INTRODUCTION
Research rationale
Human resources are crucial for businesses, particularly in the software industry, as they navigate the challenges of Industry 4.0 With increased mobility of talent, companies must focus not only on retaining employees but also on enhancing their work efficiencies in this evolving landscape.
According to the General Statistics Office, GDP growth in the second quarter and first half of 2021 is estimated at 6.61%, reflecting a 0.39% increase compared to the same period in 2020 Despite the global impact of the Covid-19 pandemic, which has severely affected socio-economic conditions worldwide, the Information Technology sector has continued to thrive during this challenging time.
Since the onset of the Covid-19 pandemic in March 2020, the IT market and recruitment demand have experienced various phases, including challenges, adaptation, and a resurgence of growth With heightened awareness and readiness for digital transformation, coupled with supportive government policies and competitive business initiatives, the industry has managed to regain stability and foster development Key economic indicators demonstrate that Vietnam continues to exhibit positive growth despite the ongoing impacts of the pandemic.
Total revenue of the ICT industry in Vietnam in 2020 reached 120 billion USD, up 7.1% compared to 2019, in which hardware reached 107 billion USD, software reached 5 billion USD ICT exports reached US$84.45
In the first quarter of 2021, the domestic ICT sector experienced a notable growth of 4.48% compared to the same period in the previous year, surpassing the 3.68% increase seen in the first quarter of 2020, despite the challenges posed by Covid-19 in certain areas This growth is significant as the ICT sector contributed approximately $2 billion, representing around 30% of total national exports and 3% of global ICT exports.
Vietnam's IT sector has experienced a remarkable 28% growth, highlighted by a successful 5G technology pilot and a position among the top 10 countries adopting the latest Internet protocols Significantly, Vietnam ranks 2nd globally in mobile phone and component production and 10th in electronic component manufacturing, contributing to the ICT sector's largest trade surplus in the Vietnamese economy.
According to Dr Vu Tien Loc (2020), Vietnam’s labor productivity in
In 2020, the labor productivity in Vietnam, measured at constant prices in 2010, rose by only 5.4%, marking the lowest growth rate in the past five years compared to a 6.2% increase in 2019 At current prices, this equated to 117.94 million VND per laborer, or approximately 5,081 USD Despite this modest growth, Vietnam's labor productivity increase outpaced that of other countries in the region.
Vietnam’s labor productivity has improved markedly, with an average increase of 5.8% per year in the period 2016-2020, higher than the period 2011-
2015 (4.3%) and exceeding the set target (5% ) The average contribution of total factor productivity (TFP) in 5 years is about 45.2% (the set target is 30- 35%)
The success of a business heavily relies on the contribution of talented and loyal employees To attract and retain these individuals, it is essential to implement effective policies, including competitive salaries and bonuses Moreover, strong leadership plays a crucial role in enhancing employee quality and fostering loyalty within the organization.
Phuc Thanh Vietnam Joint Stock Company's software solutions center has experienced significant staff turnover since its establishment in 2015 with just five employees By 2017, the team grew to over 30 programmers, but by 2018, the workforce had decreased to 20 due to a 40% resignation rate As of 2020, only 15 employees remained This high turnover, coupled with the presence of ineffective workers, has resulted in a daily labor productivity rate of less than 50% as measured by the Overall Labor Effectiveness (OLE) method, leading to low work efficiency, project delays, and diminished quality.
The Phuc Thanh Vietnam Joint Stock Company is experiencing work ineffectiveness and a wave of layoffs primarily due to employee attitudes and heightened competition within the IT industry This environment has fostered a psychological inclination among employees to seek new job opportunities, as they perceive an inequality between the treatment of existing staff and that of new hires.
In addition, the issue of salary, working environment, and impact of leader competency wasalso the cause of the quit rate and affected the employee’s performance
This research focuses on "The Impact of Leader Competency on IT Employees’ Job Attitude and Job Outcomes: A Case Study of Phuc Thanh Corporation, Vietnam." The aim is to explore how leadership skills influence the job satisfaction and performance of IT employees, contributing to the enhancement of the company's human resource attraction, retention, and development strategies.
Review of previous researches
According to research by Eric Swanson et al (2020), they define leader competency as the leader’s knowledge, ability, skills, and behavioral capabilities to perform the job
The behavioral and contingency schools of leadership emphasize that effective leadership significantly impacts subordinates' work attitudes Successful leaders exhibit specific behaviors that can be learned and developed through practice, rather than being innate traits or talents Pioneers of this theory, Blake & Mouton (1964) and Hersey & Blanchard (1988), established the foundational principles of the behavioral school of leadership.
Scholars have identified two primary types of leadership behaviors in small groups, often using varying terminology to describe them One notable behavior is task-oriented leadership, which the Ohio State studies referred to as "Production-Oriented Behavior." Additionally, Bowers and Seashore (1966) contributed to this classification by introducing their own terminology for similar leadership traits.
“Achievement Oriented” For Relations oriented Leadership Behavior, Ohio State studies used “Consideration Behavior”, “Employee-Oriented” and
“People-Oriented” was used by Fleishman (1967) and Blake and Mouton
(1964) whereas “Interaction-Oriented” by Bowers and Seashore (1966)
Task-oriented behavior in leadership focuses on key functions such as planning, scheduling, coordinating activities, and offering technical assistance In contrast, relations-oriented leadership emphasizes support and helpfulness towards subordinates, fostering trust and confidence while maintaining a friendly demeanor and striving to understand their challenges (Yukl, 2010).
Although authors studied the impact of leaders’ behavior on job attitudes and job outcomes of employees in travel, sale etc they haven’t focused on the industry information technology
According to social capital theory, a network of internal relationships serves as a crucial resource for employees, enhancing their access to job-related resources such as coaching and vital information Consequently, employees with strong relational ties tend to exhibit improved job performance compared to their peers (Chen & Lovvorn, 2011; Lee et al., 2015).
Employees perform better in a workplace where they feel safe and secure, fostered by positive relationships with their leaders Leaders who possess strong interpersonal skills create a relationship-focused organizational culture, enabling employees to access essential job-related resources and concentrate on their tasks, ultimately enhancing job performance Research by Lee et al (2011) indicates that leaders' competencies significantly influence employees' performance, as effective leaders can evoke positive emotions in their team members, further boosting their productivity.
Research objectives
The objectives of this study are as follows:
- Clarify impacts of leader competency on employees’ job attitudes and job outcome
- Suggest solutions to improve work efficiency of the information technology staff at Phuc Thanh Vietnam Joint Stock Company
- To accomplish the above objectives, the author proposes research tasks as below:
1 Analyze the impact of leader competency on IT employees’ job attitude and job outcomes
2 Propose recommendations to improve the leader capacity of managers, job attitudes, and job outcomes of the IT employees at Phuc Thanh Vietnam Joint Stock Company.
Research methodology
Design and methodological approach: Data is collected from more than
100 respondents using questionnaires with a grading scale from 1 to 5
Research subject is the relationship between leader competency and job outcomes changing IT employee’s attitude toward work
The relationship between the capacity of the leader with the working attitude and work results of the IT employees at Phuc Thanh Vietnam Joint Stock Company
The thesis employs a mixed-method approach, integrating both qualitative and quantitative research Qualitative research focuses on an interpretative paradigm that highlights subjective experiences and their significance to individuals, as noted by Adrijana Biba Starman (2013).
Qualitative case study methodology allows for an in-depth examination of complex phenomena within specific contexts, utilizing diverse data collection methods such as interviews, questionnaires, personal observations, and document analysis The qualitative analyses conducted in case studies are heavily influenced by their contextual settings, and the researcher's observational skills play a crucial role in interpreting results However, the absence of control comparisons can complicate the establishment of causal relationships, and findings from a single case may pose challenges for generalization to broader contexts.
This article presents data gathered from employees of Phuc Thanh Vietnam Joint Stock Company using a questionnaire with a 5-point Likert scale, where 1 indicates strong disagreement and 5 indicates strong agreement Each variable is assessed based on knowledge, ability, and behavior, following the evaluation framework established by Northouse.
The quantitative method is employed to analyze evaluation data through SPSS software, facilitating hypothesis testing and generating statistical results This process aims to provide a comprehensive overview of the human resources situation at Phuc Thanh Vietnam Joint Stock Company, ultimately guiding the development of effective solutions.
Research scope
Scope of space: Phuc Thanh Vietnam Joint Stock Company
With primary data, the collection process is prepared and implemented from October 2019 to June 2020
Secondary data are corporate reports, national statistical bases collected from 2015 - 2020, documents collected from outside through textbooks, published works, news on the internet, reference essays…
Scope of content: The Impact of leader competency on IT employees’ job attitudes and job outcomes.
Hypothesis
H1 Leaders’ competency positively impacts job attitudes
H2 Job attitudes positively impact job outcomes
H3 Leaders’ competency positively impacts job outcomes
THEORETICAL BACKGROUND
Introduction
Leadership encompasses various aspects, particularly emphasizing leader competency in understanding governance phenomena within small and medium-sized enterprises (SMEs) in Vietnam, with a specific focus on the information technology sector.
Leadership is a social influencing process where leaders encourage voluntary participation from team members to achieve organizational goals It involves coordinating individual activities and directing behaviors to align with the objectives of the organization.
Besides loyal staff, the success of an organization either comes from leaders’ contributions
The leaders of an organization are not the ones urging their staff to work but encouraging, guiding, and assisting the staff to achieve set targets
Many businesses face challenges due to weak management and leadership competencies A strong leader serves as a benchmark for employees, fostering greater trust and confidence By embracing a clear understanding of their role, leaders can discover effective strategies to guide and inspire their teams.
Effective leaders must deeply understand their team members' strengths to ensure tasks are completed successfully Their role involves formulating strategic plans that drive sustainable growth within organizations To achieve this, leaders must make informed decisions by analyzing their organization's strengths, weaknesses, opportunities, and threats, while also demonstrating decisiveness and insight Additionally, successful leaders excel at rallying their teams around common goals, fostering collaboration and productivity.
Leaders must effectively embody key elements such as strategic vision, strategic thinking, and the ability to leverage psychological and corporate execution factors to successfully guide others toward achieving their goals.
Effective employee motivation is a crucial leadership skill, as unmotivated workers tend to be less efficient To foster motivation, leaders should understand their employees and cultivate a supportive work environment A company's work atmosphere is shaped by its administrative policies and employee attitudes An open and collaborative environment encourages staff to enhance their skills and capabilities, ultimately attracting employees who align with the company's objectives.
Based on prior research (Asree, Zain, & Rizal Razalli, 2010; Boyatzis
& Ratti, 2009), our study defines leader competency as a leader's knowledge, ability, skills, and behavioral capabilities to perform the job
This approach emphasizes the leader's performance capabilities, skills, and abilities, distinguishing it from traditional leadership styles that focus primarily on how leaders influence their followers.
One significant advantage of the competency approach is its ability to enable organizations to identify, develop, and evaluate the essential skills, abilities, and performance capabilities needed for leaders to effectively execute their roles.
Research by Sengupta, Venkatesh, and Sinha (2013) identifies three key dimensions of competency essential for assessing a leader's effectiveness: person, job, and role The person-focused competency emphasizes a leader's values, motivation, attitude, and other personal traits that contribute to their overall effectiveness.
Job-related competency is concerned with whether a leader is efficient at fulfilling the tasks associated with the job Role-focused competency is
Competency-related studies highlight the importance of an integrative approach that encompasses various dimensions of competency to fully understand their impact A key element of this competency framework is a leader's social relationships, often referred to as social intelligence competency or social resource, which plays a crucial role in effective leadership (Boyatzis & Ratti, 2009; Lustri, Miura, & Takahashi).
Leader competency
Leadership transcends titles and positions; it is defined by the ability to achieve goals through others True leaders are competent, capable, and eager to learn, adept at overcoming challenges and solving problems effectively.
Research indicates that a leader's competence is crucial for boosting employee productivity Skilled staff are valuable assets, and effective leadership significantly influences their performance.
Research by Coleman (1990) and Strửmgren et al (2017) emphasizes that the relationships between managers and subordinates are crucial for effective organizational leadership This highlights the importance of leaders' capabilities in fostering strong connections with their staff, as noted by Eric Swanson and others Robert Katz's competency research model (1955) identifies three essential skills for effective leadership: professional skill, human resource management capability, and thinking ability Katz asserts that thinking ability is particularly vital for leaders to navigate challenges and drive organizational success, as discussed in his influential work "Skills of an Effective Administrator" published in the Harvard Business Review.
Effective leadership requires the ability to develop a clear vision and strategic direction for the organization As leaders ascend to higher positions, their overall thinking skills become increasingly crucial Inadequate thinking abilities can negatively impact employee morale and potentially jeopardize the organization's success.
M.D.Mumford, S.J.Zaccaro, F.D.Harding, T.O.Jacobs, and E.A.Fleishman (2000) created an “ability model” intending to identify the relationship between knowledge and ability of leaders and their efficiency
Leader competency encompasses essential skills such as problem-solving, knowledge, and assessment capabilities Effective problem-solving involves a leader's ability to identify issues, gather and analyze relevant information, and propose viable solutions for significant challenges.
Effective leadership hinges on the ability to judge and assess individuals within an organization, enabling leaders to understand people and societal dynamics This awareness fosters collaboration in problem-solving and facilitates the implementation of organizational changes Leaders must empathize with diverse perspectives, recognize each member's role, and adapt their approach with flexibility and sensitivity Furthermore, strong communication skills are essential for guiding and supporting team members in achieving their goals.
Finally, personality has effects on leaders’ ability improvement An open, tolerant, understanding personality has an influential and decisive impact on solving problems in the organization
Research by Billings et al (2019), Boyatzis (2009), Mau (2017), and Boyatzis and Ratti (2009) identifies three essential competencies for effective leadership: cognitive intelligence, emotional intelligence, and social intelligence.
Leaders lay effects on subordinates based on leader competency, knowledge, and behaviors of the leaders Those competencies have direct effects on employees’ work attitudes and performance
The author intends to take surveys on leaders’ related competencies and their effects on employees’ job attitudes and job outcomes.
Job attitudes
Software projects require meticulous planning and the use of various tools and support processes, such as the Agile methodology with Scrum for development Despite these efforts, many projects fail to meet expectations, primarily due to ineffective resource management and strained relationships between leaders and their teams Often, well-meaning leaders inadvertently create challenges that they fail to acknowledge, impacting overall performance.
Leaders have excessive observation as they always stand behind their employees to urge them instead of finding solutions together with the employees
Leaders cannot build a collective, group working environment
Leaders always raise individuals but forget the collective Work results do not come from an individual but the whole collective
Leaders always focus on work results while ignoring or disregarding employees’ working spirit, coordination between members in a group
Effective leadership fosters employee happiness and enthusiasm Managers must cultivate relationships and an environment that promotes both individual growth and collective success To inspire their teams, it is essential for managers to understand the best practices and pitfalls in motivating their staff.
The following model shows the correlation between leaders and employees’ job attitudes and outcomes:
It is obvious from the prior research that a project manager’s role is far more critical for the success of a project than any other stakeholder (Green,
Numerous studies have examined how leaders' behaviors affect employees' job attitudes and outcomes across various sectors, including tourism and sales In the software development industry, project managers prioritize two key elements: technical skills and human factors Technical skills encompass tools, programming languages, and databases essential for the development process, while human factors involve team members' capabilities, specializations, and experience Trust among team members is crucial, as it fosters effective interactions both within the team and between team members and management This trust significantly impacts project success; without it, project managers may encounter various challenges that could jeopardize the project's outcome.
Job satisfaction as illustrated by Stephen, Timothy, and Sanghi (2005) is the set of all the feelings held by an individual towards his/her job that
Leaders' behaviors significantly impact employee satisfaction, which is essential for meeting needs and expectations (Saif UR Rehman et al., 2016) A decline in satisfaction can result in decreased work spirit, lower commitment, and diminished performance among employees.
Job satisfaction is a key indicator of employee attitudes, reflecting how individuals evaluate their experiences within an organization It plays a crucial role in enhancing commitment, boosting performance, and reducing turnover and absenteeism among employees (Rezvani et al., 2016; Lambert & Paoline, 2008).
Job commitment can be understood as the maintenance of a long-term relationship between employees and their organization/company
Ellemers (1998) described job commitment as a motivation of one’s personal advancement in his/her profession
Effective leaders play a crucial role in influencing and motivating their employees, driving both project and organizational success The behavior of leaders directly impacts their subordinates' job satisfaction and commitment to their work.
According to Van den Berg (2004), the leadership behavior of managers significantly influences their subordinates' job commitment and serves as a true indicator of the relationship between employees and their managers, ultimately fostering organizational coherence.
Employees lacking commitment often experience job dissatisfaction While job commitment is crucial for employee retention, it can occasionally lead to decreased job satisfaction Hence, fostering a balance between commitment and satisfaction is essential for a productive workplace.
15 commitment shows a positive mutual relationship between parties, between leaders and subordinates, between organizations and staff
Research by Elloy et al (1991) describes that “job-involved individuals are more likely to be satisfied with, and thus more committed to, their jobs and organizations”
Effective interaction between managers and colleagues is essential for project success, fostering deeper employee engagement and commitment This engagement leads to improved performance, making managerial behaviors a key indicator of employees' job involvement.
Studies show that employees’ dynamic job involvement leads to high performance as well as high job commitment
According to research by Keller et al (1997), job involvement serves as a more effective predictor of performance for employees dedicated to their individual professions rather than those who are primarily loyal to their organizations This finding highlights the significance of job involvement, particularly for knowledge workers engaged in specialized roles.
From theoretical researches, the author gives out a hypothesis:
H1 Leader competency positively impacts job attitudes
Job outcomes
Job outcomes encompass employee job retention and performance, highlighting the impact of a leader's competency throughout the working process Effective leaders with the right skills can significantly enhance employee retention and improve overall job performance.
Experiments explain that job retention is the period that an employee works at a company As mentioned in the above studies, leaders’ behaviors
16 involve employees’ job satisfaction and retention as discussed by Levinson
Leaders' behaviors significantly enhance job performance and employee engagement, as demonstrated in a 1965 study By actively considering suggestions from subordinates, organizations can effectively decrease employees' intentions to leave, fostering a more committed workforce.
Effective leadership and clear direction play a crucial role in improving employee retention According to Saif UR Rehman et al (2016), the behaviors of leaders significantly influence staff commitment and directly impact their decisions to remain with or leave the organization.
According to Levinson (1965), there is a significant link between a leader's behavior and voluntary employee turnover, as subordinates often interpret a leader's actions as reflections of their intentions within the organization.
Job performance is assessed by the quality of an employee's completed tasks, which includes meeting deadlines, maintaining high standards, and minimizing risks and errors Additionally, the behavior of leaders plays a significant role in influencing employees' job performance.
Research indicates that managerial leadership behavior significantly affects employee performance and organizational culture Tsai et al (2009) highlight that a manager's actions directly influence task performance, while McColl-Kennedy (2002) emphasizes that leader behavior can lead to employee dissatisfaction, which adversely affects job performance Additionally, Ogbonna (2000) found that leadership behavior plays a crucial role in shaping organizational culture, further impacting subordinate performance.
Different leader behaviors cause effects on subordinates’ performance as well as their job satisfaction and commitment
From theoretical researches, the author gives out hypotheses 2 and 3 as follows:
H2 Job attitudes positively impact job outcomes
H3 Leader competency positively impacts job outcomes.
The relationship between leader competency, job attitudes, and job outcomes
Research indicates a strong link between leader competency and employee job attitudes and outcomes Competent leaders who exhibit positive behaviors significantly enhance job satisfaction, retention, and performance (Rapp et al 2006) Furthermore, the behaviors of leaders are influenced by the commitment of employees to the organization and the overall success of projects.
"Effective leadership is built on strong relationships, as gaining the consent of subordinates leads to positive changes within the organization When employees feel connected and engaged, they are more likely to actively participate and perform at higher levels, rather than just following orders Competent leaders foster harmony and inspire their teams, resulting in improved job attitudes and outcomes for both the organization and individual projects."
In the realm of software development, effective leaders play a crucial role by providing guidance, fostering relationships, and staying abreast of the latest techniques and solutions They are responsible for sharing knowledge, conducting training, and identifying qualified individuals to nurture as the next generation of leaders.
Suggested research model
From the research references overview, the author proposes a research model as follow:
This study examines the impact of leader competency on employees' job attitudes and outcomes through a survey conducted among employees at Phuc Thanh Vietnam, a software development company Data collection involves interviews and multiple-choice questions, which are assessed on a grading scale from 1 to 5, where 1 indicates strong disagreement and 5 indicates strong agreement.
The grading scale for each variable is evaluated following aspects, including knowledge, ability, behavior based on the likert-type scale by Northouse (2018)
Following data collection, Exploratory Factor Analysis (EFA) and Structural Equation Modeling (SEM) will be employed prior to inputting the data into SPSS software for statistical analysis This approach aims to provide a comprehensive overview of the human resource situation at Phuc Thanh Vietnam, facilitating the development of effective solutions.
In this thesis, the author uniquely combines Exploratory Factor Analysis (EFA) and Structural Equation Modeling (SEM) to analyze data from Phuc Thanh Viet Nam Jsc simultaneously By integrating both dependent and independent variables within a single factor analysis, the study effectively utilizes the derived factors to support the dependent variables.
20 relationships is not appropriate (Joseph F Hair, Jr University of South Alabama et al, 2018)
CFA can be justified using the same data as EFA when the goal is to demonstrate fit indices for comparison, explore modification indices to refine the model, and analyze covariances between factors However, using CFA merely to show that a model fits the data or to support a theory is inadequate, as it represents a weak test of model fit due to reliance on the same dataset from the EFA (Behacad, 2014).
CHAPTER 3: APPLICATION OF THEORY OF PHUC THANH
Research design
This research employs both qualitative and quantitative methods to gather data from employees of Phuc Thanh Vietnam Joint Stock Company The qualitative data is collected through interviews, while the quantitative aspect utilizes a 5-point Likert scale questionnaire, ranging from 1 (strongly disagree) to 5 (strongly agree) Each variable is assessed based on knowledge, ability, and behavior, following the framework established by Northouse (2018).
The quantitative method involves collecting evaluation data and utilizing regression and exploratory factor analysis (EFA) through SPSS software to analyze the statistical results This approach aims to provide a comprehensive overview of the human resources situation at Phuc Thanh Vietnam Joint Stock Company, ultimately guiding effective solutions.
The success of a company heavily relies on the dedication and loyalty of its exceptional staff To attract and retain these valuable employees, it's essential for leaders to not only offer competitive wages, bonuses, and benefits but also to effectively execute business strategies that enhance employee performance and foster loyalty.
At Phuc Thanh Viet Nam Joint Stock Company, human resource changes are most significant in the software development department In
2015, the software development department was established with 5 members
In 2018, the number of programmers at the department decreased to 20 from
30 in 2017 (resignation rate 40%) and to 15 in 2020 Besides the wave of resignation, the department was also faced with the inefficient performance
22 of its members Labor productivity in a day was not more than 50% (according to the OLE – Overall labor effectiveness method), leading to poor work outcomes
The poor performance and high resignation rates in the software development department at Phuc Thanh Viet Nam Joint Stock Company can be attributed to several factors, including the leader's inadequate competency and the employees' negative job attitudes There is a perceived inequality between current and new employees, contributing to dissatisfaction Additionally, changes in the work environment and increasing competition for talent among software companies further exacerbate the issue In the era of digital transformation, the demand for skilled human resources in the information technology sector is rising, making it crucial for companies to address these challenges effectively.
The following questions need to be answered in the scope of this study: How does leader competency impact employees’ job attitudes?
How does job attitudes impact employees’ job outcomes?
Data collection
Data collection is the process of collecting and measuring information about variables, allowing to answer related questions and evaluate gained results
This research examines the influence of leader competency on employees' job attitudes and performance To gather data, a survey was conducted at Phuc Thanh Vietnam Joint Stock Company, utilizing in-depth interviews and multiple-choice questions directed at current employees The responses were assessed using a 5-point Likert scale, ranging from 1 (strongly disagree) to 5 (strongly agree).
105 questionnaires are distributed to the staff of Phuc Thanh Viet Nam Joint Stock Company The answer rate is more than 95% and the data is collected in approximately 2 weeks
This method involves the collection and analysis of numerical data to evaluate and validate hypotheses The gathered data serves as evidence to either support or refute the proposed theories.
After data from the questionnaires are collected, they are checked and analyzed by the SPSS software to issue the result
Both correlational and experimental studies are essential for officially testing hypotheses and making predictions using statistical methods The findings from these studies can be generalized to larger populations, depending on the sampling techniques employed.
Once data is collected, it must be processed prior to analysis For instance, survey data may be digitized to facilitate the use of descriptive statistics or inferential methods to effectively address the research questions.
Descriptive statistics summarize data by highlighting average values and changes, while visual tools like charts, scatter plots, and frequency tables help to illustrate data trends and identify any anomalies.
The qualitative method enables researchers to gain insights into human behavior and the societal and cultural contexts that shape it By focusing on subjective elements such as awareness, feelings, and motivations, this approach seeks to uncover the underlying reasons for various behaviors.
A case study, commonly utilized in social sciences, focuses on a singular issue within a specific context This research will concentrate on the software personnel at the Software Solutions Center of Phuc Thanh Vietnam Joint Stock Company.
3.2.2 Introduction to Phuc Thanh Vietnam Joint Stock Company and Software solutions center
Established in 2005, Phuc Thanh Vietnam Joint Stock Company evolved from its predecessor, Phuc Thanh Joint Stock Company, founded in 1999 Over the years, the company has experienced significant growth, transforming into a diversified corporation with key divisions in Technology and Trading.
Figure 3.1 Organizational chart of PhucThanh Vietnam Jsc
Phuc Thanh Viet Nam’s key businesses:
Phuc Thanh ICT (PT ICT) specializes in consulting, providing, and deploying integrated Information Technology and Telecommunication systems and infrastructures for governmental clients, including ministries, committees, and branches, as well as enterprises nationwide.
Phuc Thanh Media (PT Media): Consulting, providing, and deploying integration of professional stage audio, lighting systems for major customers in the whole country
Phuc Thanh Technology (PT Technology): ): Consulting, providing, and deploying integration of equipment systems for specialized Industries such as Electricity, Oil and Gas, Aviation, Cement, Mineral Coal, etc
Phuc Thanh Solutions (PT Solution): Providing Packaged Software products, on-demand software design and development services, outsourcing services e.g, to domestic and international customers
Phuc Thanh Distributions (PT Distributions) specializes in providing high-quality imported consumer products with a transparent origin for the domestic market The company also focuses on developing and operating comprehensive e-commerce platforms that include essential services such as warehousing, transshipment points, shipping, delivery, and payment solutions.
Phuc Thanh Investment (PT Investment): Investing in fields, businesses that bring efficiency to the general development strategy of Phuc Thanh Viet Nam
Phuc Thanh Viet Nam embodies a strong startup spirit, driven by a skilled management team and leading industry experts Our dynamic and creative staff, combined with a robust knowledge base, ensures that we are dedicated to delivering exceptional value, products, and services to our customers.
Phuc Thanh Vietnam values collaboration with esteemed customers, technology partners, and trade associates, working together to achieve mutual success on the path of development in Vietnam and beyond.
As Vietnam increasingly integrates into the global market and experiences rapid advancements in information technology, opportunities for innovative products, services, and business models continue to expand However, this growth brings challenges, including heightened competition and the necessity for sustainable development across various dimensions such as customer satisfaction, internal operations, and financial stability.
The leadership and management team at Phuc Thanh Vietnam must consistently recognize market opportunities and challenges while assessing the organization's strengths and weaknesses This awareness is crucial for developing an effective company strategy that leverages advantages to capitalize on opportunities and addresses disadvantages to mitigate challenges.
Through this strategic orientation, Phuc Thanh Viet Nam expects to serve its Customers in the best way
To provide customers with cutting-edge solutions, products, and services, we prioritize the development of strategic partnerships with leading global manufacturers and technology firms Over the years, our strong collaborations with a robust network of partners have enabled Phuc Thanh Vietnam to successfully implement numerous complex technological projects, solidifying our reputation and brand loyalty among customers.
Figure 3.2 Major partners of PhucThanh Vietnam Jsc
Phuc Thanh Solutions (PTS) – established in 2015 as a member of
Phuc Thanh Vietnam JSC – specialized in providing software solutions and applications to Governmental customers and domestic and foreign enterprises, including:
Products: Packaged software products for customers at different scales
Services: design and develop on-demand software (software outsourcing) for domestic customers; Outsourcing services for foreign markets (Japan, The U.S, etc)
Construct measurements
With the interviews and questionnaires used in the survey, the grading scale is used to assess the following researches:
Leader knowledge: Includes questions related to professional knowledge of
Information Technology and management A five-point Likert-type scale (1 Strongly disagree to 5 Strongly Agree)
Leader behaviors play a crucial role in shaping employee job attitudes, with a focus on task orientation and its impact To assess these behaviors, a grading scale ranging from 1 (Strongly Disagree) to 5 (Strongly Agree) is utilized, based on the questionnaire proposed by Northouse (2018).
Job Satisfaction: Is measured using six items selected by Agho, Price, and
In 1992, Mueller refined the 18-item index originally created by Brayfield and Rothe in 1951, selecting key items that assess job satisfaction This scale features statements such as "I find real enjoyment in my job" and "I feel fairly well satisfied with my job," which effectively gauge an individual's overall contentment in their work environment.
Job Involvement: The questions for Job involvement include: how employees perform their tasks and if their work outcomes are recognized and praised by leaders Richardson (Richardson & Vandenberg, 2005)
Job commitment is assessed through various key questions, including employees' willingness to exert effort and work overtime to ensure project success, their motivations for staying with the company, and their readiness for extended business travel These factors are evaluated using the 15-item Organizational Commitment Questionnaire (OCQ) developed by Porter et al in 1974.
Job retention is assessed through questionnaires that explore employee comfort with their current positions, their desire for job changes, and whether their roles align with their career objectives Utilizing a 9-item scale developed by Jenkins (1993), these questions provide valuable insights into employee satisfaction and retention factors.
Personal variables: The demographic questions in the questionnaire consist of personal variables such as gender (0 Male, 1 Female), Academic level (grading from 1-4), age, title
I am Duong Van Minh, conducting research on the influence of leaders on subordinates' job attitudes and outcomes at Phuc Thanh Vietnam JSC Your honest feedback is crucial for the success of this project Rest assured, all information will remain confidential and used solely for research purposes I appreciate your sincere assistance Please respond to the following statements by selecting a number from 1 to 5, where “1” indicates Strongly Disagree and “5” indicates Strongly Agree Thank you!
LK1 – Leaders have professional knowledge in the field you are working in
LK2 – Leaders have thinking ability
LK3 – Leaders have knowledge in human resources management
LK4 – Leaders innovate and apply knowledge in specific works
LA1 – Leaders have the ability to set up and execute plans
LA2 - Leaders have the ability to communicate with related parties
LA3 - Leaders have the ability to guide, develop, and support the team to achieve targets effectively
LA4 - Leaders have the ability to handle conflicts reasonably and efficiently
LA5 - Leaders have the ability to identify, monitor, observe, and evaluate work processes
LB1 – Strategies given out by leaders are suitable for the current situation
LB2 – Plans for projects ensure the progress
LB3 – Leaders can handle conflicts between departments in a project
LB4 – Employees’ rights are ensured?
LB5 – Leaders share and authorize management to group’s captain
JS1 – Are you satisfied with your current job?
JS2 – I am trained necessary knowledge, abilities to perform tasks
JS3 – The organization holds necessary intensive training sections for me
JS4 – The workplace brings me comfort and does not make me stressed during work
JI1 – I know my career objective clearly
JI2 – I learn much from the company’s projects
JI3 – I am ready to study and join in the testing of new
JI4 – Managers and colleagues support and make conditions for me to complete tasks
JC1 – I see job promotion chances at the company
JC2 – I am ready for long business trips
JC3 – Salary and bonus are decided fairly based on job competency and outcomes
JC4 – Are you ready to work for a long term at the company?
JC5 – Wages at the company make me wonder
JR1 – Leaders always ask for members’ opinions in meetings
JR2 – My opinions in meetings are recognized
JR3 – Do you plan to continue your job at the company for several more years?
JR4 – Are you paid working overtime?
JR5 – Does the work environment decide your retention at the company?
JP1 – Do you usually complete tasks in progress?
JP2 – Is your performance highly evaluated by colleagues?
JP3 – Do you usually work overtime?
JP4 – Do your leaders use any tool to evaluate subordinates’ work efficiency?
JP5 – Are you usually complained to by others about the
Data Analysis procedure
In this study, hypotheses will be formulated following a comprehensive analysis of data using various standardized and hierarchical regression models in SPSS The research focuses on regressing job attitudes and leader behavior against job outcomes, specifically job retention and job performance, along with personal variables The variables will be introduced into the regression equation in three distinct steps to assess the individual contribution of each variable in explaining job outcomes.
RESEARCH RESULT
Analysis of survey outcomes
This section will analyze the consistency of each variable in the model, focusing on corrected item-total correlations Observable variables exhibiting low reliability, indicated by a Cronbach’s Alpha of less than 0.6, will be rejected (Hair et al., 2011) Additionally, variables with low corrected item-total correlations will also be excluded (Nunnally).
The analysis reveals that all Alpha coefficients for the observable variables exceed 0.8, and the corrected item-total correlations are all above 0.3 This confirms that the variables in the model are suitable for subsequent analysis steps.
Results analyzed Cronbach alpha please see the appendix with:
Regression
Hypothesis (H1): Leader competency positively impacts job attitudes
Table 4.1 Model summary Hypothesis 1 Model Summary b
Std Error of the Estimate
1 ,413 a ,171 ,162 ,39664 1,994 a Predictors: (Constant), LC b Dependent Variable: JA
The R-squared correction for the H1 model is 0.162, indicating that the independent variables account for 16% of the changes in the dependent variables, while 83.8% are influenced by unidentified external factors Additionally, the Durbin-Watson statistic is 1.994, which falls within the acceptable range of 1 to 3, confirming the absence of multicollinearity issues in this regression analysis.
Table 4.2 Anova test Hypothesis 1 ANOVA a
Total 18,596 99 a Dependent Variable: JA b Predictors: (Constant), LC
The F-Ratio indicates the statistical meaning of the overall model The F-ratio is the result of the comparison between the amount of explained and
The regression model analysis, as indicated by the ANOVA table, reveals a significant overall difference from zero, demonstrated by an F-ratio of 20.204 and a p-value of 0.00 Consequently, this regression analysis is deemed appropriate and reliable for the given data.
Table 4.3 Coeficients of Hypothesis 1 Coefficients a
The standardized coefficients reveal that leaders' competency has a beta coefficient of 0.413 with a significance level of 0.000, indicating a positive and significant effect on employees' job attitudes Additionally, a Variance Inflation Factor (VIF) of less than 2 confirms the absence of multicollinearity.
Hypothesis (H2): Job attitudes positively impact job outcomes
Table 4.4 Model Summary Hypothesis 2 Model Summary b
1 ,455 a ,207 ,199 ,48673 2,078 a Predictors: (Constant), JA b Dependent Variable: JO
The R² correction for the H2 model is 0.199, indicating that the independent variables account for 19.9% of the changes in the dependent variables, while 80.1% remain unexplained due to unidentified variables or random errors Additionally, the Durbin-Watson statistic is 2.078, which falls within the acceptable range of 1 to 3, suggesting that there is no multicollinearity issue in this regression analysis.
Table 4.5 Anova test hypothesis 2 ANOVA a
Total 29,287 99 a Dependent Variable: JO b Predictors: (Constant), JA
The F-Ratio serves as a key indicator of the statistical significance of the overall regression model, reflecting the comparison between explained and unexplained variances In the ANOVA table, the F-Ratio of 25.625, with a significance level of 0.00, demonstrates that the model is statistically distinct from zero Consequently, this regression model is deemed reliable and suitable for use with the given data.
Table 4.6 Coefficients of Hypothesis 2 Coefficients a
B Std Error Beta Tolerance VIF
The standardized coefficients reveal that job attitudes have a beta coefficient of 0.455 and a significance level of 0.000, indicating a positive and significant influence on employee job outcomes Additionally, a VIF value of less than 2 confirms the absence of multicollinearity issues.
Hypothesis (H3): Leaders’ competency positively impacts job outcomes
Table 4.7 Model summary Hypothesis 3 Model Summary b
Std Error of the Estimate Durbin-Watson
1 052 a 003 007 53504 1.881 a Predictors: (Constant), LC b Dependent Variable: JO
The R² correction for model H3 is 0.007, indicating that the model explains a minimal percentage of the changes in the variable through other variables This low R² value suggests that the hypothesis is not suitable based on the researched theory.
The rejection of H3 highlights the significant mediating role of Job Attitudes in the relationship between Leader Competency and Job Outcomes The survey findings validate Rehman's research model, providing a foundation for the author to further analyze the data using Exploratory Factor Analysis (EFA) and Structural Equation Modeling (SEM).
EFA and SEM analysis a) EFA findings
Table 4.8 KMO and Bartlett’s test
The KMO coefficient = 0.792 > 0.5: analyzing factors appropriate for the research data
Barlett’s Test result is 3429.607 with Sig = 0.000 < 0.05, this proves the data used to analyze the factors are completely appropriate
Total extraction sum of Cumulative variances (Cumulative) = 73.108%
> 50%: qualified; in this case, we can say that this factor explains 73.108% variation of the data
The value of Eigenvalues of factors higher than 1 includes 7 factors
Table 4.10 The matrix pivot-table of the factors
According to Hair et al (2010), Multivariate Data Analysis, 7th edition, the indicators used to evaluate the Model Fit includes:
- GFI = 0.801 still accepted in this research according to Baumgartner and Homburg (1995), and Doll, Xia, and Torkzadeh (1994)
Standards to evaluate the appropriation for the model
The SEM model results demonstrate a significant relationship between leaders' competency and employees' job attitudes, as well as the influence of job attitudes on job outcomes This indicates that the attitudes employees hold towards their jobs play a crucial role in determining their overall job performance and results.
The correlation coefficients reveal that leaders' competency significantly influences job attitudes Specifically, leader ability (L_A) negatively affects job commitment (J_C) with a value of -0.297, indicating a detrimental impact Conversely, job involvement (J_I) positively correlates with job performance (J_P), evidenced by an estimate of 0.304, suggesting that increased employee engagement leads to higher efficiency Furthermore, job commitment (J_C) has a strong positive effect on job retention (J_R), with a significance level of 0.000 and an estimate of 40.3% These findings underscore the critical role of leaders' competency in shaping employees' job performance.
In the above result table, there is no impact from leader competency on job outcomes, thus, this hypothesis is rejected, while other hypotheses are accepted in this research
Project managers must deeply understand employee behavior, as highlighted in this research on the influence of employee attitudes on job satisfaction and outcomes By gaining better insight into these behaviors, managers can effectively enhance their employees' skills and capabilities.
In software projects, managers often lack the time to closely monitor every employee's behavior Nevertheless, they can enhance their own skills and conduct to significantly influence their team’s job attitudes and performance outcomes.
Generally, leaders’ competency has a positive impact on the intermediate factor, employees’ job attitudes, which either lay a constructive influence on the employees’ job outcomes.
Summary
The theoretical basis of this study is that different leadership styles issue different consequences which have direct or indirect impacts on employees’ job attitudes and job outcomes
Leaders must recognize how their behaviors influence their subordinates' job attitudes and outcomes By enhancing their awareness, leaders can effectively harness their employees' abilities and skills, leading to improved job performance.
Research findings demonstrate that effective leader behavior significantly boosts subordinates' job involvement, commitment, and satisfaction, leading to improved job retention and performance Furthermore, the study establishes a clear link between job attitudes and job outcomes, highlighting that positive job attitudes directly influence overall job performance.
Competency significantly enhances job attitudes, which in turn positively affects job outcomes Practical work processes indicate that job satisfaction plays a crucial role in an employee's decision to remain in their current position or seek new opportunities.
Limitations
This study has several limitations, including its focus on domestic small and medium enterprises (SMEs) and the small-scale survey data, which may not accurately represent the entire population Additionally, cultural differences between domestic SMEs and those in developed countries could result in varying human attitudes Furthermore, the potential for dishonest responses from survey participants may introduce bias into the research findings.
CONCLUSION AND SUGGESTION
Strategic planning of the Software solutions center for the 2022 – 2024 period
The Board of Directors plans the Software Solutions Center to be an independent company in the software industry under Phuc Thanh Vietnam JSC in the next three years
From 2022 – 2024, three departments under the Software Solutions Center are planned to be founded, including:
With a human resource size of up to 50 staff, including Project managers, technical leaders, developers, testers, and business analysts
1 The digital transmission demand of the market
2 Relationships and projects from ICT
4 The market scale is expanding more and more
STRENGTHS – S STRATEGIES – SO STRATEGIES - ST
S1 Having a collection of products ready to launch to consumers for
S1, S2+O1: Upgrading products after launching to the market => Product
S6+T1: Obvious business strategies and market segments
S2 The same support policy for free and paid customers
S3 Products are easy to customize to apply in businesses promptly
S4 Daily, weekly upgrade and update of products
S8 Price and charge policy after launch quality enhancement strategy
S3,S4 + O2: New products development S5 + O3: Transforming old technologies to new ones for available products to satisfy the market
S7, S8+T3: Forming a business department specialized in distributing products and seeking new projects
WEAKNESSES – W STRATEGIES – WO STRATEGIES - WT
W2+O3: Joining the market and attracting human resources
Creating joint ventures or alliances
W7+T2: Taking R&D on available products and bringing users more conveniences
Figure 5.1 SOWT of PhucThanh Solutions Unit
Key strategies for the 2022 – 2024 period of the Software Solutions Center a) Product quality improvement strategy
- Improving interfaces to be friendly and providing many conveniences to users Nâng
- Finding and fixing arising errors
- Easy installment when launching products to users for free b) New products development strategies
- Developing products towards digital transmission for businesses following popular trends (face recognition attendance, calculation systems for employees’ performance such as KPI, OKR, OLE, etc)
- Innovating, upgrading, and completing the company’s core products c) Technology transformation strategy
- Updating and upgrading to new technologies to help save costs and be able to deploy in different environments d) Business strategy
- Setting up product deployment plans and allowing to use available free products with the same quality of paid products
- ThesCáce targets can be changed and adjusted depending on real situations e) R&D strategy
- Researching new products applying advanced technologies such as
AI, Deep Learning, Blockchain, BigData, etc
- In a short term, allying to companies with a similar scale to share human resources and projects f) Human resources strategy
- Improving remuneration policy (applying salaries, bonuses, remuneration process so that there is no gap between current and new employees)
- Creating a young, friendly corporate culture where employees can maximumly promote their creation and passion (within the scope of the company’s whole strategy) g) Marketing strategy
- Promoting what the brand can do, what the brand has done, and what the brand is ready to do
- Promoting available products to users.
Suggestions to improve the job attitudes and job outcomes of information
To enhance job outcomes for employees at Phuc Thanh Vietnam Joint Stock Company, it is crucial to improve the competency of leaders Strengthening the skills of managers at all levels will lead to increased employee performance and commitment, aligning with the company's 2022-2024 strategy and research findings.
Leaders must enhance their communication skills to effectively convey messages to both customers and employees Sharing their vision, objectives, and common issues fosters collaboration and mutual development By improving their competencies, leaders gain a comprehensive understanding of their employees' roles, which in turn boosts motivation and enthusiasm in the workplace Taking the right actions can inspire employees to perform better, while also creating a positive atmosphere that alleviates work-related stress.
Effective conflict management is essential for leaders, as it fosters open-mindedness among team members and enhances collaboration, ultimately improving overall job performance Consequently, strong leadership competencies enable leaders to pinpoint the right strategies that drive success.
In the rapidly evolving field of information technology, fostering a vibrant corporate culture is essential for harnessing the creativity of a young workforce An open environment promotes direct communication and positively influences employee attitudes towards their work It is crucial to establish a culture that minimizes hierarchy, allowing for closer relationships between leaders and team members Implementing clear codes of conduct enhances comfort in interpersonal interactions Recognizing high performers and supporting those who may struggle can motivate the entire team Encouraging open dialogue and conducting training sessions to enhance soft skills and keep up with technological advancements empowers employees and facilitates collaboration Teams with actively engaged members are more likely to achieve superior results, as a positive attitude among team members drives collective goals and accelerates progress.
To enhance IT staff performance, organizations should implement tailored management tools and establish clear work procedures for each team Emphasizing Agile and Scrum methodologies over the traditional Waterfall model can lead to more efficient project management Regularly monitoring key performance indicators (KPIs) is crucial for evaluating employee performance Additionally, limiting overtime is essential, as excessive workloads can result in burnout, errors, and decreased productivity Recognizing and praising employees during meetings fosters a positive work environment and motivates team members by highlighting their contributions.
Conclusion
This research significantly contributes to Phuc Thanh Vietnam JSC by enhancing leadership competency and improving employee job outcomes It reveals a strong correlation between leader behavior and employees' job attitudes, which in turn affect job outcomes Furthermore, positive leader behavior is linked to higher employee retention rates and better overall job performance.
This study significantly explores the relationship between leader behavior and employee job outcomes, specifically within the context of Phuc Thanh Vietnam Joint Stock Company's software projects The findings indicate improvements in project quality and adherence to deadlines, highlighting the importance of project managers enhancing their interactions with subordinates to maintain job performance and maximize efficiency.
The limitations and further research directions of the topic
This study, conducted at Phuc Thanh Vietnam Joint Stock, a young IT company, highlights several limitations typical of organizational research While it aims to assess the impact of leadership on employee attitudes and performance, the research is based on a limited survey of domestic small and medium enterprises (SMEs), which may not accurately represent the broader population Additionally, cultural differences between domestic SMEs and those in developed countries could influence human attitudes Furthermore, the potential for dishonest responses from survey participants may affect the reliability of the findings.
Future research will concentrate on conducting larger-scale evaluations and improving the quality of responses to refine the model Additionally, there is a need for more evidence of construct validity by broadening the range of factors examined in relation to job attitudes and outcomes This includes a deeper exploration of leader competency and behavior among managers to gain valuable insights.
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