Factors affecting employees organizational commitment at dat xanh group

This research was conducted to evaluate the relationship of Job Satisfaction, Perceived Organizational Support, Procedural Justice, Perceived Person-Organization Fit, and Organizational

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ACKNOWLEDGEMENTS

I would like to acknowledge the assistance of HCMC University of Technology (HUTECH) staff associated with the MBA and MBA administrative and project support staff In particular, I would like to acknowledge the continued support and patience of Nguyen The Khai, DBA who has supervised this research and Do Thi Thanh Truc whose help with data analysis on SPSS Software has been invaluable

Those who participated in interviews and those who responded to the survey made this report possible I would like to recognise their contribution I am also grateful the management of Dat Xanh Group and in particular CEO Luong Tri Thin for his support and willingness to help

This report, and indeed the completion of this Masters of Business Administration, would not have been possible without the love, eternal patience and support of my wonderful wife and children They have scarified much during this journey

Finally but by no means least, I would like to recognise the continuous motivating force that has been my classmates, and especially monitor – Nguyen Dinh Thi whom have shared their knowledge and time to learn together in order to complete all assignments especially this paper

TABLE OF CONTENTS

LIST OF FIGURES 5

LIST OF TABLES 6

ABBREVIATIONS 7

ABSTRACT 8

Chapter 1: INTRODUCTION 9

1.1 Company Brief Introduction 9

1.2 Research Problem Statement 14

1.3 Purpose of the research 15

1.4 Scope of research 16

1.5 Question of the research 16

Chapter 2: LITTERATURE REVIEW 17

2.1 Organizational Commitment 17

2.2 Job Satisfaction 19

2.3 Perceived Organizational Support 21

2.4 Procedural Justice 23

2.5 Perceived Person-Organization Fit 25

2.6 The relationship between JS and Organizational Commitment 26

2.7 The relationship between POS and Organizational Commitment 27

2.8 The relationship between PJ and Organizational Commitment 27

2.9 The relationship between POF and Organizational Commitment 28

Chapter 3: RESEARCH MODEL, HYPOTHESES AND METHODS 29

3.1 Research model 29

3.1.1 Dependent Variables: 29

3.1.2 Independent Variables: 29

3.2 Constructs 30

3.3 Research Hypotheses: 30

3.4 Measure of each construct 31

3.4.1 Organizational Commitment 31

3.4.2 Job satisfaction 33

3.4.3 Perceived Organizational Support 36

3.4.4 Procedural Justice 37

3.4.5 Perceived Person-Organization Fit 39

3.5 Data Collection Process 40

3.6 Procedure for data analysis 41

Chapter 4: RESEARCH FINDINGS AND ANALYSIS 44

4.1 Reliability statistic 44

4.2 Descriptive statistic 45

4.3 Correlation of all variable statistic 45

4.4 Hypothesis Testing 47

Chapter 5: DISCUSSION AND RECOMMENDATION 49

5.1 Summary and Discussion 49

5.2 Management Implications 51

5.3 Limitations of Study and Further Research Recommendation 53

5.4 Conclusion 54

REFERENCES 55

APPENDIX A 59

APPENDIX B 64

LIST OF FIGURES

Figure 0-1: DXG at a glance 10

Figure 0-2: DXG management organization 10

Figure 0-3: List of Subsidiaries and Associates 12

Figure 0-4: List of Project Portfolio 13

Figure 0-5: Proposed Research Model of Organizational Commitment in DXG 29

LIST OF TABLES

Table 1: Measurement of Organizational Commitment 32

Table 2: Measurement of Job Satisfaction 34

Table 3: Measurement of Perceived Organizational Support 36

Table 4: Measurement of Procedural Justice 38

Table 5: Measurement of perceived person-organization fit 40

Table 6: Reliability of the measurement scales 41

Table 7: Degree of correlation 42

Table 8: Summary of Cronbach’s Alpha of the variables 44

Table 9: Descriptive statistics 45

Table 10: Summary of Correlations of all variables 46

Table 11: Model Summary of all hypotheses 47

Table 12: Coefficients of all hypotheses 47

ABBREVIATIONS

This research was conducted to evaluate the relationship of Job Satisfaction, Perceived Organizational Support, Procedural Justice, Perceived Person-Organization Fit, and Organizational Commitment Responses were collected via questionnaires from 287 respondents Regression used as a statistical tool and the results showed that all four independent constructs involved in examining with dependent construct were supported The findings on direct effects revealed that predictor variables have a positive relationship with Organizational Commitment In general, the Job Satisfaction (pay, promotion, supervision, benefits and rewards) has the largest effect on Organizational Commitment and followed by Procedural Justice (the justice in procedures shows the degree of authenticity of the organization) and Perceived Person-Organizational Fit (there were significant fitness of values, goals and objectives, work-family balance, ethics between person and organization at DXG) and Perceived Organizational Support has the lowest effect on Organizational Commitment

To improve step by step the commitment from employees to DXG, the necessary thing is that top management should be aware of the importance of developing and retaining its workforce And then, focusing on reviewing and revising the human resource policies and procedures effectively The management should also take steps to support their employees and apply rules fairly and consistently to all employees and pay due attention to the concept of Person – Organization fit as a means to improve the organization’s performance

Keywords: Job Satisfaction, Perceived Organizational Support, Procedural Justice,

Perceived Person-Organization Fit, and Organizational Commitment

Chapter 1: INTRODUCTION

1.1 Company Brief Introduction

Dat Xanh Real Estate Service and Constructions Corporation (“DXG” code) formerly known as Dat Xanh Services and Real Estate Construction Limited Company was established in 2003 with initial chartered capital of VND0.8 billion The company's chartered capital now is VND1,172 billion The company's stock was listed on HOSE in 2009 and operated as corporation since 2011 Over 12 years developing, Dat Xanh Real Estate Service And Constructions Corporation has become one of the fast developing companies in investing and trading real estate in Vietnam, being the leading one in distributing projected land and apartments The company currently has large distribution network in Vietnam with 20 branches, subsidiaries, associated companies, joint venture companies over the country The company has many key projects, one of which is "Sunview Town" project, which was voted as "Top 3 best apartments in Vietnam" (as announced in South East Asia Property Awards 2014) according to Property Report magazine

Since its founding date, Dat Xanh Group has invested and develop in cooperation over 311.56 hectares of project land, provided the market with 5,375 villas, terraced houses and apartments in Ho Chi Minh City, Binh Duong, Long An DXG is deploying more than 180 hectares of new land in Ho Chi Minh City, Dong Nai and Phu Quoc and intend to annually provide the market with about 3,000-5,000 villas, terraced houses and apartments over the next few years

Projects with convenient locations, complete infrastructure, modern design style, quality construction, fully furnished, and clean environment that offers true living value for people have been and will always be the targets of Dat Xanh Group

DXG at a glance

Ho Chi Minh City

 Scope of Work Operating in real estate sector, investing in real estate

projects, trading centers, hotels, restaurants, and offices Distributing and marketing real estate projects, financial investments, securities brokerage

 Personnel Policy

With the goal of creating all conditions for relief workers, long-term attachment, while continuing to maintain the corporate culture of DXG, labor remuneration policy has always been seriously and continuous improvement Therefore, employees at DXG, are eligible for salary, bonuses as explicit policies Every year, employees have worked at the Company for 12 months or more will be considered and adjusted wage increases to match the rate of inflation coefficients DXG implement reward regime for employees based on their job performance The Company has policies in cash prizes through the evaluation emulation and commendation quarterly, yearly, based on the review process of work, high working efficiency, achievement of each HR representative At the same time, the Company may also reward extraordinary policy for individual and collective contributions to prominent or have a distinguished track record in the implementation of guidelines and policies of the Company, have ideas and innovative solutions bring efficiency in developing the company

For salary and bonus policies, allowances, DXG has competitive policies on the market For examples: purchasing apartment (reduced to 15% and repayment within

5 years without interest); ESOP; seniority allowances; 24/24 HI; celebrating special occasional events for employees (birthday; family; women;…); travelling for employees; allowance for traditional days (1/1; 30/4; 2/9; 8/3; 20/10…),

 Subsidiaries and Associates in Dat Xanh Group

No Companies Control

Figure 0-3: List of Subsidiaries and Associates

 List of project portfolio

investment

Deployed Western Land 320,000.0 129 Villas Cooperation Deployed Rubyland 110,000.0 418 Villas + houses Cooperation Deployed Hung Phuoc 77,000.0 325 Building land Cooperation Deployed Binh An 4,400.0 12 Villas Cooperation Deployed Hoang Gia 658,160.0 1,917 Villas + houses Cooperation Deployed Thung Lung Xanh 450,000.0 458 Building land Cooperation Deployed Five Star 150,680.0 649 Building land Cooperation Deployed Giang Dien 1,180,000.0 582 Building land Cooperation Deployed The Morning Star 1,634.4 203 Apartment Cooperation

Deployed Sunview 1-2 160,002.0 448 Apartment Direct

Investment

Deployed Phu Gia Hung 3,727.0 234 Apartment Direct

Investment Deploying 4S Riverside Linh

Dong 19,994.5 1,116 Apartment Cooperation

Status Project Land fund Quantity Type of product Type of

To be deployed My Son 5,039.0 350 Apartment Cooperation

To be deployed Arisen 6,487 450 Apartment Direct

Investment

To be deployed Water Garden 20,097 Apartment Direct

Investment

To be deployed Phu Quoc 708,000 Villas Cooperation

To be deployed Green City (plan) 74,000 Apartment,

houses

Direct Investment

Figure 0-4: List of Project Portfolio

 Some representative awards in 2015

Top ten Developers

 Vision, Mission and Business Philosophy

Vision: Becoming a leading real estate developer in Vietnam

Mission: Dat Xanh provide quality products and excellent services which enhance

the life value for Vietnamese people

Business Philosophy: Trust we build begins from constructing your home

1.2 Research Problem Statement

An organization cannot build a good team of working professionals without good Human Resources Human Resource Management deals with issues related to compensation, performance management, organization development, safety, wellness, benefits, employee motivation, training and others

Human Resources are valuable assets of Dat Xanh Group Therefore, developing and retaining talents are crucial for the organization because this is one

of the factors that will have great impact on the success of the business of the company

Up to 30 November 2015, Dat Xanh Group has approximately 1,600 employees During 2015, DXG’s employee turnover rate (divide resignations by number of employees) has been increasing from 5% in 2014 to 10% in 2015 In addition, it has been also informed that these employees moved to competitive firms in Real Estate Industry As discussed with some employees in DXG, there are some reasons as follow:

- They were not satisfied with chances for promotion and salary increases

- The organization did not take care complaint from them and solve problems

at work

- The procedures used to evaluate their performance have not been fair and objective

- There was not fitness between their values and organizational values

With the high employee turnover, the company not only losing its skilled and experience employees but also have to incur more cost to recruit and train new staff It is therefore essential for the human resources department to identify factors affecting organizational commitment among employees at Dat Xanh Group

1.3 Purpose of the research

The purpose of this research is to examine and approach whether items in terms of Job Satisfaction, Perceived Organizational Support, Procedural Justice and Perceived Person-Organization Fit, which will have any influence on the organizational commitment of DXG employees

It is expected that the findings of the research will give an overall view of how internal management items affect the turnover rate of DXG With the research result, the Management and Human Resources Department of DXG could have valuable implication to develop couple of solutions This may fill in the gap in current HRM system to develop and retain its talents to fulfill its vision of

becoming a leading group in distributing real estate products and services in Vietnam

1.4 Scope of research

departments include Investment, Construction, Sales & Marketing, Human Resource, Compliance, Finance and Accounting and IT

A series of formed questionnaire was distributed to each employee with clear instructions and guidelines for fulfillment

1.5 Question of the research

This research addresses some points follow:

- How are the effects of Job Satisfaction on employee’s Organizational Commitment at DXG?

- How are the effects of Perceived Organizational Support on employee’s Organizational Commitment at DXG?

- How are the effects of Procedural Justice on employee’s Organizational Commitment at DXG?

- How are the effects of Perceived Person-Organization Fit on employee’s Organizational Commitment at DXG?

Chapter 2: LITTERATURE REVIEW

This chapter presents the body of organizational literature containing the base theory and relevant other theories used in this research This chapter includes the following:

- (1) Organizational Commitment (OC)

- (2) Job Satisfaction (JS)

- (3) Perceived Organizational Support (POS)

- (4) Procedural Justice (PJ)

- (5) Perceived Person-Organization Fit (POF)

- (6) The relationship between JS and Organizational Commitment

- (7) The relationship between POS and Organizational Commitment

- (8) The relationship between PJ and Organizational Commitment

- (9) The relationship between POF and Organizational Commitment

2.1 Organizational Commitment

Employee commitment to an organization has been defined in a variety of ways including an attitude or an orientation that links the identity of the person to the organization, a process by which the goals of the organization and those of the individual become congruent, an involvement with a particular organization, the perceived rewards associated with continued participation in an organization, the costs associated with leaving, and normative pressures to act in a way that meets organizational goals (Meyer & Allen, 1997) Mowday, Porter, and Steers (1982), who did much of the original research about organizational commitment, characterized it

as a strong belief in and acceptance of the organization's goals and values, a willingness to exert considerable effort on behalf of the organization, and a strong desire to maintain membership in an organization The various definitions reflect three broad themes: commitment reflecting an affective orientation toward the

organization, recognition of costs associated with leaving the organization, and moral obligation to remain with an organization (Meyer & Allen, 1997)

An employee's liking for an organization is termed affective commitment and

includes identification with and involvement in the organization Employees with a strong affective commitment continue employment with the organization because

they want to do so (Cohen, 1993) Continuance commitment refers to an awareness of

the costs associated with leaving the organization Employees whose primary link to the organization is based on continuance commitment remain with their employer

because they need to do so Finally, normative commitment reflects a feeling of

obligation to continue employment Employees with a high level of normative commitment feel that they ought to remain with the organization (Meyer & Allen, 1997)

Others have argued that commitment reflects the psychological bond that ties the employee to the organization but that the nature of the bond can take three forms, labeled compliance, identification, and internalization (O'Reilly & Chatman, 1986) Compliance occurs when attitudes and behaviors are adopted not because of shared beliefs but simply to gain specific rewards In this case, public and private attitudes may differ Identification occurs when an individual accepts influence to establish and maintain a relationship; that is, an individual may respect a group's values without adopting them On the other hand, internalization occurs when influence is accepted because the induced attitudes and beliefs are congruent with one's own values (Caldwell, Chatman, & O'Reilly, 1990; Meyer & Allen, 1997; O'Reilly & Chatman, 1986; O'Reilly, Chatman, & Caldwell, 1991) Clearly, not all of these views are in agreement For example, some researchers have questioned whether compliance should be viewed as a component of commitment because it is distinct from other common definitions and can be viewed as the antithesis of commitment That is, compliance has been found to correlate positively with employee turnover (O'Reilly & Chatman, 1986), whereas commitment generally reduces turnover

(Mowday et al., 1982) The studies I reviewed from the 1990s suggest there is a growing consensus that commitment is a multidimensional construct that certainly includes an affective dimension and may include components that reflect normative pressures as well as practical considerations such as the costs of leaving an organization and locating another job with similar pay and benefits

2.2 Job Satisfaction

Job satisfaction is commonly known as how pleased a person is with his or her work, and can be defined as “how people feel about their jobs and different aspects of their jobs” (Spector, 1997, p 2) The subject has been a popular research area since the 1930s when the industrial companies realized that job satisfaction was to some degree positively correlated with productivity (Vroom, 1967) As a result, today one can observe many different approaches and definitions on the subject

One should be concerned with job satisfaction for several reasons (Spector, 1997) Firstly, job satisfaction can to some extent reflect how employees are treated with regards to respect and fairness Secondly, job satisfaction can be an indicator of

an employee’s psychological and emotional health Thirdly, it can affect the behavior

of the employee, and thus the organizational functions and productivity Moreover, job satisfaction can be a reflection of the organizational performance, where differences between groups can lead to future problems within the company

There is an argument on whether job satisfaction is a product of the determinants that lie in the job itself, if they reside in the worker’s cognitive mind, or

if satisfaction is a result of an interaction between the employee’s psychological mind and the work environments (Locke, 1969; Spector, 1997) It is difficult to find the correct description of job satisfaction due to its complex nature, however, most theories include both environmental and personal factors Organizational commitment is shown as a correlating variable to job satisfaction, a term that is discussed above

Needs and process theories are the two most commonly used concepts to describe job satisfaction, even though they are traditionally applied to describe motivation Oldham and Hackman (1980) indicated that job satisfaction was a result

of inner motivation, as it could be an indicator of an employee’s psychological health Thus job satisfaction is connected to motivational theory Due to the similarity of motivation and job satisfaction, it is not uncommon to use the definitions synonymously even though they are different terminologies

The earliest theories on job satisfaction were based on determinants of a person’s needs To become fully satisfied, Maslow (1954) pointed out five crucial needs: physiological, safety, belongingness and love, esteem, self-actualization and self-transcendence needs Another job satisfaction theory based on human needs, developed by Herzberg, was called the two-factor (Herzberg, 1968) He identified six satisfaction factors and seven dissatisfaction factors that were independent of each other in his primary research in the late 1950s

There is contrast to needs theory, a process theory is where one emphasizes the individual’s cognitive processes (Haukedal, 2007) The most acknowledged process theories are Adams’ equity theory and Vroom’s expectancy theory Adams (1963) believed that people were concerned about how fair their performance was rewarded

in comparison with similar groups or individuals with the same job If the other individual or group received a better salary but did not increase the input in the job, the person would experience a disparity in regards to effort The person would then act in accordance with the imbalance, for example reduce the work effort and productivity due to job dissatisfaction

Victor H Vroom (1967) suggested that job satisfaction is an individual’s affective orientation towards work roles that he or she is presently occupying The level of valence, or a person’s expected utility, drives the job satisfaction of an employee If the person has positive attitudes towards the job, the person will feel satisfied, however, if the person has negative attitudes towards the job, the person

will be dissatisfied Vroom identified several factors that drive job satisfaction, such

as supervision, the work group, job content, wages promotional opportunities and work hours

Since the mid 1980s, researches have emphasized dispositional approaches where personality traits measure job satisfaction Studies on positive and negative affectivity and self-evaluations have been used to explain dispositional sources of job satisfaction (Judge & Larsen, 2001) Staw and Ross’ (1985) study on job satisfaction concluded that prior job satisfaction is a stronger predictor of current job satisfaction than changes in pay or status

There are limited studies on how non-work related factors affect the level of job satisfaction of the employees Life satisfaction is strongly correlated with job satisfaction, which makes sense, as work is a significant part of a person’s life Spillover effects between work and life experiences for the employees will always exist, and it is therefore important that the company takes the external job satisfaction indicators into account, as these cannot be influenced (Judge & Klinger, 2008) An example of this is the study of Georgellis et al (2012) where they discovered that marriage and children impact the employees’ level of job satisfaction

To summarize the different theories, job satisfaction is a wide field of study, and the results vary tremendously due to different viewpoints on the theme However most authors agree on the main determinants of job satisfaction, although the theme is complex and not clearly defined There will always be a degree of uncertainty regarding the measurement of job satisfaction, as the level of job satisfaction will differ between individuals depending on age, country of origin, gender and education level

2.3 Perceived Organizational Support

According to organizational support theory, the development of POS is encouraged by employees’ tendency to assign the organization humanlike

characteristics (Eisenberger et al., 1986) Levinson (1965) noted that actions taken by agents of the organization are often viewed as indications of the organization’s intent rather than attributed solely to the agents’ personal motives This personification of the organization, suggested Levinson, is abetted by the organization’s legal, moral, and financial responsibility for the actions of its agents; by organizational policies, norms, and culture that provide continuity and prescribe role behaviors; and by the power the organization’s agents exert over individual employees On the basis of the organization’s personification, employees view their favorable or unfavorable treatment as an indication that the organization favors or disfavors them

Social exchange theorists argue that resources received from others are more highly valued if they are based on discretionary choice rather than circumstances beyond the donor’s control Such voluntary aid is welcomed as an indication that the donor genuinely values and respects the recipient (e.g., Blau, 1964; Cotterell, Eisenberger, & Speicher, 1992; Eisenberger, Cotterell, & Marvel, 1987; Gouldner, 1960) Thus, organizational rewards and favorable job conditions such as pay, promotions, job enrichment, and influence over organizational policies contribute more to POS if the employee believes that they result from the organization’s voluntary actions, as opposed to external constraints such as union negotiations or governmental heath and safety regulations (cf Eisenberger et al., 1986; Eisenberger, Cummings, Armeli, & Lynch, 1997; Shore & Shore, 1995) Because supervisors act

as organizational agents, the employee’s receipt of favorable treatment from a supervisor should contribute to POS The strength of this relationship depends on the degree to which employees identify the supervisor with the organization, as opposed

to viewing the supervisor’s actions as idiosyncratic (Eisenberger, Stinglhamber, Vandenberghe, Sucharski, & Rhoades, in press)

Organizational support theory also addresses the psychological processes underlying consequences of POS First, on the basis of the reciprocity norm, POS should produce a felt obligation to care about the organization’s welfare and to help

the organization reach its objectives Second, the caring, approval, and respect connoted by POS should fulfill socioemotional needs, leading workers to incorporate organizational membership and role status into their social identity Third, POS should strengthen employees’ beliefs that the organization recognizes and rewards increased performance (i.e., performance-reward expectancies) These processes should have favorable outcomes both for employees (e.g., increased job satisfaction and heightened positive mood) and for the organization (e.g., increased affective commitment and performance, reduced turnover)

An appealing feature of organizational support theory is that it provides clear, readily testable predictions regarding antecedents and outcomes of POS along with specificity of assumed processes and ease of testing these processes empirically We examine studies that consider POS’s hypothesized antecedents and consequences and more elaborated studies of the mechanisms presumed to underlie these relationships

2.4 Procedural Justice

Procedural justice reflects a person's judgements about the fairness of the process of making outcome allocations decisions (Greenberg, 1990) Specifically, procedural justice reflects the extent to which an individual perceive that outcome allocation decisions have been fairly made according to the formal procedures of the organization and from the treatment given by its authorities in enacting those procedures (Moorman, 1991) Explanations by earlier researchers seem to indicate that procedural justice judgements play a major role in affecting employee attitudes For instance, according to Lind and Tyler's (1988) "group-value" model, perceptions

of procedural fairness which entails fair treatment and use of fair procedures communicates to members two symbolic messages about group membership Firstly, fair treatment receive from decision makers indicates that the individual is a respected and valued member of the group Secondly, the use of fair decision-making procedures in groups also indicates whether members can take pride in their group membership because fair procedures will reassure members that their interests will

protected and advanced through group membership Feelings of respect, worth, and pride formed as result of procedural justice may motivate members to adopt a favorable attitude toward the group that is responsible in mandating the decision-making procedures Tyler (1989) added that when people obtain evidence that they have attained a favorable social standing within the group, and that over time, they will receive fair benefits from group membership, these may enhance group harmony and activate group concerns by stimulating members to adopt positive feelings toward the group

Procedural justice (fairness) refers to the perception that fair procedures were used to derive outcomes (Leventhal, Karuza & Fray, 1980; Thibaut & Walker, 1975; Cropanzano et al., 2007) Theories of procedural justice emphasize that procedures are considered fairer if, among other things, the decision maker respectfully treats those affected by the decision, has no vested interest in a decision that is harmful to them and has limited choice in making a decision (Charness & Levine, 2000) This is consistent with Greenberg's (1990) assertion that procedural justice aspects of the layoff process include the organization providing valid reasons for layoffs, treating terminated employees decently, having a fair selection procedure for determining those to be laid off, and having effective communication about the layoffs (Greenberg, 1990) According to Leventhal et al (1980), layoff procedures are fair if they are applied consistently to all, not biased, accurate, correctable, considers the interest of all parties’ concerned (representativeness) and finally are morally and ethically right Instead of examining what constitutes procedural justice, as in most of the above studies, the current study focuses on the relationship between the perceived fairness of the procedures used in the layoff and organizational commitment of surviving employees as well as how personality traits such as locus of control and self-esteem influences perception of procedural justice

2.5 Perceived Person-Organization Fit

Consideration of person-organization fit is based on the perspective that aspects

of both an individual employee and a job situation combine to influence the individual's response to work (O'Reilly, Chatman, & Caldwell, 1991) That is, attitudes, behaviors, and other individual-level outcomes result not from the person or environment separately, but rather from the relationship between the two The concept of fit is particularly prominent in studies of organizational stress where measures must recognize individual differences in the way situations are cognitively appraised (Edwards, 1996)

Person-organization fit refers to the degree of congruence or compatibility between the attributes of an organization member and those of the organization For individuals, these attributes may include personality traits, beliefs, values, and interests For the organization, these characteristics traditionally include the culture, climate, values, goals, and norms (Chan, 1996) Congruence may occur when a person supplements or matches with other individuals in an environment, when a person's characteristics add something to the environment that was missing, when an organization satisfies individual needs, and/or when an individual has the abilities required to meet organizational demands (Kristof, 1996)

Value congruence is an important form of fit because organizational values are fundamental components of organizational culture that affect employees' attitudes and behaviors (Chatman, 1989) Person-organization fit can be operationalized as an individual's goal congruence with organizational leaders and peers (Vancouver & Schmitt, 1991) An alternative approach defines fit as the match between individual preferences or needs and organizational systems and structures In general, a person will be more satisfied with work if the environment fulfills his or her needs Alternately, person-organization fit can be viewed as the match between the personality characteristics of an individual employee and organizational climate For example, an organization's collectivist climate may be reflected by a team-based

compensation system that may or may not meet an individual's need for achievement (Kristof, 1996)

There is some debate as to whether person organization fit should be operationalized as the compatibility of employees with specific jobs Edwards (1991) defined person-job fit as the agreement between the abilities of a person and the demands of a job or the desires of a person and the attributes of a job Although it could be argued that jobs tend to offer a narrow view that may not be representative

of an organization, there is substantial evidence that employees may form their about

an organization based on their experience in their job (Hackman & Oldham, 1980) Person-organization fit does not generally include person-vocation fit, which often reflects the similarity between an individual's personality and that of a vocational environment, or person-group fit, which describes the compatibility between individuals and their work groups (Kristof, 1996)

2.6 The relationship between JS and Organizational Commitment

Strong positive relationships have been observed between organizational commitment and desirable work outcomes such as performance, adaptability and job satisfaction (Angle & Perry 1981; Hunt, Chonko & Wood 1985; Mowday, Porter & Dubin 1974) Research results indicate that satisfied employees tend to be committed

to an organization, and employees who are satisfied and committed are more likely to attend work, stay with an organization, arrive at work on time, perform well and engage in behaviors helpful to the organization (Aamodt 2007)

According to Kotze and Roodt (2005), a strong correlation has been empirically established between job satisfaction, employee commitment and retention Organizational commitment is most probably affected by factors such as type and variety of work, the autonomy involved in the job, the level of responsibility associated with the job, the quality of the social relationship at work, rewards and remuneration, and the opportunities for promotion and career advancement in the company (Riggio 2009)

2.7 The relationship between POS and Organizational Commitment

On the basis of the reciprocity norm, Perceived Organizational Support (POS) should create a felt obligation to care about the organization’s welfare (Eisenberger, Armeli, Rexwinkel, Lynch, & Rhoades, 2001) The obligation to exchange caring for caring (Foa & Foa, 1980) should enhance employees’ affective commitment to the personified organization POS should also increase affective commitment by fulfilling such socioemotional needs as affiliation and emotional support (Armeli et al., 1998; Eisenberger et al., 1986) Such need fulfillment produces a strong sense of belonging to the organization, involving the incorporation of employees’ membership and role status into their social identity POS should thus contribute to employees’ sense of purpose and meaning Additionally, Shore and Tetrick (1991) suggested that POS might reduce feelings of entrapment (i.e., continuance commitment) that occur when employees are forced to stay with an organization because of the high costs of leaving

2.8 The relationship between PJ and Organizational Commitment

Bakshi, Kumar and Rani (2009) reported that procedural and distributive justice both were significantly correlated with the organizational commitment of the employees Similar results were found by Masterson, Lewis, Goldman and Taylor (2000) They also described that organizational justice is an important forecaster of job satisfaction and employees commitment Lambert et al (2005) also established significant positive associations of employees’ perceptions of distributive and procedural justice with commitment to the organization

Also Masterson et al (2000) explained that procedural justice to be a stronger predictor of job satisfaction than distributive justice and this job satisfaction leads to the organizational commitment Lambert et al (2005) also argued that perceptions of procedural justice have a greater impact on organizational commitment of employees than perceptions of distributive justice

2.9 The relationship between POF and Organizational Commitment

Organizations must not discount applicants’ perceptions of the organization during the selection process Initial impressions form the basis for later impressions

of the organization, job satisfaction, organizational commitment, turnover, and performance (Premack & Wanous, 1985) Traditional selection techniques often find organizations attempting to gather in-depth information about the applicants They ignore or are not aware that it might appear intrusive to the applicant and cause negative attitudes toward the organization (Thornton, 1993) Organizations need to know that applicants are looking for detailed, specific, and relevant information that distinguishes one vacancy from others and includes some negative as well as positive information (Rynes, 1993) These characteristics not only help applicants make better job choices, but also prepare them to cope with challenges they encounter as new employees (Rynes, 1993)

Commitment is closely associated with organizational culture It is highly affected by person-organization values matches (Finnegan, 2000) It embodies three underlying experiences: belief and acceptance of the values and goals of the organization; willingness to exert effort on behalf of the organization to achieve organizational goals; and strong desire to maintain organizational membership (Porter, Steers, Mowday & Boulian, 1974) Meyer and Allen (1991) stated that commitment is not only a psychological state restricted to value and goal congruence but it can reflect a desire, a need, and/or an obligation to maintain membership in an organization

An accurate understanding of the job requirements and the organization’s values has been shown to enhance people’s adjustment to their jobs as well as their subsequent level of satisfaction and organizational commitment (Posner, 1992) A person whose values match the operating values of the organization will be more committed to the organization than a person whose personal values differ from the organization’s (Finnegan, 2000)

Chapter 3: RESEARCH MODEL, HYPOTHESES AND METHODS

The primary goal of this research is to investigate factors of job satisfaction, perceived organizational support, procedural justice and perceived person-organization fit affecting employee’s organizational commitment in Dat Xanh Group (DXG) The methodology specifically describes the research model, the construct, the research hypothesis, the measure of each construct, data collection process, and the procedure for the data analysis

a) The relationship between JS and Organizational Commitment

In view of the apparent relationship between job satisfaction and organizational Commitment, the following hypothesis was formulated for the purposes of the study Reported on here:

- Hypothesis 1 (H1): Job satisfaction relates significantly and positively to

employee organizational commitment at DXG

b) The relationship between POS and Organizational Commitment

It appears that employees with higher levels of POS are likely to be more

committed and possibly more willing to engage in extra role or organizational

commitment (Organ, 1988) than are employees who feel that the organization does

no value them as highly Additionally, some work also suggests that POS may be beneficial to the individual as well as to the organization Therefore, the following hypothesis is expected:

- Hypothesis 2 (H2): Perceived organizational support is positively to employee

organizational commitment at DXG

c) The relationship between PS and Organizational Commitment

Masterson et al (2000) explained that procedural justice to be a stronger

predictor of job satisfaction than distributive justice and this job satisfaction leads to the organizational commitment Lambert et al (2005) also argued that perceptions of

procedural justice have a greater impact on organizational commitment of employees than perceptions of distributive justice Therefore, the following hypothesis is

developed:

- Hypothesis 3 (H3): There will be a positive and significant relationship between

the level of procedural justice and the level of employee organizational commitment at DXG

d) The relationship between POF and Organizational Commitment

An accurate understanding of the job requirements and the organization’s values has been shown to enhance people’s adjustment to their jobs as well as their

subsequent level of satisfaction and organizational commitment (Posner, 1992) A person whose values match the operating values of the organization will be more committed to the organization than a person whose personal values differ from the organization’s (Finnegan, 2000) Therefore, the following hypothesis is expected:

- Hypothesis 4 (H4): Perceived person-organization fit is positively to employee

organizational commitment at DXG

3.4 Measure of each construct

The questionnaire total consists of 95 questions To ensure the research is conducted effectively, the detail of the procedures of obtaining information is needed

in conducting the study in order to solve the problem The sampling survey method was primarily used to obtain the information need for the purpose of the study The questionnaire was divided to study the characteristics of the important variables in identifying the relationship between job satisfaction, perceived organizational support, procedural justice, perceived person-organization fit and organizational commitment among employees at DXG The questionnaire will be organized into 5 parts as follows:

3.4.1 Organizational Commitment

The Organizational Commitment Questionnaire (OCQ) was originally developed

by Mowday, Steers, and Porter (1979) It uses 15 items to describe global

organizational commitment This widely used measure has been modified to examine professional commitment by replacing the word organization with profession It has also been used to assess job commitment by changing the wording from organization

to job (Gunz & Gunz, 1994; Millward & Hopkins, 1998) Sagie (1998) developed and used a Hebrew-language version of the measure Coefficient alpha values ranged from 81 to 93 (Becker, 1992; Brett, Cron, & Slocum, 1995; Cohen & Hudecek, 1993; Gunz & Gunz, 1994; Hackett, Bycio, & Hausdorf, 1994; Hochwarter, Perrewe, Ferris,

& Gercio, 1999; Johnston & Snizek, 1991; Kacmar, Carlson, & Brymer, 1999; Lee & Johnson, 1991; Marsden, Kalleberg, & Cook, 1993; Mathieu, 1991; Mathieu & Farr, 1991; Millward & Hopkins, 1998; Riggs & Knight, 1994; Sommer, Bae, & Luthans, 1996; Zeffane, 1994) The Hebrew-language version of the OCQ had alpha = 62 (Sagie, 1998) I use selected 10 items to survey employee organizational commitment

at DXG

Responses are obtained on a 5-point Likert-type scale where 1 = strongly disagree, 2 = disagree, 3 = Neither agree nor disagree, 4 = agree, 5 = strongly agree The respondent has to choose one option from these five alternative selections

Following table 1 shows the measurement of organizational commitment developed by Mowday, Steers, and Porter (1979)

Table 1: Measurement of Organizational Commitment

1 I am willing to put in a great deal of effort beyond normally

expected in order to help this organization be successful

5-point Likert-type scale

2 I talk up this organization to my friends as a great organization

to work for

3 I feel very little loyalty to this organization (R)

4 I would accept almost any types of job assignment in order to

keep working for this organization

No Items Measurement

5 I find that my values and the organization’s values are very

similar

6 I am proud to tell others that I am part of this organization

7 I could just as well be working for a different organization as

long as the type of work was similar (R)

8 This organization really inspires the very best in me in the

way of job performance

9 It would take very little change in my present circumstance to

cause me to leave this organization (R)

10 I am extremely glad that I chose this organization to work for

over others I was considering at the time I joined

11 There's not too much to be gained by sticking with this

organization indefinitely (R)

12 Often, I find it difficult to agree with this organization's

policies on important matters relating to its employees (R)

13 I really care about the fate of this organization

14 For me, this is the best of all possible organizations for which

service, nonprofit, and public organizations In Blau (1999), coefficient alpha was 89

I use selected 6 items to survey employee job satisfaction at DXG

Responses are obtained on a 5-point Likert-type scale where 1 = strongly disagree, 2 = disagree, 3 = neither agree nor disagree, 4 = agree, 5 = strongly agree The respondent has to choose one option from these five alternative selections

Following table 2 shows the measurement of job satisfaction developed by Spector (1985)

Table 2: Measurement of Job Satisfaction

1 I feel I am being paid a fair amount for the work I do

5-point Likert-type scale

2 Raises are too few and far between (R)

3 I am unappreciated by the organizational when I think about

what they pay me (R)

4 I feel satisfied with my chances for salary increases

5 There is really too little chance for promotion on my job (R)

6 Those who do well on the job stand a fair chance of being

promoted

7 People get ahead as fast here as they do in other places

8 I am satisfied with my chances for promotion

9 My supervisor is quite competent in doing his/her job

10 My supervisor is unfair to me (R)

11 My supervisor shows too little interest in the feelings of

subordinates (R)

12 I like my supervisor

13 I am not satisfied with the benefits I receive (R)

14 The benefits we receive are as good as most other organizations

offer