
NATIONAL ECONOMIC UNIVERSITY
BUSINESS SCHOOL
IMPACT OF ETHICAL LEADERSHIP ON EMPLOYEE
PERFORMANCE AT CAPELLA HANOI
Bachelor of Digital Business in English (E-BDB) Thesis
Student: Phạm Hoàng Dương
ID: 11219332
Class: EBDB 3
Supervisor: Dr. Nguyen Quoc Duy
Hanoi, 2024

ACKNOWLEDGEMENT
I would want to sincerely thank you to all those who have helped to make
finishing my thesis possible. Many people's cooperation, support, and encouragement
—along with those of institutions—have produced this thesis.
Firstly and most importantly, I would want to sincerely thank the National
Economics University (NEU) and particularly the Business School (BSNEU). In the
EBDB program, over three and a half years, I have had the honor of gaining priceless
knowledge and experience that has given me a solid basis for starting the workforce.
My academic growth has been much aided by the encouraging surroundings and the
useful information provided by the staff members, teachers, and lecturers. The chance
to be a member of such a famous university makes me quite appreciative.
Second, I owe a great deal to my thesis supervisor, Dr. Nguyen Quoc Duy, for
his committed direction and continuous encouragement along the thesis-completing
process. His knowledge, perceptive observations, and helpful criticism have been
priceless; his encouragement has kept me driven and concentrated over this road. My
work has been much shaped by his assistance; therefore, I am rather grateful for it in
helping me polish my ideas.
Additionally, I would want to sincerely thank Capella Hanoi and especially Ms.
Nguyen Ngoc Anh, the Learning and Development Manager. I owe Capella Hanoi a
great deal for allowing me to intern with them, where I learned a lot of practical
human resources skills. My professional development has been much enhanced by Ms.
Ngoc Anh's mentoring, encouragement, and HR practice knowledge. I am appreciative
of the confidence she put in me since it let me participate actively and get better
understanding of the sector. I could not have finished this thesis with the same degree
of clarity and depth without the help and direction of Capella Hanoi and colleagues.
Finally, I would want to express my most gratitude to my family and friends,
who have always been my most powerful ally. Their relentless faith in me and their
continuous support have given me the will to move beyond obstacles and keep on
toward my objectives. This thesis would not have been conceivable without their love
and drive.
This thesis results not just from my own work but also from the group support
of these amazing people. Once more, I would want to sincerely thank you to everyone
who helped this effort to be successfully completed.
Hanoi, December 2024
Hoang Duong

TABLE OF CONTENTS
ABBREVIATIONS
LIST OF TABLES
LIST OF FIGURES
EXECUTIVE SUMMARY
CHAPTER 1: INTRODUCTION..........................................................................1
1.1. Rationale.......................................................................................................1
1.1.1. From a General Management Perspective.............................................1
1.1.2. From the Current Context of Capella Hanoi.........................................1
1.1.3. Justification for the Study......................................................................2
1.2. Research objectives......................................................................................2
1.3. Research Questions......................................................................................2
1.4. Research methodology.................................................................................3
1.4.1. Research Process..................................................................................3
1.4.2. Data Collection.....................................................................................4
1.5. Research scope.........................................................................................7
1.6. Thesis structure.......................................................................................7
CHAPTER 2: THEORETICAL BACKGROUND ON THE RELATIONSHIP
BETWEEN ETHICAL LEADERSHIP AND EMPLOYEE PERFORMANCE8
2.1. The relationship between ethical leadership and employee performance8
2.1.1. Ethical Leadership..................................................................................8
2.1.2. Employee Performance...........................................................................8
2.1.3. The Mechanism of Ethical Leadership’s Influence on Employee
Performance.....................................................................................................9
2.2. Mediating mechanisms of the linkage between ethical leadership and
employee task performance................................................................................10
2.2.1 Leader-member exchange.......................................................................10
2.2.2 Self-efficacy.............................................................................................13
2.2.3 Organizational identification...................................................................16
2.3. Theoretical framework and measurement of research variables.............18
2.3.1 Theoretical framework............................................................................18
2.3.2. Measurements of research variable.......................................................19
CHAPTER 3: CAPELLA HANOI OVERVIEW.................................................25
3.1. Overview of Capella Hanoi Hotel................................................................25
3.1.1. Overview of Capella Hanoi.....................................................................25
3.1.2. Capella Hotels & Resorts Overview........................................................25

3.1.3. Sun Group and Capella Hanoi...............................................................25
3.2. Capella Hanoi's Development Timeline and Achievements......................26
3.2.1. Planning and Design..............................................................................26
3.2.2. Key Milestones and Opening................................................................26
3.3. Capella Hanoi’s Service Offerings..............................................................27
3.4. The Capella Brand Promise.........................................................................27
3.5. Target Market of Capella Hanoi.................................................................28
3.6. Capella Hanoi’s Service Pillars...................................................................29
3.6.1. The Perfect Host.....................................................................................29
3.6.2. Relationship Building.............................................................................30
3.6.3. Attention to Detail...................................................................................30
3.6.4. Continuous Improvement.......................................................................30
3.6.5. Capella Ambassadors..............................................................................30
3.7. Organizational Structure of Capella Hanoi................................................31
3.7.1. General Manager (GM)..........................................................................33
3.7.2. Director of Finance................................................................................33
3.7.3. Director of Engineering..........................................................................33
3.7.4. Director of Operations............................................................................33
3.7.5. Director of Sales & Marketing...............................................................34
3.7.6. Director of Human Resources................................................................34
3.7.7. Director of Security.................................................................................34
3.8. Analysis of the Current Situation at Capella Hanoi: The Need for Ethical
Leadership...........................................................................................................35
3.8.1. The current situation at Capella Hanoi.................................................35
3.8.2. The Necessity of Ethical Leadership......................................................35
CHAPTER 4: RESEARCH RESULTS ON EMPLOYEE PERFORMANCE OF
CAPELLA HANOI.................................................................................................37
4.1. Respondent’s Profile................................................................................37
4.2. Data validating..............................................................................................41
4.2.1. Reliability analysis..................................................................................41
4.2.2. Exploratory Factor Analysis (EFA).......................................................45
4.2.3. Confirmatory Factor Analysis (CFA)....................................................50
4.3. Examining the suggested hypothesis on the impact of ethical leadership on
employee performance via leader-member exchange, self-efficacy and
organizational identification...............................................................................53
4.3.1. Evaluating the impact level (SEM testing).............................................53
4.3.2. The results of testing differences in employee performance based on
individual characteristics..................................................................................55

4.4. Employee perception regarding the Leader-member exchange, Self-
efficacy and Organizational identification.........................................................56
4.4.1. Employee perception toward Leader-member exchange.....................56
4.4.2. Employee perception toward Self-efficacy...........................................59
4.4.3. Employee perception toward Organizational identification................60
4.5. Summary of findings...............................................................................61
4.5.1. Achievements........................................................................................61
4.5.2. Shortcomings........................................................................................62
4.5.3. Causes of Shortcomings.......................................................................62
CHAPTER 5: SOLUTIONS TO IMPROVE CAPELLA HANOI EMPLOYEE
PERFORMANCE...................................................................................................64
5.1. Future Plan for Capella Hanoi........................................................................64
5.2. Enhance Leadership Training......................................................................64
5.3. Implement Structured Feedback...................................................................65
5.4. Empower Employees......................................................................................66
5.5. Foster Recognition & Fairness.....................................................................67
5.6. Limitations of the Research...........................................................................67
CONCLUSION
REFERENCES
APPENDIX