Luận văn thạc sĩ UEH the impact of perceived leadership styles on organizational commitment

MINISTRY OF EDUCATION AND TRAINING

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

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Nguyen Thi Tuy An

THE IMPACT OF PERCEIVED LEADERSHIP STYLES

ON ORGANIZATIONAL COMMITMENT

MASTER OF BUSINESS ADMINISTRATION THESIS

HO CHI MINH City - 2012

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MINISTRY OF EDUCATION AND TRAINING

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

-----oOo-----

Nguyen Thi Tuy An

THE IMPACT OF PERCEIVED LEADERSHIP STYLES

ON ORGANIZATIONAL COMMITMENT

Major: Business Administration

Major code: 60340102

MASTER OF BUSINESS ADMINISTRATION THESIS

SUPERVISOR: ASSOC. PROF. DR. NGUYEN DINH THO

HO CHI MINH City - 2012

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1

Contents

Acknowledgement .............................................................................................................................. i

Declaration......................................................................................................................................... ii

List of tables...................................................................................................................................... iii

List of figures.................................................................................................................................... iii

Abstract............................................................................................................................................. iv

CHAPTER I INTRODUCTION............................................................................................ 1

1.1 Background ........................................................................................................................ 1

1.1.1 Organizational Commitment significance.................................................................. 1

1.1.2 The importance of Leadership Style .......................................................................... 2

1.1.3 Current factors affect organizations in Ho Chi Minh City......................................... 3

1.2 Statement of the Problem................................................................................................... 4

1.2.1 Employees’ commitment ........................................................................................... 4

1.2.2 Leadership.................................................................................................................. 5

1.3 Research objective and its significance.............................................................................. 6

1.3.1 Research objective ..................................................................................................... 6

1.3.2 Research significance................................................................................................. 7

1.4 Extent and methodology of the study................................................................................. 7

1.4.1 Extent of the study ..................................................................................................... 7

1.4.2 Research methods....................................................................................................... 7

1.5 Some concepts related to the research................................................................................ 8

1.5.1 Organizational Commitment...................................................................................... 8

1.5.2 Leadership and Leadership Style ............................................................................... 9

1.6 Organization of the Remainder of the Study.................................................................... 10

CHAPTER II LITERATURE REVIEW............................................................................... 12

2.1 Introduction on Organizational Commitment .................................................................. 12

2.2 Introduction on Leadership Style ..................................................................................... 14

2.3 Concept of each element of Organizational Commitment and Leadership Style model.. 17

2.3.1 Affective commitment ............................................................................................. 17

2.3.2 Continuance commitment ........................................................................................ 17

2.3.3 Normative commitment ........................................................................................... 18

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2.3.4 Task Orientation....................................................................................................... 18

2.3.5 Relation Orientation................................................................................................. 18

2.4 Development of Research Hypotheses............................................................................. 19

2.4.1 Task Orientation and Organizational Commitment ................................................. 19

2.4.2 Relation Orientation and Organizational Commitment............................................ 19

2.5 Research Model................................................................................................................ 20

CHAPTER III METHODOLOGY........................................................................................... 23

3.1 Description of Instrumentation ........................................................................................ 23

3.1.1 Organizational Commitment Questionnaire............................................................. 23

3.1.2 Leadership Style Questionnaire ............................................................................... 25

3.2 Independent and Dependent Variables............................................................................. 26

3.3 Sample and Analysis Procedures ..................................................................................... 27

3.3.1 Sample...................................................................................................................... 28

3.3.2 Analysis Procedures................................................................................................. 28

CHAPTER IV ANALYSIS AND FINDINGS ......................................................................... 31

4.1 Sample description........................................................................................................... 31

4.2 Reliability of Scales......................................................................................................... 32

4.2.1 Organizational Commitment.................................................................................... 32

4.2.2 Leadership Style....................................................................................................... 33

4.3 Exploratory Factor Analysis............................................................................................. 34

4.4 Descriptive Statistics for Leadership Style and Organizational Commitment Score ....... 37

4.4.1 Organizational Commitment Score.......................................................................... 37

4.4.2 Leadership Style Score............................................................................................. 37

4.5 Relationship between Leadership Styles and Organizational Commitment .................... 38

4.5.1 Regression of Relation Orientation, Task Orientation and Affective Commitment 40

4.5.2 Regression of Relation Orientation, Task Orientation and Continuance Commitment

45

4.5.3 Regression of Relation Orientation, Task Orientation and Normative Commitment

48

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CHAPTER V SUMMARY, CONCLUSIONS AND RECOMMENDATIONS ..................... 51

5.1 Research Hypotheses ....................................................................................................... 51

5.2 Summary of Findings....................................................................................................... 51

5.3 Conclusions...................................................................................................................... 52

5.3.1 Organizational Commitment and Leadership Style Scale........................................ 52

5.3.2 Organizational Commitment and Leadership Style Score ....................................... 53

5.3.3 Organizational Commitment and Leadership Style Relation................................... 54

5.4 Managerial Implications................................................................................................... 54

5.4.1 Organizational Commitment.................................................................................... 54

5.4.2 Leadership Styles..................................................................................................... 55

5.4.3 Leadership Styles and Organizational Commitment................................................ 57

5.5 Limitations and suggestions............................................................................................. 57

BIBLIOGRAPHY............................................................................................................................ 59

APPENDIX 1: LIST OF KEY CONCEPS IN THE STUDY .......................................................... 63

1. Organizational Commitment............................................................................................... 63

2. Leadership and Leadership Style ........................................................................................ 64

a. Leadership........................................................................................................................ 64

b. Leadership Style............................................................................................................... 65

APPENDIX 2: QUESTIONNAIRE................................................................................................. 66

1. English version.................................................................................................................... 66

2. Vietnamese version ............................................................................................................. 69

APPENDIX 3: CHECKING RELIABILITY OF INSTRUMENTS................................................ 72

1. Organizational Commitment Scale ..................................................................................... 72

a. Affective commitment ..................................................................................................... 72

b. Continuance commitment ................................................................................................ 72

c. Normative commitment ................................................................................................... 73

d. Reliability of Organizational Commitment Scale ............................................................ 73

2. Leadership Style Scale ........................................................................................................ 74

a. Task Orientation............................................................................................................... 74

b. Relation Orientation......................................................................................................... 75

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c. Reliability of Leadership Style Scale............................................................................... 75

APPENDIX 4: EXPLORATORY FACTOR ANALYSIS................................................................ 77

APPENDIX 5: REGRESSION ........................................................................................................ 82

1. Multiple regression for Affective Commitment.................................................................. 82

a. Assumptions..................................................................................................................... 82

b. Result ............................................................................................................................... 84

2. Multiple regression for Continuance Commitment............................................................. 85

a. Assumptions..................................................................................................................... 85

b. Result ............................................................................................................................... 88

3. Multiple regression for Normative Commitment................................................................ 89

a. Assumptions..................................................................................................................... 89

b. Result ............................................................................................................................... 91

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Acknowledgement

I would like to thank the following people who helped to make this

research possible:

Respectful lecturers of University of Economics Ho Chi Minh City for

empowering me with considerably useful knowledge during the time I studied

in the University.

Assoc. Prof. Dr. Nguyen Dinh Tho, for supporting and guiding with his

patience and competence throughout my dissertation writing.

Respondents, for giving their precious time in inputting the

questionnaires.

My family, for encouraging me all the time.

Even I have tried my best to complete the thesis, however, human

errors might be found. Therefore, all inputs, ideas, and comments would be

greatly appreciated.

Nguyen Thi Tuy An

Ho Chi Minh, November 2012

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ii

Declaration

Student number: 7701080001

I would like to declare that this dissertation, “The impact of perceived

leadership styles on organizational commitment”, was accomplished based on

my recent independent and serious studies and has not been previously, in its

entirety or in part, submitted at any university in order to obtain academic

qualifications, the data was collected in reality, and all used sources were

indicated and acknowledged by means of complete bibliography.

Nguyen Thi Tuy An

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iii

List of tables

Table 2. 1 Four periods of the development of Organizational Commitment .....................13

Table 2. 2 Different points of Leadership Style Approach ..................................................16

Table 3. 1 Surveyed items used in the study for independent variables..............................26

Table 3. 2 Surveyed items used in the study for dependent variables .................................27

Table 4. 1 Demographic data ...............................................................................................31

Table 4. 2 Reliability of Organizational Commitment Scale...............................................33

Table 4. 3 Reliability of Leadership Style Scale..................................................................34

Table 4. 4 Factor Analysis of Organizational Commitment and Leadership Style..............36

Table 4. 5 Organizational Commitment Descriptive Statistics............................................37

Table 4. 6 Leadership Style Descriptive Statistics...............................................................37

Table 4. 7 Correlation between Leadership Styles and Organizational Commitment.........39

Table 4. 8 Overall relationship between Leadership Styles and Affective Commitment 1 .43

Table 4. 9 Overall relationship between Leadership Styles and Affective Commitment 2 .43

Table 4. 10 Relationship of each Leadership Style and Affective Commitment .................44

Table 4. 11 Overall Relationship between Leadership Styles and Continuance Commitment

1 ...........................................................................................................................................46

Table 4. 12 Overall Relationship between Leadership Styles and Continuance Commitment

2 ...........................................................................................................................................46

Table 4. 13 Relationship of each Leadership Style and Continuance Commitment............47

Table 4. 14 Overall Relationship between Leadership Styles and Normative Commitment 1

.............................................................................................................................................48

Table 4. 15 Overall Relationship between Leadership Styles and Normative Commitment 2

.............................................................................................................................................49

Table 4. 16 Relationship of each Leadership Style and Normative Commitment...............49

List of figures

Figure 2. 1 Research Model..............................................................................................22

Figure 3. 1 Research Process............................................................................................30

Figure 5. 1 Research Findings ..........................................................................................52

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iv

Abstract

The purpose of research was to explore the impact of perceived leadership

styles on organizational commitment.

The population was the employees working in Ho Chi Minh City.

The used methods were qualitative and quantitative one based on two

instruments of Organizational Commitment Questionnaire (Meyer and Allen, 2004)

and Leadership Style Questionnaire (Northouse, 2010).

From this study, we could find that:

 The organizational commitment in Ho Chi Minh City was at moderate

level.

 The leadership style used by most leaders in Ho Chi Minh City was at

moderate range of task and relation orientation.

 There was a statistically significant relationship between

organizational commitment of the employees and their perception of

supervisors’ leadership styles.

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