Factors affecting employees’ job satisfaction at shopee ha noi 2020

NATIONAL ECONOMIC UNIVERSITY BUSINESS SCHOOL E-BBA PROGRAM FACTORS AFFECTING EMPLOYEES’ JOB SATISFACTION AT SHOPEE HA NOI Supervisor: Dr Dao Thi Thanh Lam Student: Ngo Minh Anh HANOI, 2020 ACKNOWLEDGEMENT First and foremost, I would like to send my sincere gratitude to Dr Dao Thi Thanh Lam, whose valuable advises and enthusiastic supervisor has guided me through the course of making this thesis Secondly, I express my deep sense of thankfulness each and every professor of the E-BBA Program, especially Mrs Nguyen Thu Hang, whose encouraging guidance has helped me catching up with the due dates Thirdly, I would like to thank Mrs Nguyen Lan Anh, the Manager of Business Development department of Shopee and Mr Duong Quang Tung, an employee of Seller Relation team of Shopee, as well as all the employees of the company, for spending time helping me with the data collection process Finally, to all my friends and family, thank you for always support me when there are hardships TABLE OF CONTENTS ABBREVIATIONS LIST OF TABLES LIST OF FIGURES EXECUTIVE SUMMARY .1 CHAPTER 1: INTRODUCTION 1.1 Rationale: .3 1.2 Research objectives 1.3 Research scope .4 1.4 Research questions: .4 1.5 Research structure CHAPTER 2: THEORETICAL BACKGROUND ON EMPLOYEES’ JOB SATISFACTION .5 2.1 Overview of job satisfaction 2.1.1 Definition of job satisfaction 2.1.2 Importance of job satisfaction 2.2 Review Satisfaction Theories 2.2.1 Maslow’s hierarchy of needs 2.2.2 Herzberg’s two-factor theory 2.2.3 V.Vroom's theory of expectations (1964) .10 2.3 Measurement of job satisfaction 10 2.4 Related research on job satisfaction 12 2.4.1 Research model of McKinsey & Company ( 2000 ) 12 2.4.2 Model of employees’ job satisfaction evaluation with organization at Lam Dong Post Office (2007) 12 2.4.3 Ten Job Related Factors 13 2.4.4 Job Characteristics Model .14 2.5 Proposed research model and hypothesis for employees’ job satisfaction: 14 2.5.1 Proposed research model 14 2.5.2 Hypothesis of research model .17 CHAPTER 3: RESEARCH METHODOLOGY 21 3.1 Research process 22 3.2 Methods of data collection 22 3.3 Methods of data analysis 23 CHAPTER 4: EMPLOYEES’ JOB SATISFACTION 25 IN SHOPEE .25 4.1 Introduction of Shopee 25 4.1.1 Background 25 4.1.2 Business model and organizational structure: 27 4.1.3 Performance results and market share 30 4.2 Analysis on Respondents’ profile .33 4.2.1 Employees’ distribution by gender .33 4.2.2 Employees’ distribution by age 33 4.2.3 Employees’ education background .34 4.2.4 Employees divided by working experience in the company 35 4.3 Analyzing job satisfaction in Shopee .36 4.3.1 Reliability Analysis 36 4.3.2 Exploratory Factors Analysis 39 4.3.3 Correlation Analysis .41 4.3.4 Regression Analysis 42 4.4 Current situation of employees’ job satisfaction in Shopee 46 4.4.1 Evaluation of Salaries and Benefits 47 4.4.2 Evaluation of Work Steadiness .48 4.4.3 Evaluation of Working Condition 48 4.4.4 Evaluation of Supervision .49 4.4.5 Evaluation of Policies and Rules 50 4.4.6 Evaluation of Independence at Work 51 4.5 Summary of findings 52 4.5.1 Strengths 53 4.5.1 Weaknesses and causes 54 CHAPTER 5: RECOMMENDATIONS FOR IMPROVING MPLOYEES' JOB SATISFACTION IN SHOPEE CO., LTD 55 5.1 Orientation of Shopee to develop job satisfaction of employees 55 5.2 Recommendations to improve job satisfaction of employees in Shopee 55 5.2.1 Develop reasonable policies, benefits and coherent compensation 55 5.2.2 Enhancing supervisors - subordinates relationship .56 5.2.3 Improve working conditions 57 5.2.4 Reconsidering the policies and rules 57 5.2.5 Promoting employees to make decisions 57 CONCLUSION 59 REFERENCES 60 APPENDICES 62 APPENDIX 66 QUESTIONNAIRE SURVEY – English Version 66 APPENDIX 70 IN-DEPTH INTERVIEWS 70 APPENDIX 71 ABBREVIATIONS IW: Independence at Work OC: Organizational Culture CR: Colleagues Relationship EFA: Explanatory Factors Analysis KMO: Kaiser – Meiyer – Olkin LS: Supervision PR: Policies and Rules PT: Training and Promotion SB: Salaries and Benefits WC: Working Condition WI: Work Itself WS: Work Steadiness LIST OF TABLES Table 1: Factors and descriptive variables in the employees’ job satisfaction model of Shopee 16 Table 2: Summary of hypotheses 20 Table 3: Employees’ gender distribution 33 Table 4: Employees’ age distribution 33 Table 5: Employees’ education background .34 Table 6: Employees’ working experience in Shopee 35 Table 7: Cronbach’s Alpha index of employees’ job satisfaction .37 Table 8: Cronbach’s Alpha and Corrected item-total correlation of factors influencing job satisfaction of employees 37 Table 9: Conditions of the Exploratory Factors Analysis 39 Table 10: KMO and Bartlett’s Test 39 Table 11: Communalities 40 Table 12: Rotated Component Matrixa 41 Table 13: Model Summary 42 Table 14: ANOVA 42 Table 15: Coefficients .43 Table 16: Research hypotheses conclusion .43 Table 17 : Employees’ perception on Salaries and Benefits .47 Table 18: Employees’ perception on Work Steadiness .48 Table 19 : Employees’ perception on Working Condition 49 Table 20 : Employees’ perception on Supervision 50 Table 21: Employees’ perception on Policies and Rules 51 Table 22: Employees’ perception on Independence at Work 51 LIST OF FIGURES Figure 1: Maslow’s Hierarchy of Needs .7 Figure 2: The meaning of Maslow tower in practice Figure 3: Herzberg’s Two-factor Theory Figure 4: Research model of McKinsey & Company, 2000 .12 Figure 5: Model of employees’ job satisfaction in Shopee .15 Figure 6: Research Process 22 Figure 7: Shopee’s logo .25 Figure 8: Departmental diagram of Shopee 28 Figure 9: Employees’ gender distribution 33 Figure 10: Employees’ age distribution 34 Figure 11: Employees’ education background 35 Figure 12: Employees’ working experience in Shopee 36 Figure 13: Means of factors in the model 47 Figure 14: Model of employees’ job satisfaction at Shopee .53 EXECUTIVE SUMMARY Shopee CO., LTD is“an e-commerce company providing online buying and selling services The company always strives to be the leading company in their field Through years of operation, the company has achieved many successes and significant”achievements One of the“important determinants of Shopee's performance is the strength of its office workers, because about 80% of its employees are them Therefore, the company must always deal with how to make employees happy with the job”in the best way For the research to reflect the exact reality of job satisfaction of Shopee employees, the author has taken implementation from Maslow's needs hierarchy, two-factor theory of Herzberg, the Foreman’s ten job-related factors , JDI, JSS, JDS model and McKinsey & Company model Shopee employees’ job satisfaction assessment model is built with ten elements: Work Steadiness, Working Conditions, Independence at Work, Supervision , Training and Promotion, Policies and Rules, Work Itself, Organizational Culture, Salaries and Benefits, Colleagues Relationship The main objectives of this study are: (1) To determine which dimensions can be used to measure employees’ job satisfaction, (2) To analyze the actual situation of job satisfaction of Shopee employees, (3) Give some suggestions to improve this situation To get the most accurate results for the goals, the author collected both primary and secondary data A survey designed by the author for 200 employees at Shopee In addition, there are also in-depth interviews with managers and employees to get an idea of current situations of job satisfaction at Shopee From the result of numerical analysis, four out of ten factors were removed from the model, including: Colleagues Relationships, Training and Promotion, Work Itself and Organizational Culture The remaining factors that affect the job satisfaction of Shopee employees are: - Salaries and benefits (Mean: 2.93, Beta: 0.487) has the strongest impact of all the factors - Work steadiness (Mean: 2.98, Beta: 0.194) is the second most important factor in the model - Working conditions (Mean: 3.09, Beta: 0.177) is the third factor on the scale - Supervision (Mean: 3.0, Beta: 0.168) is the fourth important factor - Policies and rules (Mean: 3.16, Beta: 0.135) is set fifth on the scale - Independence at work (Mean: 2.74, Beta: 0.125) is the last impact variable in the regression equation The current situation of the company shows that they are facing barriers that lead to employee dissatisfaction, which is the inconsistency remuneration policy, tight working hours and discord among supervisors and subordinates, etc Combined with the analyzed data, the author gave some suggestions to increase job satisfaction level of employees in the company: - Shopee needs to develop a coherent and reasonable compensation policy - The company should focus more on tightening the relationship between superiors and subordinates - Employees should be encouraged to give their opinions freely to managers - Managers should review their policies and rules