Employee Engagement and Commitment to Chinese Multinational Enterprises - Literature review Example

METHODOLOGY PROPOSAL: A study of employee engagement and commitment in Chinese multinational enterprises BY YOU YOUR SCHOOL INFO HERE HERE Methodology Proposal 1. Research direction Employee commitment and engagement are inter-dependent on achieving organisational objectives (Vance 2006), including profitability and competitive advantage. However, in Chinese multinationals, it is common for there to be considerable power distance between management and subordinates as a product of long-standing cultural expectations. Managers that have power in the organisation are granted better status and prestige than subordinates and for employees to express a challenge or argument with superiors is considered highly inappropriate (House, Hanges, Javidan, Dorfman and Gupta 2004). Hence, the rank structure in the organisation is clearly defined which provides less opportunities for shared decision-making and socialisation between management and employee groups. Concurrently, Farndale (2010) indicates that an enterprise’s success and development cannot dismiss all-around employee participation. This requires employee commitment and engagement. However, the status quo in contemporary Chinese organisations is for a centralised structure where employee opinions are deemed largely irrelevant. Therefore, this study aims to determine whether the existing status quo, or more Western models of participative leadership, is relevant for improving employee engagement and commitment in Chinese organisations. 2. Previous researchers’ methodological approaches Jing-Zhou, Xiao-Xue and Xia-Qing (2010) identify that in today’s Chinese organisations, power is highly adulated and the existence of managerial authoritarianism is given considerable emphasis. The authors propose to discover whether more effective leader-member exchanges and the development of psychological empowerment, involving providing opportunities for self-efficacy and autonomy, are relevant leadership strategies to improve organisational commitment (Jing-Zhou et al. 2010). Using a variety of secondary literature as support on the phenomenon of leader-member exchanges and employee psychological empowerment, the researchers develop a quantitative methodology utilising survey instruments as the appropriate measurement tool to determine whether status quo systems or more liberalised leadership policies improve employee commitment. Jing-Zhou et al. (2010) wanted to capture a broad sample group sentiment about their level of potential commitment to managers and the organisation, hence they determined that 500 different Chinese employee subjects would give breadth and relevancy to research findings. Usable responses to the surveys incorporated a total of 423 employees who maintained an average tenure of almost 14 years and was nearly equivalent in terms of male versus female representation, 58.6% and 41.4% respectively. As commitment is relevant for both male and female Chinese employees, this represented a balanced recruitment of an appropriate sample group. The authors in this study attempted to measure three distinct phenomenons: psychological empowerment, affective commitment and the level of perceived organisational support granted to employees as part of self-reporting measurements (Jing-Zhou et al.). The survey instruments were constructed using a Likert-type scale, with selection criterion inclusive of a five point scale where 1 = strongly disagree and 5 = strongly agree. Likert scales have considerable advantages in quantitative research as it is considered symmetric since there is an equal volume of potential positive and negative sentiments (Burns and Burns 2008). The Likert scale instrument was also appropriate for this study as responses are irrefutable due to the ability of the researcher to perform simple mathematical analyses. Such a scale does not force respondents to commit to taking a particular stand regarding a phenomenon by providing yes and no responses, hence making it uncomplicated for the participant. It is likely that some employees, especially in a large recruited sample as in this particular study, maintain indecision or a neutral position about an issue and the Likert Scale provides this opportunity if neutrality is relevant to certain demographics in the sample group. Furthermore, it is much more simplistic for the researcher to code this type of quantitative data as only a single numerical representation characterises participant responses (Trochim 2006). Furthermore, quantitative research methodologies ensure that the researcher is fully unbiased and detached from the research (Saunders 2009). This is necessary to ensure validity in the research study, or the capacity of an instrument to accurately measure the phenomenon that is intended to be assessed. Validity is concerned with whether there is truthfulness, candour and accuracy in data results (Israel, Eng, Schultz and Parker 2005). Quantitative data achieved through the Likert scale is difficult to refute as it supports, statistically, transparency and integrity of data findings that are concretely supported by scientific and mathematical accuracy. The researchers utilise correlational analysis and hierarchical regression analysis for data analysis which considers mean values to determine a holistic statistic representative of majority sentiment to add further credibility to the findings. Hence, the quantitative methodology used in this study was highly appropriate as there was no underpinning phenomenon that actually caused potential employee commitment, such as a need to measure complex attitudes or emotions. Instead, the study wanted to clearly measure the inter-connectivity between organisational support and psychological empowerment which would theoretically lead to or reduce organisational commitment. If the study had utilised a qualitative approach, it would have required very subjective inferences and interpretations of vastly complex attitudinal and emotional factors to determine potential organisational commitment. This would have reduced validity in the study and produced questionable results especially since the researchers did not maintain advanced knowledge in sociological and psychological theories. Hence, there could have been much more researcher bias if qualitative approaches had been utilised since this type of study requires deductions and presumptions that are reliant on expertise in other domains of knowledge, such as psychology and sociology (Utwin 1995). In yet another study conducted by Angle and Perry (1981), the authors attempt to determine whether the extent of organisational commitment of subordinate employees in bus service organisations leads to higher levels of organisational effectiveness. Drawing on previous research studies showing that organisational commitment maintains multi-faceted and complex variables that contribute to its development, the researchers determine that a qualitative study is most appropriate to measure attitudes, motivations, and even the role of organisational structure in determining high or low levels of organisational commitment. Angle and Perry (1981) therefore utilise a blend of questionnaires and interview approaches utilising a sample of over 1300 employees of bus service organisations. To add reliability to the study, the researchers utilise an established and proven 15-item instrument known as the Organisational Commitment Questionnaire and then further supplement this instrument with interviews to provide the richness and depth of understanding about complex variables associated with psychology that could potentially contribute to organisational commitment levels. This qualitative approach was highly relevant for measuring complex human psychological factors when there is a need for highly descriptive evaluations of a situation or phenomenon and detailed analysis (Miles and Huberman 1994). In this particular study, the complexities proposed by the literature review on past studies indicated that organisational commitment is influenced by a variety of multi-faceted aspects that require a more in-depth study design and utilisation of researcher inference in analysing potential contributors to organisational commitment development. A further study conducted by Gould and Fontenla (2006) attempt to measure whether nurses maintain high organisational commitment to assist the National Health Service in improving retention rates in an environment where nurses are scarce. For it is recognised that high levels of organisational commitment in nursing professions lead to long-term retention and intention to stay with the organisation (DeGroot, Burke and George 1998). It was determined in the study’s literature review that there were several factors that could potentially lead to organisational commitment, which included the presence of family friendly work policies, continuing education opportunities and the innovation of job roles. Hence, as with the study aforementioned by Angle and Perry (1981) there were many different variables that required measurement which justified a qualitative research methodology to provide more richness and breadth. Gould and Fontenla (2006) utilised a series of interviews under an exploratory approach with open-ended question format. A total of 27 nurses were interviewed, thus providing a broader range of sentiment and study depth. The open-ended format allowed for freer participant discussion about various phenomenons, thereby not limiting the study to only job role innovation, education opportunities, or family friendly policy development. This showed ingenuity on behalf of the researchers to consider more potential influences on organisational commitment that enhanced study validity. Data was recorded and then transcribed then compared to other interview themes and discussions to determine whether there were recurrent repeated themes. Hence, it was discovered that autonomy was another unexpected contributor to organisational commitment, which would not have been identified without open-ended interview formats. A further study conducted by Eslami and Gharakhani (2012) attempted to measure whether job satisfaction was linked with organisational commitment development. This study recognised many factors that influenced job satisfaction, inclusive of emotional factors, job burnout, salary, and even job tenure (to name only a few) could potentially contribute to organisational commitment reduction or enhancement. Hence the study utilised a qualitative methodology that involved production of questionnaires to more effectively measure a variety of complex variables. The study recruited 280 employees and utilised a Likert Scale for the instrument to test three developed hypotheses based on the literature review conceptions. Calculation of the mean average, which represents a variety of majority sentiments indicative of a wider population of employees, was appropriate for predicting the attitudes and beliefs of a broader subsection of a larger population of employees should the questionnaire be delivered again to another recruited sample. This highly improved study validity. A quantitative methodology, due to the complexity of factors that could potential contribute to job satisfaction, would have been impossible and results therefore invalid. One final study conducted by Ugboro (2006) attempted to measure whether job redesign, empowerment and intention to quit were factors involved with organisational commitment. The study took a quantitative approach to research, utilising a Likert scale questionnaire to measure three distinct variables that could contribute to organisational commitment enhancement or reduction. This, as with other aforementioned studies, provided opportunities to calculate a mean total of responses indicative of a broader majority of respondents and other populations, whilst also improving validity through the utilisation of complex mathematical analyses inclusive of the Tucker-Lewis Reliability Index and the Pearson correlation model. This provided statistically significant results that could be correlated effectively with the mean to provide a more comprehensive understanding of the relationship of the three dimensions known to lead to organisational commitment development. The extent of research activities necessary to measure this phenomenon qualitatively would have been difficult and unreliable and involved total researcher immersion in the phenomenon. Furthermore, this quantitative approach ensured that researchers were not immersed and engaged with their participants, hence removing bias from the study and improving validity of data results. 3. Draft of the research instrument The research would concentrate on the Chinese multinational corporations. And the research questions might primarily cover the following: 1. What is your position (ordinary staff, manager or other?) This question ensures that the study recognises what specific role the individual maintain in the organisation. It has been recognised by Hunt and Morgan (1994) that job role tenure, job status, and salary can contribute to job satisfaction which, in turn, is often linked with organisational commitment levels. By engaging the participant about their position, it will assist in potentially correlating whether specific jobs and rank status contribute to factors that impede or enhance organisational commitment. 2. What is the basic tasks and mission being assigned to you? (Simple own work, challenging job, teamwork, others) how often do the organisation assign tasks? Again, this question helps to clearly define the role in terms of task assignment and the level of challenge that might be present in the job role. Many domains of knowledge recognise that the perception of job role importance often serve as predictors of employee commitment and willingness to remain with the organisation. These are important factors for determining the level of engagement and commitment that is present in a specific job role. 3. Have you ever work extra hours for your company? How often? What do you feel about this? It is an expectation in Chinese organisations that they will be devoted to working long hours as part of a cultural heritage in which there is an expectation that loyalty will be a product of honour and personal employee integrity. However, not all employees maintain loyalty to the organisation, but more to the manager if their level of engagement is positive and supportive; theoretically. Hence by asking this question, it will help to determine whether the status quo of duty is being broken down by modernising business methods and practices and whether the Chinese culture considers these to still be viable constructs and obligations in a more globalised environment that is adopting more principles of shared leadership rather than rigid management. 4. What do you feel about the participation degree in the organisation? Have you ever take part in the core management decision-making process? If have, how often? This question is generic and attempts to determine whether there are opportunities for shared decision-making. By understanding this, it will set the stage for knowledge about the role of engagement and the extent of this phenomenon. Responses to this question will also allow the researcher to understand whether the status quo of power distance is still common and relevant or whether the organisational environment is changing for more inclusive decision-making policies and practices. Not all employees in Chinese businesses believe that maintaining a lower level status with no opportunities to share decision-making is acceptable practice and want to be recognised for the individual accomplishments; theoretically. Hence, the research study can find out whether there is a change in employee-based status quo and acceptance of long-standing professional practices applauding high power distance or whether they want more inclusion under a more Westernised model of business policy and practice. The level to which an individual employee believes they are able to participate could have much influence in how they perceive their rank importance or social relevance (as well as professional relevance). This could have correlations with organisational commitment levels once it is understood how the individual feels about the current practices and status quo that is currently part of the organisational culture and business model. 5. Does your company have some incentive rewards for employees who has devoted to the company? This question determines whether there are extrinsic rewards available for employees who show signs and productivity related to commitment and loyalty. It only serves to understand what policies and practices are utilised in this fashion which is often known to lead to more job satisfaction and, in turn, organisational performance. Many Chinese citizens in society today are hedonistic, meaning self-indulgent, hence there is often more emphasis on extrinsic incentives that provide higher quality of lifestyle. Most Chinese employees are not driven by intrinsic motivations related to job participation to fulfil internal psychological needs. 6. What is your suggestion for your company in enhancing employee engagement and commitment? Now in this case, this open-ended question allows the research to understand the diverse sentiment and attitudes about engagement and provides insight into whether the status quo of power distance organisations is acceptable or whether employees feel evolution and change are required. This will provide opportunities to explore more in-depth attitudes and emotions that will assist in understanding the potential psychological or sociological factors that could potentially lead to higher or lower organisational commitment. Responses could also provide a benchmark or template for assisting contemporary Chinese business managers and leaders in creating more effective models that would lead to organisational loyalty and commitment if the research uncovers correlations between the majority of demographics that will be recruited for this study. The open-ended format in this question allows the researcher to let the employee express their personal motivations, beliefs, values or even emotions that contribute to specifically how the employee evaluates their role within an organisational context. It could reveal unexpected results not necessarily founded on the review of literature in the dissertation that will serve as the underpinning structure for research design and premise. This is important as it is likely that there will be unanticipated factors not already researched by previous studies that will enhance modern knowledge of Chinese employee attitudes on engagement and organisational practices that lead to commitment and dedication. References Angle, H.L. and Perry, J.L. (1981). An empirical assessment of organizational commitment and organizational effectiveness, Administrative Science Quarterly, 26(1), pp.1-14. Burns, A. and Burns, R. (2008). Basic marketing research, 2nd edn. Pearson Education. 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The role of leadership between the employees and the organization,: a bridge or a ravine? – an empirical study from China, Journal of Management and Marketing Research, 5(March), pp.1-14. Miles, M.B. and Huberman, A.M. (1994). Qualitative data analysis: an expanded sourcebook. Sage Publications. Saunders, M. (2009). Research methods for business students, 5th edn. FT/Prentice Hall. Trochim, W.M. (2006). Likert scaling, in W.M. Trochim, Research Methods Knowledge Base, 2nd edn. Atomic Dog Publishing. Ugboro, I.O. (2006). Organizational Commitment, Job Redesign, Employee Empowerment and Intent to Quit Among Survivors of Restructuring and Downsizing, Institute of Behavioural and Applied Management. [online] Available at: ibam.com/pubs/jbam/articles/vol7/no3/JBAM_7_3_1_Organizational_Commitment.pdf (accessed 8 February 2014). Utwin, M.S. (1995). How to Measure Survey Reliability and Validity. Sage Publications. Vance, R. J. (2006). Employee engagement and commitment: A guide to understanding, measuring and increasing engagement in your organization, SHRM Foundation. Read More