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RESEARCH INTRODUCTION
1. Rationale of the research
Organizational culture is the living environment of the employees and
companies. It helps form thinking, creates emotions, and tries to connect people
according to common goals. Organizational culture is a cord that extends and
increases the value of individuals; it is a valuable asset that every organization needs
to promote. Organizational culture creates competitive advantages and is the
intangible value that helps customers distinguish enterprises. Organizational culture
can be used to measure the performance of an organization.
In the context of sustainable development and fierce competition among firms,
building human resources that engages with the organization is always the ultimate
goal of enterprises, helping the organization improve its competitive advantage.
According to research on Human Resources Management, the objectives of
enterprises are hard to achieve if employees are superficially engaged and have low
productivity; especially excellent employees (talents) need to be given first priority,
as they are considered valuable assets of the organization. Employee engagement is
the main factor contributing to an organization’s productivity, efficiency, and long-
term existence. Highly engaged employees tend to achieve greater sales and profits.
In many ways, to improve employee engagement with the organization,
organizational culture is considered an important and effective tool. Strong organizational
culture will be the foundation to enhance the reputation and position of enterprises. It
helps enterprises reduce conflicts and is an invisible adhesive that helps employees engage
with the organization. A lot of dimensions of organizational culture are considered;
however, the relevance of this research in Vietnam is an issue as Vietnamese culture has
its own characteristics and is different from the world. Vietnamese enterprises may be left
behind if they do not immediately adapt to changes from the outside and develop
organizational culture. Vietnamese enterprises are also currently facing fierce competition
in human resources, especially high quality and scarce human resources.
Moreover, from the perspective of human resource managers, theoretical and
empirical gaps are initiated to conduct the “A study on the impacts of organizational culture
on employee engagement with the organization in Vietnamese enterprises”. The research
suggests policies for managers to better understand the impact of organizational culture on
employee engagement with the organization. The study also provides theoretical and
empirical evidence on enhancing engagement of employees with the organization.
2. Research objectives and questions
2.1 Research objectives
The main objectives of the thesis is building models and etimating the impacts
of organizational culture on employee engagement with the organization in
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Vietnamese enterprises. From empirical results, the thesis proposed recommendations
to improve employee engagement with the organization through dimensions of
organizational culture from the perspective of human management practices.
2.2. Research questions
To achieve the thesis’s objectives, the thesis will answer the following research
questions:
- What are the criteria for assessing organizational culture and employee
engagement with the organization?
- How does organizational culture affect employee engagement with the
organization? How organizational culture aspects affect each different element
of the employee engagement?
- Which are suggestions that help enhance the aspects of organizational culture
and improve employee engagement with the organization within the
Vietnamese enterprises?
3. Scope and subjects of the research
3.1. Research subjects
Research subjects: The thesis focused on researching the impact of
organizational culture on employee engagement with the organization in Vietnamese
enterprises. Specifically, the research subjects include: (i) expressive dimensions in
organizational culture and measures of organizational culture in enterprises, (ii)
employee engagement and measures of employee engagement and (iii) the impact of
organizational culture on employee engagement with the organization in enterprises.
3.2. Research scope
Secondary data were collected in the period 2012 - 2019. They include
statistics related to the variables representing measurement of organizational culture
and employee engagement with the organization. Primary data were collected in 2019
through the survey questionnaire that was developed by the thesis. There were 791
respondents who answered the questionnaires, but 711 observations were used for
analyzing.
- Surveyed enterprises are in all 3 types of ownership (State-owned, private,
and FDI enterprises), and they are diverse in size and business/industries.
- The thesis conducted surveys with Vietnamese enterprises, including
enterprises located in Northern, Central and Southern.
4. Research methods
The thesis used both qualitative and quantitative research methods.
- Qualitative research methods were used to explore factors/items and
variables that were used for questionnaire development. Interviewees consists of 20
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people, including representatives of enterprises, organizational culture specialists, and
employees directly working on human resources.
- Quantitative research methods include (i) Survey method to collect data for
answering research questions. (ii) Exploratory factor analysis method was
implemented to test for measurements. (iii) Descriptive statistics analysis method is
implemented to analyze and describe the characteristics of research sample,
organizational culture and employee engagement with the organization. (iv) The
regression analysis method is used to measure the impact of organizational culture on
employee engagement with the organization in Vietnamese enterprises.
Questionnaires were sent out and collected via direct colection, mailing, and online
surveys (using google form service).
5. Contributions of the thesis
The thesis have some theoretical and practical contributions as follows:
5.1. Theoretical contributions
- The thesis used an approach from the perspective of human resources
managers on organizational culture through behavior and management practices. It is
a different approach compared to the previous research on organizational culture,
which studies the types, values, and trends of organizational culture affecting
employee engagement.
- The thesis discovered and recommended an additional dimension to measure
organizational culture, which is “Management practices,” to describe clearly the
concept of organizational culture in the context of a transition economy like Vietnam.
- The thesis confirms that eight dimensions of organizational culture determine
employee engagement with the organization. These dimensions include: “Management
Practices, Innovation and Risk-Taking, Future Planning, Training and Development,
Organizational Communications, Rewards and Recognition, Decision Making, Teamwork
”.
5.2. Practical contributions
- The research confirmed that the dimension “Management practices” in
organizational culture has the most positive effect on employee engagement with the
organization in general, and have a positive effect on “Loyalty”, “Pride” and “Effort”
of employees. This result confirms the role of “Management practices” in
construction and development of organizational culture of enterprises.
- Dimensions of organizational culture “Innovation and risk-taking” have a
negative impact on “Effort”, but have a - The research confirmed that the dimension
“Management practices” in organizational culture has the most positive effect on
employee engagement with the organization in general and have a positive effect on
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“Loyalty”, “Pride”, and “Effort” of employees. This result confirms the role of
“Management practices” in organizational culture of enterprises.
- Dimensions of organizational culture “Innovation and risk-taking” have a
negative impact on “Effort”, but have a positive impact on “Loyalty” and “Pride” of
employees. Simultaneously, the dimension “Rewards and recognition” have the most
positive impact on “Employees’ effort”, but does not affect “Loyalty” and “Pride” of
employees. When building organizational culture, it is necessary to pay attention to
specific dimensions and balance with the goal of employee engagement with the
organization in enterprises.
- To improve employee engagement with the organization in enterprises, it is
important to pay attention to the dimensions of organizational culture in each
particular case. Research results suggest that each aspect of organizational culture
affects the elements of employee engagement with the organization in different
directions. Therefore, enterprise managers need to notice the impact of dimensions of
organizational culture on each element of employee engagement with the
organization to improve employee engagement with the organization in enterprises.
6. Structure of the thesis
In addition to the introduction, table of contents, conclusion and appendix; the
thesis consists of 5 chapters.
Chapter 1: Research overview
Chapter 2: Theoretical bases and research model of the impact of
organizational culture on employee engagement with the organization.
Chapter 3: Research method and design
Chapter 4: Research results of the impact of organizational culture on
employee engagement with the organization in Vietnamese enterprises
Chapter 5: Discussions of research results and recommendations
CHAPTER 1: RESEARCH OVERVIEW
1.1 Overview of research on organizational culture
Organizational culture is the product of the people working together in an
organization and meeting the needs of sustainable values. The core of the process of
developing cultural values is that each enterprise must clarify the values that are being
emphasized in its enterprises, thereby planning a detailed plan to develop suitable values
and limited values that do not match. Organizational culture is studied and approached by
many scholars with private opinions; the thesis approach to organizational culture
according to research by Recardo & Jolly (1997). The research also specifies how to
measure the behavior of organizational culture through enterprises management practices
as well as the employees' behavior in the organization... Therefore, this research is used a
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lot in the empirical research on organizational culture and is suitable to study and consider
the impact of organizational culture to the behavior of employees in enterprises, from
the perspective of human resources management...
1.2 Overview of research on employee engagement with the organization
From 2000, the Human Resources Management sector was innovated
in the behavioral research approach of employees and was widely introduced (Little,
2006). There are many opinions, arguments that “employee engagement” seems like
“organizational commitment”, also can consider employee engagement as an
organizational commitment (Robinson et al., 2004). This is easy to understand
engagement and organizational commitment has similar meaning, telling the
voluntary adherence, expressing from emotion and willing to stay with the
organization. The initial difference can be distinguishable: the employees
organizational commitment comes from the benefits they receive from the
organization; while employee engagement emphasized the sense of voluntariness,
inspiration, dedication to work effectively thanks to the organization propaganda for
the employees. Differences also can be seen in the perspective of a researcher in
depth; But it is difficult to separate which metrics are suitable, as each study has its
own objective and depends on many factors “the organization;
group; personal and business” (Robinson & Hayday, 2007). The employee
engagement has similarities and overlaps with both concepts of commitment and
behavior of citizens the organization (Markos & Sridevi, 2010).
Employee engagement is a multidirectional concept, so there are many
different side studies to measure. The thesis approaches the three elements of
engagement theory by Mowday, Steers, & Porter (1979) as one of the leading
theories working on this topic; this theory continues to be under Tran Kim Dung
(2006) use and adjustment of terms to suit the awareness and level of knowledge of
employees in Vietnam.
1.3 Overview of research on the impact of organizational culture on employee
engagement with the organization
Zain et al. (2009), research about company listed in Malaysia. This research
provided four dimensions of organizational culture, specifically “(i) teamwork, (ii)
training and development, (iii) organizational communications, (iv) rewards and
recognition”. Results show that dimensions of organizational culture have a decisive
role in promoting employee engagement with the organization. However, the
limitation of this study is that the research sample is small, limited to only a
company, the results of the findings in this study may not be generalizable to other
organizations.
In Manetje and Martins (2009), the variable organizational culture is built upon
the approach of Harrison and Stokes (1992). The implication of research is that the
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organization needs to evaluate their culture and employee engagement with the
organization before trying to change or renew their organizational culture. The
drawback is that the research sample includes individuals in the same organization, so
the results cannot be generalized for the organization in other areas.
Ghina (2012), a research in Indonesia; organizational culture is measured by 4
elements: “teamwork, communications, rewards and recognition, training and
development”. The scale of employee engagement is used upon Mowday et al.
(1979). The research contributes to a better understanding of the impact of
organizational culture and controlling variables to employee engagement with the
organization of civil organizations. The limitations of the study are convenient
sampling surveys, there are 150 eligible surveys.
According to Suharti & Suliyanto (2012), study data were obtained from 102
respondents by means of structured questions; supposed that organizational culture
and leadership style have impact on employee engagement was accepted. The
limitation of this study is small research sample; moreover, the determination of
independent variables and the dependent variable is contradicted with many
previously published research (Mowday et al., 1979; Meyer & Allen, 1991).
According to Al Shehri et al. (2017), research at Saudi Banks; investigated
factors of organizational culture that positively or negatively impact employee
engagement, qualitative research was conducted with interviews with the managers
and bank employees, results show that dimensions of organizational culture have a
positive effect on employee engagement. The limitation of this study is that it was
only done through qualitative methods, considering general engagement and focusing
research on only Saudi Banks.
In Vietnam, studying organizational culture impact on human resources
management and employee engagement with the organization lacks the system,
mainly study stops in small scale. Truong Hoang Lam and Do Thi Thanh Vinh
(2012), there are seven influencing factors and are closely related to the
organization's commitment. However, the research stops at quantitative research, in a
company related to information technology, so employees have different
characteristics such as young, dynamic, creative, personal capacity development.
Nguyen Hong Tham (2014), thinks that organizational culture impacts the reward
system. Tran Huu Ai, Nguyen Minh Duc (2015), there are five elements of
organizational culture impact to employee engagement with the organization; the
limitation is that they only study at one enterprise, lack the generality and need to
research with larger sample sizes. According to research by Ha Nam Khanh Giao and
Ho Thi Thu Trang (2016), mentioning 5 cultural factors in the research; research
model has not mentioned controlling variables, the elements that make up employee
engagement have not been analyzed clearly. Nguyen Nam Hai (2018), the results of
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all 5 cultural variables included in the study is supported; limitation is that it is new to
research in the information technology industry, select samples in two big cities, Ha
Noi and Ho Chi Minh, have not studied the specific dimensions of organizational
culture to engagement. Nguyen Lan Anh (2019) studies enterprise culture through
four culture dimensions according to Denison's measure; showing the impact of
factors in enterprise culture on employees’ commitment, the author took samples
according to the convenient method with 315 eligible surveys in Hanoi and Nghe An;
This research study by culture types, there will be small aspects and difficult to
observe, often difficult to measure from public information.
In summary, the studies related to the impact of organizational culture to
employee engagement in the world and Vietnam has been mentioned. But in fact
organizational culture is a broad and diversified concept in approach, so each
research uses organizational culture in different aspects; most researches have not yet
shown the coverage of the dimensions of organizational culture, showing the
specificity of Vietnamese enterprises, not detecting and adding new dimensions of
organizational culture in research. Moreover, employee engagement with the
organization mainly studies in psychological, emotional and personal feelings;
studies have not emphasized the voluntary in employees’ engagement and
engagement behavior of employees. In particular, the studies only stop in employee
engagement with the organization in general, very few studies can show the impact of
organizational culture to each element of engagement, how the difference can be
expressed; thereby helping enterprises adjust the dimensions of organizational culture
appropriately, helping to improve employee engagement with the organization.
1.4 Research gap and direction of the thesis
The overall results indicate gaps that need to be covered in research on
organizational culture and employee engagement with the organization including:
First, there is little generalized research about the rule in the impact of organizational
culture on employee engagement with the organization in Vietnamese enterprises.
Vietnamese enterprises have bold national cultural identity and oriental culture, are in a
strong transition to approach and integrate globally. Few studies have mentioned
organizational culture from the perspective of human resources managers, highlighting
organizational culture manifestations in behavior and management practices. Especially
they did not recognize the cultural value manifested in the behavior of leaders and
managers; in building and developing dimensions of organizational culture.
Second, very few studies have separated each aspect of organizational culture
that affects each elements employee engagement “pride, effort and loyalty” in
Vietnamese enterprises. The delineation of each aspect of organizational culture
affects each employee engagement elements through a sense of voluntariness and a
cohesive behavior that gives human resources managers a clearer view of the
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research direction that needs to be supplemented, further researched to have specific
directions, solutions, the most effective in developing organizational culture
positively to improve employee engagement with the organization.
Third, there is little research on employee engagement with the organization under
perspective of three elements of engagement “employees’ pride, effort and loyalty”.
Previous research in Vietnam mainly stop in researching organizational commitment,
engage with the organization; focus on employees' psychological and emotional state.
Fourth, however, is expressed quite clearly through management practices and
enterprise managers and is an aspect that constitutes organizational culture clearly in
Vietnamese enterprises; but very few studies have addressed the
cultural expression through the dimension “Management practices” impact on
employee engagement with the organization in Vietnamese enterprises. According to
Sarros et al. (2008) “management practices are part of organizational culture and
are inseparable” and leaders are like “an architect who shapes organizational
culture and can change organizational culture ". Management practices are how
leaders show their role, how they communicate, act, and treat employees according to
their perceptions.
CHAPTER 2: THEORETICAL BASES AND RESEARCH MODEL OF THE
IMPACT OF ORGANIZATIONAL CULTURE ON EMPLOYEE
ENGAGEMENT WITH THE ORGANIZATION
2.1 Theoretical bases
2.1.1 Concepts related to organizational culture
Some research emphasized the dimensions of values and behavior in
organizational culture. Some research on the impact of organizational culture to
improve work efficiency. Some research focus on the aspect of organizational culture
manifestation through behavioral behavior and practice activities.
The concept of organizational culture is diverse, reflecting the new and rich
research direction; the thesis approach and use research model of organizational
culture by Recardo & Jolly (1997); Robbins & Judge (2013) to be the basis of the
research; “organizational culture defines a system of values expressed through
behavior, practical activities and some of the management policies of the
organization which are shared and acted by employees”.
2.1.1 The concept related to employee engagement to the organization
The concept of employee engagement is becoming increasingly important in
research about the organization and behavior of employees in the workplace. Some
research refers to engagement through emotion and behavior. Some research
emphasized the influence of employee engagement values with the organization on
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the performance of the organization. Some research emphasized elements of
engagement, including specific dimensions.
The thesis approaches the concept of employee engagement with the
organization by Mowday, Steers & Porter (1979), inherited and supplemented by
research by Tran Kim Dung (2006); emphasized employee engagement elements
with the organization “Engaging employees with the organization is the voluntariness
of the employees, a sense of effort, pride and willingness to be loyal to the
organization, helping to promote the operational efficiency of the organization.”
2.2 Research model and hypotheses
2.2.1 Research model
According to resource-based enterprise development theory, enterprises can
achieve competitive advantage, improve their competitiveness if they know how to
build and exploit and use effectively resources, in which there are human resources.
How to make human resources valuable, rare, difficult to copy and replace is the
issue that enterprises really care about. Focus on building management systems,
control and build organizational culture, design the organization structure and the
management practices of human resources will help enterprises consolidate and
strengthen human capital and social capital, contributing to improving the
organization’s capacity and creating competitive advantage for enterprises (Barney &
Clark, 2007). Organizational helps to reinforce and strengthen the social capital of
enterprises (loyalty, commitment and trust of employees to the organization). This
theory is considered to be the base theory to explain the establishment of research
model of the thesis.
Management practices
Future planning
Innovation and risk-taking
Decision making
Personal
- Gender
- Age
- Academic
level
- Job position
- Working
period
Employee
engagement
with the
organization
Efforts
Pride
Loyalty
Dimensions of
organizational
culture
Training and development
Rewards and recognition
Teamwork
Communications
in the
organization
Enterprises
- Scale
- Areas of
work
- Type of
enterprises
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Figure 2.1: Research model
The model has a combination of independent variables according to theory by
Recardo & Jolly (1997); Robbins & Judge (2013); the dimension of management
practices is discovered and added. The dependent variable is approached according to
the theory by Mowday, Steers, & Porter (1979), with inheritance and addition from
research by Robinson et al., (2004); Tran Kim Dung (2006); Markos & Sridevi, 2010;
Soane et al., (2012).
2.2.2. Research hypotheses
H
1
. Organizational culture has a positive effect on employee engagement with
the organization
H
1a;
H
1b
; H
1c
: organizational culture has a positive effect on alternately
“employees’ loyalty, pride and effort”
H
2
. The culture dimension “organizational communications” has a positive
effect on employee engagement with the organization
H
2a
; H
2b
; H
2c
: The culture dimension “organizational communications” has a
positive effect on alternately “employees’ loyalty, pride and effort”.
H3. Organizational culture focusing on the dimension “Training and
development” has a positive effect on employee engagement with the organization
H
3a
; H
3b
; H
3c
: organizational culture focusing on the dimension “Training and
development” has a positive effect on alternately “employees’ loyalty, pride and
effort”.
H4. Organizational culture focusing on the dimension “Rewards and
recognition” has a positive effect on employee engagement with the organization
H
4a
; H
4b
; H
4c
: organizational culture focusing on the dimension “Rewards and
recognition” has a positive effect on alternately “employees’ loyalty, pride and
effort”.
H5. The dimension “Teamwork” culture has a positive effect on employee
engagement
H
5a
; H
5b
; H
5c
: organizational culture focusing on the dimension “Teamwork”
has a positive effect on alternately “employees’ loyalty, pride and effort”.
H6. Organizational culture focusing on the dimension “Future planning” has a
positive effect on employee engagement with the organization