MINISTRY OF EDUCATION AND TRAINNING UNIVERSITY OF ECONOMICS HO CHI MINH CITY ------------------- Nguyen Thang Long JOB SATISFACTION, EMPLOYEE’S PERCEPTIONS OF DIRECT MANAGEMENT’S DECISION-MAKING, TENURE, AND TURNOVER INTENTIONS: A CORRELATIONAL STUDY THESIS OF MASTER OF BUSINESS ADMINISTRATION Ho Chi Minh City – 2012 TIEU LUAN MOI download : skknchat@gmail.com MINISTRY OF EDUCATION AND TRAINNING UNIVERSITY OF ECONOMICS HO CHI MINH CITY ------------------- Nguyen Thang Long JOB SATISFACTION, EMPLOYEE’S PERCEPTIONS OF DIRECT MANAGEMENT’S DECISION-MAKING, TENURE, AND TURNOVER INTENTIONS: A CORRELATIONAL STUDY Subject: Master of Business Administration Code : 60340102 THESIS OF MASTER OF BUSINESS ADMINISTRATION SUPERVISOR: PhD. TRAN HA MINH QUAN Ho Chi Minh City – 2012 TIEU LUAN MOI download : skknchat@gmail.com A ACKNOWLEDGEMENTS I would like to acknowledge my Supervisor, Dr. TRAN HA MINH QUAN for his sympathy of my difficult condition in doing this study. His sympathy has encouraged me in going to the end of my journey of study.
I would also like to thank to all of my teachers and lecturers who have taught me during the course of MBA in The University of Economic Ho Chi Minh City. The new knowledge that I has learnt from this course will be the source of energy for me to go further on my career as long as my learning journey. I would like to acknowledge Ms. Thao, my best friend, who has convinced me to accomplish the study; and I would also like to thank all of my friends who have helped me to finish my survey.
I am sure in your current positions you receive less thanks than you deserve but I appreciate all of your help. Other thanks are for my family and my wife, who have helped me so much and convinced me to study and work hardly. Many thanks to my son, you are my power to overcome all difficulties in my life and give me the hopeful future. Nguyen Thang Long Ho Chi Minh City, December 31st 2012 Ho TIEU LUAN MOI download : skknchat@gmail.com B COMMITMENT I would like to commit that this thesis, “JOB SATISFACTION, EMPLOYEE’S PERCEPTIONS OF DIRECT MANAGEMENT’S DECISION-MAKING, TENURE, AND TURNOVER INTENTIONS: A CORRELATIONAL STUDY”, was accomplished based on my research seriously and independently.
The data was collected from some companies and organizations in Ho Chi Minh City, Vietnam by the author in reality. It has clear source. Thus, the data was trustful handled and conducted by the author. Nguyen Thang Long Ho Chi Minh City, December 31st 2012 Ho TIEU LUAN MOI download : skknchat@gmail.com i TABLE OF CONTENTS ACKNOWLEDGEMENTS.
B TABLE OF CONTENTS. i LIST OF TABLES. vi DEFINITION OF TERMS. vii CHAPTER 1: INTRODUCTION ./ Structure of Research .6 CHAPTER 2: LITERATURE REVIEW, THEORETICAL FRAMEWORK AND HYPOTHESES.
Leadership style delineation. 11 TIEU LUAN MOI download : skknchat@gmail. Top-down Leadership .25 CHAPTER 3: RESEARCH METHODOLOGY .3 Data Collection procedures .4 Data Analyze Procedure. Multiple Linear Regression Analysis:.
33 CHAPTER 4: ANALYSIS RESULT .2 Reliability and Validity of Scales: .3 Dimensions of Employee Turnover Intension .40 TIEU LUAN MOI download : skknchat@gmail.45 CHAPTER 5: CONCLUSIONS AND RECOMMENDATIONS. Summary of Findings:. Limitations and future research. I APPENDIX A: TURNOVER INTENSION SURVEY.
XI APPENDIX B: PLIS SURVEY. XII APPENDIX C: BẢNG KHẢO SÁT NHÂN KHẨU HỌC XIII APPENDIX D: BẢNG KHẢO SÁT GJS. XIV APPENDIX E: BẢNG KHẢO SÁT MỨC ĐỘ SẲN SÀNG TỪ BỎ CÔNG VIỆC. XV APPENDIX F: CRONBACH’S ALPHA ANALYSIS.
XVII APPENDIX G:EXPLORATORY FACTOR ANALYSIS (EFA). XX APPENDIX H:MULTIPLE LINEAR REGRESSION ANALYSIS (MLR). XXIII TIEU LUAN MOI download : skknchat@gmail.com iv LIST OF TABLES Table 1: The Sources of Measurement Scale ……………………………………30 Table 2: Rules of Thumb about Cronbach’s Alpha Coefficient Size ………….36 Table 5: AGE ……………………………………………………………………36 Table 6: TENURE ………………………………………………………………37 Table 8: KMO and Bartlett's Test …………………………………………….38 Table 9: Rotated Component Matrixa ………………………………….40 Table 10: KMO and Bartlett's Test …………………………………………….41 Table 11: Component Matrix a. 42 Table 13: Model Summary b …………………………………………………….45 Table 14: Coefficientsa ……………………………………………………………44 Table 15: Results of testing the hypotheses …………………………………….45 TIEU LUAN MOI download : skknchat@gmail.com v LIST OF FIGURES Figure 1: Perceived Variable Correlations for study…………………………… 24 Figure 2: the revised research model ……………………………………….…XXV Figure 4: Normal P-P plot of Regression Standardize Residual ……….…XXVI Figure 5: Scatterplot ……………………………………………………….XXVII TIEU LUAN MOI download : skknchat@gmail.com vi ABSTRACT The study of relationship between job satisfaction, tenure, perceptions, and turnover intension were carried out by lot of researchers in the world.
In Vietnam this research was not yet studied or less interested. The purpose of the quantitative correlational study was to highlight the variable relationships between tenure, perceptions, job satisfaction, and turnover intentions. The findings, through conducting statistical analysis, highlighted negative correlation between job satisfaction and turnover intentions and positive correlation between perceptions’ of managers and turnover intentions, which were both similar with previous researches. Besides that, this study is also highlighted a connection between tenure and turnover intensions.
This result is similar to previous researches but it is different with the study of Joel Nelson (2012). TIEU LUAN MOI download : skknchat@gmail.com vii DEFINITION OF TERMS Interpretation of terms in the following discussion can skew the intended meanings of the terminology used throughout the research analysis, and is the purpose of the following definitions of the key terms. The following definitions serve as a guide for the specific terms used throughout the paper unless otherwise stated in the text. General Job Satisfaction survey (GJS): The surveying tool fashioned by Kiefer, Harris-Kojetin, Brannon, Barry, Vasey, and Lepore (2005) focuses on capturing employee perceptions regarding job satisfaction and turnover intentions.
Integrity: The term integrity used synonymously with ethical throughout this document is a key element under investigation and centers on common beliefs of a group of individuals often framed by an organization in codes of conduct (Craig & Gustafson, 1998). Perceived Leader Integrity Scale (PLIS): The surveying tool fashioned by Craig and Gustafson (1998) centers on gathering data regarding the perceptions of workers regarding direct manager integrity and decisions made in the workplace. 17 Perceptions: The term perceptions refer to a belief of an individual and for the research, the perceptions under investigation relate to how agents of staffs perceive ethical behavior of his or her direct manager. Tenure: The term tenure refers to length of time with an organization, unlike the use of the term when considering academic terms for tenure.
For instance, Hansen (2008) described tenure in the terms of academia and the length of time is dependent on the institutional guidelines when a professor reaches tenure, whereas, Sarker et al. (2003) discussed tenure as the length of time with an organization. Following the definition by Sarker et al., the use of tenure refers to length of time, measured in days, months, or years with an TIEU LUAN MOI download : skknchat@gmail.com viii organization. For the research, the measurement for range of employment is in years.
Turnover intentions: The concept turnover intentions refer to the intent of an employee to leave his or her current position. The term turnover intention does not to convey that the individual has left the organization. Similar to the use of turnover intentions by Hart (2005), turnover intentions consist of active plans to leave an organization by an employee (Dixon & Hart, 2010). TIEU LUAN MOI download : skknchat@gmail.com 1 CHAPTER 1: INTRODUCTION 1./ Research Background The relationship between employees turnover intentions and leadership strategy have been studied, but gaps existed in the available literature regarding employee’s perceptions of direct managements’ decision-making and turnover intentions of employees, as noted by Craig and Gustafson (1998), specifically from employee perspective.
A problem arising from the gap was the inability of management to mitigate issues by addressing the moderating variables associated with employee turnover that include job satisfaction and perceptions regarding direct managers ethical decision-making. Ultimately, costs incurred by an organization have a direct correlation to turnover, and are attributable to variables including a decrease of job satisfaction because of negative perceptions regarding the decisions made by direct managers (Chhabra & Mishra, 2008). Previous researches in other countries have highlighted variable relationships that attribute to turnover, but gaps existed in the available literature regarding management’s effect on turnover, which is the vein of leadership study that needed further research to address ways that organizations and management could reduce employee intent to turnover employment. Outweighing the initial costs associated with hiring, training, and outfitting an individual employee are the long-term costs associated with the collective social perception of an organization with high turnover and poor employee relations (Back, 2007).
From a large-scale perspective, the previously mentioned phenomenon was common in expansionary initiatives by organizations that attempt to globalize operations but lose stakeholder confidence because of factors such as poor treatment of employees or other stakeholders (Fisher & Lovell, 2009). On a smaller scale, Wheeler, Gallager, Brouer, and Sablynski (2007) discussed the opinion that job fit is a contributing factor in job satisfaction and perceptions of workers, which are issues in a promote-from-within structure when turnover of employees is high. TIEU LUAN MOI download : skknchat@gmail.com 2 Wheeler et al. (2007) discussed the importance of job fit similar to the assertions of Chan (2006), and shared the perspective of how managers from external applicant pools are more successful at the direct management level in the ability to promote beyond the direct management role within an organization.
Contrary to the view of Wheeler et al. (2007) and Chan (2006), Sonnonberg (1994) discussed the relationships between employees and managers in the context that ethical decisions and the success of leaders are irrelevant regardless of job fit. The perception noted in recent literature suggesting ethical leadership is necessary and attributable to performance in the workplace thereby making managers moral leaders, which is applicable to the current research proposal (Collins, 2006). Taking the stance that job fit and employee perception of management’s decision-making are relevant to employee satisfaction and turnover intentions necessitates a thorough description of the specific problem (Craig & Gustafson, 1998)./ Problem Statement Many Researches for leadership strategies have been done and given a lot of information regarding leadership principles focuses on organizational culture, empowerment, and gaining buy-in from subordinates through measures including intellectual stimuli and adopting individualized considerations for employees (Hoffman & Frost, 2006).
For most of the companies, the problem of newly hired employees is that the cost associated with hiring, training, and supplying necessary tools and knowledge will adds strain to organizations (Chhabra & Mishra, 2008). The aforementioned issue led to the development of the specific problem that perceived ethical concerns with management decisions were increasingly attributable to employee turnover intentions (Motivated Employees, 2009). The use of a quantitative, correlational research design and method was to examine relationships, if any existed, between employees’ perceptions of management’s decision-making with turnover intentions in some companies or organizations in Ho Chi Minh City. The moderating variables chosen for the analysis included job TIEU LUAN MOI download : skknchat@gmail.com 3 satisfaction, employee perceptions, and tenure with companies or organizations, as prior research indicated the variables affected the decision to turnover intensions./ Purpose Statement The purpose of the quantitative, correlational study was to address the variable relationships, if any existed, between the independent variables including job satisfaction, tenure and employee’s perception with an organization and the dependent variable turnover intentions.
The study included an analysis of the variables as follows: (a) employee perception of leader’s ethical decision-making and turnover intention (b) employee tenure with an organization and turnover intention (c) job satisfaction to turnover intention of employees. The correlational structure of the analysis of variables was appropriate, as relationships between the independent variables and dependent variable turnover intention formulated the basis of the study./ Research Motivation Chhabra & Mishra, (2008) said that “Leadership between employees and a direct manager need to be improved relationships between the two groups.