Research background
In today's dynamic business landscape, companies must remain highly flexible to meet evolving market demands Multinational corporations are increasingly adopting globalization strategies to enhance competitiveness A concerted effort by leadership teams is underway to boost profitability, expand market share, and elevate customer satisfaction Additionally, organizations are now confronted with the critical challenge of developing and managing human resources to retain top talent.
Employee turnover poses significant challenges for organizations, leading to reduced customer satisfaction, lower productivity, diminished future revenue growth, and decreased profitability Consequently, organizations are increasingly focused on retaining valuable employees to minimize turnover costs and ensure ongoing stability and development To achieve success, it is essential for organizations to reduce turnover while maximizing individual contributions Employees are expected to be proactive, collaborate effectively, take responsibility for their professional growth, and commit to high-performance standards.
2 this is through employee engagement As noted by Schaufeli and Bakker
(2004), engaged employees are likely to have a greater attachment to their organization and a lower tendency to quit
Work engagement is a crucial psychological concept that assesses an individual's dedication to their job This idea has gained traction due to its strong correlation with job performance (Bakker, 2009; Schaufeli & Salanova, 2007) Engaged employees invest significant effort in their work, as they identify closely with their roles It is widely recognized that employees are the most valuable assets of a company, and their commitment is essential for achieving success.
Organizations need employees who feel energetic and dedicated, and who are absorbed by their work In other words, organizations need engaged workers
In order to achieve this aim, employees should be encouraged to participate in organizational activities which are expected to enhance their engagement
To effectively navigate a stressful work environment, managers must cultivate strong relationships with their subordinates Transformational leadership plays a crucial role in engaging employees, as it encompasses four key components: individualized consideration, intellectual stimulation, inspirational motivation, and idealized influence Research indicates that these elements lead to increased employee effort, productivity, morale, and satisfaction, while also enhancing organizational effectiveness, reducing turnover and absenteeism, and fostering greater adaptability within the organization (Robbins & Judge, 2007).
In the banking sector, having a greater number of branches and offices increases the potential for business growth and market share Consequently, banking employees represent the largest group of service providers As a crucial service industry, banking significantly contributes to a country's economic development.
The continuous development of industries is closely linked to economic growth A robust banking system relies on the effectiveness of skilled personnel To ensure high performance among employees, organizations must focus on retaining talent and actively engaging their workforce.
After Vietnam's accession to the WTO, the liberalization of the financial industry has become a crucial commitment, opening opportunities for both foreign banks to enter the Vietnamese market and local banks to expand their operations This growth in the banking network has led to a rapid increase in demand for human resources in the financial sector, resulting in a persistent turnover challenge within the banking industry.
To retain talented employees, banks must focus on engaging their workforce, as research indicates a strong correlation between employee engagement, performance, and business outcomes However, the strategies to enhance employee engagement in Vietnam's banking sector remain underexplored Notably, there is a lack of research examining the impact of leadership behavior on employee engagement levels within this context.
Research objective
This research examines how four aspects of transformational leadership influence employee engagement in the banking sector of Ho Chi Minh City, Vietnam The study aims to determine whether these leadership components positively affect employee commitment and offers recommendations for leaders and managers to enhance their teams' dedication, ultimately boosting organizational performance and profitability.
The research aims to address key questions related to the latest developments in downloading academic theses and dissertations, specifically focusing on the accessibility of full-text documents.
Question 1: Which components of transformational leadership have influence on employee engagement level?
Question 2: Which level do the four components of transformational leadership impact on employee engagement?
This study aims to investigate the influence of transformational leadership on employee engagement levels It specifically examines how each component of transformational leadership behavior affects employee engagement.
Research scope and design
The research focuses on banking sector in Ho Chi Minh City of Vietnam
The survey instrument will undergo an initial pilot test with 10 employees to assess content, readability, and clarity Following this pilot, minor adjustments will be made to the questionnaire items based on the feedback received The research focuses on employees from both local and foreign banks operating in Ho Chi Minh City, with a total of 205 valid responses collected.
Following data collection, the reliability of the measurement scale will be assessed using Cronbach's alpha and Exploratory Factor Analysis (EFA) for refinement Subsequently, the hypotheses will be evaluated through correlation and regression analyses.
LITERATURE REVIEW
Employee engagement
Engagement at work was first conceptualized by Kahn (1990) as the
Employee engagement involves the integration of individuals' selves into their work roles, encompassing physical, cognitive, and emotional dimensions The cognitive aspect relates to employees' beliefs about their organization, leaders, and working conditions, while the emotional aspect reflects their feelings and attitudes towards these factors The physical dimension pertains to the energy exerted by employees to fulfill their roles Kahn (1990) defined engagement as being both psychologically and physically present in one's organizational role, contrasting it with disengagement, which involves withdrawing from the work role Kahn identified three psychological conditions linked to engagement: meaningfulness, safety, and availability Employees are encouraged to reflect on three key questions in their roles: the meaningfulness of their performance, the safety of expressing themselves, and their availability to engage fully.
7 that employees were more likely to be engaged at work in situations where they felt there were high levels of psychological meaningfulness, psychological safety and psychological availability
May et al., (2004) completed an empirical researched to test Kahn’s
(1990) model and found that meaningfulness, safety, and availability were significantly related to engagement
Maslach et al (2001) reintroduced the concept of engagement in their research on job burnout, defining burnout as a consequence of chronic interpersonal stressors at work, characterized by three dimensions: exhaustion, cynicism, and inefficacy As individuals experience burnout, their energy is depleted, leading to exhaustion; their involvement diminishes, resulting in cynicism; and their sense of efficacy declines, causing ineffectiveness The researchers proposed engagement as the positive counterpart to burnout, embodying energy, involvement, and efficacy, which represent the opposite ends of the burnout spectrum.
Maslach et al (2001) identify six key areas of work-life—control, workload, rewards and recognition, community and social support, perceived fairness, and values—that can influence burnout or engagement A strong alignment between an individual and these areas fosters engagement in the workplace.
Engagement is fundamentally linked to the concepts of job involvement and "flow" within social sciences Job involvement refers to how central a job situation is to an individual's identity, highlighting the importance of work in shaping personal identity.
Job involvement, as defined by Kanungo (1982), is a psychological state characterized by cognitive identification with one's job It is influenced by the salience of individual needs and the extent to which a job can fulfill those needs.
Therefore, Job involvement results from a cognitive judgment about the need satisfying abilities of the job Job in this view is tired to one’s self-image
Engagement is distinct from job involvement as it focuses on how individuals invest themselves in their work It encompasses the active expression of emotions, behaviors, and thoughts during job performance Furthermore, engagement can be seen as a precursor to job involvement, as those who are deeply engaged in their roles are likely to develop a strong identification with their jobs.
The concept of "flow," introduced by Csikszentmihalyi (1990), refers to the complete immersion and involvement individuals experience during an activity In this state, the boundaries between the self and the environment blur, leading to a holistic sensation of engagement.
In a "flow" state, individuals experience minimal conscious control over their actions, allowing them to focus intensely on specific stimuli This immersion leads to a diminished sense of self-awareness as they become one with the activity Additionally, the flow experience offers automatic feedback that the individual instinctively incorporates into their performance.
Finally, individual in a flow experience need no external rewards or goals to motivate them as the activity itself present constant challenges May et al
(2004) also agreed that engagement is most closely associated with the constructs of job involvement and flow
Engagement also was conceptualized as “a persistent, positive, affective-motivational state of fulfillment in employees characterized by vigor, dedication, and absorption.” (Schaufeli & Salanova, et al., 2002)
Vigor is defined as a high level of energy and resilience, characterized by a willingness to invest effort in one's job, the ability to resist fatigue, and persistence in overcoming challenges In contrast, dedication involves strong engagement in work, enthusiasm, and a sense of pride and inspiration.
Absorption is defined as a pleasant state of being immersed in one’s work, time passing quickly, and being unable to detach from the job
Employee engagement is increasingly recognized as the emotional and intellectual commitment employees have towards their organization, as noted by Baumruk (2004), Shaw (2005), and Richman (2006) It also refers to the discretionary effort employees put into their work, as highlighted by Frank et al (2004) When employees feel they have choices, they are more likely to act in ways that benefit their organization.
An engaged employee is a person who is fully involved in and enthusiastic about his or her job Employee engagement was also defined by Trust et al
In 2006, the concept of "passion for work" was defined as a psychological state that includes the three dimensions of engagement identified by Kahn in 1990 This definition highlights a common theme present across various interpretations of work engagement.
Employee engagement is a multifaceted concept that has been defined in various ways, yet many of these definitions closely resemble other well-established constructs.
“organizational commitment” and “organizational citizenship behavior”
Robinson et al (2004) defined engagement as "one step up from commitment." In contrast, Saks (2006) highlighted that organizational commitment pertains to an individual's attitude and attachment to their organization Engagement, however, transcends mere attitude; it reflects the extent to which an individual is focused on their work and fully immersed in their role.
Organizational Citizenship Behavior (OCB) encompasses voluntary and informal actions that support colleagues and the organization, whereas employee engagement emphasizes formal role performance over merely extra and voluntary contributions.
The varying definitions of employee engagement complicate the understanding of its overall knowledge, as each study approaches it with different protocols Without a universal definition and measurement, managing employee engagement and assessing the effectiveness of improvement efforts becomes challenging (Ferguson, 2007) This situation underscores the issues of comparability arising from these definitional differences To date, no single definition or methodology has emerged as the dominant standard in the field (Wefald, 2008).
Important of employee engagement
Managers must prioritize fostering employee engagement, as disengagement is a key factor contributing to a lack of commitment and motivation among workers When employees perceive their work as meaningless, it often leads to feelings of apathy and detachment.
In environments where individuals feel disconnected from their true selves, restoring meaning in work is crucial for enhancing employee motivation and commitment.
These views demonstrate both the humanistic and practical reasons for providing meaningful work to individuals – personal fulfillment and motivational qualities of such work
Research indicates a strong positive relationship between employee engagement and business outcomes, as supported by Saks (2006) and confirmed by a meta-analysis conducted by Harter et al (2002).
Research indicates that employee satisfaction and engagement significantly impact key business outcomes, which is crucial for many organizations Studies have also shown that factors like involvement and enthusiasm correlate with employee turnover, customer satisfaction and loyalty, safety, and, to a lesser extent, productivity and profitability.
Highly engaged employees consistently exceed expectations, as highlighted by research on employee engagement (Harter, Schmidt & Hayes, 2002) This research reveals that only one in five employees strongly agrees they have the opportunity to utilize their strengths daily Work units that score higher in this perception demonstrate significantly improved performance.
Employee engagement is essential for organizations aiming to retain valuable staff and achieve high performance Research by the Gallup Organization (2004) highlights a strong connection between employee engagement, customer loyalty, business growth, and profitability Their study revealed that stores in the top 25% for employee engagement and customer loyalty significantly outperformed those in the bottom 25% in terms of sales, customer complaints, and turnover Consistent findings indicate that engaged workplaces experience lower employee turnover, higher customer loyalty, and above-average productivity and earnings.
12 evidence that organizations can only reach their full potential through emotionally engaging employees and customers
Research by Gallup, as cited by Ott (2007), indicates that higher workplace engagement correlates with increased earnings per share (EPS) in publicly-traded companies Organizations with a ratio of more than four engaged employees for every actively disengaged employee saw 2.6 times more growth in EPS compared to those with nearly equal numbers of engaged and disengaged workers This study's reliability is strengthened by controlling for industry variability and examining EPS trends over time Additionally, findings from Watson Wyatt consulting highlight a strong connection between employee engagement, customer loyalty, and overall profitability.
There are many researches prove that engaging and involving employees make good business sense and building shareholders’ value
Negative workplace relationships may be a big part of why so many employees are not engaged with their jobs In the research of Robinson et al
In 2004, it was emphasized that organizations must cultivate and enhance engagement through a reciprocal relationship between employers and employees The research highlights the critical role of management style and leadership in fostering this two-way interaction Consequently, effective leadership is an essential factor that organizations aiming to boost employee engagement cannot overlook.
Leadership theories
Effective leadership is a crucial aspect of management that enhances efficiency and drives the achievement of organizational goals A great leader not only motivates team members to realize their full potential but also addresses their needs while pursuing these objectives.
Leadership was earlier defined by Stogdill (1957) as the individual behavior to guide a group to achieve the common target According to Richards &
Leadership involves establishing a vision and values while creating an environment conducive to achieving objectives (Engle, 1986) It is defined as the ability to influence a group towards the attainment of a vision or goals, with this influence potentially stemming from formal authority within an organization (Robbins & Judge, 2007) Additionally, leadership is about mobilizing others to accomplish tasks (Kouzes & Posner, 2007).
Since the 1900s, leadership theories have evolved, initially viewing leadership as an innate ability The Great Man theory posits that leadership is an art possessed by a select few with inherent genius, while the Trait theory distinguishes leaders from non-leaders based on personal qualities and characteristics (Robbins and Judge, 2007) However, attempts to isolate specific leadership traits have been inconclusive, as numerous traits have been identified, with significant variation across different reviews.
The shortcomings of early Trait studies prompted researchers to explore alternative approaches from the late 1940s to the 1960s, focusing on behavioral analysis.
Leadership can be categorized into two main styles: task-oriented and people-oriented, based on over a thousand identified leadership behaviors Behavioral theories propose that effective leadership can be developed through training and the acquisition of these specific behaviors.
Behavior theory aids in identifying specific leadership behaviors, but predicting effective leadership is complex due to varying situations Researchers agree that no single leadership style suits all contexts, leading to the development of contingency theories aimed at aligning effective leadership behaviors with specific circumstances Fred Fiedler's comprehensive contingency model posits that effective group performance relies on the appropriate match between a leader's style and the level of control afforded by the situation Fiedler asserts that better leader-member relations, a more structured job, and stronger position power enhance a leader's control.
Hersey and Blanchard's situational leadership theory emphasizes the importance of followers in determining a leader's effectiveness, highlighting a crucial aspect often overlooked in traditional leadership models This contingency theory focuses on the balance between task behavior and relationship behavior that a leader must provide, depending on the situation and the readiness of their followers Readiness is defined as the ability and willingness of individuals to complete a specific task, as noted by Robbins and Judge (2007).
The transactional-transformational leadership model has been a large and important part of leadership research and theory recently The terms of transactional-transformational leadership were original developed by Burns
(1978) and then cleared up by Bass (1985) In broader terms, the model explains the characteristics of effective leadership
Transactional leadership theory posits that the relationship between leaders and subordinates is built on a series of exchanges or implicit agreements (Den Hartog & Koopman, 2002) These exchanges can take various forms, including economic, political, or psychological (Burn, 1978) For instance, politicians exemplify this by trading jobs for votes or offering subsidies in return for campaign contributions.
Transformational leadership theory posits that employees perform best when guided by leaders who go beyond mere transactional interactions These leaders inspire their followers to prioritize the organization's welfare over personal interests, resulting in significant and positive impacts By addressing individual needs and empowering team members, transformational leaders foster the growth of their followers' leadership abilities while aligning personal, group, and organizational goals.
Numerous studies indicate that transformational leadership is the most effective style, inspiring followers to surpass expected performance while fostering high levels of satisfaction and commitment to both the group and the organization (Bass, 1985).
In 1998, research conducted by van Vugt, Jepson, Hart, and de Cremer (2004) provided evidence supporting this claim Their experimental study involved randomly selected participants, highlighting significant findings relevant to the topic.
16 assigned to one of three groups and took part in three investment task trials
The study examined the impact of different leadership styles—transactional, transformational, and laissez-faire—on group dynamics Participants were more inclined to leave their groups when led by transactional or laissez-faire leaders, compared to those with a transformational leader Those under a transactional leader felt dissatisfied due to limited control over decision-making, while participants with a laissez-faire leader had control but lacked motivation to exert extra effort These findings reinforce the importance of transformational leadership in enhancing employee engagement.
Transformational leadership
Transformational leadership is defined as leadership behavior that transforms the norms and values of the employees, whereby the leader motivates the workers to perform beyond their own expectations (Yuki,
Transformational leaders inspire and motivate their followers by presenting challenges and fostering individual growth, as noted by Bass (1985) This leadership style emphasizes achieving a higher collective purpose through a shared mission and vision In his research involving interviews with 70 senior executives, Bass defined transformational leadership and gathered insights on effective leaders Respondents highlighted that these leaders encouraged them to exceed expectations, enhancing their awareness and driving them towards higher performance levels.
17 innovativeness in their teams As a result, the followers trusted in the leader and heightened self-confidence, and total commitment to the organization
The subordinates of transformational leaders feel trust, admiration, loyalty, and respect toward leaders and are motivated to perform extra-role behaviors (Bass, 1985; Katz and Kahn, 1978)
The transformational leadership is comprised of four components with descriptions are presented in the following section:
Transformational leaders exemplify idealized influence through their unwavering determination and commitment to objectives, upholding high ethical standards and prioritizing the needs of their subordinates over their own They sacrifice personal gain for the benefit of others, fostering trust, admiration, and respect among their followers, who aspire to emulate them This leadership style encourages subordinates to develop and strive for their full potential, encompassing two key aspects: idealized influence attributed and idealized influence behavioral (Kedsuda & Stephen, 2007).
Leaders exhibiting Idealized influence are viewed as confident and ethical, focusing on higher-order ideals This influence manifests through behaviors that reflect core values and a strong sense of mission The Multifactor Leadership Questionnaire (MLQ) measures these aspects through distinct sub-factors, highlighting the interplay between leaders' actions and followers' perceptions For example, the MLQ item “The leader emphasizes the importance of having a collective sense of mission” illustrates idealized influence behaviors, while “The leader goes beyond self-interest for the good of the group” exemplifies the attributions made by followers regarding the leader's character.
This component can be mapped on Kahn’s (1990) conditions of engagement through relationship factors within psychological meaningfulness and safety
It is also align with elements of vigor and dedication through developing a willingness to invest in one’s work and building a sense of inspiration, significance and enthusiasm (Maslach et al, 2001)
Inspirational motivation is crucial for leaders as it drives subordinates by infusing meaning and challenge into their work By fostering team spirit and displaying enthusiasm and optimism, leaders effectively communicate a shared vision and clear goals, outlining the path to achieve them They inspire followers to envision a compelling future and maintain open communication about expectations, demonstrating a strong commitment to collective objectives This approach aligns with Kahn's (1990) concept of meaningfulness, where feeling valued and involved enhances a sense of purpose, which is also reflected in the dedication aspect identified by Maslach et al.
Transformational leaders foster intellectual stimulation by encouraging their subordinates to innovate and think creatively They challenge existing assumptions, reframe problems, and encourage fresh perspectives on familiar situations This environment promotes creativity, allowing followers to explore new approaches without fear of criticism, even if their ideas differ from those of their leaders.
Engaging followers in problem-solving fosters their creativity and encourages innovative solutions (Bass et al., 2003) This intellectual stimulation promotes a sense of psychological safety, allowing employees to express their opinions freely, which is essential for effective engagement (Kahn, 1990) Ultimately, enabling employees to voice their views is a critical requirement for fostering a collaborative work environment.
Leaders who value their employees' contributions foster effective communication and strengthen interpersonal relationships, which are crucial for enhancing engagement (Robinson et al).
Leaders who practice individualized consideration foster meaningful relationships with each team member, recognizing their unique needs for achievement and development By employing a coaching and mentoring approach, they create a supportive environment that nurtures subordinates' potential These leaders acknowledge individual differences and promote a culture of acceptance, encouraging open, two-way communication to enhance collaboration and growth.
"Management by walking around" fosters personalized interactions between leaders and their followers Leaders who practice individualized consideration actively listen and delegate tasks to promote follower development This approach enhances trust and support, which are essential for creating psychological safety, as highlighted by Kahn (1990).
Idealized influence, inspirational motivation, intellectual stimulation, and individualized consideration lead to increased employee effort, enhanced productivity, improved morale and satisfaction, greater organizational effectiveness, and stronger commitment, while also reducing turnover rates (Robbins & Judge, 2007).
Relationship between employee engagement and transformational
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One of the essential drivers for employee engagement is leadership
Leadership is a highly researched subject in organizational and business contexts, with more than 80,000 articles available in Business Source Complete and over 25,000 in PsychINFO databases (Julia & Ian, 2009).
Numerous studies indicate that transformational leadership is the most effective style, inspiring followers to surpass expected performance while fostering high levels of satisfaction and commitment to both the group and the organization (Bass, 1985).
Can transformational leaders influence follower engagement?
Transformational leaders motivate their followers by presenting a compelling vision that meets their higher needs, fostering engagement in achieving that vision This leadership style boosts employees' sense of involvement, commitment, and performance When employees receive support, inspiration, and effective coaching from their supervisors, they are more likely to find their work challenging and fulfilling, leading to higher levels of job engagement.
Transformational leadership consists of four key components: idealized influence, inspirational motivation, intellectual stimulation, and individualized consideration Charismatic leaders exhibit unconventional behaviors that serve as role models for their followers, fostering innovation Inspirational motivation enhances the meaningfulness of work, allowing followers to view their tasks within a personally significant context.
Transformational leaders foster an environment of intellectual stimulation, empowering followers to question assumptions and develop their own solutions, which enhances their sense of freedom and self-efficacy This psychological empowerment cultivates engagement, ultimately driving innovation within the organization Additionally, leaders who practice individualized consideration promote a norm of reciprocity, encouraging followers to contribute innovative solutions to organizational challenges Overall, transformational leadership significantly influences employee engagement, as these leaders are energetic, passionate, and committed to the success of each group member.
To foster a highly engaged workplace, it is essential for managers to be actively engaged themselves; without their involvement, employee engagement efforts are likely to fail (Soltis, 2004) Studies indicate that the level of employee engagement is significantly influenced by the relationships employees maintain with their managers (Blizzard, 2003).
A study by Schaufeli and Bakker (2004) explored the impact of transformational leadership on job engagement, revealing that the individual consideration aspects—coaching and feedback—are positively associated with vigor, dedication, and absorption in the workplace.
May, Gilson, and Harter (2004) discovered a significant correlation between job engagement and leadership in their research Their findings indicated that employee job engagement is closely linked to the quality of supervisor relations, which encompasses the leader's concern for employees' needs and feelings, along with providing positive feedback and encouragement.
22 the leader to voice their concerns They also found that job engagement was significantly related to meaningfulness, which measures the degree of meaning an individual discovers in their work
Metzler (2006) investigated the link between transformational and transactional leadership styles and employee engagement, focusing on vigor, dedication, and absorption among 251 university students The study utilized Bass and Avolio’s (2004) Multifactor Leadership Questionnaire (MLQ), specifically the 3rd edition, Form 5X, which comprises 32 items designed to gauge subordinates' perceptions of their supervisors' leadership styles.
Employee engagement was evaluated using the Utrecht Work Engagement Scale (UWES), which assesses engagement across three dimensions: vigor, dedication, and absorption The findings indicated that both leadership styles positively influenced employee vigor, dedication, and absorption; however, transformational leadership demonstrated a stronger predictive power for overall employee engagement.
A study by Arnold et al (2007) revealed that meaning attributed to work serves as both a partial and full mediator in the relationship between transformational leadership and psychological well-being The research indicated a significant correlation of 0.57 (p < 0.01) between transformational leadership and psychological well-being.
< 01) Both studies indicated that transformational leaders have a positive impact on the psychological well-being of their followers (Arnold et al.,
Transformational leadership is expected to influence engagement due to its similarities with psychological well-being.
A study by Zhu, Avolio, and Walumbwa (2007) examined the direct relationship between transformational leadership and employee engagement, utilizing the Gallup Corporation's Q12 scale for measuring engagement The findings revealed that leader-rated follower characteristics enhanced the positive correlation between transformational leadership and engagement; specifically, as leaders viewed their followers more favorably, the strength of this relationship increased Additionally, the research identified a significant positive direct relationship between transformational leadership and engagement, with a correlation coefficient of r = 58 (p < 0.01).
In Wefald's (2008) study on job engagement and transformational leadership, hierarchical regressions were utilized to test hypothesis six, which posited that followers' perceptions of their leader's transformational leadership would significantly predict engagement after controlling for demographic and personality variables The analysis included control variables such as manager, gender, age group, education level, and job tenure in the first step, followed by personality factors in the second step, and the leader's transformational leadership reports in the third step The findings partially supported the hypothesis, indicating that transformational leadership predicted engagement measures from Schaufeli and Britt, but not Shirom’s vigor Transformational leadership was assessed using the Global Transformational Leadership scale (GTL) developed by Carless, Wearing, and Mann.
Engagement was assessed using two established scales, including a brief version of the Utrecht Work Engagement Scale (UWES), known as UWES-9, developed by Schaufeli and Salanova in 2002.
24 second published engagement scale utilized was a four item scale by Britt, Thomas, and Dawson (2006)
The results of this research suggest that the engagement measures, but not the vigor measure are subject to the influence of the leaders as measured by followers
Research model
Based on the literature review, this study developed a research model that illustrates the connection between transformational leadership and employee engagement Transformational leadership comprises four key components: idealized influence, inspirational motivation, intellectual stimulation, and individualized consideration.
Idealized influence Inspirational motivation Intellectual stimulation Individualized consideration
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Research variables
The variables in this study were transformational leadership and employee engagement
The study focused on transformational leadership as the independent variable, which comprises four key components: Idealized influence, Inspirational motivation, Intellectual stimulation, and Individualized consideration The dependent variable examined was employee engagement.
RESEARCH METHODOLOGY
Research process
The research process includes seven steps
First, based on the literature review, the conceptual model was built Then the first draft of questionnaire was generated in accordance with the conceptual model
An in-depth interview was conducted to evaluate the content, readability, and clarity of the questionnaire Following this interview, minor adjustments were made to enhance the questionnaire's clarity and ease of understanding.
A modified questionnaire was piloted with 10 participants to ensure clarity and comprehension of the required information Following the pilot study, the finalized questionnaire was utilized for the main survey.
The quantitative research was conducted using the final questionnaire
Then Cronbach Alpha & Exploratory Factor Analysis were use to check the reliability and validity of the measurement
The finalized measurement scale was utilized to conduct a Standard Multiple Regression analysis Subsequently, the hypotheses were tested based on the outcomes of the Multiple Regression analysis.
Research model The first draft of questionnaire
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Measurement
The transformational leadership style was assessed by using Bass and Avolio’s (2004) Multifactor Leadership Questionnaire (3 rd edition, Form5X)
The Multifactor Leadership Questionnaire (MLQ) evaluates employees' perceptions of their supervisors' leadership styles, encompassing both transformational and transactional leadership This study utilized 20 items from the MLQ to analyze bank employees' ratings of their supervisors across four dimensions of transformational leadership: idealized influence (attributes and behaviors), inspirational motivation, intellectual stimulation, and individualized consideration Respondents rated the frequency of specific behaviors exhibited by their direct supervisors on a 5-point scale, ranging from "not at all" (1) to "frequently, if not always" (5).
My supervisor goes beyond self-interest for the good of the group Instill pride in others for being associated with him
Act in ways that build others' respect for Display a sense of power and confidence
My supervisor considers the moral and ethical consequences of decisions Talk about his most important values and beliefs
Specify the importance of having a strong sense of purpose Emphasize the importance of having a collective sense of mission
Inspirational Motivation 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
My supervisor talks optimistically about the future Talk enthusiastically about what needs to be accomplished Articulate a compelling vision of the future
Express confidence that goals will be achieved
My supervisor re-examines critical assumptions question to whether they are appropriate
Seek differing perspectives when solving problems Get others to look at problems from many different angles Suggest new ways of looking at how to complete assignments
My supervisor helps others to develop their strengths Spend time teaching and coaching
Treat others as individuals rather than just as a member of the group Consider each individual as having different needs, abilities and aspirations from others
Employee engagement was evaluated using the Utrecht Work Engagement Scale (UWES), developed by Schaufeli et al in 2002 This scale assesses employee engagement across three key dimensions: vigor, dedication, and absorption Respondents answer UWES items on a five-point frequency scale ranging from "not at all" (1) to "frequently, if not always" (5).
When I get up in the morning, I feel like going to work
At my work, I feel bursting with energy and always persevere, even when things do not go well
My job inspired me and makes me enthusiastic about it
I take great pride in my meaningful and purposeful work.
When I am working, I forget everything else around me
I feel happy when I working intensely
Sample and data collection
This study examines the banking sector in Ho Chi Minh City, Vietnam, encompassing foreign banks, state-owned banks, joint stock commercial banks, and private banks The focus on Ho Chi Minh City is due to its status as the largest city in Vietnam, which hosts a concentration of both local and foreign financial institutions Consequently, the sample from this city is representative of the broader banking sector in Vietnam.
This study involves managers, supervisors, officers, and staff currently employed in banks, as they are well-positioned to evaluate their superiors' leadership behaviors Data collection is conducted using a convenient sampling method.
The survey instrument was initially piloted by 10 persons (8 employees and 2 team leaders) through interview for content, readability and ambiguity
The pilot study aims to assess respondents' comprehension of the questionnaire content, their ability to provide relevant information, and the necessity of the information requested Based on the pilot results, several amendments were made to enhance the final questionnaire.
The survey questionnaire was distributed via email to individuals currently employed in banks in Ho Chi Minh City, who then forwarded it to their colleagues Additionally, a significant number of paper questionnaires were directly delivered to bank employees, who assisted in disseminating them to other staff members.
A total of 262 questionnaires were received, of which 57 were eliminated due to incomplete responses and irrelevant information This leaves 205 valid responses, resulting in an effective response rate of 78%.
According to Hair (2006), to ensure the reliability of the research, the sample size required is n ≥ 100 and n ≥ 5k (where k = number of variables)
Thus, the minimum sample size for this research is 130 The number of valid questionnaires of this study is sufficient to do data analysis.
DATA ANALYSIS AND RESULTS
Data analysis
The survey respondents consisted of 51% female and 49% male
Major of respondents were between 20 and 29 years old counting for 65.4% of the whole sample while the age ranges between 30 and 39, and between 40 and 49 were 29.3% and 3.9%
Figure 4.1: Age range of respondents
In the sample, most of the respondents have been working for the current bank more than 1 year and less than 5 years counting for total 63.4%
Approximately 18% of respondents reported having more than five years of service.
Figure 4.2: Length of service of respondents with the bank
In Vietnam's banking sector, the majority of both state-owned and private banks have undergone equitization, resulting in two primary types of banks: commercial joint stock banks and foreign-owned banks In this study's sample, 77% of respondents are employed by commercial joint stock banks, while only 23% work for foreign-owned banks.
The survey aimed to gather insights from both managerial and non-managerial levels, revealing that 5.4% of respondents were managers, 15.1% were supervisors, and a significant 78.5% were staff or officers Additionally, it was found that 22% of the respondents' superiors were at the supervisor level, 63% were department heads, and 14% held director positions.
The T-test was utilized to determine whether there are significant differences in employee engagement levels between male and female employees, as well as their perceptions of various dimensions of transformational leadership behavior exhibited by their leaders at work.
The results indicate that Levene’s test for gender and Idealized Influence (Attributes) yielded a significance level greater than 0.05, leading to the adoption of the equal variance assumption The two-tailed significance value was 0.215, suggesting no significant difference in how employees of different genders perceive the idealized influence behaviors of their leaders For further details, refer to Table 4.2 in Appendix 1.
In the analysis of Idealized Influence (Behavior), Levene’s test indicated a significance level of 0.176, which is greater than 0.05, leading to the adoption of the equal variance assumption The two-tailed significance value was found to be 0.177, suggesting that there is no significant difference between male and female employees.
43 perceived the idealized Influence (behavior) from their leaders Please see table 4.2 (appendix 1)
The analysis of Inspiration Motivation revealed that the equal variance assumption was valid, as indicated by Levene’s test significance level of 0.846 (greater than 0.05) Additionally, the two-tailed significance value was 0.994 (also greater than 0.05), suggesting no significant gender differences among employees in their perception of Inspirational Motivation behaviors exhibited by their leaders Refer to Table 4.2 in Appendix 1 for further details.
With the significance level of Levene’s test is 0.750(>0.05) and the sig
(2-tailes) equaled 0.751 (>0.05), the results show that male and female employee perceived the Intellectual Stimulation behavior from their leaders the same Please see table 4.2 (appendix 1)
There was also showedthat male and female employee aware the same about Individualized Consideration behavior from their leaders (sig Levene’s Test = 0.428 (>0.05) and sig (2-tailes) equaled 0.897 (>0.05)) Please see table 4.2 (appendix 1)
The level of employee engagement also was not different between male and female ((sig Levene’s Test = 0.956 (>0.05) and sig (2-tailes) equaled 0.462 (>0.05)) Please see table 4.2 (appendix 1)
The Analysis of Variance (ANOVA) was employed to examine the relationship between employees' age and length of service, and their levels of engagement, as well as their perceptions of transformational leadership behaviors exhibited by their leaders in the workplace.
The findings indicate that employee engagement and perception of the four components of transformational leadership, as implemented by their superiors, do not vary across different age groups (p > 0.05) For detailed data, refer to Table 4.3 in Appendix 1.
The findings indicate that employees exhibit a consistent level of engagement and perception of the four components of transformational leadership behavior, irrespective of their years of service at the bank.
After gathering valid responses from questionnaires, data analysis is conducted using SPSS The study begins with descriptive analysis, followed by reliability analysis, factor analysis, and regression analysis.
Descriptive analysis shows positive results of all variables Transformational Leadership and Employee Engagement
The mean value 3.16 of Employee Engagement indicates that almost respondents of this survey have a high level of engagement with their banks
A significant portion of respondents shows a reluctance to exceed formal job expectations while expressing a commitment to long-term employment with the bank Specifically, 13% of participants plan to stay until retirement, 22% intend to work for over five years, and 28% are willing to remain for three to five more years.
The mean value of 3.42 for Transformational Leadership reveals that employees feel their superiors show much transformational leadership behaviors for most of the time
In the realm of transformational leadership, Idealized Influence and Inspirational Motivation stand out with mean values of M=3.62 and M=3.49, respectively This indicates that employees perceive their leaders as inspiring and charismatic figures These leaders serve as role models, demonstrating exceptional capabilities and determination, which in turn motivates their subordinates to envision appealing future possibilities.
Inspiration Motivation 205 1.00 5.00 3.4854 70652 Intellectual Stimulation 205 1.00 5.00 3.2866 80737 Individualized
Reliability analysis is used to validate accuracy of measurement scales
This study employed Cronbach’s Alpha to assess the internal consistency of the data collected The analysis focused on the reliability of the variables involved in the research, ensuring that the measurements were consistent and valid.
46 factor of the questionnaire According to Nunnally & Bernstein (1994), if Cronbach’s α≥ 0.6, the scale can be accepted in reliability Thus, a scale has Cronbach’s α vary within [0.70-0.80] means high reliability
This research will test Cronbach’s α for each component of Transformational leadership and Employee engagement
The Cronbach’s α for Idealized Influence (Attributes) (4 items) with α
= 0.73 means that this scale is high reliability and indicates strong internal consistency among the four items
A variable is considered acceptable for item-analysis if its corrected Item-Total Correlation is greater than or equal to 0.3, indicating a strong correlation (Nunnally & Bernstein, 1994) As shown in Table 4.7, all variables meet this criterion and are therefore accepted.
