Thông tin tài liệu
THE EFFECT OF LEADERSHIP ON EMPLOYEE
COMMITMENT IN FPT DISTRIBUTION COMPANY
– A FULL RANGE LEADERSHIP APPROACH
In Partial Fulfillment of the Requirements of the Degree of
MASTER OF BUSINESS ADMINISTRATION
In International Business
By
Tran Thi Ngoc Quyen
ID: MBA03027
International University – Vietnam National University HCMC
February 2013
THE EFFECT OF LEADERSHIP ON EMPLOYEE COMMITMENT IN FPT
DISTRIBUTION COMPANY – A FULL RANGE LEADERSHIP APPROACH
In Partial Fulfillment of the Requirements of the Degree of
MASTER OF BUSINESS ADMINISTRATION
In International Business
by
Ms Tran Thi Ngoc Quyen
ID: MBA03027
International University - Vietnam National University HCMC
February 2013
Under the guidance and approval of the committee, and approved by all its members, this thesis
has been accepted in partial fulfillment of the requirements for the degree.
Approved:
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Chairperson
Supervisor
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Committee member
Committee member
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ACKNOWLEGEMENT
This thesis is done with great deal of supporting from the wonderful people, who showed
significant concern towards me during the time of working on this dissertation. I would like to
take this opportunity to express my sincere gratitude to them.
I wish to express my deepest gratitude to Dr. Truong Thi Lan Anh for her great supervision
and continuous support as well as providing critical insights during the course of my research.
I would like to extend my thanks to all employees of FPT Distribution Company for their
time completing all questionnaires, especially for their assistance, coordination and support
during the research survey process.
Last but not least, I want to say thankful to my family, who always beside me and give me
power to complete my dissertation.
With many thanks,
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PLAGIARISM STATEMENTS
I would like to declare that, apart from the acknowledged references, this thesis either does
not use language, ideas, or other original material from anyone; or has not been previously
submitted to any other educational and research programs or institutions. I fully understand that
any writings in this thesis contradicted to the above statement will automatically lead to the
rejection from the MBA program at the International University – Vietnam National University
Ho Chi Minh City.
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COPYRIGHT STATEMENT
This copy of the thesis has been supplied on condition that anyone who consults it is
understood to recognize that its copyright rests with its author and that no quotation from the
thesis and no information derived from it may be published without the author‟s prior consent.
©Tran Thi Ngoc Quyen/MBA03027/2013
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Table of Contents
Chapter 1: INTRODUCTION......................................................................................................... 1
1.1.
Research background: .......................................................................................................... 1
1.2.
FPT Distribution Company introduction: ............................................................................ 2
1.3.
Rationales and Problem statement: ...................................................................................... 3
1.4.
Research objectives:............................................................................................................. 4
1.5.
Scope of research: ................................................................................................................ 4
1.6.
Significance of research: ...................................................................................................... 4
1.7.
Research structure: ............................................................................................................... 4
Chapter 2: LITERATURE REVIEW AND RESEARCH MODEL ............................................... 6
2.1.
Leadership: ........................................................................................................................... 6
2.1.1.
2.1.1.1.
Differences between Managers and Leaders:........................................................ 6
2.1.1.2.
Some definitions of leadership: ............................................................................. 7
2.1.2.
Traditional leadership theories: .................................................................................... 8
2.1.2.1.
Trait Theory: ......................................................................................................... 8
2.1.2.2.
Behavioural Theory: .............................................................................................. 9
2.1.2.3.
Contingency Theory: ........................................................................................... 11
2.1.3.
2.2.
Concepts: ...................................................................................................................... 6
Full-range leadership theories: ................................................................................... 14
Employee commitment: ..................................................................................................... 19
2.2.1.
Concepts: .................................................................................................................... 19
2.2.2.
Components of employee commitment: ..................................................................... 21
2.3.
Relationship between leadership and employee commitment: .......................................... 22
2.4.
Research model and hypothesis: ........................................................................................ 25
Chapter 3: METHODOLOGY ...................................................................................................... 26
3.1.
Research design: ................................................................................................................ 26
3.2.
Research process: ............................................................................................................... 29
3.3.
Population and Data sampling: .......................................................................................... 29
3.4.
Data collection: .................................................................................................................. 30
3.4.1.
Secondary data:........................................................................................................... 31
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3.4.2.
Primary data:............................................................................................................... 31
3.4.2.1 Preliminary research: ................................................................................................ 32
3.4.2.2 Final survey:.............................................................................................................. 33
3.5.
Data analysis: ..................................................................................................................... 38
3.5.1.
Coding data: ................................................................................................................ 38
3.5.2.
Descriptive statistics: .................................................................................................. 39
3.5.3.
Reliability and Validity test: ....................................................................................... 40
3.5.4.
Regression analysis: ................................................................................................... 41
Chapter 4: RESEARCH RESULTS AND ANALYSIS ............................................................... 42
4.1.
Response rate: .................................................................................................................... 42
4.2.
Demographic data: ............................................................................................................. 42
4.3.
Results of Validity test: ...................................................................................................... 43
4.3.1.
Exploratory factor analysis –EFA of independent variables: ..................................... 43
4.3.2.
Exploratory factor analysis –EFA of dependent variables: ........................................ 44
4.3.3.
Rename factors: .......................................................................................................... 46
4.4.
Results of Reliability test: .................................................................................................. 49
4.4.1.
Cronbach‟s alpha for leadership variables: ................................................................ 49
4.4.1.1. Contingent Reward: ................................................................................................. 49
4.4.1.2. Personal Motivation: ................................................................................................ 49
4.4.1.3. Idealized Influence: .................................................................................................. 50
4.4.1.4. Management by exception: ...................................................................................... 50
4.4.1.5. Laissez-faire: ............................................................................................................ 51
4.4.1.6. Intellectual Stimulation: ........................................................................................... 51
4.4.2.
Cronbach‟s alpha for employee commitment variables: ............................................ 52
4.4.2.1. Continuance Commitment: ...................................................................................... 52
4.4.2.2. Affective Commitment: ........................................................................................... 52
4.4.2.3. Normative Commitment: ......................................................................................... 53
4.4.3.
4.5.
Restate Research Model: ............................................................................................ 53
Regression analysis and Hypothesis testing: ..................................................................... 56
4.5.1.
Correlation analysis: ................................................................................................... 56
4.5.2.
Regression analysis: ................................................................................................... 58
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4.5.3.
4.6.
Hypothesis testing: ..................................................................................................... 60
Differences among groups of followers:............................................................................ 63
4.6.1.
T-test: .......................................................................................................................... 63
4.6.2.
One-way ANOVA: ..................................................................................................... 64
Chapter 5: RESEARCH DISCUSSION AND IMPLICATIONS ................................................ 66
5.1.
Effect of personal motivation on continuance and affective commitment: ....................... 66
5.2.
Effect of idealized influence on continuance and affective commitment: ......................... 67
5.3.
Effect of contingent reward on continuance and affective commitment: .......................... 68
Chapter 6: RESEARCH CONCLUSION AND RECOMMENDATION .................................... 70
6.1.
Research Conclusion:......................................................................................................... 70
6.2.
Recommendation: .............................................................................................................. 70
6.2.1.
Personal motivation: ................................................................................................... 70
6.2.2.
Idealized influence:..................................................................................................... 71
6.2.3.
Contingent reward: ..................................................................................................... 72
6.3.
Limitation and suggestion: ................................................................................................. 72
REFERENCES ............................................................................................................................. 74
APPENDIX ................................................................................................................................... 82
Appendix 1: Structured interview ............................................................................................. 82
Appendix 2: Survey Questionnaire: .......................................................................................... 84
Appendix 3: Survey questionnaire (Vietnamese version) ........................................................ 87
Appendix 4: Descriptive Statistics ............................................................................................ 90
Appendix 5: Result of exploratory factor analysis ................................................................... 92
Appendix 6: Result of reliability test ...................................................................................... 100
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LIST OF TABLES
Table 1: Comparison between Leaders and Managers ................................................................... 6
Table 2: Studies of leadership traits and characteristic ................................................................... 9
Table 3: Summary of the development of Full Range Leadership Theory................................... 18
Table 4: Measurement for leadership variable.............................................................................. 35
Table 5 Measurement for employee commitment variable .......................................................... 37
Table 6: Summary of coding variables ......................................................................................... 39
Table 7: Summary of demographic data ....................................................................................... 42
Table 8: Rotated Component Matrix ............................................................................................ 43
Table 9: KMO and Bartlett's Test ................................................................................................. 44
Table 10: KMO and Bartlett's Test ............................................................................................... 44
Table 11: Total Variance Explained ............................................................................................. 45
Table 12: Rotated Component Matrix .......................................................................................... 46
Table 13: Summary of renaming factors after EFA...................................................................... 47
Table 14: Reliability coefficient of contingent reward measurement scale .................................. 49
Table 15: Reliability coefficient of personal motivation measurement scale ............................... 49
Table 16: Reliability coefficient of idealized influence measurement scale ................................ 50
Table 17: Reliability coefficient of management by exception measurement scale ..................... 50
Table 18: Reliability coefficient of laissez-faire measurement scale ........................................... 51
Table 19: Reliability coefficient of intellectual stimulation measurement scale .......................... 51
Table 20: Reliability coefficient of continuance commitment measurement scale ...................... 52
Table 21: Reliability coefficient of affective commitment measurement scale ........................... 52
Table 22: Reliability coefficient of normative commitment measurement scale ......................... 53
Table 23: Summary of revised research model............................................................................. 54
Table 24: Pearson's Rotated factor loading................................................................................... 57
Table 25: Regression – Coefficients of continuance commitment ............................................... 58
Table 26: Regression – Coefficients of affective commitment .................................................... 58
Table 27: Regression analysis at second round ............................................................................ 59
Table 28: Regression – coefficient of dependent variables .......................................................... 59
Table 29: Summary result of hypotheses test ............................................................................... 62
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Table 30: Group statistic on Gender ............................................................................................. 63
Table 31: Result of independent sample test ................................................................................ 64
Table 32: Test of Homogeneity of Variances ............................................................................... 64
Table 33: Result of ANOVA test .................................................................................................. 65
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LIST OF FIGURES
Figure 1: The basic leadership approaches ................................................................................... 14
Figure 2: A Model of the Full Range Leadership Development Theory ...................................... 16
Figure 3: Conceptual framework .................................................................................................. 25
Figure 4: Research process ........................................................................................................... 29
Figure 5: Restated Research Model .............................................................................................. 54
Figure 6: Resulted model .............................................................................................................. 63
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ABSTRACT
This research investigates the relationship between leadership styles and different types of
employee commitment in FPT Distribution Company. The literature provided discusses the
leadership and employee commitment.
Information was gathered, using two instruments, from a sample of 210 raters. The
Multifactor Leadership Questionnaire, which was formulated from Bass and Avolio‟s (1997)
Full Range Leadership Development Theory, was used to determine leadership style within the
organisation. Employee commitment was captured using Meyer and Allen‟s (1997)
Organisational Commitment including Three-Component Model of employee commitment.
Leadership was identified as the independent variable and organisational commitment as the
dependent variable. Data obtained from each of the research instruments was then statistically
processed in data analysis in order to refine and operationalize the conceptual model and to
investigate the relative effects of the various factors. Result of data processing indicated that
there are three factors affect employees‟ continuance and affective commitment such as personal
motivation, idealized influence and contingent reward. In which personal motivation and
contingent reward is the key factor and idealized influence is an important factor have an impact
on employee commitment.
The analysis emphasizes the importance of increasing level of employee commitment to
the organization by increasing rewards, often reviewing salaries or building mutual trust between
leaders and subordinates.
Keywords: employee commitment, leadership
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Chapter 1: INTRODUCTION
1.1. Research background:
The increase of organization‟s day by day changes is becoming a major component of
everyday organizational functioning. These changes require most companies to supply the best
and highest quality of products and services. Therefore, employee commitment is extremely
crucial in order to remain competitive of these pressures. It can be said that the success of an
enterprise depends on many determinants ranging from internal to external. Along with capital
and resources, workforce is also the company‟s greatest assets. People are becoming a source of
competitive advantage for most organizations (Ulrich, 2000). Ulrich (2002) has argued in his
work that the competitive edge of companies no longer lies in its products, but in its people.
People are seen to be the lifeblood of organizations and they represent the most valuable
resources of organizations. It is undeniable that no organization can perform at top levels unless
each employee is committed to the organization‟s objectives and works effectively. However,
recruiting the right employees is not as difficult as making them devoted for the organization. It
is obviously affected by so many different reasons. The objective of the organization is not only
to acquire workforce but also look for an efficient and effective labor force.
Leadership is essentially the core and spirit of organizations which helps to maximize
efficiency and to achieve organizational targeted goals. According to Bass & Avolio (1993),
leadership styles are behaviors or processes that leaders conduct or participate in that enable
extraordinary things to be done in or by the organization. Leaders set a direction for the rest, they
help subordinates recognize what lies ahead; and visualize which achievement that can be
obtained; they also encourage and inspire their staff to work to their utmost. Effective leadership
helps company get through peril times and make the business run smoothly and successfully. It is
sure that without leadership, organization will move slowly, stagnate, and lose its initial way and
subordinates will quickly degenerate into argument and conflict. Much of the literature about
organizations stresses decision-making and implies that if decision-making is timely, complete,
and correct, then things will go well. Yet a decision by itself changes nothing.
1
Hughes (2005) had proved that the success of any organization is dependent upon the collection
of individuals, including leaders and subordinates, and the amount of effort each individual puts
into it. Many previous researchers recognize that employee commitment (Meyer et al., 2004;
Allen & Myer, 1990) and leadership styles (Bass, 1997; Bass et al., 2003) are of major factors to
the organizational success or failure. If leaders ensure that employees will have an opportunity to
be appreciated and recognized for their individual attempt, they will be ready to make profit and
contribute to the company‟s success. Allen & Myer (1990) also suggest that the continued
interest is a result of the belief that if properly managed, employee commitment can lead to
benefits such as leadership effectiveness, improved employee performance, reduced turnover and
absenteeism.
1.2. FPT Distribution Company introduction:
FPT Distribution Company (FDC) is one of seven affiliate companies of FPT
Corporation, Vietnam‟s largest informatics organization. It was officially established on April
13th, 2003 whose headquarter was located in Ha Noi and other branches was in Ho Chi Minh
City, Da Nang and Can Tho Province. FDC is always proud to have the country‟s largest
distribution network, with agents nationwide, and enjoys an annual average growth rate of
approximately 32 percent.
FDC has been the leader in both information technology and telecommunication market in
Vietnam. Currently, FDC is valuable partners with more than 60 leading IT companies from
around the world namely IBM, Microsoft, HP, Nokia, Toshiba, Oracle, Samsung, Computer
Associates, Apple, Intel, Symantec, NEC, etc. It is highly appreciated by consumers as well as
partners simply because FDC brings customers the latest IT products together with various types
and perfect quality. With its existing strengths and customer-oriented principles, FDC commits
to continue bringing its customers the added value, maintaining trust and credibility with
partners, developing in domestic market and expanding to foreign countries.
In general, the amount of employees in FDC increased slightly, from 553 in 2008 to 571 in
2010 (3.9% in 3 years). However, compared to the number of people who quit job and were
hired, this amount was small. In 2008, 26 staff including managers and employees left their
2
position in FDC and this became an alarmed situation when this proportion grew significantly to
45 in 2010. Disloyal employees considerably affect the organizational process since newcomers
need at least 2 month probation to catch up with working progress. Also, FDC has some longterm projects in IT distribution which requires the in-charge staff should take care of vendors as
well as retailers from the beginning till the end. If a member stops his/her work at the middle of
the progress, the project and company‟s turnover will surely influenced. Therefore, in order to
maximize profit and decrease all cost of recruitment or canceling project, leaders in FDC
recognize to sustain their competent people by building a strong commitment basis among their
workforce. Commitment is complex and continuous, thus it requires employers or managers to
discover ways of enhancing the work life of their employees.
1.3. Rationales and Problem statement:
FDC has well recognized human capital as a competitive advantage. Thus, for FDC‟s
vision to become a reality, its leadership relies on employees to execute strategic objectives. The
employees‟ knowledge, experience, skills, expertise, the ability to collectively innovate and their
decision making processes is the key to the success of FDC.
As you know that, most of FDC‟s profit comes from IT projects with big retailers. And a
project will surely run well unless sales managers have good relationship as well as enough
experience in dealing prices. However, in recent years, FDC may face challenges of losing
competent and experienced employees. They tend to move to FDC‟s competitors such as Viettel,
Digiworld,… Obviously, turnover among these competent employees results in interruptions in
normal operations, loss of efficiency, increased replacement and recruitment cost, project delays,
increased customer dissatisfaction, and many other difficulties. Lack of employee commitment
threatens the survival of the organization because a loss of a competent employee is a loss of
competitive advantage for the organization. The loss of skillful employees in FDC mainly lies in
the way of leading the organization. Thus, the ability of FDC‟s leadership to retain competent
employees is critical to its success.
It is said that committed employees tend to generate high performance business outcomes
as measured by increased sales, improved productivity, profitability and enhanced employee
3
retention. Although obtaining experienced employees is hard, keeping them deep-seated in
organization is harder. Therefore, this study is considered important to determine the relationship
between full-range leadership styles (i.e. transformational, transactional and laissez-faire
leadership) and employee commitment (i.e. affective, normative and continuance) in FPT IT
Distribution Company – a subsidiary of FPT Corporation. And the purpose of this study is
figuring out which factors of leadership in the company can significantly influence employees in
FDC and how to improve these factors in order to increase the level of a staff‟s commitment to
an enterprise.
1.4. Research objectives:
This research is aimed to:
-
Identify which leadership attributes affect employee commitment of FDC.
-
Examine their importance towards employee commitment.
-
Suggest solutions to improve leadership for higher employee commitment to
organization.
1.5. Scope of research:
This research was done in FPT Distribution Company in Ho Chi Minh City, focusing on
follower perspective.
1.6. Significance of research:
This dissertation contributes to understanding of emerging leadership styles in FPT
Distribution Company and their impacts on commitment. It helps managers to understand the
importance of improving the way of leading in order to increase employees‟ long-term
commitment.
1.7. Research structure:
This thesis comprises 5 chapters as below:
4
-
Chapter 1: Introduction
This chapter gives a brief introduction about research background, problem should be solved of
the company and objectives of research.
-
Chapter 2: Literature review and research model
This chapter introduces conceptual framework about some related concepts and theories of the
study, then hypotheses are built based on these basic concepts.
-
Chapter 3: Methodology
This chapter states the method used in research which includes research design and instrument,
data collection and sampling and also the way how to analyze data in order to test the
measurement and conceptual framework.
-
Chapter 4: Research results and analysis
This chapter presents and discusses the results of the correlation analysis of the research
hypothesis and the assessment of the reliability of the research data.
-
Chapter 5: Research discussion and Implications
After presenting the results of the research in the previous chapter, the implications of these
results are now discussed in the light of the literature review.
-
Chapter 6: Research conclusion and Recommendations
Research limitations are identified and recommendations of the research are also discussed in
this chapter.
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Chapter 2: LITERATURE REVIEW AND RESEARCH MODEL
2.1. Leadership:
2.1.1. Concepts:
2.1.1.1. Differences between Managers and Leaders:
Controversy has arisen over whether leaders are different from managers or they are the
same. Actually, both of them are essential for an organization‟s prosperity. While leaders
develop the vision, managers carry out the vision. Managers should therefore acknowledge the
importance of the leadership component of their work and be developed to become leaders who
achieve goals. Leadership is arguably based on purpose, change, and emotions, in contrast,
management is based on objectives, stability, and rationality. Below table defines some
differences between the two concepts:
Leaders
Managers
Are the heart of an organization
Are the brain of an organization
Motivate, encourage and work with people
Establish systems
Create a vision and set a direction, and share Create rules and operational procedures
with followers
Align people based on their knowledge, Are a task-oriented and often not peopleabilities and personality
oriented
Ask how and when
Ask what and why
Take you to a new place
Take care of where you are
Wonder that if the problem set in a new Think
environment might require a different solution
that
a
successful
solution
management problem can be used again
Write business plans, set budgets and monitor Get organizations and people to change
progress
Do things right
Do the right things
(Source: Colvard, 2009)
Table 1: Comparison between Leaders and Managers
6
to
a
2.1.1.2. Some definitions of leadership:
There are a number of definitions and views on the nature of leadership in the literature.
According to Sorenson (2002), Stogdill‟s Handbook of Leadership, first published in 1974, listed
4,725 studies of leadership and 189 pages of references. Therefore, it is complicated to find a
standard definition for leadership. Bass (1985b) also supported this idea by noting that finding
one specific definition of leadership is a very complex task as studies on this topic are varied and
there is no single generally accepted definition. In the literature, leadership has been identified as
an important subject in the field of organizational behavior. Generally speaking, leadership
involves influencing other individuals to act towards the achievement of a goal. Some definitions
describe leadership as an act of influence, some as a process and yet others have looked at a
person‟s trait qualities (Lussier and Achua, 2001).
Various authors regard leadership as the behaviour of an individual when directing the
activities of a group toward a shared goal. John Martin (2005) defined “leadership reflects the
ability of one person to direct and control the activities of others, albeit from a slightly different
perspective than that of management. It still reflects the process of influence and therefore the
exercise of power”. Lee and Chuang (2009) also explained that the excellent leader not only
inspires subordinate‟s potential to enhance efficiency but also meets their requirements in the
process of achieving organizational goals. Fry (2003) explained leadership as use of leading
strategy to offer inspiring motive and to enhance the staff‟s potential for growth and
development.
Some authors define leadership as a process whereby an individual influences a group of
individuals to achieve a common target. Vecchio (1997) describes leadership as a process
through which leaders influence the attitudes, behaviors and values of others towards
organizational goals. This was supported by Jacques and Clement (1994) who defined leadership
as a process in which one person sets the purpose or direction for others and gets them to move
along together with him/her in that direction with competence and commitment.
Other researches defined leadership as the process of moving a group (or groups) in the
same direction through mostly non-coercive means. This definition is consistent with some
researchers such as Bass (1990a) and Yammarino (1997). Bass has been in the forefront of
7
approaching leadership in terms of styles. He has described three well-known styles of
leadership: laissez-faire, transactional, and transformational leadership. Transformational leaders
encourage subordinates to adopt the organizational vision as their own, through inspiration, thus
adopting a long-term perspective and focus on future needs (Bass, 1990b). Transformational
leaders tend to have a holistic perspective of organizational factors. Transactional leaders, on the
other hand, identify and clarify job tasks for their subordinates and communicate how successful
execution of those tasks will lead to receipt of desirable job rewards (Bass, 1990b). According to
Avolio et al. (1991), a transactional leader determines and defines goals for their subordinates
and suggests how to execute tasks. They provide feedback and rewards on completed tasks.
These leaders motivate subordinates to achieve expected levels of performance by helping them
to recognise task responsibilities, identify goals and develop confidence about meeting desired
performance levels. They also make subordinates understand how their needs and the rewards
they desire are linked to goal achievement. Laissez-faire leaders abandon their responsibility,
leave their subordinates to work relatively on their own and avoid making decisions (Bass,
1990b).
2.1.2. Traditional leadership theories:
2.1.2.1. Trait Theory:
Early studies analysed leadership based on hereditary attributes and compared traits of
leaders with those of followers. Trait approach emphasizes attributes of leaders such as
personality, motives, values and skills. By identifying specific traits or characteristics of leaders,
one could distinguish a leader from a follower (Hughes, 2005, p.25)
Research concerning trait theory concentrated on the following factors: (a) physical factors
such as age, height, weight, physique, health and appearance; (b) ability factors such as fluency
of speech, tone of voice, academic performance, intelligence, judgment and decision, insight and
initiative; and (c) personality features such as integrity, emotional control, self-confidence and
popularity (Bass, 1990a). According to this theory, an individual must possess these traits or
characteristics in order to assume leadership.
8
Seeking to ascertain if trait theory accurately predicted leadership potential, Mann had
reviewed trait studies, and reported that the foundation of trait theory lacked validity. Hence,
Stogdill (1974) completed a second review of trait leadership research which identified factors
associated with energy, age, status, mobility, education and intelligence as being able to separate
effective leaders from ineffective leaders. However, Stogdill (1974) surmised that trait theory
research produced confusing results because a combination of traits proved effective in some
groups of leaders, while they were ineffective in others. Therefore, Stogdill concluded that
leadership requires more than just the study of people, but also the study of situations (Hughes,
2005, p26).
Stogdill (1948)
Mann (1959)
Stogdill (1974)
Lord et al.(1986)
Kirkpatrick and
Locke (1991)
Intelligence
Intelligence
Achievement
Intelligence
Drive
Alertness
Masculinity
Persistence
Masculinity
Motivation
Responsibility
Adjustment
Insight
Dominance
Integrity
Initiative
Dominance
Initiative
Confidence
Persistence
Extroversion
Self-confidence
Cognitive ability
Self-confidence
Conservatism
Responsibility
Task knowledge
Socialbility
Cooperativeness
Tolerance
Influence
Sociability
Table 2: Studies of leadership traits and characteristics (Northouse, 2001)
2.1.2.2. Behavioural Theory:
Failure of the trait theory led to further research that focused on behavioural styles of
leadership. Behavioural leadership proposed that behaviour of the leader impacted work and
follower effectiveness. This era of research focused on leadership behaviour as a mean of
identifying the best way to lead. Under this approach, many studies were carried out to support
this theory, majorly: McGregor‟s Theory X and Theory Y (1960), the Ohio State and University
9
of Michigan Models (in Hellriegel et al., 2004) and the Managerial Grid Model of Blake and
Mouton (1964).
McGregor‟s (1960) Theory X and Theory Y model proposed two distinct theories of
leadership behaviours: one negative labelled theory X and the other positive labeled theory Y.
His theories contend that leadership behaviours are based on an assumption about employees.
His Theory X assumption includes the belief that employees dislike work and will avoid it if
possible. According to McGregor (1960), here managerial behaviours include coercing
employees, controlling their tasks and activities, and directing their behaviours. McGregor‟s
(1960) Theory Y assumption includes the belief that employees can view work as a positive
experience given the right conditions. Here, managerial behaviours include providing
encouragement, positive reinforcement and rewards.
The Ohio State studies were viewed as influential because the research focused on
activities of leaders, instead of traits (Bryman, 1986). Through this research, the Leadership
Behaviour Description Questionnaire was developed. Results of the Ohio State studies indicated
two major dimensions of leadership behaviour, labelled “consideration” and “initiating
structure”. Consideration reflects the extent to which the leader establishes trust, mutual respect
and rapport with the group. This dimension is associated with two-way communication,
participation and the human relations approach to leadership. Initiating structure reflects the
extent to which the leader defines and consolidates group interactions toward attainment of
formal goals and organizes group activities. This dimension is associated with efforts to achieve
organizational goals.
Leadership research during the 1940s conducted at the University of Michigan compared
the behaviour of effective leaders with ineffective leaders. These studies resulted in the
development of two type of leadership behaviour (Bryman, 1986). Employee-centered leaders
focus on the individual needs of followers, while job-centered leaders direct activities toward
efficiency by focusing on reaching task goals and facilitating the structure of tasks. Although the
employee-centred and job-centred styles of leadership correspond to the Ohio State studies
concepts of consideration and initiating structure, the Michigan studies concluded that leaders
used one type of leadership and did not change styles depending on employee competency.
10
One popularized outgrowth of the emphasis on leader behaviour aimed at both task and
people issues is the Managerial Grid, developed by Robert Blake and Jane Mouton (Blake &
Mouton, 1985, p.10-11). The foundation of the theory is the contrast between two approaches to
the managerial role: (a) concern for production and (b) concern for people (Bryman, 1986).
Blake and Mouton believed that both concerns are essential ingredients of effective management
and each is conceptualized as a nine-point scale, thus producing eighty-one possible
combinations of managerial behaviour. They later added flexibility as a third variable. According
to Blake et al. (1964), leaders can only exhibit behaviours that fall into two primary categories
(task-oriented or people-oriented). Depending on which category is most frequently shown, a
leader could be placed along each of the two categories.
The behavioural approach looks at what effective and ineffective leaders actually do; how
they delegate tasks to subordinates, where and when they communicate to others and how they
perform their roles. Behavioural models made a great contribution to the understandings of
leadership, as the focus shifted from who leaders are (traits) to what leaders do (behaviours).
However, leadership behaviours that are appropriate in one situation aren‟t necessarily
appropriate in another. Because the behavioural models failed to uncover a leadership style that
were consistently appropriate to all situations, other leadership models were devised (Hellriegel,
et al., 2004).
2.1.2.3. Contingency Theory:
Contingency theories tried to predict which types of leadership style will be most effective
in different types of situations. Contingency approaches hypothesize that there are no universally
acceptable styles of leadership. A particular leadership style may prove valid in one situation, yet
ineffective in another. Many studies have attempted to isolate critical situational factors that
affect leadership effectiveness including the degree of structure in the task being performed, the
quality of leader-member relations, the leader‟s position power, subordinate‟s role clarity, group
norms, information availability, subordinate acceptance of leaders‟ decisions, and subordinate
maturity (Howell et al., 1986, p.88-102)
The models of contingency theory discussed include Leadership Continuum of
Tannenbaum and Schidt, Fiedler‟s Contingency Model, House and Mitchell‟s path-goal theory,
11
Hersey and Blanchard‟s Situational Leadership theory and Vroom and Yetton‟s Contingency
Model.
Fiedler‟s (1967) contingency theory posited that effective group performance was
dependent upon the appropriate match of the leader‟s personality and the situation. Personality
orientation of the leader is centered on a task or interpersonal style. Hellriegel and colleagues
(2004) indicated that leadership depends on matching a leader‟s style to a situation‟s demand.
Situational factors that influence leader effectiveness included leader-member relations, degree
of task structure, and power position of the leader. Leader-member relations referred to the
quality of the relationship between the leader and member (Fiedler, 1967). The leader‟s influence
over the members was enhanced through a strong relationship.
The path-goal theory of leadership (House, 1971) postulated that the eventual performance
and satisfaction of group members was highly influenced by the appropriateness of leader
behaviours in relation to member‟s needs and desires as well as the characteristics of the task.
Therefore, the function of the leader was to provide coaching, guidance and personal support to
members if necessary. The path-goal theory proposed that group members preferred a highly
structured regime when presented with ambiguous, varied and interdependent tasks. Initiating
structure and close supervision from the leader helped clarify the path-goal relationship and
increased the coordination, satisfaction and performance of the group members.
Hersey and Blanchard‟s (1977) situational leadership theory proposed that leaders should
vary their behaviours according to the member‟s maturity and they classified leader behaviours
along two dimensions: directive behaviour (similar to initiating structure and production-centred)
and supportive behaviour (similar to consideration structure and employee-centred). Directive
behaviour, described one-way directional communication from the leader to the member.
Supportive behaviour, described bidirectional communication from the leader when providing
social-emotional support for the member. Hersey and Blanchard (1977) also claimed that the
levels of directive and supportive leader behaviour should be based on the level of readiness of
the followers. Member maturity or readiness referred to the ability and willingness of members
to take responsibility for directing their own behaviour in relation to a specific task. These
behaviours are labeled as delegating, participating, selling, and telling.
12
Vroom and Yetton (1973) focused their research on decision-making rather than styles of
leadership. This model seeks to enhance the decision-making ability of the leader and the
follower‟s acceptance of those decisions. It was complex decision tree incorporating seven
contingencies whose relevance could be identified by making “Yes” or “No” choices (Robbins,
1997). Vroom and Yetton‟s model was normative, it provided a sequential set of rules that
should be followed for determining the form and amount of participation desirable in decision
making, as dictated by different types of situations (Robbins, 1997). The model presents three
basic styles: autocrative (where the leader unilaterally makes decisions), consultative (where the
leader solicits member inputs before deciding) and group (where the leader collaborates with
members to arrive at a joint decision).
The weakness of the contingency approach is that it failed to provide some universal
principles of leadership (Bass, 1990a). Yukl (2002) also stated that although situational
leadership theories provide insights into reasons for effective leadership, conceptual weaknesses
limit the approach‟s usefulness. Thus, it is difficult to derive specific testable propositions from
the approach, with the approach not permitting strong inferences about the direction of causality.
13
Figure 1: The basic leadership approaches
Note: Adapted from Amos and Ristow (1999). Small Business Management Series
Human Resources Management, pp134.
2.1.3. Full-range leadership theories:
In the past, there are many approaches to leadership theory. According to Yukl (2005),
numerous studies on the theory of leadership can be summarized into five broad theories,
namely, trait, behavioral, contingency or situational approach, contemporary integrative
approach, and power and influence approach. Although previous studies about these leadership
14
theories have different approaches, they all state that each leadership has their own distinct style
and it is totally different with others. However, this judgment seems unilateral since a leader may
employ different styles at different times actually. Therefore, the results and suggestions of these
researches cannot be applied in reality any more. This study applies the “full-range leadership
theory” as conceptualized by Bass (1985) and developed by Avolio and Bass (1991). The fullrange leadership theory model describes a full range of influencing styles from „non-leadership‟
to powerful transformational leadership behaviors. The model captures different kinds of
behaviors which make a difference to outcomes for associates of the leader. In other words, the
range of behaviors starts with transformational leader behaviors to transactional leader behaviors
reaching to the lowest leader interaction of laissez-faire leader behaviors (MLQ, undated; Bass et
al., 2003).
Bass (1985) argued that existing theories of leadership primarily focused on follower goal
and role clarification and the ways leaders rewarded or sanctioned follower behavior. This
transactional leadership was limited to inducing only basic exchanges with followers. Bass
suggested that a paradigm shift was required to understand how leaders influence followers to
transcend self-interest for the greater good of their units and organizations in order to achieve
optimal levels of performance. He referred to this type of leadership as transformational
leadership. Bass‟s original theory included four transformational and two transactional
leadership factors. Bass and his colleagues (Avolio & Bass, 1991; Avolio et al., 1991) further
expanded the theory based on the results of studies completed between 1985 and 1990. In its
current form, the Full Range Leadership theory represents nine single-order factors including
five transformational leadership factors, three transactional leadership factors, and one nontransactional laissez-faire leadership. These leadership styles have been described to have a
direct effect on individual and organisational level outcomes (Bass, 1990a).
Bass (1985a) based his descriptions of transformational and transactional leaders on
Burns‟s (1978) original ideas. Burns proposed that one could differentiate ordinary from
extraordinary leadership. He described transactional leaders as those leaders who influence
compliance by expected rewards. Transactional leadership is an exchange relationship that
involves the reward of effort, productivity and loyalty. Transformational leaders emphasize
higher motive development and arouse followers‟ motivation and positive emotions by means of
15
creating and representing an inspiring vision of the future (Bass, 1997). Transformational leaders
are those who motivate their followers to perform beyond expectation by raising the follower‟s
confidence levels and providing support for developing to higher levels. Followers feel a greater
degree of respect and trust for the leaders who spiritually encourage them to achieve their
working target. The main idea of this theory is that followers are more motivated to enhance
their performance by transformational leadership rather than transactional leadership (Bass &
Avolio, 1990b). The work of Bass and colleagues (Bass, 1990a) expanded Burns‟s factors of
leadership to include a third leadership style called laissez-faire leadership style. Bass (1990a)
described the laissez-faire leader as an extremely passive leader who is reluctant to influence
subordinates considerable freedom, to the point of abdicating his/her responsibilities. In a sense,
this extremely passive type of leadership indicates the absence of leadership.
Figure 2: A Model of the Full Range Leadership Development Theory (Bass and
Avolio, 1994: 5)
Avolio and Bass (1991) classify leadership into three major types of behaviour: laissezfaire (non-leadership), transactional, and transformational leadership. Bass (1990), proposed four
16
behaviours of transformational leadership including charisma, inspirational motivation,
intellectual stimulation, and individual consideration.
Idealized influence attributes or behaviors, or Charisma is characterized by vision and a
sense of mission, instilling pride in and among the group, and gaining respect and trust
(Humphreys & Einstein, 2003). Charismatic behaviour also induces followers to go beyond selfinterest for the good of the group, providing reassurance that obstacles will be overcome, and
promoting confidence in the achievement and execution influence (Howell and Frost, 1989) and
followers place an inordinate amount of confidence and trust in charismatic leaders (Howell and
Avolio, 1992). Idealized influence (attributes) refers to the socialized charisma of the leader,
whether the leader is perceived as being confident and powerful, and whether the leader is
viewed as focusing on higher-order ideals and ethics; while idealized influence (behaviors) refers
to charismatic actions of the leader that are centered on values, beliefs, and a sense of mission.
Turning to inspirational motivation, Bass (1985) pointed out that followers look up to their
inspirational leader as one providing emotional appeal to increase awareness and understanding
of mutually desirable goals. This characteristic was formed by the communication of high
expectations, using symbols to focus efforts, and expressing important purpose in simple ways.
The leaders always talk optimistic things about the future, articulate a compelling vision for the
future and provide an exciting image of organizational change (Bass and Avolio, 1994). The
leaders encourage followers to envision attractive future states, for the organization and
themselves (Bass et al, 1997).
Intellectual stimulation provides followers with challenging new ideas and encourages
them to break away from the old ways of thinking (Bass, 1985). The leader is recognized as one
who promotes intelligence, rationality, logical thinking, and careful problem solving. The
attributes include seeking differing perspectives when solving problems, suggesting new ways of
examining how to complete assignments and encouraging re-thinking of ideas that have not been
questioned in the past (Bass and Avolio, 1994).
Finally, the fourth dimension of transformational leadership is individual consideration
which is concerned with developing followers by coaching and mentoring (Bass, 1985; Bass &
Avolio, 1991). The leader pays close attention to the inter-individual differences among the
17
followers and act as mentor to the follower. He teaches and helps others develop their strengths,
and listens attentively to other‟ concerns (Bass and Avolio, 1994). Followers are treated
individually in order to raise their levels of maturity and to enhance effective ways of addressing
their goals and challenges (Bass, 1985).
Bass and Avolio (1997) described transactional leadership in terms of two characteristics:
the use of contingent rewards and management by exception.
Contingent reward is described as the reward that the leader will bestow on the subordinate
once the latter has achieved goals that were agreed to. It is therefore the exchange of rewards for
meeting agreed-on objectives. By making and fulfilling promises of recognition, paying
increases and advancement for employees who perform well, the transactional leader is able to
get things done.
Transactional leaders may also rely on active management by exception which occurs
when the leader monitors followers to ensure mistakes are not made, but otherwise, allows the
status quo to exist without being addressed (Bass & Avolio, 1995). In passive management by
exception, the leader intervenes only when things go wrong.
Both the transformational and transactional leadership are found to be contrasted with the
third style of leadership, called laissez-faire leadership (Bass, 1990 as cited in Bučiūnienė &
Škudienė, 2008). James & Collins (2008) described the laissez-faire leader as an extreme passive
leader who is reluctant to influence subordinates‟ considerable freedom, to the point of handing
over his/her responsibilities. In a sense, this extremely passive type of leadership indicates the
absence of leadership. Bass (1990a) concludes that there is a negative association between
laissez-faire leadership and a variety of subordinate performance, effort and attitudinal
indicators. This implies that laissez-faire leadership is always an inappropriate way to lead.
Leadership
theories
Trait Theories
Behavioural
Theories
Features
Limitation
Focused on leaders‟ physical ability Lacks validity, leaders without
and personality; leaders are borne.
traits ruled and vice versa;
difficult to list endless traits.
Contended that behaviours of the Absence of interaction with
leaders affect work and followers‟ situations; not explain why
effectiveness.
leaders fail.
18
This is a refinement of the situational Not explain the interpersonal
viewpoint and focuses on
behavior or the different effect on
identifying the situational variables members of the group; it is not
which best predict the most
practicable to allow the situation
appropriate or effective leadership continually determine who leads.
style to fit the particular
circumstances.
Transactional
Leadership is a social exchange, Emphasized on rewarding system,
Theory
where leaders guide or motivate their positive or negative. The effect on
followers in the direction of followers is short.
established goals by clarifying role,
task requirements and rewarding
system.
Transformational
Leaders motivate followers into a Lacked the overall view of
Theory
common vision that identifies high leaders‟ behaviours; other styles
goals for the organization, moves are needed for the prosperity of
them gradually from concerns for organizations, and a less level of
exchange to achievement and environment consideration than
growth. The effects last long.
transactional.
Full-range
Viewed the leadership behavior as a
leadership Theory
multi-dimensional construct, where
leaders may act transformational,
transactional
and
laissez-faire,
depending on the interaction among
all variables, including leaders,
followers,
situation,
work
environment and all related factors.
Table 3: Summary of the development of Full Range Leadership Theory (conceptualized by
Hassan Othman Saqer, 2009)
Contingency
Theories
2.2. Employee commitment:
2.2.1. Concepts:
Over the past few years, the study of commitment has advanced in many different
directions. A variety of disciplines have adopted the topic as a theme in their research and these
have offered fresh and significant insights. These recent advances include new approaches to the
conceptualisation of employee commitment.
Newstrom and Davies (2002) define employee commitment as the degree to which an
employee identifies with the organization and wants to continue actively participating in it. Like
a strong magnetic force attracting one metallic object to another, it is a measure of the
19
employees‟ willingness to remain with a firm in the future. It often reflects the employees‟ belief
in the mission and goals of the firm, willingness to expend effort in their accomplishment, and
intentions to continue working there. Commitment is usually stronger among longer-term
employees, those who have experienced personal success in the organization, and those working
with a committed employee group.
Luthans (1995) explains that, as an attitude, organizational commitment is most often
defined as:
• a strong desire to remain a member of a particular organization;
• a willingness to exert high levels of effort on behalf of the organization; and
• a definite belief in and acceptance of the values and goals of the organization.
In other words, this commitment is an attitude about employees‟ loyalty to their
organization and is an ongoing process through which organizational participants express their
concern for the organization and its continued success and well-being. The organizational
commitment attitude is determined by a number of personal (age, tenure in organization, and
dispositions such as positive or negative affectivity, or internal or external control attributions)
and organizational (the job design and leadership style of one‟s supervisor) variables. Even nonorganizational factors such as the availability of alternatives, after making the initial choice to
join an organization, will affect subsequent commitment.
Meyer & Allen (1997) [as cited in Meyer & Becker, 2004] define a committed employee
as being one “stays with an organization, attends work regularly, puts in a full day and more,
protects corporate assets, and believes in the organizational goals”. This employee positively
contributes to the organization because of its commitment to the organization. Organizational
commitment is associated with increased satisfaction, performance, and organizational
adaptability (Meyer & Becker, 2004), as well as decreased absenteeism and employee turnover
(Lo et al., 2010).
According to Madigan et al. (1999), committed employees would work diligently,
conscientiously, provide value, promote the organization‟s services or products and seek
continuous improvement. In exchange, they expect a work environment that fosters growth and
20
empowerment, allows for a better balance of personal and work life, provides the necessary
resources to satisfy the needs of customers and provides for their education and training as well
as that of their co-workers.
Hellriegel (2001) emphasizes that organizational commitment goes beyond loyalty to
include an active contribution to accomplishing organizational goals. Organizational
commitment represents a broader work attitude than job satisfaction because it applies to the
entire organization rather than just to the job. Further, commitment typically is more stable than
satisfaction because day-to-day events are less likely to change it.
2.2.2. Components of employee commitment:
The most popular multi-dimensional approach to organizational commitment is the
conceptualization of Meyer and his colleagues. This theory differs from others in the nature of
the psychological state being described. In 1984, Meyer and Allen, based on Becker‟s side-bet
theory, introduced the dimension of continuance commitment to the already existing dimension
of affective commitment. As a result, organizational commitment was regarded as a bidimensional concept that included an attitudinal aspect as well as a behavioral aspect. In 1991,
Allen and Meyer added a third component, that is, normative commitment to their two
dimensions of organizational commitment. They proposed that commitment as a psychological
attachment may take the following three forms: the affective, continuance and normative forms.
Affective commitment refers to an employee's emotional attachment to, involvement in, and
identification with the organization and its goals. Affective commitment involves three aspects
such as the formation of an emotional attachment to an organization, identification with, and the
desire to maintain organizational membership (Allen & Meyer, 1991).
Continuance commitment is a commitment situation originating from the needs of
employees to stay in the organization considering the costs of leaving. In continuance
commitment, the employees consider the disadvantages of leaving the organization and avoid
quitting. Continuance commitment also includes factors such as years of employment or benefits
that the employee may receive that are unique to the organization (Hunt and Morgan, 1994).
21
The third dimension of employee commitment is normative commitment, which reflects a
feeling of obligation to continue employment. Those with high levels of normative commitment
stay with an organization because they feel they ought to remain (Allen & Meyer, 1991).
Normative commitment can be explained by other commitments such as marriage, family,
religion, etc. Therefore, when it comes to one‟s commitment to their place of employment, they
often feel like they have a moral obligation to the organization.
2.3. Relationship between leadership and employee commitment:
Several studies have reported the relationship between two variables: commitment and
leadership style. According to Stum (1999), employee commitment reflects the quality of the
leadership in the organization. It is important for the company to know what are the aspects that
plays important role or have big impact in boosting the commitment of the employees. Hence, in
order to be effective, it is critical for managers to influence their subordinates, peers, and
superiors, to assist and support their proposals, plans, and to motivate them to carry out with
their decisions. Swanepoel et al. (2000) highlighted that leadership styles that encourage
employee commitment is essential in order for an organization to successfully implement
business strategies, achieve their goals, gain competitive advantage and optimize human capital.
Previous researchers on managerial performance pointed out that an important component of
successful management is the ability to influence others. As such, committed employees are
more motivated and dedicated towards meeting and achieving organizational goals.
Lee (2004) found out that transformational leadership correlates significantly with
organizational commitment with samples of research and development professional in
Singapore. On the other hand, Hayward et al. (2004) noted that transformational leadership has
moderate positive correlation with affective commitment. Other researchers such as Kent and
Chelladurai (2001) posited that individualised consideration has positive relationship with both
affective commitment and normative commitment. Similarly, positive correlations was found
between intellectual stimulation and both affective commitment and normative commitment.
Bass and Avolio (1994) revealed that transformational leaders who encourage their
followers to think critically and creatively can have an influence on their followers‟ commitment.
22
Transformational leadership helps to increase trust, commitment and team efficacy. Also in this
research, Bass and Avolio (1994) further suggest that employees are far more likely to be
committed to the organization if they have confidence with their leaders. This is further
supported by Walumbwa and Lawler (2003) that transformational leaders can motivate and
increase followers‟ motivation and organizational commitment by getting them to solve
problems creatively and also understanding their needs. Hence, hypotheses are formulated as
follow:
H1: Idealized influence is positively related to employee commitment.
H2: Inspirational motivation is positively related to employee commitment.
H3: Intellectual stimulation is positively related to employee commitment.
H4: Individual consideration is positively related to employee commitment.
Contrary to transformational leadership, transactional one does not have significant
relationship with organizational commitment. Similarly, Hayward et al. (2004) indicated that no
correlation was found between transactional leadership and affective, normative and continuance
commitment. However, Bass (1985) insisted that rewarding when employees reached targets had
a positive and considerable influence on their next attempt and increased their work efficiency.
In addition, when subordinates made mistakes, if leaders directed and gave them valuable
advises, they would be more confident and dedicated to the organization. This would lead to
significant effect on a staff‟s work. Hence, hypotheses are formulated as follow:
H5: Contingent reward is positively related to employee commitment.
H6: Active management by exception is positively related to employee commitment.
H7: Passive management by exception is positively related to employee commitment.
Bass et al. (1997) conceptualized a third type of leadership, laissez‐faire leadership, which
was hypothesized to occur when there is an absence or avoidance of leadership. In this case the
decisions are delayed, and reward for involvement is absent. No attempt is made to motivate the
followers, or to recognize and satisfy their needs. The research of Nyengane, M.H. (2007)
indicates a weak, but significant and negative correlation between laissez-faire leadership
23
behaviour and affective commitment. The results also suggest that this leadership behaviour will
have a negative influence on the affective commitment. Hence, hypothesis is formulated as
follow:
H8: Laissez-faire leadership is negatively related to employee commitment.
Although many previous researchers had various studies about the relationship between
leadership style and employee commitment in an organization, there seems so few researches
applied in IT distribution company. Also, from the original theory of Bass and Avolio (2000) and
Meyer and Allen (1997), some measurements are developed to make the research suitable for
FDC‟s reality and shown in research instrument. These characteristics will make my research
different and special from other previous studies.
24
2.4. Research model and hypothesis:
Based on the literature review, the conceptual framework is developed as follows:
Idealized influence
H1 (+)
Inspirational motivation
H2 (+)
Intellectual stimulation
H3 (+)
Employee commitment:
H4 (+)
Individual consideration
- Affective
H5 (+)
- Continuance
Contingent reward
H6 (+)
- Normative
H7 (-)
Active management by exception
H8 (-)
Passive management by exception
Laissez-faire leadership
Figure 3: Conceptual framework
Due to above framework, the hypotheses are formed as follows:
H1: Idealized influence is positively related to employee commitment.
H2: Inspirational motivation is positively related to employee commitment.
H3: Intellectual stimulation is positively related to employee commitment.
H4: Individual consideration is positively related to employee commitment.
H5: Contingent reward is positively related to employee commitment.
H6: Active management by exception is positively related to employee commitment.
H7: Passive management by exception is positively related to employee commitment.
H8: Laissez-faire leadership is negatively related to employee commitment.
25
Chapter 3: METHODOLOGY
3.1. Research design:
As King (1994) cited in his research that an effective research design links abstract and
stylized concepts and questions with the empirical world‟s complexities and challenges. A
research design must at once be specific and highly flexible. It must be expansive enough to
adapt these very complexities while still pointing you towards relevant data.
The research design is a comprehensive master plan of the research study to be undertaken,
giving a general statement of the methods to be used. The function of a research design is to
ensure that requisite data in accordance with the problem at hand is collected accurately and
economically. Simply stated, it is the framework, a blueprint for the research study which guides
the collection and analysis of data. The research design, depending upon the needs of the
researcher may be a very detailed statement or only furnish the minimum information required
for planning the research project.
According to Babbie and Mouton (2004), there are different types of social research
methods that can be identified from the literature, namely exploratory research, descriptive
research and explanatory research. Babbie and Mouton (2004) concluded that the aims for social
research vary a great deal, ranging from, gaining new sights into the phenomenon; undertaking
preliminary investigation before a more structured study of the phenomenon is done; describing
central concepts and constructs of a phenomenon; determining priorities for the research and
developing new hypotheses about existing phenomena. Since the objective of the research is to
explore the relationship between leadership style being practiced within FPT Distribution
Company and organizational commitment to the organization, the research design for this study
is an exploratory case study that is analysed through mixed method.
Quantitative research involves the collection of data so that information can be quantified
and subjected to statistical treatment in order to support or refute “alternate knowledge claims”
(Creswell, 2003, p. 153). Qualitative research is also described as an unfolding model that occurs
in a natural setting that enables the researcher to develop a level of detail from high involvement
in the actual experiences (Creswell, 1994). What constitutes qualitative research involves
26
purposeful use for describing, explaining, and interpreting collected data. Leedy and Ormrod
(2001) alleged that qualitative research is less structured in description because it formulates and
builds new theories. Qualitative research can also be described as an effective model that occurs
in a natural setting that enables the researcher to develop a level of detail from being highly
involved in the actual experiences (Creswell, 2003).
Quantitative research is an inquiry into an identified problem, based on testing a theory,
measured with numbers, and analyzed using statistical techniques. The goal of quantitative
methods is to determine whether the predictive generalizations of a theory hold true.
In contrast to the quantitative approach, qualitative research approaches reality from a
constructivist position, which allows for multiple meanings of individual experiences. In this
approach a researcher develops a complex, holistic picture, analyses words, reports detailed
views of informants, and conducts the study in a natural setting (Creswell, 2007). The goal of
qualitative research is to explore and understand a central phenomenon in a qualitative research
study (Creswell, 2005). Qualitative research uses a naturalistic approach that seeks to understand
phenomena in context-specific settings, such as "real world setting [where] the researcher does
not attempt to manipulate the phenomenon of interest" (Patton, 2002). Qualitative research,
broadly defined, means "any kind of research that produces findings not arrived at by means of
statistical procedures or other means of quantification" (Strauss and Corbin, 1990, p. 17) and
instead, the kind of research that produces findings arrived from real-world settings where the
"phenomenon of interest unfold naturally" (Patton, 2002). Unlike quantitative researchers who
seek causal determination, prediction, and generalization of findings, qualitative researchers seek
instead illumination, understanding, and extrapolation to similar situations.
Because all methods of data collection have limitations, the use of multiple methods can
neutralize or cancel out some of the disadvantages of certain methods. As well, the strengths of
each approach can complement each other. Therefore, this study is conducted by using both
qualitative and quantitative research called mixed method research. Quantitative is the main
method and will be supported by qualitative method. Mixed method research is the type of
research in which a researcher or team of researchers combines elements of qualitative and
quantitative approaches (e.g., use of qualitative and quantitative viewpoints, data collection,
analysis, inference techniques) for the purpose of breadth and depth of understanding and
27
corroboration (Johnson et al,. 2007). Mixed methods in social science research are defined as a
technique that “mixes or combines quantitative and qualitative research techniques, methods,
approaches, concepts or language into a single study” (Johnson and Onwuegbuzie, 2004:17).
Johnson and Onwuegbuzie (2004) hoped that the mixed methods approach to research provided
researchers with an alternative to believing that the quantitative and qualitative research
approaches are incompatible and, in turn, their associated methods “cannot and should not be
mixed” (p. 14). With the mixed methods approach to research, researchers incorporate methods
of collecting or analyzing data from the quantitative and qualitative research approaches in a
single research study (Creswell, 2003; Johnson & Onwuegbuzie, 2004; Tashakkori & Teddlie,
2003). That is, researchers collect or analyze not only numerical data, which is customary for
quantitative research, but also narrative data, which is the norm for qualitative research in order
to address the research question(s) defined for a particular research study. The goal for
researchers using the mixed methods approach to research is to draw from the strengths and
minimize the weaknesses of the quantitative and qualitative research approaches (Johnson &
Onwuegbuzie, 2004).
28
3.2. Research process:
Define research problem and identify
research objectives
Give conclusion and
recommendations
Review related literature
Findings
Build conceptual framework
Test hypothesis
Produce draft questionnaires
Restate research model
Conduct pilot test
Analyze data
Generate final questionnaire
Process data
Define samples and sample size
Collect data
Figure 4: Research process
3.3. Population and Data sampling:
Trochin (2000) describes a research population as a group that the researcher wants to
generalize to and the sample as the group of people that are selected to be in the study. This was
supported by Zikmund (2003) when he defined a sample as a subset, or some part, of a larger
population. The definition of the sample is of vital importance as the results of an investigation are
not trustworthy more than the quality of the population or representativeness of the sample. The
targeted population for this study is all leaders and employees in 12 different departments of FDC in
Ho Chi Minh City only.
29
According to the literature when utilizing factor analysis, it is critical that more subjects
than variables are sampled for algebraic reasons, and that the ratio of subjects to variables ranges
from 2:1 and 100:1 (Costello & Osborne, 2005), with a preference towards larger ratios to
improve factor reliability. Costello and Osborne (2005) are of the opinion that a sample subject
to item ratio of 2:1 is insufficient, they note that even with large subject to item ratios, for
instance 20:1, exploratory factor analysis (EFA) is still prone to error. The variability in the
literature suggests there is contention in terms of ideal sample size, and that this is as yet an
unsettled dispute. However, the ratio of 5:1 is considered the rule of thumb by contemporary
writers (Hair et al., 2010). In factor analysis, a sample size of 100 or greater is advised (Hair et
al., 2010). A sample of 100 is sufficiently large enough to produce reliable factors. If less than
100 subjects is used then replication studies are required using other samples for purposes of
validity.
This study focuses on FDC‟s leaders and employees as the population of interest and the
company as the case study organization. It also applies the 5:1 principle (Hair et al., 2010) in
determining sample size. The MLQ and OCQ will be given to both leaders and employees in
FDC. They have to answer total 41 questions: 31 questions in MLQ and other 10 questions in
OCQ. Therefore, in order to collect at least 5 responses per 1 observed variable, the study need to
collect at the minimum sample size of 205 responses (n = 41 x 5 = 200). To get this sample size,
250 questionnaires were given to employees.
3.4. Data collection:
In order to identify the objective of investigating whether leadership style has any effects
on employee commitment to the organization, this study incorporated both primary and
secondary sources of data.
According to Creswell (2003), it is useful to consider the full range of possibilities for data
collection in any study and to organize these approaches by their degree of predetermined nature,
their use of closed – ended versus open – ended questioning, and their focus for numeric versus
non – numeric data analysis. The following approaches can be used in data collection in mixed
30
research, open – ended questions, closed – ended questions, observation, document data, text and
image analysis, interviews, focus groups, archived and research data.
3.4.1. Secondary data:
In „„secondary data analysis,‟‟ the individual or group that analyzes the data is not involved
in the planning of the experiment or the collection of the data. Such analysis can be done based
upon information that is available in the statistical information in the published articles, the data
available in the text, tables, graphs, and appendices of the published articles, or upon the original
data.
These data sets, generally collected by governments, research institutions, and, in some
cases, agencies, provide researchers with readily available resources to examine characteristics
of populations or particular hypotheses (Vartanian, 2010, p3). Using large secondary data sets
provides an alternative to the collection of primary data, often giving the researcher access to
more information than would be available in primary data sets. Secondary data can include any
data that are examined to answer a research question other than the question(s) for which the data
were initially collected.
The secondary data of this study is gained from two main sources. Firstly, data was
collected from the human resources in order to find out the number of people who quit and were
hired in recent years. Then, based on comparing these two proportions, the researcher will give
some reasons and link to the research topic. Secondly, data is also compiled from many sources
like e-sources, library books, and journals/articles. This data is used to get better insight on the
research topic, to establish the viable platform for the theoretical framework constituting the
bases of this research, and to design the sample frame and questionnaire for retrieving the
primary data. Another advantage of using secondary data is its comparability character. The
researcher used it to validate and compare the data get through questionnaire to existing literature
and articles.
3.4.2. Primary data:
Primary data sets are collected by the researchers who will also examine that data.
Researchers collect primary data directly through interviews, questionnaires, focus groups,
observation, the examination of primary sources such as writings or speeches, or a variety of
31
other such collection methods (Vartanian, 2010, p3). According to Biggam (2008), primary data
is the information that the researcher finds out by him/herself regarding a specific topic. The
main advantage with this type of data collection is that it is collected with the research‟s purpose
in mind. This means that the information resulting from it is more consistent with the research
questions and purpose. The data collected by me is directly linked with this study, thus providing
me with important information.
As this study is basically empirical in nature, primary data was gathered from academic
employees (instructors) and their leaders/supervisors to answer the above questions. Hence, the
more emphasize is inclined to the primary data source. Primary data is gathered from interview
and survey as below:
In-depth interviews: interview both leaders and staff to identify the factors which are
appropriate with company context.
Questionnaire: measure each of the components in full range leadership theory through a
survey of total 30 to 40 questions.
3.4.2.1 Preliminary research:
a) Interview:
Semi structured interviews were conducted to further explore other factors which the close
ended questionnaires could not delve into that could influence the employees decision to remain
in the organization. Therefore, a draft structured questionnaire was delivered to 15 employees.
Based on their feedback, the draft questionnaire would be add or eliminate the factor in order to
make it more understandable and suitable for FDC environment.
After the interview, based on respondents‟ comments, researcher added some variables
which were then tested in the final survey into the questionnaire such as:
-
In Multifactor Leadership Questionnaire: add “Keep track of all results and mistakes
through KPI” to Measurement for Active management by exception.
-
In Organizational Commitment Questionnaire: add “I would not leave this organization
right now because I am familiar with the process here and afraid of challenge of new job”
to Measurement for continuance commitment.
32
And add “I would not leave this
organization right now because my project has just started” to Measurement for
normative commitment.
The details of adding new variables are clearly presented in table 3.1 and 3.2.
b) Pilot test:
Pilot testing involves conducting a preliminary test of data collection tools and procedures
to identify and eliminate problems, allowing researcher to make corrective changes or
adjustments before actually collecting data from the target population. Pilot testing gives
researcher an opportunity to make revisions to instruments and data collection procedures to
ensure that appropriate questions are being asked, the right data will be collected, and the data
collection methods will work. Researcher delivered draft questionnaire to 10 people and used
their feedback to adjust and eliminate question. After pilot test, there are 40 questions left and
some questions are adjusted to make questionnaire understandable and easier to answer.
3.4.2.2 Final survey:
a) Questionnaire design:
Questionnaire was designed in Vietnamese, and divided into three main parts (Appendix):
-
Part 1: asks participants 5 questions related to basic information such as age, gender,
experience, education and position to classify participants.
-
Part 2: is designed to collect assessments from employees and leaders about leadership
styles they receive in FDC.
-
Part 3: includes questions about respondents‟ commitment.
Part 2 and 3 comprises of 40 questions and 10 variables in total. The measurement bases on
a 5-point rating scale which corresponding to 1 = strongly disagree, 2 = disagree, 3 = neither
agree nor disagree, 4 = agree, 5 = strongly agree.
The designed questionnaire is distributed via internal mailing system. This is a nonpersonal technique of data collection due to the fact that the respondents complete the
questionnaires without the interviewer being present. Each questionnaire was accompanied by a
further covering letter explaining the purpose of the study to the prospective respondent. General
33
instructions on completing the questionnaire and the importance of completing all questions were
included. The covering letter also explained why it is important that the potential respondent
personally complete the questionnaire. This technique of data collection addressed issues of cost,
time and geographical constraints. After each 2 days in one week, there is a reminding email.
The respondents are instructed during the administration of the questionnaires by the researcher
to mark the most suitable answer.
b) Research instruments:
This research will be conducted using two separate instruments. Following is an overview
of the instrumentation selection process and a discussion of the instruments that will be used as
part of this research. Two questionnaires were used to obtain information and identify the
leadership styles and employees‟ commitment, that is, the Multifactor Leadership Questionnaire
(MLQ) and the Organizational Commitment Questionnaire (OCQ) developed by Bass and
Avolio (1997) and Meyer and Allen (1997) respectively. These were used because they have
been tested in many different organisational settings and found to be reliable.
Leadership measurement:
The instrument for data collection was a version of the most recent Multifactor Leadership
Questionnaire (MLQ Form 5x-Short) developed by Bass and Avolio (2000) to measure all eight
dimensions of the transformational-transactional or full range leadership model. These eight
dimensions are as follows: (a1) Idealized Influence (Attributed) (a2) Idealized Influence
(Behavior) (b) Inspirational Motivation (c) Intellectual Stimulation (d) Individual Consideration
(e) Contingent Reward (f) Management-by-Exception (Active) (g) Management–by-Exception
(Passive) (h) Laissez-faire Leadership. The separation of the Idealized Influence/Charisma
dimension into (a1) and (a2) in the MLQ reflects the recommendation by House et al. (1991) that
behavioral and attributed Idealized Influence be differentiated on the basis that charisma is
demonstrated by leadership behavior and is also a quality attributed to a leader by followers.
34
Measurement for Idealized Influence (Attributed)
1
Leaders talk about their most important values and Bass and Avolio (2000)
beliefs
2
Emphasize the importance of having a collective sense Bass and Avolio (2000)
of mission
3
Leaders respect people as valuable, unique, imperfect Bass and Avolio (2000)
and developing souls
Measurement for Idealized Influence (Behavior)
4
Go beyond self-interest for the good of the group
Bass and Avolio (2000)
5
Make subordinates feel good to be around employers
Bass and Avolio (2000)
6
Leaders instill pride in others for being associated with Bass and Avolio (2000)
them
Measurement for Inspirational Motivation
7
Talk optimistically about the future
Bass and Avolio (2000)
8
Help others see their purpose of working
Bass and Avolio (2000)
9
Express with a few simple words what others could and Bass and Avolio (2000)
should do
10
Provide attractive images about what others can do
Bass and Avolio (2000)
Measurement for Intellectual Stimulation
11
Suggests new ways of looking at how to complete Bass and Avolio (2000)
assignments
12
Seeks differing perspectives when solving problems
Bass and Avolio (2000)
13
Rethink ideas that they had never questioned before
Bass and Avolio (2000)
Measurement for Individual Consideration
14
Give personal attention to others who seem rejected.
Bass and Avolio (2000)
15
Let others know how I think they are doing
Bass and Avolio (2000)
16
Help others to develop my strengths
Bass and Avolio (2000)
17
Treat others as an individual rather than just as a Bass and Avolio (2000)
member of a group
Measurement for Contingent Reward
35
18
Tell others what to do if they want to be rewarded for Bass and Avolio (2000)
their work
19
Provide recognition/rewards when others reach their Bass and Avolio (2000)
goals
20
Make other pay attention to what they can get if they Bass and Avolio (2000)
accomplish their work
Measurement for Active management by exception
21
Focus attention on irregularities, mistakes, exceptions, Bass and Avolio (2000)
and deviations from standards.
22
Keep track of all results and mistakes through KPI
FDC
evaluates
performance
of
the
employees
through KPI every quarter
23
Direct subordinates‟ attention toward failures to meet Bass and Avolio (2000)
standards
24
Tell others the standards they have to know to carry out Bass and Avolio (2000)
their work
Measurement for Passive management by exception
25
Fail to interfere until problems become serious
Bass and Avolio (2000)
26
Wait for things to go wrong before taking action
Bass and Avolio (2000)
27
As long as things are working, leaders do not try to Bass and Avolio (2000)
change anything.
Ask others to do basic things, not encourage them to try
to learn more from work
Measurement for Laissez-faire
Bass and Avolio (2000)
29
Avoid getting involved when important issues arise
Bass and Avolio (2000)
30
Avoid making decisions
Bass and Avolio (2000)
31
Delay responding to urgent questions
Bass and Avolio (2000)
28
Table 4: Measurement for leadership variable
Employee commitment measurement:
The Allen & Meyer‟s (1997) OCQ was selected as the measure of employees‟
organizational commitment for this study. This OCQ which is a self-scoring questionnaire
36
consists of three dimensions as “Affective commitment”, “Continuance commitment” and
“Normative commitment”.
Measurement for affective commitment
1
I feel like part of the family at this organization
Meyer and Allen (1997)
2
I feel emotionally attached to this organization
Meyer and Allen (1997)
3
This department has a great deal of personal meaning Meyer and Allen (1997)
for me
Measurement for continuance commitment
4
Too much of my life would be disrupted if I decided Meyer and Allen (1997)
that I wanted to leave this organization now.
5
I feel that I have very few options to consider leaving Meyer and Allen (1997)
this organization
6
It would be very costly for me to leave this Meyer and Allen (1997)
organization right now.
7
I would not leave this organization right now because I FDC has a close and standard
am familiar with the process here and afraid of process, and when people get
challenge of new job.
used to the process here, they
will be more passive and be
lazy to change work.
Measurement for normative commitment
8
I would not leave this organization right now because FDC has many long-term
my project has just started.
projects, if employees stop in
the middle of project, they will
receive nothing.
9
I would feel guilty if I left my organization now
Meyer and Allen (1997)
10
This organization deserves my loyalty
Meyer and Allen (1997)
Table 5: Measurement for employee commitment variable
37
3.5. Data analysis:
3.5.1. Coding data:
Once the questionnaires had been completed, the responses in each question were then
coded. These scores were captured in a Microsoft Excel spreadsheet for statistical analysis with
respect to Demographic, Leadership and Employee Commitment variables.
In section related to demographic, there are five items: age, gender, working experience,
education and working position.
Age: an ordinal variable ranges as following:
-
Under 25 years old: coding = 1
-
25 – 30 years old: coding = 2
-
Over 30 years old: coding = 3
Gender: a nominal variable ranges as following:
-
Male: coding = 1
-
Female: coding = 2
Working experience: an ordinal variable ranges as following:
-
Less than 1 to 2 years: coding = 1
-
Less than 3 to 5 years: coding = 2
-
More than 5 years: coding = 3
Education: an ordinal variable ranges as following:
-
Bachelor: coding = 1
-
Master: coding = 2
-
Others: coding = 3
Working position: an ordinal variable ranges as following:
-
Employee: coding = 1
-
Manager: coding = 2
-
Director: coding = 3
The responses in the two remaining sections used 5-point Likert scale from Strongly
Disagree to Strongly Agree and were coded as following:
-
Strongly Disagree: coding = 1
38
-
Disagree: coding = 2
-
Neither Agree Nor Disagree: coding = 3
-
Agree: coding = 4
-
Strongly Agree: coding = 5
The details of subscales were coded as shown in below table:
CONCEPT
CONSTRUCT
Gender,
CODING OF OBSERVABLE VARIABLES
Demographic
Age,
Working DEMOGR01,
DEMOGR02,
DEMOGR03,
(Control Factors)
Experience,
DEMOGR04, DEMOGR05
Idealized Influence
IDEALI01, IDEALI02, IDEALI03, IDEALI04,
IDEALI05, IDEALI06
Leadership
(Independent
Factors)
Inspirational motivation
INSPIR07, INSPIR08, INSPIR09
Intellectual stimulation
INTELL10, INTELL11, INTELL12
Individual consideration
INDIVI13, INDIVI14, INDIVI15, INDIVI16
Contingent reward
CONTIG17, CONTIG18, CONTIG19
Management by exception
MANAGE20,
MANAGE21,
MANAGE22,
MANAGE23,
MANAGE24,
MANAGE25,
MANAGE26, MANAGE27
Laissez-faire
LAISSE28, LAISSE29, LAISSE30
Employee
Affective commitment
AFFECT31, AFFECT32, AFFECT33
Commitment
Continuance commitment
CONTIN34,
(Dependent
Factors)
CONTIN35,
CONTIN36,
CONTIN37
Normative commitment
NORMAT38, NORMAT39, NORMAT40
Table 6: Summary of coding variables
3.5.2. Descriptive statistics:
Descriptive statistics are used to describe the basic features of the data in a study. They
provide simple summaries about the sample and the measures. Together with simple graphics
analysis, they form the basis of virtually every quantitative analysis of data. The common purpose
of these techniques is to summarize both variability (that is the spread of the numbers) and the centre
of data by using mean and standard deviation, respectively.
39
3.5.3. Reliability and Validity test:
Reliability and validity are two key components to be considered when evaluating a
particular instrument.
Cronbach‟s alpha coefficients were calculated to estimate the reliability of the MLQ and
OCQ instruments of this research. Cronbach‟s alpha is a common measure of internal
consistency (reliability) of a test or scale. Internal consistency describes the extent to which all
the items in a test measure the same concept or construct and hence it is connected to the innerrelatedness of the items within the test (Tavakol et al., 2011). The Cronbach‟s Alpha is
interpreted as a coefficient Alpha and its value ranges from 0 to 1. Sekaran (2000) advises that
when calculating Cronbach‟s reliability coefficient, reliabilities less than 0.6 are considered poor,
reliabilities within 0.7 ranges are considered acceptable and those coefficients over 0.8 are
considered good.
Exploratory factor analysis is used in order to both examine the structure or relationship
between variables and evaluate the construct validity. Exploratory factor analysis is a powerful
statistical technique which is used for data reduction and summarization. In EFA, the research
can apply Kaisaer-Meyer-Olkin (KMO) to test the correlation matrix of the variables. The KMO
index ranges from 0 to 1, with 0.50 considered suitable for factor analysis. All elements on the
diagonal of the matrix should be greater than 0.5 if the sample is adequate (Field, 2000). By
performing exploratory factor analysis, investigator can decide the number of factors to extract in
the model. According to Kaiser, factor which has eigenvalue 30
Gender
MALE
FEMALE
Experience
1 - 2 years
2 - 5 years
> 5 years
1 - 2 years
Education
BACHELOR
MASTER
Position
EMPLOYEE
MANAGER
Percent
Valid Percent
Cumulative Percent
12
157
41
5.7
74.8
19.5
5.7
74.8
19.5
5.7
80.5
100.0
116
94
55.2
44.8
55.2
44.8
55.2
100.0
48
124
38
48
22.9
59.0
18.1
22.9
22.9
59.0
18.1
22.9
22.9
81.9
100.0
22.9
208
2
99.0
1.0
99.0
1.0
99.0
100.0
176
29
83.8
13.8
83.8
13.8
83.8
97.6
42
DIRECTOR
5
2.4
2.4
Table 7: Summary of demographic data
100.0
4.3. Results of Validity test:
This research chose to apply principal component in EFA step.
4.3.1. Exploratory factor analysis –EFA of independent variables:
After 12 rounds of running EFA, the result for independent variables found that initial
eight components reduce to six components extracted with eigenvalues greater than 1.
Researcher eliminated 11 variables which had factor loading lower than 0.5 such as IDEALI01,
IDEALI02, IDEALI05, INSPIR09, INDIVI15, INDIVI16, MANAGE20, MANAGE21,
MANAGE22, MANAGE23, MANAGE24. Finally, after making exploratory factor analysis,
leadership scale includes 19 observed variables and divided into 6 components. The results are
shown as table below:
Component
1
2
CONTIG17
.898
CONTIG18
.894
CONTIG19
.893
3
INSPIR08
.805
INDIVI13
.729
INDIVI14
.714
INSPIR07
.666
4
IDEALI06
.794
IDEALI04
.784
IDEALI03
.718
43
5
6
MANAGE26
.812
MANAGE25
.739
MANAGE27
.706
LAISSE30
.805
LAISSE28
.788
LAISSE29
.685
INTELL10
.767
INTELL11
.732
INTELL12
.626
Table 8: Rotated Component Matrix
Besides, exploratory factor analysis is adequate with KMO value of 0.717 and Sig. value of
.000. In addition, with Cumulative % of Variance of 64.329%, these 6 factors explain 64.329%
of leadership variance.
Kaiser-Meyer-Olkin Measure of Sampling Adequacy.
Approx. Chi-Square
Bartlett's Test of Sphericity
.717
1181.657
df
171
Sig.
.000
Table 9: KMO and Bartlett's Test
4.3.2. Exploratory factor analysis –EFA of dependent variables:
Employee commitment scale includes 3 items. In KMO and Bartlett's Test, KMO value
measuring the sampling adequacy equals to 0.826 with Sig. is .000. These numbers confirm the
validity of data for exploratory factor analysis.
Kaiser-Meyer-Olkin Measure of Sampling Adequacy.
Approx. Chi-Square
44
.826
658.523
Bartlett's Test of Sphericity
df
45
Sig.
.000
Table 10: KMO and Bartlett's Test
The analysis extracts 3 components which have eigenvalues of 3.906, 1.306, 1.033
respectively (greater than 1). All 3 employee commitment items define these components with
factor loadings greater than 0.5 for each item. The cumulative variance is 62.453% which means
that these factors explain 62.453% of employee commitment variance.
In short, after making exploratory factor analysis, the employee commitment scale includes
10 observed variables, extracted to 3 components.
Component
Initial Eigenvalues
Total
% of Variance
Extraction Sums of Squared Loadings
Cumulative %
Total
% of Variance
Cumulative %
1
3.906
39.061
39.061
3.906
39.061
39.061
2
1.306
13.058
52.119
1.306
13.058
52.119
3
1.033
10.334
62.453
1.033
10.334
62.453
4
.853
8.533
70.986
5
.767
7.668
78.654
6
.583
5.834
84.488
7
.499
4.992
89.480
8
.466
4.657
94.137
9
.302
3.025
97.162
10
.284
2.838
100.000
Table 11: Total Variance Explained
45
Component
1
2
CONTIN36
.851
CONTIN35
.778
CONTIN37
.758
CONTIN34
.616
3
.306
AFFECT32
.836
AFFECT31
.796
AFFECT33
.781
NORMAT38
.522
NORMAT40
.787
NORMAT39
.754
Table 12: Rotated Component Matrix
4.3.3. Rename factors:
After exploratory factor analysis, there are 6 factors remaining in leadership scale. Apart
from factor 2, the others are kept the original name. Factor 2 namely Personal Motivation is a
combination of variables in Individual Consideration (INDIVI13, INDIVI14) and Inspirational
Motivation (INSPIR07, INSPIR08). Name of the other factors are unchanged such as Contingent
Reward (CONTIG17, CONTIG18, CONTIG19), Idealized Influence (IDEALI03, IDEALI04,
IDEALI06), Management by exception (MANAGE25, MANAGE26, MANAGE27), Laissezfaire (LAISSE28, LAISSE29, LAISSE30), Intellectual Stimulation (INTELL10, INTELL11,
INTELL12). Turning to employee commitment components, there are 3 factors left. Factor 1 has
3 observed variables of Continuance Commitment (CONTIN34, CONTIN35, CONTIN36,
CONTIN37), thus research keeps the name Continuance Commitment. Factor 2 comprises of 3
variables in Affective Commitment (AFFECT31, AFFECT32, AFFECT33) and 1 variable in
Normative Commitment (NORMAT38) and researcher keeps the name Affective Commitment
46
for these 4 variables. Therefore, factor 3 only has 2 variables and is named Normative
Commitment (NORMAT39, NORMAT40).
Resulted factors from
Measures
EFA (renamed)
Coding
Independent variables
Contingent Reward
Leaders tell others what to do if they want to be
CONTIG17
rewarded for their work.
Leaders provide recognition/rewards when others
CONTIG18
reach their goals.
Leaders make other pay attention to what they can
CONTIG19
get if they accomplish their work.
Personal Motivation
Leaders give personal attention to others who seem
INDIVI13
rejected.
Idealized Influence
Leaders let others know how I think they are doing.
INDIVI14
Leaders talk optimistically about the future.
INSPIR07
Leaders help others see their purpose of working.
INSPIR08
Leaders respect people as valuable, unique, imperfect
IDEALI03
and developing souls.
Leaders go beyond self-interest for the good of the
IDEALI04
group.
Leaders instill pride in others for being associated
IDEALI06
with them.
Management
by Leaders wait for things to go wrong before taking
exception
MANAGE25
action.
As long as things are working, leaders do not try to
MANAGE26
change anything.
Leaders ask others to do basic things, not encourage
MANAGE27
them to try to learn more from work.
Intellectual Stimulation
Leaders suggest new ways of looking at how to
complete assignments.
47
INTELL10
Leaders seek differing perspectives when solving
INTELL11
problems.
Leaders rethink ideas that they had never questioned
INTELL12
before.
Laissez-faire
Leaders avoid getting involved when important
LAISSE28
issues arise,
Leaders avoid making decisions.
LAISSE29
Leaders delay responding to urgent questions.
LAISSE30
I feel like part of the family at this organization.
AFFECT31
I feel emotionally attached to this organization.
AFFECT32
This department has a great deal of personal meaning
AFFECT33
Dependent variables
Affective Commitment
for me
I would not leave this organization right now because
NORMAT38
my project has just started.
Continuance
Too much of my life would be disrupted if I decided
Commitment
that I wanted to leave this organization now.
I feel that I have very few options to consider leaving
CONTIN34
CONTIN35
this organization.
It would be very costly for me to leave this
CONTIN36
organization right now.
I would not leave this organization right now because
CONTIN37
I am familiar with the process here and afraid of
challenge of new job.
Normative
I would feel guilty if I left my organization now.
NORMAT39
This organization deserves my loyalty.
NORMAT40
Commitment
Table 13: Summary of renaming factors after EFA
48
4.4. Results of Reliability test:
4.4.1. Cronbach’s alpha for leadership variables:
4.4.1.1. Contingent Reward:
Cronbach‟s Alpha of measurement is 0.882 (> 0.6). The Corrected Item Total Correlation
of 3 variables CONTIG17, CONTIG18, CONTIG19 > 0.3 and Cronbach‟s Alpha if item deleted
of CONTIG17, CONTIG18, CONTIG19 < 0.882. Hence, 3 variables are accepted and can use in
the next step.
Scale Mean if Item
Scale Variance if
Corrected Item-
Cronbach's Alpha
Deleted
Item Deleted
Total Correlation
if Item Deleted
CONTIG17
8.00
1.713
.764
.838
CONTIG18
8.04
1.553
.770
.837
CONTIG19
8.01
1.746
.785
.823
Cronbach’s Alpha = .882
Table 14: Reliability coefficient of contingent reward measurement scale
4.4.1.2. Personal Motivation:
Cronbach‟s Alpha of measurement is 0.764 (> 0.6). The Corrected Item Total Correlation
of 4 variables INDIVI13, INDIVI14, INSPIR07, INSPIR08 > 0.3 and Cronbach‟s Alpha if item
deleted of INDIVI13, INDIVI14, INSPIR07, INSPIR08 < 0.764. Hence, 4 variables are accepted
and can use in the next step.
Scale Mean if
Scale Variance if
Corrected Item-
Cronbach's Alpha if
Item Deleted
Item Deleted
Total Correlation
Item Deleted
INDIVI13
10.08
4.400
.539
.722
INDIVI14
9.95
4.170
.559
.712
INSPIR07
9.83
4.296
.563
.709
INSPIR08
9.84
4.337
.596
.692
49
Cronbach’s Alpha = .764
Table 15: Reliability coefficient of personal motivation measurement scale
4.4.1.3. Idealized Influence:
Cronbach‟s Alpha of measurement is 0.742 (> 0.6). The Corrected Item Total Correlation
of 3 variables IDEALI03, IDEALI04, IDEALI06 > 0.3 and Cronbach‟s Alpha if item deleted of
IDEALI03, IDEALI04, IDEALI06 < 0.742. Hence, 3 variables are accepted and can use in the
next step.
Scale Mean if
Scale Variance if
Corrected Item-
Cronbach's Alpha
Item Deleted
Item Deleted
Total Correlation
if Item Deleted
IDEALI03
6.51
1.859
.586
.634
IDEALI04
6.44
2.018
.601
.622
IDEALI06
6.24
1.991
.519
.714
Cronbach’s Alpha = .742
Table 16: Reliability coefficient of idealized influence measurement scale
4.4.1.4. Management by exception:
Cronbach‟s Alpha of measurement is 0.685 (> 0.6). The Corrected Item Total Correlation
of 3 variables MANAGE25, MANAGE26, MANAGE27 > 0.3 and Cronbach‟s Alpha if item
deleted of MANAGE25, MANAGE26, MANAGE27 < 0.685. Hence, 3 variables are accepted
and can use in the next step.
Scale Mean if
Scale Variance if
Corrected Item-
Cronbach's Alpha
Item Deleted
Item Deleted
Total Correlation
if Item Deleted
MANAGE25
5.80
2.802
.523
.559
MANAGE26
5.85
2.560
.563
.502
MANAGE27
5.33
3.400
.419
.685
Cronbach’s Alpha = .685
Table 17: Reliability coefficient of management by exception measurement scale
50
4.4.1.5. Laissez-faire:
Cronbach‟s Alpha of measurement is 0.666 (> 0.6). The Corrected Item Total Correlation
of 3 variables LAISSE28, LAISSE29, LAISSE30 > 0.3 and Cronbach‟s Alpha if item deleted of
LAISSE28, LAISSE29, LAISSE30 < 0.666. Hence, 3 variables are accepted and can use in the
next step.
Scale Mean if
Scale Variance if
Corrected Item-
Cronbach's Alpha
Item Deleted
Item Deleted
Total Correlation
if Item Deleted
LAISSE28
5.13
1.376
.490
.556
LAISSE29
5.09
1.351
.412
.666
LAISSE30
5.32
1.319
.541
.490
Cronbach’s Alpha = .666
Table 18: Reliability coefficient of laissez-faire measurement scale
4.4.1.6. Intellectual Stimulation:
Since Cronbach‟s Alpha of this measurement is 0.514, smaller than 0.6, this factor is
eliminated from the model in order to ensure the reliability of the test.
Scale Mean if
Scale Variance if
Corrected Item-
Cronbach's Alpha
Item Deleted
Item Deleted
Total Correlation
if Item Deleted
INTELL10
7.71
.741
.410
.275
INTELL11
6.92
1.252
.400
.356
INTELL12
7.45
1.215
.234
.558
Cronbach’s Alpha = .514
Table 19: Reliability coefficient of intellectual stimulation measurement scale
51
4.4.2. Cronbach’s alpha for employee commitment variables:
4.4.2.1. Continuance Commitment:
Cronbach‟s Alpha of measurement is 0.800 (> 0.6). The Corrected Item Total Correlation
of 4 variables CONTIN34, CONTIN35, CONTIN36, CONTIN37 > 0.3 and Cronbach‟s Alpha if
item deleted of CONTIN34, CONTIN35, CONTIN36, CONTIN37 < 0.800. Hence, 4 variables
are accepted and can use in the next step.
Scale Mean if Item
Scale Variance if
Corrected Item-
Cronbach's Alpha
Deleted
Item Deleted
Total Correlation
if Item Deleted
CONTIN34
11.25
4.522
.509
.803
CONTIN35
11.05
4.352
.628
.743
CONTIN36
10.79
4.176
.695
.711
CONTIN37
11.13
4.294
.631
.742
Cronbach’s Alpha = .800
Table 20: Reliability coefficient of continuance commitment measurement scale
4.4.2.2. Affective Commitment:
Cronbach‟s Alpha of measurement is 0.774 (> 0.6). The Corrected Item Total Correlation
of 4 variables AFFECT31, AFFECT32, AFFECT33, NORMAT38 > 0.3. Hence, 4 variables are
accepted and can use in the next step.
Scale Mean if Item
Scale Variance if
Corrected Item-
Cronbach's Alpha
Deleted
Item Deleted
Total Correlation
if Item Deleted
AFFECT31
10.21
4.501
.643
.684
AFFECT32
10.29
4.150
.717
.640
AFFECT33
10.30
4.642
.601
.706
NORMAT38
10.50
5.227
.371
.824
Cronbach’s Alpha = .774
52
Table 21: Reliability coefficient of affective commitment measurement scale
4.4.2.3. Normative Commitment:
Since Cronbach‟s Alpha of this measurement is 0.368, smaller than 0.6, this factor is
eliminated from the model in order to ensure the reliability of the test.
Scale Mean if Item
Scale Variance if
Corrected Item-
Cronbach's Alpha
Deleted
Item Deleted
Total Correlation
if Item Deleted
NORMAT39
3.44
.296
.229
.
NORMAT40
3.13
.428
.229
.
Cronbach’s Alpha = .368
Table 22: Reliability coefficient of normative commitment measurement scale
In conclusion, through reliability analysis, two factors – Intellectual Stimulation and
Normative Commitment – are removed from the empirical model of this research. The initial
scale with 29 variables, now, reduces to 24 observed variables (16 variables for leadership scale
and 8 variables for employee commitment scale). There are some possible reasons to explain
why so many variables are eliminated. Firstly, when translating from English into Vietnamese,
the researcher cannot express the exact meaning of the original questionnaire. The second reason
comes from the respondents. The context of this research is different from the initial one,
therefore, respondents have their own standard to evaluate leadership and their commitment to
the organization. Moreover, inconsistency exist among questions in a questionnaire since
respondents did not commit to answer, they just ticked the answer by their feelings.
4.4.3. Restate Research Model:
Based on the result of Cronbach‟s alpha and Exploratory factor analysis, the research
model is adjusted and hypotheses are restated as below:
H1a: Contingent reward is positively related to affective commitment.
H1b: Contingent reward is positively related to continuance commitment.
H2a: Personal motivation is positively related to affective commitment.
53
H2b: Personal motivation is positively related to continuance commitment.
H3a: Idealized influence is positively related to affective commitment.
H3b: Idealized influence is positively related to continuance commitment.
H4a: Management by exception is positively related to affective commitment.
H4b: Management by exception is positively related to continuance commitment.
H5a: Laissez-faire is negatively related to affective commitment.
H5b: Laissez-faire is negatively related to continuance commitment.
Contingent
Reward
H1a
Affective
Commitment
H2a
Personal
Motivation
H3a
H4a
H5a
Idealized
Influence
H2b
H1b
H3b
Management
by exception
H4b
Continuance
Commitment
H5b
Laissez-faire
Figure 5: Restated Research Model
Factors
Measurement
Independent variables
54
Contingent Reward
Leaders tell others what to do if they want to be
rewarded for their work.
Leaders provide recognition/rewards when others
reach their goals.
Leaders make other pay attention to what they can
get if they accomplish their work.
Personal Motivation
Leaders give personal attention to others who seem
rejected.
Leaders let others know how I think they are doing.
Leaders talk optimistically about the future.
Leaders help others see their purpose of working.
Idealized Influence
Leaders respect people as valuable, unique, imperfect
and developing souls.
Leaders go beyond self-interest for the good of the
group.
Leaders instill pride in others for being associated
with them.
Management by exception
Leaders wait for things to go wrong before taking
action.
As long as things are working, leaders do not try to
change anything.
Leaders ask others to do basic things, not encourage
them to try to learn more from work.
Laissez-faire
Leaders avoid getting involved when important
issues arise,
Leaders avoid making decisions.
Leaders delay responding to urgent questions.
Dependent variables
Affective Commitment
I feel like part of the family at this organization.
I feel emotionally attached to this organization.
55
This department has a great deal of personal meaning
for me
I would not leave this organization right now because
my project has just started.
Continuance Commitment
Too much of my life would be disrupted if I decided
that I wanted to leave this organization now.
I feel that I have very few options to consider leaving
this organization.
It would be very costly for me to leave this
organization right now.
I would not leave this organization right now because
I am familiar with the process here and afraid of
challenge of new job.
Table 23: Summary of revised research model
4.5. Regression analysis and Hypothesis testing:
4.5.1. Correlation analysis:
The results of the correlation analysis were presented below. As can be seen from
correlation matrix, the independent variables had correlation with dependent variable. In
examining the correlation between independent variables and Continuance Commitment, the
Pearson correlations of 5 factors were 0.229, 0.319, 0.270, 0.138 and 0.020. It meant that
Contingent Reward, Personal Motivation, Idealized Influence, Management by exception, and
Laissez-faire can be used in model to explain for Continuance Commitment. Similarly,
Contingent Reward, Personal Motivation, Idealized Influence, Management by exception, and
Laissez-faire can be used in model to explain for Continuance Commitment since the Pearson
correlations of these 5 factors were 0.285, 0.534, 0.403, 0.258 and 0.106, respectively.
56
Continuance
Affective
Commitment
Commitment
.229**
.285**
.001
.000
.319**
.534**
.000
.000
.270**
.403**
Sig. (2-tailed)
.000
.000
Pearson Correlation
.138*
.258**
Sig. (2-tailed)
.046
.000
Pearson Correlation
.020
.106
Sig. (2-tailed)
.773
.127
Pearson Correlation
Contingent Reward
Sig. (2-tailed)
Pearson Correlation
Personal Motivation
Sig. (2-tailed)
Pearson Correlation
Idealized Influence
Management by exception
Laissez-faire
*. Correlation is significant at the 0.05 level (2-tailed).
**. Correlation is significant at the 0.01 level (2-tailed).
Pearson
Contingent Reward
Correlation
Contingent
Human
Idealized
Management
Reward
Motivation
Influence
by exception
1
Sig. (2-tailed)
Pearson
Human Motivation
Correlation
Sig. (2-tailed)
Pearson
Idealized Influence
Correlation
Sig. (2-tailed)
Management by
exception
Pearson
Correlation
Sig. (2-tailed)
Pearson
Laissez-faire
Correlation
Sig. (2-tailed)
.049
Laissez-faire
.049
.030
-.021
-.147*
.478
.664
.759
.033
1
.412**
.342**
.151*
.000
.000
.029
1
.352**
.026
.000
.710
1
.117
.478
.030
.412**
.664
.000
-.021
.342**
.352**
.759
.000
.000
-.147*
.151*
.026
.117
.033
.029
.710
.091
57
.091
1
*. Correlation is significant at the 0.05 level (2-tailed).
**. Correlation is significant at the 0.01 level (2-tailed).
Table 24: Pearson's Rotated factor loading
Moreover, since the correlation of independent variables are all small (< 0.8), so the
research model is not in a multi-collinearity situation. Then the researcher can continue test the
regression.
4.5.2. Regression analysis:
According to the results in Coefficients table, 2 factors Management by exception and
Laissez-faire have Sig. greater than 0.05. Thus, these two factors do not reliably explain
Continuance Commitment and are eliminated from the model.
Unstandardized Coefficients
Model
Standardized
Coefficients
t
Sig.
3.218
.002
B
Std. Error
Beta
(Constant)
1.390
.432
Contingent Reward
.229
.069
.214
3.310
.001
Personal Motivation
.241
.073
.239
3.282
.001
Idealized Influence
.168
.074
.164
2.271
.024
Management by exception
.002
.059
.002
.029
.977
Laissez-faire
.014
.082
.011
.169
.866
Table 25: Regression – Coefficients of continuance commitment
Similarly, 2 factors Management by exception and Laissez-faire had Sig. of 0.492 and
0.189 which were greater than 0.05. Hence, these two factors did not reliably explain Affective
Commitment and are eliminated from the model.
Unstandardized Coefficients
Standardized
t
Sig.
-.556
.579
4.906
.000
Coefficients
Model
B
Std. Error
(Constant)
-.210
.378
Contingent Reward
.298
.061
Beta
.270
58
Personal Motivation
.425
.064
.409
6.608
.000
Idealized Influence
.221
.065
.210
3.408
.001
Management by exception
.036
.052
.041
.689
.492
Laissez-faire
.095
.072
.074
1.317
.189
Table 26: Regression – Coefficients of affective commitment
Then, the regression analysis continues to be conducted at the second time with three
factors: Contingent reward, Personal motivation and Idealized influence.
Model
R
R Square
Adjusted R Square
Std. Error of the
Estimate
Affective
Commitment
Continuance
Commitment
.626a
.392
.383
.54335
.412a
.170
.158
.61672
a. Predictors: (Constant), Idealized Influence, Contingent Reward, Personal Motivation
Table 27: Regression analysis at second round
In Table model summary, adjusted R-square value accounts for 0.383 and 0.158. This
value indicates that 38.3% of the variance in Affective Commitment and only 15.8% of the
variance in Continuance Commitment can be explained by three components, namely Contingent
reward, Personal motivation and Idealized influence.
Standardized
Unstandardized Coefficients
B
Std. Error
(Constant)
.091
.320
Contingent Reward
.283
.060
Personal Motivation
.449
Idealized Influence
.228
Collinearity Statistics
Coefficients
Model
t
Sig.
Beta
Tolerance
VIF
.283
.777
.257
4.726
.000
.997
1.003
.062
.432
7.237
.000
.829
1.207
.063
.217
3.643
.000
.830
1.205
a. Dependent Variable: Affective Commitment
Standardized
Unstandardized Coefficients
Coefficients
Model
B
Std. Error
Beta
59
Collinearity Statistics
t
Sig.
Tolerance
VIF
(Constant)
1.431
.364
3.936
.000
Contingent Reward
.227
.068
.212
3.341
.001
.997
1.003
Personal Motivation
.244
.070
.241
3.459
.001
.829
1.207
Idealized Influence
.168
.071
.164
2.360
.019
.830
1.205
a. Dependent Variable: Continuance Commitment
Table 28: Regression – coefficient of dependent variables
The results of regression indicate that with Sig. < 0.05, three independent variables
(Contingent reward, Personal motivation and Idealized influence) have effect on both Affective
and Continuance Commitment. Variance inflation factor (VIF) values of these three components
are very small (less than 2). Thus the research model is not in a multi-collinearity situation.
4.5.3. Hypothesis testing:
Hypothesis 1a: Contingent reward is positively related to affective commitment.
It is clear that there is a weak, but significant, positive relationship between contingent reward
and affective commitment (r = 0.285 which is below 0.5 & p-value = 0.000 < 0.05). The
researcher accepts hypothesis 1a and concludes that there is sufficient evidence that there is a
positive relationship between contingent reward and affective commitment.
Hypothesis 1b: Contingent reward is positively related to continuance commitment.
It is clear that there is a weak, but significant, positive relationship between contingent reward
and continuance commitment (r = 0.229 which is below 0.5 & p-value = 0.001 < 0.05). The
researcher accepts hypothesis 1b and concludes that there is sufficient evidence that there is a
positive relationship between contingent reward and continuance commitment.
Hypothesis 2a: Personal motivation is positively related to affective commitment.
It is clear that there is a weak, but significant, positive relationship between personal motivation
and affective commitment (r = 0.534 which is below 0.5 & p-value = 0.000 < 0.05). The
researcher accepts hypothesis 2a and concludes that there is sufficient evidence that there is a
positive relationship between personal motivation and affective commitment.
Hypothesis 2b: Personal motivation is positively related to continuance commitment.
60
It is clear that there is a weak, but significant, positive relationship between personal motivation
and continuance commitment (r = 0.319 which is below 0.5 & p-value = 0.001 < 0.05). The
researcher accepts hypothesis 2b and concludes that there is sufficient evidence that there is a
positive relationship between personal motivation and continuance commitment.
Hypothesis 3a: Idealized influence is positively related to affective commitment.
It is clear that there is a weak, but significant, positive relationship between idealized influence
and affective commitment (r = 0.403 which is below 0.5 & p-value = 0.000 < 0.05). The
researcher accepts hypothesis 3a and concludes that there is sufficient evidence that there is a
positive relationship between idealized influence and affective commitment.
Hypothesis 3b: Idealized influence is positively related to continuance commitment.
It is clear that there is a weak, but significant, positive relationship between idealized influence
and continuance commitment (r = 0.270 which is below 0.5 & p-value = 0.019 < 0.05). The
researcher accepts hypothesis 3b and concludes that there is sufficient evidence that there is a
positive relationship between idealized influence and continuance commitment.
Hypothesis 4a: Management by exception is positively related to affective commitment.
Since p-value = 0.492 > 0.05, the researcher rejects hypothesis 4a and concludes that there is
sufficient evidence that there is no positive relationship between management by exception and
affective commitment.
Hypothesis 4b: Management by exception is positively related to continuance commitment.
Since p-value = 0.977 > 0.05, the researcher rejects hypothesis 4b and concludes that there is
sufficient evidence that there is no positive relationship between management by exception and
continuance commitment.
Hypothesis 5a: Laissez-faire is positively related to affective commitment.
61
Since p-value = 0.189 > 0.05, the researcher rejects hypothesis 5a and concludes that there is
sufficient evidence that there is no positive relationship between laissez-faire and affective
commitment.
Hypothesis 5b: Laissez-faire is positively related to continuance commitment.
Since p-value = 0.866 > 0.05, the researcher rejects hypothesis 5b and concludes that there is
sufficient evidence that there is no positive relationship between laissez-faire and continuance
commitment.
No
1a
1b
2a
2b
3a
3b
4a
4b
5a
5b
Hypothesis
Contingent reward is positively related to
affective commitment
Contingent reward is positively related to
continuance commitment
Personal motivation is positively related
to affective commitment
Personal motivation is positively related
to continuance commitment
Idealized influence is positively related
to affective commitment
Idealized influence is positively related
to continuance commitment
Management by exception is positively
related to affective commitment
Management by exception is positively
related to continuance commitment
Laissez-faire is positively related to
affective commitment
r
Β
p-value
(sig.)
Result
0.285
0.270
0.000
Accept
0.229
0.214
0.001
Accept
0.534
0.409
0.000
Accept
0.319
0.239
0.001
Accept
0.403
0.210
0.000
Accept
0.270
0.164
0.019
Accept
0.258
0.041
0.492
Reject
0.138
0.002
0.977
Reject
0.106
0.074
0.189
Reject
0.866
Reject
Laissez-faire is positively related to
0.020
0.011
continuance commitment
Table 29: Summary result of hypotheses test
62
Based on the above result table, the research model was restated as below:
Contingent
Reward
Affective
Commitment
Personal
Motivation
Continuance
Commitment
Idealized
Influence
Figure 6: Resulted model
4.6. Differences among groups of followers:
4.6.1. T-test:
Independent samples T-test is used to compare the means of two genders, male and female.
Gender
Continuance
Commitment
Affective
Commitment
N
Mean
Std.
Deviation
MALE
116
3.6810
.70139
FEMALE
94
3.6888
.63784
MALE
116
3.4547
.67615
FEMALE
94
3.4255
.71357
Table 30: Group statistic on Gender
Std. Error
Mean
.06512
.06579
.06278
.07360
According to Table , the mean scores for male are marginally higher than those of the
female in Affective Commitment and lower in Continuance Commitment. The values of standard
deviation show that there is not much difference in variability of the scores of the two samples.
Regarding the standard error mean, the table shows that the standard error mean is almost equal
for both the male and female responses.
63
Levene's Test for
t-test for Equality of Means
Equality of Variances
F
Sig.
t
df
Sig. (2-
Mean
Std. Error
95% Confidence
tailed)
Difference
Difference
Interval of the
Difference
Lower
Upper
Equal
variances
Continuance
assumed
Commitment
Equal
1.969
.162
variances
-.083
208
.934
-.00780
.09350
-.19212
.17653
-.084
205.210
.933
-.00780
.09257
-.19030
.17471
.304
208
.762
.02921
.09619
-.16042
.21884
.302
194.357
.763
.02921
.09674
-.16158
.22000
not assumed
Equal
variances
Affective
Commitment
.087
.769
assumed
Equal
variances
not assumed
Table 31: Result of independent sample test
As can be seen from Table, there is possibility of equality of variances because sig. in
Levene‟s Test of both continuance and affective commitment were greater than 0.05. So the
researcher can conclude that there is no significant difference between male and female in both
two commitments to the organization as the p-values of these two components are above the
significance level of 0.05.
4.6.2. One-way ANOVA:
A One-Way Analysis of Variance is a way to test the equality of three or more means at
one time by using variances. In this research, one-way ANOVA test is used to find the
differences between Age, Experience, Education, Position variable and Continuance/Affective
Commitment variables.
Levene Statistic
Continuance Commitment
Affective Commitment
Age
.770
.544
Experience
.710
.719
Education
.096
2.375
64
Position
2.367
.089
Table 32: Test of Homogeneity of Variances
According to Table, there is possibility of equality of variances because sig. in Levene‟s
Test of both continuance and affective commitment were greater than 0.05.
Sig.
Age
Experience
Education
Position
Continuance
Commitment
.104
.008
.353
.000
Affective
Commitment
.490
.138
.252
.000
Table 33: Result of ANOVA test
Based on above table, the researcher can conclude that differences exist between the
responses of position and two factors of commitment (p-value < 0.05). Turning to experience,
although differences exist between the responses of experience and continuance commitment,
there is no there is no significant difference between the responses of experience and affective
commitment. With other demographic data, as the p-values of all dimensions are above the
significance level of 0.05, the researcher can jump to the conclusion that there is no significant
difference between the responses of both two commitments and age and education.
65
Chapter 5: RESEARCH DISCUSSION AND IMPLICATIONS
5.1. Effect of personal motivation on continuance and affective commitment:
As can be seen from the results in section 4, personal motivation which comprises of
individual consideration and inspirational motivation has relatively strong but significant,
positive correlation with affective commitment (0.534) and a strong but significant, positive
relationship with continuance commitment (0.319) whereas no relationship with normative
commitment. It can be said that personal motivation is a key factor which seriously affected
continuance and affective commitment.
This result is also supported by a research done by Lo M.C., Ramayah T., Min H.W. and
Songan P. (2010) who found a positive direct relationship between inspirational motivation, and
affective and normative commitment. They also found that two dimensions of transformational
leadership, namely intellectual stimulation and individualized consideration, were found to have
positive relationship with continuance commitment. As stated by Meyer and Allen (1997),
employees who stay with an organization because they feel obligated or having no choice do not
exhibit the same eagerness and involvement as employees who stay with an organization.
In the present study, FDC leaders are so good on talking optimistic things about the future
and providing an exciting image of organizational change, however, since there is so much work
to do, they do not have much time for caring about developing subordinates‟ strengths and
listening to attentively to others. Paying attention to the differences among followers and
discovering what motivates each individual might the level of organizational commitment of the
employees. These allow leaders to become familiar with followers, enhance communication and
improve information exchange. If leaders advise staff on their careers, show staff the best way to
perform, carefully observe and record followers‟ progress and encourage staff to attend technical
courses, the proportion of employees remaining in the organization will increase. In this case,
employees will have strong desire to stay with the company because they feel at ease when
working and particularly they have a feeling of being appreciated.
66
5.2. Effect of idealized influence on continuance and affective commitment:
Similarly, idealized influence also has relatively weak, but significant positive correlation
with affective commitment (0.403) and very weak, but significant, positive relationship with
continuance commitment (0.270) while there is no relationship between idealized influence and
normative commitment. Idealized influence is considered to be an important factor which has an
impact on developing employees‟ continuance and affective commitment.
Chiun et al. (2009) states that three components of transformational leadership i.e. idealize
influence, inspirational motivation and intellectual stimulation have positive direct relationship
with affective commitment. Sudha & Venkat (2009) also support this idea by showing in their
study that affective and normative commitment of the employee are enhanced by idealized
influence attributed, idealized influence behavior, inspirational motivation, intellectual
stimulation, and individualized consideration. Thus, an employee's emotional attachment to the
organization can be enhanced by having a manager with idealized influence qualities, thereby
making the employee feel positively obliged to stay with the organization.
Leaders who apply idealized influence on their followers gain the trust and confidence of
the followers. The followers admire the leader as a role model and respect the decisions made by
him or her. In reality, although leaders have a clear sense of mission, purpose and values and
they are willing to make personal sacrifices to achieve a goal for their group or organization, it
seems that they are not good at respecting people as valuable, unique, imperfect and developing
souls. Employees feel that they work like a machine, they cannot express their ideas or their
ideas are not appreciated.
As for the lack of statistically significant correlations between the personal
motivation/idealized influence and normative commitment, my findings suggest that these two
leadership style may not be related to how employees feel about their obligation to stay with
organization. The finding that personal motivation and idealized influence has no relationship
with normative commitment is also appropriate since employees who stay with an organization
because they feel obligated to do may not exhibit the same enthusiasm and involvement as
employees who stay with an organization because they want to stay and need to stay.
67
5.3. Effect of contingent reward on continuance and affective commitment:
According to the analysis results, there is a strong and but significant, positive relationship
between contingent reward and both affective (0.285) and continuance commitment (0.229). On
the other hand, there is no relationship between contingent reward and normative commitment.
Contingent reward had a positive relationship with continuance commitment and indicated a
lesser variance than personal motivation or idealized influence. This means that leadership
behaviours, which involve providing followers with material and psychological rewards on
contingent on the fulfillment of contractual obligations, explain only a little of the variation in
how employees feel about needing to stay with the organisation. Like personal motivation,
contingent reward is also a key factor which needs to be paid attention to when considering
continuance and affective commitment.
The finding also supports the studies of Lo et al. (2010) those indicated that transactional
leadership has positive relationship with employees‟ organizational commitment. The positive
correlation between contingent reward and affective commitment and continuance commitment
suggests that leadership behaviors involving exchange of rewards for meeting agreed-on
objectives, promising for higher incentives and praising related to how employees feel about
want to stay and need to stay with the organization (Bass & Avolio, 1993). This relationship also
indicates that the leaders‟ and followers‟ associations affects employees‟ moral identification
with an organization and relates to their feelings of responsibility (Allen & Meyer, 1990). On the
other hand, the absence of relationship for contingent reward with normative commitment
suggests that leadership behaviors involving rewards may not be related to how employees feel
about ought to stay with the organization. These natures are more related with negative
performance (Allen & Meyer, 1990; Bass & Avolio, 1993).
Actually, one third of FDC‟s profit comes from projects. When successfully finishing,
employees who are in charge will be encouraged by a deserved bonus. And this depends on the
contribution to the projects, people who work more get more, who work less get less or be
punished. High incentive is one of the best motive power which makes staff have a strong and
long-term attachment to the organization. The more experience and the longer employees stay
with the company, the higher incentive they get for the project. However, many people still left
in the past 4 years. There are two main reasons for their quitting. The first reason is unequal
68
paying among staff. Two people with the same background, the same task but may get different
salary. Secondly, finished projects generate high profit and high incentives but only for
experienced employees. A new employee have to spend at least 6 months to get used to the price,
the content, the relationship and other things related to projects and at least one year to be
responsible for a project independently. Many new people feel exhausted and frustrated and
choose leaving as the best solution.
The overall statistical findings show a clear picture of the relationship and impact of
leadership styles on organization commitment. Overall results show that personal motivation and
idealized influence is playing strong role in contribution of the transformational leadership
towards the affective and continuance commitment. So is contingent reward of transactional
leadership. However, there is no correlation between these factors with normative commitment.
In conclusion, the transformational and transactional leadership styles (personal motivation,
idealized influence and contingent reward) have positive impact and contribution in the
organizational commitment.
69
Chapter 6: RESEARCH CONCLUSION AND RECOMMENDATION
6.1. Research Conclusion:
The main objective of the study was to investigate the relationship between various
leadership styles and various employee commitment styles in FPT Distribution Company. This
study found that personal motivation and idealized influence of transformational leadership
behaviours were positively related with affective and continuance commitment, although not
very strongly. This means that leadership behaviours which involve engendering trust, inspiring
a shared vision, generating enthusiasm, encouraging creativity, providing coaching and
recognizing accomplishments, do explain some of the variation in how employees feel about
wanting to, or needing to, stay with the organisation. The more they display these behaviours, the
more employees may want to or need to stay.
Overall findings from this study suggest that personal motivation and contingent reward
are key factor while idealized influence behaviours do play important roles in determining levels
of affective commitment and continuance commitment.
6.2. Recommendation:
Empirical evidence seems to support the hypothesis that leadership style can affect the
development of organisational commitment. Managers in FDC might be able to increase
employees‟ levels of organizational commitment by improving leadership styles particularly in
personal motivation, idealized influence and contingent reward. This is critical to the
organization as commitment results in better performance and more meaningful contributions.
6.2.1. Personal motivation:
In order to develop employee commitment in FDC, leaders can play a role in building
commitment by assuring that the organisation makes effort to address both the work content and
the work context by engaging in management practices to minimize employee alienation. They
should demonstrate their commitment to the employees by sharing information, provide for the
development and growth of employees within the organization. In this era of empowered
70
employees and teams, leaders still need to communicate to their subordinates the sense that the
organization respects them and values the contributions that they make. With new process or
new project which is usually occur in FDC, leaders should hold a short term training course.
Besides coaching staff things related to new project, leaders could care more about subordinates‟
lives and stuff after class. It is the best way to make them feel appreciated. Although a question
or interest from leaders cannot help them solve their out of work problems, they will have more
power to concentrate on project and try their best to finish work on time and successfully.
Additionally, after each quarter, leaders should have a personal meeting with employees in
department they are responsible for. In this meeting, by reviewing what each staff achieved as
well as failed during last quarter, both leaders and subordinates can analyse reasons and set up
new target for next three months. Surely, the content of meeting is secret and unrevealed. This is
a good opportunity for leaders to ask about the problems staff had to overcome or any comments
about colleagues and work, and from this, leaders can adjust the work or relieve subordinates to
the most beneficial way for both. It is also the best chance for employees to express and show
their real feelings.
In addition, any organisation that requires their employees to develop organisational
commitment should provide comprehensive training that will encourage leadership to exhibit
leadership behaviours such as building trust, inspiring a shared vision, encouraging creativity,
emphasising development, and recognising accomplishments.
6.2.2. Idealized influence:
Leaders with idealized influence may create a friendly and open relationship environment
among staff. The trust and respect for the leaders who have idealized influence makes it easier
for followers to take risks with suggestions and to be more open and forthcoming.
Since idealized influence is marked by making others feel good, making others proud, and
earning faith from the subordinate, the leader must do this through interaction that will involve
some form of communication, either verbal or nonverbal. Leaders should make sure to avoid
criticism that would violate commonality. They are also recommended using humor and phrases
that the protégé can relate to in order to save face. Instead of emphasizing a mistake, leaders
could use a softer way to point out mistake and criticize others.
71
In addition, leaders can point out problems to subordinates without necessarily violating
their autonomy. Rather than acting mad and frustrated if a report is late, leaders can emphasize
how the report affects promotion of subordinates and how important it is when leaders evaluate
employees monthly. The strategy allows assertion of the importance of submitting reports on
time, but does not emphasize the mistake to the point of isolating the constituent. If someone
violates a policy, rather than pursuing the perpetrator like a criminal, the TL strategy might be to
provide the policies, emphasize why the policies were established, and describe the big picture
impact of violating the policies. The approach provides an avenue for maintaining commonality
and avoiding rifts. The strategy also seems to build respect. The leader is not avoiding
punishment, but using the event as an opportunity to train, teach, and improve the performance
of the individual.
6.2.3. Contingent reward:
In order to reduce level of leaving employees because of wages and incentives, leaders in
FDC are trying to apply the policy of paying 17 months of salary instead of 13 months like other
companies. After every quarter, Managers of each Department will review what each staff
achieved during that period. They also get feedback from another department who has to work
directly with their staff. Then, they will give scores for each staff based on what they have
collected. And the score one person gets equals to the percentage of that person‟s salary. For
instance, if one person get 100/100 scores and his monthly payment is 10 million VND, they will
get 10 million VND bonuses for that quarter. Moreover, if one person works for company for
more than one year, at the end of the year, that person will get 15% of reward under the name of
“support from inflation”. Addition to these bonuses, FDC also share more profit for people if its
business goes well in the year. Besides, after 6 months, every employees should have the benefit
of being reviewed their salary by evaluating their contribution during 6 months.
6.3. Limitation and suggestion:
Like other researches, my finding has several limitations which should be considered
during study procedure. First limitation is that the questionnaire developed by Bass and Avolio
does not clearly mention the incentives based comparison. Some other factors such as work
72
environment, competition, population and demographics also affect the employees‟ commitment
which is not covered by this questionnaire. Secondly, it is recommended that other studies split
FDC staff into supervisors and subordinates groups. Thereafter, future researches can compare
the supervisors‟ self-rating with their subordinates‟ perception of leadership style. Another
limitation of the study is that income was not collected as a respondent‟s information. This is
also a factor which seriously affects organizational commitment. Last but not least, this research
is only conducted in Ho Chi Minh City while FDC has subsidiaries in four countries: Ha Noi, Ho
Chi Minh, Da Nang and Can Tho.
The weakness of present survey provides suggestion for future research. Possible future
direction can use a more differentiated measure for leadership styles. Future studies should
attempt to cover all four regions in FDC and then, make a general conclusion of what factors
exactly affect employee commitment and give the best solutions from these reasons.
73
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APPENDIX
Appendix 1: Structured interview
Dear participants,
It is a great pleasure having a chance to discuss with you about your feeling of leadership
attributes as well as the effect of these leadership styles to employee commitment. Please give
your valuable opinion to complete this interview. Any comment is a great contribution to the
success of this research.
Please take a look at the questionnaire:
A- When thinking of my leaders, I feel that:
1
Leaders talk about their most important values and beliefs
2
Leaders emphasize the importance of having a collective sense of mission
3
Leaders respect people as valuable, unique, imperfect and developing souls
4
Leaders go beyond self-interest for the good of the group
5
Leaders make subordinates feel good to be around employers
6
Leaders instill pride in others for being associated with them
7
Leaders talk optimistically about the future
8
Leaders help others see their purpose of working
9
Leaders express with a few simple words what others could and should do
10
Leaders provide attractive images about what others can do
11
Leaders suggest new ways of looking at how to complete assignments
12
Leaders seek differing perspectives when solving problems
13
Leaders rethink ideas that they had never questioned before
14
Leaders give personal attention to others who seem rejected.
15
Leaders let others know how I think they are doing
16
Leaders help others to develop my strengths
17
Leaders treat others as an individual rather than just as a member of a group
18
Leaders tell others what to do if they want to be rewarded for their work
82
19
Leaders provide recognition/rewards when others reach their goals
20
Leaders make other pay attention to what they can get if they accomplish their work
21
Leaders focus attention on irregularities, mistakes, exceptions, and deviations from
standards.
22
Leaders direct subordinates‟ attention toward failures to meet standards
23
Leaders tell others the standards they have to know to carry out their work
24
Leaders fail to interfere until problems become serious
25
Leaders wait for things to go wrong before taking action
26
As long as things are working, leaders do not try to change anything.
27
28
Leaders ask others to do basic things, not encourage them to try to learn more from
work
Leaders avoid getting involved when important issues arise
29
Leaders avoid making decisions
30
Leaders delay responding to urgent questions
B- When evaluating of my company and my work, I suppose that:
1
I feel like part of the family at this organization
2
I feel emotionally attached to this organization
3
This department has a great deal of personal meaning for me
4
Too much of my life would be disrupted if I decided that I wanted to leave this
organization now.
5
I feel that I have very few options to consider leaving this organization
6
It would be very costly for me to leave this organization right now.
7
I would feel guilty if I left my organization now
8
This organization deserves my loyalty
Please answer the following questions:
1. Do you understand the questions?
2. Are there any identical questions? Which ones?
3. Do you want to add more factors to leadership style and employee commitment which are
related to FDC‟s reality? What are they?
83
Appendix 2: Survey Questionnaire:
Dear participants,
For my master thesis, I am conducting a study to determine the relationship between Full-range
leadership style and employee commitment. I would greatly appreciate if you would spend the
approximately 5-6 minutes of your time to respond to this multiple choice questionnaire.
Forty descriptive statements are listed as below. Please read and rate each question on the scale
of 1-5 in the respective columns.
Thank you in advance for your assistance with this research project.
Score level
2 3 4 5
When thinking of my leaders, I feel that:
1
Leaders talk about their most important values and beliefs.
2
Leaders emphasize the importance of having a collective sense of
mission.
3
Leaders respect people as valuable, unique, imperfect and
developing souls.
4
Leaders go beyond self-interest for the good of the group.
5
Leaders make subordinates feel good to be around employers.
6
Leaders instill pride in others for being associated with them.
7
Leaders talk optimistically about the future.
8
Leaders help others see their purpose of working.
9
Leaders provide attractive images and express with a few simple
words what others could and should do.
10
Leaders suggest new ways of looking at how to complete
assignments.
11
Leaders seek differing perspectives when solving problems.
12
Leaders rethink ideas that they had never questioned before.
13
Leaders give personal attention to others who seem rejected.
14
Leaders let others know how I think they are doing
15
Leaders help others to develop my strengths.
84
Disagree
Strongly disagree
Please rate each statement on the scale of 1-5 by ticking () one answer to
each question in the respective columns.
Strongly agree
1
Agree
Questions
Neither agree nor disagree
No
16
Leaders treat others as an individual rather than just as a member of
a group.
17
Leaders tell others what to do if they want to be rewarded for their
work.
18
Leaders provide recognition/rewards when others reach their goals.
19
Leaders make other pay attention to what they can get if they
accomplish their work.
20
Leaders focus attention on irregularities, mistakes, exceptions, and
deviations from standards.
21
Leaders keep track of all results and mistakes through KPI (Key
Performance Index).
22
Leaders direct subordinates‟ attention toward failures to meet
standards.
23
Leaders tell others the standards they have to know to carry out their
work.
24
Leaders fail to interfere until problems become serious.
25
Leaders wait for things to go wrong before taking action.
26
As long as things are working, leaders do not try to change
anything.
27
Leaders ask others to do basic things, not encourage them to try to
learn more from work.
28
Leaders avoid getting involved when important issues arise,
29
Leaders avoid making decisions.
30
Leaders delay responding to urgent questions.
When evaluating of my company and my work, I suppose that:
31
I feel like part of the family at this organization.
32
I feel emotionally attached to this organization.
33
This department has a great deal of personal meaning for me
34
Too much of my life would be disrupted if I decided that I wanted
to leave this organization now.
35
I feel that I have very few options to consider leaving this
organization.
36
It would be very costly for me to leave this organization right now.
37
I would not leave this organization right now because I am familiar
with the process here and afraid of challenge of new job.
38
I would not leave this organization right now because my project
has just started.
39
I would feel guilty if I left my organization now.
40
This organization deserves my loyalty.
Please tell us about yourself and your work by answering the following questions:
1. Your age:
Under 25
25 - 30 years old
85
Over 30
2. Your gender:
Nam
Female
3. How long have you been working in FDC?
1-2 years
2-5 years
More than 5 years
4. What is your highest degree of education?
Bachelor
Master
Others: ……….
Managers
Directors
5. Your current position:
Staff
---Thank you for taking time and effort to fill out this survey---
86
Appendix 3: Survey questionnaire (Vietnamese version)
I.
II.
THÔNG TIN CÁ NHÂN:
1. Độ tuổi của Anh/Chị:
Dưới 25 tuổi
25 tuổi -30 tuổi
2. Giới tính của Anh/Chị:
Nam
Nữ
3. Thời gian Anh/Chị làm việc cho công ty:
Dưới 1-2 năm
Dưới 3-5 năm
4. Trình độ học vấn của Anh/Chị:
Đại học
Thạc sĩ
5. Vị trí công việc hiện tại của Anh/Chị:
Nhân viên
Trưởng/Phó phòng
Trên 30 tuổi
>5 năm
Khác: ……….
Phó Giám đốc/Giám Đốc
NỘI DUNG CÂU HỎI ĐỐI VỚI NHÂN VIÊN:
Cho biết mức độ đồng ý của Anh/Chị đối với các phát biểu sau bằng cách đánh dấu vào ô tương
ứng với mức độ mà Anh/Chị chọn: Hoàn toàn không đồng ý, Không đồng ý, Không có ý kiến,
Đồng ý, Hoàn toàn đồng ý.
Khi nghĩ về lãnh đạo trực tiếp của mình, tôi cảm thấy:…
1
Lãnh đạo thường nói với tôi về những giá trị hoặc niềm tin quan
trọng nhất đối với họ.
2
Lãnh đạo nhấn mạnh tầm quan trọng của việc có ý thức trách
nhiệm.
3
Lãnh đạo tôn trọng sự khác biệt của các cá nhân.
4
Lãnh đạo hi sinh lợi ích của cá nhân vì lợi ích của tập thể.
5
Lãnh đạo làm cho tôi cảm thấy thoải mái khi làm việc cùng.
6
Lãnh đạo truyền niềm tự hào vào tôi khi làm việc với họ.
7
Lãnh đạo thường nói một cách lạc quan về tương lai của tổ chức.
8
Lãnh đạo giúp tôi hiểu được ý nghĩa công việc của tôi.
87
Hoàn toàn đồng ý
Đồng ý
Không có ý kiến
Xin cho biết mức độ đồng ý của Anh/Chị đối với các phát biểu sau bằng
cách đánh dấu () vào ô tương ứng mà Anh/Chị chọn:
Không đồng ý
Mức độ đồng ý
với câu hỏi
1 2 3 4 5
Câu hỏi
Hoàn toàn không đồng ý
TT
Lãnh đạo truyền đạt và giúp tôi hình dung một cách đơn giản những
gì tôi có thể làm hoặc nên làm.
10
Lãnh đạo giúp tôi nhìn nhận vấn đề cũ theo những cách mới.
11
Lãnh đạo giúp tôi nhìn nhận vấn đề từ nhiều khía cạnh khác nhau.
12
Lãnh đạo giúp tôi suy nghĩ về những điều mà trước đây tôi chưa
từng thắc mắc.
13
Lãnh đạo quan tâm riêng tới những nhân viên có vẻ như bị cô lập
khỏi nhóm/phòng ban của mình.
14
Lãnh đạo quan tâm đến mối quan hệ giữa tôi với các đồng
nghiệp/phòng ban khác.
15
Lãnh đạo giúp tôi phát huy những ưu điểm của mình.
16
Lãnh đạo quan tâm đến từng cá nhân chứ không đánh đồng cho mọi
thành viên trong nhóm/phòng/ban.
17
Lãnh đạo nói với tôi những việc phải làm nếu tôi muốn được
thưởng khi hoàn thành công việc.
18
Lãnh đạo tưởng thưởng khi tôi hoàn thành công việc.
19
Lãnh đạo khiến tôi chú ý tới những gì tôi sẽ nhận được khi hoàn
thành công việc được giao.
20
Lãnh đạo tập trung chú ý giải quyết những sai phạm, sự lệch hướng
so với tiêu chuẩn đặt ra.
21
Lãnh đạo theo dõi/đánh giá những sai phạm và kết quả của tôi thông
qua KPI (Key Performance Index).
22
Lãnh đạo chỉ cho tôi những lỗi sai sót để tôi làm tốt hơn.
23
Lãnh đạo nói với tôi những tiêu chuẩn cần đạt được khi thực hiện
công việc của mình.
24
Lãnh đạo chỉ hành động khi mọi việc xảy ra sai sót.
25
Lãnh đạo không can thiệp cho đến khi công việc có vấn đề/trở nên
trầm trọng.
26
Khi mọi việc đang diễn ra bình thường, lãnh đạo không muốn thay
đổi bất cứ thứ gì.
27
Lãnh đạo muốn tôi chỉ làm những việc cần làm và không khuyến
khích tôi tìm tòi, sáng tạo trong công việc.
28
Lãnh đạo hay né tránh tham gia vào những vấn đề khó khăn,
29
Lãnh đạo tránh đưa ra các quyết định.
30
Lãnh đạo thường trì hoãn việc trả lời các câu hỏi quan trọng.
Khi đánh giá về công ty và công việc của mình, tôi cho rằng:…
31
Tôi có cảm giác công ty là một gia đình và tôi là một thành viên của
gia đình đó.
32
Tôi cảm thấy có tình cảm gắn bó với tổ chức này.
33
Bộ phận tôi đang làm có một ý nghĩa quan trọng với tôi.
34
Cuộc sống của tôi sẽ bị phá vỡ/xáo trộn nếu tôi quyết định rời công
ty lúc này.
35
Tôi cảm thấy có ít sự lựa chọn khi cân nhắc về việc rời công ty.
36
Sẽ rất tốn kém khi tôi rời công ty lúc này.
37
Tôi sẽ không rời công ty ngay bây giờ bởi vì tôi đã quen với quy
9
88
38
39
40
trình của công ty và tôi ngại sự thay đổi (học hỏi lại quy trình mới
từ đầu).
Tôi sẽ không chuyển việc bởi vì dự án của tôi chỉ mới vừa bắt đầu.
Tôi cảm thấy có lỗi nếu tôi đổi qua việc mới.
Công ty này xứng đáng với lòng trung thành của tôi.
-----------o0o----------
89
Appendix 4: Descriptive Statistics
N
Minimum
Maximum
Mean
Std. Deviation
IDEALI01
210
2
5
3.29
.702
IDEALI02
210
2
5
3.50
.658
IDEALI03
210
1
5
3.09
.837
IDEALI04
210
1
5
3.15
.761
IDEALI05
210
1
5
3.17
.873
IDEALI06
210
2
5
3.36
.831
INSPIR07
210
1
5
3.40
.871
INSPIR08
210
2
5
3.40
.831
INSPIR09
210
2
5
3.58
.702
INTELL10
210
2
5
3.33
.796
INTELL11
210
3
5
4.12
.493
INTELL12
210
2
5
3.59
.629
INDIVI13
210
1
5
3.15
.862
INDIVI14
210
1
5
3.28
.914
INDIVI15
210
1
5
2.76
.965
INDIVI16
210
1
5
2.95
1.003
CONTIG17
210
2
5
4.03
.684
CONTIG18
210
2
5
3.99
.748
CONTIG19
210
2
5
4.01
.660
MANAGE20
210
1
5
3.15
.848
MANAGE21
210
2
5
3.42
.709
MANAGE22
210
1
5
3.06
.777
MANAGE23
210
1
5
2.81
.968
MANAGE24
210
1
5
2.83
.943
MANAGE25
210
1
5
2.69
1.033
MANAGE26
210
1
5
2.64
1.081
MANAGE27
210
1
5
3.16
.922
LAISSE28
210
1
5
2.64
.672
LAISSE29
210
1
5
2.68
.737
LAISSE30
210
1
5
2.45
.670
AFFECT31
210
1
5
3.56
.874
AFFECT32
210
1
5
3.48
.913
AFFECT33
210
1
5
3.47
.870
CONTIN34
210
1
5
3.49
.887
CONTIN35
210
1
5
3.69
.833
CONTIN36
210
1
5
3.95
.831
90
CONTIN37
210
1
5
3.61
.847
NORMAT38
210
1
5
3.27
.926
NORMAT39
210
2
4
3.13
.654
NORMAT40
210
2
5
3.44
.544
Valid N (listwise)
210
91
Appendix 5: Result of exploratory factor analysis
1. Result of EFA after first round:
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy.
.781
Approx. Chi-Square
Bartlett's Test of Sphericity
2072.481
df
435
Sig.
.000
Communalities
Initial
Extraction
IDEALI01
1.000
.654
IDEALI02
1.000
.569
IDEALI03
1.000
.596
IDEALI04
1.000
.592
IDEALI05
1.000
.623
IDEALI06
1.000
.637
INSPIR07
1.000
.605
INSPIR08
1.000
.630
INSPIR09
1.000
.494
INTELL10
1.000
.659
INTELL11
1.000
.586
INTELL12
1.000
.502
INDIVI13
1.000
.604
INDIVI14
1.000
.611
INDIVI15
1.000
.684
INDIVI16
1.000
.621
CONTIG17
1.000
.788
CONTIG18
1.000
.819
CONTIG19
1.000
.803
MANAGE20
1.000
.695
MANAGE21
1.000
.469
MANAGE22
1.000
.638
MANAGE23
1.000
.735
MANAGE24
1.000
.494
MANAGE25
1.000
.648
MANAGE26
1.000
.713
MANAGE27
1.000
.572
92
LAISSE28
1.000
.634
LAISSE29
1.000
.630
LAISSE30
1.000
.716
Extraction Method: Principal Component Analysis.
Total Variance Explained
Componen
t
Initial Eigenvalues
Total
% of Variance
Extraction Sums of Squared Loadings
Cumulative %
Total
% of Variance
Rotation Sums of Squared Loadings
Cumulative %
Total
% of Variance
Cumulative %
1
6.082
20.274
20.274
6.082
20.274
20.274
3.051
10.168
10.168
2
2.866
9.554
29.828
2.866
9.554
29.828
2.988
9.959
20.127
3
1.960
6.533
36.361
1.960
6.533
36.361
2.639
8.797
28.924
4
1.805
6.016
42.377
1.805
6.016
42.377
2.147
7.158
36.082
5
1.574
5.246
47.623
1.574
5.246
47.623
1.989
6.629
42.711
6
1.442
4.805
52.428
1.442
4.805
52.428
1.831
6.103
48.814
7
1.189
3.962
56.391
1.189
3.962
56.391
1.659
5.529
54.342
8
1.086
3.621
60.012
1.086
3.621
60.012
1.536
5.119
59.462
9
1.016
3.386
63.398
1.016
3.386
63.398
1.181
3.936
63.398
10
.954
3.180
66.577
11
.880
2.934
69.511
12
.871
2.904
72.416
13
.800
2.668
75.084
14
.738
2.460
77.543
15
.672
2.240
79.783
16
.638
2.128
81.911
17
.621
2.070
83.981
18
.551
1.837
85.818
19
.507
1.689
87.507
20
.481
1.602
89.110
21
.450
1.500
90.610
22
.429
1.431
92.041
23
.413
1.376
93.417
24
.349
1.165
94.582
25
.348
1.159
95.741
26
.309
1.031
96.773
27
.275
.916
97.688
28
.251
.837
98.525
29
.223
.744
99.269
30
.219
.731
100.000
93
Extraction Method: Principal Component Analysis.
Component Matrix
a
Component
1
2
3
4
5
6
IDEALI03
.662
IDEALI05
.636
INSPIR07
.618
INDIVI14
.614
MANAGE21
.614
INDIVI13
.614
IDEALI04
.585
IDEALI06
.576
MANAGE22
.576
MANAGE23
.575
.407
INSPIR08
.569
-.350
MANAGE25
.556
MANAGE24
.550
IDEALI01
.534
INDIVI16
.489
-.396
MANAGE26
.473
.389
INSPIR09
.393
MANAGE27
.380
-.340
-.343
-.329
-.357
.311
CONTIG19
.803
CONTIG17
.792
LAISSE30
-.510
.388
INTELL11
.366
-.634
INTELL10
.381
-.611
LAISSE29
.352
.504
-.417
.399
.454
.381
-.312
IDEALI02
.341
-.320
-.382
-.363
.377
-.372
-.431
-.326
-.406
.377
INTELL12
MANAGE20
-.400
-.300
.460
.346
9
-.327
.815
INDIVI15
8
-.311
CONTIG18
LAISSE28
7
-.348
.335
.421
-.676
Extraction Method: Principal Component Analysis.
a. 9 components extracted.
94
Rotated Component Matrix
a
Component
1
2
3
INDIVI13
.711
INSPIR08
.710
INDIVI14
.678
INSPIR09
.600
INSPIR07
.545
.304
INDIVI16
.493
.365
IDEALI06
.767
IDEALI05
.707
IDEALI04
.683
IDEALI03
.636
4
5
7
.893
CONTIG19
.888
CONTIG17
.872
MANAGE26
.803
MANAGE27
.709
MANAGE25
.702
.322
.405
9
.393
LAISSE30
.815
LAISSE28
.763
LAISSE29
.638
MANAGE23
.768
MANAGE22
.667
MANAGE21
8
-.347
CONTIG18
MANAGE24
6
.342
.368
INTELL10
.741
INTELL11
.682
INTELL12
.638
IDEALI01
.667
IDEALI02
.587
-.366
-.433
-.314
INDIVI15
.409
-.311
MANAGE20
.782
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 9 iterations.
Component Transformation Matrix
95
Component
1
2
3
4
5
6
7
8
9
1
.568
.579
.130
.393
.068
.372
.002
.135
.097
2
.063
-.062
.865
-.146
-.444
.007
-.014
-.130
-.094
3
.339
-.406
.251
-.195
.552
.012
.414
.372
-.070
4
-.155
-.004
.300
.072
.593
-.001
-.719
-.109
-.002
5
-.650
-.059
.205
.430
.062
.411
.285
.230
.200
6
.248
-.454
-.008
.538
.050
-.062
.136
-.627
.161
7
-.120
.305
.033
-.490
.285
.313
.310
-.576
.210
8
-.142
.206
.020
.205
.157
-.057
.219
-.192
-.884
9
-.125
.388
.197
.158
.171
-.767
.261
.023
.291
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
2. Result of EFA at second round after remove INDIVI15, MANAGE22, MANAGE23,
MANAGE21, MANAGE24, INDIVI16, MANAGE20, IDEALI01, INSPIR09,
IDEALI02, IDEALI05
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy.
.717
Approx. Chi-Square
Bartlett's Test of Sphericity
1181.657
df
171
Sig.
.000
Communalities
Initial
Extraction
IDEALI03
1.000
.635
IDEALI04
1.000
.687
IDEALI06
1.000
.670
INSPIR07
1.000
.537
INSPIR08
1.000
.660
INTELL10
1.000
.624
INTELL11
1.000
.585
INTELL12
1.000
.420
INDIVI13
1.000
.566
INDIVI14
1.000
.572
CONTIG17
1.000
.815
CONTIG18
1.000
.820
CONTIG19
1.000
.808
MANAGE25
1.000
.675
96
MANAGE26
1.000
.698
MANAGE27
1.000
.563
LAISSE28
1.000
.645
LAISSE29
1.000
.539
LAISSE30
1.000
.702
Extraction Method: Principal Component Analysis.
Total Variance Explained
Component
Initial Eigenvalues
Total
% of Variance
Extraction Sums of Squared Loadings
Cumulative %
Total
% of Variance
Rotation Sums of Squared Loadings
Cumulative %
Total
% of Variance
Cumulative %
1
3.697
19.458
19.458
3.697
19.458
19.458
2.488
13.094
13.094
2
2.640
13.896
33.354
2.640
13.896
33.354
2.477
13.039
26.133
3
1.791
9.425
42.779
1.791
9.425
42.779
1.980
10.423
36.556
4
1.717
9.036
51.815
1.717
9.036
51.815
1.861
9.797
46.353
5
1.332
7.012
58.827
1.332
7.012
58.827
1.855
9.762
56.116
6
1.045
5.502
64.329
1.045
5.502
64.329
1.561
8.213
64.329
7
.914
4.811
69.140
8
.820
4.313
73.453
9
.749
3.944
77.397
10
.679
3.574
80.971
11
.589
3.098
84.069
12
.557
2.930
86.998
13
.462
2.433
89.431
14
.438
2.304
91.735
15
.412
2.169
93.904
16
.348
1.832
95.736
17
.335
1.761
97.496
18
.239
1.256
98.752
19
.237
1.248
100.000
Extraction Method: Principal Component Analysis.
Component Matrixa
Component
1
2
INSPIR07
.672
IDEALI03
.653
INDIVI14
.648
3
4
97
5
6
INDIVI13
.625
INSPIR08
.611
MANAGE25
.602
IDEALI04
.587
IDEALI06
.569
-.304
.486
-.386
.302
.464
CONTIG18
.862
CONTIG19
.848
CONTIG17
.833
.322
INTELL10
.728
INTELL11
.714
INTELL12
.427
.421
LAISSE29
.626
LAISSE30
-.462
.620
LAISSE28
-.357
.571
.301
MANAGE26
.536
.626
MANAGE27
.430
.547
Extraction Method: Principal Component Analysis.
a. 6 components extracted.
Rotated Component Matrixa
Component
1
2
CONTIG17
.898
CONTIG18
.894
CONTIG19
.893
3
INSPIR08
.805
INDIVI13
.729
INDIVI14
.714
INSPIR07
.666
4
IDEALI06
.794
IDEALI04
.784
IDEALI03
.718
5
MANAGE26
.812
MANAGE25
.739
MANAGE27
.706
6
LAISSE30
.805
LAISSE28
.788
LAISSE29
.685
98
INTELL10
.767
INTELL11
.732
INTELL12
.626
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 6 iterations.
Component Transformation Matrix
Component
1
2
3
4
5
6
1
.026
.689
.530
.467
.162
-.017
2
.916
.053
.057
-.059
-.387
.032
3
-.155
.390
-.272
-.136
-.268
.812
4
.348
.181
-.396
-.116
.816
.098
5
.083
-.350
-.294
.856
-.006
.227
6
.085
-.465
.632
-.119
.292
.527
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
99
Appendix 6: Result of reliability test
1. Reliability of dependent variable:
- Continuance commitment:
Case Processing Summary
-
N
Valid
a
Cases
Excluded
Total
%
210
100.0
0
.0
210
100.0
a. Listwise deletion based on all variables in the procedure.
Reliability Statistics
Cronbach's Alpha
N of Items
.800
4
Item-Total Statistics
Scale Mean if Item
Scale Variance if
Corrected Item-Total
Cronbach's Alpha if
Deleted
Item Deleted
Correlation
Item Deleted
CONTIN34
11.25
4.522
.509
.803
CONTIN35
11.05
4.352
.628
.743
CONTIN36
10.79
4.176
.695
.711
CONTIN37
11.13
4.294
.631
.742
-
Affective commitment:
-
Case Processing Summary
N
Cases
Valid
%
210
100.0
100
a
Excluded
Total
0
.0
210
100.0
a. Listwise deletion based on all variables in the procedure.
Reliability Statistics
Cronbach's Alpha
N of Items
.774
4
Item-Total Statistics
Scale Mean if Item
Scale Variance if
Corrected Item-Total
Cronbach's Alpha if
Deleted
Item Deleted
Correlation
Item Deleted
AFFECT31
10.21
4.501
.643
.684
AFFECT32
10.29
4.150
.717
.640
AFFECT33
10.30
4.642
.601
.706
NORMAT38
10.50
5.227
.371
.824
-
Normative commitment:
-
Case Processing Summary
N
Valid
Cases
Excludeda
Total
%
210
100.0
0
.0
210
100.0
a. Listwise deletion based on all variables in the procedure.
Reliability Statistics
101
Cronbach's Alpha
N of Items
.368
2
Item-Total Statistics
Scale Mean if Item
Scale Variance if
Corrected Item-Total
Cronbach's Alpha if
Deleted
Item Deleted
Correlation
Item Deleted
NORMAT39
3.44
.296
.229
.
NORMAT40
3.13
.428
.229
.
2. Reliability of independent variable:
- Contingent reward:
Case Processing Summary
-
N
Valid
Excludeda
Cases
Total
%
210
100.0
0
.0
210
100.0
a. Listwise deletion based on all variables in the procedure.
Reliability Statistics
Cronbach's Alpha
N of Items
.882
3
Item-Total Statistics
Scale Mean if Item
Scale Variance if
Corrected Item-Total
Cronbach's Alpha if
Deleted
Item Deleted
Correlation
Item Deleted
CONTIG17
8.00
1.713
.764
.838
CONTIG18
8.04
1.553
.770
.837
102
CONTIG19
-
8.01
1.746
.785
.823
Personal motivation:
Case Processing Summary
-
N
Valid
a
Cases
Excluded
Total
%
210
100.0
0
.0
210
100.0
a. Listwise deletion based on all variables in the procedure.
Reliability Statistics
Cronbach's Alpha
N of Items
.764
4
Item-Total Statistics
Scale Mean if Item
Scale Variance if
Corrected Item-Total
Cronbach's Alpha if
Deleted
Item Deleted
Correlation
Item Deleted
INDIVI13
10.08
4.400
.539
.722
INDIVI14
9.95
4.170
.559
.712
INSPIR07
9.83
4.296
.563
.709
INSPIR08
9.84
4.337
.596
.692
-
Management by exception:
-
Case Processing Summary
N
Cases
Valid
%
210
100.0
103
a
Excluded
Total
0
.0
210
100.0
a. Listwise deletion based on all variables in the procedure.
Reliability Statistics
Cronbach's Alpha
N of Items
.685
3
Item-Total Statistics
Scale Mean if Item
Scale Variance if
Corrected Item-Total
Cronbach's Alpha if
Deleted
Item Deleted
Correlation
Item Deleted
MANAGE25
5.80
2.802
.523
.559
MANAGE26
5.85
2.560
.563
.502
MANAGE27
5.33
3.400
.419
.685
-
Idealized influence:
Case Processing Summary
-
N
Valid
Cases
Excludeda
Total
%
210
100.0
0
.0
210
100.0
a. Listwise deletion based on all variables in the procedure.
Reliability Statistics
Cronbach's Alpha
.742
N of Items
3
104
Item-Total Statistics
Scale Mean if Item
Scale Variance if
Corrected Item-Total
Cronbach's Alpha if
Deleted
Item Deleted
Correlation
Item Deleted
IDEALI03
6.51
1.859
.586
.634
IDEALI04
6.44
2.018
.601
.622
IDEALI06
6.24
1.991
.519
.714
-
Laissez-faire:
Case Processing Summary
-
N
Valid
Excludeda
Cases
Total
%
210
100.0
0
.0
210
100.0
a. Listwise deletion based on all variables in the procedure.
Reliability Statistics
Cronbach's Alpha
N of Items
.666
3
Item-Total Statistics
Scale Mean if Item
Scale Variance if
Corrected Item-Total
Cronbach's Alpha if
Deleted
Item Deleted
Correlation
Item Deleted
LAISSE28
5.13
1.376
.490
.556
LAISSE29
5.09
1.351
.412
.666
LAISSE30
5.32
1.319
.541
.490
-
Intellectual Stimulation:
105
Case Processing Summary
-
N
Valid
Excludeda
Cases
Total
%
210
100.0
0
.0
210
100.0
a. Listwise deletion based on all variables in the procedure.
Reliability Statistics
Cronbach's Alpha
N of Items
.514
3
Item-Total Statistics
Scale Mean if Item
Scale Variance if
Corrected Item-Total
Cronbach's Alpha if
Deleted
Item Deleted
Correlation
Item Deleted
INTELL10
7.71
.741
.410
.275
INTELL11
6.92
1.252
.400
.356
INTELL12
7.45
1.215
.234
.558
106
[...]... behaviour: laissezfaire (non -leadership) , transactional, and transformational leadership Bass (1990), proposed four 16 behaviours of transformational leadership including charisma, inspirational motivation, intellectual stimulation, and individual consideration Idealized influence attributes or behaviors, or Charisma is characterized by vision and a sense of mission, instilling pride in and among the. .. identification with the organization and its goals Affective commitment involves three aspects such as the formation of an emotional attachment to an organization, identification with, and the desire to maintain organizational membership (Allen & Meyer, 1991) Continuance commitment is a commitment situation originating from the needs of employees to stay in the organization considering the costs of leaving... effort on behalf of the organization; and • a definite belief in and acceptance of the values and goals of the organization In other words, this commitment is an attitude about employees‟ loyalty to their organization and is an ongoing process through which organizational participants express their concern for the organization and its continued success and well-being The organizational commitment attitude... behavior as a leadership Theory multi-dimensional construct, where leaders may act transformational, transactional and laissez-faire, depending on the interaction among all variables, including leaders, followers, situation, work environment and all related factors Table 3: Summary of the development of Full Range Leadership Theory (conceptualized by Hassan Othman Saqer, 2009) Contingency Theories 2.2 Employee. .. represents nine single-order factors including five transformational leadership factors, three transactional leadership factors, and one nontransactional laissez-faire leadership These leadership styles have been described to have a direct effect on individual and organisational level outcomes (Bass, 199 0a) Bass (198 5a) based his descriptions of transformational and transactional leaders on Burns‟s... in the field of organizational behavior Generally speaking, leadership involves influencing other individuals to act towards the achievement of a goal Some definitions describe leadership as an act of influence, some as a process and yet others have looked at a person‟s trait qualities (Lussier and Achua, 2001) Various authors regard leadership as the behaviour of an individual when directing the activities... operationalize the conceptual model and to investigate the relative effects of the various factors Result of data processing indicated that there are three factors affect employees‟ continuance and affective commitment such as personal motivation, idealized influence and contingent reward In which personal motivation and contingent reward is the key factor and idealized influence is an important factor... within the organisation Employee commitment was captured using Meyer and Allen‟s (1997) Organisational Commitment including Three-Component Model of employee commitment Leadership was identified as the independent variable and organisational commitment as the dependent variable Data obtained from each of the research instruments was then statistically processed in data analysis in order to refine and... is determined by a number of personal (age, tenure in organization, and dispositions such as positive or negative affectivity, or internal or external control attributions) and organizational (the job design and leadership style of one‟s supervisor) variables Even nonorganizational factors such as the availability of alternatives, after making the initial choice to join an organization, will affect subsequent... transactional one does not have significant relationship with organizational commitment Similarly, Hayward et al (2004) indicated that no correlation was found between transactional leadership and affective, normative and continuance commitment However, Bass (1985) insisted that rewarding when employees reached targets had a positive and considerable influence on their next attempt and increased their ... to stay in the organization considering the costs of leaving In continuance commitment, the employees consider the disadvantages of leaving the organization and avoid quitting Continuance commitment. .. that analyzes the data is not involved in the planning of the experiment or the collection of the data Such analysis can be done based upon information that is available in the statistical information.. .THE EFFECT OF LEADERSHIP ON EMPLOYEE COMMITMENT IN FPT DISTRIBUTION COMPANY – A FULL RANGE LEADERSHIP APPROACH In Partial Fulfillment of the Requirements of the Degree of MASTER OF BUSINESS ADMINISTRATION
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