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UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business


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

NGO CONG TRUONG

THE IMPACT OF
ORGANIZATIONAL FACTORS
ON EMPLOYEES PERFORMANCE
IN VIETNAMESE COMPANIES

MASTER OF BUSINESS (Honours)


SUPERVISOR: CAO HAO THI

Ho Chi Minh City Year 2012

ACKNOWLEDGEMENTS
This thesis could not be accomplished without the help, advise, support, guidance and
encouragement of many people.
I wish to express my sincere gratitude to my advisor, Dr. Cao Hao Thi, for his clear and
careful direction, guidance and correction to my thesis, especially for his enthusiasm in
answering reminding, help and support.
Secondly, I would like to thank my dear colleagues, friend and classmates for their invaluable
advice, help, encouragement and support during the time I was doing this thesis.
Last but not least, I would like to express my great thanks to my beloved wife and my family
for their support, assistance and encouragement for my study and thesis fulfillment.

ABSTRACT
Vietnam is a developing country and has the emerging market, so the employees'
performance in Vietnamese companies plays a significant role to increase the competitive
advantages. However, so far the study for employees' performance in Vietnamese companies
has not yet been thoroughly conducted. This research is carried out with the objectives to
identify the measurement scale of employees performance, identify the organizational
factors that impact on employees performance and measure the strength of relationship
between organizational factors and employees performance in the Vietnamese companies.
This research is done by a thorough literature review on concepts relating to employees'
performance from which the initial research model and hypotheses are constructed. Research
process has three steps including Generation of Items, used to assure the appropriateness of
the initial research model and its components; Pilot Survey, used to verify the initial
questionnaires and see if there should be any adjustment or modification needed; Survey and
data analysis used to collect the answer for the survey on various employees in the South
organizational factors Vietnam with the sample size of 175 for data analysis.
Number of statistical analysis techniques are used to analyze the data collected via SPSS
program. Factor analysis results in the identification of factors having significant impact to
employees' performance, and the extraction of four factor groups named as Organizational
Culture, Leadership, Communication and Working Environment. Regression analysis proved
that these four groups have statistically significant influence to the employees' performance in
Vietnamese companies, which Communication has the highest impact.
The research results can be used as a reference for the team leaders, managers, supervisors in
Vietnamese companies to enhance and better the employees' performance in the future.

ii

TABLE OF CONTENTS
ACKNOWLEDGEMENTS......................................................................................................... i
ABSTRACT

.......................................................................................................................... ii

TABLE OF CONTENTS .......................................................................................................... iii


ABBREVIATION.......................................................................................................................v
LIST OF TABLES .................................................................................................................... vi
LIST OF FIGURES ................................................................................................................. vii
LIST OF EXHIBITS ............................................................................................................... viii
LIST OF FORMULA ................................................................................................................ ix
THE IMPACT OF ORGANIZATIONAL FACTORS ON EMPLOYEES'
PERFORMANCE IN VIETNAMESE COMPANIES .............................................................1
CHAPTER 1 ...........................................................................................................................1
INTRODUCTION .....................................................................................................................1
1.1 Background .......................................................................................................................1
1.2 Research questions and objectives......................................................................................2
1.3 Research scope ..................................................................................................................3
1.4 Research contribution ........................................................................................................3
1.5 Research structure..............................................................................................................4
CHAPTER 2 ...........................................................................................................................5
LITERATURE REVIEW .........................................................................................................5
2.1 Introduction .......................................................................................................................5
2.2 Theoretical review .............................................................................................................5
2.2.1 Employees performance.................................................................................................5
2.2.2 Organizational factors .....................................................................................................7
2.2.3 Relationship between organizational factors and employees' performance .....................14
2.3 Research model ...............................................................................................................16
2.4 Hypotheses summary .......................................................................................................17
2.5 Summary .........................................................................................................................18
CHAPTER 3 .........................................................................................................................19
RESEARCH METHODOLOGY ...........................................................................................19
3.1 Introduction .....................................................................................................................19
3.2 Research design ...............................................................................................................19
3.3 Measurement scale ...........................................................................................................20
iii

3.4 Sample size ......................................................................................................................22


3.5 Sampling techniques ........................................................................................................22
3.6 Data collection methods ...................................................................................................22
3.6.1 Primary data collection .................................................................................................22
3.6.2 Secondary data collection..............................................................................................22
3.7 Data quality control .........................................................................................................23
3.7.1 Validity .........................................................................................................................23
3.7.2 Reliability .....................................................................................................................23
3.8 Data analysis method .......................................................................................................23
3.9 Summary .........................................................................................................................24
CHAPTER 4 .........................................................................................................................25
DATA ANALYSIS ..................................................................................................................25
4.1 Introduction .....................................................................................................................25
4.2 Pilot testing ......................................................................................................................25
4.3 Descriptive statistics ........................................................................................................27
4.4 Assessment and refinement of measurement scale ............................................................28
4.4.1 Refinement of measurement scale .................................................................................28
4.4.2 Exploratory Factor Analysis (EFA) ...............................................................................31
4.4.3 Refined research model and hypotheses ........................................................................35
4.5 Hypotheses testing ...........................................................................................................36
4.5.1 Regression analysis .......................................................................................................36
4.5.2 Hypotheses testing ........................................................................................................39
4.6 Summary .........................................................................................................................40
CHAPTER 5 .........................................................................................................................42
CONCLUSIONS .....................................................................................................................42
5.1 Introduction .....................................................................................................................42
5.2 Findings ...........................................................................................................................42
5.3 Managerial implications and recommendations ................................................................43
5.4 Limitations and future research direction .........................................................................45
REFERENCE .........................................................................................................................46
APPENDICES .........................................................................................................................51
APPENDIX A: QUESTIONNAIRE IN VIETNAMESE ...........................................................51
APPENDIX B: DESCRIPTIVE STATISTICS ..........................................................................57
APPENDIX C: SURVEY RESULTS ........................................................................................59
APPENDIX D: SURVEY RESULTS ........................................................................................62
APPENDIX E: SURVEY RESULTS ........................................................................................64

iv

ABBREVIATION
ORGF:

Organizational Factors

ORGC:

Organizational Culture

WENV:

Working Environment

LEAD:

Leadership

COM:

Communication

TEAM:

Teamwork

SPSS:

Statistical Package Software for Social Science

LIST OF TABLES
Table 2.1: List of variables ....................................................................................................... 8
Table 3.1: Measurement scale .................................................................................................. 21
Table 4.1: Reliability analysis of pilot survey ........................................................................... 26
Table 4.2: Descriptive statistics ................................................................................................ 28
Table 4.3: Reliability analysis of official survey ....................................................................... 30
Table 4.4: KMO and Barletts Test........................................................................................... 31
Table 4.5: Refined rotated component matrix ........................................................................... 31
Table 4.6: Reliability analysis of refined model ........................................................................ 32
Table 4.7: KMO and Barlett;s test for employees performance................................................ 32
Table 4.8: Component matrix ................................................................................................... 33
Table 4.9: Variables in Leadership ........................................................................................... 34
Table 4.10: Regression analysis of employees' performance ..................................................... 37
Table 4.11: Hypotheses summary ............................................................................................. 37

vi

LIST OF FIGURES
Figure 2.1: Research model ...................................................................................................... 17
Figure 3.1: Research process .................................................................................................... 19
Figure 4.1: Refined research model .......................................................................................... 36
Figure 4.2: Result of refined research model ............................................................................ 38

vii

LIST OF EXHIBITS
Exhibit 1.1: Vietnam competitiveness ranking, 2010-2011 ....................................................... 3

viii

LIST OF FORMULA
Formula 3.1: Cronbachs alpha coefficient ............................................................................... 23

ix

THE IMPACT OF
ORGANIZATIONAL FACTORS
ON EMPLOYEES PERFORMANCE
IN VIETNAMESE COMPANIES
CHAPTER 1
INTRODUCTION
This chapter includes five sections. The first section introduces the background of the
research, where and why this research takes place. The second and third sections introduce
research questions and objectives of research respectively while the fourth and fifth sections
introduce the scope of the research and the research structure.

1.1 Background
As Mohamad Salim Zahargier, Nimalathasan Balasundaram, (2011), employees are the most
valuable asset in any organization. A successful and highly productive business can be
achieved by engaging them in improving their performance. Not all employees are equal in
their working and they have different modes of working in that some have the highest
capability regardless of the incentive while others may have an occasional jump-start. If they
are handled effectively, the result can be greater productivity and increased employee morale.
Employees in a firm are required to generate a total commitment to desired standards of
performance to achieve a competitive advantage and improved performance for sustaining
that competitive advantage at least for a prolonged period of time, if not forever.
According to Judge & Ferris (1993), perhaps there is no human resources system more
important in companies other than performance evaluation and the ratings of employees
performance represent critical decisions that highly influence a variety of subsequent human
resources actions and outcomes.
According to General Statistics Office of Vietnam (2007) (citation by McKinsey (2012)),
Vietnams economy continues to grow strongly, with GDP in 2006 growing 8.2 percent
(IMF, 2006) and in 2007 at 8.4%. Both the industry and service sectors (which include trade,
hospitality and tourism, banking, education, real estate, and consulting services) contributes
1

40 percent to the total country GDP while the portion for agricultural sector (where 57
percent of the total population is employed) was merely 20 percent. At the end of 2005, the
population of Vietnam was 83.1 million. Seventy percent of this population is living in rural
areas versus 30 percent living in urban areas. Overall, 95 percent of the countrys population
is in the labor force.
To facilitate a transition toward higher productivity operations, Vietnam needs to replace low
wage costs with new sources of comparative advantage. Though Vietnam has clearly
established itself as an attractive investment location for foreign investors, it lags behind
many of its Asian peers in overall international competitiveness rankings. In the World
Economic Forum global competitiveness ranking, 2010-2011, Vietnams ranked 50 out of
139 countries. Many of the areas showing the largest gaps when compared with other Asian
economies are well recognized, and Vietnam has already started to address many of these
shortcomings. It showed that the employees performance of Vietnamese companies have the
low efficiency versus other Asian countries. Thats a big issue that Vietnamese companies
need to solve in the near future in order to have the high competitive with others. The
Vietnam competitiveness ranking is showed in the Exhibit 1.1.
Employees performance is an essential part for the success of any organization, and it is
affected by number of factors. The performance of employees is affected by many factors
which come from both inside and outside such as leadership, earning, promotion
opportunities,

working

environment,

employee

employer

relationship,

leadership

commitment, organizational factors and etc.

1.2 Research questions and objectives


This research is to identify, measure factors affecting employees' performance and determine
the relationship among them. The research questions are presented as:
-

Are there identifiable factors affecting employees' performance?

How is the relationship between these factors and employees' performance? Which will
influence employees performance the most?

The objectives of this research are to:


-

Identify the organizational factors that impact employees performance in Vietnamese


companies

Determine the impact of each factor on employees' performance.


2

Exhibit 1.1: Vietnam competitiveness ranking, 2010-2011


Source: World Economic Forum Global Competitiveness Report 201011;
McKinsey Global Institute analysis

1.3 Research scope


Vietnamese companies are numerous and of different types. However due to the limitations
of data availability, research funds and time, the scope of this research is therefore limited to
all kinds of Vietnamese companies in the Southern Area of Vietnam
Respondents of this research include department head, managers, team leaders and
supervisors.
The employees performance will be evaluated by the result at the end of 2011. The research
duration is six months.

1.4 Research contribution


The contribution of this research is finding the way to improve the employees' performance in
Vietnamese companies by focusing on improving the organizational factors defined in
measurement scales.

1.5 Research structure


This thesis comprises five chapters. Chapter 1 named as Introduction generally introduces
the subject area interest with defined problems, research questions, research objectives, scope
of the research and sources of information to be collected for the research. Chapter 2 named
as Literature Review summarizes concepts and theories relating to employees performance
in previous studies which are linked to this research. From such review, basic theories for
studying will be synthesized to develop an initial research model and hypotheses used for the
research. Chapter 3 named as Research Methodology introduces and reports the research
process together with the analyzed results of pilot survey. Chapter 4 named as Data
Analysis reports the analysis results of data collected from the survey. Chapter 5 named as
Conclusions discusses the main finding in Chapter 4 the implications of the result, based on
which conclusions and recommendations are provided.

CHAPTER 2
LITERATURE REVIEW
2.1 Introduction
In this chapter, theoretical background and review on previous studies are presented. This
Chapter includes three sections. The first section is theoretical review relating to critical
factors and employees performance. The second section presents the Research model. The
last section describes the hypotheses development for this research.

2.2 Theoretical review


In this part, theoretical review of employees' performance and organizational factors on
previous studies are presented. In addition, the relationship between employees' performance
and organizational factors is also presented.

2.2.1 Employees performance


According to Armstrong and Baron (1998), performance management is a strategic and
integrated approach to delivering sustained success to organizations by improving the
performance of the people who work in them and by developing the capabilities of teams and
individual contributors. It supports the rationale that people and not capital provide
organizations with a competitive advantage (Reynolds & Ablett, 1998). The purpose of
performance management is to transform the raw potential of human resource into
performance by removing intermediate barriers as well as motivating and rejuvenating the
human resource (Kandula, 2006). Competitive capacity of organization can be increased by
building strong people and effectively managing and developing people (Cabrera & Banache,
1999) which is in essence performance management.
According to Kandula (2006) the key to good performance is a strong culture. He further
maintains that due to difference in organizational culture, same strategies do not yield same
results for two organizations in the same industry and in the same location. A positive and
strong culture can make an average individual perform and achieve brilliantly whereas a
negative and weak culture may demotivate an outstanding employee to underperform and end
up with no achievement. Therefore organizational culture has an active and direct role in
performance management. Murphy and Cleveland (1995) believe that research on culture will
contribute to the understanding of performance management. Magee (2002) contends that
5

without considering the impact of organizational culture, organizational practices such as


performance management could be counterproductive because the two are interdependent and
change in one will impact the other.
Employees are the most valuable asset in any organization. A successful and highly
productive business can be achieved by engaging them in improving their performance. Not
all employees are equal in their working and they have different modes of working in that
some have the highest capability regardless of the incentive while others may have an
occasional jump-start. If they are handled effectively, the result can be greater productivity
and increased employee morale. Employees in a firm are required to generate a total
commitment to desired standards organizational factors performance to achieve a competitive
advantage and improved performance for sustaining that competitive advantage at least for a
prolonged period of time, if not forever.
According to Judge & Ferris (1993), perhaps there is no human resources system more
important in organizations other than performance evaluation and the ratings of employees
performance represent critical decisions that highly influence a variety of subsequent human
resources actions and outcomes.
Performance is the important term used in the modern organizational structure. It has been
identified from different meanings. According to process view, performance is defined as the
conversion of efforts into productivities in order to achieve some particular results.
Performance means both behavior and result. Behavior emanates from the performer and
transforms performance from abstraction into action. Not just a means to an end, the behavior
is also an outcome in itself, the product of mental and physical effort applied to the task,
which can be judged apart from the result (Armstrong, 2000).
Bates & Holton (1995) have pointed out that performance is a multidimensional construct,
the measurement of which varies depending on a variety of factors (Armstrong, 2000). A
more comprehensive view of performance is achieved if it is defined as embracing both
behavior and outcomes (Armstrong, 2000). Employees performance (EP) is an important
factor that contributes to improve the outcomes, behavior and traits of the employees. It helps
to improve the productivity of the organization.
Nickols (2003) and Fort& Voltero (2004) identify similar factor that are closely related and
affect provider performance in the workplace. They include: clear goals and job expectations,
6

suitable repertoire, immediate feedback, skills to perform, knowledge of the organizational


structure, functional feedback system, sound metal models, sufficient motivation through
self-satisfaction and incentives.
As Waleed Ahmed Abdel-Razek (2011) mentioned, job performance is one of the most
important activities that reflect both the goals and the means necessary to achieve it and
represents the specialist efficiency or reaching our the desired level of achievement in that
work. It is the effort made by the employee within the organization in order to achieve a
particular goal. The actual results that companies desire objectively measure. This study has
pointed out the effectiveness of job performance through six elements: planning, goal and
objectives, organizing, decision making, individual abilities and characteristics.

2.2.2 Organizational factors


According to Mohamad Salim Zahargier & Nimalathasan Balasundaram (2011), there are a
number of factors that may be affecting the employees performance. Each employee may
have a different impact from different things at the workplace. Their attitude and behavior
can play a vital role in their performance. Employees do not perform in a vacuum. There are
a variety of organizational factors, such as:
-

Organizational culture

Working environment

Communication

Team work

Identifying these factors can help improve recruitment, retention and organizational results.
Hence, in an attempt to fill the research gap, the present study was initiated to identify the
factors which affect employees performance in Vietnamese companies.

2.2.2.1 Organizational culture


Literature on organizational culture is reviewed using sources which specifically address
issues relevant to librarians as well as sources from other disciplines. The information
gathered is ordered thematically and includes investigations into different models used for
typologies, the affects organizational culture has on performance, the measurability of
organizational culture, and ways in which organizations can manage cultural change.
Organizational culture was once seen as how things are done around here (Drennan, 1992)

The list of variables using for these above factors is summarized in Table 2.1.

Table 2.1: List of variables


Coding
No

of

Factors

Measurement Scale

Sources

factors
EP

Employees

Waleed Ahmed Abdel-

performance

Razek ,2011
Your jobs are sufficiently well-planned before field

UTS Employee Survey

work begins

Questions

Your plans and organizes work well, coordinates


with others, and establishes appropriate priorities.
1

EP1

Planning and
Organizing

The university of Alabama


Annual employee
performance evaluation

You allocate resources effectively.

http://www.lawdepot.com/c

You are effective in managing your own time.

ontracts/employee-

You have many problems with prioritization.

evaluation-australia/

Assigns priorities exceptionally well

http://www.thehealthcaregr
oup.com/pdf/90585.pdf

Performance goals for my work group are clearly

EP2

defined

UTS Employee Survey

Goals and

Clear priorities are established for my

Questions

Objectives

department
Accomplishes tasks efficiently. Able to complete
tasks quicker as the employee gains experience.

EP3

Decision
Making

Newly developed

When decisions are made, the persons affected area

UTS Employee Survey

asked for their ideas

Questions

You able to identify issues and relationships when

http://www.lawdepot.com/c

comparing data from various sources

ontracts/employee-

You are effective in preparing reports or budgets

evaluation-australia/
http://www.samplequestion

You meet all the requirements of the job

naire.com/employeeevaluation.html
The university of Alabama

You serve as a role model

Annual employee
performance evaluation

EP4

Individual
Abilities

You often miss deadlines


You are familiar with the technical requirements of
your job

http://www.lawdepot.com/c

You can initiate, manage and bring to a close a

ontracts/employee-

completed project

evaluation-australia/

You are able to correctly use or operate the


technology required to do your job

http://www.samplequestion
You meet set deadlines on a regular basis

naire.com/employeeevaluation.html

Characteristics
Proactive at finding new tasks, as tasks are
completed, rather than waiting for a manager to
EP5
ORGF

Newly developed

give further direction.


Organizational
Factors
The organization's policies for promotion and

ORGC

advancement are always fair.

http://www.custominsight.c

Organizational

Everybody is treated fairly in this organization

om/employee-engagement-

Culture

This organization respects its employees

survey/sample-survey-

The leaders of this organization know what they

items.asp

are doing
This organization has a real interest in the welfare

UTS Employee Survey

and satisfaction of those who work here

Questions

I recommend my organization as a good place to


2

WENV

Working

work

http://www.opm.gov/surve
ys/results/Employee/2011E
mployeeSurveyResults.asp

environment

http://www.custominsight.c
The environment in this organization supports a

om/employee-engagement-

balance between work and personal life.

survey/sample-surveyitems.asp

Compared to other organizations, this organization

UTS Employee Survey

has useful method of communication.

Questions

Overall, information in this organization is


communicated well

COM

http://www.performancepro
grams.com/surveys/What_
Employers-Ask.html
http://www.custominsight.c

Communication
Information and knowledge are shared openly

om/employee-engagement-

within this organization

survey/sample-surveyitems.asp
http://www.opm.gov/surve

I have enough information to do my job well.

ys/results/Employee/2011E
mployeeSurveyResults.asp

There is emphasis on teamwork in this organization

TEAM

Teamwork

UTS Employee Survey


Questions

Management is supportive of its employees

http://www.performancepro

I get the cooperation I need from those outside my

grams.com/surveys/What_

department

Employers-Ask.html

The people I work with cooperate to get the job


done.

http://www.opm.gov/surve
ys/results/Employee/2011E
mployeeSurveyResults.asp

but has since evolved into a facet of management with a robust range of literature affording a
far deeper understanding. Scheins definition (1985) remains one of the most often used and
can be summed up as the learned product of group experience which affects the behavior of
individuals. Organizational culture is differentiated from organizational climate in that it is
not as overt. Organizational culture is also differentiated from organization structure in that
structure has more to do with the relationships between individuals in an organization.
Whilst many different models exist for the categorization of cultures, the next area to explore
is whether any one culture type is better than any other. Early research suggested that strong
cultures, or those with widely accepted beliefs within the organization, performed better than
those with a lack of shared values (Peter and Waterman, 1982; Pascale and Athos, 1986; Deal
and Kennedy, 1982). However, when culture is too strong it can lead to stagnation and a
reduced ability to adapt to changes in the environment (Cloke and Goldsmith, 2002). Schein
(1985) actually predicts in Organizational Culture and Leadership that the culture of the
future would be the one that heavily promoted active learning and training. For librarians,
before the idea of what constitutes the best culture can even be considered, the idea of what is
meant by performance must be addressed. Early papers on the link between culture and
performance show that the culture of libraries was effectively one without goals (DuMont,
1980). This prompted Martell (1989) to advocate libraries adopting a business model in order
to increase productivity. However, a business model is too incongruent since performance for
commercial organizations is often so tied to profits. For libraries, performance is best related
to service quality. Holloway (2004) makes a case for the use of LibQUAL+ or the Balanced
Scorecard to measure the service quality, and thus performance, of academic libraries. Edgar
(2006) is a little more cautious, emphasizing the need for libraries to balance LibQUAL+
results with other factors which affect them uniquely. However, one problem concerning
cultures effect on performance remains. Even if performance is clearly defined and links are
established, organizations do not exist in a vacuum. Amidst the overall organizational culture
are a series of subcultures and demographic cultures, which can cause members to experience
a limited adherence to the dominant culture (Tsui, 1992).
Organizational culture and performance relation has been examined by many researchers
(Ogbonna & Harris, 2000; Rousseau, 1990; Kotter & Heskett, 1992; Marcoulides & Heck,
1993), not much research has been done on organizational culture as a contextual factor of
performance management (Magee, 2002). Therefore the second purpose of this paper is to
determine the relationship between components of organizational culture and performance
10

management practices, a pervasive human resource development and management practice.


This study is indented to fill these gaps.
H1: There is a positive relationship between Organizational Culture and Employees
performance.

2.2.2.2 Working Environment


Many enterprises limit their productivity enhancement of employees to the acquisition of
skills. The type of work environment in which employees operate determines the way in
which such enterprises prosper. According to Akinyele (2010), about 80% of productivity
problems reside in the work environment of organizations. Business is full of risks and
uncertainties and the ability of any organization to respond successfully to the challenges
posed by the present dynamic nature of economic situations will largely depend on how well
the organization can effectively and efficiently utilize the human resources at its disposal. It
is a generally accepted fact that the success of any business organization will largely depend
upon the effective and meaningful utilization of its financial and physical resources. The
performance of a corporate organization, which determines its survival and growth, depends
to a large extent on the productivity of its workforce. Yesufu (2000) asserted that the wealth
of the nation as well as socio-economic well-being of its people depends on the effectiveness
and efficiency of its various sub-components. However, labour is generally regarded as the
most dynamic of all the factors that are employed for the creation of wealth, having the
potential to energize and serve as catalyst to all the other resources.
Conducive work environment ensures the well-being of employees which invariably will
enable them exert themselves to their roles with all vigour that may translate to higher
productivity (Akinyele, 2007).
The need to provide a safe work environment for employees has had a long history in human
resource management. Spector and Beer (1994) acknowledged that work systems cannot only
affect commitment, competence, cost effectiveness and congruence but also have long term
consequence for workers well-being; there are some evidences to indicate that work systems
designs may have effects on physical health, mental health and longevity of life itself.
Conducive work environment ensures the well-being of employees which invariably will
enable them exert themselves to their roles with all vigour that may translate to higher
productivity (Akinyele, 2007).

11

Kohun (1992), defines work environment as an entirely which comprises the totality of
forces, actions and other influential factors that are currently and, or potentially contending
with the employees activities and performance. Work environment is the sum of the
interrelationship that exists within the employees and the employees and the environment in
which the employees work. Brenner (2004) was of the opinion that the ability to share
knowledge throughout organizations depends on how the work environment is designed to
enable organizations to utilize work environment as if it were an asset. This helps
organizations to improve effectiveness and allow employees to benefit from collective
knowledge. In addition, he argued that work environment designed to suit employees
satisfaction and free flow of exchange of ideas is a better medium of motivating employees
towards higher productivity. However, work environment when appropriately designed,
motivates employees toward higher productivity.
Work environment, according to Opperman (2002), is a composite of three major subenvironments via: the technical environment, the human environment and the organizational
environment. Technical environment refers to tools, equipment, technological infrastructure
and other physical or technical elements. The technical environment creates elements that
enable employees perform their respective responsibilities and activities.
The human environment refers to peers, others with whom employees relates, team and work
groups, interactional issues, the leadership and management. This environment is designed in
such a way that encourages informal interaction in the work place so that the opportunity to
share knowledge and exchange ideas could be enhanced. This is a basis to attain maximum
productivity. Organizational environment include systems, procedures, practices, values and
philosophies. Management has control over organizational environment. Measurement
system where people are rewarded on quantity, hence workers will have little interest in
helping those workers who are trying to improve quality. Thus, issues of organizational
environment influence employees productivity.
It is generally agreed that the more manager can answer the question of what motivates their
employees accurately, the more effective they will be at enhancing performance and
advancing the notion of organizational accountability (Chernis & Kane, 2004). Lambart
(2005) opines that labour productivity is rarely measured directly but inferred from changes
in employees attitude and behaviour such as organization commitment, organizational
citizenship behaviour and job satisfaction. An effective work environment management
12

entails making work environment attractive, creative, comfortable, satisfactory and


motivating to employees so as to give employees a sense of pride and purpose in what they
do (Brenner, 2004).
H2:

There is a positive relationship between Working Environment and Employees

performance.

2.2.2.3 Communication
Communication skills are the foundation for success. The ability to communicate effectively
and with influence will determine the success in transmitting the message (Palazzolo, 2008).
Communication is the exchange and flow of information and ideas from one person to
another. It involves a sender transmitting an idea to a receiver. Effective communication
occurs only if the receiver understands the exact information or idea that the sender intended
to transmit. Many of problems that occur in an organization are the direct result of people
failing to communicate. Leaders of organizations who keep everything inside or cant
communicate a message leave individuals to their devices to try and figure out what they
may, or may not want. This is a failure of leadership and communication (Baldoni, 2003).
Faulty communication causes the most problems. It leads to confusion and can cause a good
plan to fail.
The probable future impact on the organization will continue to be detrimental and further
distance the relations between line and staff personnel if communication barriers are not
identified and alternatives for internal organizational communications cannot be evaluated
and implemented. In hundreds of surveys at different companies, employees cite poor
communications as the greatest source of wasted time, effort and material as well as internal
and external conflict (Ladew, 1998, p.101). Organizational mistrust, decreased employee
morale, lack of production, and quality of service being provided could all be contributed to
ongoing poor internal communications if not corrected or improved upon.
H3: There is a positive relationship between Communication and Employees performance.

2.2.2.4 Teamwork
Teamwork is defined by Scarnati (2001, p. 5) as a cooperative process that allows ordinary
people to achieve extraordinary results. Harris & Harris (1996) also explain that a team has a
common goal or purpose where team members can develop effective, mutual relationships to
achieve team goals. Teamwork replies upon individuals working together in a cooperative
13

environment to achieve common team goals through sharing knowledge and skills. The
literature consistently highlights that one of the essential elements of a team is its focus
toward a common goal and a clear purpose (Fisher, Hunter, & Macrosson, 1997; Johnson &
Johnson, 1995, 1999; Parker, 1990; Harris & Harris, 1996). Teams are an integral part of
many organizations and should be incorporated as part of the delivery of tertiary units.
Successful teamwork relies upon synergism existing between all team members creating an
environment where they are all willing to contribute and participate in order to promote and
nurture a positive, effective team environment. Team members must be flexible enough to
adapt to cooperative working environments where goals are achieved through collaboration
and social interdependence rather than individualized, competitive goals (Luca & Tarricone,
2001).
J. Cannon-Bowers et al. divide human teamwork into three dimensions: cognitions, skills,
and attitudes. The cognition or knowledge category includes information about the task such
as a team mission, objectives, norms, problem models, and resources. Teamwork skills
include behaviors such as adaptability, performance monitoring, leadership, communication
patterns, and interpersonal coordination. Attitudes measure the participants feelings about
the team: team cohesion, mutual trust, and importance of teamwork.
H4: There is a positive relationship between Teamwork and Employees performance.

2.2.3 Relationship

between

organizational

factors

and

employees'

performance
An organization is a set of elements in interaction, organized level and decision making units
(Martinelli, 2001). Identification of these elements has always been one of the most important
issues facing organizational researchers. Richard L.Daft categorized contextual dimension of
organization including size, technology, environment, aims, strategy, and culture
(Gholampourrad, 2003). There has been a large volume of studies that examine how the
fitness between organizational contexts explains variances in organizational performance.
What is lacking in existing literature is an understanding of the intervening mechanism that
explains the path of the influence from organizational context to organizational effectiveness.
Knowledge management plays a potentially mediating role in connecting organizational
context with effectiveness (Zheng et al., 2010). Many researchers have emphasized three
major factors for managing knowledge: enablers, processes, and organizational performance.
Knowledge management enablers (or influencing factors) are organizational mechanism for
14

fostering knowledge consistently. Enablers, in fact, are some organizational elements that
influence knowledge management processes. Knowledge process can be thought of as a
structured coordination for managing knowledge effectively. Typically knowledge processes
include activities such as creation, sharing, storage, and usage that direst knowledge
throughout the organization and the third factor is organizational performance (Lee and Choi,
2003).
Every organization has been established with certain objectives to achieve. These objectives
can be achieved by utilizing the resources like men, machines, materials and money. All
these resources are important but out of these the manpower is the most important. It plays an
important role in performing tasks for accomplishing the goals. The question arises that how
these resources are utilizes by manpower. Further, the business environment is changing
drastically. The environmental factors are uncontrollable. These are beyond control of
management of the firms. One has to adjust with the external factors to do the business in the
market. Every environmental factor like social, cultural, legal, political, economic,
technology and competition gets changed very fast. For effective working the knowledge of
these factors is must otherwise the plan will misfire. In present situation it is difficult to
predict about anything. It is uncertain to say that what will happen tomorrow. Again the need
for highly skilled and dedicated manpower is felt who can give the best output. Nowadays the
markets are also very competitive and there is cut throat competition. For every organization
it is difficult to start, survive, stabilize and excel in the business. The firm that gets the
advantage over other competitors through their talented and dedicated manpower can take the
lead in the market. The contribution of employees on job is the most important factor for
development and excellence in business. The performance of employees on different jobs in
close coordination is needed for success of the unit. Employees are performing different jobs
in an organization depending upon the nature of the organization. They mainly perform tasks
like production, storage, manufacturing, transportation, marketing, purchasing, distribution,
promotion of business, finance and accounting, human resource, research and public
relations. All these activities are inter-related to achieve the targets. These are to be
performed by the employees properly so they can give their best output at the job. This will
have great impact on the total production, sales, profit, progress and market position of the
company in the market. Various factors like skills, training, motivation, dedication, welfare,
management policies, fringe benefits, salary and packages, promotion, communication etc.
are responsible to encourage the people to work sincerely and give their best output. The
15

importance of employees performance must be understood by the management and sincere


efforts must be put in that direction. The management of the company taking timely steps in
that direction will be in position to develop and motivate the people to do so. Finally the
company may take the lead the market and grab the opportunities available in the market.
In summary, this part presented the theoretical review of employees' performance,
organizational factors and the relationship between employees' performance and
organizational factors on previous studies are presented.
Most previous studies consider that organizational factors should be based on Organizational
Culture, Working Environment, Communication and Teamwork. Many studies in the field
people management have presented list of organizational factors.
There is limited research on the strength of the relationship between organizational factors
and employees' performance, and the intercorrelations among these factors. There are even
less analysis on the causal effects between these factors and employees' performance,
especially in Vietnamese companies.
Based on the theoretical review, there are four hypotheses developed and the research model
will be developed and presented in the next part.

2.3 Research model


In order to access how the influence of critical factors to the employees performance in
Vietnamese companies, three factors including Individual Related Factors, Job Related
Factors, Organization Related Factors will be used as potential predictors of employees
performance as presented in Figure 2.1.
From the theoretical review, the previous session has introduced the critical factors identified
in previous study. This session will present a Research framework that will be used to explore
the direct relationship between the critical factors and employees performance in
Vietnamese companies. The contents mentioned below are research hypotheses based on
study model. To implement the study various dependent, independent and moderating
variables will be defined for this model. The independent variable is critical factors and the
dependent variable is employees performance.
These four variables have been chosen because we want to see the relationship between them.
For example, if the critical factors are implemented then does they affect to the employees

16

performance. To study these four variables, their tools are also identified through which the
relationship between the two would be studied. It is evident from the existing literature that
there are identified variables which influence the employees performance. The research
framework model is mentioned in Figure 2.1.

2.4 Hypotheses summary


With corresponding hypotheses starting about the relationship between critical factors and the
employees performance as following:
H1: There is a positive relationship between Organizational Culture and Employees
performance.
H2:

There is a positive relationship between Working Environment and Employees

performance.
H3: There is a positive relationship between Communication and Employees performance.
H4: There is a positive relationship between Teamwork and Employees performance.

Organizational Factors
ORGC: Organizational Culture

H1+
EP: Employees
performance

H2+

WENV: Working Environment

H3+
COM: Communication

H4+
TEAM: Teamwork

Figure 2.1: Research model

17

2.5 Summary
In order to determine the organizational factors that affect the employees' performance, a
number of factors have been proposed to be potential predictors. These factors are
Organizational Culture, Working Environment, Communication and Teamwork. The research
model that takes into account the direct relationships between the organizational factors and
employees' performance was developed.
This chapter presented a summary of definitions and perceptions in literature for the concepts
of employees' performance. Given there has no previous research conducted to determine the
organizational factors or identify the set of criteria used to measure the employees'
performance in Vietnamese companies. Based on the findings of this chapter on
organizational factors, this research will attempt to find out the set of organizational factors
and set of employees' performance in Vietnamese companies as well as measure the
relationship between them.
The research methodology developed to test the hypotheses derived from the proposed
research model is presented in the next chapter.

18

CHAPTER 3
RESEARCH METHODOLOGY
3.1 Introduction
This chapter will introduce research methodology that is used to test the Research framework
developed in previous session. It will present research design, how to generate surveyed
questionnaires, how to survey for research data, how to access this data set to know if it is
reliable and analyze the data from pilot survey by reliability and factor analysis and how to
conduct the final survey to collect the data for analysis

3.2 Research design


Research process includes three steps as illustrated in Figure 3.1.

Generation of Items
Research
Objectives

Literature
Review

In-depth
Interviews

Revision

First Draft
Questionnaire

Pilot survey
Pilot Survey

Reliability
Analysis

Factor
Analysis

Final Questionnaire

Survey and data analysis


Official
Survey

Reliability
Analysis

Factor
Analysis

Regression
Analysis

Conclusions &
Recommendations

Figure 3.1: Research process


Step 1: Generation of items
The purpose of this step is to create a set of draft questionnaires for pilot survey to measure
independent and dependent variables which were defined in research model. This step is used
to make sure that the initial Research framework, its variables and the concepts regarding the
critical factors developed in previous session are suitable with Vietnamese companies.
19

Step 2: Pilot survey


The purpose of pilot survey is to preliminarily test the reliability of the factors used, the
logicality and suitability of the questionnaires and see if there should be any modification or
improvement needed. Reliability analysis was used to test for the consistency of the
measurement.
The pilot survey is mainly conducted by qualitative method with group discussion technique
via the conversations with employees.
Step 3: Official survey and Data analysis
In this step, the official questionnaire is finalized following the findings from the pilot survey.
The official questionnaire is made in both English and Vietnamese version with Likert scale
of 5 points given the targeted respondents are all employees levels who should have a deep
view on the questions asked. The measures are presented in Table 2.1. The measurement
scale of indicators is Likert scale from 1 to 5 such as strongly disagree, disagree, neutral,
agree, and strongly agree.
The questionnaire was designed to study the impact of critical factors on employees
performance in Vietnamese companies. The questionnaire included a total of 20 questions
and was designed on Likert scale type from 1 to 5 such as strongly disagree, disagree, neutral,
agree, and strongly agree.

3.3 Measurement scale


All the factors from the model in this research are original from many previous studies with
citing. Based on the literature review briefing, the most appreciate measurement scale is a
multivariate scale applied for this research.
In summary, based on the previous research and after refinement, 20 variables are selected
and grouped according to their characteristic, namely: individual related factors, job related
factors, organizational related factors and employees performance. The list of variables and
measurement scale using for this research is summarized in Table 3.1

20

Table 3.1: Measurement scale


Codin
No

Coding

g of

Factors

factors

of

ORGC 1

ORGC

Measurement Scale

Sources

variables
The Organization's policies for promotion and
advancement are always fair.

http://www.custominsight.c

Organization

ORGC 2

Everybody is treated fairly in this organization

om/employee-engagement-

al Culture

ORGC 3

This organization respects its employees

survey/sample-survey-

The leaders of this organization know what they are

items.asp

ORGC 4

doing
WENV 1

This organization has a real interest in the welfare and

UTS Employee Survey

satisfaction of those who work here

Questions
http://www.opm.gov/survey

WENV

Working

WENV 2

I recommend my organization as a good place to work

s/results/Employee/2011Em
ployeeSurveyResults.asp

Environment

http://www.custominsight.c
WENV 3

The environment in this organization supports a

om/employee-engagement-

balance between work and personal life.

survey/sample-surveyitems.asp

COM 1

COM 2

Compared to other organizations, this organization has

UTS Employee Survey

useful method of communication.

Questions

Overall, information in this organization is


communicated well

COM

Communicati

http://www.performancepro
grams.com/surveys/What_
Employers-Ask.html
http://www.custominsight.c

on
COM 3

Information and knowledge are shared openly within

om/employee-engagement-

this organization

survey/sample-surveyitems.asp
http://www.opm.gov/survey

COM 4

I have enough information to do my job well.

s/results/Employee/2011Em
ployeeSurveyResults.asp

TEAM

Teamwork

UTS Employee Survey

TEAM 1

There is emphasis on teamwork in this organization

TEAM 2

Management is supportive of its employees

http://www.performancepro

I get the cooperation I need from those outside my

grams.com/surveys/What_

department

Employers-Ask.html

TEAM 3

Questions

http://www.opm.gov/survey
TEAM 4

The people I work with cooperate to get the job done.

EP 1

I believe I am an effective employee

EP 2

I am happy with the quality of my work output

EP 3

My manager believes I am an efficient worker

s/results/Employee/2011Em
ployeeSurveyResults.asp

Employees
5

EP

Performance

My colleagues believe I am a very productive


EP 4

EP 5

employee
Accomplishes tasks efficiently. Able to complete
tasks quicker as the employee gains experience.

21

Rego and Cunhan (2008)

3.4 Sample size


The sample size is determined according to technique of multi variable analysis. Factor
analysis and multi regression methods are used for this research. In factor analysis, the
sample size should be as large as possible with the minimum should be at least five times as
many observations as the number of factors to be analyzed and preferably not less than 100.
As there are 20 variables used for the factors analysis, the minimum sample size should be
100 (20x5). In addition, for the multi regression model, minimum sample size should be
equal to n=50+8m, which m are number of independent variables (Tabachnick and Fidell,
1996). With the initial Research model, there are 3 independent variables; minimum sample
size for this should be 170 (50+8x15). In light of the above two requirements, this research
choose the biggest sample size. Therefore, sample size used for this research should be 170.

3.5 Sampling techniques


In quantitative researches, it is believed that if the sample is carefully obtained, it is then
possible to generalize the results to the whole population as suggested by. The researcher
used simple random sampling techniques where for each company, the speaker was contacted
first and lists of permanent employees were obtained through which employees in different
departments were randomly chosen.

3.6 Data collection methods


3.6.1 Primary data collection
The primary data collection method explored the originality of data through gathering
information relevant to the study. Primary data was obtained from respondents in Vietnamese
companies. By using of the questionnaires and interview manuals, the research gathered data
from the respondents which in fact were the primary concern of this survey de sign approach.

3.6.2 Secondary data collection


Secondary data collection explored methods supplementary to the above method where data
was obtained from Vietnamese companies records (obtained from heads of various
departments and speakers), dissertations, text books, the internet and other materials (such as
journals, newspapers, etc.) as found useful to the study. This kind of data collection method
was also important to the study especially in the literature review and session five of this
study.

22

3.7 Data quality control


This section was important in assuring the validity and reliability of the instruments and thus
controlling data generated through questionnaires and interviews.

3.7.1 Validity
After collecting data from main survey, the Exploratory Factor Analysis (EFA) method was
applied to explore the inter relationship between the variables.

Barletts test was smaller 0.05 (p<0.05)

The KMO index was greater than 0.6 (the range from 0 to 1).

3.7.2 Reliability
To assess the internal consistency of the data used for the survey, Cronbachs alpha, and the
item-to-total Correlation coefficients will be used to reject the inappropriate item. The
formula for the standardized Cronbachs alpha is presented in Formula 3.1. In that, N is equal
to the number of items, c-bar is the average inter-item covariance among the items and v-bar
equals the average variance. From this formula, if increasing the number of items, alpha will
be increased. Additionally, alpha will be low if the average inter-item correlation is low.
Conversely, Cronbachs alpha will increase if the average inter-item correlation increases. In
most Social Science research situations, Cronbachs alpha of 0.60 or higher is considered
acceptable.
Formula 3.1: Cronbachs alpha coefficient

3.8 Data analysis method


The technique used to analyze data was by use of SPSS (statistical package for social
scientists) however personal coding and categorizing data was done manually. Data analysis
was conducted on respondents data in two perspectives: Descriptive data analysis and
inferential data analysis. Descriptive statistics provides us with the techniques of numerically
and graphically presenting information that gives an overall picture of the data collected. The
researcher used Pearsons correlation co-efficient calculation after data was aggregated to
turn categorical data to numerical representation that required numerical methods from such,
23

descriptive statistics, frequency tables, graphics, and correlation Tables. Were developed to
help describe the data gathered. Inferential statistics were obtained and data was present in
descriptive statistics of each objective where percentages were used to infer to the data
collected. Techniques were applied such as histogram curves, to numerical data making
inferences or predictions to the population based on data collected from only part of the
population. This meant that the researcher drew generalizations based on authentic data
coupled with interviews (qualitative data) and personal observations made by the researcher.

3.9 Summary
This chapter presented the research methodology for conducting the study. There are three
main phases of the study. The first phase was conducted via literature review and interviews.
The purpose of this phase was to assess, on a preliminary basis, the content and applicability
of each measure was specified based on the literature. Also, the interviews helped identify
key informants for the research. Second, a pilot survey was conducted with 34 potential
respondents came from Vietnamese companies in Ho Chi Minh City, to refine the measures.
Most of the constructs used were measured by multiple-items and were refined via reliability
analysis (item-total correlation and Cronbachs alpha) and factor analysis. Modification of the
measures after the refining process was also undertaken. The results of the preliminary
assessment revealed that the scales used to measure the theoretical constructs in the study had
acceptable levels of reliability. The next chapters will present the data analysis of main
survey and explain the statistical results of the hypothesis testing.

24

CHAPTER 4
DATA ANALYSIS
4.1 Introduction
This chapter will present the assessment of measurement scales and result of hypotheses
testing about organizational factors on employees performance in Vietnamese companies in
HCMC. The content of this chapter is as follows:
-

Pilot testing

Sample descriptive statistics

Assessment and refinement of measurement scale

Hypotheses testing

Chapter summary

4.2 Pilot testing


Before starting with the official survey, a pre-tested on a small sample (n=34) of randomly
selected employees in order to establish a high degree of reliability of the measurement
scales.
In this part, the measurement scales are assessed and refined by Cronbachs alpha to test the
reliability of measurement scales
The Cronbachs alpha test is carried out in order to test the reliability of the measurement
scales. The condition of each scales are over 0.6 is acceptable for the reliability of them.
Besides, in order to increase the Cronbachs alpha of the scales, the variables which the itemtotal correlation are smaller than 0.3 are considered to be deleted.

Reliability of Organizational Culture


As the result of Cronbachs Alpha of Organizational Culture is shown in the Table 4.1 above,
it is (0.816) which is larger than 0.6, and all the Corrected Item-Total Correlation in the Table
4.1 are larger than 0.3. Therefore, these variables are accepted for Exploratory Factor
Analysis (EFA) later.

25

Table 4.1: Reliability analysis of pilot survey


Variables

Scale Mean if

Scale Variance

Corrected Item-

Cronbach's Alpha

Item Deleted

if Item Deleted

Total Correlation

if Item Deleted

Organization culture ORGC (4 items). Cronbachs Alpha=0.816


ORGC 1

10.0588

4.724

.771

.713

ORGC 2

10.2941

4.396

.753

.711

ORGC 3

9.6471

4.538

.658

.758

ORGC 4

9.4412

5.466

.407

.872

Working environment WENV (3 items). Cronbachs Alpha=0.722


WENV 1

6.5000

2.379

.625

.564

WENV 2

6.5588

2.375

.486

.699

WENV 3

6.7059

1.850

.552

.642

Communication COM (4 items). Cronbachs Alpha=0.795


COM 1

9.7941

5.381

.578

.758

COM 2

9.7353

4.867

.609

.745

COM 3

9.7353

5.291

.585

.754

COM 4

9.7353

5.291

.662

.720

Team work TEAM (4 items). Cronbachs Alpha=0.739


TEAM 1

10.0000

4.000

.521

.686

TEAM 2

10.0000

3.333

.608

.633

TEAM 3

10.3529

3.872

.562

.664

TEAM 4

9.9706

4.090

.444

.728

Employees' performance EP (5 items). Cronbachs Alpha=0.865


EP 1

13.8824

6.107

.652

.846

EP 2

13.8824

5.925

.709

.831

EP 3

13.9706

6.272

.718

.830

EP 4

14.0000

6.061

.684

.837

EP 5

13.6765

6.286

.672

.840

26

Reliability of Working Environment


As the result of Cronbachs Alpha of Working Environment is shown in the Table 4.1 above,
it is (0.722) which is larger than 0.6, and all the Corrected Item-Total Correlation in the Table
4.1 are larger than 0.3. Therefore, these variables are accepted for Exploratory Factor
Analysis (EFA) later.
Reliability of Communication
As the result of Cronbachs Alpha of Working Environment is shown in the Table 4.1 above,
it is (0.795) which is larger than 0.6, and all the Corrected Item-Total Correlation in the Table
4.1 are larger than 0.3. Therefore, these variables are accepted for Exploratory Factor
Analysis (EFA) later.
Reliability of Teamwork
As the result of Cronbachs Alpha of Team Work is shown in the Table 4.1 above, it is
(0.739) which is larger than 0.6, and all the Corrected Item-Total Correlation in the Table 4.1
are larger than 0.3. Therefore, these variables are accepted for Exploratory Factor Analysis
(EFA) later.
Reliability of Employees' Performance
As the result of Cronbachs Alpha of Employees Performance is shown in the Table 4.1
above, it is (0.865) which is larger than 0.6, and all the Corrected Item-Total Correlation in
the Table 4.1 are larger than 0.3. Therefore, these variables are accepted for Exploratory
Factor Analysis (EFA) later.
With all the results above, there was the high reliability, and the pilot testing had a very good
result. Therefore, the author can continue with the official survey.

4.3 Descriptive statistics


200 questionnaires were sent to interviewees who are employees and managers. There were
175 replies.
In term of gender of this survey, 52% of respondents are male and 48% of respondents are
female. The results are in the Table 4.2.
Out of 175 respondents in term of age, there are 108 respondents (61.7%) are from 25 to 30
years old, while 53 respondents (30.3%) from 30 to 40 years old and 14 respondents (8%) are
less than 25 years old. The number is in the Table 4.2.
27

In the percentage of ownership of the respondents, the number of respondents who are from
the Private Company is 44%, Foreign Investment Company is 22.9%, and State-Owned
Company is 20.6%. Otherwise, 9.7% of the respondents are from Multi-national Company
and 2.9% are Joint-Stock Company. The results are in the Table 4.2.
In the percentage of job level of the respondents, the number of respondents who Staff is
32%, Team Leader is 28%, and Manager is 24%. Otherwise, 13.7% of the respondents are
Directors and 2.3% are Assistants Director. The results are in the Table 4.2.
Table 4.2 Descriptive statistics
Description
Gender

Age

Enterprise Ownership

Frequency

Female

56

32.0

Male

119

68.0

From 25 to 30 years old

108

61.7

From 30 to 40 years old

53

30.3

Less than 25 years old

14

8.0

Foreign Investment

40

22.9

2.9

Multi-national

17

9.7

Private

77

44.0

State-owned

36

20.6

2.3

Director

24

13.7

Manager

42

24.0

Staff

56

32.0

Team Leader

49

28.0

Joint-stock

Job Level

Percent

Assistant Director

4.4 Assessment and refinement of measurement scale


4.4.1 Refinement of measurement scale
In this part of this research, the measurement scales are assessed and refined by:
-

Cronbachs alpha to test the reliability of measurement scales

Exploratory factor analysis (EFA) to test the validity of measurement scales

Firstly, the Cronbachs alpha test is carried out in order to test the reliability of the
measurement scales. The condition of each scales are over 0.6 is acceptable for the reliability
28

of them. Besides, in order to increase the Cronbachs alpha of the scales, the variables which
the item-total correlation are smaller than 0.3 are considered to be deleted.
Secondly, the EFA is also conducted to test the validity of the measurement scales. The
principal component extraction method is used the varimax rotation method. The criteria for
the validity of EFA method for measurement scales are the Eigenvalue is greater than 1 and
the total variable explained is over 50%.
Reliability of Organizational Culture
As the result of Cronbachs Alpha of Organizational Culture is shown in the Table 4.3, it is
(0.791) which is larger than 0.6, and all the Corrected Item-Total Correlation in the Table 4.3
are larger than 0.3. Therefore, these variables are accepted for Exploratory Factor Analysis
(EFA) later.
Reliability of Working Environment
As the result of Cronbachs Alpha of Working Environment is shown in the Table 4.3, it is
(0.674) which is larger than 0.6, and all the Corrected Item-Total Correlation in the Table 4.3
are larger than 0.3. Therefore, these variables are accepted for Exploratory Factor Analysis
(EFA) later.
Reliability of Communication
As the result of Cronbachs Alpha of Working Environment is shown in the Table 4.3, it is
(0.782) which is larger than 0.6, and all the Corrected Item-Total Correlation in the Table 4.3
are larger than 0.3. Therefore, these variables are accepted for Exploratory Factor Analysis
(EFA) later.
Reliability of Teamwork
As the result of Cronbachs Alpha of Team Work is shown in the Table 4.3, it is (0.699)
which is larger than 0.6, and all the Corrected Item-Total Correlation in the Table 4.3 are
larger than 0.3. Therefore, these variables are accepted for Exploratory Factor Analysis
(EFA) later.
Reliability of Employees Performance
As the result of Cronbachs Alpha of Employees Performance is shown in the Table 4.3, it is
(0.855) which is larger than 0.6, and all the Corrected Item-Total Correlation in the Table 4.3
are larger than 0.3. Therefore, these variables are accepted for Exploratory Factor Analysis
(EFA) later.
29

Table 4.3: Reliability analysis of official survey


Variables

Scale Mean if Scale Variance if

Corrected Item-

Cronbach's Alpha

Item Deleted

Total Correlation

if Item Deleted

Item Deleted

Organization culture ORGC (4 items). Cronbachs Alpha=0.791


ORGC 1

10.0571

4.479

.704

.688

ORGC 2

10.2571

4.215

.756

.657

ORGC 3

9.6000

4.379

.662

.706

ORGC 4

9.3429

5.514

.325

.869

Working environment WENV (3 items). Cronbachs Alpha=0.674


WENV 1

6.5143

2.263

.625

.443

WENV 2

6.6286

2.419

.385

.703

WENV 3

6.6857

1.768

.498

.585

Communication COM (4 items). Cronbachs Alpha=0.782


COM 1

9.7714

5.120

.562

.742

COM 2

9.7143

4.631

.596

.727

COM 3

9.7714

5.062

.546

.751

COM 4

9.7429

5.020

.660

.697

Team work TEAM (4 items). Cronbachs Alpha=0.699


TEAM 1

10.0514

3.716

.498

.627

TEAM 2

10.0514

3.061

.600

.553

TEAM 3

10.4000

3.747

.425

.670

TEAM 4

10.0229

3.816

.419

.674

Employees' performance EP (5 items). Cronbachs Alpha=0.855


EP 1

13.8857

5.791

.618

.840

EP 2

13.8571

5.640

.711

.814

EP 3

13.9143

6.056

.684

.823

EP 4

13.9714

5.775

.686

.821

EP 5

13.6286

6.039

.657

.829

30

4.4.2 Exploratory Factor Analysis (EFA)


4.4.2.1The independent factors
After refining the reliability of measurement scale, the Exploratory Factor Analysis (EFA)
method conducted to test the validity of the measurement of scales.
The EFA testing has showed the result that KMO values of all the independent factors are
greater than 0.6 at the Bartletts Test Significance of .000 (which is smaller than 0.05). So,
the extracted variance meets the requirement of EFA testing. The results are in the Table 4.4.
Table 4.4: KMO and Barletts Test
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy.
Bartlett's Test of Sphericity

.666

Approx. Chi-Square

1671.182

df

105

Sig.

.000

With the eigenvalues of four factors is greater than 1, the result of this has showed that the
factors in this construction were as what the hypotheses assumed. All the eigenvalues in the
listed are above 1 (5.805, 2.031, 1.611, 1.056). Besides, the percentage of cumulative has
explained of the 70.022% of the variances. The results are in the Appendix C.
Table 4.5: Refined rotated component matrix
1
ORGC 1
ORGC 2
ORGC 3
TEAM 3
ORGC 4
COM 2
TEAM 2
COM 3
COM 4
TEAM 4
WENV 1
WENV 3

Component
3

0.886
0.843
0.8
0.811
0.715
0.765
0.619
0.603
0.847
0.756
0.897
0.784

Extraction Method: Principal Component Analysis.


Rotation Method: Varimax with Kaiser Normalization
Rotation converged in 5 iterations.

31

Table 4.6: Reliability analysis of refined model


Variables

Scale Mean if

Scale Variance

Corrected Item-

Cronbach's Alpha

Item Deleted

if Item Deleted

Total Correlation

if Item Deleted

Organizational Culture (4 items). Cronbachs Alpha=.891


ORGC 1

9.4229

5.050

.860

.821

ORGC 2

9.6229

5.179

.771

.855

ORGC 3

8.9657

5.344

.684

.889

TEAM 3

9.3429

5.514

.733

.869

Leadership (3 items). Cronbachs Alpha=.732


ORGC 4

6.7429

2.721

.550

.652

COM 2

7.2000

2.517

.523

.690

TEAM 2

7.0286

2.614

.598

.597

Communication (3 items). Cronbachs Alpha=.758


COM 3

6.7429

2.204

.521

.763

COM 4

6.7143

1.929

.800

.424

TEAM 4

6.4857

2.608

.479

.791

Working Environment (2 items). Cronbachs Alpha=.703


WENV 1

3.2286

1.039

.574

WENV 3

3.4000

.529

.574

Table 4.7: KMO and Barlett;s test for employees performance


KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy.
Bartlett's Test of Sphericity

Approx. Chi-Square
df

.754
412.740
10

Sig.

.000

32

Table 4.8: Component matrix


Component
1
EP 1

.750

EP 2

.820

EP 3

.812

EP 4

.815

EP 5

.790

Extraction Method: Principal Component


Analysis.
a. 1 component extracted.

Otherwise, in the Rotated component matrix, the loading of the variables on the four
independent factors were chosen. This determined that the nature of the underlying latent
variables that presented by each component. The results are in the Table 4.5.
The value of each variable in each component should be more than 0.4 to show a strong
correlation in that component and higher than other values more than 0.25.
After EFA, 3 variables were deleted because they were not qualified from the criteria of EFA
testing (WENV 2, COM 1, TEAM 1). The scales reduced from 15 items to 12 items and
regroup into 4 groups as the Table 4.5. The results are in the Table 4.5.
There are several changes in factors. This means the perception of interviewees about some
variables is different from the hypotheses of the study and some previous theory. However,
this change reflects the thought and perception of the respondents about the factors actually
influence employees performance. After EFA, variables in organizational factors are
grouped again as below:
Component 1: Organizational Culture (ORGC): ORGC 1, ORGC 2, ORGC 3, TEAM 3.
Component 2: Leadership (LEAD): ORGC 4, COM 2, TEAM 2.
Component 3: Communication (COM): COM 3, COM 4, TEAM 4.
Component 4: Working Environment (WENV): WENV 1, WENV 3.
After EFA, three variables in Teamwork factors were divided into 3 components, therefore
Teamwork factor was deleted. There are new component (Component 2) that had the 3
variables (ORGC 4, COM 2, TEAM 2), and named is Leadership factor.

33

New four factors are checked on reliability again because old groups were broken and the old
value of reliability is not qualified any more. The Cronbachs alpha values of all the factors
over 0.6 and qualified. The results are in the Table 4.6.
After EFA, three variables ORGC 4, COM 2, TEAM 2 are grouped in new component
(Component 2) as Table 4.9. In the measurement scale, these variables showed the same
point that is leadership styles. Therefore, Component 2 will be called by Leadership factor.
Table 4.9: Variables in Leadership
Coding of variables

Measurement scale

ORGC 4

The leaders of this organization know what they are doing

COM 2

Overall, information in this organization is communicated well

TEAM 2

Management is supportive of its employees

In the recent past, leadership has engaged in strong terms as a new effective approach for
managing employees and the organization at large. The concept of Human Resource
Management has however gradually replaced the traditional concept of personnel
administration. This has necessitated the strategic integration of new leadership styles into the
effective management of the human capital. Hersey (1988) assert that; The effective leader
must be a good diagnostician and adopt style to meet the demands of the situation in which
they operate. The amount of direction and social backup a leader gives to subordinates
depended on their styles to fit the context. Local councils have been in existence for a number
of years yet the exodus of talent from these councils reflects an administrative phenomenon
where the contingency of leadership, style, situation and performance criteria have been left
to suffocate on their own. As a result, employee performance was affected due to lack of
proper direction and application of strategic style in managing daily duties. It was noted that,
in most studies, the concept of corporate approach was highly lacking yet in the data
collected, it was noted that this approach was critical to the sustainability of leadership
processes especially in large work environments.
For the strength of an organization job satisfaction plays a vital role which has significant
effect on employee performance. Previous study has examined that a positive relation is
found between satisfied employees and organization, as the performance of the satisfied
employees are more productive for the organization then less satisfied employees (Ostroff,
1992). Leadership is associated with employee performance (Ogbonna & Harris, 2000). The
34

relationship between Leadership and performance is established considerable attention


(Gadot, 2006). The main theme of the every organization is to enhance employee
performance. Howell, Merenda (1999) suggested that transformational leadership will play an
imperative role in increasing job satisfaction as well as role play to achieve organizations
goal and employees Researchers have also studied the employee performance with
extraverted leadership and gave very interested results, employee performance are increased
under the extraverted leadership when employees are passive.

4.4.2.2 The dependent factors: Employees performance


The KMO value for the employees satisfaction factor is 0.754 which is greater than 0.6 and
the Bartletts Test of Sphericity value is significant at the Sig. value is .000 (<0.05). The
results are in the Table 4.8.
The eigenvalues in the Total Variance explained is 3.183 (which are above 1) and the
percentage of cumulative for the variance is explained as 63.665%. The results are in the
Appendix C.
In this dependent factor for EFA testing, there is only one component extracted and there is
no rotated Component matrix. Therefore, this states that all the respondents understand all the
variables in employees performance factor as one way component.

4.4.3 Refined research model and hypotheses


After performing factor analysis, the set of independent variables was extracted and rotated to
four factors. They are named as their presented concepts or definitions i) Organizational
Culture, ii) Leadership, iii) Communication, and iv) Working Environment. And Research
model and research Hypotheses will be refined according to factor reduction. Refined
Research model is adjusted in Figure 4.1. The research Hypotheses will be restated as:
H1: There is a positive relationship between Organizational Culture and Employees
performance.
H2: There is a positive relationship between Leadership and Employees performance.
H3:

There is a positive relationship between Communication and Employees

performance.
H4: There is a positive relationship between Working Environment and Employees
performance.

35

Organizational Factors
ORGC - Organizational Culture

H1+
H2+
H3+

LEAD Leadership

COM - Communication

EP - Employees
performance

H4+

WENV - Working Environment

Figure 4.1 Refined research model

4.5 Hypotheses testing


After describing the revised and final research model, the following step is to carry out the
hypotheses testing by the regression analysis in order to identify the relationship between the
independent factors which is significantly influence the employees performance of
Vietnamese companies in HCMC.
The relationship between the dependent factor employees performance (EP) and the
independent factors are showing in the following formula in which the independent factors
are Organization Culture (ORGC), Leadership (LEAD), Communication (COM) and
Working Environment (WENV).
EP = 0 + 1 *ORGC + 2 * LEAD + 3 * COM + 4 * WENV

4.5.1 Regression analysis


The hypotheses of the dependent variables (Employees performance) are developed by the
multiple linear regression analysis which is also used to test the hypotheses model of this
research.
After assessing the multiple linear regression method by using the SPSS software, the Table
4.10 shows all results of multiple linear regression.
The Model Summary Table has shown the R value is 0.732 and the R-square is 0.536. There
has illustrated that there is a tight correlation between the dependent variables in employees
36

performance factor and the variables of 4 independent factors. Otherwise, the adjusted R
square is 0.525 (>0.4) which is good to use the model to explain organizational factors affect
to employees performance.
Table 4.10: Regression analysis of employees' performance
Model

Unstandardized

Standardized

Coefficients

Coefficients

Std.

Sig.

Beta

Collinearity Statistics
Tolerance

VIF

Error
1 (Constant)

4.374

.976

4.482

.000

ORGC

.113

.060

.115

1.901

.059

.751

1.332

LEAD

.170

.087

.130

1.954

.052

.617

1.622

COM

.684

.089

.489

7.708

.000

.679

1.473

WENV

.442

.106

.231

4.188

.000

.894

1.119

a. Dependent Variable: EP

Table 4.11 Hypotheses summary


No.
1

Hypotheses

Testing results

There is a positive relationship between Organizational

Supported at significant level

Culture and Employees performance

of 6%

There is a positive relationship between Leadership and Supported at significant level


Employees performance

of 6%

There is a positive relationship between Communication Supported at significant level


and Employees performance

of 1%

There is a positive relationship between Communication Supported at significant level


and Employees performance

of 1%

The Model Summary Table has shown the R value is 0.732 and the R-square is 0.536. There
has illustrated that there is a tight correlation between the dependent variables in employees
performance factor and the variables of 4 independent factors. Otherwise, the adjusted R
square is 0.525 (>0.4) which is good to use the model to explain organizational factors affect
to employees performance.
The Anova Table has also described that Sig. value is .000 which is smaller than 0.05. This
explained the variables of 4 independent factors are reliable enough for the variance of the
37

employees performance factor to predict which may positively influence the employees
performance of Vietnamese companies in HCMC.

Organizational Factors
ORGC - Organizational Culture

0.115
LEAD Leadership

EP - Employees
performance

0.13
0.489

COM - Communication

0.231

WENV - Working Environment

Figure 4.2 Result of refined research model


The Model Summary Table has shown the R value is 0.732 and the R-square is 0.536. There
has illustrated that there is a tight correlation between the dependent variables in employees
performance factor and the variables of 4 independent factors. Otherwise, the adjusted R
square is 0.525 (>0.4) which is good to use the model to explain organizational factors affect
to employees performance.
The Anova Table has also described that Sig. value is .000 which is smaller than 0.05. This
explained the variables of 4 independent factors are reliable enough for the variance of the
employees performance factor to predict which may positively influence the employees
performance of Vietnamese companies in HCMC.
ANOVA analysis for the value of F = 49.130 (sig = 0.00). Tolerance and VIF values in the
Coefficients Table show that do not exist multicollinearity because VIF of all variables are
less than 2 and generally accepted. Rule is when the VIF exceeds 10 it is a sign of
multicollinearity.
The Appendix C shows that all variables which include WENV, ORGC, COM, LEAD
entered. Evaluate multiple linear regression model, the coefficient of determination R2 (R
square) is used to access the relevance of the research model. R2 coefficient when assessing
38

the relevance of the model is 0.536, therefore the research model is appropriate, the result
also shows that R2 adjusted smaller than R2 , use this system to assess the relevance of model
is safer and more accurate because it does not exaggerate the degree of consistency with the
model. R2 adjusted is 0.525 indicates that 52.5% of the variance can be predicted from the
independent variables.
Testing the linear relationship between dependent variable (Employees performance) and
independent variables (Organizational Culture, Working Environment, Communication,
Leadership) to examine the dependent variable has a linear relationship with the entire set of
independent variables or not. The testing result shows that R2 adjusted is 0.525, this indicates
multiple linear regression model was constructed in accordance with the data set is 52.5%.
With this data, the linear regression model is made in accordance with the data and it can be
used in practice.
We tested histogram and normal probability plot, and they satisfy the regression (see
Appendix E).
In the Coefficients model, there are 4 independent factors of this model adapted the criteria
and the regression equation of the employees performance can be shown below (Sig. value is
.000 which is smaller than 0.05).
The Standardized Coefficients Beta is also used in the equation to show the result
EP = 0.115* ORGC + 0.13* LEAD + 0.489* COM + 0.231* WENV
(p=0.059)

(p=0.052)

(p=0.000)

(p=0.000)

4.5.2 Hypotheses testing


H1: There is a positive relationship between Organizational Culture and Employees
performance.
The Standardized regression coefficients beta of Organizational Culture (ORGC) on
Employees Performance (EP) is 0.13, t-value is 1.901 (<2) and the Sig value is .059 (>0.05,
but nearly 6% of tolerance). This means at the percentage of 95 of confidence, there is a
statistics evidence to conclude a less positive impact between Organizational Culture to
Employees Performance in Vietnamese companies in HCMC. Therefore, the H1 is weak
supported for the research model and Organizational Culture positively impacts the
Employees Performance.

39

H2: There is a positive relationship between Leadership and Employees performance.


The Standardized regression coefficients beta of Leadership on Employees Performance
(EP) is 0.115, t-value is 1.954 (<2) and the Sig value is .052 (>0.05, but nearly 5% of
tolerance).). This means at the percentage of 95 of confidence, there is a statistics evidence to
conclude a low positive impact between Leadership to Employees performance in
Vietnamese companies in HCMC. Therefore, the H2 is weak supported for the research
model and Organizational Culture positively impacts the Employees Performance.
H3: There is a positive relationship between Communication and Employees
performance.
The Standardized regression coefficients beta of Communication (COM) on Employees
Performance is 0.489, t-value is 7.708 (>2) and the Sig value is .000 (<0.05). This means at
the percentage of 95 of confidence, there is a statistics evidence to conclude a high positive
impact between Communication and Employees Performance in Vietnamese companies in
HCMC. Therefore, the H3 is supported for the research model and Communication positively
impacts the Employees Performance.
H4: There is a positive relationship between Working Environment and Employees
performance.
The Standardized regression coefficients beta of Working Environment (WENV) on
Employees Performance is 0.231, t-value is 4.188 (>2) and the Sig value is .000 (<0.05).
This means at the percentage of 95 of confidence, there is a statistics evidence to conclude a
positive impact between Working Environment and Employees Performance in Vietnamese
companies in HCMC. Therefore, the H4 is supported for the research model and
Communication positively impacts the Employees Performance.

4.6 Summary
In summary, this chapter analyzes the correlations between the dependent variables and
independent variables. The results of correlation analysis are supportive of the findings
developed from the literature and the pilot study. These factors are all significantly correlated
with the performance criteria. This chapter also analyzes the intercorrelation between
independent variables. The complex relationships between the independent variables were
evident from the intercorrelation tables. Confirmatory factor analysis will determine which of
these variables measure the same concepts and group them together.

40

This chapter presents the preliminary and confirmatory assessment of the measures of the
constructs in this study. After refining the measures through Cronbachs alpha and
Exploratory Factor Analysis (EFA), the scales used to measure the theoretical constructs in
this study received satisfactory levels of reliability and validity, confirmed by Confirmatory
Factor Analysis (CFA). The results also confirmed that the organizational factors, includes
Organizational Culture, Leadership, Communication and Working Environment that are the
four widely agreed criteria used in most previous studies.
In this chapter, the direct relationships between the organizational factors and employees'
performance were also analyzed by Hierarchical Regression techniques with the application
of SPSS computer software.
The next chapter will present the conclusion of this research.

41

CHAPTER 5
CONCLUSIONS
5.1 Introduction
This chapter presents the conclusion about the research; conclusions are drawn based on the
findings, managerial implications, the limitations and recommendation of this research. In
chapter one of this thesis, the research objectives and three research questions were
mentioned, and from these three questions, four hypotheses were created, in next section
conclusion of each hypotheses, and research objectives will be made. Moreover, in this
chapter managerial implications of this research will be discussed, and it will be finished by
limitations and recommendations for further research.

5.2 Findings
The result from Chapter 4 indicated that the measurement scales of data received from the
survey is reliable. There are five measurement scales of employees performance as below:
-

I believe I am an effective employee

I am happy with the quality of my work output

My manager believes I am an efficient worker

My colleagues believe I am a very productive employee

Accomplishes tasks efficiently. Able to complete tasks quicker as the employee gains
experience.

There are four groups of organizational factors formed through factors analysis including
organizational culture, leadership, communication, and working environment. As the results
of data analysis in Chapter 4, all four hypotheses of this research were accepted. The first
hypothesis is about the impact of organizational culture on employees performance which
was proved that there is a positive impact of organizational culture on employees
performance. The result showed that in all kinds of sectors organizational culture effects on
performance of employees with of organizational culture is equal 0.115 which is the
partially affect one among four determinants. This is relevant to the literature that was
reviewed in chapter 2 of this research, and this is also accurate to the reality, especially the
reality of Vietnamese society where the level of economic development is quite low, then
most people must work for living, therefore organizational culture is considered as the factor
that could motivate employees work harder, perform better. In the point of view of author of
42

this research, normally in developing economies organizational culture has a significant role
in motivating performance of employees that may dominate other factors. In developeconomies, employees may consider other factors such as working environment, leadership
styles, etc. are more important than organizational culture.
Leadership - was also proved in the results of data analysis in chapter four that it has positive
impact on employees performance with of leadership is equal 0.13 for all kinds of sectors.
Leadership is the weakness among four determinants.
Communication was proved in the results in Chapter 4 that it has positive impact on
employees performance with of communication is equal 0.489 for all kind of sectors.
Communication has highest impact to performance of employees among four determinants.
This is relevant to both literature and practice.
Working environment was proved in the results in Chapter 4 that it has positive impact on
employees performance with of environment is equal 0.231. This is relevant to both
literature and practice. In general, people work more effective in better working environment.
The more they feel comfortable, the better they perform that could correct in all kinds of
sectors. In this study, among four determinants, working environment has the average effect
on performance of employees that may because the survey was conducted in a developing
economy where employees may consider other factors are more important than working
environment. This result may be different if the data is collected in other economies.
Results of data analysis in Chapter 4 showed that all four determinants which are
organizational culture, leadership, communication and working environment have positive
impact on employees performance. Among them leadership has the weakest impact, the
second is organizational culture, the third is working environment and the strongest one is
communication.

5.3 Managerial implications and recommendations


Based on the findings on organizational factors that have significant impact to the employees
performance in this research, the following managerial implications are proposed to better the
employees performance in Vietnamese companies.

43

In the research model, there are four ways that helping Vietnamese companies can increase
employees' performance: building a good organizational culture, having a good leadership
styles, excellence in communication and creating a fair working environment.
Firstly, in Vietnamese companies, the managers need to focus on building a good and
transparent communication system. Especially, Vietnamese companies should have a useful
method of communication and the information will be communicated well in organization.
Nowadays, in order to enforce the employees' performance in Vietnamese companies,
information and knowledge are shared openly within organization. By this way, it can help
their employee have enough information to perform their jobs well. The research results
encourage management

team

in Vietnamese companies pay more attention to

communication, because it is the strongest organizational factor affect to employees'


performance.
Secondly, Vietnamese companies should build a good and fair working environment in order
to increase the employees' performance. Vietnamese companies should have a real interest in
welfare and satisfaction organizational factors those who work here. It must be a good place
to work, or they play to win, not work to win. The environment in Vietnamese companies
should support a balance between work and personal life. By this way, it can help the
employees can contribute whole life for their companies. In general, people work more
effectively in better working environment. The more they feel comfortable, the better they
perform. Working environment comprises two aspects which are physical and behavioral
aspects, both of them have effects on performance of employees. Improving physical aspect
could cost much money and time, but improving behavioral aspect requires the efforts of
human beings, especially of leaders and it may not cost as much as improving physical
aspect, but it could bring more benefits for the organizations.
In addition, in order to increase employees' performance in Vietnamese companies, they
should increase the leadership styles of management team. The employees will perform well
if their leaders know what they are doing in company. Especially, the employees need a lot
organizational factors supports from their line managers. The managers in Vietnamese
companies can implement this by many ways, such as coaching, directly support, on the job
training or in-house training. The employees' performance will be empowered by leadership
styles by developing teams and according some measure organizational factors power and
authority to these teams. In this way, employees would ignite their potentials, feel part of the
44

organization and perform maximally for the organization. The employees should be allowed
to get advice from their supervisor thus; they will correctly perform their responsibilities and
duties.
Finally, employees' performance in Vietnamese companies can be improved by building the
good organizational culture. Vietnamese companies should have some policies for promotion
and advancement are always fair. Its very important if everybody is treated fairly in
Vietnamese companies. The employees will perform well if their organizations respect them.
The Vietnamese companies should create a supportive organization culture. Unfortunately,
the organizations today continue to be highly formalized with accompanying inflexible,
impersonal climate. Therefore, the structure should be decentralized with participative
decision-making and upward communication flows. Additionally, motivation for employees
should be granted without bias to perform their task. Thus, develop and maintain personal
relationships; social support at work and away from work can help alleviate some of negative
effects of stress. Vietnamese companies should increase the relaxation in various forms can
be considered as it always gives the body an appropriate factor to recover from stress.

5.4 Limitations and future research direction


There are some limitations of this research.
First of all, the survey to collect data use for this research only conducted in Ho Chi Minh
City, therefore it may not reflex truly for the whole Vietnamese economy system. Further
research could conduct a survey for the whole country, it will increase reliability.
Second, the time of doing this research is quite short and the number of participants in the
survey was quite small, the ability of research author is limited, so the quality of the research
may not so high. Further research should increase the number of participants and put more
time and effort in doing research that could improve the quality.
Third, there are many determinants that effect on employees performance, but in this study
only four determinants were analyzed, so further research could extend the number of
determinants which may explore and contribute more valuable knowledge to theory and
practice.

45

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50

APPENDICES
APPENDIX A: QUESTIONNAIRE IN VIETNAMESE
BNG KHO ST
Knh cho anh/ch, Ti l Ng Cng Trng - hin l hc vin cao hc ca Vin o To
Quc T (ISB) Trng i Hc Kinh T Tp.HCM. Ti ang thc hin ti nghin cu v
s nh hng ca cc yu t t chc n kt qu lm vic ca nhn vin trong cc doanh
nghip. Rt mong anh/ch dnh thi gian thc hin bng kho st bn di. Phn tr li ca
cc anh/ch s c gi b mt, ch c thng tin tng hp c bo co v cng b. Nu
anh/ch quan tm n ti, bn bo co sau khi hon thnh s c gi n cc anh/ch
anh/ch tham kho. Mi kin ng gp xin vui lng gi v a ch:
congtruongls69@yahoo.com Chn thnh cm n s h tr ca anh/ch!

* Required

HNG DN THC HIN


Anh/ch vui lng nh gi mc ng ca mnh vi cc pht biu di y theo qui c
t thp n cao nh sau: 1. Hon ton khng ng 2. Khng ng 3. Trung lp (khng c
kin) 4. ng 5. Hon ton ng

CC YU T CA T CHC

Cc chnh sch v quy nh ca cng ty ti v vic thng tin lun lun c thc hin cng
bng *
1

Hon ton khng ng

Hon ton ng

Tt c mi ngi trong cng ty ti u c i x cng bng nh nhau *


1

51

Hon ton khng ng

Hon ton ng

Cng ty ti tn trng v cao tt c nhn vin *


1

Hon ton khng ng

Hon ton ng

Cc lnh o trong cng ty ti hiu rt r nhng g h ang lm *


1

Hon ton khng ng

Hon ton ng

Cng ty ti c mt chnh sch tt v phc li v lm hi lng tt c mi ngi lm vic ti


y *
1

Hon ton khng ng

Hon ton ng

Ti cho rng cng ty ti l mt ni tuyt vi lm vic *


1

Hon ton khng ng

Hon ton ng

Mi trng lm vic ti cng ty ti gip cho nhn vin c th cn bng cng vic v cuc
sng *
1

52

Hon ton khng ng

Hon ton ng

So vi cc cng ty khc, cng ty ti c nhng cng c v phng php truyn thng hiu
qu. *
1

Hon ton khng ng

Hon ton ng

Nhn chung, thng tin trong cng ty ti c truyn thng ti nhn vin rt tt *
1

Hon ton khng ng

Hon ton ng

Tt c thng tin v kin thc u c chia s rng ri trong cng ty ti *


1

Hon ton khng ng

Hon ton ng

Ti c y thng tin hon tt cng vic mt cch tt nht *


1

Hon ton khng ng

Hon ton ng

Cng ty ti rt coi trng lm vic nhm *


1

Hon ton khng ng

Hon ton ng

53

Cc cp qun l lun h tr nhn vin ca mnh ht sc *


1

Hon ton khng ng

Hon ton ng

Ti nhn c s hp tc rt tt ngoi b phn ca ti ang lm vic *


1

Hon ton khng ng

Hon ton ng

Cc nhn vin trong cng ty lun hp tc vi ti hon thnh cng vic mt cch tt nht *
1

Hon ton khng ng

Hon ton ng

KT QU LM VIC

Ti tin rng ti l mt nhn vin lm vic hiu qu *


1

Hon ton khng ng

Hon ton ng

Ti hnh phc vi cht lng ca cc kt qu trong cng vic *


1

54

Hon ton khng ng

Hon ton ng

Sp ca ti tin rng ti l mt nhn vin hiu qu *


1

Hon ton khng ng

Hon ton ng

Cc ng nghip ca ti tin rng ti l mt nhn vin lm vic rt nng sut *


1

Hon ton khng ng

Hon ton ng

Ti lun hon thnh cc nhim v c giao mt cch hiu qu. *


1

Hon ton khng ng

Hon ton ng

THNG TIN C NHN


Anh/ch vui lng cung cp mt s thng tin c nhn bng cch chn cu tr li thch hp. Ti
cam oan nhng ni dung di y s c bo mt v ch s dng cho mc ch nghin
cu.

Gii tnh ca anh/ch *


Nam
N

Anh/ch thuc nhm tui no trong cc nhm di y? *


55

Di 25 tui
T 25 n 30 tui
T 30 n 40 tui
Trn 40 tui

Cp bc cng vic ca anh/ch hin nay? *


Nhn vin
Trng nhm
Trng phng
Gim c
Other:

Cng ty anh ch l cng ty *


T nhn
Nh nc
Vn u t nc ngoi
a quc gia
Other:

CHN THNH CM N ANH/CH RT NHIU!

56

APPENDIX B: DESCRIPTIVE STATISTICS

Gender of respondents

Age of respondents

57

Enterprise Ownership

Job Level

58

APPENDIX C: SURVEY RESULTS


Rotated Component Matrix
Component
1

ORGC 1

.886

.168

.217

-.016

ORGC 2

.843

.181

-.083

.275

ORGC 3

.800

.067

.211

.148

ORGC 4

.215

.715

-.028

.208

WENV 1

.082

-.091

.171

.897

WENV 2

.415

.116

.241

.519

WENV 3

-.017

.291

-.035

.784

COM 1

.082

.423

.325

.582

COM 2

.126

.765

.324

.023

COM 3

.192

.355

.603

.082

COM 4

.086

.319

.847

.160

TEAM 1

.053

.634

.553

.094

TEAM 2

.381

.619

.246

.165

TEAM 3

.811

.214

.170

-.099

TEAM 4

.222

-.016

.756

.138

Extraction Method: Principal Component Analysis.


Rotation Method: Varimax with Kaiser Normalization.

59

Total Variance Explained


Component

Initial Eigenvalues

Total

% of

Cumulative

Variance

Extraction Sums of Squared

Rotation Sums of Squared

Loadings

Loadings

Total

% of

Cumulative

Variance

Total

% of

Cumulative

Variance

5.805

38.697

38.697

5.805

38.697

38.697 3.283

21.890

21.890

2.031

13.540

52.236

2.031

13.540

52.236 2.507

16.714

38.604

1.611

10.743

62.979

1.611

10.743

62.979 2.448

16.318

54.922

1.056

7.042

70.022

1.056

7.042

70.022 2.265

15.100

70.022

.894

5.958

75.979

.844

5.628

81.607

.670

4.467

86.074

.520

3.465

89.539

.422

2.813

92.352

10

.330

2.198

94.550

11

.247

1.650

96.200

12

.208

1.388

97.587

13

.200

1.335

98.922

14

.093

.619

99.541

15

.069

.459

100.000

Extraction Method: Principal Component Analysis.

Total Variance Explained


Component

Initial Eigenvalues
Total

Extraction Sums of Squared Loadings

% of

Cumulative

Variance

3.183

63.665

63.665

.772

15.448

79.112

.454

9.070

88.183

.376

7.516

95.699

.215

4.301

100.000

Extraction Method: Principal Component Analysis.

60

Total

3.183

% of

Cumulative

Variance

63.665

63.665

Results of Hypotheses testing


Variables Entered/Removeda
Model
1

Variables Entered

Variables Removed

Method

WENV, ORGC, COM, LEADb

Enter

a. Dependent Variable: EP
b. All requested variables entered.
Model Summary
Model

R Square

Adjusted R Square

Std. Error of the


Estimate

.732 a

.536

.525

2.04827

a. Predictors: (Constant), WENV, ORGC, COM, LEAD


ANOVAa
Model

Sum of Squares

df

Mean Square

Regression

824.492

206.123

Residual

713.222

170

4.195

1537.714

174

Total
a.

Dependent Variable: EP

b.

Predictors: (Constant), WENV, ORGC, COM, LEAD

61

F
49.130

Sig.
.000b

APPENDIX D: SURVEY RESULTS

EP
ORGC
LEAD
COM
WENV

Pearson
Correlation

Sig. (1-tailed)

Descriptive Statistics
Mean
Std. Deviation
17.3143
2.97278
12.4514
3.00702
10.4857
2.27898
9.9714
2.12383
6.6286
1.55522

EP
ORGC
LEAD
COM
WENV
EP
ORGC
LEAD
COM
WENV
EP
ORGC
LEAD
COM
WENV

Correlations
EP
ORGC
1.000
.405
.405
1.000
.512
.472
.666
.389
.423
.166
.
.000
.000
.
.000
.000
.000
.000
.000
.014
175
175
175
175
175
175
175
175
175
175

LEAD
.512
.472
1.000
.531
.294
.000
.000
.
.000
.000
175
175
175
175
175

N
175
175
175
175
175

COM
WENV
.666
.423
.389
.166
.531
.294
1.000
.275
.275
1.000
.000
.000
.000
.014
.000
.000
.
.000
.000
.
175
175
175
175
175
175
175
175
175
175

Residuals Statisticsa
Minimum Maximum
Mean
Std. Deviation
10.9881
20.8206
17.3143
2.17680
-4.44962
3.98705
.00000
2.02459

Predicted Value
Residual
Std. Predicted
-2.906
Value
Std. Residual
-2.172
a. Dependent Variable: EP

N
175
175

1.611

.000

1.000

175

1.947

.000

.988

175

62

Collinearity Diagnosticsa
Model

Dimension

Eigenvalue Condition
Index

Variance Proportions
(Constant)

ORGC

LEAD

COM

WENV

4.884

1.000

.00

.00

.00

.00

.00

.046

10.294

.01

.29

.02

.01

.61

.029

12.930

.00

.59

.10

.38

.14

.021

15.190

.42

.00

.66

.13

.09

.019

16.015

.57

.11

.21

.48

.15

a. Dependent Variable: EP

63

APPENDIX E: SURVEY RESULTS

64

65

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