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

VIETNAM NATIONAL UNIVERSITY, HANOI VIETNAM JAPAN UNIVERSITY - NGUYEN THI HAI YEN THE EFFECT OF OVERTIME WORKING ON BURN OUT, ENGAGEMENT AND INTENTION TO LEAVE OF MANUFACTURING WORKERS IN VIETNAM MASTER'S THESIS BUSINESS ADMINISTRATION Hanoi, 2020 VIETNAM NATIONAL UNIVERSITY, HANOI VIETNAM JAPAN UNIVERSITY - NGUYEN THI HAI YEN THE EFFECT OF OVERTIME WORKING ON BURN OUT, ENGAGEMENT AND INTENTION TO LEAVE OF MANUFACTURING WORKERS IN VIETNAM MAJOR: MASTER OF BUSINESS ADMINISTRATION CODE: 8340101.01 RESEARCH SUPERVISORS: Assoc.Prof Dr KODO YOKOZAWA Dr DO XUAN TRUONG Hanoi, 2020 ACKNOWLEDGMENT I would like to express my deep gratitude to Dr Do Xuan Truong and Assoc Pro Dr Kodo Yokozawa, my research supervisors, for their patient guidance, enthusiastic encouragement and useful advice of this research work I would also like to thank VJU, YNU and JICA for giving me the opportunity to study, practice and research at YNU, where there are excellent lecturers and adequate facilities to study My grateful thanks are also extent to other lecturers in the MBA faculty for listening and giving me critiques to complete the research further I am particularly grateful for the assistance given by Ms Huong - MBA program assistant, IPO office staff - YNU and volunteer support team in Japan to prepare and support us during all presentation and follow up research as well as study activities I would also like to extend my thanks to Mr Hao for sharing us his experience and also basic knowledge for doing a thesis Finally, I wish to thank my parents for their support and encouragement through out my study ABSTRACT In the context of controversy surrounding the issue of increasing maximum overtime hour in Vietnam, the study was conducted to clarify the effects of overtime on workers' intention to leave their jobs This research aims to explain the relationship between overtime hour, burnout, engagement and intention to leave organization The study was conducted by online surveys targeting workers who are working in manufacturing companies in Vietnam There were 465 responses, but only 139 valid questionnaires were selected for data analysis Results obtained from linear and quadratic analysis have drawn conclusions about both positive and negative roles of working overtime hour All hypotheses describing relationships between variables including working overtime hour, burnout, engagement and intention to leave organization are accepted There are hypotheses matching result from previous research in the Job demand resource model on the relationship between burn out, engagement and intention to leave In addition, the study confirmed both the positive and negative roles of over time hour: Working overtime hour has positive relationship with burn out which lead to negative impact on employee well-being such as intention to leave; working overtime hour have quadratic relationship with engagement which reduce intention to leave The findings may suggest managers to arrange and allocate overtime appropriately, as well as the government to introduce overtime laws and resolve existing disputes Table of Contents CHAPTER 1: INTRODUCTION 1.1 Rationale: 1.2 Research objective 1.3 Research scope 1.4 Research structure CHAPTER 2: LITERATURE REVIEW 2.1 Working overtime hour 2.1.1 Definition 2.1.2 Related Research 2.2 Intention to leave 2.2.1 Definition 2.2.2 Related research 11 2.3 Job Demand Resource model 15 2.4 Research question: 18 2.5 Hypothesis development and conceptual model 18 2.5.1 Hypothesis development 18 2.5.2 Conceptual Model 20 CHAPTER 3: RESEARCH METHODOLOGY 22 3.1 Research process 22 3.2 Sample design 22 3.3 Measuring 23 i CHAPTER 4: DATA ANALYSIS 27 4.1 Data description 27 4.2 Reliability analysis 28 4.2 Confirmatory Factor Analysis (CFA) 30 4.2.1 CFA analysis of Engagement 30 4.2.2 CFA analysis of Burn out 34 4.2.3 CFA analysis of ITL: 36 4.3 Creating a representative variable: 38 4.4 Pearson correlation analysis 38 4.5 Regression Analysis 40 4.5.1 Regression Analysis of the impact of Working overtime hour on Burn out 40 4.5.1 Regression Analysis of the impact of Working overtime hour on Engagement 41 4.5.3 Regression Analysis of the impact of Engagement on Burnout 43 4.5.4 Regression Analysis of the impact of Burnout on Engagement 44 4.5.5 Regression Analysis of the impact of Burn out on ITL 45 4.5.6 Regression Analysis of the impact of Engagement on ITL 46 4.6 Hypothesis tested results 48 CHAPTER 5: CONCLUSION AND DISCUSSION 49 5.1 Conclusion 49 5.2 Discussion 50 5.3 Implication 52 ii 5.4 Limitation and future research direction 54 REFERENCE 55 APENDIX 61 iii LIST OF TABLES Table 2.1: Definition of ITL 10 Table 3.1: The content of measuring items 24 Table 3.2: Likert scale of ITL 25 Table 3.3: Likert scale of Burn out and Engagement 26 Table 4.1: Data description 27 Table 4.2 Reliability analysis 29 Table 4.3: KMO and Bartlett's Test of Virgo 31 Table 4.4: Total Variance Explained of Virgo 31 Table 4.5: Component Matrix of Virgo (Rotated) 31 Table 4.6 : KMO and Bartlett's Test of Dedication 32 Table 4.7: Total Variance Explained of Dedication 32 Table 4.8 : Component Matrix of Dedication (Rotated) 32 Table 4.9: KMO and Bartlett's Test of Absorption 33 Table 4.10: Total Variance Explained of Absorption 33 Table 4.11: Component Matrix of Absorption (Rotated) 33 Table 4.12 : KMO and Bartlett's Test of Burn out 34 Table 4.14 : Component Matrix of Burn out (Rotated) 35 Table 4.15: Total Variance Explained of Burn out (after removing B9) 35 Table 4.16: Component Matrix of Virgo (Rotated, after remove B9) 36 Table 4.17: KMO and Bartlett's Test of ITL 36 Table 4.18 : Total Variance Explained of ITL 37 iv Table 4.19: Component Matrix of ITL (Rotated) 37 Table 4.20: Pearson Correlation statistic 39 Table 4.21: Regression Analysis Summary of Working overtime hour and Burn out………… 40 Table 4.22: Regression Analysis Summary of the impact of Working overtime on Engagement 42 Table 4.23: Regression Analysis Summary of impact of Engagement on Burn out……….… 44 Table 4.24: Regression Analysis Summary of impact of Burn out on Engagement 45 Table 4.25: Regression Analysis Summary of impact of Burn out on ITL 46 Table 4.26: Regression Analysis Summary of impact of engagement on ITL 47 Table 4.27: Hypothesis tested results 48 v LIST OF FIGURES Figure 2.1: Relationship between Human Resource Value, ESE and Employee ITL (Tzafrir et al., 2015) 11 Figure 2.2: Turnover intention model (Muliawan, 2009) 12 Figure 2.3: Model of Personality and Turnover Intention (Jeswani & Dave, 2012) 13 Figure 2.4: Theoretical model of turnover and INL among psychiatric nursing personnel (Alexander, 1998) 14 Figure 2.5: JDR model (Bakker & Demerouti, 2007) 16 Figure 2.6: Conceptual model 20 Figure 3.1: Research Process 22 LIST OF GRAPH Graph 4.1: Linear graph of the impact of Working overtime on Burn out 41 Graph 4.2: Quadratic graph of the impact of Working overtime on Engagement 43 vi we can see that employees are burn out from working more than 40 hours per month This level is still quite high compared to the maximum level prescribed by the government However, the study‟s target respondent are those under 30 years old, so this is understandable Because this age often has good health and ability to work at higher intensity than older ages However, the results showed that overtime hour affected only 16.2% of burn out This demonstrates that there is also many other factors dominate the exhaustion of workers, not merely number of hours For example: distributed or concentrated overtime arrangement, breaks time for employees to regain strength, whether there are organizational support in nutrition or the work environment to improve health for workers or not Working overtime hour has quadratic relationship with engagement This hypothesis is different from previous studies on the impact of overtime on engagement of Beckers et al (2004), but it was made based on practice issue that occurred in the context of Vietnamese workers Watanabe & Yamauchi (2018) claimed that involuntary overtime work impacts negatively on mental health and work engagement In this research context, workers also often work overtime as assigned by manager, it is less likely that workers can voluntarily or arrange their overtime themselves However, the finding from quadratic regression of this study were different from that of Watanabe & Yamauchi This difference may stem from the study subjects In this paper, target respondent is a worker at manufacturing company They are often people without professional knowledge, low income, so they usually want to work more to increase income Meanwhile, research subjects of Watanabe & Yamauchi are nurses They are people having professional knowledge and stable income, but the nurse job requires a lot of time and night duty so may be they not have much desire to work overtime but want to spend more time with their family and themselves As such, in this research, the engagement to organization will increase when working overtime with a low level The reason is that the wages of the workers are quite low, if they only work the usual number of time, it is hard to cover their living In order to get additional income, for simple 51 jobs of workers when the salary is calculated by working time, overtime is the optimal solution If they can get more money from overtime, they can meet their demand and feel more engaged to their work However, when the overtime is too much, it will lead to an imbalance in life, They not have enough time to take care of yourself and your family, leading to dissatisfaction and disengagement to work Moreover, when the overtime is too high, it cause exhaustion and also contribute to reduce engagement Based on the graph 4.2 we can see that engagement increases when employees work around from less than 2.5 hours/week to less than 7.5 hours/week (from less than 10 hours/month to less than 30 hours/month) Beyond this time, engagement will decrease Amazingly, this is in line with the current situation where the government stipulates that organizations can conduct working overtime within 30 hours a month However, overtime hour only explains 36% of engagement According to the interviews with workers, not only the income that makes them want to stay in company, but other welfare policies also greatly influence the worker‟s decision to work at the company For example: Policy for health insurance, social insurance, the care for the spiritual life of trade unions, moreover, long-term job stability compared to free precarious jobs outside 5.3 Implication Research results show that to reduce workers' intention to quit, we can: increase worker engagement with businesses, reduce worker exhaustion and adjust working overtime reasonably: To reduce the burnout and ITL of workers:  Looking at the graph 4.1, you can see that working around over 40 hours per month and more will make employees physically and mentally exhausted Therefore, overtime should not exceed 40 hours per month to ensure employee health  Enterprises actively improve meals for workers The government sets some basic standards for meals at company regard to calories, nutrition or food safety 52 To overcome malnutrition and disease among workers, many health experts say that it is necessary to improve the quality of meals and improve the working environment In Vietnam, there is currently no law on meals for workers There are no specific standards for a meal for workers to have enough energy to work during the day, so when poisoning occurs, there is no legal basis to bind the responsibility for anyone  Organizing periodic health examinations, to ensure workers are detected disease promptly and take measures to treat and recover soon Avoiding workers having to work in exhausted health conditions, which will affect not only workers themselves and the quality of work as well as the benefits of the business in the long term  Arranging overtime appropriately Organization should allocates overtime scatteredly so that workers can have time to recover energy Having reasonable break time during shift work also important To improve engagement and decrease ITL of worker:  The government may consider the results of this study and keep the law for workers' maximum overtime of 30 hours per month Because working less than 30 hours a month will make workers retain high engagement with the company  There should be a clear benefit system for all types of insurance as well as pensions for workers Organizations should show their long-term commitment and job stability to workers and explain clearly their benefit in the future  Organizations like unions or managers themselves should have activities that are more concerned about the spiritual life of workers The company should celebrate some union activities such as sport competition, small trip for workers in order to improve solidarity and make them engaged to the company 53 5.4 Limitation and future research direction The scope of the research is quite narrow The research aims to worker in Vietnamese manufacturing companies, so the research results may not be accurate in other contexts, when the economy is more developed or more primitive, or conducted in companies that have a different business model than manufacturing Other author can conduct similar studies in other contexts to retest the above relationships and compare with these results Research objects is aim for workers This object has feature different from other high-qualified employees in terms of demands, perceptions, education, mind set, behavior, etc Therefore, research results when applied to other objects may be biased.The sample is only 139 respondents Even it reach minimum standard for measurement, it is still quite small and narrow To avoid the impact of demographic factors on the study subjects, target respondent are female workers, under 30 years old Therefore, when the research object is expanded, the results may change The further research direction may be to test the model with a wider respondent to see how the demographic factor affects the relationships in the model In JDR model, burn out and engagement also play a role of mediator between job characteristics and organizational outcome Job demand buffers the impact of job resource and engagement, while job resource meditates negative affect of job demand on burn out Other authors can also delve into these mediating and moderating effect In addition, recently Bakker already mentioned the influence of personal resource on some relationships on JDR model, people interested in this topic can also study the impact of personal resources on working overtime and related relationships 54 REFERENCE Alexander, J., Lichtenstein, R., Oh, H., & Ullman, E (1998) A causal model of voluntary turnover among nursing personnel in long-term psychiatric settings Research in Nursing & Health, 21(5), 415-427 Allen, D.G., Weeks, K.P., & 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What is your average overtime hours? Less than 2.5 hours per week (Less than 10 hours per month) From 2.5 - hours per week (From 10 -20 hours per month) From - 7.5 hours per week (From 20 -30 hours per month) From 7.5 - 10 hours per week (From 30 -40 hours per month) From 10 - 12.5 hours per week (From 40 -50 hours per month) Over 12.5 hours per week (Over 50 hours hours per month) From questions to 26, When thinking about your work, evaluate your thoughts on the following statements by choosing a scale from to (ascending with agree level or frequency level) as below: Level of agree Strongly disagree ==========> Strongly Agree Strongly disagree Disagree Neutral Agree Strongly Agree 61 Level of Weakest Frequency frequency ==========> Strongest Frequency Rarely Never Sometimes Often (several (about several (about several times a week) times a year) times a month) My job inspires me Never 2.Rarely Sometimes Often Always Always I am actively looking for a job outside my place of employment Strongly disagree 2.Disagree Neutral 4.Agree Strongly agree I am proud on the work that I Never 2.Rarely Sometimes Often Always I am enthusiastic about my job Never 2.Rarely Sometimes Often Always When you think about your work overall, how often you feel physically weak/sickly? Never 2.Rarely Sometimes Often Always When you think about your work overall, how often you feel helpless? Never 2.Rarely Sometimes Often Always When you think about your work overall, how often you feel trapped? Never 2.Rarely Sometimes Often Always When you think about your work overall, how often you feel tired? Never 2.Rarely Sometimes Often Always 10 When I get up in the morning, I feel like going to work Never 2.Rarely Sometimes Often 62 Always 11 As soon as I can find a better job, I’ll leave my organization Strongly disagree 2.Disagree Neutral 4.Agree Strongly agree 12 I get carried away when I’m working Never 2.Rarely Sometimes Often Always 13 When you think about your work overall, how often you feel hopeless? Never 2.Rarely Sometimes Often Always 14 I feel happy when I am working intensely Never 2.Rarely Sometimes Often 15 I often think of quitting my job at my organization Strongly disagree 2.Disagree Neutral 4.Agree 16 At my job, I feel strong and vigorous Never 2.Rarely Sometimes Often Always Strongly agree Always 17 When you think about your work overall, how often you feel disappointed with people? Never 2.Rarely Sometimes Often Always 18 When I get up in the morning, I feel like going to work Never 2.Rarely Sometimes Often Always 19 I think I’ll still be working at my place of employment years from now Strongly disagree 2.Disagree Neutral 4.Agree Strongly agree 20 When you think about your work overall, how often you feel worthless/like a failure? Never 2.Rarely Sometimes Often Always 21 When you think about your work overall, how often you feel “I’ve had it”? 63 Never 2.Rarely Sometimes Often 22 I am seriously thinking about quitting my job Strongly disagree 2.Disagree Neutral 4.Agree Always Strongly agree 23 When you think about your work overall, how often you feel depressed? Never 2.Rarely Sometimes Often Always 24 When you think about your work overall, how often you feel difficulties sleeping? Never 2.Rarely Sometimes Often Always 25 I get carried away when I’m working Never 2.Rarely Sometimes Often Always 26 I am immersed in my work Never 2.Rarely Sometimes Often Always 27 .What is your gender? A Male B Female 28 How old are you? A Under 30 B 30-45 years old C Over 45 years old 29 What is your occupation position? A Worker B Staff C Manager D 64 30 What is your current marital status ? A Married B Not married 31 What kind of company you work for? A Manufacturing / assembling / processing company B Not a manufacturing / assembly / processing company 32 According to Vietnamese law, normal working hours are hours per day, days per week, exceeding that time is overtime The regular overtime wage is 150% of the normal working hour wage The night shift salary is added 30% compared to normal Do you receive overtime pay under the law? A Yes B No 65 ... the context of controversy surrounding the issue of increasing maximum overtime hour in Vietnam, the study was conducted to clarify the effects of overtime on workers' intention to leave their... aims to explain the relationship between overtime hour, burnout, engagement and intention to leave organization The study was conducted by online surveys targeting workers who are working in manufacturing. .. applied the JDR model to clarify the role of working overtime on burnout, engagement and organizational outcome Relationship between working overtime and burnout Leiter (1997) viewed burnout in terms