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Understanding the level of job satisfaction of staff and determining the factors that significantly impact employee job satisfaction may help top management of international companies fi

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MBAVB2

LE QUANG ÑINH

EXAMINING FACTORS AFFECTING TO EMPLOYEE’S

JOB SATISFACTION IN INTERNATIONAL

COMPANIES IN HO CHI MINH CITY

VIETNAM

MASTER PROJECT MASTER IN BUSINESS ADMINISTRATION

(PART-TIME)

Tutor’s Name: Dr Nguyen Van Ngai

Ho Chi Minh City

(2012)

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All data and information have been collected by reliable sources, there is no plagiarism

in this study

Ho Chi Minh City, November 12th, 2012

LE QUANG DINH

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First of all, I would like to express my deeply gratitude to all professors of the Open University of Ho Chi Minh City and University Libre De Bruxelles – Solvay Business School who give me valuable knowledge in business administration

I would like to express my special thank to Dr Nguyen Van Ngai, my tutor for his value guidance and continue support for my study

I also would like to thank to my classmate in MBAVB2, who usually share valuable knowledge

Finally, I would like to say a best thank to my parent and my mini family, who are all the time standing beside me to encourage for the project completing

Ho Chi Minh City, November 12th, 2012

LE QUANG DINH

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TABLE OF CONTENTS

Page Commitment i

Acknowledgment ii

Tutor’s remark iii

Table of contents iv

Abbreviation vi

List of figures vii

List of tables vii

CHAPTER 1: INTRODUCTION 1

1.1 RATIONALE OF STUDY 1

1.2 PROBLEM STATEMENT 1

1.3 STUDY OBJECTIVES 1

1.4 RESEARCH QUESTIONS 2

1.5 HYPOTHESES 2

1.6 SCOPE OF STUDY 3

1.7 RESEARCH METHODOLOGY 3

1.8 STRUCTURE OF THE PROJECT 4

CHAPTER 2: LITERATURE REVIEW 5

2.1 JOB SATISFACTION THEORIES 5

2.1.1 Abraham MaslowTheory(1943) 5

2.1.2 The two-factor theory (Frederick Herzberg,1968) 9

2.1.3 Expectancy theory (Victor H Vroom, 1964) 12

2.1.4 Equity theory (John Stacey Adams, 1963) ……… 13

2.2 JOB SATISFACTION AND BEHAVIORS IN THE WORKPLACE 14

2.2.1 Job satisfaction and job performance 14

2.2.2 Motivation and job satisfaction 15

2.2.3 Organizational commitment and job satisfaction 16

2.2.4 Job satisfaction and absenteeism 16

2.2.5 Job satisfaction and turnover 17

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2.3 FACTORS AFFECT JOB SATISFACTION 17

2.3.1 Age 17

2.3.2 Gender 18

2.3.3 Year of Service 18

2.3.4 Intrinsic and extrinsic factors 18

2.3.5 Income 19

2.4 STUDIES ON JOB SATISFACTION IN VIETNAM 20

2.5 METHODOLOGY USED IN PAST STUDIES 20

CHAPTER 3: RESEARCH METHODOLOGY 22

3.1 RESEARCH METHODS AND DESIGN 24

3.2 OPERATIONAL DEFINITION OF VARIABLES 25

3.3 INSTRUMENTS 26

3.4 PARTICIPANTS 27

3.5 DATA COLLECTION, PROCESSING, AND ANALYSIS 27

CHAPTER 4: FINDINGS 30

4.1 SAMPLE DESCRIPTIVE STATISTICS 30

4.2 RELIABILITY OF THE INSTRUMENT 31

4.3 TESTING HYPOTHESIS 31

4.3.1 Research question 1 31

4.3.2 Research questions 2 to 5 33

CHAPTER 5: IMPLICATIONS, RECOMMENDATIONS and CONCLUSIONS 45

5.1 IMPLICATIONS 45

5.2 RECOMMENDATIONS 47

5.3 CONCLUSIONS 48

BIBLIOGRAPHY 49

APPENDICES 51

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LIST OF FIGURES

Figure 1 Histogram of general satisfaction 35

Figure 2 Normal Q-Q plot of general satisfaction 36

Figure 3 Detrended normal Q-Q plot of general satisfaction 36

Figure 4 Scatter plot of general satisfaction 37

Figure 5 Normal P-P plot of regression standardized residual for general satisfaction 40 Figure 6 Scatter plot of regression standardized predicted value for general satisfaction 41

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LIST OF TABLES

Table 1: Operational Variables 23

Table 2: MSQ-SF Scoring Methodology 26

Table 3: Gender 30

Table 4: Cronbach’s Alpha of Job Satisfaction Scores (N = 139) 31

Table 5: Group Statistic 32

Table 6: Independent t test of general satisfaction and gender 32

Table 7: Descriptive Statistics 34

Table 8: Descriptive Statistics of General Satisfaction 34

Table 9: Normality Test of General Satisfaction 35

Table 10: Pearson Correlations 38

Table 11: Collinearity Test of Independent Variables 38

Table 12: Test of Residuals 39

Table 13: Case wise diagnostic 41

Table 14: Model Summary 42

Table 15: Anova table 42

Table 16: Coefficients Table 43

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CHAPTER 1: INTRODUCTION

1.1 RATIONALE OF STUDY

Job satisfaction plays a pivotal role in human resources management and success of organizations Job satisfaction relates to many aspects in organizations Job satisfaction is considered to positively relate to job performance and organizational commitment and negatively impact on absenteeism, intent to leave companies, and organizational negative behaviors

1.2 PROBLEM STATEMENT

The problem to be addressed in this study was the low level of job satisfaction of employees in Vietnam According a Gallup survey conducted in 2011, Vietnamese employees are least happy among Asian workers (Yu & Lyons, 2012) Results of the survey conducted with 1,000 employees in 22 countries in Asia showed that only 48%

of Vietnamese participants were happy with their job, which made Vietnam was at the bottom of the list of happy employees in Asia (Yu & Lyons, 2012) Many studies of job satisfaction were conducted with employees at local companies (Dieleman et al., 2003; Hung et al, 1999; Nguyen, 2008) while rarely international companies were studied on employee job satisfaction Understanding the level of job satisfaction of staff and determining the factors that significantly impact employee job satisfaction may help top management of international companies find the ways to improve the level of employee job satisfaction and augment the competitiveness in Vietnam market

1.3 STUDY OBJECTIVES

The objective of this study were (1) to examine the relationship between demographic factors (gender, age, year of service) and general job satisfaction of employees at international companies in Ho Chi Minh City in Vietnam and (2) to determine which factors (age, year of service, intrinsic, and extrinsic factors) that best predict general job satisfaction of employees at international companies in Ho Chi Minh City, Vietnam

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1.4 RESEARCH QUESTION

In order to examine the relationship between demographic factors (gender, age, year of service), intrinsic factors, and extrinsic factors and general job satisfaction of employees at international companies in Ho Chi Minh City, Vietnam, the following research questions were addressed

RQ1. Is there a significant difference on general job satisfaction between male and female employees at international companies in Ho Chi Minh City?

RQ2. To what extent, if any, does age relate to general job satisfaction of employees

at international companies in Ho Chi Minh City?

RQ3. To what extent, if any, does year of service relate to general job satisfaction of employees at international companies in Ho Chi Minh City?

RQ4. To what extent, if any, do intrinsic factors relate to general job satisfaction of employees at international companies in Ho Chi Minh City?

RQ5. To what extent, if any, do extrinsic factors relate to general job satisfaction of employees at international companies in Ho Chi Minh City?

1.5 HYPOTHESES

The null and alternative hypotheses of the study are:

H1 0. There is no difference on general job satisfaction between male and female

employees at international companies in Ho Chi Minh City

H1 a There is a significant difference on general job satisfaction between male and female employees at international companies in Ho Chi Minh City

H2 0 Age is not significantly correlated to general job satisfaction of employees at international companies in Ho Chi Minh City

H2a . Age is significantly correlated to general job satisfaction of employees at

international companies in Ho Chi Minh City

H3 0 Year of service is not significantly correlated to general job satisfaction of

employees at international companies in Ho Chi Minh City

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H3a . Year of service is significantly correlated to general job satisfaction of employees

at international companies in Ho Chi Minh City

H4 0 Intrinsic factors are not significantly correlated to general job satisfaction of employees at international companies in Ho Chi Minh City

H4a . Intrinsic factors are significantly correlated to general job satisfaction of

employees at international companies in Ho Chi Minh City

H5 0 Extrinsic factors are not significantly correlated to general job satisfaction of employees at international companies in Ho Chi Minh City

H5a . Extrinsic factors are significantly correlated to general job satisfaction of

employees at international companies in Ho Chi Minh City

1.6 SCOPE OF STUDY

The population of the study included employees at international companies in Ho Chi Minh City, Vietnam Participants of the study included employees who voluntarily participate in the survey Participants of the study were managers and staff who work full-time for the companies

software is used to analyze the data Independent samples t test was used to answer

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RQ1 Pearson’s correlation tests and multiple regression analyses were used to answer RQ2, 3, 4, and 5

1.8 STRUCTURE OF THE PROJECT

Chapter 1: Introduction

The problem statement, objectives of the study are presented in this chapter Research questions and associated sets of hypotheses are mentioned The scope of the study and methodology are also discussed in this chapter

Chapter 2: Literature review

In the literature review, job satisfaction and the relationship with other constructs in the workplace (job performance, organizational commitment, absenteeism, and turnover) are discussed Past studies related to factors that affect general job satisfaction are reviewed in the chapter Finally, research on job satisfaction conducted in Vietnam is presented

Chapter 3: Research methodology

In this chapter, the methodology that is used in the study is discussed thoroughly Methods to collect data and analyze data are presented

Chapter 4: Findings

Results of the data analysis are discussed in this chapter The results are used to evaluate the hypotheses and answer the research questions Comparison the results of this study and previous studies is discussed at the end of the chapter

Chapter 5: Recommendations and conclusions

Conclusions of the study are presented in this chapter Recommendations for practical application are mentioned

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CHAPTER 2: LITERATURE REVIEW

The search for literature and the organization of this chapter was developed around the key constructs of this study The literature search and consequently this chapter include sections related to the areas of job satisfaction and other organizational constructs Gaps and inconsistencies in the literature are highlighted in this literature review, such as the conflicting findings related to whether gender, age, year of service

is related to job satisfaction

In the first section I will present job satisfaction and the relationship between job satisfaction and other constructs in the workplace Next I will continue a discussion of relationship between job satisfaction and gender, age, year of service, intrinsic and extrinsic factors I also mention studies on job satisfaction in Vietnam Finally, the key points of the chapter are presented in a summary

2.1 JOB SATISFACTION THEORIES

Job satisfaction is defined as emotional response by an employee concerning different aspects of a job Job satisfaction is also viewed as a systematic phenomenon where an employee evaluates various attributes of a job

2.1.1 Abraham Maslow Theory (1943)

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According to Maslow’s hierarchy of needs, human needs motivate action People’s needs follow a hierarchy from lower-level needs (e.g., the need for food and shelter) to higher-level needs (e.g., social needs and self-esteem needs) Employees’ behaviors are affected by the satisfaction of the needs listed in the above hierarchy

Physiological needs

Physiological needs are the physical requirements for human survival If these requirements are not met, the human body cannot function properly, and will ultimately fail Physiological needs are thought to be the most important They should be met first They are air, water, and food that need for survival of all animals, including humans

Safety needs

The needs for safety and security Security needs are important for survival, but they are not as demanding as the physiological needs Examples of security needs include a desire for a steady employment, health insurance, and shelter from the environment With physical needs relatively to satisfy, the individual's safety needs to take dominate the behavior In the absence of physical safety like war, natural disaster, family violence and in the absence of economic safety such as economic crisis and lack

of work opportunities

Safety and Security needs include:

Personal security

Financial security

Health and well-being

Safety against accidents/illness

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Love and belonging

According to Maslow, the need for love and belonging includes the range of intimacy between people, compassion, sympathy, a sense of having a place in the world, being part of a community, feeling accepted and approved of rejection and disapproval, attention, and affection Situations which would help to satisfy the need for love and belong will include in the following examples:

Friendship

Engaging in social activities with others

Active participation in classes, clubs, and communities

Working in cooperative and learning groups

Working cooperatively with others on a project

Intimacy

Family

Physical or emotional of a child by a parent

After physiological and safety needs are fulfilled, the third level of human needs is interpersonal and involves feelings of the belongingness This need is especially strong

in childhood and can override the need for safety as children who needs take care from parents

Humans need to love and be loved Many people become sensitive to loneliness, social anxiety, and depression in the absence of the love or belonging elements This need for belonging may overcome the physiological and security needs

Esteem

All humans have a need to feel respected This includes the need to have esteem and self-respect Esteem presents for the human’s desire to be accepted and valued by others People often engage in a profession way to be recognition These activities give the person a sense of contribution or value Low self-esteem may result

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self-from imbalances during this level in the hierarchy People with low self-esteem often need respect from others

Most people have a need for a stable self-respect and self-esteem From Maslow, there are two versions of esteem needs: a 'lower' and a 'higher' version The 'lower' version of esteem is the need for respect from others This may include a need for status, recognition, famous, prestige, and attention The 'higher' version is the need for self-respect For example, the person may have a need for strength, competence, mastery, self-confidence, independence, and freedom This 'higher' version takes priority on the 'lower' version because it relies on an inner competence established through experience

Self-actualization

This level of need refers to what a person's full potential is and the realization of that potential Maslow describes this level as the desire to accomplish everything that people can do to become the most that they can be For example, a person may have a strong desire to become a billionaire, the other person may be expressed to be president

Maslow’s hierarchy is very important to managers or leaders of company or organization The managers or leaders want to motivate employee to working

productivity, they should understand where is employee was in levels of hierarchy Well understanding help managers or leaders making a suitable decision or solution to job satisfaction of employee (Nguyen Huu Lam, 1996, page 119-121)

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Therefore, managers or leaders need to study and research for understand to offer the right needs of employee in order to have corresponding solutions in Human resource management For example: A freshman who has just recruited for company or organization, the most important things is giving a job and basic salary that is first priority in the circumstance In contradiction, an experience employee needs for promotion which is most important

2.1.2 The two-factor theory (Frederick Herzberg, 1968)

The two-factor theory of job satisfaction was developed and the focus of the theory was that different factors caused job satisfaction and job dissatisfaction (Herzberg, 1968) Motivators (i.e., achievement, promotion, and recognition) can lead

to job satisfaction Dissatisfied with hygiene factors (i.e., pay, working conditions, and company policies) may cause job dissatisfaction Thus, job satisfaction and job dissatisfaction were viewed as two different factors rather than opposite each other

According to the two factor theory of F Herzberg, peoples are influenced by two factors Satisfaction and psychological growth was a factor of motivation Dissatisfaction was a result of hygiene factor

Hygiene factors are needed to ensure an employee does not become dissatisfy They do not lead to higher levels of motivation, but without them there is

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dissatisfaction Hygiene factors are those job factors which are essential for existence

of motivation at workplace These factors do not lead to positive satisfaction for term But if these factors are absent at workplace, then they lead to dissatisfaction

In other words, hygiene factors are those factors which reasonable in a job, and

do not make employee come to dissatisfy These factors are extrinsic to work Hygiene factors are required to avoid dissatisfaction These factors describe the job environment The hygiene factors symbolized the physiological needs which the individuals wanted and expected to be fulfilled

Motivation factors are needed in order to motivate an employee into a higher performance These factors come from internal generation of employee

According to Herzberg, the motivational factors address to positive job satisfaction These factors belong to work and motivate the employees for a higher performance The are involved in performance of the job Employees find these factors intrinsically rewarding The motivators symbolized the psychological needs that were perceived as

an additional benefit

Typical of Hygiene factors:

Working condition: The working conditions should be safe, clean and hygienic The work equipments should be updated and well-maintained

Status: The employees’ status within the organization should be familiar and retained

Job Security: The organization must provide job security to the employees

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Company policies and administration: The company policies should not be too rigid They should be fair and clear It should include flexible working hours, vacation

Interpersonal relation: The relationship of the employees with his peers, superiors and subordinates should be appropriate and acceptable There should

be no conflict

Typical of motivation factors:

Achievement: The employees must have a sense of achievement This depends

Interest in job: The work itself should be meaningful, interesting and challenging for the employee to perform and to get motivation

Growth and promotional opportunities: There must be growth and advancement opportunities in an organization to motivate the employees to perform well

Limitations of Two-Factor Theory

The two factor theory is not free from limitations:

The two-factor theory overlooks situational variables

Herzberg assumed that a correlation between satisfaction and productivity But the research conducted by Herzberg stressed upon satisfaction and ignored productivity

No comprehensive measure of satisfaction was used An employee may find his job acceptable despite the fact that he may hate his job

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The two factor theory is not free from bias as it is based on the natural reaction

of employees when they are enquired the sources of job satisfaction and dissatisfaction at work They will blame dissatisfaction on the external factors such as salary structure, company policies and peer relationship Also, the employees will give credit to themselves for the satisfaction factor at workplace

Implications of Two-Factor Theory

The Two-Factor theory implies that the managers or leaders must stress on guaranteeing the suitable of the hygiene factors to avoid employee dissatisfaction Also, they must make sure that the work is stimulating and rewarding so that the employees are motivated to work and perform harder and better This theory emphasize on job-enrichment to motivate the employees The job must utilize the employee’s skills and competencies to the maximum effort Focusing on the motivational factors can improve work-quality

2.1.3 Expectancy theory (Victor H Vroom, 1964)

Expectancy theory proposes that a person will decide to behave or act in a certain way because they are motivated to select a specific behavior over other behaviors due to what they expect the result of that selected behavior will be The motivation of the behavior selection is determined by the desirability of the outcome However, at the core of the theory is the cognitive process of how an individual

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processes the different motivational elements This is done before making the ultimate choice The outcome is not the sole determining factor in making the decision of how to behave

Victor H Vroom (1964) defines motivation as a process governing choices among alternative forms of voluntary activities, a process controlled by the individual The individual makes choices based on estimates of how well the expected results of a given behavior are going to match up with or eventually lead to the desired results Motivation is a product of the individual’s expectancy that a certain effort will lead to the intended performance, the instrumentality of this performance to achieving a certain result, and the desirability of this result for the individual, known as valence

Therefore, to motivating employee manager or leader needs to pay high intention to employee’s awareness and expectation which address to situation, reward, easy way for themselves to take reward and make sure the reward is correctly sent to employee Expectancy theory requests managers or leaders must understand employee’s expectation together with company or organization goal Manager or leaders should create the essential work to achieve company or organization’ goal, ensure the goal can be reached, evaluate real situation forward to different expectation

in order to make sure the reward is attractive to employee and fair to all (Nguyen Huu Lam, 1996, page 127-128)

2.1.4 Equity theory ( John Stacey Adams, 1963)

Equity theory is a motivational theory which was developed by John Stacey

Adams in 1963, a workplace and behavioral psychologist, who asserted that employees seek to maintain equity between the inputs that they bring to a job and the outcomes that they receive from it against the perceived inputs and outcomes of others

According to theory, generating a strong equality will help to reinforce relationship with employee to motivate and enhance their job satisfaction It will make

a highly productivity of employee and stabilize turnover in company Whereas, employee will lose their working interesting and enthusiasm in work if they do feeling

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contribute more but less reward Some examples of dissatisfaction: decrease enthusiasm which depend on their perceive on equality, none effort, easy to be angered, or even intend to leave company or organization Thus, equity theory is very useful for manager or leader to enhance employee job satisfaction

The equity theory request to manager or leaders must consider to factors affect

on employee’s awareness to equality and act to help employee has their own awareness about equality (Nguyen Huu Lam, 1996, page 129-130)

In the next section the relationship between job satisfaction and other organizational constructs are discussed The constructs include job performance, motivation, customer satisfaction, tardiness, absenteeism, and turnover Literature on factors relating to job satisfaction is presented next

2.2 JOB SATISFACTION AND BEHAVIORS IN THE WORKPLACE

In the past, thousands of studies have examined the relationship between job satisfaction and other important organizational variables For example, studies showed that satisfied workers are more productive and perform better (Souza-Poza & Souza-Poza, 2000) The research has further demonstrated that low job satisfaction can lead to higher absenteeism and turnover Rogers et al (1994) have further demonstrated that there is a relationship in service industries between employee and customer

satisfaction Additionally, many studies showed the link between job satisfaction and worker health Finally, job satisfaction is an important predictor of overall well-being

2.2.1 Job satisfaction and job performance

The first attempts to study the impact of job satisfaction on job performance occurred in the 1930s via the Hawthorne studies Since then, the relationship between the two constructs had become one of the greatest topics within research on

organizational behavior Many studies were conducted to explain the link between job satisfaction and job performance The unclear relationship between the two variables

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was showed in some studies, whereas other studies supported the significant job

satisfaction-job performance association (Petty, McGee, & Cavender, 1984)

Recent studies supported the significant correlation between job satisfaction and job performance Results of a study with sales people in North America supported the positive influence of job satisfaction on job performance (Mulki, Jaramillo, &

Locander, 2009 Job satisfaction has a positive impact on job performance since highly satisfied employees usually perform better than employees with lower levels of job satisfaction Job satisfaction results into high attitude and morale towards work, which subsequently impacts positively on the overall employee’s performance

The relationship between job satisfaction and job performance is also proved via the job satisfaction-customer satisfaction link Customer satisfaction is associated with satisfied employees, which raises the importance of employee satisfaction especially among workers who interact with clients (Swapna & Prabhakar, 2011) In addition, employees with higher levels of job satisfaction have lesser tendencies for being absent (Whitman et al., 2010) Working with satisfied staff allows customers to become familiar with the staff and ensures the services received are from qualified employees

As a result, customers express satisfaction and loyalty toward the goods and services provided by the organization Highly satisfied workers would always try to work better for the organization, leading to higher satisfaction among the organizations’ customers

On this basis, job satisfaction and customer satisfaction are positively related in the way they complement each other In the currently competitive business environment,

organizational managers should pursue customer satisfaction by enhancing employee job satisfaction

2.2.2 Motivation and job satisfaction

The two constructs motivation and job satisfaction were described in the work of Frederick Herzberg The intrinsic factors are called motivators that affect the level of employee job satisfaction (Herzberg, 1968) Research on the correlation between job satisfaction and motivation was continued in some famous theories such as Expectancy theory (Victor H Vroom, 1964) and Equity theory (Adams, 1963) The job satisfaction-

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motivation link is demonstrated in many studies in the 21st century A significantly direct correlation between job satisfaction and motivation was proved from the findings from a meta-analysis involving 1,739 employees in nine studies Similarly, there is a significant correlation between satisfaction with supervision and motivation, which prompts managers to evaluate leadership behaviors based on the impact on employee satisfaction (Kinicki & Kreitner, 2008) Findings from a study with military staff in Canada showed a high positive relationship between job satisfaction and motivation in work place (Tremblay et al., 2009) Results from another study with retail store employees in Australia supported the positive correlation between job satisfaction and motivation (Kantabura & Avery, 2007) Thus, managers or leaders have the opportunity

to improve the employees’ motivation toward work by exerting efforts toward increasing job satisfaction The more motivation that the more satisfaction to employee

2.2.3 Organizational commitment and job satisfaction

A moderate and significant relationship between the two constructs (organizational commitment and job satisfaction) was proved from the findings from a meta-analytical study conducted on 879 studies involving 490,624 respondents (Cooper-Hakim & Viswesvaran, 2005) Organizational commitment was proved to correlate significantly with employee satisfaction from a study in Thailand (Ogunlana, 2008) Leaders are instructed to work on increasing job satisfaction to solicit higher organizational commitment (Cooper- Hakim & Viswesvaran, 2005; Malik et al., 2010) High employee satisfaction leads to high organizational commitment and the link between these two constructs plays a pivotal role in the success of organizations

2.2.4 Job satisfaction and absenteeism

Findings from studies conducted recently proved the significant relationship between these two constructs The significant negative correlation between absenteeism and job satisfaction was proved in a meta-analysis of 60 studies (Whitman

et al., 2010)

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2.2.5 Job satisfaction and turnover

From recent studies showed that satisfaction had a negative association with turnover Employees with lower levels of satisfaction tend to have higher rates of turnover because of lesser self-fulfillment, little recognition, and continuous conflict with peers or superiors The condition of reaching career goals may also contribute to the lack of satisfaction with work associated with turnover As a result, employees tend

to leave the company for opportunities offered in other organizations (Yin-Fah et al., 2010) In the workplace, managers should address turnover because it causes disorder

to organizational continuity and entails additional costs in terms of separation and replacement The results of a study conducted in Malaysia showed a moderate negative connection between job satisfaction and employee turnover (Yin-Fah et al., 2010)

2.3 FACTORS AFFECT JOB SATISFACTION

2.3.1 Age

Age is one of the factors that relate to job satisfaction or dissatisfaction Melvin (1979) suggested that older workers had higher level of job satisfaction than younger workers Lahoud (2006) demonstrated that age positively correlated with network administrators’ job satisfaction The author concluded that level of job satisfaction increased when employees get older The positive relationship between age and job satisfaction was supported in other studies The authors explained that older staff tend

to have more realistic expectations and achieve better than younger staff Conversely, other studies suggested that older employees had lower level of job satisfaction than younger employees The explanation for this was that older employees felt exhausted and lost their excitement about work due to their experience (Bernal, Snyder, & McDaniel, 1998) Additionally, findings from this proved that income increase when age and years of service increase However, results indicated that age and income were positively related to job satisfaction while year of service was negatively related to job

satisfaction among Hawaii fire service personnel

However, other studies did not support the correlation between age and job satisfaction A survey of 132 IT professionals in various Southern California

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organizations was conducted using the Minnesota Satisfaction Questionnaire Short Form to examine the impact of age on job satisfaction (Gjazzawi, 2011) This study showed that age did not play a role in job satisfaction among IT professionals in the United States

2.3.2 Gender

Since gender is one of the most important demographic factors, the relationship between gender and job satisfaction has been tested frequently However, the results have been contradictory Some studies suggested that employees’ gender affected job satisfaction Results of these studies suggested that either women had high level of job satisfaction than men or men were more satisfied with their jobs than women (Shapiro

& Stern, 1975)

A study conducted recently to test the relationship between gender and job satisfaction (Rast & Tourani, 2012) Data for this study was collected from employees

of three private airline companies in Iran Descriptive analysis was performed to

determine the level of employee job satisfaction Independent sample t test was used to

examine the relationship between employee job satisfaction and their gender Findings from this study showed that employees are moderately satisfied with their job and there was no significant difference between male and female in employee job satisfaction

2.3.3 Year of Service

Not many studies on relationship between year of service and job satisfaction was found in the literature A recent study showed the positive correlation between years on the job and employee job satisfaction (Andrade, 2012)

2.3.4 Intrinsic and extrinsic factors

The intrinsic and extrinsic satisfaction factors were derived from Herzberg’s (1966) theory Intrinsic and extrinsic factors are considered two aspects of job satisfaction Intrinsic satisfaction factors relate to work motivators which include factors like working with others and job content Extrinsic satisfaction factors relate to work aspects like compensation, supervision, and company policies (Weiss et al., 1967) Satisfaction and dissatisfaction are separate parts and impacted either by "motivation"

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or "hygiene" factors (Herzberg, 1966) In the motivator-hygiene theory, Herzberg identified factors that influenced job satisfaction or dissatisfaction Motivators are defined as intrinsic factors that "satisfy people's psychological needs, such as security, personal interest, responsibility, achievement, advancement, and moral values" , related to self-fulfilment; and "what is needed for intrinsic motivation" Hygiene factors are defined as extrinsic factors related to work conditions and environment Although the motivator-hygiene theory has its disadvantages, such as "being method bound" or "failing to address individual differences" , "the distinction between motivators and hygiene factors has been a useful contribution to organizational behavior field" and its applications promote "job fit through proper job design" (Schermerhorn et al., 2008) In addition, the theory includes "the role of the organizational context, rather than just the individual, as a variable for understanding and manipulating motivational levels in the workplace" (Lawson & Shen, 1998) From the management perspective, Wong et al (1999) stated that the two-factor theory is useful and applicable in understanding job satisfaction in the hospitality industry

A study conducted recently examining intrinsic and extrinsic factors in various countries (Westover, 2012) Results of this study showed that both intrinsic and extrinsic work factors strongly impacted employee job satisfaction

2.3.5 Income

Income has been found to be an important source of job satisfaction Many studies proved that income impacted job satisfaction Howard and Frink (1996) conducted a study comparing job satisfaction of public and private managers The authors found that income correlated to job satisfaction Sokoya (2000) conducted another study examining predictors of job satisfaction among 350 public sector managers and found that income was a key predictor of job satisfaction

A study conducted in Canada recently to examine the role of income in job satisfaction The author studied the aspect of job satisfaction and the predictors of job satisfaction among the emerging adults in Alberta, Canada Nurulla (2010) collected

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data from the 2003 Alberta High School Graduate Survey among a sample of 1,030

emerging adults from Alberta Results of this study showed that income positively predicts job satisfaction

2.4 STUDIES ON JOB SATISFACTION IN VIETNAM

Few studies on job satisfaction in Vietnam were discovered in the literature A study conducted in 2002 to explore employee job satisfaction at different business sectors in Vietnam State-owned enterprises indicated low levels of job satisfaction (mean of 3.46) and the private sector came in second (Quang & Vuong, 2002) Joint ventures in Vietnam are more likely owned by international entrepreneurs or modernized Vietnamese executives According to Quang and Vuong’s (2002) study, the mean of employee job satisfaction at joint venture sector is 4.33, which is the highest among the three sectors Results from another study conducted in Vietnam showed the significant difference in job satisfaction at different types of companies (public and non-public) (Nguyen, 2008) The level of job satisfaction of employees at non-public organizations was lower than that at public organizations and problems with leadership at public sectors seem higher than those at other sectors (Nguyen, 2008) Another study showed the differences in job satisfaction between international and local companies in Vietnam (Duong & Swierczek, 2008) Job satisfaction of employees

at local companies was proved lower than those of counterparts at international companies in Vietnam (Duong & Swierczek, 2008)

Just like any other employers in the global market, many factors affect employee job satisfaction in Vietnam A study that examines the relationship between various factors and satisfaction of workers may help to determine the factor that most affect employee job satisfaction Based on the results of this study, the level of employee job satisfaction will be improved by focusing on appropriate factors that most impact job satisfaction

2.5 METHODOLOGY USED IN PAST STUDIES

Quantitative non-experimental methods were used in past studies to determine factors that affected general employee job satisfaction (Ghazzani, 2011; Nurulla, 2010;

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(Rhast & Tourani, 2012; Westover, 2012) Independent sample t test was used to test the difference in general satisfaction between male and female employees (Rhast & Tourani, 2012) Many authors used Pearson correlations and regression analysis to examine the impact of various factors on general satisfaction (Nurulla, 2010; Westover, 2012)

SUMMARY

Job satisfaction is a concept that interests many organizational researchers (Agho et al., 1993) Job satisfaction affects many aspects in the workplace including commitment, performance, absenteeism, and turnover Studies on predictors of employee job satisfaction have been conducted in various settings Findings from these studies were not consistent Further, few studies on this topic were conducted in Vietnam Based on the literature, the following model was suggested in this study to determine factors affecting general satisfaction

Intrinsic factors

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