RESEARCH PROJECT
(BMBR5103)
THE FACTORS THAT AFFECT ORGANIZATIONAL
CITIZENSHIP BEHAVIORS AT THE VIETNAM
INTERNATIONAL COMMERCIAL JOINT STOCK BANK
STUDENT’S FULL NAME
:
VU DUC THINH
STUDENT ID
:
CGS00018262
INTAKE
:
MAY 2014
ADVISOR’S NAME & TITLE
:
DR. NGUYEN THE KHAI (DBA)
AUGUST, 2015
Business Research Methods
DR. NGUYEN THE KHAI
ADVISOR’S ASSESSMENT
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TABLE OF CONTENTS
ABSTRACT .................................................................................................................... 1
ACKNOWLEDGEMENT ............................................................................................. 2
LIST OF TABLES ......................................................................................................... 3
LIST OF CONFIGURES .............................................................................................. 4
ABBREVIATION .......................................................................................................... 4
CHAPTER I: INTRODUCTION ................................................................................. 5
PART A – RESEARCH INTRODUCTION ................................................................ 5
1.1
Research Problem Statement: ................................................................................ 5
1.2
Significance of Research........................................................................................ 6
1.3
Scope of the Research ............................................................................................ 7
1.4
Purpose of the Research ......................................................................................... 7
1.5
Research Methodology .......................................................................................... 7
1.5.1. Primary data ........................................................................................................... 7
1.5.2 Secondary data ........................................................................................................ 8
1.6
The Structure of the Research ................................................................................ 8
PART B – OVER VIEW OF THE VIB ........................................................................... 9
Product and Brand Name ............................................................................................... 10
Business Objective ......................................................................................................... 12
Human Resources Management ..................................................................................... 14
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CHAPTER II: LITERATURE REVIEW AND HYPOTHESES ............................ 17
2.1
Organizational Citizenship Behaviors (OCB) ..................................................... 17
2.2 Organizational commitment (OC) ........................................................................... 22
2.3 Job demands and Decision latitude (JD) .................................................................. 24
2.4 Person-Organization Fit (POF) ................................................................................ 26
2.5 Job Satisfaction relative to expectations (JS) ........................................................... 27
2.6 The relationship between OC and OCB ................................................................... 28
2.7 The relationship of JD and OCB .............................................................................. 29
2.8 The relationship POF and OCB ............................................................................... 30
2.9 The Relationship of JS and OCB ............................................................................. 32
CHAPTER III: RESEARCH METHODOLOGY .................................................... 34
3.1 Research Model:....................................................................................................... 34
3.2 Survey Process ......................................................................................................... 35
3.2.1
Primary data ...................................................................................................... 35
3.2.2
Secondary data .................................................................................................. 36
3.2.3 Survey process ...................................................................................................... 36
3.3 Measure of each Construct ....................................................................................... 38
3.3.1 Organizational Citizenship Behaviors .................................................................. 38
3.3.2 Person-Organization Fit ........................................................................................ 39
3.3.3 Job demands and Decision latitude ....................................................................... 40
3.3.4 Organizational Commitment ................................................................................. 41
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3.3.5 Job satisfaction relative to expectations ................................................................ 42
CHAPTER IV: ANALYSIS AND RESULTS ........................................................... 43
4.1 Overview of respondents’ information .................................................................... 43
4.2 Reliability Statistics ................................................................................................. 46
4.3 Descriptive Statistics ................................................................................................ 48
4.4
Hypotheses Testing Results: ................................................................................ 49
4.4.1 Hypothesis proposed (H1)..................................................................................... 50
4.4.2 Hypothesis proposed (H2)..................................................................................... 51
4.4.3 Hypothesis proposed (H3)..................................................................................... 51
4.4.4
Hypothesis proposed (H4) ................................................................................ 51
5.1 Summary of the Results: .......................................................................................... 53
5.2 Discussion and Recommendation. ........................................................................... 54
5.3 Limitation and Future Research ............................................................................... 55
REFERENCES ............................................................................................................. 56
APPENDIX 1 - QUESTIONNAIRES ........................................................................ 61
APPENDIX II - PRESENTATION SLIDES ............................................................. 67
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ABSTRACT
Organization citizenship behaviors (OCB) are individual and voluntary behaviors
that are not stated directly by formal system. They make increase in effectiveness
and efficiency of organizational performance.
The quality of human resource, one of the basic and important elements, is
indispensable for every business in general and banks in particular during the
existence and development. After stage spike when the number of banks in Vietnam
was established new and expanded operations phase from 2000 to 2012, due to the
impact of the financial crisis and restructuring, system banks have tended to
transform descending towards decreasing the quantity and increasing the quality.
But besides the formed standards for the employees, the other factors that is not
stated that affecting this, it is called the Organization citizenship behaviors.
This study examines the structure of OCB and its relation to Organizational
commitment (OC), Job satisfaction relative to expectations (JS), Job demands and
Decision latitude (JD), Person-Organization Fit (POF) at VIB. Data was collected
through the use of standardized questionnaires. Two-hundred and ninety seven
employees of VIB filled out standardized questionnaires. The collected data were
computed and analyzed through factor analysis, Cronbach’s alpha, descriptive
statistics, multiple regression analysis. Based on results analysis, researcher makes
some suggestions to the managers of VIB to improve VIB’s performance.
Key words: Organizational citizenship behaviors, Organizational commitment, Job
satisfaction relative to expectations, Job demands and decision latitude, PersonOrganization Fit.
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ACKNOWLEDGEMENT
I would like to express my deepest gratitude to my research Instructor, Professor
Khai Nguyen The for his intensive support, valuable suggestions, guidance and
encouragement during the course of my study.
I would like to express my sincere gratitude to all great lecturers at the MBA
program for an enjoyable learning experience that has increased my knowledge.
I would like to specially express my thanks to all of my classmates, my friends for
their support and encouragement.
I would like to express my thanks to all my colleagues at VIB who are willing to
join and complete my survey in this work in valuable way or another..
Finally, I heartily dedicate this study to my beloved parents and my wife, who have
always sacrificed to encourage and support me during my study.
August, 2015
VU DUC THINH
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LIST OF TABLES
Table 4.1: Result of Survey.......................................................................................43
Table 4.2: Sample Description ..................................................................................45
Table 4.3: Reliability Test for employees of VIB - OC ............................................46
Table 4.4: Reliability Test for employees of VIB - JD .............................................47
Table 4.5: Reliability Test for employees of VIB - POF ..........................................47
Table 4.6: Reliability Test for employees of VIB - JS..............................................47
Table 4.7: Reliability Test for employees of VIB - OCB .........................................47
Table 4.8: Descriptive Statistics ................................................................................48
Table 4.9: Variables Entered/Removeda ...................................................................49
Table 4.10: Model Summary.....................................................................................50
Table 4.11: Coefficientsa ...........................................................................................50
Table 4.12: hypothesis result.....................................................................................52
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LIST OF CONFIGURES
Figure 1.1 : Human resource manager system of VIB ..............................................13
Figure 1.2 : Personel Structure (Source : VIB – Annual Report 2014) ...................16
Figure 3.1 : the proposed research model of the factors affect the Organizational
Citizenship Behaviors of the employees at VIB. ......................................................34
ABBREVIATION
OCB
Organizational Citizenship Behavior
OC
Organizational commitment
JS
Job satisfaction relative to expectations
JD
Job demands and Decision latitude
POF
Person-Organization Fit
VIB
The Vietnam International Commercial Joint Stock Bank
SPSS
Statistical Package for Social Science
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CHAPTER I: INTRODUCTION
The first chapter will introduce basic of the research : Research Problem Statement,
Purpose of the Research, Scope of the Research, Significance of the Research,
Research Methodology, and Structure of this Research. The final of the chapter will
supply briefly information of Vietnam International Commercial Joint Stock Bank
(VIB).
PART A – RESEARCH INTRODUCTION
1.1 Research Problem Statement:
A bank is a financial institution offering deposits subject to withdrawal on demand
and providing loans to the retails or corporate sector. The role of bank is more and
more important in the world as well as Vietnam nowadays and there are a lot of
students want to develop his knowledge in banking services, including the
Organizational Citizenship Behavior in banking.
Organization citizenship behaviors (OCB) are individual and voluntary behaviors
that are not stated directly by formal system. The reason of researching OCB is that
every organization, in order to sustain competition and long-term profitability,
businesses, devotes themselves not only to attracting new customers but also to
retaining existing customers (Yang, 2005). Several studies have demonstrated that
OCB makes increase in effectiveness and efficiency of organizational performance.
Therefore, improving the employees’ OCB is a critical issue for business managers
in today’s competitive global marketplace). Ensuring excellent service quality and
high customer satisfaction is an important issue and a challenge for the service
industry (Hung et al., 2003).
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However, until now most of local commercial banks in Vietnam do not take into
account the importance of OCB. The evidences are that there are very rare of
researches and journals about the relationship between OCB and customer
satisfaction and long term development of the company especially of the bank.
Furthermore, with the increasing shortage of talented workers, labor turnover in
Vietnamese banking services has now become a major issue. According to Dutta et
al (2007), the turnover rate in banking service is significantly high, 20%-30%
professionals. Therefore, the research lays its focus on the topic “The factors
affecting the Organizational Citizenship Behavior in Vietnam International
Commercial Joint Stock Bank”.
There is a tendency of human resource in banking at the present is moving on the
bank stability and tend to thrive in the future. And The Vietnam International
Commercial Joint Stock Bank (VIB) is one of them with staff increasing from the
other banks and even from former employees have left the VIB also returned.
With the strategy of sustained growth and enhanced safety, VIB is also the only
bank to be held credit ratings international Moody's upgrades, becoming 1 of 2 bank
index financial strength highest of 9 major banks in Vietnam is Moody's assessment
of the past year. This is also one of the first 10 bank was chosen by The State Bank
of Vietnam to pilot Basel II standards in bank management. The researcher make a
question: ―What make the bank is better?‖ and in the answer of the researcher, one
of the factors is the increasing of employees’ Organizational Citizenship Behavior.
1.2 Significance of Research
This research is conducted with the aim to have an understanding of the factors
influencing Organizational Citizenship Behaviors at VIB. The result of the Research
will give the data for the Board of Director and Human Resources Department make
decision to let VIB employees more effective.
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1.3 Scope of the Research
Due to knowledge and time limitations this dissertation can only focus on the
employees’ Organizational Citizenship Behaviors in VIB.
1.4 Purpose of the Research
The purpose of this Research is to examine the relationships between
Organizational Citizenship Behaviors with Job satisfaction relative to expectations,
Organizational commitment, Job demands and Decision latitude and Person Organization fit of employees of VIB.
The research will answer these questions:
1. What are the relevant theories of Organizational Citizenship Behaviors in
working environment?
2. What is the current status of employees’ satisfaction in VIB?
3. What are the recommendations to improve the employees’ Organizational
Citizenship Behaviors in VIB?
1.5 Research Methodology
The research has conducted qualitative and quantitative approaches on both of
primary and secondary data.
1.5.1. Primary data
The primary data used in the research is a questionnaires survey. The questionnaires
is provided to the author’s colleagues who currently work at VIB. The author
believed the reliable of answer is sufficient due to the following reasons:
Each question was designed to focus on single issues. The question format is
clear and simple;
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The sample size is 380 employees in different departments in VIB to make
sure the answer of each candidate are not affected by others.
Before performing the survey, the author designed cross-check questions
with a group of voluntary people to make sure the questionnaires are very
clear to understand.
Once the data is collected, there are several techniques can be applied to analyze the
data. The most common technique is descriptive data analysis such as charts, tables
and mean value. The author also applies the inferential data analysis that uses
information obtained from a small group to make judgment about larger group. In
the research, the sample interview may not reflect the sense of VIB bank system. By
conducting judgment-based approach such as the real situation of human resource
management, the author can assess the relationship between the sample answer and
the whole system.
1.5.2 Secondary data
The secondary data is documents related to Organizational Citizenship Behaviors in
banking industry and other published materials that are taken from Internet such as
websites, e-books and other in libraries or newspapers. All these sources are
authentic and will be listed out in the reference section.
1.6 The Structure of the Research
The research contains five chapters as described below:
Chapter I - Introduction
This chapter explains the reason of choosing the title, and briefly explains the
problem and objectives of the research. The scope and data collection methods of
the research are also presented in this part.
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Chapter II - Literature reviews and Hypothesis
This chapter presents the relevant concepts used as foundation for analysis,
suggestions and solutions in this research. It includes the relationship of
Organizational Citizenship Behaviors and Job satisfaction relative to expectations,
Organizational commitment, Job demands and Decision latitude and Person Organization fit. From that, the author give the hypothesis.
Chapter III - Research methodology
This chapter is set to provide the research model, the methodology used and how
the author processes the data received from survey.
Chapter IV - Research analysis and results
This part defines and analyzes the table of questionnaires achieved from survey
with employees at VIB.
Chapter V: Discussion and conclusions
This part recommends the most suitable solutions and conclusion conducted from
analyses from previous chapters.
PART B – OVER VIEW OF THE VIB
Vietnam International Commercial Joint Stock Bank, abbreviated Vietnam
International Bank (VIB), was founded on 18th September 1996. After 19 years of
operation, VIB has become one of the leading commercial joint stock banks in
Vietnam, with total assets of nearly VND 80,000 billion. The bank’s charter capital
is now VND 4,250 billion while its shareholders’ equity is nearly VND 8,200
billion. Currently, VIB has approximate 4,000 people working at nearly 160
branches and transaction offices in 27 key provinces/ cities across the country.
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2010 marked a significant development milestone of VIB by a strategic partnership
with the Commonwealth Bank of Australia (CBA) – the Number One retail bank in
Australia and the world’s leading bank with over 100 years of experience. This
strategic partnership facilitates VIB’s improvement in capital, technology, and risk
management… in order to successfully implement the long-term plans in the bank’s
business strategy and especially to improve the customer service quality in line with
international standards.
Being one of the pioneers in reforming business activities, VIB always takes its
customers as the focus and its service quality and innovative solutions as the
business motto, with the determination ―to be the most innovative and customercentric bank of Vietnam‖. Since its foundation, one of the missions defined by the
bank’s leaders is to be ―excellent in providing innovative solutions to satisfy
customers’ maximum needs‖. Therefore, VIB has been enhancing its efficiency in
the use of capital and management capacity and continuing to focus on the
development of retail banking networks and new products through diversifying
distribution channels in order to provide financial solution packages to focused
customer groups, and simultaneously improving the service quality to increasingly
better serve customers.
Product and Brand Name
Product:
The principal activities of the Bank are to mobilise and receive short, medium and
long-term deposit funds from organizations and individuals; to lend on a short,
medium and long-term basis up to the nature and ability of the Bank’s capital
resources; to conduct settlement and cash services and other banking services as
approved by the SBV; to conduct investments in associates, joint-ventures and other
companies; investments in bonds and deal in foreign exchange in accordance with
applicable regulations.
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Brand name:
Brand positioning statement
VIB is one of Vietnam’s top joint stock commercial banks that always put its
customers’ needs first. Professional staff build lasting relationships by listening to
customers and working with them in a thoughtful, open and collaborative manner.
Our deep understanding of local, needs, global perspective and commitment to
simplifying the banking experience enable us to help our customers plan their
future, achieve their dreams and focus on the more important things in life.
VIB’s logo
Our logo is formed by 3 letter V’s representing the connections, resources and
relationships we offer our customers and partners. In the center of the three V’s,
there is a heart image indicating that customers are always in the heart of VIB.
Emotionally, the three V’s forms a human shape with welcoming arms, symbolizing
the human spirit, and expressing the concept "Human Connection" in VIB’s brand.
The word ―VIB‖ is designed with a curved, slender shape, and the stylized ―V
represents a smile to welcome our customers. The blue and three shades of warm,
energetic orange colour creates an open space, bringing the sense of an open, easily
accessible, friendly and cooperative environment.
Brand personality attributes:
Genuine: We earn our customers' respect by acting with integrity,
professionalism and sincerity.
Nurturing: We take a long term view and help our customers grow and
succeed.
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Modern: We seek and leverage on the best banking practices and advanced
technologies.
Performance oriented: We are committed to going the extra mile and
delivering results.
Intuitive: We stay in tune with the changing needs of our customers and
adapt accordingly with new products and services.
Business Objective
Vision:
To be the most innovative and customer-centric bank of Vietnam.
Mission:
For customers: To excel in providing innovative, customer-centric solutions
to satisfy the needs of our customers.
For employees: To cultivate a high performance culture, entrepreneurship
and openness in our work environment.
For shareholders: To provide sustainable and attractive returns to our
shareholders.
For the community: To support community development
Core values:
Customers focus
Excellence
Honestly
Teamwork
Disciplined
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Rewards
Fastest growing Retail Bank Vietnam 2015 and Best Banking Deal Vietnam
2015 – Global Banking and Finance Review
Leading SME Trade Bank – Asian Development bank (ADB)
Excellent Brand of Vietnam 2014 – Vietnam Economic Times and Trade
Promotion Agency (Ministry of Industry and Trade)
Organization Structure
Figure 1.1 : Human resource manager system of VIB
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Human Resources Management
At the end of 2012, VIB initiated the transition from a HRM model by geographic
area to a centralized system headquartered at Head office, in which all HR function
are managed by Head office HR staff. A HR partnership model for business units
was also introduced.
After two years of implementation, the productivity of HR employees have been
markedly improved: total HR staff was gradually trimmed down from 93 (2012) to
65 2013) and 40 (2014), increasing the average number of staff portfolio managed
by on HR staff by 31% (from 65 in 2012 and 85 in 2014). HR staff receive frequent
training, and are provided ample opportunities for occupational development
through various HRM tasks. The quality of services provided to in-house clients
have therefore continually improved: faster, more consistent, and suited to the
realities of each Divisions.
VIB has identified staff fraud and corruption as a serious operational risk. In
addition to financial losses, staff fraud is almost certainly creating significant brand
and reputation damage for VIB.
This situation calls for a comprehensive and BOD-sponsored anti-fraud and
corruption program. Therefore, the motivation of this project is to set up the
foundation to fight fraud and corruption within VIB, reducing our losses to fraud
and corruption, improving the working culture of VIB, and developing our brand on
honesty and integrity.
VIB develops the foundation for preventing, detecting, investigating and
disciplining cases of Fraud and Corruption, including:
-
Anti-Fraud and Corruption Policy
-
Internal Fraud and Group Investigation Unit
-
Gifts and Entertainment Policy
-
Whistleblower Policy and Process
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Internal Investigation Process
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Discipline Policy and Process
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Training and Communications
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Fraud Risk Assessments of all business areas
Personnel structure
At the end of 2014, VIB has 3,436 employees (As Annual Report 2014)
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