Luận văn thạc sĩ UEH leadership style, role clarity and employee job satisfaction link, evidence in

MINISTRY OF EDUCATION AND TRAINING

HO CHI MINH CITY UNIVERSITY OF ECONOMICS --------------------

TRỊNH MINH CHIÊU

LEADERSHIP STYLE, ROLE CLARITY AND

EMPLOYEE JOB SATISFACTION LINK:

EVIDENCE IN HOCHIMINH CITY BANKING EMPLOYEES

ECONOMICS MASTER THESIS

Ho Chi Minh City – 2011

LUAN VAN CHAT LUONG download : add [email protected]

MINISTRY OF EDUCATION AND TRAINING

HO CHI MINH CITY UNIVERSITY OF ECONOMICS --------------------

TRỊNH MINH CHIÊU

LEADERSHIP STYLE, ROLE CLARITY AND

EMPLOYEE JOB SATISFACTION LINK:

EVIDENCE IN HOCHIMINH CITY BANKING EMPLOYEES

MAJOR : BUSINESS ADMINISTRATION

CODE : 60.34.05

ECONOMICS MASTER THESIS

INSTRUCTOR: Dr., Assoc. Prof. NGUYỄN ĐÌNH THỌ

Ho Chi Minh City – 2011

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ACKNOWLEDGEMENT

LUAN VAN CHAT LUONG download : add [email protected]

ABSTRACT

Due to the rapid growth in banking industry in Vietnam and the dynamic

business environment, many banks and credit institutions are facing more and

more continuous challenges. To overcome the issues, banks employees play vital

role. Although some foreign researchers have done exploration on dimensions of

employee’s satisfaction, Vietnam climate can vary.

This study investigates the relationship between leadership style, role clarity and

employee job satisfaction. The author explores the effect of leadership style on

role clarity and employee job satisfaction as well as clarifies the impact of role

clarity to employee job satisfaction using data collected from 177 responses in

Ho Chi Minh City area. A surprising finding is that directive leadership style

does not support for employee role clarity. The fundamental implication in this

study is that democratic leadership styles are suitable management methods.

Keywords: Leadership style; role clarity; job satisfaction; bank.

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CONTENTS

CONTENTS ..................................................................................................................... 1

LIST OF TABLES ........................................................................................................... 4

LIST OF FIGURES .......................................................................................................... 6

CHAPTER I: INTRODUCTION ..................................................................................... 7

1.1 Research problems .................................................................................................. 7

1.2 Research objectives .............................................................................................. 11

1.3 Scope and limitations ............................................................................................ 11

1.4 Research methodology .......................................................................................... 12

1.5 Structure of the study ............................................................................................ 12

CHAPTER II: LITERATURE REVIEW ...................................................................... 14

2.1 Introduction ........................................................................................................... 14

2.2 Leadership ............................................................................................................. 14

2.2.1 Concept of leadership ..................................................................................... 15

2.2.2 Directive Leadership ...................................................................................... 18

2.2.3 Participative Leadership ................................................................................ 20

2.2.4 Empowering Leadership ................................................................................ 22

2.3 Role Clarity ........................................................................................................... 23

2.4 Job Satisfaction ..................................................................................................... 29

2.5 Hypotheses ............................................................................................................ 34

2.6 Summary ............................................................................................................... 40

CHAPTER III: METHODOLOGY ............................................................................... 42

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3.1 Introduction ........................................................................................................... 42

3.2 Research design .................................................................................................... 42

3.2.1 Research process ............................................................................................ 42

3.2.2 Preliminary research (qualitative research) .................................................. 43

3.2.3 Main research (quantitative research) ........................................................... 44

3.2.3.1 Sampling................................................................................................... 44

3.2.3.2 Sample Size .............................................................................................. 46

3.2.3.3 Survey methods ........................................................................................ 46

3.2.3.4 Data analysis techniques ......................................................................... 47

3.3 Measurement scales development ........................................................................ 50

3.4 Summary ............................................................................................................... 56

CHAPTER IV: DATA ANALYSIS AND FINDINGS ................................................. 57

4.1 Introduction ........................................................................................................... 57

4.2 Descriptive statistics of sample ............................................................................ 57

4.3 Assessment of measurement scale ........................................................................ 60

4.3.1 Reliability with Cronbach’s alpha ................................................................. 60

4.3.2 Validity with Exploratory Factor Analysis..................................................... 63

4.4 Hypothesis testing ................................................................................................. 67

4.5 Summary ............................................................................................................... 76

CHAPTER V: FINDINGS, LIMITATIONS AND RECOMMENDATIONS.............. 77

5.1 Introduction ........................................................................................................... 77

5.2 Findings and research contributions ..................................................................... 77

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5.2.1 Leadership style and employee role clarity.................................................... 77

5.2.2 Leadership style and employee job satisfaction ............................................. 78

5.2.3 Employee role clarity and employee job satisfaction .................................... 78

5.2.4 Research contributions ................................................................................... 79

5.3 Recommendations ................................................................................................. 80

5.4 Limitations and future research ............................................................................ 82

REFERENCES ............................................................................................................... 83

APPENDIX 1. Interview Form – Vietnamese version .................................................. 89

APPENDIX 2. Interview Form – English version ......................................................... 92

APPENDIX 3. Results of reliability with Cronbach’s alpha ......................................... 95

APPENDIX 4. Results of validity with Exploratory Factor Analysis ......................... 100

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LIST OF TABLES

Table 3.1 Type and technique of research ........................................................................ 42

Table 3.2 Measures used in the study ............................................................................... 53

Table 3.3 Final questionnaire ............................................................................................ 54

Table 4.1 Demographic characteristics ............................................................................. 57

Table 4.2 Descriptive statistic of measurement items ....................................................... 59

Table 4.3 Summary of Cronbach’s alpha .......................................................................... 63

Table 4.4 Rotated Component Matrix ............................................................................... 64

Table 4.5 Final construct measurement scales .................................................................. 66

Table 4.6 Linear Regression test of role clarity - organization with directive leadership

style ................................................................................................................................... 68

Table 4.7 Linear Regression test of employee job satisfaction - organization with

directive leadership style ................................................................................................... 69

Table 4.8 Linear Regression test of role clarity - organization with participative

leadership style .................................................................................................................. 71

Table 4.9 Linear Regression test of employee job satisfaction - organization with

participative leadership style ............................................................................................. 72

Table 4.10 Linear Regression test of role clarity - organization with empowering

leadership style .................................................................................................................. 73

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Table 4.11 Linear Regression test of employee job satisfaction - organization with

empowering leadership style ............................................................................................. 74

Table 4.12 Model test results ............................................................................................ 76

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LIST OF FIGURES

Figure 1.1 Job satisfactions rating of Vietnamese employee .............................................. 8

Figure 1.2 Vietnam job changing reason pyramid .............................................................. 9

Figure 2.1: Schematic diagram of the conceptual framework .......................................... 40

Figure 3.1 Research process diagram ............................................................................... 43

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