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The impact of perceived organizational support on job performance, the medication of job engagement a study of commercial banks in vietnam (luận văn thạc sĩ)

MINISTRY OF EDUCATION AND TRAINING
UNIVERSITY OF ECONOMICS HO CHI MINH CITY

NGÔ VĂN QUẰN

The Impact of Perceived Organizational Support on
Job Performance, the Mediation of Job Engagement.
A Study of Commercial Banks in Viet Nam.

MASTER OF BUSINESS ADMINISTRATION

Ho Chi Minh City, 2012


MINISTRY OF EDUCATION AND TRAINING
UNIVERSITY OF ECONOMICS HO CHI MINH CITY

NGÔ VĂN QUẰN

The Impact of Perceived Organizational Support on
Job Performance, the Mediation of Job Engagement.

A Study of Commercial Banks in Viet Nam.
MAJOR: BUSINESS ADMINISTRATION
Code: 60.34.01.02

MASTER THESIS
Supervisor: Dr. PHẠM QUỐC HÙNG

Ho Chi Minh City, 2012


ACKNOWLEGEMENT

First, I would like to thank to our supervisor of this study, PhD. Pham Quoc Hung for his
valuable guidance and advice. He inspired me greatly to work in this study. His
willingness to motivate me contributed tremendously to my study. I also would like to
thank him for providing me valuable documents, information as the guidance of my
study. Besides, I would like to thank all teachers of the Ho Chi Minh City of Economics
(EUH) for providing me and student like us with a valuable knowledge, good
environment and facilities to complete our researches. I also would like to thank Mr.
Nhat Truong, from The Poly-Technique University Ho Chi Minh City for supporting me
to analyze the research data by using Amos with statistical technique SEM. My thanks
and appreciations also go to my colleague in developing the project and people who have
willingly helped me with their abilities. Finally, I would like to express my gratitude and
thanks towards my parents, sistsers, friends for their understanding, kind co-operation
and encouragement which help me in completion of MBA programe and this study, for
their support in giving me such attention and time. Without helps of the particular that
mentioned above, I would face many difficulties while doing this study.


INDEX
Page
CHAPTER 1: INTRODUCTION...........................................................................1
1.1. Executive abstract ...............................................................................................1
1.2. Purpose of the study............................................................................................2
1.3. Questions of the study.........................................................................................3
1.4. Scope of the study ..............................................................................................3
1.5. Framework of the study ......................................................................................4
CHAPTER 2: LITERATURE REVIEW...............................................................4
2.1. Perceived organizational support (POS) ............................................................5
2.2. Job engagement...................................................................................................6

- Physical engagement (PE) ................................................................................6
- Emotional engagement (EE).............................................................................6
- Cognitive engagement (CE) .............................................................................8
2.3. Job performance (JB) ..........................................................................................8
2.4. Related theories and antecedent researches .....................................................10
2.5. Hypothesis development ...................................................................................16
* Research model .............................................................................................18
CHAPTER 3. RESEARCH METHODOLOGY.................................................18
3.1. Research design ...............................................................................................19
3.2 Questionnaire development..............................................................................20
3.3. Translation of the questionnaires ....................................................................22
3.4. Variable control ...............................................................................................23


3.5. The pilot study ................................................................................................24
3.6. Target population .............................................................................................25
3.7. Sample size .....................................................................................................26
3.8. Selecting the sample and collecting data .........................................................26
3.9. Methods of data analysis .................................................................................28
3.9.1. Data Screening ......................................................................................28
3.9.2. Normal Distribution Examining ............................................................28
3.9.3. Reliability .............................................................................................28
3.9.4. Confirmatory factor analysis (CFA) & Structural equation modeling
(SEM) ....................................................................................................28
CHAPTER 4: RESULT OF DATA ANALYSIS ................................................37
4.1. Descriptive statistics .........................................................................................37
4.2. Normal Distribution Examining........................................................................41
4.3. Reliability .........................................................................................................42
4.4. Confirmatory factor analysis (CFA) ................................................................45
4.5. Structural equation modeling (SEM) ................................................................49
4.6. Sumary of model test .......................................................................................55
CHAPTER 5: CONCLUSIONS AND RECOMMENDATIONS......................57
5.1 Summary of all hypotheses ...............................................................................57
5.2 Conclusions and implications ......................................................................58
5.3. Limitations and recommendations ...................................................................62
CHAPTER 6: LIST OF REFERENCES ............................................................63
7. APPENDIX ........................................................................................................67


1

CHAPTER 1: INTRODUCTION
1.1. Executive abstract
In the context of the international economic tendency, WTO integration, Vietnam now
has both opportunities and challenges for organizations to raise pressure on the
competitiveness of the product, services, brand, and human resources. In particular,
human resources is considered a key advantage for organizations to develop their
businesses, it is a valuable asset to help organizations improve their competitiveness
and performance.
Currently, the reciprocity responsibility norms were popular applied in organization in
Viet Nam, however majority of organizations have not sufficiently invested interest
and improve the system of human resource management in the area of relation
between between perceived organizational support and job performance. Due to this
reason, there remain areas that both employers and employees do not have in common.
As a result, the consequence of this shortcoming in HR Management, to some extent,
has caused employees were not motivated to compensate beneficial treatment and the
organizations did not obtain expected business outcome.
According to previous studies such as studies of (Pfeffer J. 1998); (Huselid, MA
1995), (Guest 1997), (D. Hartog and RM Verburg. 2004), (Singh K. 2004), human
resource practices have important influence on the performance of the business. By
studying factors contributing to the effective human resource management, it proves
that preceived organizational support (POS) takes an important position in this area.
POS contributes to increase employees’ performance (POS) to help organizations
reach their objectives. The behavioral outcomes of POS mentioned herewith include
increases, decrease in role and Job performance.
The study of effective Human resource (HR) management, specifically relationship
between perceived organizational support (POS) and job performance also measures of
man-power resource to achieve set targets of organizations; help managers with
solutions to encourage and motivate employees to work effectively in conditions of
tight labour market, where changing knowledge management practices and global
convergence of technology has redefined the nature of work, and in the context of
limited talent resources in manpower market.


2
By studying the impact of Perceived Organizational Support on Job Performance it has
been seen that there are mediation factors also contribute to establishing relation
between Perceived Organizational Support on Job Performance. Following Kahn
(1990) people employ and express themselves physically, cognitively, emotionally and
mentally during role performances”. By This reason this study also analyzes related
mediation factors to support to the relation of Perceived Organizational Support on Job
Performance.
As we know that there is little theory or empirical observation accounts for the role of
perceived organizational support, engagement as a means through which organizations
can create competitive advantage. In particular, not many researches examine the role
of engagement as mechanism that links employee characteristic and organizational
factors to job performance. This can be explained why the situation is the same in Viet
Nam, not many research and specific study on the Perceived Organizational Support
and Job Performance. Also, almost no research and no specific study on the Perceived
Organizational Support and Job Performance in Viet Nam. The majority of
organizations in Viet Nam has not yet invested interest and improves their system of
human resource management in this specific area.
Due to this reason, the topic we choose for our thesis is studying “The Impact of
Perceived Organizational Support on Job Performance, the Mediation of Job
Engagement - A Study of Commercial Banks in Viet Nam. By this study, we will
expect to find out solution on how to improve manpower resource management in
commercial banks in Viet Nam, especially solutions relating to factors affecting the
impact of Perceived Organizational Support on Job Performance, the Mediation role of
Job Engagement in Commercial Banks in Viet Nam. For the result, the study is
expected to explain how bank community should respond to challenges of human
resource so as to get satisfactory staff’s performance and satisfactory business outcome
through the factors of Perceived Organizational Support and Job Engagement.
1.2. Purpose of the research
The purpose of this research is to study the impact of Perceived Organizational
Support on Job Performance and related mediation factors to the relation of POS–Job
Performance (JB) in commercial banks in Viet Nam, specifically:


3
- Relationship between perceived organizational support and job performance in
banks in Viet Nam.
- Investigating mediation factors that are affecting relationship between perceived
organizational support and job performance in banks in Viet Nam.
- Evaluating affect of find factors that are positively affecting job performance in
banks in Viet Nam; find factors that are positively affecting relationship between
perceived organizational support and job performance in banks in Viet Nam.
- Offer measures to improve the impact of perceived organizational support to job
performance in banks in Viet Nam, help banks to improve business performance
and enhance their ability to attract, motivating, satisfying and keep qualified
employees, encourage the employee to work in an effective way.
1.3. Questions of the research
With the above mentioned background, there arise question required to be studied so
as to have solution as follows:
1. What is the common relationship between perceived organizational support and job
performance in commercial banks in Viet Nam?
2. Which factors can be applied to improve the impact of perceived organizational
support and job performance in commercial banks in Viet Nam, which are key
factors?
3. Can the improvement of relation of perceived organizational support and job
performance promote and develop competitive advantage and performance outcome
of commercial bank in Viet Nam?
1.4. Scope of the research
Study subjects: staffs and managers of commercial banks in Vietnam.
Since HR Management is a very broad research theme, this research only focuses on
studying scientific basis to help managers understand the factors that relationship
between perceived organizational support and job performance so that they can
implement these tools in banks. This research is limited in the scope of the Impact of


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Perceived Organizational Support on Job Performance, related Mediation of Job
Engagement (PE) in commercial banks in Viet Nam
1.5. Framework of the study

Introduction
Research problem

Research questions

Research objectives

Literature review
Hypothesis

Empirical model
Data collection
Descriptive statistic
Data analysis
Conclusion, recommendation and limitation

CHAPTER 2: LITERATURE REVIEW
Chapter 2 is to review theories of Perceived Organizational Support on Job
Performance and related mediation factors to the relation of POS–Job Performance
(JB) including Physical engagement (PE), Emotional engagement (EE), Cognitive
engagement (CE), and Job performance (JB). This Chapter also presents related
theories, antecedent researches; hypothesis development and proposed research model.
Most of the research in Organizational behavior has been concerned with three
attitudes: job satisfaction, job involvement, and organizational commitment. Other
attitudes are also attracting attention from the researchers, including perceived
organizational support (POS) and employee engagement. In our research we


5
concentrate in studying the relation of organizational support, employee engagement
and job performance in the context of commercial bank in Viet Nam:
2.1. Perceived organizational Support (POS):
As one of definition, POS is the degree to which employees believe that their
organization values their contributions and cares about their well-being (Eisenberger,
Huntington & Sowa, 1986; Rhoades & Eisenberger, 2002).
POS is generally thought to be the organization’s contribution to a positive reciprocity
dynamic with employees, as employees tend to perform better to pay back POS
(Rhoades & Eisenberger, 2002). Research on perceived organizational support
observed if managers are concerned with their employees’ commitment to the
organization, employees are focused on the organization’s commitment to them. For
employees, the organization serves as an important source of socioemotional
resources, such as respect and caring; and tangible benefits, such as wages and medical
benefits. Being regarded highly by the organization helps to meet employees’ needs
for approval, esteem, and affiliation. Positive valuation by the organization also
provides an indication that increased effort will be noted and rewarded. Employees
therefore take an active interest in the regard with which they are well taken care of by
their employer.
Organizational support theory (OST: Eisenberger, Huntington, Hutchinson, & Sowa,
1986; Rhoades & Eisenberger, 2002; Shore & Shore, 1995) indicated that in order to
meet socioemotional needs and to assess the benefits of increased work effort,
employees form a general perception concerning the extent to which the organization
values their contributions and cares about their well-being. Such perceived
organizational support (POS) would increase employees’ felt obligation to help the
organization reach its objectives, their affective commitment to the organization, and
their expectation that improved performance would be rewarded. Behavioral outcomes
of POS would include increases in in-role and extra-role performance and decreases
unexpected outcome and behaviors from employees.
Although there were relatively few studies of POS until the mid 1990’s, research on
the topic has developed in the last few years. Rhoades and Eisenberger’s (2002) metaanalysis covered some 70 POS studies carried out through 1999, and over 300 studies


6
have been performed since. The meta-analysis found clear and consistent relationships
of POS with its predicted antecedents and consequences.
Recent research of David R. Hekman and colleagues (2009) found that professional
employees were more likely to reciprocate POS when they strongly identified with the
organization. Indeed, such workers' organizational identification and professional
identification combined to influence performance behaviors. The results suggested that
POS had the most positive influence on professional employees' work performance
when employees strongly identified with the organization and weakly identified with
the profession.
2.2. Job engagement (JE)
Job engagement has seen dramatic growth in research interest over the past few years.
Briefly, work engagement can be defined as a positive, fulfilling state of mind, most
commonly characterized by vigour, dedication,

and absorption (Jonathon R.B.

Halbesleben and Anthony R.Wheeler, 2008). Job embeddedness is defined as ‘‘the
combined forces that keep a person from leaving his or her job’’ (Yao, Lee, Mitchell,
Burton, & Sablynski, 2004, p. 159).
“Work engagement is defined as a positive, fulfilling, work-related state of mind that
is characterized by vigor, dedication, and absorption” (Schaufeli, Salanova, Gonza´lez
– Roma and Bakker, 2002, p. 74).
Kahn, W. A. (1990) was the first scholar to define “personal engagement” as the
harnessing of organization member’s selves to their work roles: in engagement, people
employ and express themselves physically, cognitively, emotionally and mentally
during role performances. Kahn (1900) theorized that there is a unique aspect of
human aganency that functions in a moreholictic, consistence and connected manner.
To be engage in a job not just being cognitive attentive to the job, or feeling and
expressing emotions on the job, or doing specific job tasks simply for the sack of
doing them. Instead, engagement reflects the simultaneous investment of cognitive,
emotional, and physical energies in such a way that one is actively and completely
involved in the full performance of a role.
Besides, there are others views relating to definition of work engagement, in which are
two different schools of thought as follows: on the one hand Maslach and Leiter
Maslach, C., Jackson, S.E., & Leiter, M. (1997) assume that a continuum exists with


7
burnout and engagement as two opposite poles. The second school of thought
operationalizes engagement in its own right as the positive antithesis of burnout as
stated by Bakker, A.B., Demerouti, E. (2007). According to this approach, work
engagement is defined as a positive, fulfilling, work-related state of mind that is
characterized by vigor, dedication, and absorption. Vigor is characterized by high
levels of energy and mental resilience while working, the willingness to invest effort in
one’s work, and persistence even in the face of difficulties; dedication by being
strongly involved in one's work, and experiencing a sense of significance, enthusiasm,
inspiration, pride, and challenge; and absorption by being fully concentrated and
happily engrossed in one’s work, whereby time passes quickly and one has difficulties
with detaching oneself from work.
Measures of engagement:
A measure that was constructed and validated by Schaufeli, Salanova, Gonzalez-Roma
and Bakker (2002), called the Utrecht Work Engagement scale, is often administered
to assess engagement (Salanova, Agut,& Peiro, 2005).
The first subscale, vigor, is represented by five items and reflects elevated levels of
energy, resilience, and persistence. The second subscale, dedication, is also
represented by six items and corresponds to a sense of purpose, enthusiasm,
inspiration, pride, and challenge at work. The third subscale, absorption, represents the
extent to which individuals are absorbed in their work.
Engagement measures derived from the work of Kahn
Rich, Lepine, and Crawford (2010) develop a measure of engagement that more
explicitly assesses the three dimension of engagement that were defined by Kahn
(1990, 1992): the investment of physical, emotional, and cognitive energy into the
task at work.
First, to represent physical engagement, Rich, Lepine, and Crawford (2010) adapted
items from a measure of work intensity, developed by Brown and Leigh (1996). This
subscale comprised six items, such as "I work with intensity on my job". Second, to
represent emotional engagement, a set of items were derived from a measure that was
utilized by Russell and Barrett (1999), entailing two dimensions: positive or pleasant
feelings and a sense of energy or activation. In particular, each item refers to the extent
to which individuals perceive their job as both pleasant and energizing. This subscale


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also comprised six items, such as "I am excited about my job". Third, to represent
cognitive engagement, items developed by Rothbard (2001) were adapted to assess the
degree to which individuals felt both focused as well as engrossed in their work. One
example of these six items is "At work, I am absorbed by my job".
Other measures of engagement:
Other measures of engagement comprise only one main factor. Peterson, Park, and
Seligman (2006), for example, developed a measure of engagement that primarily
seems to represent absorption. They conceptualized engagement, together with
meaning and pleasure, as the three factors that underpin happiness. Harter, Schmidt,
and Hayes (2002) developed a measure, comprising 12 items, that assesses one facet,
but defined more broadly. They defined engagement as the perception that
expectations are clear, the job is significant, colleagues are trustworthy, and the
potential to develop is strong.
Other views are also available. Following Maslach, Jackson, & Leiter (1996) if
engagement is conceptualized as the converse of burnout, the Maslach Burnout
Inventory is sometimes administered. Cf., Maslach & Leiter 1997 (2008) indicates that
low levels of exhaustion and cynicism as well as elevated levels of efficacy are
assumed to manifest engagement. Indeed, research indicates that vigor and exhaustion
seem to represent opposite poles of one dimension; similarly, dedication and cynicism
represent opposite poles of one dimension (Gonzalez-Roma, Schaufeli, Bakker, &
Lloret, 2006). The Oldenburg Burnout Inventory (Demerouti, Bakker, Nachreiner, &
Ebbinghaus, 2002) is sometimes preferred instead, because the scale includes both
positively and negatively worded items, more applicable to engagement.
Due to the importance role of job engagement, by this study we aim to prove the role
of job engagement, as a mediator (including cognitive, emotional and physical
engagement), between POS and job performance.
2.3. Job performance
Motowidlo, Borman, and Schmit (1997, p.73) stated that, “as a construct, performance
is behavior with an evaluative component, behavior that can be evaluated as positive
or negative for individual or organizational effectiveness.”


9
Following Conway, Motowidlo & Schmit (1999), Motowidlo et al. (1997), two
specific types of job performance in the form of work performance are task
performance, which relates to the pursuit of activities described in the formal job
description which bears a direct relationship to the organization’s technical core; and
contextual performance, often referred to as organizational citizenship behaviors
(OCB) and which does not contribute through the organization’s core technical
processes
Among the most commonly accepted theories of job performance comes from the
work of John P. Campbell and colleagues. Coming from a psychological perspective,
Campbell describes job performance as an individual level variable. Campbell defines
performance as behavior. It is something done by the employee. Campbell allows for
exceptions when defining performance as behavior. He clarifies that performance does
not have to be directly observable actions of an individual. It can consist of mental
productions such as answers or decisions. However, performance needs to be under the
individual's control, regardless of whether the performance of interest is mental or
behavioral.
Dennis Organ (1988) is generally considered the father of OCB (Organizational
citizenship behavior). According to Organ, OCB refers to as behaviors exhibited by
employees that are supportive, discretationary, and go beyond normal job
requirements. Organ (1988) defines OCB as “individual behavior that is discretionary,
not directly or explicitly recognized by the formal reward system, and that in the
aggregate promotes the effective functioning of the organization” (p. 4). Organ’s
definition of OCB includes three critical aspects that are central to this construct. First,
OCBs are thought of as discretionary behaviors, which are not part of the job
description, and are performed by the employee as a result of personal choice. Second,
OCBs go above and beyond that which is an enforceable requirement of the job
description.

Finally,

OCBs

contribute

positively

to

overall

organizational

effectiveness. The word discretionary, according to Organ (1988) means that behavior
is not a requirement of formal job description. OCB is a matter of individual choice
and failure to exhibit that the behavior is not generally considered as cause for penalty.
What is important is that these examples describe behaviors which are helpful to the
organization, yet they are not behaviors considered part of the core elements of the job.


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2.4. Related theories and antedent researches .
2.4.1 Relationship of POS- Job performance and role of mediators
Perceived organizational support, a concept that reflects the type of support Kahn
(1990) discussed, develops through employee interactions with organizational agents
such as supervisors and reflects employees’ beliefs concerning the extent to which
the organization they work for values their contributions and cares about their wellbeing (Eisen- berger,
perceive high

Huntington, Hutchison, & Sowa, 1986). Employees who

organizational support have

positive expectations concerning the

organization’s likely reaction to employees’ contributions as well as their mistakes,
and thus they have less reason to fear unexpected consequences for their self-images,
statuses, or careers as a result of investing themselves fully into their work roles
(Edmondson, 1999). When perceived organizational support is low, employees are
unsure of what to expect, fear that they may suffer for their personal engagement,
and choose to guard their selves by withdrawing from their roles (Kahn, 1990). This
reasoning is consistent with research showing positive relationships between
perceptions of various forms of support in an organization and conceptualizations of
job engagement similar to Kahn’s (e.g., Bakker, Demerouti, & Schaufeli, 2005;
Nembhard & Edmondson, 2006; Saks, 2006).`
Following research of Robert Eisenberger, Stephen Armeli, Barbara Rexwinkel,
Patrick D. Lynch, and Linda Rhoades, uiversity of Delaware (2001). By manage a
survey of four hundred thirteen postal employees regarding reciprocation's role in
the relationships of perceived organizational support (POS) with employees'
affective organizational commitment and job performance. The authors found that
(a) POS was positively related to employees' felt obligation to care about the
organization's welfare and to help the organization reach its objectives; (b) felt
obligation mediated the associations of POS with affective commitment,
organizational spontaneity, and in-role performance; and (c) the relationship between
POS and felt obligation increased with employees’ acceptance of the reciprocity norm
as applied to work organizations. The pattern of findings is consistent with
organizational

support

theory's

assumption

that

POS

commitment and performance by a reciprocation process.

strengthens

affective


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2.4.2 Related theories to concepts of POS, JE, JP:
Early theories of motivation, satisfaction and antecedent researches prove significant
relation among motivation with Perceived organizational support (POS), Job
engagement (JE) and Job performance (JP). Properly manipulating the tools of Job
motivation, satisfaction will help to inmprove POS, PE and JP. Research result of
Research of Bruce Louis Rich and Jeffrey A. Lepine, Eean R. Crawford (2010) showed
mediation roles of Job engaement and Job satisfaction in the relation of POS and Job
performance.
Roles of motivation, satisfaction to POS, JE, JP can be seen in the following contents:
- Motivation:
Motivation is one of the most frequently research topics in organizational behavior
(OB). Many research prove that motivation play important role to improve employee’s
engagement, retention, commitment, job satisfaction; effective support of the
organizations to employees; reducing employee turn-over…
Motivation is defined as the process that account for an individual’s intensity, direction
and persistence of effort toward attaining a goal (T.R. Michell, 1997). In the 1950s
three specific theories were formulated which significantly affect, even now in term of
validity. They still the best-known explanation for employee motivation. They are the
Hierachy of need theory of Maslow (1943), theories X and Y and Herzberg two factor
theory (1959).
Beside the above early theories of motivation, other theories were recognized as basis
for studies and researches, providing us the theoretical basis to prove relation among
factors of HR management, especially the relation among job performance,
motivation, engagement, retention, commitment, job satisfaction, turnover, and
support of the organizations to employees. They are ERG Theory of Alderfer (1969),
McClelland’s theory of needs (1988), as we mention hereunder.
- Satisfaction: it is necessary to recognize that motivation was also proved to have
relation with satisfactory, and thus having relation with job satisfaction and job
performance, organizational citizenship behavior (OCB) (Stephen P.Robbins and
Timothy A.Hudge, 2007).


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Job satisfaction definition: Job satisfaction can be defined as a positive feeling about
one’s job resulting from an evaluation of its characteristics. A person with a high level
of job satisfaction hold positive feeling about the job, while the other person who is
dissatisfied holds negative feeling about the job (Stephen P. Robbins and Timothy
A.Hudge, 2007).
Job satisfaction and Job performance (JP) : A review of 300 studies suggests that the
correlation between job satisfaction and job performance is pretty strong. When
satisfactory and proclivity date are gathered for organization as a whole, we find that
organizations with more satisfied employees tend to be more effective than
organization with fewer satisfied employee (T. A. Judge, C. J Thoresen, J.E. Bono,
and G.K. Patton, 2011) .
- Hierachy of need theory of Maslow (1943)
It can say that the most well-known theory of motivation is Abraham Maslow’s
Hirachy of Needs. Following Maslow, within every human being there is existence a
hierarchy of five needs. These needs are:
o Physiological: Includes hunger, thirst, shelter, sex, and other body needs
o Safety: Include security and protection from physical and emotional harm.
o Social: Includes affection, belongingness, acceptance, and friendship
o Esteem: includes internal esteem factors such as self-respect, autonomy, and
achievement; and external esteem factors such as status, recognition, and
attention.
o Self-actualization: The drive to become what one is capable of becoming,
including growth, achieving one’s potential, and self-fulfillment.
As each of these needs becomes substantially satisfied, the next becomes dominant.
Maslow separated the five needs into higher and lower orders. Physiological and safety
needs were describe as low-order-needs and social, esteem, and self-actualization as
higher-order needs
Emphasis on growth or higher order needs of A Maslow social needs (affection,
friendship, acceptance, belongingness in group), esteem ego needs (status, recognition,


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self-respect, ect.) and self-actualization needs (growth, achieving one’s potential, selffulfillment ect.).
The differentiation between the two orders was made on the premise that higher-order
needs are satisfied internally (within a person), whereas lower-order needs are
predominantly satisfied externally (by things such as pay, union contracts and tenure).
- Herzberg two factor theory (1959)
The two factor theory also called motivation-hygiene theory was proposed by
psychologist Two factor theory. Frederick Herzberg theorized that employee
satisfaction depends on two sets of issues - Two dimensions of employee satisfaction:
"hygiene" issues and motivators. Once the hygiene issues have been addressed, he
said, the motivators create satisfaction among employees.
According to Herzberg, hygiene issues, cannot motivate employees but can minimize
dissatisfaction, if handled properly. In other words, they can only dissatisfy if they are
absent or mishandled. Hygiene topics include company policies, supervision, salary,
interpersonal relations and working conditions. They are issues related to the
employee's environment. Motivators, on the other hand, create satisfaction by fulfilling
individuals' needs for meaning and personal growth. They are issues such as
achievement, recognition, the work itself, responsibility and advancement. Once the
hygiene areas are addressed, said Herzberg, the motivators will promote job
satisfaction and encourage production.

Hygiene issues (dissatisfies)
- Company and administrative policies
- Supervision
- Salary
- Interpersonal relations
- Working conditions

Motivators (satisfiers)
- Work itself
- Achievement
- Recognition
- Responsibility
- Advancement

- Theory X and Theory Y (1960)
Theory X and Theory Y is theory of human motivation. McGregor developed a
philosophical view of humankind with his Theory X and Theory Y in 1960. His work
is based upon Maslow's Hierarchy of Needs, in that he grouped the hierarchy into
lower-order needs (Theory X) and higher-order needs (Theory Y). He suggested that


14
management could use either set of needs to motivate employees, but better results
would be gained by the use of Theory Y, rather than Theory X. These two opposing
perceptions theorized how people view human behavior at work and organizational
life:
Theory X: With Theory X assumptions, management's role is to coerce and control
employees.
Theory Y: With Theory Y assumptions, management's role is to develop the potential
in employees and help them to release that potential towards common goals.
- ERG Theory of Alderfer (1969)
Clayton Alerfer attempt to rework Maslow’s needs hierarchy to align in more closely
with empirical research.Alderfer argued that there are three groups of core needsexistence (similar to Maslow’s physiological and safety needs), relatedness (similar to
Maslow’s social and status needs), and growth (similar to Maslow’s esteem needs and
self-actualization).
Unlike Maslow’s theory, ERG does not assume that there exists a rigid hierarchy in
which lower-needs must be substantially gratified before one can move on.
- McClelland’s theory of needs (1988)
McClelland’s theory of needs developed by David McClelland. The theory focuses on
three needs: Achievement, power, and affiliation. They are defined as follows:
o Need of achievement: the drive to excel, to achieve in relation to a set of
standard, to strive to succeed.
o Needs of power: The need to make others behave in a way that they would not
have to behave otherwise.
o Need for affiliation: The desire for friendly and close interpersonal
relationship.


15
Content of theories - a comparison
Hierarchy of Needs
Theory (Maslow)

ERG of Clayton
Alderfer

Herzberg’s TwoFactor Theory

David McClelland’s
Theory of Needs

Growth needs

Motivators

Need for
Achievement

Self actualisation
Esteem

Need for Power

Love/Belonging

Relation needs

Hygiene Factors

Safety
Physiological

Existence needs

Need for Affiliation

(Source: Bowduch & Buono, 65 – 70,

Schein, P. 93 )

In brief: Satisfaction of employees’ needs help to improve motivation. Depending on
the extents, levels of employees’ satisfaction coming from the interaction between
employers and employees, from the support of employer to employees, there will
result outcomes of compatible engagement, job performance and perceived
organization support.
- Researches results of Bruce Louis Rich and Jeffrey A. Lepine, Eean R. Crawford
(2010) and of Robert Eisenberger, Stephen Armeli, Barbara Rexwinkel, Patrick D.
Lynch (2011)
This research proved the relation of the related factors which are the basis for this
study to develop in the context of Viet Nam, especially in the community of
commercial banks, specifically as follows:
Research of Bruce Louis Rich and Jeffrey A. Lepine, Eean R. Crawford (2010) found the
relation of POS-Job performance, and also the mediators of Job engagement beside other
relations.
- Research result of Robert Eisenberger, Stephen Armeli, Barbara Rexwinkel,
Patrick D. Lynch (2011):
This research found POS to be positive related to affective commitment, performance.
Also felt obligation and positive mood was found as mediators of POS- Outcome
relation.


16
2.5. Hypothesis development
With reference to the above mentioned literature review, hypothesis for this study is
developed as below:
2.5.1 Hypothesis for the relation of Perceived organizational support (POS) – Job
engagement (JE)
Following Edmondson, 1999, Employees who perceive high organizational support
have positive and secure expectations concerning the organization’s likely reaction
to employees’ contributions as well as their mistakes, and thus they have less
reason to fear incurring damaging consequences for their self-images, statuses, or
careers as a result of investing themselves fully into their work roles. Employees
who get more organizational support seem to engage more to their organizations and
their works in terms of physics, cognition and emotion. Stemming from these reason,
hypothesis for the relation of Perceived organizational support - Engagement is as
follows:
1.

Hypothesis 1A: Perceived organizational support is positively related to
Physical engagement.

2.

Hypothesis 1B: Perceived organizational support is positively related to
cognitive engagement.

3.

Hypothesis 1C: Perceived organizational support is positively related to
Emotional engagement.

2.5.2. Hypothesis for the relation of Perceived organizational support (POS) - Job
Performance (JP)
Following Eisenberger, Huntington, Hutchinson, & Sowa, 1986; Rhoades &
Eisenberger, in order to meet socioemotional needs and to assess the benefits of
increased work effort, employees form a general perception concerning the extent to
which the organization values their contributions and cares about their well-being.
Outcomes of POS would include increases in in-role and extra-role performance (Job
performance) and decreases unexpected outcome and behaviors from employees. Such
perceived organizational support (POS) would increase employees’ felt obligation to
help the organization reach its objectives. Developed from these reasons, the


17
hypothesis for the relation of Perceived organizational support - Job Performance
(POS) is POS engagement is as follows
4.

Hypothesis 1D: Perceived organizational support is positively related to Job
Performance.

2.5.3. Hypothesis for the relation of Job Engagement (JE) - Job Performance (JP)
Following Kahn, W. A. (1990). “Personal engagement” as the harnessing of
organization member’s selves to their work roles. Engagement reflects the
simultaneous investment of cognitive, emotional, and physical energies in such a way
that one is actively and completely involved in the full performance of a role. The
investment of engagement factors (physical, emotional, and cognitive) energy into the
task at work. For these reason the hypothesis for the relation of Job engagement -Job
Performance is as follows:
5.

Hypothesis 2A: Physical engagement is positively relate to Job Performance.

6.

Hypothesis 2B: Cognitive engagement is positively relate to Job Performance.

7.

Hypothesis 2C: Emotional engagement is positively relate to Job
Performance.

2.5.4. Hypothesis for the mediation role of Job engagement (JE)
POS strengthens affective commitment and performance by a reciprocation process
(Robert Eisenberger, Stephen Armeli, Barbara Rexwinkel, Patrick D. Lynch, and
Linda Rhoades, University of Delaware, 2001). Following Kahn (1990, 1992), the
investment of physical, emotional, and cognitive energy into the task at work. By this
way it can be seen that engagement plays mediation role in the associations of POS
with job performance. The hypothesis for mediation role of engagement is as follows:
8.

Hypothesis 3A: Physical engagement positively meditates the relationship
between Perceived organizational support and Job Performance.

9.

Hypothesis 3B: Cognitive engagement positively meditates the relationship
between Perceived organizational support and Job Performance.

10. Hypothesis 3C: Emotional engagement positively meditates the relationship
between Perceived organizational support and Job Performance.


18
*Research model
All the above hypothesis are summarized in the following model
Picture 1
Research model and hypothesis
The Impact of Perceived Organizational Support on Job Performance,
the Mediation of Job Engagement- A study of Commercial Banks in Viet Nam.
PERCEIVED
ORGANIZATION
SUPPORT

JOB ENGAGEMENT

JOB FORMANCE

1D +

Physical
engagement

2A +

1A +

Perceived
organizational
support (POS)

1B +

2B +

Cognitive
engagement

1C +

Job
Performance

2C +

Emotional
engagement.

3A +

3B +

3C +

This chapter provides theoretical framework for the research, presents related theories,
antecedent researches, hypothesis development and proposed research model. In order
to define if the hypotheses are supported, proposed research model are suitable for the
context, practice, market of commercial bank in Viet Nam, the research methodology
step is conducted in chapter 3.

CHAPTER3: RESEARCH METHODOLOGY

This chapter is to describe methodologies for this research including: research design,
questionnaire development, data collection, method of data analysis based on the


19
results of the above mentioned literature review chapter. In addition, in this chapter we
state theories relating to variables, constructs proposed in our research model.
3.1. Research design:
3.1.1. The approach to research in this study is quantative research.
“In quantitative research your aim is to determine the relationship between one thing
(an independent variable) and another (a dependent or outcome variable) in a
population. Quantitative research designs are either descriptive (subjects usually
measured once) or experimental (subjects measured before and after a treatment). A
descriptive study establishes only associations between variables. An experiment
establishes causality”. (Will G Hopkins 2000)
For accurate estimate of the relationship between variables, our descriptive study
needs a sample of 200 subjects. To express the relationship between variable we use
effect statistics, such as correlations, relative frequencies, or differences between
means.
3.1.2. The quantative methology is a cross-sectional survey:
In quantitative research, the study aim is to determine the relationship between one
thing (an independent variable) and another (a dependent or outcome variable) in a
population. Quantitative research designs are either descriptive (subjects usually
measured once) or experimental (subjects measured before and after a treatment). A
descriptive study establishes only associations between variables. An experiment
establishes causality.( http://www.sportsci.org/jour/0001/wghdesign.html)
Cross-sectional studies (also known as cross-sectional analyses or transversal studies)
form a class of research methods that involve observation of all of a population, or a
representative subset, at one specific point in time. Cross-sectional studies are
descriptive studies, it can be used to describe, not only the Odds ratio, but also
absolute risks and relative risks from prevalence (sometimes called prevalence risk
ratio, or PRR) (Carsten Oliver Schmidt, Thomas Kohlmann, 2008, James Lee, 1994).
Cross-sectional surveys are used to gather information on a population at a single point
in time. An example of a cross sectional survey would be a questionnaire that collects
data on how parents feel about Internet filtering, as of March of 1999. A different
cross-sectional survey questionnaire might try to determine the relationship between


20
two factors, like religiousness of parents and views on Internet filtering (Babbie, Earl
R. Survey Research Methods. Belmont, CA: Wadsworth Pub. Co., 1973.)
This study is carried out through quantitative research methology in the form of crosssectional survey. Cross-sectional survey are a positive methodology designed to obtain
information on variables in different contexts, in which variables of interest in a
sample of subjects are assayed once and the relationships between them are
determined.. Different banks and groups of people selected in this study and be
conducted to ascertain how factors differ. Banks mentioned in this study are
commercial banks in Viet nam from different areas from the North to the South.
After survey data is conducted, statistical test is conducted to find out correlation
between variables. This step is mentioned in the data analysis step.
3.2. Questionnaire development
Data collection relies on questions as vehicle for extracting the primary research data.
(William B. Werther, Jr., Ph.D. and Keith Davis, 1996), thus, questionnaires in this study

are developed with respect to the general rules for questionnaire designing as follows:
The questionnaire development is the key step to set up measuring scale for the study.
In this study, questionnaire, scales development is designed based on antecedent
researches of:
+ Bruce Louis Rich (California State University SanMarcos) and Jeffrey A. Lepine,
Eean R. Crawford (University of California) (2010).
+ Robert Eisenberger, Stephen Armeli, Barbara Rexwinkel, Patrick D. Lynch,
and Linda Rhoadesm, (University of Delaware) (2001).
Also, in this study, two mini group discussions were conducted. In the first discussion,
four bank experts including two branch directors and two managers from as
Sacombank, Saigonbank, Agribank, VinaSiam Bank were invited. The purpose of this
step is to examine the clarity the instrument and to be sure that all survey questions
were clear in meaning and sufficient to cover the research matter in reality, from the
perspective of a banking professional. Some amendments were made after suggestions
from bank managers.


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