(Luận văn) factors affecting job resignation intention of life insurance agents in dong nai

MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HOCHIMINH CITY t to ng hi ep w n lo ad y th DUONG THANH LONG ju yi pl ua al n FACTORS AFFECTING JOB RESIGNATION INTENTION OF LIFE INSURANCE AGENTS IN DONG NAI n va eMBA K18 ll oi m : fu Class 60.34.05 at nh Ology code : z z k jm ht vb MASTER THESIS Dr TRAN HA MINH QUAN om : l.c gm Instructor an Lu n va ey t re HO CHI MINH CITY 2012 t to ACKNOWLEDGEMENTS ng hi ep First of all, I would like to thank my advisor Dr Tran Ha Minh Quan his w for enthusiastic and excellent supervision, encouragement and n lo academic guidance to me during this research He was always there to ad ju y th listen to me and to give advice as well as reference sources of modern yi thesis platform He taught me how to ask questions and express ideas He different ways to approach a research problem and ua al me pl showed n encouraged me to be persistent to accomplish any goal va n Second, my wholehearted appreciation is also more importantly ll fu oi m dedicated to my family, especially my wife, she was also my MBA at nh classmate, her emotional and schedule supports have greatly contributed z to completing this academic research and study And then I would like to z ht vb give my heartfelt gratefulness to Mr Tam and all my friends in Manulife k jm Dongnai, who helped me much in completing the questionaire gm Finally, I would like to thank HCMC University of Economics for l.c giving me the good environment to study and chance for improving my om an Lu knowledge n va ey t re i t to TABLE OF CONTENTS ng hi ep LIST OF TABLES v LIST OF FIGURES vi w n CHAPTER 1: INTRODUCTION lo ad 1.1 Thesis statement ju y th 1.2 Research objective 1.3 Object and scope of research yi pl 1.4 Significance of Study ua al 1.5 Research framework n CHAPTER 2: LITERATURE REVIEW va n 2.1 General view on life insurance and insurance agents ll fu 2.1.1 Definition of life insurance oi m 2.1.2 Insurance agents at nh 2.1.3 Job features and requirements of life insurance agents 2.1.4 Some basic reasons make insurance agent resign from work z z 2.2 General view of theories related to the job-resignation intention vb jm ht 2.2.1 Maslow’s hierarchy of needs (1943) 2.2.2 Herzberg’s Two Factor Theory (1959) 11 k gm 2.2.3 Adams’ Equity Theory (1963) 12 l.c 2.2.4 Alderfer’s ERG theory (1969) 13 om 2.2.5 Goal setting and task motivation of Edwin Locke (1968) and Kenneth A an Lu Kovach (1999) 14 2.3 Studies related to the thesis 15 ii ey 2.3.3 Study of Vo Quoc Hung and Cao Hao Thi (2009), 17 t re 2.3.2 Study of Đao Minh Tuyen (2008), 17 n va 2.3.1 Study of Nguyen Quang Thu (2005) 15 t to 2.3.4 Study of Vu Mong Thuy My (2009) 18 ng 2.3.5 Study of Nguyen Bich Tram (2012), 18 hi ep CHAPTER 3: METHODOLOGY 20 3.1 Studying of affecting factors 21 w 3.1.1 Objectives of primary research 21 n lo 3.1.2 Deployment methods for primary research 21 ad 3.2 Building of research’s models, hypothesis and official variables 23 y th ju 3.2.1 Research’s models 23 yi 3.2.2 Definition of variables 24 pl ua al 3.2.3 Research hypothesis 31 3.3 Research sample 34 n n va 3.3.1 Sample selection method 34 fu 3.3.2 Sample size 35 ll 3.4 Develop scale and design questionnaire 36 m oi 3.4.1 Develop scale 36 nh at 3.4.2 Design questionnaire 36 z 3.5 Collect data 38 z ht vb 3.6 Analyze and process data by statistic tools 38 jm 3.6.1 Accredit accuracy of scale 39 k 3.6.2 Exploratory Factor Analysis 39 gm 3.6.3.Linear regression analysis and accredit research assumptions 40 l.c CHAPTER 4: DATA ANALYSIS AND INTERPRETATION 42 om 4.1 Sample description 42 an Lu 4.2 Analysis of scale reliability 46 4.3.1 Analysis of discovered factors for variables 48 iii ey 4.3.3 Adjustment of study models and hypothesis 50 t re 4.3.2 Analysis of discovered factors for the dependent variables 49 n va 4.3 Analysis of discovered factors and adjustment of the study models 48 t to 4.4 Linear regression analysis and hypothesis testing 52 ng 4.4.1 Linear regression analysis 52 hi ep 4.4.2 Hypothesis testing 57 CHAPTER 5: CONCLUSIONS AND RECOMMENDATION 60 w 5.1 Research Conclusion 60 n lo 5.2 Research Recommendation 64 ad 5.3 Research Limitation 65 y th ju 5.4 Further Research 66 yi REFERENCES vii pl ua al APPENDIX 1: QUESTIONNAIRE ON FACTORS OF PRODUCTIONS FOR JOBRESIGNATION INTENTION x n 3: TEMPORARY RESEARCH RESULTS fu APPENDIX n va APPENDIX 2: OUTLINE FOR GROUP DISCUSSION xiii ON VARIABLES ll AFFECTING JOB-RESIGNATION INTENTION .xxi m oi APPENDIX 4: OFFICIAL QUESTIONNAIRE xxii nh at APPENDIX 5: FREQUENCY TABLE xxvi z APPENDIX 6: RELIABILITY ANALYSIS SCALE xxxiv z ht vb APPENDIX 7: EXPLORATORY FACTOR ANALYSIS xli jm APPENDIX 8: EXPLORATORY FACTOR ANALYSIS xliii k APPENDIX 9: RESIDUALS xlv gm APPENDIX 10: RESIDUALS CORRELATION AND COLLINEARITY li l.c APPENDIX 11: QUESTIONNAIRE ON FACTORS OF PRODUCTIONS FOR JOB- om RESIGNATION INTENTION IN VIETNAMESE LANGUAGE lii an Lu APPENDIX 12: GROUP DISCUSSION OUTLINE IN VIETNAMESE LANGUAGE APPENDIX 13: QUESTIONNAIRE INTERVIEW IN VIETNAMESE LANGUAGE ey iv t re .lxiii n va lv t to LIST OF TABLES ng hi ep Table 3.1: The summary table of factors affecting the job-resignation intention 21 Table 3.2: Definition of variables “working challenges” 25 w n Table 3.3: Variable definition “Relationship among colleagues” 25 lo ad Table 3.4: Variable definition “Binding to work” 26 ju y th Table 3.5: Variable definition “Income” 27 Table 3.6: Variable definition “Career development possibility” 28 yi pl Table 3.7: Variable definition “Imbalance between work and life” 28 al ua Table 3.8: Variable definition “Stable job and treatment policies” 29 n Table 3.9: Variable definition “the attention and support from senior managers” 30 va n Table 3.10: Variable definition “The attention and support from senior managers” 31 fu ll Table 3.11: Expected to sign the relationship with the dependent variable 32 m oi Table 4.1: Description of statistical values of the samples 43 at nh Table 4.2: The results of scale reliability calculation 46 Table 4.3: KMO and Bartlett's Test for the dependent variables 49 z z Table 4.4 Total Variance Explained for the dependent variables 49 vb jm ht Table 4.5: Component Matrixa for the dependent variables 50 Table 4.6: Summarized regression model 53 k gm Table 4.7: ANOVA Analysis 53 l.c Table 4.8: Regression coefficients of the model 54 om Table 4.9: Resul to sign the relationship with the dependent variable 56 an Lu Table 4.10: Testing of statistical hypothesis (β≠0) 57 n va ey t re v t to LIST OF FIGURES ng hi ep Figure 2.1: Maslow's Hierarchy of needs Pyramid Figure 3.1: Research process 20 w n Figure 3.2: The research’s model on job-resignation intention of insurance agents 24 lo ad Figure 4.1: Adjusted research model 51 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 vi t to CHAPTER 1: INTRODUCTION ng hi ep 1.1 Thesis statement w Vietnamese people today are usually not used to buying insurance The fastest n lo and most effective marketing ways of Vietnam life insurance sector are direct ad marketing and oral marketing This means that the life insurance companies owning a y th ju large system will have advantages in approaching customers and broadening market yi After more than 15 years of launching the life insurance market, the insurance pl ua al sector went into the situation that hundreds thousand insurance agents who had been employed for less than 12 months stopped working According to the statistic, up to n n va about 80% of life insurance agents close business within 12 first month of starting [15] ll fu The market of life insurance in Vietnam has so far always had demand of oi m recruitment of new agents to develop the business and replace the former ones Currently, the recruitment of insurance agents becomes extremely difficult not for nh at newly established companies in Vietnam but also for big brands like Prudential, AIA, z Manulife, Dai-Ichi Life Vietnam, AEC Life and Bao Viet z ht vb According to the marking based on the agent duration (for years) of the jm LIMRA research (under the International Research Organization LL Global), the k degree of maintaining in Vietnam is under 10%, meaning that among 100 agents in gm 2005, less than 10 agents continues working for the next years.[16] l.c The reality also shows that many life insurance agents have worked for om continuous months or six months but they could not get any insurance contracts This an Lu situation forced life insurance company to stop the agent contract and few agents n These above facts have place many questions to the Author: va opposed this decision because they no longer had interest in this job ey t re t to - Why for a highly potential life insurance market in Vietnam and for a job ng considered to bring a quite high income, the life circle of insurance agents is short as hi ep such? - What are the reasons for the job resignation of life insurance agents? What are w the impacts of these reasons? What are common features among agents in this n lo problem? ad - In Dong Nai, where the Author is living and working, how is the situation of y th ju agent’s resignation? yi - How to limit the job resignation intention of life agents? pl ua al From the above problems, the Author decided to choose the thesis “ Factors affecting job-resignation intention of life insurance agents in Dong Nai” for the n n va research ll fu oi m 1.2 Research objective at nh The research has been done with two main objectives: Firstly, determining and analyzing the factors affecting job-resignation intention z z of life insurance agents in Dong Nai vb minimize the resignation decisions of life insurance agents k jm ht Secondly, giving out some recommendations for insurance company to l.c gm 1.3 Object and scope of research om - Research objects are factors affecting the job-resignation intention of life an Lu insurance agents n - Time of research is from early 2012 to the end of the second quarter 2012 va - Research scope is restricted to the insurance agents in Dong Nai province ey t re t to 1.4 Significance of Study ng So far, there is no deep and thorough researches on job-resignation intention of hi ep life insurance agents, so the Author hope that the thesis will give some significances - The thesis will contribute to explaining the job-resignation of insurance agents w n in Dong Nai over this time, it also explain the phenomena of “too short experience lo ad time” of about 80% of the newly recruited agents y th - Therefore, the thesis contributes to finding solutions for minimizing the job ju resignation of agents, then contributing to supporting to insurance enterprise to expand yi pl the market, business areas, customers in a stable way through developing and ua al maintaining the effective performance of agents n - The thesis is also the useful reference for insurance business enterprises, va researchers wishing to learn about the insurance sector, agent development as well as n ll fu study on behavior science in general oi m 1.5 Research framework nh Based on the researched problem, objectives and research questions, the at z structure of the thesis “Factors affecting job-resignation intention of life insurance z vb agents in Dong Nai” will be divided into chapters as followed: jm ht Chapter 1: Introduction k Chapter 2: Literature review Chapter 4: Data analysis and Interpretation om Chapter 5: Conclusions and Recommendation l.c gm Chapter 3: Methodology an Lu n va ey t re