Luận văn thạc sĩ UEH factors affecting job satisfaction, a comparison between state owned and non state owned enterprises in vietnam

INTRODUCTION

Background

Since initiating significant economic reforms in 1986, Vietnam has transitioned from a command economy to a market-oriented one These reforms, characterized by structural changes and open-door policies, have played a crucial role in the nation's economic landscape As a result, Vietnam has experienced remarkable economic growth, with an average GDP growth rate exceeding 7% during the 1990s and early 2000s, peaking at over 8% in 2006, positioning it among the fastest-growing economies globally.

The influx of foreign enterprises into the Vietnamese economy during periods of economic growth and globalization has led to the establishment of Joint Venture Companies that implement modern management methods and incentive policies This market opening has presented both challenges and opportunities, enabling some businesses to enhance productivity, product quality, and profitability, while others have struggled to adapt In response to competitive pressures, Vietnamese companies—whether state-owned, private, or joint ventures—are striving to optimize their financial, production, and sales performance Additionally, the role of employees is crucial in driving development, as emphasized by Maslow's hierarchy of needs.

(1954) the personal needs go along with their development So, employees need more and more from their works, their devotion for company development.

Many individuals often find that their job requirements are not fully met, leading to dissatisfaction and significant life changes Additionally, there is a notable concentration of Vietnamese labor forces in major urban centers like Hanoi.

Ho Chi Minh City or so The movement of labor forces is clearly depicted in the

They usually move their jobs, which heavily damages enterprise’s human resources

Many Vietnamese enterprises face significant challenges related to high recruitment and training costs, as a substantial portion of their workforce frequently changes jobs According to the Vietnamese Labor Force Newspaper (2010), between 15% to 20% of employees in industrial zones transition to new positions, highlighting the urgent need for companies to focus on employee retention strategies Maintaining a stable labor force has become a critical issue for businesses in Vietnam.

Problem statement

According to Towers Watson (2011), the average turnover rate in Vietnam for that year was 17.8%, indicating that Vietnamese companies are grappling with a significant turnover issue that can negatively impact their reputation and growth.

An analysis by IMQ Consulting experts reveals that employee turnover is primarily driven by conflicts and disagreements between staff and management, rather than salary issues Job dissatisfaction often arises from these interpersonal conflicts, along with an unstable working environment and a lack of focus on corporate culture.

Briefly, job dissatisfaction is the most factor leading high employee turnover rate in Vietnam.

Research objective

Job dissatisfaction is a prevalent issue in Vietnamese companies, leading to employee depression and negatively impacting organizational performance, particularly in human resources This research aims to explore the underlying causes of job dissatisfaction, which is a significant contributor to high turnover rates in Vietnam The study focuses on identifying key factors that influence employee job satisfaction across both state-owned and non-state-owned sectors, comparing satisfaction levels between these sectors, and determining the most impactful factors in each Additionally, the research will provide recommendations for enhancing existing incentive systems to boost overall job satisfaction within Vietnamese companies.

Research scope

This research is limited to South Vietnamese companies, encompassing both state-owned and non-state-owned enterprises The study specifically targets employees, low-level managers, and middle-level managers within these organizations.

Practical implication

This research aims to identify the key factors influencing job satisfaction, contributing to the reduction of high turnover rates in Vietnamese companies The findings will assist human resource managers in developing effective strategies to retain their workforce.

Research structure

This research will be composed of 5 Chapters:

Chapter 1: Introduction It introduces research background, research problem, research objective, research question as well as benefit of the research

Chapter 2: Literature review This chapter reviews theories and selects the research’s factors as well as formulates the research hypotheses and model

Chapter 3: Research methodology This chapter provides general idea how the research will be designed and implemented

Chapter 4: Research result This chapter translates data collected from survey, analyses data as well as discusses the result finding in connection with theory

Chapter 5: Conclusion This Chapter concludes the research finding; provide further suggestion as well as research limitation.

LITERATURE REVIEW

Introduction

This chapter examines job satisfaction theories and the scales used for measurement It defines job satisfaction and explores key theories, including Maslow's Hierarchy of Needs, Herzberg's Motivation-Hygiene Theory, and McGregor's Theory X and Theory Y Additionally, it reviews contemporary job satisfaction scales, highlighting their relevance in understanding employee contentment.

Job satisfaction

According to C L Hulin (1966), job satisfaction reflects a worker's effective response to their employment It is seen as a consequence of the individual's experiences in the workplace, particularly in relation to their personal values and expectations Essentially, job satisfaction can be equated with a sense of pleasure derived from fulfilling work experiences.

Brayfield and Rothe (1951) propose a 7-point scale for assessing job satisfaction, focusing on five key factors: overall satisfaction with the current job, enthusiasm for the role, enjoyment of working hours, appreciation of job enjoyment, and the contrast between job positives and negatives These factors can be summarized through five specific statements.

- I feel fairly satisfied with my present job.

- Most days I am enthusiastic about my work.

- Each day of work seems like it will never end.

- I find real enjoyment in my work.

- I consider my job rather unpleasant.

Maslow's hierarchy of needs

According to Maslow (1954), employees primarily seek job security and a stable income to support themselves and their families They desire a safe and stable work environment, opportunities for involvement in company development, and recognition from both supervisors and peers Additionally, employees aim to enhance their knowledge, promote themselves, and build long-term careers This expectation trend is illustrated in Figure 1 below.

Figure 1 Maslow hierarchy of needs

Employee dissatisfaction often stems from management behavior and company structure Key issues include inadequate communication and processing of employee concerns, unclear personnel policies, failure to uphold commitments to staff, arbitrary task delegation, and a lack of ethical standards Additionally, emotional assessments of employees and an overly familial management style contribute to poor working conditions, ultimately threatening employee expectations and job satisfaction.

Herzberg's Motivation-Hygiene Theory

Herzberg's motivation-hygiene theory, developed in 1966, identifies key factors influencing employee satisfaction and dissatisfaction Table 1 outlines the six most significant factors leading to dissatisfaction, followed by the six primary factors that contribute to employee satisfaction, ranked from highest to lowest importance.

Leading to Dissatisfaction Leading to Satisfaction

Table 1: factors affecting job attitudes

Herzberg proposed that satisfaction and dissatisfaction stem from distinct factors, meaning they should not be viewed as mere opposites Instead, the absence of satisfaction signifies the opposite of satisfaction, while the absence of dissatisfaction represents the opposite of dissatisfaction.

The analysis reveals that dissatisfaction in the workplace is influenced more by external factors than by the work itself Herzberg identified these external influences as "KITA" factors, which refer to incentives or threats that compel action However, he contended that such methods yield only temporary results, as true job satisfaction stems from intrinsic motivators inherent to the work, rather than from external rewards or punishments.

Herzberg argued that job enrichment is required for intrinsic motivation, and that it is a continuous management process According to Herzberg:

∑ The job should have sufficient challenge to utilize the full ability of the employee.

∑ Employees who demonstrate increasing levels of ability should be given

If a job fails to leverage an employee's full potential, the company should contemplate automating the task and hiring someone with lesser skills Underutilization of an employee can lead to significant motivation issues within the workforce.

Critics of Herzberg's two-factor theory suggest that individuals tend to attribute their job satisfaction to personal achievements while blaming dissatisfaction on external circumstances Additionally, they argue that experiencing job satisfaction does not automatically correlate with increased motivation or productivity levels.

McGregor's Theory X and Theory Y

Douglas McGregor, in 1957, introduced Theory X and Theory Y, which represent contrasting views on human behavior in the workplace and organizational settings He believed that organizations and their managers typically adopt one of these two approaches to understand and manage their employees.

∑ People have an inherent dislike for work and will avoid it whenever possible

∑ People must be coerced, controlled, directed, or threatened with punishment in order to get them to achieve the organizational objectives

∑ People prefer to be directed, do not want responsibility, and have little or no ambition

∑ People seek security above all else.

In an organization with Theory X assumptions, management's role is to coerce and control employees

∑ Work is as natural as play and rest

∑ People will exercise self-direction if they are committed to the objectives (they are NOT lazy)

∑ Commitment to objectives is a function of the rewards associated with their achievement

∑ People learn to accept and seek responsibility

∑ Creativity, ingenuity, and imagination are widely distributed among the population People are capable of using these abilities to solve an organizational problem.

Incentive

Pouliakas (2008) highlights the significant relationship between monetary incentives and job satisfaction, revealing a notable negative correlation between small bonus payments and worker satisfaction This suggests that low salaries contribute to diminished job contentment He argues that introducing monetary incentives can transform the nature of an incomplete contract; for example, when workers who previously performed tasks without compensation begin to associate those tasks with bonus payments, their expectations shift Consequently, employees now anticipate remuneration for these activities in the future The study also finds that workers transitioning from no bonus payments to an incentive policy report higher levels of job satisfaction compared to their counterparts.

Employee satisfaction measurement

The Occupational Stress Indicator (OSI), based on the Cooper and Marshall stress model from 1976, serves as an effective diagnostic tool for assessing critical aspects of organizational life and their effects on both individual and corporate health Unlike a traditional test, the OSI functions as an indicator of stress, offering a comprehensive and accurate measurement of occupational stress The OSI model comprises three key components: the relationship between job pressure and stress-related outcomes, such as health and job satisfaction; the influence of individual characteristics, including Type A behavior and locus of control, which moderate this relationship; and the role of coping strategies in affecting stress-related outcomes.

This model provides a huge instruction to identify the cause of job dissatisfaction

This research is limited to the OSI model's scale for measuring job satisfaction, which assesses the degree of negative feelings or attitudes an employee has towards their job The scale consists of 22 items and provides an overall score, with values ranging from 1, indicating "very much dissatisfaction," to 7.

“very much satisfaction” For each sub scale, the higher the score, the greater the satisfaction The sub-scales are as follows:

- Satisfaction with salary: this sub - scale examines the respondent’s perception and feeling about his income.

- Satisfaction with work activities: this sub – scale reflects the participants’ satisfaction concern their specific mission and tasks undertaken.

- Satisfaction with working condition: assesses the structure of the company, the supervision methods, working climate.

- Satisfaction with career prospects: this sub – scale is used to assess your future promotion, job rewards, and opportunities.

- Satisfaction with relationship: this sub – scale shows your relationship with other people at the works.

Table 2 below shows all the elements of OSI scale that usually make up to measure job satisfaction.

1 Communication and the way information flow around your organization.

2 The relationships you have with other people at work.

3 The feeling you have about the way you and your efforts are valued.

5 The degree to which you feel “motivated” by your job

7 The level of job security in your present job

8 The extent to which you may identify with the public image or goals of your organization

9 The style of supervision that your superiors use

10 The way changes and innovations have implemented

11 The kind of work or tasks that you are required to perform

12 The degree to which you feel that you can personally develop or grow in your job

13 The way in which conflicts are resolved in your company.

14 The scope your job provides to help you achieve your aspirations and ambitions

15 The amount of participation which you are given in important decision making

16 The degree to which your job taps the range of skills which you feel you possess

17 The amount of flexibility and freedom you feel you have in your job.

18 The psychological “feel” or climate that dominates your organization.

19 Your level of salary relative to your experience

20 The design or shape of your organization’s structure

21 The amount of work you are given to do whether too much or too little

22 The degree to which you feel extended in your job

Table 2 Job satisfaction measurement (OSI)

To effectively measure job satisfaction within the Vietnamese context, the OSI scales have been tailored to address specific factors such as pay, work activities, working conditions, career prospects, and interpersonal relationships with superiors and colleagues This study emphasizes the distinctions between state-owned and non-state-owned enterprises, particularly regarding their differing compensation systems According to Herzberg (1966), KITA factors, which encourage employees to complete their tasks, are essential Consequently, the observation factor 19 of the OSI scales has been further refined to align with the Vietnamese compensation framework.

Observation factor 19 emphasizes the importance of salary in relation to experience, ability, and incentives This factor is redefined to include salary correlating with individual experiences, performance-based compensation, and motivational incentives.

- Your level of salary relative to your experience.

- Your level of salary bases on your abilities or the job nature.

To enhance the clarity of the survey, observation factor 2, "The relationships you have with other people at work," has been divided into specific categories for easier response These categories include relationships with colleagues, relationships with supervisors, and relationships with customers Below, we present the sub-scales for these relationships.

- The relationships you have with your colleagues.

- The relationship you have with your bosses.

- The relationship you have with your customers.

The OSI scale of job satisfaction has been adapted for the Vietnamese working environment, introducing a modified instrument with five sub-scales These sub-scales encompass salary, which includes three factors; work activities, comprising eight factors; working conditions with six factors; career prospects featuring six factors; and relationships, which consist of three factors Additionally, the foundational measurement of job satisfaction is based on the work of Brayfield and Rothe (1951).

5 items Totally, 31 items are used to depict employees’ job satisfaction in Vietnamese companies Table 3 shows the instrument of job satisfaction clearly

1 Your level of salary relative to your experience

2 Your level of salary bases on your abilities or the job nature

No Variable Factor 2: work activities

2 The style of supervision that your superiors use

6 The way changes and innovations have implemented

1 The level of job security in your present job

4 The degree to which you feel extended in your job

5 The design or shape of your organization’s structure

No Variable Factor 4: career prospects

2 The degree to which you feel “motivated” by your job

1 The relationships you have with your colleagues

2 The relationship you have with your boss

3 The relationship you have with your customers

1 I feel fairly satisfied with my present job.

2 Most days I am enthusiastic about my work

3 Each day of work seems like it will never end

4 I find real enjoyment in my work

5 I consider my job rather unpleasant

Hypotheses

Cooper & William (1988) demonstrate that job satisfaction is positively influenced by factors such as salary, work activities, working conditions, relationships, and career prospects Consequently, this study aims to explore the correlation between these key factors and job satisfaction within Vietnamese companies.

H1: There is a positive correlation between job satisfaction and work activities in the Vietnamese company

H2: There is a positive correlation between job satisfaction and your career prospect in Vietnamese company

H3: There is a positive correlation between job satisfaction and working conditions in Vietnamese company

H4: There is a positive correlation between job satisfaction and relationship in the Vietnamese company

H5: There is a positive correlation between job satisfaction and salary in the Vietnamese company.

A survey of ten employees from both state-owned and non-state-owned sectors reveals that the majority of workers in non-state-owned companies express job satisfaction, whereas some do not share the same sentiment This raises an interesting assumption regarding the differences in job satisfaction levels between employees in state-owned and non-state-owned companies.

H6: Employees who are working in a non-state-owned company are more satisfied than the ones in state-owned company.

Conceptual model

Job satisfaction is influenced by several factors, including salary, work activities, working conditions, career prospects, and interpersonal relationships In this study, employee satisfaction serves as the dependent variable, while the aforementioned factors act as independent variables Additionally, the research examines job satisfaction differences between state-owned and non-state-owned sectors, introducing company type as a moderating variable for sample grouping (Sharma & ctg, as cited in Nguyen, 2011) The conceptual model framework is illustrated in Figure 2 below.

RESEARCH METHODOLOGY

Research design

This research aimed to identify the factors influencing job satisfaction among employees in Vietnamese companies across various industries The study surveyed a diverse group of participants from both state-owned and non-state-owned sectors, allowing for a comprehensive comparison of satisfaction levels between the two The research methodology comprised both qualitative and quantitative approaches, providing a well-rounded analysis of employee satisfaction.

Qualitative research was conducted through direct interviews with three individuals in Ho Chi Minh City This step aimed to assess the clarity and consistency of the measurement scales, ensuring that the survey would be easily comprehensible for all participants.

The quantitative research conducted between October and November 2012 involved collecting samples through online and paper surveys This diverse population was utilized to evaluate measurement scales and test relevant hypotheses.

The scales were developed based on existing theories and research, and were translated into Vietnamese to ensure clarity for all audiences A feedback loop between the researchers and participants was implemented to eliminate any misunderstandings in the surveys Consequently, Scale 2 was established.

In this quantitative research, the reliability of all scales was evaluated using Cronbach Alpha and exploratory factor analysis (EFA) Initially, Cronbach Alpha helped identify reliable scales by excluding variables with a corrected item-total correlation below 0.3 and a Cronbach Alpha lower than 0.6, as outlined by Nunnally & Bernstein (Nguyen, 2011) Subsequently, the EFA method was employed to further analyze the data.

Eliminate variables have corrected item – total correlation less than 0.3

Cronbach Alpha must be greater than 0.6 KMO > 0.5

Sum of squared loading cumulative >50%

The analysis process for estimating the validity of the scale involves applying the method when the Kaiser-Meyer-Olkin (KMO) value exceeds 0.5 and the Bartlett test shows significance with a p-value less than 0.05 Factor loadings below 0.5 are discarded, and the scale is deemed acceptable only if the cumulative sum of squared loadings exceeds fifty percent, as outlined by Nunnally and Bernstein (cited in Nguyen, 2011).

This study employed SPSS for data analysis, complemented by manual coding and categorization Initially, reliability tests were conducted using Cronbach's Alpha to assess the scales Subsequently, the Pearson Correlation Coefficient was utilized to explore significant relationships between independent and dependent variables Finally, Multiple Regression Analysis was performed to evaluate the impact of independent variables on employee satisfaction and to test the associated hypotheses.

Variable Coding

As had been stated in chapter 2, there were five factors affecting on job satisfaction:

(1) salary, (2) work activities, (3) working conditions, (4) career prospects, and (5) relationship These factors were measured by multi – item scales and Liker 7 scales

For each statement, (1) meant totally dissatisfied and (7) meant total satisfaction

The variables coding were in the table 4 below

2 Your level of salary relative to your experience S1

3 Your level of salary bases on your abilities or the job nature

6 The actual job itself WA1

7 The style of supervision that your superiors use WA2

11 The way changes and innovations have implemented WA6

15 The level of job security in your present job WC1

18 The degree to which you feel extended in your job WC4

19 The design or shape of your organization’s structure WC5

23 The degree to which you feel “motivated” by your job CP2

29 The relationships you have with your colleagues R1

30 The relationship you have with your boss R2

31 The relationship you have with your customers R3

33 I feel fairly satisfied with my present job JS1

34 Most days I am enthusiastic about my work JS2

35 Each day of work seems like it will never end JS3

36 I find real enjoyment in my work JS4

37 I consider my job rather unpleasant JS5

Data collection

Hair & ctg (as cited in Nguyen, 2011) stated that the ratio between observations and items is 5:1 That means we must have at least 5 observations for each variable

Therefore, with the scale contained 31 variables, the minimum sample collection was 155 people.

Employee job satisfaction surveys were primarily conducted online using Google Docs, targeting employees from both state-owned and non-state-owned companies A smaller portion of the data, around 20%, was gathered through random paper surveys In total, 211 responses were collected, comprising 72 from state-owned enterprises and 139 from other sectors.

RESEARCH RESULT

Statistics

The study comprised a total sample of 211 participants, consisting of 104 males (49.3%) and 107 females (50.7%) A significant majority, 71.6%, were single, while the remainder were married Educationally, most participants held bachelor's degrees (125 individuals, or 59.2%), with 61 having master's degrees, 23 possessing college degrees, and 2 having high school diplomas Age-wise, over half of the participants (52.1%) were between 26 and 34 years old, while 46% were under 25, and 4 individuals were aged between 44 and 55 In terms of income, nearly 40% earned between 5 to 10 million per month (82 people), while 25.6% reported monthly earnings of less than 5 million.

Thirty five people had income from ten to fifteen millions per month (16.6%)

Approximately 15% of the population earned between 15 to 25 million per month, while 8 individuals received salaries ranging from 25 to 40 million Only 2 individuals earned over 40 million per month More than one-third of the respondents (34.1%) were employed by state-owned companies, and 35% worked for private companies, totaling 74 employees Additionally, 20% of the population was employed by foreign companies, amounting to 42 individuals, while 10.9% worked for joint venture companies.

Table 5: Demographic description 2.2 Variable description

The variables were assessed using a multi-item scale with a 7-point Likert scale, where 1 indicated total dissatisfaction and 7 represented total satisfaction A detailed description of the variables can be found in Table 6 below.

Variable N Mean Std Deviation Min Max

Scale analysis

The result of reliability analysis was on the table below

Scale Mean if Item Deleted

Scale Variance if Item Deleted

Cronbach's Alpha if Item Deleted Salary (S)

Cronbach's Alpha if Item Deleted Work activities (WA)

The style of supervision (WA2) 33.18 39.466 0.520 0.698

Working condition (WC) Cronbach’s Alpha = 0.776

Level of job securities (WC1) 22.71 34.370 0.369 0.777

Career prospects (CP) Cronbach’s Alpha = 0.903

Your efforts are valued (CP1) 23.71 40.323 0.749 0.884

Company image or goal (CP4) 23.69 39.948 0.656 0.899

Your job helps you achieve your ambitions (CP6) 23.76 38.544 0.762 0.882

Cronbach's Alpha if Item Deleted Relationship (R)

Job satisfaction (JS) Cronbach’s Alpha = 0.801

The analysis revealed that while the Cronbach Alpha values for all variables were generally acceptable, two variables fell below the standard threshold due to a Corrected Item-Total Correlation of less than 0.3 Following the guidance of Nunnally & Bernstein (as cited in Nguyen, 2011), it was determined that excluding WA7 and JS5 would enhance the reliability of the variables However, after careful consideration of the significance of both variables, only WA7 was ultimately removed The updated Cronbach Alpha values for the remaining variables are presented in Table 8 below.

Cronbach's Alpha if Item Deleted Salary (S)

Work activities (WA) Cronbach’s Alpha = 0.746

Working condition (WC) Cronbach’s Alpha = 0.776

Level of job securities (WC1) 22.71 34.370 0.369 0.777

Cronbach's Alpha if Item Deleted Career prospects (CP)

Your efforts are valued (CP1) 23.71 40.323 0.749 0.884

Company image or goal (CP4) 23.69 39.948 0.656 0.899

Your job helps you achieve your ambitions (CP6) 23.76 38.544 0.762 0.882

Job satisfaction (JS) Cronbach’s Alpha = 0.801

The validity of the scale was assessed through Exploratory Factor Analysis (EFA), utilizing Principal Axis Factoring for extraction and Promax rotation with Kaiser Normalization Items with values below 0.4 were excluded from the analysis.

Your job enthusiastic 898 Your job satisfaction 881

Company image or goal 507 Job VS unpleasant 470 Working loyalty

Level of job security Decision making Your job helps you achieve your ambition 725

As the result above, the values which were less than 0.5 should be eliminated

After a thorough evaluation of each variable's significance and value, the following variables were eliminated: job security, work loyalty, decision-making, personal performance ability, and company image or goals The resulting reduction in value is presented in Table 10 below.

The way solved conflicts 751 Organization structure 663

Psychological feel 602 Style of supervision 564

Your job helps you achieve your ambition 909

Finally, the main factors affecting on job satisfaction were reduced from five factors to four factors:

Working conditions and activities (WCA): style of supervision, innovation, the way solved conflicts, flexible time, psychological feel, organization structure, and communication.

Career prospect (CP): Task required, the job itself, your efforts are valued, job motivation, personal development, job opportunities, and your job helps you archive your ambitions

Salary (S): Salary based on experiences, salary based on abilities, and incentives.

Relationship (R): Relationship with colleagues, relationship with bosses, and relationship with customers.

Job satisfaction (JF): Your job satisfaction, your job enthusiastic, job enjoyment, working day, and job VS unpleasant.

In a survey of ten individuals, most perceived working conditions and work activities as synonymous, often referring to them collectively as the working environment Only three respondents acknowledged a slight distinction between the two concepts, yet they did not advocate for separating them Instead, they understood "work conditions and activities" as integral to their daily job experiences The newly proposed conceptual model encompasses key factors such as working conditions and activities, career prospects, relationships, salary, and job satisfaction.

Hypothesis H1: Work condition and activities have a positive correlation with job satisfaction.

H2: Career prospects have a positive correlation with job satisfaction.

H3: Salary has a positive correlation with job satisfaction H4: Relationship has a positive correlation with job satisfaction

Analysis

Firstly, In order to test these relevant hypotheses, the correlation between factors was carried out by Pearson correlation The results of these analyses were in the Table 11.

Pearson correlation Job satisfaction (JS) Significant (2 - tailed) Pearson correlation

Working condition and activities (WCA)

This analysis reveals significant correlations between job satisfaction (JS) and various factors, including working conditions and activities (WCA), relationships (R), salary (S), and career prospects (CP).

4.2 Regression analysis a Multi linear regression

Multi-linear regression is employed to analyze the effects of multiple independent variables on a dependent variable (Nguyen, 2011) Before applying the multi-linear regression model, it is essential to verify the regression standardized residuals and ensure homoscedasticity (Nguyen, 2011).

The regression standardized residual and homoscedasticity are suitable and the result is showed in Appendix 2

This study examined the impact of four independent variables—salary, working conditions and activities, relationships, and career prospects—on the dependent variable of job satisfaction (JS) The findings are presented in the tables below.

Std Error of the Estimate

1 656 a 430 419 99514 a Predictors: (Constant), R Relationship, S Salary, WCA Working condition and activities, CP Career prospects

Table 12 Multi linear regression analysis (1)

Total 358.074 210 a Predictors: (Constant), R Relationship, S Salary, WCA Working condition and activities, CP Career prospects b Dependent Variable: JS Job satisfaction

WCA Working condition and activities

.119 088 099 1.346 180 513 1.948 a Dependent Variable: JS Job satisfaction

Table 14 Multi linear regression analysis (3)

We had the regression equation below:

The equation JS = 0.187 + 0.119*WCA + 0.530*CP + 0.062*S + 0.156*R demonstrates the significant contributions of independent variables to the dependent variable Notably, the Variance Inflation Factor (VIF) values for each independent variable were below 10, indicating that they all play a meaningful role in explaining the variations in the dependent variable (Hair et al., as cited in Nguyen, 2011).

The correlation factor R is 0.656, with an adjusted R² of 0.419, indicating that salary (S), relationships (R), working conditions and activities (WCA), and career prospects (CP) collectively account for approximately 42% (41.9%) of the variations in job satisfaction.

The analysis revealed that career prospects (CP) significantly contribute to job satisfaction, with a p-value of less than 0.05 in the multiple linear regression Furthermore, in comparison to simple linear regression, career prospects remained the most influential factor affecting job satisfaction In summary, career prospects play a crucial role in enhancing job satisfaction.

In addition, in order to investigate the impact of company type on job satisfaction, Sharma & ctg (as cited in Nguyen, 2011) stated that we need a moderator variable.

The homologizer variable showed no relationship between dependent and independent variables To test the conceptual model with a moderator variable, we divided our samples into homogeneous groups and conducted multiple linear regression for each group Specifically, we categorized our population into state-owned and non-state-owned companies The results of the multiple linear regression for both groups are presented in the tables below.

Company type Mode l R R Square Adjusted R

Std Error of the Estimate

Non-state-owned 1 674 a 454 437 97798 a Predictors: (Constant), WCA Working condition and activities, S Salary, R Relationship, CP Career prospect

Table 15 Multi linear regression analysis between state-owned and non-state- owned companies (1)

ANOVA b Company type Model Sum of

Total 234.622 138 a Predictors: (Constant), WCA Working condition and activities, S Salary, R Relationship, CP Career prospect b Dependent Variable: JS Job satisfaction

We had the regression equation of state-owned companies:

JS = 0.53 + 0.154*R + 0.119*S + 0.360*CP + 0.186*WCA And the regression equation of non-state-owned companies was:

WCA Working condition and activities

.103 112 079 918 360 554 1.806 a Dependent Variable: JS Job satisfaction

The analysis revealed that the adjusted R² for state-owned companies (0.380) was lower than that for non-state-owned companies (0.437), indicating that factors such as salary, relationships, working conditions, activities, and career prospects had a more significant impact on job satisfaction in non-state-owned companies Consequently, employees in non-state-owned sectors reported higher levels of job satisfaction compared to their counterparts in state-owned sectors.

Noticing on β of each variable, we saw that only career prospects had a contribution on job satisfaction in both state-own and non-state-owned companies (sig < 0.05)

However, employees in non-state-owned companies had more ambitious than ones in state-owned sectors (ΒCP (non-state-owned) = 0.619 > BCP (state-owned)= 0.36).

Discussions

H1: Work condition and activities have a positive correlation with job satisfaction.

The regression analysis examining the relationship between working conditions and activities (WCA) and job satisfaction (JS) reveals a regression weight of β = 0.119, with a significance value (P-value) of 0.180 Since the P-value exceeds the 0.05 threshold, we cannot accept hypothesis 1, indicating that working conditions and activities do not significantly contribute to employees' job satisfaction.

H2: Career prospects have a positive correlation with job satisfaction.

The regression analysis reveals a significant positive correlation between career prospects (CP) and job satisfaction (JS), with a regression weight of β = 0.530 and a p-value of 0.000, which is less than the 0.05 threshold Consequently, we accept hypothesis 2, confirming that better career prospects are associated with higher job satisfaction In summary, career prospects positively influence job satisfaction.

H3: Salary has a positive correlation with job satisfaction

The regression analysis indicates that the relationship between salary (S) and job satisfaction (JS) has a regression weight of β = 0.062 and a significant value (P-value) of 0.308, which exceeds the threshold of 0.05 This result suggests that we cannot accept hypothesis 3, as the significant value indicates no substantial relationship Furthermore, the regression weight for salary is the lowest among the variables tested in the multi-linear regression, highlighting that salary does not significantly influence employee job satisfaction in Vietnamese companies.

H4: Relationship has a positive correlation with job satisfaction.

The regression analysis reveals a relationship (R) with job satisfaction (JS) characterized by a regression weight (β) of 0.156 and a significance value (P-value) of 0.068, which exceeds the 0.05 threshold Consequently, we cannot accept hypothesis 4 However, since the significance value is only slightly above 0.05, reducing the reliability of the research to 93% could indicate a contribution to job satisfaction Notably, this relationship accounts for 15.6% of the variance in job satisfaction.

This regression analysis categorizes samples into state-owned and non-state-owned companies, revealing that the adjusted R² for state-owned companies is 0.38, while it is 0.437 for non-state-owned companies This indicates that factors influencing job satisfaction account for 43.7% of the variance in non-state-owned companies compared to 38% in state-owned companies, suggesting that employees in non-state-owned companies report higher job satisfaction Additionally, both groups show a significant p-value of 0.000, validating the findings of this analysis.

Therefore, we accept the hypothesis 5.

The summary of hypothesis testing is in the Table 18:

Work condition and activities have a positive correlation with job satisfaction

H2 Career prospects have a positive correlation with job satisfaction 0.000 Yes

H3 Salary has a positive correlation with job satisfaction 0.308 No

H4 Relationship has a positive correlation with job satisfaction 0.068 No

Employees who are working in a non-state-owned company are more satisfied than the ones in state- owned company

Table 18 Hypothesis testing summary 5.2 Analysis result discussions

The regression equation with standardized regression weight (β) is:

Career prospects significantly influence job satisfaction, as evidenced by the finding that a one-unit increase in career opportunities correlates with a 52% rise in job satisfaction In contrast, other factors like salary, workplace relationships, working conditions, and job activities have minimal impact on employees' overall satisfaction.

Regression analysis with moderator variable

Company type is used as moderator variable or grouping classification After running regression analysis for each group, the regression equations with standardized regression weight (β) are:

Job satisfaction in state-owned companies is influenced by career prospects, as indicated by the equation Job Satisfaction = 0.53 + 0.36 * Career Prospects In contrast, non-state-owned companies show a stronger correlation, with the equation Job Satisfaction = -0.233 + 0.619 * Career Prospects These findings highlight that career prospects are the primary factor affecting job satisfaction in both types of companies, while other factors such as salary, relationships, working conditions, and activities do not contribute significantly.

If career prospects increase 1 unit in state-owned companies, the employees’ job satisfaction will increase 36 percent of a unit.

If career prospects increase 1 unit in non-state-owned companies, the employees’ job satisfaction will increase nearly 62 percent of a unit.

CONCLUSION

Conclusions on the research problem and hypotheses

This thesis investigates the key factors influencing employee job satisfaction, revealing that career prospects are the most significant contributor in both state-owned and non-state-owned companies Additionally, all relevant hypotheses have been thoroughly tested, leading to this conclusion.

Implications for human resource manager

This research highlights that career prospects significantly influence job satisfaction, particularly among young employees under 34 years old, as evidenced by interviews with 207 individuals in this age group Consequently, it is crucial for human resource managers to prioritize providing career advancement opportunities over salary and other working conditions By creating more opportunities for their employees, HR managers can foster a more challenging and fulfilling work environment, ultimately enhancing overall job satisfaction.

Research contributions

This research represents the young employees’ opinion about their job satisfaction

Career prospects are a primary concern for employees, and it is essential for human resource managers to focus on developing career opportunities for their staff By prioritizing employee career development, companies in Vietnam can effectively address the issue of high turnover rates.

Limitations

This study was conducted exclusively in Ho Chi Minh City and utilized non-probability sampling methods for convenience As a result, it may not encompass all scenarios, and the findings may not be entirely accurate.

- The samples of this research are mostly young employees, who are less than

34 years old So, we cannot understand the opinion of senior employees

- This research is done by English, a secondary language So, it causes some troubles for the writer to convey all of the meaning of measurement instrument scales into Vietnamese.

Brayfield, A H., &Rothe, H F (1951) An index of job satisfaction Journal of Applied Psychology, 35, 307-311.

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Cooper, C L., Sloan S J., & William, S (1988) Occupational stress indicator:

Management guide Windsor: NFER-Nelson.

C L Hulin (1966) The effects of community characteristics in measures of job satisfaction Journal of applied psychology, 50, 185 – 192

Herzberg, F (1966) Work and the Nature of Man Cleveland: World Publishing

Herzberg's Motivation-Hygiene Theory [online] Available at: http://www.netmba.com/mgmt/ob/motivation/herzberg/

Laodong.com.vn Retrieved March 17, 2011 from http://laodong.com.vn/Su-kien- binh-luan/Nhay-viec/38845.bld

Leadership and organizational behavior [online] Available at: http://www.nwlink.com/~donclark/leader/leadob.html Maslow, A (1954) Motivation and Personality New York: Harper and Row

McGregor, D (1957) Proceedings of the Fifth Anniversary Convocation of the School of Industrial Management, The Human Side of Enterprise.

Massachusetts Institute of Technology (April 9, 1957).

Nguyen TD (2011) Research method in business Labor – society publisher.

The article by Konstantinos Pouliakas (2008) explores the relationship between bonus intensity and job satisfaction, questioning whether adequate pay is sufficient, excessive pay may lead to adverse effects, or insufficient pay can diminish motivation It emphasizes that finding the right balance in performance-related pay is crucial for enhancing employee satisfaction and overall productivity in the workplace The research suggests that both the amount and the structure of bonuses can significantly influence workers' attitudes and their perception of fairness in compensation.

Towers Watson (May, 2011): HR Market Trends Survey Available from http://www.towerswatson.com/vietnam/

Lam D Nguyen, (2011, Oct) Organizational Characteristics and Employee Overall Satisfaction: A Comparison of State-Owned and Non State-Owned Enterprises in Vietnam The south east Asian journal of management, 5(2), 135 – 158.

Measuring job satisfaction [online] Available at: http://www.makemynotez.com/organizational-behavior/measuring-job- satisfaction/

N van Saane, J K Sluiter, J H A M Verbeek and M H W Frings-Dresen

(2003) Reliability and validity of instruments measuring job satisfaction—a systematic review Occupational Medicine, 53(3), 191–200 DOI:

Steiler, D (2004, July) Translation and validation of the occupational stress indicator for use in France (Unpublished honours thesis) The university of Newcastle – Upon – Tyne Business School

Vietnamese questionnaire

Xin chào quý vị, tôi là Lê Anh Tài, hiện đang theo học chương trình cao học tại Viện Đào Tạo Quốc Tế (ISB) thuộc Trường Đại Học Kinh Tế Thành phố Hồ Chí Minh.

Tôi đang tiến hành nghiên cứu về các yếu tố ảnh hưởng đến sự hài lòng của nhân viên tại các công ty quốc doanh và tư nhân Mong anh/chị dành chút thời gian để hoàn thành bảng khảo sát dưới đây Mọi thông tin sẽ được bảo mật, chỉ có kết quả tổng hợp được công bố Nếu anh/chị quan tâm, báo cáo hoàn chỉnh sẽ được gửi đến để tham khảo Mọi ý kiến đóng góp xin vui lòng gửi về địa chỉ: anhtai_le87@yahoo.com.

Chân thành cám ơn sự hỗ trợ của anh/ chị!

PHẦN I:CÁC YẾU TỐ TÁC ĐỘNG ĐẾN SỰ THỎA MÃN CỦA NHÂN VIÊN

Anh/ chị vui long đánh giá mức độ đồng ý của mình với các phát biểu dưới đây theo qui ước từthấp đến cao như sau:

Hoàn toàn không đồ ng ý

Hơi đồ ng ý Đồ ng ý Hoàn toàn đồ ng ý

TT Nội dung Mức độ đồng ý

I Lương và các khoản tiền thưởng

Mức lương của tôi phụ thuộc vào thâm niên kinh nghiệm và năng lực cũng như tính chất công việc đang đảm nhận Tôi cảm thấy hài lòng với các khoản tiền thưởng mà mình nhận được, ngoại trừ lương cơ bản.

II Tính chất công việc

Tôi thật sự yêu thích công việc hiện tại của mình, đặc biệt là cách quản lý nhân viên tại công ty Công việc này yêu cầu chuyên môn cao và trong môi trường làm việc của tôi, mọi mâu thuẫn đều được giải quyết một cách hiệu quả Khi đưa ra các quyết định quan trọng, tôi luôn nhận được sự đồng ý từ nhiều người, điều này giúp tôi cảm thấy tự tin hơn trong công việc.

II.6 Nhiều biện pháp cải tiến trong công việc được áp dụng trong công ty tôi

II.7 Khối lượng công việc của tôi nhiều hơn so với đồng nghiệp cùng bộphận II.8 Tôi thểhiện hết khả năng của mình vào công việc

III Điều kiện làm việc

Công việc hiện tại của tôi đảm bảo sức khoẻ, cho phép tôi sắp xếp thời gian làm việc một cách linh hoạt và thoải mái Không khí làm việc trong công ty rất dễ chịu, giúp tôi cảm thấy không bị gò bó Cơ cấu tổ chức của công ty đơn giản, hạn chế các thủ tục phức tạp, và cách trao đổi thông tin giữa các bộ phận rõ ràng, không có sự nhầm lẫn.

TT Nội dung Mức độ đồng ý

IV.1 Những nỗlực và đóng góp của tôi cho công ty được ghi nhận IV.2 Tôi được thăng tiến khi gắn bó với công việc

IV.3 Công việc hiện tại mởra cho tôi nhiều cơ hội cho bản thân (mởrộng mối quan hệ, bổsung kỹ năng sống cho bạn, …)

IV.4 Tôi thật sựquan tâm tới hình ảnh của công ty

Công việc hiện tại mang lại cho tôi cơ hội học hỏi và phát triển bản thân, giúp tôi nâng cao kỹ năng và kiến thức Đồng thời, nó cũng hỗ trợ tôi trong việc đạt được những mục tiêu phấn đấu cá nhân, tạo động lực để tôi tiến xa hơn trong sự nghiệp.

Tôi luôn duy trì mối quan hệ tốt đẹp với đồng nghiệp, làm hài lòng sếp về công việc của mình và xây dựng mối quan hệ tích cực với các đối tác.

VI Sựthỏa mãn của nhân viên

Tôi cảm thấy thỏa mãn với công việc hiện tại và hăng say làm việc mỗi ngày Ngày làm việc của tôi dường như không bao giờ kết thúc, nhưng tôi thực sự tìm thấy niềm vui và sự thích thú trong những gì mình đang làm.

VI.5 Tôi ưu tiên giải quyết công việc hơn những bực bội trong công việc

PHẦN II: THÔNG TIN CHUNG

Xin Anh/ Chị vui lòng đánh dấu vào các ô trống thích hợp:

2 Tình trạng hôn nhân Độc thân ( ) Đã kết hôn ( )

6 Loại hình công ty đang làm việc:

Nhà nước: ( )Tư nhân: ( ) Liên doanh: ( )100% vốn nước ngoài: ( )

R ất cám ơn sự giúp đỡ chân tình c ủ a Anh/ Ch ị

English questionnaire

Dear Mr./ Ms., I’m Le Anh Tai I’m studying master at University of Economic Ho Chi Minh City

I am currently researching my master's thesis on the factors influencing job satisfaction, specifically comparing state-owned and non-state-owned enterprises in Vietnam I would greatly appreciate your responses to the questions below.

Your responses will remain confidential, and only aggregated data will be shared from this research If you have any questions or concerns regarding this topic, please feel free to reach out via email at anhtai_le87@yahoo.com Thank you for your cooperation.

PART 1: FACTORS AFFECTING JOB SATISFACTION

To what extend to you agree these statements:

I.1 Your level of salary relative to your experience

I.2 Your level of salary bases on your abilities or the job natureI.3 Your degree of incentive

II.1 The actual job itself II.2 The style of supervision that your superiors use

II.3 The kind of work or tasks that you are required to perform

II.4 The way in which conflicts are resolved in your company.

II.5 The amount of participation which you are given in important decision making II.6 The way changes and innovations have implemented

II.7 The amount of work you are given to do whether too much or too little

II.8 The degree to which your job taps the range of skills which you feel you possess

III.1 The level of job security in your present job

III.2 The amount of flexibility and freedom you feel you have in your job.

III.3 The psychological “feel” or climate that dominates your organization.

The extent to which you feel engaged in your job significantly impacts your overall job satisfaction Additionally, the organizational structure plays a crucial role in shaping workplace dynamics and employee interactions Effective communication and the seamless flow of information throughout the organization are essential for fostering collaboration and enhancing productivity.

IV.1 The feeling you have about the way you and your efforts are valued.

IV.2 The degree to which you feel “motivated” by your job IV.3 Current career opportunities

IV.4 The extent to which you may identify with the public image or goals of your organization

IV.5 The degree to which you feel that you can personally develop or grow in your job

IV.6 The scope your job provides to help you achieve your aspirations and ambitions

V.1 The relationships you have with your colleagues

V.2 The relationship you have with your boss V.3 The relationship you have with your customers

VI.1 I feel fairly satisfied with my present job.

VI.2 Most days I am enthusiastic about my work VI.3 Each day of work seems like it will never end VI.4 I find real enjoyment in my work

VI.5 I consider my job rather unpleasant

10-15 million VND ( ) Upper 40 million VND ( )

State owned: ( ) Private: ( ) Joint stock: ( ) Foreigner: ( )

Many thanks for your supporting

Tiêu đề	Factors Affecting Job Satisfaction: A Comparison Between State-Owned And Non State-Owned Enterprises In Viet Nam
Tác giả	Le Anh Tai
Người hướng dẫn	Dr. Nguyen Huu Lam
Trường học	University of Economics Ho Chi Minh City
Chuyên ngành	Master of Business (Honours)
Thể loại	thesis
Năm xuất bản	2012
Thành phố	Ho Chi Minh City

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