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 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 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. KODO YOKOZAWA Dr. DO XUAN TRUONG Hanoi, 2020 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com ACKNOWLEDGMENT I would like to express my deep gratitude to Dr. Do Xuan Truong and Assoc.
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. LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 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 6 hypotheses describing relationships between 4 variables including working overtime hour, burnout, engagement and intention to leave organization are accepted. There are 4 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.
LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Table of Contents CHAPTER 1: INTRODUCTION. 3 CHAPTER 2: LITERATURE REVIEW .1 Working overtime hour .2 Intention to leave .3 Job Demand Resource model.5 Hypothesis development and conceptual model. 20 CHAPTER 3: RESEARCH METHODOLOGY. 23 i LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com CHAPTER 4: DATA ANALYSIS.
Confirmatory Factor Analysis (CFA) .1 CFA analysis of Engagement .2 CFA analysis of Burn out .3 CFA analysis of ITL: .3 Creating a representative variable:.4 Pearson correlation analysis .1 Regression Analysis of the impact of Working overtime hour on Burn out .1 Regression Analysis of the impact of Working overtime hour on Engagement.3 Regression Analysis of the impact of Engagement on Burnout .4 Regression Analysis of the impact of Burnout on Engagement .5 Regression Analysis of the impact of Burn out on ITL.6 Regression Analysis of the impact of Engagement on ITL .6 Hypothesis tested results. 48 CHAPTER 5: CONCLUSION AND DISCUSSION. 52 ii LUAN VAN CHAT LUONG download : add luanvanchat@agmail.4 Limitation and future research direction. 61 iii LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LIST OF TABLES Table 2.1: Definition of ITL .1: The content of measuring items .2: Likert scale of ITL .3: Likert scale of Burn out and Engagement .3: KMO and Bartlett's Test of Virgo .4: Total Variance Explained of Virgo .5: Component Matrix of Virgo (Rotated) .6 : KMO and Bartlett's Test of Dedication .7: Total Variance Explained of Dedication .8 : Component Matrix of Dedication (Rotated) .9: KMO and Bartlett's Test of Absorption .10: Total Variance Explained of Absorption .11: Component Matrix of Absorption (Rotated) .12 : KMO and Bartlett's Test of Burn out.14 : Component Matrix of Burn out (Rotated) .15: Total Variance Explained of Burn out (after removing B9) .16: Component Matrix of Virgo (Rotated, after remove B9) .17: KMO and Bartlett's Test of ITL .18 : Total Variance Explained of ITL.
37 iv LUAN VAN CHAT LUONG download : add luanvanchat@agmail.19: Component Matrix of ITL (Rotated) .20: Pearson Correlation statistic .21: Regression Analysis Summary of Working overtime hour and Burn out………….22: Regression Analysis Summary of the impact of Working overtime on Engagement .23: Regression Analysis Summary of impact of Engagement on Burn out……….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 .26: Regression Analysis Summary of impact of engagement on ITL .27: Hypothesis tested results. 48 v LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LIST OF FIGURES Figure 2.1: Relationship between Human Resource Value, ESE and Employee ITL (Tzafrir et al.2: Turnover intention model (Muliawan, 2009) .3: Model of Personality and Turnover Intention (Jeswani & Dave, 2012) .4: Theoretical model of turnover and INL among psychiatric nursing personnel (Alexander, 1998). 22 LIST OF GRAPH Graph 4.1: Linear graph of the impact of Working overtime on Burn out .2: Quadratic graph of the impact of Working overtime on Engagement. 43 vi LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LIST OF ABBREVATIONS CFA Confirmatory Factor Analysis DCM Demand-control model ERI Effort-reward imbalance model JDR Job Demand Resource Model ITL Intention to leave SPSS Statistical Package for the Social Sciences vii LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com CHAPTER 1: INTRODUCTION 1.1 Rationale: During the current period of economic development, working hours of workers are a very serious social issue.
The situation that workers have to work overtime exceeding policy is very common. Therefore, in many factories in Vietnam, there have been many strikes of workers to claim labor rights. The last days of May 2018, due to forced overtime 74 hours per month and having to work in an unsecured environment, 500 garment workers in Tam Dan industrial cluster (Phu Ninh district, Quang Nam) quit their jobs to claim benefits (Trung Kien, 2018). Many workers reported that, fin the period of time after Lunar new year, they were forced to work overtime from Monday to Friday, adding 3.5 hours a day, including Sundays.
This makes them extremely tired and exhausted. By the end of March 2018, nearly 4,000 workers of Yamani Dynasty Co. located in Nam Hong Industrial Cluster (Nam Truc District, Nam Dinh) simultaneously quit their job, asking the company's leaders to improve the working conditions, including non-overtime work over 300 hours/year (Van Dong, 2018). The leaving of workers greatly affect the business.
The interrupted factories and production lines cause production stagnation and significant damage. Recruiting new workers and retraining also cause a lot of loss of time and money. Besides, now government of Vietnam are arguing about making the rule about maximum hour for working overtime. Some of them think that: Currently, the total number of overtime hours of Vietnamese businesses is limited to about 300 hours - much lower than that of competing countries such as Bangladesh 408 hours, China 432 hours, Indonesia 728 hours (Le, 2019).
Lots of businesses also want to increase overtime hour to be able to keep up with the work progress. Moreover, in reality, many workers are willing to work overtime, and even look for jobs that give them opportunity to work overtime on the grounds that they want to earn extra income. 1 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com According to the results of the salary, income, expenditure and life survey of employees in 2018 announced by the Vietnam General Confederation of Labor and the Institute of Workers - Union, the basic monthly salary of employees (if they work full time, full working days) received an average of 4.67 million dong/month. However, workers have to spend a lot of money to ensure their life, while with many people the fixed salary is not enough to cover their own lives and their families so they need to work overtime and earn extra income.
In addition to basic wages (accounting for 84.4%), workers also receive overtime pay, attendance money and other allowances, supports from businesses. With this additional amount and basic salary, the average income of workers (excluding meals) increases to nearly 5.53 million VND / month. Many workers have given up unstable outside jobs to apply for jobs in industrial parks and have worked with the company for a long time because of stable salary, having conditions to increase their income if they work hard. On the other hand, they are regularly involved in activities to take care of their spiritual life organized by unions.
In addition to income, some people also feel that having more overtime will reduce the time pressure to achieve the target. Thus, Increasing maximum overtime hour is desired by both workers and businesses. This fact would suggests that working long hours may be the reason for factory workers to leave. However, how that effects workers‟ decision to leave is far from clear.
Overtime working provide workers with additional income and usually at higher pay rates. So why workers oppose overtime working and even leave? It can be seen that may overtime is affecting the employee‟s intention to quit in both negative and positive ways simultaneously. So far, there have been a number of studies explaining separately the correlation between overtime and burnout (Rupert, Hartman & Miller, 2013; Yoder, 2010; Leiter & Maslach, 1988; Maslach, Schaufeli & Leiter, 2001), employees‟ health (Johnson & Lipscomb, 2006) or overtime and satisfaction, engagement with businesses (Watanabe & Yamauchi, 2018), that lead to leaving intention. Most of 2 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com the above studies only looked at individual effects, either negative or positive on employees intention to leave, but were not generalized when both had simultaneous impacts on ITL.
This thesis investigates the effect of overtime working on Vietnamese worker‟s intention to leave through cause-effect relationship between working overtime, burn out, engagement and intention to leave .2 Research objective The objective of this research is to explain how working overtime will affect employees‟ intention to leave organization. The expected result can be implication for human resource departments or managers to apply and organize overtime hour appropriately to retain employees and achieve efficiency in their work for long term. The government also can refer this information to discuss and make more reasonable rules.3 Research scope The study was conducted in Vietnam and focused on the human resources who are workers at manufacturing companies. Currently, the issue of strikes and turnover of workers occurs mainly in manufacturing companies, the increase in overtime causing controversy for the government also revolves around this object.4 Research structure Chapter 1: Introduction This chapter introduces practical motivation, social problem that have inspired this research, research objective, research question and research scope.
Chapter 2: Literature review This chapter introduces previous research, fundamental theory related to the topic. This part also explains research model based on research gap and hypothesis development. 3 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.