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Introduction
The success of an enterprise is said to hinge on many factors varying from internal to
external. Ulrich (1998) espoused that people are becoming a source of competitive
advantage for most companies, and that the competitive edge of organizations no longer
arises out of their products and services but of their people. Besides, attempts on building
up a motivated workforce to improve productivity are of vital importance to managers of
many companies in recent times. In Vietnam, as many workplace problems still occur
regardless of many research and improvements on the above-mentioned factors,
motivating workers appears to be extreme complexities and never-ending challenges. This
means that, instead of the well-known economic motivators, firms are advisable to seek
alternative strategies to retain their best staffs as well as to obtain the competitive edge
(Ashmos and Duchon, 2000).
Workplace spirituality has come to the forefront in the 1990s (Case and Gosling, 2007),
which has given way to more than 300 books and several academic journals among
management researchers and practitioners (Garcia-Zamor, 2003). Positive spiritual place or
moods of employees could act as a precursor to the enhancement of their performance
(Shaw, 1999; Ayranci, 2011), thereby improving firm’s competitiveness and profitability
Received 26 May 2016
Revised 14 December 2016
(Milliman et al., 2003). As a result, many corporations, such as World Bank, Ford, Nike,
Accepted 24 July 2017 Apple, Aetna and Shell Oil, have embraced and incorporated employee spirituality in their
j j
PAGE 396 SOCIAL RESPONSIBILITY JOURNAL VOL. 14 NO. 2 2018, pp. 396-409, © Emerald Publishing Limited, ISSN 1747-1117 DOI 10.1108/SRJ-05-2016-0086
workplaces (Casey, 2002). In Vietnam, it appears to be an exceptional topic in management
and remains largely unexplored so far. In addition, according to Lichtman (2007), a
significant amount of attention in the past 30 years has been focused on workplace climate
and its effects on employees’ performance. Apparently, workplace climate stems from the
employees’ perceptions, which, along with their understandings, results in their characters,
behaviors and effectiveness at work (Ramazaninezhad et al., 2009). Therefore, this subject
stands for a phenomenon that not only pervades a firm and its parts but also affects an
individual’s job performance. Besides the above two non-monetary determinants of
employee performance, compensation appears to be a systematic approach to supply
monetary values to workers in exchange for work performance. Employees’ perceptions in
terms of their compensation are regarded as foundation of job performance (Ghazanfar
et al., 2011).
I conducted this research due to the following reason. Undeniably, it is true that some
significant studies have been done on these fields (Ashmos and Duchon, 2000; Griffith,
2006; Ghazanfar et al., 2011). However, if we are to argue that such researchers provided
some exploration on these phenomena’s impacts, then it remains a matter of serious
concern that there is no empirical evidence evaluating the effects of the burgeoning fields of
workplace spirituality, climate and compensation on perceived job performance, especially
in Vietnamese context.
Theoretical background
Perceived job performance
As stated by Otley (1999), performances can be classified as firm and employee
performance. In this research, firm performance is beyond the research scope and only
employees’ job performance is considered. According to Hunter (1986), job performance
refers to the ability to have good results and high productivity of the employees themselves.
Similarly, Bjarnadottir and Campbell (2001) considered job performance as an individual-
level variable or something done by a single person. Furthermore, there are numerous
appropriate appraisers for performance, for example, immediate supervisor, committees,
peer-rating and self-rating, which have their own pros and cons. In this research, the
emphasis is put on self-rated job performance, namely “perceived job performance”. The
term is summarized as an aftermath of considerations on employees’ perception and
evaluation on their own behaviors in terms of organizational objectives and tasks. Not only
can perceived job performance be an important determinant contributing to enhance the
organizational outcomes and employees’ behavior and traits, it is also made use of as
human resources management strategies through results from a systematic assessment
process.
Workplace spirituality
Markow and Klenke (2005) stated that although more than 70 definitions of spirituality are
existing, there are no widely accepted one. So complex and diverse a term is spirituality
that it is too idiosyncratic and multifaceted to be conceptualized in a common theme.
Pioneering empirical study of Ashmos and Duchon (2000) proposed spirituality at work as
the awareness that employees experience an inner life nurturing and being nurtured thanks
to meaningful work that occurs in community circumstance. This includes three elements:
the inner life, meaningful work and sense of connection and community, measuring this
concept at individuals’ experience, the work unit and organizational levels.
Giacalone and Jurkiewicz (2003) redefined workplace spirituality as a framework of
corporate values exhibited in the culture that encourages transcendent experience of
individuals through the work procedures, assisting their sense of being associated to others
Workplace climate
Verbeke et al. (1998) claimed that there are 32 different definitions of workplace climate.
Dutton and Dukerich (1991) stated that climate appears to be a more intimate set of
attitudes, values and beliefs that embraces a work unit. Bowen and Ostroff (2004)
conceptualized workplace climate as two types: organizational climate and psychological
climate. Employees could be affected by organizational climate, which is derived from
perceptions of how the enterprise is regarding policies, routines, practices and rewards.
Psychological climate applies to employees in their own specific work contexts, on the basis
of the experiential-based evaluation of what people “see” and notify occurring to them as
they are aware of their environment. According to Burke and Litwin (1992), a psychological
state of workplace climate is a set of employees’ perceptions on the local work unit, the way
it is managed and the interconnectedness of them to others. According to previous
research, it is suggested that climate has positive impacts on performance regardless of
various dimensions of climate across studies. Burke and Litwin (1992) regarded workplace
climate as one of the transactional determinants that has a profound impact on motivation
and, in turn, affects job performance. Likewise, Griffith (2006) concluded that warm and
supportive climate enhances job performance at the organizational level. As stated by
Lichtman (2007), many studies by a plethora of scholars were indicative that workplace
climate not only correlates to but also has a crucial part to play on job performance.
Compensation
Studies on compensation have gain interests among researchers in the past two decades.
Compensation is “all forms of financial returns and tangible services and benefits
employees receive as part of an employment relationship” (Milkovich and Newman, 2002).
In addition, according to Christofferson and King (2006), compensation could be defined as
“a pay provided by an employer to an employee for services rendered (i.e. time, effort and
skill)”. Numerous researchers and practitioners have figured out the significance of
compensation in improving employees’ performance. Similarly, Huselid (1995) noted that
one standard deviation increase in employee performance is equivalent to approximately
40 per cent of an employee’s compensation. Undoubtedly, an effective compensation
system could fortify staffs to work harder with a view to enhancing productivity and job
performance (Lai, 2011). Once employees are satisfied with a good compensation offered,
their motivation is on an upsurge at a higher degree, followed by a betterment of their work
performance. Generally, there exists a significant relationship between compensation and
performance (Herzberg, 1968). Therefore:
H6. The better the compensation is, the higher job performance is perceived.
Measurements
To measure workplace spirituality, this research applied The Spirit at Work Scale (SAWS)
(18 items, a = 0.93) by Kinjerski and Skrypnek (2006a). In addition, a short version
Organizational Climate Scale (CLIOR) (a = 0.94) with 15 items developed by Elsa et al.
(2013) was utilized to measure workplace climate. Compensation management practices
with six items (a = 0.82) developed by Tessema and Soeters (2006) was chosen to
measure compensation. Besides, perceived job performance was measured by ten
Performance evaluation items by Wright et al. (1995) (a = 0.90).
Preliminary research
Raw questionnaires with 49 items in both English and Vietnamese was used in a semi-
structured interview with ten employees in the sample site to examine the
appropriateness. According to their ideas and feedback, there are some changes in
the variables in the measurement scales. Some items were added (“I have
inexpressible experience at work” in mystical experience and “I and my partners work
together to resolve conflicts in a positive way” in sense of community) based on the
respondents’ observations and experience at work. Besides, some items were
perceived to be eliminated because of incomprehensibility of the meanings, no
connection with workplace environment, overlaps of existing variables in other scales.
They are “I am fulfilling my calling through my work”, “At times, I experience a “high” at
Scale analysis
After the first round of scale reliability assessment, one item in the workplace climate
scale – “Socially, my work has the prestige it deserves.” with Corrected Item-Total
Correlation <0.3 was perceived rather extraneous in relation to working climate at the
hospital. Besides, after factor analysis of the five independent variables, namely
engaging work, mystical experience, sense of community, workplace climate and
compensation; one item called “When I do something well, my superiors congratulate
me.” was left alone in one component, whose meaning could hardly reflect a concept.
Therefore, my decision was to eliminate it from further analysis. Besides, one item in the
workplace climate scale – “The relationships with my bosses are good” was relocated
to sense of community scale. Overall, after applying semi-structured interview and
initial tests such as Scale Reliability Assessment and Exploratory Factor Analysis, five
items were removed from the scales. The scale reliability was also recalculated. See
Table I for a summary.
Correlation analysis
As can be seen from Table II, the dependent variable PJP has highly significant correlations
with the five independent variables EW, ME, SoC, WC and CO via the correlation
coefficients of 0.624, 0.565, 0.604, 0.661 and 0.536, respectively. In addition, the correlation
coefficients between each pair of independent variables varies from 0.358 to 0.638, staying
away from the level of a multicollinearity circumstances (0.70). However, some correlations
such as SoC with EW (r = 0.638), and SoC with ME (r = 0.620) should be carefully
considered in the regression analysis.
Regression analysis
The Adjusted R2 of 0.634 indicates that 63.4 per cent of the variance in perceived job
performance can be predicted from compensation, workplace climate, sense of
community, engaging work and mystical experience combined, which proves to be a
respectable result. The model has the significant of 0.000 (p < 0.05), so it can be
concluded that this research model has fulfilled statistical significance. Looking at Beta
values in Standardized Coefficients, WC stands out from the group by having the largest
beta coefficient of 0.367, followed by 0.233 of CO, 0.210 of EW, 0.189 of SoC and 0.053 of
ME. As regards the Sig., EW, SoC, WC and CO have significant values less than 0.05
(0.000, 0.002, 0.000 and 0.000). However, ME’s Sig. of 0.36 (> 0.05) implies that it does not
make a significant unique contribution to the prediction of PJP. Besides, although SoC has
the VIF value of 2.076 (>2.0), making it under the multicollinearity circumstance; SoC was
1. PJP 1
2. EW 0.624** 1
3. ME 0.565** 0.552** 1
4. SoC 0.604** 0.638** 0.620** 1
5. WC 0.661** 0.485** 0.505** 0.429** 1
6. CO 0.536** 0.366** 0.400** 0.386** 0.358** 1
Notes: **Indicates that correlation is significant at the 0.01 level (two-tailed), PJP: perceived job
performance, EW: engaging work, ME: mystical experience, SoC: sense of community, WC:
workplace climate and CO: compensation
still considered as acceptable because this value is not larger than the cut-off point to such
a great extent.
Results
Hypothesis testing
H1 suggests a strong and significant, positive relationship between engaging work and
perceived job performance (r = 0.624, b = 0.210). H2 was rejected since it implies that
there is no positive relationship between mystical experience and perceived job
performance (sig. = 0.364 > 0.05). H3 proves a strong and significant, positive relationship
between sense of community and perceived job performance (r = 0.604, b = 0.189). H4
proposes a strong and significant, positive relationship between workplace climate and
perceived job performance (r = 0.661, b = 0.367). H5 makes it clear that there is a strong
and significant, positive relationship between compensation and perceived job
performance (r = 0.536, b = 0.233).
Workplace spirituality
0.209
Sense of community Perceived job performance
0.379
Workplace climate 0.239
Compensation
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