The effect of overtime working on burn out, engagement and intention to leave of manufacturing workers in vietnam

VIETNAM NATIONAL UNIVERSITY, HANOI VIETNAM JAPAN UNIVERSITY - NGUYEN THI HAI YEN THE EFFECT OF OVERTIME WORKING ON BURN OUT, ENGAGEMENT AND INTENTION TO LEAVE OF MANUFACTURING WORKERS IN VIETNAM MASTER'S THESIS BUSINESS ADMINISTRATION Hanoi, 2020 VIETNAM NATIONAL UNIVERSITY, HANOI VIETNAM JAPAN UNIVERSITY - NGUYEN THI HAI YEN THE EFFECT OF OVERTIME WORKING ON BURN OUT, ENGAGEMENT AND INTENTION TO LEAVE OF MANUFACTURING WORKERS IN VIETNAM MAJOR: MASTER OF BUSINESS ADMINISTRATION CODE: 8340101.01 RESEARCH SUPERVISORS: Assoc.Prof Dr KODO YOKOZAWA Dr DO XUAN TRUONG Hanoi, 2020 ACKNOWLEDGMENT I would like to express my deep gratitude to Dr Do Xuan Truong and Assoc Pro Dr Kodo Yokozawa, my research supervisors, for their patient guidance, enthusiastic encouragement and useful advice of this research work I would also like to thank VJU, YNU and JICA for giving me the opportunity to study, practice and research at YNU, where there are excellent lecturers and adequate facilities to study My grateful thanks are also extent to other lecturers in the MBA faculty for listening and giving me critiques to complete the research further I am particularly grateful for the assistance given by Ms Huong - MBA program assistant, IPO office staff - YNU and volunteer support team in Japan to prepare and support us during all presentation and follow up research as well as study activities I would also like to extend my thanks to Mr Hao for sharing us his experience and also basic knowledge for doing a thesis Finally, I wish to thank my parents for their support and encouragement through out my study ABSTRACT In the context of controversy surrounding the issue of increasing maximum overtime hour in Vietnam, the study was conducted to clarify the effects of overtime on workers' intention to leave their jobs This research aims to explain the relationship between overtime hour, burnout, engagement and intention to leave organization The study was conducted by online surveys targeting workers who are working in manufacturing companies in Vietnam There were 465 responses, but only 139 valid questionnaires were selected for data analysis Results obtained from linear and quadratic analysis have drawn conclusions about both positive and negative roles of working overtime hour All hypotheses describing relationships between variables including working overtime hour, burnout, engagement and intention to leave organization are accepted There are hypotheses matching result from previous research in the Job demand resource model on the relationship between burn out, engagement and intention to leave In addition, the study confirmed both the positive and negative roles of over time hour: Working overtime hour has positive relationship with burn out which lead to negative impact on employee well-being such as intention to leave; working overtime hour have quadratic relationship with engagement which reduce intention to leave The findings may suggest managers to arrange and allocate overtime appropriately, as well as the government to introduce overtime laws and resolve existing disputes Table of Contents CHAPTER 1: INTRODUCTION 1.1 Rationale: 1.2 Research objective 1.3 Research scope 1.4 Research structure CHAPTER 2: LITERATURE REVIEW 2.1 Working overtime hour 2.1.1 2.1.2 2.2 Intention to leave 2.2.1 2.2.2 2.3 Job Demand Resource model 2.4 Research question: 2.5 Hypothesis development and conceptual m 2.5.1 2.5.2 CHAPTER 3: RESEARCH METHODOLOGY 3.1 Research process 3.2 Sample design 3.3 Measuring i CHAPTER 4: DATA ANALYSIS 4.1Data description 4.2Reliability analysis 4.2 Confirmatory Factor Analysis (CFA) 4.2 4.2 4.2 4.3Creating a representative variable: 4.4Pearson correlation analysis 4.5Regression Analysis 4.5 out 4.5 Engagement 4.5 4.5 4.5 4.5 4.6Hypothesis tested results CHAPTER 5: CONCLUSION AND DISCUSSION 5.1Conclusion 5.2Discussion 5.3Implication 5.4 Limitation and future research direction 54 REFERENCE 55 APENDIX 61 iii LIST OF TABLES Table 2.1: Definition of ITL 10 Table 3.1: The content of measuring items 24 Table 3.2: Likert scale of ITL 25 Table 3.3: Likert scale of Burn out and Engagement 26 Table 4.1: Data description 27 Table 4.2 Reliability analysis 29 Table 4.3: KMO and Bartlett's Test of Virgo 31 Table 4.4: Total Variance Explained of Virgo 31 Table 4.5: Component Matrix of Virgo (Rotated) 31 Table 4.6 : KMO and Bartlett's Test of Dedication 32 Table 4.7: Total Variance Explained of Dedication 32 Table 4.8 : Component Matrix of Dedication (Rotated) 32 Table 4.9: KMO and Bartlett's Test of Absorption 33 Table 4.10: Total Variance Explained of Absorption 33 Table 4.11: Component Matrix of Absorption (Rotated) 33 Table 4.12 : KMO and Bartlett's Test of Burn out 34 Table 4.14 : Component Matrix of Burn out (Rotated) 35 Table 4.15: Total Variance Explained of Burn out (after removing B9) 35 Table 4.16: Component Matrix of Virgo (Rotated, after remove B9) 36 Table 4.17: KMO and Bartlett's Test of ITL 36 Table 4.18 : Total Variance Explained of ITL 37 iv Table 4.19: Component Matrix of ITL (Rotated) 37 Table 4.20: Pearson Correlation statistic 39 Table 4.21: Regression Analysis Summary of Working overtime hour and Burn out………… 40 Table 4.22: Regression Analysis Summary of the impact of Working overtime on Engagement 42 Table 4.23: Regression Analysis Summary of impact of Engagement on Burn out……….… 44 Table 4.24: Regression Analysis Summary of impact of Burn out on Engagement 45 Table 4.25: Regression Analysis Summary of impact of Burn out on ITL 46 Table 4.26: Regression Analysis Summary of impact of engagement on ITL 47 Table 4.27: Hypothesis tested results 48 v LIST OF FIGURES Figure 2.1: Relationship between Human Resource Value, ESE and Employee ITL (Tzafrir et al., 2015) 11 Figure 2.2: Turnover intention model (Muliawan, 2009) 12 Figure 2.3: Model of Personality and Turnover Intention (Jeswani & Dave, 2012) 13 Figure 2.4: Theoretical model of turnover and INL among psychiatric nursing personnel (Alexander, 1998) 14 Figure 2.5: JDR model (Bakker & Demerouti, 2007) 16 Figure 2.6: Conceptual model 20 Figure 3.1: Research Process 22 LIST OF GRAPH Graph 4.1: Linear graph of the impact of Working overtime on Burn out .41 Graph 4.2: Quadratic graph of the impact of Working overtime on Engagement 43 vi jobs of workers when the salary is calculated by working time, overtime is the optimal solution If they can get more money from overtime, they can meet their demand and feel more engaged to their work However, when the overtime is too much, it will lead to an imbalance in life, They not have enough time to take care of yourself and your family, leading to dissatisfaction and disengagement to work Moreover, when the overtime is too high, it cause exhaustion and also contribute to reduce engagement Based on the graph 4.2 we can see that engagement increases when employees work around from less than 2.5 hours/week to less than 7.5 hours/week (from less than 10 hours/month to less than 30 hours/month) Beyond this time, engagement will decrease Amazingly, this is in line with the current situation where the government stipulates that organizations can conduct working overtime within 30 hours a month However, overtime hour only explains 36% of engagement According to the interviews with workers, not only the income that makes them want to stay in company, but other welfare policies also greatly influence the worker‟s decision to work at the company For example: Policy for health insurance, social insurance, the care for the spiritual life of trade unions, moreover, long-term job stability compared to free precarious jobs outside 5.3 Implication Research results show that to reduce workers' intention to quit, we can: increase worker engagement with businesses, reduce worker exhaustion and adjust working overtime reasonably: To reduce the burnout and ITL of workers:  Looking at the graph 4.1, you can see that working around over 40 hours per month and more will make employees physically and mentally exhausted Therefore, overtime should not exceed 40 hours per month to ensure employee health  Enterprises actively improve meals for workers The government sets some basic standards for meals at company regard to calories, nutrition or food safety 52 To overcome malnutrition and disease among workers, many health experts say that it is necessary to improve the quality of meals and improve the working environment In Vietnam, there is currently no law on meals for workers There are no specific standards for a meal for workers to have enough energy to work during the day, so when poisoning occurs, there is no legal basis to bind the responsibility for anyone  Organizing periodic health examinations, to ensure workers are detected disease promptly and take measures to treat and recover soon Avoiding workers having to work in exhausted health conditions, which will affect not only workers themselves and the quality of work as well as the benefits of the business in the long term  Arranging overtime appropriately Organization should allocates overtime scatteredly so that workers can have time to recover energy Having reasonable break time during shift work also important To improve engagement and decrease ITL of worker:  The government may consider the results of this study and keep the law for workers' maximum overtime of 30 hours per month Because working less than 30 hours a month will make workers retain high engagement with the company  There should be a clear benefit system for all types of insurance as well as pensions for workers Organizations should show their long-term commitment and job stability to workers and explain clearly their benefit in the future  Organizations like unions or managers themselves should have activities that are more concerned about the spiritual life of workers The company should celebrate some union activities such as sport competition, small trip for workers in order to improve solidarity and make them engaged to the company 53 5.4 Limitation and future research direction The scope of the research is quite narrow The research aims to worker in Vietnamese manufacturing companies, so the research results may not be accurate in other contexts, when the economy is more developed or more primitive, or conducted in companies that have a different business model than manufacturing Other author can conduct similar studies in other contexts to retest the above relationships and compare with these results Research objects is aim for workers This object has feature different from other high-qualified employees in terms of demands, perceptions, education, mind set, behavior, etc Therefore, research results when applied to other objects may be biased.The sample is only 139 respondents Even it reach minimum standard for measurement, it is still quite small and narrow To avoid the impact of demographic factors on the study subjects, target respondent are female workers, under 30 years old Therefore, when the research object is expanded, the results may change The further research direction may be to test the model with a wider respondent to see how the demographic factor affects the relationships in the model In JDR model, burn out and engagement also play a role of mediator between job characteristics and organizational outcome Job demand buffers the impact of job resource and engagement, while job resource meditates negative affect of job demand on burn out Other authors can also delve into these mediating and moderating effect In addition, recently Bakker already mentioned the influence of personal resource on some relationships on JDR model, people interested in this topic can also study the impact of personal resources on working overtime and related relationships 54 REFERENCE Alexander, J., Lichtenstein, R., Oh, H., & Ullman, E (1998) A causal model of voluntary turnover among nursing personnel in long-term psychiatric settings Research in Nursing & Health, 21(5), 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What is your average overtime hours? Less than 2.5 hours per week (Less than 10 hours per month) From 2.5 - hours per week (From 10 -20 hours per month) From - 7.5 hours per week (From 20 -30 hours per month) From 7.5 - 10 hours per week (From 30 -40 hours per month) From 10 - 12.5 hours per week (From 40 -50 hours per month) Over 12.5 hours per week (Over 50 hours hours per month) From questions to 26, When thinking about your work, evaluate your thoughts on the following statements by choosing a scale from to (ascending with agree level or frequency level) as below: Level of agree Strongly disagree ==========> Strongly Agree Strongly disagree 61 W Never My job inspires me Never I am actively looking for a job outside my place of employment Strongly disagree Never I am proud on the work that I Never I am enthusiastic about my job When you think about your work overall, how often you feel physically weak/sickly? Never 2.Rarely Sometimes Often Always When you think about your work overall, how often you feel helpless? Never 2.Rarely Sometimes Often Always When you think about your work overall, how often you feel trapped? Never 2.Rarely Sometimes Often Always When you think about your work overall, how often you feel tired? Often Always 2.Rarely Sometimes Never 10 When I get up in the morning, I feel like going to work Often 2.Rarely Sometimes Never Always 62 11 As soon as I can find a better job, I’ll leave my organization Strongly disagree 2.Disagree Neutral 4.Agree Strongly agree 12 I get carried away when I’m working Never 2.Rarely Sometimes Often Always 13 When you think about your work overall, how often you feel hopeless? Often Always 2.Rarely Sometimes Never 14 I feel happy when I am working intensely 2.Rarely Sometimes Never Often Always 15 I often think of quitting my job at my organization 1.Strongly disagree 16 At my job, I feel strong and vigorous 1.Never 17 When you think about your work overall, how often you feel disappointed with people? 2.Rarely Never Sometimes Often 18 When I get up in the morning, I feel like going to work Often 2.Rarely Sometimes Never Always Always 19 I think I’ll still be working at my place of employment years from now Strongly disagree 2.Disagree Neutral 4.Agree Strongly agree 20 When you think about your work overall, how often you feel worthless/like a failure? Never 2.Rarely Sometimes Often Always 21 When you think about your work overall, how often you feel “I’ve had it”? 63 Never 2.Rarely Sometimes Often 22 I am seriously thinking about quitting my job Strongly disagree 2.Disagree Neutral 4.Agree Always Strongly agree 23 When you think about your work overall, how often you feel depressed? Never 2.Rarely Sometimes Often Always 24 When you think about your work overall, how often you feel difficulties sleeping? Never 2.Rarely Sometimes Often Always Sometimes Often Always 26 I am immersed in my work 2.Rarely Sometimes Never Often Always 25 I get carried away when I’m working Never 2.Rarely 27 .What is your gender? A Male B Female 28 How old are you? A Under 30 B 30-45 years old C Over 45 years old 29 What is your occupation position? A Worker B Staff C Manager D 64 30 What is your current marital status ? A Married B Not married 31 What kind of company you work for? A Manufacturing / assembling / processing company B Not a manufacturing / assembly / processing company 32 According to Vietnamese law, normal working hours are hours per day, days per week, exceeding that time is overtime The regular overtime wage is 150% of the normal working hour wage The night shift salary is added 30% compared to normal Do you receive overtime pay under the law? A Yes B No 65 ... the context of controversy surrounding the issue of increasing maximum overtime hour in Vietnam, the study was conducted to clarify the effects of overtime on workers' intention to leave their... aims to explain the relationship between overtime hour, burnout, engagement and intention to leave organization The study was conducted by online surveys targeting workers who are working in manufacturing. . .VIETNAM NATIONAL UNIVERSITY, HANOI VIETNAM JAPAN UNIVERSITY - NGUYEN THI HAI YEN THE EFFECT OF OVERTIME WORKING ON BURN OUT, ENGAGEMENT AND INTENTION TO LEAVE OF MANUFACTURING WORKERS