UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

------------------------------



Hunh Thin Hi


FACTORS INFLUENCING
ORGANIZATIONAL COMMITMENT
AND INTENTION TO STAY OF
CORE EMPLOYEES IN
SMALL - MEDIUM SIZED COMPANIES
IN HOCHIMINH CITY




MASTER OF BUSINESS (Honours)







Ho Chi Minh City - Year 2012

































UNIVERSITY OF ECONOMICS HO CHI MINH CITY
International School of Business
------------------------------



Hunh Thin Hi


FACTORS INFLUENCING
ORGANIZATIONAL COMMITMENT
AND INTENTION TO STAY OF
CORE EMPLOYEES IN
SMALL - MEDIUM SIZED COMPANIES
IN HOCHIMINH CITY

ID: 60340102

MASTER OF BUSINESS (Honours)

SUPERVISOR
Dr. NGUYN TH NGUYT QU



Ho Chi Minh City - 2012


INDEX

ACKNOWLEDGEMENTS ...................................................................................................... 5
LIST OF FIGURES ................................................................................................................... 6
LIST OF TABLES ..................................................................................................................... 6
LIST OF APPENDIX ................................................................................................................ 7
ABSTRACT .............................................................................................................................. 9
1.1. Background to the research ........................................................................................... 10
1.1.1 The importance of small and medium sized companies ........................................ 10
1.1.2. The facts of labor force in SMEs and problem statement .................................... 10
1.2. Research objective ........................................................................................................ 12
1.3. Scope of the study ......................................................................................................... 12
1.4. Significances of the study: ............................................................................................ 12
1.5. Structure of the study .................................................................................................... 13
CHAPTER 2: LITERATURE REVIEW ................................................................................. 14
2.1. Chapter introduction ...................................................................................................... 14
2.2. Relative concepts and definition .................................................................................. 14
2.2.1.Small and medium companies ............................................................................... 14
2.2.2. Core employees .................................................................................................... 15
2.2.3. Core employee retention ....................................................................................... 15
2.3. Review of previous study .............................................................................................. 17
2.3.1. Organizational commitment ................................................................................. 18
2.3.2. Training ................................................................................................................. 19
2.3.3. Leadership ............................................................................................................. 19
2.3.4.Working environment ............................................................................................ 20
2.3.5. Remuneration and reward ..................................................................................... 21
2.3.6. Organizational culture and policies ...................................................................... 22


3.3.7. Intention to stay .................................................................................................... 22
2.4. Proposal research hypotheses ........................................................................................ 23
2.5. Chapter conclusion ........................................................................................................ 24
CHAPTER 3: METHODOLOGY ........................................................................................... 25
3.1 Research process ............................................................................................................ 25
3.2. Questionnaire design ..................................................................................................... 26
3.2.1 Measure of variable ............................................................................................... 26
3.2.2. Draft questionnaire ............................................................................................... 30
3.3. Pilot study ...................................................................................................................... 30
3.4 Main survey .................................................................................................................... 31
3.4.1. Sample method ..................................................................................................... 31
3.4.2. Sample size ........................................................................................................... 31
3.5. Data analysis technique ................................................................................................. 32
3.5.1. Recoding data ....................................................................................................... 32
3.5.2. Testing of Reliability ............................................................................................ 32
3.5.3. Exploratory factor analysis (EFA) ........................................................................ 33
3.5. 4. Hypotheses testing: Multiple Regression Analysis ............................................. 33
3.7. Chapter conclusion ........................................................................................................ 34
CHAPTER 4: DATA ANALYSIS .......................................................................................... 35
4.1. Sample description and data clearance ......................................................................... 35
4.2. Demography Sampling .................................................................................................. 35
4.4. Testing of Reliability ..................................................................................................... 36
4. 5. Exploratory factor analysis (EFA) ............................................................................... 37
4.7. Chapter conclusion ........................................................................................................ 43
5.1. Finding and discussion .................................................................................................. 45
5.2. Limitation ...................................................................................................................... 46


5.3. Suggestion for future Research ..................................................................................... 47
APPENDIX ............................................................................................................................. 55
APPENDIX 1.1: QUESTIONAIRE (English version) ........................................................ 55
APPENDIX 1.2: QUESTIONAIRE (Vietnamese version) ................................................. 59
APPENDIX 4.1 CODING ................................................................................................... 62
Appendix 4.2 Demography .................................................................................................. 65
Appendix 4.3: Testing of reliability variables ..................................................................... 65
Appendix 4.4 . EFA for all independent variables ............................................................... 67
Appendix 4.4 .1. EFA for all independent variables (The first time in 4 times) ............ 67
Appendix 4.4.2: EFA with all independent variable (the second time in 4 times) ........ 68
Appendix 4.4 .3. EFA for all independent variables (The third time in 4 times) ........... 70
Appendix 4.4 .4. EFA for all independent variables (The fourth time in 4 times) ......... 71
Appendix 4.5. Regression, model 1. Independent variables: Training, leadership,
remuneration and company policies; dependent variable: Commitment ............................. 73
Appendix 4.6. Regression, model 2. Independent variables: Organizational Commitment;
dependent variable: intention to stay .................................................................................... 76












5

ACKNOWLEDGEMENTS
First at all, I would like to express my sincere gratitude to my supervisors, Dr.
Nguyen Thi Nguyet Que for her continuous support of my thesis.
I would like to take this opportunity to thank leaders, teachers and staffs in ISB who
help me usefully all the subjects of my master course.
My sincere thanks also goes to the friends and colleagues who participated in the
initial trial survey stages that led to the development of the final survey questionnaire and
their support over the time when I am busy to study.
I would like to thank my Mummy, my sisters, brothers and my special friend who is
my moral support in all my studying period.
Last at all, I would like to present the achievement to my Dad's soul who spent all the
life for my family
Ho Chi Minh City, December 28, 2012

Huynh Thien Hai





6

LIST OF FIGURES
Name of configure Page
Figure 2.1 proposal research hypothesis 24
Figure 3.1 Research Design Process 26
Figure 4.1 Final model
44
LIST OF TABLES
Table name Page
Table 2.1. Classification of SMEs in Vietnam 16
Table 3.1. Measurement of training and career
development
27
Table 3.2. Measurement of leadership
27
Table 3.3. Measurement of working environment
28
Table 3.4. Measurement of remuneration and
rewards
29
Table 3.5. Measurement of company policies 29
Table 3.6. Measurement of organizational
commitment
30
Table 3.7. Measurement of intention to stay
30
Table 3.8: Cronbachs alpha reliability coefficient
33
Table 4.1 Sample Demography 37
Table 4.2: Cronbachs alpha reliability coefficient
of variable 37
Table 4.3: Pattern matrix in the last time (the fourth
time) of regression analysis 37
Table 4.4 Correlations model 1 40
Table 4.5 Model Summary
b
model 1 40
Table 4.6 ANOVA of model 1 41
Table 4.7. Coefficients
a
of medel 1 41
Table 4.8 Model Summary
b
model 2 43
Table 4.9. Coefficients
a
of model 2 43
Table 5.1. Questionnaire for organizational polices 46


7

LIST OF APPENDIX





















Appendix name Page
APPENDIX 1.1: ENGLISH QUESTIONAIRE 55
APPENDIX 1.2: VIETNAMESE QUESTIONAIRE 50
APPENDIX 4.1 CODING 62
Appendix 4.2 Demography 65
Appendix 4.3: Testing of reliability of variables 65
Appendix 4.4. EFA for all independent variables 67
Appendix 4.4 .1. EFA for all independent variables (The first
time in 4 times)
67
Appendix 4.4.2: EFA with all independent variable (the
second time in 4 times)
68
Appendix 4.4 .3. EFA for all independent variables (The third
time in 4 times)
70
Appendix 4.4 .4. EFA for all independent variables (The
fourth time in 4 times)
71
Appendix 4.5.Correlation bivariable model 1 73
Appendix 4.5.Correlation bivariable model 2 76
8

LIST OF ABBREVIATION
SME ................................................................................. Small and medium sized company
SMEs ............................................................................ Small and medium sized companies
HCMC ........................................................................................................... Hochiminh City
VCCI ............................................................... Vietnam Chamber of Commerce and Industry
HR ................................................................................................................... Human resource
VND .................................................................................................................. Vietnam Dong
WTO ........................................................................................ the World Trade Organization
WB ........................................................................................................................ World Bank











9

ABSTRACT
Employee retention especially core employees is one of the most important ongoing
practices of human resource management. Employees turnover is a major HR organizational
threat. The problem is being faced by different organizations of almost all the countries.
Organizations are trying different plans to get maximum output from employees. Core
employee retention is one of the main factors that could help in achieving the required
results.
There are many theories for retention employees but there is not any closed research for
SME employees in HCMC.
This study elaborates the retention of core employees; its benefits and factors that may help
to retain the best employees of the organization.
Questions with five-point Likert scale are used to the research for investigating needs of core
employees. Base on the result of investigation, the most affective factors among of factors:
training-career path; leadership; working environment ; remuneration-rewards and
organizational culture-policies will be recognized. Intermediary variable is organizational
commitment that is used in the research.
The research findings prove significant relationship of training-career path; leadership;
working environment; remuneration-rewards and organizational culture-policies that
influence the staying decision of core employee. This study will help SMEs in HCMC to find
out various HR policies and to revise their current policies for further improvements.

10

CHAPTER I: INTRODUCTION
1.1. Background to the research
1.1.1 The importance of small and medium sized companies
Small and medium sized companies (after here called by SMEs) are important to almost all
economies in the world. SMEs are main element in all economics, in Europe, there are 57
per cent of 1- person enterprises, 34 per cent of micro enterprises (less than 10 employees);
7.7 per cent of small enterprises; 1per cent of medium, totally of SME is 99.7 per cent but
there are only 0.27 per cent of large companies and 0.03 per cent of Stock Exchange (Agns,
2010). SMEs in Russia (with up to 250 employees) account for about 90 per cent of the total
number of firms, they provide 45 per cent of total employment and they account for 40 per
cent of total sales; SMEs in China account for 99.9 percent of the total number of firms, they
provide 84 per cent of total employment and account for 71 percent of total sales (Qimiao,
2003).
General Statistics Office (2012) reported SMEs are approximately 97 per cent of 448.393
companies in Vietnam and they represent the main drivers in obtaining employment and
VCCI (2012) reported SMEs contribute 60 per cent GDP in Vietnam with the capital of 6
million billion VND
1.1.2. The facts of labor force in SMEs and problem statement
Although there are many important SME's distribution, they still face many problems in HR,
the demands for the human resource is increasing and the lack of the right personnel,
especially in the management personnel, prevent the SMEs development.
One of the specifications of HR in SMEs is not clearly function between administration and
human resource such as administration usually is responsibility recruitment function in
SMEs, but that are 2 different functions of HR in the organization (Torben., 2003)
SMEs is very hard to completive with other organization type to attract qualified employee
because there is not clearly policies to intent them. According to a recent poll of
undergraduates and recent graduates of the three local universities, Singapore Management
11

University (SMU), National University of Singapore (NUS) and Nanyang Technological
University (NTU), MNCs, as a category, still outstrip SMEs as employers of choice.
Recruitment firm Jobs Factory, which polled over 4,500 students, revealed that in this years
survey, the top five employers of choice in the private sector are Apple, Singapore Airlines,
Google, 3M and DBS Bank all large companies with operations across the world. It is not
difficult to see why job seekers flock to MNCs. Besides the easily-recognizable brand
names, they are also seen as organizations that are more transparent, offer higher
remuneration, superior benefits and strong organizational structure all of which point to
better career prospects. Recent surveys have highlighted that liL-Lliculture and
work-life balance are important to the younger generation, and bigger firms are perceived to
be more flexible or at least, more open to suggestion in these areas. Conversely, SMEs
are often seen to be non-transparent, authoritarian and less professional (than MNCs). More
often than not, the founder/boss inner circle is made up of family and relatives, with
competence a secondary consideration. (Developing an Argument, 2010)
Employee working life in SMEs is short, most of employee think SMEs is temporary place,
so they do not have any long term plan for the SME. The other specification of employees in
SMEs is they are not confident working, always waiting direction for leader.
The studies indicated that the work relationship between the employer and the employee in
SMEs is not generally governed by a contract. Only (15%) of the workers had a contract (El
Mahdi, Nov.1999). The lack of contract may just be a reflection of the traditional and
informal environment in which SMEs is conducting its affairs. So, the most important issue
of SMEs is the insecurity of the workers regarding their future, due to the lack of social
security coverage and due to the fact that employers are not bound by any contract towards
their employees.
The previous studies indicated that although the provision of technical and other aspects of
running the small firms are highly needed, the training assistance that is offered to small
enterprises through the different programs of support and finance is almost negligible.
According to the study of Soliman et al., (1998) only 66.9% of the studied projects indicated
12

that they did not get any kind of assistance, especially training, from the finance providers.
Despite the fact that a few studies tackled the issue of small enterprises, employment and
micro-finance, none of these research tried to assess the kind of relationship that exists
between offering micro finance and employment creation in the small enterprises.
There are many reasons (or factors) are influencing employee but there is no study that
researches what the factors more affect to employee, which factors are influencing
organizational commitment and intention to stay of employee in the SMEs. Those questions
are the problem of labour force in SMEs and that will be answered in the study.
1.2. Research objective
In the thesis, we will review relevant theories and previous researches on factors that have
impact on the intention to stay of core employees stay in SMEs. Specially, the study will
investigates what factors influencing the intention to stay of core employees and measure
how deep the influencing factors effect organizational commitment and intention to stay of
core employees.
1.3. Scope of the study
Purpose of the research investigate and determine the factors the affective staying decision of
core employees in SMEs, it will exam the relative between the factors and identify the
factors which are strongly affective the organizational commitment and intention to stay of
core employees in SMEs. The result of this research can be applied to SMEs in HCMC and
help SME directors re-construct company and give new human resource policies that to
retain core employees
1.4. Significances of the study:
HCMC is the biggest trading, financial and service center of Vietnam. There are over
170.000 SMEs, among of 38 per cent of SMEs in Vietnam. SMEs in HCMC is very flexible
so they are not only achieve the best result but also get bad influence with any negative
chances. There are many companies among 26.324 companies that quit in 6 months in
beginning 2012 face difficult situation to retain core employees. Because of the importance
13

of core employees and their position of HCMC, this research focus in retention core
employees in SMEs in HCMC.
In general, core employees are normal employees with some special specification such as
working period, their importance in organizations,...So besides normal requested as normal
employees, they need more request and to meet their requests is one of the key to retain them
in organizations. In next chapter, the study will show the request of core employees
1.5. Structure of the study
The study consists of five main content
Introduction: Overview of SMEs such as the importance of SMEs, the facts of labor force
in SMEs, research objective, scope of study and Significances of the study
Literature review: Some relative concept and definition of the study will be explained in
this chapter such as small and medium companies, core employees, core employee retention
as well as review of previous study about training and Career path; leadership; working
environment; remuneration & reward; organizational culture and policies; organizational
commitment and intention to stay. Proposal research hypotheses will be introduced in this
chapter
Methodology: Research process will be introduced in this chapter. This chapter also
introduces the methodologies of questionnaire design, measure of variable, draft
questionnaire, pilot study as well as the way to collect data and methodologies of data
analysis.
Data analysis: Collected data will be analyzed in this chapter. This analysis include testing
of Reliability, exploratory factor analysis (EFA) and hypotheses testing: Multiple Regression
Analysis
Finding, discussion, limitation and suggestion for future study : This is the result of the
study distribution of study for theory and applied, the limitation of the study and suggest to
later study
14

CHAPTER 2: LITERATURE REVIEW
2.1. Chapter introduction
There are many previous study for the factors that influencing organizational commitment
and intention to stay of core employee in the world. In this chapter, the definition of core
employee, SMEs, core employee retention and the factors influencing organizational
commitment and intention to stay of core employee are introduced. Hypotheses, proposal
scales are introduction is also showed in this chapter
2.2. Relative concepts and definition
2.2.1.Small and medium companies
That is synonymous definition between small and medium companies and small and
medium sized enterprises. The abbreviation "SME" for small and medium sized companies
is used in the European Union and by international organizations such as the WB, and WTO.
The term "small and medium businesses" (or SMBs) is predominantly used in the USA. In
most economies, smaller enterprises outnumber large companies by a wide margin. SMEs
are said to be responsible for driving innovation and competition in many economic sectors.
Wikipedia (2012) defined that are the companies whose personnel number fall below certain
limit. The certain limits are different from the countries. The EC definite SMEs are three
broad parameters which define SMEs: micro-entities are companies with up to 10
employees; small companies employ up to 50 workers, whilst medium-sized enterprises have
up to 250 employees.
In Vietnam, Decree No. 56/2009/ND-CP dated 30/6/2009 of the Government defined SMEs
are the organizations that are less than 200 employees or capital less than 100 billion
Vietnam Dong,. More detail show in table 2.1





15

Table 2.1: Classification of SMEs in Vietnam (Decree No. 56/2009/ND-CP)

Scope of business Micro
company
Small company Medium company
Employees Employees Capital (bil) Employees Capital (bil)
Agriculture, Forestry, Less 10 10-200 Less 20 20-200 20-100
Industry and
construction
Less 10 10- 200 Less 20 20-200 20-100
Trading and services Less 10 10-50 Less 10 50-100 10-50

2.2.2. Core employees
Core employee are permanent employees comprising the central and foundational group that
provides the skills essential to the survival and growth of an organization. Core employees
are supported in their work by contingent or peripheral employees. (Business Dictionary)
Critical job functions will be retained by small group, relatively permanent "core" of
employees with board skill allowing them to tackle a variety of jobs (Janet, 2004). As
definition from Renee (2012) a core employee is a full-time attendance. Core employee
usually are required to work at least 40 hours per week. Core employees are necessary for a
business to function. A contingent worker is usually a temporary worker.
Definition of core employee in the research is person who works full time (Renee, 2012),
they are the persons who respond multi job and affect on other person (Janet, 2004) and
work for organization more than 6 months
2.2.3. Core employee retention
Once a SME finds an employee, it's very hard to find knowledgeable people who is suitable
to expect position because some disadvantage of SMEs. Hiring knowledgeable people for
the job is essential for an employer. But retention is even more important than hiring. In
order to keep employees motivated and willing to stay with the organization, the company do
not only pay more but also make motivation working environment.
16

Harvard Manage Mentor Journal (2012) said Core employee retention is to keep that people
who will help the organization remain competitive to competitors in the market
In other hand, when core employee leaves, the organization will loss many things: the
turnover is high so the cost of turnover (including hiring costs, training costs and
productivity loss) is high; When an employee leaves, valuable knowledge about the
company, customers, current projects and past history will go with him, employer must pay
much time and money has been spent on the employee in expectation of a future return.
When the employee leaves, the investment is not realized; customers and clients do business
with a company in part because of the employee. Relationships are developed that encourage
continued sponsorship of the business. When an employee leaves, the relationships that
employee built for the company are severed, which could lead to potential customer loss.
When an employee terminates, the effect is felt throughout the organization. Co-workers are
often required to pick up the slack. The unspoken negativity often intensifies for the
remaining staff. The goodwill of a company is maintained when the attrition rates are low.
Higher retention rates motivate potential employees to join the organization. If an employee
resigns, then good amount of time is lost in hiring a new employee and then training him/her
and this goes to the loss of the company directly which many a times goes unnoticed. And
even after this you cannot assure us of the same efficiency from the new employee
Employee retention is beneficial for the organization as well as the employee. They are not
the ones who dont have good opportunities in hand. As soon as they feel dissatisfied with
the current employer or the job, they switch over to the next job, and when they left, with
their effectiveness, other employees will be left or their willing go down in a period.. A good
employer should know how to attract and retain its employees.
The question of SME leaders is how to retain their employee, especially core employee as
long as possible. The problems that are companies should found desire of core employees,
but that is very difficult because each employee has different desire even it are different in
each stage of their life.
17

2.3. Review of previous study
Best employees searching will be very difficult things in coming years for organizations,
core employee retention is a process not only to maintain existing core employees but also
recruits right person to appropriately position. In the scope of study, researcher studies
factors to maintain core employees in SMEs
There are several previous research about employee retention topic with various result and
ideas to applied to organizations.
Retention can be possible by many ways but one of the most used in organizations is paying
more than they are earning. Hansen (2002) argued that pay more to the employees in order to
achieve better financial position and retain those employees who lead from the front to attain
business goals. Short and long term incentives should be given according to the goals of
business that will help to have more organized and strong management team for long term
results. Lawler II (2005) stated that in these days organizations are competing for talent
rather than counting employees loyalty. They are focusing on attracting, hiring and retaining
the required core persons. For this purpose organizations must utilize those practices which
are in favor of both employees and employers leading them towards higher performance
levels.
We have closed look to development of employee retention concept to now (2012):
From 1975, Dubin et al., found a strong relationship between central life interests of
workers and their commitment to the organization. This research show the relationship
between work value and commitment to the organization.
Ans et al., (2003) found employees staying in decision has found some positive effects on
the job content, social atmosphere, work-life balance, career development.
Janet (2004) in her PhD thesis for retention of core employee in SMEs in Australia, argued
that core employees retention higher if they get high human commitment: with human
resource practice and organization factors such as selection (organization fit), remuneration
and rewards. Training and career develop, challenging work and opportunities and
18

organization commitment such as leadership, team work, organizational culture and policies,
work environment;
Prateek et al., (2011) said Organization commitment (ownership, loyalty, attachment),
Career Advancement (career needs, career path, career planning and management), quality of
work life (fair compensation, working condition, job Involvement) has some direct and
independent effects organizational commitment and intention to stay of core employee.
Bhavna & Swati (2012) researched the quality of working relationships, workplace
leadership, having a say, clear values, being safe, the built environment, recruitment, pay and
conditions, getting Feedback, autonomy and uniqueness, a sense of ownership and identity,
learning, passion, having fun, community connections, that can influence iorganizational
commitment and intention to stay of core employee in the organization
2.3.1. Organizational commitment
The concept of organizational commitment has attracted considerable attention over recent
years and has become a central objective of human resource management. As Guest (1987)
indicated, HRM policies are designed to maximize organizational integration, employee
commitment, flexibility and quality of work. For the topic in question our focal interest
refers to Commitment which can be described as attachment and loyalty. Individuals can
display this attachment and loyalty at a variety of levels: their job, profession, department,
boss or organization. Realistically then, commitment may therefore be diverse and divided
between any of these. More specifically, organizational commitment has been defined by
Mowdray (1992) as consisting of three components: an identification with the goals and
values of the organization, a desire to belong to the organization and a willingness to display
effort on behalf of the organization.
Shorter meaning of organizational commitment in the study that is satiability of core
employees in SMEs
19

2.3.2. Training
That definition is called by different way by the authors: Learning, training opportunities
(Bhavna. & Swati., 2012; Waleed., 2011) training and career development (Muhammad,
2011), coaching (Liette, 2010), training and development, (Mohammad A. & Mohd H.R. J.,
2009), learning and development (Andy et al., 2003), amount of training available, training
methods (Karen, 2001), training and career develop (Janet, 2004)
As Dawn R. Mc. K (2012) Career development, a major aspect of human development, is the
process through which an individual's work identity is formed. It spans one's entire lifetime.
Career development begins with a person's earliest awareness of the ways in which people
make a living, continues as he or she explores occupations and ultimately decides what
career to pursue, prepares for it, applies for and gets a job and advances in it. It may, and
probably will include, changing careers and jobs.
If the SME leaders help core employee set their career path, that is weapon to retain them
because they feel ensuring their jobs in the future Career path is a system which is organized,
formalized and its a planned effort of achieving a balance between the individual career
needs and the organizations workforce requirements (Leiboiwitz et al, 1986).
H 1: Training and career path has positive impact on organizational commitment
2.3.3. Leadership
That was defined by different words as Workplace leadership (Bhavna & Swati, 2012)
Management style and lack of opportunities (Waleed, 2011), good leadership (Petra, 2011),
supervision (Kazi & Sisi, 2011), a sense of ownership and identity (Bhavna & Swati, 2012),
leadership behavior (Mohammad & Mohd, 2009), trust in supervisor (Fleischlin, 2008),
having a say (Agarwal & Gupta , 2012), supervisor support (Muhammad, 2011), leadership
(Janet, 2004)
20

Leadership is definite as behavior of an individual that result in none-coercive influent when
that person in directing and cooperating the activities of a group towards the accomplishment
of the shared goal (Bryman, 1992). That affect directly to retain core employees.
One of the most important factors that have impact on commitment is the relationship
between a core employee and a supervisor. Leaders are the human face of an SMEs.
(Eisenberger, 1990), leader interact as a link to practice applications among stated goals and
expectations. By harmonizing the competing demands, they support in managing both inside
and outside the work environment. If the relationship does not exceed then employee will
seek to any other opportunity for new employment and vice versa. The leader support is so
essential to retention that it can be said that employees leave bosses, not jobs (Ontario,
2004). If the leader focuses towards the employees progress, other than the formal
evaluation process; this improves the employees retention and commitment towards the
SMEs. (Freyermuth, 2007).
H 2: Leadership is has positive impact on organizational commitment.
2.3.4.Working environment
There are many alternative names with the same meaning: The quality of working
relationships (Bhavna & Swati, 2012), the built environment, work place environment
(Bhavna & Swati, 2012., Waleed, 2011), work place culture (Waleed, 2011), work
environment (Muhammad, 2011), working environment (Yasir & Hussain, 2011), working
environment (Mohammad & Mohd, 2009), trust in company (Fleischlin, 2008), being safe
(Bhavna & Swati, 2012), positive and negative situations (Waleed, 2011), having fun
(Bhavna & Swati, 2012), freedom and autonomy (Petra, 2011), highly incentive work (Petra
2011), working environment (Yasir & Hussain, 2011), working environment, (Mohammad &
Mohd, 2009) having job security (Elizabeth et al., 2008), internal communications (Andy et
al, 2003), Social atmosphere (Ans et al., 2003), work environment (Janet, 2004)
The purpose of the study by Nadeem et al., (2011) was to determine what relationships
between working environment and organizational commitment. That is support of the
21

organization for flexible time working, working stress. Working environment is one of the
factors that affect core employees decision to stay with the SMEs. Its very important to
recognize the emerging needs of individuals to keep them committed and provide the work
environment as necessitate (Ramlall, 2003). Milory (2004) reported that people enjoy
working, and strive to work in those SMEs that provide positive work environment where
they feel they are making difference and where most people in the organization are proficient
and pulling together to move the organization forward. Workspace designs have a profound
impact on workers and tend to live with job as long as satisfied (Brill et al., 2001).
H 3: Working environment has positive impact on organizational commitment.
2.3.5. Remuneration and reward
That is defined by some researchers by different words: compensation and rewards is more
popular and was called by Waleed (2011) Muhammad (2011) Kazi & Sisi (2011),
Mohammad & Mohd (2009) and Elizabeth et al.(2008); Waleed (2011) called it is pay and
conditions, Muhammad (2011) called it is salary and wages rewards, Janet (2004) called it is
remuneration and rewards
The term reward is discussed frequently in the literature as something that the organization
gives to the employees in response of their contributions and performance and also
something which is desired by the employees (Agarwal, 1998). A reward can be extrinsic or
intrinsic it can be a cash reward such as bounces or it can be recognition such as naming a
worker employee of the month, and at other times a reward refers to a tangible incentive,
reward is the thing that an organization gives to the employee in response of their
contribution or performance so that the employees become motivated for future positive
behavior. In a corporate environment rewards can take several forms. It includes, cash
bonuses, recognition awards, free merchandise and free trips. It is very important that the
rewards have a lasting impression on the employee and it will continue to substantiate the
employees perception that they are valued (Silbert, 2005). That income is correlation
between compensation and employee's performance. (Shun., 2003, Sriyan, 2010)
22

H 4: Remuneration and rewards has positive impact on organizational commitment
2.3.6. Organizational culture and policies
It has been defined by the words: organization justice (Muhammad, 2011), Culture (Kazi &
Sisi, 2011), autonomy and uniqueness (Bhavna & Swati, 2012), organizational culture and
policy (Mohammad & Mohd, 2009), culture (Andy et al., 2003), organizational culture
(Karen, 2001), organizational culture and policies (Janet, 2004)
Organizational culture and policies: Culture is invisible that are management philosophy and
type, communication protocol, ritual and taboo to create the uniqueness of each company
(Furnham, 2002). The complement of organizational culture is structure: job design and
work pattern. That is including control, reporting relationship. That expresses how work to
be done and business conduct.
It is very importance in SMEs because there are a few of persons (especially for the SMEs
that is less ten employees)
H 5: Organization culture and policies has positive impact on organizational
commitment.
3.3.7. Intention to stay
According to Fishbein & Ajzen, "the best single predictor of an individual's behavior will be
a measure of the intention to perform that behaviour" (1975, p. 369). Empirical evidence
strongly supports the position that intent to stay or leave is strongly and consistently related
to voluntary turnover (Dalessio et al., 1986; Griffeth & Hom 1988; Mathieu & Zajac., 1990).
H 6: organizational commitment positive is correlated to intent to stay.
Although Janet (2004) researched very carefully for core employee retention but her
research has some limits to apply to SMEs in HCMC because with specific of characteristics,
SMEs in HCMC is different from SMEs in Australia such as they are not competitive with
bigger companies or FDI in recruitment the best person, so they cannot choose right person
23

to right position. As Hang (2001), SMEs have several characteristics: Management:
management is usually directly from owner and because of that, relationship between
Owner-Director and employees is closed; capital: it's usually from owner's saving or from
owner's friends loan; there are not many employees and some of them are owner-family
relation, because of small number of employee, factors training and career development in
SMEs usually are together so they are combine into unique factor in this study
There are several previous research from Eastern countries to Western countries about
employee retention topic but each research has some limits to apply to SMEs in HCMC.
Because of characteristics of SMEs as above, the study focuses only in some factors such as:
training/career path (development), leadership, work environment, remuneration and rewards
and organizational culture and policies.
2.4. Proposal research hypotheses
The study builds research model base on five factors and it is adapt with the model of Janet
(2004).
Figure 2.1: proposal research hypothesis










Training and career
path
Leadership
Working Environment
Remuneration and
rewards
Organizational culture
and policies
organizational
commitment
Intention to
stay
H1
H2
H3
H4
H5
H6
24

H 1 Training and career path has positive impact on organizational commitment.
H 2: Leadership is has positive impact on organizational commitment.
H 3: Working environment has positive impact on organizational commitment.
H 4: Remuneration and rewards has positive impact on organizational commitment
H 5: Organizational culture and policies has positive impact on organizational commitment.
H 6: organizational commitment positively is correlated to intent to stay.
2.5. Chapter conclusion
Although there are many factors that influence organizational commitment and intention to
stay of core employees in HCMC but the study focuses in five factors: training & career
path, leadership, working environment remuneration rewards and organizational culture &
policies.
The influencing of the factors to organizational commitment and intention to stay of core
employees will be introduced in chapter 4
25

CHAPTER 3: METHODOLOGY
Methodologies will be explained in this chapter to collect the data to address the research
issues of this study. It starts with the research design process, questionnaire design. It
provides information about the sample demography. It further describes the instruments, the
data collection processes and the type of analysis carried out on each phase of the study.
3.1 Research process
Figure 3.1 Research Design Process
















Initial
questionnaire
Literature
review
Back-translated
questionnaire
Q
U
E
S
T
I
O
N
N
A
I
R
E

D
E
S
I
G
N

Revision
Draft
questionnaire
Delete low item-total correlation
items (<0.30), and low
cronbach's anpha (<0.60)
Delete low factor
loading items (<0.40)
A survey of 335
responses
M
A
I
N

S
U
R
V
E
Y

EFA
Reliability
analysis
Regression
Result
An interview of
10 responses
P
I
L
O
T

S
U
R
V
E
Y

Revision
Final
questionnaire
26

3.2. Questionnaire design
3.2.1 Measure of variable
The measurement of the factor is founded and developed by many researchers:
Training and Career Development: Training adequacy, job design, job control. This
measurement was developed by Blau (1989), Cammann at al., (1979), Hausknecht at al.,
(2002), Jones et al (2001), Warr at al., (1979) and the study adapted from Janet (2004) 5
items
Table 3.1. Measurement of training and career development






Leadership: Transformational leadership effectiveness, performance and satisfaction those
factors are including organization leader and team leader, that origin is 8 items from Alimo-
Metcalfe & Alban Metcalfe (2001), Bass & Avolio (1995), Podsakoff at al.(1996), Singh at
al., (2000), Yammariono at al., (1990), Bass & Avolio (1995), Bishop at al., (1997).
Table 3.2. Measurement of leadership
Training 1- " People are properly orientated and trained upon joining
this organization."
Training 2- "This organization does provide regular opportunities for
personal and career development ."
Training 3- "The organisation has career development activities to
help an employee identify/improve abilities, goals, strengths &
weaknesses."
Leader 4-"The leadership practices in this organization help me to
become a high performing employee"
Leader 5 "The leadership practices in this organization enhance my
satisfaction with my job"
Leader 6 "The organizational leadership practices are consistent
with my personal values"
27











Working environment That measure humanistic and socialization, physical working
conditions and organization climate, origin of that measurement is from 7 items by Bateman
& Strasser (1984), Ashford at al., (1992). Mathieu at al., (1990) Mottaz (1988), it was
develop to 4 items by Janet (2004)
Table 3.3. Measurement of working environment






Remuneration and Reward: Job characteristics, intrinsic and extrinsic, rewards. This
variable was measured by 4 items, that is founded and developed by Broadfoot & Ashkanasy
(1994), Cammann at al., (1979), Hackman & Oldham (1975), Idaszak & Drasgow (1987),
Rhoades at al., ( 2001), Seashore at al., (1982), Warr & Wall (1979) and Janet (2004)
Leader 7 "The organizational leadership practices make a positive
contribution to the overall effectiveness of the organization"
Leader 8 "This organisation keeps employees well-informed on
matters important to them"
Leader 9 "Sufficient effort is made to determine the thought and
responses of people who work here"
Leader 10 "Communications across all levels in this organisation
tend to be good"
Leader 11 "Organisational structure encourages horizonal and
vertical communication
Environment 12 "My working life balances with my family life"
Environment 13 "Overall this organization is a harmonious place to
work"
Environment 14 "This organization regards welfare of its employees
as its first priority"
Environment 15 "For the work I do , The physical working
conditions are very pleasant"
28


Table 3.4. Measurement of remuneration and rewards








Organizational culture and policies Measures the degree the organizational structure limits
the action of employees, testing the focus on the influence of policies and procedures, the
organizational goal clarity and planning. The origin is 5 questions from Broadfoot &
Ashkanasy (1994), Kabanoff (2000), OReilly at al (1991), Morita at al., (1989), Sheridan
(1992), Janet (2005) developed to 5 items
Table 3.5. Measurement of company policies






Organizational commitment That measures the feedback of employees for the company's
affection, It founded from Meyer & Allen (1997); Porter at al., (1974) with 5 items and Janet
(2004) developed to 9 items

Remuneration 16 "Employees are given positive recognition when they produce high
quality work"
Remuneration 17 "This organization pays well"
Remuneration 18 "This organization offers a good benefits package compared to
other organizations"
Remuneration 19 "This organization values individual excellence over teamwork"
Remuneration 20 "This organization offers good opportunities for promotion"
Policies 21 "Organizational policies and procedures are helpful, well understood and
up to date"
Policies 22 "Progress towards meeting planned objectives is periodically reviewed"
Policies 23 "The organizational structure facilitates the way we do things."
Policies 24 " This organization has a defined vision/mission to meet its goals"
29

Table 3.6. Measurement of organizational commitment














Intention to stay That is measurement the trend of stay or leave the organization of
employees. That is 4 items, founded and developed by Cammann at al., (1979); Dalessio at
al., (1986), Griffeth at al., (2000), Lambert at al., (2001) Mathieu & Zajac (1990),
McCloskey & McCain 1987; Mueller & Wallace (1992), Seashore at al., (1982).
Table 3.7. Measurement of intention to stay



Commitment 25 "I feel a strong sense of belonging to this organization"
Commitment 26 "I could just as well working for a different organization if the type
of work was similar (negative) "
Commitment 27 "I find it difficult to agree with this organization's policies
(negative)
Commitment 28 "This organisation really inspires the very best in me in the way of
job performance"
Commitment 29 "My values and this organisation's values are very similar"
Commitment 30 "There is little to be gained by sticking with this organization
indefinitely (negative) "
Commitment 31 "I am willing to put in a great deal more effort than normally
expected to help this organisation be successful"
Commitment 32 "I am proud to tell others that I am part of this organization"
Commitment 33 "I really care about the future of this organization"
Intention 34 "I plan to work at my present job for as long as possible"
Intention 35 " I will most certainly look for a new job in the near future (negative) "
Intention 36 "I plan to stay in this job for at least two to three years"
Intention 34 "I would hate to quit this job"
30

3.2.2. Draft questionnaire
All references are English but interviewees are Vietnamese so it is necessary to translate the
reference questionnaire from English into Vietnamese. To prevent misunderstanding or
unclear meaning, the Vietnamese version questionnaire (that just translated from English)
should translated into English again by other person to ensure similar meaning with the
original questionnaire
The questionnaire was designed to allow the researcher to collect the relevant information to
test proposed model. Forty four questions were incorporated into the questionnaire for the
purpose of this study. Detail is in Appendix 3.1
PART A: This part to choose core employees: There are 4 questions in this section. The core
employees will be chosen base on the answer of questions, in which the chosen candidate
interviewees should be not company owner, work for the company longer six months, they
are fulltime employees, and they are people who support the organizational culture and
vision. The interview will be cancel if one of question does not meet requirement
PART B: Demographic Profile is in this part: That data help the author understand about
their interviewee and know deeply research objective. That data also help the author in SPSS
regression to deeply research the factors influencing the core employee's age, gender,
education and field of working
PART C: Main questions: this part is base on designed Likert scales: that part show the
action and attitude of core employee about their company such as training, leadership,
working environment, remuneration and policies also.
3.3. Pilot study
The main purpose of pilot study is to test the questionnaire on a small sample of respondents
by trying to identify and excluding potential problems (Malhotra, 2004). It can also help to
increase the reliability and to assure the appropriateness of the data collection instrument
(Wong & Ko, 2009). According to Malhotra (2004), the sample size of pilot study is small,
which is around 10 to 30 respondents.
31

The pilot study of this research involved distribution of questionnaire to 10 interviewees
randomly chosen from 2 companies, and the feedback answers used to revision
questionnaire. Once the data for pilot study was entered into the questionnaire, it was double-
checked for accuracy.
Likert scales is chosen to use in the study.
After pilot surveying, Vietnamese questionnaire change in "Rt khng ng " to "hon
ton khng ng " and "Rt ng " to "hon ton ng "
3.4 Main survey
The purpose of this study was to examine the relationship between retention and training and
career path, leadership, working environment, remuneration and rewards organizational
culture and policies.
3.4.1. Sample method
That are convenience sampling, this method is chosen because its advantage is low cost,
quick responsibility, face to face interview.
Interviewees are core employees in SMEs in HCMC, if one of question in part A reject
(company owner, working part time, working less 6 months, not support the organizational
culture and vision), this interview cancels and that questionnaire do not record
3.4.2. Sample size
Sampling size for EFA is ratio of number of question and sampling is from 5/1to 10/1 (Hair
at al., 2006) .There are 37 items in the research so requested is 185 to 370 data is enough
(there are 421 data in the research)
Requested sampling size for regression is more than 50+8m (Tabachnick at al., 1996) so the
requested sampling size is more than 50+8x(37)= 346 (there are 421 data in the research)
32

3.5. Data analysis technique
All data were initially analyzed via SPSS Version 20 (Statistical Package for the Social
Sciences).
3.5.1. Recoding data
Because there are four items have positive meaning so it is necessary to recode them
(Nancy., 2005, p.42). That are the items COM26, COM27, COM30 and INT35
3.5.2. Testing of Reliability
According to Connely (2011), Cronbachs alpha is used as only one criterion for judging
instruments or scales. It only indicates if the items hang together; it does not determine if
they are measuring the attribute they are supposed to measure. Therefore, scales also should
be judged on their content and construct validity.
Internal reliability refers to the core to which measures are free from random error and
therefore yield consistent results (Nancy et al., 2005). The scales of the seven factorized
variables were checked for reliability using Cronbachs Alpha (Nancy et al., 2005). An alpha
of 0.70 or above is considered to be reliable as suggested by many researchers (Leech et al.,
2007) how ever 0.60-0.69 should be accepted in common articles (Nancy et al., 2005).
Leech et al. (2007) provide the following techniques show in table 3.8
Table 3.8: Cronbachs alpha reliability coefficient
Cronbachs alpha Internal consistency
0.7 Excellent
0.6 < 6.9 Acceptable
0.5 < 0.6 Poor
< 0.5 Unacceptable

33

3.5.3. Exploratory factor analysis (EFA)
In the study, that is used the Extraction Method: Principal Axis Factoring. Rotation
Method: Promax with Kaiser Normalization
Norris & Lecavalier (2010, p.9) supposed that EFA is based upon a testable model and can
be evaluated in terms of its fit to the hypothesized population model; fit indices can be
generated to help with model interpretation. And EFAs purpose is to identify latent
constructs underlying a set of manifest variables. Nancy at al.(2005) argued that KMO
Measure of Sampling Adequacy above 0.7 is accepted.
Hair et al. (1998, cited in Lee and Hooley, 2005, p.376) claimed that with samples of 350 or
more, a factor loading of the attribute higher than 0.3 is significant. And, with samples of
200, a factor loading of 0.4 or greater will take to indicate. Therefore, the researchers must
carefully consider the sample size for choosing significant factor loadings. Moreover, factors
with a total eigenvalue of 1 or greater will take into account; hence any factors with an
eigenvalue of less than 1 are discounted (Kim & Mueller, 1978, cited in Lee & Hooley,
2005, p.376). Based on these studies, any factors with eigenvalues greater than 1 will be
retained. And, any factor loadings of 0.3 or higher on a factor are counted.
3.5. 4. Hypotheses testing: Multiple Regression Analysis
Loading factors above 0.4, this means indication that is efficient item for this factor (Nancy
et al., 2005) (there is 0.88 in the study) (The regression model selected for this study is
stepwise regression and the dependent variables examined were organizational commitment
and intent to stay, there are thirty seven items. The purpose of stepwise regression analysis
was to develop a group of independent variables that are useful in predicting the dependent
variables and to eliminate those independent variables that do not provide any additional
prediction to the independent variables already in the equation. In this study, the stepwise
regression analysis was conducted to test the relationship between the five independent
variables of the study: remuneration and recognition, training and career development,
leadership and policies and one dependent variables: organizational commitment-Intent to
stay.
34

Significant is less than 0.05 to assure this correlation matrix is significant different from an
identify matrix (Nancy et al., 2005)
Means, and standard deviations and correlations Correlation coefficients were calculated for
initial exploration of the relationships between variables. Correlation is used to measure the
size and direction of the relationship between two variables (Tabachnick & Fidell, 2001). In
this study, a correlation analysis was carried out to measure the inter-relationship between
independent variables (remuneration and recognition, training and career development,
leadership, policies, and work environment), dependent variables (organizational
commitment and intention to stay) On completion of the correlation analysis, a regression
analysis was conducted in order to further evaluate and understand the relationships between
the dependent and independent variables of the study, and to test the hypotheses of interest.
3.7. Chapter conclusion
This chapter provided an overall explanation of the research methodologies used for this
study. There are 4 main parts of the chapter: questionnaire design, pilot survey, main survey
and data analysis. The development of the instruments for data analysis was described.
Subsequent Chapter 4will report the results of main survey base on methodologies in this
chapter .







35

CHAPTER 4: DATA ANALYSIS
SPSS version 20 is used in the study, this chapter shows the collected data, coding, reliable
testing as well as EFA and multi regression to check proposal model.
4.1. Sample description and data clearance
There are 600 questionnaires that have sent, there are 421 collected questionnaire (rate 70
percent). Among 421 collected questionnaires, there are 335 valid questionnaires (79.57
percent). The reasons of invalid questionnaire is missing data, interviewer's mistake in
interview part time employee, company owner,...
Although data collecting and typing is very carefully but the data collected in this study had
missing data scattered randomly throughout the data matrix.. All missing data were treated
with list wise deletion. Factor analysis is best suited to identifying the interrelationships
among a set of items in a scale, all designed to measure the same construct.
4.2. Demography Sampling
The respondents of this study consisted of core employees from some organizations of
different field of working. As in table 4.1, twenty two percent of these respondents were
from technical companies, thirty two percent from trading company, nine percent from
banking and thirty seven per cent from the others. As stable 4.1, the occupations of the
respondents consisted of twenty three technicians, thirty three percent office employees,
seventeen percent salesman, fourteen per cent managers, thirteen percent others. As shown in
As stable 4.1, education of the respondents consisted of twenty eight percent high school,
thirty percent college, thirty seven percent bachelor and five percent upper bachelor. This
study surveyed a good range of employment services and therefore provided a much broader
scope for generating the research. More detail refer in appendix 4.2




36

Table 4.1 Sample Demography

Frequency Percent Valid
Percent
Cumulative Percent
Technical 78 23.3 23.3 23.3
Trading 108 32.2 32.2 55.5
Working Banking 28 8.4 8.4 63.9
field Others 121 36.1 36.1 100.0
High school 88 26.3 26.3 26.3
College 97 29.0 29.0 55.2
Education Bachelor 136 40.6 40.6 95.8
Upper
Bachelor
14 4.2 4.2 100.0
male 198 59.1 59.1 59.1
Gender female 137 40.9 40.9 100.0
Married Single 190 56.7 56.7 56.7
married 145 43.3 43.3 100.0
Total 335 100.0 100.0


4.4. Testing of Reliability
As Nancy at al., (2007) factors are accepted if corrected item total correlation above 0.3 so
item 30 is omitted because its corrected item total correlation 0.276, item 27 (0.218) is
deleted. Similarly is for item 35 because its corrected item total correlation is 0.181
So after testing reliable, there are three items omitted, it means there are 34 items in EFA,
overview reliability of variables is show in table 4.2, more detail refers in appendix 4.3 to
appendix 4.9.2
Table 4.2: Cronbachs alpha reliability coefficient of variable
Variable Cronbach's
anpha
Number of
item
Status
Training .834 3 Excellent
Leadership .893 8 Excellent
Environment .821 4 Excellent
Remuneration and rewards .852 5 Excellent
POL .866 4 Excellent
Commitment .842 7 Excellent
Intention to stay .685 3 Acceptable
37



4. 5. Exploratory factor analysis (EFA)
There are 5 independent variables training, leadership, remuneration & rewards and policies.
In the first time running EFA, the items cluster into 5 groups define by high loadings
In the second time, lea4 is loading into 2 factors at .377 and .277 so it is omitted.
In the third time, the variables are loading into 4 factors. env12, env13 and env14 are loading
into 2 factors so they are omitted.
In the fourth time, the item rem20 is omitted. All items cluster into 4 groups with high
loading
More detail refers in appendix 4.4.1 to appendix 4.4.4
Pattern matrix in last time result shows in table 4.3
Table 4.3: Pattern matrix in the last time (the fourth time) of regression analysis
Pattern Matrix
a

Factor
1 2 3 4
TRA 01 .839
TRA 02 .848
TRA 03 .713
LEA 05 .500
LEA 06 .604
LEA 07 .760
LEA 08 .828 -.246
LEA 09 .664
LEA 10 .594
LEA 11 .681
ENV 15 .472
REM 16 .736
REM 17 .958
REM 18 .601
REM 19 .780
38

POL 21 .903
POL 22 .921
POL 23 .623
POL 24 .565
Extraction Method: Principal Axis Factoring.
Rotation Method: Promax with Kaiser Normalization.
a. Rotation converged in 6 iterations.

Group 1: TRA01 (loading 0.839),TRA02 (loading 0.848), TRA03 (loading 0.713)
Group 2: LEA05 (loading 0.500), LEA06 (loading 0.604), LEA07 (loading 0.760), LEA08
(loading 0.828), LEA09 (loading 0.664), LEA10 (loading 0.594), LEA11 (loading 0.681)
Group 3: ENV15 (loading 0.472), REM16 (loading 0.736), REM17 (loading 0.958), REM18
(loading 0.601), REM19 (loading 0.780)
Group 4: POL21 (loading 0.903), POL 22 (loading 0.921), POL23 (loading 0.623), POL24
(loading 0.565)
Because all the independent variables and dependent variable run separately so it must run
correlate with option bi variable. if the Pearson correlation is less that .700 that is accepted.
As result of running, all Pearson correlation are less than 0.7, that means no independent
variable has high correlation together high (Julie, 2011)
As the result of analysis software, most of item in working environment is deleted, item
ENV15 is merged to remuneration & rewards variable. There are 2 type of looks to see that
problem: base on result of SPSS: it meets condition because all of their items have loading
less than 0.4; base on the fact: there are almost ten to twenty employees in SMEs in HCMC,
especially there are three to five employees in some SMEs so working environment in those
SMEs naturally is good and the core employees in there do not feel it is important for them.

Compute transform variable: In this session, methodology for compute is statistical function
group, special variables are using sum function.
39

Group 1: All of items in this group belong to TRA factors so it is called TRA (F1) when
compute transform variable
Group 2: that is similar with group 1: it is called LEA (F2) when compute transform variable
Group 3 has REM 17 that is highest loading so that group is called REM (F3) when compute
transform variable.
Group 4: All POL factors are loading into that group so it called POL (F4)
As result of EFA, there are three items of ENV are omitted, and one item combined to REM,
that means that variable is not reliable.
There are 2 times to run regression analysis
4.6.1 Model 1: Multiple Regression Analysis with all independent variables and COM
In this model, the independent variables are TRA, LEA, REM and POL with dependent
variable is COM.
Table 4.4 Correlations model 1
COM TRA LEADER REM POL
Pearson Correlation
COM 1.000 .439 .635 .600 .686
TRA .439 1.000 .521 .529 .494
LEADER .635 .521 1.000 .667 .603
REM .600 .529 .667 1.000 .600
POL .686 .494 .603 .600 1.000

Table 4.5 Model Summary
b
model 1
Model R R
Squar
e
Adjusted
R
Square
Std. Error
of the
Estimate
Change Statistics
R
Square
Chang
e
F
Change
df1 df2 Sig. F
Change
1 .749
a
.561 .556 2.80282 .561 105.525 4 330 .000
a. Predictors: (Constant), POL, TRA, LEADER, REM
b. Dependent Variable: COM


40

Table 4.6 ANOVA
a
of model 1
Model Sum of
Squares
Df Mean Square F Sig.
1
Regression 3315.937 4 828.984 105.525 .000
b
Residual 2592.422 330 7.856

Total 5908.358 334

a. Dependent Variable: COM
b. Predictors: (Constant), POL, TRA, LEADER, REM
Table 4.7. Coefficients
a
of model 1
Model Unstandardized
Coefficients
Standardize
d
Coefficients
t Sig. Collinearity
Statistics
B Std.
Error
Beta Tolerance VIF
1
(Constant) 6.151 1.057

5.818 .000

TRA .004 .089 .002 .047 .963 .646 1.549
LEADER .259 .051 .268 5.045 .000 .472 2.116
REM .208 .067 .166 3.123 .002 .470 2.126
POL .651 .076 .424 8.591 .000 .546 1.831
a. Dependent Variable: COM
In result in Appendix, Adjusted R square is 55.6 percent indicates that value of the variance
(COM) can be predicted from independent variable (LEA, REM, POL) ( (Nancy at al., 2005,
p.95). The issue from that researcher also explained for sig. number in Anova table. That
indicates the combination of TRA, LEA, REM and POL predicts dependent variable is COM
( .001)
Sig in Coefficients
a
table in appendix shows value of TRA that is .963. That value is
extremely high and indicates that variable does not affect into dependent variable (COM) so
it is omitted in model.
Meyers at al., (2006, p.152) and Hair et al. (2010, p.156) proposed that the multiple
regression standardized score equation is as follows (with all the variables are measured on
the same metric):
Y = 1X1 + 2X2 + + nXn
Where in: is called beta weight, standardized regression coefficient, or beta coefficient
41

X is the predictor entered into the equation in a single step
X represents the score of a predictor and its associated beta weight
In addition, Hair et al. (2010) claimed that there is the difference between the actual
and predicted values of dependent variable. That means the random error will occur when
predicting sample data. It is call the residual ( or e).
Based on these studies, the multiple regression formula will be
Y = a + 1X1 + 2X2 + + nXn +
Moreover, Meyers et al. (2006, p.161) introduced the value of R2 indicating how much
variance of the dependent variable is accounted for by the full regression model. Therefore,
the higher the value of R2, the greater the explanatory power of the regression equation (Hair
et al., 2010)
Although below formula is less accuracy because TRA omit but it indicates the correlation of
all independent variables (LEA, REM, POL) to dependent variable (COM). Detail formula
as below:
Y=6.151 + 0.268X
1
+0.166X
2
+0.424 X
3
+
Where in:
Y: indicates COM variable
a= 6.151: indicates constant number
X
1
: indicates LEA variable
X
2
: indicates REM variable
X
3
: indicates POL variable
: the residual
42

4.6.2 Model 2- Multiple Regression Analysis with commitment variables as independent
variables and intention to stay as dependent variable
In this time, COM variable is independence, the dependent variable is INT

Table 4.8. Model Summary
b
Mod
el
R R
Squar
e
Adjusted
R Square
Std. Error
of the
Estimate
Change Statistics
R Square
Change
F
Change
df1 df2 Sig. F
Change
1 .621
a
.385 .383 1.83378 .385 208.607 1 333 .000
a. Predictors: (Constant), COM
b. Dependent Variable: INT

Table 4.9. Coefficients
a

Model Unstandardized
Coefficients
Standardized
Coefficients
t Sig.
B Std.
Error
Beta
1
(Constant) 2.074 .637

3.255 .001
COM .345 .024 .621 14.443 .000
a. Dependent Variable: INT
The Adjusted R square is 38.3 percent indicates that value of the variance (INT) can be
predicted from independent variable (COM). COM variable affects INT variable as beta
value (62.1 percent)
Z=2.074+ 0.621Y+
1

Where in:
Z: indicates INT variable
Y: indicates COM variable
a= 2.074: indicates constant number;
1
: the residual
As result of study, figure 4.1 is final model



43

Figure 4.1: Final model







H 2: Leadership is positively correlated to organizational commitment.
H 4: Remuneration and rewards negatively is correlated to organizational commitment
H 5: organizational culture and policies negatively is correlated to organizational
commitment.
H 6: organizational commitment negatively is correlated to intent to stay.
4.7. Chapter conclusion
With the data collected, the study's result as below:
Hypothesis for influencing of training & career path factors and organizational
commitment (H1) is rejected. Because the sig. is 9.9 percent that is not affecting the
organizational commitment of employees
Hypothesis for influencing of leadership factors and organizational commitment (H2) is
confirmed with sig. is 2.8 percent, beta coefficient of 12.8 percent.
Hypothesis for influencing of working environment factors and organizational commitment
(H3) is omitted.
Hypothesis for influencing of remuneration & rewards and organizational commitment(H4)
is confirmed with sig. is 2.8 percent, beta coefficient of 29.4 percent
Leadership
Remuneration and
rewards
Company culture and
policies
organizational
commitment
Intent to stay
H2
H4
H5
H6
.621
.268
.166
.424
44

Hypothesis for influencing of companies factors and organizational commitment (H5) is
confirmed with sig. is 00 percent, beta coefficient of 32.6 percent
Hypothesis for influencing of organization commitment to retention to stay (H6) is
confirmed with sig. is 00 percent, beta coefficient of 61.2 percent




45

CHAPTER 5: FINDING, DISCUSSION, LIMITATION and FURTURE RESEARCH
In this chapter, after show the finding of study, author will discuss about result, compare it
with previous study, indicating limitations of study and also suggestion for future research
5.1. Finding and discussion
When the model in study adapts with previous model, there are 5 proposed factors that are
influencing organizational commitment and intention to stay of core employees. The original
factors that are in proposed model are: training & career path, leadership, working
environment, remuneration & rewards and company policies. After studying, working
environment factor omitted, training & career path is rejected. So there are only 3 factors in
the final that are influencing organizational commitment and retention to stay of core
employees in HCMC. They are company policies, remuneration & rewards and leadership.
Company policies is the most influencing than the others. That result is accuracy because the
policies is the proof of person-organization relationship and employee-employer relationship.
. That means if the owner want to core employees have high commitment (it also means
retention so stay of core employees) they should have useful policies that suitable core
employee. Back to questionnaire for that variables as in the table 5.1
Table 5.1. Questionnaire for company policies
Organizational policies and procedures are helpful, well understood and up to date.
Progress towards meeting planned objectives is periodically reviewed.
The organizational structure facilitates the way we do things.
This organization has a defined vision/mission to meet its goals.
The policies are helpful and well understood that means that policies should clearly and
easily to apply to the company. That policies should be accepted by core employees. Besides
that, the policies of company should revise and update periodically, purpose of that action is
made the core employees understand those policies are take cared by employer. The structure
of the company is "flat" and flexible to adapt reactive of core employee is one of the
46

important policies because if that is not flexible, the policies are not flexible either, another
important thing of policies is that should support the company structure and the company
structure should support back into policies
The second factor that is influencing commitment is remuneration & rewards because
income or benefit of employee is the first thing they consider to work for the company or
not.
The factor that is less influencing commitment is leadership. That factor has coefficient rate
only 12.8 percent.
The study also founded if the employee have high organizational commitment, they are
willing to stay in the company with coefficient is 62.1 percent
The finding of the study is similar with some previous study such as Janet (2004) found the
stay decision of core employee depend on remuneration, reward and recognition, leadership
behavior, organizational culture and policies, Jyotsna B(2007) said retention of employees
affect with exciting work/challenge career growth, working with great people, fair pay and
supportive management/great boss.
Although there are some similar but the study shows some different things from other
researchers that our result is the organizational commitment and retention to stay is not
influencing by working environment and training. That is strange result and should be study
more and careful with more sample in more working field.
Conclusion: The factors that are influencing organizational commitment of core employees
in SMEs in HCMC are organizational culture &policies, leadership, remuneration& rewards
with the level of influencing is 32.6, 29.3 and 12.8 percent. And stay decision is affected by
organization commitment is 62.1 percent.
5.2. Limitation
Although author try all the best but by limitation of time, knowledge and experience so there
are some limitation of research as below:
47

VIF in EFA of variable leader and remuneration is greater than 2.00. that make less
efficiency of the study. That is because of data survey.
The first limitation of the study is focusing only to retain the existing core employees but to
build a strong labor force that should pay attention to other works such as: recruitment,.. The
second limitation of the study is our research to a small and medium sized companies in
(HCMC). The big companies or in other geographic areas are not in the study is the third
limitation.
5.3. Suggestion for future Research
An obvious complement to this study is to conduct longitudinal research. Some of the
arguments and findings of this study may well be a good starting point for such research.
Longitudinal studies are needed to establish causal direction among the relationships
investigated in this study. For example, in a longitudinal study, it may be possible to observe
over time if turnover intention measured at one point is associated with negative beliefs and
outcomes at a later point. It would provide more robust data. In addition, a longitudinal study
would be able to further examine the changing nature of organizational commitment
throughout an employee's tenure, with emphasis on management's policies and reactions to
maintain equity and fairness in the exchange agreement.
This research has highlighted the mediating role of organizational commitment on person
organizational culture and policies and the partially mediating role on remuneration and
reward, training and career development and work environment. Clearly, there is a need for
greater analysis of the factors identified. For example, other aspects of the work environment
than those that were measured in this study, such as formalization, role ambiguity, and
instrumental communication should be examined. Hence a better understanding of the
interrelationships among these variables would serve to illuminate and provide further
insights for academics and practitioners. Further, testing of the model in many industries, and
over longer periods of time would also be beneficial.
In conclusion, this study has gone a substantial way towards meeting its main objective,
which was to determine the factors that influence the retention of core employees in SMEs in
48

HCMC. The study was able to produce a new model (in figure 4.1) suitable for future use by
the owner who would like retain their critical employees.
49

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55

APPENDIX
APPENDIX 1.1: QUESTIONAIRE (English version)
I am Huynh Thien Hai, currently student of the program "Master of Business
Administration" of International School Of Business - University of Economics Ho Chi
Minh City. To analyze the factors influencing core employees to stay in small-medium sized
companies (SMEs) in Hochiminh City, I am looking forward to you spend free time to
implement the survey below. With this survey, you will help us complete the paper and
provide an opportunity for SMEs activities more affective
A- General information:

B- Interviewee information

Question
Are you company's owner? yes no
How long have you worked for the company? less 6 months more 6 months
Do you work full time? yes no
Support the organizational culture and vision. yes no
Gender Male
Female

Marital status Single
Married

Age
<30
30-40

41-50
51-60

Education High school

Colleges

Bachelor
Upper bachelor

56


C- Survey content:
Please you indicate level of agreement on the following
statements by mark X in the appropriate box:
[1] Strongly disagree;
[2] Disagree;
[3] Neutral;
[4] Agree;
[5] Strongly agree.

S
t
r
o
n
g
l
y

d
i
s
a
g
r
e
e

d
i
s
a
g
r
e
e

N
o

i
d
e
a

a
g
r
e
e

S
t
r
o
n
g
l
y

a
g
r
e
e

Scale 1 2 3 4 5
I TRAINING and CAREER DEVELOPMENT
1
People are properly orientated and trained upon joining
this organization.

2
This organization does provide regular opportunities
for personal and career development.

3
The organisation has career development activities to
help an employee identify/improve abilities, goals,
strengths &
weaknesses.

II LEADERSHIP
4
The leadership practices in this organization help me to
become a high performing employee.

5
The leadership practices in this organization enhance
my satisfaction with my job.

What is your occupation? Technician Office employee
Sales Manager
Other
What is your industry? Engineer Trading
Banking Other
57

6
The organizational leadership practices are consistent
with my personal values.

7
The organizational leadership practices make a positive
contribution to the overall effectiveness of the
organization.

8
This organization keeps employees well-informed on
matters important to them

9
Sufficient effort is made to determine the thought and
responses of people who work here

10
Communications across all levels in this organization
tend to be good

11
Organizational structure encourages horizontal and
vertical communication

II WORKING ENVIRONMENT
12 My working life balances with my family life.
13
Overall this organization is a harmonious place to
work.

14
This organization regards welfare of its employees as
its first priority.

15
For the work I do , The physical working conditions
are very pleasant.

IV REMUNERATION AND REWARD
16
Employees are given positive recognition when they
produce high quality work.

17 This organization pays well.
18
This organization offers a good benefits package
compared to other organizations.

19
This organization values individual excellence over
teamwork.

58

20
This organization offers good opportunities for
promotion.

V ORGANISATIONAL POLICIES
21
Organizational policies and procedures are helpful,
well understood and up to date.

22
Progress towards meeting planned objectives is
periodically reviewed.

23
The organizational structure facilitates the way we do
things.

24
This organization has a defined vision/mission
to meet its goals.

VI COMMITMENT
25 I feel a strong sense of belonging to this organization
26
I could just as well working for a different organization
if the type of work was similar (negative)

27
I find it difficult to agree with this organization's
policies (negative)

28
This organization really inspires the very best in me in
the way of job performance

29
My values and this organization's values are very
similar

30
There is little to be gained by sticking with this
organization indefinitely

31
I am willing to put in a great deal more effort than
normally expected to help this organization be
successful.

32
I am proud to tell others that I am part of this
organization

33 I really care about the future of this organization
59

VII INTENTION TO STAY
34 I plan to work at my present job for as long as possible
35
I will most certainly look for a new job in the near
future

36 I plan to stay in this job for at least two to three years.
37 I would hate to quit this job

APPENDIX 1.2: QUESTIONAIRE (Vietnamese version)
PHIU THU THP THNG TIN
Ti tn Hunh Thin Hi, hin l hc vin Cao hc ngnh Qun Tr Kinh Doanh ca Vin
o to Quc t- Trng i hc Kinh t Tp. H Ch Minh, hin nay ti ang thc hin
ti tt nghip "nhng yu t nh hng n s gi chn nhn vin nng ct trong cng ty c
qui m va v nh ti Tp. HCM"
Ti rt mong cc Anh/Ch dnh cht thi gian thc hin bng kho st bn di v kin
ca anh ch v cc chnh sch hin nay qu cng ty m hin nay anh ch ang cng tc. Tt
c nhng kin ca Anh/Ch s gip cho ti hon thnh c cng trnh nghin cu v gip
cc doanh nghip va v nh TPHCM ci thin cch qun l v hot ng c hiu qu
hn.
A- Thng tin chung:


B- Thng tin ngi c phng vn

Anh/ch c phi l ch cng ty khng? c khng
Anh/ch lm vic ti cng ty ny bao lu? t hn 6 thng lu hn 6 thng
Anh/ch c lm vic ton thi gian khng c khng
Anh/ch to s nh hng n nh hng hot
ng trong tng lai cng nh nh hng n
mi trng lm vic trong cng ty khng?
c khng
Gii tnh
Nam N
Tnh trng hn nhn
c thn kt hn
Tui
<30 30-40
41-50 51-60
Trnh Trung hc Cao ng
i hc Trn i hc
Ngh nghip N.vin k thut N.vin v.phng
60


C- Bng kho st:

Anh/Ch vui lng cho bit mc ng v cc pht biu di
y bng vic nh du cho (X) vo tng ng:
[1] hon ton khng ng .
[2] ng .
[3] Trung ha (khng c kin).
[4] ng .
[5] Hon ton ng .
H
o

n

t
o

n

k
h

n
g

n
g

k
h

n
g

n
g

K
h

n
g

k
i

n
g

H
o

n

t
o

n
g

1 2 3 4 5
I
O TO V PHT TRIN NGH NGHIP

1
Tnh cch v hiu bit ca anh/ch ph hp vi cng ty

2
Cng ty lun cung cp c hi anh ch pht trin bn thn v s
nghip

3
Cng ty c nhng hot ng gip anh/ch hiu hn v kh nng,
mc tiu cng nh im mnh, im yu ca mnh

II
LNH O

4
Lnh o cng ty sn sng h tr anh/ch nng cao nng lc
ca mnh

5
Lnh o cng ty gip anh/ch yu ngh hn

6
Lnh o cng ty c x ph hp vi vai tr v gi tr ca anh/ch

7
Lnh o cng ty gip cng ty hot ng mt cch hiu qu

8
Cng ty lun thng bo nhng vn quan trng vi nhn vin

9
Cng ty quan tm n suy ngh v phn ng ca nhn vin

10
Thng tin gia cc cp qun l trong cng ty rt tt

11
T chc trong cng ty gip thng tin rt tt trong h thng dc v

N.vin b.hng Qun l
Khc
Lnh vc lm vic K thut Thng mi
Ngn hng Khc
61

h thng ngang ca cng ty
III
MI TRNG LM VIC

12
Cng vic hi ho vi cuc sng ca anh/ch

13
Cng ty l mt ni hi ho lm vic

14
Phc li ca nhn vin l yu t hng u ca cng ty

15
Cng ty c cc cng c h tr cho cng vic ca anh ch rt tt

IV
TH LAO V KHEN THNG

16
Anh ch lun c trn trng khi t hiu qu cao

17
Cng ty tr lng cho anh/ch ph hp vi cng vic ca anh ch

18
Cng ty chi tr thng tho ng hn so vi cc cng ty khc

19
Cng ty c thng ring cho cc nhn xut sc

20
Cng ty to iu kin thng tin cho anh/ch

V
CHNH SCH CA CNG TY

21
Chnh sch cng ty mang li li ch cho anh ch, chnh sch ny d
hiu v c cp nht thng xuyn

22
Nhng chnh sch v mc tiu c xem xt thng xuyn

23
C cu t chc ca cng ty h tr tt cho cng vic.

24
Cng ty lun c nhng nh hng r rng hon thnh mc tiu
ra

VI
P NG NHU CU

25
Anh ch cm thy mnh hon ton ph hp vi cng ty

26
Anh ch vn c th lm tt cng vic ny mi trng cng ty
khc

27
Anh ch thy kh c th chp nhn chnh sch ca cng ty

28
Cng ty lun to ng lc anh ch lm cng vic tt nht

29
Anh ch thy quyn li ca mnh gn kt quyn li ca cng ty

30
Anh ch khng c nhiu li ch khi lm vic lu di vi cng ty

31
Anh ch sn lng lm ht mnh cng ty thnh cng

32
Anh ch t ho khi anh ch l thnh vin ca cng ty

33
Anh ch quan tm n tng lai ca cng ty

VII
XU HNG LI CNG TY

62

34
Anh ch mun lm cng vic hin nay cng lu cng tt

35
Anh ch s tm cng vic khc

36
Anh ch mun lm cng vic hin ti t nht 2-3 nm na

37
Anh ch khng mun t b cng vic ny


Trn trng cm n anh/ch

APPENDIX 4.1 CODING
item Name Label and value
1 Owner Owner (1=yes, 2=no)
2 Long How long's (1= longer 6 months 2= less 6 months
3 Time Fulltime (1= yes, 2=no)
4 Devote Devote (1= yes, 2=no)
5 Gender Gender (1= male, 2=female)
6 Mari Marred (1= yes, 2=no)
7 Age Age (1=less 30, 2=31-40, 3=41-50, 4=51-60)
8 Edu Education (1=high school, 2=college, 3= bachelor, 4=upper bachelor)
9 Pro Professional (1=technician, 2=office employee, 3=sales, 4=manager,
5=others)
10 Field Working field (1=technical, 2=trading, 3= banking, 4=others)
Main survey (1=strongly disagree to 5=strongly agree)
TRAINING and CAREER DEVELOPMENT
11 Tra1 Training 1- " People are properly orientated and trained upon joining this
organization."
12 Tra2 Training 2- "This organization does provide regular opportunities for
personal and career development ."
13 Tra3
Training 3- "The organisation has career development activities to help
an employee identify/improve abilities, goals, strengths & weaknesses."
63

LEADERSHIP
14 Led4 Leader 4-"The leadership practices in this organization help me to become
a high performing employee"
15 Led5 Leader 5 "The leadership practices in this organization enhance my
satisfaction with my job"
16 Led6
Leader 6 "The organizational leadership practices are consistent with my
personal values"
17 Led7
Leader 7 "The organizational leadership practices make a positive
contribution to the overall effectiveness of the organization"
18 Led8
Leader 8 "This organization keeps employees well-informed on matters
important to them"
19 Led9
Leader 9 "Sufficient effort is made to determine the thought and responses
of people who work here"
20 Led10
Leader 10 "Communications across all levels in this organization tend to
be good"
21 Led11
Leader 11 "Organizational structure encourages horizontal and vertical
communication
WORKING ENVIRONMENT
22 Env12 Environment 12 "My working life balances with my family life"
23 Env13 Environment 13 "Overall this organization is a harmonious place to work"
24 Env14
Environment 14 "This organization regards welfare of its employees as its
first priority"
25 Env15
Environment 15 "For the work I do , The physical working conditions are
very pleasant"
REMUNERATION AND REWARD
26 Rem16
Remuneration 16 "Employees are given positive recognition when they
produce high quality work"
27 Rem17 Remuneration 17 "This organization pays well"
28 Rem18
Remuneration 18 "This organization offers a good benefits package
compared to other organizations"
29 Rem19
Remuneration 19 "This organization values individual excellence over
teamwork"
30 Rem20
Remuneration 20 "This organization offers good opportunities for
promotion"
ORGANISATIONAL POLICIES
31 Pol21
Policies 21 "Organizational policies and procedures are helpful, well
understood and up to date"
64






32 Pol22
Policies 22 "Progress towards meeting planned objectives is periodically
reviewed"
33 Pol23 Policies 23 "The organizational structure facilitates the way we do things."
34 Pol24
Policies 24 " This organization has a defined vision/mission to meet its
goals"
COMMITMENT
35 Com25 Commitment 25 "I feel a strong sense of belonging to this organization"
36 Com26
Commitment 26 "I could just as well working for a different organization
if the type of work was similar (negative) "
37 Com27
Commitment 27 "I find it difficult to agree with this organization's
policies (negative)
38 Com28
Commitment 28 "This organisation really inspires the very best in me in
the way of job performance"
39 Com29
Commitment 29 "My values and this organisation's values are very
similar"
40 Com30
Commitment 30 "There is little to be gained by sticking with this
organization indefinitely (negative) "
41 Com31
Commitment 31 "I am willing to put in a great deal more effort than
normally expected to help this organisation be successful"
42 Com32
Commitment 32 "I am proud to tell others that I am part of this
organization"
43 Com33 Commitment 33 "I really care about the future of this organization"
INTENTION TO STAY
44 Int34 Intention 34 "I plan to work at my present job for as long as possible"
45 Int35
Intention 35 " I will most certainly look for a new job in the near future
(negative) "
46 Int36 Intention 36 "I plan to stay in this job for at least two to three years"
47 Int37 Intention 34 "I would hate to quit this job"

65


Appendix 4.2 Demography

Frequency Percent Valid
Percent
Cumulative
Percent
Technical 78 23.3 23.3 23.3
AREA FIELD Trading 108 32.2 32.2 55.5
Banking 28 8.4 8.4 63.9
Others 121 36.1 36.1 100.0
High school 88 26.3 26.3 26.3
EDU College 97 29.0 29.0 55.2
Bachelor 136 40.6 40.6 95.8
Upper Bachelor 14 4.2 4.2 100.0
GENDER Male 198 59.1 59.1 59.1
Female 137 40.9 40.9 100.0
MARRIED Single 190 56.7 56.7 56.7
STATUS Married 145 43.3 43.3 100.0


Appendix 4.3: Testing of reliability variables

Item-Total Statistics
Group Times Cronbach's
Alpha
Variable Corrected
Item-Total
Correlation
Cronbach's
Alpha if Item
Deleted
TRA 01 .673 .792
Training 1st time/1 .834 TRA 02 .760 .706
TRA 03 .655 .810
LEA 04 .653 .881
LEA 05 .759 .870
Leader 1st time/1 .893 LEA 06 .719 .875
LEA 07 .678 .878
LEA 08 .545 .891
LEA 09 .662 .880
LEA 10 .678 .878
LEA 11 .679 .878
ENV 12 .659 .769
Environment 1st time/1 .821 ENV 13 .712 .745
ENV 14 .587 .804
ENV 15 .629 .782
REM 16 .667 .822
66

Remunerations 1st time/1 .852 REM 17 .708 .810
& rewards REM 18 .630 .832
REM 19 .733 .803
REM 20 .590 .841
POL 21 .763 .808
Organizational 1st time/1 .866 POL 22 .752 .813
Policies POL 23 .712 .831
POL 24 .639 .859
COM 25 .617 .760
Commitment 1st time/2 .797 COM 26 .367 .792
COM27 .317 .803
COM 28 .492 .776
COM 29 .593 .763
COM30 .276 .812
COM 31 .611 .762
COM 32 .638 .758
COM 33 .614 .761
COM 25 .629 .776
2nd time/2 .812 COM 26 .343 .817
COM27 .218 .842
COM 28 .542 .788
COM 29 .641 .774
COM 31 .656 .773
COM 32 .661 .772
COM 33 .643 .774
INT 34 .524 .430
Intention 1st time/3 .606 INT35 .181 .685
INT 36 .424 .507
INT 37 .449 .485

INT 34 .524 .430
2nd time/3 .606 INT35 .181 .685
INT 36 .424 .507
INT 37 .449 .485
INT 34 .442 .661
2nd time/3 .685 INT 36 .547 .529
INT 37 .509 .578


67

Appendix 4.4 . EFA for all independent variables
Appendix 4.4 .1. EFA for all independent variables (The first time in 4 times)

Total Variance Explained The first time in 4 times
Factor Initial Eigenvalues Extraction Sums of Squared
Loadings
Rotation
Sums of
Squared
Loadings
a

Total % of
Variance
Cumulative
%
Total % of
Variance
Cumulative
%
Total
1 10.800 45.002 45.002 10.399 43.330 43.330 7.662
2 1.591 6.627 51.629 1.250 5.209 48.539 8.329
3 1.414 5.893 57.522 1.038 4.327 52.865 6.392
4 1.273 5.303 62.825 .867 3.614 56.479 6.666
5 1.023 4.264 67.089 .685 2.856 59.335 4.607
6 .905 3.773 70.862

7 .815 3.396 74.258

8 .664 2.766 77.024

9 .599 2.494 79.518

10 .529 2.203 81.721

11 .498 2.075 83.796

12 .456 1.899 85.694

13 .432 1.800 87.495

14 .390 1.625 89.119

15 .375 1.564 90.683

16 .335 1.397 92.080

17 .311 1.295 93.375

18 .277 1.153 94.528

19 .268 1.117 95.645

20 .248 1.034 96.679

21 .227 .944 97.624

22 .205 .852 98.476

23 .200 .835 99.311

24 .165 .689 100.000

Extraction Method: Principal Axis Factoring.
a. When factors are correlated, sums of squared loadings cannot be added to obtain a total
variance.



68

Pattern Matrix The first time in 4 times
Factor
1 2 3 4 5
TRA 01 .825
TRA 02 .856
TRA 03 .756
LEA 04 .366 .277
LEA 05 .545
LEA 06 .586
LEA 07 .260 .798
LEA 08 .405 -.294 .569
LEA 09 .607
LEA 10 .605
LEA 11 .721
ENV 12 .313 .457
ENV 13 .277 .503
ENV 14 .356 .258
ENV 15 .221 .537
REM 16 .741
REM 17 .849
REM 18 .555
REM 19 .749
REM 20 -.273 .377 .525 .248
POL 21 .253 .821 -.242
POL 22 .347 .786
POL 23 .566
POL 24 -.251 .634 .232
Extraction Method: Principal Axis Factoring.
Rotation Method: Promax with Kaiser Normalization.
a. Rotation converged in 9 iterations.

Appendix 4.4.2: EFA with all independent variable (the second time in 4 times)

Total Variance Explained the second time in 4 times
Factor Initial Eigenvalues Extraction Sums of Squared
Loadings
Rotation
Sums of
Squared
Loadings
a

Total % of
Variance
Cumulative
%
Total % of
Variance
Cumulative
%
Total
69

1 10.320 44.869 44.869 9.922 43.137 43.137 7.088
2 1.580 6.871 51.740 1.237 5.380 48.517 7.981
3 1.407 6.116 57.856 1.038 4.513 53.030 6.195
4 1.257 5.466 63.322 .855 3.717 56.747 6.192
5 1.022 4.444 67.766 .683 2.968 59.715 4.548
6 .876 3.810 71.577

7 .746 3.245 74.822

8 .610 2.652 77.474

9 .597 2.595 80.069

10 .526 2.285 82.354

11 .482 2.095 84.449

12 .452 1.967 86.416

13 .432 1.878 88.294

14 .382 1.661 89.955

15 .356 1.547 91.502

16 .326 1.418 92.920

17 .295 1.283 94.204

18 .275 1.198 95.401

19 .250 1.087 96.489

20 .228 .993 97.482

21 .209 .909 98.391

22 .201 .874 99.264

23 .169 .736 100.000

Extraction Method: Principal Axis Factoring.
a. When factors are correlated, sums of squared loadings cannot be added to obtain a
total variance.

Pattern Matrix
a
the second time in 4 times
Factor
1 2 3 4 5
TRA 01 .843
TRA 02 .845
TRA 03 .730
LEA 05 .494
LEA 06 .553
LEA 07 .245 .803
LEA 08 .404 -.303 .577
LEA 09 .599
LEA 10 .593
LEA 11 .728
ENV 12 .329 .440
70

ENV 13 .291 .489 -.207
ENV 14 .373 .241
ENV 15 .224 .532
REM 16 .735
REM 17 .858
REM 18 .559
REM 19 .752
REM 20 -.261 .377 .508 .248
POL 21 .240 .830 -.242
POL 22 .332 .792
POL 23 .560
POL 24 -.251 .626 .235
Extraction Method: Principal Axis Factoring.
Rotation Method: Promax with Kaiser Normalization.
a. Rotation converged in 10 iterations.
Appendix 4.4 .3. EFA for all independent variables (The third time in 4 times)
Total Variance Explained The third time in 4 times
Factor Initial Eigen values Extraction Sums of Squared
Loadings
Rotation
Sums of
Squared
Loadings
a

Total % of
Variance
Cumulative
%
Total % of
Variance
Cumulative
%
Total
1 9.074 45.369 45.369 8.659 43.295 43.295 7.022
2 1.484 7.420 52.789 1.040 5.201 48.496 6.859
3 1.365 6.826 59.615 1.006 5.032 53.529 6.273
4 1.220 6.099 65.714 .820 4.100 57.628 5.433
5 .995 4.973 70.687

6 .677 3.387 74.074

7 .604 3.019 77.093

8 .581 2.905 79.998

9 .509 2.545 82.543

10 .485 2.426 84.969

11 .456 2.279 87.247

12 .403 2.015 89.262

13 .358 1.792 91.055

14 .322 1.610 92.665

15 .316 1.582 94.247

16 .268 1.341 95.588

17 .241 1.204 96.791

18 .230 1.148 97.940

71

19 .225 1.127 99.067

20 .187 .933 100.000

Extraction Method: Principal Axis Factoring.
a. When factors are correlated, sums of squared loadings cannot be added to obtain a
total variance.

Pattern Matrix
a
The third time in 4 times
Factor
1 2 3 4
TRA 01 .863
TRA 02 .846
TRA 03 .677
LEA 05 .567
LEA 06 .656
LEA 07 .634
LEA 08 .694
LEA 09 .706
LEA 10 .672
LEA 11 .766
ENV 15 .228 .446
REM 16 .699
REM 17 .873
REM 18 .610
REM 19 .755
REM 20 .448 .481
POL 21 .835
POL 22 .848
POL 23 .642
POL 24 .201 .663
Extraction Method: Principal Axis Factoring.
Rotation Method: Promax with Kaiser
Normalization.
a. Rotation converged in 6 iterations.
Appendix 4.4 .4. EFA for all independent variables (The fourth time in 4 times)
Variance Explained The fourth time in 4 times
Factor Initial Eigenvalues Extraction Sums of Squared
Loadings
Rotation
Sums of
Squared
Loadings
a

Total % of
Variance
Cumulative
%
Total % of
Variance
Cumulative
%
Total
72

1 8.658 45.570 45.570 8.248 43.411 43.411 6.756
2 1.444 7.600 53.170 1.019 5.364 48.775 6.680
3 1.310 6.895 60.064 .973 5.120 53.895 5.972
4 1.209 6.365 66.430 .803 4.226 58.122 5.276
5 .881 4.635 71.065

6 .677 3.563 74.629

7 .601 3.161 77.790

8 .571 3.003 80.793

9 .498 2.621 83.415

10 .465 2.446 85.861

11 .450 2.368 88.229

12 .364 1.918 90.147

13 .358 1.883 92.030

14 .317 1.671 93.701

15 .298 1.568 95.269

16 .241 1.267 96.536

17 .233 1.224 97.760

18 .228 1.200 98.960

19 .198 1.040 100.000

Extraction Method: Principal Axis Factoring.
a. When factors are correlated, sums of squared loadings cannot be added to obtain a total
variance.
Pattern Matrix
a
The fourth time in 4 times
Factor
1 2 3 4
TRA 01 .839
TRA 02 .848
TRA 03 .713
LEA 05 .500
LEA 06 .604
LEA 07 .760
LEA 08 .828 -.246
LEA 09 .664
LEA 10 .594
LEA 11 .681
ENV 15 .472
REM 16 .736
REM 17 .958
REM 18 .601
REM 19 .780
POL 21 .903
POL 22 .921
73

POL 23 .623
POL 24 .565
Extraction Method: Principal Axis Factoring.
Rotation Method: Promax with Kaiser
Normalization.
a. Rotation converged in 6 iterations.

Appendix 4.5. Regression, model 1. Independent variables: Training, leadership,
remuneration and company policies; dependent variable: Commitment

Model 1: Correlations
COM TRA LEADER REM POL
Pearson Correlation
COM 1.000 .439 .635 .600 .686
TRA .439 1.000 .521 .529 .494
LEADER .635 .521 1.000 .667 .603
REM .600 .529 .667 1.000 .600
POL .686 .494 .603 .600 1.000
Sig. (1-tailed)
COM . .000 .000 .000 .000
TRA .000 . .000 .000 .000
LEADER .000 .000 . .000 .000
REM .000 .000 .000 . .000
POL .000 .000 .000 .000 .

Model 1: Model Summary
b

Model R R
Square
Adjusted
R
Square
Std. Error
of the
Estimate
Change Statistics
R
Square
Change
F
Change
df1 df2 Sig. F
Change
1 .749
a
.561 .556 2.80282 .561 105.525 4 330 .000
a. Predictors: (Constant), POL, TRA, LEADER, REM
b. Dependent Variable: COM
Model 1: ANOVA
a

Model Sum of
Squares
Df Mean Square F Sig.
1
Regression 3315.937 4 828.984 105.525 .000
b
Residual 2592.422 330 7.856

Total 5908.358 334

a. Dependent Variable: COM
b. Predictors: (Constant), POL, TRA, LEADER, REM

74


Model 1. Coefficients
a

Model Unstandardized
Coefficients
Standardized
Coefficients
t Sig. Collinearity
Statistics
B Std.
Error
Beta Tolerance VIF
1
(Constant) 6.151 1.057

5.818 .000

TRA .004 .089 .002 .047 .963 .646 1.549
LEADER .259 .051 .268 5.045 .000 .472 2.116
REM .208 .067 .166 3.123 .002 .470 2.126
POL .651 .076 .424 8.591 .000 .546 1.831
a. Dependent Variable: COM

Model 1: Collinearity Diagnostics
a

Model Dimension Eigenvalue Condition
Index
Variance Proportions
(Constant) TRA LEADER REM POL
1
1 4.942 1.000 .00 .00 .00 .00 .00
2 .018 16.461 .34 .30 .02 .08 .33
3 .017 17.102 .57 .67 .01 .00 .00
4 .013 19.222 .04 .02 .10 .42 .66
5 .009 22.988 .06 .00 .87 .50 .01
a. Dependent Variable: COM
Model 1: Residuals Statistics
a

Minimum Maximum Mean Std. Deviation N
Predicted Value 16.5801 33.4782 26.3731 3.15087 335
Residual -9.24474 16.76302 .00000 2.78599 335
Std. Predicted Value -3.108 2.255 .000 1.000 335
Std. Residual -3.298 5.981 .000 .994 335
a. Dependent Variable: COM












75


Charts







76






Appendix 4.6. Regression, model 2. Independent variables: Organizational
Commitment; dependent variable: intention to stay


Model 2: Model Summary
b

Model R R
Square
Adjusted
R Square
Std. Error
of the
Estimate
Change Statistics
R Square
Change
F
Change
df1 df2 Sig. F
Change
1 .621
a
.385 .383 1.83378 .385 208.607 1 333 .000
a. Predictors: (Constant), COM
b. Dependent Variable: INT




77

Model 2: ANOVA
a

Model Sum of
Squares
df Mean Square F Sig.
1
Regression 701.496 1 701.496 208.607 .000
b

Residual 1119.800 333 3.363

Total 1821.296 334

a. Dependent Variable: INT
b. Predictors: (Constant), COM

Model 2: Coefficients
a

Model Unstandardized
Coefficients
Standardized
Coefficients
t Sig. Collinearity
Statistics
B Std.
Error
Beta Tolerance VIF
1
(Constant) 2.074 .637

3.255 .001

COM .345 .024 .621 14.443 .000 1.000 1.000
a. Dependent Variable: INT

Model 2: Collinearity Diagnostics
a

Model Dimension Eigenvalue Condition
Index
Variance Proportions
(Constant) COM
1
1 1.988 1.000 .01 .01
2 .012 12.639 .99 .99
a. Dependent Variable: INT

Model 2: Residuals Statistics
a

Minimum Maximum Mean Std. Deviation N
Predicted Value 6.2086 14.1338 11.1612 1.44924 335
Residual -6.99891 3.65652 .00000 1.83104 335
Std. Predicted Value -3.417 2.051 .000 1.000 335
Std. Residual -3.817 1.994 .000 .999 335
a. Dependent Variable: INT









78

Charts