EXECUTIVE SUMMARY Being a factory founded in 1946, after more than 70 years of development, Garment 10 Corporation nowadays is one of the largest company in Vietnam garment industry. Each year, the FOB order which is taken care by Sales department counts for 75% of the company revenue and staff of this department, whose job is merchandiser, has major role in ensuring the FOB order and customer requirements are implied correctly and timely in actuality. A merchandiser should have experience from 3 to 5 years to meet the job requirements and manage the FOB order well. However, the turnover rate of the department in 2016 to 2020 increased from 2% to 10%, and other symptoms of dissatisfaction are founded such as procrastination, boredom and irritability. So the research namely “Job satisfaction of employees at Sales Department of Garment 10 Corporation, JSC” is made to evaluate the degree to which the employees of Sales department are satisfied with their jobs, what is satisfied and what is not. Particularly, the objectives of the thesis are to identify the determinants of job satisfaction of employees in this department, to assess job satisfaction level and find out the root cause of satisfaction or dissatisfaction of Garco10’s staff of sales department, therefore proposing recommendations to improve their job satisfaction. To conduct the research, all staff of the department were asked for their expectation and satisfaction towards 8 dimensions of satisfaction, so both primary data (from questionnaire, interview) and secondary data (including company report, newspaper,…) are collected, in quantitative, qualitative form. In questionnaire, both closed ended questions in Likert scale, and open ended questions are raised, also observation, face to face questionnaires and online questionnaires are used. The data collected are then analyzed in descriptive statistics in table and graphical form. The research shows that within eight dimensions of job satisfaction, the work itself, the amicable and supportive interpersonal relations, safe and convenient working conditions, job security, and supervision are factors that satisfy the staff. On the other hand, the working condition (company software), recognition (KPI and performance appraisal process), salary scheme, interpersonal relations (working SOP), advancement and growth factors still have outstanding shortcomings and needs improvement and more attention from management. To enhance the job satisfaction, the thesis contributes several recommendations including: (1) for working condition, particularly company software in terms of user manuals and rules in creating item code, BOM, PO, material allocation, order closing should be complied strictly; (2) in recognition, KPI and goals setting in both work output and managerial competences, people involved in performance appraisal, job rank should be reviewed and revised; (3) pay level, distribution and salary increase scheme should be taken into account to be more competitive, and have a clearer commitment to staff; (4) for interpersonal relations, working SOP should have more innovation to foresee and solve the job conflict; (5) advancement and growth should be stick with the job rank and job requirement, and give more chances for staff to develop themselves in both working and managerial competences.
NATIONAL ECONOMICS UNIVERSITY BUSINESS SCHOOL BUI PHUONG THAO JOB SATISFACTION OF EMPLOYEES AT SALES DEPARTMENT OF GARMENT 10 CORPORATION, JSC MASTER OF BUSINESS DMINISTRATION THESIS HANOI – 2021 NATIONAL ECONOMICS UNIVERSITY BUSINESS SCHOOL BUI PHUONG THAO JOB SATISFACTION OF EMPLOYEES AT SALES DEPARTMENT OF GARMENT 10 CORPORATION, JSC MASTER OF BUSINESS DMINISTRATION THESIS SUPERVISOR: DR NGUYEN QUOC DUY HANOI – 2021 ACKNOWLEDGEMENTS I would like to express my special thanks to my supervisor Dr Nguyen Quoc Duy for his guidance and immense knowledge that contributed to my study and helped me a lot in all the time of my study and writing this thesis My gratitude to Sales department, Administration, Planning department of Garment 10 Corporation - Joint Stock Company for allowing me to approach the respondents and providing me the information needed for the thesis I would like to acknowledge the Business School for their continuous supports and instructions during my time in this MBA program Last but not least, I am extremely grateful to family who are always giving me encouragements, supports and advices throughout my life TABLE OF CONTENTS STATUTORY DECLARATION I herewith formally declare that myself have written the submitted Master’s Thesis independently I did not use any outside support except for the quoted literature and other sources mentioned at the end of this paper Hanoi, / /2021 ABRREVIATIONS BOM CMT EU FOB Garco10 ISO JSC KPI OBM ODM PO SOP TNA UCP VINATEX VND Balance sheet of material Cut- Make- Trim Europe Free on board Garment 10 Corporation International organization for standardization Joint Stock Company Key performance indicator Original brand manufacturer Original design manufacturer Purchasing order Standard operating procedure Time and Action Plan Uniform customs and practice for documentary credits Vietnam National Textile and Garment Group Vietnam Dong LIST OF FIGURES Figure 1.1 Research process 14 Figure 2.1 Research Model 26 Figure 3.1: Garco10 organization structure 36 Figure 3.1: Garco10 revenue at year period (unit: billion VND) 38 Figure 3.2 Garco 10’s annual revenue growth rate in five year period (%) 39 Figure 3.3: Garco10’s earning before tax of in recent years (unit: billion VND) .39 Figure 3.4: Garco 10 monthly average income of employee in recent years (unit: million VND) 39 Figure 3.5: Garco10’s export market proportion 42 Figure 3.6: Age group of Garment 10 Sales department (years old) 45 Figure 3.7: Gender proportion of employees at Garco10 Sales department .46 Figure 3.8: Education level proportion of employees at Garco10 Sales department 46 Figure 3.9: Year of experience of employee in Garco10 sales department .46 Figure 3.10: Distance from home to workplace of employee in Garco10 sales department 47 Figure 3.11: Expectation and satisfaction with the nature of job in Garco10 Sales department 48 Figure 3.12: Expectation and satisfaction with recognition, appreciation and reward, job objectives and KPI setting of Sales staff in Garco10 Sales department 48 Figure 3.13: Expectation and satisfaction with the Advancement and Growth in Garco10 Sales department 50 Figure 3.14: Expectation and satisfaction with Supervision in Garco10 Sales department .51 Figure 3.15: Expectation and satisfaction with Salary in Garco10 Sales department 52 Figure 3.16: Expectation and satisfaction with Interpersonal and Company policy and procedure in Garco10 Sales department 54 Figure 3.17: Expectation and satisfaction with physical working condition, equipment, materials and software system in Garco10 Sales department.55 Figure 3.18: Expectation and satisfaction with Job security in Garco10 Sales department .57 Figure 3.19: Overall expectation of employee in Garco10 Sales department 57 Figure 3.20: Overall satisfaction of employee in Garco10 Sales department 57 Figure 3.21: Overall gap between expectation and satisfaction of employee in Garco10 Sales department 58 LIST OF TABLES Table 1.1: Sales department’s turnover rate .12 Table 2.1: Variables and items of thesis research model 27 Table 3.1: Business results of Garco 10 in recent years 38 Table 3.2 Garco10 export quantity proportion by product in 2019 40 Table 3.3: Garco10 export revenue proportion by product in 2020 40 Table 3.4: Garco10 revenue proportion 41 Table 3.5: Garco10 number of export countries .41 Table 3.6: Sales Department human resource status 45 EXECUTIVE SUMMARY Being a factory founded in 1946, after more than 70 years of development, Garment 10 Corporation nowadays is one of the largest company in Vietnam garment industry Each year, the FOB order which is taken care by Sales department counts for 75% of the company revenue and staff of this department, whose job is merchandiser, has major role in ensuring the FOB order and customer requirements are implied correctly and timely in actuality A merchandiser should have experience from to years to meet the job requirements and manage the FOB order well However, the turnover rate of the department in 2016 to 2020 increased from 2% to 10%, and other symptoms of dissatisfaction are founded such as procrastination, boredom and irritability So the research namely “Job satisfaction of employees at Sales Department of Garment 10 Corporation, JSC” is made to evaluate the degree to which the employees of Sales department are satisfied with their jobs, what is satisfied and what is not Particularly, the objectives of the thesis are to identify the determinants of job satisfaction of employees in this department, to assess job satisfaction level and find out the root cause of satisfaction or dissatisfaction of Garco10’s staff of sales department, therefore proposing recommendations to improve their job satisfaction To conduct the research, all staff of the department were asked for their expectation and satisfaction towards dimensions of satisfaction, so both primary data (from questionnaire, interview) and secondary data (including company report, newspaper,…) are collected, in quantitative, qualitative form In questionnaire, both closed ended questions in Likert scale, and open ended questions are raised, also observation, face to face questionnaires and online questionnaires are used The data collected are then analyzed in descriptive statistics in table and graphical form The research shows that within eight dimensions of job satisfaction, the work itself, the amicable and supportive interpersonal relations, safe and convenient working conditions, job security, and supervision are factors that satisfy the staff 10 On the other hand, the working condition (company software), recognition (KPI and performance appraisal process), salary scheme, interpersonal relations (working SOP), advancement and growth factors still have outstanding shortcomings and needs improvement and more attention from management To enhance the job satisfaction, the thesis contributes several recommendations including: (1) for working condition, particularly company software in terms of user manuals and rules in creating item code, BOM, PO, material allocation, order closing should be complied strictly; (2) in recognition, KPI and goals setting in both work output and managerial competences, people involved in performance appraisal, job rank should be reviewed and revised; (3) pay level, distribution and salary increase scheme should be taken into account to be more competitive, and have a clearer commitment to staff; (4) for interpersonal relations, working SOP should have more innovation to foresee and solve the job conflict; (5) advancement and growth should be stick with the job rank and job requirement, and give more chances for staff to develop themselves in both working and managerial competences 24 Thibaut, J and Walker, L (1975), Procedural Justice: A Psychological Analysis, Lawrence Erlbaum Associates, Hillsdale, NJ 25 Thrun, M.M, (2014), Factors affecting job satisfaction and nurse retention, Journal of nursing management, page 64-67 26 Vroom, V.H (1964), Work and motivation, John Wiley and Sons, New York, p.99 27 Wong, C.S., Hui, C and Law, K.S (1998), “A longitudinal study of the job perception-job satisfaction relationship: A test of the three alternative specifications”, Journal of Occupational and Organizational Psychology”, Vol 71, page 127- 146 28 Yunhong Hao et al, (2014), The relationship between organizational justice and job satisfaction- Evidence from China, Emerald APPENDICES A1 SURVEY ON JOB SATISFACTION OF EMPLOYEES AT SALES DEPARTMENT OF GARMENT 10 CORPORATION, JSC Hi, I am Bui Phuong Thao who is doing a research on the topic “Job satisfaction of employees at sales department of Garment 10 Corporation” Please help to fill in your answer to below questions Your answer will be used for research purpose only Thanks for your time Part 1: General information Age group A 22-26 years old B 26-30 years old Distance from home to workplace C 30-35 years old D More than 35 years old A 1-10 km B 10-20 km C More than 20 km Year of experience in garment industry A Less than years B 3-5 years Gender C 5-10 years A Male B Female Education level A University Degree B Post Graduate Degree D More than 10 years Part 2: Employee satisfaction Question Work goals & objectives are SMART, KPI are set clearly, reasonably and fairly Objectives and KPI Expectation are communicated between me and my supervisor and can be used as a fair performance standard and Satisfaction performance appraisal My job outcome can be recognized, evaluated Expectation accurately by superior, colleague, subordinate and Satisfaction clients I am satisfied with the appreciation, financial and Expectation nonfinancial management reward system provided by Satisfaction Expectation I find my job important and meaningful Satisfaction My job requires variable knowledge and skills to Expectation complete variable tasks, challenging and provide me the opportunities to increase my creativity and Satisfaction ability I am satisfied with company chances for promotion, Expectation and I see a clear path to advance my career in my Satisfaction company My abilities and skills are enhanced through Expectation learning on the job, adequate training courses or job Satisfaction project I receive the right amount of responsibility Expectation delegation, support and guidance from my direct supervisor and confident in the leadership team's competences My leader are positive role models, provide me continuous feedback to help me complete job, value my opinion and treat me with trust and fairly respect 10 I am happy with the pay level and paid fairly for my 1: Strongly disagree 5: Strongly agree 4 4 4 4 4 4 4 4 4 5 5 5 5 5 5 5 Satisfaction Expectation Satisfaction Expectation contribution, bonus and incentives are given Satisfaction adequately, timely, competitively with the industry 11 I find my relationship with my employer and Expectation colleague is smooth, I receive adequate support and Satisfaction information from team and other department 12 Job description and responsibilities of each team Expectation member/ department are clear and job conflict is Satisfaction rarely 13 I feel my job is secured as the company business is Expectation stable Satisfaction 4 4 4 4 4 5 5 5 14 The physical working condition is safe, convenient, Expectation and not observe or experience any of the Satisfaction discrimination in the company 15 I have material, resource and/or equipment to Expectation 5 my job well, company hardware and software Satisfaction system can support me well in work From to 16 Overall satisfaction 10 Part 3: In depth interview: 3.1 Please list out at least factors of this job that satisfy you most and why? 3.2 Base on your rating in part 2, please list out at least factors that you think should have improvement to raise your satisfaction level with this job and why? A2 SURVEY RESULT ON JOB SATISFACTION OF EMPLOYEES AT SALES DEPARTMENT OF GARMENT 10 CORPORATION, JSC Part 1: General information Age group Number of respondents 22-26 26-30 30-35 More than 35 years old years old 20 years old 27 years old 11 Distance from home to workplace Number of respondents 1-10 km 63 10-20 km More than 20 km Year of experience in garment industry Less than Number of respondents years 18 3-5 years 5-10 years 15 23 More than 10 years 10 Gender Number of respondents Male Female 17 49 Education level Number of respondents University Degree Post graduate Degree 63 Part 2: Employee satisfaction From 1: Strongly disagree to 5: Strongly Agree Number of respondent Work goals & objectives are SMART, KPI are set clearly, reasonably and fairly Objectives and KPI are communicated between me and my supervisor and can be used as a fair performance standard and performance appraisal My job outcome can be recognized, evaluated accurately by superior, colleague, subordinate and clients I am satisfied with the appreciation, financial and nonfinancial reward system provided by management Expectation Satisfaction 25 Expectation Satisfaction Expectation Satisfaction Expectation I find my job important and meaningful Satisfaction My job requires variable knowledge and Expectation skills to complete variable tasks, challenging and provide me the opportunities to increase my creativity and ability I am satisfied with company chances for promotion, and I see a clear path to advance my career in my company My abilities and skills are enhanced through learning on the job, adequate training courses or job project I receive the right amount of responsibility delegation, support and guidance from my direct supervisor and confident in the leadership team's competences My leader are positive role models, provide me continuous feedback to help me complete job, value my opinion and treat me with trust and fairly respect 11 I am happy with the pay level and paid fairly for my contribution, bonus and incentives are given adequately, timely, competitively with the industry 13 I find my relationship with my employer and colleague is smooth, I receive adequate 52 14 39 45 21 54 55 11 14 51 47 58 54 19 12 Satisfaction 57 Expectation 51 14 22 43 Satisfaction Expectation Satisfaction 53 30 Expectation Satisfaction 63 56 10 64 49 17 10 54 50 49 16 17 Expectation Expectation Satisfaction Expectation Satisfaction 33 61 Satisfaction 13 support and information from team and other 15 Job description and responsibilities of each team member/ department are clear and job conflict is rarely 17 I feel my job is secured as the company business is stable 19 The physical working condition is safe, convenient, and not observe or experience any of the discrimination in the company 21 I have material, resource and/or equipment to my job well, company hardware and software system can support me well in work 23 Overall satisfaction (from to 10 scale) Expectation Satisfaction 45 35 21 29 Expectation Satisfaction Expectation 54 12 58 56 10 Satisfaction 57 Expectation 50 16 Satisfaction 30 36 7: 20 respondents 8: 42 respondents 9: respondents Part 3: In depth interview: 3.1 Please list out at least factors of this job that satisfy you most and why? - Supervisor is experienced and instruct me a lot during my work Friendly working environment, Harmonious and empathized manager Nice co-worker Plenty of team building, outdoor activities Good welfare from department at all occasions (birthday, Tet holiday, mid-autumn, - Independence day…) The job and company business are secured My income is stable and moderate in this area Near my house The job is challenging and my ability can be used Can use my English and knowledge in international business, supply chain field My opinions are listened and encouraged by management team 3.2 Base on your rating in part 2, please list out at least factors that you think should have improvement to raise your satisfaction level with this job and why? - Year end appraisal should not involve team member of other customer brands - KPI is not close to actual performance and can not rate accurately, need to create - new KPI for each team/ job position KPI is subjective Year end rewards are incorrect based on all staff opinion Lack of training courses, need more courses for garment details Need more courses for professional work etiquette Need training for customer service (writing emails, problem solving, updating to - customer…) Need more promotion opportunities and clearer career path Job projects are limited Salary is lower than competitor Salary increase plan is little and not clear Want salary to be distributed more evenly by month Ambiguous SOP, time consuming Lack of report from company software due to weak user compliance to company software (item code creation) ... Study results on job satisfaction of employees in sales department of Garment 10 Corporation, JSC Chapter 4: Recommendations to enhance job satisfaction of Garco10 Sales department employees 16 CHAPTER... CHAPTER JOB SATISFACTION OF EMPLOYEES IN SALES DEPARTMENT OF GARMENT 10 CORPORATION, JSC 3.1 Introduction to Garment 10 Corporation, JSC Being a member of Vietnam National Textile and Garment. .. determinants of job satisfaction, the research model of the job satisfaction of employees at Sales Department of Garment 10 Corporation will be as below, with eight major determinants to job satisfaction