Hight involvement work practices, procedural justiceand trust in the employer an examination in hochiminh city

MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HOCHIMINH CITY - NGUYEN VU QUYNH HOA High-involvement Work Practices, Procedural Justice and Trust in the Employer An Examination in Hochiminh City THESIS OF MASTER OF BUSINESS ADMINISTRATION Ho Chi Minh City - 2012 MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HOCHIMINH CITY - NGUYEN VU QUYNH HOA High-involvement Work Practices, Procedural Justice and Trust in the Employer An Examination in Hochiminh City Major: Business Administration Code: 60340102 THESIS OF MASTER OF BUSINESS ADMINISTRATION Supervisor: PhD Pham Quoc Hung Ho Chi Minh City – 2012 COMMITMENT I would like to commit that the thesis “High-involvement Work Practices, Procedural Justice and Trust in the Employer An Examination in Hochiminh City” is the research of my own Figures in this thesis has been collected and used honestly The research result presented in the thesis has not copied from anywhere and also not yet shown or published in any other research before Hochiminh City, October, 2012 Author of the thesis NGUYEN VU QUYNH HOA GRATEFULNESS The first and in-depth thank I would like to send to my parents and family, who have been supporting and helping me so much so that I can pursue the MBA course as well as finish this thesis I would like to sincerely thank all teachers at Hochiminh City University of Economics, having taught and given me valuable knowledge as a foundation for doing this thesis I especially show my deep gratitude to Dr Pham Quoc Hung for his devoted guidance so that I can complete the thesis I also gratefully thank you all my friends, colleagues and those who helped me answering the questionnaire as a data source for analyzing and giving out the research result of this thesis Last but not least, the most gratefulness is especially entitled to send to my husband and kids, who have been not only going, but also sharing with me difficulties and hardness during the time I enter the MBA course More than that, it was they who are the “driving force” so that I can accomplish the thesis, reaching such a final result ABSTRACT The research uses the quantitative method to define the role of high-involvement work practices and procedural justice on trust in the employer in Hochiminh City The data in this research has been collected from the questionnaire sent to office staffs and managers in Hochiminh City From literature review about trust in the employer, the measurement scale of employee trust has been built with the 7-point scale Likert The reliability of measurement scale was tested by the Cronbach’s alpha coefficient and correlation coefficient The confirmatory factor analysis has also been built to define whether the data in the model fits with Vietnamese situation, especially in Hochiminh City The linear regression model was initially built with the dependent variable “Trust in the Employer” and three independent ones “High-Involvement Work Practices”, “Procedural Justice”, “Perceived Organizational Trustworthiness” After testing the reliability of measurement scale as well as defining the suitability of the model, the model was adjusted to three independent variables as mentioned above but a certain items of them were deleted The result of regression analysis has shown that these three variables have impacted employee trust of organizations in Hochiminh City In which, the most impacted one is Procedural Justice and High-Involvement Work Practices and the less impacted one is Perceived Organizational Trustworthiness, but not playing as a mediating variables as hypothesized in the research model TABLE OF CONTENTS Commitment Gratefulness Abstract List of symbols, abbreviations List of tables List of diagrams CHAPTER 1: INTRODUCTION 1.1 Reasons for this research 1.2 Objectives of the research 1.3 Subjective and Scope of the research 1.4 Research Methodology 1.5 Practical meaning of the research 1.6 Thesis Structure CHAPTER 2: LITERATURE REVIEW AND RESEARCH MODEL 2.1 Introduction 2.2 Literature Review on Trust in the Employer 2.2.1 Trust in Organizations 2.2.2 Antecedents to trust in the employer 2.2.2.1 Trust Research 2.2.2.2 HR Research 2.2.2.3 Organizational justice 12 2.3 Research Model and estimation indices for measuring trust in the employer 14 2.3.1 Research model 14 2.3.2 Estimation indices for measuring trust in the employer 15 CHAPTER 3: RESEARCH METHODOLOGY 3.1 Research design 17 3.1.1 Measurement scale 17 3.1.2 Sampling method 20 3.1.2.1 Overall 20 3.1.2.2 Sampling method 20 3.1.2.3 Sampling size 20 3.1.3 Data collection tool – Questionnaire 20 3.1.4 Data collection process 22 3.2 Statistical data analysis techniques 22 3.2.1 Encoding the data 22 3.2.2 Eliminating unsuitable answers 22 3.2.3 Screening the data 22 3.2.4 Correlation between variables 24 3.2.5 Verifying the measurement scale reliability 24 3.2.6 Confirmatory factor analysis 25 3.2.7 Linear regression analysis 26 CHAPTER 4: RESEARCH RESULT 4.1 Eliminating unsuitable answers 29 4.2 Sample charactertistics 29 4.3 Screening the data 30 4.4 Correlation between variables 32 4.5 Analysis of reliability and suitability of the measurement scale 34 4.5.1 Measurement scale of each factor of employee trust 34 4.5.2 Measurement scale of trust in the employer 38 4.6 Confirmatory factor analysis 38 4.7 Linear regression analysis 43 4.7.1 Relation between variables to trust in the employer 43 4.7.2 Checking assumptions in linear regression 46 CHAPTER 5: CONCLUSION AND DISCUSSION 5.1 Conclusion about Trust in the Employer 51 5.2 Discussion about employee trust in the organization 51 5.3 Limitation of this research and proposals for further researchers 53 References List of appendix LIST OF SYMBOLS, ABBREVIATIONS CFA: Confirmatory Factor Analysis HCM City: Hochiminh City HIWP: High-Involvement Work Practices HR: Human Resource HRM: Human Resource Management POT: Perceived Organizational Trustworthiness PJ: Procedural Justice WTO: World Trade Organization TE: Trust in the Employer LIST OF TABLES Table 2.1 Estimation Indices for measuring Trust in the Employer 16 Table 4.1 Normal distribution of Perceived Organizational Trustworthiness 30 Table 4.2 Normal distribution of High-Involvement Work Practices 31 Table 4.3 Normal Distribution of Procedural Justice 31 Table 4.4 Normal Distribution of Trust in the Employer 32 Table 4.5 Correlation coefficient of Perceived Organizational Trustworthiness 32 Table 4.6 Correlation coefficient of High-Involvement Trustworthiness 33 Table 4.7 Correlation coefficient of Procedural Justice 34 Table 4.8 Reliability Statistics of HIWP 34 Table 4.9 Item-Total Statistics of HIWP 35 Table 4.10 Reliability Statistics of PJ 35 Table 4.11 Item-Total Statistics of PJ 36 Table 4.12 Reliability Statistics of PJ after deleted 36 Table 4.13 Item-Total Statistics of PJ after deleted 36 Table 4.14 Reliability Statistics of POT 37 Table 4.15 Item-Total Statistics of POT 37 Table 4.16 Reliability Statistics of POT after deleted 37 Table 4.17 Item-Total Statistics of POT after deleted 37 Table 4.18 Model Summary of control variables 43 Appendix B: Email sent to the surveyed subjects i n giúp b ng câu h i kh o sát Tuesday, June 19, 2012 6:15 PM From: "Quynh Hoa Nguyen Vu" Add sender to Contacts To: k18_mba@googlegroups.com, "phamvantho1811" , tanpd@yahoo.com, thucdxd4@yahoo.com, nguyenvuduchieu@yahoo.com, nora.hanguyen@gmail.com, "nhkhoa3010 Huu Dang Khoa" , anhnguyen282@yahoo.com, phuonglth@fpt.net Dear All, Kính mong Anh/Ch /Em vui lòng i n giúp QHoa b ng câu h i kh o sát ph c v lu n v n theo ng link sau, sau ó b m nút "Send" :) cho https://docs.google.com/spreadsheet/viewform?fromEmail=true&formkey=dFIzSkdrM3pUODk4Zm5LRkpo QlhDaVE6MQ Và n u v i c, nh m i ng i vui lòng forward Please help me, it takes only few minutes :) Cám ơn r t nhi u Qu nh Hoa ng link cho b n bè, ng nghi p i n giúp Appendix C: The official questionnaire sent for survey Kính chào Anh/Ch , B ng câu h i ngành Qu n Tr Kinh Doanh t i tr ca tài kh o sát nh ng ti n Tp H Chí Minh Tơi xin cam k t m i thơng tin t cho m c ích nghiên c u ph m vi lu n v n nêu Khi hoàn thành xong b ng câu h i này, xin Anh/Ch vui lòng g i l i cho qua trang Google docs Chân thành cám ơn s nhi t tình h tr c a Anh/Ch Trân tr ng Nguy n V Qu nh Hoa Email: marynguyen82@yahoo.com TD : 0972 23 45 36 *B t bu c A Nói v Anh/Ch m i quan h phát bi u: / T ch c có kh Hoàn toàn ph n / T ch hi n * c Hoàn toàn ph n / T ch c hồn thành m i Hồn tồn ph n / T ch c quan tâm Hoàn toàn ph n / Nh ng nhu c u mong mu n c a nhân viên óng vai trị quan tr ng i v i t ch c * Hoàn toàn ph n 6/T ch c s linh Hoàn toàn ph n 7/T ch c khơng bao gi Hồn tồn ph n / Nh ng ng nguyên t c t ch c * Hoàn toàn ph n / Quy n l c không b l m d ng t Hồn tồn ph n 10/T ch c khơng có ý l Hồn tồn ph n 11 / Nh ng m c tiêu Hoàn toàn ph n 12/S tiêu Hồn tồn ph n 13 / Tơi ln vi c.* Hoàn toàn ph n phát tri n ngh c k v ng * 14 / Nhân viên có th Hồn tồn ph n 15 l c cơng vi c c / Nhân viên Hoàn toàn ph n 16 / Tính an tồn cơng vi c ln Hồn tồn ph n 17 / Các nhân viên Hoàn toàn ph n 18 / Các nhân viên Hoàn toàn ph n 19 s / Nhân viên có th bt thù * / Nh ng quy t / Tr c quy t Hoàn toàn ph n 20 Hoàn toàn ph n 21 viên * Hoàn toàn ph n 22 / Các quy t Hoàn toàn ph n 23 / Các quy t Hoàn toàn ph n 24 / Nhân viên có th khơng th a * Hồn tồn ph n B Nhìn chung, Anh/Ch Hồn tồn khơng tin t C Gi i tính * Nam N Gi i tính Anh/Ch b t u i làm t Anh/Ch b t u làm vi c t i Công ty hi n t i vào n m nào? * Chân thành c m ơn G i nào? * ... commit that the thesis “High -involvement Work Practices, Procedural Justice and Trust in the Employer An Examination in Hochiminh City? ?? is the research of my own Figures in this thesis has been...MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HOCHIMINH CITY - NGUYEN VU QUYNH HOA High -involvement Work Practices, Procedural Justice and Trust in the Employer An Examination. .. between them - Secondly, defining the role of organizational trustworthiness and high -involvement work practices in order to examine their impact to trust in the employer - Secondly, building and