THE INFLUENCE OF LEADERSHIP POWER BASES ON EMPLOYEE’S JOB STRESS – A STUDY OF VIETNAMESE COMPANIES

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business


 

THE INFLUENCE OF LEADERSHIP POWER BASES ON EMPLOYEE’S JOB STRESS – A STUDY OF VIETNAMESE COMPANIES

MASTER OF BUSINESS (Honours)

 

Ho Chi Minh City – Year 2018

ACKNOWLEDGEMENTS

 

 

 

 

I would like to express my sincere gratitude to Dr. Pham Ngoc Thuy, my Supervisor, for her thoughtful guidance guidance, recommendations from the research proposal to the thesis report. I really appreciate her patience during the whole instruction process for me to the able to complete this study despite some location difficulties.

 

Secondly, I would like to express my sincere thanks to all professors, tutors and officers of MBus Program for valuable lectures, academy knowledge and your experiences transfer throughout the period of courses at International School of Business.

 

I want to express my special thanks to all my colleagues, friends for your advice, cooperation and supports during the pilot and official survey.

 

Finally, special thanks to my family especially my parents for their support, encouragement and inspiration that enabled me to finish the course. Without your support, I can not successfully complete my thesis.

 

Ho Chi Minh City, Vietnam, 06th Dec, 2014.

 

 

Luong Thi Thanh Thao

 

 

 

 

 

 

 

 

 

 

 

 

i

 

 

ABSTRACT

 

The turnover rate in Companies in Vietnam is growing especially in Sales department of FMCGs companies, there are few studies of the influence of leadership behaviors on both organizational and leader effectiveness. That is why FMCG and employees who work in sales sector are mainly focus of this study. The objectives of this research to identify relationships between leadership power bases and employee‟s job stress in Companies in Viet Nam. A convenience sample is collected from 289 employees from many companies, largely from FMCGs and Sales department. The goal was to obtain the influence of leadership power bases used by his or her leaders and the employees‟ job stress to determine if an association exists between these two variables. The results indicated that perceived leadership power bases correlate with job stress for employees in these companies. The components of the Legitimate power base is positively related to job stress of subordinate, whereas the Expert power, Reward Power and Coercive are related negatively. According to the research including on legitimate leadership behaviors, these approaches may lead to high job stress.  However, using  mostly Expert, Reward and Coercive power  may result in positive effects such as low stress levels. Leadership is at the heart of effective management. The research, mainly focusing on companies in Ho Chi Minh City with convenient sampling method to collect data analysis. Demographic factors might have affected the results. Most of the participants were young with job tenure under three years. Moreover, most of the samples chosen came from male gender. Finally, there may have been a self-selection bias among the subordinates who participated in this study since participation was voluntary.

 

Key words: Leadership, Job stress, power bases.

 

 

Table of contents

ACKNOWLEDGEMENTS…………………………………………………………………………………. i

ABSTRACT……………………………………………………………………………………………………….. ii

CHAPTER 1: INTRODUCTION……………………………………………………………………….. 1

CHAPTER 2: LITERATURE REVIEW…………………………………………………………….. 5

CHAPTER 3: RESEARCH METHODOLOGY………………………………………………… 16

  • Research Process……………………………………………………………………………………………. 16
  • Research Design……………………………………………………………………………………………. 17
  • Measurement scales……………………………………………………………………………………….. 19
    • Legitimate power……………………………………………………………………………… 19
    • Reward power…………………………………………………………………………………. 20
    • Coercive ………………………………………………………………………………. 20
  • Expert Power…………………………………………………………………………………… 20
  • Referent power………………………………………………………………………………… 21
  • Job stress…………………………………………………………………………………………. 21
  • Questionnaire Design……………………………………………………………………………………… 22
  • Sampling Method………………………………………………………………………………………….. 23
  • Qualitative Survey…………………………………………………………………………………………. 24
  • Main survey and data collection………………………………………………………………………. 25
  • Data analysis methods……………………………………………………………………………………. 26

CHAPTER 4: RESULTS AND CONCLUSIONS………………………………………………. 29

4.2.1 Reliability Analysis – by Cronbach‟s Alpha…………………………………………. 31

.2.2 Results of the Exploratory Factor Analysis……………………………………………. 36

CHAPTER 5 – CONCLUSIONS AND IMPLICATIONS………………………………….. 48

  • Main findings………………………………………………………………………………………………… 48
  • Managerial implications………………………………………………………………………………….. 49
  • Contributions of the study………………………………………………………………………………. 49
  • Limitations……………………………………………………………………………………………………. 50

REFERENCES…………………………………………………………………………………………………. 52

APPENDICES………………………………………………………………………………………………….. 57

APPENDIX 1 – QUESTIONNAIRE IN ENGLISH……………………………………………… 57

APPENDIX 2 – QUESTIONNAIRE IN VIETNAMMESE……………………………………. 60

APPENDIX 3 – DESCRIPTIVE STATISTICS OF ITEMS…………………………………….. 63

APPENDIX 4 – EFA ANALYSIS RESULTS……………………………………………………….. 64

APPENDIX 5 – RELIABILITY ANALYSIS RESULTS……………………………………….. 65

APPENDIX 6:  FREQUENCY TABLE……………………………………………………………….. 66

 

List of Table

 

 

Table 4-1: Descriptive Statistics of Sample………………………………………………………. 31

 

Table 4-2: Reliability analysis results……………………………………………………………….. 35

 

Table 4-3: EFA analysis results for the variables………………………………………………. 37

 

Table 4-4: The total explained variance……………………………………………………………. 37

 

Table 4-5: KMO and Bartlett’s Test…………………………………………………………………… 39

 

Table 4-6: Describe the correlation among variable………………………………………….. 42

 

Table 4-7: Hypotheses testing results……………………………………………………………….. 43

 

Table 4-8: Multiple Regressions results of model…………………………………………….. 45

 

Table 4-9: Summary of hypothesis testing result………………………………………………. 47

 

 

List of Figures

Figure 1: Research model for leader power bases and job stress of employee….. 14

Figure 2: Research Process………………………………………………………………………………. 16

Figure 3: Revised Research Model…………………………………………………………………… 39

 

ABBREVIATIONS

 

 

ANOVA:         Analysis Of Variance EFA:      Explored Factor Analysis

KMO:              Kaiser-Meyer-Olkin

SPSS:               Statistical Package for Social Science

 

 

CHAPTER 1: INTRODUCTION

 

 

This chapter introduces the context of the study, including a short introduction of the market of Viet Nam, and information FMCGs industry in Viet Nam, the research problem, and the research objectives as well as the delimitation and contribution of the research.

 

1.1.            Research background

 

 

Effective leadership is essential to ensure that change leads to increased efficiency and profitability (Pittaway et al., 1998; Zhao and Merna, 1992; Slattery and Olsen, 1984). The FMCG industry tends to be labor intensive and has increasingly harsh environmental demands imposed upon it. Leadership skills may help organizations to utilize the available human resources more effectively and to deal successfully with environmental pressures. Leadership as a subject has been somewhat neglected within FMCG industry research in Viet Nam. From human relations perspectives, employee‟s stress is related to the personality traits of the superior which as his/her temperament, openness, industriousness, pleasantness or not. The positive side of all of these traits can reduce stress and enhance satisfaction of employee. If organizations understand the influence of leadership skills or leadership styles may help organizations to utilize the available human resources more effectively and to deal successfully with environmental pressures.

 

A brief introduction about turnover rate in Viet Nam.

According to Vietnam news online paper, (2013), the turnover rate among workers is likely to grow this year as many hope to change their jobs, an online survey has found. Fast- moving consumer goods, pharmaceuticals, oil, and gas are predicted to be the top sectors of turnover rate. The high turnover rate of employees comes from many reasons. One of the most important reasons that lead to resignation of employee is not appropriate leadership. Employees feel unsatisfied with their boss. They decide to quit job in short time of working. The workplace stress is recognized, but little attention is given to the incidence of this problem in the this industry in Viet Nam, despite the growth of this sector, and the obvious relevance of stress to fluid situations where much depends on inter-personal relations.

The subject of leadership is interesting for many people. The continued search for good leaders has resulted in the development of many leadership theories. Leadership can be defined as a social influence process. It involves determining the group or organization‟s objectives, encouraging behavior in pursuit of these objectives, and influencing group maintenance and culture (Yukl, 1994). Constructs  like job stress, burnout, organizational commitment, and job performance have been developed and empirically tested in developed industrialized countries (Baba, Jamal & Tourigny, 1998; Maslach, 2003). Job stress can be defined as an individual‟s reactions to characteristics of the work environment that seem emotionally and physically threatening (Jamal, 2005). Stress can influence a variety of variables including job performance, organizational effectiveness (Borucki, 1987), personal relationships, and health (Bosma, et al., 1998).

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