB includes positive and constructive behaviors that employees by their own volition, which supports co-workers and benefits the company Typically, employees who frequently engage in OCB may not always be the top performers but they are the ones who are known to “go the extra mile” or “go above and beyond” the minimum efforts required to a merely satisfactory job The study of OCB dates back several decades Since 1980s, with the introduction of the term Organizational Citizenship Behavior by Organ and his Organizational Culture and Organizational Citizenship Behavior in the Service Industry Page Davis, T., & Landa, M (2000) Changing dynamics: How workforce culture can boost corporate 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Hashemzehi, E (2012) A comprehensive model for development of organizational citizenship behavior, African Journal of Business Management 6(23), 6924-6938 Organizational Culture and Organizational Citizenship Behavior in the Service Industry Page 62 APPENDICES APPENDIX A: QUESTIONNAIRE Dear participants, I am studying MBUS, a Master program in English of University of Ho Chi Minh City I would like to invite you to participate in a study: “Analysis the influence of organizational culture on organizational citizenship behavior in service industry” As you know, employees nowadays are the most valuable asset in the company especially employees who have discretionary behaviors because they contribute a lot to the company such as work more than job description, assist their colleagues and always pay attention to the image as well as the development of the company Thus, there is a need to identify antecedents that may affect to organizational citizenship behavior Organizational culture is considered as one of the antecedents The objective of this study is to find the relationship between organizational culture and organizational citizenship behavior Please kindly support to fulfill and response all the statements and questions as below There is no right or wrong answers to any questions The “right” answer is your frank and truthful response Your response will be kept completely confidential Only the aggregate data will be reported If you are interested in, the result of research will be sent for your reference SECTION 1: The following statements describe your organization, your attitude and behavior toward job-related regarding the organization you currently work for For each, please indicate the extent to which you agree/ disagree with the statement by marking the appropriate number on the scale Organizational Culture and Organizational Citizenship Behavior in the Service Industry Page i Strongly Somewhat Disagree Disagree Disagree (1) (2) (3) Somewhat Neutral (4) Achievement orientation An emphasis on quality Being distinctive-being different from others Being competitive Being reflective Having a good reputation Being socially responsible Having a clear guiding philosophy Being team oriented Sharing information freely Being people oriented Collaboration Being innovative Quick to take advantage of opportunities Risk taking Taking individual responsibility Fairness Opportunities for professional growth High pay for good performance Praise for good performance Having high expectations for performance Enthusiasm for the job Being results oriented Being highly organized Stability Being calm Security of employment Low conflict Strongly Agree Agree Agree (5) (6) (7) 1 2 3 4 5 6 7 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 3 3 3 3 3 3 3 3 3 3 3 3 3 4 4 4 4 4 4 4 4 4 4 4 4 4 5 5 5 5 5 5 5 5 5 5 5 5 5 6 6 6 6 6 6 6 6 6 6 6 6 6 7 7 7 7 7 7 7 7 7 7 7 7 7 Organizational Culture and Organizational Citizenship Behavior in the Service Industry Page ii Altruism I am willing to assist my colleagues who have heavy work loads I am willing to support my colleagues who have been absent I am willing to help other colleagues work productively I am willing to help orient new employees even though it is not required Conscientiousness I am always on time Attendance at work is above average I maintain a clean work place I obey company rules and regulations even when no one is watching and no evidence can be traced I take the initiative to troubleshoot and solve problems before requesting help from my manager/ supervisor Courtesy I try to avoid creating problems for my colleagues I consult with related people who might be affected by my actions or decisions I respect the rights and privileges of my colleagues I show genuine concern and courtesy toward my colleagues, even under the most tiring business or personal situations Civic Virtue I stay informed about developments in the company 2.I attend training/information sessions that I am encouraged to, but not required to attend Organizational Culture and Organizational Citizenship Behavior in the Service Industry Page iii I offer suggestions for ways to improve operations in my company I demonstrate concern about the image of the company Sportsmanship I consume a lot of time complaining about trivial matters* I express resentment with any changes introduced by management* I think only about my work problem not others’* I pay no attention to announcements, messages, or printed materials that provide information about the company* SECTION 2: GENERAL INFORMATION Please select the appropriate answer for each question Your Age:  45 year old  Female Highest Degree Earned  Doctorate/ Professional  Bachelor Master  High School How many years of full-time work experience you have?  10 years  Staff The industry you work  Bank  Manufacture  Commercial Service THANK YOU FOR YOUR PARTICIPATION Organizational Culture and Organizational Citizenship Behavior in the Service Industry Page iv BẢNG KHẢO SÁT Xin chào anh/chị Tôi sinh viên chương trình đào tạo thạc sĩ thuộc trường đại học kinh tế Tp Hồ Chí Minh Tơi thực nghiên cứu đánh giá ảnh hưởng văn hóa doanh nghiệp đến thái độ làm việc tự giác tích cực nhân viên Như anh/chị biết, nguồn nhân lực ngày xem tài sản vơ giá doanh nghiệp Để cạnh tranh hiệu quả, cơng ty ln mong muốn có đội ngũ nhân viên sẵn sàng làm nhiều yêu cầu công việc, tuân thủ nguyên tắc quy định công ty, hỗ trợ đồng nghiệp, quan tâm đến hình ảnh phát triển cơng ty Có nhiều yếu tố tác động đến hành vi Mục tiêu nghiên cứu xác định mối liên hệ từ đo lường mức độ ảnh hưởng văn hóa doanh nghiệp đến thái độ hành vi làm việc tích cực nhân viên Rất mong anh/chị dành thời gian thực bảng khảo sát bên Phần trả lời anh/chị giữ bí mật, có thơng tin tổng hợp báo cáo công bố Nếu anh/chị quan tâm đến đề tài, báo cáo sau hoàn thành gởi đến anh/chị để anh/chị tham khảo I PHẦN NỘI DUNG CHÍNH Trên sở thực tế công tác công ty anh/chị, anh/chị cho biết mức độ đồng ý phát biểu Anh/chị khoanh trịn vào mà anh/chị lựa chọn theo mức độ 1: Hoàn tồn khơng đồng ý 2: Khơng đồng ý 3: Hơi không đồng ý 4: Trung dung 5: Hơi đồng ý 6: Đồng ý 7: Hoàn toàn đồng ý Organizational Culture and Organizational Citizenship Behavior in the Service Industry Page v Mức độ đồng ý Công ty đặt chất lượng dịch vụ cung cấp lên hàng đầu Có hợp tác thành viên công ty Công ty chấp nhận rủi ro kinh doanh Công ty trọng vào kết công việc Công ty trọng vào việc đạt thành tựu Cơng ty tơi có danh tiếng tốt Cơng ty tơi có đảm bảo ổn định nghề nghiệp cho người lao động Cơng ty tơi có triết lý hoạt động kinh doanh rõ ràng Công ty đề cao, khen thưởng cho người lao động có thành tích tốt Công ty định hướng làm việc đồng đội Công ty đối xử với người công Công ty tổ chức tốt Cơng ty tơi trì ổn định Công ty tơi khuyến khích việc chiụ trách nhiệm cá nhân Công ty kì vọng cao kết làm việc người lao động Công ty học tập, rút kinh nghiệm từ thực tế Công ty sáng tạo, đổi Công ty tạo khác biệt với công ty, tổ chức khác Cơng ty tơi nhanh chóng nắm bắt hội Công ty quan tâm đến người Công ty tạo hội cho phát triển nghiệp người lao động Cơng ty tơi tích cực tham gia hoạt động xã hội Công ty trả lương xứng đáng cho đóng góp người lao động Mâu thuẫn, xung đột thành viên công ty không đáng kể Mọi người cơng ty tơi bình tĩnh xử lý tình cơng việc 7 7 Mọi người công ty tơi nhiệt tình với cơng việc họ Organizational Culture and Organizational Citizenship Behavior in the Service Industry Page vi Môi trường làm việc công ty cạnh tranh Trong công ty tôi, thông tin chia sẻ cách tự Mức độ đồng ý Tôi sẵn sàng giúp đỡ đồng nghiệp họ bị tải công việc Tôi cập nhật thông tin phát triển công ty Tôi tôn trọng quyền lợi ích đồng nghiệp Tơi tốn nhiều thời gian phàn nàn việc vặt vãnh không đáng kể Tôi tham khảo ý kiến đồng nghiệp bị ảnh hưởng định hành động Tôi tham gia buổi đào tạo, huấn luyện công ty khuyến khích khơng bắt buộc phải tham dự 7 Tôi sẵn sàng hướng dẫn nhân viên việc hướng dẫn khơng thuộc trách nhiệm tơi Tôi quan tâm đến việc xây dựng bảo vệ hình ảnh công ty Tôi tuân thủ quy tắc quy định công ty cách tự giác 10 Tơi sẵn lịng giúp đỡ đồng nghiệp họ nghỉ phép 7 Tôi quan tâm cư xử nhã nhặn với đồng nghiệp kể thân gặp vấn đề công 11 việc sống 12 Tôi làm đầy đủ Tôi sẵn sàng chia sẻ kinh nghiệm với đồng nghiệp để 13 họ làm tốt công việc họ Tôi không quan tâm đến thông báo, memo 14 cập nhật, cung cấp thông tin công ty 15 Tơi trì mơi trường làm việc ngăn nắp Organizational Culture and Organizational Citizenship Behavior in the Service Industry Page vii 16 Tơi tránh gây khó khăn, trở ngại cho đồng nghiệp Tơi đóng góp nhiều ý kiến để nâng cao hiệu hoạt 17 động công ty Tôi chủ động khắc phục cố giải vấn đề 18 khó khăn trước yêu cầu giúp đỡ từ sếp Tôi quan tâm suy nghĩ phương án để giải 19 vấn đề thân Tôi bày tỏ bất mãn với thay đổi 20 đưa từ ban lãnh đạo II THƠNG TIN CÁ NHÂN Anh/chị vui lịng cung cấp số thông tin thân công việc anh/chị cách đánh dấu vào ô tương ứng Độ tuổi anh/chị:  45 tuổi  Nữ Bằng cấp cao mà anh/chị đạt  Tiến sĩ  Thạc sĩ  Cử nhân  Phổ thông Kinh nghiệm làm việc:  10 năm Vị trí anh/chị cơng ty  Quản lí  Trưởng nhóm/ Giám sát  Nhân viên Lĩnh vực anh/chị công tác  Ngân hàng  Sản xuất  Thương mại - Dịch vụ CẢM ƠN SỰ HỔ TRỢ CỦA CÁC ANH/ CHỊ Organizational Culture and Organizational Citizenship Behavior in the Service Industry Page viii APPENDIX B: REGRESSION WEIGHTS AND STANDARDIZED REGRESSION WEIGHTS OF MODEL (STANDARDIZED ESTIMATES) OCB PEO EOR SUP ALT CON CIV COU STA SOR INN COM EOR18 EOR19 EOR20 PEO21 PEO23 PEO24 INN13 INN14 INN15 INN16 SOR05 SOR06 SOR07 SOR08 COM01 COM02 COM04 SUP09 SUP10 < - OC < - OC < - OC < - OC < - OCB < - OCB < - OCB < - OCB < - OC < - OC < - OC < - OC < - Emphasic On Reward < - Emphasic On Reward < - Emphasic On Reward Performance < Orientation Performance < Orientation Performance < Orientation < - Innovation < - Innovation < - Innovation < - Innovation < - Social Responsibility < - Social Responsibility < - Social Responsibility < - Social Responsibility < - Competitiveness < - Competitiveness < - Competitiveness < - Supportiveness < - Supportiveness Estimate S.E C.R P 633 061 10.345 000 1.075 076 14.215 000 1.200 086 13.955 000 1.134 081 13.986 000 1.000 924 067 13.867 000 908 064 14.181 000 956 064 15.035 000 1.016 075 13.481 000 1.152 077 14.951 000 1.183 081 14.550 000 1.000 1.000 933 061 15.384 000 996 060 16.732 000 1.000 894 065 13.835 000 943 043 22.101 000 1.000 912 754 836 1.000 896 977 1.102 1.000 1.108 951 1.000 868 045 20.294 000 048 15.679 000 045 18.441 000 055 16.169 000 052 18.920 000 048 22.987 000 061 18.055 000 060 15.956 000 056 15.369 000 Organizational Culture and Organizational Citizenship Behavior in the Service Industry Page ix SUP12 STA25 STA27 STA28 ALT29 ATL30 ATL31 ATL32 CON33 CON34 CON35 CON36 COU37 COU38 COU39 COU40 CIV41 CIV42 CIV43 CIV44 < - Supportiveness < - Stability < - Stability < - Stability < - Altruism < - Altruism < - Altruism < - Altruism < - Conscientiousness < - Conscientiousness < - Conscientiousness < - Conscientiousness < - Courtesy < - Courtesy < - Courtesy < - Courtesy < - Civic Virtue < - Civic Virtue < - Civic Virtue < - Civic Virtue OCB < Performance Orientation < Emphasic On Reward < Supportiveness < Altruism < Conscientiousness < Civic Virtue < Courtesy < Stability < Social Responsibility < Innovation < Competitiveness < EOR18 < EOR19 < EOR20 < PEO21 < PEO23 < - 932 050 18.754 1.000 1.056 051 20.912 796 051 15.476 1.000 1.064 053 20.140 1.043 053 19.523 956 060 16.008 1.000 1.089 076 14.331 1.180 079 14.889 1.046 074 14.180 1.000 799 069 11.575 966 065 14.936 1.041 067 15.457 1.000 845 064 13.306 884 063 14.142 1.008 060 16.898 Estimate OC 645 OC 908 OC 894 OC 893 OCB 955 OCB 965 OCB 850 OCB 946 OC 829 OC 920 OC 908 OC 877 Emphasic On Reward 850 Emphasic On Reward 743 Emphasic On Reward 790 Performance Orientation 851 Performance Orientation 670 Organizational Culture and Organizational Citizenship Behavior in the Service Industry 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000 Page x PEO24 INN13 INN14 INN15 INN16 SOR05 SOR06 SOR07 SOR08 COM01 COM02 COM04 SUP09 SUP10 SUP12 STA25 STA27 STA28 ALT29 ATL30 ATL31 ATL32 CON33 CON34 CON35 CON36 COU37 COU38 COU39 COU40 CIV41 CIV42 CIV43 CIV44 < < < < < < < < < < < < < < < < < < < < < < < < < < < < < < < < < < - Performance Orientation Innovation Innovation Innovation Innovation Social Responsibility Social Responsibility Social Responsibility Social Responsibility Competitiveness Competitiveness Competitiveness Supportiveness Supportiveness Supportiveness Stability Stability Stability Altruism Altruism Altruism Altruism Conscientiousness Conscientiousness Conscientiousness Conscientiousness Courtesy Courtesy Courtesy Courtesy Civic Virtue Civic Virtue Civic Virtue Civic Virtue Estimate 918 869 848 723 802 881 726 799 887 810 869 787 851 735 845 882 879 720 836 869 853 748 716 802 833 793 779 618 770 792 815 685 720 830 Organizational Culture and Organizational Citizenship Behavior in the Service Industry Page xi