Fifth, most changes in employee engagement can be explained due to changes
in dimensions of organizational culture. The characteristics of controlling variables
contribute to employee engagement with the organization in Vietnamese enterprises
are insignificant controlling variables “Government enterprises” (β = -0,05; P<0,05);
shows that foreign enterprises have a lower degree of engagement than in private
area, the level difference is negligible. When considering the impact of controlling
variables on “employees’ loyalty”, there are individual controlling variables “Working
time at enterprises” has meaning and has a positive effect. For controlling
variables of enterprises, there is the variable " Size of enterprises " has the
meaning and has a positive effect; when comparing the impact of controlling
variables in enterprises on “employees’ loyalty”, controlling variables “Government
enterprises” (β = -0,060); which means that employees in foreign enterprises have
lower loyalty level employees in private enterprises, but the difference is low; the
variable “Foreign enterprises” (β = - 0,054); showed that employees in Foreign
enterprises has lower level of loyalty of employees than private enterprises, but the
difference is low. Considering the impact of controlling variables on “employees’
pride with the organization”; controlling variables “Government enterprises” (β = -
0,055; P<0,05); which means that employees in foreign enterprises have lower pride
level than employees in private enterprises, the difference is lo
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of each aspect of organizational culture
affects each employee engagement elements through a sense of voluntariness and a
cohesive behavior that gives human resources managers a clearer view of the
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research direction that needs to be supplemented, further researched to have specific
directions, solutions, the most effective in developing organizational culture
positively to improve employee engagement with the organization.
Third, there is little research on employee engagement with the organization under
perspective of three elements of engagement “employees’ pride, effort and loyalty”.
Previous research in Vietnam mainly stop in researching organizational commitment,
engage with the organization; focus on employees' psychological and emotional state.
Fourth, however, is expressed quite clearly through management practices and
enterprise managers and is an aspect that constitutes organizational culture clearly in
Vietnamese enterprises; but very few studies have addressed the
cultural expression through the dimension “Management practices” impact on
employee engagement with the organization in Vietnamese enterprises. According to
Sarros et al. (2008) “management practices are part of organizational culture and
are inseparable” and leaders are like “an architect who shapes organizational
culture and can change organizational culture ". Management practices are how
leaders show their role, how they communicate, act, and treat employees according to
their perceptions.
CHAPTER 2: THEORETICAL BASES AND RESEARCH MODEL OF THE
IMPACT OF ORGANIZATIONAL CULTURE ON EMPLOYEE
ENGAGEMENT WITH THE ORGANIZATION
2.1 Theoretical bases
2.1.1 Concepts related to organizational culture
Some research emphasized the dimensions of values and behavior in
organizational culture. Some research on the impact of organizational culture to
improve work efficiency. Some research focus on the aspect of organizational culture
manifestation through behavioral behavior and practice activities.
The concept of organizational culture is diverse, reflecting the new and rich
research direction; the thesis approach and use research model of organizational
culture by Recardo & Jolly (1997); Robbins & Judge (2013) to be the basis of the
research; “organizational culture defines a system of values expressed through
behavior, practical activities and some of the management policies of the
organization which are shared and acted by employees”.
2.1.1 The concept related to employee engagement to the organization
The concept of employee engagement is becoming increasingly important in
research about the organization and behavior of employees in the workplace. Some
research refers to engagement through emotion and behavior. Some research
emphasized the influence of employee engagement values with the organization on
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the performance of the organization. Some research emphasized elements of
engagement, including specific dimensions.
The thesis approaches the concept of employee engagement with the
organization by Mowday, Steers & Porter (1979), inherited and supplemented by
research by Tran Kim Dung (2006); emphasized employee engagement elements
with the organization “Engaging employees with the organization is the voluntariness
of the employees, a sense of effort, pride and willingness to be loyal to the
organization, helping to promote the operational efficiency of the organization.”
2.2 Research model and hypotheses
2.2.1 Research model
According to resource-based enterprise development theory, enterprises can
achieve competitive advantage, improve their competitiveness if they know how to
build and exploit and use effectively resources, in which there are human resources.
How to make human resources valuable, rare, difficult to copy and replace is the
issue that enterprises really care about. Focus on building management systems,
control and build organizational culture, design the organization structure and the
management practices of human resources will help enterprises consolidate and
strengthen human capital and social capital, contributing to improving the
organization’s capacity and creating competitive advantage for enterprises (Barney &
Clark, 2007). Organizational helps to reinforce and strengthen the social capital of
enterprises (loyalty, commitment and trust of employees to the organization). This
theory is considered to be the base theory to explain the establishment of research
model of the thesis.
Management practices
Future planning
Innovation and risk-taking
Decision making
Personal
- Gender
- Age
- Academic
level
- Job position
- Working
period
Employee
engagement
with the
organization
Efforts
Pride
Loyalty
Dimensions of
organizational
culture
Training and development
Rewards and recognition
Teamwork
Communications in the
organization
Enterprises
- Scale
- Areas of
work
- Type of
enterprises
10
Figure 2.1: Research model
The model has a combination of independent variables according to theory by
Recardo & Jolly (1997); Robbins & Judge (2013); the dimension of management
practices is discovered and added. The dependent variable is approached according to
the theory by Mowday, Steers, & Porter (1979), with inheritance and addition from
research by Robinson et al., (2004); Tran Kim Dung (2006); Markos & Sridevi, 2010;
Soane et al., (2012).
2.2.2. Research hypotheses
H1. Organizational culture has a positive effect on employee engagement with
the organization
H1a; H1b; H1c: organizational culture has a positive effect on alternately
“employees’ loyalty, pride and effort”
H2. The culture dimension “organizational communications” has a positive
effect on employee engagement with the organization
H2a; H2b; H2c: The culture dimension “organizational communications” has a
positive effect on alternately “employees’ loyalty, pride and effort”.
H3. Organizational culture focusing on the dimension “Training and
development” has a positive effect on employee engagement with the organization
H3a; H3b; H3c: organizational culture focusing on the dimension “Training and
development” has a positive effect on alternately “employees’ loyalty, pride and
effort”.
H4. Organizational culture focusing on the dimension “Rewards and
recognition” has a positive effect on employee engagement with the organization
H4a; H4b; H4c: organizational culture focusing on the dimension “Rewards and
recognition” has a positive effect on alternately “employees’ loyalty, pride and
effort”.
H5. The dimension “Teamwork” culture has a positive effect on employee
engagement
H5a; H5b; H5c: organizational culture focusing on the dimension “Teamwork”
has a positive effect on alternately “employees’ loyalty, pride and effort”.
H6. Organizational culture focusing on the dimension “Future planning” has a
positive effect on employee engagement with the organization
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H6a; H6b; H6c: organizational culture focusing on the dimension “Future
planning” has a positive effect on alternately “employees’ loyalty, pride and effort”.
H7. The dimension “Innovation and risk-taking” has a positive effect on
employee engagement
H7a; H7b; H7c: organizational culture focusing on the dimension “Innovation
and risk-taking” has a positive effect on alternately “employees’ loyalty, pride and
effort”.
H8. The dimension “Decision making” has a positive effect on employee
engagement
H8a; H8b; H8c: organizational culture focusing on the dimension “Effective
decision making” has a positive effect on alternately “employees’ loyalty, pride and
effort”.
H9. Organizational culture focusing on “Management practices” has a positive
effect on employee engagement with the organization.
H9a; H9b; H9c: organizational culture focusing on the dimension “Management
practices” has a positive effect on alternately “employees’ loyalty, pride and effort”.
CHAPTER 3: RESEARCH METHOD AND DESIGN
3.1. Research process
Research process is developing by main steps as in Figure 3.1
Results Tools Implementation steps
Research overview Preliminary model /
scale
Quantitative research
(n = 711employees)
Cronback’ Alpha,
EFA Official scale
Qualitative research
(Specialists, High-level
leaders, middle-level
managers, employees)
In-depth
interview,
observation
Adjusted model / scale
Hypotheses testing
Peason, multiple
regression
analysis.
Conclusion
Figure 3.1: Overall research process
12
3.2. Research design
3.2.1. Research method
With proposed and chosen research design, the author proceeded in the
following order: Step 1- Desk research; Step 2- Conducting interviews; Step 3-
Large-scale survey; Step 4- Analyzing the data to give results and recommendations
for Vietnamese enterprises.
3.2.2. The process of developing questionnaire
The process of developing questionnaire was proceeded in the following order:
Questionnaire build after research overview, in which dimensions of organizational
culture and employee engagement with the organization are main contents.
Simultaneously, based on the discovery of the thesis on the dimension “Management
practices” in the context of Vietnam.
A mock questionnaire was conducted with 3 specialists, 3 high-level leaders, 6
managers of enterprises and 8 employees in enterprises to comment on the logic,
difficulty and ease of the question content.
3.2.3 Build the scale
To develop the scale, the thesis based on discussion in reality, comments from
employees, managers, high-level leaders and recommendations from specialists so
that the questionnaire is suitable with Vietnamese context.
3.2.4 Research sample
The thesis conducted surveys with employees in Vietnamese enterprises, chose
samples by using the stratified purposeful sampling method.
Step 1, the thesis conducted selection in 3 survey areas, which are Northern,
Central and Southern
Step 2, the thesis selected enterprises and try to ensure the representativeness
of the survey sample with selection criteria (The criteria of enterprises are based on
dominant equity; Criteria on the main field of activity; Criteria on the size of
employees of enterprises; the criteria of the operation time of enterprises).
Step 3, the thesis sent questionnaire via Email channel, online surveys are
designed in GoogleDoc, paper questionnaire to employees. Due to difficult access to
the response rate of Enterprises, the author uses additional sampling methods of
convenience, through the suggestion and recommendation of interviewees, through
friends, coworkers in Enterprises.
The number of valid survey questionnaires used in the analysis were
711 surveys. In which, the number of surveys in the Northern area were about 6%
13
higher than expected, while surveys in Central area were about 92% higher than
expected, the declines in Central also corresponded to the increase of the Northern
area. However, basically the total number of surveys were distributed evenly across
the three regions, and the sample was acceptable for analysis.
3.3. Qualitative research
3.3.1 In-depth interview objectives
The objectives of in-depth interview are to test and screen the concept of
independent variables in the recommended thesis model and initially specify the
relationship between independent variables and dependent variables as the foundation
for hypothesis and research model. In-depth interview helps the thesis confirm the
appropriate factors to the context of Vietnam and preliminary assessment of the
extent of the impact of factors to employee engagement with the organization. Next,
the objective of in-depth interview is to test the rationality of the scale.
3.3.2 In-depth interview method
3.3.2.1 In-depth interview subjects
Interviewees consist of 20 people who are representatives from enterprises,
specialists with knowledge about organizational culture and people working directly
on human resources. The interview was conducted with 3 leaders (deputy directors
and directors), 6 middle-level managers (managers and deputy managers); 8
employees in enterprises and 3 specialists teaching Human Resources Management.
3.3.2.2 Collection and processing of data
In-depth interview, the thesis designed a discussion outline, including kinds of
effective interview questions (open, have more choice,) contents related to the
models and scales. The thesis asked interviewees about organizational culture (i) how is
organizational culture understood; (ii) role of organizational culture in enterprises
operations; (iii) Expressive dimensions of organizational culture in behavior and activities
of the organization. For contents about employee engagement with the organization, the
thesis exchanged with interviewees about (i) their perceptions of engagement; (ii)
elements constituting employee engagement; (iii) expected relationship between the
impact of organizational culture on employee engagement with the organization; (iv) and
what enterprises do to improve employee engagement with the organization.
3.4. Quantitative research
3.4.1 EFA analysis and scale testing
After discovering analysis and testing the scales, dimensions/measurement
variables in organizational culture and employee engagement is confirmed whether it is
suitable with context of Vietnamese enterprises. This data processing part is conducted
based on the survey questionnaire and the analytical and evaluation process as follows:
3.4.2 Descriptive statistical analysis method
This method is used to analyze the situation of Vietnamese enterprises, analyze
research sample, organizational culture and employee engagement with the
14
organization in enterprises. This method is also used to analyze the correlation
between dimensions of organizational culture and employee engagement with the
organization. Descriptive statistical analysis will use the tables and figures to describe
variables or the relationship between variables to achieve the research objectives.
3.4.3 Regression analysis method
Based on the theory and model used to measure the impact of organizational
culture on employee engagement with the organization, the thesis used the following
estimation model:
= + + +
(1)
In which, Y is employee engagement with the organization which is measured
by three dimensions “(i) Loyalty, (ii) Pride, (iii) Effort”. X is a vector that
includes eight aspects of measuring organizational culture. Z is the vector
representing the characteristics of the individual employees, F is the vector
representing the characteristics of enterprises and
is the random error.
The estimation model in Equation (1) is also used to estimate the impact
of eight dimensions of organizational culture to three elements of employee
engagement: “Loyalty”; “Pride” and “Effort”. On that basis, the thesis considers how
the dimensions of organizational culture affect employee engagement with the
organization in general and the elements employee engagement with the organization.
CHAPTER 4: RESEARCH RESULTS OF THE IMPACT OF
ORGANIZATIONAL CULTURE ON EMPLOYEE ENGAGEMENT WITH
THE ORGANIZATION IN VIETNAMESE ENTERPRISES
4.1 Overview of Vietnamese enterprises
Vietnamese enterprises are increasing in number, diversifying forms of capital
ownership, have multi-sector expansion activities... Vietnamese enterprises face
many challenges in management, branding, communication strategy and organizational
culture; Vietnamese enterprises gradually define their own characteristics, which are
considered their own identities to develop organizational culture effectively; Some
Vietnamese enterprises consider organizational culture as endogenous resources, and is
competitive advantage; organizational culture has been widely deployed in many
enterprises.
4.2 Qualitative research results
4.2.1 In-depth interview results
From qualitative research, dependent and independent variables were
investigated, checked and screened. Most of the respondents gave the idea to adjust
the words and the content of questionnaire, specifically considering the duplication of
variables with similar contents and meanings.
4.2.2 Some of the statements are discoverable in in-depth interview
15
During the in-depth interview process, the thesis noted a lot of ideas about
the dimensions of organizational culture and employee engagement with the
organization; also, the relationship between them. These are valuable ideas that open
interesting discoveries and build up the theoretical basis.
4.2.3 Some results after in-depth interview
(i) There is an adjustment of the research model, hypotheses; (ii) Adjust the scale
wording to be easier and clear to understand; (iii) Many interviewees view
“Management practices” as a factor that strongly influences employee engagement. The
author acknowledges this opinion and introduces it to a model for testing; (iv) some
findings help the author comment and contribute specific ideas in solutions and
recommendations.
4.3 Research sample and quantitative scale
4.3.1 Descriptive statistics research sample
The number of surveys used in the thesis was 711 surveys from 285
enterprises, in which in Northern were 291 surveys (accounting for 40.93%), Central
was 178 surveys (25.04%) and Southern was 242 surveys (34, 04%).
4.3.2 Descriptive statistics of the independent variables
The independent variables statistical results show that the answers to the
statements of the independent variables scale are quite diverse. The average value of
dimensions of organizational culture fluctuates from 2.992 to 3.945.
4.3.3 Descriptive statistics of the dependent variables
The dependent variables statistical results, the selected opinion for the
statements of the scale of sub-variables are diverse. The average value of dimensions
of employee engagement with the organization fluctuates from 2,866 to 3,754.
4.4 Test results of scale and correlation
4.4.1 Verifying the reliability of the scale
With the survey data, all the independent variable scales used have good
reliability; the lowest is Cronbach’s Alpha = 0,875 which is of the “effective decision
making” scale and the highest is Cronbach’s Alpha = 0,932 of the “Future
planning” scale.
With the dependent variable scale, Cronbach's Alpha coefficients are all
greater than 0.88. Specifically, the Cronbach's Alpha coefficient of loyalty variable is
0.941; pride is 0.938; effort 0.896.
Simultaneously, the correlation coefficients with the total variable of both the
independent and dependent variables were greater than 0.3, so the observed variables
all correlated well with the total variable.
4.4.2 Verifying the authenticity of the scale
16
Verify the authenticity of the employee engagement scale with the
organization, the KMO result is 0.932, satisfying the condition that KMO is greater
than 0.5 (Kaiser, 1974). Moreover, Bartlett test showed P < 5%. The
results of EFA analysis, all 16 observed variables were satisfactory. The total
explainable variance when the factor group is drawn is 76,472% (>50%).
Verify the authenticity of the organizational culture scale. KMO is 0,952
satisfies condition that KMO is greater than 0.5. Bartlett test showed P < 5%.
Moreover, the standard of variance extracted was 74,831% (>50%) showed that
these eight factors explained over 74,831% of the variability of the data.
4.4.3 Results of correlation test
The thesis used the Pearson correlation test to examine the relationship
between variables. The results of correlation coefficients show that the correlation
between the independent variable and the dependent variable is relatively reasonable
in both direction and degree. Specifically, the correlation coefficient values are both
greater than 0 and less than 0.8. The correlation coefficient values are
positive and significant (Sig is 0.000). In addition, the magnitude of the correlation
coefficients ensures that there is no multicollinearity phenomenon.
4.5. Regression results and hypothesis testing
4.5.1 Regression results
Experimental estimation model mentioned in model (1)
= + + +
(1)
The impact of organizational culture on employee engagement with the
organization is showing the results of the multivariate regression model,
shown in Table 4.19.
Table 4.19: Estimated results of the impact of organizational culture on employee
engagement in the organization
Variables
Employee engagement
with the organization VIF
β Sig.
Gender 0,013 0,511 1,085
Age -0,034 0,158 1,621
Academic level -0,003 0,881 1,153
Work position -0,027 0,235 1,462
Working time at enterprises 0,029 0,186 1,408
Years of operations 0,017 0,411 1,178
Enterprise size 0,011 0,582 1,182
17
Variables
Employee engagement
with the organization VIF
β Sig.
Agriculture -0,020 0,345 1,315
Services 0,003 0,885 1,376
Government enterprises -0,050** 0,014 1,157
Foreign enterprises -0,023 0,244 1,111
Organizational communications 0,141*** 0,000 1,553
Training and development 0,155*** 0,000 1,683
Rewards and recognition 0,130*** 0,000 1,694
Effective decision making 0,102*** 0,000 1,842
Future planning 0,168*** 0,000 1,638
Innovation and risk-taking 0,207*** 0,000 1,621
Teamwork 0,101*** 0,000 1,775
Management practices 0,209*** 0,000 1,676
Number of observations 711
Adjusted R2 0,750
F 112,863***
The symbols *, ** and *** shows the significance level simultaneously at 10%, 5% and
1%.
Source: Calculated from the author’s survey data
Results in table 4.19 showed that characteristics of employees and enterprises
do not affect significantly to employee engagement with the organization in
Vietnamese enterprises. Organizational culture has a significant impact on employee
engagement with the organization (R2=0,750; F=112,863, p<000,1). It can be said that
75,0% variation of employee engagement with the organization is explained by
organizational culture.
Although organizational culture has a strong impact on employee engagement
with the organization, but the degree of the impact to the elements that make
up employee engagement with the organization is different.
Table 4.20: Estimated results of the impact of organizational culture on
employee engagement dimensions with the organization in Vietnamese
enterprises
Variables
Loyalty Pride Effort
Model 1 Model 2 Model 3 Model 4 Model 5 Model 6
18
Variables
Loyalty Pride Effort
Model 1 Model 2 Model 3 Model 4 Model 5 Model 6
Gender -0,019 0,010 -0,067* -0,023 0,037 0,050
Age -0,012* -0,054 0,023 0,005 -0,034 -0,035
Academic level -0,005 -0,019 0,012 0,010 -0,010 0,002
Work position -0,060 -0,042 -0,021 0,004 -0,060 -0,030
Working time at
enterprises 0,089** 0,058** 0,014 -0,009 0,042 0,025
Years of operations -,018 -0,017 0,065 0,042 0,043 0,015
Enterprise size 0,142*** 0,056** 0,095** 0,013 0,020 -0,047
Agriculture -0,032 -0,010 -0,043 -0,015 -0,049 -0,026
Services -0,062 0,011 -0,081* -0,004 -0,080 0,001
Government enterprises -0,020 -0,060** -0,025 -0,055** 0,016 -0,003
Foreign enterprises -0,093** -0,054** -0,051 -0,006 -0,041 0,006
MGT 0,120*** 0,171*** 0,050
MDT -0,005 0,212*** 0,178***
MKT 0,019 0,030 0,295***
MHQ 0,095*** 0,092*** 0,062
MDH 0,342*** 0,082*** -0,026
MDM 0,312*** 0,246*** -0,076**
MLV 0,071** 0,040 0,147***
MHV 0,106*** 0,201*** 0,214***
Number of observations 711 711 711 711 711 711
Adjusted R2 0,028 0,649 0,018 0,602 0,001 0,431
F-test 2,865 70,169 2,179 57,588 1,051 29,290
The symbols *, ** and *** shows the significance level simultaneously at 10%, 5% and 1%.
Source: Calculated from the author’s survey data
Results in table 4.20, the impact of the observational factors to employees’
loyalty makes sense. In model 1, R2 adjusted = 0,028; the model is statistically
significant.
In model 2, when considering the impact of organizational culture on
“employees’ loyalty to the organization”, the model has R2 adjusted = 0,649 (p <
0,001); the model is statistically significant and explains 64.9% of the “employees'
loyalty to the organization” fluctuation.
19
In model 3, the impact of the observational factors on “employees’ pride”
makes sense. The model has R2 adjusted = 0,018, P<0,05; The model is statistically
significant and explains 1,8% of the fluctuation in employees’ pride with the
organization.
In model 4, when considering the impact of organizational culture on
“employees’ pride with the organization”, the model has full s
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