3.1 RESEARCH INTRODUCTION
The research is conducted through quantitative research methodology with direct interview technique. Research sample is collected by the convenient sampling method with more than 300 employees of enterprises in Ho Chi Minh City. The scale and theoretical model are tested along with hypotheses by Cronbach Alpha reliability coefficient; exploratory factor analysis EFA, correlation linear regression analysis, ANOVA variance comparison and mean test T-Test based on the data collected and the analytical process is conducted through SPSS statistical software and is shown in figure 3.1.
3.2 RESEARCH PROCEDURE
Figure 3.1: Research procedure
Applying scale
Eliminating variables with small correlation coefficient
Testing Cronbach Alpha reliability coefficient
Eliminating variables with small EFA index
Testing extracted elements Theory of the relationship between
the new leadership style in quality and personal development, team and organization – Bass & Avolio, 1985-1990
Adjusting
Official research. Using questionnaire to interview directly (n=286)
Scale evaluation
Exploratory factor analysis (EFA) Linear regression analysis
Measuring results and
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3.3 RESEARCH MODEL
The research model of “The new leadership style in quality and employeeloyalty at enterprises in Ho Chi Minh City” includes three concepts with six components through 19 observed variables in eight hypotheses.
The scale was constructed in the form of measurement introduced by Rennis Likert (1932).
There are five ranks in which the fifth rank is equivalent to the level of totally agree and the first rank equates totally disagree.
3.3.1 Research variables
The research variables are categorized into three groups, the new leadership in quality, the employee satisfaction and the employee loyalty to the organization.
3.3.1.1 The scale of “ The new leadership style in quality”
Within the scope of this thesis, the author focuses on studying the new leadership style in quality, also applying the measuring scale MQL (Bass & Avolio, 1990). The scale of the new leadership style in quality includes four components that form the style of “new leadership in quality” (four independent variables).
(1) Prestige of the leader or ideal influence (2) Spiritual encouragement
(3) Individual attention
(4) Encouragement of usage of staffs’ intellectual competence
Component variables of the scale of the new leadership style in quality will be presented through 10 observed variables.
3.3.1.2 The scale of “ Employee satisfaction”
The scale of employee satisfaction includes two criteria for evaluation:
(1) General satisfaction on jobs, company, and personal development
(2) Satisfaction in positive influence of the company’s management on the organization and personal.
3.3.1.3 The scale of “ Employee loyalty to the Organization”
The scale of employee loyalty to the organization includes three criteria for evaluation:
(1) Being willingness to introduce the company as a good place to work (2) Being willingness to introduce products/services of the company (3) Long-term commitment to the company
3.3.2 Research hypotheses
This research is conducted to figure out the connection between the leadership style and the 12
satisfaction, loyalty of employees to the organization in Vietnamese conditions.
3.3.2.1 The influence of the new leadership in style on the employee satisfaction
According to the model of Bass (1985) and the result of the study on influence of leadership style on the satisfaction and performance of employees in banking industry at the United Arab Emirates (2005), administrators who practiced the new leadership style in quality have positive influences on the satisfaction and performance of the employees.
Group of research hypotheses in Vietnamese conditions:
H1.1 The increase or decrease of employee satisfactionfollowsthe increases or decreases in performing level of “Leaders’ prestige”.
H1.2 The increase or decrease of employee satisfactionfollow the increases or decreases in performing level of the spiritual encouragement of leaders.
H1.3 The increase or decrease of employee satisfactionfollowsthe increases or decreases in performing level of individual attention of leaders.
H1.4The increase or decrease of employee satisfactionfollowsthe increases or decreases in performing level of encouragement of usage of staff’s intellectual competence of leaders.
3.3.2.2 The influence of the new leadership style in quality on the employee loyalty to the organization
From research and conclusions of many researches by international organizations, they stated that “Employees donot leave companies, they leave managers” (Western proverb). Therefore, the leadership style of the administrators was believed to have a direct influence on employeeloyalty to the organization. Researchhypotheses
H2.1 The increase or decrease of employee loyaltyfollows the increases or decreases in the performing level of “Leaders’ prestige”.
H2.2 The increase or decrease of employee loyalty followsthe increases or decreases in theperforming level of the spiritual encouragement of leaders.
H2.3 The increase or decrease of employee loyalty followsthe increases or decreases in the performing level of individual attention of leaders.
H2.4 The increase or decrease of employee loyalty followsthe increases or decreases in the performing level of encouragement of usage of staff’s intellectual competence of leaders.
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3.3.3 Reasearch model diagram
Figure 3.2 The research model of the relationship between the new leadership style in quality and the satisfaction, loyalty of employees to the organization
Spiritual encouragement (3 variables)
Individual attention (3 variables)
Encouragement of usage of staff’s intellectual competence
(2 variables)
Employee loyalty (5 variables)
14 Leaders’ prestige
(2 variables)
Employee satisfaction (4 variables)
3.4 DATA PROCESSING METHOD
First, the research will test the value of the scales on practical influences of the leadership style on the satisfaction and loyalty of employees. The scales are preliminarily evaluated through the result of testing Cronbach Alpha reliability coefficient. Any variables with total correlation less than 0.4 and components with Cronbach Alpha reliability coefficient less than 0.6 will be eliminated.
After processing Cronbach Alpha reliability coefficient of components of the scale, the exploratory factor analysis (EFA) and regression analysis are implemented. All scales, measuring models, research models are tested with appropriate reliability aggregation, and extracted variance.
Cronbach Alpha reliability coefficient test and EFA test are all done by SPSS software.
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