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MEIHO UNIVERSITY Graduate Institute of Business and Management MASTERS THESIS The Effectiveness of HRM in an Import Export Joint Stock Company in HCMC – Cosimex In partial fulfillment of the requirements for the degree of Masters of Business Administration Advisor: Dr Ching-Wen Mo Co-advisor: Dr Nguyen Minh Tuan Graduate Student: Vu Quoc Thang December, 2010 ACKNOWLEDGMENTS Today, especially from 2006, when Vietnam becomes WTO membership; the biggest problem that it has to face is How to successfully assimilate into worldwide economy; in which, the factor of human resource management is one of the most important The study on the personnel work below is a case one I receive knowledge and training from the Master of Business Administration (MBA) Program of Meiho University (MU) and Hochiminh City University of Industry (HUI) Then I apply them into the reality of human resource management of my company Finally, I analyze, recognize my own problems and go to conclusions and recommendations for my own company I am very grateful for the dedication, and enthusiasm that I receive from MU and HUI professors, who spend a lot of time and effort to teach and guide me, among them is my Advisor, Dr Ching-wen Mo I also appreciate directors, managers, and employees of my company for their tightly cooperation to help me fulfill this subject I The Effectiveness of HRM in an Import Export Joint Stock Company in HCMC – Cosimex ABSTRACT Con Son Import Export Joint Stock Company (Cosimex) was founded on January 18th 2008 Previously, it was a state company, established in 1993, named Con Son Import Export Company (Cosimex), and began the process of privatization from 2005 From that time, Cosimex has to rearrange, to plan, to try to survive without any help from the government From that time, Cosimex has to learn the real lesson about sustainable development; in which, one of the most important key is human resource management Besides, the domestic economy has to be rearranged quickly to assimilate into worldwide economy It requires managers and employees to have non-stop renovation, to apply new scientific ways in management, to have proper business strategy, especially in human resource strategy The right human resource strategy that satisfies and encourages employees will repair the company errors that exist, will turn company challenges into opportunities, will make the company sustainably develop With knowledge through courses, through the accumulation and research, I would like to the research about employees satisfaction to Con Son Import Export Joint Stock Company; in order to help all directors and managers can recognize the reality of Cosimex human resource management; then can establish a strategy to improve the human resource management as well as the company competitiveness in the world markets In this study, I recommend suggestions to apply to my company PersonnelAdministrative Department, including: good resolution to internal relationships, implementation a fairness in treatment about discipline and income policies, create an comfortable working environment, set regulations to promote opportunities for employees advancement, including training affairs Keywords: Vietnam, Hochiminh, MU, HUI, Cosimex II The Effectiveness of HRM in an Import Export Joint Stock Company in HCMC – Cosimex Contents ACKNOWLEDGMENTS I ABSTRACT II Contents III Tables V Figures VI Chapter1 Introduction 1.1 Background and Motivation 1.1.1 Company structure 1.1.2 Labor structure 1.1.3 Motivation 1.2 Research Objectives 1.3 Research Scope and Limitations 1.4 Research Method Chapter2 Literature Review 2.1 Overview of Human Resource Management 2.1.1 Definition 2.1.2 The goal of personnel management in enterprises 2.1.3 Personnel management roles 2.1.4 Trends and issues affect personnel management 2.1.5 Administration to meet workers requirement 2.2 Theories of Human Satisfaction 2.2.1 Maslow’s theory 2.2.2 Alderfer’s theory 10 2.2.3 Herzberg’s theory 11 2.2.4 McClelland’s theory 13 2.2.5 Summary 13 2.3 Related Studies on Human needs and Motivation 15 2.3.1 Theory of hierarchy needs (Abraham Maslow) 15 2.3.2 Expectations theory (Victor Vroom) 16 III 2.3.3 Two factors theory (F Hertzberg) 16 2.3.4 Theory of fair (The most important) 17 2.3.5 Related studies on motivation 18 2.4 Summary 23 Chapter3 Research Methodology 24 3.1 Research Process 24 3.2 Research Methods 24 3.2.1 Research on the qualitative one 24 3.2.2 Research on quantitative one 25 3.3 Research Framework 26 3.4 Sampling 27 3.5 Instrument Design 27 3.5.1 Building the measurement 27 3.5.2 Test validity and reliability 31 Chapter4 Research Results and Analysis 35 4.1 Analyzing Data 35 4.1.1 Basic information analysis results 35 4.1.2 The correlations of variables 36 4.1.3 Descriptive statistics on the factors affecting the employee’s satisfaction to the company 38 4.1.4 Exploratory factor analysis (EFA) 38 4.1.5 Linear Regression 44 4.2 Findings and Empirical Results 46 4.2.1 Factors that are the most influential to the employee satisfaction 46 4.2.2 Factors that not influence on employee satisfaction 46 4.2.3 Empirical results 46 Chapter5 Conclusions and Recommendations 48 5.1 Conclusions 48 5.2 Recommendations 49 5.3 Limitation of the Study 51 References 52 APPENDIX 54 Attachment Verification Reliability Cronbach's Alpha 59 IV Tables Table 1-1 Qualification of Professional Staffs Table 1-2 Structure of Labor by the Senior Employees Table 2-1 Comparison of the Theories 14 Table 2-2 Listed the Factors that Encourage Adapted by F Herzberg (1966) 17 Table 2-3 The Changes in the People’s Individuality Adapted by Argyris (1995) 20 Table 2-4 The Motive Sanitation Adapted by Herzberg (1987) 21 Table 3-1 Measurement of Salary and Policies 27 Table 3-2 Measurement of Working Environment 27 Table 3-3 Measurement of Employees Awareness about Company 28 Table 3-4 Measurement of Employees Representation Oneself 28 Table 3-5 Measurement of Promotion Opportunities 28 Table 3-6 Fairness in Treatment Measurement 29 Table 3-7 Measurement of Working Evaluation .29 Table 3-8 Measurement of the Individual Related to Work 29 Table 3-9 Relationship among Colleagues, Senior and Subordinate Measurement 30 Table 3-10 Training Affair Measurement 30 Table 3-11 Measurement of Employees Satisfaction to the Company 31 Table 3-12 Expert Comments to Questionnaire Adjustment 32 Table 3-13 Reliability Questions .33 Table 4-1 Analysis Results Describing Information about Gender, Age, Education, Current Job And Seniority 35 Table 4-3 Descriptive Statistics on the Factors Affecting the Employee’S Satisfaction to the Company 38 Table 4-4 Exploratory Factor Analysis Results of the Independent Variables 39 Table 4-5 Results of Exploratory Factor Analysis the Dependent Variable 42 Table 4-6 Summary Results of Regression 44 V Figures Figure 1-1 Cosimex Organization Structure Figure 3-1 Research Process 24 Figure 3-2 Research Framework 26 Figure 4-1 Adjustment Model 44 VI The Effectiveness of HRM in an Import Export Joint Stock Company in HCMC – Cosimex Chapter1 Introduction 1.1 Background and Motivation 1.1.1 Company structure Con Son Import Export Joint Stock Company (Cosimex) was founded on January 18th 2008 Previously, it was a state company, established in 1993, named Con Son Import Export Company (Cosimex), and began the process of privatization from 2005 Company Logo: Company functions: Import: Household goods, shoes, consumer products; Export: Pottery product Cosimex is a small company (its share capital is only 700,000 US dollars) with a small labor (only 142 employees) But, the activities through 17 years give the company a well-trained group of employees After privatization, Cosimex faces many problems and challenges derived from the changes of ownership and the influence of globalization when Vietnam becomes the WTO membership It demands the staff to work out an appropriate strategy to grow the company, include human resource management Organization Structure: The Board of Directors: persons; 5.3 Limitation of the Study Inspite of our efforts in doing this study, there are still restrictions: In quantitative research, the interviews with employees can not avoid some of responses that not make sense, subjective that may cause unorderly influence on the analysis results This research result is the case one, so its solutions can apply individually to Cosimex It is required to enlarge the Research to obtain the Popular Scientific Results 51 References I English Alderfer, Clayton P (2000), Existence, Relatedness, and Growth; Human Needs in Organizational Settings; New York: Free Press Argyris, Chris (1995), Education for Leading-Learning Organizational Dynamics, 21(3): 5-17 Blevins, Edgar R (2001), Proposed Study of Job Satisfaction of HBCU Engineering Faculty Based on Herzberg's Motivation-Hygiene Theory [Online] Available at: < http:// engr 10 uis~ana edu/ asee/proceedings/> Herzberg, F et al (1987), The Motivation to Work, 2nd edition, New York: John Wiley & Sons Herzberg, Frederick (1966), Work and the Nature of Man, Cleveland: World Publishing Herzberg, F.I (1987), One more time: How you motivate employees?, Harvard Business Review, Sep/Oct87, Vol 65 Issue 5, p109-120 (note: the reference to sales numbers is in the abstract written by the editors) Maslow, A.H (1943), A Theory of Human Motivation, Psychological Review 50(4) (1943):370-96 Maslow, A.H (1970), Motivation and Personality, 2nd edition, New York: Harper and Row McClelland, David C (2001), Human Motivation, Cambridge University Press McGregor, Douglas (2002), Theory X and Theory Y, Workforce; Jan 2002, Vol 81, Issue 1, p32 McShane, Steven L & Von Glinow, Mary Ann (2003), Second Edition, Organizational Behavior: Emerging Realities for the Workplace Revolution, McGra w – Hill Mondy, R Wayne, and Noe, Robert M (1996), Human Resource Management, Upper Saddle River, NJ: Prentice-Hall Website: http://www.statisticssolution.com, French W.L (1987), The Personnel Management Process, Introduction To Business 52 II Vietnamese Lam, Nguyen Huu (1998), Organizational Behavior, Education Publishing Sally Eastoe & Heather Russell (2008), Human Management – Recruit and Select Employee, Library of Commercial and Tourist Faculty – Hochiminh City University of Industry Tan Vo Phuoc (2009), Human Management, Teaching Material of Hochiminh City University of Industry Tuan Nguyen Minh – Quang Ha Trong, Schoolbook To Process Researching Data by SPSS for windows, Hochiminh City University of Industry 53 APPENDIX CON SON IMPORT EXPORT JOINT STOCK COMPANY QUESTIONNAIRES After privatization, our company changes and faces new challenges; we recognize the importance of employee satisfaction This survey is anonymous and your responses will be held in the strictest confidence We thank you for your thoughtful feedback This survey will take approximately minutes to complete Personal Information Gender: Male F Female F F From 25 to 35 years old F Over 45 years old F Age: Under 25 years old From 35 to 45 years old F Education: Secondary School F High School F College F University F F Agent F Current job: Management Direct Staff (business, service, and accounting) F How long have you worked for our company? Under years F From to years 54 F From to 10 years F Over 15 years F From 10 to 15 years F Please chose your level of agreement on the following opinions: Mark (X) to select from to 5: (1) Extremely dissatisfied, (2) dissatisfied, (3) neutral, (4) satisfied, ( 5) extremely satisfied No Salary and policies You are paid adequately to your position 2 … … … … … Your benefits at the company are not lower than that of other companies You understand well the income policies related to you No Working Environment Your working place is clean, comfortable, safe … … … … … You have enough working facilities and tools needed … … … … … You are fully aware of goals and working duties from your senior You frequently receive feedback and evaluation of your working results from the senior You have right to participate in setting up company objectives No 10 Employee awareness about company You understand company mission in short-term and goals in long-term You understand your work directly contributed to the success of the company 11 You feel satisfied whenever having good results from work 55 … … … … … … … … … … … … … … … No 12 Employee representation oneself 5 5 You agree that the company highly encourages people who show their own opinion 13 You can show your opposite viewpoint without bully 14 Your working goal is to express yourself and to develop your skills No Promotion opportunities 15 You have enough opportunity to develop your skills 16 Your leaders are interested in your advancement and opportunities to advance 17 Your leaders make you feel that work offers you challenge 18 Your leaders make you feel that work offers you encouragement 19 Your leaders make you feel that work offers you pleasure No 20 21 Fairness in treatment Company staff discipline and income policies has brought satisfaction to employees, helping them improve and advance Reward and penalty affair in the company is done with fair, and obvious No 22 23 24 Working evaluation Your working performance receives fair and reasonable evaluation Whenever your performance gets better, the manager timely recognizes and encourages you Whenever your performance gets worse, the manager timely recognizes and shows you the reason as well 56 No The individual related to work 25 Workload assigned to you is reasonable 26 You are really satisfied either work or family 27 Working at the company meets your expectations No Relationship among colleagues, senior and subordinate 28 You have colleagues that are ready to guide and help you 29 Managers dealing with you in a respect manner 30 Company has policies to respect employees 31 You respect your direct manager as expert You are satisfied with your manager No 32 33 34 Training affair The company has always focused on training affair to improve professional skills for the staff After training and re-training, staff level of skills are much improved Training affair at the company has focused on the right aspects (people, major, and planning) No Employee satisfaction to the company 35 You are satisfied with the environment and working conditions 36 You are satisfied with wage and income 37 You are satisfied with current job 38 You are satisfied with promotion opportunities and personal benefits 39 You are satisfied with company training affair 57 40 You are satisfied with the treatment of company leaders 41 You satisfied with the treatment of your direct manager 42 You are satisfied and keep your mind on working for the company 58 Attachment Verification Reliability Cronbach's Alpha Group Salary and policies The first round Reliability Statistics Cronbach's Alpha Based on Cronbach's Alpha Standardized Items 644 N of Items 636 Item-Total Statistics Scale Mean if Item Scale Variance if Deleted Item Deleted Corrected Item- Squared Multiple Cronbach's Alpha Total Correlation Correlation if Item Deleted SALARY1 9.0357 1.272 590 388 332 SALARY2 9.0643 1.543 505 347 475 SALARY3 8.9857 1.985 292 100 740 The second round Reliability Statistics Cronbach's Alpha Based on Cronbach's Alpha Standardized Items 740 N of Items 742 Item-Total Statistics Scale Mean if Item Scale Variance if Deleted Item Deleted Corrected Item- Squared Multiple Cronbach's Alpha Total Correlation Correlation if Item Deleted SALARY1 4.4786 568 589 347 a SALARY2 4.5071 683 589 347 a a The value is negative due to a negative average covariance among items This violates reliability model assumptions You may want to check item codings Group Working Environment Reliability Statistics 59 Cronbach's Alpha Based on Cronbach's Standardized Alpha Items 710 N of Items 715 Item-Total Statistics Cronbach's Scale Mean if Scale Variance if Corrected Item- Squared Multiple Item Deleted Item Deleted Total Correlation Correlation Alpha if Item Deleted ENVIRONMENT1 17.4929 6.079 389 189 692 ENVIRONMENT2 17.6000 5.494 477 259 659 ENVIRONMENT3 17.6429 5.670 492 269 654 ENVIRONMENT4 17.8286 5.078 433 213 686 ENVIRONMENT5 17.6357 5.197 572 336 619 Group Employees awareness about company Reliability Statistics Cronbach's Alpha Based on Cronbach's Standardized Alpha Items 843 N of Items 844 Item-Total Statistics Cronbach's Scale Mean if Item Deleted Scale Variance if Corrected Item- Squared Multiple Item Deleted Total Correlation Correlation Alpha if Item Deleted AWARENNESS1 8.8857 1.886 777 614 717 AWARENNESS2 8.8071 2.358 722 552 772 AWARENNESS3 8.9214 2.519 646 425 840 Group Employees representation oneself Reliability Statistics 60 Cronbach's Alpha Based on Cronbach's Standardized Alpha Items 844 N of Items 851 Item-Total Statistics Cronbach's Scale Mean if Scale Variance if Corrected Item- Squared Multiple Item Deleted Item Deleted Total Correlation Correlation Alpha if Item Deleted REPRESENT1 9.0143 1.856 738 548 769 REPRESENT2 8.9500 2.077 749 562 744 REPRESENT3 8.8214 2.637 684 468 824 Group Promotion opportunities Reliability Statistics Cronbach's Alpha Based on Cronbach's Standardized Alpha Items 782 N of Items 783 Item-Total Statistics Cronbach's Scale Mean if Item Deleted Scale Variance if Corrected Item- Squared Multiple Item Deleted Total Correlation Correlation Alpha if Item Deleted OPPORTUNITY1 17.0929 6.128 699 565 693 OPPORTUNITY2 17.1000 6.623 588 479 732 OPPORTUNITY3 17.0643 7.298 448 236 775 OPPORTUNITY4 17.5357 6.697 476 307 771 OPPORTUNITY5 17.3214 6.436 590 392 730 Group Fairness in treatment Reliability Statistics 61 Cronbach's Alpha Based on Cronbach's Standardized Alpha Items N of Items 671 671 Item-Total Statistics Cronbach's Scale Mean if Scale Variance if Corrected Item- Squared Multiple Item Deleted Item Deleted Total Correlation Correlation Alpha if Item Deleted FAIRNESS1 4.5143 669 505 255 a FAIRNESS2 4.4143 676 505 255 a a The value is negative due to a negative average covariance among items This violates reliability model assumptions You may want to check item codings Group Working evaluation The first round Reliability Statistics Cronbach's Alpha Based on Cronbach's Alpha Standardized Items 595 N of Items 592 Item-Total Statistics Scale Mean if Item Scale Variance if Deleted Item Deleted Corrected Item- Squared Multiple Cronbach's Alpha Total Correlation Correlation if Item Deleted EVALUATION1 8.2857 2.378 322 115 608 EVALUATION2 8.6071 1.809 495 252 347 EVALUATION3 8.5643 2.176 404 197 496 The second round Reliability Statistics Cronbach's Alpha Based on Cronbach's Alpha Standardized Items 608 609 N of Items 62 Item-Total Statistics Scale Mean if Item Scale Variance if Deleted Item Deleted Corrected Item- Squared Multiple Cronbach's Alpha Total Correlation Correlation if Item Deleted EVALUATION2 4.1643 757 438 192 a EVALUATION3 4.1214 899 438 192 a a The value is negative due to a negative average covariance among items This violates reliability model assumptions You may want to check item codings Group The individual related to work Reliability Statistics Cronbach's Alpha Based on Cronbach's Standardized Alpha Items 661 N of Items 666 Item-Total Statistics Cronbach's Scale Mean if Scale Variance if Corrected Item- Squared Multiple Item Deleted Item Deleted Total Correlation Correlation Alpha if Item Deleted RELATED1 8.1500 2.546 417 182 646 RELATED2 8.7786 1.713 487 248 557 RELATED3 8.5429 1.790 547 299 459 Group Relationship among colleagues, senior and subordinate Reliability Statistics Cronbach's Alpha Based on Cronbach's Standardized Alpha Items 697 N of Items 702 Item-Total Statistics 63 Cronbach's Scale Mean if Scale Variance if Corrected Item- Squared Multiple Item Deleted Item Deleted Total Correlation Correlation Alpha if Item Deleted RELATIONSHIP1 13.1643 3.002 468 259 647 RELATIONSHIP2 13.6429 2.418 494 277 627 RELATIONSHIP3 13.5286 2.323 535 307 597 RELATIONSHIP4 13.2357 2.901 452 249 651 Group 10 Training affair The first round Reliability Statistics Cronbach's Alpha Based on Cronbach's Alpha Standardized Items 560 N of Items 573 Item-Total Statistics Scale Mean if Item Scale Variance if Deleted Item Deleted Corrected Item- Squared Multiple Cronbach's Alpha Total Correlation Correlation if Item Deleted AFFAIR1 8.6571 1.882 369 153 460 AFFAIR2 8.6429 1.972 420 181 402 AFFAIR3 8.8286 1.582 342 121 527 The second round Reliability Statistics Cronbach's Alpha Based on Cronbach's Alpha Standardized Items 527 N of Items 529 Item-Total Statistics Scale Mean if Item Scale Variance if Deleted Item Deleted Corrected Item- Squared Multiple Cronbach's Alpha Total Correlation Correlation if Item Deleted AFFAIR1 4.4214 519 360 130 a AFFAIR2 4.4071 646 360 130 a 64 Item-Total Statistics Scale Mean if Item Scale Variance if Deleted Item Deleted Corrected Item- Squared Multiple Cronbach's Alpha Total Correlation Correlation if Item Deleted AFFAIR1 4.4214 519 360 130 a AFFAIR2 4.4071 646 360 130 a a The value is negative due to a negative average covariance among items This violates reliability model assumptions You may want to check item codings Group 11 Employees satisfaction to the company Reliability Statistics Cronbach's Alpha Based on Cronbach's Standardized Alpha Items 879 N of Items 883 Item-Total Statistics Cronbach's Scale Mean if Item Deleted Scale Variance if Corrected Item- Squared Multiple Item Deleted Total Correlation Correlation Alpha if Item Deleted SATISFACTION1 30.7357 16.340 693 525 859 SATISFACTION2 30.5786 16.778 698 539 859 SATISFACTION3 30.7214 16.692 658 498 863 SATISFACTION4 30.6286 16.854 672 513 861 SATISFACTION5 30.7500 16.995 610 442 867 SATISFACTION6 30.9857 16.719 496 315 884 SATISFACTION7 30.6000 17.335 573 366 871 SATISFACTION8 30.7000 15.895 788 648 849 65