ENHANCING EMPLOYEES’ JOB SATISFACTION AT CONSTRUCTION AND PROJECT MANAGEMENT NO 1. JSC

NATIONAL ECONOMIC UNIVERSITY NEU BUSINESS SCHOOL NGUYEN DUY CUONG ENHANCING EMPLOYEES’ JOB SATISFACTION AT CONSTRUCTION AND PROJECT MANAGEMENT NO JSC MASTER OF BUSINESS ADMINISTRATION THESIS HA NOI – 2022 NATIONAL ECONOMIC UNIVERSITY NEU BUSINESS SCHOOL NGUYEN DUY CUONG ENHANCING EMPLOYEES’ JOB SATISFACTION AT CONSTRUCTION AND PROJECT MANAGEMENT NO JSC Major: Business Adminnistration MASTER OF BUSINESS ADMINISTRATION THESIS Supervisor: DR NGUYEN QUOC DUY HA NOI – 2022 ACKNOWLEDGEMENT My sincerely thank to my supervisor – Dr Nguyen Quoc Duy for his support and guidance that I could be highly effective throughout carrying this thesis My deepest thank to all professors and teachers at the NEU Business School for teaching and imparting me valuable business administration knowledge Being a student at the E-MBA Program is my pleasure My warmest thank to all member and the executive Board of PCM1 company, who have helped and facilitated me completing the study My thank to my family and friends for their support and encouragement while doing this thesis Hanoi, August 20, 2022 Nguyễn Duy Cương CONTENTS ACKNOWLEDGEMENT LIST OF FirGues LIST OF ChART LIST OF TABLES EXECUTIVE SUMMARY Chapter 1: INTRODUCTION .1 1.1 Rationale 1.2 Research objective .2 1.3 Research questions 1.4 Research methodology 1.5 Research scope 1.6 Research structure Chapter 2: THEORETICAL BACKGROUND ON JOB’S SATISFACTION 2.1 Definition of job satisfaction .7 2.2 Theories of job satisfaction 2.3 Importance of job satisfaction 19 2.4 Determinants of job satisfaction 22 2.4.1 Salary and Welfare .22 2.4.2 Promotion 24 2.4.3 Reward and Recognition 25 2.4.4 Leadership 27 2.4.5 Working Conditions .28 2.5 Research Model and Scale 29 2.5.1 Factors affecting employee‘s satisfaction 29 2.5.2 Hypotheses about the relationship between the independent variable and the dependent variable 30 2.5.3 Measurement scale of variables 31 Chapter 3: ANALYSING PCM1 EMPLOYEES’ JOB SATISFACTION .33 3.1 Introduction of Eurowindow Holding and Construction and project management No JSC 33 3.1.1 Introduction about Eurowindow Holding JSC and Construction and Project Management No JSC 33 3.1.2 Organizational chart .36 3.1.3 Current policies and management practices of PCM1 related to employee job satisfaction .37 3.2 Respondents' profile .38 3.3 Scale verification 42 3.4 Exploratory Factor Analysis 45 3.4.1 Factor analysis with the independent variables 45 3.4.2 Factor analysis with the dependent variables .46 3.5 Regression analysis 47 3.6 Influential factor analysis .51 3.6.1 Analysis of Overall job satisfaction .51 3.6.2 Analysis of Promotion 51 3.6.3 Analysis of Reward and Recognition 52 3.6.4 Analysis of Leadership 53 3.6.5 Analysis of Working Condition 54 3.7 Sumary of findings 55 3.7.1 Analytical synthesis diagram .55 3.7.2 Achievements 55 3.7.3 Shoricomings: 56 3.7.4 Cause of Shortcomings 58 Chapter 4: SOLUTIONS TO ENHANCE PCM1 EMPLOYEES’ JOB SATISFACTION 60 4.1 Development orientation of PCM1 60 4.2 Solutions to enhance PCM1 employees’ job satisfaction 61 4.2.1 Solutions to enhance Leadership 61 4.2.2 Solutions to enhance Reward and Recognition 62 4.2.3 Solutions to enhance Promotion 62 4.2.4 Solutions to enhance Working Condition .64 REFERENCES 67 APPENDIX 1: SURVEY OF EMPLOYEE'S JOB SATISFACTION AT PCM1 70 LIST OF FIRGUES Figure 1.1: Research Process Figure 2.1: Abraham Maslow's Hierarchy of Needs (1943) .9 Figure 2.2: ERG theory of Alderfer (1969) 11 Figure 2.3: Herzberg's two-factor theory (1959) 13 Figure 2.4: Theory X and Theory Y by Douglas McGregor (the 1960s) .15 Figure 2.5: Factors affecting employee‘s satisfaction 29 Figure 3.1: Factors affecting employee‘s satisfaction 55 LIST OF CHART Chart 3.1: Organization Chart 36 Chart 3.2: Statistics on Gender 39 Chart 3.3: Statistics on Age 39 Chart 3.4: Statistics on Qualification .40 Chart 3.5: Statistics on Position .40 Chart 3.6: Statistics on Department .41 Chart 3.7: Statistics on Seniority 42 Chart 3.8: Statistics on Income 42 LIST OF TABLES Table 2.1: Attributes of "Salary and Welfare" factor 24 Table 2.2: Attributes of "Promotion" factor 25 Table 2.3: Attributes of "Reward and Recognition" factor .26 Table 2.4: Attributes of "Leadership" factor 28 Table 2.5: Attributes of "Working condition" factor 29 Table 2.6: Relationship between independent variable and dependent variable 30 Table 2.7: Measurement scale of variables 31 Table 3.1: Scale verification 43 Table 3.2: Model summary of regression analysis 48 Table 3.3: ANOVA of regression analysis .48 Table 3.4: Coefficients of regression analysis 49 Table 3.5: Analysis of Overall job satisfaction 51 Table 3.6: Analysis of Promotion 51 Table 3.7: Analysis of Reward and Recognition 52 Table 3.8: Analysis of Leadership 53 Table 3.9: Analysis of Working condition 54 EXECUTIVE SUMMARY Nowadays, Human resources are an important factor for a business's success, because according to experts, competitors can "copy" strategies, business methods, products and services, but talent cannot "copy" it However, the current economic downturn has led to a decline in revenue, a shrinking market, resulting in many problems in human resources, such as: (1) Due to the impact of the covid 19 epidemic, the company must arrange for employees to take rotational leave or unpaid leave; (2) Although KPIs are applied in job performance evaluation, a scale suitable for each job position has not been built; (3) New leaders of some departments usually only stick with the business for 3-6 months; (4) New employees usually stick with the company for 6-12 months Above problems reflect the level of dissatisfaction of employees with their current job, the causes of them can stem from factors such as: “Salary and Welfare”, “Promotion”, “Reward and Recognition”, “Leadership” and “Working Conditions” According to the leader of the Human Resources Department: "PCM1's leadership has also identified the problem and evaluated the causes to come up with appropriate solutions." The goal is to improve job satisfaction and increase work motivation for current employees In addition, new and improved policies attract more talents joining the organization to contribute to the development of the business The company encourages employees who have the ability to conduct evaluation studies and propose solutions to the management to solve the current problems of the business Besides, this is also a way for the management to collect opinions and needs of employees Based on the theoretical basis, combined with the employee's resignation and lack of enthusiasm, are deeply rooted in dissatisfaction with the job Therefore, the author evaluates that the study of job satisfaction is the key to helping businesses solve current problems at PCM1 which is urgent and has practical significance The study was conducted to evaluate and identify factors affecting employees' 62 old rut, the company has spent a lot of money to study the influencing factors and internal factors in its business, rather than using too much research on enterprises in the industry or overall study Although the company has accepted a large amount expenses, there are still many unresolved issues The job satisfaction of new employees is at an average level, the motivation at work is still weak, the policies to recognize and honor employees are still lacking This is reflected quite similar to the survey results of the study Therefore, the company needs more solutions to overcome the above disadvantages to shape the business organization and conquer the strategies and goals set out 4.2 Solutions to enhance PCM1 employees’ job satisfaction 4.2.1 Solutions to enhance Leadership Although business leaders cannot directly influence the development and cohesion of members' relationships, they can indirectly through implementing policies, culture or organizing meetings or event so that members can interact more The company needs to organize many large and small events to improve the solidarity of the collective such as: (1) organize weekly sports and cultural exchanges, (2) organize a joint birthday party for members with the same birthday month, (3) organize funerals to share grief for employees who have lost loved ones, (4) organize campaigns or contests among units and departments so that units can communicate with each other and (5) Create many meetings between company management and employees to listen to employees' thoughts, aspirations, needs and even suggestions In reality, the link between employees and leaders directly affects the efficiency and completion of work In this relationship, as a leader, superiors need to be proactive, open and change themselves so that employees can feel the closeness and want to develop this relationship Direct managers need to be constantly attentive to the needs of and employees' feelings, communicate openly, respect and trust 63 employees, listen to and respond to employees' opinions, develop new skills and solve work-related problems for employees Besides, the employees also need to be aware of their position, responsibilities and duties, must always make efforts and try to complete the tasks assigned by the leader, actively participate in activities and movements to shorten the distance between leaders and subordinates Therefore, it is really necessary to improve the relationship between employees and employers 4.2.2 Solutions to enhance Reward and Recognition Although the company has many policies related to recognition and reward for employees, there are still many problems to apply in practice The author offers several methods to improve this situation, including: 1) Completing the method of evaluating job performance according to KPIs In particular, it is necessary to adjust the evaluation criteria to suit each job position for each department 2) Encourage employees to work creatively to have new ideas and directions to bring higher efficiency at work Every month, it is recommended to organize honoring and commending sessions for excellent and creative individuals during their working at the company 3) Organize training sessions and popularize the company's new remuneration policies to guide as well as listen to contributions from employees The improvement of reward and recognition is an expression of the company's respect, recognition and long-term commitment to employees It shows the humanity of the business and this is also the foundation for businesses to build their own culture and identity 4.2.3 Solutions to enhance Promotion Enterprises need to train employees with relevant knowledge about business and application software at work As practical experiences to help employees have an overview, overall and better understand about the work they are doing and the 64 coordination of other departments As applications and application of new technology in production and business activities And even training courses on life skills, communication and management for qualified people for the company to use Because the amount of knowledge to be trained is very large, so the company needs to consider and balance how to match the nature of the work and the needs of the company's employees to maximize efficiency Every year, enterprises need to periodically survey and assess the training needs of their employees Based on practical needs of implementing work to choose the most suitable training courses Invite leading industry experts or speakers to exchange knowledge and inspire work In addition, the leadership that leads subordinates during the working process is also an appropriate form of training in corporate conditions It helps businesses save costs and maximize the efficiency of the use of human resources of each member of the organization For new employees, it is possible to organize the appointment of staff to guide directly Members of the organization are encouraged to explore and learn new knowledge in the field of human resource management and training In addition, the company should restructure the organization chart of the company and each department to create more leadership positions as goals for employees to strive for Increase the positions of deputy and team leader for each division Specifically, each unit currently has only head of department, deputy and 20-25 employees If the company creates more team leaders or add deputy, employees will have more opportunities for promotion Management should balance the number of leaders with the number of employees in the department The appropriate structure for a specific department is as follows: head of department, deputy, team leaders and 20-25 employees Besides, businesses can create opportunities for their employees to rotate between departments to learn and improve general management skills It is also an opportunity for employees to improve their self-efficacy and give themselves new promotion opportunities 65 Overall, In general, human resource training and personnel appointment are closely related Many businesses have not exploited their full potential as well as lost high-quality human resources 4.2.4 Solutions to enhance Working Condition Working conditions play an important role and directly affect labor productivity as well as overall employee satisfaction No matter how good employees are, without good equipment and good facilities, they can't bring out their full potential, making them unsatisfied For employees working directly at construction sites: The company needs to improve facilities in the working room, protective gear, etc., in order to prevent occupational diseases and minimize the accidents at work Staffs at the construction site not have a fixed working room, but work in containers with a small area, not ventilated, of poor quality Working equipment such as machines, computers, tables and chairs are not enough for all to use together, causing interruptions in the working process In addition, due to the characteristics of a company in the construction industry, these employees have to work often in an environment with many hazardous substances (smoke, dust, cement, ) and the noise always exceeds 75 dB If they are not fully equipped, they are very susceptible to diseases related to the respiratory and hearing organs such as: pneumoconiosis, tuberculosis, hearing loss, etc Moreover, to supervise the works, Workers also often have to climb on the scaffolding of the works This is a potential hazard to cause occupational accidents at work Therefore, the company needs to take the following measures to improve this situation First, the company needs to arrange some more containers, tables and chairs and good quality cabinets to have enough working space, record and document storage for each employee Second, PCM1 provides enough labor protection equipment Propagating and encouraging employees to seriously implement protective measures and maintain them regularly so that employees can raise awareness and protect themselves and 66 those around them Working in an environment containing many dangerous and harmful factors, workers understand their effects and dangers However, due to their high exposure as well as the characteristics of their work, they are still indifferent, disregarding the danger of themselves and their colleagues Therefore, raising awareness and equipping them with knowledge about occupational safety is very necessary In fact, there are many businesses that apply this solution and achieve high efficiency such as Van Phu Garment Company (in Nho Quan district) regularly organizes occupational safety training for safety officers, it is these safety officers who are an effective channel to propagate knowledge about occupational safety and fire prevention to employees As a result, the majority of workers not only understand and have a sense of protecting their lives and health, but also regularly receive training in law and skills to proactively respond in time The company established an occupational safety team, the members were able to fully participate in professional training courses organized by the Provincial Police Mr Nguyen Van Pham, Chairman of the Board of Directors of Van Phu Garment Company shared: The outstanding activity in the work of ensuring occupational safety of the Company is to actively improve working conditions for employees Small, inexpensive improvements such as: Installing ventilation fans, vacuuming, reducing noise sources, periodically maintaining machines have contributed to creating a safe working environment, thereby contributing to improving health health for workers Third, proactively implement solutions to reduce dust, reduce noise and vibration, improve the microclimate in the construction site, etc Along with that are accompanying solutions such as organizing regular health check-ups Periodically, regularly assess environmental impacts and need to develop appropriate salary, allowance and insurance policies so that employees can feel secure to work and contribute to the business Fourth, the company's leadership must attach great importance to the application of modern technology and techniques to the production and business management 67 process The enterprise need to invest and hire a consulting unit and provided management software to design management software based on industry specificity and existing experience The software on the market, when put into practice, has revealed many limitations in the process of use, so the company's management and the consulting unit are trying to come up with remedial measures The leading solution is to survey and evaluate the system's operation through direct users But so far, there are still some disagreements between the leadership's aspirations and the limited number of employees, because the workload is too large to calculate and input data with the current number of employees To solve this problem, the company's leadership needs to sit down with employees to agree on the contents that are really necessary and problematic to serve control and management From there, the consulting unit will base on the agreed contents to come up with appropriate plans to meet the needs in the process of use 68 REFERENCES Akinyele, S T (2010), “The influence of work environment on worker productivity: A case of selected oil and gas industry in Lagos, Nigeria, African”, Journal of Business Management Vol (3), pp 299 – 307, March 2010 Amina Hameed, Shehla Amjad (2009), “Impact of Office Design on Employees’ Productivity: a Case study of Banking Organizations of Abbottabad, Pakistan”, Journal of Public Affairs, administration and Management VoL 3, January 2009 Ellickson, M.C & Logsdon, K (2001), “Determinants of job satisfaction of municipal government employees”, State and Government Review, VoL 33, No 3, pp 173-184, 2001 Foreman Facts (1946), “Labor Relations”, Institute of New York, New York Hair et al (1998), “Mutivariate data analysis 5th ed”, Englewood Cliffs, NJ, Prentice – 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Montreux, June 2004 18 Ollukkaran, B.A., & Gunaseelan, R (2012), “A study on the impact of work environment on employee performance”, Namex International Journal of Management Research, VoL 2(2) 19 Spector, P E (1997), “Job Satisfaction Application, assessment, causes, and consequences” Thousand Oaks, California: Sage Publications, Inc 20 Swanson, R A (2001), “Human Resource development and its underlying theory”, Human Resource development International, VoL 4(3), pp 299- 70 312 21 Sweeney, A (2000), “Job Satisfaction Among Employee Assistance Program Professionals in United States”, Virginia Polytechnic Institute and State University, Virginia, USA 22 Vroom, V H (1964), “Work and Motivation”, New York Wiley: JosseyBass 23 Weiss et al (1967), “Manual for Minnesata Satisfaction Questionaire”, The University of Minnesota Press 24 Worrell T.G (2004), “School Psychologists - Job Satisfaction: Ten Years Later”, Dissertation submitted to the faculty of the Virginia Polytechnic Institute and State University in partial fulfillment of the requirement for the degree of doctor of philosophy 71 APPENDIX 1: SURVEY OF EMPLOYEE'S JOB SATISFACTION AT PCM1 FACTORS AFFECTING EMPLOYEE SATISFACTION Purpose Trong khảo sát này, người khảo sát yêu cầu hoàn thành bảng câu hỏi đặt câu hỏi mức độ hài lịng nhân viên cơng việc Việc hồn thành khảo sát khoảng 10 phút (In this survey, surveyor will be asked to complete a questionnaire that asks questions about the employees’ satisfaction in jobs Completion of this survey will take approximately 10 minutes) Các câu trả lời khảo sát bạn bảo mật nghiêm ngặt liệu từ nghiên cứu báo cáo phần tổng hợp Thông tin bạn mã hóa bảo mật Nếu bạn có thắc mắc lúc khảo sát thủ tục, bạn liên hệ với Cương Nguyễn jlovejui308@gmail.com (Your survey responses will be strictly confidential and data from this research will be reported only in the aggregate Your information will be coded and will remain confidential If you have questions at any time about the survey or the procedures, you may contact Cuong Nguyen at jlovejui308@gmail.com) Part 1: Thông tin cá nhân (Demographic Factors) Giới tính (Gender)  Nam (Male)  Nữ (Female) Tuổi (Age)  Dưới 30 (Under 30)  30 – 40  41 – 50  Trên 50 (Above 50s) Bằng cấp (Qualification)  Cao đẳng (College)  Đại học (University)  Sau Đại học (Post Graduate)  Tiến sĩ (Ph.D's degree) Chức danh (Position)  Giám đốc / Trưởng Phòng (Director / Chief) Phòng/Ban (Department)  Phòng Quản lý thiết kế (Design Management Department)  Phòng Quản lý Chất lượng Tiến độ (Quality and Progress Management Department)  Phịng Kiểm sốt dự án (Project Control Department)  Phòng Đấu thầu (Bidding Department)  Ban quản lý dự án độc lập (Independent Project Management Board)  Phòng Ban khác (Other) Thời gian làm việc (Working time)  Dưới năm (Under year)  – năm (1 – years) 72  Phó Phịng / Trưởng nhóm (Deputy/ Team Leader)  Nhân viên (Staff)  Khác (Other)  – năm (3 – years)  Trên năm (Above years) Thu nhập (Income)  Dưới 10 triệu đồng (Under 10 millions VND)  10 – 20 triệu đồng (10 mils – 20 millions VND)  20 – 30 triệu đồng (20 mils – 30 millions VND)  Trên 30 triệu đồng (Above 30 millions VND) Part Các yếu tố ảnh hưởng đến hài lòng nhân viên (Factors affecting employee Satisfaction) Hướng dẫn (Instructions) Vui lòng khoanh tròn câu trả lời thể tốt quan điểm bạn (Please circle the response that best represents your view) Rất hài long (Strongly Agree) Nhân tố (Variable) Hài lịng Bình thường (Agree) (Neutral) (Disagree) (Strongly Disagree) Tiêu chí (Criteria) Khơng hài lịng Rất khơng hài long Rất hài Khơng hài lòng lòng Lương Phúc Mức lương phúc lợi phù hợp với lợi (Salary and Welfare) nỗ lực làm việc (Salary and Welfare commensurate 5 with working efforts) Mức lương phúc lợi tương đối cạnh tranh so với cơng việc vị trí công ty ngành (Salary and Welfare are relatively competitive compared to similar positions at companies in the same industry) Tiền lương chi trả cho sống 73 (Salary is enough to pay for basic living) Tiền lương toán đủ kịp thời 5 5 5 5 (Salary is paid in full and on time) Phúc lợi nhân viên đảm bảo thực đủ (Employee welfares are fully implemented) Cơng ty có sách tăng lương rõ ràng hợp lý (The company has a clear and reasonable salary increase policy) Có hội thăng tiến doanh nghiệp (There are opportunities for advancement in the company) Nhân viên hiểu rõ yếu tố xem xét cho việc thăng chức Cơ hội thăng (Employees clearly understand the tiến (Promotion) factors considered for promotion) Các nhân viên nội thực cân nhắc cho vị trí mở (Internal employees are actually considered for open positions) Khen thưởng Lãnh đạo đồng nghiệp ghi nhận công nhận cố gắng làm việc nhân viên (Reward and (Leaders and colleagues recognize Recognition) employees' work efforts) Cơng ty có sách ghi nhận tơn vinh thành tích xuất sắc cá nhân (The company has a policy of 74 recognizing and outstanding honoring the achievements of individuals) Kết công việc yếu tố định mức độ hồn thành cơng việc; thăng cấp lên vị trí tiền thưởng nhân viên (Performance at work is one of the 5 5 factors that determine the level of job completion; promotion to new position Lãnh and bonus of each employee) đạo Nhân viên cấp khuyến (Leadership) khích đổi mới, linh hoạt cách thức làm việc (Employees are encouraged by their superiors to innovate and be flexible in the way they work) Lãnh đạo lắng nghe; tôn trọng ý kiến ghi nhận kịp thời đóng góp nhân viên (Leaders always listen, respect the opinions and timely acknowledge the contributions of employees) Nhân viên cấp hướng dẫn bảo làm việc (Employees are guided and instructed by their superiors when working) Lãnh đạp phân công nhiệm vụ rõ ràng đưa đánh giá hợp lý 75 (Leaders clearly assign tasks and make reasonable judgments) Môi trường làm việc chuyên nghiệp, trang thiết bị đầy đủ, an toàn (Professional working environment, complete and safe equipment) Thời gian làm việc linh hoạt (Flexible working time) Văn hóa doanh nghiệp xây dựng rõ ràng củng cố (Corporate culture is clearly built Mơi trường làm việc and is always reinforced) Khuyến khích nhân viên đưa ý (Working kiến vấn đề chung tổ Condition) chức trọng cởi mở, chia sẻ, 5 5 giúp đỡ gắn kết thành viên công ty (Encourage employees to give opinions on common issues of the organization with an emphasis on openness, sharing, help and cohesion among members of the company) Đánh giá cảm quan (Sensory evaluation) Nhân tố Tiêu chí Rất hài Khơng hài (Variable) (Criteria) lịng lịng Mức độ hài Anh/chị cảm thấy hài lòng làm việc lòng với công coi công ty mái nhà thứ việc hai (Overall job (You feel satisfied working here and satisfaction) consider the company as your second home) 76 Nhìn chung, tơi hài lịng với cơng việc (Overall, I'm satisfied with my current 5 job) Tôi mong muốn gắn bó lâu dài với cơng ty (You want to stick with the company for a long time) Xin chân thành cảm ơn hợp tác Quý Anh/Chị! (Sincerely thank you for your cooperation!) ... argues that the opposite of dissatisfaction is not satisfaction but not dissatisfaction and the opposite of satisfaction is not dissatisfaction but dissatisfaction Factors related to job satisfaction. .. Holding and Construction and project management No JSC 33 3 .1.1 Introduction about Eurowindow Holding JSC and Construction and Project Management No JSC 33 3 .1.2 Organizational... Hoppock said that measuring job satisfaction in two ways: (a) measure job satisfaction in general (b) measure job satisfaction in various job related aspects He also said that job satisfaction in