INTRODUCTION
Research background
Human resource management is essential for modern businesses, significantly influencing organizational success and talent retention It serves as a crucial empathy factor, where employee attitudes directly affect customer satisfaction and perception, ultimately fostering greater customer loyalty and commitment Consequently, human resources are vital in enhancing service quality and ensuring high levels of customer satisfaction.
Employee performance significantly impacts organizational success, particularly in the banking sector Motivation plays a crucial role in driving employees to work consistently, diligently, and flexibly When employees feel motivated, they are more inclined to complete essential tasks effectively Conversely, job dissatisfaction leads to decreased performance and lower contributions Therefore, enhancing employee motivation is essential for improving job performance within the banking industry.
Numerous studies indicate that job performance is influenced by various factors, particularly the quality of work life and organizational commitment Research, including that of Nguyen and others, explores the effects of these elements on employee performance across diverse contexts.
Nguyen(2012),Sirgy, Efraty, Siegel and Dong(2001),Fu and Deshpande (2014).
Accordingly, Mohan and Kanta (2013) showed that quality of work life influences on efficiency and productivity of company Moreover, creating quality of work life will
To enhance employee satisfaction and retention, organizations must prioritize quality of work life, as highlighted by May, Lau, and Johnson (1999), who found that companies with superior work environments have a competitive edge in attracting and keeping top talent Additionally, organizational commitment, defined as an employee's psychological attachment to their workplace (Murthy, 2013; Lamba & Choudhary, 2013), plays a crucial role in fostering longer employee tenures By cultivating a supportive and engaging work culture, organizations can significantly improve their ability to retain skilled staff.
Research Problems
The banking and finance industry has been a cornerstone of the modern economy for centuries, and with the recent advancements in the Vietnamese banking system, the demand for skilled workforce is on the rise However, banks are facing significant challenges related to workforce competency As a result, there is a strong emphasis on developing high-quality employees Job performance is a critical measure of employee success and outcomes (Campbell et al., 1993), making it essential for bank managers to explore the factors influencing employee performance in the Vietnamese banking sector.
This research focuses on explaining job performance by examing the effects oftwo factors which are quality of work life and organizational commitment on job performance.
Work plays a crucial role in our lives, consuming one-third of our daily time and significantly influencing our personal well-being Consequently, the quality of work life is vital for enhancing individual quality of life While numerous studies in North America highlight this importance, the concept has received less attention in Asia, particularly in Vietnam, where research has primarily focused on the marketing sector Therefore, it is essential to explore the relationship between quality of work life and job performance among employees in the Vietnamese banking sector.
The transition of skilled employees from the banking sector to more lucrative industries poses a significant challenge for banks, particularly during tough economic times Retaining experienced and dedicated staff is crucial for navigating difficulties and ensuring a strong commitment to customer service, which ultimately benefits the bank's interests According to Harter, Schmidt, and Hayes (2002), employee commitment is vital for achieving meaningful business outcomes, and in today's competitive landscape, a committed workforce is essential for organizational survival Therefore, it is imperative to investigate the influence of organizational commitment on job performance within the Vietnamese banking sector.
Research Objectives
The objective of this study is to examine the impact of quality of work life and organizational commitment on job performance among employees in the Vietnamese banking sector.
More specifically, three research questions are given as follows:
Question 1: Doesquality of work life affect job performance of employees in the Vietnamese banking sector?
Question 2: Does organizational commitment affect job performance of employees in the Vietnamese banking sector?
Question 3: Doesquality of work life affect organizational commitment of employees in the Vietnamese banking sector?
Scopes of the study
This study focuses on bank employees in Ho Chi Minh City, a major economic hub in Vietnam The research aims to explore various aspects related to this workforce within the vibrant financial landscape of the city.
This research focuses exclusively on the relationship between organizational commitment, quality of working life, and job performance, while excluding other factors that may also influence job performance.
The significane of the study
This research contributes to the understanding of quality of work life and organizational commitment, and their impact on job performance within the context of
Vietnamese business organizations in generally and within Vietnamese banking sector in particularly.
The research highlights the crucial link between employees' quality of work life and their job performance and organizational commitment Consequently, it is essential for business leaders to develop effective work requirements and policies aimed at enhancing employees' quality of work life By doing so, organizations can foster greater commitment and improve overall job performance among their workforce.
Structure of the study
The structure of the study consists five chapters:
This chapter presents research background of the study, as well as, research problems, research objectives, research methodology and scopes.
Chapter 2: Literature Review, Hypotheses, and Research model
This chapter offers a literature review focused on two key constructs: quality of work life and organizational commitment It also outlines the conceptual model and hypotheses of the study, providing a comprehensive understanding of these fundamental ideas.
Research process, measurement scales, questionnaire design, data collection method, sampling design, and data analysis method are presented more details in this chapter.
The survey data has been thoroughly analyzed to construct the final study model The analysis results will guide the examination of the relationships among the factors outlined in the study model.
Chapter 5: Conclusions, Implication, and Limitation
The conclusions of the study summarize the key findings and offer managerial recommendations derived from earlier chapters Additionally, the researcher discusses limitations that may affect the results and outlines potential directions for future research.
LITERATURE REVIEW AND HYPOTHESIS DEVELOPMENT
Theoretical foundations
According to Sirgy et al (2001), the Quality of Work Life (QWL) literature encompasses two primary theoretical approaches: need satisfaction and spillover The need satisfaction approach, rooted in models developed by Maslow, Frager, and Cox (1970), posits that individuals have fundamental needs that can be fulfilled through their jobs Employee satisfaction is directly linked to how well their jobs meet these needs Porter (1961) expanded on this concept by creating a QWL measurement framework based on Maslow's Hierarchy of Needs, aiming to evaluate employees' needs in relation to their work This framework assesses the alignment between organizational resources and employees' experiences, ultimately reflecting the fulfillment of organizational needs.
Maslow’s hierarchy were covered by the Porter (1961) measure, namely survival needs, social needs, ego needs, and self-actualization needs.
The spillover approach to quality of work life, as proposed by Sirgy et al (2001), suggests that satisfaction in one area of life can significantly impact satisfaction in other areas For instance, job satisfaction can enhance feelings of fulfillment in various life domains, including family, leisure, social interactions, health, and financial well-being.
Organizational commitment refers to an employee's loyalty and emotional attachment to their workplace This article examines the key theories of organizational commitment from the 1960s to the present, highlighting its evolution and significance in the modern work environment.
The side-bet theory, introduced by Becker in 1960, highlights the investments individuals make within their organizations, such as time, effort, and money, which become valuable assets that could be lost if they leave Meyer and Allen (1990) emphasize that these investments can lead to significant costs for employees, deterring them from changing jobs Over time, as these costs accumulate, individuals may hesitate to pursue new opportunities due to concerns about losing benefits like pension funds, seniority, and established relationships within their current company.
Becker (1960) established a significant link between organizational commitment and employees' voluntary turnover behavior, emphasizing that commitment should be assessed by identifying the reasons that may lead an individual to leave their organization His framework and measurement scales have been widely adopted in subsequent research to conceptualize and analyze commitment to both the organization and the occupation.
Meyer and Allen's Scale (1991) highlights the impact of the side-bet approach, specifically focusing on continuance commitment This scale serves as an effective tool for assessing the side-bet approach and is one of the three key dimensions of organizational commitment identified by Meyer and Allen.
Meyer and Allen (1984) challenged the operationalization of the side-bet approach, arguing that Becker's (1960) scales primarily measure attitudinal commitment rather than actual side-bets They suggested that a more effective method for measuring side-bets would involve directly assessing individuals' perceptions of the number and significance of their side-bets To validate this, they analyzed the relationships between various commitment scales and introduced two new scales: Affective commitment and Continuance commitment Meyer and Allen posited that the Continuance dimension more accurately reflects Becker's side-bet approach, focusing on the costs employees associate with leaving their organizations.
A few years later, a third dimension was added, the normative commitment (Allen
Normative commitment refers to the sense of obligation employees feel to stay with their organization Those with strong normative commitment believe they should remain with the company due to a sense of duty This type of commitment is primarily influenced by socialization and cultural factors experienced before joining the organization.
Overview on job performance, quality of work life and organizational commitment
Borman and Motowidlo (1993) define job performance as the work-related behaviors that can be quantified by an individual's contribution to achieving organizational goals, ultimately assessing how effectively a person performs their job.
Job performance is a critical factor that reflects an organization's goals and the means to achieve them, as noted by Razek (2011) It represents the efficiency of specialists and the expected achievements of the organization Essentially, it encompasses the efforts made by employees to reach specific objectives, with actual results serving as an objective measure of the company's desired outcomes.
Job performance is defined as the extent to which employees' behaviors contribute to organizational goals (Daniel & Harris, 2000) It encompasses an employee's ability to effectively complete assigned tasks within an organizational context (Arverty & Murphy, 1998).
Briefly, job performance indicates the effectiveness of employee’s specific actions that contribute to attain organizational goals.
Ever since the concept of quality of work life (QWL) was first used over 30 years ago there are some different definitions of QWL (Martel &Dupuis, 2006) Feldman
Quality of Work Life (QWL) refers to the relationship between employees and their overall working environment, as defined by 1993 Originating in the 1960s, Bowditch and Buono (2005) describe QWL as an organization's focus on the health and well-being of employees, ensuring they feel satisfied and happy at work while enhancing their on-the-job experiences.
Kashani (2012) highlights that numerous organizations are increasingly evaluating the quality of work life for their employees by actively involving them in the assessment process This engagement allows employees to share crucial insights on enhancing human resource management and policies, ultimately aiming to improve their work experience Additionally, the study emphasizes the significance of the working environment on employee well-being, their participation in problem-solving, and the implementation of reward mechanisms to boost motivation.
According to Mohan and Kanta (2013), the quality of work life refers to creating favorable working conditions that enable employees to perform at their best A motivating workplace fosters a positive attitude among staff towards their jobs and the organization as a whole.
Quality of work life refers to the overall wellbeing of employees and their satisfaction with various needs, which is achieved through the resources, activities, and outcomes associated with their participation in the workplace (Sirgy et al., 2001).
The concept of quality of life, as explored by Sirgy et al (2001), is rooted in the need theories of Maslow, Frager, and Cox (1970), along with spillover theories Porter (1961) identified four categories of needs based on Maslow's hierarchy, encompassing seven specific needs: survival, social, ego, and self-actualization needs.
The concept of quality of work life has evolved to encompass seven key needs: health and safety, economic and family stability, social connections, esteem, self-actualization, knowledge acquisition, and aesthetic appreciation (Nguyen & Nguyen, 2010).
In a recent study by Nguyen and Nguyen (2010), the concept of "Survival needs" encompasses the fulfillment of health, safety, economic, and family needs The term "Belonging needs" refers to the satisfaction of social and esteem needs, while "Knowledge needs" addresses the fulfillment of actualization, knowledge, and aesthetic needs These three categories—survival needs, belonging needs, and knowledge needs—highlight the different dimensions of human requirements.
“knowledge needs” are accepted by several researchers including Nguyen and Nguyen
Enhancing the quality of working life significantly boosts employee satisfaction, which in turn positively influences job performance Ultimately, employee satisfaction is closely tied to the extent to which their jobs fulfill essential human needs.
In the Vietnamese market, Nguyen and Nguyen (2012) defined the quality of work life as the satisfaction of marketers with their human needs while at work These needs encompass health and safety, economic and family, social, esteem, actualization, knowledge, and aesthetics Their study identified three primary variables that significantly explain human demands in the workplace: survival needs, belonging needs, and knowledge needs.
In short, quality of work life also refers to the satisfaction of employees with survival needs, belonging needs, and knowledge needs based on the definition of
Organizational commitment is defined as the degree to which an individual identifies with and is engaged in a specific organization, as outlined by Mowday, Steers, and Porter (1979) O’Reilly and Chatman (1986) further elaborated on this concept, emphasizing its significance in the workplace.
“individual's psychological attachment to an organization - the psychological bond linking the individual and the organization.”
Meyer and Allen's (1991) widely accepted definition of organizational commitment describes it as a psychological state that influences an employee's relationship with their organization and their decision to remain a member They introduced a three-component model of commitment, which includes affective, continuance, and normative commitment Employees with high organizational commitment demonstrate greater adaptability, satisfaction, productivity, accountability, and loyalty, ultimately proving to be more cost-effective for the organization.
Affective commitment is the emotional bond that employees feel towards their organization, characterized by their identification with its goals and active involvement in its activities This attachment influences their roles, task management, and social interactions, aligning them with the organization's values and objectives (Lee, Allen, Meyer & Rhee, 2001).
Hypothesis development
2.3.1 Quality of work life and job performance
Quality of work life and job performance both are organizationally based (Beh
Beh and Rose (2007) conducted a study involving a survey of 475 managers in the Malaysian manufacturing industry to examine the relationship between quality of work life and job performance Their findings revealed a positive correlation, indicating that an improved quality of work life is associated with enhanced job performance.
In the paper ofKorunka, Christian, Peter Hoonakker, and Pascale Carayon
(2008),Regoand Cunha(2008), quality of work life has a positive impact on employee’s productivity, loyalty and performance In Vietnamese market, Nguyen and Nguyen
A study conducted in 2010 identified key factors influencing human demands in the workplace, such as survival needs, belonging needs, and knowledge needs However, it did not address the connection between quality of work life and job performance within the Vietnamese banking sector Therefore, this research aims to propose a positive relationship between quality of work life and job performance, forming the basis for the following hypothesis.
H1: Quality of work lifeimpacts positively on job performance among employees in the Vietnamese banking sector.
2.3.2 Organizational commitment and job performance
Research consistently highlights the strong link between organizational commitment and job performance A study by Jaramillo, Mulki, and Solomon (2005) identified organizational commitment as a key predictor of job performance Similarly, Khan, Ziauddin, Jam, and Ramay (2010) examined this relationship within Pakistan's oil and gas sector, finding a positive correlation between organizational commitment and employee performance Notably, their comparative analysis indicated that normative commitment significantly correlates with improved job performance among employees.
The Vietnamese banking sector has seen significant growth, with numerous international banks establishing branches and various mergers occurring This research focuses on the commitment levels of bank employees and their performance in designated roles By examining these factors, we aim to identify key elements that contribute to enhanced employee performance and commitment to the organization.
A study by Memari, Mahdieh, and Marnani (2013) revealed a positive relationship between organizational commitment and employee job performance at Meli Bank in Iran The research highlighted three dimensions of organizational commitment: affective commitment, continuance commitment, and normative commitment, all of which were found to correlate positively with job performance among employees.
Observation on previous studies (Fu & Deshpande, 2014) showed that organizational commitment had a significant direct impact on job performance
Therefore, the second hypothesis is proposed as follows:
H2: Organizational commitment impacts positively on job performance among employees in the Vietnamese banking sector.
2.3.3 Quality of work life and organizational commitment
Research by Gupta (2013) indicates that employees who experience a favorable quality of work life demonstrate greater commitment and foster long-term relationships with their organizations compared to those with a less favorable work environment Furthermore, Fattahi et al (2014) corroborate these findings, highlighting the positive correlation between quality of work life and organizational commitment Enhanced quality of work life not only benefits employees but also strengthens their commitment to the organization.
Research has consistently demonstrated a significant relationship between quality of work life and organizational commitment among employees Normala (2010) found that Malaysian firms exhibited this connection, while Birjandi, Birjandi, and Ataei (2013) confirmed a positive correlation between quality of work life components and employee commitment Additionally, Farid (2015) highlighted a strong relationship, indicating that improved quality of work life in banks leads to greater organizational commitment Supporting these findings, Sirgy et al (2001) emphasized that quality of work life positively influences organizational commitment, underscoring its importance in fostering employee loyalty and engagement.
In the Vietnamese banking sector, a strong organizational commitment among employees correlates with an increased attachment to various aspects of their work This leads to the hypothesis that higher levels of employee commitment enhance their engagement and connection to their roles.
H3: Quality of work life impacts positively onorganizational commitment among employees in the Vietnamese banking sector
Research model
This article proposes a model that illustrates the influence of work quality and organizational commitment on employee job performance within the Vietnamese banking sector.
Belonging needs Quality of work life
Figure 2.1 Conceptual framework of the study
H1: Quality of work life impacts positively on job performance among employees in the Vietnamese banking sector.
H2: Organizational commitment impacts positively on job performance among employees in the Vietnamese banking sector.
H3: Quality of work life impacts positively onorganizational commitment among employees in the Vietnamese banking sector
RESEARCH METHODOLOGY
Research process
This thesis explores how the quality of work life and organizational commitment influence employee job performance within the Vietnamese banking sector The research methodology encompasses a comprehensive approach, including a literature review, research design, qualitative methods, a primary survey, and data analysis, all of which are detailed in the following process.
Literate Review Formulating Research Problem
Development of hypothesis, Research question
Research Design Questionnaire design, measurement scale
Data Analysis Reliability analysis Exploratory Factor Analysis Hypothesis Testing Model SEM analysis
Research design
The questionnaire consists of eight sections: personal information, survival needs, belonging needs, knowledge needs, affective commitment, continuance commitment, normative commitment, and job performance It employs a 5-point Likert scale to gauge employee attitudes regarding the effects of quality of work life and organizational commitment on job performance Respondents rate their level of agreement on a scale from 1 to 5, where 1 signifies "strongly disagree" and 5 indicates "strongly agree." Initially created in English, the questionnaire is subsequently translated into other languages.
The questionnaire was translated into Vietnamese by an academic fluent in both languages to ensure clarity for banking officers in Vietnam, who may not fully understand English To validate the questionnaire's effectiveness, it was pre-tested through face-to-face interviews with five experienced banking professionals This pre-testing aimed to confirm their understanding of the measurement scale and to make necessary modifications for better applicability in the Vietnamese context Following these adjustments, the final version of the questionnaire was launched for the main survey.
3.2.2 Measurement scale Quality of work life
The questionnaire of quality of work life is mentioned into three dimensions: survival needs, belonging needs, and knowledge needs.
To measure these items, the study adapts the measurement given by Nguyen and Nguyen (2012) who suggest several questions The questions are as follows:
Construct Coding of variables Item
QS1 My job provides good health benefitsQS2 I am satisfied with what I’m getting paid for my workQS3 My job does well for my family
QB1 I have good friends at work
QB2 I have enough time away from work to enjoy other things in life QB3 I feel appreciated at work
QK1 I feel that my job allows me to realize my full potential QK2 My job allows me to sharpen my professional skills
QK3 My job helps me develop my creativity
The questionnaire of organizational commitment is mentioned into three dimensions: affective commitment, continuance commitment, and normative
To measure the affective commitment, the study adapted the measurement given
Fu and Deshpande (2014) who suggest several questions The questions are as follows:
Construct Coding of variables Item
AC1 I would be very happy to spend the rest of my career with this organization AC2 I really feel as if this organization’s problems are my own
AC3 I feel a strong sense of belonging to my organization;
AC4 I feel like ‘‘part of the family’’ at my organization AC5 I feel ‘‘emotionally attached’’ to this organization
AC6 This organization has a great deal of personal meaning for me
CC1 It would be very hard for me to leave my organization right now, even if I wanted to;
CC2 Too much in my life would be disrupted if I decided I wanted to leave my organization now;
CC3 Right now, staying with my organization is a matter of necessity as much as desire CC4 I feel that I have too few options to consider leaving this organization
CC5 One of the few serious consequences of leaving this organization would be the scarcity of available alternatives
CC6 If I had not put so much of myself into this organization, I might consider working elsewhere
NC1 I would feel guilty if I left the organization now
NC2 I do not feel any obligation to stay with my current employer
NC3 Even if it were to my advantage, I do not feel it would be right to leave my organization NC4 This organization deserves my loyalty;
NC5 I would not leave my organization right now because I have a sense of obligation to the people in it;
NC6 I owe a great deal to my organization.
This study revised two questions in two variables in to negative questions to avoid bias The questions were revised as below:
Construct Coding of variables Item
AC4 I do not feel like organization
‘‘part of the family’’ at my
AC5 I do not organization feel ‘‘emotionally attached’’ to this
To measure job performance, this study use the four items Nguyen and Nguyen
(2012) Four questions are designed as below:
Construct Coding of variables Item
I consider myself an effective employee, consistently delivering high-quality work that meets expectations My manager recognizes my efficiency, while my colleagues acknowledge my productivity, further affirming my contributions to the team.
Qualitative method
The researcher conducted in-depth interviews with five employees to assess their understanding of the questionnaires and to evaluate the appropriateness of the scale for research in Vietnam Additionally, the author sought suggestions from the interviewees to enhance the questionnaires All feedback was collected to refine the questionnaires, resulting in slight modifications for improved clarity and comprehension based on the respondents' insights (See Appendix E).
Main survey
According to Hair et al (2009), the minimum sample size for statistical analysis should be at least five times the number of independent variables to ensure reliable results With 31 items in the research, the required sample size is calculated as n = 5 x 31, resulting in a total of 155 participants.
According to Tabachnick (1996), the minimum sample size for conducting multiple regression analysis is calculated using the formula n > 50 + 8m, where m represents the number of independent variables For this study, with six independent variables, the required sample size exceeds 98 To enhance the reliability and validity of the research, the initial target sample size was set at approximately 200 employees within the banking sector.
A total of 300 questionnaires were distributed to employees in banks across Ho Chi Minh City using a mail survey method to minimize varied interpretations of the questions The chosen methods, mail and online surveys, are cost-effective, enable a large number of respondents to participate quickly, allow respondents to answer at their own pace, and maintain privacy (Mangione, 1995) Out of the 300 distributed, 270 employees completed the questionnaires, with 259 responses deemed suitable for analysis Eleven questionnaires were excluded due to incomplete answers or uniform responses across all questions.
Upon completing data collection, the analysis phase begins, where all accepted questionnaires undergo a validity review It is essential to implement reverse-scoring for negatively-keyed items prior to calculating individual total scores and performing data analyses The study utilized SPSS Statistics version 20 for data analysis, and the data processing procedures are summarized as follows.
Cronbach’s Alpha is a key statistical measure for assessing the reliability of a scale, evaluating the inter-item correlation among its components This analysis effectively identifies and eliminates irrelevant variables, enhancing the quality of the study by focusing on meaningful data The reliability of the scale is quantified through the Cronbach’s Alpha coefficient, as noted by Hair et al (1998) and further supported by Pallant.
In 2001, it was established that scales are considered reliable when the Cronbach's Alpha coefficient is 0.7 or higher A low alpha value may indicate an insufficient number of questions, weak interrelatedness among items, or the presence of heterogeneous constructs.
Exploratory Factor Analysis (EFA) was employed to identify the number of factors and examine the relationships among independent variables This multivariable statistical technique reveals the underlying structure within a large dataset, serving two main purposes: summarizing extensive information and condensing it into fewer factors (Hair et al., 1998) In this study, six dimensions were identified as influential to employee job performance, with factor analysis facilitating the creation of factors corresponding to each measuring scale Additionally, it helped pinpoint the factors that showed a strong correlation with job performance According to Pallant (2001), factor analysis is suitable for data that meets specific criteria.
The Kaiser-Meyer-Olkin value (KMO) is 0.6 or greater
The Bartlett’s test of inadequate is statistically significant: p < 0.05
The transmission coefficient variables (factors loading) is less than 0.5 or the difference between the two factors less than 0.3 will be disqualified.
Stop Eigenvalue (representing the variance explained by each factor) greater than
1 and the total variance extracted (Cumulative Extraction Sum of Square Loadings) greater than 50%.
Testing the reliability and validity of measurement model
Amos 20 ran for CFA with purpose of testing the reliability and validity of measurement model The CFA results indicated the model fit if Cmin/df was less than 03 with p-value larger than 5% The goodness of fit index (GFI) was a measure of fit between the hypothesized model and the observed covariance matrix The comparative fit index (CFI) analyzed the model fit by examining the discrepancy between the data and the hypothesized model, while adjusting the issue of sample size inherence in the chi- squared test of model fit A CFI value is more than 0.95 is good, more than 0.9 is traditionally, and more than 0.8 is sometimes permissible The root mean square error of approximation (RMSEA) avoided issues of sample size by analyzing the discrepancy between the hypothesized models, with optimally chosen parameter estimates, and the population covariance matrix A value of 0.1 or less was indicated and acceptable model fit Based on composite reliability (CR), the author evaluated the measurement scale’s reliability According to CFA results, average variance extracted (AVE) was used to conclude the convergent validity and correlation between items was used to identify the discriminate validity Then, structural equation modeling (SEM) tested the hypothesized model and estimated path coefficients for each proposed relationship in the structural model SEM is a comprehensive statistical approach to testing hypotheses about relations among observed and latent variables (Hoyle, 1995) Rigdon (1998) defined that SEM is a methodology for representing, estimating, and testing a theoretical network of (mostly) linear relations between variables.
DATA ANALYSIS AND DATA RESULTS
Preliminaries of data analysis
The survey participants exhibit a diverse profile in terms of age, gender, bank positions, and seniority, as detailed in Table 4.1 Females constitute 54% of the respondents, while males make up 46% The predominant age group is 26-35 years, representing 54%, followed by 39% in the 18-25 years category Most employees hold positions as credit officers (49%), with back officers comprising 24% A significant portion of the workforce has been with their current company for 2 to 5 years (51%), while 22% have been employed for less than one year In terms of monthly net income, 44% earn between 5 to 11 million VND, and 34% earn between 12 to 20 million VND Additionally, the majority of employees work at state-owned banks (68%), followed by those in joint-stock commercial banks (31%).
Table 4.1 Summary of employees’ profile
No Items Scale Frequency Percent
3 Job at respondents bank of
4 Net income per month of respondents
5 Kind of respondents bank of
6 Years at the bank job of respondents
Reliability analysis
In this study, Cronbach’s Alpha was employed to assess the reliability of the measurement scales, with an acceptable alpha coefficient defined as greater than 0.7 Items with a Cronbach’s Alpha below 0.7 and a corrected item-total correlation below 0.3 were removed, resulting in the deletion of NC2 Ultimately, all factors in the research met the reliability criteria, with Cronbach’s Alpha coefficients ranging from 0.810 to 0.893.
Variable Item-Total Statistics Reliability Statistics
Scale Variance if Item Deleted
Cronbach's Alpha if Item Deleted
Exploratory Factor Analysis
Following the assessment of Cronbach’s Alpha coefficient, the analysis proceeded with Exploratory Factor Analysis (EFA) to examine the relationships among internal variables This study adhered to strict criteria, eliminating factors with loadings below 0.5 and retaining components with Eigenvalues exceeding 1.0 The primary aim of EFA is to group items that are closely related or consistently answered by respondents According to Hair et al (1995), a sample size of 100 or more is recommended; thus, this study's sample size of 259 valid observations, detailed in Chapter 3, satisfied the EFA requirements.
The study commenced with 30 items across all variables, revealing a KMO value of 0.824, which exceeds the acceptable threshold of 0.7 (Leech, Barrett & Morgan, 2005) This KMO test indicates that there are sufficient items predicted by each factor Furthermore, the Chi-squared value of Bartlett's test was 4655.835 with a significance value of 0.000, which is less than the statistically significant level of p
