Dissertation

Factors influencing employee performance: case study of Dragon Logistics

Table of Content

List of Figures ....................................................................................................................... 4

List of Tables......................................................................................................................... 5

Chapter 1. Introduction ...................................................................................................... 6

1.1 Rationales for chosen topic ...................................................................................... 6

1.2 Purpose for research undertaking ............................................................................ 6

1.3 Research objectives ................................................................................................. 7

1.4 Research significance .............................................................................................. 7

1.5 Research structure .................................................................................................... 7

Chapter 2. Literature Review ............................................................................................. 9

2.1 Quality of human resources ..................................................................................... 9

2.1.1 Quality .............................................................................................................. 9

2.1.2 Importance of quality of human resources ....................................................... 9

2.1.3 Indicators of quality of human resources ....................................................... 10

2.2 Necessity of improvement of human resources quality......................................... 11

2.2.1 Role of quality of human resources in socio-economic development ........... 11

2.2.2 Necessity of improvement of human resources quality in enterprises ........... 12

2.3 Factors influencing employee’s performance ........................................................ 13

2.3.1 Transformational Leadership ......................................................................... 13

2.3.2 Organizational Culture ................................................................................... 16

2.3.3 Group of factors in AJDI ................................................................................ 17

2.4 Hypothesis development........................................................................................ 21

2.5 Summary ................................................................................................................ 21

Chapter 3. Methodology .................................................................................................. 23

3.1 Research approach ................................................................................................. 23

3.2 Research process .................................................................................................... 23

3.3 Research model ...................................................................................................... 24

3.3.1 Variable selection ........................................................................................... 24

3.3.2 Research Model .............................................................................................. 26

3.4 Data collection ....................................................................................................... 27

3.5 Summary ................................................................................................................ 35

Reference............................................................................................................................. 36

List of Figures

Figure 3-1 Research process ............................................................................................... 21

Figure 3-2 Group of selected factors ................................................................................... 24

List of Tables

Table 3-1 Measure impact of transformational leadership on staff performance ............... 25

Table 3-2 Measure impact of organizational culture on staff performance ........................ 26

Table 3-3 Measure impact of organizational culture on staff performance ........................ 28

Table 3-4 Measure impact of compensation on staff performance ..................................... 28

Table 3-5 Measure impact of working environment on staff performance ........................ 29

Table 3-6 Measure impact of benefits on staff performance .............................................. 29

Table 3-7 Measure impact of training & promotion on staff performance ......................... 30

Table 3-8 Measure impact of colleague on staff performance ............................................ 31

Table 3-9 Measure staff performance ................................................................................. 31

Chapter 1. Introduction

1.1 Rationales for chosen topic

In the context of the current complex and fiercely competitive market economics,

especially when Vietnam is now a member of World Trade Organization (WTO), companies

are being pushed into intense competition in all fields, to survive and growth (Thanh and

Duong, 2009). Many prior studies have indicated that one of the most important and

prerequisite factor for their success is human resources, among others (Belout and Gauvreau,

2004; Truong and Heijden, 2009; Adams and Le Tran, 2010; Rabbanee et al., 2010; Leung,

2012; Zhu and Verstraeten, 2013). As stated in Truong and Van Der Heijden, B. (2009),

human resources quality, more specially, staff performance plays a determining role in

success or failure of implementation of business strategies drawn by management level.

Besides, the situation that employees quit and move to another company is becoming more

and more popular. It negatively affects companies’ business operations, causes instability and

influences their objective and overall strategies. The question arising for Vietnamese

enterprises recently is what are the factors influencing staff performance.

Therefore, on the focus of human resource strategy, this dissertation concentrates on

organizational culture; leadership type; nature of work, working environment, compensation

and benefit, training and promotion, colleague relationship – in a group called Job

Descriptive Index – JDI. The research will points out the importance and interaction among

these factors and their impact on staff performance. That is expected to help the company to

come up with solutions to stabilize and improve staff performance.

1.2 Purpose for research undertaking

In the last decades, there are many researches focusing on analyzing factors influencing

staff satisfaction and level of commitment with organization, in literature (Jorde-Bloom,

1988; Podsakoff et al., 1996; Koh and El'fred, 2004; Lambert et al., 2007; Lambert and

Hogan, 2010; Aghdasi et al., 2011; Newman and Sheikh (2012). Some remarkable ones are

focusing on influence of organizational culture and leadership style on staff satisfaction and

commitment to organization, among others (Lok and Crawford, 1999; Lund, 2003; San Park

and Kim, 2009; Yiing and Ahmad, 2009; Simosi and Xenikou, 2010). In Vietnam, there are

researches on needs, satisfaction and commitment of staff to organization such as Van

Nguyen and Napier (2000); Nguyen (2008); Lakshmanan (2010); Cox et al. (2013).

This research is conducted in Dragon Logistics – a company with Japanese investment,

which is active in logistics field in Vietnam and has systems of branches, distribution,

transportation and warehouse centers across the country. The dissertation mainly focuses on

analyzing performance of staffs, including managers and employees. This research inherits

results of previous studies that specify factors influencing satisfaction, efforts of staff and

respective appropriate scales; then constructs multi-factor model and studies impact level of

such factors on staff performance.

1.3 Research objectives

Detailed objectives of the dissertation are:

Identify factors that influence performance of staff of Dragon Logistics by

establishing a regression model with such variables as organizational culture,

transformational leadership, compensation, benefit, training, promotion and staff

performance; using respective scales to quantify the variables and doing

quantitative analysis.

From the results of quantitative research, recommend solutions for Board of

Management to construct human resources policies to improve staff performance

and raise manpower quality of Dragon Logistics.

The research is to support the company to have better human resources management

through evaluating factors influencing staff performance.

1.4 Research significance

The dissertation is to pave a new direction in analyzing quality of human resources,

evaluating staff performance by quantitative method and by scientifically modeling factors. It

will help company leadership construct and focus on useful human resources strategies, in

order to stabilize and improve staff performance, manpower quality for Dragon Logistics as

well as other companies.

1.5 Research structure

The dissertation comprises five chapters:

Chapter 1: Overview of the dissertation from the corporation and research

background to research significance and research structure.

Chapter 2: Theoretical and empirical reviews on related topics of human resource

management

Chapter 3: Research methodology used to achieve the study purposes

Chapter 4: Data processing of data and discussion of results

Chapter 5: Conclusions observed throughout the study as well as solutions

proposed to optimize factors influencing staff performance.

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