Luận văn thạc sĩ UEH factors affecting organizational commitment and retention of key employees in

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

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PHAM THUY THUY DUNG

FACTORS AFFECTING ORGANIZATIONAL

COMMITMENT AND RETENTION OF KEY

EMPLOYEES IN SMALL AND MEDIUM SIZED

FIRMS IN HO CHI MINH CITY.

MASTER OF BUSINESS (Honours)

Ho Chi Minh City - 2014

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UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

------------------------------

PHAM THUY THUY DUNG

FACTORS AFFECTING ORGANIZATIONAL

COMMITMENT AND RETENTION OF KEY

EMPLOYEES IN SMALL AND MEDIUM SIZED FIRMS

IN HO CHI MINH CITY.

ID: 21110009

MASTER OF BUSINESS (Honours)

SUPERVISOR: DR. DINH THAI HOANG

Ho Chi Minh City – 2014

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TABLE OF CONTENT

ABSTRACT……………………………………………………………………………….….1

CHAPTER 1: INTRODUCTION

1.1 Research background and problem statement ...................................................................... 2

1.2 Research objectives .............................................................................................................. 4

1.3 Research scope ..................................................................................................................... 4

1.4 Significance of the study ...................................................................................................... 4

1.5 Research structure ................................................................................................................ 5

1.6 Summary .............................................................................................................................. 6

CHAPTER 2: LITERATURE REVIEW

2.1Introduction ........................................................................................................................... 7

2.2Definition .............................................................................................................................. 7

2.3Previous Studies .................................................................................................................... 9

2.4Research Model .................................................................................................................. 15

2.5 Summary. .......................................................................................................................... 16

CHAPTER 3: RESEARCH METHODOLOGY

3.1 Sample................................................................................................................................ 17

3.2 Data Collection and Procedure .......................................................................................... 18

3.3 Question Design ................................................................................................................. 31

3.4 Data analysis method ......................................................................................................... 24

3.5 Summary ............................................................................................................................ 24

CHAPTER 4: DATA ANALYSIS

4.1 Respondent’s Demographics ............................................................................................. 26

4.2 Reliability Analysis ............................................................................................................ 27

4.3 Exploratory Factor Analysis .............................................................................................. 29

4.4.5 Regression Analysis ........................................................................................................ 32

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CHAPTER 5: CONCLUSION, IMPLICATIONS AND LIMITATIONS.

5.1 Conclusion ......................................................................................................................... 41

5.2 Managerial implications..................................................................................................... 41

5.2 Limitation and future research ........................................................................................... 43

REFERENCES ....................................................................................................................... 45

APPENDICES…………………………………………………………................ ……….. 50

LIST OF FIGURES

Figure 2.1: Research Model………………………………………………….……..….16

Figure 3.1: Research Process……………………………………… …………………...19

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LIST OF TABLES

Table 3.1. Source of data collection………………………………………….……….….20

Table 4.1: Demography Sampling……………………………………………………….27

Table 4.2 Reliability Test Results…………………………………………………..……28

Table 4.3 KMO and Bartlett’s Test of Independent Variables…………………………..30

Table 4.4 Rotated Component Matrix of Independent Variables……………………….31

Table 4.5 KMO and Bartlett’s Test of Dependent Variables………………… ………. 31

Table 4.6 Rotated Component Matrix of Dependent Variables…………..……………..32

Table 4.7 Correlation matrix…………………………..…………………………………34

Table 4.8 Model Summary of multiple regression analysis………………..……………35

Table 4.9 ANOVA of multiple regression………………………………………………35

Table 4.10 Coefficients of multiple regression analysis……………………………….36

Table 4.11 Model Summary of Simple Regression Analysis……………………..….…38

Table 4.12 ANOVA of Simple Regression Analysis……………………………………38

Table 4.13 Coefficients of Simple Regression Analysis………………...………………39

Table 4.14 Summary of testing hypotheses result……………………………………….40

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ACKNOWLEDGEMENTS

First at all, I would like to express my sincere gratitude to my supervisor,

Dr. Dinh Thai Hoang for his continuous support in the throughout process of my thesis.

I would like to take this opportunity to thank leaders, professors and staffs at ISB

who have helped me during my two year master course.

My sincere thanks also go to the friends and colleagues at Bach Viet JSC, that

participated in the initial trial survey stages that led to the development of the final survey

questionnaire and their support over the time when I was busy to study.

Last but not least, I would like to grant special thanks to my family members who

have loved and supported me all over the time.

Ho Chi Minh City, July 4, 2014

Pham Thuy Thuy Dung

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1

ABSTRACT

Retaining of key employees is one of the most important current matters of

human resource management. Employee’s turnover is a major threat to sustainability

and development of organizations. The problem is being faced by different

organizations around the countries. Intent to stay of key employee is one of the main

factors that could help reinforce the labor force and achieve the targeted goal.

This study examines the retention of key employees; its benefits and factors that

may help to retain the best employees of the organization.

Questions with five-point Likert scale are used to the research for investigating

the needs of core employees. Base on the previous research, the most affective factors

among of factors: training and career opportunities; job characteristics, and work/life

policies will be considered.

The research findings prove significant relationship of training and career

opportunities; job characteristics, and work/life policies that affect the staying decision

of core employees. This study will help SMEs in HCMC to find out various human

resource policies and to revise their current policies for further improvements.

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