The impact of quality of work life and organizational commitment on job performance of employees in the Vietnamese banking sector

International School of Business Tran Ngoc Tuan THE IMPACT OF QUALITY OF WORK LIFE AND ORGANIZATIONAL COMMITMENT ON JOB PERFORMANCE OF EMPLOYEES IN THE VIETNAMESE BANKING SECTOR MASTE

International School of Business

Tran Ngoc Tuan

THE IMPACT OF QUALITY OF WORK LIFE AND ORGANIZATIONAL COMMITMENT ON JOB PERFORMANCE OF EMPLOYEES IN THE VIETNAMESE

BANKING SECTOR

MASTER OF BUSINESS (HONORS)

Ho Chi Minh City Year 2017

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

Tran Ngoc Tuan

THE IMPACT OF QUALITY OF WORK LIFE AND

ORGANIZATIONAL COMMITMENT ON JOB PERFORMANCE OF

EMPLOYEES IN THE VIETNAMESE BANKING SECTOR

MASTER OF BUSINESS (HONORS) SUPERVISOR: Dr TRAN PHUONG THAO

Ho Chi Minh City Year 2017

ACKNOWLEDGEMENT

Firstly, I would like to express my gratefulness to my supervisor Dr Tran Phuong Thaofor her professional guidance, intensive support, valuable suggestions, instructions and continuous encouragement during the time of research and writing this thesis

I would like to express my deepest appreciation to ISB Research Committee for their valuable time as their insightful comments and meaningful suggestions were

contributed significantly for my completion of this research

My sincere thanks also go to all of all of my lecturers at International Business School- University of Economics Ho Chi City for their teaching and guidance during my Master course

Last but not least, I would like to thanks my family, whom were always supporting

me and encouraging me with their best wishes

ABSTRACT

This study uses three components of quality of work life and three components of organizational commitment to investigate the impacts of quality of work life and

organizational commitment to job performance in the Vietnam banking sector This

research framework was tested through a survey on employees from banks in Ho Chi

Minh City A total of 259 questionnaires collected and analysed using including sample descriptive statistic, reliability analysis, exploratory factors analysis, CFA, and SEM.The findings of this research showed significant and positive effects of quality of work life and organizational commitment on job performance Furthermore, the research found that there is a positive relationship between quality of work life and organizational

commitment

Key words:quality of work life, organizational commitment, job performance,

survival needs, belonging needs, knowledge needs, affective commitment, continuance commitment, normative commitment

TABALE OF CONTENTS

LIST OF TABLES iii

LIST OF FIGURES iv

CHAPTER 1 : INTRODUCTION 1

1.1 Research background 1

1.2 Research Problems 2

1.3 Research Objectives 4

1.4 Scopes of the study 4

1.5 The significane of the study 4

1.6 Structure of the study: 5

CHAPTER 2 : LITERATURE REVIEW AND HYPOTHESIS DEVELOPMENT 7

2.1 Theoretical foundations 7

2.2 Overview on job performance, quality of work life and organizational commitment 10

2.2.1 Job performance 10

2.2.2 Quality of work life 11

2.2.3 Organizational commitment 13

2.3 Hypothesis development 15

2.3.1 Quality of work life and job performance 15

2.3.2 Organizational commitment and job performance 16

2.3.3 Quality of work life and organizational commitment 17

2.4 Research model 18

2.5 Chapter summary 19

CHAPTER 3 RESEARCH METHODOLOGY 21

3.1 Research process 21

3.2 Research design 22

3.2.1 Questionnaire design 22

3.2.2 Measurement scale 23

3.3 Qualitative method 26

3.4 Main survey 26

3.4.1 Sampling 26

3.4.2 Data analysis method 27

3.5 Chapter summary 30

CHAPTER 4 : DATA ANALYSIS AND DATA RESULTS 31

4.1 Preliminaries of data analysis 31

4.2 Reliability analysis 32

4.3 Exploratory Factor Analysis 34

4.4 Confirmatory Factor Analysis (CFA) 35

4.5 SEM Testing and Bootstrap Method 38

4.5.1 SEM Testing 38

4.5.2 Bootstrap method 40

4.6 Discussion 41

4.7 Chapter summary 42

CHAPTER 5 CONCLUSION AND IMPLICATIONS 43

5.1 Conclusions 43

5.2 Managerial implications 44

5.3 Directions for future research 45

REFERENCES 46

LIST OF TABLES

Table 4.1 Summary of employees’ profile 31

Table 4.2 Cronbach’s Alpha 32

Table 4.3 KMO and Bartlett's Test 35

Table 4.4 Standardized regression weights 37

Table 4.5 The AVE items 38

Table 4.6 Regression weights 40

Table 4.7 Standardized Regression Weights (bootstrap standard error) n =1000 40

LIST OF FIGURES

Figure 2.1 Conceptual framework of the study 19

Figure 3.1 Research Process 21

Figure 4.1 CFA model 35

Figure 4.3 Structural results 39

CHAPTER 1 : INTRODUCTION

1.1 Research background

Human resource management plays critical role in modern business today because

of its impacts on organizational success as well as retaining talent people Human

resource is denoted as an empathy factor and the employees’ attitude impacts directly on customer satisfaction and perception which may lead to higher customer loyalty as well

as customer commitment (Parasuraman, Zeithaml and Berry, 1985) Thus, human

resource is considered as key factors impacting on service quality and customer

Many prior studies show that job performance is affected by a number of factors including quality of work life and organizational commitment The impact of these

factors are investigated in a wide range of studies including Nguyen and

Nguyen(2012),Sirgy, Efraty, Siegel and Dong(2001),Fu and Deshpande (2014)

Accordingly, Mohan and Kanta (2013) showed that quality of work life influences on efficiency and productivity of company Moreover, creating quality of work life will

make employees feel satisfactory Therefore, quality of work life plays a vital role in attracting and keeping the genius May, Lau and Johnson (1999) also showed that

organizations offering the better quality of work life has more advantages in hiring and retaining good employees In the meantime, organizational commitment is the

individual's psychological attachment to the organization among its employees (Murthy, 2013; Lamba & Choudhary, 2013) Organizations commitment may attract and retain staff to have longer tenure

1.2 Research Problems

The banking finance industrieshave existed for hundreds of years, and became the heart of the modern economy.In recents years, with development of Vietnamese banking system, workforce demand is rising The banks also encounter many challenges in the workforce competency environment Therefore, the high quality workforces are well focused in developing To evaluate quality workforces, job performance is an important criterion for outcomes and success of employees (Campbell, McCloy, Oppler, Sager, Schmitt, & Borman, 1993) Therefore, it is necessary for bank’s managers to investigate factors which affect job performance of their employees in the Vietnamese banking sector

This research focuses on explaining job performance by examing the effects oftwo factors which are quality of work life and organizational commitment on job

performance

Work is considered as an important part of life as we spend one-third of our each day for it What happens at the workplace has impacts and affects our individual

life.Therefore, quality of work life is an important part which brings a quality life for each individual.Many studies emphasis on quality of work life in North America while the concept in Asia has been less concerned(Chan, 2007).In Vietnam, there are a few study researchesabout quality of work life and job performance (Nguyen & Nguyen, 2010; Nguyen & Nguyen, 2012) However, these researches only focused on the

marketing industry Therefore, it is necessary to study the relationship between quality of work life and job performance among employees in Vietnamese banking sector

Besides developing quality workforce, workforce transition issue from banking sector to more profitable industries became a big problem for banks In hard times, banks want their experienced and talented employees to stay on to share difficulties and possess strong commitment to serving customers for the business interest So, committed staff is valuable human capital for the banks Harter, Schmidt, and Hayes(2002) also suggested that commitment is important for meaningful business results and due to increasingly competitive business environment committed workforce has now become a matter of survival for every organization Therefore it is necessary toexplore the impact of

organizational commitment on job performance in Vietnamese banking sector

1.3 Research Objectives

The objective of this study is to examine the impact of quality of work life and organizational commitment on job performance among employees in the Vietnamese banking sector

More specifically, three research questions are given as follows:

Question 1: Doesquality of work life affect job performance of employees in the Vietnamese banking sector?

Question 2: Does organizational commitment affect job performance of employees

in the Vietnamese banking sector?

Question 3: Doesquality of work life affect organizational commitment of

employees in the Vietnamese banking sector?

1.4 Scopes of the study

The object of this study is employees of banks in Ho Chi Minh City The research

is conducted in Ho Chi Minh City which is known as one of the biggest economic centers

of Vietnam

The research only approaches to factors concerning in organizational commitment and quality of working life with job performance Other factors impact on job

performance being out of the topic of this research

1.5 The significane of the study

This research contributes to the understanding of quality of work life and

organizational commitment, and their impact on job performance within the context of

Vietnamese business organizations in generally and within Vietnamese banking sector in particularly

The findings provide a significant opportunity for managers perceives that some aspects of employees’ quality of work life can have a positive impact on their job

performance as well as organizational commitment Based on this finding, it is very important for business organizational management to design work requirements, build appropriate policy in order to improve employees’ quality of work life, so that employees can enhance organizational commitment and job performance as well

1.6 Structure of the study:

The structure of the study consists five chapters:

Chapter 1: Introduction

This chapter presents research background of the study, as well as, research

problems, research objectives, research methodology and scopes

Chapter 2: Literature Review, Hypotheses, and Research model

This chapter, this study provides the literature review and presents the

fundamental ideas on two main constructs: quality of work life and organizational

commitment In this chapter, the conceptual model of the study and the hypotheses of the study are also presented

Chapter 3: Research Methodology

Research process, measurement scales, questionnaire design, data collection

method, sampling design, and data analysis method are presented more details in this chapter

Chapter 4: Data Analysis

All of data collected from the survey are analyzed The final model of the study is built based on the results of those analyses Depending on output results from the

analyzing, the relationship of those factors as mentioned in the study model will be

examined

Chapter 5: Conclusions, Implication, and Limitation

Conclusions present the findings in the study The researcher suggests managerial implementations based on the result of previous chapters, and give limitations that impact

on the finding as well as future direction

CHAPTER 2 : LITERATURE REVIEW AND HYPOTHESIS DEVELOPMENT

This chapter mainly introduces the theories, which are proposed by many scholars

in academic field and are related to all the concepts and research model At first, it

introduces the definition of quality of work life, organizational commitment, and job performance Next, the previous research of these concepts and their related discussion are mentioned Finally, based on these theories and the relation of previous research, the hypotheses of relationship among these constructs and conceptual model are proposed

2.1 Theoretical foundations

Quality of work life

Sirgy et al (2001) stated that “there are two main theoretical approaches in the Quality of work life literature; it is need satisfaction and the other is spillover” The need satisfaction approach to quality of work life is based on need-satisfaction models

developed by Maslow, Frager and Cox (1970) The main idea of this approach to quality

of work life is that people have basic needs which they can be satisfiedby their jobs Employees acquire satisfaction from their jobs to the scope that their jobs can meet these needs Porter (1961) developed a quality of work life to measure need satisfaction in the organizational context based on Maslow Hierarchy of needs Porter (1961) stated that quality of work life measure objectives were to assess employees levels of needs

according to their job, the level of organizational resources related to employees

experiences and the congruence between a person’s needs and organizational resources that reflect organization needs fulfilment Four needs, including seven needs based on

Maslow’s hierarchy were covered by the Porter (1961) measure, namely survival needs, social needs, ego needs, and self-actualization needs

Another approach to quality of work life is spillover Sirgy et al (2001) supposed that “the spillover approach to quality of work life states that satisfaction in one area of life may influence satisfaction in another For example, satisfaction with one’s job may influence satisfaction in other life domains such as family, leisure, social, health,

financial, etc”

Organizational commitment

Organizational commitment was, in general terms, an employee’s sense of

attachment and loyalty to the work organization with which the employee is associated This section reviews the dominant theories of organizational commitment from the 1960s

to present day

The side-bets theory

The side-bet theory was introduced by Becker (1960) This term referred to

accumulation of investments valued by the individual that would be lost or deemed worthless if he or she were to leave the organization.Basically, side-bet refer to anything

of importance that an employee has invested, such as time, effort or money (Meyer & Allen, 1990) that would be lost or devalued at some cost to the employee, if he or she left the organization or occupation Becker (1960) argued that over a period of time certain costs accrue which make it more difficult for the person to change his or her job The person who hesitates to take a new job may be deterred by a complex of side-bets: the

financial costs connected with a pension fund he would lose if he moved; the loss of seniority and his relationship in his present company

Becker (1960)’s approach claimed that a close connection between organizational commitment and employees’ voluntary turnover behavior According to Becker (1960) organizational commitment should be measured by evaluating the reasons, if any that would cause a person to leave his organization Becker (1960)’s approach and the scales that were assumed to represent it were adopted by later research as the approach

toconceptualize and examine commitment to theorganization and/or to the occupation The influence of the side-bet approach is evident in Meyer and Allen’s Scale (1991), which might be named as the continuance commitment This scale was advanced as a tool for the better testing of the side-bet approach and is one of the three dimensions of organizational commitment outlined by Meyer and Allen (1991)

Meyer and Allen theory

Meyer and Allen’s (1984) approach started with a paperthat argued that the bet approach was inappropriatelyoperationalized.They argued that the scales developed byBecker (1960) do not really measure side-bets but measure attitudinal commitment Might the better way to measure side-bets is to use measures that more directly assess individuals' perceptions regarding the number and magnitude of the side-bets they have made In order to test this contention, they compared the interrelationships among several common scales of commitment and two scales they had developed, one representing Affective commitment and the other Continuance commitment Meyer and Allen

side-proposed the continuance dimension as a better representation of Becker's side-bet

approach It was designed to assess the extent to which employees feel committed to their organizations by virtue of the costs that they feel are associated with leaving

A few years later, a third dimension was added, the normative commitment (Allen

& Meyer, 1990) Normative commitment was defined as a feeling of obligation to

continue employment Employees with a high level of normative commitment feel that they ought to remain within the organization (Meyer &Allen, 1990) Normative

commitment is affected in the main by socialization and/or culture prior to entry into an organization

2.2 Overview on job performance, quality of work life and organizational

commitment 2.2.1 Job performance

Borman and Motowidlo (1993) defined “job performance as work-related

behaviors that can be measured by the individual’s level of contribution toward meeting organizational goals Job performance measures whether a person performs a job well”

As Razek (2011) mentioned that “job performance is one of the most important activities that reflect both the goals and the means necessary to achieve them and

represents the specialist efficiency or an organization's achievement expectation It is the effort made by the employee within the organization in order to achieve a particular goal The actual results that companies desire objectively measure.”

Daniel and Harris (2000) defined “job performance in terms of whether

employees’ behaviors contribute to organizational goals” Job performance can be

defined as an employee ability to accomplish tasks assigned to him or her in an

organizational context (Arverty & Murphy, 1998)

Briefly, job performance indicates the effectiveness of employee’s specific actions that contribute to attain organizational goals

2.2.2 Quality of work life

Ever since the concept of quality of work life (QWL) was first used over 30 years ago there are some different definitions of QWL (Martel &Dupuis, 2006) Feldman (1993) defined QWL is the quality of relationship between employees and the total

working environment According to Bowditch and Buono (2005), the concept of QWL has been provided since 1960s, and this term is defined as “concentration of the

organization on the employees’ health and general well-being in order to ensure that the employees feel happy at work and the quality of on-the-job experiences.”

Recently, Kashani (2012) asserted that many organizations today conduct the studies about quality of work life of employees, and they also involve their employees into evaluation process The reason of this involvement is that employees will provide basic information about how the employers can improve human resource management and related policies in order to improve the quality of work of the employees It also refers to how working environment affects employees as well as their participation to problem solving process as well as and the rewards mechanism to motivate the

employees

Quality of work life defined by Mohan and Kanta (2013) means “supporting good working conditions to employees to express their best performance Motivating

workplace makes staffs to have positive attitude towards their job and organization.”

Sirgyet al.(2001) stated that “quality of work life is about the wellbeing of

employees or satisfaction with a variety of needs through resources, activities, and

outcomes stemming from participation in the workplace”

According to Sirgy et al (2001), the concept of quality of life in this research was developed by the need theories of Maslow, Frager and Cox (1970) as well as the spillover theories Four need categories, including seven needs based on Maslow’s hierarchy were covered by Porter (1961), which includes survival needs, social needs, ego needs and self- actualization needs

Recently, the concept of quality of work life are extended to the seven major needs, namely satisfaction of health and safety needs, satisfaction of economic and family needs, satisfaction of social needs, satisfaction of esteem needs, satisfaction of

actualization needs, satisfaction of knowledge needs, satisfaction of aesthetics needs (Nguyen & Nguyen, 2010)

In a recent study, Nguyen and Nguyen (2010) used the concept “Survival needs”

to present both the satisfaction of health and safety needs as well as satisfaction of

economic and family needs The satisfaction of social needs and satisfaction of esteem are presented by the concept “Belonging needs” The satisfaction of actualization needs, satisfaction of knowledge needs and satisfaction of aesthetics needs are presented by the concept “Knowledge needs” These three terms “survival needs” “belonging needs” and

“knowledge needs” are accepted by several researchers including Nguyen and Nguyen (2012) and Sirgy et al (2001)

The quality of working life (the satisfaction of the employees) has implied to have the positively impact on job performance However, the satisfaction of the employee depends on the level of job that supports to their human needs

In the Vietnamese market, Nguyen and Nguyen (2012) defined quality of work life as marketers’ satisfaction with a set of human needs when participating in the

workplace The set of human needs includes health and safety needs, economic and family needs, social needs, esteem needs, actualization needs, knowledge needs and aesthetics needs The study result showed that there were only three variables clearly explaining human demands in the workplace including survival needs, belonging needs, and knowledge needs

In short, quality of work life also refers to the satisfaction of employees with survival needs, belonging needs, and knowledge needs based on the definition of Nguyen and Nguyen (2012)

2.2.3 Organizational commitment

According to Mowday,Steers and Porter (1979) “organizational commitment was defined as the relative strength of an individual’s identification with and involvement in a particular organization.” Later, this term was defined O’Reilly and Chatman (1986) as

“individual's psychological attachment to an organization - the psychological bond

linking the individual and the organization.”

Although numerous differences in the approach to organizational commitment research exist, definition of organizational commitment of Meyer and Allen (1991) was being used in popular Accordingly, they stated that“a psychological state characterizes

an employee’s relationship with an organization and has implications for the decision to continue membership of the organization” Meyer and Allen (1991) also proposedthree-component model of commitment including: affective commitment, continuance

commitment, and normative commitment In fact, people who have a high level of

organizational commitment show a higher level of adaptability, satisfaction, productivity, greater accountability, and a strong sense of loyalty to the organization and they are less expensive as well

Affective commitment

Affective commitment refers to the employee’s emotional attachment to,

identification with and involvement in the organization and its goals The attachment is reflected in one’s role, task management and social interaction in relation to the

organizational goals and values (Lee, Allen, Meyer & Rhee, 2001) According to

Hofstede (1980), people coming from more individualistic cultures tend to be more idiocentric and more calculative on self-achievement (Randall, 1993) They feel

committed due to the job itself or the compensation system provided by their employer (Boyacigiller &Adler, 1991) In other words, employees with low affective commitment will choose to leave banks, while employees with a high affective commitment will stay for longer periods, as they believe in the organization and its mission

Continuance commitment

Meyer and Allen (1991) stated that “Continuance commitment refers to

commitment based on the costs and risk the employees associate with leaving the

organization As such, the fewer alternative employment opportunities an employee has the higher the continuance commitment is perceived” Continuance commitment is

willing to stay in the organization because of the costs or benefits of leave to remain in the organization

Normative commitment

Normative commitment refers to employees’ feelings of obligation, duty or loyalty

to remain with the organization, even when the organization suffers some problems It is believed that this type of commitment will be influenced by an individual’s experiences both prior to cultural socialization and following organizational socialization entry into the organization (Meyer & Allen, 1991).Normative commitment is defined as a sense of obligation and duty to remain as an organization’s member

2.3 Hypothesis development

2.3.1 Quality of work life and job performance

Quality of work life and job performance both are organizationally based (Beh

&Rose, 2007) In the paper of testing the relationship between quality of work life and job performance by using questionnaires to survey a sample of 475 managers in a

manufacturing industry in Malaysia, Beh and Rose (2007) indicated the results that there was a positive relationship between quality of work life and job performance

In the paper ofKorunka, Christian, Peter Hoonakker, and Pascale Carayon

(2008),Regoand Cunha(2008), quality of work life has a positive impact on employee’s

productivity, loyalty and performance In Vietnamese market, Nguyen and Nguyen (2010) found these factors explaining human demands in work place, including survival needs, belonging needs, and knowledge needs; however, these study did not explain the relationship between quality of work life and job performance in the Vietnamese banking sector As such, this study proposes the positive relationship between quality of work life and job performance as below hypothesis

H1: Quality of work lifeimpacts positively on job performance among employees

in the Vietnamese banking sector

2.3.2 Organizational commitment and job performance

The literature shows a wide range of evidence supporting for the relationship between organizational commitment and job performance Specifically, the findings of study ofJaramillo, Mulki, and Solomon(2005) indicated that organizational commitment was a significant predictor of job performance.Khan,Ziauddin, Jam, and Ramay (2010) investigate the relationship between organizational commitment and employees’ job performance in the oil and gas sector of Pakistan.The results revealed a positive

relationship between organizational commitment and employees’ job performance In the comparative analysis of three dimensions of organizational commitment, normative commitment has a positive and significant correlation with employees’ job performance

The Vietnamese banking sector has developed in recent years Many international banks have opened their branches and merger between different banks were seen Our research will concentrate on bank employees how much they are committed to their work and what level of performance they are giving in their designated position The research

will help us to understand the potential aspects that would lead better performance and factors which would lead high commitment of employees with organization

Another study by Memari,Mahdieh and Marnani(2013) founded that positive relationship between organizational commitment and employees’ job performance In three dimensions of organizational commitment namely: affective commitment,

continuance commitment, and normative commitment among employees in Meli Bank in Iran and found several positive relationship between organizational commitment and job performance

Observation on previous studies (Fu & Deshpande, 2014) showed that

organizational commitment had a significant direct impact on job performance

Therefore, the second hypothesis is proposed as follows:

H2: Organizational commitment impacts positively on job performance among

employees in the Vietnamese banking sector

2.3.3 Quality of work life and organizational commitment

In the paper of Gupta (2013) has showed that the employees with favorable quality

of work life are more committed and maintain a long term relationship with their

organizations as compared to those with unfavorable quality of work life Quality of work life in the organization is better, even higher levels of organization commitment is high too.Fattahi, Kazemian, Damirchi, Kani and Hafezian (2014) also provide evidence

supporting for positive impacts between quality of work life and organizational

commitment

In a research conducted by Normala (2010) to explore the relationship between quality of work life and organizational commitment amongst employees in Malaysian firms, it was found that there was a meaningful relationship between quality of work life and organizational commitment Birjandi, Birjandi, and Ataei (2013) stated a positive and significant relationship between components of quality of work life and employees

relationship between quality of work life and organizational commitment In other words, the more quality of work life of employees of banks, the more organizational

commitment they have Furthermore, Sirgy et al (2001) stated that quality of work life positively influences organizational commitment

In the Vietnamese banking sector, the higher organizational commitment the employees were, the higher level of attachment to some aspect of work they will have.As such, one hypothesis is suggested as follow:

H3: Quality of work life impacts positively onorganizational commitment among employees in the Vietnamese banking sector

Figure 2.1 Conceptual framework of the study

H1: Quality of work life impacts positively on job performance among employees

in the Vietnamese banking sector

H2: Organizational commitment impacts positively on job performance among

employees in the Vietnamese banking sector

H3: Quality of work life impacts positively onorganizational commitment among

employees in the Vietnamese banking sector

In conclusion, this chapter reviews the various definitions of quality of work life,

organizational commitment and job performance from many previous authors to provide

Job performance H1 (+)

H2 (+) H3 (+)

Quality of work life

Survival needs

Belonging needs

Knowledge needs

Organizational commitment

Affective commitment

Continuance commitment

Normative commitment

the concept of the three component of quality of work life and the three component of organizational commitment Finally, the conceptual model for the research is proposed

for studying

CHAPTER 3 RESEARCH METHODOLOGY

All procedures in this chapter, including qualitative and quantitative research, are described The qualitative study involves in-depth interview, is used to modify and refine the measures In order to evaluate the model and hypothesis, the study will adopt the quantitative research method that the data was collected by questionnaire survey

This chapter describes research process, research design, sampling method, data analysis, measurement scales, and the results

The thesis investigates the impact of quality of work life and organizational

commitment on job performance of employeesin the Vietnamese banking sector To achieve this objective, the thesis process covers several stages including literature review, research design, qualitative method, main survey and data analysis which illustrated in the below process

Figure 3.1 Research Process

3.2 Research design

3.2.1 Questionnaire design

The questionnaire is divided into eight parts: personal information, survival needs, belonging needs, knowledge needs, affective commitment, continuance commitment, normative commitment, and job performance The 5-point Likert scales, which are rating

Formulating Research Problem

Reliability analysis Exploratory Factor Analysis Hypothesis Testing Model

Conclusions & Implications SEM analysis

scales widely used for asking respondents’attitudes is utilized to ask the employee to evaluate the degrees of their agreement with the impacts of quality of work life and

organizational commitment on job performance The 5-points in the scale are respectively from 1 to 5 scoring: strongly disagree, disagree, neutral, agree, and strongly agree The questionnaire is initially prepared in English and then translated into Vietnamese by an academic fluent in both languages This procedure is undertaken because English is not well understood by all banking officers in Vietnam Translation is undertaken to ensure the respondents can understand the meanings Before launching, this questionnaire was pre-tested by face to face interviewing around 5 people who are working in banks with long experience to make sure that they understood clearly about the scale or not with the aim to modify the measurement scale more suitable when applying to the research in Vietnam Based on that, the final version of questionnaire is launched the main survey

3.2.2 Measurement scale

Quality of work life

The questionnaire of quality of work life is mentioned into three dimensions: survival needs, belonging needs, and knowledge needs

To measure these items, the study adapts the measurement given by Nguyen and Nguyen (2012) who suggest several questions The questions are as follows:

Belonging needs

QB1 I have good friends at work QB2 I have enough time away from work to enjoy other things in

life QB3 I feel appreciated at work

Knowledge needs

QK1 I feel that my job allows me to realize my full potential QK2 My job allows me to sharpen my professional skills QK3 My job helps me develop my creativity

Organizational commitment

The questionnaire of organizational commitment is mentioned into three

dimensions: affective commitment, continuance commitment, and normative

Commitment

To measure the affective commitment, the study adapted the measurement given

Fu and Deshpande (2014) who suggest several questions The questions are as follows:

AC4 I feel like ‘‘part of the family’’ at my organization AC5 I feel ‘‘emotionally attached’’ to this organization AC6 This organization has a great deal of personal meaning

for me

Continuance

commitment

CC1 It would be very hard for me to leave my organization

right now, even if I wanted to;

CC2 Too much in my life would be disrupted if I decided I

wanted to leave my organization now;

CC3 Right now, staying with my organization is a matter of

necessity as much as desire CC4 I feel that I have too few options to consider leaving this

organization

CC5 One of the few serious consequences of leaving this

organization would be the scarcity of available alternatives

CC6 If I had not put so much of myself into this organization, I

might consider working elsewhere

right to leave my organization NC4 This organization deserves my loyalty;

NC5 I would not leave my organization right now because I

have a sense of obligation to the people in it;

NC6 I owe a great deal to my organization

This study revised two questions in two variables in to negative questions to avoid bias The questions were revised as below:

In addition, Tabachnick (1996) emphasized that the minimum sample size in case

of stand multiple regression should be: n>50+8m (where m is the number of independent variables So the requested sampling size is more than 50+8 x (6) = 98) This research needs 98 samples at least With quantitative approach in order to increase the reliability

and validity, the initial target sample size for this research was about two hundreds of employees in banking sector

A total of 300 questionnaire forms are circulated to employees who are working

in banks in Ho Chi Minh City through mail survey method To control the potential for varied interpretation of question wording and the study will be intended The mail survey and online survey are the methods of choice because they are relatively inexpensive to administer; they allow for large numbers of respondents to be surveyed in a relatively short period; respondents can take their time in answering, and privacy is easier to

maintain (Mangione, 1995) There are 270 participants answered the questionnaires through email and 259 questionnaires are used to analyze.The other 11 unqualified

questionnaires are removed including 5 questionnaires that participants do not answer all the questions and 6 questionnaires which participants only choose one unique answer for all the questions

3.4.2 Data analysis method

After finishing the data collection, the process of data analysis is conducted All accepted questionnaires are reviewed for validity Reverse-scoring negatively-keyed items must be implemented before computing individuals’ total scores and before

conducting data analyses This study used the SPSS Statistic version 20 to analyze the data Data processing procedures used in this study are summarized as followings:

Test for reliability

The Cronbach’s Alpha is the most widely used objective measure of reliability of the scale Cronbach’s Alpha is a statistical test if the correlation of the items in the scale

is relative to each other Consequently, this method of analysis can remove inappropriate variables and limit junk variables in the study process and evaluate the reliability of the scale through the Cronbach’s Alpha coefficient (Hair et al., 1998) According to Pallant (2001), the scales are reliable when the Cronbach’s Alpha coefficient of each scale is equal to or higher than 0.7 A low value of alpha could be due to a low number of

questions, poor interrelatedness between items or heterogeneous constructs

Test for validity

Exploratory Factor Analysis (EFA) was conducted to test the number of factors extracted to explore the relationship between independent variables Factor analysis is a multivariable statistical technique which defines the underlying structure among a large number of variables (Hair el al., 1998) The two fundamental purposes of factor analysis are to summarize the information contained in a large number of variables and condense the data into smaller number of factors (Hair el al., 1998) In the study, there were six dimensions that were assumed to have influence on employee’s job performance Factor analysis was used to create factors for each of the six measuring scale related In addition, factor analysis assisted the researcher to determine factors were highly correlated to

employee’s job performance According to Pallant (2001), Factor analysis is appropriate for data if satisfies the followings:

The Kaiser-Meyer-Olkin value (KMO) is 0.6 or greater

The Bartlett’s test of inadequate is statistically significant: p < 0.05

The transmission coefficient variables (factors loading) is less than 0.5 or the difference between the two factors less than 0.3 will be disqualified

Stop Eigenvalue (representing the variance explained by each factor) greater than

1 and the total variance extracted (Cumulative Extraction Sum of Square Loadings) greater than 50%

Testing the reliability and validity of measurement model

Amos 20 ran for CFA with purpose of testing the reliability and validity of

measurement model The CFA results indicated the model fit if Cmin/df was less than 03 with p-value larger than 5% The goodness of fit index (GFI) was a measure of fit

between the hypothesized model and the observed covariance matrix The comparative fit index (CFI) analyzed the model fit by examining the discrepancy between the data and the hypothesized model, while adjusting the issue of sample size inherence in the chi-squared test of model fit A CFI value is more than 0.95 is good, more than 0.9 is

traditionally, and more than 0.8 is sometimes permissible The root mean square error of approximation (RMSEA) avoided issues of sample size by analyzing the discrepancy between the hypothesized models, with optimally chosen parameter estimates, and the population covariance matrix A value of 0.1 or less was indicated and acceptable model fit Based on composite reliability (CR), the author evaluated the measurement scale’s reliability According to CFA results, average variance extracted (AVE) was used to conclude the convergent validity and correlation between items was used to identify the discriminate validity Then, structural equation modeling (SEM) tested the hypothesized model and estimated path coefficients for each proposed relationship in the structural model SEM is a comprehensive statistical approach to testing hypotheses about relations among observed and latent variables (Hoyle, 1995) Rigdon (1998) defined that SEM is a