Relationship between authentic leadership and job satisfaction moderating roles of self efficacy and optimism , luận văn thạc sĩ

MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HO CHI MINH CITY  TRAN GIANG PHONG RELATIONSHIP BETWEEN AUTHENTIC LEADERSHIP AND JOB SATISFACTION & MODERATING ROLES OF SELF-EFFICACY AND OPTIMISM MASTER THESIS OF BUSINESS ADMINISTRATOR HO CHI MINH CITY – 2012 MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HO CHI MINH CITY  TRAN GIANG PHONG RELATIONSHIP BETWEEN AUTHENTIC LEADERSHIP AND JOB SATISFACTION & MODERATING ROLES OF SELF-EFFICACY AND OPTIMISM Subject: Master of Business Administrator Code: 60.34.01.02 THESIS OF MASTER OF BUSINESS ADMINISTRATOR SUPERVISOR: DR PHAM QUOC HUNG HO CHI MINH CITY – 2012 I ACKNOWLEDGEMENT I would like to express my sincerest gratitude to the following for their commitment, guidance and support: My family, my father and my mother for your unwavering love, Respectful lecturers of University of Economics Ho Chi Minh City, who have empowered me with considerably useful knowledge during the time I studied in the University, especially Dr Pham Quoc Hung, who have wholeheartedly instructed me to approach relevant matters in reality, scientific research methods, as well as the contents of the subject Students of the eMBA – K19 course, University of Economics Ho Chi Minh City for kindly helping me collect information necessary for the study My friends and work colleagues, who support me to collect data as well as emotional support during the completion of this thesis Although the author has tried the best to complete the thesis, but errors could not be comprehensively avoided Therefore, the author is looking forward to receiving the inputs and comments from respectful lecturers and friends, so that the thesis could be more and more improved Tran Giang Phong Ho Chi Minh, 26 Oct 2012 II COMMITMENT I would like to commit that this thesis, “relationship between authentic leadership and job satisfaction & moderating roles of self-efficacy and optimism”, was accomplished based on my independent and serious studies and scientific researches The data was collected in reality and it has clear origins In addition to that, the data would be trust-worthily handled and it has never been released in any menu Tran Giang Phong CONTENTS CHAPTER 1: INTRODUCTION TO THE STUDY 1.1 Research background .4 1.2 Research objectives: .5 1.3 Research scope and approach: 1.4 Research structure CHAPTER 2: LITERATURE REVIEW, THEORETICAL FRAMEWORK AND HYPOTHESES 2.1 Authentic leadership 2.1.1 Authenticity 2.1.2 Dimensions of authentic leadership .9 2.2 Job satisfaction 14 2.2.1 Definition 14 2.2.2 Role of job satisfaction 15 2.2.3 Determinants of job satisfaction .16 2.3 The influence of authentic leadership on job satisfaction .18 2.4 Self-efficacy .18 2.5 Optimism 20 2.6 Summary 21 CHAPTER 3: RESEARCH METHODOLOGY .23 3.1 Research design 23 3.2 Questionnaire development .24 3.2.1 Authentic leadership 24 3.2.2 Job satisfaction 25 3.2.3 Optimism and Self-Efficacy 25 3.3 Translation of the questionnaire 26 3.4 The pilot study 27 3.4.1 Pilot study phase 27 3.4.2 Pilot study phase 28 3.5 Target population 28 3.6 Sample size 29 3.7 Selecting the sample and collecting data 29 3.8 Sample characteristics 30 3.9 Methods of data analysis 31 3.9.1 Data screening 31 3.9.2 Reliability 31 3.9.3 Confirmatory Factor Analysis (CFA) 31 3.9.4 Correlation analysis 33 3.9.5 Multiple regressions 34 3.9.6 Independent Samples T-test 35 3.9.7 Summary 35 CHAPTER 4: DATA ANALYSIS 36 4.1 Data cleaning 36 4.2 Profiles of qualified respondents .36 4.3 Reliability of the measurements 39 4.4 Confirmatory factor analysis 40 4.5 Correlation analysis 41 4.6 Hypotheses testing 44 4.6.1 Effects of authentic leadership, self-efficacy and optimism on job satisfaction: .44 4.6.2 Moderating effects of self-efficacy and optimism on the relationship between authentic leadership and job satisfaction 45 4.7 Independent Samples T-test 49 4.8 Summary .50 CHAPTER 5: DISCUSSION .51 5.1 Discussions of findings: .51 5.2 Practical implications 52 5.3 Limitations and recommendations for future research: 54 REFERENCE: 55 Appendix 65 Appendix 1: Questionnaires 65 Appendix 2: result of reliability test of the measurements 71 Appendix 3: result of confirmatory factor analysis 73 Appendix 4: result of regression analysis 76 Figure 2-1: the hypothesized model……………………………………………… …………… ……………….……………… 22 Figure 3-1: The Research Process ……………….………………………………………………………….…………………………24 Figure 4-1: CFA model………………………….……………………………………………………………… ….………………………41 Figure 4-2: effect of interaction between authentic leadership and optimism on job satisfaction… 49 Table 3-1: Assessing Fit Indices………………………………………………………………………………………………….………33 Table 4-1: Socio-demographic Characteristics of The Qualified Samples………………………………….……….38 Table 4-2: Summary of Cronbach Alpha Measures Across Variables…………………………………….……………39 Table 4-3: Assessing Fit Indices – Hypothesized Model…………………………………………………… ….………… 40 Table 4-4: correlation………………………………………………………………………………………………………….………….…43 Table 4-5: result of regression analysis of authentic leadership on job satisfaction……………………….…44 Table 4-6: result of regression analysis of moderating effect of self-efficacy and optimism in groups …………………………………………………………………………………………………………………………………… …46 Table 4-8: Independent Samples T-test: difference of job satisfaction level on gender of respondents ……………………………………………………………………………………….…………………………………………………………………50 CHAPTER 1: INTRODUCTION TO THE STUDY 1.1 Research background Neither reputation, customers, technology nor physical resources, human resource is the most important asset which makes organization successful Without good manpower, organization could not develop their business Retaining the talents in organization is an emergent challenge that every organization must consider According to Berry (1997), organization must improve job satisfaction of employees to be successful Robbins & Judge (2007) found that the effective organization usually had more satisfied employees Moreover, satisfied employees are more likely productive In short, improving employees’ satisfaction is an essential solution for an organization to be successful The practice of leadership has existed for thousands of years and research efforts have been undertaken to better understand leadership in organizations for well over 50 years (Bass, 1990) Leaders and leadership play an important role in organizations in the way that effective leaders are related to successful team work, high morale, and effective performance; and on the contrary, ineffective leaders are related to job dissatisfaction, low commitment, and ineffective performance (Avolio & Bass, 2002; Bass, 1998; 1999; Collins, 2001a, 2001b; Day, Zaccaro, & Halpin, 2004) We also have seen some big scandals in ethical leadership in the world as well as in Vietnam In Vietnam, according to Thuc (2011), some big organizations such as Hàng Hải Đông Đô, Masan Group, Quoc Cuong Gia Lai announced to investors that they made large profit, but actually, they lost a lot In international level, we also know the big decrease of ethical leadership of the top managers of WorldCom, Enron, General Motors and Lehman Brothers in U.S Together with new societal challenge such as terrorism, aging society, and environmental pollution… these destroy the trust of investors In reality, according to National Leadership Index 2009, 63% of Americans not trust what business leaders say and 83% believe that business leaders work to merely their benefit or a small group with special interests, not society overall In the difficult situation, there is an urgent need of the positive and more genuine leadership (Avolio & Gardner, 2005) Reliability, integrity and authenticity are the essential characteristics of the business leaders in this situation (Blausten, 2009) In the light of current developments in global business, a new construct emerged: authentic leadership Authentic leadership refers to the extent to which an individual exhibits a pattern of openness and clarity in his or her behavior towards others by sharing the necessary information to make decisions, accepting other’s inputs, and disclosing his or her personal values, motives and sentiments in a manner that enables followers to more accurately assess the competence and morality of the leader’s actions Business practitioners are calling for leaders who lead with purpose, values, and integrity, leaders who build enduring organizations, motivate their employees to provide customer service, and create long-term value for shareholder 1.2 Research objectives: In this study, the author examines the effects of authentic leadership behaviors on followers’ job satisfaction while also taking into account possible moderating roles of self-efficacy and optimism to the relationship authentic leadership and job satisfaction Accordingly, the study aims at answering the research questions: “How does authentic leadership influence follower job satisfaction?” and “what are the moderating roles of self-efficacy and optimism between authentic leadership and job satisfaction?” In order to answer to this research question, the following four sub-questions are addressed in this research: What is the relationship between authentic leadership and follower job satisfaction? How does self-efficacy play a moderating role in the relationship between authentic leadership and job satisfaction? How does optimism play a moderating role in the relationship between authentic leadership and job satisfaction? Is job satisfaction level different between male and female? 1.3 Research scope and approach: First, this study is conducted in Ho Chi Minh City, the biggest city in Vietnam Second, the research includes into the analysis those respondents who have been working with their leaders for at least months to ensure that followers have enough time to observe and to be influenced by their leaders’ leadership behaviors Third, the research only focuses on employees who are graduated from highschool or higher This choice of population and sample frame makes the study feasible (given time and resource limitation) by facilitating online survey method and helps address the research questions in the simplest way possible Forth, this study considers self-efficacy and optimism as the moderating variables Self-efficacy, optimism are two of components of psychological capital However, other components of psychological capital which are resilience and hope are not considered in this study Fifth, the study is conducted in main phases: pilot study (comprising of subphases) and main study The purpose of the pilot study is to check the contents and to examine the measurement scales Then the main study is conducted to confirm the measurement scales, to test the hypotheses and to confirm the research model 1.4 Research structure The structure of study includes chapters as following: Chapter 1: Introduction will provide the research background, research objectives, as well as research scope and approach 69 B The following survey items refer to your current situation Please judge how you feel about yourself using the following scale and circling the suitable number for each statement I feel confident helping to set targets/goals in my work area I feel confident presenting information to a group of colleagues If something can go wrong for me work-wise it will (R) I’m optimistic about what will happen to me in the future as it pertains to work 10 I approach this job as if "every cloud has a silver lining" C The following survey items refer to your job satisfaction Please judge how satisfied you feel about job using the following scale and circling the suitable number for each statement: 11 12 Most days I am enthusiastic about my work I feel fairly satisfied with my present job 13 I find real enjoyment in my work 14 15 Each day at work seems like it will never end I consider my job rather unpleasant 70 D Lastly, a couple of questions about you: Your gender: □ Male □ Female Your age: ………… Gender of your manager: ……… How long have you worked for your current company? ……… years …… month How long have you worked with your manager? ……… years …… month Nationality of your manager? □ Other □ Vietnamese Your income from the company? □ VND 2-5 mil □ VND 5-10 mil □ VND 10-15 mil □ VND 15-20 mil □ over VND 20 mil What is your education level? □ College □ High school □ Graduate □ Post Graduate What is your position in company? □ Staff □ Manager Thank you very much for your time 71 Appendix 2: result of reliability test of the measurements Authentic leadership: Reliability Statistics Cronbach's Alpha 876 Leader1 Leader2 Leader3 Leader4 Leader5 Job satisfaction: Reliability Statistics Cronbach's Alpha 911 Jobsatis1 Jobsatis2 Jobsatis3 Jobsatis4 Jobsatis5 Self-efficacy Cronbach's Alpha 800 Selfefficacy1 Selfefficacy2 a The value is negative due to a negative average covariance among items This violates reliability model assumptions You may want to check item codings Job satisfaction Cronbach's Alpha 967 Optimism1 Optimism2 Optimism3 73 Appendix 3: result of confirmatory factor analysis Model Fit Summary CMIN Model Default model Saturated model Independence model RMR, GFI Model Default model Saturated model Independence model Baseline Comparisons Model Default model Saturated model Independence model Parsimony-Adjusted Measures Model Default model Saturated model Independence model NCP Model Default model Saturated model Independence model FMIN Model Default model Saturated model Independence model RMSEA Model Default model Independence model AIC Model Default model Saturated model Independence model ECVI Model Default model Model Saturated model Independence model HOELTER Model Default model Independence model 76 Appendix 4: result of regression analysis Result of regression analysis on relationship between authentic leadership and job satisfaction of group (respondents with higher level of job satisfaction): Variables Entered/Removed b Model L L A G T E G a All requested variables entered b Dependent Variable: JobSatis Model Summary Model a Predictors: (Constant), Lnationality, Level, AuthenticLeader, GenderM, Tenure, Income, Education, GenderE, Age R a 430 Model Regression Residual Total a Predictors: (Constant), Lnationality, Level, AuthenticLeader, GenderM, Tenure, Income, Education, GenderE, Age b Dependent Variable: JobSatis Coefficients a Model (Constant) AuthenticLeader GenderE Age Education Tenure Level GenderM Income Lnationality a Dependent Variable: JobSatis 78 Result of regression analysis on relationship between authentic leadership and job satisfaction of group (respondents with lower level of job satisfaction): Variables Entered/Removed b Model L A T G In G E L a All requested variables entered b Dependent Variable: JobSatis Model Summary Model R a 700 a Predictors: (Constant), Lnationality, AuthenticLeader, Tenure, GenderE, Age, Income, GenderM, Education, Level ANOVA b Model Regression Residual Total a Predictors: (Constant), Lnationality, AuthenticLeader, Tenure, GenderE, Age, Income, GenderM, Education, Level b Dependent Variable: JobSatis 79 Coefficients a Model (Constant) AuthenticLeader GenderE Age Education Tenure Level GenderM Income Lnationality a Dependent Variable: JobSatis 80 Result of regression analysis on relationship between authentic leadership and job satisfaction of group (respondents with all level of job satisfaction – mix of group and group 2): Variables Entered/Removed b Model A In G L E G A a All requested variables entered b Dependent Variable: JobSatis Model Summary Model R 481 a Predictors: (Constant), AuthenticLeader, Income, Tenure, GenderM, Lnationality, Education, GenderE, Level, Age ANOVA b Model Regression Residual Total a Predictors: (Constant), AuthenticLeader, Income, Tenure, GenderM, Lnationality, Education, GenderE, Level, Age b Dependent Variable: JobSatis a 81 Coefficients a Model (Constant) GenderE Age Education Tenure Level GenderM Income Lnationality AuthenticLeader a Dependent Variable: JobSatis ... Effects of authentic leadership, self- efficacy and optimism on job satisfaction: .44 4.6.2 Moderating effects of self- efficacy and optimism on the relationship between authentic leadership and job. .. (Constant ), AuthenticLeader, Income, Tenure, GenderM, Lnationality, Education, GenderE, Level, Age b Predictors: (Constant ), AuthenticLeader, Income, Tenure, GenderM, Lnationality, Education, GenderE,... thesis, ? ?relationship between authentic leadership and job satisfaction & moderating roles of self- efficacy and optimism? ? ?, was accomplished based on my independent and serious studies and scientific