INTRODUCTION
RESEARCH BACKGROUND
The recent financial crisis poses significant challenges for countries and businesses in the global market, prompting many nations to implement necessary changes to navigate and overcome this difficult period.
Vietnam, as a developing country, faces unique challenges from globalization that require a strategic approach to human resource management Key issues include fostering partnerships for economic recovery, navigating relationships with large foreign companies, addressing concerns about fraud and trust in E-commerce, and implementing tailored recovery and growth strategies that align with the specific development agendas of various regions.
Vietnamese senior executives are increasingly adopting a strategic approach to human capital, recognizing it as a key driver of organizational success However, the competitiveness and quality of human resources in Vietnamese companies remain relatively low compared to other nations According to the Labor and Social Trends report in Vietnam, this highlights the urgent need for improvement in the workforce's capabilities.
Vietnam's labor force faces significant challenges, with nearly two-thirds lacking technical education, resulting in a predominantly unskilled workforce This has contributed to the country's low productivity levels, which stand at only 61.4% of the average for Asian countries To improve its economic standing, Vietnam must focus on increasing labor productivity and enhancing the competitiveness of its workforce.
To enhance its position in regional and global production networks, Vietnam must focus on improving its economic growth and the quality of its labor force Addressing critical issues in human resources is essential for achieving these objectives, as highlighted in the International Labor Organization Report.
RESEARCH PROBLEMS
The banking industry is crucial to any economy, serving as delegated monitors to ensure firms effectively utilize their allocated resources and playing a vital role in executing macroeconomic policies In response to the rapidly changing business environment, banks have evolved to meet the diverse needs of their customers, offering a range of valuable services beyond traditional banking This shift not only aims to enhance customer satisfaction but also requires bank employees to actively sell various value-added services, exceeding the standard expectations of excellent customer service.
Despite significant improvements in banking services over recent years, Vietnam's banking sector remains in its early stages The outdated banking systems and traditional habits of local residents have hindered access to finance for the country's sizable population of bankable yet underbanked households and enterprises Moving forward, Vietnamese banks must navigate a competitive landscape that includes both local and numerous foreign-owned banks To thrive, banks will require knowledgeable employees who can provide tailored advice and attract more customers to utilize a broader range of banking services.
The banking industry has experienced rapid growth in human resources, both in terms of quantity and quality, making it one of the fastest-growing sectors Over the past decade, it has consistently attracted job seekers, highlighting its appeal as a career choice From 2000 onwards, the average growth in human resources within the banking sector has been significant, reflecting its dynamic nature and ongoing development.
2010 was about 10% each year (Nguyen, 2012) Unfortunately, the demand of banking employees is forecasted to be in the down –trend in the next few years
Experts in the banking industry predict that many banks will reduce their workforce by the end of 2012 and into 2013 due to macroeconomic challenges and declining profits However, banks are expected to exercise caution by focusing on improving the quality of their labor force This will involve adjustments to human resources policies, particularly in training and recruitment, with an emphasis on attracting qualified employees who can enhance the overall performance of the banking sector.
Employee performance is crucial to a bank's productivity and profitability Bank managers must assess employee job satisfaction, as satisfied employees demonstrate strong commitment and effort, leading to optimal performance This not only enhances individual performance but also fosters a positive organizational image and boosts overall bank performance.
As forementionded reasons, it is necessary for bank‟s managers to investigate which factors affect the job performance of their employees in Vietnamese banking industry
Numerous studies indicate that sustainable competitive advantages are most effectively achieved through context-specific, cumulative, renewable factors that are difficult to replicate According to a comprehensive study by Luthans et al (2007), the integration of human resources plays a crucial role in developing these unique advantages.
4 social, and now psychological capital can have great impact on job performance than any of the previously listed resources in separately”
While numerous studies have explored the relationship between positive organizational behaviors and job performance, much of the research has predominantly focused on Western countries, particularly in the U.S and Midwest In the Asian context, there is a notable emphasis on developed nations such as Singapore, China, and Taiwan, with less attention given to developing countries like Vietnam, Laos, and Cambodia In Vietnam, existing research has primarily examined job satisfaction and performance, often prioritizing factors like the working environment, leadership styles, and organizational commitment over employees' Psychological Capital Recent studies, such as those by Nguyen and Nguyen (2012), have begun to address Psychological Capital and Quality of Working Life, but there remains a significant gap in research targeting these areas within various industries in the Vietnamese market.
This study aims to examine the factors influencing employee job performance in the Vietnamese banking industry, with a particular focus on Psychological Capital and Quality of Working Life.
RESEARCH OBJECTIVES
A research objective, as defined by Zikmund (1997, p.89), represents the researcher's interpretation of a business problem These objectives articulate the research's purpose in measurable terms and establish criteria for the expected outcomes In addressing the previously identified research problem, this study outlines specific objectives to guide its investigation.
• Identify factors that affect job performance of employees in the Vietnamese banking industry, specify to factors that belong to psychological capital and quality of working life
• Determine the degree of the impact of each factor to job performance of employees in the Vietnamese banking industry
Research questions involve the research translation of “problem” into the need for inquiry The research problems defined above leads to the following research questions:
• What are factors that impact on job performance of the employees in the Vietnamese banking industry?
• What are the effects of self – efficacy, hope, optimism, resiliency, survival needs, belonging needs and knowledge needs on the job performance of employees in the Vietnamese banking industry?
RESEARCH METHODOLOGY AND SCOPES
This study focuses on bank employees in Ho Chi Minh City, a major economic hub in Vietnam The findings from this research can serve as a representative sample for the broader context of Vietnam and can be utilized for future reference and analysis.
The author employs data analysis tools like Microsoft Excel and SPSS to conduct the study, utilizing Descriptive Statistics and Graphs for initial data handling Subsequently, the analysis includes testing scale reliability with Cronbach's Alpha, performing Factor Analysis, and applying Linear Regression to examine the relationships between independent and dependent variables.
The research only approaches into factors concerning in Psychological Capital, quality of working life with the job performance The other factors such as:
Personality traits or traits – like characteristics such as found in the Big Five
6 dimensions, Organizational Citizenship Behavior, Organizational Commitment… will be out of the topic of this research.
STRUCTURE OF THE RESEARCH
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 and Hypotheses
This chapter presents a comprehensive literature review focusing on two primary constructs: psychological capital and quality of working life It defines and explores related concepts, including self-efficacy, hope, optimism, resiliency, survival needs, belonging needs, and knowledge needs Additionally, the chapter outlines the study's conceptual model and hypotheses, establishing a framework for understanding the interplay between these constructs.
This chapter outlines the research design and methodology, detailing the processes undertaken to achieve the research objectives and scopes established in Chapter 1, while also integrating insights from the literature review and empirical model discussed in Chapter 2.
Chapter 4: Data Analysis and Data Results
Chapter 4 presents the characteristics of research samples and presents the result of the research after analyzing data Based on the results, the author will make deep analysis about each factor that impact on job performance
Chapter 5: Conclusions, Implications and Limitations
Chapter 5 presents main conclusions and implications based on the results of the previous chapters, as well as the limitations of this study
LITERATURE REVIEW AND HYPOTHESES
POSITIVE PSYCHOLOGICAL CAPITAL
According to the resource-based theory of the firm, organizations can achieve a sustained competitive advantage by cultivating unique value-creating resources and capabilities that are rare and challenging for competitors to replicate (Barney, 1995).
According to the resource-based view of the firm, effectively developing and integrating positive psychological capital with existing assets can create valuable, rare, and hard-to-imitate intangible resources, ultimately serving as a source of competitive advantage for organizations.
Luthans (2004) and colleagues highlight three key constructs essential for creating value and sustaining success: economic capital, representing resources and assets ("What you have"), human capital, encompassing knowledge and skills ("What you know"), and social capital, which pertains to relationships and networks ("Who you know").
In today's workplace, managers increasingly recognize the importance of positive psychology in their employees This study explores the literature on positive psychology and its relationship with positive organizational behavior, highlighting its significance in fostering a productive work environment.
Moreover, the author put more effort to explore the literature to four specific factors: self – efficacy, optimism, hope, resilience
“Positive psychology” revisits the „average person‟ with an interest in finding out what works, what is right, and what is improving (Sheldon & King,
Positive organizational behavior, influenced by positive psychology, focuses on the study and application of human resource strengths and psychological capacities that can be measured and developed This approach emphasizes fostering a positive work environment to enhance employee well-being and performance.
9 and effectively managed for performance improvement” (Luthans, 2002b, p 59; also see Nelson & Cooper, 2007; Turner, Barling, & Zaharatos, 2002; Wright,
According to Luthans (2004) and colleagues, leveraging positive psychology and psychological capital can enhance individual performance outcomes We strongly believe that fostering positive psychological strengths is particularly crucial for organizations striving to thrive in the fast-paced and competitive banking sector.
Psychological Capital encompasses key psychological capacities such as hope, resilience, optimism, and self-efficacy, which collectively form a higher-order core factor that enhances positive organizational behavior.
(Luthans & Youssef, 2004; Luthans et al 2007)
PysCap as a State-like Construct:
PsyCap and its components should be viewed through the lens of positive psychology, emphasizing their dynamic nature rather than as static traits While positive traits and states may exhibit some similarities and shared outcomes, recent theoretical advancements and empirical studies highlight their unique characteristics and distinct validity (Avey et al., 2008).
In most studies, the authors pay attention to the PsyCap as state-like and base on the positive psychological literature which relevant to positive organizational behavior
PsyCap‟s foundation also drawn from social cognitive theory (Bandura,
1997), which establishes reciprocal interactions9 between person, the environment, and past behavior However, in the recently theory, the PsyCap can be defined as:
A positive psychological state of development encompasses several key attributes: self-efficacy, which instills confidence to tackle challenging tasks; optimism, fostering a belief in current and future success; hope, encouraging persistence toward goals and adaptability when faced with obstacles; and resiliency, enabling individuals to recover from adversity and achieve greater success.
Psychological Capital (PsyCap) is fundamentally defined by the interplay of hope, efficacy, resilience, and optimism Research indicates that PsyCap has a more significant impact on performance compared to each of its individual components, such as hope, resilience, optimism, and self-efficacy.
This study aims to examine the individual effects of hope, resilience, optimism, and efficacy on job performance, necessitating a thorough literature review of each aspect.
Numerous studies have highlighted the significant roles of hope, resilience, optimism, and self-efficacy in personal development Bandura (1997) identified effective strategies for enhancing self-efficacy, further elaborated in 2000 Additionally, Snyder (2000) presented evidence that hope can be cultivated, introducing the state–hope scale to measure this construct.
In their research, Carver and Scheier (2005) explore effective strategies for cultivating optimism, while Shifren and Hooker (1995) provide insights into its situational measurement Seligman (1998) highlights the concept of "learned optimism" in his acclaimed book, presenting evidence for its cultivation Additionally, Masten and Reed (2002) examine successful resilience-based developmental interventions, and Wagnild and Young (1993) contribute to this field with their own developed strategies.
11 state-like measure of it Each of these contributions in the positive psychology literature have supported that these four constructs can be developed
There are several definitions about the term “Self–efficacy”: Self-efficacy has been argued to best meet the inclusion criteria for PsyCap (Luthans, Youssef, &
Avolio, 2007) Self-efficacy represents a positive belief (not ability per se nor outcome expectancy) and is defined for the workplace as:
Self-efficacy refers to an employee's belief in their ability to harness motivation, cognitive resources, and actions necessary for successfully completing specific tasks within a particular context A comprehensive meta-analysis revealed a strong positive correlation between self-efficacy and work-related performance (Stajkovic & Luthans, 1998a; Bandura, 2000; Bandura & Locke, 2003).
Parker (1998): Self –efficacy refers to “people judgments about their capacity to perform particular tasks”
Self-efficacy is a domain-specific belief that can be cultivated for particular tasks through mastery experiences, modeling, social persuasion, and physiological and psychological arousal, as noted by Bandura (1997).
(1998, p.53) has concluded: “Comparative studies show that domain linked measures of perceived efficacy are good predictors of motivation and action.”
Based on studies of Stajkovic and Luthans 1998, Legal and Meyer 2009, these studies show that self-efficacy has a positive impact on performance The author raises the first hypothesis:
H1: Self- efficacy is positively related to job performance
QUALITY OF WORKING LIFE
The quality of working life is crucial for banks as it directly impacts employee productivity and performance Research shows that organizations must create work conditions that fulfill employees' needs When employees receive adequate support, they are more likely to contribute positively to their job performance Therefore, it is essential to explore the factors influencing the quality of working life that affect job performance.
Up to date, there are different definitions about the concept “Quality of working life”
Hackman and Oldham (1980) emphasize the importance of quality working conditions in connecting the work environment to individual needs They assert that when organizational rewards—such as compensation, promotions, recognition, and professional development—align with employee expectations, it results in enhanced personal satisfaction and an overall improved quality of life.
Davis (1993) defines the Quality of Working Life as the relationship between employees' needs and their overall working environment, emphasizing the importance of human dimensions.
According to Sirgy, M Joseph; Efraty, David; Siegel, Phillip; Dong-Jin, Lee
The concept of quality of life in this research, developed in 2001, is rooted in Abraham Maslow's theories from 1954 and spillover theories It encompasses four categories of needs, including seven specific needs aligned with Maslow's hierarchy, as measured by Porter’s Need Satisfaction Questionnaire from 1961 These categories include survival needs, social needs, ego needs, and self-actualization needs.
While spillover theory believed that: Satisfaction of life may influence in another such as satisfaction with one‟s job may influence satisfaction in other life domains: family, social, health, finance…
In this study, the authors have refined existing theories and identified seven key needs, leading to the development of a new measure for quality of working life This concept encompasses these seven essential needs, highlighting their significance in enhancing overall workplace satisfaction and well-being.
Understanding the seven major human needs is essential for personal development and well-being These needs include the satisfaction of health and safety requirements, economic and family needs, social connections, esteem, self-actualization, knowledge, and aesthetic appreciation Each type of need plays a crucial role in fostering a balanced and fulfilling life, highlighting the importance of addressing all aspects for overall satisfaction and growth.
Satisfaction of health and safety needs: The employees perceived
Employees require a safe work environment and job-related health benefits Additionally, promoting good health through workplace encouragement of preventative healthcare measures is essential for their overall well-being.
Meeting both economic and family needs is essential for employee satisfaction, encompassing three key dimensions: competitive pay, job security that assures employees they are unlikely to face layoffs, and sufficient time away from work to fulfill family obligations.
Satisfaction of social needs encompasses two key dimensions: first, employees experience positive social interactions and collegiality in the workplace; second, they have sufficient time away from work to relax and enjoy leisure activities.
Satisfaction of esteem needs is crucial for employees, as it encompasses the recognition and appreciation of their contributions both within the organization and in the broader community This can manifest through awards and accolades for exemplary performance at work, as well as recognition from local communities or professional associations, highlighting the value of their efforts on behalf of the organization.
Satisfaction of actualization needs is the realization of one‟s potential within the organization as well as the realization of one‟s potential as a professional
Satisfaction of knowledge needs which involves the two dimensions:
The motivation for learning to enhance job skills and enhance professional skills
Satisfaction of aesthetics needs which involves two dimensions: The creativity at work and the personal creativity and general aesthetics
Nguyen and Nguyen (2010) used the concept “Survival needs” to present both the satisfaction of health and safety needs as well as satisfaction of economic
Belonging needs encompass the fulfillment of social and esteem requirements, while knowledge needs address the satisfaction of actualization, knowledge, and aesthetic desires.
The quality of working life significantly influences employee satisfaction, which in turn enhances job performance Employee satisfaction is closely tied to how well a job meets their fundamental human needs To investigate this relationship further, three hypotheses are proposed to assess the impact of working life quality on job performance.
H5: Survival needs is positively related to job performance H6: Belonging needs is positively related to job performance H7: Knowledge needs is positively related to job performance
JOB PERFORMANCE
Job performance is crucial for the success of organizations, particularly in the banking sector, where employee motivation plays a significant role High levels of motivation encourage employees to attend work consistently, engage in their tasks diligently, and adapt flexibly to challenges Conversely, job dissatisfaction leads to decreased performance and lower contributions Therefore, enhancing job performance among human resources in the banking industry is essential, necessitating an exploration of the factors that influence employee performance.
Job performance is the construct that occurs widely in many studies related to work relationship, human resources: Katz &Kahn(1978); Borman and Motowidlo (1993; Motowidlo, Borman, and Schmit (1997); Newman, Kinney, & Farr (2004);
Viswesvaran, Schmidt, and Ones (2005).Campbell, McCloy, Oppler, and Sager
Performance is defined by the observable behaviors that employees engage in, rather than being a result of those behaviors According to Campbell et al (1993), these behaviors must also align with the organization's goals to be considered effective performance.
Job performance encompasses the activities tied to an employee's formal role that contribute to their overall effectiveness in completing tasks It typically includes two key dimensions: the effort exerted by the employee within the organization and the pursuit of specific goals.
Secondly, the actual results that organization desire to obtain.
RESEARCH METHODOLOGY
RESEARCH DESIGN
This study aims to explore the factors influencing job performance within the Vietnamese banking industry, focusing on employees as the primary unit of observation The research encompasses individuals working across various departments in different types of banks located in Ho Chi Minh City, including state-owned banks, joint-stock commercial banks, joint-venture banks, wholly foreign-owned banks, and branches of foreign banks.
The study's scale was developed based on established theories and utilized a framework previously employed by numerous researchers Primarily, it drew from the scale created by Nguyen & Nguyen (2012), who adapted elements from other authors to enhance its applicability for their research.
Self- efficacy was measured by 4 items borrowed from scale of Parker (1998):
I feel confident of analyzing a long-term problem to find a solution
I feel confident of presenting my work area in meetings with senior management
I feel confident of contacting people outside the company
I feel confident of presenting information to a group of colleagues
Hope was measured by 3 items borrowed from Snyder, Rand, and Sigmon (2002)
At the present time, I am energetically pursuing my goals
There are a lot of ways around any problem that I am facing
I can think many ways to reach my current goals
Optimism was measured by 3 items borrowed from Carver and Scheier (2002):
In uncertain times, I usually expect the best
I always expect things go to my way Overall, I expect more good things to happen to me than bad
Resiliency was measured by 3 items borrowed from Block and Kremen (1996):
I quickly get over and recover from being startled
I am generous with my colleagues
I get over my anger at someone reasonable quickly
Scale of Survival needs, belonging needs and knowledge need was measured by 9 items borrow from Sirgy et al 2001
My job provides good health benefits
I am satisfied with what I‟m getting paid for my work
My job does well for my family
I have good friends at work
I have enough time away from work to enjoy other things in life
I feel that my job allows me to realize my full potential
My job allows me to sharpen my professional skills
My job helps me develop my creativity
Job performance base on self – evaluation of the employees uses 4 scales borrowed from Rego and Cunhan 2008
I believe I am an effective employee
I am happy with the quality of my work output
My manager believes I am an efficient worker
My colleagues believe I am a very productive employee
The author employed a Likert scale ranging from (1) strongly disagree to (7) strongly agree to assess respondents' opinions Additionally, the author outlined the research processes undertaken to gather and analyze the data.
Building on earlier studies regarding the influence of psychological capital and quality of work life on job performance, the author formulated seven hypotheses, detailed in Chapter 2 Subsequently, the author refined the model and developed a preliminary questionnaire scale for the research.
After having the preliminary scale, the author made deeply interviews with 6-8 employees to investigate whether they understand clearly about the scale or not
In the interview, the author aimed to assess the scale's appropriateness for research in Vietnam while also seeking suggestions from interviewees to enhance the scale's effectiveness.
The qualitative research revealed that respondents clearly understood all scales presented They concurred on seven key factors influencing their job performance in the banking sector.
Following preliminary research, the author refined the questionnaire to enhance clarity for respondents Once confident in its design, the author proceeded with the official research across various dimensions The quantitative research process was conducted systematically.
The author created a questionnaire in English, which was subsequently translated into Vietnamese for research purposes, and the results were later translated back into English (refer to Appendix C & D).
- Step 2: The author identifed the sample size of the research:
The appropriate sample size is a crucial factor in research, with many experts suggesting that it should be determined by the estimation method used A consensus among researchers indicates that a minimum of five samples per scale is ideal, as noted by Bollen (1989), emphasizing that "the size of the sample is at least five samples for each scale."
The model in this study consist seven factors with twenty – six scales so that the necessary sample size should be: 26*50 observations
Exploratory Factor Analysis (EFA) is appropriate for sample sizes exceeding 100, with a minimum of five observations per scale (Hair et al., 2006) Consequently, this research necessitates a minimum sample size of 130 observations, calculated as n=5*26.
For standard multiple regression analysis, the required sample is recommended by Tabachnick and Fidell (1991) should be: n > 50 + 8m (where m number of number of independent variables)
There are 7 independent variables in this research Hence the minimum sample required to run multiple regression in this study is: n > 50 + 8 * 7= 106 observations
The author used the sample size at 300 observation was appropriate for EFA and multiple regression analysis
Collecting sample methodology: The author chose the convenient sampling for this study
- Step 3: The author issued the questionnaire to the interviewees
The author distributed 300 questionnaires to employees across various banks in Ho Chi Minh City during the research period, with assistance from the banks' human resources departments in the data collection process.
Table 3.1 The result of delivery questionnaires
Sai Gon Thuong Tin Commercial Joint
Viet Nam Export - Import Commercial
Joint - Venture Banks Vina Siam Bank 30 24 80%
Foreign Banks‟ s Branch United Oversea Bank 20 15 75%
- Step 4: The author received the answered questionnaire from the interviewee
The author received a total of 276 completed questionnaires, resulting in a response rate of 92% (276 out of 300) Upon review, 76 questionnaires were found to contain errors and were subsequently excluded from the analysis Consequently, the final dataset for the study comprised 209 valid observations, which exceeds the minimum required sample size of 130 observations.
-Step 5: Data analyzing (Given specific processes in Data Analysis Method)
Data code: Data was conducted and analyzed by the SPSS with the scale as given below:
R1 I feel confident of analyzing a long-term problem to find a solution
R2 I feel confident of presenting my work area in meetings with senior management
R3 I feel confident of contacting people outside the company R4 I feel confident of presenting information to a group of colleagues
R5 In uncertain times, I usually expect the best R6 I always expect things go to my way
R7 Overall, I expect more good things to happen to me than bad
R8 At the present time, I am energetically pursuing my goals R9 There are a lot of ways around any problem that I am facing R10 I can think many ways to reach my current goals
R11 I quickly get over and recover from being startled R12 I am generous with my colleagues
R13 I get over my anger at someone reasonable quickly
R14 My job provides good health benefits R15 I am satisfied with what I‟m getting paid for my work R16 My job does well for my family
R17 I have good friends at work R18 I have enough time away from work to enjoy other things in life R19 I feel appreciated at work
R20 I feel that my job allows me to realize my full potential R21 My job allows me to sharpen my professional skills R22 My job helps me develop my creativity
R23 I believe I am an effective employee R24 I am happy with the quality of my work output R25 My manager believes I am an efficient worker R26 My colleagues believe I am a very productive employee
DATA ANALYSIS METHOD
Data analysis was conducted using SPSS 11.5 and Microsoft Excel, employing key tools such as Descriptive Statistics and Graphs for sample characterization Subsequently, scale reliability was assessed through Cronbach's Alpha, followed by Factor Analysis and Linear Regression to explore the relationships between independent and dependent variables Descriptive analysis was performed to identify the characteristics of the study sample.
Exploratory Factor Analysis was used to identify factors that affect to the job performance of employees in banking industry
Multiple regression was used to identify the degree of the impact of each factor to the job performance
DATA ANALYSIS AND DATA RESULT
CHARACTERISTICS OF RESEARCH SAMPLES
The study surveyed 209 respondents, comprising 110 males (52.63%) and 99 females (47.37%), all employed in various positions within banks The majority of participants were credit officers, representing 54.5% of the sample, followed by tellers at approximately 22.5% A significant portion of the workforce is young, with employees under 25 years old making up 15.8% of the total, while the largest age group falls between 25 to 30 years, accounting for 52.5% of respondents.
This study gives an interesting result about the number of years of the respondents With the number of years at the bank in the range from 2 to 10 years
Most of respondents have experiences about banking industry Consequently, we can believe on their answers and their expression about their job, their level of factors affect to their job
Net income refers to the average monthly earnings received by employees Over the past decade, the banking industry has experienced significant growth, leading to an influx of employees Notably, the average net income in the banking sector surpasses that of many other industries, positioning it as one of the highest-paying fields.
In the oil and gas sector of Petro Vietnam, data analysis reveals that 66.1% of respondents reported a net income ranging from 6 to 20 million VND Additionally, 20.6% of participants earned over 20 million VND, while the remaining respondents, accounting for the smallest percentage, reported a net income below 6 million VND.
Job at bank of respondents
Kind of bank of respondents
Years at the bank job of respondents
Net income per month of respondents
4.2 THE RELIABILITY TEST: THE CRONBACH‟S ALPHA TEST
The research adapted the scales from the study "Psychological Capital, Quality of Working Life and Quality of Life of Marketers: Evidence from Vietnam" by Nguyen and Nguyen (2010) to better align with the banking industry.
Testing Cronbach's Alpha is essential for evaluating the reliability of scales for each construct This statistical measure helps identify and eliminate unstandardized or unsuitable scales Typically, if the Corrected Item-Total Correlation for each item is moderately high, ideally above 0.3 (Burnstein & Nunnally, 1994), the item is likely well correlated with other items and contributes positively to the overall scale Conversely, items with a negative or low correlation (below 0.3) should be scrutinized for potential wording issues or conceptual misalignment.
The result of Cronbach „s Alpha test for each construct were summarized in tables below
Self-efficacy is measured through four items rated on a 7-point Likert scale, ranging from strongly disagree (1) to strongly agree (7) We evaluated the interrelation of these items to determine their suitability for combining them into a composite measure labeled "Self-efficacy."
The Alpha value of 0.86 for the four items demonstrates high internal consistency reliability for the self-efficacy scale Each item's corrected item-total correlation exceeds 0.3, affirming their suitability for inclusion Although item R4, "I feel confident presenting information to a group of colleagues," has a corrected item-total correlation of 0.58, it still meets the necessary criteria for the scale.
Our study evaluated the interrelation of three items to determine their suitability for a composite labeled "Optimism." With an alpha value of 0.75, the results indicate that these items are reliable and acceptable for creating a cohesive measure of optimism.
The self-efficacy measure showed a lower Cronbach's Alpha than desired, with three items exhibiting corrected item-total correlations above 0.3 Notably, item R5, "In uncertain times, I usually expect the best," had a correlation of only 0.46, which, while acceptable, was lower than the other items Removing this item increased the Cronbach's Alpha from 0.76 to 0.80; however, the overall scale's Alpha remained reasonable, leading the author to retain this item to effectively measure "Optimism."
The hope is composed of only three items It was tested whether these items go together (interrelate) well enough to add them for the use as a composite labeled
The hope scale demonstrated a high reliability, with a total Alpha coefficient of 0.78, indicating that it effectively measures the construct of "Hope." Additionally, all three items on the scale exhibited corrected item-total correlations exceeding 0.3, confirming their acceptability in assessing hope.
The same to hope scale, resilience is composed of three items It was tested whether these items go together (interrelate) well enough to add them for the use as
The composite labeled "Resilience" demonstrated a high reliability with an Alpha coefficient of 0.72, indicating that the three items used to measure this construct are acceptable and effective for assessing resilience.
Survival needs are defined by three key items that effectively interrelate, forming a cohesive composite termed "Survival needs." The reliability of this construct was validated with a high Alpha score of 0.81, indicating strong internal consistency and acceptability for use in research and analysis.
Belonging needs consist of three key components, and similar to survival needs, this factor exhibits a high alpha score of 0.85, indicating strong reliability The scale used to measure this factor demonstrates excellent reliability.
The knowledge needs scale consists of three key components, similar to the survival needs scale, and demonstrates a high reliability with an alpha score of 0.84 This indicates that the scale is highly acceptable for measuring this factor effectively.
Job performance consisted four items The Alpha of scale of job performance was:
0.7788 Hence, we can rely on the result of job performance when using these scales for measuring the job performance
Scale Mean if Item Deleted
Scale Variance if Item Deleted
Cronbach's Alpha if Item Deleted
In summary, eight scales demonstrated a Cronbach's Alpha exceeding 0.6 and corrected Item-Total correlations above 0.3, confirming their reliability Consequently, these validated measures were utilized to develop the primary survey for testing the study's hypotheses.
For the next step, the author made the exploratory factor analysis (EFA)
EXPLORATORY FACTOR ANALYSIS
The author conducted a principal component analysis on job performance variables, identifying seven key factors: self-efficacy, hope, optimism, resilience, survival needs, belonging needs, and knowledge needs.
Now, we tested if the items that were written to index each of these constructs actually do “hang together”
The KMO value of 0.74 indicates that there are sufficient items for each factor in the analysis Additionally, the significant Bartlett's test (p < 0.05) suggests that the variables are highly correlated, providing a solid foundation for conducting factor analysis.
By doing EFA (principal components analysis, rotation method: Varimax) extracted seven factors from 22 items measuring: self- efficacy, hope, optimism, resilience, survival needs, belonging needs, knowledge needs
Note that seven factors had eigenvalues (refer to the variance explained or account for) greater than 1.0, which is a common criterion for a factor to be useful
In this study, seven factors had high eigenvalues (4,4;3,03;2,55;2,06;1,49;1,29;1,25)
Table 4.3 Total Variance Explained of Independent Variables
The cumulative of the seven factors accounted for 73,24 percent of variance
The Rotated Factor Matrix illustrates the items along with their factor loadings for the rotated factors, where loadings exceeding 0.4 are considered acceptable The items are organized into seven distinct groups based on their high loadings.
Table 4.4 Rotate Factor Matrix of Independent Variables
EFA for Dependent Variable – Job Performance
The KMO value of 0.76 indicates that there are sufficient items for each factor in the analysis The KMO test assesses whether enough items are predicted by each factor, while the Bartlett test, with a significance level below 5%, confirms that the variables are highly correlated, making it appropriate to conduct factor analysis Additionally, the eigenvalues provide further insights into the factor structure.
38 performance with 61,85 percent of variance extracted Factor loading for 4 items was high enough:
Table 4.5 Factor Matrix of Dependent Variable
R23: I believe I am an effective employee 845
R24: I am happy with the quality of my work output 715
R25: My manager believes I am an efficient worker 773
R26: My colleagues believe I am a very productive employee 807
Extraction Method: Principal Component Analysis; 1 components extracted.
MULTIPLE REGRESSION ANALYSIS
Multiple regression analysis follows the Cronbach Alpha Analysis and Exploratory Factor Analysis (EFA) to evaluate the influence of seven identified factors on job performance This analytical method aims to quantify the extent to which each factor affects job performance.
Multiple regression analysis relies on key assumptions: the relationships between each independent variable and the dependent variable must be linear, and the residuals, or errors, should be normally distributed and uncorrelated with the predictors.
However, we need to investigate the level of correlations and the relationship of independent variable and dependent variable
The author utilized Curve Estimation Graphs and Scatter Graphs to analyze the correlation between job performance and various predictors The findings indicated a linear regression relationship between job performance and each predictor.
The normal distribution of dependent variable was test by histogram and scatter plot (See Appendix E) The result of this test was support for the normal distribution
When performing multiple regression analysis, it is crucial for the author to pay close attention to multicollinearity, as this issue can result in misleading or inaccurate outcomes Multicollinearity arises when there are high intercorrelations among some of the independent variables.
Survival needs Hope Optimism Resilience
The correlations matrix below indicates low correlations among predictors indicate it is likely that there will be a low possibility with multicollinearity
The Pearson test results from the correlations matrix revealed a value lower than 0.8, with a significant value (Sig < 5%), indicating a sustained relationship between the predictors and the independent variable.
4.1.1 Gender of respondents as an independent variable Table 4.7 Model Summary(c) when adding gender as an independent variable
Std Error of the Estimate
1 Predictors: (Constant), Resilience, Optimism, Self-efficacy, Survival needs, Knowledge needs, Hope, Belonging needs; 2 Predictors: (Constant), Resilience, Optimism, Self-efficacy, Survival needs, Knowledge needs, Hope, Belonging needs, Gender of Respondent; Dependent Variable: JOB PERFORMANCE
When added the control variable name “Gender” as an independent variable, the model is not significant Hence, the gender was not a factor to investigate factors impact job performance
4.4.2 Age of Respondent as an independent variable
The author examined the impact of including the respondent's age as an independent variable in the model However, the findings indicated that the model did not achieve significance with the addition of age as a variable.
Table 4.8 Model Summary(c) when adding age as an independent variable
Std Error of the Estimate
The analysis revealed that the control variables of gender and age did not significantly impact job performance, leading to their exclusion from the model For detailed coefficients related to these variables, please refer to Appendix F.
THE FINAL MODEL FOR THE RESEARCH
The author selected a final model for the study based on prior analysis, identifying seven dependent variables: self-efficacy, hope, optimism, resilience, survival needs, belonging needs, and knowledge needs.
Model R R Square Adjusted R Square Std Error of the Estimate
The adjusted R Square value of 0.588 signifies that 58.8% of the variance can be predicted by the independent variable, demonstrating that the model used in this study is highly suitable The ANOVA results for the final model are presented in Table 4.10.
Model Sum of Squares Df Mean Square F Sig
The value of F was 43,39 and sig
