Tiểu luận Quản trị kinh doanh: The Relation Between Organizational Culture And Job Sastisfaction In Case Of Vietnam Association Of Business Culture Development

ABSTRACT The purposes of this study were to determine if there is a relationship between job satisfaction and organizational culture at Vietnam Association of Business Culture Developmen

VNU- UNIVERSITY OF ECONOMICS AND BUSINESS

FACULTY OF BUSINESS AND ADMINISTRATION

THE RELATION BETWEEN

ORGANIZATIONAL CULTURE AND JOB SASTISFACTION

IN CASE OF VIETNAM ASSOCIATION OF BUSINESS CULTURE

DEVELOPMENT

Supervisor’s name: Dr TRAN DOAN KIM

Student’s name: DO NHU CHINHStudent ID: 11050014

Intake: QH2011-E QKTD

Program: International standard

Hanoi — May 2015

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LIST OF TABLES

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I would like to acknowledge the guidance and insight of my supervisor

Dr Tran Doan Kim Thank you for your direction and encouragement throughout

my study The hours spent reviewing drafts and offering suggestions have made

my dissertation a well-crafted document I thank you for your time and support

I express my sincerest appreciation to composer, general Nguyen An

Thuyen who provide me a great internship at Vietnam Association of Business

Also, | would like to thank group “H6 Trợ SPSS” for assisting me in the

statistical calculations contained in Chapter 3 They took the time to assist me

and I will always appreciate their willingness to give a hand

Last but not least, many thanks to my parents, for all of the love,ercouragement, aggravation, and empathy you have displayed throughout all of

my educational endeavors | love you all more than you could ever imagine.

Thank to my friends for helping me to overcome stress and difficult time

dưing doing the thesis

ABSTRACT

The purposes of this study were to determine if there is a relationship

between job satisfaction and organizational culture at Vietnam Association of

Business Culture Development (VNABCD), and to measure those relationships

if they were present Understanding how these areas relate may enhance strategic

planning and personnel decisions for leaders within organizations The

population of this study was the 192 full-time employees from 9 companieswhich are members of Vietnam Association of Business Culture Development

Participants in the study were asked to complete three test instruments: anEmployee Demographic Survey, Organizational Culture DimensionQuestionnaire developed by Business Research Lab, and the Brief Index ofAffective Job Satisfaction (BIAJS)

The study shows a positive relationship between 2 organizational culture

dimensions (reward and recognition, and balance of work) and job satisfaction.

Significance of this study

In today's business environment, organizational culture is used as a

powerful tool that describes many facets of a workplace as well as to quantify the

way a business functions Research has confirmed that organizational culture is

not only able to change, guide and display but also give significant contributions

by influencing the thought, feeling, interacting and performance in the

organization The importance of culture is enhanced through its impact on employee morale and work attitudes such as job satisfaction

Organizational culture and job satisfaction have received significant

attention in studies of the work place This is due to the general recognition that

these variables can be the major determinants of organizational performance and

effectiveness Some studies have reported strong correlations of organizational culture and job satisfaction with turnover When employees are dissatisfied at work, they are less committed and will look for other opportunities to quit If

opportunities are unavailable, they may emotionally or mentally “withdraw”

from the organization Thus, job satisfaction is important attitude in assessing

employees’ intention to quit and the overall contribution of the employee to the

organization

Furthermore, recent researches about organizational culture were firmly agreed that gaining an understanding of how organizational culture affects job

satisfaction within the organizational framework may provide the competitive

advantage for organizational success

Purpose of the study

The purposes of this study are to determine if (a) there is a relationship

between job satisfaction and organizational culture at VNABCD (b) to measurethose relationships

Scope of the study

Space: Various companies which are members of Vietnam Association ofBusiness Culture Development

Time: from 2TM, March to 17", April

CHAPTER 1: LITERATURE REVIEW

1.1 Introduction

Job satisfaction and organizational culture have been interest topic ofsocial science, business, and education researchers for long time They tried toanalyze and evaluate the relation between the individual employee’s jobsatisfaction and organizational culture Most of studies about this topic have been

conducted in the service industry However, researchers always seeking way to

apply in other industries

1.2 An Overview of Job Satisfaction

1.2.1 Concept of job satisfaction

Job satisfaction is a topic that often seems to be self-explanatory If one is

satisfied with his or her current employment situation, then he or she must have

an acceptable level of “job satisfaction” In some instances, this may be true

However, job satisfaction is more complex and involves considerably moreanalvsis than one may imagine

According to Morgan, McDonagh, & Ryan-Morgan, there is two types of

job satisfaction The first type is global job satisfaction concerning about overall

level of satisfaction Global job satisfaction is determined by asking individuals

on the factors and motivational forces that led to their view of job satisfaction

This type of job satisfaction is quite simplistic in nature because it can be

measured by some short questions It may be said that understanding job

satis'action goes much deeper than asking a few questions to the individualempoyee However, global job satisfaction is considered a good _ initialinvestigation into the level of job satisfaction

The second type of job satisfaction called facet job satisfaction may beconsidered the deeper global job satisfaction This type sees level of job

satis‘action of an individual in terms of specific components of his or her job

postion For example, a sale person that finds great pleasure in having personal

contact with clients but despises the paperwork generated from his or herresponsibilities Satisfaction is derived from one facet of his or her work whiledispleasure may result from another facet Employers and managers may noticethat different aspects of an employee’s work experience will result in differing

levels of job satisfaction Measuring facet job satisfaction is important and is achieved by performing regular evaluations on the intrinsic and extrinsic factors that affect employee satisfaction (Morgan, McDonagh, & Ryan-Morgan, 1995).

Morgan, McDonagh, and Ryan-Morgan identified several key intrinsic

and extrinsic factors that could influence level of employees’ satisfaction The

intrinsic factors are related to the employee’s position such as the nature of work,

specialization of tasks Extrinsic factors that may shape job satisfaction are thosecomponents that appear outside the actual performance of work responsibilities.Salary, the work environment, and the organizational culture are generallyrecognized as extrinsic factors (Morgan, McDonagh, & Ryan-Morgan, 1995)

Ganzach went different way by considering demographic characteristics

as a factor influencing job satisfaction He suggested that an employee’s level of

education might influence job satisfaction Those who have higher levels of

education were more likely to find employment opportunities that high level ofprofessional and emotional reward These positions may lead to an indirect

increase in the level of job satisfaction of the individual Conversely, thoseindividuals with higher levels of education may also find decreasing levels of jobsatisfaction if the reward is not worth of their education It can be said those with

higher levels of education may have higher levels of reward expectation frompositions Job satisfaction may decrease when the individual finds that the salary,benefits, or other rewards associated with the position are below his or her

expectations (Ganzach 2003)

Greenleaf (1977) developed a philosophy of servant leadership When

servant leadership are present within an organization, the levels of employee job

satisfaction in that organization may improve due to the culture present.Greenleaf described servant leadership in terms of an institution transforming its

culture into one that serves all vital components of that organization The vitalcomponents may range from external customers to the employees that comprisethe organization.

In conclusion, job satisfaction is viewed in multiple facets ranging fromoverall to separate components However, during this study, the researcher would

like to use global job satisfaction according to Morgan, McDonagh, &

Ryan-Morgan From now on, job satisfaction will be understood as global job

satisfaction or overall job satisfaction.

1.2.2 Measurements of job satisfaction

Measuring job satisfaction is difficult, because it is abstract personalcognition that only exists in the mind of individual However, some researchershave tried to develop instruments for measuring job satisfaction Most of theseinstruments are based on quantitative method

Originally Index of Work satisfaction (IWS) was develop in the 1972s(Stamp, 1997 cited in Norbu, 2010) This scale is to measure various components

of job satisfaction It includes six components: |) professional status, 2) taskrequirements, 3) pay, 4) interaction, 5) organizational policies, and 6) autonomy.This scale was developed based on the combination of Maslow’s theory andHerzberg’s theory It consisted of 48 items and ranged on a 7-point Likert scale

Previous studies have reported the Cronbach coefficient alpha in the range of for

the overall scale

Originally the McCloskey/Muller Satisfaction Scale (MMSS) was

developed in the 1974s (McCloskey & Muller, 1990) This scale measures

hospital nurses’ job satisfaction from 8 subscales: 1) extrinsic rewards, 2)

scheduling, 3) the balance of family and work, 4) co-worker, 5) interaction opportunities, 6) professional opportunities, 7) praise and recognition, and 8)

control responsibility This scale was developed based on theories of Maslow and

Burn It consisted of 31 items and ranged on a 5-point Likert scale Previousstudies have reported the Cronbach coefficient alpha of 89 for the overall scale

and validity of 556 This scale is well established instrument for measuring jobsatisfaction (Arab, Pourreza, Akbari, Ramesh, & Aghlmand, 2007; Duong,

2003)

The Job Satisfaction Survey (JSS) was developed in 1985s by Spector.

This scale assesses employee attitudes about the job and aspects of job from 9separate facets of the job satisfaction: 1) pay and pay raises, 2) promotional

opportunities, 3) fringe benefits, 4) contingent reward, 5) supervision, 6)

coworker, 7) nature of work, 8) communication within the organization, and 9)operating procedures The scale was summated rating scale format which is the

most popular for job satisfaction scales It consisted of 36 items and ranged on a 6-point Likert scale from I-dissapree strongly to 6-agree strongly It has some of

the items written in negatives direction These items have to be reversing scored

before summing up the score Spector reported coefficient alphas ranging

0.60-0.91 for the overall measure (Spector, 1997) The higher mean score is the higherlevel of job satisfaction Level of job satisfaction is low when the mean score isless than 3.00, moderate when the mean score is 3.00-4.00, high when the mean

score is greater than 4.00 (Spector, 2007).

In 2002, Kinicki, McKee-Ryan and Schriesheim developed JobDescriptive Index (JDI) The JDI is designed to measure five sub-dimensions,

which are satisfaction with work, supervision, coworkers, pay, and promotion(Kinicki et al., 2002) It is a cognitive job satisfaction measure, because it is

based on logical and rational evaluation of the job conditions Cognitive

satisfaction is an appraisal based on comparisons which do not rely on emotional

judgments Instead cognitive satisfaction includes evaluations of conditions,Opportunities, or outcomes (Moorman, 1993) Therefore, cognitive jobsatisfaction measures include questions about the nature of the job, the workingconditions, and the opportunities to satisfy important needs The questions askfor appraisals of the job, not descriptions of the feelings (Moorman, 1993)

The next job satisfaction questionnaire is the Minnesota Satisfaction

Questionnaire (MSQ) This questionnaire consists of a list of job conditions

which the respondent is asked to appraise The job conditions include the

working conditions, the pay, the quality of supervision, and the degree of

autonomy and importance in the job (Moorman, 1993) The respondent is not

asked to mention the types of feelings associated with the work or the degree the

work evokes positive or negative emotions As opposed to the cognitive

measures, there are affective measures of job satisfaction Affective satisfaction

is satisfaction that is based on overall positive emotional appraisal of the job.

This satisfaction focuses on whether the job evokes a good mood and positivefeelings and hence affective measures of job satisfaction include questions about

a respondent’s feelings on the job or their mood when working (Moorman,

1993) One example is the Faces Scale, which is one of the first scales used

widely This measure is affectively oriented since it asks for no detailed

appraisals The respondent just reports which facial expressions bestapproximates his/her own while working The face range from very happy to

very sad and clearly reflects an emotional response to work (Moorman, 1993)

The latest way of measuring job satisfaction is the Brief Index of

Affective Job Satisfaction (BIAJS) by Thompson & Phua (2012) The BIAJS

tries to assess the overall job satisfaction by using 5 questions This measurement

show the increase in validity, there is also an increase in comparability in somerecent researches The author of this thesis also choose this measure because of

its validity indicated in earlier studies and its simplicity It is clear thatVietnamese staffs find difficulty in answering vast amount of questions, so shortquestionnaire will work best

1.3 An Overview of Organizational Culture

1.3.1 Concept of Organizational Culture

Organizational culture is a phenomenon that occurs in many different

facets The formal definition of organizational culture stated by Schein (2004)

was as follows: a pattern of shared basic assumptions that was learned by a group

as it solved its problems of external adaptations and internal integration, that has

worked well enough to be considered valid and, therefore, to be taught to new

members as the correct way to perceive, think, and feel in relation to thoseproblems Culture is an area that has not benefited from the breadth of researchand discussion job satisfaction and motivation However, organizational culturehas a major influence on satisfaction for individual employees.

Schein (2004) described culture as the “phenomena that are below the

surface, that are powerful in their impact but invisible and to a considerabledegree unconscious” Culture plays an important role of lifeblood for anorganization The personality that an organization treat employees and to externalcustomers can best is viewed through its culture Therefore, as members of theorganization, the culture of the organization they participated in will shape theirfuture experiences elsewhere

Conversely, as new members, their past experiences will play a role inshaping the culture of the organization in the future Sometimes the size of the

organization plays a role in the establishment of its culture It is easier for smallerorganizations to have a unique culture For larger organizations, it is moredifficult to possess one unique culture The organizational culture for largerorganizations may be as a group of smaller subcultures Not only could there bemultiple subcultures, each of these subcultures could range in depth and breadth

The individual learns to function in one or many of the subcultures in order toachieve his or her goals and objectives (Schein, 2004)

Organizational culture can be viewed in three different levels The first level is visible explicitly in the organization and is called artifacts Artifacts

include the majority of an organization’s capital, both human and physical It

contains an overview of the processes and structure of the organization The

artifact level is similar in nature to the symbolic frame of Bolman and Deal in

that it also incorporates rituals, myths, and ceremonies (Schein, 2004; Bolman &

Deal, 1999) The second level of culture incorporates the strategic goals,initiatives, and philosophies of the organization This level is best described as

the espoused beliefs and values level As an organization matures, the strength of

the cultural philosophies and goals become more engrained in the culture Early

in the development of organizational culture, these established beliefs may meet

with challenges and resistance If the beliefs are proven to be beneficial, they

become part of the organization As time progresses, the more successful the

belief, the more it can be solidified into the cultural foundation of the

organization (Schein, 2004) The final level of culture is the fundamentalassumptions of the organization These assumptions are a product of the effects

of successful organizational goals and philosophies Ideas or operationalapproaches usually begin with feelings of great opportunity and considerabledoubt As these approaches are continuously utilized and are proven successful,the way they are viewed changes The approaches become second nature and

their performance becomes mundane

A fundamental assumption is achieved when components of theorganization reach the point that a philosophy projects such a feeling of securitythat it no longer serves as a focus of debate (Schein, 2004) Peterson (2002)described culture in terms of how it relates to schools His definition includedcomponents such as ceremonies, rituals, and the overall personal of the school

that is established over time These elements link together in order to create the

predominant culture of an individual school Each school culture has the

potential to be considered either positive or toxic A positive school cultureoccurs when the school shares a vision and purpose All levels of school

employees are committed to continuous improvement and sacrificing personal

achievement for the benefit of the larger purpose Strong relationships existwithin the school and collaboration among employees in encouraged

Organizational culture is truly the representation of the collective

relationships, ceremonies, and rituals present within the organization It isevident that all individuals play an integral role in shaping the direction of the

organizational culture The potential for developing a negative culture is always

possible and the effort required to reverse a negative culture is tremendous Byunderstanding the components and composition of the organizational culture,both leaders and followers will be better prepared to create and enjoy the mostpositive and productive culture possible

Culture itself is a product of a group of people living at the same place and

having similar attitudes and behavior People who belong to a certain culture

share similar norms, history, religion, values and artifacts which distinguish themfrom others Therefore, there are numerous national cultures and even more

subcultures, providing certain types of organization and action In modernsocieties, however, culture is considered to be a tangible or intangible

environment in which a group of people live and work together (Gjuraj, 2013) In

organizational analysis, culture describes the influence and interaction among

employees and between employees and the specific institution, organization or

service they work in Hence, contemporary organizations and companies areconsidered to be social groups, and in this way their function should be studiedand promoted

Studying an organization’s specific culture is fundamental to the

description and = analysis of organizational phenomena (Tharp,

2009).Organizational culture has been a subject of investigation for many

decades, as the fact that distinctions between values and expectations of

employees with different cultural backgrounds had always been clear (Tayeb,

1996) Black et al (1992) have come to the conclusion that problems that are

likely to come up during international business activities and working settings are

wrongly attributed to professional incompetence, while they most probably

occur due to the employees inability to perceive other people’s ideas and

attitudes and adapt to foreign strategies Therefore, a fundamental challenge fororganizations is to make their employees re-categorize demographicallydissimilar people as in-group members, in order to increase interaction and

mutual trust and benefit from information diversity (Gruenfeld et al., 1996).

As Hofstede (1991) has noted, the employees’ behavior in their workplace

is influenced by three different cultures: their national, their occupational and

their organizational culture More specifically, an individual’s attitudes and

beliefs toward his/ her occupation are chiefly influenced by his/ her personal

values and ideals, which have been achieved in the frame of family during his/

her earlier development Secondly, a person’s specific views, perceptions and

ambitions are formed during school and professional life and belong to the

occupational culture shared among partners.

However, Cooke and Rousseau (1988) viewed organizational culture as

multiple dimensions He suggested 5 dimension including Reward and

Recognition; Individual Initiative; Balance of Work; Ethical Behavior; andCarrier Development Therefore, organizational culture becomes easier to

understand and measure than most of other models Furthermore, the purpose of

the study was to examine the relation between organizational culture and job

satisfaction, so this concept of organizational culture appeared as most suitablemodel for this study

1.3.2 Types of Organizational Culture

Many researchers have tried distinguish different types of organizationalculture in order to describe the format and function of institutions andorganizations

Deal and Kennedy (1982) had suggested four types of organizational

culture, referring to the organization’s strategies and expectations from

employees: 1) The Tough-Guy, Macho culture: employees who belong to thistype of culture usually work under a lot of pressure and are considered to be

eager to take risks In order to fulfill their personal ambitions and theirorganization’s goals 2) The Work Hard/Play Hard culture: in organizations with

this type of culture, the behavior of employees revolves around the needs ofcustomers and is characterized by high speed action in order to get quick results.3) The Bet-Your-Company culture: this type of culture refers mainly to thecharacter of the institution or company, which is likely to make carefully

planned, yet risky, choices and investments 4) The Process culture: the last type

of organizational culture is based on precision, detail and technical perfection,

low risk investments and low levels of anxiety among employees

Another four types of organizational culture have been suggested byXenikou and Furnham (1996), referring to the organization’s goals and decision-

making: |) The Openness to change/ innovation culture: this type of culture is

human-oriented and promotes affiliation, achievement, self-actualization, task

support and task innovation 2) The Task-oriented culture: organizations with this

type of culture focus on detail and quality of products or services, while superiors

are characterized by high ambitions and chase success 3) The Bureaucratic culture: this type of culture is rather conservative and employees are characterized by centralized decision making 4) The Competition/Confrontation

culture: organizations with this type of culture are highly competitive, oriented, while superiors chase perfection and achievement

goal-Daft (2001) suggested another four types of organizational culture, based

on environmental requirements: 1) Entrepreneurial Culture: OrganizationalStrategic focus is external so that it acts to meet needs and requirements ofclientele and customers in a dynamic and variable environment It creates

changes and innovation, risk ability, prospect, group working, freedom andautonomy 2) Involvement Culture: It is focused on participation and

involvement of organizational members and environmental expectations which

vary promptly and it creates sense of accountability, ownership and further

commitment to organization in personnel 3) Mission Culture: It takes service to customers in outside environment into consideration It does not need to rapid

changes and instead personnel are accountable for performance up to certain

level 4) Bureaucratic Culture: It is focused internally and adapted to a fixenvironment In such a culture, personnel’s involvement is low but supervisionand control over environment are high Some factors like organizationaldiscipline and rank and position and observance of hierarchy are highly

important in this culture.

Denilson et al (2004) have distinguished four traits types of an

organization’s subcultures: 1) Adaptability: creating change, customer focus,

organizational learning 2) Mission: strategic direction and intent, goals and

objectives, vision 3) Consistency: core values, agreement, coordination andintegration 4) Involvement: empowerment, team orientation, capability

development

Another model of organizational culture types has been developed by

Cameron and Quinn (2006) They suggested four types of culture which refer mainly to the relations among employees: 1) The Hierarchical culture: this type

of culture is considered to be well coordinated, characterized by formal rules and policies 2) The Market culture: organizations that adopt this type of culture aim

to be highly competitive, while winning is the “glue” that holds the employees

and the organization together 3) The Clan culture: this type of culture refers to a

friendly and “cozy” working environment, where the working force is perceived

as an extended family and the superiors are perceived as mentors; employees arecharacterized by high job and organization commitment and develop friendlyrelations 4) The Adhocracy type: this type of culture is characterized by

innovation and risk taking, assured by a highly creative and dynamic working

environment Chatman et al (1998) mention two different types-dimensions oforganizational culture: Individualism and Collectivism, which are likely to

influence the process of employees’ social categorization Individualistic

organizational cultures focus on and reward employees’ personalaccomplishments, individual characteristics and abilities This dimension is

rather flexible, as employees are allowed and encouraged to behave in their ownpersonal way Therefore, organizational membership is not salient and

personality traits are appreciated As Markus and Kitayama (1991, p 224) put it,

“individuals maintain their independence from others by attending to the self and

by discovering and expressing their unique inner attributes” Collectivistic

organizational cultures, on the other hand, are characterized by a general

agreement of acceptable actions and behaviors, which assure shared objectives,interchangeable interests and commonalities among employees The mainpriority of collectivistic cultures is independence and cooperation, soorganizational memberships form a basis of social categorization In addition,

employees are likely to accept harsh criticism if they deviate from the culture’snorms (Triandis, 1995), so simply being a member of the organization may be

enough to qualify an employee as an in-group member (Wagner, 1995).However, since collectivistic organizational cultures focus on common targetsand aspirations, employees may perceive their internal disagreements as

constructive, rather than threatening for the organization’s success On the

contrary, disagreements and challenges in the frame of individualistic

organizational cultures are likely to be taken more personally and be perceived as

competitive (Axelrod, 1984).

So far it has been made clear that although the concept of organizational

culture is not easily captured and defined, it is an observable and significant

aspect of an organization’s function Since it includes the employee’s shared beliefs, values, behaviors and symbols, it strongly affects individual decisions and group actions Organizational culture could possibly be perceived as a

compass which provides the institution with direction It offers a kind of informal

language for the interpretation of issues and events; it ensures a sense of order

and reduces employees’ uncertainty

Despite the variety of definitions and models suggested for the content

and types of organizational culture, similar descriptions and characteristics can

be found For instance, organizational cultures and its subtypes mainly refer to

the organization’s hierarchy and structure, goals and investment policies In

addition, the working conditions and employees’ behaviors are taken into

consideration while the importance of internal relations is significant.

Additionally, the organization culture of an institution seems to reflect its inner

coherence and completion and external function and adjustment (Schein, 1991).

In general, ii can be said that organizational culture is defined in terms of

employees and superiors, products, processes and leadership’s espoused values

It includes the institution’s experiences, general expectations, internal philosophyand values that hold the working force together and is reflected in its image,external interactions and future plans Therefore, the type of an institution’sorganizationa culture affects its function and general well-being

For this reason, the phenomenon is considered to be multidimensional and

appertains to he fields of psychology, sociology, human resource studies, as well

as business <dministration and management, marketing, product developmentand advertisire (Blake and Lawrence, 1989) Peters and Waterman (1982) have

noted that the elements of an organization’s culture decide its possibilities ofsuccess, while the research of Kotter and Heskett (1992) has revealed that thestronger an organization culture is, the more likely it is to last through the changeand replacement of employees Moreover, it must be stated that no organizationalculture type is considered to be better than another The value of each type ismeasured by a specific organization’s well-being, total function and goal

achievement.

For example, the study of Chuah and Wong (2012) showed that in order tocontrol a clan type organizational culture, the organization’s leaders shouldemploy significant resources and authority to influence the building and

leveraging of the clan The leaders “controllers” access a large amount of

resources that are used to guide others for project outcomes, but also promote the

build-up for shared structures, cognition and relationships that smooth the

development of a clan control that strengthen or inhibit clan norms

Other authors, like Rud (2009) focus on collaborative leadership teams,

which are essential for commitment to strategic use of information, regardless theorganizational culture type, in order to reinforce knowledge process Based onHeskett’ state that “organization culture can account for 20-30% of the

differential in corporate performance when compared with ‘culturallyunremarkable” competitors”, Coleman (2013) has distinguished six common

components of successful types of organizational culture: 1) Vision: A specificgoal or mission provides an organization with purpose, which guides employees’decisions and improves relations with customers and suppliers 2) Values: The

values of an institution are the core of its culture They provide guidelines to theemployees, so that communication among colleagues is promoted, professional

standards are held high and the institution’s vision is achieved 3) Practices: Thespecific values of an organization should be followed by equivalent practices,which should be reinforced in review criteria and promotion policies, so that theybecome part of the organization’s everyday life For example, if an institution’s

culture is hierarchical and “flat”, junior team members should be encouraged todissert in discussions without fear or negative repercussions 4) People: The

values of an organization should be embraced by both its existing and future

employees and therefore the recruiting policies should focus on people who are

not only talented, but suitable for the organization’s specific culture type 5) Narrative: An organization’s unique history should be identified, shaped and

retold as part of its ongoing culture 6) Place: An integral element of anorganizational culture is its location and working environment, perceived interms of geography, architecture and aesthetic design All those factors are very

likely to influence the employees’ values and behaviors, and thus promote the

organization’s performance and effectiveness Form the entire above, one could

support that the study and improvement of an organization’s culture is a

contributing factor to its success

A few decades back, Hofstede (1986) had pointed out that organizationalculture is fundamental for superior’s perception and control of the organization’s

working force and potential Jackson (2011, p 58) has noted that in modern

societies and technology-based business organizations “culture is becomingincreasingly important given the adoption of groupware applications, enterprise

resource planning systems and other internet based systems by organizations,

which support cross collaboration and require greater user participation at all

levels”

Furthermore, it can be said that organizational culture is a complex

phenomenon, a product of dynamic social process As and Myers (1995, p 52)

had put it: “Cultures are challenged, ever-changing and emergent: they areinvented and reinvented in social life” Consequently, organizational culture hasbeen linked to many occupational phenomena, like human resource management,job commitment, job satisfaction, and -in many cases- occupational stress andburnout This fact has been supported by many researchers, like Farris et al

(1973), who revealed the role of trust in organizational interpersonal

relationships In their research, trust was related to organizational culture and

employees’ job commitment and integration into work groups and organizations

Martins &

Terblanche (2003) stated that the two main functions of organizational

culture, internal integration and coordination, have a strong influence on anorganization’s creativity and innovation More specifically, internal integrationdescribes the feeling of belonging and commitment, while coordination refers tothe creation of a competitive ground and development of social glue that holds an

organization together.

1.3.3 Measuring Organizational Culture

Apart from the various types and models that have been suggested for thedescription of organizational culture, quite a big number of instruments for themeasurement of organizational culture have been developed as well In the lastfew decades, both academics and practitioners in management science havefocused on studying possible ways to measure the dimensions of organizationalculture and how such measures relate to the effectiveness and competitiveness of

an organization (Mobley et al., 2005)

Harrison (1975) developed an inventory to address both the existing andthe preferred culture within an organization called the Harrison’s Organizational

Ideology Questionnaire The inventory consists of 15 items assessing the

ideology which has been developed by an organization’s employees in terms of

four dimensions, orientation to power, roles, tasks and individuals Respondentsare asked to rank four statements in each of the 15 items in terms of howrepresentative they are both of the organization and of their own attitudes

Another famous instrument of measuring organizational culture is the

Organizational Culture Inventory (OCI), developed by Cooke and Lafferty(1987) It includes 120 items which assess shared norms and expectations that arelikely to affect the ways of thinking and behavior of group members, resulting 12

styles: humanistic/helpful, affinitive, approval, conventional, dependent,

avoidance, oppositional, power, competitiveness, competence/perfectionalist,

achievement, and self-actualization After analyzing those styles, three factors

arise: people/security culture, satisfaction culture and task/security culture

In 1987 as well, Glaser, Zamanou and Hacker carried out the Organizational Culture Survey, designed to address six empirical factors:

teamwork and conflict, climate and morale, information flow, involvement,

supervision, meetings It includes 31 items and the responses were given in a 5 point scale

-In 1990, Hofstede, Neuijen, Ohayv and Sanders carried out a qualitative and quantitative study of 20 cases using Hofstede’s Organizational Culture

Questionnaire The questionnaire included 135 items given in 5-point scales,which were based on three values: need for security, importance of work andneed for authority Within these, there are six factors relating to practice issues:

process vs outcome, employees vs task, parochial vs professional, open vs

closed system, loose vs tight control, normative vs pragmatic

In the mid-1990°s, McKenzie’s Culture Questionnaire (1995) was

developed in the frame of National Health Service It includes 76 items andrespondents tick each statement that they consider to be broadly true of their

organization The questionnaire assesses various factors: employees’

commitment, attitudes to and belief about innovation, attitudes to change, style of

conflict resolution, management style, confidence in leadership, openness and

trust, teamwork and cooperation, action orientation, human resource orientation, organizational direction In 1996, Walker, Symon and Davies published the

Corporate Culture Questionnaire, evaluating four principal domains:

performance, human resources, decision-making and relationships There are two

versions of the Questionnaire, one of 69 and another of 126 items, each given in

a 5-point Likert type scale

Buckingham and Coffman (2000) suggested the Core Employee Opinion

Questionnaire which addressed 13 issues of business units, companies and other

Organizations: overall satisfaction, understanding of expectations, access to

required resources, appropriate use of skills, recognition and praise for achievements, relationship with supervisors, encouragement for self-

development, perceptions of worth, engagement with organizational mission,

commitment of all employees, friendship appraisal, opportunities for career

progression.

Cameron and Quinn (2006) created the famous Organizational Culture

Assessment Instrument (OCAI), based on the four culture types mentioned

above The evaluation of a culture is made through those four core values, in a 2

x 2 competing values, Flexibility and discretion opposing Stability and control

and Internal focus and integration versus External focus and differentiation

According to Jones et al (2006), internal versus external focus separates the

organizational improvements driven by mostly internal business processes andpeople caring from the ones caused by external stakeholder wishes Stability

versus flexibility distinguishes between organizations that are more stable and

organizations that promote innovation, personal growth, continuous organizationimprovement and change The competing values cross upon six dimensions:

Dominant characteristics, Organizational leadership, Management of employees,Organizational glue, Strategic emphasis and Criteria of success

Base on dimensional culture theory from Cooke and Rousseau (1988), in

2012, Business Research Lab developed 20-items questionnaire to assess 5

dimensions of organizational culture This measurement shows high level of

reliability in study of Bandana Nayak and Anil Barik (2013) In this research, thismeasurement will be used to determine organizational culture situation of

member of Vietnam Association of Business Culture Development

1.4 Research in Organizational Culture, Job Satisfaction

There has been a large amount of researches conducted in theorganizational culture and job satisfaction The majority of this research has

focused on the service industry in both public and private organizations Most of

researches indicated organizational culture have effect on job satisfaction

Lok and Crawford (1999) evaluated the relationship between

organizational culture, subculture, and commitment Through their research, they

found that organizational subculture had a much stronger relationship to

commitment than organizational culture had Furthermore, the researchers found that the level of education, number of years in the particular position, and total number of years of experience did not affect commitment.

Another the study of Lok and Crawford (2004) conducted among managers from Hong Kong and Australia showed that Australian managers

reported higher the innovative and supportive culture measures and on job

satisfaction and organizational commitment When it comes to demographic

characteristics, statistically significant differences were found in the effects of

gender and age on job satisfaction, as they were considered to have a more

positive effect on job satisfaction among employees from Hong Kong

A study conducted by Odom, Boxx and Dnun (2003) at Mckinnon in Taiwan indicates that organizational culture have quite strong effect on job

satisfaction They found that the bureaucratic culture neither improves nordistracts an employee’s commitment and satisfaction They also found that

employee attitudes and behaviors are enhanced by an organizational culture that support innovation Therefore, employees who work in a supportive environment

express more job satisfaction

The relation between organizational culture and job satisfaction has also

been studied in terms of demographical characteristics The results seem to be

similar both for eastern and western type organizations and cultures Sommer et

al (1996), for instance, found that job commitment of employees from Koreawas positively correlated with their positions, tenure and age It indicates thatolder employees, who held higher positions and for longer time reported higher

levels of job satisfaction and job commitment The same study, however, found

no statistically significant correlation between educational level and job

commitment among employees of western countries

From all the above, it can be supported that organizational culture are important organizational antecedents of job satisfaction Moreover, the results of

recent researches strongly support that there is a link between organizationalculture and job satisfaction

CHAPTER 2: RESEARCH CONTEXT AND

METHODOLOGY

2.1 The research context

Overview of Vietnam Association of Business Culture:

Vietnam Association of Business Culture (VNABC) is a social

organization for enterprises in all economic sectors over Vietnam

The establishment of VNABC is on a voluntary basis for the purpose of

organizing cooperative activities, links, support and mutual assistance in the

development of corporate culture, business ethics, improve production efficiency business Vietnam Association of Business Culture Development is led by

president Mr Nguyén An Thuyén and multiple vice-presidents.

Financing:

Finance source is self-sufficient with inflows as bellow

e From research contract, education, consulting activities and other projects

e From Organizing cultural events

e Contribution from members

All financing activities are regulated by the law and Permits operation of

VNABCD

Activities:

VNABCD focuses on three main activities:

e Doing researches and give amendment on Organizational Culture Policy

e [Educating enterprises about Organizational Culture

e Doing Consulting and organizing cultural events

Members:

VNABCD has more than 200 members However, there is just 9

companies have participated in this research These industries vary very wide

from service, fashion, construction The table following show some information

of those companies and positions of people who answer the survey

Table 2.1; List of companies participated in study

L No Organizations Industry Respondents

| An Viet Art Limited Company Service Office staffS

Engineers,

2 DKNECK Corporation Technology

-Office staffs

INTRACO Joint Stock ; ;

Construction Engineers, workers

Company

Viet Dung aluminum Joint

Manufacturing WorkersStock Company

LASEN Fashion Limited Fashion designers,

BB Plus Commerce Limited

7 Marketing Graphic designers

of organizational culture and employees' job satisfaction is illustrated in Figure

2.1 below In this theoretical framework, organizational culture dimensions are

independent variables and employees' job satisfaction is a dependent variable.

[he present study thus attempts to bridge the gap by providing a basis for a

thorough and insightful discernment of organizational culture and job

satisfaction The model suggests that the greater the extent to which these five

Independent Variable: Organizational Culture Dimensions

This measure is based on the five dimensions of organizational culture

dimensions questionnaire developed by Business Research Lab (as mentioned in

literature review) with appropriate changes to make the items more relevant to

the present study The five dimensions which consist of 20 items aresupportiveness to individual initiatives (HH); Rewards and Recognition (RR):Ethical Behavior (EB), Balance of work and family life (BW), and Carrier

Development (CD)

Dependent Variable: Job Satisfaction

The instrument used to measure overall job satisfaction is Brief Index of

Affective Job Satisfaction (BIAJS) designed by Thompson & Phua (2012) This

is 5-iteam questionnaire assess the overall employees’ job satisfaction

Both questionnaires were translated to fit Vietnamese staffs 5 officers at

VNABC have revised and recommended some changes to make _ the

questionnaire clearer

2.2.3 Hypothesis:

There are several hypotheses for this research model as following:

- HI: Reward and Recognition component and job satisfaction have a positive relationship That means the higher/lower customer evaluate tangible

factor, the higher/lower level of customer satisfaction

- H2: Ethical Behavior component and customer satisfaction have a positive

relationship That means the higher/lower customer evaluate reliability factor, the

higher/lower level of job satisfaction.

- H3: Individual Initiative component and customer satisfaction have a

positive relationship That means the higher/lower customer evaluate responsiveness factor, the higher/lower level of customer satisfaction.

- H4: Balancing of work component and customer satisfaction has apositive relationship That means the higher/lower customer evaluate assurancefactor, the higher/lower level of customer satisfaction

- H5: Carrier Development component and customer satisfaction have a

positive relationship That means the higher/lower customer evaluate empathyfactor, the higher/lower level of customer satisfaction

2.2.4 Data Collection and Analysis

Each participant in the study received a survey packet that contained thefollowing items: a cover letter explaining the purpose of the study and providing

instructions for using the test instruments, Brief Index of Affective Job Satisfaction (BIAJS), the Organizational Culture Dimensions Questionnaire (OCQ) and an information survey to assess specific demographic information It

was stressed to all participants that their participation was completely voluntary

Researcher came to several companies with the reference letter from VietnamAssociation of Business Culture Development to do the survey However, there

is limit of time so research sent email with an online survey (created by Google

drive) Administration of the test instruments took place during early April 2015.

Then, data will be input and screened to identify missing samples After

rejecting all invalid samples, data will be encoded as in the following table:

Table 2.2: Encoded Data

Label Explanation

Reward and Recognition

| RRI My company values employees’ contributions.

2 RR 2 The current recognition system is adequate

3 RR 3 Good performances are recognized and

6 EB2 The ethical behavior is always appreciated ;

[ 7 - EB3 My manager is a mirror of morality |

| 8 EB4 Ethics is a subject of staff meetings.

Individual Initiatives

9 II] My company supports taking initiative.

10 II2 New idea is greeted with enthusiasm.

l 11 - 113 My company encourages employees to see

things from different perspectives

New idea is recognized and rewarded.

I receive support from supervisor to balance

work and own life

My company encourages employees to help

each other to balance work and own life

Carrier Development

17 |CDI The company introduced and clearly oriented

work in the first days of my work

Superior understanding of the aspirations of

18 | CD2

my career.

I9 |CD3 Promotion and conversion work in the

company is fairly done

20 |CD4 My company offers many opportunities for

employees to be developed in the future

Job Satisfaction

21 SA | Each day at work seems like it will never

end

22 |SA2 Most days, I am enthusiastic about my work

23 | SA3 I find real enjoyment in my work.

24 | SA4 I feel fairly satisfied with my present job.

L

The data collected will be cleaned and processed by software SPSS 22.0

Some methods of processing data used in this study are as following:

a Reliability analysis by Cronbach's alpha

Cronbach’s alpha is a common measure of internal consistency

(reliability) of a test or scale Internal consistency describes the extent to which

all the items in a test measure the same concept or construct and hence it is

connected to the inner-relatedness of the items within the test (Tavakol ef al., 2011) Cronbach’s alpha is most commonly used when researcher has multiple

Likert question in a survey or questionnaire that form a scale and the researcher

wishes to determine whether the scale is reliable (Laerd statistics).

The value of alpha (a) may be between negative infinity and 1 However,

only positive values of alpha have meaning In general, alpha coefficient ranges

in value from 0 to 1, and the increase of this value means that the correlations

between the items increase (Amit Choudhury, 2010) Therefore, this processing

data method helps analyst assess the reliability of scale through Cronbach’s alpha

coefficient A commonly accepted internal consistency using Conbach’s alpha is

as follow:

Table 2.3: Cronbach's alpha values and internal consistency

Cronbach's alpha | Internal consistencya>0.9 | Excellent

0.9>a >0.8 Good0.8 >a 20.7 | Acceptable0.7 >a> 0.6 Questionable

As the table shows, an acceptable reliability score should be 0.7 or higher.

However, lower thresholds are sometimes used in the literature (Reynaldo et al

1999) In this research, scales which have Cronbach’s alpha coefficient greater

than or equal to 0.6 will be accepted

Besides assessing the reliability of scales, Cronbach’s alpha analysis also

helps to check whether any item is not consistence with the rest of the scale

through item-total correlations Item-total correlation performs the correlation ofone variable with others in the same scale; the higher correlation value, the better

correlation between that item and the others Variables which have greater than

0.3 item-total correlations will be accepted; the others which have smaller than

0.3 item-total correlations will be eliminated from analysis data.

b Exploratory factor analysis

Exploratory factor analysis is a powerful statistical technique which isused for data reduction and summarization The primary objectives of anexploratory factor analysis are to determine (1) the number of common factors

influencing a set of measures; (2) the strength of the relationship between each

factor and each observed measure (DeCoster, 1998)

At first, it is necessary to test the sampling adequacy of factor analysis

base on Kaiser-Meyer-Olkin (KMQO) Measure In case of KMO has valuebetween 0.5 and 1.0 and Sig is smaller than 0.5, factor analysis is more

appropriate factor analysis In case of KMO has value smaller than 0.5 or Sig isgreater than 0.5, it indicates that factor analysis may not be appropriate

By performing exploratory factor analysis, investigator can decide the

number of factors to extract in the model The Kaiser creation states that

investigator should use a number of factors equal to the number of the

eigenvalues of the correlation matrix that are greater than one (DeCoster, 1998)

In this research, the eigenvalues will be plot in descending order, then thenumber of factor will equal to the number of eigenvalues that occur prior andhave greater than 1.0 values

An important part in exploratory factor analysis is interpreting factormatrixes This research will use Varimax rotation process to produce multiple

group factors Factor loadings which indicate correlations between the variablesand the factors are required to have greater than 0.5 values Then, a factor can beinterpreted in terms of the variables that have high load on it

c Regression analysis

Regression analysis is a modeling technique for analyzing the relationship

between a real-valued dependent variable Y and one or more independentvariables X;, Xz, X: X, (Ragsdale, 2007), The goal in regression analysis is to

identify a function that describes the relationship between these variables as closely as possible so that we can assess the impact of each independent variable

on dependent variable as well as predict the change in dependent variable when

there is any change in independent variables

The regression model in this research is:

Y =bo t+ by) Xj) + by X.+_ +b Xe +e

Where:

- Y=Scores on the customer satisfaction towards Military Bank

- XX, Xo X, = Scores on the attitude towards the quality components

(tangible, reliability, responsiveness, assurance, empathy)

- by, bo k= Regression co-efficient of independent variables

- bo=an intercept

- €=anerror term

At first, it is necessary to test assumptions for regression analysis Theprincipal assumption is that there is a linearity of the relationship betweendependent and independent variables This research investigates the model withmore than one independent variables, the correlation among independentvariables (multi-collinearity) should be checked Variance inflation factor (VIF)

is used to measure the multi-collinearity in this regression analysis Regression model accept variables which have VIF smaller than 10 If VIF for one variable

is around or greater than 10, there is collinearity associated with that variable;this variable should be removed from the regression model In addition, it isassumed that the error terms £ are independent, normally distributed random

variables with mean value of 0, and constant variances As long as theseassumptions are not seriously violated, regression model will be established