Work Attitudes in Vietnam

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« Academy of Management Executive, 2000, Vol. 14, No, 4 RESEARCH BRIEFS Work attitudes in Vietnam Thang Van Nguyen. National Economics Univeisity (Vietnam) and the UniveTsity of Oiegon Nancy K. Napiei. Boise State University employees can enhance competitive- ness at the firm and national levels in developed economies, does the same hold true in transition countries, where the shift frorri^et^lanned to market economy can wreak havoc with old ways of deal- ing with employees? As more firms enter develop- ing countries, this question becomes critical. Man- agers need to know whether methods of employee management used in developed countries will work in developing countries. For instance, as an economy shifts, is there a change in employee at- titudes about work, commitment to a company, sat- isfaction, and willingness to work hard? Will ob- servations about job satisfaction and commitment learned in Western settings hold in developing ecoj«5mies? ^/Research conducted in Vietnam, where employ- ees have traditionally worked for state-owned en- terprises (SOEs), but now are beginning to work within a market economy, provides some insight into these questions. Researchers Le Ngoc Hung, of the University of Hanoi, Stephen! Appold, of the National University of Singapore, and Arne Kalle- berg, of the University of North Carolina, recently explored issues of organizational commitment, job satisfaction, and factors influencing work attitudes in Vietnam. The researchers chose to base their study in Viet- nam because, with its burgeoning labor force, it is a country rich in human resources. Half of Viet- nam's nearly 80 million people were born after 1975. If Vietnam can use its labor force effectively, it could become a significant competitive force. If it fails, it might become a tinderbox for societal prob- lems. The researchers surveyed 1,116 employees work- ing at 49 firms in different industrial sectors and manufacturing branches (e.g., electronics, wood- working, and garment making). The firms, located in two of the country's largest cities, Hanoi and Ho Chi Minh City, included both SOEs and private firms. Respondents completed a survey on such issues as their organizational commitment, job sat- isfaction, job rewards, and work orientations (e.g.. work values and work centrality). The researchers then compared the responses of the Vietnamese employees with those from similar American and Japanese samples. Vietnamese employees generally reported posi- tive work/VCilues. They expressed high levels of commitment to^jeir organizations and satisfaction with their JOTJST OI3er employees were more com- mitted to their organizations and more satisfied with their jobs, while employees with more educa- tion had lower commitment and job satisfaction. Like their counterparts in developed countries, Vietnamese employees reported more organiza- tional commitment when they held jobs that were more complex, required more teamwork, or al- lowed them to receive more training. In addition, those holding jobs with more autonomy felt more committed and satisfied. Those who saw work as a central life interest valued stable work highly and were more committed to their organizations. Em- ployees who sought more independence or high income were less satisfied with their jobs. Like their counterparts in developed countries, Vietnamese employees reported more organizational commitment when they held jobs that were more complex, required more teamwork, or allowed them to receive more training. Some differences emerged based on the type of organization in which employees worked (SOE or private) and whether they worked in the north or south of Vietnam. While SOE employees were less satisfied with their jobs, they were nonetheless as committed as their counterparts in private compa- nies. Regarding regional differences, three dimen- sions arose: older workers' attitudes in the south were much more positive than those in the north; SOE employees in the north had much more neg- ative attitude^han their counterparts in the south; and when^rnings were high, employees in the north were more satisfied, while employees in the south were more committed. The issue of regional differences is one that re- searchers and managers may want to understand better, given the differences in how older people in each area were treated over the last 20 years in 142

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A Look at Work attitudes in Vietnam

Transcript of Work Attitudes in Vietnam

  • Academy of Management Executive, 2000, Vol. 14, No, 4

    RESEARCH BRIEFS

    Work attitudes in Vietnam

    Thang Van Nguyen. National Economics Univeisity(Vietnam) and the UniveTsity of Oiegon

    Nancy K. Napiei. Boise State University

    employees can enhance competitive-ness at the firm and national levels in developedeconomies, does the same hold true in transitioncountries, where the shift frorri^et^lanned to marketeconomy can wreak havoc with old ways of deal-ing with employees? As more firms enter develop-ing countries, this question becomes critical. Man-agers need to know whether methods of employeemanagement used in developed countries willwork in developing countries. For instance, as aneconomy shifts, is there a change in employee at-titudes about work, commitment to a company, sat-isfaction, and willingness to work hard? Will ob-servations about job satisfaction and commitmentlearned in Western settings hold in developingecoj5mies?^/Research conducted in Vietnam, where employ-ees have traditionally worked for state-owned en-terprises (SOEs), but now are beginning to workwithin a market economy, provides some insightinto these questions. Researchers Le Ngoc Hung, ofthe University of Hanoi, Stephen! Appold, of theNational University of Singapore, and Arne Kalle-berg, of the University of North Carolina, recentlyexplored issues of organizational commitment, jobsatisfaction, and factors influencing work attitudesin Vietnam.

    The researchers chose to base their study in Viet-nam because, with its burgeoning labor force, it isa country rich in human resources. Half of Viet-nam's nearly 80 million people were born after1975. If Vietnam can use its labor force effectively,it could become a significant competitive force. If itfails, it might become a tinderbox for societal prob-lems.

    The researchers surveyed 1,116 employees work-ing at 49 firms in different industrial sectors andmanufacturing branches (e.g., electronics, wood-working, and garment making). The firms, locatedin two of the country's largest cities, Hanoi and HoChi Minh City, included both SOEs and privatefirms. Respondents completed a survey on suchissues as their organizational commitment, job sat-isfaction, job rewards, and work orientations (e.g..

    work values and work centrality). The researchersthen compared the responses of the Vietnameseemployees with those from similar American andJapanese samples.

    Vietnamese employees generally reported posi-tive work/VCilues. They expressed high levels ofcommitment to^jeir organizations and satisfactionwith their JOTJST OI3er employees were more com-mitted to their organizations and more satisfiedwith their jobs, while employees with more educa-tion had lower commitment and job satisfaction.Like their counterparts in developed countries,Vietnamese employees reported more organiza-tional commitment when they held jobs that weremore complex, required more teamwork, or al-lowed them to receive more training. In addition,those holding jobs with more autonomy felt morecommitted and satisfied. Those who saw work as acentral life interest valued stable work highly andwere more committed to their organizations. Em-ployees who sought more independence or highincome were less satisfied with their jobs.

    Like their counterparts in developedcountries, Vietnamese employeesreported more organizationalcommitment when they held jobs thatwere more complex, required moreteamwork, or allowed them to receivemore training.

    Some differences emerged based on the type oforganization in which employees worked (SOE orprivate) and whether they worked in the north orsouth of Vietnam. While SOE employees were lesssatisfied with their jobs, they were nonetheless ascommitted as their counterparts in private compa-nies. Regarding regional differences, three dimen-sions arose: older workers' attitudes in the southwere much more positive than those in the north;SOE employees in the north had much more neg-ative att i tude^han their counterparts in the south;and w h e n ^ r n i n g s were high, employees in thenorth were more satisfied, while employees in thesouth were more committed.

    The issue of regional differences is one that re-searchers and managers may want to understandbetter, given the differences in how older people ineach area were treated over the last 20 years in

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    Vietnam. The reeducation of those in the southmay have led to a greater sense of commitmentand satisfaction arising out of gratitude for jobstability. In contrast, employees in the north mayhold more negative attitudes because of the eco-nomic restructuring, since most of their jobs havebeen in state-owned firms. With the process ofequitization and reorganization, the amount ofdownsizing and job changing may be more exten-sive in the north, causing more uncertainty andless commitment.

    The researchers also compared their findingsfrom the Vietnamese employees with similar sam-ples of employees in Japan and the U.S. In general,the Vietnamese employees expressed levels of or-ganizational commitment and job satisfaction thatwere quite similar to the Japanese and Americansamples. These findings are particularly interest-ing, since the Vietnamese employees received sig-nificantly lower income from their work. The re-seajdiers suggest the high level of commitment,i i^p i te low wages, held by Vietnamese employeesmay result from the comparison of their work situ-ation with their own previous experiences andthose of their family members and friends. Mostsurveyed employees felt they were better off thanthey had been in the past and held jobs that werebetter than those of their neighbors and familymembers. Also, Vietnamese eniployees appear tobe willing to work harder to support their firms ina newly developing economy than equivalent Jap-anese or American workers.

    It is important to note that the data were gath-ered in 1995, a period when Vietnam had double-digit economic growth and was a popular destina-tion for foreign investment. The end of the 1990s,however, brought the Asian financial crisis to Viet-nam, with rapid withdrawal of investment and de-clining growth. Thus, as the authors concede, it isdifficult to know what employee attitudes wouldbe today, in a time of generally less positive eco-nomic outlook. On the other hand, the signing ofthe U.S.-Viptecim Trade Agreement in July 2000may signol ov^evitalization of the economy andmore opporWliti&s for employees and employers.

    Hung, Appold, and Kalleberg's overall findingsand testing of assumptions developed in industri-alized countries should give support to managersboth local and foreignseeking to use that tal-ented work force.

    Source: Hung, L. N., Appold, S. J., & Kalleberg, A. L., 1999. Workattitudes in Vietnam: Organizational commitment and job sat-isfaction in a restructuring economy. Journal of Asian Business.15(3): 41-68.

    Can we all get along? Theinterpersonal challenge at work

    Clive Muir. Morgan State University

    How many of us sometimes forget to say please orthank you to our coworkers? Do we screen our callsusing voice mail? Are we guilty of hovering impa-tiently over the desk of a coworker who is on thephone? Do we loudly discuss personal issues onthe phone when others are nearby?

    Researchers Lynne Andersson, of Temple Uni-vejsity, and Christine Pearson, of the University of/North Carolina, suggest that acting rudely orshowing disregard for others contributes to an in-creasing incivility in the workplace. Anderssonand Pearson's analysis of workplace incivility in-dicates there is more to interpersonal interactionin the American workplace than the positive imageof water-cooler conversations, lunchroom camara-derie, or after-work happy hours. Rather, we arealso likely to find a range of discordant behaviorsexhibited by employees toward their coworkersand by managers toward their subordinates. Thesebehaviors may be overtly aggressive and violent,or subtle and unthreatening.

    There are several reasons for this trend towardHiicivility. For one, there is greater diversity among

    employees; more than ever before, men andwomen and people of different cultural back-grounds are sharing space and interactingthroughout the workday. It is likely that misunder-standings will surface and feelings will be hurt.Add to the mix the greater reliance on temporaryworkers, who may not share the ethos of a pa:ular company and don't care to impress theirworkers.

    Moreover, companies have continued to cut op-erating budgets and have reengineered theirduction and service processes. The resulting 1offs have rubbed many workers the wrongand even those who stay may not feel committed totheir joj>s or do not wish to bond with their cowork-ers. ^ addition, the layers of supervision haveflattened; workers and their managers may be onsuch familiar terms that hierarchical relationshipshave lost much of the respect they have tradition-ally demanded. Finally, the globalization ofbusiness makes the average worker seem less im-portant in the larger scheme of things. Communi-cation has become more impersonal and asynchro-nous, and small courtesies are often overlooked inbusiness correspondence.

    Given the greater attention paid to more violent /acts at work, we may not have noticed or carecy