Organizational commitment at KIDO vietnam

FIGURE Figure 1 Figure 2 Figure 3 Figure 4 TABLE Table 1 Table 2 Table 3 Table 4 Table 5 Table 6 Table 7 Table 8 Table 9 Table 10 Table 11 Table 12 Table 13 Table 14 Table 15 Table 16

Ho Chi Minh City, July 2016

MASTER OF BUSINESS ADMINISTRATION

INTERNATIONAL PROGRAM



RESEARCH PROJECT (BMBR5103)

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ADVISOR’S SIGNATURE

(July 2016)

I would like to express my profound gratitude and deep regards to DR KHAI NGUYEN for his supervision, and constant guidance in this report His guidance and help will encourage me along this path of live

Also, I’d like to thank KIDO group and the participants in my survey, who have willingly shared their precious time during the process of interviewing

I would like to thank my loved ones, who have supported me throughout entire process, both by keeping me harmonious and helping me putting pieces together I will be grateful forever for your love

Once again, I thank very much to all

Vo Ngoc Khanh Phuong Student

Argument for the relationship among the constructs 26

Adams’s Equity theory 31

Albert Bandura’s Social Cognitive theory 37

9

10

PART THREE

11

12

PART FOUR

13

14

15

PART FIVE

16

17

18

REFERENCES APPENDIX

Hypotheses 41

Research model 42 METHODS 42

Data collection 42 Design template scale 42

Data collection progress 50

Data analysis 51 RESULTS 52

Cronbach’s Alpha 52

Cronbach’s Alpha standard applied 52

Cronbach’s Alpha of constructs 52

Statistics information 54 Descriptive statistics 54

Correlation statistics 54

Hypotheses testing 55

Hypothesis proposed (H1) 56

Hypothesis proposed (H2) 56

Hypothesis proposed (H3) 57

Hypothesis proposed (H4) 58

CONCLUSIONS 60

Discussion 60

Limitation of research 61 Recommendation 61

63

63 Appendix 1: Survey 66 Appendix 2: Presentation 73

FIGURE

Figure 1 Figure 2 Figure 3 Figure 4

TABLE

Table 1 Table 2 Table 3 Table 4 Table 5 Table 6 Table 7 Table 8 Table 9 Table 10 Table 11 Table 12 Table 13 Table 14 Table 15 Table 16 Table 17 Table 18 Table 19 Table 20 Table 21 Table 22

Hackman and Oldham's Job Characteristics 33 Research model of Job Satisfaction 42

Supportive and Non-Controlling Supervision Scale 44

Role Justice Scale 47 Distributive, Procedural, and Interactive Justice Scale 48 Time table for data collection progress 51 Cronbach’s Alpha - Internal Consistency 52 Cronbach’s Alpha of Organizational Commitment 52 Cronbach’s Alpha of Supportive and Non-Controlling Supervision 53 Cronbach’s Alpha of Supervisory Support 53 Cronbach’s Alpha of Role Justice 53 Cronbach’s Alpha of Distributive, Procedural, and Interactive Justice 53

ABSTRACT

The purpose of this research is to test the relationship between variables in the model

such as Supportive and Non-Controlling Supervision; Supervisory Support; Role

Justice; Distributive, Procedural, and Interactive Justice with Organizational

Commitment The empirical study result was conducted in KIDO group with 500

employees

And SPSS software is a tool that is used to analysis data in this research The collected data were analyzed through factor analysis, Cronbach’s alpha, descriptive statistics, correlation, and multiple regression analysis The research showed that there are four

factors influencing Organizational Commitment are Supportive and Non-Controlling

Supervision; Supervisory Support; Role Justice; Distributive, Procedural, and

Interactive Justice Moreover, the research provides some recommendations

implications for managers to raise the level of commitment with organization of the employees Finally, the research also point out the limitation and future directions in the same research

Key word: Organizational Commitment; Supportive and Non-Controlling

Supervision, Supervisory Support; Role Justice; Distributive, Procedural, and

Interactive Justice and KIDO group

PART ONE: INTRODUCTION

About KIDO group

KIDO CORPORATION at a glance

 Head office 138-142 Hai Ba Trung, Dakao Ward, District 1, HCMC,

Vietnam

Tran, Buu Linh Vuong, Ngoc Xiem Vuong and Ching Hua Wang in 1993

 Date of

establishment

1993

confectionery, purified water, and fruit juice; and processing agricultural products and foods It is also engaged in selling

& purchasing agricultural products and foods, industrial

Kinh Do Corporation (Vietnamese: Công ty Kinh Đô, KDC) (KINHDO:VN, KDC:VN) is a business group of Vietnam with an emphasis on food production Main offices of the company are located in Ho Chi Minh City

Kinh Do was established in 1993 and has gone through 17 years of formation and development Up to now, Kinh Do has become a system of corporations in the field of foodstuff including: cake, candy, beverage, ice-cream, and products from milk The development strategy of Kinh Do is to maintain as one leading foodstuff group in Vietnam and orient to become a multi-sector group including: foodstuff, real estate, finance and retail in order to ensure the sustainable development in the future

From the size of only 70 staffs at the initial establishment, up to now, Kinh Do has total staff of over 7,741 persons Products under the Kinh Do trademark are selling in all provinces through a diversified distribution system nationwide including 524 distributors, 31 Kinh Do Bakery shops and 200,000 retail outlets as well as franchised distribution systems with a growth rate of 30%/year The products of Kinh Do have

products, and fabric

been sold to 35 countries; particularly Kinh Do has conquered the most difficult customers such as Japan, USA, France, Germany and Singapore, etc…

30/06/2015, Having sold 80% of its confectionery business to Mondelez International for around US$370 million, Kinh Do Corporation (KDC) has changed its name into

KIDO Corporation, effectively abandoning its core confectionery operations

Shareholders agreed on the company name change but keeping the stock code intact, KDC A new chapter of KIDO begun as it transitioned away from the confectionary business and established the KIDO Group in October 2015 as a Food & Flavor

 Ki Do Corporation - ice cream and frozen yogurt

 Vinabico Corporation - confectionary

 Finance and investment: Kinh Do Investment Corporation

 Real estate: Kinh Do Land

Vision, Missions Goal and Objective

Vision

More Flavor To Life

Create life’s flavors through wholesome, healthy, and nutritious products and be the most recognized company in Vietnam and South East Asia by all stakeholders

Missions

Consumer misson

Identify and produce affordable food, snacks, beverages and to meet daily needs of consumers Our products are pioneering market-leading, healthy, satisfying and conveniently available to our consumers

Shareholder misson

To allocate capital in order to maximize shareholder value over the long-term and to manage risk in order to give certainty and confidence that investments in our business can achieve our shareholder’s goals

People misson

To nurture and develop the skills and capabilities of our people to meet the professional demands of their work and satisfy their personal needs In this way we create a KIDO family that is home to dynamic, creative, and innovative people KIDO

is the company that can elevate an individual’s ambitions and professional skills, through a corporate culture based on teamwork and mutual enrichment

Our Partner Mission

To create sustainable value for supply chain partners through innovative food products

which address consumer demand trends and exceed consumer expectations We aim to provide equitable returns for all and also contribute to improving processes both in productivity and qualitative output, for sustainable development.

Community misson

To contribute to the communities in which we operate through sponsorship programs and targeted community development activities We aim at becoming a leader of progress for Vietnamese society Our impact is not only commercial, we also embrace

Goal and objective

Setting goals and objectives will give a company a target to aim to, therefore all actions and efforts will be focused on attaining the objective instead of being inefficiently used and also motivate the leaders and their employees

As outline in its long-term development strategy, Kido’s goal is becoming one of the Regional Leading Food Corporation, expanding presence not only in confectionery production but also the business scopes of high potential and profit generation such as ice cream, yogurt, milk and dairy products KiDo set out some objectives that would need to be fulfilled to achieve the goal The main objective in 2016 is to maximize benefits for shareholders, retain the market share and improve competitiveness

The significance of Stakeholders analysis

Stakeholders can be defined as ‘individuals and groups who are affected by the

activities of an organization The most important stakeholders can be seen as those

with most to lose from the organization’s actions, but this does not always reflect their relative power.’ (Tim Hannagan, 2002) In case of KIDO, there are three types of

stakeholder: internal stakeholders, connected stakeholders and external stakeholders Each type of stakeholder has its own role and importance in the company Besides that, KIDO also influences on each of them variously It is interacting relationship between KIDO and its stakeholders

Internal stakeholders (such as employees and management)

Managers and employees are connected closely with the company They spend a great deal of their time and energy for the company and also have the biggest influence on

it They are interested in the company’s continuation and growth because it affect directly to their career and salary

To meet goal of the company, KIDO has been building a professional, strong staff

which is based on the object of Perfect management, Hi-end effecting

Managers organize and control businesses of the company Their role is making

decisions in managing and organizing company’s activities, giving reasonable recruitment policy, redundancy and retirement policies for employees and so on Furthermore, managers give out plans to develop the company and maintain the performance They also join in establishing the goal, objectives of the Group In KIDO, the managers have created the innovative culture, using cooperative environment as a support to motivate their employees They are working to make sure every employee have a clearly understanding about objectives and every activity are running forward those

In every company including KIDO, employees are a company's best asset 7,741

employees are the main workforce taking strategies into practice, so they have a main effect on success of the company Every company wants to make it the second home where everyone strives to achieve common objectives With that desire, KIDO Great Family’s aim is building an ideal working environment which is solidarity, creativity and pioneering The responsibilities of every position and every staff is building an environment of information sharing, harmonious coordination, absolutely completing goal and quote excellently KIDO pays attention to assess, identify and encourage employees in expressing their abilities and strong points in their ways if career

development and bringing practical effect Besides that, KIDO also promotes creativity and encourages innovations to improve performance, develop better policies

to retain employees and attract talent to meet company’s rapid growth and expansion

in the future

Connected stakeholders (such as shareholders, customers, suppliers and financiers)

Shareholders play an important role in raising capital for organizations and they are

granted special privileges depending on the class of stock, including the right to vote

on matters, the right to propose shareholder resolutions, the right to share in distributions of the company’s income, the right to purchase new shares issued by the company and the right to a company’s assets during a liquidation of the company Their ownership or potential ownership interest in the company of the members of KIDO’s Board of Directors, either through share ownership or through holding of equity based incentives, which may lead to share ownership in the future

Suppliers are the ones who provide the material for KIDO to make the product

Hence, they also influence on the company’s operation Finding out the suppliers, who supply a good quality materials and reasonable price is one of the most important thing for KIDO The quality of product will depend on quality of material Furthermore, prices for material are concerned with cost of production Thus, in order to have stable supplying as well as the lowest prices, KIDO always makes long- term relationship with their suppliers

Customers are the condition for existing of KIDO Their wants and needs guide every

action of the company KIDO Group always wants to serve the best product and services for the customers by providing products which safe, delicious, nutritional, convenient, and unique

Financers provide the capital to the company if the company does not have enough

money to raise the business or take a chance to do business KIDO has a strong financial resource hence this kind of stakeholder seems to be less important than others

External stakeholders (including the community, government and pressure group)

The Government manages how the company will behaves in all business activities

because the government set up the taxes, the regulation about legal action or employment rights and builds up the macro strategy to determine the development of

all the country That will influence to setting a strategy of the company

The Community is the society in the wide range of issues relevant to the KIDO

business Nowadays, giving customer cheap price and good quality is enough, every

company have to take responsibility for the community The story about Vedan is a big lesson about that From the mid-1990s until September 2008, Monosodium glutamate (MSG) producer Vedan's condiment factory in Dong Nai Province illegally discharged untreated wastewater into the Thi Vai River through concealed pipes The pollution severely damaged local stocks of fish and shrimp After this truth is discovered, supermarkets, wholesalers and several other Vietnamese businesses voluntarily decided to remove monosodium glutamate and other seasoning products made by Vedan from their shelves to boycott the polluting firm They said they would sell the products again after Vedan repair the environmental problem and pay farmers’ damages That is a big lesson for all companies in Vietnam Hence, KIDO always tries their best to reduce maximally their polluted substance to the environment not only to remain and strengthen the relationship with the community around business area

Besides that, in KIDO has continued to excel in its corporate social responsibility

when the group emerged as one of the top sponsors of charitable and social events such as “Helping Students in Flood-hit Areas to Come Back to Their Schools”,

“Dynamic – Students Are Future Entrepreneurs”, “Street of Flowers” In addition, KIDO was one of the main sponsors of various major events

HUMAN RESOURCE POLICIES

Over the last 20 years, human resources has become one of the most important asset of KIDO We are a diversified group of people with a broad range of experiences, joined together with a common goal Through professional human resources management, and competitive remuneration policies, KIDO has built up a pool of talented

employees that share the long-term vision of success with KIDO This team will be one of the primary success factors of KIDO in the future

Human resources management and development policies are founded upon the philosophy: “If a country’s most precious resources are the people, then an organization’s most precious resources are the right people” To develop the human resources needed for future growth, KIDO has continued to source, nurture and develop both internal and external talents to transform them collectively into one of the most competitive teams in the market, becoming an invaluable resources for the company This is accomplished through:

 Satisfying human resource needs of the company based on long-term strategic development objectives

 Maximizing human resource potential to achieve optimal efficiency for the company

 Investing in training and developing talents

 Enhancing employee to employee relationships and building successful teams

At KIDO, we commit to nurture and develop the skills and abilities of our people to meet the professional demands of their work and satisfy their personal needs It value the capabilities, attitudes, and commitments of our professional staffs KIDO’s continuous growth helps to ensure that compensation and bonus packages always remains attractive to attract the right talent To attract the best talents is to become the best company will always be our philosophy

KIDO HAS BUILT UP A POOL OF TALENTED EMPLOYEES

Contact

Legal name: KIDO group

Headquarters: No 138-142 Hai Bà Trưng, P Đa Kao, Quận 1, TP.HCM

Propose/ Report Propose/ Report Elect/

CORPORATE COMPANIES (BUSINESS UNITS)

INTERNAL REGULATIONS AND POLICIES INTERNAL CONTROL

BOARD OF DIRECTORS

Year2015

Year2014

Year2013

Year2012

Non-current assetsCurrent assets

Unit: million

Unit: million

Unit: million

Research problem statement

Along with the development of Vietnam's economy in recent years, the demand for manpower is increasing Companies are aggressively developing Human Capital, especially in the selection of right people for the company However, recruiting right people is not enough, we must also know how to keep talent employees, retain talents, especially how to retain our key staff who plays a key role in the company With the shortage of human capital as today, retention good people are becoming big issue of the companies

Low turnover and stability of staff will help organizations to save time and costs (recruitment, training, etc.), reduction of errors (caused by new or unskilled employees unfamiliar with the new job); create trust and solidarity within the organization Then staff will see the organization is an ideal, best place for them to work and demonstrate their capabilities for long term More importantly, the stability will help organization

to operate more efficient, produce quality of products and services, build brand awareness, customer trust and loyalty… In order to build a sustainable workforce for

organizations, many domestic and foreign researched on Organizational Commitment

of employees

CEO at KIDO group realized Organizational Commitment of employees is important

factor for KIDO group develop sustainably their human resource to help organization

to operate more efficient, produce quality of products and services, build brand

awareness, customer trust and loyalty… But, some factors such as Supportive and

Non- Controlling Supervision; Supervisory Support; Role Justice; Distributive,

Procedural, and Interractive Justice are problems for human resource management at

KIDO group

Research objectives

This purpose of this research is way to find the factors influence to the Organizational

Commitment of employees working at KIDO group

My research will focus 3 main factors:

 Firstly: search related information and try to define what meaning

Organizational Commitment is of employees at KIDO group

 Secondly: design research model and test related factors to check influence

between factors to access strong / weak level of each factor in influence progress

 Thirdly: discussing and proposing recommendation to improve the

effectiveness and forecast the human resources management at KIDO group in

the next time

Research scope

The scope of research is for the entire employees at KIDO group, includes: General Director, Vice General Directors, managers, subordinate and employees working at KIDO group; it does not include: Chairman, Board of Directors, Shareholder, Supervisory Board, and employees are under probation period or in maturity leave The survey scope is within the territory of Vietnam, which includes 500 employees of KIDO group

Contents of this research are only including factors influencing to Organizational

Commitment at KIDO group; it does not have intention of re-structuring, changing and

replacing the employees

This survey was conducted from 1 April to 28 April 2016

Significance of research

This research will help CEO, Directors; managers understand and are more aware of

the importance of Organizational Commitment That is the most important factor to

show the effectiveness of the policy, the organization operating concept in human matters

Besides significant management, it also improves employee loyalty to the organization and further, employees will be loyal to the shareholders of the company, contributed to the financial strength of the companies increasingly stronger in the future

PART TWO: LITERATURE REVIEW

in organizational research is that of O’Reilly (1989, p 17), “an individual's

psychological bond to the organisation, including a sense of job involvement, loyalty

and belief in the values of the organisation” Organisational commitment from this

point of view is characterised by employee's acceptance of organisational goals and their willingness to exert effort on behalf of the organisation (Miller & Lee, 2001) Others have defined it as simply as an organizational member's psychological attachment to the organization Organizational commitment plays a very large role in determining whether a member will stay with the organization and zealously work towards organizational goals

Theory of Organizational Commitment

A prominent theory in organizational commitment is the three-component model (or TCM) The model argues that organizational commitment has three distinctive components:

Affective commitment is your emotional attachment to an organization If you have a

high level of affective commitment, you enjoy your relationship with the organization and are likely to stay You stay because you want to stay

Continuance commitment is the degree with which you believe that leaving the

organization would be costly If you have a high level of continuance commitment, you will stay with an organization because you feel that you must stay For example, you may feel quitting your job may lead to an unacceptable length of unemployment

On the other hand, you may feel you will lose a certain degree of status if you leave a well-respected organization such as a top law firm or research company

Normative commitment is the degree you feel obligated to the organization or

believe that staying is the right thing to do Here, you believe you ought to stay

Keep in mind that your commitment is not based on just one of these components

A commitment profile is the interaction between these three components For

example, you may work at a prestigious medical research company that gives you a good salary and makes you feel important You will have affective commitment because you enjoy your work and want to stay, but you will also have continuance commitment because you don't want to lose the pay and prestige associated with the work Finally, given the nature of the work, you may feel you ought to stay to help with the medical research

The three components can have a significant effect on retention, work performance, and member well-being There is a negative relationship between affective, normative, and continuance commitment and a member's intention to voluntarily leave an

organization In other words, low affective, continuance, and normative commitment increases the likelihood that a member will leave the organization, while high levels of affective, continuance, and normative commitment are related to high retention rates Affective commitment has been linked to performance For example, employees with

a high level of affective commitment will be less absent from work, be high

performers, and are likely to engage in organizational citizenship behavior such as

helping other members, putting forth extra effort, and being an advocate for the organization

Supportive and Non-Controlling Supervision

It was developed by Oldham and Cummings (1996), describe employee perceptions of the extent to which they receive supervisory support and are subject to a non-controlling supervisory approach When supervisors are supportive, they show concern for employees’ feelings and needs; encourage them to voice their own concerns; provide positive, chiefly informational feedback; and facilitate employee skill development (Deci, Connel, &Ryan, 1989) When supervisors are controlling, they closely monitor employee behavior; make decisions without employee involvement; provide feedback in a controlling manner, and generally pressure employees to think, feel or behave in prescribed ways (Oldham and Cummings, 1996) It includes 10 items

Supervisor always affect the employees, subordinates The impact is reflected in the treatment, support, reward, motivate, encourage and support Satisfaction with their supervisor is increasing, the working efficiency of organizations increasing

Supervisory Support

It was developed by Greenhaus, Parasuraman, and Wormley (1990), to assess employee perceptions of the extent to which they receive supervisory support in their job In general, supervisory support may include career guidance, performance feedback, challenging work assignments, and work opportunities that promote employee development and visibility It includes 10 items

Role Justice

It was developed by Zohar (1995), describes employee perceptions of role justice Role justice perceptions represent an employee’s appraisal of fairness when a role sender’s (e.g., supervisor, client) expectations are not met by the employee due to limiting conditions associated with a job Perceptions of injustice or unfair reactions may be a sourse of role stress Alternately, perceptions of justice may moderate the effects of role conflict and overload That is, role senders who react fairly when an employee is unable to meet all role demands may help reduce the effects of overload And role senders who react unfairly may increase the salience and discomfort employees feel when overloaded It includes 4 items

Distributive, Procedural, and Interactive Justice

They were developed by Niehoff and Moorman (1993) A distributive justice subscale

describes the extent to which an employee believes that his or her work outcomes, such as rewards and recognition are fair The outcomes include pay level, work

schedule, workload, and job responsibilities A procedural justice subscale describes

the extent to which formal procedures exist and whether these procedures are

implemented in a way that takes employees’ needs into consideration The formal procedures cover the degree to which job decisions are based on complete and unbiased information and that employees have opportunities to ask questions and

challenge decisions An interactive justice subscale covers the extent to which

employees perceive that their needs are taken into account in making job decisions and that employees are provided with adequate explanations when decisions are finalized They include 10 items

The correlates of distributive, procedural, and interactional justice were examined using 190 studies samples, totaling 64,757 participants We found the distinction between the three justice types to be merited While organizational practices and outcomes were related to the three justice types, demographic characteristics of the perceiver were, in large part, unrelated to perceived justice Job performance and counterproductive work behaviors, considered to be outcomes of perceived justice, were mainly related to procedural justice, whereas organizational citizenship behavior was similarly predicted by distributive and procedural justice Most satisfaction measures were similarly related to all justice types Although organizational commitment and trust were mainly related to procedural justice, they were also substantially related to the other types of justice Findings from laboratory and field studies are not always in agreement Future research agendas are discussed

Argument for the relationship among the constructs

Maslow’s theory

Contents

In 1954, Abraham Maslow proposed that humans have two types of motives; the deficiency and the growth motives Deficiency or basic needs include the physical needs of the human body, safety and security, love and belonging, and esteem needs These four needs are often called coping behavior and are considered more short-term needs Growth or being needs are the self-actualization needs including those needs for satisfaction and happiness in the long term Maslow’s needs hierarchy is used today as

a motivational tool (Sadri & Bowen, 2011) The theory is that all humans have certain needs and when these needs are not being met it will motivate them to get those needs met

Additionally, Maslow believed that some needs must be met before others can be used

as motivating factors For example, if an individual does not feel secure and safe then

he is motivated to find safety and security This individual is locked into this level of the needs pyramid As the safety and security needs are met, the individual moves up

to the next level, the belongingness needs They will work to satisfy their needs for love, belonging, or companionship Maslow believed that humans are deficiency needs

is the esteem level Maslow contended that individuals have a need for the respect of others, the need for status, fame, glory, recognition, attention, reputation, appreciation, dignity, even dominance (Boeree, 2006) Additionally, Maslow believed that there is a

higher need beyond those mentioned above which is self-respect or self-esteem This self-esteem need includes our feeling of confidence and competence

Beyond the four deficiency needs is the growth need for self-actualization Maslow’s theory is the peak of human achievement is self-actualization Self-actualization is simply“being everything you can be” Modern observers, actually say we continue with selfactualization and constantly try to better ourselves The self-actualization level is not a permanent state (Boeree, 2006) Maslow emphasized that self-actualization is a healthy individual’s prime motivation In order to get to the self-actualization level, an individual must have all of the other lower or deficiency needs satisfactorily met If you do not have your lower level needs met, you cannot devote your time and effort to meeting your full potential Maslow determined several driving

Figure 1: Maslow's hierarchy of needs, represented as a pyramid with the more basic needs at the bottom (Source: www.honolulu.hawaii.edu/intranet/committees/FacDevCom/guidebk/teachtip/maslow.htm)

needs from self-actualized people and found that they needed the following in their lives to continue being a self-actualized person (Boeree, 2006):

 Truth, rather than dishonesty

 Goodness, rather than evil

 Beauty, not ugliness or vulgarity

 Unity, wholeness, and transcendence of opposites, not arbitrariness or forced choices

 Aliveness, not deadness or the mechanization of life

 Uniqueness, not bland uniformity

 Perfection and necessity, not sloppiness, inconsistency, or accident

 Completion, rather than incompleteness

 Justice and order, not injustice and lawlessness

 Simplicity, not unnecessary complexity

 Richness, not environmental impoverishment

 Effortlessness, not strain

 Playfulness, not grim, humorless, drudgery

 Self-sufficiency, not dependency

 Meaningfulness, rather than senselessness

Some of the characteristics of the self-actualizer were found to be morality, autonomy, creativity, spontaneity, problem solving, lack of prejudice, and peak experiences Peak

experiences are described as things such as childbirth, winning sporting events, being recognized publically, or other life- defining events The self-actualizer knows that this life is making a difference

Previous research

Tang, T L.; Ibrahim, A H.; West, W B (2002) “Effects of war-related stress on the

satisfaction of human needs: The United States and the Middle East” International

Journal of Management Theory and Practices 3 (1): 35-53

Cianci, R.; et al (2003) “Maslow's hierarchy of needs: Does it apply in a collectivist

culture” Journal of Applied Management and Entrepreneurship 8 (2): 143-161

Kenrick, D T.; Griskevicius, V.; Neuberg, S L.; Schaller, M (2010) “Renovating the

pyramid of needs: Contemporary extensions built upon ancient foundations”

Perspectives on Psychological Science 5 (3): 157-163

Self-argument

Personally, I think Maslow’s theory is affecting to Job Satisfaction, Organizational

Commitment because it deeply researched into the nature of human beings in all

aspects of psychology and physiology.To motivate and retain employees, leaders must take into account the position or level of their subordinates in the pyramid Job satisfaction is how one feels about her job Job satisfaction increases as basic needs are met Increasing job satisfaction also increases organizational commitment (O'Leary, 2004), both of which are important to retaining skilled employees

Alderfer’s ERG theory

Contents

In general this theory similar to the theory of Maslow's needs hierarchy, but there are some differences as follows: first, the number needs to be reduced to three instead of five, which is the existing needs (Existence need), solidarity needs(relatedness need) and development needs (growth need); Second, difference with Maslow, Alderfer said that there may be more needs to appear at the same time(Maslow said that only one needs to appear at a certain time); Third, compensation factor between of need demand, one need does not meet will be compensate by the other needs (Kreitner & Kinicki, 2007) For example: an employee does not meet the needs of income but may

be compensated by a good working environment, suitable job, training opportunities are promoted, etc.) while Maslow did not recognize it

Previous research

Figure 2: Alderfer’s ERG theory (Source: www.springerplus.com/content/2/1/246/figure/F2?highres=y)

Previous research

C.A Arnolds and C Boshoff (2002) “Compensation, esteem valence and job

performance: an empirical assessment of Alderfer's ERG theory” The International

Journal of Human Resource Management

Self-argument

Personally, I think Alderfer's ERG theory has greater scientific support than Maslow’s theory but both theories remind managers of the types of reinforces or rewards that can

be used to motivate people

Adams’s Equity Theory

Contents

J Stacey Adams said that employees tend to evaluate fairness by comparing their efforts compared to what they receive as well as compare their rate with the rate of his/her colleagues in the company If the result of the comparison is an equal, they will continue efforts and keep their work performance If remuneration received exceeded their expectations, they will tend to increase their effort at work, whereas if the remuneration they receive less than their contributions, they will tend to reduce less effort to find other solutions or absent during working hours or quit their job (Pattanayak, 2005)

Previous research

Michael R Carrell and John E Dittrich (1977) “Equity Theory: The Recent

Literature, Methodological Considerations, and New Directions” Academy of

Management Journal

John W Huppertz, Sidney J Arenson and Richard H Evans (1978) “An Application

of Equity Theory to Buyer-Seller Exchange Situations” Journal of Marketing

Research Vol 15, No 2 (May, 1978), pp 250-260

Self-argument

Personally, I think this theory can also be considered in this research Equity Theory will have a strongly impact to Distributive, Procedural, and Interactive Justice, because it creates clear perception of justice in organizations Next, it affects Organizational Commitment Staff could not have been satisfied if they realize that they have been treated unfairly from the issues of wages, opportunities and training support from superiors

Hackman and Oldham's Job Characteristics

Contents

Hackman and Oldham (1974) have developed models to determine how to design jobs

so that employees can be motivated to work from their inside as well as job satisfaction and create the best performance To build the design of work like that, according to two researchers, work have to use many different skills, the employee must understand the business from start to finish and work have a certain importance Hackman and Oldham’s job characteristics theory proposes that high motivation is related to experiencing three psychological states whilst working:

 Meaningfulness of work: that labor has meaning to you, something that you can relate to, and does not occur just as a set of movements to be repeated

 Responsibility: that you have been given the opportunity to be a success or failure at your job because sufficient freedom of action has given you

 Knowledge of outcomes: this is important for two reasons Firstly to provide the person knowledge on how successful of their work, this enables them to learn from mistakes The second is to connect them emotionally to the customer

of their outputs, thus giving further purpose to the work

These three above will bring meaningful of work for employees as well as bring excitement to them Next, employees have a right to execute the job It makes employee have responsible of result of their job Finally, there are feedback from their superior related their job: recognize their achievements as well as comments and criticism to help them work better in the future It helps employees know the results of their work

Figure 3: Hackman and Oldham's Job Characteristics

(Source: edweb.sdsu.edu/people/arossett/pie/Interventions/jobdesign_1.htm)

Previous research

Richard Saavedra and Seog K Kwun (Mar., 2000) “Affective States in Job

Characteristics Theory” Journal of Organizational Behavior

Oldham, G R., & Hackman, J R (2010) “Not what it was and not what it will be:

The future of job design research” Journal of Organizational Behavior, 463-479

Ronald F Piccolo and Jason A Colquitt (2004) “Transformational Leadership and

Job Behaviors: The Mediating Role of Core Job Characteristics” Academy of

Management Journal

Self-argument

Personally, I think Hackman and Oldham's Job Characteristics have shown that meaning experience is the extent to which employees feels their work is important Core values, skills, task Responsibilities experience is the level of personal responsibility was a result of their work Accountability will lead to a sense of autonomy Hackman and Oldham's Job Characteristics model has also shown that when a manager works with employees, he needs to see that employees claim their work should be designed in a scientific manner It will brings job satisfaction and organizational commitment

Meyer and Allen’s three-component model

Organizational commitment is an employee’s psychological attachment to the organization Meyer and Allen noted that a common theme among the many definitions of organizational commitment was “the view that commitment is a psychological state that (a) characterizes the employee’s relationaship with the