MINISTRY OF EDUCATION AND TRANNING UNIVERSITY OF ECONOMICS HO CHI MINH CITY  PON MEAN SOVITH THE RELATIONSHIP BETWEEN HUMAN RESOURCE MANAGEMENT PRACTICES AND ORGANIZATIONAL COMMITMENT IN CAMBODIA THESIS OF MASTER OF BUSINESS ADMINISTRATOR HO CHI MINH CITY – 2012 MINISTRY OF EDUCATION AND TRANNING UNIVERSITY OF ECONOMICS HO CHI MINH CITY  PON MEAN SOVITH THE RELATIONSHIP BETWEEN HUMAN RESOURCE MANAGEMENT PRACTICES AND ORGANIZATIONAL COMMITMENT IN CAMBODIA Subject: Master of Business Administrator Code: 06.34.01.02 THESIS OF MASTER OF BUSINESS ADMINISTRATOR ADVISOR: DR PHẠM QUỐC HÙNG HO CHI MINH CITY – 2012 i ACKNOWLEDGEMENT I would like to take this opportunity to express my gratitude to all those who have helped and supported me during the time I conducted the study First of all, I would like to express my deepest gratitude to my advisor, Dr Pham Quoc Hung, for his sincere guidance to my thesis His advices are crucially important and valuable for me to finish this thesis Besides, I would like thank you Dr Tran Ha Minh Quan and all professors, lecturers for his/her enthusiastic support Secondly, I would like to show sincere gratitude to University of Economics Ho Chi Minh City and Vietnamese government for giving me the opportunity to pursue my mater degree Thirdly, I would like to send special thank you to my beloved friends, Mr Sokun and Mr Viet, their guidance had broken the rusty iron door of SPSS hardship Mr Gian Phong, Mr Tuan and Miss Chung, their support and materials play an important role for my accomplishment Moreover, I would like to express special thank to all of my class mates (EMBAK19) Without all of their help, today would not have happened Lastly, I wish to thank my parents, Sam Pon and Heng Mean Their love provided my inspiration and was my driving force I owe them everything and wish I could show them just how much I love and appreciate them I hope that this work would make them proud Pon Mean Sovith Ho Chi Minh, December 2012 ii COMMITMENT I hereby would like to commit that the thesis, “The relationship between human resource management practices and organizational commitment in Cambodia”, was accomplished based on my independent and serious studies and researches The data was collected in reality and it has clear origins In addition to that, the data would be trust-worthily handled and it has never been released in any menu Pon Mean Sovith iii TABLE OF CONTENT ACKNOWLEDGEMENT I COMMITMENT II TABLE OF CONTENT III LIST OF TABLE V LIST OF FIGURE VI ABSTRACT CHAPTER INTRODUCTION 1.1 1.2 1.3 1.4 SETTING OF THE STUDY THE PROBLEM AND MOTIVATION FOR THE STUDY THE GOAL OF THE RESEARCH STRUCTURE OF THE STUDY CHAPTER LITERATURE REVIEW 2.1 INTRODUCTION 2.2 ORGANISATIONAL COMMITMENT 2.2.1 Affective Commitment 2.2.2 Continuance Commitment 2.2.3 Relationship between personal variables and organizational commitment 11 2.3 HUMAN RESOURCE MANAGEMENT PRACTICES 11 2.3.1 The concept of human resource management practices 11 2.3.2 The association of HRM practices and organization commitment 13 2.3.2.1 Training and development 13 2.3.2.2 Teamwork 15 2.3.2.3 Compensation, incentive 17 2.3.2.4 Performance appraisal 19 2.4 2.5 RESEARCH MODEL 21 SUMMARY 23 CHAPTER RESEARCH METHODOLOGY 24 3.1 INTRODUCTION 24 3.2 RESEARCH DESIGN 24 3.3 QUESTIONAIRE DEVELOPEMNT 25 3.3.1 Perceived organizational support 25 3.3.2 Control variable 25 3.4 TRANSLATION OF THE QUESTIONAIRE 27 iv 3.5 THE PILOT STUDY 27 3.6 TARGET POPULATION 27 3.7 SAMPLE SIZE 28 3.8 SELECTING THE SAMPLE AND COLLECTING DATA 28 3.9 SAMPLE CHARACTERISTICS 29 3.10 METHOD OF DATA ANALYSIS 29 3.10.1 Data screening 29 3.10.2 Reliability 30 3.10.3 Factor analysis 30 3.10.4 Analysis of variance (Anova) 32 3.10.5 Multiple regressions 33 3.11 SUMMARY 33 CHAPTER RESULTS ANALYSIS 35 4.1 INTRODUCTION 35 4.2 DATA SCREENING 35 4.3 SAMPLE DESCRIPTION 37 4.4 RELIABILITY (Cronbach alpha) 38 4.4.1 Measuring human resource management practices 39 4.4.2 Measuring Organizational Commitment 42 4.5 EXPLORATORY FACTOR ANALYSIS (EFA) 43 4.5.1 EFA implementation for independent variable 44 4.5.2 EFA implementation for dependent variable 48 4.6 CORRELATION 51 4.7 MULTIPLE REGRESSION 54 4.7.1 For affective commitment (AC) as dependent variable 55 4.7.2 For continuance commitment (CC) as dependent variable 60 4.8 SUMMARY 65 CHAPTER CONCLUSIONS AND RECOMMENDATIONS 67 5.1 5.2 5.3 5.4 INTRODUCTION 67 CONCLUSION 67 RESEARCH IMPLICATION 68 LIMITATION AND FURTHER RESEARCH RECOMMENDATION 68 APPENDIX 81 v LIST OF TABLE Table : Control variables 26 Table 1: Normality descriptive statistics 36 Table 2: Sample description statistic 38 Table 3: Cronbach’s Apha of scale factor: Training and development 39 Table 4: Cronbach’s Apha of scale factor: Teamwork 40 Table 5: Cronbach’s Apha of scale factor: Compensation / Incentive 41 Table 6: Cronbach’s Apha of scale factor: Performance appraisal 41 Table 7: Cronbach’s Apha of scale factor: Affective commitment 42 Table 8: Cronbach’s Apha of scale factor: Continuance commitment 43 Table 9: Kmo and Bartlett’s test 44 Table 10: Total variance explained 45 Table 11: EFA analysis result Of HRM Practice’s factors 46 Table 12: KMO And Bartlett’s test 49 Table 13: Total variance explained 49 Table 14: EFA analysis result of organizational commitment 50 Table 15: Correlations (independence variable with AC) 52 Table 16: Correlations (independence variable with CC) 53 Table 17: Regression model summary 55 Table 18: Anova (B) 56 Table 19: Coefficients(A) 56 Table 20: Hypothesis and research results 60 Table 21: Regression model summary 61 Table 22: Anova (B) 61 Table 23: Coefficients (A) 62 Table 24: Hypothesis and research result 65 Table 25: Mean of control variable vi LIST OF FIGURE Figure 1: Structure of the study Figure Research model 22 Figure Research process 34 Figure 1: Hypothesis and research results 65 ABSTRACT This study is to describe and investigate the relationship between human resource management (HRM) practices and organizational commitment in Cambodia The human resource management practice will be discussed here including Training and development, Compensation/incentive, Teamwork, and Performance appraisal In addition, the organizational commitment elements are including affective commitment and continuance commitment Finding of this study should be shared to, especially, HRM department and managerial level of the organization, so that they can configure and decide the way how future HRM practices oriented The study would, on the other hand, allow them to have better understanding of HRM practices and fully utilize their potentials for the effectiveness of the organization and, of cause, encourage employee commitment Key words: HRM practices, organizational commitments, Cambodia CHAPTER INTRODUCTION 1.1 SETTING OF THE STUDY Nowadays, Organizational changes are increasingly becoming a major component of everyday organizational functioning The basic principles of doing business successfully are fundamentally changing The historical boundary between customer, supplier and competitors is increasingly becoming blurred (Allio, 1993) Many organizations have responded to these competitive pressures by downsizing, restructuring and transformation, and thus created a less secure organizational climate Traditionally, product technology and process, accessible capital sources, and so on, were essential to win the competition; however, at present, these kinds of resources, suggested by Pfeffer (1994), fail to fulfil their roles to defeat competitors The decreased vitality of those primitive resources has drawn practitioners and academics’ attentions to explore other types of assets which can capture and retain competitive advantage and at the same time, are not easily imitated and copied by competitors (Barney 1991) The question of the kind of asset that can provide sustainability, competitive advantage, and superior organizational commitment has been asked and 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Please circle one suitable number for each statement: Extensive training programs are provided for individuals in their jobs at Strongly Strongly disagree agree ▼ ▼ 7 7 7 your firm Employees in their jobs will normally go through training programs every few years at your firm There are formal training programs to teach new hires the skills they need to perform their job at your firm Formal training programs are offered to employees in order to increase their promotability at your firm During problem solving sessions, your firm makes an effort to get all team members’ opinions and ideas before making a decision Your firm forms teams to solve problems and in the past years many problems have been solved through small group sessions Problem solving teams have helped improve manufacturing processes at your firm 82 Employee teams are encouraged to try to solve their problems as much as 7 possible at your firm Incentive system at your firm encourages employees to pursue company objective 10 Incentive system at your firm is fair at rewarding people who accomplish a company objective 11 Incentive system at your firm encourages people to reach company goals 12 Incentive system at your firm really recognizes people who contribute the most to the company 13 Your firm frequently does formal appraisals 14 Your firm uses objective data for appraisals 15 Your firm utilizes the appraisal results B in relation with your organization, to what extent you disagree or agree with the following statements? Please circle one suitable number for each statement: 16 I would be very happy to spend the rest of my career with the Strongly Strongly disagree agree ▼ ▼ organization 17 I really feel as if the organization 's problems are my own 18 The organization has a great deal of personal meaning for me 19 Right now, staying with the organization is a matter of necessity as 7 much as desire 20 It would be very hard for me to leave the organization right now, even if I wanted to 21 Too much of my life would be disrupted if I decided I wanted to leave 83 the organization now 22 I feel that I have too few options to consider leaving the organization 23 If I had not already put so much of myself into the organization, I might 7 consider working elsewhere 24 One of the few negative consequences of leaving the organization would be the scarcity of available job opportunities C There are following positions in the organization: (1) Director (2) Deputy director (3) Department manager (4) Department deputy manager (5) Employee Please select a suitable number for each of following questions: (a) What was your first position in the organization? (b) What is your present position? (c) Assuming that you will develop yourself according to your plans within the Organization, what you think will be the final position which you will reach? D Lastly, a couple of questions about you: Gender: □ Male □ Female What year did you start working? Year of birth: Year Year ………… What year did you start working in your present company? Year ………… ………… 84 What is your education level? a High School Graduate b Graduate c Undergraduate Thank you very much! d Other….…… 85 កំរងសំនរួ សូមេ រពជូន េ ក/អក, ែផកមួយៃនតំរូវ ចចំ សំេរច ល់ រេដម ីប យេពលពីរបី នកុ ង ប់ ទី រសិក រសិក គំេ ង រេឆយតបរបស់េ ខុ ំពិត ដ៏ វ នតំ ៃលរបស់េ វ។ កអកពិត ន រះសំ នកីេ កអក ន់ មនស រ ីក យ កុ ង ស់ របំេពញនូវសំនួរ ស់សំ ប់លទផលៃនគំ េ ង បសិនេបេ េដម ីជួយេ កអក យខុ ំ ង ំ មួល។ សូមែថងអំណរគុណ! ក ក់ទងនឺង និង បេ គ រ គប់ គងធន ងេ នមនុស េតកុ ងកំរ ិត មួយែដលអក យល់ សប រ ឺ មិនយល់ សប ម? សូមគូសរងង់មូលចំនួន១ ចំេ ះេលខ ែដលសម សប មួយនិង បេ គនីមយ ួ ៗ។ មិនយល់ សប យល់ សប ▼ ▼ ំង សង ១ កមវ ិធីបណ ុ ះប បុគលិក សហ ២ ក់ៗ ៣ ញ នផល់ជូន ១ ២ ៣ ៤ ៥ ៦ ៧ េរ ង ល់ ពីរ ១ ២ ៣ ៤ ៥ ៦ ៧ េដម ីបេ ង នបុគលិកថី ១ ២ ៣ ៤ ៥ ៦ ៧ ១ ២ ៣ ៤ ៥ ៦ ៧ ១ ២ ៣ ៤ ៥ ៦ ៧ ររបស់ពួកេគ េ កុ ង កុ ងសហ េ កុ ងសហ េ កុ ងតំ ល រ ផូ វ រ សំ ប់អនុវត រ ររបស់ពួកេគ សរបស់អក។ ល ព ផូវ កុង រ តវ រទទួល នផល់ជូនសំ ប់ បុគលិក ន ឧ សតេមងតំែណង សរបស់អក។ ក់ លេ ះ យប ម ទទួលយក នូវគំនិតេ មុននឹងេធ ល េ សរបស់អក។ ែដលពួកេគ តវ កមវ ិធី បណ ុ ះប ព តវ ត់ កមវធ ិ ីបណ ុ ះប បណ ុ ះប េដម ប ី េងនលទ ៥ នឆង កុ ងសហ នកមវ ិធី េ រ យ ំង សង សរបស់អក។ ំមង េ នូវជំ ៉ ងទូ លទ ំ ូ សំ ប់ បុគលិក ែតងែត រឺ បី ៤ ល មួយ រសំេរចចិត។ សហ បល់ របស់ស សរបស់អក ជិក កម ំងអស់ 86 ៦ សហ និងេ េ ៧ សរបស់អក កុ ងកំឡ ុ ងេពល៣ េ ះ យប កុ ងសហ េកត តវ អក នេឡងេ ចេធ នេដម េី កុ ងសហ អក ន ននូវេ ះ រ ពយុតិធម៌កុ ង លេ រផល់រ ៥ ៦ ៧ ១ ២ ៣ ៤ ៥ ៦ ៧ ១ ២ ៣ ៤ ៥ ៦ ៧ ១ ២ ៣ ៤ ៥ ៦ ៧ ១ ២ ៣ ៤ ៥ ៦ ៧ នលកណះច ស់ ១ ២ ៣ ៤ ៥ ៦ ៧ រ យតំៃលបុគលិក។ ១ ២ ៣ ៤ ៥ ៦ ៧ ះ យ អក ពិត ទទួល សរបស់អក េ ប ងេ ននូវេ លេ កុ ងសហ សរបស់ នសំេរច ក់ឧបតមេ កុ ងសហ យសំេរច សរបស់ ន នូវេ លេ ក់ឧ បតមេ កុ ងសហ សរបស់ នចូលរួមចំែណកេ ច នបំផុត េរ យៗែតងអនុវត រ យតំៃលបុគលិក ស់ទិនន័យែដល រ យតំៃលបុគលិក។ ក់ទងនឹង សហ គ យ សរបស់ រ។ សរបស់អកេ ប សហ កុ ងសហ ស។ លកណះផូ វ ស់សំ ប់ ម របស់ពួគេគែដល ន់សំ ប់អកែដល ល់ បុគលិកែដល សរបស់អក សហ រព ស។ សំ ប់សហ សហ ក់ផលិតកម ស។ បព័នេលកទឹ កចិតបុគលិក និង បេ ១ ២ ៣ ៤ យប ក់ឧបតមេ របស់សហ របស់សហ ខ ៥ ៦ ៧ ស កុ ង សំេរចេ អក េលកទឹ កចិតនិងជំរុញបុគលិក េ ១៥ ១ ២ ៣ ៤ នេ ស។ បព័នេលកទឹ កចិតបុគលិក ១៤ ៥ ៦ ៧ ក់ឧបតមេ បព័នេលកទឹ កចិតបុគលិក ១៣ យប សរបស់អក។ េលកទឹ កចិតបុគលិកកុ ង របស់សហ ១២ ១ ២ ៣ ៤ តវ នេលកទឹកចិត បព័នេលកទឹ កចិតបុគលិក ១១ ៥ ៦ ៧ េ ចន ះ សរបស់អក។ ំងបំផុតែដល ១០ ១ ២ ៣ ៤ នជួយបេងនទិនផល កមបុគលិក ៩ ំមុន ប ក េដម ីេ យ កមតូចៗ។ កមេ ៨ នបេងត កមពិ ស់លទផលៃន ស របស់អក េតកុ ងកំរ ិត ម? សូមគូសរងង់មូលចំនួន១ ចំេ មួយែដលអក យល់ សប រ ឺ មិនយល់ សប ះេលខ ែដលសម សប មួយនឹង បេ មួយ គនីមួយៗ។ 87 មិនយល់ សប យល់ សប ▼ ▼ ំង សង ១៦ ខុ ំនឹងរក ី យ កុ ង របស់ខុ ំ មួយនិងសហ ១៧ ខុ ំពិត ន ១៨ សហ ១៩ ឥឡូ វេនះ របស់ខួ នខុ ំ ក៏ដូច ២០ នឹង ស េសចកី ន រលំ ជីវត ិ របស់ខុ ំនឹង ២២ ខុ ំ សំេរចចិត េដម ី ២៣ ចង់ េផ ងេទ ត។ (១) មួយកុ ងចំេ នមុខ យក បុគលិក ពក មៃនឧ រដូច ងេ (២) ៉ង ស គឺ ំងសំ ប់ខុ ំេ ះបី ខុ ំចង់ ក់ ំង ន។ េ ប ខុ ំ នជំេរ សតិចតួច នចំ សេទខុ ំ មផលអវ ិជ យ ន រ មេ កុ ងសហ យករង ស់ កំ ចនឹងពិ ស ប ស។ ស។ ជីព ក៏ដូច រ ៧ ប ៃន ង ំ យចិត រេ ៥ ៦ ៧ ១ ២ ៣ ៤ ៥ ៦ ៧ ១ ២ ៣ ៤ ៥ ៦ ៧ ១ ២ ៣ ៤ ៥ ៦ ៧ បសិនេបខុ ំ ១ ២ ៣ ៤ ៥ ៦ ៧ រពិ ១ ២ ៣ ៤ ៥ ៦ ៧ ១ ២ ៣ ៤ ៥ ៦ ៧ ១ ២ ៣ ៤ ៥ ៦ ៧ រ ំ ច់ រ ៉ ងេ ចន េ េធ ឯកែនង កុ ង រ កេចញពីសហ ន។ ស ស (៣) ប ន យក ន ៥ ៦ ៤ កេចញពីសហ កុ ង ១ ២ ៣ ៤ ១ ២ ៣ រ រែដលកំពុងេកត រ សំ ប់ខុ ំ។ មួយសហ កេចញពីសហ ន់ ស លេ រ កេចញពីសហ មួយនឹងសហ គឺ ន របស់សហ ល់ខួ ន ចង់ ក រមណ៍ បសិនេបខុ ំមិន ២៤ ប ន អតន័យ របនេ សល់ កុ ង ស។ ល់។ សឥឡូ វេនះ។ ន យេពលែដលេ រមណ៍ ២១ គ រចំ ំង សង (៤) អនុ ប ន យក ន (៥) 88 សូមេ ជសេរ ស េលខ មួយែដលសម សប មួយនឹង បេ (ក) េតតួ ទីេលកដំបូងរបស់អក (ខ) េតតួ ទីបចុ ប នរបស់អក (គ) សនត់ េតអកគិត អីេ ទីចុងេ កុ ងសហ ងេ ម។ ស? អី? អកនឹងអភិ វឌ ខួ នអកេ តួ គ ង យែដលអកនឺង មែផន នេ ររបស់ខួ នេ ដល់ អី? កុ ងសហ ស, 89 ឃ ចុងេ យ សំនួរមួយចំនួន េភទៈ □ បស □ ក់ទងនឹងខួ នអកៈ ំកំេណតៈ សី េត ំ ែដលអក ប់េផ មេធ រ? េត ំ ែដលអក ប់េផ មេធ រេ េតកំរ ិតវប ធម៌របស់អក តឹមកំ រ ិត ក វទ ិ ល័យ ខ បរ ិ ំ ំ ក ុ ងសហ សបចុ ប ន ? ំ ? ប័ ត សូមែថងអំណរគុណ គ អនុបណិ ត ៉ង លេ ! ឃ េផ ងៗ ... within the organization being researched in order to induce and maintain organizational commitment from the employees Therefore, the relationship between human resource management practices and organizational. .. HRM practices that influence on organizational commitment in general and in order to determine the relationship between the two Therefore, the main goal of the research is to investigate the relationship. .. on the organizational commitment Therefore, in addition to the study on the relationship between human resource management practices and organizational 26 commitment, the control variables including