The factors affecting the taking charge at pnj

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BUSINESS RESEARCH METHODS | LE NGOC QUYNH NHU RESEARCH PROJECT (BMBR5103) THE FACTORS AFFECTING THE TAKING CHARGE AT PNJ STUDENT’S FULL NAME : LE NGOC QUYNH NHU STUDENT ID : CGS00018255 INTAKE : MAY 2014 ADVISOR’S NAME & TITLE : DR. NGUYEN THE KHAI (DBA) August, 2015 Page | 1 BUSINESS RESEARCH METHODS | LE NGOC QUYNH NHU Advisor’s assessment ............................................................................................................................................ ............................................................................................................................................ ............................................................................................................................................ ............................................................................................................................................ ............................................................................................................................................ ............................................................................................................................................ ............................................................................................................................................ ............................................................................................................................................ ............................................................................................................................................ ............................................................................................................................................ ............................................................................................................................................ ............................................................................................................................................ ............................................................................................................................................ ............................................................................................................................................ ............................................................................................................................................ ............................................................................................................................................ ............................................................................................................................................ ............................................................................................................................................ Advisor’s signature Page | 2 BUSINESS RESEARCH METHODS | LE NGOC QUYNH NHU ACKNOWLEDGEMENT I would like to take this opportunity to acknowledge the assistance of some individual that without them my study would not have been completed. First of all, I would like to express my gratitude to Dr. Khai Nguyen who has given me a lot of knowledge and information about the Business Research Management. Moreover, he has not only given a lot of advice, but also supported me whenever I needed help. He has passed on to me the great motivation to be able to complete this study. Secondly, I would like to thanks employees of PNJ, whom had helped to do the survey and collect data which is essential for me to conduct the research. Last but not least, I also wish to give my truthful thanks and my sincerest to my family and all of my friends for their encouragement, and great support. Page | 3 BUSINESS RESEARCH METHODS | LE NGOC QUYNH NHU TABLE OF CONTENTS ACKNOWLEDGEMENT ................................................................................. 3 ABSTRACT ....................................................................................................... 7 CHAPTER I: INTRODUCTION ....................................................................... 8 1.1 Company Introduction ....................................................................... 8 1.1.1 Organizational Structure .......................................................... 12 1.1.2 Organizational Culture ............................................................. 12 1.2 Research Problem Statement .......................................................... 13 1.3 Purpose Of The Research ................................................................ 13 1.4 Scope Of The Research .................................................................... 14 1.5 Significant Of The Research ............................................................ 14 1.6 Limitation Of The Research ............................................................ 14 CHAPTER II: LITERATURE REVIEW ........................................................ 15 2.1 Taking Charge ...................................................................................... 15 2.2 Career Satisfaction ............................................................................... 17 2.3 Work – Related Expectancies ............................................................. 17 2.4 Supervisory Support ............................................................................ 19 2.5 Perceived Organizational Support ..................................................... 20 CHAPTER III: RESEARCH METHODOLOGY ........................................... 23 3.1 Research Model .................................................................................... 23 3.2 Hypothesis ............................................................................................. 23 3.2.1 Job Satisfaction (Career Satisfaction) ......................................... 23 3.2.2 Job Characteristics (Work – related Expectancies, Supervisory Support, Perceived Organizational Support) ...................................... 27 3.2.3 Workplace Behaviors (Taking Charge) ...................................... 34 3.3 Data Analysis ........................................................................................ 38 CHAPTER IV: ANALYSIS AND RESULTS ................................................ 39 4.1 Cronbach’s Alpha ................................................................................ 39 4.2 Descriptive Analysis ............................................................................. 40 Page | 4 BUSINESS RESEARCH METHODS | LE NGOC QUYNH NHU 4.3 Hypothesis Testing ............................................................................... 41 4.3.1 Hypothesis 1: Career Satisfaction is positively related to Taking Charge ..................................................................................................... 42 4.3.2 Hypothesis 2: Work – Related Expectancies is positively related to Taking Charge ........................................................................................ 42 4.3.3 Hypothesis 3: Supervisory Support is positively related to Taking Charge ..................................................................................................... 43 4.3.4 Hypothesis 4: Perceived Organizational Support is positively related to Taking Charge.................................................................................... 43 CHAPTER V: CONCLUSION ........................................................................ 44 5.1 Summary Of The Results .................................................................... 44 5.2 Discussion and Recommendation ....................................................... 46 5.3 Limitation .............................................................................................. 47 REFERENCE ................................................................................................... 48 APPENDIX 1 ................................................................................................... 51 APPENDIX 2 ................................................................................................... 57 Page | 5 BUSINESS RESEARCH METHODS | LE NGOC QUYNH NHU LIST OF TABLES Table 1: Measurement of Career Satisfaction…………….…..…………………27 Table 2: Measurement of Work-Related Expectancies…….…..…………….….29 Table 3: Measurement of Supervisory Support………….…………..…..………31 Table 4: Measurement of Perceived Organizational Support….……......…..…...32 Table 5: Measurement of Taking Charge……………………….…...…..……….37 Table 6: Analysis results of Cronbach’s Alpha in the research……......…………40 Table 7: Descriptive Statistics……………………………………….….……...…40 Table 8: Model Summary………………………………...………....…………….41 Table 9: Coefficients………………………………………………...…………….42 Page | 6 BUSINESS RESEARCH METHODS | LE NGOC QUYNH NHU ABSTRACT The willing to take charge of the employees is highly appreciate and is considered as one of an important factors that promote the development of the company. There are many factors that impact on this behavior, but in this study, I suppose that Career Satisfaction, Work – Related Expectancies, Supervisory Support and Perceived Organizational Support are affected the Taking Charge of employees at PNJ Company. The theoretical framework of this study is tested by the data which collected from 274 employees at PNJ’s Headquarter. The finding of this research will provide very important information for PNJ’s management in order to help them to improve the policy, strategy, working environment…that is aimed to gain more skillful and talent employees. Key words: Career Satisfaction, Work – Related Expectancies, Supervisory Support, Perceived Organizational Support, Taking Charge. Page | 7 BUSINESS RESEARCH METHODS | LE NGOC QUYNH NHU CHAPTER I: INTRODUCTION 1.1 Company Introduction PNJ is a “top of mind” brand in customer’s awareness whenever mentioned about the jewelry. PNJ is short named of Phu Nhuan Jewelry which has been established since 1988. Putting customers' benefits and social benefits to the corporate interests is PNJ's business philosophy. PNJ constantly improves customer’s satisfaction on the basis of combining the interests of the company, customers and society, by consistently maintaining and improving the quality system. PNJ has built its development orientation by confirmed its leading position on the creativity, flair, reliable and fashionable in jewelry. Since early 2004, PNJ has accelerated on all aspects of investment in machinery and equipment, system development, human resources development by regular training programs in the country and abroad. The activity of company is showing the PNJ’s jewelry manufacturers by professional designs and unique style of PNJ. The company is proud of the modern technology production, extensive distribution system throughout the country with dedicated and experienced sale teams. PNJ is proud of being an enterprise, who can meet the strict criteria of foreign enterprises, becoming the only enterprise export jewelry in Vietnam. In the recent years, PNJ has exported to the US, Canada, Denmark, Australia, Japan... and more in the future. Page | 8 BUSINESS RESEARCH METHODS | LE NGOC QUYNH NHU PNJ'S PROFILE Name of company PHU NHUAN JEWELRY JOINT STOCK COMPANY Abbreviation PNJ Slogan Faith and Style 170E Phan Dang Luu Street, Ward 3, Phu Nhuan District, Address HCMC Telephone 08.3995 1703 Fax 08.3995 1702 Email pnj@pnj.com.vn Website http://pnj.com.vn Type of business Joint stock company Registered capital 600 billion VND  Logo definition: Converge to Shine  Symbol - The logo is inspired from diamond, which is known as the most luxury gemstone, a symbol of longevity and transparent. - This logo shows all diverse business areas of PNJ that based on the company’s core values that have been established and constantly strengthened. - Five glimmers are simple, but powerful and equally soft and flexible, which is the feature of jewelry creation – the main business of PNJ. Besides, 5 glimmers also imply five basic elements (metal, wood, water, fire, earth, according to Eastern philosophy), reflecting the active and ongoing development of PNJ. - PNJ is the abbreviation of the company name – a valuable asset being established and developed during the last 20 years. Page | 9 BUSINESS RESEARCH METHODS | LE NGOC QUYNH NHU  Color The main colors are golden yellow and PNJ blue. - Golden yellow is the color of gold – the main material in jewelry creation as well as the symbol of prosperity and wealth. - PNJ blue is the color of the sky and sea – a symbol of trust. It is the color of cooperation, success and sustainability. The combination of golden yellow and PNJ blue demonstrates the fashion, style and belief.  Vision We aim to become the leading jewelry fashion brand, with core attributes being Creativity, Fineness, and Reliability.  Mission Our mission is always to enhance customers’ satisfaction, by diversifying products and services at highest quality and reasonable price, by advancing management and manufacturing system, and improving craftsmen’s skills.  Philosophy Customer benefits is our commitment.  Core value  Honesty Honesty is the best policy and the highest professional code of moral conduct to which each individual and organization should commit: - Lawful profits and business morality are the bases for all PNJ conducts. - Build confidence and transparency in the organization to win trust. - Declare wars to eliminate any symptoms of dishonesty. Page | 10 BUSINESS RESEARCH METHODS | LE NGOC QUYNH NHU  Quality Quality is the backbone for survival and the standard to which the value of each individual and organization should be measured. - Ensure the quality of all resource for the creation of high quality products. Each individual commits to carry out his/her duties at the highest standard of quality ensure zero faulty items and handing out such items to others.  Responsibility Leaning responsibility as the motivation for all business conducts. Place highest emphasis on the benefit of customers, company and the community. - Each individual commits to live in responsible way with his/her family, company and society. - Execute all tasks excellently in voluntary, proactive, creative, and dedicated manners. - Seek to pioneer in the toughest task with a can-do-spirit.  Innovation Innovation is the key to sustainable development in any organization. - Do not become arrogant with past glories. Ready to learn, ready to listen, ready to apply something new and acquire new knowledge, experience, as well as expertise. - Innovate continuously in order to leverage benefits for the organization.  Creativity Creativity is the essence to make a difference and stands out from the crow. - Meeting customer expectations is the directive of the creativity. - Each individual and organization commits to empower creativity without fails, combining this merit with the working spirit, sense of responsibility, and passion to create new products and features that truly excel. Page | 11 BUSINESS RESEARCH METHODS | LE NGOC QUYNH NHU 1.1.1 Organizational Structure 1.1.2 Organizational Culture The culture of PNJ is encapsulated in the phrase "PNJ’s common roof". The "Common roof PNJ" is built successfully thanks to the specific identity, a key factor and especially is the core values which were forged in the journey over 25 years of PNJ, namely: Responsibility, Honesty, Quality, Innovation and Creativity. The five values are the foundation that makes PNJ people, PNJ strength, PNJ spirit, become compass direction in every PNJ’s developing decision, in each specific plan and help each individual and collective behavior have unified, standards of work and life. PNJ’s culture has an important contribution to create the position of company. Making competitive advantages, help the team grow stronger and attract more Page | 12 BUSINESS RESEARCH METHODS | LE NGOC QUYNH NHU talent, gathering employee that makes as the foundation and confidence for the sustainable development of PNJ. 1.2 Research Problem Statement It can be seen that, to maintain the number one position in the gold industry, aside from having unique business strategies, creative designs, and fashionable style… the contribution of over 1,000 employees to PNJ’s success is not small. Human resource is an invaluable asset of the company and should always be invested and grow. Employees need to diversify the work to improve their skills and create something new for not only the company but also their personal. However, investing in people is an issue that PNJ has faced. Most employees are not eager to change their work because of the following reasons: - They do not like the new procedure at work. - They do not want to change their usual work. - Their current work load is too much. - They do not have enough time to handle new work. - They cannot see the value and the goal of new work. - The new job is not set clear plan and structure which made employee afraid to take on. 1.3 Purpose Of The Research The purpose of this study is investigating the relationship between career satisfactions, work – related expectancies, supervisory support, perceived organizational support and taking charge among employees at PNJ. It is expected that regarding with the result, the PNJ’s management can find out what is the strong and the weak factors which affect the employee’s taking charge behavior. Once the issue is identified specifically, it will be easier to improve at PNJ Company. Page | 13 BUSINESS RESEARCH METHODS | LE NGOC QUYNH NHU 1.4 Scope Of The Research The research was conducted on 274 employees who are working at PNJ’s Headquarter. The survey was sent to 320 employees personally for 2 weeks in July 2015. Only 307 surveys were returned in which 274 were used. The rest 33 questionnaires were not completed and duplicated respond which could not be used to conduct the research. 1.5 Significant Of The Research There are a lot of factors that affect the taking charge behavior. However, the aim of this study is to clarify the influence of career satisfaction, work – related expectancies, supervisory support, and perceived organizational support on the employee’s taking charge behavior of PNJ. It would be provided the specific and more comprehensive for the management about the problem that company has been faced. This helps the company not only improve the working environment but also support and motivate the employees. Understanding the relationship between these factors, PNJ not only fix the problem but also to leverage on that to create opportunities and power for itself. 1.6 Limitation Of The Research Aside from the advantage and effort to make this study more realistic and perfect, there also some limitation that restrict the outcome. It should be some certain reasons that make the staff are not provide the real information about this concern. In addition, the survey was conducted in short time that leads the employees do not think carefully about the responds. They just stick the answers automatically that causes the findings are incorrect and unreliable. Page | 14 BUSINESS RESEARCH METHODS | LE NGOC QUYNH NHU CHAPTER II: LITERATURE REVIEW 2.1 Taking Charge Taking charge entails voluntary and constructive efforts, by individual employees, to affected organizationally functional change with respect to how work is executed within the contexts of their jobs, work units, or organizations. It is similar to other forms of extra role behaviors in that it is discretionary (that is, not formally required). Unlike other forms of extra role behavior that has been assessed, however taking charge is inherently change-oriented and aimed at improvement. It fits within the general class of extra role behaviors that Van Dyne, Cummings, and Parks (1995) referred to as “challenging-promote”. In addition, Morrison and Phelps (1999) introduced the "taking charge" construct to capture the idea that organizations need employees who are willing to challenge the status quo to bring about constructive change. Taking charge is defined as constructive efforts by employees to effect functional change with respect to how work is executed. At its essence, taking charge is change-oriented and geared toward improvement. Taking charge builds on the premise that OCB and extra – role behaviors among employees are beneficial for organization (Organ, 1990; Organ & Ryan, 1995), yet are insufficient to bring out important organizational changes. Morrison and Phelps define taking charge as “voluntary and constructive efforts, by individual employees, to effect organizationally functional change with respect to how work is executed within the contexts of their job, work units, or organizations” (1999: 403). They further characterize taking charge as being discretionary, and specifically oriented toward improving the organization. This definition, because of its change orientation, clearly distinguishes taking charge behavior from other in – role behaviors and extra – role behaviors that reinforce status quo processes. It is also characterized as a situation – specific behavior, rather than purely an individual disposition. As such, this construct definition is the most consistent with the Page | 15 BUSINESS RESEARCH METHODS | LE NGOC QUYNH NHU individual innovation effort construct, and is the basis for the measurement items used in this study. According to Graham (1986) and Miceli & Near (1992), taking charge also differs from other change-oriented behaviors such as principled dissent and whistleblowing. In general, taking charge can be understood that entails any discretionary behavior intended to effect organizationally functional change with respect to how work is executed within the context of one’s job, work unit, or organization, and which is executed through organizationally-sanctioned means. Evidence from a variety of sources highlights the potential value of taking charge. In their work on socialization, Van Maanen and Schein (1979) argued for the importance of role innovation, where new employees reject and redefine aspects of their work roles. Similarly, Staw and Boettger (1990) highlighted the importance of what they called task revision, where employees take action to correct a faulty task or misdirected work role. As they pointed out, an employee who goes beyond the call of duty to accomplish an incorrectly specified role maybe highly dysfunctional for an organization. Research on organizational innovation also highlights the potential benefits of employee initiated change for long – term organizational adaptability. In their work on issue selling, Ashford, Rothbard, Piderit, and Dutton (in press) argued that actions of top management provide clues that employees use to predict management’s likely response to risky initiatives. If employees perceive that management will respond to taking charge favorably (or at least not negatively), they may feel more confident that they can bring about change successfully and be less concerned about political risk. Hence, they will be more likely to initiate change. Workgroup norms that support and encourage change will also motivate employees to take charge. When there are clear group norms, individuals have guidance as to which types of behavior are considered appropriate and inappropriate Page | 16 BUSINESS RESEARCH METHODS | LE NGOC QUYNH NHU by their peers. Most individuals attach positive value to meeting the behavioral expectations of the group and try to meet those expectations (Ajzen & Fishbein, 1980). Norms also affect expectations about outcomes. If workgroup norms support change, individuals will tend to perceive that taking charge entails fewer risks. 2.2 Career Satisfaction Career satisfaction has been linked to several important organizational outcomes, such as organizational commitment (e.g., Carson, Carson, Phillips, & Roe, 1996; Igbaria, 1991), intentions to leave, or “turnover intentions” (e.g.,Igbaria, 1991), and support for organizational change (Gaertner, 1989). In the view of Greenhaus, Parasuraman, & Wormley (1990), career satisfaction is the satisfaction that individuals derive from the intrinsic and extrinsic aspects of their careers, including pay, advancement, and developmental opportunities. Jen-Ruei Fu (2010) defined career satisfaction as the level of overall happiness experienced through one's choice of career. Employees’ career satisfaction reflects how they feel about their career-related roles, accomplishments and success. Barnett & Bradley (2007) stated that significant predictors of career satisfaction include goal-specific environmental support and resources which provide social and material support for an employee’s personal goals. Career satisfaction measures the extent to which individuals believe their career progress is consistent with their own goals, values and preferences (Erdogan, Kraimer, & Liden, 2004; Heslin, 2003; Seibert & Kraimer, 2001). 2.3 Work – Related Expectancies Vroom (1964) stated that expectancy theory could explain the work-related variables of occupational preference, morale, need achievement, group cohesiveness, and motivation for effective performance. Expectancy theory focuses on the proposition that work-related behavior can be predicted if the subjective Page | 17 BUSINESS RESEARCH METHODS | LE NGOC QUYNH NHU probabilities of outcomes and anticipated value of outcomes to individual are known. According to Lawler (1973), individual characteristics and learning play an important role in the formulation of an individual's perceived work-related expectancies. Employees believe that higher levels of job performance will be rewarded and employee expectancies about the relationship of better performance with increased pay, promotion, and job security. It also assesses employee expectancies that better performance will lead to increased influence, supervisory approval, and recognition (Eisenberger, Fasolo, and Davis-LaMastro.,1990). The Expectancy Theory of Motivation is best described as a process theory. It provides an explanation of why individuals choose one behavioral option over others. "The basic idea behind the theory is that people will be motivated because they believe that their decision will lead to their desired outcome" (Redmond, 2009). "Expectancy theory proposes that work motivation is dependent upon the perceived association between performance and outcomes and individuals modify their behavior based on their calculation of anticipated outcomes" (Chen & Fang, 2008). This has a practical and positive benefit of improving motivation because it can, and has, helped leaders create motivational programs in the workplace. "This theory is built upon the idea that motivation comes from a person believing they will get what they want in the form of performance or rewards. Although the theory is not "all inclusive" of individual motivation factors, it provides leaders with a foundation on which to build a better understanding of ways to motivate subordinates" (AETC, 2008). Expectancy theory is classified as a process theory of motivation because it emphasizes individual perceptions of the environment and subsequent interactions arising as a consequence of personal expectations. The theory states that individuals have different sets of goals and can be motivated if they believe that: Page | 18 BUSINESS RESEARCH METHODS | LE NGOC QUYNH NHU - There is a positive correlation between efforts and performance. - Favorable performance will result in a desirable reward. - The reward will satisfy an important need. The desire to satisfy the need is strong enough to make the effort worthwhile (Lawler, Porter. L., Vroom, 2009). House iand Dessier (1973) stated that four classes of variables may impact on any individual's expectancy perception: - Leader behavior, concerning the function of the leader in clarifying expectations, guiding, supporting and rewarding subordinates; - Individual characteristics, relating to the subjects' perceptions of their abilities with respect to performing their assigned tasks; - Nature of the task, concerning whether the individual receives the necessary cues, reinforcements, and rewards directly from the accomplishment of his task; and (d) the practices of the organization, relating to the reward system, control system, rules, and constraints associated with the general functioning of the organization. 2.4 Supervisory Support Supervisor support is defined as employees’ belief concerning the extent to which supervisors value their contributions and care about their well-being. Employees need motivation to expend greater efforts and more personal resources in innovative tasks when supervisor exhibit their individual consideration toward followers, followers are likely to perceive the warmth and consideration from their supervisors. Similarly, employees who perceive support from their supervisors often feel obligated to pay back supervisors’ favors or kindness by helping supervisors to reach their stated goals (Eisenberger et al. 2002). Jung et al. (2003) indicated that leadership is positively associated with employee-perceived empowerment and support for innovation. Creativity and Page | 19 BUSINESS RESEARCH METHODS | LE NGOC QUYNH NHU innovation is an area where supervisors can have a strong impact on employee creativity through their influence on the context within which employees work (Shalley and Gilson, 2004). In order for innovative behavior to occur, supervisor needs to foster, encourage, and support creativity (Shalley and Gilson, 2004). Oldham and Cummings (1996) found that supportive, non-controlling supervisors created a work environment that fostered creativity. Just as employees form global perceptions concerning their valuation by the organization, they develop general views concerning the degree to which supervisors value their contributions and care about their well-being (perceived supervisor support, or PSS; Kottke & Sharafinski, 1988). Because supervisors act as agents of the organization, who have responsibility for directing and evaluating subordinates’ performance, employees would view their supervisor’s favorable or unfavorable orientation toward them as indicative of the organization’s support (Eisenberger et al., 1986; Levinson, 1965). Additionally, employees understand that supervisors’ evaluations of subordinates are often conveyed to upper management and influence upper management’s views, further contributing to employees’ association of supervisor support with perceived organizational support. Supervisors are perceived as representatives of the organization, and have responsibility to direct and evaluate performance of subordinates, employees would view their supervisor’s encouraging or critical orientation toward them as indicative of the organization’s support (Eisenberger, Huntington &Huchison, 1986; Levinson, 1965; as cited in Eisenberger, Stinglehaumber, Vandenberghe, Sucharski& Rhoades, 2002). It indicates to the beliefs of the employees about the extent to which their supervisors care for their well-being (Eisenberger et al., 2002). 2.5 Perceived Organizational Support Organizational support theory (Eisenberger, Cummings, Armeli, & Lynch, 1997; Eisenberger, Huntington, Hutchison, & Sowa, 1986; Rhoades & Eisenberger, in press; Shore & Shore, 1995) supposes that to meet socioemotional needs and to Page | 20
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