Research about organizational commitment at PV engineering

This research project focuses on examining and approaching whether items in terms of Empowerment at Work Scale, Perceived Organizational Support, Perceived Person – Organization fit and

MASTER OF BUSINESS ADMINISTRATION

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ADVISOR’S SIGNATURE

NGUYEN THE KHAI (DBA)

TABLE OF CONTENTS 1

LIST OF FIGURES 2

LIST OF TABLES 3

ABBREVIATIONS 4

ABSTRACT 5

CHAPTER I - INTRODUCTION 6

1.1 Company Introduction 6

1.2 Research problem statement 12

1.3 Research Objectives 13

1.4 Research scope 13

1.5 Significance of research 13

CHAPTER 2 LITERATURE REVIEW 15

2.1 Organizational Commitment 15

2.2 Perceived Organizational Support 17

2.3 Work – Related expectancies 18

2.4 Empowerment at Work Scale 20

2.5 Perceived Person – Organization Fit 21

CHAPTER 3: RESEACH MODEL AND HYPOTHESES 24

3.1 Research Model 24

3.1.1 Dependent Variables: 24

3.1.2 Independent Variables: 24

3.1.3 Constructs 24

3.2 Research Hypotheses 25

3.3 Instruments 27

3.4 Research Participants 31

3.5 Procedure for Data Collection and Analyze 32

CHAPTER IV: ANALYSIS AND RESULTS 34

Cronbach’s Alpha of constructs 34

4.2 Reliability Analysis 36

4.3 Descriptive Analysis 37

4.4 Correlation of all variables statistics 37

4.5 Hypotheses Testing 39

CHAPTER V: CONCLUSION 43

5.1 Summary and Discussion: 43

5.2 Management Implications: 43

5.3 Limitations and Further Research Recommendation: 45

REFERENCES 47

APPENDIX 1 49

APPENDIX 2: PRESENTATION 54

LIST OF FIGURES

Figure 1: PVE management organization……….11 Figure 2: Shareholders Structure ……… 12 Figure 3: Proposed Research Model of Organizational Commitment in PVE ……27

LIST OF TABLES

Table 1: Cronbach’s Alpha Internal consistencty……….34

Table 2: Cronbach’s Alpha of Organizational Commitment……… …34

Table 3: Cronbach's Alpha of Perceived organizational Support……… ……… 35

Table 4: Cronbach's Alpha of Work-Related Expectancies……… …… 35

Table 5: Cronbach's Alpha of Empowerment at Work Scale……… …… 36

Table 6: Cronbach's Alpha of Perceived Person-Organization Fit……… 36

Table 7: Summary of Cronbach's Alpha of the variables……… … 37

Table 8: Descriptive statistics……… ………38

Table 9: Summary of correlations of all variables……… ……….39

Table 10: Model summary of H1……… ……… 40

Table 11: Coefficients of H1……… ……….….40

Table 12: Model summary of H2 ……… 41

Table 13: Coefficients of H2………… ……… 41

Table 14: Model Summary of H3… ……… 42

Table 15: Coefficients of H3…… ……….…….42

Table 16: Model Summary of H4…… ….……… 43

Table 17: Coefficients of H4………… ……… 44

ABBREVIATIONS

SPSS Statistical Packages for the Social Science

POS Perceived Organizational Support

POF Perceived Person – Organization Fit

ABSTRACT

In the perspective of company culture in Vietnam, employee’s turnover reflects the completeness of the company’s policies, the culture of management, and the tendency of success or failure of organization’s overall business strategy, especially

in big company with a large scale of employees like PV Engineering company (PVE)

PVE recent reports indicate that employees in this group have tendency to leave the company after specific time in service There could be several significant reasons affecting organizational commitment of PVE employees This research project focuses on examining and approaching whether items in terms of Empowerment at Work Scale, Perceived Organizational Support, Perceived Person – Organization fit and Work-Related Expectancies will have any influence on the organizational commitment of PVE employees

Questionnaires were delivered to 340 employees in different background of educational degrees, years of service, gender, years of age as well as work positions All of these employees mostly worked in Head quarter of PVE in Ho Chi Minh city

263 samples were returned and put into further researched and analyzed practices The reliability analysis, descriptive analysis, and hypothesis testing were statically measured in the study with the support of SPSS software

Results showed that in the four participating independent structure with structural test depends, then all four structural support for the dependent variable The staff felt when Evoking organizations and are empowered in functional tasks, organized

to support and meet the expectations related to work longer, the commitment displayed staff their organizations

• Day 10/04/1998: PVICCC, is a member of the Petroleum Corporation of Vietnam (PVN)

• On 02/27/2002: Renamed transaction PVICCC Company Investment Consulting

& Design Oil and Gas and the abbreviated name of PetroVietnam Engineering Company (PV Engineering)

• On 03/26/2004: Transform into JSC Investment Consulting and Design PetroVietnam (PV ENGINEERING JSC) with a total charter capital of VND25 billion and to date raised 11/08/2009 80 billion

For over 10 years, the leadership and all employees PV Engineering not strive, strive to complete projects in the field of consulting, design and project management; construction and installation and inspection surveys, a significant contribution to the development of Vietnam Oil and Gas Group

+ Activities consulting, design and project management: a series of key projects such as DK sector: Project development planning Binh Thuan gas industry; Project planning gas supply system Southern; Pipeline project Phu My - Ho Chi Minh City; Project pipeline PM 3 - Ca Mau; Combination Gas - Electricity Ca Mau; Offshore Pipelines Dawn - White Tiger, etc Currently, the Company is implementing the feasibility study report and development projects: Project pipeline Black Lion / Golden Lion - Dawn; Project Development Planning of Vietnam Oil and Gas sector for 2006-2015, with a vision to 2025; gaslift system design for drilling rigs;

engaged in design works in Nhon Trach 2 power plant, Dinh Vu polyester plant, factory Bio-ethanol fuel

+ Construction and installation activities: participation in construction of oil and gas projects, such as oil refinery Dung Quat Oil Refinery No 1; Polypropylene production plant - Dung Quat; Gas pipeline and the PM3-Ca Mau station; CNG Phu

My plant; Liquefied petroleum gas plant in Dong Nai; Gas processing plant Dinh

Co GPP; LPG depots Hai Phong; Hanoi LPG filling stations; Dinh compressor stations; Nam Con Son Condensate Project; Phu My Fertilizer Plant; In addition, the company also participated in the construction and maintenance of oil and gas as fixed rig repair Vietsovpetro, repairing corrosion-resistant pneumatic, fuel depots, and so the pressure equipment

+ Conducting sá and verification: Besides, PV Engineering is also involved in other activities such as surveying and engineering services, nondestructive testing, quality testing project: Project Ring Road 2 - south of HCMC, gas pipeline project B52-

OMon, refinery 3 - Long Son, East-West gas pipeline South

PVE VISION TO 2025

Becoming one of the leading companies in Vietnam in the field of investment consulting, design and provide full service or partial EPC projects in oil and gas sector

MISSION PVE

Provide products and services of high quality with competitive prices and friendly environment to meet the needs, desires of the customer, which in turn brings higher profit margins, stable for the neck east and created environmental and professional challenges for staff

CORE VALUES

Sharing knowledge

+ We always share knowledge and see it as the property of the company to come up with the ideas and the best solution for the job

+ Ethics we are honest, forthright, respect for the law, integrity with customers, protect the environment, justice and equality in dealing with employees, provide complete and accurate information to shareholders

+ Quality We always strive to provide the best products and services, to ensure the progress, quality, efficiency, safety, high reliability, continuous training and development of human resources, increase investment in technical equipment and technology, research and application of effective management methods and modern

PV Engineering has successfully completed many major projects with Petro Vietnam and other international partners We continue to develop more consultancy services in such areas as: Offshore; Gas Pipeline; Gas Processing Plant; Petrochemical Plant (such as polypropylene, fertilizer plants); Gas power, coal power; wind power and hydropower plants; Bio-Ethanol plants; and in industrial and civil projects

We provide expert services in: FS; FEED, detailed engineering; General cost estimation; Procurement support; Survey and inspection; Project management consultancy

PV Engineering at a glance

 Head office 10th Floor, PVGas Tower, 673 Nguyen Huu Tho, Nha Be,

HCMC, Vietnam

 Date of

establishment

April, 1998

 Scope of Work - Engineering Consultancy

- EPC/ Construction/ Installation

- Project Management Consultancy -Survey&Inspection

Organization Structure

Figure 1: PVE Organization structure

Share capital/ Shareholders’ structure

PetroVietnam is founding shareholder and also the main shareholder of the Group

as at 31 May 2016, currently hold 7,250,000 shares, equivalent to 29% of total shares in circulation of the Group,the average investors are some domestic and foreign organizations, the individuals just take a small part of the investment

SHARE

Number of outstanding common shares in

circulation

25,000,000

SHAREHOLDER'S STRUCTURE (Updated list of shareholder 31/05/2016)

Figure 2: Shareholders structure

There is no separation between management and ownership of the company, the Board of Directors, President and CEO, the Supervisory Board and the shareholders have closely coordinated in order for the corporation to achieve operational efficiency, complying with the Regulations of the Corporation and State law The Board of Directors monitored and gave direction to the Board of Management for the operation of the Corporation in order to fulfill the business plan assigned by AGM PV Engineering’s Board of Directors was always considered a united assembly with valuable knowledge, expertise with the management experience that

is fair, objective and motivated in expanding the corporation The Board of Directors has successfully determined the management strategy for the corporation’s business strategy

All resolutions and decisions from the Board of Directors are made with a firm and unified decision from all or most of the members of the Board on the basis of shareholders’ interest and the sustainable development of the Corporation

1.2 Research problem statement

Currently, in the context of the overall impact of oil prices plummeted, businesses

in the fields of design consultancy specialized in oil and gas encountered many difficulties and PVE is not an exception, there are too many changes but not any research looking for the organizational commitment of employees at these companies

PVE is a positive development and human resource development, especially in choosing the right person for the company However, recruiting the right people is not enough and they are perplexed to know how to keep talented employees, retain talent, especially how to retain their key staff have played a important role in the company With the shortage of human resources at present, retaining good people is becoming the major issue of the PVE

PVE has focused on its HRM by providing a lot of activities to strengthen its human resource training and development such as coordinating with universities in HCM city and Hanoi city to recruit potential candidates, conducting variety of internal training programs Besides, PVE also provide many HR management policies to retain and develop its workforce such as salary and reward systems

However, as stated in its annual human resource reports, the number of employees quit jobs gets increasing year over year That may lead the company to critical impact of leaking its skilled and well trained workforce Not only that, it will take huge invisible cost for the company if these well trained and qualified employees run out of the company and come to work for the competitors

With the above real situation and also for the long term strategic human resource management, it is critical to examine and analyze the diversified relationships of organizational commitment among PVE workforce

1.3 Research Objectives

The purpose of this research is to examine and approach whether items in terms of Perceived Organizational Supoort, Work – Related expectancies, Empowerment at Work Scale, and Perceived Person – Organization Fit will have any influence on the organizational commitment of PVE employees

It is believed that the findings of the study will provide an overview of how to manage internal items affect the turnover rate of the PVE Then, the management team can result PVE of the project is a reference to the adjustment and development

of several solutions that can fill the gaps in human resource management systems and maintain talent her to carry out her vision is to become a leading company in Vietnam in the field of design of oil and gas projects

1.4 Research scope

The scope of research is for the entire employees at PV Engineering, includes: leadership team, employees and direct supervisors in different departments include commercial & Marketing, Business Development, Finance accounting and Information Technology, and design

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

The survey scope is within the territory of Vietnam, which includes 340 employees

of PVE

Contents of this research are only including factors influencing to organizational commitment at PV Engineering; it does not have intention of re-structuring, changing and replacing the employees

1.5 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

CHAPTER 2 LITERATURE REVIEW

2.1 Organizational Commitment

According to the business dictionary, organizational commitment is defined as the strength of feeling of responsibility that an employee has towards to mission of the organization

In organizational behavior and industrial and organizational psychology, organizational commitment is the individual’s psychological attachment to the organization Many studies was initially aimed at finding ways to improve how employees feel about their work and helping them become more committed to the organization Organizational commitment predicts work variables such as job performance, turnover and organizational citizenship behavior1

Alot of scientists have developed various definitions of organizational commitment, and there are numerous scales to measure them Meyer and Allen's model of commitment is an exemplary of this work

According to Meyer and Allen's (1991) three-component model of commitment was created to argue that commitment has three different components that correspond with different psychological states Meyer and Allen created this model for two reasons: "aid in the interpretation of existing research" and "to serve

as a framework for future research” Their research was based mainly around previous researches of organizational commitment Meyer and Allen’s research indicated that there are three "mind sets" which can characterize an employee's commitment to the organization:

Firstly, Affective Commitment is defined as the employee's positive emotional attachment to the organization Meyer and Allen pegged Affective Commitment as

1 Source: https://en.wikipedia.org/wiki/Organizational_commitment

the “desire” component of organizational commitment An employee who is affectively committed strongly identifies with the goals of the organization and desires to remain a part of the organization because he/she want to do so (Cohen, 1993) This commitment can be influenced by many different demographic characteristics: age, sex, tenure, and education but these influences are neither strong nor consistent The problem with these characteristics is that while they can

be seen, they cannot be clearly defined Meyer and Allen gave this example that

“positive relationships between tenure and commitment maybe due to tenure-related differences in job status and quality” In developing this concept, Meyer and Allen drew largely on Mowday, Porter, and Steers's (2006) concept of commitment, which in turn drew on earlier work by Kanter (1968)

Secondly, Continuance Commitment is the “need” component or the gains

verses losses of working in an organization “Side bets,” or investments, are the gains and losses that may occur should an employee stay or leave an organization

An employee may commit to the organization because he/she perceives a high cost

of losing organizational membership (cf Becker's 1960 "side bet theory" Things like economic costs (such as pension accruals) and social costs (friendship ties with co-workers) would be costs of losing organizational membership But an individual doesn’t see the positive costs as enough to stay with an organization he/she must also take into account the availability of alternatives (such as another organization), disrupt personal relationships, and other “side bets” that would be incurred from

leaving his/her organization

Finally, Normative Commitment reflects a feeling of obligation to continue

employment Employees with a high level of normative commitment feel that they ought to remain with the organization (Meyer & Allen, 1997) The feeling may derive from an agreement on an individual before and after joining an organization

For example, the organization may have invested resources in training an employee who then feels a 'moral' obligation to put forth effort on the job and stay with the organization to 'repay the debt.' It may also reflect an internalized norm, developed before the person joins the organization through family or other socialization processes, that one should be loyal to one's organization The employee stays with the organization because he/she "ought to" But generally if an individual invest a

great agreement, he/she will receive “advanced rewards.” Normative commitment is

higher in organizations that value loyalty and systematically communicate the fact

to employees with rewards, incentives and other strategies Normative commitment

in employees is also high where employees regularly see visible examples of the employer being committed to employee well-being An employee with greater organizational commitment has a greater chance of contributing to organizational success and will also experience higher levels of job satisfaction High levels of job satisfaction, in turn, reduces employee turnover and increases the organization’s ability to recruit and retain talent

2.2 Perceived Organizational Support

It was developed by Eisenberger et al (1986), describes employee perception about extent to which organization is willing to reward greater efforts by the employee because the organization values the employee’s contribution and his or her well being It includes 8 items

Research on Perceived Organizational Support began with the observation that managers' concern with their employees' commitment to the organization is positively correlated with employees' focus on the organization's commitment to them For employees, organizations serve as important sources of social emotional resources like respect and care, as well as tangible benefits like wages and medical benefits

 Being regarded highly by the organization helps to meet employees' needs for approval, esteem and affiliation

 Positive evaluation by the organization also provides an indication that increased effort will be noted and rewarded

 Employees, therefore, take an active interest in the regard with which they are held by their employer

Perceived Organizational Support can also be used to offer an explanation for

organizational cynicism Organizational cynicism is related to job satisfaction; it is

an attitude toward an organization reflecting one's beliefs about his or her experience as part of the organization Just as Perceived Organizational Support explains employees’ feelings of value, meaning, identity, etc., it explains employees' feelings of discouragement and distance from their organization Psychologist James Dean studied employees and found that the biggest cause of cynicism was change that was perceived to be out of the employee's control Eisenberger and Rhoades found that changes made within the organization were less supported by employees when the changes were perceived to be out of their control

2.3 Work – Related expectancies

Employees believe that higher levels of job performance will be rewarded and employee expectancies about the relationship of better performance with increased pay, promotion, and job security It also assesses employee expectancies that better performance will lead to increased influence, supervisory approval, and recognition (Eisenberger, Fasolo, and Davis-LaMastro.,1990)

There are two factors for work-related expectancies One dimension captures expectancies about pay and promotion rewards The other dimension describes expectancies about approval and recognition The two factors were consistent

across samples of hourly workers and managers Expectancies for pay/promotion rewards and approval/recognizational support, job satisfaction, participation in decisions, and job involvement (Eisenberger et al.,1990; Smilth & Brannick, 1990) Individuals high in the first three desires, referred to as “motivator” desires, were establish to favor a pay for performance system more than individuals low in these needs (Bajpai & Srivastava, 2002)

Fair upgrading policies and practice provide chances for personal development, more tasks and increased social condition When a person get fair upgrading which is usually his true evaluation, he gets a type of acknowledgment and hence job satisfaction It amplifies worker perception to the excellence of their job and improves both their job satisfaction and organizational commitment (Luthans, 2005:212)

The workers who value opportunity for evolution display a high degree of job participation in the wishes of solicit such compensation Naturally, if workers do not perceive development chances materialized, this outcome will be lost Even though condemn for various causes, the hierarchical and insular kind of country civil service systems do give for transparent and expected inner progress (Manzoor

et al., 2011)

Adequate salary structure is linked with job satisfaction (Bajpai & Srivastava, 2002; Marginson, 2003) The characteristic of education depends on the incentive for teaching performance determined by the academia, which, sequentially depends

on the marginal dollars of university income produce from education excellence (Marginson, 2003)

Worker’s reward refers to all forms of pay or rewards available to workforce and arising from the service (Dessler, 2005:410; Fattah, 2010) Money or other monetary incentive in the classic performance exemplar is based broadly on the

abstract propositions of reinforcement theory Reinforcement theory concentrates

on the affiliation between the target behavior (performance) and its consequences (pay) and is premised on the main beliefs and methods of organizational behavior adjustment Organizational behavior modification is a structure within which worker behaviors are recognized, measured, and analyze in terms of their functional consequences (existing reinforcements) and where an interference is developed using values of reinforcement (Perry et al., 2006) Compensation systems have impacts on the job satisfaction in both the public and private sector workers (Getahun et al., 2007)

2.4 Empowerment at Work Scale

This measure, developed by Spreitzer (1995), describes the extent to which employees believe they are empowered in their jobs Empowerment has been defined as the intrinsic motivation resulting from four cognitions reflecting an individual’s orientation to his or her work role The four cognitions are meaning, competence, self-determination, and impact (Spreitzer, 1995) Meaning involves a fit between the requirements of a work role and a person’s beliefs, values, and behaviors Competence refers to self-efficacy specific to work, a belief in one’s capability to perform work activities with skill, analogous to personal mastery Self-determination reflects autonomy over the initiation and continuation of work processes and making decisions about work methods, pace, and effort Impact is the degree to which a person can influence strategic, administrative, or operating outcomes at work

A factor analysis showed that the 10 items all loaded on four factors sponding to the dimensions of meaning, competence, self-determination, and impact (Gagne et al., 1997) In Spreitzer (1995), confirmatory factor analysis showed the items loaded on the appropriate subscales and found evidence for an

corre-underlying second-order factor of overall empowerment In Kraimer, Seibert, and Liden (1999), confirmatory factor analysis in two samples collected at different points in time showed that the four empowerment dimensions were distinct from one another

The meaning, competence, self-determination, and impact dimensions all correlated positively with job satisfaction (Spreitzer et al., 1997) In addition, all of the dimensions except meaning correlated negatively with strain and positively with self-reported job effectiveness Additional analysis in Spreitzer (1995) showed that self-esteem and information about an organization’s mission were both antecedents of empowerment In addition, both perceived managerial effectiveness and innovative behaviors were consequences of empowerment Using structural equation models, Kraimer et al (1999) found that job meaning fulness was related positively with meaning, job autonomy was related positively with self-determination, and task feedback related positively with competence and impact Both meaning and competence were related positively with career intentions and impact was related directly with organizational commitment

2.5 Perceived Person – Organization Fit

Consideration of person-organization fit is based on the perspective that aspects of both an individual employee and a job situation combine to influence the individual’s response to work (O'Reilly, Chatman, & Caldwell, 1991) That is, attitudes, behaviors, and other individual-level outcomes result not from the person

or environment separately, but rather from the relationship between the two The concept of fit is particularly prominent in studies of organizational stress where measures must recognize individual differences in the way situations are cognitively appraised (Edwards, 1996)

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

an organization satisfies individual needs, and/or when an individual has the abilities required to meet organizational demands (Kristof,1996)

Value congruence is an important form of fit because organizational values are fundamental components of organizational culture that affect employees’ attitudes and behaviors (Chatman, 1989) Person-organization fit can be operationalized as

an individual’s goal congruence with organizational leaders and peers (Vancouver

& Schmitt, 1991) An alternative approach defines fit as the match between individual preferences or needs and organizational systems and structures In general, a person will be more satisfied with work if the environment fulfills his or her needs Alternately, person-organization fit can be viewed as the match between the personality characteristics of an individual employee and organizational climate For example, an organization’s collectivist climate may be reflected by a team-based compensation system that may or may not meet an individual’s need for achievement (Kristof, 1996)

There is some debate as to whether person- organization fit should be operationalized as the compatibility of employees with specific jobs Edwards (1991) defined person-job fit as the agreement between the abilities of a person and the demands of a job or the desires of a person and the attributes of a job Although

it could be argued that jobs tend to offer a narrow view that may not be

representative of an organization, there is substantial evidence that employees may form their views about an organization based on their experiences in their job (Hackman & Oldham, 1980) Person-organization fit does not generally include person-vocation fit, which often reflects the similarity between an individual’s personality and that of a vocational environment, or person-group fit, which describes the compatibility between individuals and their work groups (Kristof, 1996)

The measure of perceived person – organization fit, developed by Bretz and Judge (1994), consists of two questionnaires containing 15 items each One questionnaire asks employees to indicate how accurately each statement describes their current organization The other questionnaire asks employees for their individual preferences for an organization to work in A fit score for each individual is calculated as the sum of the differences between the responses to the two questionnaires Thus, low scores indicate better person-organization fit The questions used to assess person-organization fit were developed to reflect fit between an employee’s knowledge, skills, and abilities and his or her job requirements; congruence between employee needs and organizational systems and structures; agreement between an employee’s value orientations and the perceived values orientation of the organization; and perceived match between an employee’s personality and the organization’s personality or image (Bretz & Judge, 1994)

CHAPTER 3: RESEACH MODEL AND HYPOTHESES

- Perceived Organizational Support (POS)

- Work – Related Expectancies (WR)

- Empowerment at Work Scale (EW)

- Perceived Person – Organization Fit (POF)

 Work – Related Expectancies (WR)

 Empowerment at Work Scale (EW)

 Perceived Person – Organization Fit (POF)

3.2 Research Hypotheses

The effect of expectancy based job cognitions on organizational citizenship behaviors and job satisfaction was observed to be influenced through beliefs (Kemery, Bedeian, & Zacur, 1996) The two job cognitions variables (intrinsic and extrinsic) were differentially related to organizational citizenship behaviors (Williams & Anderson, 1991) Discretionary behavior exhibited by an individual, not explicitly recognized by reward system, is reciprocated out of fair treatment offered by the organization (Organ, 1990) Although most have focused on how cognition may affect the extra-role behavior and job satisfaction (Brief & Roberson, 1989; Kemery

et al., 1996; Lee & Allen, 2002; Moorman, 1993; Organ & Konovsky, 1989), we explore job cognition in determining the employee attachment toward the organization Therefore, it is expected

- Hypotheses 1: Perceived Organizational Support is positive with

Organizational Commitment

Vroom (1964) stated that expectancy theory could explain the work-related variables of occupational preference, morale, need achievement, group cohesiveness, and motivation for effective performance Expectancy theory focuses on the proposition that work-related behavior can be predicted if the subjective probabilities of outcomes and the anticipated value of outcomes to individuals are

known The two central concepts to the theory are expectancy and valence

Porter and Lawler (1968) built upon the Vroom (1964) theory by including an

effort-reward probability, which refers to an individual's perceptions of whether

differential rewards are based on differential efforts This general expectation was

then divided into two subsidiary expectations: a performance-reward expectation and an effort-performance expectation There have been several recent studies relating the components of expectancy theory to the behavior of individuals in organizations (e.g., Albright & Mitchell, 1972; Lawler & Suttle, 1973; Dansereau, Cashman & Graen, 1974; Pritchard & Sanders, 1973; Sheridan, Slocum, & Richards, 1974; Pritchard & DeLeo, 1973; Jorgenson, Dunnette, & Pritchard, 1973; Reinharth & Wahba, 1975; Berger, Cummings, & Heneman, 1975; Turney, 1974), and these have shown the link between individual expectancies in work with organizational attachment Therefore, we believe:

- Hypotheses 2: Work – Related Expectancies is positive with

Organizational commitment

Spreitzer (1995) defines meaning to be when an individual perceives a connection between their job and their own personal standards (Thomas and Velthouse, 1990) Meaning occurs when one’s job tasks and one’s personal values, beliefs, and behaviors possess a degree of fit (Brief and Nord, 1990) Competence is

an individual’s belief that he/she possesses the ability to perform necessary activities Self-determination is defined as an individual’s perception of choice in the tasks that he/she undertakes (Deci et al., 1989) Impact is the amount of influence a person feels he/she has on certain work outcomes It is obviously that empowerment at work scale have close relation with organizational commitment

organization’s success When goals are clear and solid processes are in place, employees will explore their best performance towards their organizational mission and vision For that reason, we believe that

- Hypotheses 4: Perceived Person – Organization Fit is positive with

Organizational Commitment

Perceived Person- Organization fit is the congruence between the norms and values

of organizations and the values of its employees Among other factors, the extent of congruence between the values and norms of an employee, to that of the organization

he works for, may influence important work outcomes such as organizational commitment, job satisfaction and turnover intentions This study examines the moderating effect of person-organization fit on the relationships between affective organizational commitment, job satisfaction and turnover intentions

3.3 Instruments

The questionnaire total consists of 39 questions The questionnaire will be organized into 5 parts which are Organizational Commitment (part 1), Perceived Organizational Support (part 2), Work related Expectancies (part 3), Empowerment at Work scale (part 4), and Perceived Person – Organization Fit (Part 5) In each part, there will be detailed questions related to the topic of each part and organized in the easiest way for the respondents to give their feedback

- Firstly, in part 1- Organizational Commitment, there are 08 items being

used to measure the agreements or disagreements of PVE employees to their current organization Items were presented in Likert-type format with a scale

ranging from 1 through 5 where 1 = strongly disagree and 5 = strongly agree

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

normally expected in order to help this organization be

1 2 3 4 5