Luận văn thạc sĩ UEH hight involvement work practices, procedural justiceand trust in the employer

MINISTRY OF EDUCATION AND TRAINING

UNIVERSITY OF ECONOMICS HOCHIMINH CITY

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

NGUYEN VU QUYNH HOA

High-involvement Work Practices, Procedural Justice

and Trust in the Employer.

An Examination in Hochiminh City.

THESIS OF MASTER OF BUSINESS ADMINISTRATION

Ho Chi Minh City - 2012

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MINISTRY OF EDUCATION AND TRAINING

UNIVERSITY OF ECONOMICS HOCHIMINH CITY

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

NGUYEN VU QUYNH HOA

High-involvement Work Practices, Procedural Justice

and Trust in the Employer.

An Examination in Hochiminh City.

Major: Business Administration

Code: 60340102

THESIS OF MASTER OF BUSINESS ADMINISTRATION

Supervisor: PhD. Pham Quoc Hung

Ho Chi Minh City – 2012

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COMMITMENT

I would like to commit that the thesis “High-involvement Work Practices, Procedural

Justice and Trust in the Employer. An Examination in Hochiminh City” is the research of

my own.

Figures in this thesis has been collected and used honestly. The research result presented in

the thesis has not copied from anywhere and also not yet shown or published in any other

research before.

Hochiminh City, October, 2012

Author of the thesis

NGUYEN VU QUYNH HOA

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GRATEFULNESS

The first and in-depth thank I would like to send to my parents and family, who have been

supporting and helping me so much so that I can pursue the MBA course as well as finish

this thesis.

I would like to sincerely thank all teachers at Hochiminh City University of Economics,

having taught and given me valuable knowledge as a foundation for doing this thesis.

I especially show my deep gratitude to Dr. Pham Quoc Hung for his devoted guidance so

that I can complete the thesis.

I also gratefully thank you all my friends, colleagues and those who helped me answering

the questionnaire as a data source for analyzing and giving out the research result of this

thesis.

Last but not least, the most gratefulness is especially entitled to send to my husband and

kids, who have been not only going, but also sharing with me difficulties and hardness

during the time I enter the MBA course. More than that, it was they who are the “driving

force” so that I can accomplish the thesis, reaching such a final result.

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ABSTRACT

The research uses the quantitative method to define the role of high-involvement work

practices and procedural justice on trust in the employer in Hochiminh City. The data in

this research has been collected from the questionnaire sent to office staffs and managers in

Hochiminh City. From literature review about trust in the employer, the measurement scale

of employee trust has been built with the 7-point scale Likert. The reliability of

measurement scale was tested by the Cronbach’s alpha coefficient and correlation

coefficient. The confirmatory factor analysis has also been built to define whether the data

in the model fits with Vietnamese situation, especially in Hochiminh City. The linear

regression model was initially built with the dependent variable “Trust in the Employer”

and three independent ones “High-Involvement Work Practices”, “Procedural Justice”,

“Perceived Organizational Trustworthiness”. After testing the reliability of measurement

scale as well as defining the suitability of the model, the model was adjusted to three

independent variables as mentioned above but a certain items of them were deleted. The

result of regression analysis has shown that these three variables have impacted employee

trust of organizations in Hochiminh City. In which, the most impacted one is Procedural

Justice and High-Involvement Work Practices and the less impacted one is Perceived

Organizational Trustworthiness, but not playing as a mediating variables as hypothesized

in the research model.

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TABLE OF CONTENTS

Commitment

Gratefulness

Abstract

List of symbols, abbreviations

List of tables

List of diagrams

CHAPTER 1: INTRODUCTION

1.1. Reasons for this research ................................................................................................... 1

1.2. Objectives of the research .................................................................................................. 2

1.3. Subjective and Scope of the research ................................................................................ 2

1.4. Research Methodology ...................................................................................................... 3

1.5. Practical meaning of the research ...................................................................................... 3

1.6. Thesis Structure ................................................................................................................. 3

CHAPTER 2: LITERATURE REVIEW AND RESEARCH MODEL

2.1. Introduction ........................................................................................................................ 5

2.2. Literature Review on Trust in the Employer ..................................................................... 5

2.2.1. Trust in Organizations ................................................................................................ 6

2.2.2. Antecedents to trust in the employer .......................................................................... 8

2.2.2.1. Trust Research .................................................................................................... 8

2.2.2.2. HR Research ....................................................................................................... 9

2.2.2.3. Organizational justice ....................................................................................... 12

2.3. Research Model and estimation indices for measuring trust in the employer ................. 14

2.3.1. Research model ........................................................................................................ 14

2.3.2. Estimation indices for measuring trust in the employer .......................................... 15

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CHAPTER 3: RESEARCH METHODOLOGY

3.1. Research design ............................................................................................................... 17

3.1.1. Measurement scale ................................................................................................... 17

3.1.2. Sampling method ..................................................................................................... 20

3.1.2.1. Overall .............................................................................................................. 20

3.1.2.2. Sampling method .............................................................................................. 20

3.1.2.3. Sampling size ................................................................................................... 20

3.1.3. Data collection tool – Questionnaire ........................................................................ 20

3.1.4. Data collection process ............................................................................................ 22

3.2. Statistical data analysis techniques .................................................................................. 22

3.2.1. Encoding the data ..................................................................................................... 22

3.2.2. Eliminating unsuitable answers ............................................................................... 22

3.2.3. Screening the data .................................................................................................... 22

3.2.4. Correlation between variables .................................................................................. 24

3.2.5. Verifying the measurement scale reliability ............................................................ 24

3.2.6. Confirmatory factor analysis .................................................................................... 25

3.2.7. Linear regression analysis ........................................................................................ 26

CHAPTER 4: RESEARCH RESULT

4.1. Eliminating unsuitable answers ....................................................................................... 29

4.2. Sample charactertistics .................................................................................................... 29

4.3. Screening the data ............................................................................................................ 30

4.4. Correlation between variables ......................................................................................... 32

4.5. Analysis of reliability and suitability of the measurement scale ..................................... 34

4.5.1. Measurement scale of each factor of employee trust ............................................... 34

4.5.2. Measurement scale of trust in the employer ............................................................ 38

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4.6. Confirmatory factor analysis ........................................................................................... 38

4.7. Linear regression analysis ................................................................................................ 43

4.7.1. Relation between variables to trust in the employer ................................................. 43

4.7.2. Checking assumptions in linear regression .............................................................. 46

CHAPTER 5: CONCLUSION AND DISCUSSION

5.1. Conclusion about Trust in the Employer ......................................................................... 51

5.2. Discussion about employee trust in the organization ...................................................... 51

5.3. Limitation of this research and proposals for further researchers ................................... 53

References

List of appendix

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LIST OF SYMBOLS, ABBREVIATIONS

CFA: Confirmatory Factor Analysis

HCM City: Hochiminh City

HIWP: High-Involvement Work Practices

HR: Human Resource

HRM: Human Resource Management

POT: Perceived Organizational Trustworthiness

PJ: Procedural Justice

WTO: World Trade Organization

TE: Trust in the Employer

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