(Luận văn) impact of rewards management system on employees job performance through work motivation, a study in companies in ho chi minh city luận văn thạc sĩ

UNIVERSITY OF ECONOMICS HO CHI MINH CITY t to ng International School of Business hi ep w n lo ad Nguyen Thi Ngoc Suong ju y th yi pl al n ua IMPACT OF REWARDS MANAGEMENT SYSTEM ON EMPLOYEE'S JOB PERFORMANCE THROUGH WORK MOTIVATION: A STUDY IN COMPANIES IN HO CHI MINH CITY n va ll fu oi m at nh z MASTER OF BUSINESS (Honours) z k jm ht vb om l.c gm n a Lu Ho Chi Minh City - Year 2014 n va y te re th UNIVERSITY OF ECONOMICS HO CHI MINH CITY t to ng International School of Business hi ep w n lo ad Nguyen Thi Ngoc Suong ju y th yi pl IMPACT OF REWARDS MANAGEMENT SYSTEM ON EMPLOYEE'S JOB PERFORMANCE THROUGH WORK MOTIVATION: A STUDY IN COMPANIES IN HO CHI MINH CITY n ua al n va ll fu m oi ID: 22120069 at nh z z k jm SUPERVISOR: ht vb MASTER OF BUSINESS (Honours) om l.c gm Dr TRAN HA MINH QUAN n a Lu Ho Chi Minh City - Year 2014 n va y te re th Page |1 t to ACKNOWLEDGEMENT ng hi ep I would like to express my sincere appreciation and gratitude to the people who supported w and provided me necessary encouragement to complete the thesis n lo ad To my supervisor, Dr Tran Ha Minh Quan for his kindly continuous support, guidance, ju y th advise and correction of my thesis yi To colleagues and staffs who willingly participated in the study and provided necessary pl ua al data for the study to be completed n Lastly to my partner, family and friends who encouraged and believed in me n va ll fu oi m at nh z z k jm ht vb om l.c gm n a Lu n va y te re th Page |2 t to ABSTRACT ng hi ep Nowaday’s all firms or business entities are facing so many issues related to employee’s job performance and employee’s work motivation Getting people feel w n motivated to their best work, is always one of the most challenges of managers in any lo ad organization And without motivation employees will not put up their best and the ju y th companys performance would be less efficient especially in developing countries where working conditions are unattractive As rewards have much impact on employees, which yi pl increase the level of job performance, this study was conducted to is to find out "Impact ua al of rewards management system on employee’s job performance through work n motivation" in companies in Ho Chi Minh City With the analysis of data collected va n through Questionnaires distributed by respondents, this study indicates that there is a fu ll positive relationship of four mainly focused factors: pay factor, benefits, promotion and m oi recognition of rewards management system, motivation and job performance of at nh employees z Keywords: impact, rewards, rewards management system, work motivation, job z k jm ht vb performance om l.c gm n a Lu n va y te re th Page |3 t to TABLE OF CONTENTS ng hi ep Contents ACKNOWLEDGEMENT w n ABSTRACT lo ad TABLE OF CONTENTS y th Chapter I INTRODUCTION ju yi 1.1 Research background pl ua al 1.2 Management problem n 1.3 Research gap va n 1.4 Research objective ll fu oi m 1.5 Research question at nh 1.6 Research significance z 1.7 Research scope z ht vb 1.8 Research structure k jm CHAPTER LITERATURE REVIEW 10 gm 2.1 Motivation 10 om l.c 2.2 Theories of motivation 11 2.3 Total rewards management system 15 a Lu 2.4 Employee job performance 17 n y 2.6 Hypotheses 18 te re performance 18 n va 2.5 Relationship among rewards management system, motivation and employee’s job th CHAPTER RESEARCH METHODOLOGY 23 Page |4 t to 3.1 Research design 23 ng 3.2 Data source and collection method 23 hi ep 3.3 Measurement scale 24 w 3.4 Sampling design 26 n lo ad 3.5 Data analysis 26 ju y th CHAPTER DATA ANALYSIS 29 yi 4.1 Descriptive statistics of sample 29 pl ua al 4.2 Measurement scale 30 n 4.3 Exploratory Factor Analysis (EFA) 31 va n 4.4 Correlation Analysis 36 fu ll 4.5 Regression Analysis 38 m oi 4.5.1 Regression assumption checking 38 nh at 4.5.2 Hypothesis testing 40 z z 4.6 Analysis of Variance (ANOVA) 44 vb jm ht CHAPTER CONCLUSION AND RECOMMENDATION 47 k 5.1 Conclusion 47 gm 5.2 Recommendations 48 l.c om 5.3 Limitations 49 n a Lu REFERENCES 50 n va APPENDIX 55 y te re th Page |5 t to Chapter I INTRODUCTION ng This chapter represents about introduction of the research which includes hi ep research background, management problem, gap, objectives, questions significance, scope and structure of the research w n lo 1.1 Research background ad Nowadays, it is considered that human resource is the most important factor y th ju leading to the success or failure of a business all over the world, especially in Vietnam yi Development of human resource is one of the most important works in the development pl ua al strategy in any organization A company can have a modern technology, good quality of service, and even good infrastructure, etc but it may hardly survive and build competitive n n va advantages in the long term period if lacking of labor force doing work effectively fu ll As Lawler (2003) said, the way that people are treated increasingly determines m oi whether an organization will prosper or even survive An effective organization has to at nh make sure that there is a strong cooperation and satisfaction among employees And in z order to make employee perform their best in the organization, there is a need of effective z motivation at various employee’s levels (Bedeian, 1993) ht vb jm Motivation is a process that energizes, directs, arouses and sustains the behavior k and performance of the employees (Luthans, 1998) Thus, motivation is the process that gm stimulates the employees to put their full efforts in order to achieve a desired task (Ishfaq l.c Ahmed, 2011) And one considerable way to make employees motivated and perform the om best in their job is using rewards management system (Deeprose, 1994) Because, the a Lu rewards have major impact on organizations capability to catch, retain and motivate high n n va potential employees (Fay and Thompson, 2001) investments The economy in this city has grown at a rate of approximately 10% per year th activities of Ho Chi Minh City are always vibrant, and strongly attractive for foreign y As the largest commercial and economic center of Vietnam, the economic te re 1.2 Management problem Page |6 t to of GDP each year However, there is a fact that, in the current context of global economic ng crisis, many companies in Ho Chi Minh City have to think about how to survive hi ep themselves and where to make necessary cuts so that the business will survive To the cuts, they have to reduce staffs, but also keep core employees stay during the recession w n In a meanwhile, there is always a fierce competition among companies to attract lo ad employees, especially those who are skillful and have good experiences through y th motivational programs That leads to difficulties of unstable human resource of a ju company when employees try to jump to other places where they think have better yi pl benefit and working mode like Vansteenkiste (2005) used to say: "Today employees are ua al involved in their working activities which are for their benefits and feel intrinsic n motivation in their behaviors as their activities are enjoyable and satisfactory" n va fu Facing such situation, the big question for management of most companies in Ho ll Chi Minh City is how to make employees motivated to work most productively? It is m oi really a big problem that any managers and leaders in Ho Chi Minh City concern about at nh 1.3 Research gap z z As a motivational method, rewards management system is being applied in many vb jm ht companies located in Ho Chi Minh City, especially those which have a big capital invested from abroad However, should the manager use financial aspects like bonuses, k gm higher payrolls, pensions, sick allowances, and risk payments, etc as motivators in order l.c to enhance employee's job performance? If financial motivation has been failed, which om aspect will come? While most managers tend to believe that they can adequately motivate a Lu their workers by offering rewards such as higher pay or bonuses, money may not work as n a motivation for all people because different people will act in different ways (Armstrong motivation on employees (Hai Anh, 2013) It means the important point is how to th been suddenly decreased due to the tough economic situation Hence, it leads to the less y effectively And some of employees feel demotivated when benefits of the company have te re to the company but they have been just treated equivalently to those who work less n va & Stephens, 2005) In fact, there are only few employees who truly contribute their best Page |7 t to recognize which kind of rewards should be applied for which kind of employee ng Undoubtedly, employees with different attitudes, behaviors, experiences, they need hi ep different way to promote their creativity and capacity as well Therefore, in order to motivate an employee so that he can perform his best in the job, it requires a flexible w rewards system Although there are many studies about employee’s motivation and job n lo ad performance in Viet Nam context, there is no official study mentioning about how to y th apply rewards management system effectively for various kinds of employees so that ju they all can be motivated This study is try to fulfill this gap by re-measuring the yi pl relationship as well as impact of rewards management system on employee’s ua al performance with the mediating role of motivation, focusing on four main factors of n rewards named pay factor, benefits, promotion and recognition n va fu 1.4 Research objective ll As a consequence of above issue, objective of the study is to investigate the m oi impact of rewards management system on employee’s performance with the mediating nh at role of motivation then provides the support to management level on how to apply z rewards management system effectively z jm ht vb 1.5 Research question The research will address the following specific questions: k gm Is there any relationship between rewards management system, employee's work How does rewards management system impact on work motivation? n n va How to apply rewards management system effectively? a Lu How does work motivation impact on employee’s job performance? om l.c motivation and job performance? the answers of research questions and basing on that helps companies located in Ho Chi th important roles in the development of a company Therefore, this study tries to find out y In this changing world, employee’s motivation and job performance play te re 1.6 Research significance Page |8 t to Minh City could approach the effective rewards management system which would enable ng their employees motivated to show the best job performance hi ep 1.7 Research scope w This study is limited to research on impact of rewards management system on n employee’s performance with the mediating role of motivation in companies in Ho Chi lo ad Minh City To be convenient, and directly accessible to the objective, this study aims to y th employees who are currently working in companies in Ho Chi Minh City as the ju yi respondents for the questionnaire survey The questionnaire is distributed by respondents pl within July, 2014 The study will be ended by September 2014 n ua al 1.8 Research structure va The structure is organized with five parts The first part is about the introduction n ll fu of the study The second one is an integration of literature and hypotheses The third is oi m the discussion on research method Following that, the data analysis process and its the last part at nh findings are presented in the next parts And, conclusion of the research is consisting in z z ht vb Chapter provides overview of research background, management problem that jm companies in Ho Chi Minh City are facing As a result, research gap, research objectives, k significances as well as research scope and research structure are identified It provides a l.c gm brief insight into the study om Chapter provides understanding of rewards management system, motivation a Lu and employee’s job performance This chapter provides an insight into these concepts by n focusing on previous research in this area and presents reviewed literature relevant to this n va study After that, hypotheses of the research are mentioned th collect the data, and the technique used for data analysis y chapter describes the sample of the study, measurement approached, how to follow to te re Chapter describes the research design which is utilized Specifically, the P a g e | 63 t to Component Analysis a components extracted ng hi ep 2.2 Job performance KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy w 705 n lo Approx Chi-Square 282.033 ad Df Sig 000 ju y th Bartlett's Test of Sphericity yi pl Communalities n ua al Initial Extraction PER1 1.000 753 PER2 1.000 763 PER3 1.000 858 Extraction Method: Principal Component Analysis n va ll fu oi m Total Variance Explained nh at Initial Eigenvalues % of Total Variance Cumulative % 2.375 79.158 79.158 z z k om l.c gm n n va 868 874 926 a Lu y te re PER1 PER2 PER3 Extraction Method: Principal Component Analysis a components extracted jm Component Matrixa Component 92.598 100.000 ht 403 13.440 222 7.402 Extraction Method: Principal Component Analysis vb Component Extraction Sums of Squared Loadings % of Total Variance Cumulative % 2.375 79.158 79.158 th P a g e | 64 t to ng hi APPENDIX C ep REGRESSION ANALYSIS w Regression Analysis with dependent variable: Motivation n lo Variables Entered/Removed(b) ad Variables Entered Variables Removed ju y th Model Method yi pl al M_REG, M_BEN, M_PRO, M_PAY(a) a All requested variables entered b Dependent Variable: M_MOT n ua n va Enter ll fu oi m Model Summary(b) R Square Std Error of the Estimate z Adjusted R Square z R at nh Model 0.59 0.581 0.59915 k jm 768(a) ht vb 64.725 000(a) n va 23.235 0.359 Sig n y te re 92.942 Residual 64.617 180 Total 157.559 184 a Predictors: (Constant), M_REG, M_BEN, M_PRO, M_PAY b Dependent Variable: M_MOT F a Lu Regression Mean Square om Model l.c ANOVA(b) Sum of df Squares gm a Predictors: (Constant), M_REG, M_BEN, M_PRO, M_PAY b Dependent Variable: M_MOT th Coefficients(a) P a g e | 65 t to ng hi Stand ardize d Coeffi cients Unstandardize d Coefficients Model ep Std Error B t Collinearity Statistics Sig w Toleran ce Beta VIF n (Constant) lo -0.431 M_PAY 0.31 M_BEN 0.243 M_PRO 0.24 M_REG 0.247 a Dependent Variable: M_MOT ad ju y th yi 0.25 0.073 0.062 0.068 0.069 -1.725 4.271 3.895 3.528 3.587 0.29 0.219 0.228 0.221 0.086 0 0.001 0.496 0.718 0.546 0.602 2.018 1.393 1.833 1.661 pl ua al n Collinearity Diagnostics(a) Variance Proportions Conditi (Con on M_PA M_PR stant M_BEN Index Y O ) 0 0 12.166 0.02 0.93 0.05 13.857 0.88 0.16 0.02 0.09 15.359 0.07 0.02 0.03 0.38 16.987 0.04 0.8 0.02 0.49 Eigen value n Dimensio n va Model M_REG ll fu oi at nh z z ht vb k Std Deviation Mean N 4.6234 1.62965 3.4959 0.71072 0.59261 185 185 Std Predicted Value -4.064 1.586 185 2.72 0.989 185 n va y te re -3.301 a Dependent Variable: M_MOT n Std Residual a Lu 0.6074 -1.97781 om Predicted Value Residual l.c gm Maximum jm Residuals Statistics(a) Minimum 0.11 0.8 0.09 m 4.904 0.033 0.026 0.021 0.017 a Dependent Variable: M_MOT th P a g e | 66 t to ng hi ep w n lo ad ju y th yi pl n ua al n va ll fu oi m at nh z z k jm ht vb om l.c gm n a Lu n va y te re th P a g e | 67 t to ng hi ep w n lo ad ju y th yi pl n ua al n va ll fu oi m at nh Regression Analysis with dependent: Job Performance z k jm ht vb l.c gm Std Error of the Estimate 74419 om n a Lu n va Model Summaryb Adjuste dR Model R R Square Square 614a 377 373 a Predictors: (Constant), M_MOT b Dependent Variable: M_PER z Variables Entered/Removeda Variables Variables Model Entered Removed Method M_MOTb Enter a Dependent Variable: M_PER b All requested variables entered te re ANOVAa 101.348 Mean Square 61.268 183 554 df F 110.630 Sig .000b th Regressio n Residual Sum of Squares 61.268 y Model P a g e | 68 t to Total 162.616 a Dependent Variable: M_PER b Predictors: (Constant), M_MOT 184 ng hi ep Coefficientsa w Standar dized Coeffici ents n lo ad Unstandardize d Coefficients Std B Error 1.26 214 624 059 y th Beta t 5.91 10.5 18 ju Model (Consta nt) M_MO T a Dependent Variable: M_PER yi pl 614 Correlations Zero- Parti order al Part Sig .000 000 614 614 614 Collinearity Statistics Toler ance VIF 1.00 1.00 n ua al n va Collinearity Diagnosticsa Variance Proportions Conditi Eigenval on M_MO Model ue Index (Constant) T 1 1.967 1.000 02 02 033 7.706 98 98 a Dependent Variable: M_PER ll fu oi m at nh z Std Deviation 57704 N 185 00000 74216 185 000 1.000 185 000 997 185 k jm ht vb om l.c gm n a Lu n va Minimum Predicte 1.8904 d Value Residua -3.22886 3.10959 l Std -2.697 1.625 Predicte d Value Std -4.339 4.179 Residua l a Dependent Variable: M_PER z Residuals Statisticsa Maximu m Mean 4.3848 3.4468 y te re th P a g e | 69 t to ng hi ep w n lo ad ju y th yi pl n ua al n va ll fu oi m at nh z z k jm ht vb om l.c gm n a Lu n va y te re th P a g e | 70 t to ng hi ep w n lo ad ju y th yi pl n ua al n va ll fu oi m at nh z z k jm ht vb om l.c gm n a Lu n va y te re th P a g e | 71 t to APPENDIX D ng QUESTIONNAIRE hi ep Questionnaire in English w QUESTIONNAIRE n lo IMPACT OF REWARDS MANAGEMENT SYSTEM ON EMPLOYEE’S JOB PEFORMANCE WITH THE MEDIATING ROLE OF WORK MOTIVATION: A sutdy in companies in Ho Chi Minh City ad ju y th Dear Colleague, yi pl I am in the process of completing my Master's degree in ISB institute of University of al n ua Economy of Ho Chi Minh City I have to conduct research for my thesis with the topic of n va "Impact of rewards management system on employee’s job performance with the fu mediating role of work motivation: A study in companies in Ho Chi Minh City" The aim ll of the study is to determine whether four factors of rewards: pay, benefits, promotion and m oi recognition have an impact on employee’s job performance through work motivation at nh Please be assured that your response will be treated as confidential z z Yours sincerely k jm ht vb Thank you for your kind co-operation n y te re th o 22 –30 years o 31 – 40 years va Age n o Single o Married a Lu Marital Status om o Male o Female l.c Gender gm BIOGRAPHICAL INFORMATION P a g e | 72 t to o 41 – 50 years ng Education hi ep o High school o University o Posted graduated w n lo Job Classification ad Staff Specialist Manager/Leader Other ju y th yi o o o o pl ua al What is your company that you are working for? n At present, which department that you are belonging to? va How long have you been employed at this company? n ll oi m at nh Less than year year – years years – years years – 10 years > 10 years fu o o o o o z z QUESTIONNAIRE vb jm ht Please think about the work you and express the degree of your agreement with statements given below (by circling the number): k Not sure Agree gm Strongly disagree Disagree Strongly agree om l.c n a Lu n va y te re th P a g e | 73 t to ng 5 The basis of payment, for example overtime payment, is reasonable 5 The benefits we receive are as good as most other organizations offer 5 There are benefits we have which we should have 1 2 3 4 5 5 5 hi Pay factor My salary is satisfactory in relation to what I I earn the same as or more that other people in a similar job ep w n lo Salary increases are decided on a fair manner ad ju y th Benefits I am satisfied with the benefits I receive yi pl al n ua The benefit package we have is equitable n va ll fu Promotion oi m I will be promoted within the next two years at nh 10 Everyone has an equal chance to be promoted 11 Staffs are promoted in a fair and honest way z z Recognition vb 14 I get credit for what I 15 I am told that I am making progress 2 1 2 3 18 I am satisfied with the amount of free time activity that my employer arranges 1 k jm 5 5 2 3 4 5 an Lu 4 om l.c gm 19 I get enough feedback from my employer ht Motivation 16 My employer encourages me to work 17 I am satisfied with my salary ey Job performance 20 I believe I am an effective employee 21 I am happy with the quality of my work output t re n va 12 I am praised regularly for my work 13 I receive constructive criticism about my work P a g e | 74 t to 22 Accomplishes tasks efficiently Able to complete tasks quicker as the employee gains experience ng hi ep Questionnaire in Vietnamese w BẢNG KHẢO SÁT n lo ad TÁC ĐỘNG CỦA HỆ THỐNG QUẢN LÝ THƯỞNG LÊN HIỆU SUẤT CÔNG y th VIỆC CỦA NHÂN VIÊN VỚI VAI TRÒ TRUNG GIAN CỦA ĐỘNG CƠ LÀM VIỆC: ju Một so sánh lĩnh vực công nghệ cao cơng nghệ thấp thành phố Hồ Chí yi pl Minh n ua al Chào anh/chị, va n Tôi q trình hồn thành luận văn tốt nghiệp thạc sĩ viện ISB, trường đại học ll fu Kinh tế, thành phố Hồ Chí Minh Chủ đề nghiên cứu "TÁC ĐỘNG CỦA HỆ oi m THỐNG QUẢN LÝ THƯỞNG LÊN HIỆU SUẤT CÔNG VIỆC CỦA NHÂN VIÊN VỚI at nh VAI TRÒ TRUNG GIAN CỦA ĐỘNG CƠ LÀM VIỆC: Nghiên cứu lĩnh vực công z nghệ cao công nghệ thấp thành phố Hồ Chí Minh" với mục tiêu nhằm xác định liệu z bốn nhân tố thưởng: việc chi trả, chế độ đãi ngộ, thăng tiến công nhận lực có vb n ey t re o Độc thân o Kết va Tình trạng nhân an Lu o Nam o Nữ om Giới tính l.c THÔNG TIN CÁ NHÂN gm Xin cảm ơn hợp tác anh/ chị k Hãy yên tâm phản hồi anh/chị giữ bí mật jm ht tác động đến hiệu suất công việc nhân viên thông qua động lực làm việc hay không P a g e | 75 Tuổi t to ng hi o 22 –30 tuổi o 31 – 40 tuổi o 41 – 50 tuổi ep Trình độ học vấn w o Trung học phổ thông o Đại học o Sau đại học n lo ad Nhân viên Chuyên gia Giám đốc Thứ ký/ hành Khác:…………………………… ju yi pl n ua al o o o o o y th Nghề nghiệp ll fu m o Công nghệ cao o Công nghệ thấp ( sản xuất, ) n va Anh/chị làm việc lĩnh vực nào? oi Công ty anh/chị làm việc? nh at Hiện tại, anh/chị làm việc phận nào? z vb < năm – năm – 10 năm 11 – 15 năm 16 – 20 năm > 21 năm k jm ht om l.c gm o o o o o o z Anh/chị làm việc công ty bao lâu? BẢNG CÂU HỎI an Lu Anh/chị vui lịng suy nghĩ cơng việc cho biết mức độ đồng ý với n va câu phát biểu bênh (bằng cách khoanh trịn số) Đồng ý Hồn tồn đồng ý Khơng ey Khơng đồng ý t re Hồn tồn khơng đồng ý P a g e | 76 Nhân tố chi trả t to ng hi ep 23 Lương thoả đáng so với tơi làm 24 Tơi kiếm hay nhiều người khác công việc tương tự 25 Tiền làm ngồi tốn hợp lý 26 Tăng lương định cách công 5 1 2 3 4 5 w Chế độ đãi ngộ n 5 5 1 2 3 4 5 5 vb 2 3 4 5 4 5 ad at lo 27 Tôi thoả mãn với chế độ đãi ngộ mà nhận 28 Chế độ đãi ngộ nhận tốt hầu hết tổ chức khác cung cấp 29 Chúng tơi có chế độ đãi ngộ hợp lý 30 Chúng nhận đãi ngộ mà chúng tơi nên có ju y th yi pl ua al n Sự thăng tiến 31 Tôi thăng tiến hai năm tới 32 Mọi người có hội thăng tiến 33 Nhân viên thăng tiến cách công chân thực n va ll fu oi m nh Sự công nhận lực z z k jm 1 ht 2 3 4 5 om l.c 1 an Lu gm 5 n va ey t re 34 Tôi thường xuyên khen cho công việc 35 Tơi nhận lời phê bình mang tính xây dựng cơng việc 36 Tơi cơng nhận cho tơi làm 37 Tôi cho tiến Động lực làm việc 38 Cơng ty khuyến khích tơi làm việc 39 Tơi thoả mãn với mức lương 40 Tôi thoả mãn với hoạt động rảnh rỗi mà công ty xếp 41 Tôi nhận đánh giá từ ơng chủ Hiệu suất cơng việc 42 Tôi tin tưởng nhân viên làm việc hiệu 43 Tơi hài lịng với chất lượng cơng việc tơi 44 Tơi hịan thành cơng việc cách hiệu hồnh thành nhanh nhân viên có kinh nghiệm P a g e | 77 t to ng hi ep w n lo ad ju y th yi pl n ua al n va ll fu oi m at nh z z k jm ht vb om l.c gm an Lu n va ey t re