The impact of managerial coaching on job performance PDF

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FOREIGN TRADE UNIVERSITY HO CHI MINH CITY CAMPUS ------***------

GROUP RESEARCH PROJECT

TOPIC: EFFECT OF MANAGERIAL COACHING ON JOB PERFORMANCE Lecturer: Mrs. Le Hang My Hanh

GROUP 10 Member's name

Student ID

Nguyễn Thị Thảo Hằng

2011156065

Nguyễn Thị Thu Hà

2011155140

Nguyễn Phương Anh

2011155032

Đinh Đức Huy

2011155203

Phạm Hồ Phú Huân

2011155191

Dương Việt Đức

2011156057

Ho Chi Minh City, April 25th, 2021

TABLE OF CONTEN

Abstract.........................................................................................................................1 I. Introduction................................................................................................................2 II. Literature review.......................................................................................................4 2.1 Managerial coaching............................................................................................4 2.2. Job performance..................................................................................................4 2.3. Managerial coaching and job performance..........................................................5 III. Metholody and data.................................................................................................7 3.1 Proposed research model...................................................................................7 3.2 Procedures and sample......................................................................................7 3.3 Measures...........................................................................................................7 IV. Results....................................................................................................................11 4.1. Reliability Statistics...........................................................................................11 4.2. Exploratory factor analysis (EFA).....................................................................11 4.3. The Rotated Component Matrix........................................................................12 4.4. Ordinary Least Squares regression....................................................................14 4.4.1. Analysis of Variance (ANOVA test).........................................................14 4.4.2. Coefficients table.....................................................................................14 V. Conclusion...............................................................................................................16 REFERENCES..........................................................................................................177

LIST OF FIGURES Figure 1: The proposed research model LIST OF TABLES Table 3.1: Predictor variable table Table 3.2: Criterion variable table Table 4.1: Cronbach’s Alpha Test Table 4.2: KMO and Bartlett's Test of Independent variables Table 4.3: KMO and Bartlett's Test of Dependent variables Table 4.4: Rotated Component Matrixa Table 4.5: Component Matrix Table 4.6: Model Summaryb of Ordinary Least Squares regression Table 4.7: ANOVA table Table 4.8: Coefficientsa table

1 Abstract The need for improving job performance of employees is increasing rapidly. Therefore, managerial coaching is considered as an effective ways to achieve this objective. Despite this, few empirical research has looked at the impact of managerial coaching on employee performance. Our study using the a four-dimensional framework of coaching of McLean et al.,2005, which include: open communication, team approach, value given to people, and acceptance of ambiguity, and then tests the impact of these four elements on job performance. Using the OLS model to test the hypothesis that management coaching behavior have positive effects on employee performance, the results shows that only Acceptance of ambiguity is statistically significant. Keywords: performance, managerial coaching, managerial coaching behavior, job performance

2 I. Introduction An organization refers to a group of people involved in pursuing defined objectives, and individual job outcomes would contribute to organizational achievement. Employers need employees to get jobs done with the highest efficiency; thus, employees should be enhanced their job performance to achieve that objective. Higher job performance is when employees are doing their tasks well, which is a motivation for improving morale in the workplace. As indicated, employees who aren't motivated to get the job done can lower the result of an entire department. Moreover, employees with ineffective job performance who directly approach customers may make them feel that the company is apathetic to their needs. Otherwise, with better performance, he/she can boost the company’s earning potential through dedicated care for customers. These two aforementioned motives are the reasons why the need to enhance job performance is so essential. To keep up with the rapid change in the nature of work and also a more dynamic environment in the workplace, organizations need to focus on enhancing the role of managerial behavioral skills in shaping behavior and attitude to employees. When the impacts of manager behaviors have been more noticeable, managerial coaching has also been drawing more attention since it could be used as a tool to navigate people toward the collective performance orientation of the organization. (Ellinger et al., 2011; Gilley et al., 2010; Kim et al., 2013; Hsu et al., 2019, Maamari, 2021). Since then, managerial coaching has become widely recognized as one of the most desired behaviors for a learning company and effective management and leadership (Ellinger et al. 2003; Hargrove 2008). Managerial coaching is focused on practice one-to-one through giving employees open questions, active listening, and feedback related to job issues. Managerial coaching is commonly seen as an effective technique for enhancing employee performance through negotiations toward labor’s perception as well as a consultant while approaching difficulties. Managerial coaching has grown in popularity in enterprises during the last two decades (Park 2007). In the annual learning and development survey claimed that eighty percent of UK managers are expected by their organizations to coach their employees. This is same with the results of Wang (2011) in China, Kim (2014) in Korea. According to Longenecker and Neubert (2005), employees also want more coaching from their supervisors because feel that such coaching leads to personal growth and organizational competition. There are many studies that have shown that there is a direct and indirect positive relationship between managerial coaching and job performance. Effective coaches can inspire team members to accomplish tasks and promote active learning, thereby improving team task performance (Hackman and Wageman, 2005). Besides, when employees actively acquire knowledge from managerial coaching, their individual performances are improved (Ribeiro et al., 2020). Maamari et al., (2021) also emphasized in their study that the internal changes in employees' behavior and

3 cognition as a result of coaching, such as creativity, motivation, commitment, learning, and OCB, as well as the impact of all of these internal behavioral and cognitive changes on performance. Business managers and organizations later recognized the benefits of having a coach (Evered and Selman, 1989). Employees who were given coaching seemed to be happier, while motivated employees who were given coaching were seen to be more productive. Coaching of employees by managers became related with increased productivity and revenues in firms inside practice circles. Coaching has become a component of a company manager's role, and it has been acknowledged as an essential performance management and training tool in modern organizational literature for those firms that have adopted it. Following the four-dimensional framework of coaching of McLean et al. (2005), our study also separates managerial coaching skills into four characteristics: (1) maintaining effective and open communication, (2) focusing on teams, (3) valuing people over tasks, and (4) accepting the ambiguous nature of working environments in order to enhance employees' development and improve their performance. Realizing the importance of improving job performance in enterprises, this study examines the influence of coaching on job performance through the four factors mentioned above.

4 II. Literature review 2.1 Managerial coaching Coaching could be defined as a management philosophy that aims to change the relationship between managers and employees (Ellinger et al., 2003a), or in short, it is often called ‘managerial coaching’. According to Maharani & Widiartanto (2017), managerial coaching is an activity that helps employees gain necessary knowledge and skills from their coaching superiors so as to develop themselves professionally. In detail, managerial coaching is understood as an employee’s process consisting of three main steps, starting from learning, then discovering their ambitions and finally receiving guidance from the managers (Ellinger et al., 2003; Ellinger et al., 2011; Whitmore, 2010). The term ‘coaching’ used here has been distinguished from counseling and mentoring, when managerial coaching is defined as a one-to-one approach to achieve more specific goals of personal learning, behavioral adjustment and retention (Day, 2001; Zhang, 2008). Based on the findings of Levinson (1995), employees may feel grateful and even turn more of their attention to the organization’s growth after receiving organizational support through timely management and leadership practices. Ellinger et al. (2003) also discovered the differences between managerial coaching and other traditional management strategies. While coaching focuses on building a connective, effective relationship between managers and subordinates, traditional management methods have the two characteristics: bureaucratic and directive. Therefore, managerial coaching has become one of the most important human resource development strategies of many companies in the long run (Hackman & Wageman, 2005). 2.2. Job performance Siswanto (2002) stated that job performance is the progress made by an employee when carrying work-related responsibilities assigned to him. According to Campbell (1990), job performance is the behavior of a person with the objective of the organization’s benefits. Murphy (1989) identified that there is the problem of which organizational employees are running for achieving goals just because they find it easier to achieve goals in comparison with paying attention to their behaviors. Therefore, the focus of work-related performance should be put on the behavior of the employees. To broaden the scope, Rivai (2004) mentioned that performance is actual behaviors of employees in accordance with their role in the company. Porter and Lawler (1968) also had the similar discovery that job performance refers to employee’ working effectiveness and is often regarded as the final result of role achievement at the workplace.

5 2.3. Managerial coaching and job performance The relationship between managerial coaching and performance has been discussed by many scholars. According to Fournies (1987), Orth, Wilkinson & Benfari (1987), performance improvement is always regarded as one of the potential outcomes of managerial coaching. In Whitmore (1994)’s research, the ways of managerial coaching enhancing the performance of employees are demonstrated in detail. One of the coaching ways is to discuss job-related problems with employees, followed by possible solutions to solve these issues. More specifically, workers could be asked open questions to examine their awareness towards the situation and be urged to conduct a solution to the given problem. To support this view, Hargrove (1995) also emphasized that conversational style in coaching helps the employees deal with hard work-related issues better, resulting from the thorough discussion about the characteristics of the situation and the possibility of the upbringing solutions. Ellinger (1999) discovered a link between managerial coaching and improved employee performance as well as expense-reducing strategies, leading to an improved organizational climate. Ellinger, Ellinger and Keller (2003) conducted empirical research to discover the relationship between managerial coaching behavior and employee performance and found it positive. McLean et al. (2005) also identified four factors of coaching behavior which contribute to the enhancement of the work-related performance, consisting of open communication, team approach, valuing employees over task, and ambiguous characteristics of the workplace. Heslin et al. (2006) asserted that the most important purpose of coaching is to ensure the personal and professional development of organizational employees as well as the improvement of work-related performance. Managerial coaching requires a committed, attentive approach which motivates the workers of the organization (Boyatzis & Howard, 2006). In a prior study, Har (2008) used a survey research study in Malaysia to analyze the impact of managerial coaching on employee performance and turnover intentions. Following the examination, it was determined that there was a positive association between employee commitment and the negative reaction in the event of job turnover intentions. During their investigation, Park, Yang and MacLean (2008) discovered a similar link. Elmadag, Ellinger, and Franke (2008) found that a positive stimulus was created on employee dedication to service excellence. Hamlin, Ellinger, and Beattie (2009) identified some major skills to enhance the effectiveness of managerial coaching application, including asking questions technique, active listening, collaboration, decision-making, effective communication and support in the working place. The effect of managerial coaching on employee performance progression over time was explored by Liu and Batt (2010). It was determined according to an individual's level of performance gains is proportional to the amount of coaching he or she got. When managers who coached those people leveraged group incentives, the

6 changes were more noticeable. This feature was clearer in Liu's research on employee job performance in various Chinese firms. Researchers observed that supervisors with self-consciousness and the capacity to lead from the front had a significant influence on work performance; moreover, the above-mentioned attributes, as well as physiological assistance and vocational growth, had a favorable influence on employee performance. In a study conducted by Kalkavan and Katrinli (2014), the direct impacts of managerial coaching on employee work performance, job satisfaction, role ambiguity, and satisfaction with managers were once taken into investigation. The research was focused on Turkey's Insurance Industry. Final results of the study revealed that managerial coaching behavior in the insurance industry had a favorable impact on workers' role clarity, job satisfaction, career commitment, employee performance at work, and organizational commitment. Recently, more mediation variables are added into the model to indicate the impact of managerial coaching on job performance such as affective commitment (Ribeiro et al., 2020), organisational citizenship behaviour (Maamari et al., 2021) The following is developed based on the above discussion: H0: Managerial coaching has a positive impact on Job performance of the employee.

7 III. Methodology and data 3.1 Proposed research model Based on the four-dimensional framework of coaching of McLean et al. (2005), our study also separates managerial coaching skills into four characteristics (written in the model below), which enhance employees' development and improve their performance.

Figure 1. The proposed research model

3.2 Procedures and sample To test the research hypotheses, a self-report survey was conducted online. The questionnaire was sent via personal contact to the respondents working in different fields in Ho Chi Minh city. The questionnaire set out the purpose of the study, and also ensured that the data would be used for the right purpose. In addition, information related to data security is also provided sufficiently to ensure the safety of surveyors' information. Because of the short survey time, the team only collected a small number of samples. The final sample included 61 people, of which 72,131% were females (44 females and 16 males, 1 is not specific). The respondents were quite young, with nearly 85,246% between 18 and 25 years old, 11,475% between 25 and 35 years old (only two respondents are over 35 years old). The research team's questionnaire consists of 2 parts. Part 1 includes the scales of independent variables, intermediate variables and dependent variables. Part 2 includes questions about the general information of the respondents (gender, age) 3.3 Measures The constructs were measured with validated scales adapted from the relevant literature. This study used a 5-point Likert scale (1- totally not agree; 5 - totally agree),

8 the study asked people to indicate to what extent each statement presented applied to them or to their managers. Coaching abilities for managers (predictor variable). This variable was assessed using 20 items adapted from the work of McLean et al. (2005). The mentioned authors validated a four-dimensional multidimensional measure of managerial coaching skills: open communication, team approach, people value, and uncertainty acceptance. This was modified to assess employees' evaluations of their managers' abilities, which includes not only behaviors but also attitudes and beliefs that support a coaching mindset (Hagen and Peterson, 2015). Individual accomplishments (criterion variable). To assess employees' individual performance, we used four questions produced by Staples et al. (1999) and frequently used by other writers such as Rego and Cunha (2008), who translated it into Portuguese. As a result, rather than using an objective metric, the researchers utilized a self-rated one. Several writers, such as Alzghoulet al. (2018) and Karatepe and Uludag (2008), suggest that variables like work performance can be quantified using selfreport because adopting a self-report measure does not always result in systematic bias. We collected the information on respondents’ personal information, such as age and gender. Dimension and scales table: Predictor variable Items in factor analysis

OP1

Open communication

Previous approach

When asked to share feelings, (McLean et my manager feels free to do so al.,2005)

OP2

In difficult job-related situations, my manager reveals his/her opinions openly and frankly

OP3

When talking to other people, my manager shares his/her feelings openly

OP4

When developing relationships, my manager openly shares his/her personal values

OP5

When questioned about his/her

Expecte d impact +

9 professional experiences, my manager willingly shares details Team approach TA1

When asked to volunteer for work-related projects, my manager chooses to do these with teams

TA2

In general, my manager enjoys performing tasks in which my manager works with others

TA3

As part of a working group, my (McLean et manager prefers to foster group al., 2005) consensus

TA4

When a decision has to be made, my manager prefers to consult other people

TA5

When my manager thinks of ways to achieve goals, my manager seeks information from other people

VP1

Value given to In decision-making processes, people my manager overcomes feelings with logic

VP2

In discuss...