INTRODUCTION
Research problems
Vietnam's banking sector is poised for significant growth in the coming years, driven by the country's economic expansion, increasing household incomes, and low banking service penetration Over the past two decades, the Vietnamese government has implemented reforms to modernize the banking sector, aligning it with a more open market economy This rapid economic growth has led to a surge in demand for banking services, with credit and debit card usage, consumer lending, and corporate banking becoming increasingly common The number of issued cards soared from 14.2 million in 2008 to 28.5 million in 2010, while the number of ATMs grew from 1,800 in 2005 to 11,000 by December 2010 Despite these advancements, the banking industry remains in its early stages of development.
As of December 2010, approximately 23% of Vietnam's population of 90 million had bank accounts, with around half of these account holders actively utilizing consumer banking services.
Since Vietnam's accession to the World Trade Organization (WTO) in 2007, the banking sector has seen increased competition from both domestic and foreign banks, as government restrictions on foreign banks have eased Notable foreign banks, including Australia and New Zealand Bank, Hongkong and Shanghai Banking Corporation, and Standard Chartered, have entered the market through strategic partnerships with local banks This influx has intensified the demand for resources within the banking industry, creating a more dynamic and competitive labor market Consequently, bank managers are now challenged with effectively managing human resources, prompting a focus on improving employee satisfaction to attract and retain top talent.
Recent discussions in various magazines and online newspapers highlight a significant shortage of human resources in Vietnam's financial sector, which is facing rapid growth in banks and stock brokerage firms This long-standing issue has been exacerbated by a recent survey from IBG, a consulting firm specializing in Human Resource and Management, revealing that 64% of respondents, including those in the finance industry, are considering changing jobs.
Figure 1.1 Job satisfactions rating of Vietnamese employee
Source:http://www.ibg.com.vn
Survey results indicate that key factors influencing employee job satisfaction include opportunities for training, managerial leadership style, coworker relationships, income, and the working environment Notably, managerial leadership style ranks as the second most significant factor contributing to job change decisions.
Figure 1.2 Vietnam job changing reason pyramid
Source:http://www.ibg.com.vn
According to research by CareerBuilder, over 62% of Vietnamese employees express dissatisfaction with their current jobs, highlighting the critical need for improved employee job satisfaction This finding underscores the necessity for managers to adapt their strategies to meet the evolving challenges in the workplace.
Industry experts agree that employees who are satisfied and committed to their jobs are more likely to embody the firm’s values and provide exceptional service quality, which is crucial for a company's survival in the market Research indicates that a manager's leadership style significantly impacts employees' perceptions and job satisfaction Therefore, it is essential for managers to adopt effective leadership styles that positively influence their employees Different approaches, whether autocratic or democratic, can affect employee satisfaction in various ways, highlighting the need for empirical examination of the relationship between leadership styles and employee job satisfaction.
Numerous international studies have established the connection between leadership style, role clarity, and job satisfaction, highlighting that role clarity serves as a crucial factor in enhancing employee job satisfaction (Posner and Butterfield, 1978; Louis et al., 1983; Hartline and Ferrell, 1996; Singh et al., 1996; Singh, 2000; Korczynski, 2002; Mukherjee and Malhotra, 2006) However, research focusing specifically on these dynamics within Vietnam's banking sector is limited This raises an important question for bank managers in Vietnam: do these established relationships hold true in their organizations? Conducting a thorough analysis and model testing in various credit institutions in Vietnam could provide valuable insights and help managers better understand and implement effective leadership strategies to improve role clarity and employee satisfaction.
This study aims to investigate how leadership style and role clarity influence employee job satisfaction, as well as the relationship between leadership style and role clarity.
Research objectives
A research objective articulates the researcher’s interpretation of a business problem, outlining the purpose of the research in measurable terms and establishing criteria for its success (Zikmund 1997, p 89, as cited in Trung, 2009) This study aims to address the identified research problem through specific, defined objectives.
Examine the relationship between various manager leadership styles and employee role clarity in banking industry in Vietnam
Examine the relationship between various manager leadership styles and employee job satisfaction in banking industry in Vietnam
Examine the relationship between employee role clarity and employee job satisfaction in banking industry in Vietnam
The study's findings provide valuable insights for policymakers and bank leaders in Vietnam, emphasizing the need to improve employee satisfaction by adapting leadership styles and clearly defining employees' roles and responsibilities.
Scope and limitations
The research was limited to employees from select banks in Ho Chi Minh City, including Vietcombank, BIDV, Prudential, ANZ, ACB, and Saigonbank, due to constraints in resources and time To accurately assess the measurement scales, further research involving a broader range of banks across key provinces in the country is essential Additionally, conducting separate analyses for foreign and local banks would provide managers with a deeper understanding of specific organizational dynamics.
Research methodology
This research focuses on employees from joint stock commercial banks, state-owned banks, and foreign banks The study employs a two-step methodology: qualitative and quantitative research Initially, qualitative research involved developing measurement scales based on a review of existing literature, followed by group discussions to refine elements relevant to the Vietnamese banking context Subsequently, quantitative research utilized surveys to efficiently and accurately gather data, as surveys are recognized for their effectiveness in assessing population information (Zikmund, 1997) Three primary tools were employed for data collection in this phase.
‐ Online survey (refer to address: http://edu.surveygizmo.com/s3/565448/roleclarity-jobsatisfaction- leadershipstyle) This is main method to collect data
The data analysis with SPSS version 16.0 was used to implement the research such as: descriptive statistic, reliability and validity of scales, multi regression analysis.
Structure of the study
The study consists of five chapters:
This chapter presents research background of the study as well as research problems, research objectives, research methodology and scope
This chapter reviews existing literature on leadership styles, employee role clarity, and job satisfaction, while also proposing hypotheses and an empirical model for the study.
This chapter focuses on the research design and the development of measurement scales, informed by the research objectives and methodology outlined in Chapter 1, as well as the literature review and empirical model discussed in Chapter 2.
Chapter 4: Data Analysis and Findings
This chapter presents the characteristics of research sample, data validation step by step Besides that, model and hypotheses are conducted in the stage
Chapter 5: Findings, Limitations and Recommendations
Last chapter summarizes findings and recommendations based on the results of previous chapters Limitations and further research suggestions are also indicated in this chapter.
LITERATURE REVIEW
Introduction
This study explores the connection between leadership style, role clarity, and employee job satisfaction The literature review will cover key concepts of leadership, various leadership style theories, and the different dimensions of role clarity and job satisfaction.
Leadership
The significance of leadership is highlighted by the extensive body of academic and practitioner literature available on the subject, as it is often regarded as the most crucial aspect of management Leadership entails influencing individuals and groups to achieve specific goals, with a leader's style influenced by factors such as personality, environment, education, training, and personal philosophy Notably, leadership styles are not mutually exclusive; research shows that most managers employ a combination of directive and participative approaches, adapting their style to fit various circumstances.
This study focuses on three key leadership styles—directive, participative, and empowering—derived from established theories, specifically path-goal theory and transformational theory Recent research, including works by Bass (1997) and MacKenzie, Podsakoff, and Rich (2001), informed the selection of these styles, emphasizing their relevance in contemporary leadership discourse.
In 1999, Ronald et al identified three distinct leadership styles that reflect varying degrees of employee control and managerial influence Directive leadership involves minimal employee control and is characterized by a management-dominant influence In contrast, participative leadership fosters shared control between management and employees, allowing for collaborative influence Empowering leadership, on the other hand, grants extensive control to employees, resulting in an employee-dominant influence on organizational transformation These leadership styles highlight the importance of management approaches in shaping employee engagement and organizational dynamics.
Leadership is the process of social influence that enables one individual to rally support from others to achieve a common goal Alan Keith (2007) emphasized that leadership is about creating opportunities for people to contribute to extraordinary outcomes Effective leadership, as defined by Ken (2007), involves integrating and maximizing resources to achieve organizational or societal objectives Fullan (1998) highlighted that leadership is vital in community life, requiring visioning, planning, and empowering others Weihrich & Koontz (1997) noted that effective leaders inspire a shared vision and foster an environment that encourages risk-taking and empowerment Warren (2007) described leadership as a process of influencing others to achieve objectives while promoting cohesion within the organization Unlike mere managerial authority, true leadership inspires followers to pursue high goals rather than simply issuing commands.
According to Bass (1990, as cited in Warren, 2007), there are three primary approaches to understanding how individuals become leaders, with the first two focusing on the leadership development of a select few.
Some personality traits may lead people naturally into leadership roles This is the Trait Theory
A crisis or important event may cause a person to rise to the occasion, which brings out extraordinary leadership qualities in an ordinary person This is the Great Events Theory
People can choose to become leaders People can learn leadership skills This is the Transformational Leadership Theory It is the most widely accepted theory today
According to Bass (1990, as cited in Warren, 2007), individuals assess a leader's respectability not by their attributes but through their actions This observation helps determine if a leader is honorable and trustworthy or self-serving and manipulative Self-serving leaders may achieve superficial success by projecting a positive image to superiors, but their effectiveness is limited, as employees merely comply rather than genuinely follow them Ultimately, the distinction between true leadership and self-interest significantly impacts team dynamics and overall organizational health.
The major factors of leadership were raised by U.S Army (1993) as follows:
Effective leadership varies based on individual needs; for instance, new hires often need more guidance compared to seasoned employees Understanding the differing motivational levels among team members is crucial, as those lacking motivation require distinct strategies compared to their highly motivated counterparts To lead effectively, it is essential to have a deep understanding of human nature, including the needs, emotions, and motivations of your team By recognizing and appreciating the unique attributes of your employees—what they are, what they know, and what they can do—you can tailor your leadership approach for better outcomes.
To achieve true leadership success, it's essential to have a clear self-awareness of your abilities and knowledge Remember, it is the followers who ultimately decide a leader's effectiveness; if they lack trust or confidence in you, their inspiration will fade Therefore, the key to success lies in convincing your followers of your worthiness as a leader, rather than seeking validation from yourself or your superiors.
Effective leadership relies on two-way communication, much of which is conveyed nonverbally By leading by example, you demonstrate to your team that you are willing to engage in the same tasks you ask of them The way you communicate significantly influences the relationship you cultivate with your employees, either strengthening or damaging it.
Every situation is unique, requiring careful judgment to determine the most effective leadership style For instance, addressing an employee's inappropriate behavior demands timely and appropriately measured confrontation; acting too late, too early, too harshly, or too leniently can lead to ineffective outcomes.
The Directive Leadership Style, initially identified by Lewin, Lippitt, and White in 1938, is often equated with the autocratic leadership style This approach emphasizes a top-down method of leadership, making it a prevalent form of leadership in contemporary settings.
Directive leadership is characterized by a dominant leader whose ideas dictate the direction of the team, with minimal employee input and strictly enforced work methods This style allows for little flexibility in decision-making, positioning the leader in full control, often resembling a dictatorship Such leaders may resort to force, manipulation, or coercion to meet company objectives, operating under the belief that employees require control rather than trust They clearly communicate tasks, expectations, standards, and deadlines to their subordinates, ensuring compliance This leadership approach is commonly found in traditional companies, particularly in cultures that favor authoritarian governance, such as many Asian nations.
Directive leadership in academic settings is characterized by clearly communicating expectations to subordinates and providing specific guidance on tasks Defined as instructing employees on what to do, how to execute tasks, when to complete them, and how their roles align with others, directive leadership emphasizes compliance through commands, goal assignments, and disciplinary measures.
Directive leadership is characterized by a lack of discretion for followers, who are seldom involved in decision-making processes and are expected to adhere strictly to established rules and regulations This leadership style is often described as autocratic, task-oriented, and can be seen as persuasive or manipulative, as noted by various scholars (Muczyk and Reimann, 1987; Yukl, 1989; Bass, 1981).
Directive leadership can effectively communicate an organization's strategic goals, but it often relies on coercion, which may lead to employee frustration and hinder individual creativity (Dolatabadi and Safa, 2010; Lin, 2011) This authoritative approach can result in lower acceptance of management's vision, as employees feel excluded from the decision-making process (Ronald, Michael, and Keith, 2008; Bass, 1981) Consequently, when employees do not embrace management values, it poses challenges in organizations where they are expected to make decisions and tailor processes or services (Hartline, Maxham, and McKee, 2000, as cited in Dolatabadi and Safa, 2010).
Role Clarity
Extensive research has been conducted on role clarity and its impact on various factors Role clarity is defined as the extent to which employees receive and comprehend the information necessary for effective job performance (Rogers, Clow, and Kash, 1994, as cited in Chad, 2008) As highlighted by Hackman and Oldham, understanding one's role is crucial for enhancing job satisfaction and performance.
Role clarity is essential for employees, as it ensures they have a clear understanding of their responsibilities within the organization (Jai and Naval, 2011) According to Banton (1965, as cited in Jai and Naval, 2011), a "role" encompasses the norms and expectations that apply to individuals in specific positions, shaped by both the role incumbents and the various role senders they interact with This clarity is crucial for fulfilling the obligations associated with their roles (Kahn et al., 1964, as cited in Jai and Naval, 2011).
To effectively perform a role, individuals must understand the expectations, responsibilities, and consequences associated with their position Schaubroeck et al (1993, as cited in Jai and Naval, 2011) highlight that the role-making process can be hindered by poor communication and environmental turbulence, necessitating ongoing adjustments in roles Consequently, the role-making process is dynamic, involving both the role incumbent and the role senders, and emphasizes the importance of assessing an individual's need for clarity in their role.
Role clarity is defined as the subjective feeling of having sufficient information regarding job expectations and responsibilities, which is crucial for effective job performance (Jai and Naval, 2011) It encompasses the extent to which an employee receives and comprehends the necessary information to fulfill their role (Kelly and Hise, 1980) Conversely, role ambiguity can significantly diminish job satisfaction (Behrman and Perreaul, 1984) Sufficient role clarity involves understanding job objectives and the behaviors needed to achieve them (Kahn et al., 1964) Numerous studies have explored the impact of personality variables on role stressors, highlighting the importance of role clarity in the workplace (Kahn et al., 1964; Rizzo et al.).
Research has consistently shown that role ambiguity negatively impacts job satisfaction, leading to increased stress and anxiety (Lirtzman, 1970; Keller, 1973; Sohi, 1996, as cited in Chad, 2008) In contrast, role clarity serves as a protective factor against job stressors, significantly reducing job tension and physical stress, while also decreasing the likelihood of employee turnover (Donnelly & Ivancevich, 1974, as cited in Chad, 2008).
To develop an effective role clarity model, it's essential to identify the factors influencing employee role clarity Research by Kammeyer-Meuller and Wanberg (2000) highlights that relationship building significantly enhances role clarity Further studies by the same authors in 2003 indicate that organizational and leadership influences also contribute positively to role clarity Additionally, Adkins (1995, as cited in Jai and Naval, 2011) found that prior experience in similar roles increases clarity, as employees are more aware of expectations in familiar settings Walker, Churchill, and Ford (1977, as cited in Chad, 2008) categorized the antecedents of role clarity into personal, organizational, and environmental variables Moreover, performance feedback and leadership have been shown to positively affect role clarity (Teas, Wacker, and Hughes, 1979, as cited in Vincent, 2009) Lastly, Jackson and Schuler (1985, as cited in Avinandan, 2006) classified the variables impacting role clarity into task-related and supervisor-related categories.
Job design and participative supervision are crucial factors influencing the role clarity of frontline employees According to Cohen (1959, as cited in Chad, 2008), the organizational level of respondents can moderate the relationship between role clarity and personal outcomes, including job-related tension, job satisfaction, and turnover intentions Additionally, role clarity impacts perceived performance, organizational effectiveness, and overall organizational influence.
Some main factors determine role clarity in an organization:
Teamwork plays a vital role in enhancing role clarity among employees, as highlighted by Sergeant and Frenkel (2000, as cited in Chad, 2008) Their research indicates that team support is crucial for frontline staff, as cooperation among co-workers fosters effective peer-based learning, thereby clarifying individual roles Additionally, Jong et al (2001, as cited in Chad, 2008) found that employees engaged in teams experience significant improvements in perceived role clarity due to the influence of team support across organizations.
Regularly reviewing and sharing feedback with employees is crucial for performance improvement Feedback provides individuals with direct and clear insights into how effectively they are executing their job responsibilities, which is essential for their professional growth and development.
Research indicates a positive correlation between feedback and perceived role clarity, with its impact influenced by factors such as valence (positive or negative), response mode (advisory, interpretive, behavioral, or emotional), and directness Feedback serves as a crucial source of intrinsic motivation, significantly aiding employees in understanding and clarifying their roles, thereby enhancing their perceived role clarity.
Unnecessary intervention can hinder employee performance within an organization, while an autonomous work environment enhances role clarity Research by Mukherjee and Malhotra (2006) indicates a positive correlation between task autonomy and perceived role clarity Autonomy, defined as the freedom and discretion employees have in managing their work, is crucial for job satisfaction (Hackman and Oldham, 1976, as cited in Chad, 2008) When frontline employees feel they lack control over their service delivery, it can lead to feelings of helplessness, stress, and job dissatisfaction (Berry et al., 1990, as cited in Mukherjee, 2006) As a vital motivational factor, autonomy significantly impacts job design and enhances service quality by promoting clearer roles (Donnelly and Ivancevich, 1975, as cited in Jai and Naval).
Supervisory consideration significantly influences employee role clarity, as it encompasses leader behaviors aimed at enhancing the comfort and well-being of subordinates (Boshoff and Mels, 1995, as cited in Jai and Naval, 2011) This supportive supervisory approach fosters a psychologically safe environment characterized by mutual trust and assistance, positively impacting the role clarity of frontline employees (Teas, 1983; Kohli, 1989; De Coninck et al., 1993, as cited in Mukherjee, 2006) Specifically, supervisory consideration aids in creating a nurturing atmosphere through socio-emotional support from leaders while simultaneously clarifying employee roles (Singh, 199, as cited in Jai and Naval, 2011).
Committed employees tend to have longer tenures within an organization, which allows them to gain a deeper understanding of its dynamics, ultimately leading to enhanced role clarity Research by Wetzels et al (2000, as cited in Jai and Naval, 2011) indicates a positive correlation between role clarity and organizational commitment Affective commitment, as defined by Meyer and Allen (1991, as cited in Noor and Noor, 2006), reflects an employee's emotional attachment and identification with the organization Employees who experience clear roles are more likely to develop a strong attachment to their organization, align with its goals, and demonstrate increased commitment (Zaccaro and Dobbins).
1989, as cited in Jai and Naval, 2011).
Role clarity is significantly influenced by organizational effectiveness, as evidenced by Beehr et al (1976), who found a direct correlation between higher levels of role clarity and perceived organizational effectiveness Kahn et al (1964) further established that role clarity depends on the alignment between the information available to employees and what is required for effective performance Schuler (1975) identified strong positive relationships between role clarity and individual performance among lower and middle-level manufacturing employees Consequently, individuals in high-performing organizations experience greater role clarity compared to those in low-performing ones.
Task-oriented leadership significantly enhances role clarity among employees Those who are driven by tasks tend to define their roles clearly in the context of job execution Research by Hamner and Tosi (1974, as cited in Jai and Naval, 2011) indicates that increased role clarity correlates directly with the effectiveness of a superior's task-oriented leadership.
Job Satisfaction
The research about employee job satisfaction has been found in the 1930’s and become frequently extensive topic such as Allen, Drevs, & Ruhe, (1999); Kleinman, (2004); Robbins, (1998); Spector, (1997); Yukl, (1998)
Job satisfaction refers to the emotional response an employee has towards their work, stemming from the comparison between perceived outcomes and desired outcomes (Price, 2001; Kam, 1998) It encompasses the feelings, attitudes, and preferences individuals hold regarding their jobs and indicates the degree of enjoyment employees derive from their roles (Chen, 2008; McCloskey and McCain, 1987) Various theories have been proposed to understand job satisfaction, such as Vroom's need/value fulfillment theory, which suggests that job satisfaction decreases as the gap between individual needs and job provisions widens Additionally, Porter and Lawler (1968) categorize factors influencing job satisfaction into internal factors, which relate to the work itself—such as feelings of independence and achievement—and external factors, which include aspects like salary and relationships with colleagues Consequently, influences on job satisfaction can be divided into work-related and employee-related factors (Glisson and Durick, 1988).
Job satisfaction is characterized as a pleasurable emotional state derived from evaluating one's job, reflecting an affective response to work, and representing an overall attitude towards one's employment.
Job satisfaction is a multifaceted attitude shaped by our emotions, beliefs, and behaviors towards our jobs (Weiss, 2002, as cited in Remus, 2004) It encompasses the overall measurement of working attitudes, including feelings of happiness and pleasure in one’s role (Edward & Scullion, 1982, as cited in Mohd, 2009) Cranny, Smith, and Stone (1992, as cited in Mohd, 2009) further define job satisfaction as the extent to which employees find their employment fulfilling enough to remain in it, either long-term or until they are ready for more significant responsibilities Ultimately, job satisfaction results from a comparison between employees' expectations and their actual experiences in the workplace.
Job satisfaction plays a crucial role in organizational dynamics, serving as both an independent and dependent variable in various studies It significantly enhances employee performance and organizational commitment while reducing turnover rates (Agarwal and Ferrat, 2001; Poulin, 1994; Chen, 2008, as cited in Dogan, 2009) According to Fitzgerald (1972), there is a direct correlation between job satisfaction and job performance, as higher job satisfaction fosters positive employee behaviors, such as providing excellent customer service, collaborating effectively with colleagues, and demonstrating strong organizational commitment (Arnett, Laverie, & McLane, 2002, as cited in Irene, 2006) Ultimately, job satisfaction serves as a key motivator for employees to deliver exceptional service.
Job satisfaction is influenced by various factors, including motivation, stress, salary, promotion, role conflict, and leadership style, making it a key topic in management literature (Ross and Reskin, 1992; Agho et al., 1993) Research identifies demographic variables (education and experience), job characteristics (autonomy and task repetitiveness), and organizational environment factors (professionalization and unit type) as critical influences on employee satisfaction (Sengin, 2003) Positive correlations have been found between job satisfaction and factors such as involvement, autonomy, and supervisor support, while negative relationships exist with role ambiguity and workload (Chu et al., 2003) Inadequate salary significantly contributes to employee dissatisfaction (Carr and Kazanowsky, 1994), and overall job satisfaction is affected by working conditions, intrinsic compensation, and company policies (Hoffman & Ingram, 1992) Additionally, encouragement, feedback, and supportive leadership positively impact job satisfaction, whereas role stress has a detrimental effect (Mrayyan, 2005) Studies indicate that role clarity enhances job satisfaction and innovation, while unclear role expectations can lead to confusion and poor team communication, ultimately resulting in decreased job satisfaction (Deeter-Schmelz, 1997; Miller and Jablin, 1991) Thus, role ambiguity is linked to job stress and negative outcomes, emphasizing its importance in employee satisfaction and performance (Walker et al., 1975).
Effective leadership is crucial for job satisfaction, as a lack of support and consideration from leaders can lead to employee stress Hostile interactions between leaders and employees diminish work enjoyment, undermine confidence in job skills, provoke negative reactions towards leadership, and may ultimately result in employee turnover.
The quality of the leader-employee relationship significantly influences employees' self-esteem and job satisfaction Research indicates that workers with high achievement motivation report greater job satisfaction than those with low motivation Autonomy also plays a crucial role, as individuals with a strong need for independence tend to perform better and feel more satisfied, particularly in non-repetitive tasks Additionally, management styles, such as participative leadership, are preferred by modern managers to enhance employee satisfaction Expressive leadership fosters job satisfaction, while task-structured leaders, who focus more on initiating structure, often lead to lower satisfaction levels among employees engaged in routine tasks.
This study concerned with the overall job satisfaction of employees rather than with their satisfaction with separate facets of the job.
Hypotheses
Role clarity is essential for effective employee management, as it encompasses the information provided regarding job expectations and the individual's understanding of the necessary tasks Research indicates that clear communication of roles significantly impacts employee performance and job satisfaction, making it a crucial focus for managers (Teas et al., 1979; Kelly and Hise, 1980; Singh).
Feedback plays a crucial role in helping employees understand and clarify their roles, significantly enhancing their perceived role clarity (Dolatabadi, 2010; Evans et al., 2002) Directive leadership is particularly effective in fostering role clarity due to the extensive feedback it provides (Muczyk and Reimann, 1987; Ronal, 2009) The authoritative nature of directive leadership ensures that subordinates have a clear understanding of their responsibilities within the organization (Hughes, Ginnett, and Curphy, 1999; Ronal, 2009) Empirical evidence supports this, as Kohli and Jaworski (1994; Ronal, 2009) found that management feedback enhances role clarity Therefore, it is anticipated that managers who adopt a directive leadership style will significantly improve their employees' role clarity.
H1: An increase in the use of a directive leadership style is associated with an increase in employee role clarity
Participative leadership, while offering less explicit directives regarding employee responsibilities, plays a crucial role in enhancing role clarity Unlike directive leadership, which relies on top-down communication, participative leadership fosters a collaborative environment where employees can contribute to and influence their roles This approach enables employees to receive valuable feedback from managers on role expectations, leading to improved clarity as information and expectations are shaped through consensus (Bass, 1981, as cited in Dolatabadi, 2010).
Employee participation in decision-making enhances awareness of significant organizational events and allows individuals to influence job-related decisions This involvement fosters aligned perceptions regarding role expectations, leading to improved role clarity among employees Research indicates that those who engage in decision-making processes experience a heightened sense of role clarity, ultimately benefiting both the employees and the organization.
Research by Mukherjee and Malhotra (2006) indicates a positive correlation between participation in decision-making and perceived role clarity When information and expectations regarding employees' roles are managed collaboratively, role clarity tends to improve (Bass 1981, as cited in Ronald, 2009) Therefore, it can be anticipated that a participative leadership style positively impacts role clarity.
H2: An increase in the use of a participative leadership style is associated with an increase in employee role clarity
Empowering leaders give their employees the latitude necessary to perform their jobs
Empowering leaders often provide limited direction and feedback about employees' roles, which can lead to confusion and increased stress among staff (Keller and Dansereau 1995; Spreitzer, De Janasz, and Quinn 1999, as cited in Ronald, 2009) While training and job specifications exist to clarify role expectations, the lack of consistent feedback hinders employees' understanding of their responsibilities Additionally, employees who prefer more guidance from their managers may perceive empowerment as an unwelcome burden rather than a benefit (Bowen and Lawler 1992, as cited in Ronald, 2009) Consequently, it is likely that empowering leadership negatively impacts role clarity.
H3: An increase in the use of an empowering leadership style is associated with a decrease in employee role clarity
Research indicates that a participative leadership style significantly enhances employee satisfaction compared to a directive approach (Bass 1981, as cited in Ronald, 2009) When managers involve employees in decision-making, it fosters a sense of value and importance within the organization, unlike the directive style, which often relies on explicit instructions for every task Additionally, certain elements of directive leadership, particularly manipulation, can negatively impact job satisfaction, as employees may perceive such tactics as disrespectful or demeaning Therefore, embracing a participative leadership model is crucial for improving workplace morale and employee engagement.
H4: An increase in the use of a directive leadership style is associated with a decrease in employee job satisfaction
H5: An increase in the use of a participative leadership style is associated with an increase in employee job satisfaction
Empowering leadership, as defined by Conger and Kanungo (1988), involves providing employees with greater autonomy and authority in workplace decision-making This leadership style has been linked to increased job satisfaction and enthusiasm among employees, particularly in customer service roles (Bowen and Lawler, 1992) By granting employees more control over their tasks, organizations can foster a more motivated and satisfied workforce.
H6: An increase in the use of an empowering leadership style is associated with an increase in employee job satisfaction
Considerable evidence suggests that increased role ambiguity is associated with reduced job satisfaction and vice versa Posner and Butterfield (1978, as cite in Jai,
Role ambiguity, defined as a lack of information or uncertainty regarding expected job behavior, typically results in negative outcomes, while role clarity is linked to positive results A strong positive relationship exists between role clarity and job satisfaction, with employees who understand their roles reporting higher satisfaction levels Research indicates that those who are clear about job expectations tend to be more satisfied than those who are not Factors such as feedback, participation, and team support significantly enhance role clarity, which subsequently boosts job satisfaction Conversely, low role clarity can lead to job dissatisfaction, underscoring the importance of clear expectations in the workplace.
Employees who lack clarity in their roles tend to experience lower job satisfaction, as suggested by research from 1981 Conversely, Walker et al (1977, as cited in Jai, 2011) found that individuals with high role clarity are more confident in their ability to connect effort with performance, leading to greater job satisfaction.
Kahn et al (1964, as cited in Mathew, 2004) highlighted that uncertainty regarding work role expectations can cause negative emotions such as tension, anxiety, and anger, ultimately diminishing job satisfaction Conversely, when individuals have a clear understanding of their role expectations and the best methods to execute their tasks, their job satisfaction increases significantly.
A meta-analysis conducted by June and Mahmood (2011) revealed a strong negative relationship between role ambiguity and job satisfaction, suggesting that higher role clarity is associated with increased job satisfaction Additionally, Sawyer (1992, as cited in Mathew, 2004) identified two components of role clarity: goal clarity, which pertains to understanding role expectations, and process clarity, which involves knowing the activities that meet those expectations Both components were found to positively correlate with job satisfaction.
H7: An increase in employee role clarity is associated with an increase in employee job satisfaction
In summary, seven hypotheses were proposed as below:
H1: An increase in the use of a directive leadership style is associated with an increase in employee role clarity
H2: An increase in the use of a participative leadership style is associated with an increase in employee role clarity
H3: An increase in the use of an empowering leadership style is associated with a decrease in employee role clarity
H4: An increase in the use of a directive leadership style is associated with a decrease in employee job satisfaction
H5: An increase in the use of a participative leadership style is associated with an increase in employee job satisfaction
H6: An increase in the use of an empowering leadership style is associated with an increase in employee job satisfaction
H7: An increase in employee role clarity is associated with an increase in employee job satisfaction
The article discusses three primary leadership styles that influence employee management based on control levels: directive leadership, which involves minimal employee control; participative leadership, characterized by shared control; and empowering leadership, which allows for extensive employee control These distinct styles cannot be simultaneously exhibited by a leader, as an organizational manager typically embodies only one style The article proposes seven hypotheses and presents a corresponding model to illustrate these concepts.
Figure 2.1: Schematic diagram of the conceptual framework
Summary
The previous discussion has shown the theoretical relationship among five factors directive leadership style, participative leadership style, empowering leadership style
In which, job satisfaction is differently influenced by three style of leadership and role
Job Satisfaction clarity as well In addition, role clarity is also considered as a dependent variable under leader’s behavior
In order to validate above proposals, research methodology will be discussed in next chapter.
METHODOLOGY
Introduction
Chapter 3 outlines the research methodology employed to develop, assess, and measure the scales related to the theoretical model introduced earlier, which includes directive leadership style, participative leadership style, empowering leadership style, role clarity, and job satisfaction This chapter is divided into two key sections: the first section details the research design, encompassing both qualitative and quantitative research processes, while the second section focuses on the development of measurement scales.
Research design
This study comprises two phases: preliminary and main research The preliminary phase utilizes qualitative methods, specifically group discussions, to refine and adjust variables In contrast, the main research employs quantitative techniques, including face-to-face interviews, email surveys, and online questionnaires, with data analysis supported by SPSS tools.
Table 3.1 Type and technique of research
Phase Type of research Method Technique Time
Direct interview Online survey Email delivery
The preliminary test aimed to identify and address potential weaknesses in the initial draft of the questionnaire, ultimately leading to the development of a refined final version for the main survey This pretest serves as an evaluation of the construct measures, focusing on the preliminary assessment and enhancement of the measurement scales.
The initial design of observed variables for qualitative research in the Vietnamese banking industry was informed by previous studies, expert discussions, and survey analyses Although the scale used was adapted from other research and deemed acceptable, it required modifications to fit the specific context of this study To enhance the measurability and reliability of the scales, group discussions were conducted with eight banking professionals, each with a minimum of five years of experience from Prudential Finance Vietnam, Asia Commercial Bank, and Citi Bank, representing consumer, local, and multinational banking sectors These discussions aimed to identify and refine the questionnaire, leading to the elimination of factors deemed unnecessary by over half of the participants The outcome of this qualitative research phase resulted in adjusted measurement scales and a finalized questionnaire for the main research.
The main research employed quantitative techniques to gather data from respondents through structured interviews using a questionnaire developed in the preliminary research phase Data refinement and analysis were performed with the assistance of SPSS 16.0 software.
The study's population comprises all employees working in credit institutions within the banking industry in Vietnam, defined as the complete set of units under investigation According to David (2000, cited in Trung, 2009), an element refers to the individual unit from which necessary data is collected.
The second step in the sampling process involves selecting a sampling frame, which is a comprehensive list of elements from which a sample is drawn In Vietnam's banking sector, this includes five state-owned commercial banks, thirty-nine joint stock banks, five fully foreign-owned banks, five joint venture banks, and two development and policy banks For this study, the sampling frame consisted of employees from Vietcombank and BIDV (the two largest state-owned banks), Prudential Finance, ANZ, and Citibank (representing multinational banks), as well as ACB and Saigonbank (representing local banks), focusing on individuals aged 22 and older To ensure reliable feedback, participants were required to have a minimum of six months of banking experience.
The subsequent step in the research process involves selecting an appropriate sampling method for the study Methodology literature identifies two primary types of sampling methods: probability sampling and non-probability sampling (Tho & Trang, 2007, as cited in Trung, 2009).
In this study, a non-probability sampling method was employed due to the lack of a known chance for population elements to be selected Consequently, the findings cannot be confidently generalized to the broader population Non-probability sampling is often utilized when time constraints or other factors make generalizability critical (Canava et al 2001, as cited in Trung, 2009) The two primary types of non-probability sampling are convenience sampling and purposive sampling While convenience sampling is the least reliable regarding generalizability, it can be the only viable option for obtaining quick information or conducting exploratory research (Canava et al 2001).
The interviews were implemented to employees in banking industry was based on convenience sampling
A reliable and valid sample is essential for generalizing findings to the broader population, as noted by Canava et al (2001) This means that the statistics derived from the sample should closely estimate the population parameters with minimal error The determination of sample size hinges on the desired precision and confidence levels in estimating these parameters, alongside the inherent variability within the population.
Determining the appropriate sample size for research remains a complex issue, influenced by the statistical methods employed Tho and Trang (2007, as cited in Trung, 2009) highlight that while there is no definitive answer, many researchers recommend a minimum sample size of 100 to 150 responses when using Maximum Likelihood (ML) methods Additionally, some suggest that at least five observations should be allocated per estimated parameter A common guideline for exploratory factor analysis (EFA) indicates that the sample size should be four to five times the number of variables analyzed Consequently, this study aims for a sample size of at least 150 participants or more.
A total of 205 responses were gathered through face-to-face interactions, email distribution, and an online survey However, 28 responses were excluded due to incomplete feedback, resulting in a missing rate of 11.5% Ultimately, 177 questionnaires were deemed usable for analysis.
Research methodology literature highlights various survey methods, including face-to-face interviews, telephone interviews, and mail or online surveys Notably, face-to-face surveys tend to achieve higher response rates and enable researchers to utilize physical stimuli to enhance the interview process (Zikmund, 1997).
Trung, 2009) It also allows interviewers to clarify the meanings of ambiguous or complex questions
In this study, the data was collected by 3 methods:
‐ Email delivery and distribution method
‐ Online survey method (http://edu.surveygizmo.com/s3/565448/roleclarity- jobsatisfaction-leadershipstyle)
The phone interview method was discontinued due to high costs In face-to-face interviews, researchers first briefed participants on the study's purpose before proceeding to the questionnaire For the email delivery method, the study's purpose was included with the questionnaire However, no explanatory documents were provided in the online method due to technical limitations.
The interview, conducted over a five-week period in July 2011, emphasized the voluntary nature of participation, allowing participants to withdraw at any time To promote honest and candid responses, participants were assured that their answers would remain confidential and reported only in aggregate form.
The research model utilized a 7-point Likert scale for all items, while demographic parameters were measured using ordinal scales: bank name (1 to 12), education (1 to 3), gender (1 or 2), and position and working experience (1 to 5).
Measurement scales development
As discussed in chapter 2, there are five constructs in the theoretical model These are:
(1) directive leadership style; (2) participative leadership style; (3) empowering leadership; (4) role clarity; and (5) job satisfaction
To effectively implement three types of leadership behaviors—directive, participative, and empowering—suggestions from the Leader Behavior Description Questionnaire (Version 12) by Cook et al (1981) were utilized, encompassing seven items for directive leadership, four items for participative leadership, and eight items for empowering leadership.
Directive leadership style (1 = strongly disagree, 7 = strongly agree)
1 My manager lets employees know what his expectation is
2 My manager encourages the use of uniform procedures
3 My manager tries out his ideas on employees
4 My manager makes his attitude clear to employees
5 My manager makes sure that his role in the organization is understood by employees
6 My manager maintain definite standards of performance
7 My manager ask employees follow the standard rules and regulations
Participative leadership style (1 = strongly disagree, 7 = strongly agree)
1 My manager encourages employees to participate in important decision
2 My manager encourages employees to speak out when they disagree with a decision
3 My manager often make decisions with asking employees for opinions
4 My manager make important decision with involving employees
Empowering leadership style (1 = strongly disagree, 7 = strongly agree)
1 My manager allows employees complete freedom in their work
2 My manager permits employees to use their own judgment in solving problems
3 My manager encourages initiative in employees
4 My manager lets employees do their work the way they think best
5 My manager turn employees loose on a job, and let them go to it
6 My manager assigns tasks, then let employees handle them
7 My manager allows employees a high degree of initiative
8 My manager trusts employees to exercise good judgment
Next, the operationalization of the construct reflects the components of role clarity are identified in Sawyer’s (1992) measures of role clarity The 9 items scale was developed:
Role clarity (1 = very uncertain, 7 = very certain)
2 The goal and objectives of my job
3 How my work relates to the overall objectives of my work unit
4 The expected results of my work
5 How to divide my time among the tasks required of my job
6 How to schedule my work day
7 How to determine the appropriate procedures for each work task
8 The procedures I use to do my job are correct and proper
9 Considering all your work tasks, how certain are you that you know the best way to do these tasks
Finally, the Brown and Peterson (1993) scale measurement of job satisfaction was combined with Rusbult and Farrell (1993) instrument to derive 7 items job satisfaction scale used in this study
Job satisfaction (1 = strongly disagree, 7 = strongly agree)
1 If I had to decide all over again, I would still choose the job I have now
2 I will recommend my friend for applying job for current organization
3 General organization’s job policies is good
4 I receive strong support to complete job from organization
5 I have opportunities for advancement with organization
6 This job is my ideal job
7 This is just like the job I wanted when I started this job
The summary of measures used in this study is described in Table 3.2:
Table 3.2 Measures used in the study
Cook et al (1981) A seven-item scale from the Leader Behavior Description
Questionnaire-Version 12 (LBDQ XII) that measures the extent to which managers direct employee activities and set standards
Cook et al (1981) A four-item scale from the LBDQ XII that measures the extent to which managers allow employees to express opinions and participate in decision making
Cook et al (1981) An eight-item scale from the LBDQ XII that measures the extent to which managers empower employees to use their own initiative and judgment
Role Clarity Sawyer (1992) A nine-item scale that measures the level role clarity
(goal clarity and fulfill their roles)
Job Satisfaction Brown and Peterson
A seven-item scale that measures the extent to which employees are satisfied with variety of job dimensions
The employee survey utilized a 7-point scale, with responses ranging from 'strongly disagree' (1) to 'strongly agree' (7) To ensure relevance to the current study, the draft measurement scales were refined through focus group discussions during the preliminary research phase.
A preliminary survey was carried out through a focus group discussion involving 8 senior employees from three credit institutions: ACB, Prudential, and Citibank, conducted via a Yahoo conference meeting The outcome of this discussion led to the development of a modified scale.
In the refinement of our research, we eliminated 35 draft variables to enhance clarity and relevance Specifically, the item “My manager turns employees loose on a job, and lets them go to it” was removed from the empowering leadership style scale as it overlaps with other items Additionally, three items from the role clarity scale—“How to determine the appropriate procedures for each work task,” “The procedures I use to do my job are correct and proper,” and “Considering all your work tasks, how certain are you that you know the best way to do these tasks”—were omitted due to their focus on company workflow and policy rather than leadership style impact The item “How to schedule my work day” was also removed as it was redundant In the job satisfaction scale, the item “I receive strong support to complete my job from the organization” was deleted due to its low correlation with employee satisfaction Finally, the item “I will recommend my friend for applying for a job at the current organization” was excluded, reflecting the influence of Vietnamese personality characteristics.
Remaining 28 items are summarized in Table 3.3
Dimension Question/Item/Variable Item Code
My manager lets employees know what his expectation is DL1
My manager encourages the use of uniform procedures DL2
My manager tries out his ideas on employees DL3
My manager makes his attitude clear to employees DL4
My manager makes sure that his role in the organization is understood by employees DL5
My manager maintain definite standards of performance DL6
My manager ask employees follow the standard rules and regulations DL7
My manager encourages employees to participate in important decision PL1
My manager encourages employees to speak out when they disagree with a decision PL2
My manager often make decisions with asking employees for opinions PL3
My manager make important decision with involving employees PL4
My manager allows employees complete freedom in their work EL1
My manager permits employees to use their own judgment in solving problems EL2
My manager encourages initiative in employees EL3
My manager lets employees do their work the way they think best EL4
My manager assigns tasks, then let employees handle them EL5
My manager allows employees a high degree of initiative EL6
My manager trusts employees to exercise good judgment EL7
My duties and responsibilities RC1
The goal and objectives of my job RC2
How my work relates to the overall objectives of my work unit RC3
The expected results of my work RC4
How to divide my time among the tasks required of my job RC5
If I had to decide all over again, I would still choose the job I have now JS1 General organization’s job policies is good JS2
I have opportunities for advancement with organization JS3
This job is my ideal job JS4 This is just like the job I wanted when I started this job JS5
The final constructs, refined through preliminary research, were utilized as the official questionnaire for the main survey, with the Vietnamese version of these measures provided in Appendix 1.
Summary
This chapter outlines the research methodology and procedures utilized in this study, offering a rationale for the chosen methods It emphasizes the creation of the questionnaire and the analytical techniques used to evaluate the propositions and address the research questions.
This chapter also described the statistical methods employed for data analysis, including validity, dimensionality and reliability assessments The next chapter reports the results of the data analysis.