The impact of perceived leadership styles on organizational commitment

MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HO CHI MINH CITY -oOo - Nguyen Thi Tuy An THE IMPACT OF PERCEIVED LEADERSHIP STYLES ON ORGANIZATIONAL COMMITMENT MASTER OF BUSINESS ADMINISTRATION THESIS HO CHI MINH City - 2012 MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HO CHI MINH CITY -oOo - Nguyen Thi Tuy An THE IMPACT OF PERCEIVED LEADERSHIP STYLES ON ORGANIZATIONAL COMMITMENT Major: Business Administration Major code: 60340102 MASTER OF BUSINESS ADMINISTRATION THESIS SUPERVISOR: ASSOC PROF DR NGUYEN DINH THO HO CHI MINH City - 2012 Contents Acknowledgement i Declaration ii List of tables iii List of figures iii Abstract iv CHAPTER I 1.1 INTRODUCTION Background 1.1.1 Organizational Commitment significance 1.1.2 The importance of Leadership Style 1.1.3 Current factors affect organizations in Ho Chi Minh City 1.2 Statement of the Problem 1.2.1 Employees’ commitment 1.2.2 Leadership 1.3 Research objective and its significance 1.3.1 Research objective 1.3.2 Research significance 1.4 Extent and methodology of the study 1.4.1 Extent of the study 1.4.2 Research methods 1.5 Some concepts related to the research 1.5.1 Organizational Commitment 1.5.2 Leadership and Leadership Style 1.6 Organization of the Remainder of the Study 10 CHAPTER II LITERATURE REVIEW 12 2.1 Introduction on Organizational Commitment 12 2.2 Introduction on Leadership Style 14 2.3 Concept of each element of Organizational Commitment and Leadership Style model 17 2.3.1 Affective commitment 17 2.3.2 Continuance commitment 17 2.3.3 Normative commitment 18 2.3.4 Tas 2.3.5 Re 2.4 Development of Research Hypotheses 2.4.1 Tas 2.4.2 Re 2.5 Research Model CHAPTER III ME 3.1 Description of Instrumentation 3.1.1 Or 3.1.2 Le 3.2 Independent and Dependent Variables 3.3 Sample and Analysis Procedures 3.3.1 Sam 3.3.2 An CHAPTER IV AN 4.1 Sample description 4.2 Reliability of Scales 4.2.1 Or 4.2.2 Le 4.3 Exploratory Factor Analysis 4.4 Descriptive Statistics for Leadership St 4.4.1 Or 4.4.2 Le 4.5 Relationship between Leadership Style 4.5.1 Re 4.5.2 Re 45 4.5.3 Regression of Relation Orientation, Task Orientation and Normative Commitment 48 CHAPTER V SUM 5.1 Research Hypotheses 5.2 Summary of Findings 5.3 Conclusions 5.3.1 Orga 5.3.2 Orga 5.3.3 Orga 5.4 Managerial Implications 5.4.1 Orga 5.4.2 Lead 5.4.3 Lead 5.5 Limitations and suggestions BIBLIOGRAPHY APPENDIX 1: LIST OF KEY CONCEPS IN THE STUDY Organizational Commitment 2.Leadership and Leadership Style a Leadership b Leadership Style APPENDIX 2: QUESTIONNAIRE English version Vietnamese version APPENDIX 3: CHECKING RELIABILITY OF INSTRUMENTS Organizational Commitment Scale a Affective commitment b Continuance commitment c Normative commitment d Reliability of Organizational Commitm Leadership Style Scale a Task Orientation b Relation Orientation c Reliability of Leadership Style Scale 75 APPENDIX 4: EXPLORATORY FACTOR ANALYSIS 77 APPENDIX 5: REGRESSION 82 Multiple regression for Affective Commitment 82 a Assumptions 82 b Result 84 Multiple regression for Continuance Commitment .85 a Assumptions 85 b Result 88 Multiple regression for Normative Commitment 89 a Assumptions 89 b Result 91 i Acknowledgement I would like to thank the following people who helped to make this research possible: Respectful lecturers of University of Economics Ho Chi Minh City for empowering me with considerably useful knowledge during the time I studied in the University Assoc Prof Dr Nguyen Dinh Tho, for supporting and guiding with his patience and competence throughout my dissertation writing Respondents, for giving their precious time in inputting the questionnaires My family, for encouraging me all the time Even I have tried my best to complete the thesis, however, human errors might be found Therefore, all inputs, ideas, and comments would be greatly appreciated Nguyen Thi Tuy An Ho Chi Minh, November 2012 ii Declaration Student number: 7701080001 I would like to declare that this dissertation, “The impact of perceived leadership styles on organizational commitment”, was accomplished based on my recent independent and serious studies and has not been previously, in its entirety or in part, submitted at any university in order to obtain academic qualifications, the data was collected in reality, and all used sources were indicated and acknowledged by means of complete bibliography Nguyen Thi Tuy An iii List of tables Table Table 2 Table Table Table Table Table Four periods of the develop Different points of Leaders Surveyed items used in the Surveyed items used in the Demographic data Reliability of Organizationa Reliability of Leadership St Table Table Table Table 4 Factor Analysis of Organiza Organizational Commitmen Leadership Style Descriptiv Correlation between Leader Table Overall relationship between Leadership Styles and Affective Commitment 43 Table Overall relationship between Leadership Styles and Affective Commitment 43 Table 10 Relationship of each Leadership Style and Affective Commitment Table 11 Overall Relationship between Leadership Styles and Continuance Commitment Table 12 Overall Relationsh Table 13 Relationship of ea Table 14 Overall Relationsh Table 15 Overall Relationsh Table 16 Relationship of ea List of figures Figure Research Model 22 Figure Research Process 30 Figure Research Findings 52 iv Abstract The purpose of research was to explore the impact of perceived leadership styles on organizational commitment The population was the employees working in Ho Chi Minh City The used methods were qualitative and quantitative one based on two instruments of Organizational Commitment Questionnaire (Meyer and Allen, 2004) and Leadership Style Questionnaire (Northouse, 2010) From this study, we could find that:  The organizational commitment in Ho Chi Minh City was at moderate level  The leadership style used by most leaders in Ho Chi Minh City was at moderate range of task and relation orientation  There was a statistically significant relationship organizational commitment of the employees and their perception of supervisors’ leadership styles between RO2 RO3 RO4 RO6 79 RO7 RO8 RO9 RO10 AC1 AC2 AC3 AC4 AC5 AC6 CC2 CC3 CC4 CC5 CC6 NC1 NC2 NC3 NC4 NC6 Extraction Method: Principal Component Analysis Rotation Method: Varimax with Kaiser Normalization a Rotation converged in iterations After deleting TO1, TO7, RO1, CC2 and CC3 KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy Bartlett's Test of Sphericity Total Variance Explained Component Initial Eigen 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 Extraction Method: Principal Component Analysis 81 Rotated Component Matrix TO3 TO4 TO5 TO6 TO8 TO9 TO10 RO2 RO3 RO4 RO6 RO7 RO8 RO9 RO10 AC1 AC2 AC3 AC4 AC5 AC6 CC4 CC5 CC6 NC1 NC2 NC3 NC4 NC6 Extraction Method: Principal Component Analysis Rotation Method: Varimax with Kaiser Normalization a Rotation converged in iterations a 82 APPENDIX 5: REGRESSION Multiple regression for Affective Commitment a Assumptions Linearity and Homoscedasticity Normality 83 Tests of Normality Standardized Residual a Lilliefors Significance Correction * This is a lower bound of the true significance 84 Independence Model Summary b Model R a Predictors: (Constant), Relation_Orientation, Task_Orientation b Dependent Variable: Affective_Commitment Multicollinearity Coefficients a Model (Constant) Task_Orientation Relation_Orientation a Dependent Variable: Affective_Commitment b Result Model Summaryb Model R a Predictors: (Constant), Relation_Orientation, Task_Orientation b Dependent Variable: Affective_Commitment ANOVA b Model Regression Residual Total a Predictors: (Constant), Relation_Orientation, Task_Orientation b Dependent Variable: Affective_Commitment 85 Coefficients a Model (Constant) Task_Orientation Relation_Orientation a Dependent Variable: Affective_Commitment Multiple regression for Continuance Commitment a Assumptions Linearity and Homoscedasticity 86 Normality 87 Tests of Normality Standardized Residual a Lilliefors Significance Correction * This is a lower bound of the true significance Independence Model Summary b Model R a Predictors: (Constant), Relation_Orientation, Task_Orientation b Dependent Variable: Continuance_Commitment 88 Multicollinearity Coefficients a Model (Constant) Task_Orientation Relation_Orientation a Dependent Variable: Continuance_Commitment b Result Model Summary b Model R a Predictors: (Constant), Relation_Orientation, Task_Orientation b Dependent Variable: Continuance_Commitment ANOVA b Model Regression Residual Total a Predictors: (Constant), Relation_Orientation, Task_Orientation b Dependent Variable: Continuance_Commitment Coefficients a Model (Constant) Task_Orientation Relation_Orientation a Dependent Variable: Continuance_Commitment 89 Multiple regression for Normative Commitment a Assumptions Linearity and Homoscedasticity Normality 90 Tests of Normality Standardized Residual a Lilliefors Significance Correction * This is a lower bound of the true significance 91 Independence Model Summary b Model R a Predictors: (Constant), Relation_Orientation, Task_Orientation b Dependent Variable: Normative_Commitment Multicollinearity Coefficients a Model (Constant) Task_Orientation Relation_Orientation a Dependent Variable: Normative_Commitment b Result Model Summaryb Model R a Predictors: (Constant), Relation_Orientation, Task_Orientation b Dependent Variable: Normative_Commitment ANOVA b Model Regression Residual Total a Predictors: (Constant), Relation_Orientation, Task_Orientation b Dependent Variable: Normative_Commitment Coefficients a 92 Model (Constant) Task_Orientation Relation_Orientation a Dependent Variable: Normative_Commitment ... relationship organizational commitment of the employees and their perception of supervisors’ leadership styles between CHAPTER I INTRODUCTION This chapter will present the background of Organizational. .. explore the impact of perceived leadership styles on organizational commitment The population was the employees working in Ho Chi Minh City The used methods were qualitative and quantitative one... leadership styles play key role in building and retaining necessary organizational commitment, the main objective of this research is to examine the impact of perceived leadership styles on organizational