Psychological empowerment and job satisfaction, a comparison of manufacturing and services industry in vietnam

UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Truong Ngoc Anh Thu PSYCHOLOGICAL EMPOWERMENT AND JOB SATISFACTION: A COMPARISON OF MANUFACTURING AND SERVICES INDUSTRY IN VIETNAM MASTER OF BUSINESS (Honours) Ho Chi Minh City- Year 2015 UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Truong Ngoc Anh Thu ID: 22120075 PSYCHOLOGICAL EMPOWERMENT AND JOB SATISFACTION: A COMPARISON OF MANUFACTURING AND SERVICES INDUSTRY IN VIETNAM MASTER OF BUSINESS (Honours) SUPERVISOR: Dr Tran Phuong Thao Ho Chi Minh City- Year 2015 ABSTRACT In this research, we can have a deep insight of overall findings for the relationship between four dimensions of psychological empowerment and the employee’s job satisfaction In particular, that relationship was put into the comparison in two industries service and manufacturing To examine the research model, the survey questionnaires were used to circulate to employees in service companies and manufacturing companies in Ho Chi Minh City through mail survey with the sample size of 200 respondents This study used the SPSS Statistic to analyze the data by using reliability analysis, exploratory factor analysis and multiple linear regression analysis Some findings in this study indicated that the degree of job satisfaction may differ from service to manufacturing but all the factors of psychological empowerment impact on it And among these factors, the empowerment self-determination impacts the most and the empowerment competence has less impact than the others, the impact of four dimensions of psychological empowerment on the employees’ job satisfaction in service industry and manufacturing industry are not the same In service industry, the empowerment meaning affects on employees’ job satisfaction stronger than in manufacturing industry The empowerment competence and empowerment impact in this case the stronger one belongs to service industry, and in manufacturing industry they impact slightly to employees’ job satisfaction This study also points out some implications for management to improve employees’ capability, productivity in their work, which can contribute to development of the company Keywords: psychological empowerment, empowerment meaning, empowerment competence, empowerment self- determination, satisfaction, service, manufacturing i empowerment impact, job ACKNOWLEDGEMENTS This research could not finish if there are not help, encouragement and supports during long time from many people who are gratefully acknowledged here First of all, I would like to express my deepest gratitude to my supervisor, Dr Tran Phuong Thao, for her clear guidance, advices and correction for my thesis Her support during the time of thesis motivated me, gave me valuable suggestions as well as good criticism to complete my Master’s thesis Secondly, I would like to thank all the ISB Research Committee, the lecturers, and the staff at International School of Business during all process of my course Thirdly, I would like to express my special thanks to my family and friends who provided continuously support, encouragement in my life Finally, I would like to say thank you to those who participated in this study Ho Chi Minh City, June 6, 2015 TRUONG NGOC ANH THU ii TABLE OF CONTENT ABSTRACT i ACKNOWLEDGEMENTS ii CHAPTER 1: INTRODUCTION 1.1 Background of the study 1.2 Research problem 1.3 Research objective and questions 1.4 Scope of the research 1.5 Significances of the research 1.6 Structure of the research CHAPTER 2: LITERATURE REVIEW, HYPOTHESIS AND RESEARCH MODEL 2.1 Theoretical foundations Models of Employee Involvement Models of Empowerment Theory of Motivator – Hygiene 2.2 Overview on psychological empowerment and job satisfaction 2.2.1 Psychological empowerment 2.2.2 Job satisfaction 11 2.3 Hypothesis development 12 2.3.1 Empowerment meaning and job satisfaction 12 2.3.2 Empowerment competence and job satisfaction 12 2.3.3 Empowerment self-determination and job satisfaction 13 2.3.4 Empowerment impact and job satisfaction 14 2.4 Research model 14 2.5 Chapter summary 15 CHAPTER 3: RESEARCH METHODOLOGY 16 3.1 Research process 16 3.2 Research design 17 3.2.1 Questionnaire design 17 iii 3.2.2 Measurement scale 18 3.3 Pilot test 21 3.4 Main survey 22 3.5 Chapter summary 25 CHAPTER 4: EMPIRICAL RESULTS AND DISCUSSIONS 26 4.1 Preliminaries of data analysis 26 4.2 Reliability analysis 27 4.3 Exploratory Factor Analysis 29 4.4 Correlation analysis 31 4.5 Multiple Linear Regression Analysis 32 4.6 Chapter summary 43 CHAPTER 5: CONCLUSION, IMPLICATIONS AND DIRECTIONS FOR FURTHER STUDIES 44 5.1 Key findings of the thesis 44 5.2 Implications 48 5.3 Limitation and directions for further studies 50 REFERENCES 51 APPENDIX A 58 APPENDIX B 61 APPENDIX C 64 APPENDIX D 66 iv LIST OF FIGURES Figure 1: Conceptual framework of the study 14 Figure 3.1: Research process 17 Figure C 1: The Histogram 64 Figure C 2: The Normal P-P Plot of Regression Standardized Residual 64 Figure C 3: Scatterplot 65 v LIST OF TABLES Table : Summary of employees’ profile 27 Table 2: Cronbach’s Alpha 28 Table 3: KMO and Barlett’s test 29 Table 4: Total Variance Explained 29 Table 5: Rotated Component Matrix 30 Table 6: Correlations 31 Table 7: Model Summary 33 Table 8: ANOVA 34 Table 9: Coefficients 34 Table 10: Model Summary 35 Table 11: Model Summary 36 Table 12: ANOVA 36 Table 13: Coefficients 36 Table 14: Model Summary 38 Table 15: ANOVA 38 Table 16: Coefficients 39 Table 17: Model Summary 39 Table 18: Coefficients 40 vi CHAPTER 1: INTRODUCTION This research studies factors of psychological empowerment which impacts on job satisfaction of employees in two industries, namely service and manufacturing This chapter provides an overview of research including research background, research problem, research objectives, scope of study, and significance of the study In this chapter, an overall structure of the research is also suggested 1.1 Background of the study Nowadays, in an evolving environment, organizations are working under highly competitive context In order to survive in such a tough environment, organizations try to seek out their competitive advantages The most critical challenges they have to face are the need to increase productivity, enhance organizational capabilities, expand into global markets, develop and implement new technologies…, etc (Burke and Cooper, 2005) Employee is regarded as a back bone of an organization that performs critical tasks for the survival of the organization With the needs of changing for the growing nowadays, organizations have forced not only to develop the quality of product of service but also the organization capabilities, especially their employee through their performance However, the impact of human resources on operational systems has often been overlooked (Boudreau et al 2003) An empowered and committed workforce is generally claimed to be essential for the effective functioning of modern organizations (Bowen et al, 1992; Sparrowe, 1995; Kirkman et al, 1999) In organizations, empowerment means delegating responsibilities to employees with complete confidence and trust so as to assume a more active and responsible role This strengthens their sense of effectiveness as well as by sharing power, information and the responsibility to manage their own work as much as possible There is a broad context of empowerment in many dimensions as well as perspectives Some approach by individual to proactive work orientation by increasing employee’s performance and some can be viewed as managerial practices 60 APPENDIX B QUESTIONNAIRES Kính gửi Anh/Chị, Tôi tên Trương Ngọc Anh Thư, học viên chương trình Thạc Sỹ Kinh Tế MBUS Viện Đào Tạo Quốc Tế- Trường Đại Học Kinh Tế TP.HCM Tơi q trình thực luận văn với đề tài “Sự trao quyền theo yếu tố tâm lý hài lịng cơng việc nhân viên: so sánh ngành sản xuất dịch vụ công ty Việt Nam” Rất mong nhận ý kiến đánh giá khách quan Anh/Chị thông qua bảng câu hỏi khảo sát Khơng có câu trả lời hay sai Mỗi câu trả lời Anh/Chị có ý nghĩa quan trọng với tơi việc hoàn thành đề tài nghiên cứu Các Anh/Chị yên tâm thông tin Anh/Chị câu trả lời giữ bí mật tổng hợp phục vụ cho mục đích nghiên cứu Nếu anh/chị có câu hỏi liên quan đến đề tài tơi, xin vui lịng liên hệ với qua địa email: thutruongngocanh@gmail.com số điện thoại: 0906 260 402 Xin chân thành cám ơn đóng góp Anh/Chị Phần A: Thơng tin cá nhân Giới tính Nam Nữ Độ tuổi 18–25 Trình độ học vấn PTTH Thạc sĩ Khoảng thời gian anh/chị làm việc công ty bao lâu? - 0.5 năm - năm 61 Vị trí cơng việc anh/chị? Nhân viên Giám đốc Ngành nghề công ty anh/chị làm việc? Sản xuất Phần B: Các câu hỏi liên quan đến việc xác định trao quyền theo yếu tố tâm lý hài lịng cơng việc Anh/ Chị vui lòng cho biết ý kiến cá nhân phát biểu sau cách chọn số tương ứng với mức độ đồng ý Anh/ Chị: Hồn tồn khơng đồng ý Khơng đồng ý Khơng có ý kiến Đồng ý Hoàn toàn đồng ý STT Nội dung phát biểu Nhóm phát biểu liên quan đến mức độ ý nghĩa công việc Công việc làm quan trọng Công việc làm có ý nghĩa tơi Các hoạt động cơng việc tơi chẳng có ý nghĩa tơi Nhóm phát biểu liên quan đến mức độ lực thân công việc Tôi không đủ tự tin khả việc thực cơng việc 62 STT Nội dung phát biểu Tơi tự tin có khả thi hành hoạt động liên quan đến công việc Tôi nắm vững kỹ cần thiết cơng việc Nhóm phát biểu liên quan đến mức độ tự định/ tự chủ cơng việc Tơi khơng có đủ quyền tự ý chí để định cơng việc Tơi tự định cơng việc thực Tơi có tự độc lập đáng kể công việc Nhóm phát biểu liên quan đến mức độ ảnh hưởng công việc 10 Ảnh hưởng tơi hoạt động phận lớn 11 Tơi kiểm sốt chặt chẽ hoạt động phận 12 Tơi có ảnh hưởng đáng kể hoạt động phát sinh phận Nhóm phát biểu liên quan đến mức độ hài lịng cơng việc 13 Tơi giới thiệu cơng ty cho bạn tơi người tìm việc làm 14 Tơi thật càm thấy hài lịng làm tốt cơng việc 15 Tơi tự hào nói với người tơi thành viên công ty 16 Đối với tôi, công ty tốt để làm việc 63 APPENDIX C Figure C 1: The Histogram Figure C 2: The Normal P-P Plot of Regression Standardized Residual 64 Figure C 3: Scatterplot 65 APPENDIX D Table 3.1: Summary of employees’ profile No Items Gender Age Education level Average Years at company Organizational role Industries 66 Table 3.2: Cronbach’s Alpha Variable EM1 EM2 EM3 EC1 EC2 EC3 ESD1 ESD2 ESD3 EI1 EI2 EI3 JS1 JS2 JS3 JS4 67 Table 3.3: KMO and Barlett’s test Kaiser-Meyer-Olkin Measure of Sampling Adequacy Component Bartlett's Test of Sphericity Total 4.499 2.414 1.813 1.008 614 522 355 236 186 10 162 11 106 12 085 68 Table 4.5: Rotated Component Matrix EM2 EM3 EM1 EC2 EC1 EC3 EI3 EI2 EI1 ESD2 ESD3 ESD1 Extraction Method: Principal Component Analysis Rotation Method: Varimax with Kaiser Normalization a Rotation converged in iterations 69 a ... job satisfaction in service industry and manufacturing industry are not the same In service industry, the empowerment meaning affects on employees’ job satisfaction stronger than in manufacturing. .. there are many factors at any workplace that are related to the job satisfaction or job dissatisfaction The factors that are related to the job satisfaction are regarded as "motivators" and the factors... has the drastic move of employment away from agriculture toward services and manufacturing and play more important in total labor force of Vietnam 1.5 Significances of the research This research