Abstract

The model in this study measures the effects of selection process and interpersonal communication on many important factors in work environment including supervisor trust, intrinsic motivation and organizational commitment. In literature, SMEs tend to have less formalized selection procedures. The study will expand on past research by investigating the reactions of employees to selection procedures as well as communication satisfaction, important areas of growing interest in recent years. Therefore, levels of formality in selection procedures is expected to positively related to levels of supervisor trust, intrinsic motivation of employees and organizational commitment which involves in employees’ attachment and their intention to stay at the firm.
In addition, interpersonal communication which is based on corporate communication and personal feedback is recently one of the most important factors in SMEs. Consequently, it is expected that high amount of interpersonal communication will lead to a higher level of trust in supervisor, intrinsic motivation and organizational commitment.
Finally, the study makes a contribution by collecting data in a new country, Vietnam. Using data from small and medium firms in Vietnam, the paper reviews the recruitment and selection practices as well as employees’ attitudes in these firms. It incorporated findings from a survey of employees to understand to role of the level of formality of selection procedures and communication satisfaction in SMEs’ work environment and their influence on employees’ attitudes in their jobs.
The sample included 20 Vietnamese SMEs. The actual sample included 188 participants who come from these companies and have full-time job. These SMEs are usually family businesses located in an industrial zone in a Southern province of Vietnam. They are small manufacturers which are in different industries.
The results supported the hypotheses that the use of selection tests is positively related to supervisor trust, intrinsic motivation and organizational commitment. Besides, the formality of interview process is positively related to supervisor trust. This study also found that interpersonal communication is positively related to supervisor trust, and organizational commitment; and personal feedback is positively related to intrinsic motivation. The findings of this study imply that SMEs, especially in Vietnam, need to pay more attention to the formality of selection procedures so that they can successfully run the business.