factors impacting employee job satisfaction evidence from telecommunication companies in laos

While these studies provide valuable insights into the factors influencing employee job satisfaction, they also highlight the need for further research in specific contexts, such as the

MINISTRY OF EDUCATION AND TRAINING NATIONAL ECONOMICS UNIVERSITY

MINISTRY OF EDUCATION AND TRAINING NATIONAL ECONOMICS UNIVERSITY

PADAPHONE SAYAKHOT

FACTORS IMPACTING EMPLOYEE JOB SATISFACTION: EVIDENCE FROM

TELECOMMUNICATION COMPANIES IN LAOS

Major: Business Administration Code: 9340101

PHD DISSERTATION Supervisor: Assoc Prof Dr Le Thi Lan Huong

HA NOI - 2024

DECLARATION

I have read and understood the University’s policy on plagiarism I hereby declare on my honor that this PhD dissertation is my own work and does not violate the guidelines on good academic practices

PhD Candidate

Padaphone Sayakhot

Thank you to Telecommunication companies in Laos and all staff who worked at telecom in Laos to answer the question

Thank you to the statistician team who helped me analyse the data

Thank you to the National Economics University Research Scholarship and Endeavour National Economics University Scholarship, who provided the PhD scholarship, which enabled me to complete my thesis

To my father, Padapphet Sayakhot and my mum, Khamphet Pholsena, even though my mother is gone, thank you for your true love, support and money and the very comfortable life you provided me throughout all the study phases of my life I am fortunate to have both of you as my parents My sister, Padaphet Sayakhot, and my brother, Padapxay Sayakhot, would not have been able to finish my PhD without your love, support, and encouragement

1.1 Rationale of the Study 1

1.2 Objectives of the Study 4

1.4.4 Data analysis method 7

1.5 Scope and Subjects of the Study 8

1.5.1 Research subject 8

1.5.2 Scope of space 8

1.5.3 Scope of time 9

1.6 Research contribution 9

1.7 Structure of the Dissertation 11

CHAPTER 1: LITERATURE REVIEW AND THEORETICAL FRAMEWORK OF JOB SATISFACTION 12

1.1 Theoretical Review 12

1.1.1 Herzberg Two-Factor Theory 12

1.1.2 Equity Theory 19

1.1.3 Maslow Satisfaction Theory 25

1.2 Literature review on factors influencing employee job satisfaction 27

1.2.1 Employees satisfaction 27

1.2.2 Basic Pay and Employee Job Satisfaction 30

1.2.3 Training Program and Employee Job Satisfaction 32

1.2.4 Working Conditions and Employee Job Satisfaction 34

1.2.5 Empowerment and Employee Job Satisfaction 36

1.2.6 Summary of the research factors 38

1.3 Research Gap 40

SUMMARY OF CHAPTER 1 45

CHAPTER 2: RESEARCH METHODOLOGY 46

2.1 Conceptual framework variables 46

2.2.3 Sample and Sampling Technique 57

2.3 Data Collection Technique 58

3.2.1 Business performance (business results) 68

3.2.2 Human resource context and policy 72

SUMMARY OF CHAPTER 3 74

CHAPTER 4: RESEARCH FINDINGS AND DISCUSSION 75

4.1 Respondents’ profile 75

4.1.1 Gender information 75

4.1.2 Age of the respondents 76

4.1.3 Length of continuous service with the organisation 77

4.1.4 Highest level of education 78

4.1.5 The position of the employee in the organisation 79

4.2 Descriptive statistics of Job Satisfaction variable 80

4.2.1 How the respondents rated telecommunication companies in measures of employees’ job satisfaction 80

4.2.2 Factors that affect the respondents’ job satisfaction in the organisation 80

4.3 Descriptive Statistics of Basic Pay 82

4.3.1 Employees Payment and Benefits Reward System 83

4.3.2 An Incentive Wage System 84

4.4 Descriptive Statistics of Training Programs 86

4.5 Descriptive Statistics of Working Conditions 90

4.6 Descriptive Statistics of Empowerment 92

4.7 Regression analysis 95

4.7.1 Scale reliability test – Cronbach alpha 95

4.7.2 Exploratory Factor Analysis 96

4.7.3 Confirmatory factor analysis (CFA) 98

5.4.1 Recommendations for businesses 116

5.4.2 Recommendations for the Ministry 119

5.5 Limitations of the study 120

APPENDIX 1: LETTER OF INTRODUCTION 144

APPENDIX 2: RESEARCH STUDY QUESTIONNAIRE 145

LISTS OF FIGURES

Figure 2.1 Conceptual Framework 46

Figure 2.2 Research Framework 47

Figure 4.1. The gender of the respondents 76

Figure 4.2 Age of the respondents 77

Figure 4.3 Length of continuous service 78

Figure 4.4 Level of education 79

Figure 4.5 Basic Pay 82

Figure 4.6 Empoyees’ opinion toward payment and benefits reward system 84

Figure 4.7 An incentive wage system 85

Figure 4.8 Frequently trained employees 87

Figure 4.9 Working conditions affecting the employee’s satisfaction 90

Figure 4.10 Level of Employee Empowerment 92

Figure 4.11 The confirmatory factor analysis result 99

Figure 4.12 Summary of correlation coefficients results 102

LISTS OF TABLES

Table 1.1 Summary of theoretical frameworks on employee’s job satisfaction 26

Table 1.2 Summary of previous research on factors affecting employee’s job satisfaction 38

Table 2.1 Population size 57

Table 2.2 Sample respondent 57

Table 3.1: Telecommunication network 66

Table 3.2: Quantity of register of PSTN, mobile and internet 67

Table 3.3 Telecommunication companies 68

Table 3.4 Quantity of vender companies of Telecommunication companies in Laos 70Table 3.5 Number of Internet providers 70

Table 3.6 The number of subscribers uses ICT and target plane development 71

Table 4.1 Response Rate 75

Table 4.2 The gender of the respondents 76

Table 4.3 Age of the respondents 77

Table 4.4 Length of continuous service 77

Table 4.5 Level of education 78

Table 4.6 The position of the employee 79

Table 4.7 Measurement of employees’ job satisfaction 80

Table 4.8 Factors affected the respondents’ job satisfaction 80

Table 4.9 Respondents’ agreement level with statements which relate to job satisfaction 81

Table 4.10 Employees Payment and Benefits Reward System 83

Table 4.11 The influence of the Pay System on job satisfaction 85

Table 4.12 Training program 88

Table 4.13 Opportunities being offered to the employees by the organisation 88

Table 4.14 The extent that the factors affected job satisfaction 90

Table 4.15 Employees’ emotion exhaustion 91

Table 4.16 Working conditions that affect the employees’ job satisfaction 91

Table 4.17 Employee empowerment and involvement in management and making 92

decision-Table 4.18 Factors that affected employee job satisfaction 93

Table 4.19 Scale reliability test results 95

Table 4.20 KMO and Barlett’s Test 97

Table 2.21 Rotated component Matrix 97

Table 4.22 Model summaryb 100

Table 4.23 ANOVAa 101

Table 4.24 Coefficients a 101

TP Training Program WC Working Condition

INTRODUCTION 1.1 Rationale of the Study

The telecommunications industry in Laos has undergone significant changes and rapid development in recent years, driven by technological advancements, regulatory restructuring, and increasing competition This dynamic and evolving landscape presents both opportunities and challenges for companies operating in the sector, particularly in terms of attracting, retaining, and motivating skilled employees Laos, a developing country in Southeast Asia, has recognized the critical role that telecommunications play in driving economic growth, promoting social development, and improving the quality of life for its citizens The government has implemented policies to liberalize the market, encourage foreign investment, and foster innovation in the industry As a result, the sector has experienced rapid expansion, with the introduction of new technologies such as 4G and 5G networks, and the emergence of multiple service providers competing for market share However, this rapid growth and increasing competition have also brought about significant challenges for telecommunications companies in Laos The industry's workforce has been impacted by changes in job roles, skill requirements, and potential job losses due to restructuring and automation At the same time, the demand for skilled workers with expertise in areas such as network engineering, digital services, and customer support has increased, leading to intense competition for talent In this context, employee job satisfaction has become a critical issue for telecommunications companies in Laos With the high cost of employee turnover and the need to maintain a skilled and motivated workforce to remain competitive, companies must find ways to attract, retain, and engage their employees This has led to a greater focus on factors such as compensation, benefits, training and development, work-life balance, and organizational culture, as companies seek to create a supportive and attractive work environment Furthermore, the cultural and socio-economic context of Laos presents unique challenges and opportunities for understanding and addressing employee job satisfaction in the telecommunications industry As a developing country, Laos faces issues such as income inequality, limited access to education and training, and a relatively small pool of skilled workers These factors can impact employees' expectations, priorities, and perceptions of job satisfaction, and may require companies to adopt tailored strategies that take into account the specific needs and constraints of the local context Despite the growing importance of employee job satisfaction in the telecommunications industry in Laos, there is currently limited research on this topic

in the specific context of the country and the sector This presents a significant gap in the literature, as the findings and insights from studies conducted in other countries and industries may not be directly applicable or relevant to the unique challenges and opportunities faced by telecommunications companies in Laos

Employee job satisfaction has been a topic of interest for many researchers across various industries and countries While there is limited research specific to the telecommunications industry in Laos, several studies have explored the factors influencing job satisfaction in related contexts, providing valuable insights and methodological approaches that can inform the current research One of the seminal works in this field is the study by Mosadegh Rad (2009), who investigated the factors affecting job satisfaction among employees in the healthcare sector Using a cross-sectional survey design, the researcher identified several key determinants of job satisfaction, including pay, promotion opportunities, benefits, work nature, supervision, and relationships with colleagues This study highlights the importance of considering both intrinsic and extrinsic factors when examining employee job satisfaction and provides a useful framework for categorizing and analyzing these factors Building on this work, Heneman et al (2002) and Hackman and Oldman (2005) have further explored the role of specific factors in shaping employee job satisfaction and performance Heneman et al (2002) focused on the impact of extrinsic rewards, such as pay and benefits, on employee satisfaction and motivation Using a mixed-methods approach, combining surveys and interviews, the researchers found that employees who were satisfied with their extrinsic rewards were more likely to perform better and be committed to their organizations This study underscores the importance of fair and competitive compensation practices in promoting employee satisfaction and retention Hackman and Oldman (2005), on the other hand, examined the influence of intrinsic factors, such as job characteristics and autonomy, on employee satisfaction and motivation Through a series of experiments and surveys, the researchers demonstrated that employees who experienced a high degree of task variety, significance, and autonomy in their work were more likely to be satisfied and motivated This study highlights the importance of job design and empowerment in fostering employee engagement and satisfaction Another important contribution to the literature on employee job satisfaction is the work of Walumbwa et al (2005), who investigated the impact of leadership styles on organizational commitment and job satisfaction Using a sample of employees from various industries in Kenya, the researchers found that transformational leadership behaviors, such as inspirational

motivation, individualized consideration, and intellectual stimulation, had a positive and significant impact on employee job satisfaction and commitment This study emphasizes the crucial role of effective leadership in creating a supportive and engaging work environment that promotes employee satisfaction and retention While these studies provide valuable insights into the factors influencing employee job satisfaction, they also highlight the need for further research in specific contexts, such as the telecommunications industry in Laos The unique cultural, socio-economic, and industry-specific factors that shape employee experiences and expectations in this context may require different approaches and solutions compared to those identified in previous studies To address these challenges, researchers have employed a range of methodological approaches, including surveys, interviews, focus groups, and case studies For example, a study by Kian et al (2014) used a mixed-methods approach, combining surveys and interviews, to investigate the factors influencing job satisfaction among employees in the telecommunications industry in Malaysia By triangulating quantitative and qualitative data, the researchers were able to gain a more comprehensive and nuanced understanding of the key drivers of satisfaction in this context, including career development opportunities, work-life balance, and organizational support Similarly, a study by Oyewobi et al (2019) employed a case study approach to examine the impact of organizational culture on employee job satisfaction in a Nigerian telecommunications company Through in-depth interviews and focus group discussions with employees at various levels of the organization, the researchers identified several key aspects of organizational culture, such as communication, teamwork, and innovation, that played a crucial role in shaping employee satisfaction and engagement These studies demonstrate the value of using multiple research methods and data sources to gain a comprehensive understanding of the factors influencing employee job satisfaction in specific contexts By combining quantitative and qualitative approaches, researchers can triangulate findings, validate conclusions, and generate actionable insights that can inform the development of effective human resource management strategies While there is limited research specific to the telecommunications industry in Laos, previous studies in related contexts have identified several key factors that influence employee job satisfaction, including pay, promotion opportunities, job characteristics, leadership styles, and organizational culture These studies have employed a range of methodological approaches, including surveys, interviews, focus groups, and case studies, to gain a comprehensive understanding of the drivers of satisfaction in specific contexts

Considering the importance of employees in developing the telecommunications industry in Laos, it is crucial to address their job satisfaction The growing number of telecommunications service providers in Laos has created a highly competitive environment, giving employees more choices in terms of employers Ensuring employee job satisfaction has become essential for telecommunication companies to retain their workforce Understanding the factors that impact employee job satisfaction has become an urgent requirement for the telecommunications industry in Laos Therefore, I chose "Factors Impacting Employee Job Satisfaction: Evidence from Telecommunication Companies in Laos" for my doctoral thesis This study on factors impacting employee job satisfaction in the telecommunications sector of Laos aims to make several essential research contributions The first contribution will provide original evidence on satisfaction drivers within this under-researched context As job satisfaction theories have emerged mainly from Western samples, this thesis presents an opportunity to explore the applicability of existing frameworks within Southeast Asia's emerging job markets Secondly, the research will discern significant predictors of satisfaction specific to the telecom industry in Laos Examining intrinsic and extrinsic motivators across employee types aims to offer actionable insights for human resource management within critical firms Thirdly, the findings will add to the scarce international literature on satisfaction and motivation among diverse employees within developing Asian countries transitioning to a knowledge economy Finally, by identifying gaps between current practices and optimal satisfaction levels, the research expects to highlight strategies for Lao telecom companies to enhance the engagement and retention of their skilled workforce

1.2 Objectives of the Study

The findings of this research will provide valuable insights for the management of telecommunication companies in Laos, enabling them to identify and implement effective strategies to remain competitive in a highly saturated market Moreover, the study will serve as a comprehensive resource for entrepreneurs and investors considering entering the telecommunications industry, as it will highlight best practices and potential pitfalls to avoid The research will also create a blueprint that can be adapted and applied by other telecommunication companies facing similar challenges related to intense competition Importantly, the primary objective of this study is to offer actionable recommendations for establishing systems that can yield a competitive edge Furthermore, policymakers will gain a deeper understanding of the

industry's dynamics and the most suitable systems, allowing them to draw upon the findings of this research to develop appropriate policies for regulating the sector

In detail, the dissertation aims at achieving the following specific research objectives:

- To identify the primary factors contributing to employee job satisfaction in telecommunication companies in Laos and examine their alignment with established theories such as Herzberg's Two-Factor Theory, Maslow's Hierarchy of Needs, and the Job Characteristics Model

- To investigate the extent to which employee job satisfaction influences organizational performance in telecommunication companies in Laos and interpret this relationship through the lens of theoretical frameworks and practical observations

- To explore the impact of company policies, management practices, and organizational culture on employee job satisfaction in the context of telecommunication companies in Laos and discuss the theoretical and practical implications of these relationships

- To analyze the roles of employee motivation, engagement, and work-life balance in shaping job satisfaction within the telecommunication industry in Laos and understand and leverage these factors in light of relevant theories and practical considerations

- To develop a comprehensive model that captures the key factors influencing employee job satisfaction in telecommunication companies in Laos, integrating both theoretical and practical perspectives, and examine the potential applications of such a model for enhancing job satisfaction and organizational performance in this industry

1.3 Research Questions

Having established the research objectives, which aim to investigate the key factors influencing employee job satisfaction in telecommunication companies in Laos from both theoretical and practical perspectives, the following research questions have been formulated to guide the study These questions are designed to explore the relationships between various organizational and individual-level factors and their impact on job satisfaction within the context of the Laotian telecommunication industry By addressing these questions, the study seeks to develop a comprehensive

understanding of employee job satisfaction in this sector, informed by established theories and grounded in practical observations The research questions are as follows:

- What are the primary factors that contribute to employee job satisfaction in telecommunication companies in Laos, and how do these factors align with established theories in organizational behaviour and human resource management?

- To what extent does employee job satisfaction influence organizational performance in telecommunication companies in Laos, and how can this relationship be understood through the lens of theoretical frameworks and practical observations?

- How do various organizational factors affect employee job satisfaction in the context of telecommunication companies in Laos, and what are the theoretical and practical implications of these relationships?

- What roles do individual-level factors play in shaping job satisfaction within the telecommunication industry in Laos, and how can these factors be understood and leveraged in light of relevant theories and practical considerations?

- How can a comprehensive model be developed to capture the key factors influencing employee job satisfaction in telecommunication companies in Laos, integrating both theoretical and practical perspectives, and what are the potential applications of such a model for enhancing job satisfaction and organizational performance in this industry?

1.4 Research methodology

To achieve the objectives of this study and address the research questions, a comprehensive research methodology has been designed, incorporating various approaches, sample sizes, data collection methods, and analysis techniques The following sub-sections outline the key components of the research methodology

1.4.1 Research approaches

This study will employ a mixed-methods approach, combining both quantitative and qualitative research methods The quantitative approach will involve the use of a survey questionnaire to collect data from a large sample of employees working in telecommunications companies in Laos This approach will allow for the identification of key factors influencing employee job satisfaction and the examination of

relationships between these factors and overall job satisfaction The qualitative approach will involve semi-structured interviews with a smaller sample of employees, managers, and HR professionals in the industry This approach will provide a deeper understanding of the factors influencing employee job satisfaction and explore the specific challenges and opportunities faced by telecommunications companies in Laos

1.4.2 Sample size

For the quantitative survey, a sample size of around 600 employees will be targeted, based on a population of approximately 2500 employees working in the telecommunications industry in Laos This sample size has been determined using a confidence level of 95% and a margin of error of 5%, to ensure the representativeness and generalizability of the findings For the qualitative interviews, a sample size of 20-30 participants were targeted, including employees from various levels and departments, as well as managers and HR professionals This sample size is considered sufficient to achieve data saturation and to obtain a comprehensive understanding of the factors influencing employee job satisfaction in the industry

1.4.3 Data collection

The quantitative survey data wered collected using a self-administered questionnaire, distributed both online and in paper format to employees working in telecommunications companies in Laos The questionnaire includes items measuring various aspects of job satisfaction, such as pay, training programs, work environment, working conditions, empowerment, as well as demographic and background information The qualitative interview were collected through face-to-face or online semi-structured interviews, conducted by the researcher The interviews will be guided by an interview protocol, which will include open-ended questions designed to explore the participants' experiences, perceptions, and opinions related to employee job satisfaction in the telecommunications industry in Laos

1.4.4 Data analysis method

The quantitative survey data will be analyzed using descriptive and inferential statistical techniques, such as factor analysis, regression analysis, and structural equation modeling These techniques will be used to identify the key factors influencing employee job satisfaction, examine the relationships between these factors and overall job satisfaction, and test the hypothesized model of job satisfaction in the telecommunications industry in Laos The qualitative interview data will be analyzed

using thematic analysis techniques, which involve the identification, analysis, and interpretation of patterns or themes within the data The analysis will be conducted using a combination of deductive and inductive approaches, based on the conceptual framework developed from the literature review and the emerging themes from the data The findings from the quantitative and qualitative analyses will be integrated and interpreted in light of the research questions and objectives, and the existing literature on employee job satisfaction The integrated findings will be used to develop a comprehensive model of the factors influencing job satisfaction in the telecommunications industry in Laos, and to generate actionable recommendations for human resource management in the industry

1.5 Scope and Subjects of the Study 1.5.1 Research subject

The research subject of this thesis is employees working across different roles, departments, and levels within major telecommunication companies operating in Laos This would include recruiting a sample of frontline and back-office support staff from firms such as Lao Telecom, Unitel, and Beeline The sample comprises long-tenured employees with over five years of service who recently joined within the last two years It would be beneficial to survey a mix of male and female participants across various age groups, ranging from recent graduates to those nearing retirement This allows for examining potential differences in job satisfaction based on generational priorities and motivations The research subjects are also drawn from a cross-section of the organisational hierarchy, including entry-level, middle-management, and top leadership roles Such a representative sample from Laos' strategically essential and growing telecommunications sector presents an opportunity to gain nuanced insights into factors impacting employee satisfaction levels Comparisons can be made across different experience levels, functions, genders and generations to develop evidence-based recommendations for optimising human resource practices within these companies

1.5.2 Scope of space

The main empirical research area is telecommunication companies in Lao The literature review covers research and experiences around the world The current situation of employee job satisfaction at telecommunication companies in Lao PDR is also reviewed and discussed

The first contribution of this study lies in its provision of original empirical evidence on factors influencing employee job satisfaction within the telecommunications sector in Laos, an under-researched context from both an industry and geographic perspective While extensive research on job satisfaction determinants has been conducted in developed Western markets such as North America and Europe, work values and motivations may differ significantly in developing Asian economies that are transitioning towards more knowledge-based industries By exploring satisfaction dynamics within Laos' strategically important telecom sector, this study aims to address this research gap Through surveying a sample of employees across leading firms in the Lao telecom industry, the study will yield primary data to examine which satisfaction drivers hold particular prominence in this setting This includes an investigation of intrinsic motivators, such as job content, autonomy, and growth opportunities, as well as extrinsic factors, including compensation, benefits, and work-life practices The findings from this study will enable comparisons between satisfaction levels and influencing aspects in Laos relative to assumptions grounded in Western-dominated theoretical frameworks and literature, potentially shedding light on variances stemming from the cultural and economic uniqueness of the Lao context By collecting country-specific quantitative and qualitative insights, this study represents the first rigorous investigation into satisfaction and engagement patterns among Lao employees in the emerging Asian telecom environment It aims to advance scholarly understanding beyond generalisations while equipping local practitioners with evidence-based knowledge Generating original empirical evidence from this novel setting forms a pivotal research contribution of the proposed study, enriching the cross-cultural body of knowledge on employee motivation and well-being

The second significant contribution of this study lies in its ability to discern which factors have the most substantial influence on job satisfaction, specifically within Lao telecommunication companies While previous research provides insight

into generic satisfaction drivers, this thesis aims to identify uniquely salient predictors of employee satisfaction in this particular industry context For instance, attributes such as growth opportunities, work-life balance, and compensation may carry relatively more weight for telecom professionals compared to other occupational groups By adopting a multi-variate analytic approach that examines the incremental effects of various intrinsic and extrinsic motivators, the study will help determine their relative predictive power This will be achieved through collecting quantitative ratings and qualitative views on the most and least satisfying aspects of work in the Lao telecom sector By spotlighting the strongest telecom-specific satisfaction drivers that are empirically validated in the Lao setting, the study offers nuanced guidance for human resource best practices tailored to this sector For example, the findings may indicate that factors such as compensation or learning opportunities warrant particular focus in order to optimize employee satisfaction and engagement Therefore, disentangling the pronounced versus trivial impacts of various factors on job satisfaction promises new understanding that goes beyond generalised satisfaction drivers This understanding can be used to optimise the engagement of the Lao telecom talent pipeline, forming a directly applicable research contribution that benefits both scholarship and industry

The third significant contribution of this research lies in its ability to add to the limited but growing international literature on job satisfaction and motivation among diverse employee populations within developing Asian contexts that are transitioning to knowledge economies While job satisfaction has been widely studied, most research emanates from Western cultural contexts that differ vastly from Southeast Asian societies in terms of workforce demographics, economic realities, and societal values This research focuses on a sample drawn from the emerging telecom sector of Laos, a developing nation undergoing rapid industrialization and digital transformation By studying satisfaction determinants and engagement strategies within this unique context, the study will enrich our understanding of motivation and well-being in non-Western job markets Through employing robust quantitative and qualitative analytical methods, this study aims to generate high-quality empirical data that can be meaningfully compared or contrasted with satisfaction frameworks predominant in developed countries Additionally, it provides valuable cultural insights concerning Lao employees' motivational priorities and preferences, an underrepresented demographic in global management literature The findings are expected to not only fill gaps in research covering Asian populations but also stimulate

further investigations into nationally diverse satisfaction experiences and their implications for theory advancement By contributing new evidence from Laos' developing job industry, this study plays an essential role in building a more inclusive and generalisable understanding of motivation on an international scale

The final significant contribution of this research lies in its intention to identify gaps between current job satisfaction levels among Lao Telecom employees and optimal levels of engagement and well-being While past studies provide some theoretical insight into satisfaction determinants, there remains a need to understand how well empirical realities match up against employee expectations and desires in this uniquely Lao context By comparing ratings of satisfaction attributes against important judgments, this study aims to determine priority areas where fulfilment is lacking the most Additionally, it can uncover unforeseen influences contributing to unsatisfactory experiences Qualitative interviews will capture detailed suggestions for improvement directly from local staff perspectives, strengthening the validity of the findings by combining quantitative and qualitative data Highlighting evident satisfaction deficiencies has direct practical relevance, allowing for the recommendation of targeted strategies to help companies better fulfil their workforce For example, initiatives around compensation, work policies, or culture-building may be proposed to maximise talent retention, which is critical to industry competitiveness and national economic goals This applied component forms a significant research contribution by benefiting human resource practices with culturally adapted, evidence-driven solutions that optimise the employee experience In turn, boosted satisfaction can lead to greater productivity, innovation, and continued sector prosperity within Lao society as it advances rapidly

1.7 Structure of the Dissertation

In addition to the introduction and conclusion, the thesis is structured into chapters as follows:

Chapter 1: Literature review and Theoretical framework of Job satisfaction Chapter 2: Research Methodology

Chapter 3: Overview of the Telecommunication industry and Telecommunication companies in Laos

Chapter 4: Research Findings and Discussion

Chapter 5: Discussion of the research findings and recommendation

CHAPTER 1: LITERATURE REVIEW AND THEORETICAL FRAMEWORK OF JOB SATISFACTION

1.1 Theoretical Review

Significant research has examined the factors impacting employee job satisfaction to determine an organisation’s choice It deeply analyses the detailed factors impacting employee job satisfaction in the organisation It benefits the organisation to avoid the impact of business management Abraham et al (2008) explain how the compensation decision model was portrayed on both environmental and organisational Factors like the organisation’s business and Human Resource strategy directed the reward system Following their work, scholars have conducted various statistical studies analysing capability “contingency” factors in reward determination, business strategy, firm size, ownership structure, unionisation, economic variables, technological changes, environmental uncertainty and legal factors

In many cases, rewards management is closely related to motivation theories and job satisfaction Gagné and Deci (2005) discuss motivational theories that emphasize the importance of fulfilling three key psychological needs—autonomy, competence, and relatedness—or designing work in a way that fosters positive mental states These theories can help elucidate the rationale behind the reward systems implemented by different companies to ensure their employees are satisfied with their work

1.1.1 Herzberg Two-Factor Theory

Hertzberg's analysis shed light on the genuine needs of employees in their work environment Participants in the study were asked to recount instances where they experienced either satisfaction or dissatisfaction in their jobs The factors associated with job satisfaction included opportunities for advancement, recognition of achievements, engaging work, a sense of accomplishment, personal growth, and increased responsibilities Hertzberg referred to these factors as "motivators." On the other hand, Robbins (2001) identified the elements that contributed to job dissatisfaction, such as suboptimal working conditions, inadequate supervision, poor interpersonal relationships, and issues with company policies and administration Consequently, Hertzberg and Robbins examined job satisfaction and dissatisfaction as separate, independent constructs

Herzberg's Two-Factor Theory, or Motivator-Hygiene Theory, is among the most influential theories in job satisfaction The theory was developed by Frederick Herzberg and his associates in 1959 and published in a book titled "The Motivation to Work" According to the theory, two factors influence job satisfaction: motivators and hygiene (Herzberg, 1959) Motivators, such as achievement, recognition, responsibility, advancement, and the work itself, are intrinsic to the job and can positively influence job satisfaction Hygiene factors are extrinsic to the job, such as company policy, supervision, relationship with supervisor, working conditions, salary and job security that do not directly motivate workers but can influence dissatisfaction if not satisfactory (Herzberg et al., 1959) Herzberg developed this theory based on interviews with 203 accountants and engineers in Pittsburgh to identify factors in their jobs that made them satisfied or dissatisfied Analysis of the interviews led him to distinguish motivator factors, which could create satisfaction, and hygiene factors, which could create dissatisfaction Herzberg claimed that satisfaction and dissatisfaction are not the opposite ends of the same continuum but two separate continuums (Herzberg, 1968) The presence of motivators can lead to job satisfaction, but their absence does not necessarily lead to dissatisfaction Similarly, hygiene factors, if absent, can create dissatisfaction, but their presence does not necessarily lead to satisfaction (Herzberg, 1968)

Herzberg's theory has influenced human resource management practices greatly Organisations started adopting motivational techniques focused on providing growth opportunities, meaningful work, recognition, and responsibility to positively impact employee satisfaction and performance (Maidani, 1991) Maidani (1991) conducted an empirical study to test the applicability of Herzberg's Two-Factor Theory in the public sector in developing nations Specifically, the study examined the motivator and hygiene factors among public sector accountants in Bhutan A structured interview schedule was developed based on Herzberg's motivation-hygiene categories and administered to 110 accounts working for the Royal Government of Bhutan The study found significant associations between motivator factors of achievement, recognition, work itself and responsibility with job satisfaction among the participants, validating Herzberg's theory Work itself was identified as the strongest predictor of job satisfaction For hygiene factors, company policy and administration were most strongly correlated with job dissatisfaction Some other hygiene factors like supervision, interpersonal relations and working conditions were also found to influence dissatisfaction among the participants

Interestingly, motivators contributed more towards satisfaction than hygienes towards dissatisfaction, as proposed by Herzberg This partially supported Herzberg's proposition that motivators and hygiene are independent factors The study also noted some influences of individual/demographic variables on job attitudes For example, higher-educated employees reported higher job satisfaction than those with less education Job level/designation also influenced attitudes, with higher-level jobs showing more satisfaction Overall, Maidani (1991) provided empirical validation of Herzberg's theory in the context of public sector accountants in Bhutan, though some cultural and individual differences in factors were also seen The study supported the universal applicability of the theory across cultures and suggested that motivator and hygiene factors are essential for organisations to consider enhancing job attitudes in developing countries' public sectors It added to the limited validation studies of the theory conducted in non-Western contexts at the time This empirical study helped establish the practical and cross-cultural relevance of Herzberg's influential but often debated two-factor motivation theory, providing valuable implications for the effective management of human resources in public sector organisations globally

Empirical studies have also tested the theory in various contexts, finding it applicable to many occupations and cultures with some modifications (Sergiovanni, 1967; Steers & Porter, 1991; Reitz, 1971) Sergiovanni (1967) conducted one of the early empirical studies to test Herzberg's two-factor theory in education The study surveyed 809 teachers across 12 mid-western school systems in the United States regarding factors influencing their job attitudes Through factor analysis of the survey data, Sergiovanni (1967) identified five variables contributing to teacher job satisfaction - achievement, recognition, the work itself, responsibility, and advancement These findings provided support for Herzberg's proposed motivator factors However, some essential differences from Herzberg's original theory were also observed For example, supervision strongly predicted satisfaction and dissatisfaction, challenging the notion that hygiene factors only influence dissatisfaction

Moreover, contrary to Herzberg's proposition, motivator factors also reduced dissatisfaction As Herzberg suggested, motivator and hygiene factors may not be completely independent Demographic variables like experience, gender and school level also moderated the influence of different factors on satisfaction versus dissatisfaction Despite some inconsistencies, the results validated the central proposition that achievement, recognition and work are critical determinants of teacher job satisfaction The study highlighted the theory's applicability in education and

emphasised the need to focus on motivator-based interventions to enhance teacher motivation and performance Sergiovanni's (1967) study added to the limited empirical research to test Herzberg's theory It provided an early demonstration of the two-factor framework's practical relevance while identifying some areas that needed further refinement The study continues to be widely cited in literature examining teacher job attitudes and motivation

Steers and Porter (1991) conducted a comprehensive review and meta-analysis of over 100 published studies that tested Herzberg's two-factor theory between 1967 and 1987 This was one of the most extensive evaluations of the empirical support for the theory conducted at the time The meta-analysis found general confirmation for the theory's central proposition that achievement, recognition, work itself, responsibility, and advancement positively influence job satisfaction, demonstrating their role as motivators Company policies, supervision quality, relationships and salary were linked to job dissatisfaction as proposed for hygiene factors However, some nuances were also observed consistently across studies For example, motivator factors showed a stronger relationship with satisfaction than hygiene factors with dissatisfaction

Additionally, supervision was found to influence both satisfaction and dissatisfaction depending on its quality Individual difference factors like age, gender and occupational group also moderated the impact of various motivators and hygienes Cultural context played a role, too, with some variance seen cross-nationally The meta-analysis supported the theory's fundamental tenets' cross-occupational and cross-cultural validity and explanatory power However, it also highlighted the need to treat some concepts like supervision and policies as potentially having mixed influences This meta-analysis arguably gave the most comprehensive endorsement of Herzberg's theory based on an accumulation of empirical tests up to that point The extensive nature of the evaluation and consistency of findings across diverse studies enhanced the credibility and importance of the two-factor theory for researchers and practitioners in work motivation and job attitudes

Reitz (1971) conducted a study to test Herzberg's two-factor theory among junior industrial managers in the U.S Using a questionnaire survey of 106 managers, he examined the factors influencing their job satisfaction and dissatisfaction Through factor analysis, Reitz identified six motivator factors that correlated positively with satisfaction - achievement, recognition, work itself, responsibility, advancement and growth These provided support for Herzberg's proposed intrinsic motivators Interestingly, two factors - company policy/administration and supervision - showed

significant relationships with satisfaction and dissatisfaction This nuanced finding challenged Herzberg's proposition that hygiene factors strictly influence dissatisfaction alone

Further analysis also revealed that motivator factors had a more substantial impact on satisfaction than hygiene factors on dissatisfaction Demographic variables like education, tenure and organisational level moderated the influence of some factors Overall, Reitz found empirical evidence validating most aspects of the two-factor theory However, the mixed influence of supervision and policy administration on attitudes departs from Herzberg's original conceptualisation This study contributed to understanding the theory's practical relevance for managers and highlighted the need for further refinement regarding certain hygiene factors It responded to a need for empirical research on professionals/managers, specifically, an occupational group underrepresented in prior tests at that time Reitz's (1971) findings supported generalising the theory beyond industrial workers originally studied while pointing to nuances warranting theoretical revisions His work added to evolving knowledge about Herzberg's influential but debated framework

Bhatti et al (2014) conducted a study to examine factors influencing job satisfaction among university teachers in Pakistan using Herzberg's two-factor theory as the theoretical framework A survey was administered to 550 teachers from 15 public sector universities The questionnaire gathered data on motivator and hygiene factors proposed by Herzberg Factor analysis revealed six apparent factors - achievement, recognition, work, company policy, supervision and relationships Multiple regression analysis was then used to determine the impact of each factor on job satisfaction The results found that achievement, recognition and work have a significant positive relationship with job satisfaction This supported Herzberg's proposition that these intrinsic factors act as motivators Company policy and supervision emerged as critical predictors of job dissatisfaction, in line with their role as hygiene factors

Interestingly, relationships at work were seen to increase both satisfaction and dissatisfaction depending on their positive or negative nature, challenging Herzberg's notion of clear separability between the two sets of factors Respondents ' education and income levels also moderated the influence of certain factors This study made an essential contribution toward validating the applicability of Herzberg's model within the context of Pakistan's public universities It also suggested some cultural nuances and potential refinements needed to the original theory The findings offered practical

implications for designing interventions to enhance teacher motivation in Pakistan Overall, Bhatti et al (2014) provided recent empirical evidence for the cross-cultural relevance of Herzberg's framework while highlighting the need for ongoing refinements based on context-specific research This added meaningful insights to evolving knowledge regarding the theory

Bhattacharyya and Chakraborty's (2020) research examined the applicability of Herzberg's two-factor theory in the context of the Indian IT sector Through a structured questionnaire, they collected primary data from 280 IT employees working in Kolkata-based companies The questionnaire measured both intrinsic and extrinsic job factors proposed by Herzberg Factor analysis identified six components - achievement, recognition, work, company policies, salary, and supervision Regression analysis was then used to analyse the impact of these factors on job satisfaction and dissatisfaction The results provided support for the critical propositions of Herzberg's theory Achievement, recognition, and work emerged as significant positive predictors of job satisfaction, validating their role as motivator factors Company policies and salary significantly influenced job dissatisfaction, upholding their categorisation as hygiene factors

Interestingly, supervision had a mixed effect, enhancing satisfaction when supportive but increasing dissatisfaction when overbearing Individual attributes like age, experience and education also moderated the influence of different factors to some extent This study offered recent empirical validation of Herzberg's framework in the thriving Indian IT sector It suggested that motivators and hygiene factors need consideration for optimising employee attitudes and performance within the industry Limitations around generalizability to other contexts were also acknowledged Through explorations in India's booming modern sector, Bhattacharyya and Chakraborty (2020) provided valuable insights into the ongoing practical and cross-cultural relevance of Herzberg's influential but much-debated two-factor theory

Criticisms of the theory include the small sample interviewed by Herzberg, lack of consideration for individual differences, and difficulties distinguishing between motivators and hygienes in practice (Hulin & Smith, 1965; Saleh & Hosek, 1976) Hulin and Smith (1965) conducted one of the earliest and most influential studies critiquing Herzberg's two-factor theory They collected data from over 800 engineers and scientists working for a large company in the United States Using factor analysis, Hulin and Smith extracted three job satisfaction factors - job content, supervision, and pay/job context Contrary to Herzberg, these factors influenced satisfaction and

dissatisfaction, challenging the proposed segregation between motivator and hygiene categories Through additional analyses comparing past and present job attitudes, the researchers also argued against Herzberg's view that job context influences only dissatisfaction They suggested that overall job satisfaction is influenced by a combination of motivational and contextual variables rather than two distinct sets of factors This study pointed out conceptual and methodological issues with Herzberg's approach through a rigorous empirical analysis It highlighted limitations in generalising his findings from semi-structured interviews to other occupational groups Hulin and Smith's work spurred further research seeking to validate or refine the two-factor theory Their identification of overlapping influences on satisfaction and dissatisfaction directly contradicted a core premise of Herzberg's model and was an influential early critique Though often cited as disproving the theory, Hulin and Smith's (1965) research importantly motivated continued empirical examination of the concepts It contributed to the ongoing scholarly dialogue and evolution of understanding regarding workplace motivation

Herzberg’s two-factor theory is a crucial reference for managers who need to understand job satisfaction and connected job performance issues (Schermerhorn, 1993) He asserts that the two-factor concept is a beneficial reminder that there are two necessary aspects of all jobs: what individuals do in terms of job content and the work setting in which they are doing it (job context) Schermerhorn suggests that managers should attempt to unendingly eliminate poor hygiene sources of job discontent inside the working office and guarantee building satisfier factors into job content to maximise possibilities for job delight This theory has connectedness and is very important to the current study in that it acknowledges that employees have two classes of wants that operate in them, both of which ought to be addressed

Thorpe & Homan (2000) referred to those environmental factors that cause employers to be dissatisfied as hygiene Factors According to Herzberg, Mausner, and Synderman, these factors do not cause satisfaction and consequently do not increase per-staff performance The hygiene factors are company policy and management, technical supervision, income, social relationship with supervisors and work conditions; they are associated with process content Herzberg et al indicated that these factors are perceived as vital but inadequate for employee satisfaction The researchers identified motivating factors as those that drive employees to put in extra effort They suggested that these factors are related to the job context or the specific tasks employees perform, categorizing them into the following areas: accomplishment,

recognition, work itself, responsibility, and advancement Achievement is characterized by the desire to excel, tackle complex challenges, and meet high standards

Wood (2006) emphasized that the absence of dissatisfaction does not necessarily equate to the presence of satisfaction Both hygiene factors and motivators play crucial roles in various ways Ololube (2005) applied these concepts to the field of education, suggesting that if school improvement primarily depends on enhancing teaching, the core processes in making schools more effective should focus on improving teacher motivation and capabilities When lecturers are satisfied with their work, they can create an optimal social, mental, and physical environment in the classroom When teachers are content, they appear to be able to integrate their professional knowledge (subject matter and pedagogy), interpersonal understanding (human relationships), and intrapersonal information (ethics and reflective ability) effectively This theory will serve as a guide for the researcher in determining the factors that contribute to employee satisfaction in the telecommunications sector in Laos

In summary, Herzberg's Two-Factor Theory provides valuable insight into factors that motivate employees at work versus those that cause dissatisfaction While criticisms exist, it has dramatically influenced job design and human resource management theory and practice More research is still needed to test the theory's applicability across different contexts and occupations

1.1.2 Equity Theory

Equity Theory was developed by John Stacey Adams in 1963 based on the central proposition that employees seek to maintain equity or fairness between their job inputs and outcomes concerning comparisons Inputs refer to attributes like effort, skills and experience, while outcomes include pay, rewards and benefits (Adams, 1963) The theory posits that individuals constantly monitor and compare their input-outcome ratios to those they view as relevant comparisons, known as referent others Inequity exists when individuals perceive an imbalance between their and others' ratios Examining the values of this theory is also a significant determinant of job satisfaction, as Adams (2003) supported and explained Equity theory includes a range of noticeable issues like executive remuneration, equal value, and similar worth Adams (2003) argued that there is less interest in the level of payments than the awareness of fairness among others

Perceived inequity creates distress, which motivates employees to take actions to resolve the imbalance, like altering inputs or outcomes, changing the referent other or distorting perceptions of inputs and outcomes Inequity aversive behaviour includes sabotage, theft, reduced performance and higher absenteeism (Adams, 1963; Pritchard, 1969) The theory influenced various human resource practices to manage inequity, such as equitable pay systems, performance-based incentive schemes, and flexible work policies It also shaped research examining the consequences of inequity like job satisfaction, organisational commitment and turnover (Greenberg, 1988) Empirical studies provided support for the theory's propositions across many contexts Studies showed that balanced ratios led to positive attitudes and motivation, while perceived inequity reduced satisfaction and increased stress (Goodman, 1974; Welbourne et al., 1998) Moderating influences of individual and contextual factors on equity perceptions and reactions were also observed (Pritchard, 1969; Huseman et al., 1987)

Greenberg (1988) provided an extensive review and synthesis of over 100 empirical studies that had tested propositions derived from Equity Theory since its inception in 1963 The meta-analysis examined relationships between inequity, pay satisfaction, job performance and organisational citizenship behaviours The results largely supported the theory's predictions Perceived inequity was consistently negatively correlated with job satisfaction and commitment across various studies and occupational groups As equity theory anticipates, under-reward inequity tended to be more dissatisfying than over-reward inequity Inequity also impacted work behaviours, with deprived individuals showing lower performance and higher absenteeism and turnover However, the meta-analysis revealed disparities, too The strength of relationships varied based on moderators like the individualism-collectivism orientation of sample contexts Inequity seemed to influence males and lower-level employees more than others Longitudinal studies also found that most inequity effects weakened somewhat over time Greenberg (1988) highlighted the methodological limitations of some past research but concluded that sufficient evidence exists for the theory's fundamental assertion that fair and equitable treatment is essential for motivation He acknowledged the need for further tests of alternate models and research on coping with inequity This landmark review rigorously aggregated the theory's empirical validation to date, demonstrating its explanatory power and identifying issues meriting ongoing study Greenberg's meta-analysis established Equity Theory as a verified framework with meaningful implications for management practice

Goodman (1974) conducted a laboratory experiment to test specific predictions derived from Equity Theory regarding reactions to inequitable conditions One hundred forty-four undergraduate students were placed in small workgroups and given a brainstorming task Groups were subjected to either equitable, under-reward or over-reward input-outcome distributions Measurement of variables included participants' satisfaction levels, engagement with the task, and attitudes towards other group members Results showed that individuals in inequitably treated groups reported higher satisfaction and motivation than those in inequitable conditions, supporting equity theory hypotheses Under-rewarded participants exerted less effort and had a more pessimistic assessment of referents than equitable and over-rewarded groups However, contrary to predictions, over-rewarded subjects did not report greater satisfaction than expected

Additionally, individual competitiveness appeared to lessen some inequity effects This initial experimental evidence validated equity theory concepts while revealing needed refinements By objectively manipulating equity variables in a controlled setting compared to prior surveys, it responded to criticisms of past research designs Goodman's (1974) results established internal and construct validity for key predictions, making a significant early contribution despite the limitations of simulated tasks His work gained recognition as a landmark study supporting equity theory empirically

Pritchard (1969) conducted one of the earliest empirical tests of Equity Theory using a field study design He examined the impact of inequity on the behaviours of 50 mechanical assemblers at a manufacturing plant Pritchard measured employee performance through objective production records and subjective supervisory ratings He also assessed individual characteristics like competitiveness and tolerance for ambiguity Findings showed that assemblers who perceived under-reward inequity relative to peers had significantly lower levels of performance than those feeling equitably treated, supporting Equity Theory Individual differences moderated these effects to some extent, with tolerant or less competitive employees displaying fewer inequitable behaviour changes This study made significant contributions It provided initial real-world validation for equity concepts beyond lab experiments Pritchard also showed that perceived inequity could significantly impact performance-related work behaviours, influencing how equity influences were viewed Using objective performance indicators addressed methodological concerns of prior research Findings foreshadowed extensive research on inequity antecedents and job outcomes

Considering moderators was innovative Pritchard's (1969) field test pioneered empirically supporting Equity Theory outside simulations, allowing greater credibility and laying the groundwork for subsequent studies Pritchard's research marked an essential transition toward establishing equity propositions that apply to natural organisational settings His work helped establish the theory's credibility and importance

Zhang et al (2019) researched to examine how perceptions of inequitable treatment by leaders (called "polygamous leadership") influence subordinates' attitudes and behaviours in Chinese workplaces using equity theory as a guiding framework They surveyed 260 employees across different industries for their perceptions of their direct leader's preferential treatment of subordinates over others The researchers measured variables including inequity felt, job satisfaction, organisational commitment, and work performance Results showed that employees who felt their leader favoured other subordinates reported significantly higher levels of inequity and lower motivation indicators compared to those who felt equal treatment occurred Inequity partially mediated the negative impact of preferential leadership on work outcomes

Interestingly, perceptions of inequity were more influential than actual objective differences in treatment Individual attributes like experience and education moderated some relationships This study provided empirical support for equity theory concepts in a non-Western cultural context and novel leadership setting It highlighted the motivation-dampening role of unequal treatment perceptions between subordinates Practical implications addressed the need for fair leadership styles in China Limitations around standard method bias and causal inferences were acknowledged Zhang et al (2019) contributed to the contemporary validation of equity theory propositions in an essential global economic context

Soltani et al (2021) examined how pay dispersion, or differences in employee pay levels within organisations, impacts the job attitudes and behaviours of hotel workers in Iran using equity theory as the theoretical framework They surveyed 200 frontline employees across ten hotels about pay satisfaction, inequity perceptions, and service performance indicators Pay dispersion was calculated objectively from company records Results showed that higher pay dispersion hotels had lower average employee pay satisfaction Pay dispersion also raised perceived inequity, supporting equity theory Furthermore, inequity partially mediated the negative effect of dispersion on employees' service quality efforts

Interestingly, analyses found disproportionately high pay for some harmed attitudes of high performers more so than low performers Individual attributes like tenure and education moderated some relationships This study made an essential contribution by applying equity theory in the under-researched hospitality context of Iran It highlighted the practical implications of considering pay fairness and compression for maximising worker motivation Limitations around standard method variance and cross-sectional design were noted The findings validated contemporary equity theory concepts and implications within a non-Western culture and industry setting Soltani et al (2021) advanced knowledge of boundary conditions impacting organisational inequity perceptions by exploring pay structures Their work helped reinforce equity theory's ongoing relevance

Criticisms point to limits in precise comparison processes and assumptions of purely rational behaviour (McFarlin & Sweeney, 1992; Austin & Walster, 1974) Equity Theory offers valuable insight into the motivating effects of fairness perceptions McFarlin and Sweeney (1992) conducted an experimental study to test specific factors proposed to influence equity sensitivity, an individual difference factor proposed to moderate reactions to inequity in Equity Theory The participants were 179 undergraduate students The researchers measured equity sensitivity constructs, including entitlement and benevolence, by having subjects respond to hypothetical work scenarios, manipulating inputs and outcomes Scenarios also varied situational factors like the cause of inequity and input alternatives Results showed some support for situational moderators Individuals were more tolerant of inequity caused by forces beyond their control than intentional inequities The presence of alternative inputs reduced distress However, the magnitude of moderating effects for situational factors was relatively small Equity sensitivity constructs like entitlement proved more potent and more stable determinants of reactions as anticipated in Equity Theory This study contributed evidence substantiating the role of individual difference moderators as predicted but pointed to a more minor influence of situational moderators than the theory suggested The use of controlled experiments addressed the methodological limitations of prior field studies Identifying boundary conditions for Equity Theory propositions advanced the theory Limitations around generalising experimental findings to real workplaces were acknowledged McFarlin and Sweeney's rigorous work provided valuable nuanced testing that validated and highlighted avenues for refining Equity Theory's conceptual framework based on empirical research

Austin and Walster (1974) conducted a controlled experiment to critically examine some assumptions underlying Equity Theory, notably that individuals consciously and rationally evaluate equity In their first experiment, 79 participants were shown a scenario depicting inequitable resource distribution and asked to rate fairness Results indicated unfairness perceptions occurred even when reasons for inequity were unknown, contrary to rational evaluation A second experiment then manipulated information given about distributions Participants still judged inequity unfair despite explicitly being told reasons that should have justified it according to predictions A final experiment found that the attractiveness of referents impacted fairness judgments inconsistently with cognitively comparing inputs/outcomes as Equity Theory posited Overall, Austin and Walster argued that results supported alternative hypotheses that equity evaluations are automatically derived effectively rather than through deliberate comparison processes By experimentally manipulating the nature and amount of information available, their methodology addressed the limitations of prior correlational field studies While not definitively refuting Equity Theory, this crucial early critique highlighted the need for research exploring intuitive and affective influences beyond its rational actor assumptions The study spurred refinements by prompting consideration of fairness heuristics alongside ratio comparisons in models of motivation Austin and Walster's work significantly advanced the understanding of equity through rigorous empirical questioning of core premises

According to Adams (2003), people rarely accept inequity and often respond by reducing their effort, demanding fairer treatment, or seeking new job opportunities Moreover, when rewards are distributed unfairly, it can result in decreased commitment, increased absenteeism, and poorer organizational performance As a result, achieving equity in rewards should be a top priority for managers However, Thorpe and Homan (2000) point out that the challenges lie in establishing an objective measure of "differential and relativities," such as effort, skills, experience, and needs While rewards should be distributed fairly, there are no perfect methods to achieve this outcome

Prefer (2005) suggests that companies offering better compensation and rewards tend to outperform their competitors who offer lower pay Higher wages are more likely to attract and retain the most motivated and skilled employees, who can serve as the foundation for competitive strategies based on innovation, quality, and price Wood (2006) argues that group-based rewards are more motivating than

focusing solely on individual performance Additionally, involving employees in the design of reward systems and maintaining a high level of internal equity by minimizing the gap between the highest and lowest paid positions, as well as using formal and analytical job evaluation methods, can also serve as motivators

In summary, Equity Theory provides a valuable framework for understanding the role of fair motivations in workplace attitudes and behaviours While debated on certain aspects, continuous empirical research has helped validate its underlying propositions and implications for practice over several decades

1.1.3 Maslow Satisfaction Theory

Maslow strongly believed that only a small fraction of people reach the level of self-actualization due to the scarcity of fulfilling work As a result, self-actualization remains a driving force for most individuals throughout their lives When jobs are scarce, employees are primarily motivated by deficiency needs As jobs become more readily available, social needs emerge as significant motivators in the workplace Once social needs are fulfilled, the intrinsic aspects of the job, such as the level of challenge, responsibility, and autonomy it provides, become increasingly important for employee motivation Maslow's theory suggests that employees will always seek to progress within their organizations In the context of this study, this theory implies that for teachers to be satisfied, they must receive adequate compensation, enjoy good working conditions, have protection against various risks (such as violence, fire, accidents, and disability), maintain positive relationships, and experience high levels of achievement, recognition, and status (Segalla et al., 2006) Considering Maslow's hierarchy of needs theory, the researcher deemed it crucial to assess the level of needs fulfilled among head teachers and subsequently identify the factors that contribute to their job satisfaction and dissatisfaction

De Troyer's (2000) aspect-overall satisfaction theory differentiated between aspect satisfaction and overall satisfaction According to this theory, aspect satisfaction refers to an individual's emotional response to specific job factors, such as compensation, supervision, and promotional opportunities Overall satisfaction, on the other hand, pertains to a person's emotional response to their job as a whole Thus, satisfaction is understood in terms of both job aspects and overall job satisfaction, with the latter being a culmination of feelings of satisfaction across various aspects Lawler's aspect-overall satisfaction approach is considered the most valid method for measuring satisfaction This study is relevant because head teachers must find fulfillment in all aspects of their job to achieve overall job satisfaction These aspects may include compensation, supervision, opportunities for career advancement, and favorable working conditions

Maslow's Satisfaction Theory is widely recognised and influential in organisational behaviour It is based on the premise that human beings have a hierarchy of needs that must be satisfied in order for them to be motivated and fulfilled According to Maslow, the needs hierarchy includes physiological, safety, social, esteem, and self-actualisation needs Maslow's theory suggests that individuals are motivated by different needs at different times and move on to the next level as they satisfy one need For example, a hungry person will be motivated to satisfy their physiological need for food before focusing on other needs, such as safety or social

In the workplace, Maslow's theory suggests that employees will be motivated by different factors depending on their level of need For example, employees struggling to meet their basic physiological needs may be motivated primarily by a desire for higher wages or better working conditions As their needs are satisfied, they may become more motivated by social needs such as the need for recognition or the need for a sense of belonging Additionally, Maslow's theory suggests that self-actualisation is a need that is difficult to satisfy for most people This is because self-actualisation requires a high level of personal growth and development, and many people never reach this level of fulfilment in their lives

Maslow's Satisfaction Theory provides a valuable framework for understanding employee motivation and job satisfaction It highlights the importance of meeting employees' needs at different levels and suggests that job satisfaction is a complex phenomenon that depends on many factors By understanding these factors, organisations can create more fulfilling and motivating work environments for their employees

Table 1.1 Summary of theoretical frameworks on employee’s job satisfaction Factors affecting employee’s

job satisfaction

Theoretical framework

Achievement Herzberg (1959), Adams (1963), Maslow (1954) Recognition Herzberg (1959), Adams (1963), Maslow (1954) Responsibility Herzberg (1959)

The work itself Herzberg (1959) Advancement Herzberg (1959) Personal growth Herzberg (1959)

1.2 Literature review on factors influencing employee job satisfaction 1.2.1 Employees satisfaction

According to Locke (1976), both hygiene factors and motivators play crucial roles in various ways Job satisfaction can be viewed as the outcome of the interaction between an employee and their perception of their job and work environment The factors that influence job satisfaction are diverse, including work values, instability, work rewards, work ethics, personal attributes, working hours, emotions, performance, threats to job stability, work atmosphere, and organizational social concern This finding is supported by several previous studies that observed a significant impact of contingent reward delivery on employee job satisfaction Researchers consistently consider rewarding and encouraging employees as one of the most important motivators Armstrong & Murlis (2006) note that individuals with high levels of job satisfaction tend to have better physical and psychological well-being, which likely leads to increased productivity, effectiveness in their job performance, and a greater likelihood of remaining with an organization for a longer period

Castillo & Cano (2004) suggest that job satisfaction is influenced by a wide range of factors, such as working conditions, the nature of the work itself, supervision, policy and administration, advancement opportunities, compensation, interpersonal relationships, recognition, and empowerment Each individual has a unique set of goals and may be motivated if they believe that there is a strong connection between their efforts and performance; that effective performance will lead to a desirable reward; that the reward will fulfill an important need; and that the desire to satisfy that need is strong enough to make the effort worthwhile Vroom (2004) explains that the motivation to work is dependent on the relationships between expectancy, instrumentality, and valence Expectancy refers to an individual's belief that working hard will result in satisfactory job performance Instrumentality is an employee's belief that successful performance will be followed by rewards, while valence represents the value an individual places on the outcomes

Several studies have been conducted in Kenya on this topic For example, Kimani (2009) investigated the impact of reward systems on performance in small and medium-sized enterprises The study found that reward policies should be designed to compensate employees fairly, equitably, and consistently based on their value to the organization The research also revealed that money was the most significant reward system for employment opportunities, followed by growth, independence, and

responsibility In another study, Wangui (2009) explored the effects of reward systems on performance at the National Registration Bureau The findings suggested that reward systems have an impact on organizational performance Employees should be adequately compensated and provided with comfortable working conditions The study further established that the absence of a reward system negatively affects performance, leading to increased employee turnover The conclusion was that the National Registration Bureau fails to provide training, promotion, motivation, and recognition for their employees' efforts

Job satisfaction refers to people‘s feelings about the benefits they have received Employee satisfaction is how people feel about their jobs and various aspects of their jobs, as suggested by Lawler (1990) Some definitions describe a discriminated attitude in which job satisfaction is seen as satisfaction with various dimensions of the job and the work situation In this approach, job satisfaction is measured by totalling the satisfaction identified for many dimensions of the job and the work situation This type of assessment gives an exact picture of the employee’s total job satisfaction Hence, our study measured job satisfaction using numerous aspects of the job and the work situation According to Locke (1976), job satisfaction is a pleasurable emotional state resulting from the appraisal of one’s job or job experience According to Rainey (1997), job satisfaction is the most frequently studied variable in organisational research that is significant in people's feelings about their jobs and different features This is the exact and best way to know people's likes or dislikes of their jobs (Spector, 1997) Rainey (1997) said that in studying employee fulfilment, employees' satisfaction is extensively read inconsistently in the managerial background, that is, how individuals think about their workplace or job and different aspects Employee satisfaction is an enjoyable or positive emotional state resulting from the appraisal of one’s job or job experience Locke (1976) Rice et al (1989) proposed that “satisfaction is determined, in part, by the discrepancies resulting from a psychological comparison process involving the appraisal of current job experiences against some personal standards of comparison Employee satisfaction is a significant variable that estimates employees' general emotions and thinking about their job and workplace Thus, employee satisfaction is related to the employee's hopes about the workplace and his approaches to his job Job satisfaction is a function of the extent to which one’s needs are satisfied (Togia et al., 2004)

According to Porter and Lawler (1968), there are three types of performance First is the evaluation of output rates, the amount of sales over a given period, the

production of a group of employees reporting to the manager, and so on The second type of performance evaluation considers ratings of individuals by someone other than the person whose performance is being considered The third type of performance measures is self-appraisal and self-ratings As a result, the acceptance of self-appraisal and self-rating techniques is helpful in promising employees to take an active role in setting their own goals According to Hersey and Blanchard (1993), job performance measures the level of success of business and social aims and responsibilities from the perspective of the judging party It is an unclear concept used in different organisations (the branch of psychology that deals with the workplace) It is also a part of Human Resource Management Goris, Vaught and Pettit (2003) were among those who researched this subject and took it into renown to solve the problems It is mainly used to judge whether a person performs their job well or not An employee's performance is determined during job performance reviews (Currall et al., 2005) say there is a demand for very skilled, skilled and qualified employees in the labour market The output and production of an organisation are measured in terms of the performance of its workforce Knowing about job satisfaction and better workforce performance is a good way (Sousa-Poza & Sousa-Poza, 2000) Nanda and Brown (1977) explored the important employee performance pointers at the hiring stage We concluded that job satisfaction and motivation levels affect the employee’s efficiency Moreover, it has become a predicament for human resource experts to keep the performer (Sumita, 2004) Meyer (1999) proposes that low job satisfaction badly affects employee commitment and successively affects the achievement of organisational objectives and performance achievement

Mobley (1977) states that Turnover intention, in his words, is a desire or intention to leave the job voluntarily Moreover, it can be described as switching the job intentionally or leaving the labour market A thoughtful intention and willingness to switch organisations is considered a Turnover intention, as suggested by (Tett & Meyer, 1993) Leaving the department or organisation at its desire is turnover intention (Tett & Meyer, 1993) Whenever the satisfaction level of an employee is raised, it depicts a strong negative relationship with the turnover intention construct argued by (Muchinsky & Morrow, 1980; Trevor, 2001; Rizwan et al., 2013) When the employee is not given what he deserves and is not pleased with the job, the employee intends to discontinue the job However, when the employees are happy and satisfied with their jobs, the intention of saying goodbye to the organisation reduces to an extent Job satisfaction and turnover intentions are inversely proportional concepts, and it is a