1. Trang chủ
  2. » Luận Văn - Báo Cáo

Factors influencing organizational commitment and intention to stay of leaders in orient commercial joint stock bank ocb

56 11 0
Tài liệu được quét OCR, nội dung có thể không chính xác

Đang tải... (xem toàn văn)

Tài liệu hạn chế xem trước, để xem đầy đủ mời bạn chọn Tải xuống

THÔNG TIN TÀI LIỆU

Thông tin cơ bản

Định dạng
Số trang 56
Dung lượng 1,14 MB

Nội dung

Trang 1

a @OUM OPEN UNIVERSITY MALAYSIA OC EFA RESEARCH PROJECT BMBR5103

Factors influencing Organizational

Commitment and Intention to Stay of Leaders

in Orient Commercial Joint Stock Bank (OCB) HUTECH LIBRARY A~ 6793 Name in full: LE VAN PHAN Student ID: 244 9529 Program: MBA Intake: September 2012

Subject: BUSINESS RESEARCH

Advisor: DR KHAI NGUYEN

Trang 2

ACKNOWLEDGEMENTS “2 Grab pal Mfr vecvaln nw od

I would like to express my sincere gratitude to my advisor Dr Khai Nguyen for his fruitful guidance, useful materials and especially his great lecturing sessions as

foundation for my research, for his motivation, enthusiasm, and profound knowledge His

guidance helped me to deeply understand the powerful knowledge on the business research, especially the approach to conduct a business research effectively and efficrently

Besides my advisor, I would like to thank Mr Nguyen Dinh Tung, CEO of OCB for

sharing with me some great insights into OCB’s business situation and for his very

productive feedback during my doing this research I would ltke to thank my subordinates

Tri Tran, Khanh Neuyen for the stimulating discussions, questionnaires and useful

reference materials Last but not the least, | would like to thank my family my parents Dam Le and Thuyen Pham, for giving birth to me at the first place and supporting me spiritually throughout mv life

Phan Le Van

Trang 3

banking industry This research proposal is the first one to conduct on Organizational

Commitment and Intention to Stay of leaders of OCB In the labor market, competitors are always attracting key personnel who are considered to help create competitive

advantages With the key focus on the leaders of OCB, this research explores the current situation of Organizational Commitment of its leaders and figures out the antecedent factors, which Organizational Commitment Finally, managerial implications are withdrawn for improving the level of Organizational Commitment and level of retention of leaders in OCB

This research proposal comprises of 5 chapters The first chapter presents the research

background, problem statements, research objectives, scope of study and research

structure The second chapter introduces about OCB, about its history and development as the background for this research The third chapter focuses on the related literature review, research model and its hypotheses Next, the Chapter 4 introduces about the research methodology to be conducted in the course of research and the final chapter presents the expected research results, managerial implications, limitations and recommendations for further studies

Trang 4

TABLE OF CONTENT Page ACKNOWLEDGEMENTTS n2 HH2 1x ke 03 L0 04 I.))00249)0609)100110101157757 05 IDkYN9)V.3202.1111ẺẼẺ8Ẻe8 07 I309)32600).42 10 5 08 II389)0.33u209)/95 110010155 09 CHAPTER 1: INTRODUCTIƠN Ăn nhe hờ 11 1,1Background -. - -c s snnnnH ng kg tư kh cờ 11 1.2 The Problem statement .- cà nành sư, 13 1.3 Research obj€CfV€S HH nh nh nen 14 1.4 Scope of the research con nọ nh kh chư 15 1.5 ThesIs struCfur€ -. cọ SH» nen nh nh che hưến 15 1.6 Chapter conclusion - - nàn Hình nh sư, 16

CHAPTER 2: INTRODUCTION TO OCB - cà 17 2.1 OCB at a gÌ]anCe cu HH Hy n HH Hy nh kh nhà 17

2.2 Vision — Mission- Core Value c cà 18

2.3 Network- Staff & Strategic Partner ccceeeee eee cence eens 19

2.4 Milestone 0 cece cece cece ng TH nh nen nh nen nhe 19 2.5 AchieVemenfs ch nhe nh nhà ch 21

Trang 5

CHAPTER 3: LITERATUE REVIEW nhe eeeee 23 3.1 Chapter introduction and Maslow’s hierarchy of needs 25 3.2 Intention fO SEAY ch nen nh kh kh se 26 3.3 Organizational Commitment and antecedent factorS 27 3.4 Research model . -. cà cà nh nh nh, 28 3.5 Chapter concÌuSion cà nàn nen nh ty he 35

CHAPTER 4: RESEARCH DESIGN - -Ặ c2 se 38

4.1 Type Oofres€arCH cu nh Hà khe nh Hh nh nh nh 38 4.2 Research procedure cà sàn n* nh nhe nhìn 38

4.3 Measurement scales - .- sàn nành Hà nh ren 39 4.4 Method of data collection - chen ee een eee ens 40

4.5 Method of anaÌySis nàn HH nh nh nh the 41 4.5.1 Assessment of measurement scale - 42 4.5.2 Multiple regression - sành nhe xen 44

CHAPTER 5: EXPECTED RESEARCH RESULTS - 45

5.1 Expected reSuÌfS - cu n nh HH kh như nh kh 45 5.2 Managerial Implicatlons - cành nhe se 46 5.3 Limitations & further rescarch recommendations - 47

REFERENCES -.-QQSQẶ sen nh nh tre 48 APPENDICES QC cà nàn nh nh nh ni nhìn nh hề 52

Trang 6

LIST OF TABLES

Table name Page

(Table 2.1 OCB at a glance 17

[Fable 4.1 Cronbach's alpha reliability coefficient 38 [Table 5.1 Expected Results of the Proposed Hypothesis 45

Trang 7

LIST OF FIGURES

Name of figures Page

Figure 1 | Research Structure of the Research Proposal 15 - Overview

Figure 3.1 Maslow’s hierarchy of need 25

Figure 4.1 Research model 39

Figure 4.2 Research Procedure 40

Trang 8

LIST OF APPENDICES Appendix name Page APPENDIX 1: QUESTIONAIRE 52 APPENDIX 2: CODING 57

[APPEAPPENDIX 3: SUMMARY OF SCALES OF 7 58 (CONSTRUCTS IN THE MODEL

Trang 9

CHAPTER I: INTRODUCTION

1.1

This chapter presents an overview of the research, including background of the study, the problem statement, research objectives, and scope of the research, significance of the research as well as the structure of the thesis

Background of the research

One of the most important objectives of any business organization is to creating high productivity so as to achieve the highest possible business performance in pursuit of sustainable development To make such objectives become true, business organizations have to outline so many strategies and the most important strategy is the strategy on capitalizing its strength of human resources to make the difference and create competitive

advantages The focus here is on people One challenge here is how to determine and

develop the best people for the job? The answer is simply to find the good leaders Leaders are not just the top people in the organization, they exist on all levels

The attraction and retention of good leaders in Vietnam has been put top priorities by the top Management of in commercial banks In past 10 years, the system of financial

institutions and commercial banks in Vietnam has been developed with the increasing number of credit institutions and wide diversification of banking services According

to the recent report by the SBV, the whole banking system has reached at number of 52

local commercial banks, 51 foreign bank branches and 31 non-bank credit

institutions Regarded as the "blood" of the Vietnamese economy, the banking industry

Trang 10

has remarkably grown and made significant contributions to the economic development of Vietnam

Orient Joint Stock Commercial Bank ( OCB) was established under the Licence of

operation no 0061/NH-GP dated 13/04/1996 issued by the State Bank of Vietnam OCB

has its Head office in 45 Le Duan Boulevard, District 1, Hochiminh City, Vietnam With

17 years of operations, OCB has become one of joint stock commercial banks with high growth rate in recent years With its big ambition to become the Top 15 commercial

banks in Vietnam by 2015, OCB has done its strategic management with the strong

support from its strategic partner- BNP Paris Bas- one of the 6 leading banks in the world to strengthen its branding and position in the Vietnamese Banking Industry To fulfill

these challenging objectives, OCB has put top priorities on attracting and developing

talented leaders to help OCB competitively penetrate in depth into the market and widen its market share Since 2012, OCB has recruited many leaders for key positions in the

Bank However, some of them have left the Banks to join other competitors for a short

period of time The retention rate has been declined over the past year from 91% in September 2012 to only 87% in September 2013 It is obvious that one big challenge for OCB is how to keep these leaders and make them have strong organizational commitment and have intention to stay together with the development of OCB

1.2 The problem statement

The Board of Management of OCB is strongly aware of the crucial role of talented leaders Various human resources strategies have been focused on attracting and retaining leaders as their key employees and invaluable assets Various measures have been applied such as increasing salary and allowance, conducting intensive

Trang 11

traming courses, offering more opportunities for career promotion and incentive abroad trips for outstanding leaders However, the high turnover rate remains a big challenge to address with for OCB Management There are various questions to be

raised: Why is turnover still high after the Bank’ efforts? What are the leaders’

demands? What are possible factors influencing the leader’s organization commitment?

Is there relationship between organizational commitment and leader retention?

A great deal of literature on human resource management has provided some general

hints in addressing with this managerial challenge of employee retention (e.g Maslow,

1943, 1954; Bame, 1993; Becker & Gerhart, 1996; Hom & Griffieth, 1995) Nevertheless, the right solution under the current social-economic context, organization leaders need to understand in more details as higher salary, promotion opportunities, and related other factors as motivation, recognition, working environment, training and leadership What are the affected important factors?

To satisfactorily answer these tough questions, the Management truly needs to have a

deep insight into their leaders’ thinking and motivation On the background of sound

understanding of the issue, the Management can outline suitable HR strategies in attracting and keeping them loyal and committed to purse corporate development objectives in both short run and long run

In theory, there are many reasons (or factors) that influence leaders Many previous studies have been focused on factors of employee satisfaction or retention in general However, to my best knowledge, I ascertain that there is no study that researches on key factors affecting OCB’s leaders to have organization commitment and have intention to stay As one leader in OCB, I find it very significant to have an empirical research to

determine key factors that have influence on OCB leaders to have organizational

Trang 12

commitment and intention to stay with OCB This is my first research on this issue with

a full focus on OCB’s case

1.3 Research objective

In this study, we will review relevant theories and previous researches on factors that have impact on the intention to stay of OCB leaders The study will investigate key factors influencing the organizational commitment and intention to stay of OCB leaders

and measure how deep these factors have their impact on organizational commitment

and intention to stay of OCB leaders

With the clear objectives in mind, this research is conducted with below aims:

° To determine quantitatively antecedent factors and their relative contributions to

the organizational commitment and intention to stay of OCB leaders

° To estimate the impact of organizational commitment on the retention (intention to stay) of OCB leaders in the field

1.4 Scope of the research

The purpose of this research is to investigate and determine the factors affecting

organizational commitment and intention to stay of leaders in OCB The research will

exam the possible influencing factors and identify the key factors with the high impact

on the organizational commitment and intention to stay of OCB leaders The result of

this research can be applied directly in OCB in outlining and selecting the best possible HR strategies in the course of its development

° Given the limited resources and time, the empirical data for the research is to

Trang 13

be collected from OCB

° Examinees on this study are senior-officers, supervisors and managers, directors of OCB

° Only work — related factors will be investigated in this study As such, other possible factors (e.g social or cultural factor) are not in the scope of this study

1.5 Significances of the research

Like many commercial banks in Vietnam, OCB has done its strategic management to have stronger positions in the banking industry and put enormous efforts to make greater business performance so as to create higher value for its shareholders, employees and the Vietnamese community as a whole To fulfill its vision and mission, OCB needs to have in place the appropriate HR strategies, especially strategies on its most important

asset — leaders as its invaluable intangible asset The right HR strategy must lead to the

importance issue: How to make organizational commitment and intention to stay of OCB leaders

It is obvious that no best solutions can be created without the true understanding of what really matters This research is greatly significant in the way that it helps the

Management to determine the key factors having strong impact on leaders’

organizational commitment and intention to stay With the deep understanding of its leader’s inside motivation, OCB’s Management can develop HR strategies on developing

and keeping their leaders to have strong organizational commitment and intention to stay with OCB in the long run

1.6 Structure of the thesis

Trang 14

This research proposal is organized as follows:

° Chapter I presents the research background, problem statements, research objectives, scope of study and research structure

° Chapter 2 introduces about OCB, about its history and development

o Chapter 3 focuses on the related literature review, research model and its hypotheses

° Chapter 4 introduces about the research methodology to be conducted in the course of research

° Chapter 5 presents t!-: pected research results, managerial implications, limitations and recommendations for further studies

Figure: 1.1 Research Structure of the Research Proposal — Overview

Chapter 1: Chapter 2: Chapter 3: Chapter 4: hi INTRODUCTION Pave Background tơ titerature Review Research Design Conclusion

In: 2 Ce 4.1 Type of LÊN 1.2The problem 2.1 OCBata hierarchy of needs Do ey mua

glance

statement 3.2 Retention CƯ cole) 5,2 Managerial

1.3 Research ra 2.2.Vision~ Mission ~ Core 3.3 Organizational teste ‡rplications

A

objectives rae Commitment 4.3 Measurement 5.3 timitations &

1.4 Scope of the VI to L4 3.4 Antecedents eos recomrmmendations

DỤ T3 Networ "- Peer iy

1.5 Significance of eT Sd model data collection

the research 2.5 Achievements EM marty 4.5 Method of

Trang 15

CHAPTER 2: BACKGROUND ON ORIENT JOINT STOCK COMMERCIAL BANK ( OCB) 2.1 OCB at a glance English name in full ORIENT COMMERCIAL JOINT STOCK BANK Name in abbreviation: OCB Head office: 45 Le Duan Boulevard, District 1, Hochiminh City, Vietnam

Licence and Business registration Licence of operation no 0061/NH-GP dated 13/04/1996

issued by the State Bank of Vietnam

Certificate of business registration no 059700 issued by

Trang 16

Table 2.1 OCB at a glance Shareholder: At present shareholder structure and equity ratio are as follows: No Shareholder Ratio 1 State-owned corporation 9,2% 2 Foreign institution 12,52% 3 Individual 49,77%

4 Trade union and other Shareholders 28,51%

2.2 Vision- Mission- Core Value OCB’s vision

Committed to building OCB into a universal bank as retail banking at its core business, to be in

the top ten joint stock banks by 2015 and a financial group by 2020

OCB’s mission

° To provide the best service to customers and partners with the principle of equality, mutual

benefit and development

° To increase share value for shareholders

° To harmoniously provide benefits to customers, shareholders, employees, and communities

Trang 17

Core value: ° Clients first ° Creativity ° Ambition Professionalism 2.3 Network — Staff- Strategic Partner Network:

° Up to December 2013, network of OCB presents in 20 provinces and cities throughout the country with 95 branches and Transaction Offices

Staff:

By the end of March 2011, total head count of OCB is 1,661 people Strategic partner: BNP Paribas

° BNP Paribas is a European leader in global banking and financial services and one of the six strongest banks in the world (Rated AA by Standard & Poor's i.e 3rd rating on a scale of

22) Present across Europe through all its business lines, the Group has four domestic retail

banking markets in France, Italy, Belgium and Luxembourg It has one of the largest international networks with operations in 83 countries and 205,300 employees, including

162,200 in Europe 15,100 in North America and 11,000 in Asia

2.4 Milestones

Trang 18

01/10/2010 : OCB joins hands with Liberty

24/05/2010 : OCB completed the data conversion and put T24 Core Banking System in use in the whole bank

10/03/2010 : Cooperation signing ceremony between OCB — Diebold 29/12/2009 : Increased charter capital to VND 2.000 billions

13/11/2009 : Within the framework of Vietnam — France Entrepreneur forum which was organized by the France Embassy in cooperation with VCCI in Hanoi, Orient

Commercial Bank (OCB) has signed memorandum of understanding in regard to the increase of capital contribution of BNP Paribas (France) in OCB to 20% in the appropriate time in the year 2010 and following the approval of the State Bank of Vietnam and the Government

16/09/2009 : OCB and Ernst & Young Vietnam has officially signed a contract to provide support services to perfect the system of internal credit ratings

26/08/2009 : Orient Commercial Bank signed agreement with BNP Paribas to increase OCB’s capital contribution from 10% to 15%

05/02/2009 : OCB started the implementation of Core Banking System Project 30/12/2008 : Increased charter capital to VND 1.474.477 millions

19/12/2008 : Signing ceremony for the implementation of core banking system between

OCB and Temenos

28/02/2008 : Strategic alliance between Orient Commercial Bank - BNP Paribas was

signed in Paris, France

29/12/2006 : Increased charter capital to VND 567 billions 20/12/2005 : Increased charter capital to VND 300 billions 06/06/2005 : Launched Lucky Oricombank Card

Participated in express remittance system of Western Union

Trang 19

° Participated in Society for Worldwide Interbank Financial Telecommunication (SWIFT) 10/06/1996 : Orient Commercial Joint Stock Bank (OCB) was granted license of

operation in 13/04/1996 with initial charter capital of VND 70 million by the State Bank of Vietnam HUTECH LIBRARY 2.5 Achievements 4- 6 3 g 2

° OCB receive the award “Prestige Security Trademark — 2010”

Emulation Flag for “Best Performance in Banking 2009”, awarded by the State Bank of Vietnam

° Certificate for “Model of Strong and Transparent union Party 2009” granted by the Party Committee of District 1

Representative Entrepreneur of Commerce and Service Cup granted by Industry and

Trade Journal - Ministry of Industry and Trade

° Enterprise of Social Responsibility Cup by Commerce Journal ~ Ministry of Industry and Trade

° OCB receive the award “Prestige Security Trademark — 2009” and “The Typical Public Security Business”

Certificate of “Excellent Local union” for achievements in labor emulation movement granted by the Labor union of Ho Chi Minh City

° Certificate of excellent international settlement in 2008 awarded by Citi Group

° OCB achieved golden star award granted by the Vietnam Young Entrepreneur Association

° OCB achieved golden star award granted by the Southern Young Entrepreneur Association

° In the top 500 largest enterprises voted by reader of Vietnamnet

Trang 20

One of the 10 commercial banks of Vietnam in 2008 for satisfactory service provider voted by consumers through survey conducted by consumers & business research center Leading flag holder presented by the State Bank for successful completion of task in

2007

Golden Global Prize in 2007 presented by Vietnam Small and Medium Enterprises Association

Certificate of excellent international settlement in 2007 awarded by Citi & HSBC Group Golden cup for Vietnam Trademark awarded by Union of Science and Technology of Vietnam

Golden trophy for community development by Vietnam general Trade Union and Vietnam SME association

Certificate for OCB as well-known Vietnam brand in 2006 by ACNielSen Vietnam and Chamber of Commerce and Industry of Vietnam

Traditional flag holder of Hochiminh City People Committee and banking association on the occasion of the 10" year anniversary of the bank

Certificate of merit from Chairman of Hochiminh City People Committee for the bank in

successful completion of the task in 2005, for 04 branches and 06 individuals that successfully complete its task in 2005

Certificate of merit from Prime Minister to the bank staff for excellence completion of the tasks from 2003 to 2005

Certificate of merit from Governor of the State Bank of Vietnam for successful completion of the task in 2004

Party organization “Integrity — Solidarity - Excellence” from 1996 up to present

Trang 21

CHAPTER 3: LITERATURE REVIEW

This chapter presents the theoretical framework of the research chapter introduction with

the focus on Maslow’s hierarchy of needs, Retention ( Intention to Stay), Organizational

Commitment and its antecedents, research model as well as the chapter conclusion

3.1 Chapter introduction

There is a great deal of previous studies on the influencing factors of organizational commitment and intention to stay of employees in the world and in Vietnam The

literature indicated that some important influencing factors of organizational commitment and employee retention are remuneration and rewards, training and

development, promotion opportunities, leadership & support, and working

environment

The research model of organizational commitment and intention to stay will be

proposed for this specific study, which provides a sound basis for the development of research hypotheses Over the years, many studies relating to personnel in terms

of human needs, job satisfaction, organizational commitment and retention have

been conducted In this literature review, Maslow hierarchy of needs, retention,

organizational commitment and its antecedent factors will be presented On that

foundation, the model of organizational commitment and intention to stay of leaders in

OCB will be proposed for this specific study This proposed research model in turn

provides a basis for the development of hypotheses

One of the most well-known theories of individual motivation is Maslow’s theory of

Trang 22

hierarchy of needs (Table 3.1) According to Maslow, it is advocated there lays a hierarchy of needs within every human being These needs are:

Physiological needs: related to essential factors to survival, such as food, water, and shelter With regards to employees in organization, these needs are mainly presented as monthly income ( salary and bonus)

Safety needs: refers to security, safety in workplace and life At this level, the

individual tends to look for the safe environment and to be free from external dangers At work, these needs are presented via hygiene factors, social and medical insurance

policies and HR policies to ensure employment such as labor contracts

Social needs: are those associated to people relationships, being a team member, being a part of the organization, being liked In organizations, these needs are related to relationship with coworkers, with subordinates and with leaders

Esteem: refers to the drives for feelings of self-worth and individual importance, needs

of respect in workplace and in daily life Organizations often pay incentives through rewards, recognition, bonus, promotions etc

Self-actualization: is at the highest level of the hierarchy, the

motivator is a sense of fulfillment that allows individuals to contribute, maximize

their own personal development and reach their full potential In workplace, these needs are satisfied by opportunitiesof training, development, empowerment and innovation

It is important to note that once each of these needs is satisfied, the individual moves

up to the higher level of the hierarchy

Trang 23

Figure 3.1: Maslow’s hierarchy of

3.2 Retention ( Intention to stay)

Over the past decades, the way in which people are managed and developed in the

workplace has been widely recognized as one of the primary factors in achieving improvement in organizational performance (BQF, 1998; Marchington and Wilkinson, 1997; Phillips, 1997) It has become a common sense to say “people are our most important asset’ (Accenture, 2001) With regards to the literature review, it was

acknowledged that the employees of successful organizations were shared a

fundamental philosophy of valuing and investing (Anand, 1997; Maguire, 1995) In

fact, various studies have stated human resource management as a means of

achieving competitive advantage (Delery, 1998; Walker, 2001) With the same

philosophy, the retention of leaders are of great significance for business organizations

Retention is about developing strategies that make employees to be committed to and

have consistent intention to stay with the organization In other words, that is about

Trang 24

reducing the number of people who leave the organization for avoidable reasons Organizations need to retain employees, especially talented leaders with the required

competencies to ensure that business can be maintained (Stucberry, 2003) It is not simple to have smart solutions to retain good leaders Obviously, there are various factors affecting leaders to have the intention to stay with the organizations The Management cannot retain their talented leaders without solid understanding of these

influencing factors These factors are the very drivers for leaders to have business

performance and make contributions to the organization they are working for

Today almost organizations have to address with the challenge of keeping good leaders Capitalizing leaders effectively is, at the initial step, about identifying their needs Leaders bring their needs, aspirations, and desires to their career and working environment where their personal abilities can be capitalized on and their personal needs should be satisfied

3.3 Organizational commitment

In this research, organizational commitment is considered as antecedents as they have direct impact on intention to stay

The concept of organizational commitment has attracted remarkable attention over the

past decades and has become a central objective of human resource management

According to Guest (1987), HRM policies are designed to maximize organizational integration, employee commitment, flexibility and quality of work For the topic in question, our focus is on “Commitment ” which can be described as attachment

Trang 25

and loyalty Individuals can display this attachment and loyalty More specifically, as

defined by Mowdray (1992), organizational commitment consists of three components:

identification with the goal’s and values of the organization, a desire to belong to the

organization and a willingness to display effort on behalf of the organization

The concept organizational commitment has grown in popularity in the literature on

industrial and organizational psychology (Cohen, 2003) Early studies on organizational commitment viewed the concept as a single dimension, based on an attitudinal

perspective, embracing identification, involvement and loyalty (Porter, Steers, Mowday & Boulian, 1974) According to Porter et al (1974), an attitudinal perspective refers to the psychological attachment or affective commitment formed by an employee in relation to his identification and involvement with the respective organization

Porter et al (1974, p 604) further defines organizational commitment as “an attachment to the organization, characterized by an intention to remain in it; an identification with the values and goals of the organization; and a willingness to exert extra effort on its behalf’ Individuals consider the extent to which their own values and goals relate to that of the organization as part of organizational commitment, therefore it is

considered to be the linkage between the individual employee and the organization

Meyer and Allen (1984) initially viewed organizational commitment as two- dimensional namely, affective and continuance Meyer and Allen (1984) defined affective commitment as “positive feelings of identification with, attachment to and involvement in the work organization” while they viewed the continuance commitment as “the extent which employees feel committed to their organization by virtue of the costs that they feel

Trang 26

are associated with leaving” Allen and Meyer (1990) with their further research added a

third dimension, namely normative commitment Allen and Meyer (1990) define

normative commitment as “the employee's feelings of obligation to remain with the

organization” As a result, the concept of organizational commitment is viewed with

three dimensions characterized by the affective, continuance and normative dimensions

(Meyer & Allen, 1991)

Although there are different explanations on organizational commitment, the common

view is that organizational commitment is a psychological state that characterizes

organizational members' relationship with the organization and has implications for the decision to continue or discontinue membership in the organization (Meyer & Allen, 1997)

On the ground of the above related literature review on organizational commitment, we can possibly hypothesize that:

Hi: There is a positive impact of Organization Commitment on the Intention to

Stay of leaders in OCB

3 4 Antecedent factors of Organizational commitment 3.4.1 Remuneration and Rewards

Remuneration and Rewards has many different names in different words Compensation and rewards was called by Waleed (2011) Muhammad (2011) Kazi &

Trang 27

called it is pay and conditions, Muhammad (2011) called it is salary and wages rewards, Janet (2004) named it as remuneration and rewards

The term ‘reward’ is greatly discussed in the literature as something that the organization gives to the employees in return to their contributions and performance It is also

something that is desired by the employees (Agarwal, 1998) A reward can be extrinsic or intrinsic in term of value On one hand, it can be in cash or cash equivalents On the other hand, it can be a form of spiritual recognition such as naming a worker employee of the month, leader of the year etc In addition, reward also refers to a tangible incentive An employee or a leader is given a reward by their organization to recognize

their contribution or appreciate their performance so that they become motivated for

future positive behavior

In a corporate environment, there are many forms of rewards It includes cash bonuses, recognition awards, gifts or free holiday trips It is very important that the rewards

should have a lasting impression on the employee and it will continue to substantiate the

employee’s perception that they are valued (Silbert, 2005)

From the above views, we can make the following hypotheses:

H2: Remuneration _and_ Rewards has positive impact on Organizational Commitment

3.4.2 Training & Development

Trang 28

Training and development is about developing employees or leader’s competencies

In other words, it is about helping them to reach a next level of their potential

Training is regarded as a form of human capital investment whether that investment is made by the individual or by the firm (Goldstein, 1991; Wetland, 2003) Training programs enhance employee job skills when they are employed Employees are expected to acquire new skills and knowledge, apply to the current job, and share them with other employees (Noe, 1999) Employees who participate in training course will be provided specific skills or correct deficiencies in their performances, while development is only an effort to provide employee abilities which the organization will

need in the future (Gomez-Mejia, Balkin and Cardy, 1995)

Huselid (1995) suggested that progressive HR practices that embrace career-related

practices could improve knowledge, skills and the abilities of an organization’s current

and potential employees, and enhance the retention of quality employees Skill development could include improving basic literacy, technological know-how, interpersonal communication, or problem solving abilities Training and development is viewed as a symbol of the employer's commitment to staff ( Storey and Sisson,

1993), training can help lead to lower turnover (Frazis et al., 1998; Wetland, 2003) In a competitive context today, leading companies have acknowledged that providing employees, especially leaders with professional training and development program is the key to attract and retain the kind of flexibility, technologically sophisticated workforce that companies need to succeed in the digital economy (Accenture, 2001;

Bassi and Van Buren, 1999)

On the above background, the following hypothesis is made:

Trang 29

HỆ: There is a positive impact of the training and development on organizational commitment

3.4.3 Career Promotions

The advancement of an employee from one job position to another job position that has a higher salary range, a higher level job title, and, often, more and higher level job

responsibilities, is called a promotion From the leader’s perspective, promotion is a next

step of their career leader with more power and responsibilities Visually, a promotion moves a leader’s career up one level on an organizational chart

Promotion within an organization shows evidence of formal recognition of one’s

performance and ability rewarded with a rise in pay, work challenges, responsibility, status, and autonomy Leaders view promotion as an achievement of their proven

performance record towards career success (Kim, 2005) Promotion carries recognition from the management, helping leaders to expand their network within the profession through a wider job scope and perspective (Gaertner & Nollen, 1989; Wayne et al., 1997)

Career promotion connects a leader’s career interest with the current organization, while

through performance recognition, the organization encourages leaders to stay and extend their organizational goals in the future The perception of future advancement opportunities within the organization acts as motivation for employees and leaders to perform up to expectations (Vroom, 1964), and stay with the company to demonstrate their skills and ability Consistent with the organizational support theory, promotion delivers favorable treatment to employees, indicating that an organization is recognizing and appraising the employees’ performance via formal promotion It also demonstrates

Trang 30

the organization’s commitment to developing leaders’ career path and learning

opportunity (Guest et al., 2002)

What is more, the perception of the availability of promotion within the organization

could also be viewed as a discretionary decision to reward performing leaders As leaders feel appreciated, they reciprocate with loyalty and extend extra effort (Eisenberger et al.,

1986) A promotion is viewed as desirable by leaders because of the impact a promotion has on pay, authority, responsibility, and the ability to influence broader organizational

decision making A promotion raises the status of the leader who receives a promotion which is a visible sign of esteem from the employer

Theoretically, employees with promotional opportunities tend to connect their career

opportunities and interest to seek self-fulfillment with the organization Wayne et al (1997) found positive relations between promotion and organizational commitment The

hypothesis is

4: There is a positive impact of Career Promotion on Organizational Commitment

3.4.4 Leadership

Leadership refers to related to relationship between leaders and the management or leaders of higher levels There are many definitions on leadership Leadership is conceptualized in terms of four tasks that need to be accomplished in any organization: providing orientation, assuring alignment, building commitment and facing adaptive challenges (Risher and Stopper, 2002) Leaders are seen to be central to the process of creating corporate cultures, systems, and structures that foster knowledge creation,

sharing, and cultivation (Bryant, 2003) The impact of leaders have been examined

Trang 31

by numerous leadership studies in a wide variety of organizations, and results show that

leadership styles in a high-level of follower motivation and commitment as well as well-

above-average organizational performance (Bryman, 1992; Elby et al., 1999: Podsakoff and Steyrer, 1998)

Leadership has a strong ability to affect employee (Bethel,1990) According to Bohn and leadership is defined in a new way that it creates a new vision; increase the self

confidence in employees through coordination and communication One of the most recent published theories of leadership is the one in leadership is divided into two types

transactional and transformational leadership (Burn, 1978; Bass 1997) Leadership

undoubtedly has the major role in the outcome of any project Both the identified

behaviors have variable outcomes under different circumstances Under certain situations, transactional style of leadership lead to a successful working of the organizations even

though it doesn’t give the followers as much liberty as transformational leadership does (Boseman, 2008) but it gives the follower a sense of identity and job satisfaction whilst in other cases, transformational style of leadership has been found to work better for the followers and the organization Transactional leadership style gives more work pleasure

as compared to transformational leadership style as fulfilling the given task is

synonymous to reward in that leadership structure (Wu, 2009; Epitropaki & Martin, 2005)

Several researchers have thought highly of the positive influence of leaders in organizational outcomes, which resulted in increased organizational behavior and higher intention to stay (Alimo-Metcalfe and Alban-Metcalfe, 2001) Therefore, based on the literature review, the hypothesis is:

Trang 32

HS: There is a positive impact of Leadership on Organizational Commitment

3.4.5 Working environment

Working environment relates to the atmosphere in which an individual works in an organization Working environment is called with different names It is named as the quality of working relationships (Bhavna & Swati, 2012), the built environment, work place environment (Bhavna & Swati, 2012., Waleed, 2011), work place culture (Waleed, 2011), work environment (Muhammad, 2011), trust in company (Fleischlin, 2008), being

safe (Bhavna & Swati, 2012), positive and negative situations (Waleed, 2011),

having fun (Bhavna & Swati, 2012), freedom and autonomy (Petra, 2011), highly incentive work (Petra 2011), having job security (Elizabeth et al., 2008), internal communications (Andy et al, 2003), Social atmosphere (Ans et al., 2003)

The study by Nadeem et al., (2011) was to aim at determining relationships between working environment and organizational commitment That is support of the organization for flexible time working, working stress It’s very important to recognize the emerging needs of individuals to keep them committed and provide the work environment as expected (Ramlall, 2003) Organizations need to promote social

activities, so that friendly relations can improve between the employees; and in turn,

their commitment towards the organization excels (Kirmizi & Deniz, 2009) Low performing employees are committed and comfortable in a less or non-threatened environment, whereas high performing employees need a challenging environment (Steers, 1977)

Milory (2004) reported that people enjoy working, and strive to work in the organization that provide positive working environment where they feel they are making difference

Trang 33

and where most people in the organization are proficient and coordinating together to move the organization forward As such, the hypothesis is

H6: Working environment has positive impact on Organizational Commitment,

3.5 Research hypotheses & model

In this study, the hypothesized research model is built upon the following 7 factors Figure 3.2: Research model Renewmeration & Rewards Training & Development Career Promotion Organizational Intention Commitment to stay Leadership & Support Working Environment

H 1: Organizational Commitment is positively correlated to Intention to Stay H 2: Remuneration and Rewards has positive impact on Organizational Commitment H3: Training and Development has positive impact on Organizational Commitment

H 4: Career Promotion has positive impact on Organizational Commitment

Trang 34

H 5: Leadership has positive impact on Organizational Commitment

H 6: Working Environment has positive impact on Organizational Commitment

3.6 Chapter conclusion

There are many factors leading to organizational commitment Because of characteristics of keeping leaders in OCB, the study only focuses on key factors such as: remuneration

and rewards; training & development, promotion, leadership and working environment

The influencing factors to organizational commitment and intention to stay of leaders

in OCB will be introduced in Chapter 4

Trang 35

CHAPTER 4: RESEARCH DESIGN

This chapter presents the research design with the focus on type of research, research procedure, measurement scales, method of data collection and method of data analysis as well

4.1 Type of Research

The type of this research is descriptive research because our research objectives are to test

the relationship between variables According to Jame ( 1997), descriptive research is

used to obtain information concerning the current status of the phenomena to describe

"what exists" with respect to variables or conditions in a situation The methods involved range from the survey which describes the status quo, the correlation study which investigates the relationship between variables, to developmental studies which seek to

determine changes over time

4.2 Research procedure

The research follows the procedure illustrated in Figure 4.1

Trang 36

Figure 4.1: Research procedure * Research objective * Literature review * Model * Research Method * Data collection * Data analysis * Conclusions & recommendation 4.3 Measurement scales

The research participants are supervisors, team-leaders, managers, directors from all departments and business units of the OCB network

They will be asked to respond to the survey questions by using five point Likert scale ranging from:

Trang 37

oO 1 equals totally disagree, 2 equals disagree, 3 equals either disagree or agree, 4 equals agree, 5 equals totally agree

© or | equals leave surely, 2 equals leave, 3 equals unclear intention, 4 equals stay, 5 equals stay surely

Q Age is divided into 4 groups and coded such those 1 equals under 30 years old, 2 equals 31to 40 years old, 3 equals 41 to 50 years old, 4 equals over 50 years old

o Gender is coded 1 equals male, 2 equals female

o Years in leadership: are coded 1 equals less than 1 year, 2 equals less than 2

years 3 equals less than 3 years, 4 equals over than 3 years 4

The scales for 7 constructs in the model have been developed on the basis of previously

established studies, in conjunction with the adjustment for contextual situation (i.e

banking industry in Vietnam and especially in OCB) Multiple item scales will be used

in the form of five point Likert type The coded items and sources of reference for each scale are presented in Appendix 3

4.4 Method of data collection Sample size :

All 315 leaders ( supervisors, Team-Leaders, managers, Directors ) of OCB nationwide will be approached directly or via email to answer the constructed questionnaire for the

surveys

=" Method for data collection:

- In-depth interview: to get qualitative data from these leaders of the whole network of OCB The results are used as additional inputs into the process of questionnaire design - Questionnaire: using quantitative/structured questions to measure various constructs

Trang 38

in the model in order to empirically test the hypotheses

- Data collection process: One official letter will be sent via email to the 315 leaders

of OCB to communicate about the purpose of the research, and to guide them how to do

the survey and make the respondent to feel comfortable as all the answer are treated with top confidential for the sake of the research only In this introduction email, there

will be the link so that the respondents will find it easy to do the survey To answer the

survey, the respondents will follow the following link and start providing the answers in

the internet:

https://www.surveymonkey.com/eaders-surveys/OCB

The response rate is estimated to be over 90% The respondents will have one week to

answer the surveys and send back the answer via email Two days before the deadline,

one reminder will be sent to those who have not responded to the surveys yet to reach

the estimated response rate

Once the respondent answers the survey, the answers report will be generated with the

aid of www.surveymonkey.com tools 4.5 Method of analysis

Descriptive and inferential statistics (Cronbach Alpha, EFA, Correlation,

Multiple regression analysis) using SPSS software package will be conducted The analysis process to be implemented is described below

Trang 39

a<0.5 Unacceptable

4.5.1 Assessment of measurement scale

The multi-item scales developed above have to be evaluated for their unidimensionality , teliability, and validity

¥ Unidimensionality is defined as the existence of one construct underlying a set

of items (Garver and Mentzer, 1999) Unidimentionality should be tested before doing reliability tests because reliability such as Cronbach Alpha does not ensure unidimensionality but instead assumes it exists

Y Reliability: Cronbach Alpha is widely used approach to test reliability Cronbach Alpha will be high if the scale items are highly correlated

In this research, the main assessment method is exploratory factor analysis (EAF) using SPSS 11.5 There are two basic methods used for extracting factors in EFA, common factor analysis and principal components factor analysis While principal component factor analysis is used mainly for item reduction and test

unidimensionality, reliability, common factor analysis is for exploring the latent

dimensions represented in the original variables (Conway and Huffcutt, 2003) and test convergent validity, discriminant validity The analysis process will be implemented through the two respective steps:

2 EFA with principal components, eigenvalue > 1 and VARIMAX rotation will be applied to each of the 7 constructs under investigation (Conway and

Huffeutt, 2003) The main purpose of this step is to see whether the scale

for each construct under investigation is unidimensional (i.e first-order

construct) or multidimensional (i.e second-order construct) For a scale to be

Trang 40

empirically unidimensional, the factor analysis must result in only one factor

extracted Moreover, items with low factor loadings <0.40 are to be eliminated

because they do not converge properly with the latent construct they are designed

to measure (Garver and Mentzer, 1999) Then, reliability analysis (Cronbach

Alpha) will be applied to each set of items (i.e each scale) to assess and refine the

measurement items Items having low Cronbach Alpha < 0.60, item-to-total correlation coefficients < 0.35 will be eliminated

o A joint EFA with the same setting (i.e principal axis factoring, eigenvalue > | and VARIMAX rotation) is performed Given the result of step 1 where each item loads highly on the factor representing its underlying construct, this jomt EFA

allows all items to correlate with every factor without being constrained to correlate only with its underlying factor (Kline, 1998) Consequently, it allows

the investigation of the general correlation pattern of the measurement items

(Fabrigar et al., 1999) First no item load highly on more than one factor to

indicate unidimensionality measurement, i.e one item measures only one

construct (Anderson and Gerbing, 1988) Second, all items comprising a scale

must load highly on one factor representing the underlying construct High

loadings of all items indicate convergent validity, while loading on only one

factorindicates unidimensionality construct Third, no factor consists of two

sets of items loading highly on it to indicate discriminant validity (Hair et al.,

1998; Garver and Mentzer, 1999)

4.5.2 Multiple regressions

After completing the refinement the multiple regressions will be implemented to identify quantitative the relation of antecedent factors and job satisfaction, the relation

Ngày đăng: 05/03/2021, 14:12

TỪ KHÓA LIÊN QUAN

TÀI LIỆU CÙNG NGƯỜI DÙNG

TÀI LIỆU LIÊN QUAN