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t to ng MINISTRY OF EDUCATION AND TRAINING hi UNIVERSITY OF ECONOMICS HOCHIMINH CITY ep w n lo ad ju y th yi pl n ua al n va THE IMPACT OF HUMAN RESOURCES MANAGEMENT TO ll fu EMPLOYEE’S JOB SATISFACTION WITHIN INTERIOR oi m DESIGN AND CONSTRUCTION INDUSTRY IN VIETNAM at nh z MASTER OF BUSINESS ADMINISTRATION THESIS z k jm ht vb Major Code: 60.34.05 Supervisor: DR TRAN HA MINH QUAN Student: HOANG TU NGOC om l.c Business Administration gm Major: n a Lu n va y te re th Ho Chi Minh City – 2012 COMMITMENT t to ng hi ep My name is Hoang Tu Ngoc, author of this MBA thesis I would guarantee that this is my own research and has not been published in any previous studies w n lo I am fully responsible for above commitment ad ju y th Student yi pl ua al Hoang Tu Ngoc n Major: Business Administration n va Major Code: 60.34.05 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 ACKNOWLEDGEMENT t to ng I would like to express my heartfelt gratitude and deepest appreciation to my research hi ep supervisor, Dr Tran Ha Minh Quan for his intensive support, valuable suggestions, guidance, and encouragement during the course of my study w n I would like to thank many of my colleagues at TTT and friends from other companies in lo ad interior design and construction area who helped me during the data collection stage y th I would like to express my sincere gratitude to all of my tutors at Faculty of Business ju Administration and Postgraduate Faculty, University of Economics Ho Chi Minh City for yi their teaching and guidance during my MBA course pl ua al I would like to specially express my thanks to all of my classmates, my friends from for their support and encouragement n n va fu ll Hoang Tu Ngoc m oi Ho Chi Minh City, May 2012 at nh z z k jm ht vb om l.c gm n a Lu n va y te re th t to ABSTRACT ng hi ep In development of business, human resources management is understood as employees who are working in company and they play an important part of organization It is safe w n to say that the impact of human resource management is a crucial influence on the job lo ad satisfaction of employees and thus affects their performance during working period The ju y th research on these effects is essential for every business yi pl Based on the model study of Petrescu & Simmons (2008) regarding the impact of human ua al resources management to the job satisfaction of employees, the aim of this research is to n explore the practical impact of human resource management to the job satisfaction of n va employees in interior designer and construction industry in Vietnam Following the result of oi m resources management ll fu this research, companies in industry are able to improve the effectiveness of the human nh at Keywords: human resource management, employee’s job satisfaction, teamwork, z supervision, recruitment and selection, training and learning, employee involvement, z k jm ht vb payment om l.c gm n a Lu n va y te re th t to LIST OF FIGURES: ng hi ep Figure 1: w The matrix Diagram of the organizational structure of TTT Corporation – page n lo Figure 2: ad ju Figure 3: y th The difference between Personnel Management and Human Resource management – page 12 yi pl One other point of comparison between Personnel Management and Human Resource Management – n ua Figure 4: al page 13 va n The impact of human resource management to the job satisfaction of employees in interior design oi m at nh Stages of research – page 24 ll Figure 5: fu and construction industry – page 21 z z k jm ht vb om l.c gm n a Lu n va y te re th t to Contents ng hi CHAPTER | INTRODUCTION ep 1.1 Reason for choosing the research 1.2 Interior design and construction industry in Vietnam within the research topic w General information 1.2.2 Selection of featured companies to study n 1.2.1 lo ad 1.2.3 y th 1.2.4 Organizational chart in interior design and construction company The work of human resources management ju yi 1.2.5 The particularities of the interior design and construction industry and its influence on Human resources management Research purposes 1.4 The scope and subject of study ua al 1.4.1 Scope of study 1.4.2 Subjects of study n n va 1.5 The significance of research 1.6 Research Methods 1.7 Research structure ll fu oi m CHAPTER | LITERATURE REVIEW 10 nh 2.1 The theory of human resources 10 2.2 The theory of human resource management 10 at z z 2.2.1 Definition 10 2.2.2 The difference between Personnel management and Human resource management 11 2.2.3 Characteristic of human resource management 13 2.2.4 The model of human resource management 13 k jm ht vb gm 2.3 Analysis on employee’s job satisfaction 19 2.4 Research model 20 2.5 Summary of Chapter 22 om l.c CHAPTER | METHODOLOGY 23 Research Methods 23 n 3.1 a Lu pl 1.3 Preliminary study 23 3.1.2 Formal research 23 3.2.2 Exploratory factor analysis EFA 24 3.2.3 Regression analysis and ANOVA analysis 24 th Inspection by the scale factor Croncbach Alpha 24 y 3.2.1 te re Method of data processing 24 n 3.2 va 3.1.1 t to 3.3 Methodology 25 ng hi ep Surveyor 25 3.3.2 Method of surveying 25 3.3.3 Size and method of sample choosing 25 Scale adjustment 26 3.4.1 Process of scale adjustment 26 3.4.2 Qualitative research 26 3.4.3 Quantitative research 26 w 3.4 n 3.3.1 lo ad pl Summary of Chapter 30 al CHAPTER | RESULT OF RESEARCH 31 ua Scale for job satisfaction of employees 30 yi 3.5 Scale of human resource management in interior design and construction industry 27 ju 3.4.5 y th 3.4.4 Sample description: 31 4.2 Preliminary evaluation scale with Cronbach Alpha 32 n 4.1 n va Testing the reliability of the independent variable 32 4.2.2 Testing the reliability of the dependent variable 36 ll m Scale testing by using Exploratory Factor Analysis (EFA) 37 oi 4.3 fu 4.2.1 Factor analysis for Independent variable 37 4.3.2 Factor analysis Dependent variable 40 at z 4.4 nh 4.3.1 Regression Analysis 41 z 4.5.1 By Gender 46 4.5.2 By Age 48 4.5.3 By Years of experience 49 4.5.4 By Education level 50 k l.c gm 4.6 Results 51 4.7 Summary of chapter 53 om a Lu jm ht vb 4.5 The results of comparison of human resources management based on characteristics of study components 46 CHAPTER | CONCLUSION AND SUGGESTION 55 n Introduction 55 5.2 The significance of the study 56 5.3 Proposal for solution of human resource management practices 56 Solution for Training 56 5.3.3 Solution for Supervision 57 MBA Thesis – Hoang Tu Ngoc th 5.3.2 y Solution for Payment 56 te re 5.3.1 n va 5.1 t to 5.4 ng hi ep 5.4.1 Limitations 57 5.4.2 Recommendation for further research 57 REFERENCES 58 Vietnamese sources 58 English sources 58 w 6.1 n Limitations and Recommendation for further research 57 APPENDIX | CONTENT OF GROUP DISCUSSION 62 ad lo 6.2 APPENDIX | QUESTIONARES 65 APPENDIX | VARIABLES AND SYMBOLS 68 10 APPENDIX | CRONBACH ALPHA ANALYSIS 70 11 APPENDIX | EXPLORATORY FACTOR ANALYSIS (EFA) 77 12 APPENDIX | LINEAR REGRESSION ANALYSIS 84 13 APPENDIX | ABBREVIATION, TERMINOLOGY AND LIST OF COMPANIES 86 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 MBA Thesis – Hoang Tu Ngoc t to ng CHAPTER | INTRODUCTION hi ep Reason for choosing the research 1.1 w n Human resources management has always been considered as one of the most important lo ad department amongst resources of a company The quality of human resources plays a key y th role to the success or failure of a business, particularly in the context of the open ju economy in Vietnam and global competition nowadays yi pl During last consecutive years, Vietnam’s economy has been growing with a rapid pace ua al and sustainable development In the late 1980s, when the renovation policies were n adopted, Vietnam market became attractive for foreign trade and investment, and private va economic activity were legal (Glewwe, 2002) Due to establishment of new companies in n ll fu Vietnam, demand for office space develops increasingly significant in Ho Chi Minh – the (1) oi m biggest city Following this growth, interior design and construction companies were (2) Working in human resource nh born to provide the high quality services in fit-out works at management of this industry for years, I would apply my experience into a formal z z research in order to prepare depth knowledge for further development vb ht Interior design and construction is a narrow specialization of construction area Scope of k jm services includes the final stage to complete the construction tasks inside a building gm There are two type of company which provides this service (a) One is specialized in designing only (b) Another one provides fully stages from interior architectural design to l.c build and complete fit-out works This research will study on type (b) – a larger om organization – which provides and focuses on high value contracts such as high class n a Lu office, hotel or resorts from stars standard n va In order to work in this industry, employees are required to have high level of skills in resources management, can provide employees chances to enhance their experiences and MBA Thesis – Hoang Tu Ngoc th their experience through practical working In many cases, when company, or human y interior design and construction field in Vietnam, therefore employees need to explore te re both aesthetic and technical However, it can be seen the lacking of high education of t to performances in job, this matter has positive impact on employee’s job satisfaction It can ng hi be seen that human resources management is considered as a connection between ep employees and company and in charge of employee’s job satisfaction w Without a well-organized system, most of interior design and construction companies are n lo only running to meet the immediate needs of market, instead of working with a stable ad development In fact, the practices of human resources management focus on solving y th those daily tasks rather than planning for a long-term strategy That leads to the need of ju yi preparing a specific research on human resource management, which based on an pl appropriate methodology ua al Starting with the research question “The impact of human resource management to the n n va employee’s job satisfaction within interior design and construction industry in Vietnam”, this study attempts to inform and clarify on what and how factors could create satisfaction fu ll in current job for employers through the tool of human resource management oi m nh Interior design and construction industry in Vietnam within the research topic at 1.2 z z 1.2.1 General information vb jm ht As discussed above, this research focuses on interior design and construction industry in Vietnam within large project group only such as high-class office (3) and hotel, resort, k gm which are invested by large companies and organizations This group has the highest fund in the market segment nowadays and is known as a potential market for interior design l.c om and construction companies The scope of services provides: architecture interior design, a Lu mechanical and electrical (M&E) engineering building services, supply and installation of n furniture, Fit-out works va n It can be said this is a difficult area for companies that want to provide these services introduce, and analyze a group of leading companies that represent for Vietnam MBA Thesis – Hoang Tu Ngoc th management, and construction management and so on This research will select, y struggle is to have the high quality of human resources in design works, project te re because it requires a huge investments, especially furniture manufacturing Also next 73 t to Total 205 100.0 ng hi a Listwise deletion based on all variables in the procedure ep w n lo Item Statistics ad Mean Std Deviation N ju y th 97167 205 yi sel1 3.4439 95218 205 pl sel2 3.1854 al 92147 205 sel4 3.3366 1.03321 205 sel5 3.1122 99119 205 n ua sel3 3.5122 n va ll fu Variance Std Deviation N of Items 14.910 3.86131 at nh 16.5902 oi Mean m Scale Statistics z z jm ht vb Table 4.5 Scale: Training and Learning k 887 gm Cronbach's Alpha N of Items om l.c a Lu Case Processing Summary % 205 100.0 0 205 100.0 n N a Listwise deletion based on all variables in the procedure MBA Thesis – Hoang Tu Ngoc th Total y Excluded(a) te re Valid n va Cases 74 t to Item Statistics ng hi Mean Std Deviation N ep 99852 205 3.2439 89060 205 3.3805 96081 205 tra4 1.04746 205 tra5 3.1707 98773 205 tra6 3.4341 1.00577 205 w 3.4049 y th tra1 n lo tra2 ad tra3 3.3707 ju yi pl ua al n Scale Statistics va Variance Std Deviation N of Items n Mean 4.71699 ll 22.250 fu 20.0049 oi m at nh Table 4.6 Scale: Payment Cronbach's Alpha N of Items z z 839 jm ht vb Case Processing Summary 205 100.0 n a Lu Total 100.0 om Excluded(a) 205 l.c Valid % gm Cases k N n va a Listwise deletion based on all variables in the procedure te re Std Deviation th Mean y Item Statistics N MBA Thesis – Hoang Tu Ngoc 75 t to ng hi ep pay1 3.2927 88128 205 pay2 3.3463 78718 205 pay3 3.2537 95694 205 w n lo Scale Statistics ad Mean Variance Std Deviation N of Items y th 9.8927 5.243 2.28983 ju yi pl Table 4.7 Scale: Employee’s job satisfaction al ua Cronbach's Alpha N of Items n 896 n va ll fu % at nh N oi m Case Processing Summary 0 205 100.0 k jm a Listwise deletion based on all variables in the procedure ht Total 100.0 vb Excluded(a) 205 z Valid z Cases Mean Std Deviation N om l.c gm Item Statistics sat4 3.1805 91908 205 sat5 3.1659 91919 205 th 89893 205 y sat3 3.1024 te re 90294 205 n sat2 3.1805 va 92414 205 n a Lu sat1 3.2293 MBA Thesis – Hoang Tu Ngoc 76 t to ng hi Scale Statistics ep Mean Variance Std Deviation N of Items 14.730 w 15.8585 3.83795 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 MBA Thesis – Hoang Tu Ngoc 77 t to ng 11 APPENDIX | EXPLORATORY FACTOR ANALYSIS (EFA) hi ep Table 5.1.Scale: Teamwork w n lo KMO and Bartlett's Test ad Kaiser-Meyer-Olkin Measure of Sampling Adequacy y th Bartlett's Test of Sphericity Approx Chi-Square 842 3084.082 ju yi pl df 253 Sig .000 n ua al fu Extraction ll Initial n va Communalities oi m tw1 1.000 nh tw2 1.000 636 tw3 1.000 706 sup1 1.000 714 sup2 1.000 813 sup3 1.000 814 ei1 1.000 834 ei2 1.000 737 ei3 1.000 799 sel1 1.000 748 sel2 1.000 705 sel3 1.000 682 sel4 1.000 701 sel5 1.000 605 719 at z z k jm ht vb om l.c gm n a Lu n va y te re th MBA Thesis – Hoang Tu Ngoc 78 t to ng hi ep 1.000 832 tra2 1.000 577 tra3 1.000 697 1.000 704 1.000 649 1.000 828 1.000 826 1.000 681 1.000 717 tra1 w tra4 n lo tra5 ad tra6 ju y th pay1 yi pay2 pl pay3 al n ua Extraction Method: Principal Component Analysis n va fu ll Total Variance Explained Extraction Sums of Rotation Sums of Squared Loadings Squared Loadings oi Initial Eigenvalues m Compon % of l Varian Cumulati Tota % of Cumulati Tota % of Cumulati Varian ve % z Tota at nh ent l Varian 38.981 2.19 9.552 7.184 55.718 1.65 48.533 3.15 7.184 55.718 2.64 13.719 30.417 11.510 41.927 n a Lu 1.65 16.698 om 9.552 16.698 l.c 48.533 2.19 38.981 3.84 gm 38.981 k 38.981 8.96 jm 8.96 ce ht ce l vb ce ve % z ve % 1.50 6.535 1.39 6.054 68.306 1.39 62.252 2.43 10.584 52.511 10.521 63.032 9.684 72.716 6.054 68.306 2.42 y te re 6.535 n 62.252 1.50 va 1.01 4.409 72.716 1.01 4.409 72.716 2.22 th MBA Thesis – Hoang Tu Ngoc 79 t to 4 hi ep 3.447 76.163 650 2.827 78.990 608 2.642 81.632 560 2.433 84.065 512 2.226 86.291 12 1.966 88.257 13 446 1.940 90.198 14 375 1.630 91.828 15 319 1.388 93.215 16 310 1.348 94.563 17 283 1.232 95.795 18 244 1.060 96.856 19 215 934 97.789 20 195 848 98.638 21 124 538 99.176 22 117 510 99.687 23 072 313 100.000 793 y th ng w n lo 10 ad 11 452 ju yi pl n ua al n va ll fu oi m at nh z z k jm ht vb Extraction Method: Principal Component Analysis gm Component Matrix(a) pay1 677 sel2 661 ei2 659 -.543 th 684 -.506 y sup2 te re 686 n ei3 va 719 n tra5 a Lu om l.c Component MBA Thesis – Hoang Tu Ngoc 80 t to ng hi ep sup3 659 tra1 658 pay2 658 656 w tra4 n lo tra6 -.534 -.519 ad pay3 654 649 554 sel3 533 tw2 526 515 tw3 588 z 619 z tw1 at nh sel1 -.562 oi 579 m sup1 ll 600 fu tra3 -.539 n 607 va ei1 n 630 ua sel4 al 638 pl tra2 yi 644 ju y th sel5 jm ht vb Extraction Method: Principal Component Analysis a components extracted k gm Rotated Component Matrix (a) tra5 649 tra3 639 tra2 624 th 669 y tra4 te re 864 n tra1 va 872 n tra6 a Lu om l.c Component MBA Thesis – Hoang Tu Ngoc 81 t to ng hi ep sel1 806 sel4 762 sel3 760 732 w sel2 n 539 lo sel5 818 y th sup2 ad sup3 798 ju 760 yi sup1 850 pl ei1 al 778 ua ei3 n ei2 727 va 810 n pay1 fu 737 ll pay3 m 693 oi pay2 818 tw3 at nh tw1 tw2 713 z 789 z vb Rotation Method: Varimax with Kaiser Normalization k jm ht Extraction Method: Principal Component Analysis Component Transformation Matrix 523 441 388 374 392 298 -.690 571 052 -.236 226 297 241 103 110 -.244 300 152 -.120 825 345 -.165 -.142 -.768 231 281 th y -.143 -.501 te re 350 -.811 n va n a Lu Component om l.c gm a Rotation converged in iterations .458 185 398 -.424 -.715 135 MBA Thesis – Hoang Tu Ngoc 82 t to Extraction Method: Principal Component Analysis ng hi Rotation Method: Varimax with Kaiser Normalization ep w n lo Table 5.1.Scale: Employee’s job satisfaction ad ju y th KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy yi Approx Chi-Square pl Bartlett's Test of Sphericity 798 673.369 10 Sig .000 n ua al df n va fu ll Communalities m Initial Extraction oi at nh 1.000 664 sat4 1.000 733 sat5 1.000 794 gm sat3 k 645 jm 1.000 ht sat2 vb 701 z 1.000 z sat1 Extraction Method: Principal Component Analysis om l.c a Lu Total Variance Explained n Initial Eigenvalues Extraction Sums of Squared Loadings 3.538 70.756 70.756 3.538 667 13.344 84.100 398 7.956 92.055 70.756 70.756 y te re Total % of Variance Cumulative % Total % of Variance Cumulative % n va Component th MBA Thesis – Hoang Tu Ngoc 83 t to ng hi 241 4.814 96.870 157 3.130 100.000 ep Extraction Method: Principal Component Analysis w n lo Component Matrix (a) ad Component y th ju 837 ua 815 n sat3 al sat1 856 pl sat4 891 yi sat5 va 803 n sat2 fu ll Extraction Method: Principal Component Analysis oi m a components extracted z z Dummy category at nh Rotated Component Matrix(a) vb k jm ht a Only one component was extracted The solution cannot be rotated om l.c gm n a Lu n va y te re th MBA Thesis – Hoang Tu Ngoc 84 t to ng 12 APPENDIX | LINEAR REGRESSION ANALYSIS hi ep Variables Entered/Removed(b) Variables Entered w Model Variables n Removed lo ad Method M_EI, M_TW, M_SUP, M_SEL, M_TRA, Enter y th M_PAY(a) ju yi a All requested variables entered pl b Dependent Variable: M_SAT n ua al R Square Adjusted R Square 466 Std Error of the Estimate 450 ll 683(a) fu R n Model va Model Summary 56936 m oi a Predictors: (Constant), M_EI, M_TW, M_SUP, M_SEL, M_TRA, M_PAY 64.186 198 9.335 28.797 000(a) 324 k Residual gm Total Sig jm 56.010 F ht Regression Mean Square vb df z Sum of Squares z Model at nh ANOVA(b) 120.196 204 l.c a Predictors: (Constant), M_EI, M_TW, M_SUP, M_SEL, M_TRA, M_PAY om b Dependent Variable: M_SAT a Lu Coefficients Coefficients (Constant) 345 237 Collinearity Statistics Beta Tolerance VIF 1.452 148 MBA Thesis – Hoang Tu Ngoc th Std Error Sig y B t te re Standardized n Unstandardized va Model n Coefficients (a) 85 t to ng hi ep w n 038 063 036 592 554 735 1.360 M_SUP 162 061 176 2.655 009 614 1.630 M_SEL 070 067 071 1.049 295 593 1.686 M_TRA 259 067 265 3.844 000 568 1.762 M_PAY 271 072 270 3.745 000 520 1.922 056 063 061 584 1.712 lo M_TW ad M_EI 896 371 y th a Dependent Variable: M_SAT ju yi pl Co linearity Diagnostics(a) on n on n el Eige Conditi ua Dimensi al Mod M_T M_S W UP M_SE M_TR M_PA L A Y M_ EI fu ll 00 00 00 00 00 00 04 04 10 05 36 58 00 02 08 11 46 04 07 00 05 28 15 02 21 59 23 041 12.889 05 16 037 13.674 05 10 030 15.161 08 19 21 025 16.533 04 03 03 62 022 17.593 67 38 02 07 01 018 19.373 11 15 12 22 z jm at nh 00 vb 1.000 oi 6.82 m nt) n Index e (Consta va valu Variance Proportions z ht k om l.c gm a Dependent Variable: M_SAT 20 n a Lu n va y te re th MBA Thesis – Hoang Tu Ngoc 86 t to ng 13 APPENDIX | ABBREVIATION, TERMINOLOGY AND LIST OF hi COMPANIES ep w n (1) Interior design is a discipline that looks after designing all of the interiors of a space lo ad This can include things like flooring, windows, doors, walls, lighting, furniture, and y th miscellaneous design pieces The goal of interior design is generally to make a space ju that is both comfortable and aesthetically pleasing, often catered specifically to the yi needs and likes of the person hiring the interior designer pl ua al (2) Fit-out works refers to the process or action of installing building infill n va n (3) High-class office, or first class, or superior is of very good quality of working space ll fu oi nh Website: www.aacorporation.com m (4) AA Corporation at Head Office: 15 Nguyen Duy Hieu Street, Thao Dien Ward, District 2, HCMC z z Tel: (84 8) 3744 2728 - Fax: (84.8) 3744 2729 k jm Website: www.tttcompany.com ht vb (5) TTT Corporation gm Head Office: 36 Ly Tu Trong, Ben Nghe Ward, District 1, HCMC, Vietnam om l.c Tel: (84 8) 3829 5556 - Fax: (84 8) 3829 7232 a Lu (6) CBRE (CB Richard Ellis) is the world’s largest commercial real estate services firm, n offers strategic advice and execution for property sales and leasing; corporate va n services; property, facilities and project management; mortgage banking; appraisal y consulting te re and valuation; development services; investment management; and research and th Website: www.cbrevietnam.com MBA Thesis – Hoang Tu Ngoc 87 t to (7) Happy Land ng hi Website: www.happylanddc.com.vn ep Home office: 16 Pasteur, District 1, HCMC, Vietnam w n (8) Saigon Xanh lo ad Website: www.saigonxanh.com y th Home office: 193/25 Nam Ky Khoi Nghia, Ward 7, District 3, HCMC, Vietnam ju yi pl (9) AAH al ua Website: www.aahcorporation.com n Home office: 178D Hai Ba Trung, Da Kao ward, District 1, HCMC, Vietnam n va SPSS (Statistical Package for the Social Sciences) software developed by IBM, ll fu (10) oi m is predictive analytics software, encapsulates advanced mathematical and statistical nh expertise to extract predictive knowledge that when deployed into existing processes at makes them adaptive to improve outcomes z z k jm ht vb om l.c gm n a Lu n va y te re th MBA Thesis – Hoang Tu Ngoc
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