Luận văn thạc sĩ UEH the impact of perceived organizational support on job performance, the

MINISTRY OF EDUCATION AND TRAINING

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

NGÔ VĂN QUẰN

The Impact of Perceived Organizational Support on

Job Performance, the Mediation of Job Engagement.

A Study of Commercial Banks in Viet Nam.

MASTER OF BUSINESS ADMINISTRATION

Ho Chi Minh City, 2012

LUAN VAN CHAT LUONG download : add [email protected]

MINISTRY OF EDUCATION AND TRAINING

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

NGÔ VĂN QUẰN

The Impact of Perceived Organizational Support on

Job Performance, the Mediation of Job Engagement.

A Study of Commercial Banks in Viet Nam.

MAJOR: BUSINESS ADMINISTRATION

Code: 60.34.01.02

MASTER THESIS

Supervisor: Dr. PHẠM QUỐC HÙNG

Ho Chi Minh City, 2012

LUAN VAN CHAT LUONG download : add [email protected]

ACKNOWLEGEMENT

First, I would like to thank to our supervisor of this study, PhD. Pham Quoc Hung for his

valuable guidance and advice. He inspired me greatly to work in this study. His

willingness to motivate me contributed tremendously to my study. I also would like to

thank him for providing me valuable documents, information as the guidance of my

study. Besides, I would like to thank all teachers of the Ho Chi Minh City of Economics

(EUH) for providing me and student like us with a valuable knowledge, good

environment and facilities to complete our researches. I also would like to thank Mr.

Nhat Truong, from The Poly-Technique University Ho Chi Minh City for supporting me

to analyze the research data by using Amos with statistical technique SEM. My thanks

and appreciations also go to my colleague in developing the project and people who have

willingly helped me with their abilities. Finally, I would like to express my gratitude and

thanks towards my parents, sistsers, friends for their understanding, kind co-operation

and encouragement which help me in completion of MBA programe and this study, for

their support in giving me such attention and time. Without helps of the particular that

mentioned above, I would face many difficulties while doing this study.

LUAN VAN CHAT LUONG download : add [email protected]

INDEX

Page

CHAPTER 1: INTRODUCTION...........................................................................1

1.1. Executive abstract ...............................................................................................1

1.2. Purpose of the study............................................................................................2

1.3. Questions of the study.........................................................................................3

1.4. Scope of the study ..............................................................................................3

1.5. Framework of the study ......................................................................................4

CHAPTER 2: LITERATURE REVIEW...............................................................4

2.1. Perceived organizational support (POS) ............................................................5

2.2. Job engagement...................................................................................................6

- Physical engagement (PE)................................................................................6

- Emotional engagement (EE).............................................................................6

- Cognitive engagement (CE) .............................................................................8

2.3. Job performance (JB)..........................................................................................8

2.4. Related theories and antecedent researches .....................................................10

2.5. Hypothesis development...................................................................................16

* Research model .............................................................................................18

CHAPTER 3. RESEARCH METHODOLOGY.................................................18

3.1. Research design ...............................................................................................19

3.2 Questionnaire development..............................................................................20

3.3. Translation of the questionnaires ....................................................................22

3.4. Variable control ...............................................................................................23

LUAN VAN CHAT LUONG download : add [email protected]

3.5. The pilot study ................................................................................................24

3.6. Target population .............................................................................................25

3.7. Sample size .....................................................................................................26

3.8. Selecting the sample and collecting data .........................................................26

3.9. Methods of data analysis .................................................................................28

3.9.1. Data Screening ......................................................................................28

3.9.2. Normal Distribution Examining ............................................................28

3.9.3. Reliability .............................................................................................28

3.9.4. Confirmatory factor analysis (CFA) & Structural equation modeling

(SEM) ....................................................................................................28

CHAPTER 4: RESULT OF DATA ANALYSIS ................................................37

4.1. Descriptive statistics .........................................................................................37

4.2. Normal Distribution Examining........................................................................41

4.3. Reliability .........................................................................................................42

4.4. Confirmatory factor analysis (CFA) ................................................................45

4.5. Structural equation modeling (SEM)................................................................49

4.6. Sumary of model test .......................................................................................55

CHAPTER 5: CONCLUSIONS AND RECOMMENDATIONS......................57

5.1 Summary of all hypotheses ...............................................................................57

5.2 Conclusions and implications ......................................................................58

5.3. Limitations and recommendations ...................................................................62

CHAPTER 6: LIST OF REFERENCES ............................................................63

7. APPENDIX ........................................................................................................67

LUAN VAN CHAT LUONG download : add [email protected]

1

CHAPTER 1: INTRODUCTION

1.1. Executive abstract

In the context of the international economic tendency, WTO integration, Vietnam now

has both opportunities and challenges for organizations to raise pressure on the

competitiveness of the product, services, brand, and human resources. In particular,

human resources is considered a key advantage for organizations to develop their

businesses, it is a valuable asset to help organizations improve their competitiveness

and performance.

Currently, the reciprocity responsibility norms were popular applied in organization in

Viet Nam, however majority of organizations have not sufficiently invested interest

and improve the system of human resource management in the area of relation

between between perceived organizational support and job performance. Due to this

reason, there remain areas that both employers and employees do not have in common.

As a result, the consequence of this shortcoming in HR Management, to some extent,

has caused employees were not motivated to compensate beneficial treatment and the

organizations did not obtain expected business outcome.

According to previous studies such as studies of (Pfeffer J. 1998); (Huselid, MA

1995), (Guest 1997), (D. Hartog and RM Verburg. 2004), (Singh K. 2004), human

resource practices have important influence on the performance of the business. By

studying factors contributing to the effective human resource management, it proves

that preceived organizational support (POS) takes an important position in this area.

POS contributes to increase employees’ performance (POS) to help organizations

reach their objectives. The behavioral outcomes of POS mentioned herewith include

increases, decrease in role and Job performance.

The study of effective Human resource (HR) management, specifically relationship

between perceived organizational support (POS) and job performance also measures of

man-power resource to achieve set targets of organizations; help managers with

solutions to encourage and motivate employees to work effectively in conditions of

tight labour market, where changing knowledge management practices and global

convergence of technology has redefined the nature of work, and in the context of

limited talent resources in manpower market.

LUAN VAN CHAT LUONG download : add [email protected]

2

By studying the impact of Perceived Organizational Support on Job Performance it has

been seen that there are mediation factors also contribute to establishing relation

between Perceived Organizational Support on Job Performance. Following Kahn

(1990) people employ and express themselves physically, cognitively, emotionally and

mentally during role performances”. By This reason this study also analyzes related

mediation factors to support to the relation of Perceived Organizational Support on Job

Performance.

As we know that there is little theory or empirical observation accounts for the role of

perceived organizational support, engagement as a means through which organizations

can create competitive advantage. In particular, not many researches examine the role

of engagement as mechanism that links employee characteristic and organizational

factors to job performance. This can be explained why the situation is the same in Viet

Nam, not many research and specific study on the Perceived Organizational Support

and Job Performance. Also, almost no research and no specific study on the Perceived

Organizational Support and Job Performance in Viet Nam. The majority of

organizations in Viet Nam has not yet invested interest and improves their system of

human resource management in this specific area.

Due to this reason, the topic we choose for our thesis is studying “The Impact of

Perceived Organizational Support on Job Performance, the Mediation of Job

Engagement - A Study of Commercial Banks in Viet Nam. By this study, we will

expect to find out solution on how to improve manpower resource management in

commercial banks in Viet Nam, especially solutions relating to factors affecting the

impact of Perceived Organizational Support on Job Performance, the Mediation role of

Job Engagement in Commercial Banks in Viet Nam. For the result, the study is

expected to explain how bank community should respond to challenges of human

resource so as to get satisfactory staff’s performance and satisfactory business outcome

through the factors of Perceived Organizational Support and Job Engagement.

1.2. Purpose of the research

The purpose of this research is to study the impact of Perceived Organizational

Support on Job Performance and related mediation factors to the relation of POS–Job

Performance (JB) in commercial banks in Viet Nam, specifically:

LUAN VAN CHAT LUONG download : add [email protected]

3

- Relationship between perceived organizational support and job performance in

banks in Viet Nam.

- Investigating mediation factors that are affecting relationship between perceived

organizational support and job performance in banks in Viet Nam.

- Evaluating affect of find factors that are positively affecting job performance in

banks in Viet Nam; find factors that are positively affecting relationship between

perceived organizational support and job performance in banks in Viet Nam.

- Offer measures to improve the impact of perceived organizational support to job

performance in banks in Viet Nam, help banks to improve business performance

and enhance their ability to attract, motivating, satisfying and keep qualified

employees, encourage the employee to work in an effective way.

1.3. Questions of the research

With the above mentioned background, there arise question required to be studied so

as to have solution as follows:

1. What is the common relationship between perceived organizational support and job

performance in commercial banks in Viet Nam?

2. Which factors can be applied to improve the impact of perceived organizational

support and job performance in commercial banks in Viet Nam, which are key

factors?

3. Can the improvement of relation of perceived organizational support and job

performance promote and develop competitive advantage and performance outcome

of commercial bank in Viet Nam?

1.4. Scope of the research

Study subjects: staffs and managers of commercial banks in Vietnam.

Since HR Management is a very broad research theme, this research only focuses on

studying scientific basis to help managers understand the factors that relationship

between perceived organizational support and job performance so that they can

implement these tools in banks. This research is limited in the scope of the Impact of

LUAN VAN CHAT LUONG download : add [email protected]