Khóa luận tốt nghiệp tiếng anh: The relationship study between Organizational Commitment and Job Satisfaction at Ministry of Industry and Trade in Vietnam

Khóa luận tốt nghiệp tiếng anh đại học ngoại thương 2014: The relationship study between Organizational Commitment and Job Satisfaction at Ministry of Industry and Trade in Vietnam Keywords: Organizational Commitment, Job Satisfaction, Ministry of Industry and Trade Research Method: Quantitative Method CHAPTER 1: INTRODUCTION 1.1 Research Background 1.2 Research motivation 1.3 Research Questions 1.4 Research purposes 1.5 Research Procedure CHAPTER 2: LITERATURE REVIEW 2.1 Oganization Commitment 2.2. Job Satisfaction 2.3 The relationship between Organizational Commitment and Job Satisfaction CHAPTER 3: RESEARCH MOTHODOLOGY 3.1 Research model 3.2 Research hypotheses 3.3 Measurement of Variables 3.4 Research design 3.5 Data analysis methods

The relationship study between Organizational Commitment and Job Satisfaction at Ministry of Industry and

Trade in Vietnam

Student : Cao Trong Quy Advisors: Dr Jau-Shyong Wang

Dr Sheng-Jung Li Co-advisor: Dr Nguyen Thi Hien

2.3 The relationship between Organizational Commitment and Job Satisfaction

CHAPTER 3: RESEARCH MOTHODOLOGY

CHAPTER 4: DATA ANALYSIS

4.1 Sample Description

4.2 Reliability and Validity of Variables

4.3 Explore factor analysis

4.4 Descriptive Statistics of research Variables4.5 Hypothesis Test

4.6 Discussion from research results

CHAPTER 5: CONCLUSION

5.1 Conclusions

5.2 Recommendations

5.3 Limitations of the study

5.4 Directions for further researches

CHAPTER 1 INTRODUCTION

1.1 Research Background

In a world increasingly characterized by globalization, the importance of human capital as a resource that can potentially provide competitive advantage has become more important Because a firm’s people are integral to its success, researchers interested in managing human capital have increasingly focused on human resource practices as the levers through which firms might build the human capital that makes up resources and capabilities

Improve work efficiency and good performance of the organization is

committed to becoming increasingly important not only for government

agencies, but also state-owned enterprises, private enterprises and foreign

enterprises Therefore, the need to study the relationship between

organizational commitment and job satisfaction is more urgent than ever

The purpose of this study is to gain a better understanding of the

relationship between organizational commitment and job satisfaction at

Ministry of Industry and Trade in Vietnam

CHAPTER 1 INTRODUCTION

Information about the Ministry of Industry and Trade

Ministry of Industry and Trade of the Government agencies, performing the function of state management of industry and trade, including the sectors of engineering, metallurgy, electricity, new energy, renewable energy, oil and gas, chemicals, industrial explosives, industrial, mining and mineral processing,

consumer goods, industrial food processing and other industrial, commercial and domestic markets; import and export, border trade, foreign market

development, market management, trade promotion, e-commerce, trade

services, international economic integration, competition management,

application the safeguard measures, anti-dumping, anti-subsidy and protection

of consumer rights; State management of public services in the sectors under its state management

CHAPTER 1 INTRODUCTION

1.2 Research motivation

First, research on the relationship between organizational commitment and job satisfaction at the Ministry of Industry and Trade has not been done in a systematic way Therefore, it is necessary to make a systematic study of science

Second, research on the relationship between organizational commitment and job satisfaction in Vietnam now focuses only on a small scale, so the reliability of the expansion of research results to be limit

This research is undertaken in order to determine the relationship between organizational commitment and job satisfaction at the Ministry of Industry and Trade in Vietnam and to identify which among the four components of

organizational commitment (affective, continuance, normative and value

organizational commitment) is the most important driver that relates to job

satisfaction It is seen that in some of the empirical surveys, the relations among organizational commitment (Allen et.al 2000; Vandenberg & Scarpello, 1994;

Meyer, Allen & Smith 1993; Wang, 2004), job satisfaction (Morrow 1993; Meyer, Allen & Smith 1993; D J Weiss, Dawis, England & Lofquist 1967) were studied.

CHAPTER 1 INTRODUCTION

1.3 Research Questions

This study was conducted to find out the answers to these elements of organizational commitment affect the job satisfaction of officials of the the Ministry of Industry and Trade Therefore, the research question was posed as follows:

- What is the relationship between organizational commitment and job satisfaction?

- How is the current level of job satisfaction with organizational

commitment?

- Which main factors affect job satisfaction with organizational

commitment?

CHAPTER 1 INTRODUCTION

1.4 Research purposes

This study has main purposes as follows:

- To measure the status of the Job Satisfaction of officials

- To determine the impact of factors affecting Job Satisfaction of officials

- To identify the main factors affecting Job Satisfaction with

Organizational Commitment

- To measure the intensity of the impact of each element of Organizational Commitment to Job Satisfaction

CHAPTER 1 INTRODUCTION

1.5 Research Procedure

The research procedures are described as following table:

CHAPTER 2 LITERATURE REVIEW

2.1 Oganization Commitment

2.1.1 Organizational Commitment Definition

Organizational commitment has been studied extensively in Western

management research and remains of substantial importance to managers (Meyer et al., 2002) Mowday et al (1982) define it as an attitude in the form of an

individual’s identification with and involvement in a particular organization

2.1.2 Organizational Commitment Models

Kanter’s Model (1972); Steers’ Model (1977); Angle and Perry’s Model

(1981); O’reilly and Chatman’s Model (1986); Penley and Gould’s Model (1988); Mathieu and Zajac’s Model (1990); Jaros et al.’s Model (1993); Allen and Meyer’s Model (1990); Wang’s Model in a Chinese Context (2004) Wang (2004) conducted

a confirmatory factor analysis to test the appropriateness of her model as well as models from other researchers The results showed that her five-component model was best suited to the data collected in her studies of both state-owned and foreign- investment enterprises in China than the models by Meyer and Allen (1991) and Ling et al (2001) The five components are: (i) normative, (ii) value, (iii) affective, (iv) active, and (v) passive continuance

CHAPTER 2 LITERATURE REVIEW

2.2 Job Satisfaction

2.2.1 Job Satisfaction Definition

Locke (1969, 1976) defined job satisfaction as "a pleasurable or positive emotional state resulting from the appraisal of one's job or job experiences" Job satisfaction is define as the feelings or a general attitude of the employees

in relation with their jobs and the job components such as the working

environment, working conditions, equitable rewards, and communication with the colleagues (Glisson and Durick, 1988; Kim, 2005)

2.2.2 Dimensions of Job Satisfaction

Locke (1976, cited in Sempane et al., 2002) presented a summary of job dimensions that have been established to contribute significantly to employees' job satisfaction The particular dimensions represent characteristics associated with job satisfaction The dimensions are work itself, pay, promotions,

recognition, working conditions, benefits, supervision and co-workers

CHAPTER 2 LITERATURE REVIEW

Minnesota satisfaction questionnaire (Minnesota Satisfaction Questionair - MSQ) of Weiss et al (1967), following is a list of the MSQ scales: (1) Ability utilization (2) Achievement (3) Activity (4) Advancement (5) Authority (6)

Company policies and practices (7) Compensation (8) Co-workers (9) Creativity (10) Independence (11) Moral value (12) Recognition (13) Responsibility (14) Security (15) Social service (16) Social status (17) Supervision-human relations (18) Supervision-Technical (19) Variety (20) Working conditions

2.3 The relationship between Organizational Commitment and Job Satisfaction

Past research has found a positive correlation between job satisfaction and organizational commitment (Mathieu & Zajac, 1990) Williams and Hazer (1986) found a direct link between job satisfaction and organizational commitment,

whereby job satisfaction is an antecedent of organizational commitment

CHAPTER 3 RESEARCH MOTHODOLOGY

3.1 Research model

This study aims to identify the relationship between organizational

commitment and job satisfaction This is a quantitative study using survey

methodology to examine the relationship between independent and dependent variables Independent variable consists of one variable that is organizational

commitment with three main focus affective commitment, continuance

commitment, normative commitment and value commitment (Wang 2004)

Dependant variable consists of one variable and that is job satisfaction

The theoretical framework for this study is as shown in Figure

CHAPTER 3 RESEARCH METHODOLOGY

3.2 Research hypotheses

Based on literature on job satisfaction and organizational commitment studied

in previous chapter, past researchs has found a positive correlation between job satisfaction and organizational commitment (Mathieu & Zajac, 1990), a direct link between job satisfaction and organizational commitment (Williams & Hazer,

1986), Job satisfaction and organizational commitment have been shown to be positively related to performance (Benkhoff, 1997; Klein & Ritti, 1984) The vast majority of research indicates a positive relationship between satisfaction and

commitment (Aranya, Kushnir & Valency, 1986; Boshoff & Mels, 1995; Harrison

& Hubbard, 1998; Johnston et al., 1990; Knoop, 1995; Kreitner & Kinicki, 1992; Morrison, 1997; Norris & Niebuhr, 1984; Ting, 1997) So this gives out following hypothesis:

There are positive relationship between components of organizational

commitment and job satisfaction

CHAPTER 3 RESEARCH METHODOLOGY

3.3 Measurement of Variables

For the Independent Variable:

CHAPTER 3 RESEARCH METHODOLOGY

3.3 Measurement of Variables

For the Dependant variable:

CHAPTER 3 RESEARCH METHODOLOGY

3.4 Research design

3.4.1 Building investigation questionnaire

3.4.2 Scale selection for questionnaire (5-point likert )

3.4.3 Questionnaire design

3.4.4 Sample selection

3.5 Data analysis methods

3.5.1 Descriptive statistics

3.5.2 Testing the reliability of scales for factors

3.5.3 Explore factor analysis

3.5.4 Naming and adjusting the research model

3.5.5 Evaluating satisfaction level on each factor and general satisfaction

3.5.6 Correlation and regression analysis

3.5.7 Testing research hypotheses

CHAPTER 4 DATA ANALYSIS

Sample Description

CHAPTER 4 DATA ANALYSIS

RESEARCH RESULT

After conducting factor analysis to categorize groups of variables into four factors as in

Table 5 (Rotated Component Matrixa with independent variables), we proceed to average the variables of the following factors Start making a turn for the factors of variables Affective Commitment on AC_factor1 = ( AC1 + AC2 + AC3 + CC1 + CC2 + CC3 + CC4)/7; the

factors of variables Continuance Commitment on CC_factor2 = (CC5 + CC6 + CC7)/3; the factors of variables Normative Commitment NC_factor3 = (NC2 + NC3 + VC4)/3 and

finally the factors of variables Value Commitment VC_factor4 = (VC1 + VC2)/2.

Hypothesis testing between components of Organizational Commitment and satisfaction_1

The dependent variable, Satisfaction_1 are S_1 = (JS3 + JS5 + JS6 + JS12 + JS13 + JS14 + JS15 + JS16)/8 After all preparation steps related variables and models based on the results of factor analysis to reorder the following statistical hypothesis

H1: Affective Commitment (AC_factor1) will positively affect the Satisfaction_1

H2: Continuance Commitment (CC_factor2) will positively affect the Satisfaction_1

H3: Normative Commitment (NC_factor3) will positively affect the Satisfaction_1

H4: Value Commitment (VC_factor4) will positively affect the Satisfaction_1

CHAPTER 4 DATA ANALYSIS

results of factor analysis to reorder the following statistical hypothesis

H’1: Affective Commitment (AC_factor1) will positively affect the

CHAPTER 4 DATA ANALYSIS

RESEARCH RESULT

Hypothesis testing between components of Organizational Commitment and satisfaction_3

The dependent variable, Satisfaction_3 are S_3 = (JS17 + JS18 + JS19 +

JS20)/4 After all preparation steps related variables and models based on the

results of factor analysis to reorder the following statistical hypothesis

H’’1: Affective Commitment (AC_factor1) will positively affect the

CHAPTER 4 DATA ANALYSIS

RESEARCH RESULT

CHAPTER 4 DATA ANALYSIS

RESEARCH RESULT

CHAPTER 4 DATA ANALYSIS

RESEARCH RESULT

CHAPTER 4 DATA ANALYSIS

RESEARCH RESULT

From the analysis above shows that the Affective Commitment and some

factors of the Continuance Commitment to positively influence the level of Job Satisfaction (H1, H’1, H’’1) Continuance Commitment to the positive influence

of several factors in job satisfaction as: Social status, Moral value, Security, Social service, Authority (H’2) Normative Commitment to the positive influence of

several factors in job satisfaction as: Variety, Supervision-human relations,

Supervision-Technical, Company policies and practices, Compensation,

Advancement, Responsibility, Creativity (H3) Value Commitment to the positive influence of several factors in job satisfaction as: Working conditions, Co-

workers, Recognition, Achievement (H’’4)

CHAPTER 5 CONCLUSIONS

5.1 Conclusions

Linear regression showed that:

Affective Commitment and some elements of the Continuance Commitment

(training opportunities, realize goals, knowledge and opportunities for promotion) positive impact on Job Satisfaction of officials of the Ministry of Industry and Trade Continuance Commitment to the positive influence of satisfaction_1 as Social status, Moral value, Security, Social service, Authority

Normative Commitment to the positive influence of several factors in job

satisfaction_2 as Variety, Supervision-human relations, Supervision-Technical,

Company policies and practices, Compensation, Advancement, Responsibility,

Creativity

Value Commitment to the positive influence of several factors in job satisfaction_3 as: Working conditions, Co-workers, Recognition, Achievement

CHAPTER 5 CONCLUSIONS

5.2 Recommendations

For factor Affective Commitment: Ministry of Industry and Trade should focus on

implementing the commitment to make good feel more satisfied for officials as (i) I

am extremely glad that I chose Ministry of Industry and Trade to work for over

others I was considering at the time I joined, (ii) I talk up Ministry of Industry and Trade to my friends as a great company to work for, (iii) I am proud to tell others that

I am part of Ministry of Industry and Trade, (iv) I work for Ministry of Industry and Trade because it provides me with many on-the-job training opportunities, (v) I work for Ministry of Industry and Trade because it is a good chance to realize my goals, (vi) I work for Ministry of Industry and Trade because I can make full use of what I have learned here, (vii) I work for Ministry of Industry and Trade because there are many opportunities for promotion The successful implementation of elements of

emotional commitment will make job satisfaction of officials

CHAPTER 5 CONCLUSIONS

5.2 Recommendations

For factor Continuance Commitment: Ministry of Industry and Trade

should focus on implementing the commitment to make good feel more satisfied for officials as (i) I work for Ministry of Industry and Trade because I cannot find

a better one, (ii) I cannot quit the job arbitrarily because I have to suppose my family, (iii) I work for Ministry of Industry and Trade because I do not want to lose my fringe benefits The successful implementation of elements of emotional commitment will make satisfaction_1 as Social status, Moral value, Security,

Social service, Authority