UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business HOANG THI KIM KHANH RELATIONSHIP BETWEEN COMMUNICATION SATISFACTION AND AFFECTIVE COMMITMENT - AN EMPIRICAL STUDY IN THE VIETNAMESE BANKS MASTER THESIS OF BUSINESS ADMINISTRATION SUPERVISOR: DR. NGUYEN THI NGUYET QUE HO CHI MINH CITY – 01/2014 TIEU LUAN MOI download : skknchat@gmail.com UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business HOANG THI KIM KHANH RELATIONSHIP BETWEEN COMMUNICATION SATISFACTION AND AFFECTIVE COMMITMENT - AN EMPIRICAL STUDY IN THE VIETNAMESE BANKS ID: 22110029 MASTER THESIS OF BUSINESS ADMINISTRATION SUPERVISOR: DR. NGUYEN THI NGUYET QUE HO CHI MINH CITY – 01/2014 TIEU LUAN MOI download : skknchat@gmail.com Running head: Relationship between communication satisfaction and affective commitment – an empirical study in the Vietnamese banks i Relationship between communication satisfaction and affective commitment – an empirical study in the Vietnamese banks Hoang Thi Kim Khanh 19th January, 2014 ISB Research Committee TIEU LUAN MOI download : skknchat@gmail.com Relationship between communication satisfaction and affective commitment – an empirical study in the Vietnamese banks ii ACKNOWLEDGEMENTS I would like to thank my supervisor Dr Nguyen Thi Nguyet Que for the guidance, patience and support during my thesis’s writing period. I am also grateful to all ISB members who helped me with necessary materials and paper submission.
I would like to appreciate all my friends and responders for their contribution to my survey. Especially, I would like to give my special thanks to my family who always encourage me throughout my life. Hoang Thi Kim Khanh Ho Chi Minh city, 20th December, 2013 TIEU LUAN MOI download : skknchat@gmail.com Relationship between communication satisfaction and affective commitment – an empirical study in the Vietnamese banks iii ABSTRACT The main purpose of this study is figure out the relationship between communication satisfaction’s factors (personal feedback, communication climate, horizontal communication, supervisory communication) with affective commitment in Vietnamese banking industry. These factors are tested in previous studied in the world, and the previous result indicated that all of them have a positive impact to commitment.
After conducting a research, collecting and analysing 225 employees in many banks in Ho Chi Minh City, the result indicated that first, the horizontal communication was divided into new components, horizontal formal communication and horizontal informal communication. Second, only communication climate, supervisory communication and horizontal formal communication affects to affective commitment. Third, communication climate is a strongest factor contributes to employee affective commitment. Personal feedback and horizontal informal communication do not have influences on affective commitment in Vietnam banking industry.
Although having a few limitations, but this study highlights the importance of communication satisfaction in workplace. It is necessary for banking managers to develop good relationships with their employees to improve employee affective commitment. The conclusion of this study discusses the practical implications for managers and the recommendation for future research. TIEU LUAN MOI download : skknchat@gmail.com Relationship between communication satisfaction and affective commitment – an empirical study in the Vietnamese banks iv TABLE OF CONTENT ACKNOWLEDGEMENTS .iii LIST OF TABLES .vii LIST OF FIGURES .viii CHAPTER 1: INTRODUCTION .2 RESEARCH OBJECTIVES AND QUESTIONS .3 SIGNIFICANT OF THE STUDY .4 RESEARCH SCOPE AND METHODOLOGY .4 CHAPTER 2: LITERATURE REVIEW AND HYPOTHESIS .1 Definition of communication .2 Definition of communication satisfaction .3 Dimensions of communication satisfaction .2 ORGANIZATIONAL COMMITMENT AND AFFECTIVE COMMITMENT .1 Definition of organizational commitment .2 Dimensions of organizational commitment.3 COMMUNICATION SATISFACTION AND ORGANIZATIONAL COMMITMENT .4 PROPOSED MODEL AND HYPOTHESIS .1 Personal feedback and affective commitment .2 Communication climate and affective commitment.14 TIEU LUAN MOI download : skknchat@gmail.com Relationship between communication satisfaction and affective commitment – an empirical study in the Vietnamese banks v 2.3 Horizontal communication and affective commitment .4 Supervisory communication and affective commitment .5 RESEARCH MODEL AND HYPOTHESIS .1 RESEARCH DESIGN PROCESS.1 Purpose of pilot study .2 Method of pilot study .3 Result of pilot study .5 DATA ANALYSIS TECHNIQUE .2 Exploratory factor analysis (EFA) .3 Multiple regression analysis .26 CHAPTER 4: DATA ANALYSIS AND RESULTS .29 TIEU LUAN MOI download : skknchat@gmail.com Relationship between communication satisfaction and affective commitment – an empirical study in the Vietnamese banks vi 4.2 Exploratory factor analysis .3 MULTIPLE REGRESSION ANALYSIS .2 Result of regression analysis .40 CHAPTER 5: DISCUSSION AND CONCLUSION .1 DISCUSSION OF FINDINGS .4 LIMITATIONS OF THE STUDY.5 RECOMMENDATIONS FOR FUTURE RESEARCH.64 TIEU LUAN MOI download : skknchat@gmail.com Relationship between communication satisfaction and affective commitment – an empirical study in the Vietnamese banks vii LIST OF TABLES Table 01: Scale of personal feedback .19 Table 02: Scale of communication climate .19 Table 03: Scale of horizontal communication .20 Table 04: Scale of supervisory communication .20 Table 05: Scale of affective commitment .21 Table 06: Cronbach’s Alpha Reliability Coefficient .28 Table 07: Reliability analysis .30 Table 08: Summary of Cronbach’s Alpha .32 Table 09: KMO and Barrtlett’s Test .33 Table 10: Total Variance Explained in EFA process .34 Table 11: Factors loading .35 Table 12: Model Summary .60 Table 15: Model Statistics .39 Table 17: Result of testing hypothesis .40 TIEU LUAN MOI download : skknchat@gmail.com Relationship between communication satisfaction and affective commitment – an empirical study in the Vietnamese banks viii LIST OF FIGURES Figure 01: A conceptual model .16 Figure 02: Research design process .17 Figure 03: A new conceptual model .37 Figure 04: Overall regression plot .62 Figure 05: Histogram of Affective Commitment .62 Figure 06: Normal P-P Plot of Affective Commitment .63 TIEU LUAN MOI download : skknchat@gmail.com Relationship between communication satisfaction and affective commitment – an empirical study in the Vietnamese banks 1 CHAPTER 1: INTRODUCTION The first chapter presents the research background, research questions, research objectives, value of the research and thesis structure.1 Background The key factor for any achievement of one organization is not only the huge capital but also the power of human.
In the analysis of Mathieu and Zajac (1990) states that organizational commitment is an antecedent of job performance, intention to leave, lateness and turnover ; moreover, according to Cooper-Hakim and Viswesvaran (2005) organizational commitment is negatively related to turnover; according to Memari, Mahdieh & Marnani, (2013), organizational commitment is positively related to job performance. Therefore, employee’s organizational commitment plays an important role to prevent the potential risk of human resource management. Communication is very important to all of organizations in the world. Effective communication is key point for organizational success.
All of the activities in one organization involve with the communication. Most of the managers focus to do business and only a few of them take care of how to communicate effectively to create a smooth working condition. A well-informed person have better attitude than a less-informed person. Many kinds of verbal and nonverbal communication help in moulding employee’s attitudes.
Hence, employee satisfaction with communication at work is very important to all organization. Previous studies implicate that communication satisfaction is positively related to organizational commitment (Putti et al, 1990; Varona, 1996, Carrie`re & Bourque, 2009). Therefore, there exists a correlation between communication satisfaction and organizational commitment. Besides, according to Downs and Hazen (1977), communication satisfaction has eight dimensions.
Based on the result of previous studies (Putti et al, 1990; Down, 1991; Potvin, 1991; Varona, 1996, only four factors (personal feedback, horizontal communication, TIEU LUAN MOI download : skknchat@gmail.com Relationship between communication satisfaction and affective commitment – an empirical study in the Vietnamese banks 2 supervisory communication, and communication climate) have strong relationship with organizational commitment. Banking industry is one of the most important industries in Vietnam and banking business is very challenging. However, according to “Cafebiz electronic magazine” in current situation of banking industry, the employee’s salary and benefit are cut off. Moreover, according to Ánh Hồng & Hải Đăng (2013) on the “tuoi tre online news”, the banks also displace employee, give the employee the huge credit target, find out the small mistake of employees to make a reason for laying off the employees.
All of these activities put a pressure to the staffs who are working at the banks. The manager spend a lot of time to implement the communication techniques; besides, in the current situation, the huge credit target affects to managers and supervisors; therefore, the pressure from the credit target make supervisor’s communication not good enough when facing with the staffs. Problem in supervisory communication happens. Besides, the way one bank displaces and lays off the employees creates the high competition between the staffs, that lead to the healthy competetion or unhealthy competetion between employees.
Therefore the problem of horizontal communication happens. Moreover, the banks focus to the small mistake of employees for finding out the reason to lay off them, that make the personal feedback not objective and accuracy; therefore, the problem of communication on personal feedback happens. The pressure from those activies above lead to a unhealthy and pressuring communication climate. People working in the pressure environment with the unhealthy atmosphere at workplace.
As the result, the problem of communication climate happens. As mentioned above, previous researches figure out that communication satisfaction positively impacts to organizational commitment. Hence, there is an issue that in Vietnamese banking industry whether communication satisfaction affects to organizational commitment or not, whether four factors (personal feedback, horizontal communication, supervisory TIEU LUAN MOI download : skknchat@gmail.com Relationship between communication satisfaction and affective commitment – an empirical study in the Vietnamese banks 3 communication, and communication climate) affects to organizational commitment or not. Lack of communication satisfaction among banks in Vietnam may contribute to a low organizational commitment.
Therefore, this paper will figure out the relationship between four communication satisfaction’s factors to organizational commitment in the Vietnamese banks.2 Research objectives and questions The consequences of ineffective communication in an organization may lead to a lack of employee commitment. In contrast, the effective communication may be considered a reason to stay with the organization. In research of Carrie`re & Bourque (2009) and study of Meyer and Allen (1990) mentions that only affective commitment is the most important factors reflect organizational commitment strongly. Therefore, the purpose of this study is exploring the impacts of four dimensions of communication satisfaction (personal feedback, horizontal communication, supervisory communication, and communication climate) to one important type of organizational commitment – affective commitment.
This research questions are 1) What are the impacts of personal feedback, horizontal communication, supervisory communication, and communication climate to affective commitment? 2) How do they influence to the affective commitment? 1.3 Significant of the study The research provides results of empirical research in employees’ attitudes towards particular communication satisfaction and organizational commitment. The relationship between some dimensions of communication satisfaction and affective commitment is explored too. TIEU LUAN MOI download : skknchat@gmail.com Relationship between communication satisfaction and affective commitment – an empirical study in the Vietnamese banks 4 This study’s exploration is new theoretical topic in Vietnam. The theoretical value is providing the theoretical knowledge about the role of communication satisfaction in a relationship with organizational commitment in Vietnamese context.
Regard to the managerial implications, this finding will help managers of the banks in Vietnam understand obviously about the components of communication satisfaction affect to their employees’ affective commitment, whereby they can improve their human resource management to increase the employees’ commitment. The practical value of this paper is that the data analysis of this research may let the manager know how much the employees take care of communication at workplace. At the point of view of employee, the employer may have the strategies to avoid the potential risk related to communication satisfaction 1.4 Research scope and methodology This research just focuses on employees who work at least one year in their current bank. Besides, they do not work in a managerial position.
The area of this study is only in Ho Chi Minh City, and Long An province. The methodologies of this research are quantitative method and qualitative method. The pilot study of qualitative method is used to check the meaning and to edit the Vietnamese word of the measurement scale in order to make a lager survey in Vietnamese context.