The influence of Applicants’ Perceptions of Fairness to Job Offer Acceptance in the Private-sector in Vietnam.

Explain the relationship between distributive justice and the decision of accepting work offers, applicant felt fairness in the allocation, it can motivate their appreciatio[r]

VIETNAM NATIONAL UNIVERSITY, HANOI VIETNAM JAPAN UNIVERSITY

CAO VU HA TRANG

THE INFLUENCE OF APPLICANTS’

PERCEPTION OF FAIRNESS TO JOB OFFER ACCEPTANCE IN

THE PRIVATE-SECTOR IN VIETNAM

MASTER’S THESIS

BUSINESS ADMINISTRATION

VIETNAM NATIONAL UNIVERSITY, HANOI VIETNAM JAPAN UNIVERSITY

CAO VU HA TRANG

THE INFLUENCE OF APPLICANTS’

PERCEPTION OF FAIRNESS TO JOB OFFER ACCEPTANCE IN

THE PRIVATE-SECTOR IN VIETNAM

MAJOR: BUSINESS ADMINISTRATION CODE: 60340102

RESEARCH SUPERVISORS:

PROF DR DANIEL ARTURO HELLER Dr TRAN HUY PHUONG

ACKNOWLEDGEMENT

I would like to express my deep gratitude to all those who have given me the possibility to complete this graduation thesis In preparing this graduation thesis, I have had generous help and advice from my teachers, my colleagues, my family and my friends, I would like to express my great thanks to all of them

First of all, I would like to express my deepest gratitude to my supervisor Dr Tran Huy Phuong and my co-supervisor Prof Daniel Heller, who have given immeasurable help, constant guidance with many careful instructions, comments and valuable advices to me Without their support, I am not able to have a complete thesis

Secondly, I wish to show my sincere thanks to all my teachers at Vietnam- Japan University, who have provided me with worthy lessons throughout two years of study Without their helps, it would be impossible for me to finish this work

TABLE OF CONTENTS

Chapter Introduction

1.1 Background

1.2 Research rationale

1.3 Research objective and research question

1.4 Research scope

1.5 Research methodology

1.6 Structure of the research

Summary of Chapter

Chapter Literature review

2.1 Overview of job offer acceptance

2.1.1 Definition of job offer acceptance

2.1.2 The importance role of job offer acceptance

2.1.3 The main factors affecting job offer acceptance 10

2.2 Overview of application perceptions of fairness 12

2.2.1 Interactional Justice 12

2.2.2 Procedural Justice 14

2.2.3 Distributive Justice 16

2.3 Empirical results of applicant perceptions of justice and job acceptance 19

Summary of Chapter 20

Chapter Research model 21

3.1 Analytical framework 21

3.2 Hypothesis development 23

Summary of Chapter 26

Chapter Methodology and Data Analysis 27

4.1 Data collection 27

4.2 Measurement test 28

4.3 Hypothesis testing 30

4.3.1 Descriptive statistics about the candidates participating in the survey 30

4.3.2 Cronbach’s Alpha Test 31

4.3.3 Exploratory Factor Analysis (EFA) 36

4.3.4 Pearson Correlation Test 38

4.3.5 Regression analysis 40

Summary of Chapter 47

Chapter Findings, Implications and Discussion 48

5.1 Findings and discussion 48

5.2 Implications 50

5.3 Limitations of research and future research orientation 53

Summary of Chapter 54

LIST OF CHARTS

Chart 3.1 Conceptual framework of Konradt et al (2015) 22

Chart 3.2 Conceptual framework 23

Chart 4.1 Age group of candidates 30

LIST OF TABLES

Table 4.1 Cronbach’s Alpha Test of Procedural Justice Perception scale 32

Table 4.2 Cronbach’s Alpha Test of Distributive Justice Perception scale 34

Table 4.3 Cronbach’s Alpha Test of Interactional Justice Perception scale 35

Table 4.4 KMO and Bartlett's Test 36

Table 4.5 Total Variance Explained 37

Table 4.6 Rotated Component Matrix 38

Table 4.7 Pearson Correlation Test 39

Table 4.8 Model summary 40

Table 4.9 ANOVA Test 41

Table 4.10 Regression result 41

Table 4.11 Tests of Interaction effects between GEN and PJ 43

Table 4.12 Tests of Interaction effects between GEN and DJ 44

Table 4.13 Tests of Interaction effects between EXP and PJ 45

Chapter Introduction 1.1 Background

In Eastern philosophy, the use of people is highly valued and considered one of the prerequisites of success Especially in the field of business, people are considered one of the most important resources to decide the success or failure of the business A company or organization has strong financial resources, modern technical machinery but if the operation of human resource management is ineffective, it is difficult to develop long term Therefore, recruiting to provide quality human resources for the organization is the most important function performed (Rynes & Cable, 2003) However, the fact that people are the most expensive and difficult to manage resources in the business The high recruitment cost that were not associated with accepting the candidate's job offer affected the efficiency of recruitment and reduced the organization's success (Murphy, 1986)

In the context of Vietnam’s integration, the wave of investment by foreign enterprises is increasing, leading to a fierce competition in the labour market Domestic enterprises are increasingly struggling to maintain and manage human resource, especially the high-quality human resource To survive and to grow in the marketplace, business owners need to have good human resources to achieve common goals of organizations This shown the great role of human resources and the recruitment of personnel (International Labour Organization and Asian Development Bank, 2014)

vision Employees tended to show their confidence in the organization or supervisor and also became effective when they realized to be treated fairly by their organization Greenberg (1990) suggested that organizational justice has a strong impact on a number of organizational variables, including faith, commitment, job satisfaction, intention to quit, participation in work, productivity action and civic behaviour of the organization Therefore, justice policy should be applied by organizations (Akanbi & Ofoegbu, 2013) Moreover, the organizational justice aspects (procedural, distributive, interpersonal) should be applied in the organizational, practical and regulatory policies of the enterprise (Colquitt, Conlon, Wesson, Porter, & Nguyen, 2001)

Derived from the above-mentioned empirical studies and analyses, a study of the perception of enterprise fairness and the acceptance of job offers of employees is essential This is the motivation for conducting a behavioural study of workers Therefore, the research topic “The influence of applicants’ perception of fairness to job offer acceptance in the private-sector in Vietnam” is selected for implementation

1.2 Research rationale

This study was implemented for several reasons as follows:

provide operational policies, recruitment policies and personnel policies to attract high quality labour Of these factors, organizational equity is an aspect of policy This is the reason for this study to be conducted The pretension is that outputs of this research can contribute greatly to organizations

Secondly, in Vietnam, research on workers’ behaviour is a common topic, but only focus on the analysis of factors affecting recruitment activities based on internal and external indicators In the selection of jobs, Pham (2013) studied the impact of a number of objective factors on the current job choice behaviour of high school students The research results show that the behaviour of career choice is affected by the school’s career orientation and family orientation In the period when workers join the organization, some authors conduct research on employee satisfaction with their work (Nguyen, Nguyen, Nguyen, & Nguyen, 2018; Nguyen P , 2018) Nguyen's research team (2018) studied on the subjects of construction workers and discovered factors including promotion opportunities and working conditions relationships with colleagues and work characteristics having a relationship with job satisfaction The above studies were typical of the recruitment phase that was preceded by posting employment The candidate stage was still confused when deciding whether or not to approve the job offer (Chapman, Uggerslev, Piasentin, & Carroll, 2005) This topic has not been paid much attention by the study authors in Vietnam Therefore, the analysis of candidate behavior in this period is limited In particular, currently, no research has been done on the topic of organizational justice and its relationship with the decision of job offer acceptances This is the motivation for this research to be carried out

equity Typically, improving the situation of previous studies only focused on process-based justice Chapman & Webster (2006) had added a number of other factors to the research that were candidates' signals and expectations, payment of salaries, locations and marketability Although this study had a strong point of being implemented on a large sample size with 588 applicants from 215 businesses in Canada However, the two authors were still limited when only focusing on three mechanisms of process justice In the same case, Konradt et al (2015) also focused on the process of justice awareness according to the process when carrying out a 3-year long study with data from 182 candidates in the apprenticeship program of a large industrial company in Germany

In another study, Harold et al (2015) developed more with previous studies to study two aspects of organizational justice, procedural justice perceptions and interactional justice perceptions Besides, authors also studied some other aspects such as the image of organization awareness, organization familiarity, the compatibility between people and organization, recruitment behavior It also used the control variable Armed Forces Qualification Test (AFQT) scores, age and gender of candidates Although it was considered to be more complete than the studies, this study was still limited when allocation justice was not studied According to the classification, organizational justice included three aspects which were distributive justice, procedural justice and interactional justice (Ambrose, Hess, & Ganesan, 2007; Yean & Yusof, 2016) This is a research gap to conduct a complete study on each aspect of organizational justice Expanding from previous studies, this study examines three aspects of organizational justice as mentioned above In addition, two control variables are also used as candidates' gender and work experience

1.3 Research objective and research question

- To systematize the theoretical basis related to accepting job offers and awareness of fairness

- To study empirical relationships between awareness of fairness and acceptance of job offers

- Based on the analytical framework, to conduct an empirical analysis of the impact in the candidate's perception of fairness to accepting job offers in private sector in Vietnam

- To provide recommendations to enhance the candidates’ job offer acceptance To clarify the specific research objectives above, the below research questions are conducted answer:

- Which theoretical bases relate to accepting job offers and awareness of justice?

- The empirical relationship between awareness of justice and acceptance of a job offer?

- How the candidate's perception affects the acceptance of job offers in private sector in Vietnam?

- What are the recommendations for businesses to enhance the candidates’ job offer acceptance?

1.4 Research scope

1.5 Research methodology

The research method is an association of quantitative methods and qualitative methods Qualitative research is used in synthesizing theoretical bases related to awareness of fairness, the relationship between awareness of fairness and the decision to accept work offers Specifically, in qualitative research, it used the secondary materials from international publications, books, international journals, reports and workshop materials to develop literature review The core part of the study is quantitative analysis Specifically, a linear regression analysis model is used to study the impact of the candidate's perception of fairness to the acceptance of job offers Quantitative analysis techniques include saving reliability with Cronbach’s Alpha Test, Exploratory Factor Analysis (EFA), Pearson Correlation Test, Regression analysis and Multi-collinear testing The data used in the analysis are primary data compiled through a survey of the questionnaires to the candidates who have interviewed in private companies in Vietnam

1.6 Structure of the research

Summary of Chapter

Chapter Literature review 2.1 Overview of job offer acceptance

2.1.1 Definition of job offer acceptance

The concept of job offer is simply an invitation for a potential employee, whether or not the applicant has applied for a job in an organization (Heathfield, 2019) The job offer often have the outline of the terms and conditions of employment offered to employees in the future These include wages, benefits, job responsibilities, and the name and title of the report manager The job offer may also include expected working hours, desired start dates and provide important details for future employees

The process of forming the job offer may include the following two stages First, the organization attracts candidates to organizations for employers to select and screen qualified people to work at a certain position in the organization Secondly, the organization evaluates candidates in many different ways, based on the requirements of the job, among those attracted through recruitment The recruitment process needs to identify the skills, knowledge and personal characteristics necessary for immediate needs of the business position as well as the future development goals of the business (Ployhart & Harold, 2004)

Based on the simple concept above, the job offer acceptance can be understood simply as the acceptance of an invitation for a given job It implies that candidates are willing to join the organization to work with the terms and conditions of employment given In another aspect, acceptance of work offers was related to the amount of work and wages that employees receive (Abraham, et al., 2013)

2.1.2 The importance role of job offer acceptance

had the effect of promoting the growth of revenue and the rate of the organization Another important argument also emphasizes that human resource management is responsible for attracting and selecting the appropriate workforce, providing them with appropriate training to improve their capacity The ultimate goal is to achieve the organization's goals Effective recruitment not only enhances the overall effectiveness of the organization but also helps manage human resources more effectively (Saddam & Mansor, 2015) Moreover, effective recruitment activities help organizations attract and hire people with appropriate qualifications and always update their knowledge, skills and professional attitudes As a result, workers are able to meet what the organization requires them to (Lockwood, 2007)

In the field of recruitment, the candidate's acceptance of a job offer is considered a success factor The final stage of recruitment is that the candidate accepts or rejects job offers (Harold, Uggerslev, & Kraichy, Recruitment and job choice, 2013) Combined with the above analysis, it is important for businesses to accept job offers that are important for businesses not only to reduce recruitment costs but also to increase revenue efficiency and profit of the business

Moreover, subjective images and relevance, as well as features of the recruitment process can simultaneously predict candidates’ job choice decisions Therefore, it implies that, through the results of the proposal of accepting jobs, organizations can adjust these factor (Barber, 1998) Supporting this view, Walker et al (2013) confirmed that the results of accepting job offers also meant higher organizational relationships and attractiveness

2.1.3 The main factors affecting job offer acceptance

Factors influencing the applicant's ability to accept job offers have been studied and provided diverse evidence in previous studies Specifically, Jurgensen (1978) confirmed that the following 10 attributes in terms of what was most important to them in a job: advancement, benefits, company, co-workers, hours, pay, security, supervisor, type of work and working conditions Turban (1995) argued that website access, workplace awareness and the ability to host servers positively impacted the decision to accept jobs In the previous research However, these two authors did not provide a clear comparison to clarify the difference between the decision to accept the job offer of unemployed and unemployed candidates It was clear that there was a difference based on the argument of search theory It implied that unemployed individuals should make significant concessions to get new jobs However, there was a lack of information regarding how the unemployed considered their decision-making process (Abraham, et al., 2013)

In another aspect, the cost of commuting to work also affects the acceptance of work offers In a previous study, the research team discussed that job offers could be rejected because of high travel costs or low availability of unemployed people (Abraham, et al., 2013) However, through empirical studies, an opposition result was discovered This proves that there is no clear relationship between employment status and migration (Kley, 2013) While in another study, migration was higher in the unemployed group (Boenisch & Schneider, 2010)

Unemployed people would try to expand the search radius, conceding terms to increase the chances of getting a suitable job offer It came from the characteristics of this group of people as a low level and lack of expertise to access better networks (Abraham, et al., 2013) This also shows that the characteristics of workers are also a factor affecting the acceptance of work offers

On the enterprise side, the income of employees was also a factor affecting the decision to accept job offers Workers may decide to accept a new job with a higher income (Abraham, et al., 2013) However, it is not simple in the current income, another idea is the decision to accept a job offer driven by expectations of future work Therefore, employees may accept new job offers if future job prospects are better than their current status, regardless of whether they are employed or unemployed (Logan, 1996)

The above content mentioned a number of factors affecting the decision of approving work proposals However, when discussing the issue in depth, previous studies had focused on the outcome of recruitment, which was a non-behavioural factor Therefore, it implied that it was impossible to predict the decision to accept the job (Chapman, Uggerslev, Piasentin, & Carroll, 2005) For example, an appealing assessment of an organization did not necessarily mean that labour accepts changes in their careers

To solve this problem, some authors had studied the psychology of workers Specifically, authors have focused on research and found that awareness of justice was the central determinant of applicant behaviour (Bell, Ryan, & Wiechmann, 2004; Hausknecht, Day, & Thomas, 2004; Ployhart & Harold, 2004) In a previous study, Lind (2001) had confirmed that demonstrating high degree of equity is the most important in the early stages of recruitment Accordingly, the fairness of the organization was a factor for the applicant to decide whether to become a member of the organization

2.2 Overview of application perceptions of fairness

2.2.1 Interactional Justice

distributive justice, and interactional justice Accordingly, procedural justice and distributive justice are two basic aspects of organizational justice Interactive justice is the latest justice discovered regarding the elements of justice between individuals and information (Muzumdar, 2012) The following are theories related to each of above types of justice

In terms of concept, sociologist John R Schermerhorn defined interactive justice as the degree to which people affected by decisions were treated with respect and dignity Interactive justice is divided into two parts The first part is called interpersonal justice and the second part is informational justice (Muzumdar, 2012) Interpersonal justice was defined as how a person was treated by his supervisors and subordinates, etc (Lin & Tyler, 1988) Treating supervisors is respect, dignity, encouragement and encouragement According to Frazier et al (2010), interpersonal justice considered personality and attitude of communication affecting individuals It involved how individuals were responsible for allocating resources and rewards at work to recipients (Chou, 2009) One facility was given that apology was seen as a tactic to enhance justice among individuals as they relate to showing remorse In addition, apology helped those who were harmed avoid their negative effects, thereby reducing anger effectively (Greenberg, J., 1990)

In another aspect, informational justice is seen as an explanation provided to those who convey information about why the procedure is used in a certain way or why the result is distributed according to a certain way When an explanation is more full than common, the level of awareness of information justice is higher (Greenberg, J., 1990) Thereafter, Greenberg (1993) asserted that information explanations can help people affected by decisions to understand the reasons for those decisions Because it is a means of changing the response and receptive ability of employees to the given procedures

the candidate; interviewers treat candidates with respect and dignity; the interviewer is sensitive to the applicant's individual needs; the manager treats the candidate honestly It helps the candidate understand clearly before making a decision about accepting the job On the other hand, interactional justice is also expressed through the way the company’s representative shows interest in the candidate's rights as employees In order to interact with candidates on the decision to join the organization, the interactional justice is also reflected by the company's agent or interviewer discussing with candidates about their decision making and the meaning of decision making (Yaghoubi, Mashinchi, Ebrahimi, Abdollahi, & Ebrahimi, 2011) Thus, when the candidate has not participated in the organization, the awareness of the interaction is reflected through interaction with the representative of the company In Vietnam, this representative may be the head of a certain department in the company or the head of the HR department, even the executive board of the enterprise Although different in responsibilities, these subjects have a common feature of being knowledgeable about the core business and business model of the business

2.2.2 Procedural Justice

results on decisions, even employees who not comply with rules and procedures Some cases led to low labor productivity

The question is why procedural justice can have a strong impact on such organizations? Thibaut and Walker (1975) stressed that procedural justice is considered as a control process that functions as a protector of personal interests This helps individuals protect their interests Two authors demonstrated this assumption that individuals would be more satisfied with adverse results if they believe that the decision-making processes were fair In the context of strategic decision making, Kim and Mauborgne (1998) stressed the way of justice according to the procedure emotional recognition and promotes intellectual Two researchers believed that a fair process in each organizational activity made organization members feel being respected for the intellectual and their emotional values This made them ready to accept new challenges and cooperated with others in a way that enhanced value creation at the enterprise level

reconsideration opportunities, consistency of governance), explanation (feedback, open and known information) and interpersonal treatment (treatment of applicants and ownership of questions) (Konradt, Warszta, & Ellwart, 2013)

In the first phase of recruitment, by the perception of procedural justice, when the applicant requests additional responsibilities of the job, the company’s representative or interviewer clarifies what the candidate is interested in On the other hand, procedural justice is also confirmed through interviewers' treatment with candidates during the interview process The process from filing and interviewing is also considered as fair to candidates according to the company's procedural justice On the other hand, in many cases, the labor contract is the result of the interview process The procedures related to the content of the contract given by the company representative during the interview are also used by the candidates for evaluation These procedures are legal provisions in the recruitment process Thus, during the interview process, the behavior of the company representatives with the candidates in a fair manner is very necessary

2.2.3 Distributive Justice

leaders, and revenue goals of employees (Tyler & Caine, 1981; McFarlin & Sweeney, 1992; Foley, Kidder, & Powell, 2002)

Moreover, in businesses, distributive justice played a very important role The most common goal in most equity distribution studies had been maximizing productivity Most studies had focused on fair rules (Adam, 1965) Because unfair distribution can lead to distrust, dispute, disrespect and other social issues between employees and their managers (Suliman, 2007) In other words, employee productivity was likely to increase when they were rewarded When employees achieve expectations that were not met, some negative impacted on businesses appear such as reducing labor productivity, organizational dissatisfaction and distrust (Frazier, Johnson, Gavin, Gooty, & Snow, 2010)

According to Noruzy et al (2011) Distribution justice focused on employee confidence and feeling satisfied with the results of their work such as salary and job assignment Distributive justice refereed to equity awareness of the results an individual received from the organization Results can be distributed on an equal basis, needs or contributions and individuals determine the fairness of distribution through comparison with others (Alsalem & Alhaiani, 2007) To assess the perception of fairness distribution, Leventhal (1976) gave a number of items to assess related outcomes such as salary or promotion at work, rewards in labor, refresher classes, the requirement of appropriateness in distributing results related to the contributions of workers Three distribution rules including justice, fairness and demand were considered aspects of distribution justice (Colquitt, Conlon, Wesson, Porter, & Nguyen, 2001) On another aspect, Forsyth (2006) refers to the five norms of distribution justice included:

invest less Individuals who invest in high levels of inputs will receive more results than those who invest less

 Equality: Although the employee's input is different, the employees are entitled to equal rewards

 Power: In this respect, the fact that people with multiple rights, status or control over the group should receive more than those in lower positions, with less authority, status or control over the group

 Need: People with the greatest needs need to be provided with the resources needed to meet those needs These individuals should be provided with more resources than those who already own them, regardless of their inputs

 Responsibility: This norm is based on distribution justice based on resource sharing In other words, the most resource-intensive individual group members should share their resources with those with less

2.3 Empirical results of applicant perceptions of justice and job acceptance

The content of this section is an introduction of some empirical studies on the relationship between awareness of justice and acceptance of work offers (Chapman, D S.; Webster, J., 2006; Walsh, Tuller, Barnes‐Farrell, & Matthews, 2010; Harold, Holtz, Griepentrog, Brewer, & Marsh, 2015; Konradt, Garbers, Böge, Erdogan, & Bauer, 2015) The result of studies showed that the existence of two schools in the result, which were relationship and non-relationship between the perception of fairness and the decision to accept work offers

The study of Chapman and Webster (2006) was a testament to the school of non-relationship between awareness of fairness and acceptance of job offers Two authors conducted a study on college students in Canada The research results showed that procedural awareness was not related to job choice Authors argued that the observed relationships may have influenced the short-term nature of cooperative positions

A larger-scale study was conducted, regarding the perception of organizational justice and each stage of the job including approving job offers and the post-employment period of - years, post-employment years (Konradt, Garbers, Böge, Erdogan, & Bauer, 2015) In terms of sample size, the authors conducted a study based on a sample of 182 candidates for the apprenticeship program of a major German industrial company Data collection time is years This study was evaluated professionally when focusing on three points in the recruitment process These included procedural justice expectations that employees have before taking part in the process of selecting perceptions of procedural justice, right after taking part in the process and three weeks after joining the selection system but before receiving feedback Findings of the study also show that awareness of fairness also affects job choice decisions Specifically, fair awareness of procedures in the post-inspection period and before feedbacks were positively related to the probability of accepting job offers In addition, candidates who find fairness of post-inspection procedures were also more likely to accept job offers (Konradt, Garbers, Böge, Erdogan, & Bauer, 2015) Remarkably, by measuring the responses of applicants at different stages of the recruitment process, authors found that awareness plays a different role in each stage Specifically, it discovered that post-test awareness of justice was measured immediately after the most relevant test involved in accepting work offers This is reasonably explained that when the applicant waited to receive the company's results, he or she felt uncertain, worried, frustrated, leading to a reduction in the level of perceived fairness (Konradt, Garbers, Böge, Erdogan, & Bauer, 2015)

Summary of Chapter

Chapter Research model 3.1 Analytical framework

According to organizational justice theory by Adam (1965), Workers compare what they put into a job (input) with what they get from that job (output) and then compare their input-output ratio to the input-output ratio of others If their ratio is equal to the ratio of others, it is in a state of fairness If this rate is not equal, it shows that there is an injustice situation When unfair conditions existed, employees would make efforts to correct them (Adam, 1965) Based on the theory of organizational justice, Gilliland (1993) studied the applicant's response The model proposed by this author described that the response of the applicant included awareness and related behavior Under that model, procedural fairness rules will trigger the cognitive and behavioral response of applicants As a result, Gilliland (1993) stated that compared to candidates who find the recruitment process to be fair, those who consider this process unfair were less likely to accept a job offer This author has argued that unfair perception of candidates' disgust or fears of unfair treatment in recruitment is predicting that the organization treats employees badly

In a later study, Lind (2001) developed fairness heuristics theory to explain why fair perception affects the decision to accept jobs This theory affirmed that people had a need to reduce uncertainty and used fairness as a prerequisite to confidently decide whether to join or not to an organization (van den Bos & Lind, 2002) According to Lind's explanation (2001), the organization demonstrates fairness was a great signal that shows a valid conclusion that existed the credibility of attaching personal results to that organization Besides, this author also emphasized that demonstrating high degree of equity was the most important in the early stages of employment relations At that time, the uncertainty about basic social dilemmas was often the highest

employment including accepting job offers and later stages Below is an analytical framework on the relationship between awareness of organizational justice and the acceptance of job offer given in the study of Konradt et al (2015)

Chart 3.1 Conceptual framework of Konradt et al (2015)

Chart 3.2 Conceptual framework

After proposing the analytical framework, the following research hypotheses was developed

3.2 Hypothesis development

Interactional justice reflected the quality of interpersonal relationships in the organization (Folger & Cropanzano, 1998) Its content included two smaller aspects which were interpersonal and informational justice (Lin & Tyler, 1988) For candidates, information regarding personnel procedures and interaction between individuals had a special relationship (Lind, 2001) Bies (1987) argued that interpersonal communication was one of the behaviors of decision makers regarding fairness and unfair treatment among individuals

Furthermore, interpersonal treatment included applicants who needed respect from the representatives of the organization (Konradt, Garbers, Böge, Erdogan, & Bauer, 2015) In another aspect, Frazier et al (2010) reflected that information justice considered the explanations given to individuals about why some decisions were made In the previous study, authors assumed providing information to applicants on how to make choices and how to make employment decisions The information provided in detail and in specificity regarding the decisions will minimize employee negative emotions (Chapman, Uggerslev, Piasentin, & Carroll, 2005) The fact was that candidates cannot collect subjective and objective information of the

Perception of interactional justice (IJ)

Perception of procedural justice (PJ)

Perception of distributive justice (DJ)

Likelihood of Acceptance of Job

organization meant a commitment to not work for long (Harold, Uggerslev, & Kraichy, Recruitment and job choice, 2013)

Within the scope of this study, it is expected that the candidate’s perception of interactive justice positively affects the acceptance of job offers Therefore, the following research hypothesis H1 is developed

Hypothesis H1: Applicant’s perception of interactional justice (IJ) positively effect

on job offer acceptance

Procedural justice refers to the perception of fairness in the decision making of organizations (Lin & Tyler, 1988) When the standard of justice was violated, individuals often assessed negatively about the organization and did not accept the job offer (Sumanth & Cable, 2011) According to Sessa and Taylor (2000), job applicants prefer non-invasive, easy-to-manage selection methods, often with low predictive effect Besides, when employees felt that their views and concerns were absorbed in the decision-making process, they often supported instead of refusing to make decisions or implementing it in a coping way (Brockner, 2006)

In previous research, Bauer et al (2001) pointed out that procedural corporate rules are the basis for candidates to select jobs as a basic understanding of social structure Procedural justice aspects of a job-related test, company representatives provide the opportunity to demonstrate the candidate's skills, the information provided about the test is pushing enough Besides, on the social aspect, procedural justice is also described that the candidates are treated the same, in an open, polite way; The questions are given to candidates who are not prejudiced or too personal and have enough two-way communication during the interview process

acceptance Social situations in which poor performance can be considered to reflect a lack of a characteristic or ability to create a threat to this goal (Dickerson and Kemeny 2004)

In the same case, within the scope of this study, it is expected that the candidate's perception of justice according to the procedure positively affects the acceptance of the job offer Therefore, the following research hypothesis H2 is developed

Hypothesis H2: Applicant’s perception of procedural justice (PJ) positively effect on job offer acceptance

At work, employees generally considered allocating rewards as well as resources to see if a fair distribution was made (Colquitt, Conlon, Wesson, Porter, & Nguyen, 2001) This was consistent with Adam’s equality theory Forsyth (2006) also identified resource allocation as an organization’s response to workers’ needs Through empirical research, Walker et al (2013) found that employees can be in a better starting position when they join the organization if they receive positive signals before entering the country Because having positive expectations in the organization will motivate a new employee to fully participate in their new environment, helping employees better when they start new jobs

Moreover, resources allocated in the enterprise include tangible (financial) and intangible material (non-financial) (Adam, 1965) If the applicant felt fairness in the allocation, it would motivate their appreciation in accepting the job offer (Folger & Cropanzano, 1998) On the opposite side, a previous study found that an unfair distribution of work can lead to candidate resistance to decisions (Cohen-Charash & Spector, 2001) It is worth mentioning that those who receive sudden salary increases or unexpectedly receive commissions and distribute from on-demand training activities can work more and have a sense of equality with the benefits received from that overtime job (Gilliland, 1993)

distribution of income However, it is also reflected through the allocation of candidates' working time to the company's business In addition to salary and working time, the resource factors related to the candidate's work are also evaluated through interviews Even the candidate’s contribution rights are considered Therefore, any difference perceived in the interview about the allocation of resources and what is going on with the company or industry can change the perception of the applicant's distribution justice Typically, if the company does not have benefits, it is the vacation while other businesses are doing It also reflects on the company's distribution justice

Within the scope of this study, it is expected that the candidate's perception of distribution justice positively affects the acceptance of job offers From the above analysis, the following research hypothesis H3 is developed

Hypothesis H3: Applicant’s perception of distributive justice (DJ) positively effect on job offer acceptance

Summary of Chapter

Chapter Methodology and Data Analysis 4.1 Data collection

Within the scope of this study, primary data sources are used for quantitative analysis Data collection methods are conducted through questionnaire survey Regarding the development of research questionnaires, it was developed based on upgrading the questionnaire to produce a final questionnaire The last questionnaire is used for a wide-ranging survey The content of the questionnaire is designed to consist of two parts The first part is an introduction of information of respondents and the purpose of the survey question The rest are questions for research purposes of the thesis The development of a questionnaire for applicants who have received a job offer is based on reference in previous studies These studies are closely related to the research topic Specific questions are presented in the description below

The sampling method is divided into the probability sampling method and the non-probability sampling method Non-random sampling is the sampling method where units in the overall population not have equal capacity to be selected for the study sample Due to limited human and financial resources, it is difficult to interview questionnaires to all those interviewed at private companies in Vietnam This fact affects the sampling in the study Within the scope of this study, it uses a non-random sampling method to select the candidate for the survey Specifically, convenience sampling is selected based on the accessibility of the object

Related to the sample size of the study, the number of subjects per item was recommended by Gorsuch (1983) was five, with a minimum of 100 subjects, regardless of the number of items (Helen & Steve, 2006) Within the scope of this study, it includes 15 items, described in detail as a questionnaire The maximum sample size according to the two formulas above is 100 observations During the online survey, the aggregate data collected were 174 questionnaires, including 168 people working in the private sector Of the 168 people working in the private sector, statistic results show that 138 people received job offers Sample size with 138 observations is consistent with quantitative analysis requirements Therefore, this thesis uses all the data collected for quantitative analysis

In terms of data collection, ethical considerations in the survey are particularly noted in this study Firstly, the survey ensures that the rights of the survey participants are not violated in any way because of the confidentiality of personal information Specifically, the participants of the interview voluntarily Within the scope of the study, the relevant information of the candidate has no relation to the interests of the organizations This ensures no conflict of interest here Secondly, it refers to the confidentiality of information from survey results Aggregate data is used solely for research purposes and is not intended for any financial behavior Finally, it emphasizes that the survey participants voluntarily and fully understand the content of the survey Specifically, survey participants were fully informed about the nature of the study, the purpose of the study and answered all questions before volunteering to complete the questionnaire

4.2 Measurement test

This study uses primary data sources through questionnaire surveys To assess the perception of justice of candidates in the interview process, a number of survey questions were given The survey questions are based on reference in previous studies

Procedural Justice Perception (PJ): It includes entries that reflect perceptions of

example, one item is used as “Have you been able to express your views and feelings during those procedures?” These questions assess the perception of procedural justice based on – point Likert scale (1 = strongly disagree, = Disagree, = Neutral, = Agree, = strongly agree), referenced based on previous research (Harold, Holtz, Griepentrog, Brewer, & Marsh, 2015)

Distributive Justice Perception (DJ): It includes items that reflect the perception

of distributive justice according to the interview process adjusted from Moorman (1991) For example, one item is used as “I think that my level of pay is fair” These questions assess the perception of distributive justice based on – point Likert scale (1 = strongly disagree, = Disagree, = Neutral, = Agree, = strongly agree)

Interactional Justice Perception (IJ): This indicator is used to describe the

perception of interactive justice of candidates The items used for evaluation are based on references from Colquitt et al (2001) For example, one item is used as “Has (he/she) treated you in a polite manner?” These questions assess the perception of interactional justice based on – point Likert scale (1 = strongly disagree, = Disagree, = Neutral, = Agree, = strongly agree)

Job Offer Acceptance (JOA): To describe a candidate’s decision to accept a job

offer It is summarized from answering the question "Do you accept the job offer when you receive an invitation?” It is evaluated on a scale of levels (1 = Refuse immediately, = Reject after considering, = Accept after consideration, = Accept immediately) This method differs from the use of dummy variables, Yes or No, in accepting recommendations in previous studies (Konradt, Garbers, Böge, Erdogan, & Bauer, 2015; Harold, Holtz, Griepentrog, Brewer, & Marsh, 2015)

Control variable: In this study, it also uses the control variable that is the gender of

For quantitative analysis, it is implemented by analytical techniques, consisting Cronbach’s Alpha Test, Exploratory Factor Analysis (EFA), Pearson Correlation Test and Regression analysis These techniques are supported by SPSS software version 20.0

4.3 Hypothesis testing

4.3.1 Descriptive statistics about the candidates participating in the survey

In the first part of the questionnaire, some general information of interviewed candidates is compiled including gender, age, field of work and work experience Descriptive statistics on 138 candidates participated in the survey, in terms of age, the results showed that there were 60 male candidates, accounting for 43.5% The number of respondents who have female gender accounts for 56.5%

Chart 4.1 Age group of candidates

(Source: Calculation from survey data) Regarding the age group by Chart 4.1, applicants under 30 years old accounted for the highest rate of 67.26%, followed by the group from 30 to 45 years old with 31.55% Two groups of applicants, ranging from 45 years to 60 years old and over 60 years old, equal to 0.6%

Under 30 years old, 67.26%

From 30 - 45 years old,

31.55%

From 45 - 60 years old,

0.60%

The field of work of the candidates is very diverse These people can work in the banking and financial sector or non-financial professions such as education, information technology, computers, software, etc

Regarding the applicant's experience (Chart 4.2), the survey results show that 21.74% of the interviewees showed no experience Candidates with working time from to years, accounting for the highest rate with 50.72% The other group are applicants with more than years of experience, accounting for 27.54%

Chart 4.2 Experience of interviewed candidates

(Source: Calculation from survey data) 4.3.2 Cronbach’s Alpha Test

In the scale test of reliability, Cronbach’s Alpha Test is used Cronbach’s Alpha were divided into six evaluation groups, representing each level Details of each group included to 0.50 (Unaceptable); 0.5 to 0.60 (Poor); 0.6 to 0.6 (Questionable); 0.7 to 0.80 (Acceptable); 0.8 to 0.9 (Good) and, 0.9 to 1.00 (Excellent) (Landis & Koch, 1977) According to Nunnally and Burnstein (1994), variables which had a Corrected Item-Total Correlation less than 0.4 were excluded

21.74%

50.72% 27.54%

Fresh labor

from the model Within the scope of this study, Cronbach’s Alpha is greater than 0.7, implying that the variable is reliability for use in the model Besides, Corrected Item-Total Correlation if less than 0.4 is considered to remove from the model The results of scale reliability testing of the Procedural Justice Perception (PJ) with the support of SPSS software are shown below by Table 4.1

The table 4.1 above confidence analysis results show that Cronbach’s Alpha is 0.865 greater than 0.6, implying that the questionnaire of Procedural Justice Perception (PJ) is reliable Besides, Corrected Item-Total Correlation of all items is greater than 0.4, so no items are removed

Table 4.2 Cronbach’s Alpha Test of Distributive Justice Perception scale

The table 4.2 above confidence analysis results show that Cronbach’s Alpha is 0.799 greater than 0.6, implying that the questionnaire of Distributive Justice

Perception (DJ) is reliable Besides, Corrected Item-Total Correlation of all items is greater than 0.4, so no items are removed

Table 4.3 Cronbach’s Alpha Test of Interactional Justice Perception scale

After the reliability analysis process, all items of awareness groups of organizational justice including PJ, DJ and IJ are included in the next process which is Exploratory Factor Analysis (EFA)

4.3.3 Exploratory Factor Analysis (EFA)

The result of Exploratory Factor Analysis (EFA) with the support of SPSS Version 20.0 software is shown in the following table 4.4

Table 4.4 KMO and Bartlett's Test

Table 4.5 Total Variance Explained

Table 4.6 Rotated Component Matrix

4.3.4 Pearson Correlation Test

Pearson's correlation coefficient test is used for the test of the linear relationship between dependent and independent variables The basic principle, Pearson's correlation will find a straight line that best fits the linear relationship of the two variables Therefore, Pearson correlation analysis is sometimes called simple regression analysis (but different in terms of meaning)

of this variable increases, it will increase the value of the other variable and vice versa r < indicates a negative correlation between the two variables, meaning that if the value of this variable increases, it will decrease the value of the other variable and vice versa

The higher the absolute value of r, the greater the degree of correlation between the two variables or the more suitable the linear relationship between the two variables The r value of +1 or -1 indicates that the data is completely consistent with the linear model

Table 4.7 below is Pearson Correlation Test supported by SPSS software version 20.0

Table 4.7 Pearson Correlation Test

correlation with JOA Besides that, with the 5% significance level, the IJ variable have a linear correlation with JOA

In addition, Pearson’s correlation analysis shows that the linear relationship between independent variables is IJ, DJ and PJ It is necessary to consider this linear correlation in relation to the multicollinearity phenomenon in the regression analysis model According to the previous argument, when the correlation coefficient is 0.9, multicollinear defects in the model are considered (Dohoo, Ducrot, Fourichon, Donald, & Hurnik, 1997) The result of Pearson correlation analysis between reflected variables on organizational justice awareness is less than 0.9 Therefore, multicollinear defects are not very important Howerver, attention still paid to multicollinearity in regression analysis

4.3.5 Regression analysis

To study the relationship between organizational awareness and the decision to accept the job offer of candidates in the private sector It has performed multivariate regression analysis with the proposed model below:

In this research model, JOA is the dependent variable reflecting the candidate's job acceptance level The three variables reflect the candidate’s awareness of fairness including IJ, DJ and PJ The result of multivariate regression analysis is shown in the table below

Table 4.8 above is used to evaluate the suitability of multivariate regression models The regression analysis results show that Adjusted R Square is 0.234, meaning that 23.4% of the variation in job acceptance level is explained by independent variables

Which independent variables are significant in the model are discussed in the following content

Table 4.9 ANOVA Test

The ANOVA Test is used to test hypotheses about the overall fit of the model In the ANOVA analysis table above shows that sig is 0.000 Hence, the conclusion is that the regression model is suitable for the usable data set

Table 4.10 below is the results of multivariate regression analysis of the relationship between awareness of justice and the decision to accept private sector work in Vietnam

The above analysis results show that, PJ (0.3, sig = 0.002<0.01) is noticed Thus, with a 1% significance level, PJ variable is statistically significant in the research model, meaning that the perception of justice according to the process has a positive relationship with the level of accepting work offer Besides, DJ (0.349, sig = 0.000 < 0.01) is shown in the result, confirming DJ variable is statistically significant in the research model It implies that the perception of distributed justice is related to the degree of acceptance of the job offer of private sector candidates in Vietnam Besides, the IJ variable is not statistically significant at the 5% significance level It reflects that there is no relationship between the perception of interactional justice and the decision to approve the candidate's job offer

Based on the regression coefficients of the variables, the degree of acceptance of job offers is reflected by the following equation:

To test multicollinear defects in the model, VIF values are used According to Lin (2008), the VIF value less than 10 indicates that the model had no multicollinearity defects Although there are no specific rules, researchers often accept that VIF greater than 10 may harm the model (Wonsuk, et al., 2014) In the above regression analysis model, VIF of all variables is less than 10, implying that multicollinear defects not affect the results of the model

Table 4.11 Tests of Interaction effects between Gender and PJ

Table 4.12 Tests of Interaction effects between Gender and DJ

Table 4.13 Tests of Interaction effects between EXP and PJ

Table 4.14 Tests of Interaction effects between EXP and DJ

The above analysis results show that Sig of variable EXP* DJ is 0.473, greater than 0.05 This implies that Interaction effects are not available This result reflects that the impact of the independent variable DJ on the dependent variable JOA has no difference between the year of working experience groups It means that the influence of awareness of distributive justice on the decision to accept or reject job offers of three groups of the year of working experience mentioned above is quite similar

4.4 Analysis result summary

Hypothesis H1: Applicant’s perception of interactional justice (IJ) positively effect

on job offer acceptance

The results of regression analysis show that the IJ variable is not statistically significant in the model Therefore, research hypothesis H1 is rejected

Hypothesis H2: Applicant’s perception of procedural justice (PJ) positively effect on job offer acceptance

The results of regression analysis show that the PJ variable is statistically significant in the model Beside that the regression coefficient of the PJ variable is positive Thus, research hypothesis H2 is accepted

Hypothesis H3: Applicant’s perception of distributive justice (DJ) positively effect

on job offer acceptance

The results of regression analysis show that the DJ variable is statistically significant in the model In addition, the regression coefficient of the DJ variable is positive Thus, research hypothesis H3 is accepted

In addition, there is an interesting finding which is there are no statistically significant differences in the effect of the job seeker’s awareness on procedural justice and distributive justice to decide whether accept job offer or not by gender (male or female group) and the year of working experience (less one year of working experience, having 1-5 years of working experience, having more than years of working experience) In another word, the influence of the job seeker’s perception in procedural justice and distributive justice on job offer acceptance between research subject groups is similar

Summary of Chapter

and job offer acceptance From the results of this study, the thesis concludes and applies in the final chapter

Chapter Findings, Implications and Discussion 5.1 Findings and discussion

Research on the relationship between interviewers’ awareness and the decision of accepting the candidate’s job offer is made on the secondary data from 138 candidates These candidates are in the private sector in Vietnam and show gender differences, diversity in age, work experience and careers In general, the results of quantitative analysis show that the perception of equity during the recruitment is related to the approval of the job offer This result is consistent with previous studies (Walsh, Tuller, Barnes‐Farrell, & Matthews, 2010; Harold, Holtz, Griepentrog, Brewer, & Marsh, 2015; Konradt, Garbers, Böge, Erdogan, & Bauer, 2015) Specifically, Konradt et al (2015) implied a study based on a sample of 182 candidates for the apprenticeship program of a major German industrial company and confirmed that awareness of fairness also affects job choice decisions Walsh et al (2010) studied at a large multinational company and found out that candidates who accepted job offers more preferred in awareness of job-related fairness and information sharing during the hiring process

found that an unfair distribution of work can lead to employee resistance to decisions (Cohen-Charash & Spector, 2001)

On the contrary, the thesis found no relationship between the perception of interactional justice and job offer acceptance In previous research by Hausknecht et al (2004), when these authors argue that justice interacts independently with the candidate’s job offer acceptance decision Recruitment is a sequential process in three stages The first stage is pre-employment or pre-inspection, candidates learn about work and organization, prepare documents to apply for This may also be the first time the candidate interacts with the company's representative The second stage is an evaluation to consider the suitability of the candidate and job requirements The tools used are inspections or interviews The final stage is the announcement of the results Two cases are proposed as a job offer or a denial Each candidate's perception of the recruitment process, organizational attitude and recruitment results are different (Gilliland, 1993) This study asserted the perception of justice according to the candidate's interaction after they had participated in the recruitment process

To explain their research findings, some authors have used some of the previous theories organizational justice theory of Adam (1965), fairness heuristics theory of Lind (2001) However, one consideration explains why the candidate appreciates fairness as Maslow’s hierarchy of needs Accordingly, human needs are divided into two groups, namely basic needs and meta needs The basic need relates to human physical factors such as the desire to have enough food, water and rest Therefore, distributive justice is seen as a priority in ensuring the living needs of candidates when participating in the recruitment process Salary, income, working time is a top priority issue The perception of distributive fairness has the greatest impact on the decision to accept or reject the job offer because DJ is a main direct influence on their basic needs

2017 is 213,005.79 US$ is in the lower-middle income group Therefore, the major labor force’s need is also similar to the major human-being’s need in general that is the requirement of fulfilling the basic needs which are mostly depended on salary or wage That reason explains for the research result which is the concern about the Procedural justice and Distributive justice plays an important role in the process of making decision about job offer in Vietnam context whereas the Interactional justice factor is not something worth to worrying about when it comes to the consideration of accepting job offer Comparing with the high-income countries such as United State, United Kingdom or Australia where the justice theories were developed or examined, these theories and research result is reasonable as when the basic needs are satisfied, the higher needs such as being respected or self-esteem are concerned However in the context in Vietnam, the result that applicant’s awareness in interaction justice does not effect on the last decision is appropriate

5.2 Implications

This study is an important input for businesses to implement a number of solutions to enhance the approval of job applicants The expression of fairness in the recruitment is an important factor for the candidate to decide to accept the job offer Understanding this issue helps businesses treat all applicants fairly to enhance their ability to join their organizations Even so, fair treatment will make sense for all candidates, but the degree of influence of job choice may vary between candidates (Harold, Holtz, Griepentrog, Brewer, & Marsh, 2015) Based on the research results, some recommendations are given below

For candidates to clearly identify, an ideal option is when posting recruitment information in the first stage, the company should give the salary, working time, the responsibility of the candidate if successful What will appeal to bright candidates who appreciate the outspokenness of the company in building a resource allocation regime

Along with creating beautiful impressions with a professional recruitment process, employers also need to offer good remuneration and welfare policies to attract talented candidates Competitive salaries should be given, in line with industry trends in the market as well as candidates' aspirations and capabilities In addition to the salary of welfare policies is also something that candidates are very interested in Therefore, the company should skillfully utilize the advantages and strengths of its policies to attract good candidates by more competitive methods than rival companies For example, the company's salary may not be the highest, but in return, your company has a high level of responsibility, bonus benefits, a regular salary increase policy, good health care and insurance In general, the company should explain clearly so that the candidates can see the advantages to among the many "offers" they decide to "join" the company

For recruiting high-level personnel to career opportunities, self-responsibility and benefits have been gathered in a long way of career Experienced personnel can be treated with more protection in the hiring process than less knowledgeable competitors Candidates with high status can make special judgments about themselves in tests because they believe their value has been proven before As a result, senior candidates were often sensitive and susceptible to being unable to meet fairness and standards in employment (Sumanth & Cable, 2011) This issue required that organizations to build a separate process between recruiting regular staff and management personnel These policies needed to meet the standards of justice maintenance according to the process and the allocation of justice as discussed above

The analytical result on the interactive aspect shown that one of the factors that reduced the acceptability of job offers is the inappropriate assessment from the organization From this result, it was recommended that organizations should provide a suitable assessment for candidates to feel fairness in the recruitment process It was worth mentioning that organizations should make sure that candidates are treated with respect, not offer inappropriate questions and be provided with many opportunities to ask questions throughout the hiring process (Harold, Holtz, Griepentrog, Brewer, & Marsh, 2015)

In addition to the above methods, in order to enhance the decision to accept work offers, some of the following measures are given:

Job description is clear, easy to understand: If the employer posts recruitment information with full of confusing and generic tasks Job seekers must try to find out what the role or condition is needed to match the job, they can find another job that is simpler than the other

employment information in the early stages This will attract bright candidates Those are people who appreciate the transparency of the company

Transparent working environment: Attracting talented candidates also shows clearly and transparently with the work content This is not only reflected in setting a competitive salary, but also a multi-functional working environment, effective management, professional development and recognition when completing a good job

5.3 Limitations of research and future research orientation

It has attempted to conduct a complete survey of the relationship between awareness of fairness and acceptance of private sector job offers in Vietnam Research has solved the research gap by adding aspects of organizational justice, including distributive justice, procedural justice and interactional justice However, because of limited time and resource, the study still has some limitations on collecting more detail information about industry classification, proposed salary, current applicant’s income

The problem of the sampling area of the study is worth considering Within the scope of this study, the questionnaire was mainly distributed via online channel as Facebook which is contain diversity of fields and the geographical location of companies Although It could not collect absolutely these kind of above information, it would be reluctant to come to the conclusion that this result represented the private sector in Vietnam Therefore, it should be addressed in future research

Notably, this study is behavioral research, so it still has some information limitations when a person cannot remember all aspects of an organization when they first join This is the foundation for conducting other studies in the future Some of these factors will be added to increase the attractiveness of the study A topic that is expected to be implemented in the future is “Study the relationship between organizational fairness awareness and the decision to approve work offers: A case study comparing financial and non-financial enterprises”

Summary of Chapter

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