(Luận văn) the effect of transpormational leadership factors on organizational commitment, job satisfaction and trust in vietnamese state owned organizations

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UNIVERSITY OF ECONOMICS HO CHI MINH CITY

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International School of Business

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Pham Trong Kha

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THE EFFECT OF TRANSFORMATIONAL
LEADERSHIP FACTORS ON
ORGANIZATIONAL COMMITMENT, JOB
SATISFACTION AND TRUST IN VIETNAMESE
STATE-OWNED ORGANIZATIONS
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MASTER OF BUSINESS (Honours)

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Ho Chi Minh City – Year 2014


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UNIVERSITY OF ECONOMICS HO CHI MINH CITY

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International School of Business

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Pham Trong Kha
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THE EFFECT OF TRANSFORMATIONAL
LEADERSHIP FACTORS ON
ORGANIZATIONAL COMMITMENT, JOB
SATISFACTION AND TRUST IN VIETNAMESE
STATE-OWNED ORGANIZATIONS
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ID: 22120051

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SUPERVISOR: Dr. Pham Quoc Hung

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MASTER OF BUSINESS (Honours)

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Ho Chi Minh City - Year 2014

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TABLE OF CONTENTS

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ACKNOWLEDGEMENT

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ABSTRACT

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

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1.1 Research background ............................................................................................. 1

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1.2 Research objectives ................................................................................................ 3

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1.3 Significance of research ......................................................................................... 3
1.4 Research methodology and research scope ............................................................ 4

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1.5 Research structure .................................................................................................. 5

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CHAPTER 2: LITERATURE REVIEW ............................................................................... 6

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2.1 Transformational leadership ................................................................................... 6

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2.2 Relationship between transformational leadership factors and job satisfaction …8

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2.3 Relationship between transformational leadership factors and trust ...................... 11

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2.4 Relationship between transformational leadership and organizational

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commitment…………………………………………………………………………………12

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2.5 Relationship between idealized influence, empowerment and organizational

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Commitment. ......................................................................................................................... 14

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2.6 The conceptual model and hypotheses of the research .......................................... 17

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CHAPTER 3: RESEARCH METHODOLOGY ...................................................................19

3.2 Data collection and procedure ................................................................................ 21

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3.3 Questionnaire design .............................................................................................. 22

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3.1 Sample .................................................................................................................... 20

CHAPTER 4: DATA ANALYSIS AND RESULTS ............................................................ 27
4.1 Respondents’ demographics ................................................................................... 27

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3.4 Data analysis method .............................................................................................. 25

4.2 Reliability Analysis ................................................................................................ 28
4.3 Exploratory Factor Analysis (EFA)........................................................................ 30

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4.4 Regression Analysis ............................................................................................... 34

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4.4.1 Multiple Regression Analysis to define the effect of idealized influence,

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inspirational motivation, intellectual stimulation, individualized consideration on job

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satisfaction. ..................……………………………………………………………34

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4.4.2 Multiple Regression Analysis to define the effect of inspirational motivation,

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intellectual stimulation, individualized consideration on Trust ............................... 40

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4.4.3 Multiple Regression Analysis to define the effect of inspirational motivation,

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intellectual stimulation, individualized consideration on Commitment…………...43
4.4.4 Simple Regression Analysis to define the effect of idealized influence on

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empowerment..………….........................................................................................46

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4.4.5. Simple Regression Analysis to define the effect of empowerment on

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commitment………………………………………………………………………..47

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CHAPTER 5: CONCLUSION, IMPLICATIONS AND LIMITATIONS ............................ 51

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5.1 Conclusion and discussion ..................................................................................... 51

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5.2 Implications ............................................................................................................ 52

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5.3 Limitations and future research direction ............................................................... 53

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REFERENCES ...................................................................................................................... 55
APPENDICES ....................................................................................................................... 65

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Appendix B: Questionnaire (English Version)

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Appendix A: Guidelines for In-depth Interview

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Appendix D: Histogram, Normal Regression & Scatter plot of Dependent

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Appendix C: Questionnaire (Vietnamese Version)

(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations

LIST OF FIGURES

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Figure 2.1: A theoretical model

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Figure 3.1: Research Process

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Figure D-JS1: Histogram of Job Satisfaction

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Figure D-JS2: Normal Plot of Job Satisfaction

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Figure D-JS3: Scatter Plot of Job Satisfaction

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Figure D-TR1: Histogram of Trust

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Figure D-TR2: Normal Plot of Trust

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Figure D-TR3: Scatter Plot of Trust

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Figure D-CO1: Histogram of Organizational Commitment

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Figure D-CO2: Normal Plot of Organizational Commitment

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Figure D-EM1: Histogram of Empowerment

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Figure D-CO3: Scatter Plot of Organizational Commitment

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Figure D-EM2: Scatter Plot of Empowerment

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Figure D-EM2: Normal Plot of Empowerment

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(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations


(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations

LIST OF TABLES

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Table 3.1 Source of measurement scale

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Table 4.1: Sample Demographics.

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Table 4.2 Reliability test result

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Table 4.3 KMO and Bartlett's Test

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Table 4.4 Rotated Component Matrix

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Table 4.5 Total Variance Explained

Table 4.6 Correlations matrix of Job Satisfaction, Idealized influence, Inspirational motivation,

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Intellectual stimulation and Individual consideration

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Table 4.7 Model Summary of multiple regression analysis

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Table 4.8 ANOVA of multiple regression analysis

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Table 4.9 Coefficients of multiple regression analysis

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Table 4.10 Correlations matrix of Trust, Inspirational motivation, Intellectual stimulation and

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Table 4.12 ANOVA of multiple regression analysis

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Table 4.11 Model Summary of multiple regression analysis

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Individual consideration

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Table 4.13 Coefficients of multiple regression analysis

(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations

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Table 4.15 Model Summary of multiple regression analysis

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stimulation and Individual consideration

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Table 4.14 Correlations matrix of Commitment, Inspirational motivation, Intellectual


(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations

Table 4.16 ANOVA of multiple regression analysis
Table 4.17 Coefficients of multiple regression analysis

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Table 4.18 Model Summary of simple regression analysis

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Table 4.19 ANOVA of simple regression analysis

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Table 4.20 Coefficients of simple regression analysis

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Table 4.21 Model Summary of simple regression analysis

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Table 4.22 ANOVA of simple regression analysis

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Table 4.23 Coefficients of simple regression analysis

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Table 4.24 Summary of hypotheses testing result

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(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations


(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations

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(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations


(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations

ABSTRACT

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According to many previous studies, the effective leaders are one of the most

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important factors creating influences on the performance in the Vietnamese state-

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owned organizations;. The purpose of this study was to investigate the relationship

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between transformational leadership factors and job satsifactions, trust and

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organizational commitment in Vietnamese state-owned organizations. There are 208

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qualified respondents including 123 men (occupied 59 percent) and 85 women

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(occupied 41 percent), aged from 22 to over 40 years old. All of respondents have

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over 2-year working experiences and there are about 23% of respondents who are

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keeping at least Deputy Manager positions.

including

indealized

influence,

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motivation,

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factors

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The findings of the study indicated that transformational leadership
intellectual

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stimulation and individualized consideration have significant and positive correlations

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with job satisfaction, trust and organizational commitment.

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The research results have contributed to the literature and provided more

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evidences for the managers in their decisions of their workforce. However, the

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sample for the research is still limited due to the application of convenient sampling

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method and surveyed only in Ho Chi Minh City and Vung Tau city.

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Keywords: transformational leadership, indealized influence, inspirational motivation,

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(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations

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organizational commitment

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job satisfaction, trust and

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intellectual stimulation and Individualized consideration,


(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations

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CHAPTER 1: INTRODUCTION

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1.1 Research background

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The effective leadership is considered one of the most concerning challenges

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in the organizations and becomes a common topic for many discussions in recent

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years. Effective leaders could be understood as the ones who have the ability to

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create influence and know how to involve others, enabling them to act within the

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correct vision, mission and goals so that the organization heads in the right direction

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and uses the correct methods to get there (Einstein & Humphreys, 2001).

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In the private sector, the leadership style has been changed and updated to be

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more effective in operations but the Vietnamese state-owned organizations are still

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led in the old leadership style, which could be a big concern for Vietnam’s

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development in the future. According to Gates (2000), in the Vietnamese state-

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owned organizations, the environment is evaluated to be lacked most of the

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elements essential to a market-oriented economy. In general, it’s evaluated as an

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environment still lacks of the activeness and changes to improve the organization

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decades.

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performance in the fast development of the Vietnam market during two recent

forms a continuum, which describes the laissez-faire style of leadership at one end,

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The full range of leadership theory developed by Avolio and Bass (1994)

(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations

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transformational style of leadership resides. The laissez-fare style of leadership

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leadership, and finally moving to the opposite side of the continuum, the

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then toward the middle of the continuum appears the transactional style of


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describes a hands-off approach to leadership. Transactional leadership deals with an
exchange or transaction between the leader and follower, usually the leader outlines

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responsibilities and attaches rewards to the follower's compliance and fulfillment of

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obligations. In the meantime, the transformational style is different from

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transactional style because the leader engages the follower by looking for creative

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solutions to problems and treats each follower as an individual who deserves

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mentoring and coaching (Bass, 1997).
In respect of considering which style is best suited to motivate followers to

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achieve a higher level of performance, increase their job satisfaction and increase

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their commitment to the organization? Homrig (2002) stated that transformational

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model of leadership is best suited for today's and tomorrow's strategic

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environment". Waldman et al. (1990) stated that when a transformational leader

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finds him or herself in a non win-win situation, he or she will try to convert this

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situation to a win-win problem-solving situation. Thus, transformational leadership

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is one of critical solutions for the effective organizations.

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There are many previous researches which have studied the positive

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relationship between transformational leadership behaviors and job satisfaction,

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trust and organizational commitment in the workplace. However, the number of

organizations about this topic is very limited. Therefore, this research will focus on

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studies conducted in Vietnam and specifically in Vietnamese state-owned

(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations

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commitment in the Vietnamese state-owned organizations.

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workplace determinants including job satisfaction, trust and organizational

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investigating the link between transformational leadership factors and some

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In summary, the final goal of this research is to examine the relationships
among transformational leadership, organizational commitment, job satisfaction and

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trust, which could eventually help managers, leaders and workers in the Vietnamese

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state-owned organizations understand this relationship and convert this into higher

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performance for the organization.

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1.2 Research objectives

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The purpose of this study was to examine the relationship between

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transformational leadership factors, job satisfaction, organizational commitment and

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trust in the Vietnamese state-owned organizations. Particularly, the research will

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investigate:

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The relationship between factors of transformational leadership on job

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satisfaction

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The relationship between factors of transformational leadership on trust

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The relationship between factors of transformational leadership on

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organizational commitment

The mediating role of the empowerment to the relationship between the

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idealized influence and the organizational commitment.

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1.3 Significance of the research

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satisfaction, organizational commitment and the trust in the Vietnamese state-owned

(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations

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influences of transformational leadership factors on the employee’s attitudes job

re

This study contributes to leadership theory and practice in its examination of


(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations

-4-

organizations. The research also enhances the amount of information available to
leaders and allows leaders to respond to their followers' needs.

t
to
ng

1.4 Research methodology and research scope:

hi
ep
do

This study uses questionnaire to collect data. The survey questionnaire is

w
n

originally developed in English and then translated into Vietnamese. In-depth

ad

lo
interviews are then conducted with 10 people in order to modify the Vietnamese

u
yj
th

version of the questionnaire before the survey is implemented in mass. The next step

yi
pl

is analyzing the collected data. The data of this research is processed using SPSS

n
ua
al

software with three main stages. First, Cronbach’s Alpha is used to test the reliability

va

n

of the measurement scale. Then, the validity of the measurement scale will be checked

fu

m
ll

by Exploratory Factor Analysis (EFA). Finally, simple regression and multiple

n
oi

regression are employed as the main method for investigating the relationships among

t
ha
z

factors in the research model.

z
vb

j
ht

Respondents, who have been chosen to conduct the survey for this study, are

m

k

working for the state-owned organizations in Ho Chi Minh City and Vung Tau City.

ai
gm
om
l.c

1.5 Research structure

Lu

This study is organized into five chapters. It starts with the introduction chapter

an
n

va

which presents an outline of this research. This chapter includes background of the

methodology of data analysis is also mentioned. Chapter two reviews and synthesizes

(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations

y
te

also has a brief definition of key terms as well as scope of the research and

re

research, motivation for doing research, and research objectives. Besides, this chapter

(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations

-5-

the theories in the literature of 8 concepts, including 4 factors of transformational
leadership (idealized influence, inspirational motivation, individualized consideration,

t
to
ng

and intellectual stimulation), empowerment, commitment, trust and job satisfaction.

hi

ep

This chapter also describes research model and proposed hypotheses. Chapter three

do

introduces research methodology used to empirically test the research model. Chapter

w
n

ad

lo

four presents the results of data analysis. The final chapter discusses summarily the

u
yj
th

study’s core findings, suggests some recommendations for business strategy of
international luxury companies based on findings and finally points out some

yi
pl

limitations of the research.

n
ua
al
n

va
m
ll

fu
t
ha

n

oi
z
z
j
ht

vb
k

m
ai
gm
om
l.c
an

Lu
n

va

y
te

re

(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations


(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations

-6-

CHAPTER 2: LITERATURE REVIEW

t
to

This chapter mainly introduces the theories, which are proposed by many

ng

scholars in academic field, relate to each of factors in the model, research model of the

hi
ep

study, and propose the hypotheses for the research.

do
w
n

ad

lo

2.1 Transformational Leadership

u

yj
th

The Multifactor Leadership Questionnaire (MLQ) developed by Avolio and

yi

Bass (1995) provides an instrument to measure degrees of the existence oflaissez-

pl
as perceived

n
ua
al

faire, transactional and transformational styles of leadership

by

n

va

followers. Transformational leadership has four important features: Idealized

m
ll

fu

influence, Inspirational Motivation, individualized consideration and intellectual

n
oi

stimulation (Avolio et al., 1999; Bass & Avolio, 1993, 1994; Ismail et al., 2010; Pillai

t
ha

et al., 1999)

z
z

j
ht

vb

The concept of transformation was first time introduced by Burns (1978)

k

m

focusing on morals and ethics (Bass, 1985a, 1985b; Burns, 1978). In the mid-

ai

gm

1980, the paradigm of leadership shifted from transactional and charismatic

om
l.c

leadership to transformational leadership, since Bass refined theory of Burns

encourages human development and interaction and promotes collective motivation

n

va

and outcomes” (Jung & Sosik, 2002, p. 316).

an

Lu

(1978). In contrast to transactional leadership, “Transformational leadership

that followers want to achieve organizational success. Transformational leaders

(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations

y
te

re

Transformational leadership is the ability to influence and motivate others so


(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations

-7-

express a general interest in their followers and there is a mutual trust between
the leader and followers. Since the inception of the theoretical constructs that

t
to
ng

comprise transformational leadership, research has demonstrated the relationship

hi

ep

of transformational leadership to job satisfaction, effectiveness and organizational

do

commitment (Bass, 2000).

w
n

ad

lo

Idealized influence

u
yj
th

Charisma or idealized influence describes leaders who act as strong rolemodels for followers, and whom followers seek to emulate. These leaders have very

yi
pl

high standards of conduct, moral principles and ethical values (Aronson, 2001).

n
ua
al

They also provide their followers with a clear vision and a mission for their

va

n

organizations and, in turn, earn a high degree of respect and trust by their followers

m
ll

fu
(Bass & Avolio, 1994; Bass, 1999; Bass & Steidlmeier, 1999; Nahavandi, 2006).

t
ha

n
oi

Inspirational Motivation

z

For the purpose of this study, inspirational motivation refers to the leader's

z
vb

ability to motivate and inspire followers by supplying and offering challenges and

j
ht
k

m

meaningful work. The leader creates an atmosphere of team cohesiveness and

ai
gm

models a sense of optimism. Bass and Avolio (1994) observed that transformational

om
l.c

leaders inspire followers by clearly communicating expectations, motivating

n

va

the organizational goals and sharing a clear vision of the organization's future

an

Lu

followers to want to meet these expectations, and by demonstrating commitment to

Individualized Consideration

(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations

y
te

re

potential.


(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations

-8-

For the purpose of this study, individualized consideration refers to the
leader's ability to act as a mentor to organizational members by paying attention to

t
to
ng

each individual's needs, achievement, motivations and growth. Such leaders enable

hi

ep

their followers to develop their potential to higher levels than the followers

do

anticipated by delegating tasks, monitoring progress, checking to see if additional

w
n

ad

lo

support is needed and listening effectively. Bass and Avolio (1994) stated that a

u
yj
th

two-way exchange in communication is encouraged and management by walking
around work spaces is practiced.

yi
pl

Intellectual Stimulation

n
ua
al

For the purpose of this study, intellectual stimulation refers to the leader's

va

n

ability to motivate and stimulate followers to be creative and innovative, and to

m
ll

fu
constantly challenge the current state of the organization. Transformational leaders

n
oi

do not publicly criticize their followers and encourage them to have a different view

t
ha

z

from the leader. Bass & Avolio (1994) stated that new ideas and creative problem

z

are solicited from followers,

and finding solutions.

Followers are encouraged to

k

m

problems

j
ht

addressing

who are included in the process of

vb

solutions

ai
gm

contribute to solving problems, not creating problems.

om
l.c

2.2. Relationship between transformational leadership factors and job

y
te

(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations

re

perceptions of their surrounding work environment, which includes the leadership,

n

have about their job within their work environment. The attitude is based on the

va

For the purpose of this study, job satisfaction is the attitude that individuals

an

Lu

satisfaction


(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations

-9-

opportunities for growth, policies and procedures, working conditions, co-worker and
supervisor relationships and fringe benefits (Gibson et aI., 2003).

t
to
ng

Job satisfaction as defined by Herzberg'S two-factor theory (1966) states that

hi
ep

there are content (internal) and context (external) factors that measure an

do

w

employee's degree of job satisfaction. The content factors include the intrinsic

n
lo

ad

feelings of accomplishment and achievement, meaningful work, recognition and

u
yj
th

increased responsibility. The absence of these factors may not prove to be

yi

dissatisfying, but the presence of them may build strong levels of motivation and

pl

n
ua
al

job performance. The context factors include those factors such as pay, status,
fringe benefits, policies, procedures and interpersonal relations. The presence of

n

va
m
ll

fu

these factors may not necessarily motivate the individual, but the absence of them
will result in dissatisfaction (Gibson, Ivancevich, Donnelly, & Konopaske, 2003).

n
oi

t
ha

Chen (2005) describes job satisfaction as an emotional state resulting from

z

z

the evaluation of one's job that can be negative, neutral or positive. Roznowski and

vb

j
ht

Hulin (1993) suggests that an employee who maintains a negative or low level of

m

k

job satisfaction engages in four types of behavior. The employee may choose to use

ai
gm

work time to pursue personal tasks or steal. The employee may exhibit behaviors

om
l.c

that show a withdrawal from the job psychologically such as disengaging or not

Lu

attending functions or meetings. The employee may choose to be absent frequently,

an

n

va

leave the job or opt for early retirement. Finally, the fourth suggested behavior

(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations

y
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attempts to change the current situation, look for a different type of job, or accept a

re

associated with a negative level of job satisfaction deals with the employee making


(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations

- 10 -

demotion or transfer. All of these behaviors translate into higher costs for the
organization and lower productivity by the unsatisfied member.

t
to
ng

Another study conducted by Chen (2005) examined the relationship between

hi

ep

transformational leadership, transactional leadership, organizational commitment

do

and job satisfaction. The study's participants were selected from the IT department

w
n

ad

lo

of the Department of Research and Development from an Industrial Park in

u
yj
th

Shanghai, China. The sample consisted of 150 full-time employees. The results of
the study revealed that a positive relationship between factors of transformational

yi
pl

leadership and job satisfaction. This study suggests that the factors of

n
ua
al

transformational leadership creates an environment that increases job satisfaction

n

va

within the organization.

fu

m
ll

Furthermore, in a study of 687 participants selected from 21 secondary

n
oi

schools from Taiwan, Lee (2005) studied the relationship among the teacher's

t
ha

z

perceptions regarding their principal's degree of transformational leadership, their

z
j
ht

vb

organizational commitment and their job satisfaction. The study revealed that there

k

m

was a positive relationship between job satisfaction and all factors of

ai
gm

transformational leadership. The strongest correlations with job satisfaction were

om
l.c

teachers who perceived their principals possessing the transformational leadership

support and articulating a vision. Thus, the researcher would like to propose a

an

Lu

qualities of fostering the acceptance of group goals, providing individualized

n

va
H1. “There is a positive relationship between four factors of
transformational leadership (idealized Influence, inspirational motivation,

(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations

y
te

re

hypothesis below:


(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations

- 11 -

intellectual stimulation, individualized consideration) and job satisfaction in
Vietnamese state-owned organizations.

t
to

ng

H1-a. “There is a positive relationship between idealized influence and job

hi

ep

satisfaction in Vietnamese state-owned organizations.

do

H1-b. “There is a positive relationship between inspirational motivation

w
n

ad

lo

and job satisfaction in Vietnamese state-owned organizations.

u
yj
th

H1-c. “There is a positive relationship between intellectual stimulation and
job satisfaction in Vietnamese state-owned organizations.

yi
“There

is

pl

H1-d.

a

positive

relationship

between

individualized

n
ua
al

consideration and job satisfaction in Vietnamese state-owned organizations.

va

n

2.3 Relationship between transformational leadership factors and Trust

fu

m
ll

Recent researchers defined trust as “the willingness of a party to be

n
oi

vulnerable to the actions of another party based on the expectation that the other

t
ha

z

will perform a particular action important to the trustor, irrespective of the ability to

z

j
ht

vb

monitor or control that other party” (Mayer, Davis, & Schoorman, 1945, p. 712).

k

m

There are three types of trust - personality-based trust, institutional-based

ai
gm

trust, and cognitive trust (Powell, et al., 2004). Cognitive trust can be divided into

om
l.c

three categories to process and develop the trusting beliefs - unit grouping,

an

Lu

reputation categorization, and stereotyping (McKnight, Cummings, & Chervany,
1998).

(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations

y
te

Podsakoff, et al.’s work (1990), Jung and Sosik (2002) conducted a field study of

re

satisfaction (Podsakoff, Mackenzie, Moorman, & Fetter, 1990). In addition to

n

va
Transformational leadership is positively associated with trust and job


(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations

- 12 -

47 groups from four Korean corporations in order to exam the relationship between
transformational leadership, empowerment, group cohesiveness, collective-

t
to
ng

efficiency, and perceived group effectiveness.

hi
ep

Another study from a quasi-experimented study of 35 post-graduate students

do

found leadership, trust, and level of media richness were positively related to team

w
n

ad

lo

performance and team satisfaction (Cogbum, Zhang, & Khothule, 2002).

u
yj
th

Thus, the researcher would like to propose a hypothesis below:
H2. “There is a positive relationship between three factors of

yi
pl

transformational leadership (Inspirational Motivation, Intellectual Stimulation,

n
ua
al

Individualized

Consideration)

and

trust

in

Vietnamese

state-owned

va
n

organizations.

fu

m
ll

H2-a. “There is a positive relationship between inspirational motivation

n
oi

and trust in Vietnamese state-owned organizations.

t
ha

z

H2-b. “There is a positive relationship between intellectual stimulation and

z

is

a

positive

relationship

between

individualized

k

m

“There

j
ht

H2-c.

vb

trust in Vietnamese state-owned organizations.

ai
gm

consideration and trust in Vietnamese state-owned organizations.

om
l.c

2.4 Relationship between Transformational Leadership and Organizational

For the purpose of this study, organizational commitment refers to a belief

an

Lu

Commitment

organizational membership (Mowday, et al., 1982). It refers to congruence between

(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations

y
te

to exert effort on behalf of the organization and to maintain

re

willingness

n

va
in and acceptance of the goals and values of the employing organization, and a


(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations

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the goals of the individual and the organization whereby the individual identifies
with and extends effort on behalf of the general goals of the organization (Camp,

t
to
ng

1994).

hi
ep

Organizational commitment is characterized by a strong belief in and

do

acceptance of the organization's goals and values, a strong desire to maintain

w
n

ad

lo

membership in the organization and a willingness to exert considerable effort on

u
yj
th

behalf of the organization (Mowday, Porter & Steers, 1982).
Gentry (2005) conducted a quantitative study at a government agency with

yi
pl

208 participants. He examined the relationship among the transformational

n
ua
al

leadership behaviors and organizational commitment during a time of downsizing

va

n

at the agency. The study revealed a positive relationship

between the

fu

m
ll

transformational leader behaviors and organizational commitment.

n
oi

A quantitative study conducted by Yung Yu Lee (2005) examined

t
ha

z

transformational leadership behaviors and their relationship to organizational

z
j
ht

vb

commitment and job satisfaction among employees in 16 public high schools and

k

m

five private high schools in Taiwan. The study revealed a positive relationship

ai
gm

between transformational leadership style and organizational commitment. The
relationship

among

the

transformational

leader

om
l.c

strongest

behavior

and

acceptance of group goals.

an

Lu

organizational commitment was associated with the leader behavior of fostering the

(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations

y
te

samples, such as 228 employees in three different US organizations (Simon, 1994),

re

effect of transformational leadership on organizational commitment used different

n

va
Several previous studies applying a direct effect approach to examine the


(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations

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and 1,376 nurses in some US health organizations (Bycio et al., 1995), sales people
group in certain US organizations (Dubinsky et al., 1995). These studies found that

t
to
ng

the ability of leaders to properly use transformational behaviors had been a major

hi

ep

determinant of organizational commitment. Thus, we can hypothesize that:

do

H3. “There is a positive relationship between three factors of

w
n

ad

lo

transformational leadership (Inspirational Motivation, Intellectual Stimulation,

organizations.

yi

u
yj
th

Individualized Consideration) and job satisfaction in Vietnamese state-owned

pl

H3-a. There is a positive relationship between Inspirational Motivation

n
ua
al

and Organizational Commitment in Vietnamese state-owned organizations.

va

n

H3-b. There is a positive relationship between Intellectual Stimulation and

fu

m
ll

Organizational Commitment in Vietnamese state-owned organizations.

n
oi

H3-c. There is a positive relationship between Individualized Consideration

t
ha

z

Organizational Commitment in Vietnamese state-owned organizations.

z
vb

j
ht

2.5 Empowerment plays a mediating role in the relationship between idealized

k

m

influence and organizational Commitment.

ai

gm

om
l.c

In a transformational leadership model, empowerment is viewed as a

promotes high commitment HR practices (Menon, 2001; Spreitzer, 1995). For

an

Lu

proactive and strategic management practice that exists in an organization that

(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations

y
te

using their intellectuals and fullest potentials to overcome job obstacles,

re

controlling, making and sharing decisions to their followers will encourage them

n

va
example, the ability of leaders to delegate the power and responsibility of

(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations

- 15 -

understanding the targeted goals and supporting the organizational interests. As a
result, it may lead to achieved organizational strategy and goals

(Honold, 1997;

t
to
ng

Howell & Hall-Merenda, 1999; Lashley, 1999; Lee & Koh, 2001).

hi
ep

Empowerment has four dimensions: choice, meaningfulness, competence,

do

and process (Kirkman & Rosen, 1997). Also, Gom and Kanungo (1980) revealed

w
n

ad

lo

that the more meaningful an employee's job was, the more satisfied the employee

u
yj
th

was with his or her job. Naturally, employees will find more meaning in their jobs
when the scope of their activities is large (Griffin, 1991), which is often the case

yi
pl

with empowered work teams (Wellins et al., 1991).

n
ua
al

Jung and Sosik (2002) conducted a field study of 47 groups from four

va

n

Korean corporations in order to exam the relationship between transformational

fu

m
ll

leadership, empowerment, group cohesiveness, collective-efficiency, and perceived

n
oi

group effectiveness. The result of PLS analysis indicated a positive moderately

t
ha

z

strong relationship between transformational leadership, empowerment, group

z
j
ht

vb

cohesiveness, collective-efficiency, and perceived group effectiveness.

k

m

Several recent studies using an indirect effect approach have revealed the

ai
gm

mediating role of empowerment in organizational leadership literature. For

om
l.c

example, studies about transformational leadership practices that were conducted

hospital in Singapore (Avolio et al., 2004), and bank employees in several US

an

Lu

based on different samples and contexts, such as 520 staff nurses in a large public

transformational

styles

had

increased

their

followers’

(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations(Luận.văn).the.effect.of.transpormational.leadership.factors.on.organizational.commitment..job.satisfaction.and.trust.in.vietnamese.state.owned.organizations

y
te

practice

re

properly

n

va
banking organizations (Kark et al., 2003) showed that the ability of leaders to