Factors influence to behavior of taking charge at URC vietnam

Hopefully, the result of this research will be useful for URC Management in understanding the recent degree of taking charge behavior of the employees and this can be one of the referenc

MASTER OF BUSINESS ADMINISTRATION

INTERNATIONAL PROGRAM



RESEARCH PROJECT

FACTORS INFLUENCE TO BEHAVIOR

OF “TAKING CHARGE” AT URC

-ADVISOR’S SIGNATURE

(July 2016)

To complete this thesis, I have received many of support from teachers, lecturer and my classmates and URC Vietnam to:

First I would like to express my deep gratitude all the teachers of MBA International program OUM University transferring the base knowledge and specially my lecturer Nguyen The Khai (DBA) who expertly guide for me to complete this research

Second I would like to extend my sincerely thanks to the Board of Management and Human Resource Manager of URC Vietnam for their suggestions and kind supports related to my research

And, I also specially thank to my family, friends, colleagues as well as who direct or indirect have assisted and guide me to finish this research

Once again, thank you very much all

Nguyen Thi Thai Nguyen

Taking charge at work: Extrarole efforts to initiate

3.1 Data collection 22

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

Maslow’s hierarchy needs 17 Research model “Factors influence to taking charge” 20

Regression coefficients of 4 variables 35

FIGURE & TABLE

Hopefully, the result of this research will be useful for URC Management in understanding the recent degree of taking charge behavior of the employees and this can be one of the reference sources to help for building human resource management strategy and improve working productivity of the employee: proactive, innovative, initiatives for better organizational changes in the context of the such market competition today

Key words: Take charge at work, empowerment of work, role innovation, organization fit, job satisfaction

person-T

1

INTRODUCTION

1.1 About URC

Universal Robina Corporation (URC)

URC is among the Philippines’ pioneers in the

industry, having been in operations since 1954

when Mr John Gokongwei, Jr established

Universal Corn Products, Inc., a cornstarch

manufacturing plant in Pasig

URC is engaged in a wide variety of

businesses Its core branded consumer foods

group includes manufacturing and distribution

of snackfoods, beverages and grocery

products In the Philippines, the Company is

also into food ingredients (flour milling, sugar

milling & refining) and allied agro-industrial

products (hog farming, animal feed milling, glucose, soya products, and veterinary compounds) URC has also invested in ancillary segments mainly focusing into renewable sources of energy to further add value and process by-products to produce biogas, el grade bio-ethanol and power (biomass cogeneration)

In the Philippines, URC is the market leader in salty snacks, candies, chocolates,

cookies and pretzels, the largest player in the RTD tea market, and a respectable 2nd player in noodles and coffee

The Company has started building its Jack ‘n Jill and C2 mega-brands across the ASEAN

URC have market leading position in both biscuits and wafers in Thailand, the number one RTD tea brand in Vietnam, and emerging strong challenger positions in Indonesia for potato chips and confectioneries

 1970s: Acquisition and expansion: entered the commodities business – continental milling Corporation, for flour milling and production

 1980s: Saw the entry of URC into the plastic business, through URC Packaging

 1990s: Acquisition of three sugar mills and refineries

 2005: Completed the structure of the group of Universal Robina Corporation umbrella, divided into 3 focused groups:

o The Branded Consumer Food Group, comprise of BCFG Domestic (including packaging) and International

o The Agro-Industrial group, comprised of Universal Corn Products, Robina Farms, and Robichem

o The Commodities group, with the Sugar and Flour divisions

Mission, Vision and core Values:

Values:

Passion to Win: We build organizational capability by being entrepreneurial and proactive, driven by a sense of urgency and purpose We continuously challenge ourselves to deliver world-class brands and consistently rally our people to strive for excellence

Dynamism: We cultivate a culture of innovation and productive working relationships

We continuously find ways to improve organizational and people capabilities

to meet constantly challenging consumer needs

Integrity: We are guided by transparency, ethics, and fairness We build the business with honor and are committed to good governance Our processes and products meet the highest standards We are credible in our dealings with both internal and external stakeholders

Courage: We seize opportunities in building long-term, sustainable businesses We make tough people and business decisions to ensure competitive advantage

URC Branches/Affiliates:

URC Vietnam

URC Vietnam manufactures Biscuits, Snacks and Candies for the Vietnamese consumers This was also the very first URC subsidiary outside the Philippines to manufacture and successfully market C2 Green Tea, which remains to be the

number one brand in the RTD Tea category in this country Recently, our energy brand offering “Rong-Do” has also gained significant traction and now remains a strong challenger in this category

URC Vietnam Co Ldt was established since 2003 is 100% FDI Company located

in 42 VSIP Tu Do St, Vietnam Singapore Industrial Park, Thuan An Town, Binh Duong Province The business is focusing on Food and Beverage After 13-year

operating in Vietnam, URC becomes top 10 FMCG in Vietnam (Based on Nielsen

data 2016) With 4 modern manufactures which are in international standard

operating in Binh Duong (2 manufactures), Hanoi (1 manufacture) and Quang Ngai (1 manufacture), URC Vietnam have been bringing to Vietnamese popular products

in Foods and Beverages such as: C2 green tea, Rong Do Energy Drink, Cream-O cookies, Magic Crackers, Dynamite candy, Chikki and Puffcorn snacks…

URC Vietnam organization chart:

Trade Marketing

Admin

Factory VSIP 1 Supply Chain

Factory VSIP 2

Factory Hanoi

Factory Quang Ngai

Product portfolio:

URC Product portfolio Beverage

Foods

+ Beverage: Since the brand C2 launched into Vietnam market, C2 made remarkable step in the battle of conquering consumers’ sentiment Thru the aggressive marketing strategy; recently, the brand became popular among Vietnamese people and be the leader in Ready-to-drink Tea category

Besides C2, the energy brand offering “Rong-Do” has also gained significant traction and now remains a strong challenger in this category

+ Biscuits: Per Nielsen reading 2016, URC Biscuit is within top 5 in Biscuit market

in which, Cream-O and Magic is leading in Cream-filled cookies and Cream-filled crackers segment And there are still room for the company to expand the business

in wafer and non-cream-filled segments which contributing biggest in Biscuits

+ Candy: URC is presenting in hard candy with center-filled

(Dynamite BigBang and Dynamite Engergy) and chewing candy

(Dynamite Chew) URC can explore in hard plain candy to build

the bigger business

+ Snack – young business in URC: Snack is still small but it show

potential when the market grow 2% Y15 ad URC snack growed at 20% the business

in Y15 driven by the new snack Puffcorn and

Chikki launched mid of Y14, the success

comes from highly acceptance from end users

due to new innovative and unique product

concepts

1.2 Research problem statement

Taking charge is a kind of extra-role behavior of employee to go beyond the boundaries of their jobs to bring about positive changes Behavior of taking charge is motivated to promote innovation and initiatives among the employees

to challenge the current organizational status in term of work policy, procedure, methods… to complete their jobs at a highest level Obviously, Taking Charge

is very important in any company, especially for the company have long history and established position in the market

As Bill Hewlett, Co-founder of Hewlett-Packard, says, "Men and women want

to do a good job, and if they are provided with the proper environment, they will do so." In short: give your employees what they need to do the best job they can with as much of their own initiative as possible, and your results and success as well as theirs will inevitably improve

URC Vietnam is belonging to the global corporation with long run time in the market and be in top 10 FMCG in Vietnam The company inherited the organizational quo from the corporate such as: Technology, rule, cultural, policy… This is both strength and weakness for the company, because in front

of fast changes of world, URC need to move forward thru productive changes more than keep the old thing forever Therefore, how to motivate and energize people to take charge is the concern of URC Management in general and Human Resource in specific

Based on those concerns, the research of “Factors effect to the behavior of Taking Charge at URC Vietnam” was chosen The results will help URC Management and HR know what and how factors impact to Take Charge, then develop the programs to improve the behavior of Taking Charge in the company.

1.3 Research objective

This research was conducted to:

 Discuss the influences of four factors Empowerment of Work, Role

Innovation, Person-Organization Fit and Job Satisfaction on the behavior of Taking Charge at URC Vietnam

 Introduce and test a model of relationship between the four factors to the Take Charge

 Propose conclusion and recommendation to improve influencing factors, since then promote behavior of Taking Charge for the company management

1.4 Research scope

This research target is for all white collar employees from staff to Management

at URC Vietnam in four branches and one office it included 600 people and not included blue collar workers

The survey was conducted in 1st Jan 2016

1.5 Significance of research

This research is to help Management of URC Vietnam understand current expectation of the employee about the working environment and the feeling of

their job satisfaction, and the degree of innovation in work as well as the fit of their personal values and organizational values; Since then the management can improve to create a good environment and develop the programs from recruitment stage for the better and productive changes

2

LITERATURE REVIEW

2.1 Definition of Constructs

Behavior of “Taking charge”

“Taking charge” was developed by Morrison and Phelps (1999) “Taking charge

is discretionary behavior intended to effect organizationally functional change”

It is extra role which employee willing to take action to challenge the current status to make the productive changes

Empowerment of work

Spreitzer (1995) gave out the job characteristic “empowerment of work” which describes the extent to which employees believe they are empowered in their jobs There are four cognitions reflecting an individual’s orientation to his or her work role: meaning, competence, self-determination, and impact

According Business dictionary, empowerment is based on the idea that giving employees skills, resources, authority, opportunity, motivation, as well holding them responsible and accountable for outcomes of their actions, will contribute

to their competence and satisfaction

Role innovation

Role innovation was developed by West (1987), askes employees to indicate the ways in which they are doing their job differently from the person(s) who did the job previously or from others doing this job in the organization

Person-Organization Fit

Person-Organization Fit was developed by Bretz and Judge (1994) 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

Job satisfaction

Job Satisfaction was studied by various scholars and gave out their own definitions; However, the two most common definitions describe job satisfaction as: “the pleasurable emotional state resulting from the appraisal of one’s job as achieving or facilitating the achievement of one’s job values and

“the extent to which people like (satisfaction) or dislike (dissatisfaction) their jobs

This measure, developed by Cammann, Fichman, Jerkin, and Klesh (1983) as part of the Michigan Organizational Assessment

2.2 Argument for the relationship among the constructs

Taking charge at work: Extrarole efforts to initiate workplace changes

Morrison and Phelps (1999) define Taking charge is discretionary behavior intended to effect organizationally functional change In the paper, they indicate

 The employees will be more to take charge when they perceived top management support so they will open suggestions and to employee-initiated

change and effort to bring about improvement because they may be more confident that taking charge will be effective and less concerned about potential costs

 Besides, employees will be more take charge to the extent that they had a high level of self-efficacy and an internalized sense of responsibility for bringing about change in their workplaces

Maslow’s theory

Abraham Harold Maslow (April 1, 1908 – June 8, 1970) was a psychologist best known for creating a theory of a hierarchy of needs moving from basic survival needs to ones of self-actualization These needs are:

 Physiological needs: basic physical needs necessary for staying alive

 Safety needs: Need for physical and emotional security

 Love and belonging needs: These include personal relationships and group membership Examples:

marriage, joining a fraternity

 Esteem needs: Both

self-esteem and feeling

appreciated by others

 Self-actualization needs:

Realizing one's full potential

Figure 1: Maslow’s hierarchy needs

ERG theory

 Clayton Alderfer proposed a modification of Maslow’s theory in an effort to simplify it and respond to criticisms of its lack of empirical verification His ERG theory identified three categories of needs:

 Existence needs The needs for physical well-being

 Relatedness needs The needs for satisfactory relationships with others

 Growth needs The needs that focus on the development of human potential

and the desire for personal growth and increased competence

Need hierarchy theory helps explain why organizations find ways to recognize employees, encourage their participation in decision making, and give them opportunities to make significant contributions to the organization and society

Maslow theory and ERG theory relates to Job Satisfaction and Role Innovation at work When people are full filled their needs they will give out efforts for Initiatives and innovation at work (Taking Charge)

The dynamics of proactivity at work by Grant and Ashford 2008

Proactive behavior was defined as anticipatory action that employees take to impact themselves and/or their environments (Parker et al.,2006)

In an increasingly global and ambiguous world of work, proactivity is perhaps more important than ever before as organizations shift from production economies to knowledge economies, they rely on employees to engage in proactive behavior in order to promote creativity, innovation, and change Followings are some factors increase proactivity:

 Accountability: Situational accountability refers to circumstances in which others expect employees to justify and explain their thoughts, emotions, and behaviors (Lerner & Tetlock, 1999; Tetlock, 1985)

 Ambiguity situation: when employees encounter situations of ambiguity, they are often more to display proactive behavior (e.g., Griffin et al., 2007) Researchers have linked various sources of situational ambiguity – including role ambiguity, environmental uncertainty, career transitions, and organizational change

 Autonomy: situational autonomy increases proactive behavior

 Reward and punishment reinforcements

This theory relates to Empowerment of Work because it proposes that when people are given power at work, autonomy, encouraging environment, they will be more proactive to give thought ideas for positive organizational changes

2.3 Research model

This model study about relationship between factors effect to behavior of

“Taking charge” at URC Vietnam Behavior of “Taking charge” show in the angles as following:

 The willing of employees to apply improved procedure, new method,

technology to improve their job

 The extend of employees to challenge the organization rule and policy for effective changes

Take Charge (TC)

Empowerment

of work (EOW)

Role Innovation (RI)

Organization Fit (POF)

Person-Job satisfaction (JS)

DV

 The employees try to correct faulty procedure or practices

Figure 2: Research model “Factors influence to taking charge”

2.4 Hypotheses

This research is to indicate relationship between the 4 factors: Empowerment of Work, Role Innovation, Person-Organization Fit and Job satisfaction on the behavior of “Taking Charge” (Dependent variable) at URC Vietnam Based on the above model, the hypotheses are shown as following:

H1: Empowerment of Work (EOW) positively effects to Take Charge (TC) H2: Role Innovation (RI) positively effects to Take Charge (TC)

H3: Person-Organization Fit (POF) positively effects to Take Charge (TC)

H4: Job Satisfaction (JS) positively effects to Take Charge (TC)

Charge

+

Role Innovation (RI) H2 Role Innovation positively

effects to Take Charge +

Person-Organization

Person-Organization Fit positively effects to Take

Charge

+

Job Satisfaction (JS) H4 Job Satisfaction positively

effects to Take Charge +

Table 1: proposed hypotheses