INTRODUCTION
Research problems
Vietnam's banking sector is poised for significant growth in Asia, driven by ongoing economic expansion, increasing household incomes, and low banking service penetration Over the past two decades, government reforms have modernized the sector, aligning it with a more market-oriented economy Recent economic growth has heightened demand for banking services, leading to a surge in the use of credit and debit cards, as well as consumer lending The number of issued cards doubled from 2008 to 2010, reaching 28.5 million, while the number of ATMs skyrocketed from 1,800 in 2005 to 11,000 by December 2010 Despite these advancements, the banking industry remains in its early stages of development.
As of December 2010, approximately 23% of Vietnam's population, which is around 90 million, had bank accounts, and about half of these account holders actively utilized consumer banking services.
Since Vietnam's accession to the World Trade Organization (WTO) in 2007, the banking sector has seen an influx of foreign banks, overcoming previous geographical restrictions that limited their presence Notable foreign banks, such as Australia and New Zealand Bank, Hongkong and Shanghai Banking Corporation, and Standard Chartered, have entered the market by forming strategic partnerships with domestic banks This increased competition has heightened the demand for resources within the banking industry, making the labor market more dynamic Consequently, bank managers are now challenged to effectively manage human resources and retain top talent, with employee satisfaction emerging as a crucial factor in addressing these concerns.
Recent discussions in various magazines and online newspapers highlight a significant shortage of human resources in Vietnam's financial sector, which is experiencing rapid growth due to expanding banks and stock brokerage firms This long-standing issue has been acknowledged for years, and a recent survey by IBG, a consulting firm specializing in Human Resource and Management, revealed that 64% of respondents, including those in the finance industry, are considering changing jobs.
Figure 1.1 Job satisfactions rating of Vietnamese employee
I don't know!
The survey revealed that key factors influencing employee job satisfaction include opportunities for training, managerial leadership style, relationships with co-workers, income, and the working environment Notably, managerial leadership style emerged as the second most significant factor contributing to employees' decisions to change jobs.
Figure 1.2 Vietnam job changing reason pyramid
Source:http://www.ibg.com.vn
Research by Careerbuilder reveals that over 2.5 out of every four Vietnamese employees experience negative feelings about their current jobs This highlights the critical need for employee job satisfaction and underscores the necessity for managers to adapt to these challenges.
Industry experts agree that employees who are satisfied and committed to their jobs are more likely to align with the company's values and provide exceptional service quality.
Research indicates that leadership style significantly impacts employee perceptions and job satisfaction, making it crucial for managers to adopt effective approaches Different leadership styles, such as autocratic and democratic, influence employee satisfaction in distinct ways Therefore, it is essential to empirically investigate the relationship between various leadership styles and employee job satisfaction to enhance organizational survival in the market.
Numerous international studies have confirmed that role clarity, influenced by leadership style, significantly impacts job satisfaction (Posner and Butterfield, 1978; Louis et al., 1983; Hartline and Ferrell, 1996; Singh, Verbeke, and Rhoads, 1996).
Singh 2000; Korczynski, 2002; Mukherjee and Malhotra, 2006) In which, role clarity is being proven as the catalyst for enhancing job satisfaction level of employees
Research on the interplay between leadership style, role clarity, and employee job satisfaction in Vietnam's banking sector is limited This raises a critical question for bank managers: do these relationships hold true within their organizations? Validated data from model testing in various credit institutions across Vietnam can provide valuable insights to help managers better understand and enhance their operational practices.
This study aims to investigate how leadership style and role clarity influence employee job satisfaction, as well as the relationship between leadership style and role clarity.
Research objectives
A research objective serves as the researcher's interpretation of a business problem, articulating the purpose of the study in measurable terms and establishing criteria for its success (Zikmund 1997, p 89, as cited in Trung, 2009) To address the identified research problem, this study outlines specific objectives.
Examine the relationship between various manager leadership styles and employee role clarity in banking industry in Vietnam
Examine the relationship between various manager leadership styles and employee job satisfaction in banking industry in Vietnam
Examine the relationship between employee role clarity and employee job satisfaction in banking industry in Vietnam
The study's findings provide valuable insights for policymakers and bank leaders in Vietnam, emphasizing the need to improve employee satisfaction by adapting leadership styles and clarifying roles and responsibilities.
Scope and limitations
The research is limited to employees from select banks in Ho Chi Minh City, including Vietcombank, BIDV, Prudential, ANZ, ACB, and Saigonbank, due to constraints on resources and time To accurately assess the measurement scales, further research involving a broader range of banks across major provinces in the country is essential Additionally, differentiating between foreign and local banks in future studies could provide managers with a deeper understanding of specific organizations.
Research methodology
This research targets employees from joint stock commercial banks, state-owned commercial banks, and foreign banks The study employs a two-step methodology: qualitative and quantitative research Initially, qualitative research involved developing measurement scales based on a review of existing literature, followed by group discussions to refine elements relevant to the Vietnamese banking context Subsequently, quantitative research utilized a survey method for data collection, chosen for its efficiency and accuracy in assessing population information (Zikmund, 1997) Three primary tools were employed to gather the data.
‐ Online survey (refer to address: http://edu.surveygizmo.com/s3/565448/roleclarity-jobsatisfaction- leadershipstyle) This is main method to collect data
The data analysis with SPSS version 16.0 was used to implement the research such as: descriptive statistic, reliability and validity of scales, multi regression analysis.
Structure of the study
The study consists of five chapters:
This chapter presents research background of the study as well as research problems, research objectives, research methodology and scope
Chapter 2: Literature Review tot nghiep down load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
This chapter reviews existing literature on leadership styles, employee role clarity, and job satisfaction, while also proposing hypotheses and an empirical model for the study.
This chapter focuses on the research design and the development of measurement scales, building on the research objectives and methodology outlined in Chapter 1, as well as the literature review and empirical model discussed in Chapter 2.
Chapter 4: Data Analysis and Findings
This chapter presents the characteristics of research sample, data validation step by step Besides that, model and hypotheses are conducted in the stage
Chapter 5: Findings, Limitations and Recommendations
The final chapter presents a summary of the findings and recommendations derived from the earlier chapters, while also addressing the limitations of the study and suggesting areas for future research.
LITERATURE REVIEW
Introduction
This study explores the connection between leadership style, role clarity, and employee job satisfaction The literature review will cover key concepts of leadership, various leadership style theories, and the different dimensions of role clarity and job satisfaction.
Leadership
Leadership is a critical aspect of management, as highlighted by extensive academic and practitioner literature It involves the ability to influence individuals and groups to achieve specific goals A leader's style is shaped by various factors, including personality, environment, education, training, and personal philosophy.
According to Mintzberg (1973, as cited in Ronald et al., 2009), leadership styles are not mutually exclusive Research shows that many managers employ a combination of directive and participative leadership styles, adjusting their approach based on the specific circumstances (Bass 1981, as cited in Ronald et al., 2009).
This study focuses on leadership styles relevant to its examination, drawing from recent research, including works by Bass (1997) and MacKenzie, Podsakoff, and Rich (2001) After reviewing major leadership theories, three specific styles were selected: directive leadership, participative leadership, and empowering leadership These styles are primarily based on path-goal theory (House and Dessler, 1974, as cited in Ronald et al., 2009) and transformational theory (Keller and Dansereau, 1995; Spreitzer, De Janasz, and Quinn).
In 1999, Ronald et al identified three distinct leadership styles that reflect varying degrees of employee control: directive leadership, which involves minimal employee control; participative leadership, characterized by shared control; and empowering leadership, which grants extensive control to employees These styles also differ in the level of managerial influence on organizational transformation, with directive leadership exhibiting management-dominant influence, participative leadership demonstrating shared influence, and empowering leadership showcasing employee-dominant influence.
Leadership has been described as the process of social influence in which one person can enlist the aid and support of others in the accomplishment of a common task
Leadership is fundamentally about enabling individuals to contribute to extraordinary outcomes, as noted by Alan Keith (2007) Ken (2007, as cited in Wikipedia, 2011) emphasizes that effective leadership involves the successful integration and maximization of resources to achieve organizational or societal goals Additionally, Fullan (1998, as cited in Michael, 1999) highlights that leadership is crucial in parish life, fostering visioning, planning, empowering, and evaluating for community service.
Leadership involves the ability to inspire others towards a shared vision, as noted by Weihrich & Koontz (1997) Effective leaders communicate their visions clearly and create an environment that promotes risk-taking, recognition, and empowerment, enabling the emergence of new leaders Warren (2007) emphasizes that leadership is a process of influencing others to achieve objectives while fostering organizational cohesion This process is driven by a leader's attributes, including their beliefs, values, ethics, character, knowledge, and skills.
While holding a managerial title grants you the authority to complete specific tasks within an organization, it does not inherently make you a leader; it merely designates you as the boss True leadership inspires followers to strive for ambitious goals, rather than merely directing them.
Bass (1990, as cited in Warren, 2007) identified three fundamental approaches to understanding how individuals become leaders, with the first two focusing on the leadership development of a select few individuals.
Some personality traits may lead people naturally into leadership roles This is the Trait Theory
A crisis or important event may cause a person to rise to the occasion, which brings out extraordinary leadership qualities in an ordinary person This is the Great Events Theory
People can choose to become leaders People can learn leadership skills This is the Transformational Leadership Theory It is the most widely accepted theory today
According to Bass (1990, as cited in Warren, 2007), individuals assess a leader's respectability not by their attributes but through their actions This observation helps determine whether a leader is honorable and trustworthy or self-serving and manipulative Self-serving leaders may achieve success by projecting a favorable image to superiors, but they ultimately fail to inspire genuine loyalty among employees, who may only comply rather than follow.
The U.S Army identified key factors of leadership in 1993, emphasizing the importance of effective communication, decision-making, and adaptability in guiding teams These elements are crucial for fostering a productive and motivated environment.
Effective leadership varies based on the needs of different individuals; for instance, new hires need more guidance compared to seasoned employees Understanding the unique motivations and emotional states of your team is crucial, as those lacking motivation require distinct strategies than those who are highly motivated A solid grasp of human nature, including needs and emotions, is essential for leaders to connect with their employees Therefore, it is important to familiarize yourself with your team’s attributes—what they are, what they know, and what they can do.
A successful leader must possess a clear and honest understanding of their own identity, knowledge, and capabilities Ultimately, it is the followers who determine a leader's success; if they lack trust or confidence in their leader, they will remain uninspired Therefore, to achieve success, a leader must focus on convincing their followers of their worthiness to lead, rather than seeking validation from themselves or their superiors.
Effective leadership relies on two-way communication, which often includes nonverbal cues By setting a personal example, you demonstrate to your team that you are willing to undertake the same tasks you expect from them.
What and how you communicate either builds or harms the relationship between you and your employees
Situation All are different What you do in one situation will not always work in another
Effective leadership requires using your judgment to determine the appropriate course of action and leadership style for each unique situation For instance, addressing an employee's inappropriate behavior must be timed and executed correctly; if the confrontation is too late, too early, too harsh, or too lenient, it may lead to ineffective outcomes.
The Directive Leadership Style, initially identified by Lewin, Lippitt, and White in 1938, is often synonymous with the autocratic leadership style This approach is characterized by a top-down method, making it a prevalent form of leadership in contemporary settings.
Role Clarity
Extensive research has been conducted on role clarity and its impact on various factors Role clarity is defined as the extent to which employees obtain and comprehend the necessary information to perform their jobs effectively (Rogers, Clow, and Kash 1994, as cited in Chad, 2008) According to Hackman and Oldham, understanding role clarity is crucial for enhancing employee performance and satisfaction.
Role clarity refers to employees having a clear understanding of their roles and responsibilities within an organization (Jai and Naval, 2011) According to Banton (1965, as cited in Jai and Naval, 2011), a "role" is defined as a set of norms or expectations that are applied to an individual in a specific position by both the individual and other role players (role senders) involved in fulfilling the obligations of that position Kahn et al (1964, as cited in Jai and Naval, 2011) further emphasize the importance of this clarity in enhancing organizational effectiveness.
To effectively fulfill a role, individuals must understand the expectations, including their rights, duties, and responsibilities, as well as the activities that will meet these obligations and the consequences of their performance on themselves, others, and the organization The role-making process is often hindered by poor communication between role senders and receivers, along with environmental turbulence, necessitating ongoing adjustments to the roles Therefore, the role-making process is dynamic and involves continuous interaction between the role incumbent and the role senders, highlighting the importance of evaluating an individual’s need for clarity.
Role clarity is defined as the subjective feeling of having the desired amount of role-relevant information, which is crucial for employees to understand how to perform their jobs effectively (Jai and Naval, 2011; Teas et al., 1979) It encompasses the extent to which individuals receive and comprehend the necessary information regarding their job responsibilities and objectives (Kelly and Hise, 1980; Dolatabali and Safa, 2010) Conversely, role ambiguity negatively impacts job satisfaction (Behrman and Perreaul, 1984; Jai and Naval, 2011) Sufficient role clarity involves knowing the appropriate behaviors to achieve job goals (Kahn et al., 1964) Numerous studies have explored the influence of personality variables on role stressors (Kahn et al., 1964; Rizzo, House, and others).
Research by Lirtzman (1970), Keller (1973), and Sohi (1996), as cited in Chad (2008), indicates that role ambiguity is significantly negatively correlated with job satisfaction, primarily due to the stress and anxiety it generates In contrast, role clarity has been shown to alleviate job stressors For instance, Donnelly and Ivancevich (1974, as cited in Chad, 2008) found that role clarity is linked to reduced job tension, lower physical stress, and a decreased likelihood of employee turnover.
To develop an effective role clarity model, it is crucial to identify the factors influencing employees' role clarity Research by Kammeyer-Meuller and Wanberg (2000) indicates that relationship building positively impacts role clarity, while their 2003 study highlights the significance of organizational and leadership influences Additionally, Adkins (1995, as cited in Jai and Naval, 2011) found that prior work experience in similar roles enhances role clarity, as familiarity with the setting leads to clearer expectations Walker, Churchill, and Ford (1977, as cited in Chad, 2008) identified three antecedents of role clarity: personal, organizational, and environmental variables Furthermore, performance feedback and leadership have also been linked to improved role clarity (Teas, Wacker, and Hughes, 1979, as cited in Vincent, 2009) Lastly, Jackson and Schuler (1985, as cited in Avinandan, 2006) categorized the variables affecting role clarity into task-related and supervisor-related factors.
In this context, job-design (task-related) and participative supervision (supervisor- related) have emerged as two vital factors affecting role clarity of frontline employees
Cohen (1959, as cited in Chad, 2008) proposed that the organizational level of respondents could influence the relationship between role clarity and personal outcomes, including job-related tension, job satisfaction, and the likelihood of leaving the organization Additionally, this relationship may extend to variables such as perceived performance, organizational effectiveness, and organizational influence.
Some main factors determine role clarity in an organization:
‐ Teamwork seems to be a factor on which role clarity of employees is dependent
Sergeant and Frenkel (2000, as cited in Chad, 2008) highlighted the importance of team support in enhancing role clarity among frontline staff, emphasizing that effective teamwork and co-worker cooperation are essential in organizations Their research indicates that peer-based learning significantly contributes to clarifying roles in work settings Additionally, Jong et al (2001, as cited in Chad, 2008) found that team support plays a crucial role in shaping the role clarity perceived by employees engaged in teams across various organizations.
Regularly reviewing and delivering feedback to employees is crucial Feedback is defined as the extent to which job-related activities provide individuals with direct and clear insights into their performance effectiveness (Hackman and Oldham).
Research indicates a positive correlation between feedback and perceived role clarity (Mukherjee & Malhotra, 2006) The impact of feedback on role clarity can differ based on its valence (positive or negative), response mode (advisory, interpretive, behavioral, or emotional), and directness Importantly, feedback serves as a source of intrinsic motivation and is a key motivational factor (Armstrong, 1996, as cited in Mukherjee, 2006) It aids employees in understanding and clarifying their roles, significantly influencing their perception of role clarity (Teas et al., 1979, as cited in Dolatabadi, 2010).
Unnecessary interventions can hinder employee performance within an organization, while an autonomous work environment enhances role clarity Research by Mukherjee and Malhotra (2006) indicates a positive correlation between job autonomy and perceived role clarity Autonomy is defined as the extent to which a job allows individuals freedom and discretion in managing their work schedules and procedures (Hackman and Oldham, 1976, as cited in Chad, 2008) When frontline employees perceive a loss of control over their service delivery, it can lead to feelings of helplessness, stress, and job dissatisfaction (Berry et al., 1990, as cited in Mukherjee, 2006).
Autonomy is a crucial factor in job design, serving as a significant motivational characteristic that enhances service quality by ensuring role clarity.
Supervisory consideration significantly influences employee role clarity, as it encompasses leader behaviors aimed at enhancing the comfort and wellbeing of subordinates (Boshoff and Mels, 1995, as cited in Jai and Naval, 2011) This supportive environment fosters psychological support, mutual trust, and helpfulness, which are positively correlated with the role clarity of frontline employees (Teas, 1983; Kohli, 1989; De Coninck et al., 1993, as cited in Mukherjee, 2006) Specifically, supervisory consideration aids role clarity by providing a nurturing atmosphere through socio-emotional support and by clearly defining subordinate roles (Singh, 199, as cited in Jai and Naval, 2011).
‐ Committed employees have long stay in the organization, thus they got much opportunity to understand organization which ultimately enhances their role clarity
Wetzels et al (2000, as cited in Jai and Naval, 2011) found a positive relationship between role clarity and organizational commitment Affective commitment, defined by Meyer and Allen (1991, as cited in Noor and Noor, 2006), reflects an employee's emotional attachment and involvement with the organization Employees who perceive clear roles in their jobs are more likely to develop a strong attachment, identify with the organization, and embrace its goals, leading to increased commitment (Zaccaro and Dobbins).
1989, as cited in Jai and Naval, 2011).
The effectiveness of an organization significantly influences role clarity, as established by Beehr et al (1976), who found a direct correlation between higher levels of role clarity and perceived organizational effectiveness Additionally, Kahn et al (1964) highlighted that role clarity is directly linked to organizational effectiveness, emphasizing that it depends on the alignment between the information accessible to individuals and what is required for them to perform their roles effectively.
Among lower and middle level manufacturing employees Schuler (1975) found significant positive relationships between role clarity and individual performance
Role clarity for individuals from high performing organizations will be greater than role clarity for individuals from low performing organizations
‐ Task oriented leadership style is also an important factor of generating role clarity
Employees, who are task driven, make their roles clear on the way of doing a job
Hamner and Tosi (1974, as cited in Jai and Naval, 2011) found that higher levels of role clarity are related directly to higher levels of Superior's task-oriented leadership
Job Satisfaction
The research about employee job satisfaction has been found in the 1930’s and become frequently extensive topic such as Allen, Drevs, & Ruhe, (1999); Kleinman, (2004);
Job satisfaction refers to the emotional response an employee has towards their work, stemming from the comparison between perceived outcomes and desired results It encompasses the feelings, attitudes, and preferences individuals hold regarding their jobs Essentially, job satisfaction reflects the extent to which employees find enjoyment in their work.
Numerous theories have been developed to understand job satisfaction in literature Vroom's (1964) need/value fulfillment theory posits that job satisfaction is inversely related to the gap between individual needs and the job's ability to meet those needs Porter and Lawler (1968, as cited in Balakarthi, 2011) categorize factors influencing job satisfaction into internal and external factors Internal factors pertain to the work itself, including feelings of independence, achievement, and control, while external factors involve aspects not directly related to the job, such as relationships with colleagues, salary, and benefits Thus, influences on job satisfaction can be classified into work-related and employee-related factors (Glisson and Durick, 1988, as cited in Balakarthi, 2011).
Job satisfaction is characterized as a pleasurable emotional state derived from evaluating one's job (Locke, 1976; Weiss, 2002, as cited in Remus, 2004) It reflects an affective response to the job (Cranny, Smith, and Stone, 1992; Weiss, 2002, as cited in Remus, 2004) and represents an overall attitude towards one's work (Weiss, 2002, as cited in Remus, 2004).
Job satisfaction is defined as an attitude that encompasses our feelings, beliefs, and behaviors towards our jobs (Weiss, 2002, as cited in Remus, 2004) It represents the overall measurement of working attitudes, including reception, happiness, and pleasure in one's role (Edward and Scullion, 1982, as cited in Mohd, 2009) Cranny, Smith, and Stone (1992, as cited in Mohd, 2009) further describe job satisfaction as the extent to which employees find their employment fulfilling enough to continue in their positions or prepare for greater responsibilities Ultimately, job satisfaction arises from the cognitive and affective reactions to the disparity between what employees desire and what they actually receive.
Job satisfaction has been extensively studied as both an independent and dependent variable, revealing its significant impact on organizational behavior It positively influences employee performance and organizational commitment while negatively affecting employee turnover (Agarwal and Ferrat, 2001; Poulin, 1994; Chen, 2008, as cited in Dogan, 2009).
Employee job satisfaction is closely linked to job performance, as noted by Fitzgerald (1972) Increased job satisfaction fosters positive behaviors among employees, such as delivering excellent customer service, collaborating effectively with coworkers, and demonstrating commitment to the organization (Arnett, Laverie, & McLane, 2002, as cited in Irene, 2006) Ultimately, job satisfaction serves as a key motivator for employees to provide high-quality service.
The relationships between job satisfaction and various factors such as motivation, stress, salary, promotion, role conflict, justice perceptions, role ambiguity, autonomy, workload, leadership style, educational level, and emotional intelligence continue to be a significant focus in management literature.
Research identifies several key variables influencing employee job satisfaction, including demographic factors such as education and experience, job characteristics like autonomy and salary, and organizational environment factors such as professionalization and unit type Positive relationships with job satisfaction are linked to involvement, positive affectivity, and support from supervisors and co-workers, while negative relationships are associated with role ambiguity, workload, and resource inadequacy Inadequate salary is a significant contributor to employee dissatisfaction, and factors such as working conditions, intrinsic compensation, and company policies also play a crucial role Encouragement, feedback, and clear job descriptions positively impact job satisfaction, whereas role stress negatively affects it Studies have shown that role clarity is positively related to job satisfaction and innovation, while unclear roles can lead to communication issues and employee confusion, ultimately resulting in job stress and decreased satisfaction.
Effective leadership is crucial for job satisfaction, as a lack of support and consideration from leaders can create a stressful work environment Hostile behaviors from leaders can lead to negative interactions with employees, resulting in diminished job enjoyment, self-doubt regarding skills, adverse reactions towards leadership, and ultimately, employee turnover.
The leader-employee relationship significantly influences employee self-esteem and job satisfaction, as highlighted by various studies (Brockner, 1988; DeCremer, 2003; Chen & Spector, 1991, as cited in Brooke, 2006).
Research indicates that workers with high achievement motivation experience greater job satisfaction compared to those with low motivation (Arvey & Dewhirst, 1976, as cited in Dogan, 2009) Autonomy also plays a crucial role in enhancing job satisfaction; for instance, a study by Abdel Halim (1983, as cited in Dogan) found that employees with a strong need for independence performed better and reported higher satisfaction when engaged in non-repetitive tasks with significant participation Furthermore, administrative styles and professional status significantly impact job satisfaction, with recent studies highlighting that a participative management style is favored by contemporary managers to boost employee satisfaction (Dogan, 2009) Additionally, expressive leadership has been shown to foster greater job satisfaction (Singh & Pestonjee, 1974).
Task-structured leaders, or instrumental leaders, prioritize initiating structure over employee concern, which can result in decreased job satisfaction for those engaged in routine tasks (Spector, 1985, as cited in Brooke, 2006).
(Robbins, 1998, as cited in Brooke, 2006)
This study concerned with the overall job satisfaction of employees rather than with their satisfaction with separate facets of the job.
Hypotheses
Role clarity is essential for employee performance and job satisfaction, as it involves the provision and understanding of necessary information regarding job expectations (Teas et al., 1979; Kelly and Hise, 1980) Managers must prioritize role clarity to effectively manage their teams, given its significant impact on overall employee effectiveness (Singh).
Feedback is crucial for employees as it enhances their understanding of their roles, significantly impacting their perceived role clarity Directive leadership is particularly effective in fostering this clarity due to the substantial feedback it provides The authoritative nature of directive leadership ensures that subordinates have a clear understanding of their responsibilities within the organization Research has shown that management feedback is linked to increased role clarity, supporting the notion that managers who adopt a directive leadership style can enhance their employees' role clarity.
An increase in the use of a directive leadership style is linked to enhanced employee role clarity.
Participative leadership, while offering less explicit directives regarding employee responsibilities, plays a crucial role in enhancing role clarity Unlike directive leadership, which relies on top-down communication, participative leadership encourages employee input and control over their roles This collaborative approach allows employees to receive necessary feedback from managers on role expectations, leading to improved clarity as information and expectations are established through consensus (Bass, 1981, as cited in Dolatabadi, 2010).
Employee participation in decision-making enhances awareness of significant organizational events and allows them to influence job-related decisions (Teas, 1983, as cited in Ronald, 2009) This involvement fosters aligned perceptions regarding role expectations, leading to improved role clarity (Teas et al., 1979) Consequently, employees who engage in decision-making report higher levels of role clarity (Teas et al., 1979, as cited in Ronald).
Research by Mukherjee and Malhotra (2006) indicates a positive correlation between participation in decision-making and perceived role clarity When information and expectations regarding employees' roles are managed collaboratively, role clarity tends to improve (Bass 1981, as cited in Ronald, 2009) Therefore, it can be anticipated that a participative leadership style positively influences role clarity.
An increase in the adoption of a participative leadership style correlates with enhanced clarity in employee roles.
Empowering leaders give their employees the latitude necessary to perform their jobs
Empowering leaders often provide minimal direction and feedback on employees' roles, which can lead to confusion and stress regarding job expectations While training and job specifications exist, the lack of consistent feedback hinders a complete understanding of these expectations Employees who prefer clear guidance may perceive empowerment as an unwelcome burden, suggesting that empowering leadership could negatively impact role clarity.
H3: An increase in the use of an empowering leadership style is associated with a decrease in employee role clarity
Several studies have found a participative leadership style to be more satisfying to employees than a directive leadership style (Bass 1981, as cited in Ronald, 2009)
Employees feel more valued when managers involve them in decision-making rather than providing strict instructions for every task Directive leadership styles that include manipulation can lead to decreased job satisfaction, as employees may perceive such tactics as demeaning or disrespectful Therefore, fostering a collaborative environment is essential for enhancing employee morale and satisfaction.
H4: An increase in the use of a directive leadership style is associated with a decrease in employee job satisfaction
H5: An increase in the use of a participative leadership style is associated with an increase in employee job satisfaction
Empowering leadership, as defined by Conger and Kanungo (1988, cited in Gretchen, 2007), involves granting employees greater autonomy and authority in workplace decisions This leadership style has been shown to enhance job satisfaction and enthusiasm among employees, particularly in customer service roles (Bowen and Lawler 1992, cited in Ronald, 2009) With increased control over their work, empowered employees experience higher levels of job satisfaction.
H6: An increase in the use of an empowering leadership style is associated with an increase in employee job satisfaction
Considerable evidence suggests that increased role ambiguity is associated with reduced job satisfaction and vice versa Posner and Butterfield (1978, as cite in Jai,
Role ambiguity, defined as a lack of information or uncertainty regarding expected job behavior, typically has negative effects, while role clarity is linked to positive outcomes A positive relationship exists between role clarity and job satisfaction, which reflects how content employees feel with their work and job nature Employees who perceive role clarity tend to report higher job satisfaction compared to those who do not Research by Jackson and Schuler (1985) indicates that job satisfaction is often a direct result of role clarity Furthermore, Mukherjee and Malhotra (2006) highlight that factors such as feedback, participation, and team support significantly enhance role clarity, thereby improving job satisfaction Conversely, role ambiguity can lead to job dissatisfaction, as low levels of role clarity may negatively impact employees' overall job satisfaction.
Employees lacking clarity in their roles are less likely to experience job satisfaction, as suggested by research in 1981 Conversely, Walker et al (1977, as cited in Jai, 2011) found that individuals with a clear understanding of their roles tend to have a stronger connection between their efforts and performance, leading to greater job satisfaction.
Kahn et al (1964, as cited in Mathew, 2004) highlighted that uncertainty regarding work role expectations can result in negative emotions such as tension, anxiety, and apathy, ultimately diminishing job satisfaction Conversely, individuals experience greater satisfaction when they have clarity about their role expectations and understand the best methods to execute their tasks.
A meta-analysis conducted in 1994 revealed a strong negative relationship between role ambiguity and job satisfaction, indicating that greater role clarity is associated with higher job satisfaction Additionally, Sawyer (1992) identified two components of role clarity: goal clarity, which involves understanding role expectations, and process clarity, which pertains to the activities that meet those expectations Both components were found to positively correlate with job satisfaction.
H7: An increase in employee role clarity is associated with an increase in employee job satisfaction
In summary, seven hypotheses were proposed, focusing on the latest developments in the field The research emphasizes the importance of thorough analysis and the implications of these hypotheses for future studies.
H1: An increase in the use of a directive leadership style is associated with an increase in employee role clarity
H2: An increase in the use of a participative leadership style is associated with an increase in employee role clarity
H3: An increase in the use of an empowering leadership style is associated with a decrease in employee role clarity
H4: An increase in the use of a directive leadership style is associated with a decrease in employee job satisfaction
H5: An increase in the use of a participative leadership style is associated with an increase in employee job satisfaction
H6: An increase in the use of an empowering leadership style is associated with an increase in employee job satisfaction
H7: An increase in employee role clarity is associated with an increase in employee job satisfaction
Summary
The previous discussion has shown the theoretical relationship among five factors directive leadership style, participative leadership style, empowering leadership style
In which, job satisfaction is differently influenced by three style of leadership and role
Job satisfaction is influenced by various factors, including role clarity, which is viewed as a dependent variable in relation to a leader's behavior Understanding the dynamics of these elements is crucial for enhancing workplace morale and productivity.
The next chapter will discuss the research methodology to validate the proposed ideas.
METHODOLOGY
Introduction
The previous chapter's literature review outlined the theoretical model for this research, focusing on five key constructs: directive leadership style, participative leadership style, empowering leadership style, role clarity, and job satisfaction Chapter 3 will detail the research methodology employed to develop, assess, and measure the scales, as well as to test the theoretical models and hypotheses This chapter is divided into two main sections: (1) research design, which elaborates on the research process, including both qualitative and quantitative approaches, and (2) the development of measurement scales.
Research design
This study consists of two phases: preliminary research and main research The preliminary phase employs qualitative methods, utilizing group discussions to refine, add, or remove variables In contrast, the main research phase utilizes quantitative methods, incorporating face-to-face interviews, email surveys, and online questionnaires, with data analysis supported by SPSS tools.
Table 3.1 Type and technique of research
Phase Type of research Method Technique Time
Direct interview Online survey Email delivery
7-8/2011 tot nghiep down load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
The preliminary test aimed to identify and address any weaknesses in the initial draft of the questionnaire, ultimately leading to the development of a final version for the main survey This pretest serves as an evaluation of the construct measures, allowing for the refinement of the measurement scales before the main study.
Based on previous studies, expert discussions, and practical experience, the observed variables were initially designed for qualitative research Although the scale was adapted from other studies and deemed acceptable, it required modifications for the specific context of the Vietnamese banking industry To ensure the scales' measurability and reliability, the first step involved adjusting them through group discussions These discussions included eight employees with at least five years of experience from three credit institutions—Prudential Finance Vietnam, Asia Commercial Bank, and Citi Bank—representing consumer, local, and multinational banking sectors The experienced participants identified issues and revised the questionnaire, leading to the elimination of factors deemed unimportant by over half of the respondents Ultimately, the qualitative research resulted in adjusted measurement scales and a refined questionnaire for the main research phase.
The study employed quantitative research methods to gather data from participants using a questionnaire developed during the preliminary research phase Data refinement and analysis were performed with the assistance of SPSS 16.0 software.
The study's population comprises all employees working in credit institutions within Vietnam, as the research specifically targets the banking industry According to David (2000, cited in Trung, 2009), the population is defined as the complete set of units of analysis under investigation, while an element refers to the individual unit from which data is collected.
The second step in the sampling process involves selecting the sampling frame, which is the list of elements from which a sample can be drawn The Vietnamese banking sector comprises five state-owned commercial banks, thirty-nine joint stock banks, five fully foreign-owned banks, five joint venture banks, and two development and policy banks For this study, the sampling frame included employees from Vietcombank and BIDV (the two largest state-owned banks), Prudential Finance, ANZ, and Citibank (representing multinational banks), ACB and Saigonbank (representing local banks), as well as other banks, focusing on individuals aged 22 and above To ensure reliable feedback, participants were required to have a minimum of six months of experience in the banking sector.
The next step involves selecting an appropriate sampling method for the study, which can be categorized into two primary types: probability sampling and non-probability sampling, as outlined in the methodology literature (Tho & Trang 2007, as cited in Trung, 2009).
In this study, the non-probability method was chosen due to the elements in the population do not have a known or predetermined chance of being selected as subjects
The study's findings cannot be confidently generalized to the broader population, particularly when time constraints or other factors impact generalizability In such cases, non-probability sampling methods, such as convenience and purposive sampling, are often employed (Canava et al 2001, as cited in Trung, 2009) While convenience sampling is the least reliable for generalizability, it may be the only feasible option for obtaining quick information or conducting exploratory research (Canava et al 2001).
The interviews conducted with employees in the banking industry utilized convenience sampling methods.
A reliable and valid sample is essential for generalizing findings to the broader population, as highlighted by Canava et al (2001) The statistics derived from the sample should closely estimate the population parameters with minimal error Determining the appropriate sample size depends on the desired precision and confidence in estimating these parameters, as well as the inherent variability within the population.
Determining the appropriate sample size for research remains a debated topic, influenced by the statistical methods employed Tho and Trang (2007, as cited in Trung, 2009) highlight that while there is no definitive answer, recommendations suggest a minimum of 100 to 150 responses when using the Maximum Likelihood (ML) method Additionally, some researchers advocate for at least five observations per estimated parameter For exploratory factor analysis (EFA), a common guideline is that the sample size should be four to five times the number of variables analyzed (Trong and Ngoc, 2005) Consequently, this study aims for a sample size of at least 150 participants or more.
A total of 205 responses were collected through face-to-face interactions, email delivery, and an online survey However, 28 responses were excluded due to missing information or incomplete feedback, resulting in a missing rate of 11.5% Ultimately, 177 questionnaires were deemed usable for analysis.
The literature on research methodology has identified a number of survey methods such as face-to-face interview, telephone interview, and mail survey or online survey
Face-to-face surveys are known to produce higher response rates and enable researchers to utilize physical stimuli during interviews, enhancing the overall data collection process.
Trung, 2009) It also allows interviewers to clarify the meanings of ambiguous or complex questions
In this study, the data was collected by 3 methods:
‐ Email delivery and distribution method
‐ Online survey method (http://edu.surveygizmo.com/s3/565448/roleclarity- jobsatisfaction-leadershipstyle)
The phone interview method has been discontinued due to high costs In face-to-face interviews, the research was conducted in two steps: first, interviewees were briefed on the purpose of the discussion, followed by the questionnaire response phase For the email delivery method, the purpose of the study was included with the questionnaire However, no explanatory documents were provided in the online method due to technical limitations.
The interview took place over a five-week period in July 2011, with participants informed that their involvement was voluntary and they could withdraw at any time To promote honesty and openness in their answers, participants were assured that their responses would be kept confidential and reported only in aggregate form.
Data was constructed using 7-point Likert scaling for all items of the research model
Measurement scales development
As discussed in chapter 2, there are five constructs in the theoretical model These are:
(1) directive leadership style; (2) participative leadership style; (3) empowering leadership; (4) role clarity; and (5) job satisfaction
To effectively implement three types of leadership behaviors—directive leadership, participative leadership, and empowering leadership—specific items were utilized: 7 items for directive leadership, 4 items for participative leadership, and 8 items for empowering leadership The framework for these behaviors was based on the Leader Behavior Description Questionnaire – Version 12 (Cook et al., 1981).
Directive leadership style (1 = strongly disagree, 7 = strongly agree)
1 My manager lets employees know what his expectation is
2 My manager encourages the use of uniform procedures
3 My manager tries out his ideas on employees
4 My manager makes his attitude clear to employees
5 My manager makes sure that his role in the organization is understood by employees
6 My manager maintain definite standards of performance
7 My manager ask employees follow the standard rules and regulations
Participative leadership style (1 = strongly disagree, 7 = strongly agree)
1 My manager encourages employees to participate in important decision
2 My manager encourages employees to speak out when they disagree with a decision
3 My manager often make decisions with asking employees for opinions
4 My manager make important decision with involving employees
Empowering leadership style (1 = strongly disagree, 7 = strongly agree)
1 My manager allows employees complete freedom in their work
2 My manager permits employees to use their own judgment in solving problems
3 My manager encourages initiative in employees
4 My manager lets employees do their work the way they think best
5 My manager turn employees loose on a job, and let them go to it
6 My manager assigns tasks, then let employees handle them
7 My manager allows employees a high degree of initiative tot nghiep down load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
8 My manager trusts employees to exercise good judgment
Next, the operationalization of the construct reflects the components of role clarity are identified in Sawyer’s (1992) measures of role clarity The 9 items scale was developed:
Role clarity (1 = very uncertain, 7 = very certain)
2 The goal and objectives of my job
3 How my work relates to the overall objectives of my work unit
4 The expected results of my work
5 How to divide my time among the tasks required of my job
6 How to schedule my work day
7 How to determine the appropriate procedures for each work task
8 The procedures I use to do my job are correct and proper
9 Considering all your work tasks, how certain are you that you know the best way to do these tasks
Finally, the Brown and Peterson (1993) scale measurement of job satisfaction was combined with Rusbult and Farrell (1993) instrument to derive 7 items job satisfaction scale used in this study
Job satisfaction (1 = strongly disagree, 7 = strongly agree)
1 If I had to decide all over again, I would still choose the job I have now
2 I will recommend my friend for applying job for current organization
3 General organization’s job policies is good
4 I receive strong support to complete job from organization
5 I have opportunities for advancement with organization tot nghiep down load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
6 This job is my ideal job
7 This is just like the job I wanted when I started this job The summary of measures used in this study is described in Table 3.2:
Table 3.2 Measures used in the study
Cook et al (1981) A seven-item scale from the Leader Behavior Description
Questionnaire-Version 12 (LBDQ XII) that measures the extent to which managers direct employee activities and set standards
Cook et al (1981) A four-item scale from the LBDQ XII that measures the extent to which managers allow employees to express opinions and participate in decision making
Cook et al (1981) An eight-item scale from the LBDQ XII that measures the extent to which managers empower employees to use their own initiative and judgment
Role Clarity Sawyer (1992) A nine-item scale that measures the level role clarity
(goal clarity and fulfill their roles)
Job Satisfaction Brown and Peterson
A seven-item scale that measures the extent to which employees are satisfied with variety of job dimensions
The employee survey utilized a 7-point scale, with responses ranging from 'strongly disagree' (1) to 'strongly agree' (7) To ensure relevance to the current study, the draft measurement scales were refined through focus group discussions during the preliminary research phase.
A preliminary survey was carried out through a focus group discussion involving 8 senior employees from three credit institutions: ACB, Prudential, and Citibank, conducted via a Yahoo conference meeting The outcome of this discussion led to the development of a modified scale.
In the study, 35 draft variables were evaluated, leading to the removal of certain items for clarity and relevance The item “My manager turns employees loose on a job, and lets them go to it” was deleted from the empowering leadership style scale as it overlaps with other items Additionally, three items from the role clarity scale—“How to determine the appropriate procedures for each work task,” “The procedures I use to do my job are correct and proper,” and “Considering all your work tasks, how certain are you that you know the best way to do these tasks”—were omitted because they pertain more to company workflow and policy than to leadership style The item “How to schedule my work day” was also excluded as it is addressed by other questions In the job satisfaction scale, the item “I receive strong support to complete my job from the organization” was removed due to its low correlation with employee satisfaction Lastly, the item “I will recommend my friend for applying for a job at the current organization” was deleted, reflecting the influence of Vietnamese personality characteristics.
Remaining 28 items are summarized in Table 3.3
Dimension Question/Item/Variable Item Code
My manager lets employees know what his expectation is DL1
My manager encourages the use of uniform procedures DL2
My manager tries out his ideas on employees DL3
My manager makes his attitude clear to employees DL4
My manager ensures that employees clearly understand his role within the organization.
My manager maintain definite standards of performance DL6
My manager ask employees follow the standard rules and regulations DL7
My manager encourages employees to participate in important decision PL1
My manager encourages employees to speak out when they disagree with a decision PL2
My manager often make decisions with asking employees for opinions PL3
My manager make important decision with involving employees PL4
My manager allows employees complete freedom in their work EL1
My manager permits employees to use their own judgment in solving problems EL2
My manager encourages initiative in employees EL3
My manager lets employees do their work the way they think best EL4
My manager assigns tasks, then let employees handle them EL5
My manager allows employees a high degree of initiative EL6
My manager trusts employees to exercise good judgment EL7
My duties and responsibilities RC1
The goal and objectives of my job RC2
How my work relates to the overall objectives of my work unit RC3
The expected results of my work RC4
How to divide my time among the tasks required of my job RC5
If I had to decide all over again, I would still choose the job I have now JS1 General organization’s job policies is good JS2
I have opportunities for advancement with organization JS3 Download the latest thesis and research materials at vbhtj mk gmail.com for comprehensive resources on master's thesis topics.
This job is my ideal job JS4 This is just like the job I wanted when I started this job JS5
The final constructs, refined through preliminary research, were utilized as the official questionnaire in the main survey, with the Vietnamese version of these measures provided in Appendix 1.
Summary
This chapter outlines the research methodology and procedures utilized in this study, justifying the chosen approach It emphasizes the development of the questionnaire and the analytical methods used to evaluate the propositions and address the research questions.
This chapter outlines the statistical methods used for data analysis, focusing on assessments of validity, dimensionality, and reliability The subsequent chapter will present the findings from the data analysis.