Assessment of factors affecting intention to leave of employees at japanese companies in vietnam

VIETNAM NATIONAL UNIVERSITY, HANOI VIETNAM JAPAN UNIVERSITY LA THI AN ASSESSMENT OF FACTORS AFFECTING INTENTION TO LEAVE OF EMPLOYEES AT JAPANESE COMPANIES IN VIETNAM MASTER'S THESIS BUSINESS ADMINISTRATION Hanoi, 2018 VIETNAM NATIONAL UNIVERSITY, HANOI VIETNAM JAPAN UNIVERSITY LA THI AN ASSESSMENT OF FACTORS AFFECTING INTENTION TO LEAVE OF EMPLOYEES AT JAPANESE COMPANIES IN VIETNAM MAJOR: BUSINESS ADMINISTRATION CODE: 60340102 RESEARCH SUPERVISORS: DR DO XUAN TRUONG ASSOC PROF DR KODO YOKOZAWA Hanoi, 2018 ACKNOWLEDGEMENTS In February 2016, I worked as Human Resource and Administration Executive at JX Nippon Oil and Energy Vietnam which was a Japanese company in Dinh Vu Industrial Zone, Hai Phong City Mr Morita who was my General Manager suggested me about Vietnam Japan University I decided to apply for Master course and got the scholarship to start one of the most challenging tasks in my life At that time, I got a news that I was pregnant When the first semester started, it was in the eight-month of pregnancy period Therefore, I was already expecting that ensuring the studying at the university would be difficult and I had to clear my mind that it was a risk of course cancellation However, the reality was much better than I thought With all the effort and support from people around me, I could back to university after taking days off to give birth In some circumstances, three first semesters were still under my control The fourth semester with master thesis was a truly challenge In one hand, my experience in research field was really limited Besides, VJU got tough requirement for Master thesis These things made me thought that finishing this dissertation was just a dream Especially when I managed to a research proposal, I realized that everything must be learnt from the zero, even the smallest task On the other hand, it was the truth that I was not alone and that my classmates shared the same situation From this point, we motivated each other and tried to complete the thesis This thesis represents not only my work in final semester at VJU; it is a milestone in nearly two years of studying at VJU and especially within the Business i Administration Faculty Like most any other complex work, it has not been achieved without the help of a great number of people From the deepest of my heart, I would like to express my gratitude to people always by my side during recent years I would like to start with my beloved daughter She is the strongest motivation for me to live the fullest and work the hardest Without her, I could not such things For me, her future is worth every scarify In addition, I would like to express my sincere gratitude to my grandmother, my parents and my younger brothers who give me love, listen to me and respect my choice They helped me to look after my baby over the period I greatly appreciate the Board of Director of VJU, Government of Vietnam and Government of Japan They provide us with the best facilities and sponsors to create a good learning environment I would like to specially thank Prof Matsui and Assoc Prof Pham Thi Lien who always take care us in each mile on the way we go Most importantly, I praise the enormous amount of support by my supervisor Assoc Prof Kodo Yokozawa from Yokohama National University He opened over 10 seminars and talks to guide me about research works He helped me come up with the thesis topic and guided me over almost a half year of development He also taught me Comparative Management in two semesters and provided me with theory in qualitative analysis From Vietnam side, I would like to thank you my second supervisor Dr Do Xuan Truong He has much experiences in human ii resource management field which is directly relating to my thesis topic In addition, he is always available for my questions I also appreciate the remarkable support from managers of Japanese organizations which gave me opportunity to study about their organizations Last but not least, I would like to thank my dear friends and Assistant of Program who gave up their time to help me and motivate me Their supports and comments remarkably make this thesis being complete every day Taking all their supports into account, it is my deep gratitude to all above people Without their persistent guidance and invaluable help, this dissertation would not have been possible iii TABLE OF CONTENTS ACKNOWLEDGEMENTS i TABLE OF CONTENTS iv LIST OF TABLES viii LIST OF FIGURES x INTRODUCTION CHAPTER LITERATURE REVIEW 1.1 Overview of human resource management 1.1.1 Concept 1.1.2 Role and meaning of human resource management 1.1.3 Goals of Human Resource Management 1.1.4 Basic functions of human resource management 1.1.5 The concept of resignation 12 1.1.6 Voluntary turnover 12 1.1.7 The intention to leave 13 1.2 Concept job satisfaction of staff 13 1.2.1 Definition of employee satisfaction 13 1.2.2 The nature of job satisfaction 15 1.3 Job satisfaction theories 16 1.3.1 Theory of Maslow's hierarchy of needs 16 1.3.2 Hertzberg’s two-factor theory 19 1.3.3 ERG Theory 20 1.3.4 Expectancy theory 20 1.3.5 Adams equity theory 21 1.3.6 Social Exchange Theory- SET 22 1.4 Research related to the intention to leave 23 1.4.1 The research of Mobley 23 iv 1.4.2 Research of Price and Mueller 25 1.4.3 Research of Kumar and Partner 26 1.4.4 Research of Lee and Partner 27 1.4.5 Research of Long Partner 28 1.5 Research model proposal 30 1.5.1 Research model proposal 30 1.5.2 Hypothesis 31 1.6 Summary of chapter 38 CHAPTER RESEARCH METHODOLOGY 39 2.1 Source of information 39 2.1.1 Secondary information 39 2.1.2 Primary information 40 2.2 Research methods 40 2.3 The preliminary research 42 2.3.1 Discussing Expert Group 42 2.3.2 The content of the preliminary interview 43 2.3.3 The result of the preliminary interview 43 2.3.4 Scales of measurement 44 2.4 Official research (quantitative research) 48 2.4.1 Research Sample 48 2.4.2 Planning data collection 49 2.4.3 Describing research sampling 49 2.4.4 Evaluating scale through Cronbach Alpha significant Coefficient 49 2.4.5 Exploratory Factor Analysis: 50 2.4.6 Analysis of the relationship 52 2.4.7 Regression Analysis 52 2.5 Summary of chapter 53 CHAPTER RESEARCH RESULTS 55 3.1 Sample characteristics 55 v 3.2 Evaluating scale based on Cronbach Alpha 57 3.3 Evaluating scale by using Exploratory Factor Analysis EFA 61 3.3.1 The components scale 61 3.3.2 Intention to leave scale 68 3.4 Official research model 69 3.5 Testing research model through regression method 70 3.5.1 Testing correlation between the variables 70 3.5.2 Regression analysis 71 3.6 Results and discussion 73 3.6.1 Analyze the impact of the intention to leave 73 3.6.2 Salary and benefits factors 74 3.6.3 Job satisfaction factor 75 3.6.4 Organization cohesion factor 75 3.6.5 Work pressure factor 76 3.6.6 Training and Development 76 3.6.7 Organization culture 77 CHAPTER CONCLUSIONS AND RECOMMENDATIONS 79 4.1 Conclusions 79 4.2 Recommendations 80 4.2.1 Salary and benefits 81 4.2.2 Organizational culture 82 4.2.3 Job satisfaction 83 4.2.4 Training and development 84 4.2.5 Work pressure 85 4.2.6 Organizational culture 86 4.3 Limitations 87 REFERENCES 89 Vietnamese 89 vi English 89 ANNEX 97 QUESTIONNAIRE 97 English 97 Vietnamese 101 CRONBACH ALPHA 107 EFA 114 REGRESSION 117 vii LIST OF TABLES Table 1.1 Definition of voluntary and involuntary termination 12 Table 1.2 The elements in Maslow's hierarchy of needs 18 Table 1.3 Summary of hypotheses 37 Table 1.4 Encoding scales 45 Table 3.1 Gender 55 Table 3.2 Age 55 Table 3.3 Income 56 Table 3.4 Position 56 Table 3.5 Time working 57 Table 3.6 The Cronbach alpha coefficients of components: 57 Table 3.7 Component scale KMO and Bartlett's coefficient 61 Table 3.8 Extraction Sums of Squared Loadings 1st 62 Table 3.9 Exploratory Factor Analysis 1st 64 Table 3.10 Extraction Sums of Squared Loadings 2st 65 Table 3.11 Exploratory Factor Analysis 2st 66 Table 3.12 Intention to leave scale KMO and Bartlett's coefficient 68 Table 3.13 The Results of factor analysis of Intention to leave scale: 68 Table 3.14 Correlation matrix between the variables 70 Table 3.15 Regression analysis 71 Table 3.16 The statistical parameters of each variable in regression function 72 viii 18 Quyết định làm cho công ty  sai lầm đời 2 3 4 5 19 Tơi khơng có lợi ích tơi  làm việc lâu dài cho công ty 2 3 4 5 20 Tơi thường cảm thấy bực có  số việc xảy không mong đợi 2 3 4 5 21 Tôi thường cảm thấy lo lắng bị căng  thẳng 2 3 4 5 2 3 4 5 2 3 4 5 2 3 4 5 1 2 3 4 5 Tôi phải tự phát triển kỹ  mà không hỗ trợ từ công ty 2 3 4 5 2 3 4 5 Đôi khi, cảm thấy khơng thể đối phó 22 với tất điều mà phải làm  công ty Tôithường cảm thấy không tự tin khả 23 để xử lý vấn đề xảy  cơng ty Tơi cảm thấy khó khăn công việc 24 chồng chất nhiều mà  vượt qua chúng 25 Quản lý trực tiếp không 26 trọng nhiều đến việc đào tạo cho nhân  viên 104 27 Tôi khơng có nhiều hội đào tạo  2 3 4 5 28 Cơng ty khơng có kế hoạch đào tạo cho  vị trí cơng việc làm 2 3 4 5 29 Nhu cầu đào tạo tơi thảo  luận 2 3 4 5 2 3 4 5 2 3 4 5 Tơi cảm thấy khó tiếp cận bình 30 đẳng với hội đào tạo phát  triển Trong công ty tôi, người khó có 31 thể thảo luận cách thân thiện cởi  mở với 32 Trong cơng ty tơi người có niềm  tin với 2 3 4 5 33 Trong tổ chức tơi, có hỗ trợ,  giúp đỡ để hồn thành cơng việc 2 3 4 5 2 3 4 5 2 3 4 5 Trong công ty tôi, người chưa quan 34 tâm đến vấn đề gắn kết với để  nghỉ mục tiêu chung tổ chức 35 Trong cơng ty tơi, cấp hướng  dẫn huấn luyện cấp họ 105 36 Rất tơi tìm cơng việc khác  thời gian 2 3 4 5 37 tới 1 2 3 4 5 38 Đôi tơi có suy nghỉ muốn rời bỏ tổ  chức 2 3 4 5 39 Tôi thường nghỉ ý định rời bỏ công  việc 2 3 4 5 Vui lòng cho biết thêm thông tin anh chị câu hỏi bên Giới tính:  Nữ  Nam Độ tuổi Anh/Chị:  18 – Thu nhập Anh/Chị:  26 – 30  31 – 35  – 10m  < 5m Vị trí công tác Anh/Chị :  Nhân viên Thâm niên làm việc:  < Năm  - Năm  36 – 40  Trên 40  10 – 15  Quản lý  Trên15  CEO  - Năm  > Năm Một lần xin chân thành cảm ơn Anh/Chị dành thời gian quý báu để trả lời phiếu khảo sát này! 106 CRONBACH ALPHA Case Processing Summary N Valid Cases % 277 Excluded a Total 100,0 ,0 277 100,0 a Listwise deletion based on all variables in the procedure Reliability Statistics Cronbach's Alpha N of Items ,877 Item Statistics Mean Std Deviation N SAB1 3,78 ,967 277 SAB2 3,75 ,951 277 SAB3 3,72 ,917 277 SAB4 4,09 ,803 277 SAB5 3,79 ,920 277 SAB6 3,99 ,821 277 SAB7 3,78 ,952 277 SAB8 3,87 ,944 277 Item-Total Statistics Scale Mean if Scale Variance if Corrected Item- Cronbach's Alpha Item Deleted Item Deleted Total Correlation if Item Deleted SAB1 26,98 21,641 ,671 ,859 SAB2 27,01 21,420 ,714 ,854 SAB3 27,04 21,835 ,693 ,857 SAB4 26,67 22,801 ,674 ,860 SAB5 26,97 23,474 ,481 ,879 SAB6 26,77 22,999 ,627 ,864 SAB7 26,98 21,648 ,684 ,857 107 SAB8 26,89 22,495 ,583 ,868 Scale Statistics Mean Variance 30,76 Std Deviation 28,612 N of Items 5,349 Case Processing Summary N Valid Cases % 277 Excluded a Total 100,0 ,0 277 100,0 a Listwise deletion based on all variables in the procedure Reliability Statistics Cronbach's Alpha N of Items ,904 Item Statistics Mean Std Deviation N JOB1 3,35 ,957 277 JOB2 3,18 ,969 277 JOB3 3,27 ,989 277 JOB4 2,92 1,033 277 JOB5 2,88 1,057 277 Item-Total Statistics Scale Mean if Scale Variance if Corrected Item- Cronbach's Alpha Item Deleted Item Deleted Total Correlation if Item Deleted JOB1 12,25 12,501 ,692 ,896 JOB2 12,42 11,883 ,791 ,876 JOB3 12,34 11,796 ,784 ,877 JOB4 12,68 11,391 ,810 ,871 JOB5 12,72 11,754 ,722 ,891 Scale Statistics Mean Variance Std Deviation N of Items 108 15,60 18,103 4,255 Case Processing Summary N Valid Cases % 277 Excluded a Total 100,0 ,0 277 100,0 a Listwise deletion based on all variables in the procedure Reliability Statistics Cronbach's Alpha N of Items ,863 Item Statistics Mean Std Deviation N ORG1 3,73 ,933 277 ORG2 3,68 ,964 277 ORG3 3,30 ,963 277 ORG4 3,59 ,891 277 ORG5 3,53 ,907 277 ORG6 3,64 ,881 277 Item-Total Statistics Scale Mean if Scale Variance if Corrected Item- Cronbach's Alpha Item Deleted Item Deleted Total Correlation if Item Deleted ORG1 17,73 13,240 ,608 ,849 ORG2 17,79 12,683 ,673 ,837 ORG3 18,17 12,243 ,752 ,822 ORG4 17,87 13,031 ,686 ,835 ORG5 17,94 13,054 ,665 ,839 ORG6 17,83 13,808 ,558 ,857 Scale Statistics Mean 21,47 Variance 18,235 Std Deviation 4,270 N of Items 109 Case Processing Summary N Valid Excludeda Cases Total % 277 100,0 ,0 277 100,0 a Listwise deletion based on all variables in the procedure Reliability Statistics Cronbach's Alpha N of Items ,845 Item Statistics Mean Std Deviation N PRR1 3,05 1,158 277 PRR2 3,31 1,144 277 PRR3 3,41 1,051 277 PRR4 3,47 1,005 277 PRR5 3,25 1,151 277 Scale Mean if Scale Variance if Corrected Item- Cronbach's Alpha Item Deleted Item Deleted Total Correlation if Item Deleted Item-Total Statistics PRR1 13,44 11,878 ,702 ,800 PRR2 13,18 12,175 ,669 ,809 PRR3 13,08 12,563 ,692 ,804 PRR4 13,02 13,322 ,612 ,825 PRR5 13,24 12,624 ,596 ,830 Scale Statistics Mean 16,49 Variance 18,823 Std Deviation 4,339 N of Items 110 Case Processing Summary N Valid Excludeda Cases Total % 277 100,0 ,0 277 100,0 a Listwise deletion based on all variables in the procedure Reliability Statistics Cronbach's Alpha N of Items ,903 Item Statistics Mean Std Deviation N TRA1 3,83 ,813 277 TRA2 3,59 ,862 277 TRA3 3,73 ,805 277 TRA4 3,51 ,895 277 TRA5 3,52 ,887 277 TRA6 3,70 ,864 277 Item-Total Statistics Scale Mean if Scale Variance if Corrected Item- Cronbach's Alpha Item Deleted Item Deleted Total Correlation if Item Deleted TRA1 18,04 13,404 ,620 ,903 TRA2 18,29 12,438 ,752 ,884 TRA3 18,15 13,105 ,687 ,893 TRA4 18,37 11,951 ,808 ,875 TRA5 18,36 12,282 ,753 ,884 TRA6 18,18 12,219 ,792 ,878 Scale Statistics Mean 21,88 Variance 17,753 Std Deviation 4,213 N of Items 111 Case Processing Summary N Valid Cases % 277 Excluded a Total 100,0 ,0 277 100,0 a Listwise deletion based on all variables in the procedure Reliability Statistics Cronbach's Alpha N of Items ,828 Item Statistics Mean Std Deviation N CUL1 3,39 1,000 277 CUL2 3,52 ,965 277 CUL3 3,45 ,910 277 CUL4 3,68 ,922 277 CUL5 3,82 ,889 277 Item-Total Statistics Scale Mean if Scale Variance if Corrected Item- Cronbach's Alpha Item Deleted Item Deleted Total Correlation if Item Deleted CUL1 14,46 8,619 ,582 ,807 CUL2 14,34 8,884 ,560 ,813 CUL3 14,41 8,257 ,756 ,756 CUL4 14,18 8,634 ,655 ,785 CUL5 14,03 9,119 ,582 ,805 Scale Statistics Mean 17,86 Variance 13,037 Std Deviation 3,611 N of Items 112 Case Processing Summary N Valid Excludeda Cases Total % 277 100,0 ,0 277 100,0 a Listwise deletion based on all variables in the procedure Reliability Statistics Cronbach's Alpha N of Items ,930 Item Statistics Mean Std Deviation N INT1 3,73 ,852 277 INT2 3,69 ,814 277 INT3 3,65 ,874 277 INT4 3,62 ,874 277 Item-Total Statistics Scale Mean if Scale Variance if Corrected Item- Cronbach's Alpha Item Deleted Item Deleted Total Correlation if Item Deleted INT1 10,97 5,564 ,831 ,909 INT2 11,01 5,772 ,817 ,914 INT3 11,05 5,381 ,859 ,900 INT4 11,08 5,457 ,834 ,909 Scale Statistics Mean 14,70 Variance 9,629 Std Deviation 3,103 N of Items 113 EFA Descriptive Statistics Mean Std Deviation Analysis N SAB1 3,78 ,967 277 SAB2 3,75 ,951 277 SAB3 3,72 ,917 277 SAB4 4,09 ,803 277 SAB6 3,99 ,821 277 SAB7 3,78 ,952 277 SAB8 3,87 ,944 277 JOB1 3,35 ,957 277 JOB2 3,18 ,969 277 JOB3 3,27 ,989 277 JOB4 2,92 1,033 277 JOB5 2,88 1,057 277 ORG1 3,73 ,933 277 ORG2 3,68 ,964 277 ORG3 3,30 ,963 277 ORG4 3,59 ,891 277 ORG5 3,53 ,907 277 ORG6 3,64 ,881 277 PRR1 3,05 1,158 277 PRR2 3,31 1,144 277 PRR3 3,41 1,051 277 PRR4 3,47 1,005 277 PRR5 3,25 1,151 277 TRA1 3,83 ,813 277 TRA2 3,59 ,862 277 TRA3 3,73 ,805 277 TRA4 3,51 ,895 277 TRA5 3,52 ,887 277 TRA6 3,70 ,864 277 CUL1 3,39 1,000 277 CUL2 3,52 ,965 277 CUL3 3,45 ,910 277 CUL4 3,68 ,922 277 CUL5 3,82 ,889 277 114 Communalities Initial Extraction SAB1 1,000 ,661 SAB2 1,000 ,709 SAB3 1,000 ,592 SAB4 1,000 ,593 SAB6 1,000 ,523 SAB7 1,000 ,613 SAB8 1,000 ,545 JOB1 1,000 ,648 JOB2 1,000 ,756 JOB3 1,000 ,759 JOB4 1,000 ,797 JOB5 1,000 ,709 ORG1 1,000 ,584 ORG2 1,000 ,677 ORG3 1,000 ,731 ORG4 1,000 ,668 ORG5 1,000 ,688 ORG6 1,000 ,507 PRR1 1,000 ,654 PRR2 1,000 ,676 PRR3 1,000 ,739 PRR4 1,000 ,644 PRR5 1,000 ,582 TRA1 1,000 ,619 TRA2 1,000 ,673 TRA3 1,000 ,652 TRA4 1,000 ,739 TRA5 1,000 ,682 TRA6 1,000 ,729 CUL1 1,000 ,588 CUL2 1,000 ,530 CUL3 1,000 ,761 CUL4 1,000 ,668 CUL5 1,000 ,557 Extraction Method: Principal Component Analysis 115 Component Transformation Matrix Component ,500 ,379 ,456 ,401 ,299 ,386 -,457 ,593 -,249 ,020 ,589 -,173 -,119 -,631 -,286 ,420 ,494 ,293 ,234 -,177 ,133 -,795 ,490 ,157 ,465 -,148 -,012 ,166 ,259 -,817 ,505 ,232 -,794 -,064 -,113 ,209 Extraction Method: Principal Component Analysis Rotation Method: Varimax with Kaiser Normalization 116 Descriptive Statistics Mean Std Deviation Analysis N INT1 3,73 ,852 277 INT2 3,69 ,814 277 INT3 3,65 ,874 277 INT4 3,62 ,874 277 Correlation Matrix INT1 INT2 INT3 INT4 INT1 1,000 ,775 ,761 ,760 INT2 ,775 1,000 ,772 ,718 INT3 ,761 ,772 1,000 ,820 INT4 ,760 ,718 ,820 1,000 Correlation REGRESSION Variables Entered/Removeda Model Variables Entered Variables Method Removed CUL, JOB, PRR, SAB, ORG, TRAb Enter a Dependent Variable: INT b All requested variables entered 117 ANOVAa Model Sum of Squares Regression Mean Square 100,998 16,833 65,110 270 ,241 166,108 276 Residual Total df F Sig ,000b 69,803 a Dependent Variable: INT b Predictors: (Constant), CUL, JOB, PRR, SAB, ORG, TRA Collinearity Diagnosticsa Mo Dimensi del on Eigenval Condition ue Index Variance Proportions (Constant) SAB JOB ORG PRR TRA CUL 6,849 1,000 ,00 ,00 ,00 ,00 ,00 ,00 ,00 ,051 11,542 ,02 ,03 ,29 ,01 ,33 ,02 ,03 ,036 13,825 ,01 ,00 ,64 ,00 ,56 ,01 ,00 ,020 18,345 ,78 ,00 ,01 ,07 ,00 ,01 ,24 ,017 19,946 ,03 ,01 ,01 ,62 ,00 ,00 ,55 ,016 20,783 ,11 ,19 ,03 ,29 ,10 ,31 ,18 ,010 25,709 ,05 ,76 ,03 ,01 ,00 ,65 ,00 a Dependent Variable: INT 118 ... topic of "Assessment of factors affecting intention to leave of employees at Japanese companies in Vietnam" is very meaningful which support the Board of directors of Japanese companies in Vietnam. .. management, satisfaction, loyalty, intentions of quitting employees in the organization Modeling the factors influencing the intention of employees in Japanese companies in Vietnam Hypothesis testing.. .VIETNAM NATIONAL UNIVERSITY, HANOI VIETNAM JAPAN UNIVERSITY LA THI AN ASSESSMENT OF FACTORS AFFECTING INTENTION TO LEAVE OF EMPLOYEES AT JAPANESE COMPANIES IN VIETNAM MAJOR: BUSINESS ADMINISTRATION