Proceedings of Annual Tokyo Business Research Conference

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Proceedings of Annual Tokyo Business Research Conference
15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2
Learning Organization Factor Affecting Organizational
Commitment of Employee in Osg Thai Co., Ltd
Chonthicha Pothichot*, Chanin Srisuwannapa** and
Nuttawut Rojniruttikul ***
The objectives of this research are to study the organization at commitment
of employee in OSG Thai Co., Ltd and to study the learning organization
factors that affects to the organizational commitment of employees. The
researcher collected the data from 98 respondents by using purposive
sampling. This research used mainly quantitative research and also the
questionnaires as research instrument statistics for data analysis includes
percentage, arithmetic mean and standard deviation. Multiple Linear
Regression is used to test the hypothesis. The results can be summarized
as follow:
1) OSG Thai’s employee have high level of organizational commitment.
2) Personal mastery and shared vision could affect the organizational
commitment of OSG Thai’s employee at statistic significance level of 0.05.
Field of Research: Managing people and organization.
1. Introduction
That organization would be able to keep quality personnel to stay in the organization, it is
really important to motivate people and create engagement in the organization. This would
result in good relationship between people and work result because the work is created
from the people, the people is the creator of the work. It can be seen that if a person is
motivated well, it would result in work efficiency and effectiveness for the organization,
leading to the engagement towards the organization. The change issue is the important
thing to consider as well; it may be rapid growth in technology or economy that would
affect the internal and external operation. This leads to a new management concepts
including Knowledge Management, Change Management etc. So thatthe organization
could move on. People have skill and experience that would create expertise that is
Knowledge Capital. It is necessary to create corporate value and corporate culture.
The management of “human resources” or “human capital” or “human” must be paid
attention by the managers since it is recognized that “human” is one key factor that would
affect the success of the organization. So, the organization has to face with new
challenges in attracting people and retain them to stay at the organization. Therefore,
building employee engagement is the important issue for the organization, and both
government sector and private sector. It is the commitment and ability to dedicate oneself
to the success for the organization. It can then be said that this is the level of careful
attempt, time spent, intellect, and labor of employees that are put into the work. Also,
employees have to express their engagement in work.
________________________________________________________________________
*Ms. Chonthicha Pothichot , Administration and Management College, King Mongkut‟s Institute of
Technology Ladkrabang, Thailand, E-mail : Pothichot_C@hotmail.com
** Dr. Chanin Srisuwannapa, Faculty of Science, King Mongkut‟s Institute of Technology Ladkrabang,
Thailand,
E-mail : Chanin_sri@yahoo.com
*** Assistant Professor Dr. Nuttawut Rojniruttikul, Administration and Management College, King Mongkut‟s
Institute of Technology Ladkrabang, Thailand, E-mail : krnuttaw@kmitl.ac.th
Proceedings of Annual Tokyo Business Research Conference
15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2
The personnel engagement towards the organization then is enhanced among the
employees. It would support the producing of goods and the provision of service, and
would maximize profit for the organization. So, it is necessary for the organization to have
it.
According to various principles as mentioned, it can be concluded that “human” is very
essential towards the organization‟s success. However, it is not that all people would
create added value for the organization. There are only some personnel who have
engagement with the organization since these personnel would dedicate themselves and
would move the organization to achieve the goal. The important thing is that the
engagement towards the organization would be involved with the retention of the
personnel to stay with the organization and to not stay with the competitor that would
cause considerable damages and expenses. When the employee is not much engaged
with the organization, it would affects many aspects of work such as the trend of quitting
work, the unwilling to sacrifice for the common well, work less, avoiding work as much as
possible. Therefore, the encouragement of people to engage in the organization is
important thing to do and this would benefit the employees and the organization. (Nattapan
Kaejornnan, 2008).
The OSG Thai Company Limited was founded in 1999. It is registered in the name of
OSG Thai Company Limited. It is located at Chachoengsao Province, 24180 (Thailand
Branch). It is the organization that has performed business on tool (such as drill bit), with
sub-branches in many countries such as Vietnam, Philippines, with main branch in Japan.
From the growth and the expansion of branches in many countries, the important thing is
personnel because it is required to have employees to work in all branches to provide
service to customers. This reflects the engagement towards the organization. It can be
indicated by the rate of leaving from work. The impact on the organization is that the
organization has to recruit new employees and the work of the employees needs skill, and
all employees have to be trained from one generation to the other generation, this makes
the trained employees have skill. So, it is necessary to keep the good quality employees to
stay in the organization as this would encourage the new generation of employees to use
what is taught by the senior employees for expertise and rapidness.
With such reason, the researcher becomes interested in studying into the engagement
towards the organization among employees of the O S G Thai Company Limited, in order
to seek for facts that what level are the employees engaged with the company, so that the
study result would be brought to be ways in improving, correcting, and developing work
and to increase the level of engagement towards the organization. This would lead the
organization to be able to keep knowledgeable and competent personnel to stay in the
organization forever.
2. Literature Review
The commitment towards the organization is significant to the organization; that is, that for
an organization to be successful and achieve goal, it has to rely on cooperation, harmony,
and unity and the commitment towards the organization of organization‟s members, so that
members would have shared goal, work together, develop together, and are happy when
the work is successful and efficient.
Proceedings of Annual Tokyo Business Research Conference
15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2
The commitment towards the organization causes the personnel to have a sense of their
own part of the organization, to be willing to sacrifice for the benefit of the organization, to
want to become the organization‟s member really (Steers 1977). The good relationship
among workers would lead to the improvement of work performance for maximum benefit
of the organization (Institute for Employment Studies 2004, Robinson 2004). Besides, the
commitment towards the organization is an indicator of effectiveness of the organization as
well. The commitment towards the organization can arise through being appropriate
learning organization. Marquardt (1990) proposed the concept of being learning
organization that consists of 5 key principles including learning dynamics, changing of
organization, increasing power of the person, managing knowledge and applying
technology. The idea of David A. Gavin (1993) stated that in being learning organization, it
would consist of solving problems systematically, experimenting and trying new methods,
learning form experience from oneself and others, disseminating knowledge rapidly and
efficiently. The concept of learning organization used by the researcher belongs to Peter
M. Senge (199) who proposed concept that is consistent with the organization studied by
the researcher; the concept of being learning organization consists of 5 principles including
1) personal mastery stating that learning of personnel would be the beginning that must be
focused by the people in the organization and should practice and learn continuously for
the whole life (Lifelong learning) in order to increase one‟s own potential constantly; 2)
mental models, stating that the thought pattern, belief, attitudes from accumulated
experience become framework that makes such person to be able to understand and
make decision in various matters appropriately, these are basic of emotional quotient or
EQ, realizing one‟s own framework leads to the clarity of form, thinking, belief that affect
decision making and one‟s own action; 3) having shared vision, stating that building
shared vision of people in the organization to be able to see picture and to have same
direction of need would be the view to require the organization to learn and to determine
shared vision, that would be framework concerned with the condition of future of the
organization that everybody in the organization wants; 4) team learning, stating that
learning together of members in group or in team is the significant goal that could happen
in order for exchange and dissemination of knowledge and experience regularly, this kind
of learning focuses on harmony and unity and solving problem together as a team; 5)
systematic thinking, stating that the people in the organization must link various matters
together by seeing and understanding relationship systematically, it is of total system, to
see the target first, so that it is able to see the sub-system, this would make it possible to
plan and work and complete on small parts individually.
3. The Methodology and Model
In this study, the researcher aimed at studying “learning organization factors that affect the
commitment towards the organization of the O S G Thai Company Limited‟s employees.
Population used in this research was 130 employees of the O S G Thai Company Limited.
The size of samples calculated from Simple Random Sampling (Taro Yamane. 1967) was
98 persons. In collecting data, there were close-ended questions specified for the
participants to answer and open-ended questions so that the participants could express
opinions freely; the details are as follows for the questionnaire used in research that
consists of 4 parts:
Part 1: It is the question about the personal factors of the respondents consisting of
personal factors including gender, status, age, educational level, position, and working
experience for 6 items.
Proceedings of Annual Tokyo Business Research Conference
15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2
Part 2: It is the questionnaire about factors of learning organization of the O S G Thai
Company Limited that is characterized by rating scale with 5 levels of scores of Rensis
Likert.
Part 3: It is the questionnaire about the commitment towards the organization of the
employees of the O S G Thai Company Limited that is characterized by rating scale with 5
levels of scores of Rensis Likert.
Part 4: It is the open-ended questions to express opinions or suggestions concerned with
the commitment towards organization so that the respondents could express their opinions
or suggestions that are beneficial to the organization for 1 item.
Hypothesis: Factors of learning organization on well-rounded person, on pattern of
thought, on shared vision, on learning as a team, and on systematic thinking, affects the
commitment towards the organization.
Theoretical Model:
Model of Peter M. Senge(1990) of Massachusetts Institute of Technology, the author of
“The Fifth Discipline: the Art and Practice of the Learning Organization.” stating about the
characteristics of learning organization in that the learning organization shall follow 5 rules
include Personal Mastery , Mental Models , Shared Vision , Term Learning and Systematic
Thinking.
The commitment towards organization: the researcher reviewed the concept of Hrebinlak
& Alutto (1972), Steers (1977) and Robinson (2004), stating about the meaning of
commitment towards organization that can be used to assess the commitment towards
organization. And according to the survey, it was found that factors on commitment
towards organization consists of willingness to perform work for the organization, on pride,
on relationship among colleagues, on confidence in the organization goal.
Figure 1: Framework Used in Research
Independent Variable
Factors of learning
organization
1. Personal Mastery
2. Mental Models
3. Shared Vision
4. Term Learning
5. Systematic Thinking
Dependent Variable
Commitment towards
organization
Proceedings of Annual Tokyo Business Research Conference
15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2
4. The Findings
Table 1: Personal Factors of Employees
Number
Personal factors
1. Gender
Male
Female
Total
2. Status
Single
Married
Others
Total
3. Age
More than 20 years old to30 years old
More than 30 years old to 40 years old
More than 40 years old to 50 years old
Total
4. Educational level
Ninth grade or lower
Twelfth grade/ Lower Vocational Certificate
Diploma or equivalent/ Higher Vocational
Certificate
Bachelor‟s Degree
Higher than Bachelor‟s Degree
Total
5. Job Position
Operational level
Office employee
Supervisor
Controller of supervisor
Engineer
Manager level and upwards
Total
6. Working experience in this Company
Not more than 3 years
More than 3 years to 5 years
More than 5 years to 10 years
More than 10 years
Total
Percent
51
47
98
52.0
48.0
100.0
65
31
2
98
66.3
31.6
2.0
100.0
59
34
5
98
60.2
34.7
5.1
100.0
10
54
11
22
1
10.2
55.1
11.2
22.4
1.0
98
100.0
50
13
20
6
7
2
98
51.0
13.3
20.4
6.1
7.1
2.0
100.0
49
24
19
6
98
50.0
24.5
19.4
6.1
100.0
According to Table 1, it is found that most employees are male, single, who are more than
20 years old to 30 years old, with educational level of twelfth grade/ Lower Vocational
Certificate, being operational employee with working experience of not more than 3 years.
Proceedings of Annual Tokyo Business Research Conference
15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2
Table 2: Means ( X ), Standard Deviation (S.D.), level and order of factors of learning
organization
Learning organization factors
1. Personal Mastery
2. Mental Models
3. Shared Vision
4. Team Learning
5. Systematic Thinking
Total
Remarks: a is the equal level
X
S.D.
Level
Order
3.490
3.353
3.406
3.330
3.406
3.397
0.727
0.694
0.661
0.771
0.817
0.630
High
Moderate
High
Moderate
High
1
4
2a
5
2a
-
Moderate
According to Table 2, it is found that employees have factors of learning organization at
moderate level, where factors of learning organization Personal Mastery is the most,
secondary is the Shared Vision, on Systematic Thinking, Mental Models, and Team
Learning, respectively.
Table 3: Means ( X ), Standard Deviation (S.D.), level and order of organizational
commitment
Organizational commitment
S.D.
Level
Order
X
1. Willingness
3.416
0.636
High
3
2 Pride
3.667
0.759
High
1
3. Companionship
3.628
0.739
High
2
4. Reliability
3.378
0.752
Moderate
4
Total
3.522
0.576
High
According to Table 3, it is found that the employee is committed towards the organization
in total at high level, where on pride is most level, secondary is the companionship among
colleagues, on willingness to work for organization, and on reliability in organizational goal,
respectively.
Table 4: Multiple Linear Regression Analysis of factors of learning organization that
affect that organizational commitment
Variable
bj
t
p-value
Constant Value
0.187
4.837
0.000 **
Personal Mastery
0.166
2.031
0.045*
Mental Models
0.067
0.786
0.434
Shared Vision
0.253
2.405
0.018*
Team Learning
0.031
0.296
0.768
Syatematic Thinking
0.171
1.617
0.109
R = 0.724 ; R2 = 0.524 ; SEE = 0.408 ; F = 20.239 ; p-value = 0.000**
Remarks: * is the statistical significance of .05 level, ** is the statistical significance of .01
level
Proceedings of Annual Tokyo Business Research Conference
15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2
According to Table 4, it is found that well-rounded person and shared vision affect the
commitment towards organization in total with statistical significance of .05 level; all factors
of learning organization can explain the variance of commitment towards organization for
52.4 percent
5. Conclusions
In study related with learning organization factor affecting organizational commitment of
employee in company. The results in this research showed the organization of learning in
part of personal mastery and shared vision are affect to organizational commitment. But In
the part Mental model and Team learning are not affected to commitment of
organization .In more detail the researcher will explained as follows
Learning organization factor in part of personal mastery is most affected to commitment of
employee in company. Because most employees are the age of employee in the group
who just starting to work. People in this group like always to learn about something new
and trained to work by themselves. It will make the benefits of the work and the person
who have knowledge, which is relate on the concept of Senge (1990) that said, the
beginning for Learning of the personnel in the organization will need to focus on study and
learning practices continued to increase their life time and which is relate on the concept of
Argyris(1978) that said, The Learning Organization is process that verifies and corrects
errors always occur in the organization. Therefore, the basic of employee company is
curiosity includes the characteristics of organizational contributing to the learning due to
work with modern machinery. As a result, employees must be practice to learn all the time
to develop their own work.
Learning organization factor in part of shared vision is affected to commitment of employee
in company because the employees have a discussion if found the problems and have to
solved the problem in the works. The employee will make the group for analysis and solve
the problem in the work to be success with monitoring and mutual understanding in the
performance of work, planning work for related organization focus for practically in the
same direction and share opinions on the ability of the individual. Which relate on the
concept of Senge (1990) that said, creating a shared vision a pattern of thought
Subconscious person in the organization to create a shared vision of the organizational.
And relate on the concept of Dachner and Alison (2011) The staff have a idea and
understanding in the same direction then, it will be get result the better to organization and
employees can Pushed perspective and ideas to the worker directly. It also increases the
productivity of the company, responsible and mutual assistance in the company.
Learning organization factor in part of Mental Model is not effected to company. The
opinion of researcher, the company may send staff trained in working skills could not get
thoroughly enough. But the chief executive may attend instead and then continue training
Organizations should develop a training plan by identifying the correct position in order to
contribute to the employee.
Learning organization factor in part of team learning is not effected to company. The
opinion of researched, individual employee who works to practice one-to-one machine,
control modes work can be done out of one piece and relying on only one person in the
program may be the opinion of employees no need for the team to work. The organization
should have to make the training to employees to brainstorm ideas for the operation to
complete the job to get perfect product which not related on the concept of MetinAtak
(2011) that said, the study of the relationship between organizational commitment and
organizational learning that found the team learning affects organizational commitment.
Proceedings of Annual Tokyo Business Research Conference
15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2
Learning organization factor in part of Systematic Thinking is not effected to company. The
opinion of researcher, Organizations may be a small organization. Employees are also
less completing the Operating Guide and analyze the data in the form of application to use
as planned, analysis and skills to work a little and related on the concept of Brain Quinine
Marquardt (1996) that said, technology is a key component for learning in organizations.
Contribute to the development of ideas and good quality.
The recommendations from this research
1. The company should focus on personal mastery by promoting employees when
employees need to learn to do their jobs or development should provide support in terms
of the works to be tested or support on the part of the time for experimental work. Because
of the support in this section will make the staff that the company focus on the work of
employees. To make the staff‟s enthusiasm and more attentive to will make the
organization develop to the good direction .When the employee that The company needs
help fully in support of training skills. Be committed.
2. The company should promote the shared vision by organizing seminars in practice
together of operational staff. Employees can show the idea each of the people came out
according to ability of each person, and share ideas. Because that will make the enterprise
successful organization members should have been developing their vision consistent with
the vision of the organization to bring total company successfully under the same.
Because when the employees in the organization was different to achieve the goal, it is
very difficult.
The suggestion in research
In the study of other factors such as adding power to members to decentralized
responsibility and decision making and problem solving to the lower level employees as
throughout . In order that to staff training , learning and researching methods to solve
problems by method to solve problems on yourself include free indecision which will make
the result from indecision on yourself. Sometimes to add power to the employees in the
organization to help the company is developing as well.
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15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2
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