INTRODUCTION
Research background
Overview the garment industry of Vietnam:
Vietnam's textile and garment sector has experienced rapid and sustainable growth, significantly contributing to the nation's socio-economic development With an annual employment rate of 2.2 million people, the industry plays a crucial role in providing income for workers In recent years, it has ranked second in the country's total export revenue, generating substantial foreign exchange and making a significant impact on Vietnam's gross national product and budget.
The Vietnam textile industry is characterized by a lack of concentration in its labor force, with over 70% of textile enterprises classified as small and medium-sized, each employing fewer than 300 workers Additionally, nearly 20% of these enterprises have a workforce ranging from 300 to 500 employees.
1000 workers, the factories have 1000 workers now come up only 6% With such dispersion, if not linked to the training activities will be difficult to implement efficiently.
The textile industry has seen a rapid increase in its workforce, primarily within non-state enterprises and companies with 100% foreign capital, which now employ two-thirds of sector workers However, many of these businesses focus on attracting new labor rather than retaining existing employees, leading to heightened competition for workers and significant dissatisfaction among staff This dissatisfaction is compounded by the industry's swift demand for labor, resulting in a critical shortage of skilled workers at both professional and management levels To remain competitive in the market, it is essential for the industry to understand the characteristics of its labor force and adapt to new challenges effectively.
This study is to identify the factors make workers feel satisfaction and perform their work better then can affect to the economic and social development of countries involved.
Research problem
Job satisfaction plays a crucial role in organizational success, making it essential to understand what factors contribute to employee contentment This research project aims to explore the various elements that influence how satisfied workers feel in their jobs.
Job satisfaction is crucial for every employee, as individuals spend over a third of their waking hours at work If workers are unhappy in their jobs, it can negatively impact their personal lives as well Those who experience job satisfaction tend to be more enthusiastic and engaged in their responsibilities, ultimately enhancing their efficiency and productivity.
Job satisfaction is a key motivator that fosters optimism in the workplace, enabling employees to tackle challenges effectively When individuals are content with their careers, they are more likely to perform at their best, contributing to a positive work environment Moreover, satisfied employees can uplift the morale of their colleagues, inspiring a collective sense of optimism and engagement in their jobs.
Job satisfaction significantly influences labor market behavior, impacting productivity, employee effort, absenteeism, and turnover rates Experts assert that it serves as a strong indicator of individual well-being and is a reliable predictor of employees' intentions to leave their jobs.
Job satisfaction plays a crucial role in daily life, extending beyond academic research and studies The impact of organizations on their employees is significant, influencing their overall feelings and well-being.
Job quality metrics are effective indicators of future labor market trends, influencing workers' decisions regarding employment Factors such as whether to accept a job, remain in a position, or exert effort at work are significantly shaped by an individual's subjective assessment of their job satisfaction (Clark, 1998).
This research aims to examine the impact of unions on job satisfaction, focusing on the mediating roles of compensation, supervisor relationships, feedback, and the working environment In certain countries, there are concerns about the effectiveness of unions; it is speculated that if clothing factory workers had the freedom to choose their own unions and were educated about union functions, their satisfaction with the garment workers' union might be questionable (Chetty, 1983).
Research objective
- To determine factors influence worker satisfaction in garment companies
- To determine the moderating impact of union to the relationship of worker‟s job satisfaction to direct and indirect compensation, working environment, relationship with supervisor and feedback.
Scope
- Subject: workers in the garment factories in Vietnam
Significant of study (Research contribution)
- For management of factories to make decision in human resource management, creating appropriate decisions in managing, in order to increase productivities and employees‟ motivation level
- For Union to structure and operate effectively to satisfy their union members
- Theoretical contribution: understand the moderating role of union
Organization (Structure)
This study includes five chapters below:
Chapter 2 – Literature review: this chapter includes Definition of job satisfaction, theories of satisfaction, previous researches and identifying significant satisfaction factors in this paper Chapter 3 – Research method: this chapter consists research process, measurement scale, the pilot test and the main research which was conducted.
Chapter 4 – Data analysis: this chapter describes how each measurement scale was evaluated and the result of testing hypothesis It consists of sample description, measurement scale data analysis, regression analysis and evaluating the impact of personal characteristic on employee motivation.
Chapter 5 – Conclusion and Recommendation: this chapter presents brief description about research findings and some of implications has mentioned In the end, research limitation and recommendations for future research have presented as well.
LITERATURE REVIEW
Concept and Definition
Job satisfaction is the emotional response employees have towards their jobs, which can range from negative to positive According to Edwards et al (2008), it involves an evaluative judgment reflecting the pleasure derived from work, encompassing both affective and cognitive aspects Aamodt (2009) further defines it as the overall attitude an employee holds towards their job.
Employee satisfaction is significantly influenced by their abilities and opportunities (2007) Herzberg et al (1959) introduced the two-factor theory, distinguishing between satisfaction and dissatisfaction as separate phenomena Intrinsic motivators, such as achievement, recognition, and responsibility, contribute to job satisfaction, while extrinsic hygiene factors, including company policy and working conditions, can lead to dissatisfaction Herzberg and Mausner's Motivation-Hygiene theory has been pivotal in understanding job satisfaction and has informed various assessment models Ultimately, job satisfaction reflects a positive evaluation of one’s work, characterized by a favorable emotional state resulting from job experiences (Locke, 1976; Spector, 1994).
Direct financial compensation involves offering individuals monetary payments or valuable items in exchange for their services, products, or to cover expenses related to injuries they have sustained.
Kinds of financial compensation include:
- Damages, legal term for the financial compensation recoverable by reason of another's breach of duty
- Nationalization compensation, compensation paid in the event of nationalization of property
- Remuneration: Deferred compensation, Executive compensation, Royalties, Salary, Wage
- Workers' compensation, to protect employees who have incurred work-related injuries
Essays, UK (November 2013) Direct And Indirect Compensation Managing Human Capital Business Essay.
Indirect compensation encompasses both financial and non-financial rewards that employees receive for their ongoing employment, playing a crucial role in overall employee compensation This concept is often referred to by various terms, including fringe benefits, employee services, supplementary compensation, and supplementary pay.
Indirect compensation, as defined by Armstrong (2009), encompasses employee benefits that go beyond cash pay, including non-monetary elements like annual holidays Management employs these benefits strategically to enhance recruitment efforts, foster employee retention, and cultivate commitment Additionally, a well-structured benefits program can boost morale, reduce absenteeism, and strengthen the organization overall (Noe et al., 1996).
Indirect or Supplementary Compensation, often referred to as 'fringe benefits,' includes various employee services such as housing, subsidized food, medical aid, and childcare, as noted by Chhabra (2001) These rewards are provided by organizations to acknowledge employee membership, attendance, or participation With fringe benefits now constituting nearly 40% of total employee compensation costs, they are sometimes termed 'hidden payroll.' The primary aim of these benefits is to attract and retain skilled human resources while also motivating employees within the organization.
Some popular indirect compensation offered by today‟s organizations (Byars and Rue 2008): Social Security, Workers‟ Compensation, Retirement Plans, Paid Holidays, Paid Vacations, Other Benefits.
The work environment, as defined by the business dictionary, refers to the location where tasks are performed, encompassing both the physical geographical site and its immediate surroundings, such as an office building or construction site Key factors influencing this environment include air quality, noise levels, and employee benefits like free childcare, unlimited coffee, or convenient parking Additionally, the cultural aspect of the workplace, whether creative or conventional, plays a crucial role in shaping staff productivity.
According to Heath (2006), the primary objective of business organizations is to enhance productivity, reduce production costs, and maximize profits However, many organizations invest minimal effort in improving productivity, mistakenly believing that higher salaries and timely raises are sufficient motivators for employees In reality, various factors influence employee performance, with the workplace environment being a significant contributor to motivation and overall effectiveness.
Research by Herold and Parsons (1985) and Becker and Klimoski (1989) indicates that employees in organizations have access to more information than just isolated performance feedback The feedback environment significantly influences how employees seek, receive, process, accept, and utilize feedback messages Thus, gaining a deeper understanding of the feedback environment is essential for enhancing feedback processes and improving interventions within organizations (Frederik Anseel, Filip Lievens, 2007, p 3).
According to Buckingham and Coffman (1999), managers play a crucial role in fostering employee commitment by demonstrating effective communication skills and providing positive feedback to help employees develop their strengths and address weaknesses Research by Buckingham and Coffman (1999), Kaye and Jordan-Evans (1999), Kreisman (2002), and Herman (1999) highlights that one of the primary reasons employees resign is due to poor relationships with their managers Therefore, the management style of supervisors is significant in motivating employees and enhancing organizational commitment.
According to Adam's equity theory, effective managerial approaches include treating staff fairly and fostering open communication regarding employee inputs and outputs to prevent dissatisfaction Managers play a crucial role as moderators between individual efforts and goals through recognition; if employees feel their efforts are unrecognized, they may reduce their effort or consider leaving the job.
A trade union is an organized association of workers formed to protect and advance their rights and interests within a specific trade or profession According to Bryson and Freeman (2006), union membership offers various benefits to workers, serving as a continuous collective of wage earners dedicated to improving their working conditions Dale Yoder further defines a trade union as a long-term organization established to safeguard and promote the interests of its members in their employment relationships.
He quotes: “A trade union is a continuous association of workers which is formed with the purpose of protecting the interests of workers.”
A labor union, as defined by Flippo, is an organization of workers established to advocate for and enhance the social, economic, and political interests of its members through collective action.
Essays, UK (November 2013) Features Of Trade Unions Management Essay
Model and Theories
Three predominant theories of job satisfaction include affect theory (Edwin a Locke‟s), Herzberg, Mausner, & Snyderman, 1959) motivation-hygiene theory
Edwin A Locke‟s Range of Affect Theory (1976) is arguably the most famous job satisfaction model The main premise of this theory is that satisfaction is determined by a discrepancy
The relationship between job expectations and satisfaction is influenced by the value an individual places on specific job facets, such as autonomy According to the theory, when employees highly value a particular aspect of their job, their satisfaction is significantly affected by whether their expectations are met For instance, Employee A, who values autonomy, will experience greater satisfaction in a role that offers it compared to Employee B, who is indifferent to autonomy Conversely, if Employee A's expectations for autonomy are not met, their dissatisfaction will be more pronounced than that of Employee B Furthermore, the theory suggests that excessive presence of a valued facet can lead to heightened dissatisfaction, emphasizing the importance of balance in job attributes.
Equity Theory, developed by John Stacey Adams in 1963, explores how individuals perceive fairness in social relationships, particularly in the context of employer-employee dynamics It posits that people assess their input/output ratio—comparing what they contribute to what they receive—and evaluate this ratio against that of others When individuals perceive an imbalance in this ratio between themselves and others, it can lead to feelings of distress, as the perceived inequality disrupts their sense of fairness in the relationship.
In a workplace where two employees perform identical roles with equal pay and benefits, disparities in compensation can lead to distress If one employee receives a pay raise without additional responsibilities, it can create feelings of inequity for the other However, if the pay increase is accompanied by new responsibilities, the sense of fairness is preserved, fostering a healthier work environment.
2.2.3 Two-factor theory (motivator-hygiene theory)
Frederick Herzberg's two-factor theory, or motivator-hygiene theory, explores the distinct elements that influence employee satisfaction and motivation in the workplace According to this theory, satisfaction arises from motivators, while dissatisfaction is linked to hygiene factors, highlighting that these two aspects are driven by different influences.
Employee motivation is closely linked to job satisfaction, as it acts as an inner drive that encourages individuals to pursue both personal and organizational objectives Key motivating factors, such as achievement, recognition, and opportunities for promotion, contribute to an employee's desire to perform well and derive satisfaction from their work These factors are intrinsic to the job itself, while hygiene factors, including salary, company policies, supervisory practices, and overall working conditions, play a crucial role in shaping the work environment.
Herzberg's model has inspired extensive research; however, empirical validation remains elusive, with Hackman and Oldham proposing that the original formulation may be a methodological artifact Additionally, the theory overlooks individual differences, assuming uniform reactions among employees to changes in motivating and hygiene factors Critics also highlight the model's failure to define how these factors should be measured.
Herzberg's theory distinguishes between factors that lead to job satisfaction and those that cause job dissatisfaction Hygiene factors, such as quality of supervision, pay, company policies, physical working conditions, relationships with others, and job security, can prevent dissatisfaction but do not contribute to satisfaction To effectively motivate employees, organizations should focus on intrinsic factors related to the work itself, including promotional opportunities, personal growth, recognition, responsibility, and achievement, as these elements are what individuals find truly rewarding.
The Job Characteristics Model, proposed by Hackman & Oldham, serves as a crucial framework for examining how specific job characteristics influence job outcomes, particularly job satisfaction This model identifies five core job characteristics: skill variety, task identity, task significance, autonomy, and feedback, which affect three essential psychological states—experienced meaningfulness, experienced responsibility for outcomes, and knowledge of actual results These psychological states, in turn, influence work outcomes such as job satisfaction, absenteeism, work motivation, and performance By calculating a motivating potential score (MPS) based on these characteristics, organizations can gauge how likely a job is to impact employee attitudes and behaviors Notably, individuals with high growth need strength—those seeking autonomy, challenges, and skill development—are more significantly influenced by these job characteristics A meta-analysis of relevant studies lends support to the validity of the Job Characteristics Model.
Previous researches about job satisfaction for worker in garment industry
The satisfaction theories explored in this research are applied in subsequent studies to identify the factors influencing employee satisfaction in specific contexts A review of studies in the general and garment sectors reveals four key motivational factors frequently cited These factors will serve as the foundation for hypotheses aimed at assessing their impact on worker satisfaction in Southern Vietnam Chetty (1983) formulated two hypotheses, suggesting that a spillover effect may link job dissatisfaction experienced by married women employed in the clothing industry in India.
In India, the level of dissatisfaction among married women is closely linked to their interpersonal relationships within the family Chetty (1983) identified several factors influencing job satisfaction, including work group dynamics, job content, supervision quality, compensation, decision-making influence, working conditions, trade union involvement, bureaucratic structures, and personal variables.
Job satisfaction is influenced by various factors, including wages, supervisory relationships, working conditions, and social interactions at work Additionally, the prompt resolution of grievances and fair treatment by employers play a crucial role Other contributing elements include an employee's age, health, aspirations, family relationships, social status, recreational activities, and involvement in organizations, all of which ultimately enhance job satisfaction.
High job turnover and social unrest can be attributed to factors such as excessive workloads, ineffective line management, low skill levels, and inadequate wages A significant source of conflict arises from poor relationships between workers and their supervisors Research by Chowdhury Golam Hossan (2012) highlights the increasing demand for work-life balance among employees, while also addressing the impact of trade unions, labor rights, and the challenging dynamics with first-line supervisors Key issues include the need for self-respect, participation, job turnover, absenteeism, and the overall efficiency and productivity of workers, which contribute to recent unrest in the sector.
Conceptual model frame work and Hypothesis
H1: There is a positive affecting between Direct Compensation and Job Satisfaction
Compensation is rapidly evolving within Human Resources as companies explore diverse methods to enhance employee job satisfaction and performance It encompasses all financial returns and tangible benefits employees receive, including wages, salary structures, merit-based programs, bonuses, commissions, and incentive plans According to a Society for Human Resources Management report, job dissatisfaction can lead to significant organizational issues, including higher turnover and absenteeism, ultimately impacting performance and productivity Therefore, employers must establish a fair and equitable compensation and benefits system to foster genuine job satisfaction and motivate their workforce.
H2: There is a positive affecting between indirect compensation and Job Satisfaction
Indirect compensation significantly influences job satisfaction alongside direct compensation Direct compensation encompasses all financial rewards and intangible benefits that employees receive through their employment, including aspects such as insurance, retirement plans, and annual paid leave.
H3: There is a positive affecting between Working environment and Job Satisfaction
According to Heath (2006), the primary objective of business organizations is to enhance productivity, reduce production costs, and maximize profits However, many organizations invest minimal effort in boosting productivity, often mistakenly believing that high salaries and timely raises are sufficient In reality, various factors influence employee performance, with the workplace environment being a significant contributor to employee motivation and overall effectiveness.
H4: There is a positive affecting between Relationship with Supervisor and Job Satisfaction
The relationship between supervisors and employees significantly impacts job satisfaction and organizational performance, prompting extensive research on this topic (Petersitzke 2008, p33) In workplace environments, the dynamics of this relationship play a crucial role in shaping employee performance, as an employee's feelings about their job directly influence their work output (Hosie et al 2006, p44) Employees who are dissatisfied often experience a lack of enjoyment in their roles (Callaway) Therefore, the interactions between supervisors and workers are vital for fostering a positive work atmosphere.
H5: There is a positive affecting between Feedback and Job Satisfaction
The feedback environment significantly influences how employees seek, receive, process, accept, and utilize feedback messages Understanding this environment is essential for gaining insights into the feedback process and enhancing feedback interventions within organizations.
H6: There is a moderator effect on effectiveness of union to job satisfaction
Unions play a crucial role in influencing various aspects of the workplace, including direct and indirect compensation, the working environment, feedback mechanisms, supervisor relationships, and overall job satisfaction The effectiveness of a union can significantly enhance employee satisfaction and contribute to a more positive work experience.
RESEARCH METHOD
Research Design
This research employed a quantitative approach, focusing on objective measurements and numerical analysis of data obtained through structured tools like polls, questionnaires, or surveys By gathering numerical data from larger, representative sample sizes, the study aims to generalize findings across diverse groups The research is designed with a clearly defined question, ensuring high reliability and the potential for replication Data collected is primarily in the form of statistics, allowing for broader concept generalization, future predictions, and the investigation of causal relationships.
Measurement and Questionnaire design
Questionnaire was designed and modify from previous studies These question were borrowed from some previous research and some of them are developed by myself
There were four questions for direct compensation which was adopted from Cheety (1983) except CPS1 was developed by myself:
DCS1: Presence of salary that makes me feel reasonable
DCS2: Current income presence of attractive and competitive compensation system
DCS3: My company has transparent and equitable policy of salary
DCS4: Presence of salary that enough for expense
There were five questions for indirect compensation which was adopted from Mensah (2012) and ICS2, ICS5 was developed by myself
I am pleased with the additional compensation provided by my company, including benefits such as health insurance, annual leave, and travel allowances I also appreciate that the company covers social and health insurance for its employees, contributing to overall job satisfaction.
ICS4: I can get the paid absences when I take leave
ICS5: My company well complies the other benefit for insurance, annual leave…
There were five questions for working environment which was adopted from Nguyen (2011) and WKE2 was developed by myself:
WKE1: In my workplace, staff is equipped and provided enough equipment for doing their work
WKE2: The physical working condition in this factory (lightning, toilet, safety measure ) are good
WKE3: My workplace is safety and convenience
WKE4: I receive support from colleagues so much
WKE5: Relationships between colleagues at my workplace are friendly and relaxed
There were four questions for Relationship with supervisors which was adopted from Smith, et al (1996).
RWS1: My supervisor welcome suggestion
RWS2: I am received enough instructions to do job well
RWS3: Supervisor treats everyone equitably
RWS4: Supervisor willing and able to help out.
There were four questions for Feedback was adopted from Norris-Watts & Levy (2004), Smith
(1996) and FEB5 was developed by myself:
FEB1: My supervisor gives me useful feedback about my job performance
FEB2: My supervisor is usually available when I want performance information
FEB3: I feel comfortable asking my supervisor for feedback about my performance
FEB4: I receive the constructive feedback from the others
FEB5: I feel easy to raise and receive feedback to the others
There are five questions for Union UNI1, UNI2 were adopted from Chetty (1983) and UNI3, UNI4, UNI5 were developed by myself to measure effectiveness of union better.
UNI1: The union does a lot for workers
UNI2: I think the union protects workers’ right
UNI3: Union in my company is working well and effective
UNI4: I always get the supporting from union on issues related to work and benefit
UNI5: I can get the share ideas or get advice from others union members
There were four questions for Job satisfaction:
JSF1: I am satisfied with my job
JSF2: I am satisfied with what I achieve at work
JSF3: I am happy with my work
The official questionnaires were initially created in English and subsequently translated into Vietnamese to ensure clarity The research employed a five-level Likert scale, utilizing a standard format for the Likert items.
Data collection method
The primary data will be collected through questionnaires which sent directly at factories or via emails The secondary data sources from books, articles, newspaper, business magazines and websites.
Sample size: Hair et al (1994) pointed out the minimum sample size is equal or larger 5 time of variables This study has 31 variables so the minimum sample size is: n= 32 x 5 = 160
The data were collected by delivering the questionnaire sheet to workers at factories.
Descriptive statistics offer clear and concise summaries of sample data and observations, utilizing both quantitative measures, such as summary statistics, and visual aids, like easy-to-understand graphs These summaries can serve as the foundation for a more comprehensive statistical analysis or may stand alone as sufficient for specific investigations.
This research utilized Cronbach's Alpha and exploratory analysis to evaluate the reliability and validity of measurement scales Items with low item-total correlations (below 0.4) were discarded using Cronbach's Alpha, and a measure was deemed acceptable if it achieved a Cronbach's Alpha of 0.6 or higher, as recommended by Nunnally and Bernstein (1994).
Cronbach's alpha, a widely used reliability statistic introduced by Cronbach in 1951, assesses the internal consistency of survey instruments by measuring the average correlation among items For a measurement to be deemed reliable, it should have a Cronbach's alpha coefficient exceeding 0.6, alongside a Corrected Item-Total Correlation greater than 0.4 When these criteria are met, the factors can be utilized in Exploratory Factor Analysis (EFA).
Exploratory Factor Analysis (EFA) is a statistical technique designed to reveal the underlying structure of a large set of variables, primarily used by researchers to develop scales for measuring specific research topics EFA identifies latent constructs that explain the relationships among measured variables, which are observable attributes such as physical height This method is particularly valuable when researchers lack prior hypotheses about the factors or patterns among the variables To enhance the accuracy of EFA, it is crucial to include multiple measured variables per factor, ideally ranging from three to five, ensuring a robust analysis.
Exploratory Factor Analysis (EFA) utilizes the common factor model, which represents measured variables through a combination of common factors, unique factors, and measurement errors In this model, common factors impact two or more measured variables, whereas unique factors are specific to individual measured variables and do not account for the correlations observed among them.
Regression analysis is a statistical method used to assess the impact of independent variables on a dependent variable By incorporating weighted regressions to adjust for sampling probabilities and utilizing a robust variance estimator to address repeated observations, this analysis effectively measures the correlation and predictive power of multiple independent variables Specifically, multiple linear regression is employed to evaluate the relationships within a conceptual model and test its hypotheses.
According to Pallant (2005), the summaries of Multi Regression Analysis are:
- No outliers are used in this case, no significant impact of outlier.
- Normality and linearity should be existed.
Moderator can be tested by following the above steps using the regular linear regression menu item in SPSS, or more conveniently using a special process developed by Andrew F Hayes.
DATA ANALYSIS
Descriptive statistics of sample
A total of 220 workers from garment factories in Ho Chi Minh, Dong Nai, Binh Duong, Long An, Tay Ninh, Ha Noi, Vinh Phuc, Bac Giang, and Hai Phong participated in the study by completing questionnaires Out of the 220 questionnaires distributed, 204 were deemed qualified for data analysis, resulting in a high usable response rate of 92.7%.
As the summary table below, the characteristic for respondent can be summary
Gender: The majority worker in garment industry is female Female worker percentage was 67% compared to male worker percentage is 33%
Age: Labor force in garment industry was quite young
The labor force in the garment industry primarily consists of individuals who have completed junior and senior high school education However, salaries in this sector remain low, typically ranging from 3 million VND to 5 million VND.
China and Korea have captured a significant market share in the garment industry This survey was conducted across various provinces in both North and South Vietnam, including Ha Noi, Bac Giang, Hai Phong, Ho Chi Minh, Dong Nai, Binh Duong, Long An, and Vinh Phuc.
Numbers of workers: The factory size was diversified and more than 50% percent was big company which had more than 2,000 workers
Table 4.1 Descriptive statistics of sample
Junior High School 53 26% Ha Noi 5 2%
Senior High School 137 67% Hai Phong 9 4%
College/University 13 6% Ho Chi Minh 19 9%
Under 500 workers From 500 to 1000 worker from 1001 to 1500 workers Over 2000 workers
The construct measurement scale
This research employed Cronbach's Alpha and exploratory analysis to evaluate the reliability and validity of measurement scales Items with low item-total correlations (below 0.4) were discarded, ensuring the quality of the scale A Cronbach's Alpha value of 0.6 or higher, as suggested by Nunnally and Bernstein (1994), was considered acceptable for selecting the measure.
4.2.1 Cronbach’s Alpha results of each measurement
Cronbach‟s Alpha is 0.892 (>0.6) and all Cronbach‟s Alpha if item deleted are lower than 0.885 so of those items satisfy the criteria so they could put into Exploratory Factor Analysis
Table 4.2 Reliability statistics for direct compensation
Scale Variance if Item Deleted
Cronbach's Alpha if Item Deleted
The reliability analysis reveals that Cronbach's Alpha for the indirect compensation scale is 0.609, indicating acceptable internal consistency However, removing item ICS2 increases the Cronbach's Alpha to 0.733, suggesting that this item negatively impacts the scale's reliability Therefore, it is recommended to exclude item ICS2 when conducting the Exploratory Factor Analysis.
Scale Variance if Item Deleted
Cronbach's Alpha if Item Deleted
The new Reliability Statistic when taking out the item ICS2
Table 4.4 Reliability statistics for indirect compensation (extracted ICS2)
Scale Variance if Item Deleted
Cronbach's Alpha if Item Deleted
Cronbach‟s Alpha is 0.796(>0.6) and and all Cronbach‟s Alpha if item deleted are lower than 0.796 so of those items satisfy the criteria so they could put into Exploratory Factor Analysis
Table 4.5 Reliability statistics for Working Environment
Scale Variance if Item Deleted
Cronbach's Alpha if Item Deleted
Removing item WKE5 has a minimal impact on Cronbach's Alpha, suggesting that its elimination could enhance the reliability of the Factor Dimension analysis.
Cronbach‟s Alpha is 0.879(>0.6) and all Cronbach‟s Alpha if item deleted are lower than 0.879 so of those items satisfy the criteria so they could put into Exploratory Factor Analysis
Table 4.6 Reliability statistics for Relationship with supervisor
Scale Variance if Item Deleted
Cronbach's Alpha if Item Deleted
Cronbach‟s Alpha is 0.783(>0.6) and all Cronbach‟s Alpha if item FEB5 deleted is 0.844 (higher than 0.783) so need to be take out item FEB5 when put into Exploratory Factor Analysis
Table 4.7 Reliability statistics for Feedback
Scale Variance if Item Deleted
Cronbach's Alpha if Item Deleted
The Reliability statistics for Feedback after deleting item FEB5
Scale Variance if Item Deleted
Cronbach's Alpha if Item Deleted
Cronbach‟s Alpha is 0.844(>0.6) and all Cronbach‟s Alpha if item FEB4 deleted is 0.913 (higher than 0.844) so need to be take out item FEB4 when put into Exploratory Factor
The Reliability statistics for Feedback after Deleting item FEB4
Scale Variance if Item Deleted
Cronbach's Alpha if Item Deleted
After running the Reliability statistics testing, the item FEB4 and FEB5 were extracted and we keep 3 item FEB1, FEB2, FEB3 for variable Feedback
The Cronbach's Alpha for the dataset is 0.933, which exceeds the acceptable threshold of 0.6 Additionally, the Cronbach's Alpha values for all items, when deleted, are lower than 0.933, with the exception of item UNI5, which shows a slight increase to 0.934 Therefore, all items will be retained for the Exploratory Factor Analysis.
Table 4.8 Reliability statistics for Union
Scale Variance if Item Deleted
Cronbach's Alpha if Item Deleted
Cronbach‟s Alpha is 0.672(>0.6) and Cronbach‟s Alpha if item JSF2 deleted is 0.718(higher than 0.672) so need to consider to take out item JSF2 when put into Exploratory Factor Analysis.
Table 4.9 Reliability statistics for Job Satisfaction
Scale Variance if Item Deleted
Cronbach's Alpha if Item Deleted
4.2.2.1.EFA for factors affecting to worker’s job satisfaction:
Extraction Method: Principal Component Analysis
Rotation Method: Varimax with Kaiser Normalization. a Rotation converged in 7 iterations.
Table 4.10: KMO and Bartlett‟s test for independent variables
Delete item ICS5, the Component Matrix changes to
Extraction Method: Principal Component Analysis
Rotation Method: Varimax with Kaiser Normalization. a Rotation converged in 7 iterations.
Extraction Method: Principal Component Analysis
Rotation Method: Varimax with Kaiser Normalization. a Rotation converged in 6 iterations.
The result shows we had for the new model with new factors:
1 Relationship with supervisor: FEB1, FEB2, FEB3, RWS1, RWS2, RWS3, RWS4
2 Direct Compensation: DCS1, DCS2, DCS3, DCS4
4 Working environment: WKE1, WKE2, WKE3
5 Relationship with co-worker: WKE4, WKE5
The newly established factors of Relationship with Co-worker (RWC) are derived from key items, including WKE4, which emphasizes the significant support received from colleagues, and WKE5, highlighting the friendly and relaxed relationships among workplace peers.
Adjustment of hypotheses and research model
The EFA results indicate that one of the original six factors has been removed and replaced with a new factor, necessitating an adjustment to the conceptual framework, which now consists of five factors.
H1: There is a positive affecting between Direct Compensation and Job Satisfaction
H2: There is a positive affecting between Indirect Compensation and Job Satisfaction
H3: There is a positive affecting between Working environment and Job Satisfaction
H4: There is a positive affecting between Relationship with Supervisor and Job Satisfaction
H5: There is a positive affecting between Relationship with co-worker and Job Satisfaction
H6: There is a moderating effect of Effectiveness of Union to Job satisfaction
Regression Analysis
DCS RWS RWC ICS WKE JSF
Pearson Correlation DCS Sig (2-tailed)
N Pearson Correlation RWS Sig (2-tailed)
N Pearson Correlation RWC Sig (2-tailed)
N Pearson Correlation ICS Sig (2-tailed)
N Pearson Correlation WKE Sig (2-tailed)
N Pearson Correlation JSF Sig (2-tailed)
** Correlation is significant at the 0.01 level (2-tailed).
The Pearson correlation coefficients revealed significant relationships between job satisfaction and the independent variables of direct compensation, indirect compensation, working environment, and relationships with supervisors and co-workers, with all significance values being 0.000 (p