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Tiêu đề Improving Employee's Loyalty At Mobifone Telecommunications Corporation
Tác giả Nguyễn Tuấn Hưng
Người hướng dẫn PGS.TS. Nguyễn Ngọc Thắng
Trường học Hanoi National University
Chuyên ngành Business Administration
Thể loại thesis
Năm xuất bản 2019
Thành phố Hà Nội
Định dạng
Số trang 90
Dung lượng 1,3 MB

Cấu trúc

  • CHAPTER 1: THEORETICAL FRAMEWORK (14)
    • 1.1. Conceptual framework (15)
      • 1.1.1. Defining employee loyalty (15)
      • 1.1.2. Measuring employee loyalty (18)
    • 1.2. Outcomes of employee loyalty (19)
      • 1.2.1. Individual outcomes (20)
      • 1.2.2. Group outcomes (21)
      • 1.2.3. Organizational outcomes (21)
    • 1.3. Antecedents of employee loyalty (22)
      • 1.3.1. Individual characteristics (23)
      • 1.3.2. Group characteristics (27)
      • 1.3.3. Organization characteristics (28)
    • 1.4. Proposed theoretical model (31)
  • CHAPTER 2. METHODOLOGY (14)
    • 2.1. Research process (33)
    • 3.2. Research method (0)
      • 2.2.1. Survey method (38)
      • 2.2.2. Sampling method (38)
    • 2.3. Data processing method (39)
  • CHAPTER 3: CURRENT STATUS OF EMPLOYEE LOYALTY (41)
    • 3.1. About MobiFone Corporation .............................................................. 32 1. Formation process, functions, tasks and organization of MobiFone . 32 (41)
      • 3.1.2. Functions and tasks of the units are as follows (42)
    • 3.2. Situation of human resources at MobiFone Telecom (44)
      • 3.2.1. Workforce based on educational level (44)
      • 3.2.2. Workforce by Functions (46)
      • 3.2.3. Workforce by region (47)
      • 3.2.4. Workforce by age groups (47)
      • 3.2.5. Labor force by productivity (48)
      • 3.2.6. Workforce by position (49)
    • 3.3. Current status of employee loyalty (50)
      • 3.3.1. Turnover rate (0)
    • 3.4. Status of enhancing loyalty (53)
      • 3.4.1. Improving loyalty by recognition (53)
      • 3.4.2. Improving loyalty by salary (53)
      • 3.4.3. Improving loyalty by working environment (53)
      • 3.4.4. Improving loyalty by training and career advancement opportunity . 45 3.4.5. Improving loyalty by training and career advancement opportunity . 46 3.4.6. Overall assessment (54)
    • 3.5. Results of empirical survey (56)
      • 3.4.1. Characteristics of survey sample (56)
      • 3.4.2. Assessment of employee loyalty at MobiFone (61)
    • 3.5. Employees evaluation of factor affecting loyalty (65)
      • 3.5.1. Employee evaluation of work related factors (66)
  • CHAPTER 4: SOLUTION AND RECOMMENDATION (14)
    • 4.1. Summary of research findings (76)
    • 4.2. Some solutions to improve employee loyalty at MobiFone (77)
      • 4.2.1. Redesign the recognition and reward system (77)
      • 4.2.2. Improving loyalty via working condition (78)
      • 4.2.3. Improving loyalty via promotion and development (78)
      • 4.2.4. Improving loyalty through income (79)
      • 4.2.5. Improving loyalty through working environment (80)
      • 4.2.6. Improving loyalty through leadership (81)
    • 4.3. Recommendations (82)
      • 4.3.1. Recommendations for academics (82)
      • 4.3.2. Recommendations for practitioners (82)
    • 4.4. Limitations of the research (83)
    • 4.5. Suggestions for further studies (84)

Nội dung

THEORETICAL FRAMEWORK

Conceptual framework

There have been a number of definitions of employee loyalty in the literature Because there was no universally agreed and widely used definition of loyalty, it is necessary to compare among definitions and conceptualizations of the loyalty construct

Early definition emphasized loyalty as the devotion of workers to their organizations by conforming to the instructions from higher authority in the organization (Lawrence, 1958; Whyte, 1956) Later, loyalty was viewed broadly as an employee's feeling of attachment to an organization (Buchanan, 1974; Hirschman, 1970)

According to Niehoff, Moorman, and Fuller (2001), loyalty is the active expression of pride and dedication to the organization In addition, according to Allen & Meyer (1991), loyalty is the psychological conditions reflect the individual's relationship to the organization

According to Porter, et al (1979), loyalty is the relation between individuals and groups and it has a strong belief in the goals and values of the organization and is willing to work as hard as possible to serve the organization and have the desire to continue to work in the team From another point of view, loyalty is seen as a form of emloyees commitment with the organization, it requires the actions of employees to pay more attention to the boss or the company (Elegido, 2013)

According to Nippa & Hornung (2014), there are 3 school of thoughts in regards to the definition of loyalty: 1) the attitudinal approach, in which loyalty is defined as an attachment, involment and identification to the organization, 2) the normative approach in which loyalty is view as an obligation and 3) behavioral in which loyalty is considered as side-bet, i.e investment into the organization)

In this approach, loyalty can be viewed as an attachment, involvement or identification towards an organization Employee loyalty was defined as ―a sentiment of attachment to a particular object (Powers, 2000) Stroh & Reilly

(1997) defined loyalty as ―a measure of one‘s involvement in their organization) While Chen et al., (2002) viewed loyalty as accepting the boss‘ goals and values In similar fashion, Coughlan (2005) proposed that employee loyalty is the adherence to the moral principles in pursuit of individual and collective goals

According to this approach, employee loyalty is conceptualized as dedication and/or obligation towards the organizations Chen et al (2002) viewed loyalty as ―demonstrating unreserved dedication‖ and Schrag (2001) considered loyalty as ―wholehearted devotion to an object‖

This school of thoughts considers employee loyalty as side-bet or investment that an individual employee put into his or her organization during the individual‘s time at the organizations Logan (1984) defined employee loyalty as ―a strong tie that binds an employee to his company even when it may not be economically sound for him to stay‖ Butler (1991) conceptualized employee loyalty as ―an implicit promise from an employee not to bring harm to his or her supervisor‖ while Chen et al (2002) viewed loyalty as ―to sacrifice one‘s self-interest for the supervisor‖

In this research, the author adopts the behavioral approach to employee loyalty This research accepts the definition of loyalty put forward by Logan

(1984) in which loyalty is ―a strong tie that binds an employee to his company even when it may not be economically sound for him to stay‖ Furthermore, this study adopts a more refined definition of employee loyalty proposed by Elegido, 2013, p 496) in which employee loyalty is ―a deliberate commitment to further the best interests of one‘s employer, even when doing so may demand sacrificing some aspects of one‘s self-interest beyond what would be required by one‘s legal and other moral duties

Recent definitions of loyalty sometimes overlap with organizational commitments In this section the author also provide some definition of organizational commitment and conpare between the two constructs

Anderson and Weitz (1992) and Morgan and Hunt (1994), defined organizational commitment as ―a long-term relational perspective [that] encourages parties to resist the short-term benefits offered by other [companies] in favor of the benefits associated with remaining in a relationship‖ Chen et al (2002) conceptualized that organizational commitment as the psychological attachment of workers to their organizations The literature also suggested that loyalty has been considered as a synonym of organizational commitment (Hirschman, 1970; Morrow &

McElroy, 1993; Werther, 1988) Because the concept of loyalty has been loosely defined and the literature is mixed and inconclusive regarding the differences between loyalty and commitment, Morrow (1983) proposed that that, although loyalty and commitment have commonalities, much is lost when both are used interchangeably

Although both the terms have been used as synonyms, there are differences at least in two ways (Sreejesh, 2011) Commitment towards an organization refers to personal choice – whether to commit or not based on rational judgment Loyalty includes a normative component that is an obligation or duty Commitment is unidirectional, that is commitment is measured as the extent to which an employee is committed; however loyalty is mutual; loyalty comes out of relationships However, Hart & Thompson

(2007) advocated that commitment still remains an important element of loyalty In this study, the author supports the differences between organizational commitment and employee loyalty

Although loyalty is difficult to quantify, the behaviour consistent with loyalty can be measured, for example offers passed on to the others (Sajven,

2007) Loyalty does not encourage exit as an option even when an employee has attractive offers (Hirschman, 1992) Allport (1933) categorized three elements of loyalty- voluntary nature, demand for ongoing adherence, and its grounding in morality

The Measurement Dimension of Employee Loyalty Lee, Lee, & Lin (2015) proposed a 2-dimension measure of employee loyalty including (1) employee satisfaction, and (2) employee commitment to the organization The operational definition of these two sub-dimensions is described as follows:

(1) Employee satisfaction: refers to employee sense of satisfaction towards their work environment and the work itself, which includes (A) internal satisfaction, and (B) external satisfaction

Outcomes of employee loyalty

Employee loyalty has been found to be related to a host of outcomes

The consequences of employee loyalty can be classified into individual outcomes group outcomes and organizational outcomes

Employee loyalty plays an important role in shaping the employee‘s behavior at the work place, previous research have found significant linkage between loyalty and a number of workplace attitude and behavior

Grievance behavior : Hirschman (1970) proposed that employees respond to negative events and incidents basically through two means i.e voice or exit The latter involves the employees‘ decision to quit the job and while the former focuses enunciate problems, injustices, and shortcomings

The author also predicted that loyal employees will choose voice rather than exit in responding to situations of an individual decision problem that involves the interests of the organization Grievance behavior has also been tested across two groups of loyal and less loyal employees The results suggested that loyal employees address possible problems directly and talk to involved supervisors or peers while less loyal employees prefer formal grievance or look for affirmative relief outside the company (Olson-Buchanan

Job satisfaction : the degree of employee overall job satisfaction or satisfaction with each facets of the job such as working place, supervisors, organization have been understood as an antecedents of employee loylaty

However, on the other hand, some research has found the reverse relationship between employee loyalty and job satisfaction Chen (2001), for example, found that loyalty to supervisor led to job satisfaction among Chinese employees

Individual effort and job performance: Loyal employees have been reported to put forwards and excert more efforts into their jobs and thus found to be more productive at work (Chen et al., 1998) Moreover, loyalty employees tend to have higher job performance Chen et al (2002) found that loyal employees had higher in-role job performance, and extra-role performance as compared to less loyal employee Similar findings have also been reported by Wong et al (2002) using Chinese employees‘ sample

Loyalty can be directed to the organization as a whole, to a direct supervisor and to a group and it is expected that loyalty can contribute to the performance of the organizations, or the groups that encompass these loyal members

Group performance : James and Cropanzano (1994) tested the hypothesis that a high degree of loyalty towards the group could be a predictor of group performance The results suggested that loyal members tended to exert more efforts on behalf of the team and thus improve performance of the team Also, loyal members had positive attitudes and behaviors to their groups such as recommendation by word-of mouth and participation in extra-role activities

Quality of decisions : employee‘ loyalty have been researched as a way to improve consensus in decision making Dooley and Fryxell (1999) surveyed a team or decision makers and found that loyal members of the team viewed dissent as positive and therefore had a positive impact on decision quality

A number of researches have been conducted to examine the influence of employee loyalty on organizational outcomes

Customer satisfaction : loyal employees can be an important source of customer satisfaction Kumar and Shekhar (2012) suggested that the extra effort and excellent performance of the loyal employees will be recognized by the customers and thus it would help improve the perceived quality of organizational performance Loyal employees, who tend to stay for long time at the organization and thus more familiar with customers related issues such as products, prices and business and customer needs Therefore, loyal employees would be able to build long-term relationship and develop trust among customers which lead to more satisfied customers (Reichheld, 1993)

Similar findings were fould in different industries such as grocery retail and services (Kearney et al., 2012; Yee et al., 2010)

Firm performance: as mentioned above, loyal employees increase customers‘ satisfactions which in turn lead to higher firm performance (Kumar and Shekhar, 2012; Reichheld, 1993) Another stream of research found direct impacts of employee loyalty on firm performance rather than the indirect impacts via customer satisfaction Brown et al (2011) found that employee loyalty was associated with labor productivity and financial performance

In conclusion, previous research suggested that employee loyalty is strongly and positively related to performance at the individual and organizational level On the other hand, the impacts of employee loyalty on group level performance are still underresearched However, researches provide numerous supports for the positive role of employee loyalty for individual, group and firm.

Antecedents of employee loyalty

Human resource has widely been recognized as the most important resource of any organizations And employee loyalty or committent are the catalysts of organizational success Loyal employees bring about numerous benefits for organizations They put forth extra efforts in their work, promote the organization;s image outside the workplace, and go above and beyond what is required of them to help the organization function effectively (Mowday, Porter,& Steers, 1982; O‘Reilly & Chatman, 1986; Organ, 1988) Loyal employess also create high value for the organization (Guillon & Cezanne, 2014) by high level of work effort, improved product and service quality, which lead to higher levels of customer satisfaction, increased profits, greater shareholder value, and lower turnover (Guillon & Cezanne, 2014; Ibrahim & Al Falasi, 2014; Silvestro, 2002) On the other side, a lack of loyalty can clearly be detrimental and result in loss of trust, inefficient work, higher absenteeism and turnover (Davis, 2015) Because of the vital role of employee loyalty to the success of organizations, numerous researches have been carried out to identify the antecedents of employees‘ loyalty Nippa & Hornung (2014) reviewed the existing literature on employee loyalty and categorized the antecedants of employee loyalty into three groups: individual charateristics, group characteristics and organizational characteristics

A number of previous researches have investigated the relationship between personal traits and employee loyalty Mustafa, Abidin & Saufi

(2013) examine the impacts of such personal traits as work locus of control and employees self-efficacy on employee loyalty Locus of control refer to the extent that an individual attributes what happen to him or her to his or her own actions (internal) or other forces (external) Self-efficacy measures an individual‘s belief about whether or not he or she can successfully performs the tasks assigned Results of analysis from a sample of 100 school teacher revealed that both self-efficacy and internal locus of control positively predicted employee loyalty Furthermore, highly motivated employees tended to be loyal to their organizations

Bloemer & Odekerken-Schroder (2006) investigated the impact of employee relationship proneness on attitudinal loyalty and employee loyalty behaviours A survey was conducted with bank employees in the Netherlands which resulted in a data set from 199 bank employees Results indicated that employee relationship proness strongly predicted employee attitudinal loyalty

These attitudinal loyalties can be foundation for loyalty behaviors

Individual perception also affects the formation and preservation of employee loyalty Berntson, Naswall & Sverke (2010) interviewed 725 white- collar workers in Sweden and study the relationship between their perception of employability and loyalty Results showed that employees who have job alternatives are more likely to show lower level of loyalty towards their organizations

Vushnumurty (2009) examined the link between ergonomics perception of employees and employee loyalty A sample of 337 employees in banking and telecom industry from both public and private sector was drawn for the study The results indicated that there were high and positive correlation between ergonomics perception of employees and their loyalty for both telecom and banking groups

Creativity and innovation as well as personal development and competencies have also been found to significantly predict employee loyalty (Martensen & Grứnholdt, 2006) The authors suggested that in order to retain their employees, the companies should put forth efforts to increase the knowledge, skills and competency of the employees, to support them with career planning, to implement empowerment, give responsibilities and power, offering challenging jobs and fostering creativity and innovative ideas

Satisfaction is also a strong and consistent predictor of employee loyalty Hassan, Ahmed Khan & Iqbal (2013) studied the impacts of empowerment, compensation system and performance appraisal on job satisfaction of employees in a State-owned bank in Pakistan and found that all three variables significantly predict job satisfaction In turn, job satisfaction was found to strongly influenced employee loyalty

Consistent with these findings, Pološki Vokić & Hernaus (2015) studied the relationship between job satisfaction, work engagement and employees loyalty Data were collected from a field survey of a large company in Croatia Results from 567 employees suggested that work engagement strongly predicts employee loyalty Furthermore, work engagement acted as a mediator of the relationship between job satisfaction and employee loyalty

Arsić , Nikolić , Živković , Urošević & Mihajlović (2012) explored the relationship between TQM and employees loyalty in Serbia They identified six aspects of TQM and found that five out of six had significant impacts on job satisfaction Job satisfaction then strongly and positively influenced employee loyalty

Kearney, Coughlan & Kennedy (2012) studied the impacts of servicescape in grocery stores on employee and customer satifaction They carried out a large-scale survey of salespersons in grocery section and found that job satisfaction led to loyalty for both employees and customers Their findings were also consistent with previous researches

Cunha (2002) conducted a study to investigate the relationship between leadership, culture, structures and employee loyalty Results showed that high quality leadership, low-profile organizational culture, and high performance organization structure positively influenced employee loyalty

Lee (2008) studied the relationships among leadership empowerment, job satisfaction and employee loyalty in university student workers The author identified 5 dimensions of leadership empowerment, namely participating in decision making, goal accomplishment, confident in high performance, autonomy and meaningfulness of work Results from 161 students employees data sample indicated that confidence in high performance and and autonomy were significant predictors of employees loyalty

Ding, Lu, Song & Lu (2012) aimed at identifying the relationship between servant leadership and employee loyalty Self-administered questionnaires were used to collect data from MBA student at a University in

China The final useable data set consisted of 186 observations Results of the SEM analysis showed that servant leadership had strong and significant impact on employee loyalty Moreover, job satisfaction acted as a mediating variable of the relationship between servant leadership and employee loyalty The findings were in line with previous studies on the link between leadership style and employee loyalty as well as between job satisfaction and employee loyalty

Martensen & Grứnholdt (2006) survey full time employees in Sweden and obtained a sample of 532 completed responses They found that among other varibales, leadership had the most profound impacts on employee loyalty The results provided a strong evidence to support the positive relationship between leadership and employee loyalty

In Vietnam, Khuong, Tung, & Trang (2014) surveyed 214 sales persons of import-export companies in Hochiminh city to investigate the impacts of leadership style on loyalty of the employees They found that transformational leadership, transactional leadership and organic leadership positively influence employee loyalty Autocratic leadership, on the other hand, negatively affected loyalty

Tran Thi Kim Dung and Nguyen Thi Mai Trang (2007) argued that leadership style and organizational culture affect the loyalty of the employees

METHODOLOGY

Research process

Human resource is the most important resource for any organizations

Organizations which have loyal employees usually possess a significant competitive advantage and a higher rate of survival compared to companies with less loyal employees Loyal employees are invaluable resource of the organizations and their retention is a key to its success Because of their importance, employers need to be able to identify and develop loyal

Identify main research problems (Employee loyalty in organizations)

Literature review of relevant topics Propose research model

Designing research method Developing survey instruments

Data analysis Reporting results and research findings

Propose solutions Suggestion and recommendations employees In order to do so, the managers need to have a good and through understanding of the factors that affects employee loyalty This knowledge would enables manager to develop and implement policies and practices that help them to create a loyal workforce Therefore, the main research question of the current research is ―What are the factors that influence employee loyalty in Vietnam?‖

Step 2: Literature Review of relevant topics

The current study reviews previous research in employee loyalty including its definitions, measurements, they are antecedents and consequences From literature review of research in both Vietnamese and international context, the author identify the gap for the current research A research model was then proposed based on evaluation of existing research

For this study a combination of qualitative and quantitative methods would be used Qualitative research is appropriate for exploratory research It is used to gain an understanding of underlying reasons, opinions, and motivations It provides insights into the problem or helps to develop ideas or hypotheses for potential quantitative research Quantitative Research is used to quantify the problem by way of generating numerical data or data that can be transformed into useable statistics It is used to quantify attitudes, opinions, behaviors, and other defined variables – and generalize results from a larger sample population

For qualitative research, in-depth interview with a group of employees revealed that according to the employee, loyalty to organization can be expressed in 5 types of behaviors namely proud of the organization, promotion of organization‘s products, services and employment opportunities, extra effort in work, long-term orientation and identification of organizational goals and visions Furthermore, interviews of managers show that employees‘ characteristics, their perception and organizational practices may have impacts on employee loyalty

Furthermore, interviews of managers show that employees‘ characteristics, their perception and organizational practices may have impacts on employee loyalty From the in-depth interview with management and representatives of employees, the author identifies 7 factors that are perceived by employee that may influence employee loyalty These factors are: Working condition, Nature of the job, Promotion opportunities, Salary, Environment, Leadership, and Recognition

Based on the results of in-depth interview, the author then designed a draft version of questionnaires for a pilot survey to a small sample of employees All necessary corrections were finished to complete a final instrument

The primary data is collected by using self-administered questionnaires in papers and distribute directly to employees at VNPT with the permission of relative authority The respondents were required to read through the questionnaires and respond correctly Return questionnaires were collected by the author‘s team on the same day

Choosing of sample: random in proportion to employees in each unit

- Main contents of the questionnaires:

+ Gender, Age, Education, Seniority, Position of the respondents

B Characteristics of the respondents and their perceptions:

+ Relationship with leaders + Need for affiliation

+ Nature of Work + Employment Benefit + Working Environment + Recognition

D Behaviors characterized by loyal employees + Pride towards the organization

+ Promotion of organization‘s products, services and employment opportunities, + Extra effort in work,

+ Long-term orientation, + And identification of organizational goals and visions

These following procedures are planned to be used while evaluating of data:

+ Reliability of the measurement scales + Factor analysis of the latent structure of loyalty + And regression analyses will be used to answer research questions

Besides, we also use the common analytical methods as descriptions, statistics and analysis to evaluate the research content

SPSS software version 18.0 was used to analyze data

Step 6: Purpose solution, suggestions and recommendation

Based on the results of data analysis, conclusion would be made Then possible solutions were suggested together with recommendations

In this study, the author uses descriptive, comparative, and analytical research methods Also, desk research methods in which the author reviews previous research and theoretical documents about the research topics were utilized Furthermore, the author also uses sociological survey to collect data and applies both qualitative and quantitative method to explore and investigate the relationships among variables in the research model

Qualitative research is appropriate for exploratory research It is used to gain an understanding of underlying reasons, opinions, and motivations In this study qualitative research method was used to gain understanding of employee loyalty and the latent structure of the characterized behaviors associated with employee loyalty

Quantitative research answers questions through a controlled deductive process, allowing for the collection of numerical data, the prediction, the measurement of variables, and the use of statistical procedures to analyze and develop hypotheses from that data (Leedy & Ormrod, 2005; Rowan &

Huston, 1997) Quantitative research was appropriate for this study because it aims to investigate the impacts of many variables on employee loyalty

Questionnaire survey method (questionnaire survey): Data collection in the research was conducted through questionnaire survey with the respondents being current employees of the company

The author has designed questionnaires and consulted with instructors, experts and lecturers who are teaching at the HSB- VNU, some senior management people in the company A pilot survey of 20 employees was conducted to receive comments and suggestions for completing the questionnaire before conducting the actual survey

Survey questionnaire design: Questionnaire was developed based on the research model with 8 factors including 37 questions The questionnaire consists of three parts:

Part I: Introduction to research purposes

Part II: Include demographic questions, classification by professional level, age, gender, marital status.

Research method

To conduct the survey, the author conducted surveys to the employees in the company in two ways: One is direct interviews with the director and the head, of department to gain some understanding of the level of loyalty and the factors that affect loyalty of the employees The second a questionnaire distributed via Google Docs online survey tool, which is directed to employees at 03 members of the MobiFone company Due to job characteristics, working hours, work locations and the number of interviewees, the author selected the survey method through the Google Docs network With this form of survey, employees can easily receive and participate in survey at any time and in many locations This is expected to increase the reliability of the responses In addition, this form of survey also has the advantage that the interface can be customized , easy to use, and the author can also synthesize the results than because the results here can be saved into the worksheet This survey also has the disadvantage that the interaction between the author and the respondents is lower

According to Hair et al (1998), to select the appropriate sample size for the Exploratory Factor Analysis (EFA) analysis, the minimum observed scale N> 5 * x (x: total variable of observation) According to Tabachnick and Fideel (1996) for the best regression analysis, the minimum observed scale should be calculated using the formula N> 50 + 8m (where m is the independent variable) According to Bentlou and Chou (1987) the number of observations for each parameter is estimated as 5 observations Thus, in this study, in order to be consistent with the studies of the above authors and in accordance with their own research, the author used the observation number for 33 observation variables and 7 components: N> max (5x33; 50+ 7x8) (165,106) observed So the minimum sample size needed is 165 Because of the imperfect response rate and in preparation for returned questionnaires with incomplete data, the author sent the questionnaire via Google document form to 300 employees in 3 Member Companies of MobiFone to ensure appropriate sample size Non-probability method, convenient sampling was used Data were collected from April to July of 2018.

Data processing method

Secondary data sources: Data on the basis of loyalty: Collected from curriculum, from the Internet, researches, newspapers, magazines Data on from company sources such as annual financial statements, sector reports of the State Committee, internal documents of the HR department, documents on the organizational structure and operation of the company, the quantity of labor, level, the company's payroll regulations for the period 2015-2017

These data were used to get an understanding of the situation of employee loyalty as well as the policies for improving employee loyalty of the company

Primary data sources: Data collected from the survey forms were entered and used to compile, compare, and analyze data collected on Excel to assess the actual loyalty and performance

After receiving the answers, the authors encode and enter data, then analyze the data using Excel software

Analytical framework of this study

Based on the literature review and results of in-depth interview, the author proposes the following analytical model:

Limitations of the chosen methodology

The foreseen methodology though overall seen as the most successful can have the following limitations:

- Sample may not be representative of the whole population

- The interviewee can be absent leading to shortage of enough opinions/information

 Promotion of organization‘s product/service & brand

 Identification to the company‘s values, vision and goals

CURRENT STATUS OF EMPLOYEE LOYALTY

About MobiFone Corporation 32 1 Formation process, functions, tasks and organization of MobiFone 32

3.1.1 Formation process, functions, tasks and organization of MobiFone

On 01/12/2014, MobiFone Corporation was established on the basis of reorganizing the One-member Limited Liability Company under the Decision

No 1798/ QĐ-BTTTT of the Ministry of Information and Communications that, mobile communications company was established on 16/04/1993)

MobiFone Telecom Corporation has quickly implemented and completed the restructuring process of the Corporation in the model approved by the owner

Organizational structure of MobiFone now includes: a Internal audit committee of MobiFone b MobiFone's member units

- 13 functional boards include: o Organization and Personnel Committee o Finance Committee o Accounting Department o Strategic Planning Department o Network Development Board o Management Board of the network o Board of Investment o Business Department o Value-added Services Department o International Business Department o Information Technology Committee o Communication Board o Customer Care Department

- Office of the Corporation, Office of the Party - Union, Trade Union Office

- 01 functional room (Export-Import department) c Infrastructure management boards 1,2,3 and 1,2 d The subordinate units:

- MobiFone Network Center in the North, Central and South

- Center for Network Management and Governance (NOC)

- MobiFone Research and Development Center

- MobiFone Testing and Repair Center

- MobiFone Information Technology Center (IT)

- MobiFone Multimedia and Value Added Services (MVAS)

- Mobifone Charge and Liquidity Center " e The four subsidiaries include MobiFone Global, MobiFone Plus, MobiFone Service and AVG

As well as consolidating its organizational structure with the new model, MobiFone builds four main business fields: Telecom & IT - Multi- Service - Television - Distribution & Retail, aiming at strong transformation from one The company provides services to a national major telecommunications corporation providing telecommunications, information technology, television and integrated services

3.1.2 Functions and tasks of the units are as follows:

The MobiFone Service Sector 1,2,3,4,5,6,7,8,9 is responsible for the entire MobiFone services provided to all target groups according to the development plan of MobiFone in the provinces /city where the unit is assigned to manage

International Telecommunication Center: Having the task of managing and providing international telecommunication services; proposing investment, solutions, equipment and applications to develop international business services; Operating traffic routing; managing and operating international roaming service business; maintaining and ensuring the quality of international telecommunications services

The NOC center has the following functions: management, operation, maintenance of equipment, transmission and installation of core network equipment; Operating troubleshooting core network; Optimizing the quality of traffic directions and services provided to customers

MobiFone Research and Development Center has the following functions: Researching, improving and improving the quality of products and services with the best quality and price; Providing consultancy on technology transfer, intellectual property rights, on technology, products and services for MobiFone and other units

MVAS center has functions and tasks to develop and implement business plans, business policies, development of value added products and services, data; cooperate with business partners for provision of content…

MobiFone has the functions and tasks of researching, manufacturing and developing new information technology applications for MobiFone's customers; Studying the software systems of the company as the partners are implementing, receiving technology transfer, proceed to master the system, preside over optimization, upgrade and expand the features of the system

MobiFone Telecommunication Testing and Repair Center has the following functions and tasks: Installation and repair of telecommunications equipment and other auxiliary equipment; Testing of network quality; provide data for the optimum work of the units in the Company; Researching, testing solutions, technology, application techniques

MobiFone Charge and Liquidity Center has the function and task of exploiting MobiFone's centralized charging system and internal IT systems to serve network engineering and provide data for Business activities of MobiFone "

MobiFone Design Consultancy Center has the functions, tasks of investment consultancy, specialized construction of mobile information, information and telecommunication for MobiFone's units inside and outside

MobiFone Network Centers in the North, Central and South have the functions and tasks of: "Managing, operating, operating and maintaining equipment, transmission and wireless network infrastructure; Operate and handle incidents of broadcast stations in the area; "To optimize the network coverage to ensure the quality of network serving customers as required by the trading companies;

MobiFone model after restructuring has separated the business block and technical-network; Formed 03 business fields, business network and other units; Ensure the specificity, not overlapping each other, in a location with only one business unit representing MobiFone direct contact with customers, technical units and services as the supplier and support support, coordination for business; The production and business operation is organized uniformly, from the corporation level to the district and commune levels

MobiFone has started to build relationships among units in the same block and between units in different blocks through economic mechanisms and management sanctions (such as revenue sharing, revenue and expenditure difference ); coordination processes; Requirements, performance criteria, cross-evaluation between units on KPI criteria and salary, bonuses, etc of MobiFone units.

Situation of human resources at MobiFone Telecom

3.2.1 Workforce based on educational level

MobiFone's human resources are highly qualified in comparison with those in the same industry, and the percentage of workers with university degree or above is more than 85% This also reflects the structure of MobiFone's business which focuses mainly on high-tech knowledge-intensive business, with large part of work normally performed by external partners

Table 3.1: Mobifone Headcounts by Educational level

Through the table 3.1 above, it is easy to see that the structure of labor skills in MobiFone for the period 2015-2017 is stable with university level remains the dominant workforce and there were some increases in the percentage of college-level workers Although the rate of workers with university degrees and above has only slightly changed in the period 2015-

2017, the actual number of labors with this level of education has increased steadily, by 119 people in 2017 compared to 2015 At the same time, the percentage of college-educated workers has also increased steadily, reaching the highest level of 419 people, equivalent to a 10% increase compared to

2017 This shows that labor force in MobiFone is highly qualified and improved through year At the same time, the labor force has a high level of vocational school education, while trained workers account for a small percentage, tend to stabilize or decrease over the years, and the Corporation does not have unskilled laborers in the workforce

Table 3.2: MobiFone Headcounts by function

Tên đơn vị Số liệu lao động năm

About 65% of MobiFone's human resources are used for sales of products and services in 64 provinces and cities nationwide Nearly 20% of human resources are experts, engineers and technicians who are involved in network operation and network development Over 14% of human resources involved in other professional activities of MobiFone such as investment, accounting, management Can be seen that with a leading corporation operating in the field of telecommunications, IT Human resources for the technical sector is still an inadequate proportion

Table 3.3: MobiFone Headcounts by Area

Area 2 (TP Hồ Chí Minh) 420 10,03%

Area 4 (11 tỉnh Tây Bắc Bộ) 366 8,75%

Area 5 (13 tỉnh Đông Bắc Bộ) 488 11,66%

Area 6 (Thanh Hóa, Nghệ An, Hà

Area 7 (Khánh Hòa, 05 tỉnh Tây

Area 8 (09 tỉnh Đông Nam Bộ) 493 11,76%

Area 9 (12 tỉnh Tây Nam Bộ) 539 12,87%

The total number of employees by 2017 is recorded to be over 4 thousands employees divided into 9 regional units It can be seen that Ho Chi Minh city is the division with the highest percentage of total workforce followed by Hanoi Overall, we can observe the proportionate division of workforce into 9 regional units

MobiFone's average age of employees is relatively young, average 30.4 years, of which 85% is under 45 years old Up to 60% of managers (from head of deputy branch office, center upwards) are under age 45 (2015) It can be concluded that MobiFone has a relatively young workforce As indicated in the figure below, 51% of the corporation‘s employees are between 26 and

35 years of age, 20% are between 36 and 45, and workforce older than 40 only accounts for 15% Moreover, there are 14% of very young employees who are less than 25 years old The young labor force can present a significant advantage for the corporation because young people are more receptive to change especially technological changes On the other hand, it could be a big difficulty in retaining young employees who are willing to look for new challenges Interms of gender, 62% of the total workforce are men and the remaining 38% are women This structure can reflect the characteristics of a technological company

Figure 3.1: Workforce by age groups

(Source: MobiFone Corporation) 3.2.5 Labor force by productivity

The step by step introduction of new management tools has created changes in the layout, labor efficiency for MobiFone:

Average wages and incomes in the period 2015 - 2017 increase compared to the previous year in 2014, and meet the principle of lower wage growth than productivity growth By 2015, MobiFone has exceeded its business plan and was classified by the Ministry of Information and Communication as a Class A enterprise, deducted from the bonus fund and the benefit from the after-tax profit of up to 3 months' salary MobiFone has financial resources to reward and motivate employees Increased salaries and incomes contribute to increasing laborers' incomes, helping them to work peacefully, creating motivation to increase labor productivity in order to complete MobiFone's strategies in the coming years

(Source: MobiFone Corporation) 3.2.6 Workforce by position

The number of laborers performing management duties at MobiFone for the period 2015 - 2017 has increased steadily over the years: while the level of management increased by 241 in 2017 compared to 2015, the proportion of labor force also increased stably year, an average increase of 2.4% annually At the same time, the proportion of employees in the structure of labor assigned by MobiFone tends to decrease slightly from 72% in 2015 to 68.8% in 2016 and 67.2% 2017 This shows the potential for MobiFone promotion at the level of employees with real effort and competence

Through analysis of the human development aspects of MobiFone Telecommunications Corporation, it can be seen that human resource development at MobiFone has been carried out relatively effectively and positively through the following aspects:

- The level of the workforce has improved in quality and improved in quantity

- Labor productivity has increased steadily over the years

- Number of managers has increased in number These achievements show the interest in training for human resource training at MobiFone in the past, but it also raises the need to strengthen and develop training to maintain results have been achieved

Table 3.5: Employee by position Position

Current status of employee loyalty

Although the work force at MobiFone has been stable during the last three years, there have been a significant numbers of employees who left the company

The following figures indicated the turnover rate for the last three years

The data showed that while turnover rate was not very high (less than 10% of the total workforce) there was a trend that turnover rate is increasing quickly (increase by more than 20% year by year) It could be a signal that the level of employee loyalty is not high and is on the decreasing trend

The above figure indicated that among the employees that left the company, 37% was at the age of 25-35 and 25% was from 35 to 45 years old

These employees are experienced employees who have been at the company for a number of years While it could be normal for young employee to leave a company after a few years in charge, many experienced employees quitting the jobs seemed to be a serious problem that needs further investigation

Investigation by year of service pointed out that 35% of the employees who quit the company during the last 3 years had between 5 and 10 years of experience Normally, these employees should have learnt about the company‘s strategy, policy and operations Moreover, these employees also had good understanding about the company‘s core value and key success factor Losing these employees to other companies, especially to direct competitors would pose major problems to the company‘s growth and survival

Turnover by years of service

15 years

Figure 3.3: Turnover by year of service

Finally, among the resigned employees in the period of 2015-2017, more than 50% were at management position As indicated in Table above, management positions account for about 30% of the labor workforce The fact that a majority of the resigned employees were managers also signals that the level of employee loyalty at MobiFone is not high.

Status of enhancing loyalty

The annual merit award is implemented in accordance with the regulations of the Union on guiding the regulations of the Labor Union With the title of advanced labor, emulators, still carrying the form of meeting and emotional feedback, not really encouraging workers to improve labor productivity

During the past time, MobiFone did not pay due attention to develop indicators to evaluate the performance of employees, based on which to then develop compensation policy for the entire employees in the company Now the company created a 3P compensation system based on the position, the person and the performance in order to create motivation and improve employee loyalty The best incentive for the workers can also be explained formula: "Income = Salary + Bonus + Benefit"

3.4.3 Improving loyalty by working environment

The office space is designed for office workers Open space facilitates the exchange of information and work among departments The General information of enterprises is posted on the internal network of enterprises

Company news will be printed and distributed to each employee in the newsletter It allows staff to update and track information related to business situation of Mobifone However, with the working environment at the office Division: Labor protection has not been paid attention Mobifone needs The investment is equipped with adequate means of fire and explosion prevention equipment in case of occurrence Fire, investment in equipment for work, machine room electricity generators, and guest houses

3.4.4 Improving loyalty by training and career advancement opportunity

The company has organized many training courses for staffs but these courses were not specialized in the field the professionalism of the staff, and not interested in whether the employee can apply this knowledge in real work Every year the corporation also sends its employees to attend school in full-time program or In-service training programs for undergraduate, postgraduate, and Ph.D Many training courses to improve professional skills have also been conducted by the corporation; however, these training courses were not very effective in improving employee skills The employees still believe that getting a degree is enough for getting promotion and thus do not focus on improving knowledge and skills

Promotion conditions: The Corporation did not have a clear and fair promotion scheme which is made public to all employees As such, employees are not fully aware of the conditions to get promotion to such positions such as department directors, deputy heads of departments These position holders are mainly recruited from outside In a department, no vacant position as manager, intermediate, Assistant, and Team Leader are made available for staff to strive for It created the feeling that no matter how hard they try, they would receive only some recognition such as ―excellent employees‖ only

The Board of Directors of MobiFone focuses on creating warm, friendly, fair, and courteous working environment from within departments, business units and with customers, partners, and internal personnel The corporation tries to create a good sympathy within the organization and always listens to ideas; mutually solve problems in a cooperative manner The leaders often interact with subordinates in a frank and understanding manner

Besides, they created a grievance box that collects complaints from employees which will be heard by top management

On the one hand, the company has done a good job in encouraging the motivation of the employees to work hard by implementing a compensation system that includes incentive-based component, by recognition Moreover, the company also encourages team spirit by creating fair, courteous and fun working environment with team building and outdoor activities These efforts have given employees the motivation to work and to commit to the organization

On the other hand, the most obvious problem that employees complain about is that the basic salary level of the entire company is less than what they expect, or in other words, not comparable to that of other companies in the same industry or in other sectors The employees also have the feeling that year-end bonuses are essentially just daily and monthly savings for those extra-time working efforts This did not have much encouragement effects Together with salary, training and promotion opportunities are another concern of the employees They did not believe that they have a good chance of being promoted within the company or that promotion is based on other factors than job performance and competency.

Results of empirical survey

The author has sent questionnaires to 300 employees in all of the 9 regional units of MobiFone via email with the link to Google document The employees who receive invitation email have the right to choose whether to participate in the survey After this step, 249 responses were received In order to ensure that the questionnaire has been received, emails confirming receipt status will be sent after 1 week For unanswered respondents, the questionnaire will be sent to the email address of the original correspondence and the original email address for the unanswered mail With this study, the number of responses received was 245 After checking the information, the author identified 12 questionnaires that were not completely filled out

Furthermore, 8 questionnaires that had multiple answers for one items were also discarded After rejecting invalid forms, there are 225 valid and usable questionnaires that can be used for analysis Below is a description of the features research sample

Table 3.7: Characteristics of the sample by gender

(Source: Data collected by author)

It can be seen that in the sample, male employees accounted for about 63% of the respondents and female employees made up about 37% While in the population MobiFone, the percentage was 62% and 38%, respectively This suggests that the sample is representative of the population in terms of gender distribution

Table 3.8: Characteristics of the sample by age group

(Source: Data collected by author)

In the sample, the majority of the respondents are in the 26-35 age group (51%) and the percentage of these people in the sample was the same as in the population Other than that, in the sample, the number of respondents who were older than 45 was less than in the population The ratios for other age groups were quite similar to that of the population Thus, in general, it can be said that the sample is a good representative of the population

Table 3.9: Characteristics of the sample by educational level

(Source: Data collected by author)

The above data indicated that in the sample, employees with at least University degree made up 76% of the total sample, while the other figures were 12% for college degree, 8% for vocational school and 4% for trained workers Again, we can see that although not perfect, the sample could be considered representative of the population with the relative figures are 85%, 10%, 3% and 2% respectively

Table 3.10: Characteristics of the sample by year of service

Years of service Frequency Percentage

(Source: Data collected by author)

Most (80%) of the employees in the sample works for the company from one to three years and three to five years accounting for 45% and 35%, respectively These figures reflect the fact that MobiFone has a relatively young workforce with average age of 30.4

Table 3.11: Characteristics of the sample by area

No Sample collected from No (people) (%)

2 Area 2 (TP Hồ Chí Minh) 23 10.2

4 Area 4 (11 tỉnh Tây Bắc Bộ) 20 8.9

5 Area 5 (13 tỉnh Đông Bắc Bộ) 25 11.1

6 Area 6 (Thanh Hóa, Nghệ An, Hà

7 Area 7 (Khánh Hòa, 05 tỉnh Tây

8 Area 8 (09 tỉnh Đông Nam Bộ) 26 11.5

9 Area 9 (12 tỉnh Tây Nam Bộ) 29 12.9

(Source: Data collected by author)

I feel proud to be a member of my organization

I proudly tell other people stories about my organizations

I actively promote my organization‘s product and service

I persuade my friends to use my organization‘s products, service

I work to achieve my company‘s visions and goals One of my goals is to help my organization achieve its goals and visions

I try to find ways to contribute more to my organization

I improve myself so that I can make more contribution to my organization

I would spend my whole life with this organization

My future lies with this organization

Location and transportation is convenient Necessary equipment are fully provided Workplace is safe and comfortable

Working hour is flexible and appropriate

Job requires variety of skills Jobs that are important for the company Jobs that offer timely and frequent feedback Jobs that match with ability

Promotion opportunities are equitable for employees There are plenty of for employees

Employees who got promoted were deserved

Pay is in line with job performance Salary is enough for meeting living expenses Salary is competitive in comparison with similar company Salary is equitable among employees

There are appropriate benefit and allowance Bonus are based on job performance

I work in a very friendly working environment

My co-workers are nice and helpful

My co-workers treat me in a polite and honest manner

I receive a lot of support from my co-workers

I can receive support from my leaders when needed

My leaders are trustworthy and reliable

My leaders are friendly and intimate

My leaders are committed and devoted to the jobs

I can learn a a lot from my leaders and supervisor

Recognition for employee include both financial and non- financial rewards

Employee are recognized for both long-term service and contribution

Criteria for recognition and rewards are clear and fair

The company provide timely and appropriate recognition scheme

3.4.2 Assessment of employee loyalty at MobiFone 3.4.2.1 Overall assessment

Table 3.13: Overall loyalty of employees at MobiFone

STT Nội dung Strongly disagree Disagree Neutral Agree Strongly agree Average

I feel proud to be a member of my organization

I proudly tell other people stories about my organizations

I actively promote my organization‘s product and service

I persuade my friends to use my organization‘s

I work to achieve my company‘s visions and goals

One of my goals is to help my organization achieve its goals and visions

I try to find ways to contribute more to my organization

I improve myself so that I can make more contribution to my organization

I would spend my whole life with this organization

My future lies with this organization

(Scale: 1: strongly disagree, 5: strongly agree) Survey results indicated that overall the loyalty level of employees at MobiFone was not very high The average points for all items were less than 4.2 The average score across all 5 dimensions (10 items) was 3.84 Among the 5 dimensions of employee loyalty, ―Identification to the company‘s values, vision and goals‖ had the lowest average score Specifically, the average score for ―I work to achieve my company‘s visions and goals‖ was 3.39 and ―One of my goals is to help my organization achieve its goals and visions‖ was 3.64

The dimension of ―desire to remain at the organization for a long time‖ had the second lowest average score Nearly 60% of the respondents were not sure whether they would spend their whole working life with the current organization The average score for this item was only 3.60 Similarly, only 9% of the respondents believed that their future lie with the organization while about ẳ of all the respondents did not believe that they had future here

This could reflect the fact that

The second highest score was observed for the dimension of ―ready to introduce products or services‖ with average score of more than 4.0 The score for actively promote company product and service was 4.02 and persuade other to use company‘s product and service was 4.06 It may reflect that the quality of MobiFone service was acceptable

Proud of the organization did not have a high average score Among the respondents, only 11% strongly agreed that they ―feel proud to be a member of the organization‖ while upto 40 percent of them had a neutral attitude towards it The average score for this item was 3.69 Similarly, only 9% of the surveyed people strongly agreed that ―I proudly tell other people stories about my organizations‖ with the average score for this items of 3.92

Highest average score was observed for the dimension of ―Strive to contribute to the organization‖ with average score of 4.13 In which the item

―I try to find ways to contribute more to my organization‖ has the highest score of 4.14 and the item ―I improve myself so that I can make more contribution to my organization‖ scored 4.13 The reason for high scores on this dimension can be explained that the company might have a contribution- based compensation system which rewards excellent contributions

3.4.2.2 Difference in employee loyalty among genders, age groups and education

The data indicated that the mean score for employee loyalty

Table 3.14: Mean score for loyalty by gender

Gender No of respondents Mean Loyalty

Table 3.15: ANOVA result for gender

Sum of Squares df Mean

(Source Data analysis by author)

The results of ANOVA indicated that there was significant difference between male and female employees with regards to employee loyalty Male employees were found to express less loyalty towards the organization The results could be explained by the fact that male employee may place higher important on promotion and salary than female employees and are more willing to move to another organization in order for seek these outcomes

Other ANOVA for age groups and education level did not result in any significant difference.

SOLUTION AND RECOMMENDATION

Summary of research findings

The current research examines the factors that affect employee loyalty towards their organization While there have been a number of research in the topic, few of them took a systematic approach in identifying the predictors of employee loyalty While many of the previous research used the term loyalty as a synonym to organizational commitment, this research supports the view that loyalty and commitment are two different constructs Moreover, because it is difficult to measure employee‘s loyalty, the current research uses the loyalty- characterized behaviors as proxy of employee loyalty From in-depth interview with managers and employees, the research identify 5 components of behaviors that characterize a loyal employee including proud of the organization, promoting organization‘s product/service and image, long-term orientation, extra effort at work and support the organization‘s visions and goals

This research examines individual characteristics and human resource management practices as antecedents of employee loyalty Individual characteristics include such variables as gender, age group, educational level and tenure Organizational characteristics examined in this research are the human resource policy and practices that were issued and implemented by the organization From the in-depth interview with management and representatives of employees, the author identifies 7 factors that are perceived by employee that may influence employee loyalty These factors are:

Working condition, Nature of the job, Promotion opportunities, Salary, Environment, Leadership, and Recognition

The results of the analysis showed support for all of the

In conclusion, the research confirmed the impacts of individual characteristics and organizational practices on employee loyalty towards the organization While some of the individual characteristics in this study were individual traits which cannot be easily changed, the other is perceptions which can be influenced by management Also, organizational practices have important influence on employee loyalty, which is the focus for organizational management and policy makers.

Some solutions to improve employee loyalty at MobiFone

4.2.1 Redesign the recognition and reward system

MobiFone should focus on evaluating the current recognition and reward system As indicated in the previous chapter, recognition from company of the employee‘s contributions is very important It not only allows the employees to feel their importance to the organization but also shows that the company appreciates the employee‘s contributions Therefore, the recognition and reward system should improve the effectiveness of the management system In order to do so, first the company needs to rebuild recognition scheme with clear and obvious criteria, transparent evaluation procedures and public announcement of rewards This helps the employees to focus their efforts on the areas that contribute to the organization‘s strategy

Furthermore, it would motivate the employees‘ effort by motivating them

Beside, recognition and rewards must be fair and equitable and timely Fair and equitable evaluation of employees‘ contribution will increase employee‘s respect towards their leaders Recognition and rewards must also combine financial and non-financial rewards As reported by the employees, current reward at MobiFone was mainly non-financial with almost no financial components

In addition, the combination of departments with the commendation committee to evaluate the performance and contribution of employees in the corporation is recommended Thereby, there are objective assessments to record employee contributions to the corporation In addition, the recognition is reflected in the concerns of the higher level Therefore, it is important to make recommendations to the superiors on the assessment of employee contributions

4.2.2 Improving loyalty via working condition

Although working condition at MobiFone was judged quite high by the employees as the second highest factor Leaders need to improve and create a good working environment for employees of the corporation They should also do more extracurricular activities, programs for community activities, for businesses with the participation of many members in the company

In addition, the leadership should create more favorable conditions in activities related to the operation of the enterprise, which must be carried out by the staff such as business trips, working trips

Furthermore, the company may revise the working time regime, design flexible working hours to meet the requirements of employees, especially the female staff Flexible working time regulation will save time traveling, especially during peak hours Along with that, advances in science and technology can enhance the ability to work at home to reduce the cost of the business

4.2.3 Improving loyalty via promotion and development

Getting promoted is one of the employee‘s righteous wishes; it directs employee‘s direction, consistency and intensity of efforts As a matter of fact, if the employees could not get promotion after lengthy year of service and contribution, they might have to quit the job to look for new opportunities

According to the survey results, promotion was ranked lowest by the respondents with an average score of 2.15 The employees at MobiFone did not believe that they have equal promotion opportunities and that the one who got promoted may not be the ones who deserved

Therefore, the company needs to create opportunities for promotion in the workplace It may be difficult for high-level positions to perform this task, but mid-level positions are well suited for employees who have the capacity but still too young, besides, the competition among the staff in the work position is also necessary to enhance their loyalty

The company needs staff training policies and promotion policies that match the capabilities of employees Training and promotion policies are important to maintain their loyalty and to improve their performance in the organization Specifically, in this study, the company needs to support employees by providing training courses every year

The company needs to clarify their training policies to employees, helping them understand the company's interest in training within the company In addition, companies need to find out what their training needs are, what they need to know, where their weaknesses are, and then have appropriate training policies to reduce costs of training as well as reduce the wastage of learning time of employees Next, the company needs to have appropriate policies to help the trained worker have the right job as well as the right job position with his / her expertise

Recommend to the administrative department should coordinate with the department to accurately assess the need for training and learning of staff interns group Thereby, there are annual plans to plan training and training for employees to improve their performance

For employees, income is not all but always the most important factor

The same type of job and work environment is the same but if their income is too low compared to colleagues in other businesses it will be very difficult to retain them if they have the opportunity to change The data showed that the employees at MobiFone were not happy because their salary levels were not in par with those at other companies in the same industry In order to ensure that salary levels at MobiFone were competitive among the same industry,

MobiFone needs to carry out salary survey and redesign their salary system based on intensive job evaluation

Moreover, the company must have a reasonable salary policy in the context of economic hardship, and income must be determined on the basis of the employee's contribution to motivation and loyalty

In addition, the company should regularly inquire about the life of employees in the company to support policies as well as salary policy consistent with the situation

For the accounting-finance department, they need to reconsider all inter-related expenses relative to salary and income of employees Collaborate with related departments to re-evaluate the policy of wages, income more accurately and more effectively based on the capacity of the staff

4.2.5 Improving loyalty through working environment

Recommendations

The research findings have some recommendations for academics

First, the results of in-depth interview support the view that employee loyalty is different from organizational commitment

Second, because employee loyalty is difficult to measure, it is necessary to use proxy to measure loyalty The validity of the current research provides support for the use of loyalty related behaviors as proxy for employee loyalty The results also provided support for the 5 dimensions of loyalty characterized behavior

Finally, the research suggested that both individual and organizational characteristics can influence employee loyalty in significant ways In other way, loyalty can be influenced and directed by altering the perception of employees and by a certain set of organizational practices

Practitioners and manager can improve employee loyalty by focusing on the policies and practices that may enhance the feeling of pride towards the organization such as recognition and ethical code of conduct They can also improve employee long-term commitment by implementing internal promotion policy, preference of internal candidate for promotion and provide training for future promotional opportunities Another way to improve loyalty can be done by assignment of work based on consideration of the job holder‘s background qualification, preference and significance of the work On the other hand, providing good benefit package does not guarantee employee loyalty but it would be important to retain employees and keep them away from attractive package offers from other companies

Management can also influence the perception of employee about labor market and employment opportunity by providing updated information and highlighting the advantages of working for the current organizations As another mean, effort should also be spent to build up organizational image as an employer brand which may improve the employees‘ feeling of pride when they work for the organization

A high quality relationship with leader can be maintained between managers and key employees in order to enhance the feeling of loyalty towards the organizations

Individual difference variables have been found to link with the employees‘ attitudes and behaviors at work In this study, level of need for affiliation has been found to affect loyalty However, Vietnamese organization usually pays little attention on such information In the near future, Vietnamese companies should carry out personality and personal traits survey questionnaires on job candidates at the time of recruitment to collect such information.

Limitations of the research

The first limitation of the research is about sample selection The main survey was conducted in just one company which might not represent the overall Vietnamese employees

The second limitation of the research is about its cross-sectional design

Because employee loyalty can change overtime, longitudinal study would be better in tracking the behaviors of loyal employees

The third limitation of the research is due to is self-reported questionnaires Some variables like human resource practices by the organization should be answered by the head of human resource department or by senior management to ensure accuracy and free-of-bias.

Suggestions for further studies

Future study in this topic can be extended to longitudinal research design which can help understand the changes in the behavior of loyal employees Besides, group characteristic variables were not included in this research and can be explored in future studies Finally, more research attempts are needed to explore reliable proxy of loyalty

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The case of work commitment Academy of Management Review,8, 486–

SURVEY QUESTIONNAIRE Phần I: Thông tin cá nhân

□ Công nhân kỹ thuật □ Trường nghề □ Cao đẳng - Đại học □ Trên đại học 4 Thời gian làm việc của anh/chị trong doanh nghiệp:

Phần 2: Xin anh chị cho biết ý kiến với những nhận định sau theo quy ước:

1: Hoàn toàn không đồng ý 2: Không đồng ý 3: Bình thường

Tôi tự hào là một thành viên của MobiFone 1 2 3 4 5 Tôi tự hào kể chuyện về công ty của tôi 1 2 3 4 5 Tôi chủ động quảng bá sản phẩm và dịch vụ của MobiFone

Tôi thuyết phục bạn bè sử dụng sản phẩm của công ty

Tôi làm việc nhằm đạt mục tiêu và tầm nhìn của công ty

Một trong các mục tiêu của tôi là giúp công ty 1 2 3 4 5 thực hiện được mục tiêu và tầm nhìn

Tôi cố gắng tìm cách đóng góp nhiều hơn cho công ty

Tôi hoàn thiện bản thân để có thể đóng góp nhiều hơn cho công ty

Tôi có thể làm việc cả đời ở công ty này 1 2 3 4 5 Tương lai của tôi là pử công ty này Địa điểm và giao thông thuận tiện cho tôi 1 2 3 4 5 Trang thiết bị cần thiết được cung cấp đầy đủ 1 2 3 4 5 Nơi làm việc là an toàn và tiện nghi 1 2 3 4 5 THời gian làm việc linh hoạt và hợp lý 1 2 3 4 5 Công việc yêu cầu nhiều kỹ năng khác nhau 1 2 3 4 5 Công việc là quan trọng trong công ty 1 2 3 4 5 Công việc của tôi được phản hồi đầy đủ 1 2 3 4 5 Công việc phù hợp với khả năng của tôi 1 2 3 4 5

Công vieccj thách thức và thú vị 1 2 3 4 5

Cơ hội thăng tiến là bình đẳng cho mọi người 1 2 3 4 5

Có rất nhiều cơ hội thăng tiến cho nhân viên 1 2 3 4 5 Những người được thăng chức là xứng đáng 1 2 3 4 5 Lương tương ứng với kết quả công việc 1 2 3 4 5 Lương là đủ để trang trải cuộc sống 1 2 3 4 5 Lương là cạnh tranh so với công ty khác 1 2 3 4 5 Mức lương được xác định một cách công bằng

Có nhiều lợi ích và trợ cấp hợp lý 1 2 3 4 5

Thưởng được xác định dựa trên thành tích 1 2 3 4 5

Môi trường làm việc thân thiện 1 2 3 4 5

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