THE RELATIONSHIP BETWEEN TRAINING PERCEPTION AND EMPLOYEE ENGAGEMENT: IMPACTS OF PERCEPTION OF REWARD AND SELF-EFFICACY

VIETNAM NATIONAL UNIVERSITY VIETNAM JAPAN UNIVERSITY HOANG VU DUONG THE RELATIONSHIP BETWEEN TRAINING PERCEPTION AND EMPLOYEE ENGAGEMENT: IMPACTS OF PERCEPTION OF REWARD AND SELF-EFFICACY MASTER THESIS BUSINESS ADMINISTRATION Hanoi, 2019 VIETNAM NATIONAL UNIVERSITY VIETNAM JAPAN UNIVERSITY HOANG VU DUONG THE RELATIONSHIP BETWEEN TRAINING PERCEPTION AND EMPLOYEE ENGAGEMENT: IMPACTS OF PERCEPTION OF REWARD AND SELF-EFFICACY MAJOR: BUSINESS ADMINISTRATION CODE: 60340102 RESEARCH SUPERVISORS DR TRAN HUY PHUONG ASSOC PROF KODO YOKOZAWA Hanoi, 2019 ACKOWLEDGEMENT First of all, I would like to express my sincere gratitude to Dr Tran Huy Phuong and Assoc Prof Kodo Yokozawa, who are my supervisors, for their guidance, encouragement and useful comments on my master thesis These considerably help me in completing this research work I also would like to say thank to Vietnam Japan University and all lecturers here, especially in program of MBA, for giving me opportunity to study and experience in international and academic environment, which provides me valuable knowledge both theoretically and practically Furthermore, I want to thank all staffs of VJU, especially Ms Huong of from MBA program, for greatly supporting me during years studying Last but not least, I want to express my gratitude to all of my friends, especially Ms Nguyen Huyen Trang and Ms Nguyen Thi Ngoc Anh for their help and encouragement, which academically and mentally support me at any difficult time Sincerely, Hoang Vu Duong TABLE OF CONTENTS LIST OF FIGURES LIST OF TABLES LIST OF ABBREVIATION CHAPTER 1: INTRODUCTION .1 1.1 Research motivation 1.2 Research objectives .2 1.3 Research scope and objects 1.4 The structure of the paper CHAPTER 2: LITERATURE REVIEW 2.1 Employee engagement 2.2 Employee training 10 2.3 Self-efficacy .17 2.4 Reward 21 2.5 Research questions 25 CHAPTER 3: RESEARCH METHODOLOGY 26 3.1 Research design 26 3.2 Conceptual research model 27 Variables and measuring instruments .27 Training perception 27 Self-efficacy 28 Reward .28 Employee engagement 29 Conceptual research model .30 3.3 Population, sample and data collection .31 Questionnaire design and administration 31 Population 32 Sample and data collection process 32 3.4 Sample demographics 33 CHAPTER 4: DATA ANALYSIS 34 4.1 Data preparation 34 4.2 Descriptive statistics 34 4.3 Reliability and validity 36 4.3.1 Reliability 36 4.3.2 Validity 37 4.4 Pearson correlation 39 4.5 Regression analysis and hypotheses testing 39 CHAPTER 5: DISCUSSION AND IMPLICATION .46 5.1 Research findings 46 5.2 Contribution and implication .50 5.3 Limitation and future research .52 REFERENCES 54 APPENDIX .70 LIST OF FIGURES Figure 2.1 Summary of antecedents and consequences of employee engagement 10 Figure 2.2 Training components and employee engagement model .15 Figure 2.3 Sources of Self-efficacy 19 Figure 2.4 Engagement Diagnostic Tool: National Health Service 22 Figure 2.5 Total reward system 23 Figure 3.1 Conceptual research model .30 Figure 4.1 Statistical moderating model 43 LIST OF TABLES Table 3.1: Frequency of demographic information of respondents 33 Table 4.1: Coding of variables 34 Table 4.2: Descriptive statistics of all variables .35 Table 4.3: Overall Cronbach’s alpha for each variable and sub-variable 36 Table 4.4: Item-total statistics for Intrinsic reward variable .37 Table 4.5: Rotated component matrix .38 Table 4.6: Pearson correlation matrix .39 Table 4.7: Regression analysis (Dependent variable: Employee Engagement) 40 Table 4.8: Mediation analysis (Dependent variable: Employee engagement; Mediator: Self-efficacy) 42 Table 4.9: Moderation analysis 44 Table 5.1: Summary of the results of hypotheses testing 46 LIST OF ABBREVIATION HR human resources HRD human resources development HRM human resources management JTJSS Job Training and Job Satisfaction Survey SHRM Society of Human Resources Management UWES Utrecht work engagement scale CHAPTER 1: INTRODUCTION 1.1 Research motivation Employee engagement is increasingly becoming a vital concept which has been believed that it directly results in higher employee performance and organizational performance Mike Johnson (2004) wrote in his book named “The New Rules of Engagement” that “the ability to engage employees, to make them work with our business, is going to be one of the greatest organizational battles of the coming 10 years.”, which was a crucial prediction about the importance of employee engagement for the future of industries After that, several academic papers and practical reports have stressed employee engagement as an essential factor which may drive business outcomes In an article named as “Why Employee Engagement?” (2012) on Forbes by Kruse, there are 28 academic studies had been reviewed that they show the correlations between employee engagement and numerous other aspects of business administration: service; sale; quality; safety; retention; sale, profit and total shareholder returns Singh (2016) in his own study stated that “For past several years, employee engagement has been an important concern in the corporate world.” According to that paper, organizations cannot get and sustain their loyal customers by products and process only, but also need “highly-motivated, dedicated and involved employees”, or employees who has high engagement, in other word Thus, employee engagement in recent time has been widely and deeply investigated in by organizations and researchers, in order to get better understanding about it, hence can utilize it for better outcomes However, Gallup’s report showed that only 15% of employees are engaged at work in 2017 worldwide Such numbers indicate several chances for increasing level of engagement, thus generate higher outcomes Since employee is the most valuable asset to organizations, it is obviously critical for companies to improve employee performance through types of training activities It is a key factor in organizational management It is seemed that training is one of the ways for organizations to enhance level of engagement of employees Annual reports on employee satisfaction and engagement by Society of Human Resources Management showed many conditions for employee engagement, including training and development However, training and development took account for almost the lowest position in the recent years (SHRM, 2015, 2016, 2017), despite the fact that several studies mentioned significant impacts of training on engagement These indications suggest the need to have a deeper look at such relationship and become the significant motivations for conducting this study 1.2 Research objectives Basically, the objective of this research is to explore the link between employee training and employee engagement in current Vietnamese context According to a report about Employee Engagement & Retention in Vietnam (Towers Watson, 2010), in the period of years from 2007 to 2010, the percentage of employee engagement in Vietnam had remained stable at around 78%, which was just ahead of the Asia Pacific Region Whereby, the possible reasons for this high level are management systems, employee perceptions on company image, effective performance evaluation, empowerment and sophistication However, Brands Vietnam – an electronic portal with high reputation in Vietnam, showed that this indication has declined considerably by about 10%, stayed at 70% in 2017, and even lower in 2015 and 2016 Although it still accounted for a good level in comparison with the level of the world and Asia, this decrease has been a warning for organizations in Vietnam Together with the number which is indicated by Gallup mentioned above, it is suggested that the employee engagement should be improved, and there have been several opportunities for enhancing the business as well as talent management for companies in Vietnam Thus, based on the practical situation and previous academic studies, this paper aims to explain and explore the relationship of the two important Human Resources Management (HRM) aspects: employee training and employee engagement, in order to propose suggestions to improve the level of engagement for organizations in Vietnam, hence enrich the outcomes and performance for those companies 1.3 Research scope and objects Basically, the scope of the study will be employees who have working experience for a company in Vietnam and received training activities while working Besides, since the employee engagement is a psychological and behavioral term, it is understandable that other variables should be psychologically and behaviorally studied, from the view point of employee Particularly, this research has investigated in the perception and satisfaction of employees on the organizational training activities they received, their self-efficacy and perception on reward received from organization, in order to see the relationship between those factors on their perceived employee engagement It will be discussed further on 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Have you received any training activity during working period before December 2018? Section 2: What is your gender? What was your age when you receive such training activity? What is your position when you receive such training activity? What is your average income? Please rank the following statements from – totally disagree to – totally agree 70 – totally disagree – disagree – neither disagree or agree – agree – totally agree Items Section My department provides learning/training opportunities to meet the changing needs of the workplace In my department, learning is planned and purposeful rather than accidental 5 In my department, people are interested in both personal and professional development Training and development are encouraged and rewarded in my department Overall, the on-the-job training I receive is applicable to my job Overall, the training I receive on the job meets my needs Overall, I am satisfied with the amount of training I receive on the job I am generally able to use what I learn in on-the-job training in my job I will be able to achieve most of the goals that I set for myself When facing difficult tasks, I am certain that I will accomplish them In general, I think that I can obtain outcomes that are important to me I believe I can succeed at most any endeavor to which I set my mind Section 71 I will be able to successfully overcome many challenges I am confident that I can perform effectively on many different tasks Compared to other people, I can most tasks very well Even when things are tough, I can perform quite well If I am supposed to put in extra effort in my job, I need to get extra pay It is important for me to have an external incentive to strive for in order to a good job External incentives such as bonuses and provisions are essential for how well I perform my job If I had been offered better pay, I would have done a better job The tasks that I at work are themselves representing a driving power in my job The tasks I at work are enjoyable My job is meaningful My job is very exciting My job is so interesting that it is a motivation in itself Sometimes I become so inspired by my job that I almost forget everything else around me Section Section 72 I focus hard on my work I concentrate on my work I pay a lot of attention to my work I share the same work values as my colleagues I share the same work goals as my colleagues I share the same work attitudes as my colleagues I feel positive about my work I feel energetic in my work I am enthusiastic in my work Thank you for your time, cooperation and participation 73