Factors influencing employees organizational citizenship behavior at ho chi minh city department of industry and trade

ABSTRACT This study examines a model of the relationship between person organization fit, public service motivation, job satisfaction and organizational citizenship behavior, which is an

OPEN UNIVERSITY MALAYSIA

RESEARCH PROJECT = 1100)

(BMBRS103)

ORGANIZATIONAL CITIZENSHIP BEHAVIOR]

AT HO CHI MINH CITY DEPARTMENT OF

INDUSTRY AND TRADE

Advisor’s assessment

Advisor’s signature

ACKNOWLEDEGEMENTS:

I would like to express my sincere gratitude to my supervisor Dr Nguyen The Khai for his guidance and insightful comments on this thesis I tried my best to finish this research base on the knowledge about the Business Research Method 1 had

I thankful to all of the participants in my survey who have willingly shared their precious time during the process of this research

Do Duc Quoc Cuong student

CONTENTS

L INTRODUCTION 00101577 = 01

1.1 About Ho Chi Minh City Department of Industry and Trade 01

1.2 Research problem stat€rnerIf .- . - 5+3 9231213 22 2 21 kg re 08

II 0i 1 08 1.4 Research SCOD€ c L k2“ HH HH HH HH 0111101110101 19 1e 09

V0 )):Ẽ.90601498:3.01402 01 10

2.1 Organ1zational Citizenship BehavIOor -cc + he 10

2.2 Person Organization FÏÌ( - s4 +12 HH Hi HH H011 11 1111101 10 2.3 Public Service MotiVation -cctcà kg HH HH 1.111 1111 16 11

“Ñ No co nh 13 2.5 PT€VIOUS SEUY, Sàn HH HH HH Hà HH 1181101112011 114 14

3 RESEARCH METHODOLOGY cành ke 17

3.1 Hypothesis .ẻ.c 17

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3.3 Data collection 0.0 18 C00)09)0)/67/ 0090.109) /.2 105411107 21

CAN) nh ốc 21 4.2 RESUIt .ốỐ 23 4.3 Hypothesis festing - ch n1 101221 1 116k kh He 25

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b9, ai on 29 5.2 Limitation and recomendation for future research . -c«-xs«e2 29

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Appendix Ì: SUFV€ L chọn 0117101011110 041 11717 n1 e 32 Appendix 2: Presenfation - +2 thê tt re 37

FIGURE AND TABLE

Figure 1: Propose research model of employee”s OCB at DOIT - 17 Table 1: Organizational citizenship behavior scale . -ccccserserrrrieee 19 Table 2: Person organization ft scaÌe - - ch HH 20 Table 3: Public service motivation SCaÌ «óc 2+ s2 492821812 1 1e, 20 Table 4: Job satisfaction fit sCaÌ€ -¿ - 5S SH H211 8214112 T1 de 21 Table 5: Cronbach’s alpha — internal consisfencY .-cecseseneieieiirre 22 Table 6: Cronbach°s Alpha of Organizational Citizenship Behavior 23 Table 7: Cronbachˆs Alpha of Person Organization FI( -c series 23 Table §: Cronbachˆs Alpha of Public Serlice Motivation «.cceeeeririee 23

Table 9: Cronbach’s Alpha of Job SatisfacHon ccceinhhhieeerrie 24

Table 10: Reliability Statistics 0.0 24 Table 11: Descriptive statistics 2.00 ccccseceeceeeecereerenteeeceeeesenessecsenesenessesenansneetans 24

IV 10-82160100) 25

Table 13: Model sumary of H1, H2, H2 . ccẶ Sằn‡ HH 26

Table 14: Coefficients of H1, H2, H2 - Ăn, 8 xe 26 Table 15: Model sumary oŸ H4 - ch nh HH2 0 re 27 Table 16: Coefficients of H4 Ác 2.2412 H101 1 kg 27 Table 17: Model sumary of HŠ . 5 chờ HH hưng 27

IV 10I-1.2060 56712 T20 27

ABSTRACT

This study examines a model of the relationship between person organization fit, public service motivation, job satisfaction and organizational citizenship behavior, which is an interesting issue in the context of Ho Chi Minh city Department of Industry and Trade following intergration, started in 2008

Improving public service quality has become a priority of the government to meet

the expectations of the public, as it is generally known that the quality of this service is relatively poor still Therefore, to provide better service, public servants

have to reconsider their basic function

We collected data from 170 employees working at Ho Chi Minh city Department of Industry and Trade We test our hypotheses using structural equation modeling

Our results show that person organization fit has a positive and significant effect on public service motivation and job satisfaction, which means that public servants having higher motivation in providing public service and are more likely to

be satisfied with their job Moreover, job satisfaction is found to be related to the organizational citizenship behavior Having higher job satisfaction leads public servants to perform organizational citizenship behavior in a better way Generally, our findings indicate that public servants who have a high motivation in providing public service and high satisfaction with their jobs may also strongly intend to show prosocial behaviors beyond the behaviors that are formally prescribed by the organization

Keywords: person organization fit; public service motivation; job

satisfaction; organizational citizenship behavior

1 INTRODUCTION 1.1 About Ho Chi Minh City Department of Industry and Trade (DOIT)

Department of Industry and Trade were established on the basis of the

Decision of Ho Chi Minh People’s Committee about the consolidation of Industry

Department and Trade Department into Department of Industry and Trade

Department of Industry and Trade is the specialized organization under the

authority of Ho Chi Minh People’s Committee, having the function of advising and

assisting Ho Chi Minh People’s Committee in performing the state management in industry and trade sector including engineering; metallurgy; electric energy; chemicals; industrial explosives; mining and mineral processing industry; consumer goods industry; food industry; and other processing industries; the circulation of goods; export; import; market management; competition management; trade promotion; monopoly control; anti-dumping; anti-subsidy; consumer protection; e- commerce; trade services; economic integration; industrial clusters management in the local area; industry promotion; and other public services under the jurisdiction

of Department of Industry and Trade

Rights and duties

1 Submitting to the city People’s Committee the annual, 5-year or long-term draft plans; the guidelines, policies, programs, measures and regulations on developing the industry and trade sector in the local area; the draft decisions and instructions issued under the authority of Ho Chi Minh People’s Committee in the industry and trade sector; the draft regulation on the functions, rights, duties and organization structure of Market Management Branch in accordance with the regulations of the Government, Ministry of Industry and Trade and other authorized state organizations; the draft regulations on the title standards for the heads and deputy heads of the agencies under the authority of Department of Industry and

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Trade; the draft regulations on the title standards for the leaders of Industry and Trade Divisions or Economic Divisions of the District People’s Committees

2 Submitting the draft decisions on the establishment, merger and

dissolution of the agencies under the authority of Industry and Trade Department prescribed by law; the draft decisions and instructions issued under the authority of Chairman of the city People’s Committee in industry and trade sector

3 Guiding and supervising the implementation of legal documents, policies, plannings, projects, programs and regulations on developing the industry and trade sector after they are approved; disseminating, guiding and educating the industry and trade related legislation

4 Assisting the city People’s Committee in the assessment of the basic

design of the investment projects on developing the industry and trade sector in the

local area; the assessment, issuance, amendment, supplementation, extension and

revocation of the licenses under the responsibility of Department of Industry and

Trade in accordance with the regulations of law and the assignment of city People’s

Committee

5 Industry and handicraft:

* Engineering and metallurgy: Implementing the planning, projects and policies on developing the engineering and metallurgy sector, engineering and electro-mechanical products, hi-tech products combining engineering technique,

automation and industrial electronics in the local area

* Electricity and energy: Implementing the projects and plans on developing the electric energy and the application of new energy and renewable energy in the local area; organizing training courses on legal knowledge of electricity activities and electricity use for the electricity organizations in the local area; training the

professional knowledge of the electricity safety for the technical staffs of rural

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electricity management organizations; implementing the electricity pricing plan in the local area after being approved by the competent authorities; coordinating with the competent state organizations in the specialized inspection according to the law

* Chemicals, industrial explosives and machinery or equipment with strict requirements on technical safety: Implementing the policies, projects and plans on developing the sectors of chemicals, industrial explosives and machinery or equipment with strict requirements in the local area; coordinating with local relevant organizations in inspecting and handling the law violations on the management, use, storage and transportation of chemicals, industrial explosives, liquefied petroleum gas and machinery or equipment with strict requirements on technical safety according to the law

* Consumer goods industry, food industry and other processing industries: Implementing the plans and projects on developing these sectors after being approved, including: textile, footwear, paper, porcelain, glass, plastic, beer, wine, beverages, tobacco, candy, milk, vegetable oil, flour and starch; guiding and supervising the application of the standards of quality, environmental and food hygienic safety from production to circulation under the jurisdiction of Department

of Industry and Trade

* Industry promotion: Implementing the programs, plans and projects on industry promotion in the local area including activities funded by the national industry promotion funds and the local industry promotion funds; organizing

training courses on capacity building in organizing the industry promotion activities

for staffs working in the industry promotion sector

* Industrial clusters management: Chairing and coordinating with relevant organizations in the implementation of programs, projects, plans, mechanism and policies on developing the small and medium size enterprises, the collective economic organizations in the local area (including rural craft villages, cooperatives

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relating to industry and trade sector); ratifying the regulations of these

organizations; implementing the preferential mechanism and policies on investment

attraction, export and import, tax, finance, labor, infrastructure construction, land

clearance, new industrial clusters construction in the local area after being approved

6 Trade:

* Domestic trade: Implementing the mechanism, plans and policies on developing the wholesale and retail trade infrastructure network, including: markets,

commercial centers, supermarkets, stores, trade cooperatives, trade services;

commercial agencies, franchising network and other types of trade infrastructure; chairing and coordinating with relevant organizations in guiding and implementing the mechanism and policies on encouraging the expansion of the business network,

establishing and developing the stable channels of goods circulation from

production to consumption in the local area; implementing the preferential policies and mechanism in order to encourage and support people in mountainous and remote areas in production and living (such as providing the essential goods, supporting the circulation of trade services and goods, etc); collecting and processing the market information on the total flow of goods, total supply and demand, goods reserves, the fluctuations in price of essential commodities, the policies for people in mountainous and remote areas; proposing the measures for regulating the circulation of commodities in each period to the competent

authorities

* Export and import: Implementing the policies, plans, programs and projects on developing and encouraging commodity export; developing export and import services in the local area; managing the commodity export and import of domestic and FDI enterprises or foreign enterprises which have no representative in

Viet Nam

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* E-commerce: Chairing and coordinating with relevant organizations in building the infrastructure of e-commerce applications in the local area; implementing the policies, plans and programs to train and develop the human resources for the management of e-commerce activities in the local area

* Trade promotion: Implementing the trade promotion plans, projects and programs in order to encourage the export, support local enterprises in building and developing the Viet Nam commodity brands; executing and supervising the registration of trade fairs and exhibitions organizing and the promotion of goods

* Market management: Performing the work of market management in the local area according to the regulations of the Government, Ministry of Industry and Trade and other competent state management organizations; guiding and supervising the law enforcement in the industry and trade sector of organizations and individuals doing business in the local area; conducting the specialized inspection under the provisions of law; chairing and coordinating with relevant organizations to fight against smuggling, trafficking of smuggled goods and prohibited goods, production and trafficking of counterfeit goods, poor quality goods, goods violating the regulations on intellectual property; struggling against the acts of speculation, market manipulation and commercial fraud of individuals and organizations doing business in the local area

* Competition, antitrust, antidumping, anti-subsidy and consumer protection: Guiding and implementing the provisions of law on competition, antitrust, anti- dumping, anti-subsidy, consumer protection and ensuring a fair competition

environment in the local area; proposing the amendment of issued regulations and

documents inconsistent with the competition law to the relevant organizations; having the right to request relevant organizations and individuals to provide information and documents necessary for the performance of assigned duties prescribed by law on competition, antitrust, anti-dumping, anti-subsidy and consumer protection; collecting and setting up the database to manage and provide

a

the information on enterprises at dominant position in the market, monopoly enterprises, competition rules in the associations and the exemptions

* Economic integration: Implementing the plans, programs and specific measures on economic integration, international trade in the local area after being approved; chairing and coordinating with relevant organizations in disseminating and guiding the implementation of the plans, programs and regulations on economic integration and international trade in the local area

7 Assisting the city People’s Committee in the state management of enterprises and organizations in the collective and private economy sector; guiding and supervising the activities of local associations and non-governmental organizations in the industry and trade sector in accordance with the law

8 Guiding and supervising the application of autonomy and self- responsibility mechanism of professional organizations under the authority of Industry and Trade Department and in accordance with the law

9 Promoting the international cooperation in the field of industry and trade

in accordance with the law and the decentralization of the city People’s Committee

10 Giving professional advice and guidance on the field of industry and trade to the Industry and Trade divisions or the Economic divisions of the district people’s committees

11 Implementing the research plans and applying the scientific and technological progress in the field of industry and trade under the jurisdiction of Industry and Trade Department; guiding the application of economic and technical standards, guidelines and norms; setting up the information storage systems and providing data on industry and trade in accordance with the law

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12 Doing the administration reform of Industry and Trade Department in accordance with the objectives and contents of the administration reform program

of the city People’s Committee

13 Inspecting, testing and handling the violations, settling complaints and denunciation; preventing and struggling against the corruption; doing saving, fighting against waste in the field of industry and trade according to the law and the assignment the city People’s Committee

14 Providing public services in the domain of industry and trade under the jurisdiction of Industry and Trade Department and in accordance with the law

15 Stipulating the functions, rights, duties, organization structure and working relationship of the organizations directly under the authority of Industry and Trade Department; managing the regular staffs, implementing the salary policies, the treatment, training, reward and discipline regime for the officials under the jurisdiction of Industry and Trade Department in accordance with the law and the decentralization of the city People’s Committee

16 Doing the finance and asset management, distributing the budget in accordance with the law and the decentralization of the city People’s Committee

17 Supplying information, doing periodic and extraordinary reports on the implementation of the programs, plans and projects to develop the industry and trade sector in the local area according to the regulations of the city People’s Committee and the Ministry of Industry and Trade

18 Performing other duties assigned by the city People’s Committee and in accordance with the law

Development History of Ho Chi Minh City Industry and Trade Sector

In August 2008, implementing the policy of the Government on the

reorganization of the state management units, Ho Chi Minh city Department of

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Industry and Trade was established on the basis of merging Ho Chi Minh city Department of Industry and Department of Trade Following the policy of the Government on the reorganization of the state enterprises, most of the purely business units under the Department were equitized At present, the total number of employees of Ho Chi Minh city Department of Industry and Trade as of October

2016 is about 170 people with 11 divisions (not include 4 dependent units)

1.2 Research problem statement:

Public services worldwide have been subject to reforms and restructures in order to enhance competitiveness and meet social expectation in a dynamically changing global work environment The Vietnam public sector is no exception and reforms in the public’s services have been a priority for every government DOIT is working on a plan in order to increase its effectiveness and efficiency and provide high quality services to citizens and businesses

Nowadays, the success of organization need employees who will do more than their usual job duties that is beyond expectations The main study is to investigate whether the distinct classes of organizational citizenship behavior (OCB) such as altruism and generalized compliance are shown at DOIT, and whether person organization fit, public service motivation and job satisfaction are predictors of OCB at DOIT civil servants

1.3 Research objective:

The aim of this research focuses on clearly defining the relationship between person organization fit, public service motivation, job satisfaction and organizational citizenship behavior at DOIT to improve public service quality, provide better service, what factors DOIT should reconsider? To examine how factors have influenced organizational citizenship behavior and give commendation

to DOIT

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1.4 Research scope:

This study focuses to issues related to Person Organization Fit, Public Service Motivation and Job Satisfaction of the employees of DOIT base on their current operating mode and working condition The survey is only built to collect feedback form employees who are working at DOIT, not have the dependent unit

The study is divided into four sections The first section is a literature review, which starts by discussing the history and development of the literature on Organization citizenship behavior I provide a brief description of the variables and theories associated with Organization citizenship behavior and a description of a theoretical framework for the study based on Person organization fit The second section comprises the research methodology employed in the study and describes the data and statistical techniques used to test the hypotheses The third section reports the results and findings of the analysis Finally, the study concludes with a discussion of the findings, focusing on the implications for public managers

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2 LITERATURE REVIEW

2.1 Organizational Citizenship Behavior

Organ (1997) has defined organizational citizenship behavior (OCB) as a contextual performance The behavior carried out by the individuals does not directly support their job but can support the organization as a whole Further, Organ defines OCB as a discretionary individual behavior which is not rewarded by the formal rewarding system but can support the effectiveness of organizational functions in general OCB tends to take the form of extra-role behavior in organization Extra-role behavior is very important for the effectiveness of the organization, which would impact the survival of the organization in the long term, especially during increasing competition between organizations Dyne, Graham & Dienesch (1994) state that OCB is the behavior of employees willing to work more than what they are required to or to carry out things which are not stipulated in their

job description would be beneficial for the success of the company in the long run

In this concept of OCB from, the dimension of civic virtue is similar to social participation, while sportsmanship has the same meaning as loyalty A rather different dimension from the concept of Dyne, Graham & Dienesch is the dimension of advocacy participation, which includes the behavior directed towards other members of the organization and reflects the intention to be different

2.2 P-O fit

Currently, the P-O fit theory is widely used in motivational research in the public sector and is complementary to the PSM approach [for an extensive review

of the relations between PSM and P-O fit, see Kim (2012)] Value congruency (i.e.,

a high level of P-O fit) is frequently conceptualized as an intermediate variable that comes into play in the relationship between PSM and attitudinal outcomes such as preference for public work (Christensen and Wright, 2011; Steijn, 2008);

performance (Bright, 2007); job satisfaction (Wright and Pandey, 2011); or

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organizational commitment (Kim, 2012) The general theorization of values- congruency in work settings allows for a more precise analysis of the causal link between HRM practices and preferences, and PSM

P-O fit theory relies on the assumption that the individuals in an organization compare their personal aspirations to their organizational environment in search of congruence The idea that individuals expect to fulfill some of their personal needs through their membership in a professional organization is a well-accepted postulate Diverse needs, motives and values theories focus on the individual (internal) or situational (external) determinants of behavior (Alderfer, 1969;

Herzberg et al., 1959; Maslow, 1954) They all share the claim that motivation

arises when individuals seek optimal satisfaction of certain needs In the wake of this strong claim, it is likely that personal expectations might encounter favorable or unfavorable organizational realities and may thus engender satisfaction or dissatisfaction depending on whether or not those expectations are fulfilled

P-O fit is one of the most popular areas of research in this context According

to this perspective, employees are more willing to be committed, to be satisfied, and

to remain in place if they feel that there is a good fit between their preferences, whether intrinsic or extrinsic, and their organizational environment Numerous studies have demonstrated the positive effect of a high P-O fit on work outcomes, for instance, on job satisfaction or on turnover intentions (Kristof-Brown et al., 2005; Bretz and Judge, 1994)

2.3 Public Service Motivation

Expectations of the public servants differ from those of the employees in the private sector Profit-seeking firms are likely to be dominated by economic oriented employees, while public-service organizations are likely to be dominated by service- oriented employees (Crewson, 1997) Thus, public servants show concern for the community and a desire to serve the public interest The concept of public

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service motivation is used to explain the differences between public and private employees

Public service is often used as a synonym for government service This

includes also all the workers in the public sector Public service motivation provides both the analytical framework to determine the nature of public sector incentives

and an evaluative mechanism through which the behaviors of those providing the

services can be examined (Jacobson, 2011) According to Perry & Wise (1990), public service motivation may be understood as an individual’s predisposition to respond to motives grounded primarily or uniquely in public institutions and organization These motives can be classified in to three analytically distinct categories: rational, norm-based and affective Perry & Wise (1990) explained that rational motives involve actions grounded in individual utility maximization; and norm-based motives refer to actions generated by efforts to confirm to norms, while affective motives refer to triggers of behavior that are grounded in emotional responses to various social contexts

Perry (1996) has developed a measurement scale for public service motivation Four dimensions of attraction to public policy making, commitment to the public interest and civic duty, compassion, and self-sacrifice-are empirically associated with the construct Attraction to public policy making refers to the opportunity to participate in the formulation of public policy According to Perry

(1996), this dimension is closely related to rationale motives Another dimension,

commitment to the public interest, is one of the most commonly identified

normative foundations for public service and reflects the desire to serve the public interest Perry explained that this desire is only one value included in the construct

of public service motivation Following Buchanan, Perry noted that the public service ethics involve a unique sense of civic duty According to Buchanan, this norm derives from the state’s sovereign power and the role of public employees as nonelected trustees of parts of this power

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Perry (1996) defined compassion as a “patriotism of benevolence”, which reflects an extensive love of all people within our political boundaries and the imperative that they must be protected in all of the basic rights granted to them by the enabling documents

The last dimension of public service motivation, self-sacrifice, is defined by Perry (1996) as the willingness to substitute service to others for tangible personal

rewards

The construct of public service motivation is new, and has not been discussed yet in the literature on public administration (Perry, 1997) Perry’s study (1997) identified potential antecedents of public service motivation He found that

an individual’s public service motivation develops from exposure to a variety of experiences, some associated with childhood, some associated with religion and some associated with professional life

Camilleri (2007) investigated the antecedents of public service motivation and found that role states, employee-leader relations, job characteristics, and employee perceptions of the organization have a significant correlation between public service motivation and the antecedents

Several authors developed the hypothesis that motivation differs across different sectors This hypothesis gained continuous attention and was affirmed by empirical support (Jacobson, 2011) Further, researchers’ efforts to understand the behavioral impact of public service motivation have found it to be correlated with

pro-social behavior and positive organizational outcomes

2.4, Job Satisfaction

Job satisfaction refers to the general attitude of an individual towards his or her work A person with high satisfaction would have a positive attitude towards the job while a dissatisfied person would express a negative attitude towards the job

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(Robbins, 2005) Individual attitude towards the job is, according to Gibson,

Ivancevich & Donnelly (1996) a result of the individual perception of their work and work environment, such as supervisor style, policies and procedures, affiliation with their department, work condition and benefits According to Mathis & Jackson (2001) , job satisfaction is a positive emotional condition resulting from the evaluation of one’s work experience comparing to their individual expectations Job dissatisfaction would emerge when expectations of the employee are not met

Job satisfaction plays an important role for an employee Employees who are not satisfied with their job would become frustrated Dessler (2005) adds that employees with job satisfaction usually have good records for attendance, a lower rate of turnover and better job performance than employees with job dissatisfaction

Mathis & Jackson (2001) state that job satisfaction has many dimensions In general, the focus of research are the dimensions of the satisfaction with the job itself, satisfaction with payment, recognition, relation between superior and subordinate, and with opportunities for advancement Each dimension would result

in a feeling of satisfaction with the job itself, while different people have their own perception about job satisfaction

Basically, there is no simple way to estimate employee satisfaction Mathis

& Jackson (2001) suggest that the critical factor here is the difference between what

is expected from the employees and what they receive from their work

2.5 Previous Studies

Camilleri (2007)

This research tests the relation between public service motivation and several antecedents, such as personal attributes (education, family life- cycle, tenure, gender, age and pay), job role, perception of employees on their organization, relation between supervisor and subordinate, and job characteristics Tests were

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carried out on the following four dimensions of public service motivation: policy making, public interest, compassion and self-sacrifice The results show that all dimensions of public service motivation, except policy making, are related to personal attributes All dimensions of the public service motivation are also found

to be related to the ambiguity of job role, but job role conflict is not related to public

service motivation Employee perception on the organization is found to be related

to most of the dimensions of public service motivation, except compassion The relation between supervisor and subordinate is also found to be related to all dimensions of public service motivation Job characteristics are also related to most dimensions of public service motivation, except compassion

Liu, Tang & Zhu (2008)

This research examines the construct of public service motivation consisting

of the four dimensions policy making, public interest, self-sacrifice and compassion

in the context of government employees in China A second focus of research is the impact of public service motivation on job satisfaction among the employees Exploratory testing has shown that the generalizability of the concept of public service motivation is limited to the dimensions of policy making, public interest and self- sacrifice The dimension of compassion is found to be lacking evidence in the studies in public sector in China Liu, Tang & Zhu also show that there is a significant impact of public service motivation on job satisfaction

Kim (2006)

This study has examined the role of public service motivation, job satisfaction and organizational commitment as predictors of organizational citizenship behavior (OCB) The result of this research suggests that there is a significant relation between public service motivation and OCB and between organizational commitment and OCB, while job satisfaction is not found to be

related to OCB

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Gonzales & Garazo (2006) The paper of Gonzales & Garazo (2006) examined the structural relation between organizational service orientation, job satisfaction and organizational citizenship behavior (OCB) The result of this research shows that organizational service orientation has a significant impact on job satisfaction Job satisfaction is

also found to have a positive impact on OCB Employees more satisfied with their work would be more likely to practice OCB

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