Luận Văn Impacts Of Human Resource Practices On Organizational Engagement And Turnover Intention

MINISTRY OF EDUCATION AND TRAINNING
UNIVERSITY OF ECONOMICS HCM CITY
------ ------
TRƯƠNG QUỐC CƯỜNG
IMPACTS OF HUMAN RESOURCE PRACTICES ON ORGANIZATIONAL
ENGAGEMENT AND TURNOVER INTENTION:CASE OF BUSINESS EMPLOYEES
IN HO CHI MINH CITY
Tham khảo thêm tài liệu tại Baocaothuctap.net
Dịch Vụ Hỗ Trợ Viết Thuê Tiểu Luận,Báo Cáo
Khoá Luận, Luận Văn
ZALO/TELEGRAM HỖ TRỢ 0973.287.149
MASTER OF BUSINESS
ADMINISTRATION THESIS
Ho Chi Minh City – 2022

MINISTRY OF EDUCATION AND TRAINNING
UNIVERSITY OF ECONOMICS HCM CITY
------ ------
TRƯƠNG QUỐC CƯỜNG
IMPACTS OF HUMAN RESOURCE
PRACTICES ON ORGANIZATIONAL
ENGAGEMENTAND TURNOVERINTENTION:
CASE OF BUSINESS EMPLOYEES
IN HO CHI MINH CITY
Major: Business administration (research)
Code: 8340101
MASTER OF BUSINESS
ADMINISTRATION THESIS
SUPERVISOR: Assoc.Prof. Dr. TRẦN THỊ KIM DUNG
Ho Chi Minh City - 2022

ACKNOWLEDGEMENT
I would like to express my deepest gratitude and appreciation to my research
supervisor, Assoc. Prof. Dr. Trần Kim Dung for her valuable ideas, guidance,
suggestions and supports for this thesis.
I would like to thanks all lectures of the MBA class who gave us all
knowledge, guidance during the course. And it was a memory time during the
course studying with MBA class member, together we faced and overcame all
difficulties and finished the course. And I also would like to thanks all my friends
and my colleagues who helped me during conducting survey and data analysis.
Finally, I am grateful to my family for caring, encouraging and supporting
me during my studying till now.
Ho Chi Minh City, March 7th 2019
Truong Quoc Cuong

COMMITMENT
I hereby declare that the thesis with title “Impacts of HR practices on
organizational engagement and turnover intention, case of employees in Hochiminh
City” is my study that was adviced by Assoc. Prof. Dr. Tran Kim Dung.
All information in this thesis has been obtained and presented in concordance
with academic rules and ethical conduct.
I am fully charged of responsibility for all content of this research.
Hochiminh city, March 07th 2019
Truong Quoc Cuong

TABBLE OF CONTENT
COMMITMENT
LIST OF ABBREVIATION
LIST OF TABLES
LIST OF FIGURES
ABSTRACT
CHAPTER 1: INTRODUCTION ....................................................................................1
1.1. Research background ..........................................................................................1
1.2. Objectives for study.............................................................................................5
1.3. Research scope and approach.............................................................................5
1.4. Research methodology........................................................................................5
1.5. Theoretical and practical significance of study................................................6
1.6. Structure for this study ........................................................................................7
CHAPTER 2: LITERATURE REVIEW AND RESEARCH MODEL......................9
2.1. Concepts definition and concepts measurement ...............................................9
2.1.1. Organizational engagement...........................................................................9
2.1.2. Human resource practices (HR practices).................................................15
2.1.3. Turnover and Turnover intention ...............................................................21
2.2. Relevant researches and relationship of concepts...........................................25
2.2.1. Relevant researches......................................................................................25
2.2.2. The effects of HR practices on turnover intention ...................................27
2.2.3. HR practices and engagement.....................................................................28
2.2.4. Organizational engagement and turnover intention .................................31
2.2.5. Mediating role of organizational engagement ..........................................32

2.3. Hypotheses and research model........................................................................33
CHAPTER 3: RESEARCH METHODOLOGY..........................................................35
3.1. Method of research .............................................................................................35
3.2. Research design and process.............................................................................35
3.3. Qualitative research ............................................................................................38
3.5. Method of data analysis .....................................................................................46
CHAPTER 4: RESULT OF DATA ANALYSIS.........................................................53
4.1. Descriptive data analysis....................................................................................53
4.2. Normal distribution examining .........................................................................54
4.3. Reliability of measurement scales ....................................................................54
4.4. Explore Factors Analysis...................................................................................55
4.5. Confirmatory Factor Analysis (CFA)...............................................................57
4.6. Checking hypothesis and research model........................................................66
CHAPTER 5: CONCLUSIONS AND IMPLICATIONS...........................................71
5.1. Research conclusions .........................................................................................71
5.2. Research contributions .......................................................................................73
5.3. Managerial implications.....................................................................................74
5.4. Limitations and recommendations for further research .................................74
REFERENCES
APPENDIX

LIST OF ABBREVIATION
Abbreviation Full word
AVE Average variance extracted
CM Career management
CFA Confirmatory Factor Analysis
CFI Comparative Fit Index
Chi-sq, �2 Chi-square
CP Compensation
CR Construct reliability
df Degree of freedom
EFA Exploratory Factor Analysis
EE Employee engagement
GFI Goodness -of Fit Index
HR Human resource
KMO Kaiser - Meyer - Olkin
RMSEA Root Mean Square Error Approximation
SE Selection
SEM Structural Equation Model
Sig. (p) Significance of Testing (p-value)
SET Social exchange theory
TLI Tucker and Lewis Index
TI Turnover intention

LIST OF TABLES
Table 2- 1: Summary researchers about engagement................................................. 12
Table 2- 2: Components of HR practices .................................................................... 18
Table 3- 1: PA scale....................................................................................................... 40
Table 3- 2: CD scale....................................................................................................... 41
Table 3- 3: SE scale ....................................................................................................... 42
Table 3- 4: CP scale....................................................................................................... 43
Table 3- 5: OE scale....................................................................................................... 44
Table 3- 6: TI scale ........................................................................................................ 44
Table 3- 7: Sample size.................................................................................................. 45
Table 3- 8: Fit index of CFA......................................................................................... 50
Table 3- 9: Formula of CR, AVE.................................................................................. 51
Table 4- 1: Description of sample ................................................................................ 54
Table 4- 2: Summarized Cronbach Alpha test for all variables................................ 55
Table 4- 3: EFA result with 4 factors .......................................................................... 56
Table 4- 4: Discriminant validity and construct reliability of HR practices scale. 58
Table 4- 5: Construct reliability of pooled model...................................................... 62
Table 4- 6: Unidimensionalityality of the pooled model........................................... 62
Table 4- 7: Discriminant validity of pooled model.................................................... 63
Table 4- 8: The relationship of all concepts................................................................ 67
Table 4- 9: The total effect of HR practices on turnover intention.......................... 68
Table 4- 10: Comparing effect of HR practices on TI, OE ....................................... 70

LIST OF FIGURES
Figure 2- 1: Research model of Juhdi et al (2013) .................................................... 25
Figure 2- 2: Research model of Chughtai (2013) ...................................................... 26
Figure 2- 3: Proposed research model ......................................................................... 34
Figure 3- 1: research process........................................................................................ 37
Figure 4- 1: The CFA construct model of HR practices ........................................... 59
Figure 4- 2: The CFA of pooled measurement model ............................................... 65
Figure 4- 3: the analysis result of research model...................................................... 66

ABSTRACT
The purpose of this study is examining the relationship of HR practices
(Selection, performance appraisal, compensation and career management) with
Organizational engagement (OE) and Turnover intention (TI). Basing on previous
research frameworks, the study still tests the negative impact of both HR practices
and OE on TI. And tests positive impact of HR practices to OE and the mediating
role of OE in relationship of HR practices and TI.
The survey was conducted with total 405 employees who are working as
staff in various sectors in Ho Chi Minh City and studying at UEH. The data was
collected by mainly face to face survey; then it was analyzed using SPSS and
AMOS software. The results were found that: all the adjusted, developed variables
scales used to measure HR practices, OE and TI met the criteria of liability and
fitness validity; HR practices with 4 componentes had significant effect on OE and
TI. PA had strongest effect on OE (β=0.334) while SE had weakest effect on OE
(β=0.083). Each component of HR practices had its own effect on TI. SE had
strongest negative effect on TI (β=-0.454) and CM had weakest negative effect on
TI (β=-0.017). OE had important role to predict TI (β=-0.424). The result proved
that OE played mediator in relationship between HR practices and TI.
The study also discussed and proposed about contributions, limitations and
managerial implications.
Key words: HR practices, Organizational engagement, Turnover intention,
employees.

TÓM TẮT
Mục đích của bài nghiên cứu này nhằm khảo sát sự mối quan hệ của thực tiễn
nguồn nhân lực (HR practices) (4 thành phần là tuyển chọn (SE), đánh giá thành
tích (PA), phát triển nghề nghiệp (CM) và trả công lao động (CP)) với gắn kết tổ
chức (OE) và ý định nghỉ việc (TI) của nhân viên văn phòng. Dựa vào các nghiên
cứu trước đây, bài nghiên cứu này sẽ khảo sát sự tác động âm của thực tiễn nguồn
nhân lực cùng gắn kết tổ chức đến ý định nghỉ việc. Đồng thời bài nghiên cứu cũng
kiểm tra tác động dương của thực tiễn nguồn nhân lực đến gắn kết tổ chức; và kiểm
tra sự tác động của thực tiễn nguồn nhân lực đến ý định nghỉ việc qua trung gian là
gắn kết tổ chức.
Bài nghiên cứu được thực hiện bằng phương pháp chọn mẫu thuận tiện thông
qua chủ yếu khảo sát trực tiếp 405 đáp viên là nhân viên văn phòng thuộc nhiều lĩnh
vực trong thành phố Hồ Chí Minh và đang học tại UEH. Dữ liệu được phân tích
bằng phần mềm SPSS và AMOS. Kết quả cho thấy tất cả các thang đo đều đáp ứng
các tiêu chuẩn giá trị và độ tin cậy cho phân tích. 4 thành phần của HR practices có
tác động lên OE và TI. Trong đó, PA (β=0.334) tác động mạnh nhất và SE
(β=0.083) tác động yếu nhất lên OE. Và SE tác động mạnh nhất (β=-0.454) và CM
tác động yếu nhất (β=-0.017) lên TI. OE tác động mạnh đến TI (β=-0.424). Kết quả
cũng minh chứng vai trò trung gian của OE.
Bài nghiên cứu cũng đưa ra thảo luận kết quả và đưa ra những đánh giá về
đóng góp, giới hạn của nghiên cứu và những hàm ý quản trị.
Key words: HR practices, Organizational engagement, Turnover intention,
employees.

1
CHAPTER 1: INTRODUCTION
1.1. Research background
Human capital is one of the hottest topics in Vietnam and gets more attention
in context that we want to keep up with the fourth industrial revolution or called
new economic 4.0. Quality and productive labor is the most important to get
development and attraction investment. Furthermore, human resource is a part of
companies’s strategy to get competitive advantage and effectieness. Its role is
explained by the resource based view theory (RBV) (Armstrong and Taylor, 2014,
p7). RBV states that competitive advantage can be achieved if a firm’s resource is
valuable, rare and costly to imitate. And human resource becomes significance
because it can meet these criteria due to its distinctiveness (Chughtai, 2013). The
organizations always make them efforts to find, develop and retain valuable
workforce who are talent and skilled employees that are precious resources to afford
competitive advantages. Talent staff retainment has become more important than it
used to be, and it became among most concerns of organization strategies about
competitive advantages and organizational effectiveness with the best resources
(Juhdi et al, 2013).
However, organizations have suffered the problems that they loss their well-
developed employees leaving for other organizations, especially their competitors.
Losing talent employees will lead to reduce in quality, productivity and
effectiveness of each department or all organization that affect to organization’s
competitive advantage. So, huge investment in training and developing human
resource would be in vain if the employees leave and bring along their skills and
experience for other organizations. To counter this problem, employers are trying
coming up organizational talent management programs and retaining employees by
dealing with how to engage trained and highly experienced employees and reduce
employee turnover. The broad range of employee turnover studies (Ma et al, 2016;

2
Long and Perumal, 2014; Kim et al, 2014; Juhdi et al, 2013…) have shown that
turnover is considered as the most popular researched phenomena in organizational
behavior and indicated the significance and complexity of the issue impacting by its
all dimensions (psychological, organizational significance and economic). They
indicate that there are many major variables that impact on the turnover of
employees and use turnover intention as an important predict for actual behavior of
turnover. Moreover, employee engagement is considered as a significant factors
impacting to reduce turnover intention of employees. By making employee more
engaged to organization, employers can be not only continue to get effectiveness of
developing employees programs but also to get the results of retaining skilled and
experienced staffs. So, the concerns of organization are paid more attention into
increasing engagement level of employee.
It is to say that HRM system is considered as play significant role to
increasing engagemenet level and decreasing turnover intention of emplyees.
Human resource management are the policies and procedure involving HRM
aspects of management regarding, planning, recruitment, selection, training and
management, performance appraisal and labor relations (Dessler, 2006, cited from
Armstrong and Ttaylor, 2014). Some researchers (Juhdi et al, 2013; Chughtai, 2013)
suggested that HR practices should consider as good antecedents of employee
engagement and turnover intention. HR practices are more important because they
exist and effect on daily operatations of organization in shaping employee’s
attitude, cognition and behavior. The HR practices concept is not a new one. In 5-P
model of Schuler (1992), there are 5P in strategy HRM and HR practices include
activities that carry out in implement HR policies and programs. Armstrong and
Ttaylor (2014; p9) stated that HRM can be seen in a system that incorporated with:
HR strategies, HR policies and HR practices-“which consist of the HRM activities
involved in managing and developing people and in managing the employment
relationship”. HR practices can help organizations enhance their performance,
decrease absenteeism and turnover. Researchers explain HR practices role that it

3
could impact on employee perception that the creation of a safety climate,
motivation, meaningfulness, emotion... According to Robbins and Judge (2010),
human resource (HR) practices are one of the factors in the organization that could
shape and determine employee responses at work. HR practices can help for
explaining how these practices influence employee engagement and turnover
intention.
So, examining the relationship of HR practices with employee engagement
and turnover intention is necessary. By searching on Proquest, EBSCO for studies
about three concepts relationship, author just found out some results.
Results of searching on Proquest, EBSCO:
Source: author searching
After searching Proquest, EBSCO from Library of University of Economics of
Ho Chi Minh City, there is no any title research about impacts HR practices on
organizational engagement, turnover intention in Ho Chi Minh City. So, this
research is necessary for study.
Key words for searching Proquest EBSCO
Studies with abstract of:
 Human resource practices
 Turnover intention
105 results 498 results
Studies with abstract of:
 Engagement
227 results 1,217 results
Studies with abstract:
 Human resource practices
 Organizational engagement
8 results 27 results
The relationship of HR practices,
organizational engagement, turnover
intention
1 result 1 result

4
From various researches, HR practices have been called with different labels
and components. But the basic components of HR practices which are applied in
almost organizations will always be career management, performance appraisal,
selection and recruitment, compensation and benefit management; and these
components are easy to strongly effect on individuals, enhancing engagement and
dereasing turnover intention (Juhdi et al, 2013). So, this study prefers to use basic
function of HR practices (selection, career management, compensation and
performance appraisal) in choosing the factors in the independent variable that
hoping they will well explain to dependent variables (engagement and turnoer
intention)
But employee engagement is multidimension concept. Employee engagement
is not a new concept but it is to say that engagement is also a term that is got more
attention and researches. There are many studies research about it with mixing the
meaning, dimension and facet approach. Engagement can be easy to misunderstand
by many divided concepts into engagement, work engagement, job engagement and
organizational engagement. But these are different because of dimensions of
engagement that researchers want to study employee engagement in specific
aspects. In general, these are engagement of employee and there are 4 approaches of
engagement as Saks and Gruman (2014), Shuck et al (2011) argued that they are
need-satisfying, burnout-antithesis engagement, satisfaction and mixed engagement
approach. As Saks (2008) stated about mixed engagement approach that its
components (job engagement and organizational engagement) would explain better
than other approachs. However, Saks (2006) studied about engagement’s
antecedents, HR practices weren’t addressed. As Juhdi et al (2013) agreed with
Saks (2006) about mixed engagement approach, but just organizational engagement
is used as onsequence of HR practices. And Juhdi et al (20013) suggested and
proven that HR practices have strong effect on organizational engagement.
As some studies use engagement to explain the relationship of HR practices
and turnover intention (Juhdi et al, 2013; Chughtai, 2013…) and the results

5
supported very clearly about the mediator of employee engagement. As Saks (2006)
suggest that using employee engagement with social exchange theory could help
clearly explaining the relationship of engagement with its antecedents and
consequences. So, this study also hope that using the engagement with Saks (2006)
measurement scales as a mediator will have supportive results for the impact of HR
practices on turnover intention.
From above premises, this study suggests the title research is that: “Impacts of
HR practices on organizational engagement and turnover intention, case of business
employees in HCM City”.
1.2. Objectives for study
This study aims to three goals, they are:
Firstly, it is checking the impact of HR practices to turnover intention;
Secondly, it is examining the relationship of HR practices and organizational
engagement;
Thirdly, it is testing the effect of organization engagement on turnover
intention;
Lastly, the thesis is checking the mediator role of organizational engagement
in relationship of HR practices and turnover intention.
1.3. Research scope and approach
As mention in the beginning, this research aims to explain clearly the situation
of the skilled and talent employees leaving their organization for others. So, we
choose business employees who have university degree in various business fields to
investigate. The research samples are working for companies as office staff with
more than 6 months experience in their position. They have age over 22 years old
and they are studying for second university degree, evening course university
degree and master degree.

6
This study chooses Ho Chi Minh City because it is the biggest city in Vietnam
and has immense skilled labor.
By limit of resource and time, we just use convenient choosing sample method
by using data form attenders in University of Economic in HCM City for second
degree and master degree who are working for organization as officer.
1.4. Research methodology
This study uses both 2 method of research: qualitative research and
quantitative research.
Qualitative research is conducted with 10 employees working as staff in arious
companies in order to explore, adjust and develop measurement scale of research
concepts.
Quantitative research is implimentated with questionnaire with the sample size
is 450 respondents working as employees in office departments of various
companies in HCM city. Convinience method is used. To testing measurement scale
and theorical model, data is analyzed with EFA, CFA ans SEM. This study uses
SPSS 23 and Amos 20 to analyze data.
1.5. Theoretical and practical significance of study
About theoretical aspect, this study will examine the relationship of HR
practices, organizational engagement and turnover intention of employee in context
of Hochiminh City, Vietnam. This study also provides adjusted and developed
measurement scales of concepts (HR practices, organizational, turnover intention)
to use for employees.
About practical aspect, this study will provide more information about the
relationship of HR practices, organizational engagement and turnover intention of
employee. Basing on model research, it can help organizational managers out of
high turnover rate by using the mechanism of HR practices. Employers should pay

7
attention to improve factors of HR practices in order to enhance organizational
engagement and reduce turnover intention of employees.
1.6. Structure for this study
This study contains 5 chapters, including of: introduction, literature review,
research methodology, data analysis and conclusion. Specifically:
Chapter 1: Introduction
This chapter introduces about the essence of this study in practice and theory,
the main achieving goals of this study: Examing impacts of human resource
practices on organizational engagement and turnover intention, case of employees
in HCM city.
Chapter 2: Literature review and research model
In this chapter, author explains all theoretical concepts in this study, they are:
HR practices and its components, organizational engagement and its measurement,
turnover intention; then explaining theory used in this study and proving the
relationship of these variables. Finally, theoretical hypotheses and research model
are discussed.
Chapter 3: Research methodology
This chapter describes the method to conduct the study including the
research design, measurement scale building and process of research survey. The
method to analyze collected data and standard analysis are also presented in this
chapter.
Chapter 4: Results and data analysis
In this chapter, all collected data are analyzed by using SPSS, Amos software
to examine all hypotheses and the research model. Depending on analysis results,
the relationship of all factors as mentioned in this research will be examined.
Chapter 5: Discussion, limitation and implementation

8
In this chapter, author will summary results and give practical meanings and
advices for implement as well as theoretical attributions and limits of research and
suggestions for future research.

9
CHAPTER 2: LITERATURE REVIEW AND RESEARCH MODEL
Chapter 2 consists of 4 sections. The first section presents all theoretical
concepts including of organizational engagement, human resource practices,
turnover intention and their role and measurement. The next section presents
relevant researches and theoretical concepts relationship. The last one suggests
hypotheses and research model.
2.1. Concepts definition and concepts measurement
2.1.1. Organizational engagement
2.1.1.1. Concept of organizational engagement (OE)
 Employee engagement
Employee engagement is a concept that has gained popularity for a long
period in both academic researchers and practitioners (Malash and Jackson, 1997;
Schaufeli and Bakker, 2004; May, Gilson and Harter, 2004; Saks, 2006; Macey and
Schneider, 2008; Shuck and Wollard, 2010; Chughtai, 2013; Juhdi, 2013…).
Especially in today, employee engagement is a top topic in human resource
management and it is considered with associating with positive and desirable
outcomes in organization. But with its important role, employee engagement is a
widely understood and implemented as well as various approaches and dimensions,
but there are 4 main approaches that researchers paid most attention, they are: need-
satifying, burnout-antithesis, satisfaction and mixed approach (Saks and Gruman,
2014)
The first approach is need-satisfying engagement. This concept of engagement
was first time mentioned by Kahn (Armstrong and Ttaylor, 2014). In his researches,
engagement of employees was defined that
“The harnessing of organization members’ selves to their work roles; in
engagement, people employ and express themselves physically, cognitively, and

10
emotionally during role performances”. (Kahn, 1990, as cited from Saks and
Gruman, 2014, 157p)
And engaged employees mean that they themselves bring and display all their
aspects and their full-self to the performance of their roles. In this definition,
employee engagement was defined in the relationship between individual of
employee and his/her roles and tasks in order to focus on performance. As Rich et al
(2010) argued about engagement definition of Kahn (1990) that what engagement
prefers to one-self in role that involves employees invest individually to complete
and get the full self into their role performance. We could consider definition of
Kahn (1990) above as the first approach of engagement what is about psychological
and cognitive dimension or need-satisfying approach (Shuck, 2010). In that,
engagement is a multidimensional construct where employees can be psychological
safety, psychologically available (or availability) and cognitively psychological
engaged (or meaningfulness).
The second one is about burnout- antithesis approach. And there are various
researches (Maslach and Jackson, 1997; Maslach et al, 2001, Macey and Schneider,
2008; Schaufeli and Bakker, 2004…) argued and defined about engagement as a big
engagement approach or called as emotional dimension.
Maslach and Jackson (1997) argued that engagement is relative to energetic,
involvement and efficacy in their job. And based on the literature on burnout,
Maslach et al (2001) defined engagement by opposite of burnout. As Maslach and
Leiter (2008, 498p) defined engaged employees that is:
“An energetic state of involvement with personally fulfilling activities that
enhance one’s sense of professional efficacy”
Engaged employees will feel emotional, involved and energetic to have ability
to finish their task .Scholars study about the engagement such as Gilson and Harter
(2004), Macey and Schneider (2008), also debate that employee engaged in their
task will have a higher level of energy, enthusiasm with their work and loyalty to
their job from day to day. Schaufeli and Bakker (2004) also had definition about
engagement. It’s the psychological status which is relative with work positively and

11
satisfactorily. It has characteristics with three levels: vigor, dedication and
absorption. They explained that vigor (the opposite pole of exhaustion) is a level of
high energetic status, ready for efforts in their task consistently, stably to face
difficult. Dedication (the opposite pole of cynicism) is higher level than vigor. It
present the closed relationship between private task and important emotion and
enthusiasm, feeling deserved for their position and motivation. And the highest
level is about absorption. It shows that the completely satisfaction on their work,
present their concentration to task, spare time, cognate and enjoy their feeling with
their tasks and detaching themselves from work. Robinson et al. (2004) define
engagement as “a positive attitude held by the employee towards the organization
and its values” and state that “an engaged employee is aware of business context,
and works with colleagues to improve performance within the job for the benefit of
the organization”
The third approach, it is about behavioral dimension (or the physical
manifestation of engagement), and Shuck (2011) called this perspective is
satisfaction- engagement approach. In this approach, Harter et al (2002) defined
employees engagement was as their involvement and satisfaction with their job.
Engagement of employee is the tangible, overt manifestation of cognitive and
emotional engagement (Shuck et al, 2011). For many researches, behavioral or
physical engagement (Rich et al., 2010) is understood as the intention of increased
levels of actual performance.
In this approach, a model was proposed that Job demands- resources (JD-R
model) and they are involved to engagement of employees (Saks, 2008). Job
demands is relevant all physical, psychological, social, or organizational
requirement of a job and job resource is about physical, psychological, social, or
organizational function of a job in order to help them get the goals. When job
demands require low and employees are supplied enough necessary job resources to
have good performance as their roles and tasks, they will become more engaged
employees.

12
And the fourth and last approach is mixed three approaches for a new
component. Saks (2006) was considered as the first fully establishing this
perspective. This definition was inclusive of previous literature suggesting that
employee engagement was developed from cognitive, emotional, and behavioral
factors; one is left wondering which of the three should be measured and be focused
of future research (Saks, 2006). It was developed from cognitive element (Kahn,
1990), emotional element with their energy to contribute to organization
performance (Maslach et al, 2001; Schaufeli and Bakker, 2004; Robinson et al,
2004…) and from behavioral component (Rich et al, 2010; Harter et al, 2002…).
Shuck and Wollard (2010) recently defined the term employee engagementas
“an individual employee’s cognitive, emotional, and behavioral state directed
toward desired organizational outcomes”.
Table 2- 1: Summary researchers about EE
No. Researchers Cognitive
approach
Emotional
approach
Behavior
approach
Mixed
approach
1 Kahn (1990) x
2 May, Gilson and Harter
(2004)
x
3 Shuck et al (2011) x
4 Maslach and Jackson (1997) x
5 Maslach et al (2001) x
6 Schaufeli and Bakker
(2004)
x
7 Macey and Schneider
(2008)
x x
8 Robinson et el (2004) x
9 Harter et el (2002) x
10 Shuck (2011) x x x x
11 Rich et al (2010) x
12 Saks (2006), Saks (2008) x
13 Saks and Gruman (2014) x x x x
14 Shuck and Wolland (2010) x
(Source: Author summarizes)
 Organizational engagement

13
This study agrees with the definition of Saks (2006) that employee
engagement is a multi-dimension concept. It is consider with vary roles of employee
and 2 components are concerned that job engagement and organization engagement.
As Saks (2006) defined that engagement shouldn’t consider as an one’s work
situation what encompassing aspects of one’s tasks, work/job, and organization, that
means they don’t engage not only their in-role at work but also outside at work.
Engagement is likely to change from role to role, so mentioning about engagement
should vary his/her roles that they are related organization (Saks, 2008).
In Saks (2006, 604p), he definited about organizational engagement that:
Organizational engagement reflects the extent to which an individual is
psychologically present as a member of an organization.
As Juhdi et al (2013) argued about organizational engagement that it is a
desire to become as a member of organization and willing to conform organization
values and norms. They also make their effort for organization to get good
performance.
And Juhdi et al (2013) suggested that HR practices have strong influence to
organizational engagement. Organizational engagement is an important outcome of
HR practices.
2.1.1.2. The important role oforganizational engagement
These are various studies confirming that organizational engagement play an
important in organization. Scholars (Saks, 2006; Albretch et al, 2015; Rich et al,
2010; Juhdi, 2013; Chughtai, 2014…) have also be proven the relationship between
engagement and important individual and organizational outcomes, eventually,
competitive advantage of organization.
 Engagement with individual outcomes
Engagement is direct link to individual outcomes. Specificly, employee
engagement impact to his/her outcomes throught effect on employee’s attitudes,
intentions, cognitive and behaviors, for instance, job and organization engagement

14
are significantly positively effect to job satisfaction, organizational commitment,
and organizational citizenship behavior, and negatively impact to intention to quit
(Saks, 2006). As Rich, Lepine and Crawford (2010) proved that employees with
highly engaged level have a good personal performance and have passion for their
work, feel a deep connection to their company. On the contrary, employees with
lowly engaged level have essentially checked out- putting time or absenteeism and
don’t put energy or attention to their work.
Explaining for individual outcomes, Rich et al (2010) speculated that
engaged employees have more energy including psychological, emotional energy to
invest resources, efforts and behaviors to their role and tasks. So, they have good
performance and effective results.
 Engagement with organizational outcomes
Engaged employees not only get the high individual performance but also
contribute to business outcomes. According to Harter, Schmidt and Hayes (2002)
engagement and business outcomes have positive relationship. These organizations
whose employees had higher engagement level were more productive, more
profitable than other organizations. Rich, Lepine and Crawford (2010) indicated
that the collective value behaviors of engaged employees would create good job
performance, then it would directly and indirectly contribute to the organizational
goals, and business outcomes. Rich et al (2010) have shown that engagement is
associated with individual employee task and extra‐role performance then it
effected to business performance.
2.1.1.3. Measurement of organizational engagement
There are various measurements of engagement, such as Kahn (1990) first
defined the engagement concept, then May, Gilson and Harter (2004) tested the 3
dimensions of need-satisfying engagement approach. Maslach et al (1997)
developed a burnout- antithesis approach of engagement scale, called the Maslach
Burnout Inventory (MBI) or Schaufeli and Bakker (2004) proposed the Utrecht
Work Engagement scale to measure engagement as vigor, dedication and

15
absorption. In satisfaction- engagement approach, Hater, Schmidt and Hayes (2002)
developed a measure scale including 12 items to access perception of employee
about engagement. In this study, researcher uses the employee engagement as Saks
(2006) developed.
The first academic research using the mixed concepts of employee
engagement was Saks (2006). Saks believed employee engagement should use
multi-dimension that is associated with different roles of employee and was the first
to separate employee engagement into 2 types of job engagement and organizational
engagement.
And in study of Juhdi et al (2013), organizational engagement of Saks (2006)
was suggested just as consequence of HR practices.
So, this study use organizational engagement with Saks (2006) measurement
scale with Saks’s explaining and proving the bridge of engagement and its
consequences (as turnover intention) and antecedents (as HR practices) by social
exchange theory.
At the core of the organizational engagement model of Saks (2006) are
measured with 6 items. Organization engagement was measured with 6 items by
Saks (2006) in the way that individual want to repay their organization is through
their level of engagement. Bringing oneself more fully into one’s work roles and
devoting greater amounts of cognitive, emotional, and physical resources as a
member of his/her organization.
2.1.2. Human resource practices (HR practices)
2.1.2.1. Definition of HR practices
HR practices are not a new conception. HR practices come from Human
resources management. HRM as conceived in the 1980s had conceptual framework
consisting of a philosophy underpinned by a number theories (Armstrong and
Ttaylor, 2014, p6). Or Watson (2010, as cited from Armstrong and Ttaylor, 2014,
p5) offered about HRM: “the managerial utilization of the efforts, knowledge,

16
capabilities and committed behaviors which people contribute to coordinated
human enterprises as a part of an employment exchange to carry out work task in a
way which enables the enterprises to continue into the future”.
Schuler (1992) considered HRM system as 5 parts and named them 5-P,
including:
 HR- Philosophies: statements of an organization about how he regards his HR
and treat to HR
 HR- Policies: guidelines for actions, programs and practices
 HR- Programs: shaping the HR policies and consisting efforts, initiates and
management
 HR- Practices: activities carry out in implement HR policies and programs.
Including of resourcing, learning and development, performance and rewards
management, employee relations and administration
 HR- Processes: procedures and methods to apply
And Armstrong and Ttaylor (2014, p36) argued about HRM that can be seen
in a system that start from HR philosophies that comprise overarching values and
guiding principles to adopt in practices by managing people to reality activities. The
HRM system is incorporated: HR strategies, HR policies and HR practices which
comprise all of HRM activities involved in managing and developing people and in
managing the employment relationship.
As Juhdi et al (2013) argued about HR practices that organizations could be
able to achieve their objectives depending on human capital through HRM to
manage and make employees act, behave and think in a way to get the goals. And
HR practices could have significant influences on what kind of employee’s
perception, attitude and behavior that can affect organizational performance.
Briefly, this study considers suggestion about HR practices in research of
Juhdi et al (2013) with its components to implement this research.
2.1.2.2. HR practices and its components

17
Based on the main model of model research of Chugtai (2013) and the model
of Juhdi etal (2014), this thesis inherits the 2 models with combining HR practices,
OE and TI.
However, HR practices have many dimensions. Many studies suggested for
their HR practices with different ways. The dimensions of HR practices used into
researches are different and change. But there was a well known research of
Michigan University of Fombrun et al (1984, cited from Tran Kim Dung et al,
2017) used HR practices with 4 basical components, they are: recruitment and
selection, career management, performance appraisal and compensation with reason
that thery are principle, universal and basical in every organizational.
There are many ways to select component of HR practices and it depends on
purposes of researchers.
As Juhdi et al (2013) suggested in this study, researcher use HR practices with
its elements such as: pay satisfaction, person-job fit, job control, performance
appraisal, career management. All these component items of measurement scale
were adjusted according to the purposes of the research which used to measure the
employee’s perception about HR practices in their organizations.
According to Shah, Abbas and Qureshi (2016), HR practices were selected
with motivation, empowerment and training and tested impact of HR practices
components on turnover intention.
Chughtai (2013) also proposed the HR practices components with 5 basic
components: competency development, pay structure, recognition, empowerment
and work life policies. The impact of HR practices on turnover intention was test
both directly and indirectly with mediating role of employee engagement.
Rees, Mannan & Braik (2007) used HR practices with 3 main dimensions:
training development, pay and benefit, performance appraisal. While Collins ans
Smith (2006) and Chew and Chan (2008) considered HR practices with selection,
compensation and career management.

18
As Saks (2006) suggested about antecedences of employee engagement should
be chosen by casual impact with SET. And in this study, after selecting to use the
HR practices with components that Juhdi et al (2013) proposed and considering the
suggest of Saks (2006), author proposed HR practices with 4 components: selection,
compensation, performance appraisal and career management.
Table 2- 2: Components of HR practices
No.
Researches about HR
practices
Selection
Career
management
Performance
appraisal
Compensa
tion
1 Shah, Abbas and Qureshi
(2016)
x x
2 Juhdi et al (2013) x x x x
3 Chughtai (2013) x x
4 Rees, Mannan and Braik
(2007)
x x x x
5 Collins and Smith (2006) x x x
6 Chew and Chan (2008) x x x
7 Collins and Clark (2003) x x
8 Allen et al (2002) x x
9 Rogg et al (2001) x x x
10 Fombrun et al (1984) x x x x
(Source: author summarizes)
As Tran Kim Dung et al (2017) cited that traditional HRM has 4 basic
components what are studied in famous research of Michigan University of
Fombrun et al (1984, cited from Tran Kim Dung et al, 2017). 4 components, they
are: recruitment and selection, career management, performance appraisal,
compensation that are used in almost studies about HRM.
So, for the ability and time limitation of author, this thesis suggest to use the
4 basical components to use in this studies with the combining measurement scale
and adjusting after qualitative research.
2.1.2.3. Selection definition and measurement
 Selectiondefinition
Recruitment and selection is the process of searching and attracting,
encouraging qualified candidates to apply for job vacancies and through selection

19
techniques and method to select prospective employees (Tran Kim Dung, 2015). As
a part of this process, election is the process of choosing the most suitable persons
out of all applicants, whose qualifications, abilities match with job requirements and
organization. Selection maybe involves test, interview and medical examination of
the candidates. Referrals of candidates are also checked for predicting their
behavior and performance.
But as Juhdi et al (2013) proposed to use selection as a component of HR
practices in his study in order to measure the impact of choosing suitable employees
who feel matching with the job role, fitting with the organization and engagement.
In this study, author agrees and uses the measurement scale of selection as
suggestion of Juhdi et al (2013)
 Measurement of selection
According to Juhdi et al (2013), selection measurement was implemented by
testing the feeling of employees about matching and fitting their job role and their
peers in organization. Selection was measured by person-organization and person-
job fit that was adjusted and developed by Cable and Judge (1996).
2.1.2.4. Career management definition and measurement
 Career management definition
Career management in an organization should be viewed as a very dynamic
process to meet the needs the organization. The organizations encourage employees
to develop their own careers, offer assistance feedback, performance evaluation and
information about career opportunities and promotions (Chen et al, 2004). It is
important to note that career management helps to retain valued employees (Chang
et al, 2007).
As Sturges, Guest and Davey (2000) indicated that there 2 types of career
management such as: organizational career management and career self-
management. Organizational career management is that organization do thing to
develop their staff career by offering training and development opportunities,

20
setting developing programs, and instituting employee development plans. Career
self- management is individuals themselves act to further their own careers. The
result of study presented that organizational career management had positive
contribution to commitment but the other had little.
And author of this research agrees that Juhdi et al (2013) proposed that
organizational career management considered as career management had positive
impact on employee engagement.
 Career management measurement
This study uses the measurement as suggestion of Juhdi et al (2013) by using
the scale of Sturges, Guest and Davey (2000) for organizational career management.
2.1.2.5. Performance appraisal definition and measurement
 Performance appraisal definition
Performance is a formalized process in which we check work monitoring and
it’s considered as a management tool to recover the employee performance and
productivity (Shahzad, Bashir and Ramay, 2008).
Researchers (Tran Kim Dung, 2015; Fombrun et al, 1984) defined that it is a
system to record, fairly evaluate personal performance in order to improve
employee performance through that to achieve firm’s goals.
According to Juhdi et al (2013), performance appraisal should be measured
by perception of employee about the justice of managers (or of organization) in
evaluating performance. As studies (Juhdi, 2013; Paré, Trembley and Lalonde,
2001), this study agree that performance appraisal has positive impact to
engagement.
 Performance appraisal measurement
This study bases on the study of Juhdi et al (2013) and uses the measurement
suggested. Performance appraisal was considered as procedural justice that
perceived fairness of employees about the means, method or procedures used to

21
establish means, rules and/or procedures used to assign jobs as well as the
determination of compensation conditions and performance evaluation criteria as
well as the determination of compensation conditions and promotion (Paré,
Trembley and Lalonde, 2001). So, performance appraisal measurement scales is
used from Duldebohn and Ferris (1999).
2.1.2.6. Compensation
Employee compensation and benefits includes all form of pay, rewards,
bonuses, commissions, leaves, recognition programs, flexible work hours and
medical insurance. Compensation is a system of payment that aims to fairness based
on job requirements, competences and performance (Tran Kim Dung, 2015). In a
study of Chiu et al (2002), its results revealed that compensation was important
factors to retain and motivate employees. Compensation is considered as the way
organization to keep employees believes about organizational cares their life and
that is important factor for organization to encourage their employees.
 Compensation measurement
As Juhdi et al (2013) proposed that compensation measurement used to
measure aspects of satisfaction with pay. In this study, we also use pay satisfaction
measurement of Weiss, Dawis and England (1967) for compensation scale.
2.1.3. Turnover and Turnover intention
2.1.3.1. Turnover and types of turnover
Employee turnover is a popular term and growing concerns to both academic
and practical researchers. As Hom et al (2017) stated that the first empirical study
about employee turnover was conducted from 1925; the term employee turnover
implies the context that employee stop to be a staff of an organization. As
Kirschenbaum & Weisberg (1990, as cited from Tanthasith, 2016) stated that

22
turnover is a popular phenomenon that occurs when an employee practically leaves/
quit his/her organization for others.
There are 2 main approaches about turnover, they are:
 Decision to quit: many studies investigate turnover based on how the
decision to quit is made. So, turnover is mainly considered as voluntary and
involuntary.
 Functionality/Dysfunctionality of turnover: Functional turnover
occurs when employee that leaves the organization are poor performers whose skills
are easily replaceable. And Dysfunctionality of turnover, it occurs when high
performers choose to leave.
But, voluntary turnover is associated with relatively higher organizational cost
as it is more difficult for the organization to predict. So, voluntary turnover has
become a primary concern in most turnover research (Tanthasith, 2016).
2.1.3.2. Impacts of turnover on organization
It is important for organizations to concern about employee turnover because
of its direct effects to organizational performance. The impacts of turnover concern
both individuals and organizations. That is, employees may confront the
uncertainties of job search and unemployment as well as threats to their income and
retirement security, while organizations need to withstand the cost of operational
disruption and personnel replacement (Batt & Colvin, 2011).
Chughtai (2013) stated that organization should make an effort to draw in and
retain the valuable workforce. With losing competitive workers, the company
suffers competitive advantages loss then the company must incur hiring cost for
new recruits.
Long and Perumal (2014) stated about that turnover is a phenomenon that
attacks interest because of its psychological and economic dimension and its
significant role in organization. And managers try to understand factors to affect
turnover.
Researchers and managers need to predict employee’s turnover. But,
employee’s turnover is complicated problem and there are many reasons that make

23
employee’s actual turnover action. There are 4 factors that impact to voluntary
turnover. They are: Outside factors, functional factors, push factors and pull of
rivals.
There are 7 reasons that make employees leave their organization:
 Job responsibility or workplace condition was not as anticipated.
 There was not match between job and person
 There was too little feedback and coaching that was provided.
 There were not enough growth and advanced opportunity and
promotion
 The employee felt devalued and un-recognized.
 The employees felt stress and work-life imbalance
 There was a loss of confidence in senior management.
Therefore, turnover intention is concerned for a predictable factor for actual
turnover and it is used as an important factor to predict actual quitting (or turnover)
(Griffeth and Hom, 2001).
2.1.3.3. Turnover intention (TI)
Turnover intention (or intention to leave/ intention to quit a job): was
conceived to be a conscious and deliberate willfulness to leave the organization. It
is often measured with reference to a specific interval, a set to which thinking of
quitting and intent to search for alternative employment (Tett & Meyer, 1993).
Many researches (Morell, Loan Clarke, Wilkinson, 2001), has shown the
relationship between intention to leave and actual turnover that turnover intention
has consistently been viewed as the most important variable to predict employee
turnover.
As Chiu and Francesco (2003) suggested turnover intention offers a good
explanation of turnover because it concludes employee’s perception and judgement.
Employee’s turnover intention is a powerful predictor of his or her future behavior
(Carmeli & Weisberg, 2006; Shuck et al., 2011) and the strongest precursor to

24
actual turnover (Egan et al., 2004).Shah et al. (2016) argued that turnover and
turnover intention are different. Turnover refers to the actual turnover rate of
employees who left the organization while the turnover intentions refer to the
employee’s behavioral intentions to quit the current organization.
So, in this study, turnover intention is consider as an intention of employee
who want to leave his/her organization. And turnover intention intends as a key
element to predict the employee turnover behavior.
2.1.3.4. Measurement of turnover intention
As Saks (2006) mentioned about the impacts of engagement on individual-
level outcomes, he proved that turnover intention has negative relation with
engagement. Employees who have higher level of engagement have more
attachment and low intention to leave their organization (or low turnover intention
level).
Turnover intention was measured by three stages in Saks (2006) research,
they are:
 Firstly, they think of leaving their organization
 Secondly, they intend to look for another job in other organization
 Finally, they make decision to quit or turnover behavior if they have
opportunity.
In Bozeman and Perrewe (2001) measured turnover intention by two
dimension, they are conditions and intentions of turnover to make the actual
turnover behavior.
In this study, after comparing component of 2 measurement scales of Saks
(2006) and Bozeman and Perrewe (2001) and adjust them, author proposed a mixed
measurement scale for turnover intention.

25
2.2. Relevant researches and relationship of concepts
2.2.1. Relevant researches
2.2.1.1. Research of Juhdi et al (2013)
As Juhdi et al (2013) proposed mediating roles of organizational
commitment and organizational engagement in the relationship of HR practices and
turnover intention.
The main survey was conducted in in a selected region in Malaysia,
respondents were employees working in various sectors and there were 457 valid
questionnaires used to analyze.
The research model is that:
Figure 2- 1: Research model of Juhdi et al (2013)
Source: Juhdi et al (2013)
The results of research provide a strong support to the notion that HR practices
have significant influence on engagement. Career management is the factor that has
the strongest predictor for organizational engagement. This means that it is the main
reason for talented and professional staffs leaving for better career prospect in other
organizations if organizations have limited opportunity of management programs in
the organizations. If their ability and talent are not identified, developed and
managed, they will not consider to staying and might as well as leave for better
development in other companies.

26
HR practices:





Career management
Compensation
Recognition
Empowerment
Worklife policies
Engagement
Turnover
intention
In study of Juhdi et al (2013), engagement is just measured with 1 aspect:
organizational engagement and it goes along with organizational commitment. And
this study just concentrates on the mediator of engagement, so we use engagement
with 2 components: job engagement and organizational engagement.
2.2.1.2. Research of Chughtai (2013)
The research paper seeks to identify the mediating role of employee
engagement between HR practices and turnover intentions in the telecom sector of
Pakistan.
The research model is that:
Figure 2- 2: Research model of Chughtai (2013)
Source: Chughtai (2013)
This study use basic HRP with 5 components: career management,
compensation, recognition, empowerment and worklife policies. Using Social
exchange theory (SET) explains about the impact of HR practices on turnover
intention. It’s preferred about the reciprocally benefits exchange between
organization and employee leading to their strong relationship. Employees who
receive the benefits, rewards and concern, esteem from organization will, in their
turn, respond in the way that brings benefits to organization.
2.2.1.3. Research of Shah et al (2016)

27
The purpose of this empirical study is to analyze the effect of human
resource practices on turnover intentions of employees of banks in Pakistan. In this
research, HR practices can be described in 3 dimensions: motivation, empowerment
and training.
Motivation: direct shape the employee behaviors in order to achieve the
organizational goals or satisfy the needs of employees and in return the employees
will show more willing to work
Empowerment: manager give employees to make their decision related their
work.
Training: including training at work place and take place away from work
environment to bring changes in knowledge, attitude and behavior. That makes
employees feel about organization caring about their career management.
Results showed that motivation, empowerment has negative relationship with
turnover intentions of employees. Training is proved to be positively related with
turnover intentions.
2.2.1.4. Research of Saks (2006)
This study’s purpose was to test mediating role of engagement in the model of
the antecedents and consequences of job and organizational engagement and
explaining casual model based on social exchange theory. A survey was completed
by 102 employees working in a variety. This is the first study to make a distinction
between job and organization engagement and to measure a variety of antecedents
and consequences of job and organization. The results indicated that engagement
job and organization engagement mediated the relationships between the
antecedents and consequences such as: job satisfaction, organizational commitment,
intentions to quit, and organizational citizenship behavior.
2.2.2. The effects of HR practices on turnover intention
Retaining skilled and good employees plays an important role in keeping
organization’s competitive advantage. There are many antecedents for turnover

28
intention. And HR practices are considered as a good antecedent to predict turnover
intention.
Many scholars (Ma et al, 2016; Sha et al, 2016; Long and Perumal, 2014;
Juhdi et al, 2013; Chughtai, 2013; Chang et al, 2007; Saks, 2006…) found that HR
practices have negative impact to turnover intention.
Selection as the perception of employee about person-job fit and person-
organization fit that has effect on turnover intention, in that high fitness of P-O and
P-J will be lower turnover (Juhdi et al, 2013; Saks, 2006). Career management is
one the most important factors in making decision to enter an organization or
leaving other organization for greater opportunities (Shah et al, 2016; Bambacas
and Kulik, 2013; Chughtai, 2013; Juhdi et al, 2013). Compensation is assumed that
adequate pay satisfaction decreases turnover intention (Juhdi et al, 2013; Prince,
2001). And performance appraisal that reflects how procedural justice in the
organization, is another antecedent of turnover intention (Juhdi et al, 2013;
Bambaas and Kulik, 2013; Saks, 2006).
In this study, author agrees that HR practices with 4 components have
negative impact to turnover intention. And the hypothesis is that:
H1: HR practices have negative effect on turnover intention.
H1a: Selection has negative effect on turnover intention.
H1b: Performance appraisal has negative affect on turnover intention.
H1c: Career management has negative affect on turnover intention.
H1d: Compensation has negative affect on turnover intention.
2.2.3. HR practices and engagement
Wright et al (1994, cited from Amstrong and Taylor, 2014, p36 ) viewed HR
practices as the means through which employee perceptions, attitudes, and
behaviors are shaped. Furthermore, investment in employee management is
believed to facilitate greater obligation by employees towards the organization and

29
therefore increase employees’ motivation to work hard to support organizational
effectiveness.
HR practices play a pivotal role in engaging employees. In his review on past
literature on factors relate to employee engagement (Shah et al, 2016; Juhdi et al,
2013; Chughtai, 2013) that to be implies the critical role of HR practices as tools for
organizations to make employees engrossed and engaged in their job performance
by providing challenging job with available resources and opportunities for growth
and management. As Juhdi et al (2013) proved the relationship of HR practices with
employee engagement and suggestion of Saks (2006) using SET to explain effects
of employee engagement on antecedences, this study prefers about the reciprocal
exchange relations between organization through HR practices and employee
engagement. In that, employees who receive and perceive the fitness, career
concern, fairness and benefits satisfaction from organization, in their turn, they will
respond in the way that bring more engaged to organization. With 4 components of
HR practices (selection, career management, performance appraisal and
compensation), this study clarify the exchange to make engagement of employee.
 Selection and organizational engagement
Selection has positive affect to engagement of employees. Macey and
Schneider (2008) argued that organizations can improve their engagement level by
selection process in order to choose suitable members who are best fitted to the job
and the organization’s culture. And Juhdi et al (2013) proved that selection with
dimension of person- job and person- organization fit could increase organizational
engagement. The relationship of selection and employee engagement will be
discussed through SET. As Saks (2006) indicated that when employees perceive
about the good fits between them with their job and organization, that means they
find out a suit with values and norms, behave in their job and organization. They
perceive that organization gives them a good environment, this will encourage them
becoming engaged with their job and organization. Hence, in order to attract and

30
increase engagement level of employees, organizations need to provide working
contexts that provide a good it between person- job and person- organization.
 Career management and organizational engagement
Career management is considered ad the concern of organization to
employee’s career. In reciprocal aspect, when employees assume that their
organization is concerned about them and cares about their career, they are likely to
respond to organization by attempting to fulfill their role and becoming more
engaged. So, a good career management system which goes along with internal
advancement opportunities based on employee performance has positive impact on
organizational engagement.
 Performance appraisal and organizational engagement
The effect of performance appraisal on organizational engagement is presented
by justice perceptions of employee. In other way, when employees have high
perceptions of justice in their organization, they are more likely to feel obliged to
also be fair in how they perform their roles by giving more of themselves through
greater levels of engagement. On the other hand, low perceptions of fairness are
likely to cause employees to withdraw and disengage themselves from their work
roles. A lack of fairness can exacerbate burnout and while positive perceptions of
fairness can improve engagement (Maslach et al., 2001).
 Compensation and organizational engagement
Many researches agreed that compensation is related to satisfaction of
employee and it is an important factor to retain and motivate employee. Juhdi et al
(2013) proved that compensation has positive relation to engagement.
So, this study suggests the hypotheses aboutrelationship of HR practices and
organizational that:
H2: HR practices have positive affect to organizational engagement.
H2a: Selection has positive affect to organizational engagement.

31
H2b: Performance appraisal has positive affect to organizational engagement.
H2c: Career management has positive affect to organizational engagement.
H2d: Compensation has positive affect to organizational engagement.
2.2.4. Organizational engagement and turnover intention
Many studies (Saks, 2006; Rich et al, 2010; Schauffeli and Bakker, 2004…)
have explored the relationship between engagement and important individual and
organizational outcomes. Their results indicate that organizational engagement has
positive effects on organization and employee outcomes, including turnover
intention.
There is a connection between organizational engagement and turnover
intention. For example, Saks (2006) finds that engagement is negatively related to
intention to quit. The study assumed that engaged employees are more likely to
have a greater connection to their organization. Literature also shows that
engagement serves as a determinant of turnover. Schaufeli and Bakker (2004) found
that engagement was negatively related to turnover intention and mediated the
relationship between job resources and turnover intention.
As Juhdi et al (2013) proved that organizational engagement is negatively
related to turnover intention, and it plays roles as mediator in the impact of HR
practices on turnover intention by the effectiveness of HR practices in creating the
sense of engagement among employees, therefore, it reduce the feeling of
absorption and engrossment then continue to reduce turnover intention.
Thus, individuals who continue to engage themselves do so because of the
continuation of favorable reciprocal exchanges. As a result, individuals who are
more engaged are likely to be in more trusting and high-quality relationships with
their employer and will, therefore, be more likely to report more positive attitudes
and intentions toward the organization.
So, we propose the research hypothesis:
H3: Organizational engagement has negative affect to turnover intention

32
2.2.5. Mediating role of organizational engagement
HR practices generally consisted with four main dimensions: recruitment and
selection, training and management, pay and benefits, and performance appraisal.
These practices are likely to be especially salient to employees and impact
employee turnover by minimizing turnover intentions (Long & Perumal, 2014;
Juhdi et al, 2013; Chughtai, 2013; Bambacas & Kulik, 2013). There are sample
evidences in the literature that support the significant relationship between HR
practices and turnover intention.
Various studies have shown that the link between HR practices and work-
related outcomes, as turnover intention, is not direct but purported to be mediated
by some processes or mechanisms. Some studies suggest using job satisfaction as
the mediator to explain the impact of HR practices on turnover intention. Some
researchers use commitment, perceived organization supports, engagement,
structures (Shah et al, 2016; Bambacas & Kulik, 2013; Kim et al, 2014; …).
Scholars suggest that certain HR practices are able to affect turnover intention
through engagement. Good HR practices that are expected to result in positive
employee’s emotion, perception and physics. In turn, employees tend to feel
engaged and captivated with the goings-on in the organizations that would
eventually lessen the likelihood to leave the organizations. This infers that for HR
practices to result in less intention to leave, the former has to affect organizational
engagement first.
Chughtai (2013) proved that HR practices have impacts on turnover intention
through the mediating role of engagement. Firstly, when HR practices used properly
direct them to do employee’s job in an effective manner, employees feel that they
are important part of the organization and they have been taken care of. With HR
practices facets make the accountable for what they do with high engagement and
efforts, responsibilities for their task. They contribute to employee’s productivity
and attachment them to the organization. Secondly, HR practices help employees
engage with their organization then it keeps employees passionate and upbeat about

33
their work with deducing the turnover intention. So, it is possible that HR practices
lead to organizational engagement which ensues in low turnover intention.
So, we propose the research hypothesis:
H4: Employee engagement plays mediating role in the relationship of HR
practices and turnover intention.
2.3. Hypotheses and research model
From above reasons and premises, this thesis inherits and combines the main
model of model research of Chugtai (2013) about the relationship of 3 elements: HR
practices, engagement and TI; and the model of Juhdi et al (2014) with the role of
OE, OC in the relationship of HR practices and TI. And suggesting the model
research with HR practices, OE and TI to use for testing their relationship.
However, HR practices have many dimensions, such as Juhdi et al (2014)
with: Career management, person-job-fir, job control, pay satisfaction, performance
appraisal; or Chughtai (2013) with HR practices: Career management,
Compensation, Recognition, Empowerment and Worklife policies…The
dimensions of HR practices used into researches are different and change. But there
was a well known research of Michigan University of Fombrun et al (1984, cited
from Tran Kim Dung et al, 2017) used HR practices with 4 basical components,
they are: recruitment and selection, career management, performance appraisal and
compensation with reason that thery are principle, universal and basical in every
organizational.
From above reasons and premises, this study supposes the research
hypotheses, they are:
H1: HR practices have negative effect on turnover intention.
H2: HR practices have positive effect on employee engagement.
H3: Employee engagement has negative effect on turnover intention.

34




HR practices:
Career development
Performance appraisal
Selection
Compensation
H2 +
Organizational
Engagement
H3 -
H1 -
Turnover
Intention
H4: Employee engagement plays mediating role in the relationship between
HR practices and turnover intention
The proposed research model:
H4
Figure 2- 3: Proposed research model
(Source: Author proposes)
SUMMARY OF CHAPTER 2
Chapter 2 has presented the literature review about all concepts of this study,
such as: HR practices, organizational engagement and turnover intention. Further
mores, this chapter has reviewed relevant researches. Hence, research model has
been presented in this chapter.

35
CHAPTER 3: RESEARCH METHODOLOGY
In previous chapter, literature review was discussed and we proposed the
research model. In chapter 3, author is going to present the research methodology to
test the hypotheses and research model. Chapter 3 consists of research method,
research design, qualitative research by group discussion to adjust the measurement
scales, introduction main research, data collection and method of data analysis.
3.1. Method of research
In this study, author uses both 2 method of research: qualitative and
quantitative research.
Qualitative research is used to adjust and develop measurement scale of
observation variables by applying group discuss, the result of qualitative research is
the adjusted and completed questionnaire which is used to conduct the quantitative
survey.
Quantitative research is conducted with face- to- face interview by
interviewing respondents directly with questionnaires. It is mainly survey method;
besides, author also conducts online survey (docs.google.com) to increase the
sample size. The sample is chosen by convenient method. After collecting all data,
measurement scale is accessed reliability of scale, exploratory factor analysis
(EFA), confirmatory factor analysis (CFA) and to test hypotheses and research
model by using software of SPSS version 23 and Amos version 20.
3.2. Research design and process
The study includes 3 stages: literature review and qualitative research;
quantitative research; conclusions and managerial implications.
Firstly, from literature review and previous research, the initial items
measurement scale will be generated. Then it will be translate into Vietnamese to
make a draft questionnaire which is use in group discussion. Qualitative research
will be conducted to adjust, explore and develop scales. Due to differences in
culture, society as well as specific business field and career, it is possible that the

36
original scales that have been inherited are not really suitable for the research
objects and contextual survey. Therefore, scales need to be explored, adjusted and
developed to suit this study. By using qualitative research through group discussion,
an interview with a 10 employees group will be implemented. From the results of
these discussions, all information that is discussed, explored, agreed and adjusted
will be collected and reviewed to make the final questionnaire. Through qualitative
research results, the scales have been adjusted to fit the research objects and
context. After that, the final questionnaire will be sent to 3 other employees to re-
test about the fitness. These scales will be used in quantitative research.
Secondly, quantitative research is carried out through face-to-face survey
questionnaires with sampling size of 450 respondents and online survey sent to
author friends. After collecting data, the analysis will be conducted for testing
scales reliability by Cronbach’s alpha, EFA, CFA analysis and testing hypotheses
through SEM analysis.
Thirdly, the results will be compared and discussed with the literature,
hypotheses and model research with the results. Hence, the last chapter in this study
will present conclusions and give managerial implications.

37
Data analysis (Cronbach
Alpha, EFA, CFA, SEM)
Main survey (n=405)
Stage2:
Quantitative
research
Stage 3:
Discussions
Conclusion and
implications
Figure 3- 1: research process
(Source: Author proposes)
Final questionnaire
Revision
Group discuss
Draft questionnaire
Stage 1:
Literature review
and qualitative
research
Draft items
Literature review
Research
objectives

38
3.3. Qualitative research
3.3.1. Process of qualitative research
In order to fit with research objectives and context, the author conducts
qualitative research to adjust and develop the measurement scales. The group
discussion method is used with interviewees who are young employees currently
working in the professional departments of various companies in Ho Chi Minh City.
From the literature review, the original scales are established in draft questionnaire;
then basing on it, author recreated the transcripts to use exploring and developing
the scales in group discussion.
The measurement scales are translated to Vietnamese and discussed in order to
ensure that the translation concise and exacted with original scales. With translated
sentences that are consensus or different, author will discuss and compare to choose
the most suitable scales.
The discussion process consists of two main parts: author introduced the
objectives, research objects, research issues; then, author conducted discussions, ask
questions, record and summarize comments.
Firstly, author explained about all definition of concepts through a number of
previous studies. After all respondents indicated that they understood "HR practices,
organizational engagement and turnover intention" and author asked open questions
for the respondents according to the transcripts (Appendix 1) in group discussion to
collect ideas.
Then, author sent draft questionnaire to respondents to read and discuss. The
process was continued to be adjusted, shortened and added the observed variables to
measurement scales as well as appropriate and understandable expressing. The
research stopped when all respondent’s ideas that was not difference and no more
new idea. The results of group discussion was collected and reviewed to generate
the final questionnaire that presented detail in scales.
3.3.2. Observed variables in measurement scales in final questionnaire

39
 Performance appraisal (PA)
As Juhdi et al (2013), PA was used to measure employee feeling about the
organizational justice, especially Procedure justice. And PA measurement scale was
adjusted and developed from original scale of Dulebohn and Ferris (1999),
including 6 items, in there 2 item (1 normal, 1 reserved) was used to evaluate
overall about employee total feeling of procedure justice, other 4 items was
measured detail feeling of employee in the process appraisal with their supervisor.
As Cashier (2001) used adjusted measurement scale of Tremblay et al (2000)
procedure justice was measured by standards and condition to appraisal.
Combining 2 scales, this study proposed the measurement scale of PA (7
items) based on adjusted Dulebohn and Ferris (1999) scale with5 items (except 1
reserved item) and add 2 items from Cashier (2001) scale.
After qualitative research, PA scale consists of 9 items and is coded from
PA1 to PA9. The PA scale was adjusted 3 items and developed 2 items (PA3, PA6)
to fit the context. Detail in Table 3.1.

40
Table 3- 1: PA scale
Code Original items Final questionnaire Source
PA1
The criteria used to appraisal are
known from employees
Origin
Cashier
(2001)
PA2
The criteria used to grant promotions
and pay rises are clearly defined
The criteria used to appraisal are
clear, specific.
PA3
To grant promotions and pay rises
etc.…are defined basing on results of
appraisal
Newly
developed
PA4
My boss rated me on how well I did
your job, not on personal opinion of
him
When rating performance, your
supervisor considered level
accomplishment of your task.
Dulebohn
and Ferris
(1999)
PA5
When rating performance, my boss
considered the important aspects of
my work.
Origin
PA6
When rating performance, you feel
your supervisor is fair.
PA7
My boss treated me with
consideration when giving me my
performance appraisal results.
When rating performance, your
supervisor considered your context
and difficult level of your job
PA8
When rating performance, my boss
showed concern for my rights as an
employee
Origin
PA9
Overall, how fairly were I treated by
my boss who rated my performance
Origin
 Career management (CM)
Measurement scale was adopted from Sturges, Guest and Davey (2000) that
consisted of 10 items.
After qualitative research, CM scale consists of 10 items. There are 1 item was
deleted because of repeating of content and 1 item was newly developed. CM scale
is coded from CD1 to CD10. Detail in Table 3.1

41
Table 3- 2: CM scale
Code Original scale Final questionnaire Source
CD1
I have been introduced to people at
work who are prepared to help me
develop my career
When having vacancies, your
organization always prioritizes
internal staff
Strurge
(2000)
CD2
Our organization supports, helps
employees orientate their career
development
Newly
developed
My boss concerns that I get the Origin
CD3 training for my ability needed for
my career
CD4
I have been given work that has Origin
developed my skills for the future
I have been taught things needed Origin
CD5 to know to get on in this
organization
CD6
I have been given training to help Origin
develop my career Strurge
CD7
I have your my career Origin (2000)
development orientation
CD8
I have been given a mentor to help Organization has given mentors to
my career management help your career management
CD9
I have been given impartial career
Origin
advice when I needed it
My boss has given me clear
feedback on performance
CM10
My boss has introduced me to
Origin
people who will help my career
Source: Author summarizes
 Selection (SE)
SE scale is measured using 6 items developed by Cable and Judge (1996)
that was originally used to measure person–organization and person–job fit. As
Juhdi et al (2013) used this scale with meaning that employees feel about the fit
between themselves and their job and their colleagues. The higher fitness they have,
the more retained they will engage with their job and their organization.
The results of qualitative research show that SE scale was adjusted, deleted 2
items and developed 2 items. The scale items were coded from PA1 to PA6,
including of 7 observed variables.

42
Table 3- 3: SE scale
SE1
Do your job performances are hurt
by a lack of expertise on the job?
You find that you are easy
and quickly to catch the
assigned work.
Cable and
Judge
(1996)
SE2
Do you think you possess the skills
and abilities to perform this job?
Origin
SE3
Do you believe your skills and
abilities ‘match’ those required by
the job?
Origin
SE4
To what degree do you feel your
values match this organization
Origin
SE5
My values match those of current
employees
Do you feel you match your
peers?
Do you think the values and
personality of this organization
reflect your own values and
personality
SE6
You feel that the recruitment
of the organization is the
right person for the right job
Newly
developed
SE7
You feel the responsibility of
the staff is clearly assigned
Newly
developed
 Compensation (CP)
As Juhdi et al (2013), CP scale was measured about the employee
satisfaction of paying. So, in this study, the scale was measured by using items from
Weiss and Dawis (1976), which were originally used to measure satisfaction with
pay. As Singh (2004), CP also mentioned about competitive compensation in
market as: “In our organization, salary and other benefits are comparable to the
market”. So, combing from above, this study used scale with 6 items.
After qualitative research, CP scale is adjusted and developed with 6
observed variables. In there, 1 item is newly developed, 1 original item is deleted.
They are coded from CP1 to CP6.

43
Table 3- 4: CP scale
CP1 The compensation for employee is
directly determined by performance
Origin
Weiss and
Dawis (1967)
CP2 My paying is fair Origin
In my organization, compensation is
decided on the basic of employee
competences
CP3
In my organization, profit sharing is
used as a mechanism to reward
higher performance
Origin
CP4
You feel that the
compensation policies
criteria are clear and fair.
Newly
developed
CP5 In our organization, salary and other
benefits are comparable to the market
Origin Singh (2004)
CP6 I’m satisfied with the compensation
policies.
Origin
Weiss and
Dawis (1967)
 Organizational engagement
As Saks (2006) used two scales with 11 items that were designed for his study
to measure job engagement and organizational engagement. Items were written to
assess participant’s psychological presence in their job and organization.
OE scale had 6 items. As the results of qualitative research, OE scale is
developed 1 item about employee attitude about their organization. OE scale
consists of 7 items and is coded from OE1 to OE7.
 Turnover intention (TI)
Turnover intention used three items from Saks (2006). And Bozeman et al
(2001) used scale with 5 items. After comparing, this study combined 2 scales and
suggested 4 items to measure.
The final TI scale consists of 4 items and is coded from TI1 to TI4.

44
Table 3- 5: OE scale
Code Original scale
Final questionnaire adjusted
scale
Source
OE1
Being a member of this
organization is very captivating.
Origin
Saks
(2006)
OE2
One of the most exciting things for
me is getting involved with things
happening in this organization.
You are interested in getting
involved with things happening
in this organization
OE3
I am highly engaged in this
organization.
Origin
OE4
I am really not into the “goings-on”
in this organization (R).
You are really want to be long
engaged with organization
OE5
organization make me come
“alive.”
Origin
OE6
You are proud of your
organization
Developed
OE7
organization is exhilarating for me
It’s motivation and encourage
to me to be a member of
organization.
Saks
(2006)
Table 3- 6: TI scale
Code Original scale Final questionnaire
TI1 I frequently think of quitting my job. Origin
Saks
(2006)
TI2
I am planning to search for a new job
during the next 12 months.
Origin
TI3
At the present time, I am actively
searching for another job in a
different organization
Origin
Bozeman
et al
(2001)
TI4
If I have my own way, I will be
working for this organization one
year from now (R)
If having chance, you will
transfer to other organization.
Saks
(2006)
3.3.3. Questionnaire design
Based on the results of qualitative research, author designed survey
questionnaires for quantitative research.
The author selects Likert scale of 5 levels, with (1) Strongest disagree, (2)
Disagree, (3) Normal, (4) Agree and (5) Strongest agree. Each sentence is a
statement about a certain criterion in a concept of the model.

45
The final questionnaire consists of 43 observed variables with 6 measurement
scales. Besides, 7 questions about personal information are also included in the
questionnaire. The survey is presented in Appendix 2.
3.4. Quantitative research
3.4.1. Sampling method
Samples in quantitative study were selected by convenient sampling method.
Research samples are young employees currently working as employees in various
companies in Ho Chi Minh City and studying for higher education and other degree.
Samples are selected by convenient method and respondents who are studying in
University of Economics Ho Chi Minh City will be chosen.
3.4.2. Sample size
The data analysis method used for this study is analysis on structure
equational model (SEM). To achieve a reliability estimate for this method, the
sample size must be large. However, there are debates in the literatures about how
many respondents should be obtained in order to use SEM.
As Hair et al. (2010) offer the following suggestion for minimum sample size
depending on the model complexity and basic measurement model characteristics.
Table 3- 7: Sample size
Characteristics Size
Five or less latent constructs. Each latent construct has more
than three items.
100 sample
Seven or less latent constructs. Each construct has more
than three items.
150
Seven and less latent constructs. Some constructs have more
than three items (just identified model).
300
More than seven latent constructs. Some constructs have
less than three items (just identified model).
500
Source: Awang (2012)

46
So, with 6 latent constructs and each latent construct have more than 3 items,
the minimum sample size is 150. Besides, the sample size also depends on the
analysis method (ML, GLS, ADF...) (Nguyen Dinh Tho, 2013). The ML method
must have a minimum sample size of measurement ratio of 5: 1. In this study, there
are 43 observed variables, so the minimum sample size is 215. And as Tabachnick
and Fidell (1996, cited from Nguyen Dinh Tho, 2013) sample size used to
regression following by equation: n >= 8m + 50 (with m: observed variables), so the
minimum size is n= 8*43 +50 = 394.
However, the larger the sample size has, the more the model reliability and
fitness will increase. Therefore, this study generated 450 questionnaires.
3.4.3. Data collection
Main survey was conducted from November 1st to November 25th by the
author. Another side, online survey was also operated by sending to author’s friends
in order to get more data as well as possible. Face to face interviews are
implemented with convenient participants who are employees working as
employees in various companies in Ho Chi Minh City and studying in second
university degree, in-service university degree and post-graduate classes in the
evening at campus D and B of University of Economics Ho Chi Minh City.
After three weeks of face-to-face interviews and collecting questionnaires, the
result is that 385 questionnaires were collected. There were 47 questionnaires
collected by online survey.
The valid questionnaire must satisfy the criteria that is marked value (from 1
to 5) for all observed items. The invalid one is that many items were unanswered or
answered with the same mark for all items. All questionnaires were collected and
used to analyze.
3.5. Method of data analysis
3.5.1. Data leaning and descriptive

47
After survey, all collecting data were screening and input for further
processing. Using SPSS to analyze and descript data.
Checking data for errors and correcting them. Data screening will be
conducted to:
 Check if data is entered correctly, such as out range values
 Check for missing values, and decide how to deal with the missing values
 Check for outliers, and decide how to deal with outliers
3.5.2. Normality distribution examining
To check normality, Skewness and Kurtosis are used to examine. If Skewness
and Kurtosis of measured variables distributed in the interval (-1; 1), the data can be
considered to meet the required cut-off for normality.
3.5.3. Reliability checking
A measure scale must have a high reliability. Reliability is the consistency of a
scale. It produces consistent results in consistent conditions. So, it is necessary to
check reliability of measure scale. In this study, Cronbach’s Alpha was used to test
reliability.
According to Nunnally et al (1994, as cited from Nguyễn Đình Thọ, 2013),
Cronbach’s Alpha is a coefficient of reliability. It is used as a method to test the
internal consistency or reliability of a psychometric test score for a sample of
examinees. The Cronbach’s Alpha is interpreted as a coefficient Alpha and its
values ranges from 0 to 1. Correlation coefficient is less than 0.3 is not selected.
Reliabilities less than 0.6 are considered poor, one over 0.6 ranges is considered
acceptable and those from 0.7 to 0.8(0.7<α< 0.8) are considered good. The
Cronbach’s Alpha is over 0.95 (α> 0.95) showing that there are no differences in the
scale.
3.5.4. Exploratory factor analysis (EFA)
We use the exploratory factor analysis (EFA) to assess the validity of the
scales. EFA helps to identify the collection of variables necessary for the study

48
matters and find out the relations between variables. The study used the deduction
method Principal Axis Factoring and Promax rotation instead of the extraction
method of Principal Components with Varimax rotation because this method
reflects more accurate data structure than other methods (Gerbing and Anderson,
1988; quoted in Nguyen Dinh Tho, 2013).
As Hair et al (2006, as cited from Nguyễn Đình Thọ, 2013) indicated that to
use the EFA method, the sample size should be at least 50, better 100 and the
observation/items rate should be 5:1, meaning that 1 measurement variable would
require at least 5 observations, at best 10:1. In this study, the rate we choose that is
N=5*n…So the sample should be: 250.
 Kaiser- Meyer- Olkin (KMO) and Bartlett’s test: KMO is an indicator used to
evaluate the appropriateness of EFA with the data. KMO should run from .50
to 1 that is applicable. Bartlett’s test shows that p<.05, it means that the
variables have correlation together and the application of EFA is suitable.
 Kaiser criterion: this criterion helps to identify factors which are extracted
from the scales. The less important factors would be eliminated; the important
factors would be maintained while we look at the Eigenvalues values. Which
represent the variations that could be explained by each factor, only factors
whose Eigenvalues values >=1 would be kept in the model.
 Variance explained criteria: the total variance explained should not be lower
than 50%.
 The differences in factors loading values of variables in different factors
should be bigger or equivalent to .30.
 Factor loading: factor loading is an indicator ensuring practical significance of
EFA method. If factor loading >=.30, it’s at minimum level; If one >=.40, it’s
necessary and if it is >=.50, it’s considered practical significance.
3.5.5. Confirmatory factor analysis (CFA)
Confirmatory Factor Analysis (CFA) was conducted by using Amos 20
software.

49
To test the model fit, these indices are put into consideration:
 P-value: it is associated with the test statistics. It is the probability of
observing a test statistic. The smaller P-value, the more strongly the test
rejects the null hypothesis. This is the way to test the hypothesis. With P-value
of 0.05 or less rejects the null hypothesis or shows the relationship existed.
 Chi-square/df (or CMIN/df, �2/��): Chi-square adjusted following degree of
freedom: indicates the appropriate level of entire model at significant level
with P-value = 0.05.
 According to Hair et al (1998), Chi-square/df should be as small as possible
and suggested 1< Chisq<3. Also, Chi-square are assumed <5 that should be
accepted. So, in this study, author used the standard that Chi-square/df <5 is
satisfactory.
 Comparative Fit Index (CFI): CFI compares appropriate indicators. In
examining baseline comparison, the CFI depends in large part on the average
size of the correlation in the data.
 Tucker Lewis Index (TLI): TLI predates the CFI and is conceptually similar in
that is also involves a mathematical comparison of a specified theoretical
measurement model and based line null model.
 Goodness-of Fit Index (GFI): attempts to produce a fit statistic that was less
sensitive to sample size. The possible range of GFI value from 0 to 1, higher
value indicates better fit.
 These indices (CFI, TLI, GFI) with value >0.9, are considered to indicate good
fit.
 Root Mean Square Error of Approximation (RMSEA): is to attempt to correct
for the tendency of reject models with large sample or large numbers of
observed variables. It present how well a model fits a population, not just the
sample used for estimation, lower RMSEA value indicates better fit. In some
case, RMSEA is <0.05 that the model is considered good fit, some case
RMSEA <0.08 is accepted. In this study, author use RMSEA < 0.08.

50
In brief, if the model get these indices value (Chisq/df <5; CFI, TLI, GFI >0.9;
RMSEA< 0.08), it is considered good fit and matches with the market data.
Table 3- 8: Fit index of CFA
Name of category Name of index
Level of
acceptance
Comments
Absolute fit Chisq Chisq Chisq
P > 0.05 P > 0.05 P > 0.05
Sensitive to
sample size >200
Sensitive to sample
size >200
Sensitive to sample
size >200
Incremental fit GFI GFI > 0.90
GFI = 0.95 is a
good fit
CFI CFI > 0.90
CFI = 0.95 is a
good fit
TLI TLI > 0.90
TLI = 0.95 is a
good fit
Source: Awang (2012)
To access the CFA model, it is necessary to check:
 Construct reliability or Composite Reliability (CR)
The construct reliability (CR) is an alternative reliability measurement to
Cronbach’s Alpha. It is also an indicator of convergent validity, and the value
should be over 0.7 to be considered good. If the CR is high, it indicates that all the
measures represent the same latent construct. In the factor analysis it is also
important to calculate the average variance extracted (AVE) (Hair et al., 2010).
 Unidimensionality:
According to Steenkamp and Van Trijp (1991), the relevance of the model
with market data provide us necessary and sufficient conditions for the collective
variables achieving Unidimensionalityality.
 Convergent Validity:

51
The AVE indicates convergent validity, it measures the amount of the variance
that is captured by the construct in relation to the amount of variance due to
measurement error and can be calculated using the formula. The AVE is a summary
indicator of convergence, and values over 0.5 are considered sufficient.
Table 3- 9: Formula of CR, AVE
AVE= Σ Қ2 / n Қ = Factor loading of every item n =
Number of items in a model
CR = (ΣҚ)2 / [(ΣҚ)2 + (Σ1- Қ2)] Қ = Factor loading of every item n =
Number of items in a model
(Source: Awang (2012))
 Discriminant Validity:
Discriminant validity is the extent to which a construct is real distinct from
other construct. Thus, high discriminant validity provides evidence that a construct
is unique and specific. We can test by correlation coefficient between all concepts
<1 and statistically significant (sig <0.05) indicates that concepts are access
discriminant validity (Nguyen Dinh Tho, 2013).
 Norm-ological Validity:
It is defined based on the research model, scales of previous studies.
3.5.6. Structural Equation Modeling (SEM)
The structural equation modeling (SEM) will be used by Amos software to
analyze research theories from H1 and H4 about the mediating effect of employee
engagement on the relationship between HR practices and Turnover intention.
Supporting for the mediation hypothesis requires the following conditions:
Firstly, the independent variable must significantly impact the mediating
variable.
Secondly, the independent variable must significantly impact the dependent
variable.
Thirdly, the mediator variable must significantly impact the dependent
variable. Finally, comparing at the same time the impact of the independent variable

52
on the dependent must either become insignificant (total mediation) or become
significant but the effect of the independent variable on the dependent variable
would be reduced in size (partial mediation) (Baron & Kenny, 1986).
SUMMARY CHAPTER 3
In chapter 3, author presented about research method and research design.
After that, this chapter also presented about the qualitative and quantitative research
in order to clarify adjusting and developing the measurement scales to fit the
research context and objectives. The quantitative research indicated the practical
survey. Then data analysis method provided the basic for next chapter, data
analysis.

Luận Văn Impacts Of Human Resource Practices On Organizational Engagement And Turnover Intention

Luận Văn Impacts Of Human Resource Practices On Organizational Engagement And Turnover Intention

Recommended

Recommended

More Related Content

Similar to Luận Văn Impacts Of Human Resource Practices On Organizational Engagement And Turnover Intention

Similar to Luận Văn Impacts Of Human Resource Practices On Organizational Engagement And Turnover Intention (20)

More from Nhận Viết Thuê Đề Tài Baocaothuctap.net 0973.287.149

More from Nhận Viết Thuê Đề Tài Baocaothuctap.net 0973.287.149 (20)

Recently uploaded

Recently uploaded (20)

Luận Văn Impacts Of Human Resource Practices On Organizational Engagement And Turnover Intention