UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business LUONG THI THANH THAO THE INFLUENCE OF LEADERSHIP POWER BASES ON EMPLOYEE’S JOB STRESS - A STUDY OF VIETNAMESE COMPANIES MASTER OF BUSINESS (Honours) Ho Chi Minh City – Year 2014 UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business LUONG THI THANH THAO THE INFLUENCE OF LEADERSHIP POWER BASES ON EMPLOYEE’S JOB STRESS - A STUDY OF VIETNAMESE COMPANIES ID: 21120110 MASTER OF BUSINESS (Honours) SUPERVISOR: Dr Pham Ngoc Thuy Ho Chi Minh City – Year 2014 ACKNOWLEDGEMENTS I would like to express my sincere gratitude to Dr Pham Ngoc Thuy, my Supervisor, for her thoughtful guidance guidance, recommendations from the research proposal to the thesis report I really appreciate her patience during the whole instruction process for me to the able to complete this study despite some location difficulties Secondly, I would like to express my sincere thanks to all professors, tutors and officers of MBus Program for valuable lectures, academy knowledge and your experiences transfer throughout the period of courses at International School of Business I want to express my special thanks to all my colleagues, friends for your advice, cooperation and supports during the pilot and official survey Finally, special thanks to my family especially my parents for their support, encouragement and inspiration that enabled me to finish the course Without your support, I can not successfully complete my thesis Ho Chi Minh City, Vietnam, 06th Dec, 2014 Luong Thi Thanh Thao i ABSTRACT The turnover rate in Companies in Vietnam is growing especially in Sales department of FMCGs companies, there are few studies of the influence of leadership behaviors on both organizational and leader effectiveness That is why FMCG and employees who work in sales sector are mainly focus of this study The objectives of this research to identify relationships between leadership power bases and employee‟s job stress in Companies in Viet Nam A convenience sample is collected from 289 employees from many companies, largely from FMCGs and Sales department The goal was to obtain the influence of leadership power bases used by his or her leaders and the employees‟ job stress to determine if an association exists between these two variables The results indicated that perceived leadership power bases correlate with job stress for employees in these companies The components of the Legitimate power base is positively related to job stress of subordinate, whereas the Expert power, Reward Power and Coercive are related negatively According to the research including on legitimate leadership behaviors, these approaches may lead to high job stress However, using mostly Expert, Reward and Coercive power may result in positive effects such as low stress levels Leadership is at the heart of effective management The research, mainly focusing on companies in Ho Chi Minh City with convenient sampling method to collect data analysis Demographic factors might have affected the results Most of the participants were young with job tenure under three years Moreover, most of the samples chosen came from male gender Finally, there may have been a self-selection bias among the subordinates who participated in this study since participation was voluntary Key words: Leadership, Job stress, power bases Table of contents ACKNOWLEDGEMENTS i ABSTRACT ii CHAPTER 1: INTRODUCTION 1.1 Research background 1.2 Research questions and research objectives 1.3 Research contribution/significance 1.4 Scope of the study and delimitation 1.5 Research structure CHAPTER 2: LITERATURE REVIEW 2.1 Literature review 2.2 Concept of Leadership and the bases of power 2.2.1 Legitimate power 2.2.2 Reward power 2.2.3 Coercive power 2.2.4 Expert power 2.2.5 Referent power 2.3 Job Stress 2.4 Relationships among concepts 10 2.4.1 Legitimate Power and Job Stress 10 2.4.2 Reward Power and Job Stress 11 2.4.3 Coercive Power and Job Stress 12 2.4.4 Expert Power and Job Stress 12 2.4.5 Referent Power and Job Stress 13 CHAPTER 3: RESEARCH METHODOLOGY 16 3.1 Research Process 16 3.2 Research Design 17 3.3 Measurement scales 19 3.3.1 Legitimate power 19 3.3.2 Reward power 20 3.3.3 Coercive power 20 iii 3.3.4 Expert Power 20 3.3.5 Referent power 21 3.3.6 Job stress 21 3.4 Questionnaire Design 22 3.5 Sampling Method 23 3.6 Qualitative Survey 24 3.7 Main survey and data collection 25 3.8 Data analysis methods 26 3.8.1 Exploratory Factor Analysis (EFA) 26 3.8.2 Reliability Analysis 27 3.8.3 Regression analysis 27 CHAPTER 4: RESULTS AND CONCLUSIONS 29 4.1 Descriptive analysis of the variables studies 29 4.2 Measurement scale assessment 31 4.2.1 Reliability Analysis - by Cronbach‟s Alpha 31 2.2 Results of the Exploratory Factor Analysis 36 4.2.3 The KMO and Bartlett‟s Test 39 4.2.4 The revised research model 40 4.3 Hypotheses testing 41 4.3.1 Testing relationship of independent factors and dependent factor 41 4.3.2 The results of the regression analysis 43 4.3.3 Hypotheses Testing 44 4.4 Discussion 47 CHAPTER – CONCLUSIONS AND IMPLICATIONS 48 5.1 Main findings 48 5.2 Managerial implications 49 5.3 Contributions of the study 49 5.4 Limitations 50 REFERENCES 52 APPENDICES 57 APPENDIX – QUESTIONNAIRE IN ENGLISH 57 APPENDIX – QUESTIONNAIRE IN VIETNAMMESE 60 iv APPENDIX - DESCRIPTIVE STATISTICS OF ITEMS 63 APPENDIX - EFA ANALYSIS RESULTS 64 APPENDIX - RELIABILITY ANALYSIS RESULTS 65 APPENDIX 6: FREQUENCY TABLE 66 v List of Table Table 4-1: Descriptive Statistics of Sample 31 Table 4-2: Reliability analysis results 35 Table 4-3: EFA analysis results for the variables 37 Table 4-4: The total explained variance 37 Table 4-5: KMO and Bartlett's Test 39 Table 4-6: Describe the correlation among variable 42 Table 4-7: Hypotheses testing results 43 Table 4-8: Multiple Regressions results of model 45 Table 4-9: Summary of hypothesis testing result 47 List of Figures Figure 1: Research model for leader power bases and job stress of employee 14 Figure 2: Research Process 16 Figure 3: Revised Research Model 39 vii ABBREVIATIONS ANOVA: Analysis Of Variance EFA: Explored Factor Analysis KMO: Kaiser-Meyer-Olkin SPSS: Statistical Package for Social Science viii Craig, C S., & Douglas, S P (2006).” International marketing research (3rded.)” New York, NY: Wiley Daft, R L (2005) The leadership experience (3rd Ed) Toronto: Thompson South Western De Coster, J (2004) Data Analysis in SPSS DuBrin, A J (2009) Political behavior in organizations Thousand Oaks, CA: Sage Elangovan, A.R and Xie, J.L (2000), „„Effects of perceived power of supervisor on subordinate work attitudes‟‟, Leadership and Organization Development Journal, Vol 21 No 6, pp 319-28 Erkutlu and Chafra (2006), “Relationship between leadership power bases and job stress of subordinates: example from boutique hotels” Management Research News, Vol 29 No French, J.R.P and Raven, B (1959), „„The bases of social power‟‟, in Cartwright, D (Ed.), Studies in Social Power, University of Michigan Press, Ann Arbor, MI, pp 150-67 Ganster, D.C and Schaubroeck, J (1991), „„Work stress and employee health‟‟, Journal of Management, Vol 17 No 2, pp 235-71 Gehring, D R (2007, March) Applying traits theory of leadership to project management Project Management Journal, 38(1), 44-55 Gibson, J L, Ivancevich, J M., Donnelly, J H., & Konopaske, R (2012) Organizations: Behavior, structure, processes (14th ed.) 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Yes No If yes, please respond to the questions below for indicating the supervisor mentioned in question How long sir/madam works with this supervisor: < year 1-2 years 3-5 years PART II: INFORMATION OF MAIN SURVEY 57 > years Totally disagree Disagree Neutral Agree Totally Agree It is reasonable for my superior to decide what he/she wants me to My superior‟s position does not give him/her the authority to change the procedures of my work 5 I should what my superior wants because he/she is my superior 5 5 5 5 5 1 2 3 4 5 5 5 1 2 3 4 5 Please indicate the level of agreement of the He/ She for the following statement by ticking (√) in the box corresponding to: Box 1: Totally disagree Box 5: Totally Agree As for the other levels in the box number 2, and respectively 11 My superior has the right to expect me to carry out his/her instructions My superior can provide opportunities for my advancement if my work is outstanding My superior can not get me a pay raise even if I my job well If I put forth extra effort, my superior can take into consideration to determine my pay raise My superior can get me a bonus for earning a good performance rating My superior can recommend a promotion for me if my performance is consistently above average 10 My superior can recommend me for merit recognition if my performance is especially good 11 My superior can take disciplinary action against me for insubordination/ disobedience 12 My superior can fire me if my performance is consistently below standards 13 My superior can see to it that I get no pay raise if my work is unsatisfactory 14 My superior can fire me if I neglect my duties 15 My superior can suspend me if I am habitually late in coming to work 16 I approach my superior for advice on work-related problems because he/she is usually right 17 When a tough job comes up, my superior has the technical “know how” to get it done 18 My superior has specialized training in his/her field 19 I prefer to what my superior suggests because he/she has high professional expertise 20 My superior has considerable professional experience to draw from in helping me to 21 My superior has a pleasing personality 22 I admire my superior because he/she treats every person fairly 58 23 I like the personal qualities of my superior 24 My superior is not the type of person I enjoy working with 25 I am lack of opportunity for advancement I feel difficult to get along with supervisor I have inadequate salary 1 2 3 4 5 I have a poor or inadequate supervision 29 I work with poorly motivated co-workers 30 31 I have conflicts with other departments I feel fidgety or nervous as a result of my job 32 Working here makes it hard to spend enough time with my family 33 I have too much work and too little time to it I sometimes dread the telephone ringing at home, because the call might be job-related Too many people at my level in the company get burned out by job demands 5 26 27 28 34 35 PART III: OTHERS INFORMATION He / She tell us the following information to serve the classification and presentation of statistical data: Gende:  Female  Male Age:  18 – 23 old  24-30 old  31-40 old  41-50 old  > 50 old Marital status: kids yet Single Married, have kids Thank you so much for your kind support 59 Married, not have APPENDIX – QUESTIONNAIRE IN VIETNAMMESE PHIẾU KHẢO SÁT Kính chào Anh/Chị! Tôi tên Lương Thị Thanh Thảo, học viên cao học Viện Đào tạo Quốc tế (ISB)Trường Đại học Kinh Tế TPHCM, nghiên cứu quan hệ phong cách quản lý thái độ nhân viên Rất mong Anh/Chị dành thời gian trả lời Phiếu khảo sát Lưu ý khơng có câu trả lời hay sai, tất ý kiến phản hồi có giá trị cho nghiên cứu PHẦN I: THƠNG TIN TỔNG QUÁT Anh/Chị công tác Cty: …………………………………………………… Bộ phận: Kinh doanh Kế toán/ tài Kỹ thuật Khác (xin ghi rõ): …………………… ……… Anh/Chị giám sát cấp trực tiếp? Có Khơng Nếu Có, câu hỏi tiếp sau nói cấp trực tiếp đề cập câu Thời gian Anh/Chị làm việc với cấp trực tiếp này: < năm 1-2 năm 3-5 năm > năm Việc cấp định tơi phải làm theo ý anh/chị điều hợp lý Vị trí cấp tơi khơng có quyền thay đổi thủ tục/ quy trình cơng việc tơi Tơi nên làm cấp muốn anh/chị cấp tơi 60 Hồn tồn đồng ý Đồng ý Ơ số 5: Hồn tồn đồng ý Còn với mức độ khác đánh vào số 2, Trung dung Ơ số 1: Hồn tồn không đồng ý Không đồng ý Xin cho biết mức độ đồng ý Anh/Chị với phát biểu sau cấp trực tiếp cách đánh dấu (√) vào tương ứng, với: Hồn tồn khơng đồng ý PHẦN II: THƠNG TIN KHẢO SÁT 5 Cấp tơi có quyền yêu cầu thực theo dẫn anh/chị Cấp tơi tạo hội thăng tiến cho tôi làm việc xuất sắc Cấp tăng lương cho tôi làm việc tốt Nếu cố gắng hết mức, cấp tơi cân nhắc địnnh tăng lương cho Cấp đề nghị khen thưởng cho tôi đạt thành tích tốt Cấp đề nghị thăng tiến cho tôi, thành đạt trung bình Cấp tơi thưởng cho kết công việc làm xếp hạng tốt Cấp tơi kỷ luật tôi không tuân theo quy định Cấp sa thải tơi kết làm việc liên tục mức chuẩn Cấp tơi khơng tăng lương cho tơi làm việc không đạt yêu cầu Cấp tơi sa thải tơi tơi lơ với nhiệm vụ Cấp tơi cho nghỉ việc làm trễ thường xuyên Tôi xin ý kiến cấp gặp công việc khó anh/chị thường có lời khun Khi gặp cơng việc khó, cấp tơi có bí để xử lý 5 5 5 5 5 1 2 3 4 5 5 5 5 23 Cấp đào tạo tốt lĩnh vực chun mơn Tơi thích làm cấp tơi đề nghị anh/chị có chun mơn cao Cấp tơi có nhiều kinh nghiệm chuyên môn để giúp công việc Cấp tơi có tính cách dễ chịu Tơi ngưỡng mộ cấp anh/chị đối xử cơng với người Tơi thích phẩm chất cá nhân cấp 24 Cấp kiểu người tơi thích làm việc 25 Tơi có hội thăng tiến 26 27 28 Tơi thấy khó khăn để hòa hợp với cấp Tôi nhận mức lương không thỏa đáng Tơi có cấp khơng tương xứng 1 2 3 4 5 29 Tôi làm việc với cộng không cầu tiến 30 31 Tơi có xung đột với phận khác Tôi cảm thấy bồn chồn lo lắng công việc 1 2 3 4 5 32 Làm việc làm khiến tơi khó dành đủ thời gian cho gia đình 33 Tơi có q nhiều việc thời gian để làm Ở nhà, đơi tơi sợ tiếng chng điện thoại gọi liên quan đến cơng việc 5 10 11 12 13 14 15 16 17 18 19 20 21 22 34 61 35 Có nhiều người làm vị trí tơi bị tải yêu cầu công việc PHẦN III: THÔNG TIN KHÁC Anh/Chị vui lòng cung cấp số thơng tin để phục vụ cho việc tổng hợp, thống kê kết Giới tính: Nam Nữ Nhóm tuổi: 18 đến 23 24 đến 30 Tình trạng nhân: chưa Độc thân 31 đến 40 41 đến 50 Có gia đình, có Xin chân thành cám ơn hợp tác Anh/Chị! 62 50 Có gia đình, APPENDIX - DESCRIPTIVE STATISTICS OF ITEMS Descriptive Statistics Minimu Maximu N m m Std Mean Deviation Skewness Kurtosis Std Statistic Statistic Statistic Statistic Statistic Statistic Error Std Statistic Error LEGIT01 289 3.21 1.166 -.305 143 -.620 286 LEGIT03 289 2.99 1.120 -.099 143 -.650 286 REWAR05 289 3.73 1.200 -.774 143 -.228 286 REWAR07 289 3.53 1.155 -.585 143 -.324 286 REWAR09 289 2.89 1.211 -.058 143 -.840 286 REWAR10 289 3.34 1.197 -.476 143 -.550 286 COERC11 289 3.68 1.209 -.654 143 -.463 286 COERC12 289 3.55 1.258 -.475 143 -.767 286 COERC13 289 3.65 1.260 -.655 143 -.620 286 COERC14 289 3.41 1.133 -.269 143 -.576 286 COERC15 289 3.05 1.286 021 143 -1.026 286 EXPER16 289 3.86 1.084 -.875 143 132 286 EXPER17 289 3.67 1.096 -.617 143 -.193 286 EXPER18 289 3.89 1.092 -1.073 143 632 286 EXPER19 289 3.31 1.064 -.204 143 -.296 286 REFER22 289 3.35 1.233 -.355 143 -.739 286 JOBST32 289 2.79 1.311 198 143 -1.042 286 JOBST33 289 2.87 1.133 095 143 -.666 286 JOBST34 289 2.57 1.345 344 143 -1.102 286 JOBST35 289 2.97 1.352 -.104 143 -1.150 286 Valid N (listwise) 289 63 APPENDIX - EFA ANALYSIS RESULTS Total Variance Explained Rotation Sums of Initial Eigenvalues Factor Total Extraction Sums of Squared Loadings % of Cumulative Variance % Total % of Cumulative Variance % Squared Loadingsa Total 6.218 31.092 31.092 5.807 29.035 29.035 4.990 2.926 14.630 45.722 2.491 12.456 41.492 3.244 1.865 9.325 55.047 1.408 7.039 48.531 2.923 1.077 5.387 60.434 650 3.252 51.783 4.560 1.060 5.299 65.733 568 2.841 54.624 2.182 787 3.935 69.668 712 3.561 73.229 634 3.170 76.399 606 3.028 79.427 10 596 2.979 82.406 11 521 2.606 85.012 12 475 2.375 87.387 13 413 2.064 89.451 14 392 1.959 91.410 15 351 1.754 93.164 16 325 1.625 94.790 17 301 1.506 96.296 18 266 1.332 97.628 19 242 1.211 98.839 20 232 1.161 100.000 Extraction Method: Principal Axis Factoring a When factors are correlated, sums of squared loadings cannot be added to obtain a total variance 64 APPENDIX - RELIABILITY ANALYSIS RESULTS Item-Total Statistics Corrected Item- Squared Cronbach's Scale Mean if Scale Variance Total Multiple Alpha if Item Item Deleted if Item Deleted Correlation Correlation Deleted LEGIT01 2.99 1.253 433 187 LEGIT03 3.21 1.360 433 187 Item-Total Statistics Corrected Item- Squared Cronbach's Scale Mean if Scale Variance Total Multiple Alpha if Item Item Deleted if Item Deleted Correlation Correlation Deleted REWAR05 9.76 8.663 673 514 767 REWAR07 9.96 8.408 764 611 726 REWAR09 10.60 9.581 508 264 842 REWAR10 10.16 8.729 664 466 772 Item-Total Statistics Corrected Item- Squared Cronbach's Scale Mean if Scale Variance Total Multiple Alpha if Item Item Deleted if Item Deleted Correlation Correlation Deleted COERC11 13.66 13.821 530 282 744 COERC12 13.80 13.024 599 436 720 COERC13 13.69 14.194 449 230 771 COERC14 13.93 12.988 707 545 688 COERC15 14.29 13.679 495 331 757 65 Item-Total Statistics Corrected Item- Squared Cronbach's Scale Mean if Scale Variance Total Multiple Alpha if Item Item Deleted if Item Deleted Correlation Correlation Deleted EXPER16 14.22 13.508 713 529 835 EXPER17 14.42 13.203 748 566 826 EXPER18 14.19 13.657 683 473 842 EXPER19 14.77 14.406 597 364 862 REFER22 14.74 12.542 722 523 833 Item-Total Statistics Corrected Item- Squared Cronbach's Scale Mean if Scale Variance Total Multiple Alpha if Item Item Deleted if Item Deleted Correlation Correlation Deleted JOBST32 8.40 10.513 651 452 798 JOBST33 8.33 10.929 741 553 765 JOBST34 8.62 10.250 663 443 793 JOBST35 8.22 10.479 623 419 811 APPENDIX 6: FREQUENCY TABLE FIELD Cumulative Frequency Valid Percent Valid Percent Percent 107 37.0 37.0 37.0 39 13.5 13.5 50.5 35 12.1 12.1 62.6 108 37.4 37.4 100.0 Total 289 100.0 100.0 66 Gender Cumulative Frequency Valid Percent Valid Percent Percent 109 37.7 37.7 37.7 180 62.3 62.3 100.0 Total 289 100.0 100.0 Age Cumulative Frequency Valid Percent Valid Percent Percent 15 5.2 5.2 5.2 179 61.9 61.9 67.1 87 30.1 30.1 97.2 2.1 2.1 99.3 7 100.0 289 100.0 100.0 Total Maritalstatus Cumulative Frequency Valid Percent Valid Percent Percent 170 58.8 58.8 58.8 89 30.8 30.8 89.6 30 10.4 10.4 100.0 289 100.0 100.0 Total 67 ... styles and job stress and lay the foundation for an empirical review of the correlation between leadership styles and job stress Erkutlu and Chafra already examined the influence of leadership power. .. from Sales Department 2.2 Concept of Leadership and the bases of power Leadership dates back to the earliest days of human history The great man theory suggested that leaders were born into leadership. .. Exploratory Factor Analysis and Cronbach‟s alpha reliability analysis to validate the questionnaire and make sure the reliability of the measurement scale Standard multiple regression was used