The research objective of the thesis is to assess the impact of elements of corporate culture on employee commitment in different types of businesses in Vietnam from which to make recommendations on improving oranges. employee engagement with the business through improving elements of the corporate culture.
Trang 1INTRODUCTION
1 Background of research
One of the top concerns of business leaders is how to maintain the enthusiastic
participation and the desire for the dedication of staff for businesses These employees
will help customers become more satisfied, creating loyal employees for enterprise,
thereby maintaining sustainable business operations for enterprise In other words, this
is the way to help enterprises increase their competitive advantage, contributing to the
profitability of the organization
In the world today, the problem of increasing the level of employee
commitment in the enterprise has attracted many researchers and managers In which
the research direction is based on analyzing the elements of corporate culture affecting
the commitment of employees in the organization is an important approach
In Vietnam, the researches related to the consideration of the impact of
corporate culture on employee commitment in the organization are still very limited
The research has only been done in the aspect of analyzing the elements of corporate
culture affecting the satisfaction of employees in enterprises but not comprehensive
research on the elements of corporate culture affecting all factors that are critical to
employee commitment to an organization
Due to the business environment of Vietnam, in-depth studies on corporate
culture as well as the importance of employee commitment have not been given
adequate attention Many business leaders also have short-term business thinking, so
they have not focused on building and developing culture for their organizations
Besides, with a short-term vision of business operations, leaders only focus on saving
costs, finding measures to promote sales, but not properly investing to develop human
resources of enterprise
However, along with the trend of globalization in all aspects of social life,
Vietnam's economy is not out of that inevitable trend Facing the increasingly
competitive business environment, the problem of retaining talents, creating a loyal
business team, willing to sacrifice for the organization, always focus on completing
the assigned work, they think businesses are like a family Today, businesses that have
such employees are more important than ever
In previous years, an important reason for employees to stick in the
organization is the salary and bonus regime In recent years, the expectations of
workers on this group are decreasing year by year Specifically, according to the
survey results of some companies on employment consulting services, the results
showed that there is a movement trend in Vietnam, which is the company with good
image of recruitment will collect effectively attracting talent more than 1.5 times, it
has a commitment of 30% higher employee engagement than other companies On
average, companies with less attractive recruiting brands must pay 30% - 50% higher salaries to attract talent for the same position from reputable recruitment companies
In other words, the current trend of employees in the selection process and long-term commitment to the organization is that they care about corporate reputation,
a stable working environment and good welfare to ensure public work, not come to big business Besides, there are many researches that confirm that companies with a high proportion of committed employees always achieve higher business efficiency than other companies, namely: customer satisfaction is increase more than 10%, profit
is higher than 22%, the performance is 21% higher At the same time the rate of other factors is lower such as: the rate of leave is reduced (25% compared to 65%), the employee vacation rate is 37% less (Gallup 2012)
Therefore, the dissertation has focused on studying the impact of corporate culture factors on the commitment of employees in the organization, especially the influence of this relationship will affect the operational efficiency of businesses It is a meaningful contribution to the theoretical as well as practical aspects of Vietnamese enterprises today
2 Objectives and research questions
- Objectives of the study:
The research objective of the dissertation is to assess the impact of the elements
of corporate culture on the commitment of employees in different types of businesses
in Vietnam, thereby making recommendations to improve commitment of employees
to businesses through the improvement of elements of corporate culture
- Research question:
To find out the answers to the above research objectives, the dissertation aimed
to find solutions for the following three main research questions:
1 What model of corporate culture is used to assess the impact of corporate culture factors on employee commitment?
2 How are the impacts of corporate cultural factors on the commitment of employees in different types of businesses in Vietnam?
3 What suggestions can help Vietnamese businesses improve their employees' commitment to the organization through adjusting corporate cultural factors?
3 Subjects, scope and research methods of the dissertation
- Research subjects: The research object of the dissertation is the impact of corporate
Trang 2- Research scope
+ Research content:
The elements of corporate culture have influenced the commitment of
employees, in the scope of the study of this dissertation, the author focuses on
studying the elements: Involvement, Consistency, Mission, Adaptability belong to the
corporate culture (according to Denison's model) that affects the commitment of
employees in Vietnamese businesses
+ Research location:
Data collection to test the impact of corporate culture factors on the
commitment of employees in Vietnamese enterprises was conducted to take random
samples at enterprises in Hanoi City and Vinh City In particular, the author will study
all types of businesses in these two cities
+ Study timetable:
The study of the impact of corporate culture factors on employee commitment
in Vietnamese enterprises through interviews and surveys has been carried out from
June 2016 to the end of December 2016
- Research Methods:
Research using methods: analytical method, synthesis method, quantitative
method (survey by questionnaire), interview method (interviewing some experts to
correct research model)
4 Structure of the dissertation
In order to achieve the objectives of the dissertation and answer the research
questions, the layout of the dissertation in addition to the introduction and conclusion,
it includes four chapters as follows:
Chapter 1 - Literature review of corporate culture and employee commitment in the
organization
Chapter 2 - Design and research methods
Chapter 3 - Research results
Chapter 4 - Research results and recommendations
CHAPTER 1 LITERATURE REVIEW OF CORPORATE CULTURE AND EMPLOYEE COMMITMENT IN ORGANIZATION
1.1 Overview of foreign studies The corporate culture: The field of research on corporate culture has attracted a large number of scholars in the world since the 1980s with more and more complete and diverse studies, especially the Barney's research, 1986; Clark, 1972; Deal & Kennedy, 1982; Denison, 1990; Ouchi, 1981; Pettigrew, 1979; Schein, 1985, 1992 Although it has not been explicitly delineated, the research works clearly show two main research directions: The first is to focus on finding and discover cultural factors
in corporate governance; representing this direction are the researchs of Deal & Kennedy, 1982; Boje et al., 1982
The second study focuses on the impact of cultural factors on businesses, especially for enterprises with an organized or multi-cultural operating environment; Representing this research direction are the works of Cameron & Quinn, 2006; Denison, 1980 The two directions of corporate culture all said that for a new-style organization, it is always towards sustainable development and it needs to build and develop culture to suit organization; Today, corporate culture is a new resource to help organizations create competitive advantages
The field of research on employees' commitment to the organization has also received much attention from scholars around the world, focusing on the relationships formed between employees and their organizations, Allen & Meyer (1990; Hult (2005); Lok & Crawford (2004); Meyer, Allen & Smith (1993); Mowday (1998); Mowday, Steers & Porter (1979); Rashid et al (2003) The increase of related studies
is due to demonstrating the manifestations of organizational commitment (extra - role behavior) such as denial, performance, absence It can be used to predict the results
of work, Allen & Meyer (1990); Cohen (2007); Hogg & Terry (2001); Mathieu & Zajac (1990); Porter et al (1974); Rashid et al (2003); Wasti (2003); Yu & Egri (2005); Silverthorne (2004) stated that with the intention to stay with the organization, employee participation is also directly related to commitment to the organization Greenberg & Baron (2003) agreed with the results above and affirmed that an employee's behavior could be used to predict future commitment to the organization, and it was a useful forecast DI Akintayo (2010) found that personal factors of workers such as marital status and gender also influence the level of employee commitment to the organization The increase in research is an important factor that helps organizations have a better understanding of the commitment by this factor that directly affects their organizations, employees, and the whole society, Mowday, Porter
& Steers (1982); Mathieu & Zajac (1990) Organizations want their employees to commit to the organization because it reduces the ability to replace employees and
Trang 3organizations often value those who demonstrate commitment to the organization with
both material and spiritual rewards, Mathieu & Zajac (1990) Society is like a large
organization so it also benefits from employee organizational commitment because
job changes will decrease, and work productivity or quality will increase, Mathieu &
Zajac (1990)
The impact of corporate culture on the commitment of employees in the
organization: Continuing the research direction of economists ahead, in recent years
continue to have researches to confirm the close relationship between corporate
culture and employee commitment in the organization A number of studies have
confirmed that the factors affecting the employee's commitment to the organization
include the working environment, remuneration regimes, corporate governance
policies, Ooi keng Boon, 2009; Jack Henry Syauta et al, 2012; even employees from
different cultures have different influences on the level of employee commitment in
the same organization, which means that employees with different national cultures
also there will be differences in awareness of the level of their commitment in the
organization, Sultan Al-Rasheedi, 2012
In addition, there have been many studies that have used Denison's corporate
culture theory framework to study the effects of corporate culture factors on employee
commitment in the organization with factors based on Meyer & Allen's theoretical
framework such as: Research by Ezekiel Saasongu Nongol & Darius Ngutor
Ikyanyon, (2012), Maryam Khalili (2014), Ali Asghar Firuzjaeyan et al (2015),
Yadollah Hamidi (2017) These authors have made important contributions: they have
demonstrated a positive relationship between corporate cultural factors and the
commitment of employees in the organization, but with different factors it will have
different impacts and relationships for each element in organizational commitment
1.2 Literature review of domestic research
About corporate culture: summarizing the studies in Vietnam, most of these
studies have approached macro towards corporate culture, notably Duong Thi Lieu
and Nguyen Hoang Anh (2004) Besides, there is an in-depth study of the
characteristics of corporate culture, by Thang V Nguyen et al (2005) There is also a
study of applications of corporate culture to be applied to businesses, research by
Trinh Quoc Tri (2009), one of the tools to measure corporate culture in accordance
with practical business environment in Vietnam Thus, Vietnamese researchers have
now really had serious research projects with the aim of applying them to businesses
to find new competitive advantages for businesses
Research on the commitment of employees in the organization: the authors of
Vietnam from the study of factors affecting the loyalty of employees with
organization by Tran Kim Dung, 1999, study the the impact of employee commitment
in the organization on the operational efficiency of enterprises by Do Huu Hai, 2016
Up to now, there has not been any formal study to mention the impact of corporate culture on the three levels of employee commitment in the organization
Research on the relationship between corporate culture and employee commitment in the organization: Vietnamese authors have continued to expand the direction of studying the effects of corporate culture with organizations such as studying the impact of organizational culture on employee commitment, including researches: Do Thuy Lan Huong (2008), Truong Hoang Lam, Do Thi Thanh Vinh (2012), Phan Thi Truc Linh (two thousand and thirteen) By using Ricardo's and Jolly's theory of corporate culture to study to influence the commitment of employees
in the company, the authors have contributed significantly to the discovery and advice for Corporate executives aim to promote cultural elements in the business, increasing the commitment of employees to their organizations
In particular, the study of Nguyen Thi Hong Ha (2016) has used 4 independent variables of corporate culture: leadership style, working environment, satisfaction with payment regime (salary/bonus) and the appropriateness between individuals and organizations to consider the impact on the dependent variable is "organizational commitment" and has affirmed that these four factors have different impacts on organizational commitment in the enterprise Besides, the study of Cao Viet Hieu (2019), this study also examined the impact of corporate culture on four elements of the Denison model on the commitment of employees in the enterprise The author has discovered that the four variables of corporate culture all have different effects on employee commitment in the enterprise
Trang 41.3 Research model and research hypotheses
1.3.1 Research model of the dissertation
1.3.2 Research hypothesis
- H1: Mission factor has a positive relationship to Affective Commitment
- H2: Consistency factor has a positive relationship to Affective Commitment
- H3: Adaptability factor has a positive relationship to Affective Commitment
- H4: Participation factor has a positive relationship to Affective Commitment
- H5: Mission factor has a positive relationship to Normative Commitment
- H6: Involvement factor has a positive relationship to Normative Commitment
- H7: Adaptability factor has a positive relationship to Normative Commitment
- H8: Involvement factor has a positive relationship to Normative Commitment
- H9: Mission factor has a positive relationship to Continuance Commitment
Mission
Adaptability
Consistency
Continuance commitment
Affective
commitment
Normative commitment
Involvement
Age, Position, Number
of labor, Literacy
- H11: Adaptability factor has a positive relationship to Continuance Commitment
- H12: Involvement factor has a positive relationship to Continuance Commitment
1.3.3 The scale of corporate culture and the commitment of employees in the organization
Name of Scale Factors Code The content of the observed variable
Corporate culture
Mission SM1 The decisions made by the managers are the
most accurate
SM2 Leaders and managers often work as they
said
SM3 "Our strategy has led other companies to
change the way they compete in that industry."
SM4 Our business has a clear mission, it helps
our work to have meaning and direction SM5 “Mọi người đều hiểu rằng mình cần làm gì
để đạt được thành công bền vững SM6 "The vision of the business has created
excitement and motivation for employees." Adaptability KNTU1 All members of the organization are
encouraged to be creative
KNTU2 Businesses have always created
opportunities to apply new ideas
KNTU3 New ideas have always been supported in
the enterprise
KNTU4 Customers have always influenced the
decisions of our business
KNTU5 Our business has always considered failures
to be lessons for improvement
KNTU6 Our business has competed well with other
businesses and other changes in the business environment
Trang 5Name of
Scale Factors Code The content of the observed variable
Consistency TNQ1 We have consensus and support each other
even when dealing with the most difficult problems
TNQ2 We have a clear agreement on how to work
together
TNQ3 The working method of the business is very
consistent and planned
TNQ4 The goals between management levels are
adjusted to fit together
TNQ5 Not paying adequate attention to the core
values of the company will make you difficult
Involvement STG1 The company always encourages a spirit of
cooperation between various departments within the organization
STG2 The capacity of employees in the company
is improved
STG3 Employees believe that they have a positive
impact on the organization
STG4 The work in the organization is organized so
that employees can see the relationship between their work and the organization's goals
STG5 The employees work as a member of a
group/team
STG6 The business plan is planned and everyone
is involved in this process at a certain level
Commitment Affective
commitment
CKTC1 I was very happy to develop my career in
my current organization
CKTC2 I like to discuss my organization with
outsiders
CKTC3 I do not feel that I "like a part of the family"
Name of Scale Factors Code The content of the observed variable
CKTC4 I do not feel attached to my organization CKTC5 I don't see a strong feeling when
commenting on my organization
CKTC6 I am proud of my work and position in the
organization
Continuance commitment
CKTT1 It is difficult for me to leave the
organization right now, even if that's what I want
CKTT2 One of the main reasons I continue to work
for my current organization is that I have made a significant sacrifice, another organization may not fit the common interests that I have here
CKTT3 If I don't put too much of my own problems
into this organization, I might consider working at another organization
CKTT4 Too many problems in my life will be
broken if I decide to leave my organization now
CKTT5 I am not afraid of what might happen if I
quit my job without some replacement staffs
CKTT6 I believe that those who have been trained in
my career have a responsibility to stay in that job
Normative commitment
CKDD1 I believe that at present, employees change
companies are frequent
CKDD2 One of the main reasons I continue to work
for this organization is because I believe that loyalty is important and so I feel I have a moral sense and obligation to stay here CKDD3 If I get an offer for a better job at another
organization, I won't feel right when I leave
my organization
Trang 6Name of
Scale Factors Code The content of the observed variable
CKDD4 I do not believe that a person must always
be loyal to his organization
CKDD5 I do not feel any obligation to the leader
when I leave the organization
CKDD6 I really feel that the problem of the
organization is also my problem
CHAPTER 2 DESIGN AND RESEARCH METHOD 2.1 Research design
2.1.1 Research Methods
To achieve the research goal, the author has used two research methods: (1) qualitative research and (2) quantitative research
(1) Qualitative research used to examine, adjust and supplement independent variables, new factors that make sense to the proposed model, and also to check the appropriateness of survey questionnaires Qualitative research methods are conducted
by in-depth interviews with 5 experts who have research in the field of corporate culture and the commitment of employees, 18 people working in enterprises (including 3 senior leaders and 15 any staff in selected enterprises for in-depth interviews) The study period was conducted from January 2016 to April 2016 (2) With the quantitative study, since it had the results of the qualitative research step and the review of studies related to organizational commitment, the author conducted research on a large scale, It allows to skip the preliminary quantitative research step The study period was conducted from May 5/2016 to December 2016
2.1.2 Sample selection for research:
In order to complete the research objectives of the dissertation, with the limited resources and time, the author has chosen a convenient method with the limit of sampling objects including employees working full time at Vietnamese enterprises which are established and managed by Vietnamese people in two positions, these are Hanoi City and Vinh City, including State-owned enterprises and non-state enterprises, excluding enterprises with foreign elements, cooperatives, individual economic households
To minimize the limitations of the convenient sampling method, the author has studied and reviewed studies related to the topic to develop research models and questionnaires to ensure high reliability that has been demonstrated from previous studies After that is the consultation from experts to ensure the second time about the content and reliability to be done
Finally, in order to obtain data that met the standards, the author hired trained and skilled investigators to collect data Data collection was done by sending 1000 questionnaires in which 500 questionnaires were emailed with the desired response rate of 15 to 20%, 500 other questionnaires were broadcast live to respondents and achieved response rates ranged from 40% to 50% The results obtained 315 surveys,
of which 289 valid votes for research
Trang 72.2 Results of qualitative research:
Through this research, the author has proposed to add control variables
including: age, working position, education level and number of workers in the
research model to consider the impact of the factors has just been proposed to 4
factors of corporate culture and 3 factors of organizational commitment
At the same time, it has agreed on some of the concepts used in the survey
process, keeping all elements in the proposed research model In particular, through
qualitative research, it conducted questionnaires to respondents and clarified specific
content
2.3 Official quantitative research:
After collecting data, the author imports data into IBM SPSS 20 software
(version for Windows) to conduct initial data analysis with analysis including
descriptive analysis (to describe the properties of the survey sample groups such as:
gender, age, educational level, work experience, place of work, ), analyze and assess
the reliability of the scale (Cronbach Alpha ), factor analysis The results from SPSS
analysis were used in the next analysis step with CFA method in analyzing linear
structure model (SEM) using software: AMOS 20
The standards have been used in analyzing the reliability of scale, factor
analysis and CFA analysis as follows:
- Analyzing and evaluating the reliability of the scale: eliminating unreliable
observed variables (with total variable correlation coefficient <0.3); At the same time,
the Cronbach Alpha coefficient from 0.6 to 1 was accepted in this study
- Factor analysis: KMO index is greater than 0.5; the factor loading value is
less than 0.5 so it will be removed and only the variables with factor loading> 50%
will be retained; In factor analysis (EFA), Principal Axis Factoring method with
Varimax rotation and stop point when extracting elements with Eigenvalue is 1, and it
allows determining the weight of the observed variables (factor loading) to advance
Compare removal or retention in research This step helps determine the number of
factors in the scale of corporate culture and commitment to the organization This
procedure also helps to form some new groups of factors based on combining and
combining the observed variables of the factors included in the analysis
- CFA analysis: Chi-Square index (Chi square-CMIN) has a value: P ≥ 0,05;
Chi-Square index adjusted according to degrees of freedom (CMIN / df) ≤ 2
(according to Carmines&Mciver -1981, in some cases CMIN/df ≤ 3 can be accepted);
GFI indicators (Goodness of Fit Index), TLI (Tucker&Lewis Index), CFI
(Comparative Fit Index) ≥0,9; RMSEA index (Root Mean Square Error
Approximation) ≤ 0.08, RMSEA ≤ 0,05 case according to Steiger is considered very
good
CHAPTER 3 RESEARCH RESULTS
3.1 Sample descriptive statistics of the study
- Gender: Statistics describing the sample show that there are 132 men, and 157 are women, who are participants in answering the survey questionnaire and are not excluded
- Age: the age structure of the research sample includes under 20 years old: 6 people, accounting for 2.1%, from 21 to 35: 201 people, accounting for 69.7%, from
36 to 45: 70 people, accounting for proportion 24.1%, over 46 years old: 12 people, accounting for 4.1%
- Working position: 161 survey participants are employees, accounting for 55.8%; 43 survey participants are managers, accounting for 14.9%; There are 42 people who are heads of departments / branches participating in the survey, accounting for 14.5%; 43 people are the leaders of the companies participating in the survey, accounting for 14.9%
- Education level of respondents: There are 68 survey participants graduated from high school or vocational secondary school, accounting for 23.7%; 35 people have graduated from College, accounting for 12%; 156 people who graduated from university participated in the survey, accounting for 53.9%; 14 people with postgraduate qualifications participated in the survey, accounting for 5%, there were
16 people with other education levels, accounting for 5.4%
- Labor size of enterprises participated in the survey: There are 66 enterprises participating in the survey with a total of less than 10 employees, accounting for 22.8%; There are 37 enterprises participating in the survey with a total workforce of
10 to 200 people, accounting for 12.9%; There are 41 enterprises participating in the survey with a total workforce of 200 to 300 people, accounting for 14.1%; There are
145 enterprises participating in the survey with a total workforce of over 300 people, accounting for 50.2%
3.2 Assessing the reliability of scale:
3.2.1 Testing reliability of scale:
For the Mission factor: The observed variables used to measure this factor have
a correlation coefficient of the total variable>0.3 and the Cronbach Alpha coefficient
of the Mission factor of 0.807, which is considered reliable
For the Adaptability factor: The observed variables used to measure this factor have a correlation coefficient of the total variable>0.3 and the Cronbach Alpha
Trang 8For Involvement factor: The observed variables used to measure this factor
have a correlation coefficient of the total variable>0.3 and the Cronbach Alpha
coefficient of the Involvement factor reaches 0.816, it is reliable
For the Consistency factor: The observed variables used to measure this factor
have a correlation coefficient of the total variable>0.3 and the Cronbach Alpha
coefficient of the Consistency factor reaches 0.881, it is reliable
For the Affective Commitment factor The observed variables used to measure
this factor have a correlation coefficient of total variables>0.3 and Cronbach Alpha
coefficient of the Affective Commitment factor reaches 0.812, it is reliable
For the Continuance Commitment factor: The observed variables used to
measure this factor have a correlation coefficient of the total variable>0.3 and the
Cronbach Alpha coefficient of the Continuance Commitment factor of 0.832, it is
reliable
For the Normative Commitment factor: The observed variables used to
measure this factor have a correlation coefficient of the total variable>0.3 and the
Cronbach Alpha coefficient of the Normative Commitment factor of 0.878, which is
reliable
3.2.2 Result of factor analysis:
Scale of corporate culture:
The total index "Rotation Sums of Squared Loadings" reached a high value of
59.58% That said, using four factors representing 23 observed variables can explain
59.58% of data variation Thus, it is possible to use four factors to reflect the
information provided from 23 observed variables Through EFA analysis results,
variables have factor loading>0.5 so no variables are excluded from the corporate
culture scale Thus, the scale of corporate culture includes 23 observed variables
divided into 4 factors including Mission, Adaptability, Consistency and Involvement
Commitment scale
KMO and Bartlett's testing in factor analysis with 18 observable variables of
the scale The commitment shows a high KMO index (0,833) with a zero significance
level (sig = 0.000) Thus, KMO index greater than 0.5 indicates that the application of
exploratory factor analysis for this scale is appropriate
Through EFA analysis, variables have factor loading>0.5 so no variables are
excluded from the scale Thus scale the commitment of 18 observable variables is
divided into 3 factors including affective commitment, normative commitment and
continuance commitment
- Testing the difference in the average value of the research sample of the
organizational commitment value in 4 types of enterprises reaches above average level and quite high, and there are also differences between different types of businesses Overall, Normative Commitment is the most appreciated of the three aspects of organizational commitment in four types of businesses, then to Affective Commitment and finally Continuance Commitment However, in each type of commitment, the value of each of these factors is different
- Testing the difference in the average value of age, education level, employees' position for corporate cultural aspects and organizational commitment The age of employees affects variables: Mission, Adaptability, Affective Commitment and Continuance Commitment; The current position of the employee affects variables: Mission, Adaptability, Consistency and Continuance Commitment; Employee qualification factors affect variables: Mission, Adaptability, Consistency, Continuance Commitment;
- Testing the difference in the average value of labor factor for corporate culture and organizational commitment The number of employees in the enterprise (firm size) affects variables: Adaptability, Consistency, Involvement
4.2.3 Scale test by confirmatory factor analysis (CFA) CFA scale of corporate culture factors (Mission, Adaptability, Consistency, Involvement): Chi-square/df=1,826; GFI=0.896; TLI=0.942; CFI=0,950; RMSEA=0.059, demonstrating a scale model of satisfactory corporate culture elements and consistent with market data
CFA scale of factors of commitment to organizations: Chi-square/df=2,171; GFI=0.908; TLI=0,937; CFI=0.948; RMSEA=0.070, showing that the scale model of organizational commitment factors is satisfactory and consistent with market data Measurement model: Chi-square/df=1,795; GFI=0,870; TLI=0,929; CFI=0.938; RMSEA=0.058, demonstrating that the scale model of corporate cultural factors is satisfactory and consistent with market data and it confirms the uni-directionality of the employee's Affective Commitment concept scale
Verification of the official theoretical model: SEM result of theoretical model (Figure 1.5) is shown in Figure 3.6: Chi-square/df=1,593; GFI=0,838; TLI = 0,925; CFI=0,931; RMSEA=0.050, demonstrating that the theoretical model is satisfactory and suitable for market data
Trang 9Results of testing the causal relationship between concepts in the formal theory model
(standardization) Relationship Estimate S.E C.R P Label
CKTC < - SM 0.318 0.061 11.12 ***
CKDD < - SM 0.628 0.050 7.39 ***
CKTT < - SM 0.675 0.048 6.81 ***
CKTC < - KNTU 0.478 0.057 9.19 ***
CKDD < - KNTU 0.276 0.062 11.65 ***
CKTT < - KNTU 0.572 0.053 8.07 ***
CKTC < - TNQ 0.278 0.062 11.62 ***
CKTC < - STG 0,133 0,053 1,962 0,050
CKDD < - STG 0,149 0,044 2,202 0,028
CKTT < - STG 0.454 0.058 9.47 ***
CKDD < - TNQ 0.661 0.049 6.98 ***
CKTT < - TNQ 0,165 0,059 2,105 0,035
The weights are positive (+) and statistically significant (p≤0.05), it shows
factors: Mission (SM), Adaptability (KNTU), Consistency (TNQ), Involvement
(STG) has a positive impact on Commitment (CK) and is statistically significant
(P≤0.05), which proves that:
- H1: Mission factor has a positive relationship to Affective Commitment
- H2: Consistency factor has a positive relationship to Affective Commitment
- H3: Adaptability factor has a positive relationship to Affective Commitment
- H4: Participation factor has a positive relationship to Affective Commitment
- H5: Mission factor has a positive relationship to Normative Commitment
- H6: Involvement factor has a positive relationship to Normative Commitment
- H7: Adaptability factor has a positive relationship to Normative Commitment
- H8: Involvement factor has a positive relationship to Normative Commitment
- H9: Mission factor has a positive relationship to Continuance Commitment
- H10: Consistency factor has a positive relationship to Continuance Commitment
- H11: Adaptability factor has a positive relationship to Continuance Commitment
- H12: Involvement factor has a positive relationship to Continuance Commitment
That means, hypotheses: H1, H2, H3, H4, H5, H6, H7, H8, H9, H10, H11, H12 are
CHAPTER 4 CONCLUSION AND RECOMMENDATIONS
4.1 The conclusion
Through a survey of more than 1,000 employees from enterprises in two areas (Hanoi and Vinh City), the author has successfully verified the impact of the 4 elements of the corporate culture model on the commitment of employees in their business
The results of the study showed that:
+ The corporate culture variables include: Mission (SM), Adaptability (KNTU), Consistency (TNQ), Involvement (STG) all have the same impact on three aspects of organizational commitment (Affective commitment (CKTC), Continuance commitment (CKTT), Normative commitment (CKDD)
+ For Affective commitment, factors that influence from strong to weaker are: Adaptability (0.478) that influences the Affective commitment of employees; Mission (0.318) impacts the employee's Affective commitment; Consistency (0.278) affects the Affective commitment of employees; Involvement (0.133) affects Affective commitment
+ For the Continuity commitment variable, the factors that influence from strong to weaker are: Mission is the most powerful factor (0.675) to the employee's Continuity commitment, in other words, Mission is the most important factor (it is the highest value and position) creating a Continuance commitment for employees in Vietnamese businesses; Adaptability (0.572) affects the staff's commitment; Involvement (0.454) affects the employee's continuing commitment; Consistency (0.165) affects the employee's continuing commitment;
+ For the Normative investment variable, the factors that influence from stronger to weaker are: Consistency (0.661) affects the employee's Normative commitment; Mission (0.628) affects the employee's Normative commitment; Adaptability (0.276) affects the employee's Normative commitment; Involvement (0.149) affects the employee's Normative commitment
+ This study provides evidence that in Vietnamese enterprises, the Normative commitment factor is the most appreciated among the three aspects of commitment + The control variables of the research model have a certain impact, and have different influences on each factor of the independent and dependent variables of the model
Trang 104.2 Some suggestions and recommendations:
Enhance employee Affective engagement levels for organizations and business
managers need:
Building Mission of the organization clearly with breakthrough strategies, more
importantly, core values and goals of the organization need to be built in Mission must
be shared with all employees in the enterprise The important task of leaders is to
create these values, but equally important is the duty of managers, managers must find
ways to fully implement the content in the Mission of the enterprise for all employees
to understand An organization can make its employees understand that when the
mission of the business is done, it is also the goal of the employee to complete
Employees will stick with organizations more because they know that leaders really
care about employees 'thoughts, care about employees' interests In fact, with the
mentality of most individuals, it is that once we are sympathetic to any organization,
every next job becomes easier, they will have more positive thoughts and the ability to
work will be higher to complete the job
Managers also need to be aware that the initial mission to be built will be
extremely suitable for the organization and it has created the trust of employees with
the enterprise, however, with the change of the environment business, the most
sustainable factors in the business (mission ) also need to have a certain adaptation
Trust and affection of employees in the organization are the same, the concern of the
enterprise is to create trust, loyalty of employees through the system of values in the
mission but to maintain that loyalty, prove to employees that they have placed faith,
loyalty in the right place, and that is more difficult Therefore, leaders need to prove
that businesses always have timely adaptation, always learning and moving forward
In doing so, employees will try to devote to the business
Businesses need to have a way of arranging work for employees so that they
can participate in other activities in the organization appropriately This means that the
organization needs to facilitate the development of skills, capabilities of employees,
clearly define powers and responsibilities for positions in the business Enterprises
should consider the appropriateness between the knowledge, experience and
qualifications of employees with the job to maximize the ability of each employee
When employees are working with their strengths, they will be more loyal and
committed to the organization
To enhance the level of the Continuity commitment and Normative commitment
of business employees, business leaders/managers should focus on Mission,
Adaptability, Involvement and Consistency in the corporate culture system
To meet the needs of current business practices, Vietnamese enterprises have
had a fundamental change in business thinking, businesses have shifted from
short-term business thinking to long-short-term business thinking with sustainable development goals Therefore, businesses with leadership teams can turn the mission, the objectives
on the theory by specific plans, leading businesses with decisions and actions in practice, not just words say, those businesses will win the trust of employees
At that time, if employees think they want to leave the organization, they have
to make very difficult considerations, it is difficult for employees when they intend to find an organization with similar capabilities, and they feel that they are a part to fulfill that organization's mission, they feel deeply that this is truly an organization worthy of their loyalty
- Suggestions for leader/business owners on measures to improve the level of commitment factors of employees in the organization through impacting on the personal factors of employees
The results of the dissertation confirmed that the elements of: age, education level have different understandings about the elements of corporate culture and organizational commitment Test results have concluded that employees in different age groups have different understanding of Mission, Adaptability, level of Affective commitment and Continuance commitment According to the results of in-depth interviews with workers and leaders, it shows that the age factor is divided into employee life and the number of years working at the enterprise According to the findings, for newly recruited employees (with few years of working in the business), the group of 21-35 years of age is less interested in mission, Adaptability and commitment factors of enterprise Enterprises need to have training sessions for employees to understand the goals and systems of values that businesses are aiming at,
so that businesses also give specific requirements on the commitment of employees in organized so that they have a future work orientation At the same time, businesses need to pay attention to the training, staff development in team work as well as independent work to achieve high results in any form of work Various forms of training are categorized according to different criteria, such as: training, task guidance for employees; training and skills training; technical and professional training; on-site mentoring; training at work or outside the workplace; new training; retraining; Most employees want to develop skills for future jobs When they solve these problems well, employees will increase the level of engagement with businesses, they will have
to calculate carefully if there is a new job opportunity And of course, when businesses focus on investing in employees, while giving a clear and feasible future vision, employees have more reasons to stay with the organization The psychology of most employees will be worrying when I move to a new organization, they are afraid there will be no working conditions and the ability to develop well in the future as the current organization
According to the survey results, employees with different levels of education have different perceptions of Mission, Consistency, Adaptation and the Continuance