Examining factors affecting to employees job satisfaction in international companies in Ho Chi Minh city Vietnam

TRệễỉNG ẹAẽI HOẽC Mễ TP.HCM UNIVERSITE LIBRE DE BRUXELLES HO CHI MINH CITY OPEN UNIVERSITY SOLVAY BRUSSELS SCHOOL MBAVB2 LE QUANG ẹINH EXAMINING FACTORS AFFECTING TO EMPLOYEES JOB SATISFACTION IN INTERNATIONAL COMPANIES IN HO CHI MINH CITY VIETNAM MASTER PROJECT MASTER IN BUSINESS ADMINISTRATION (PART-TIME) Tutors Name: Dr. Nguyen Van Ngai Ho Chi Minh City (2012) i COMMITMENT I hereby declare that all work in this project was written by myself under the kind guidance of Dr. Nguyen Van Ngai. The project “Examining factors affecting to employee’s job satisfaction in international companies in Ho Chi Minh city, Vietnam” was done in accordance with regulation of Solvay Business School and Open University of Ho Chi Minh city. All data and information have been collected by reliable sources, there is no plagiarism in this study. Ho Chi Minh City, November 12 th , 2012 LE QUANG DINH ii ACKNOWLEDGEMENT 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 12 th , 2012 LE QUANG DINH iii iv 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 v 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 vi ABBREVIATIONS ES: Extrinsic GS: General Satisfaction HCMC: Ho Chi Minh City H: Hypothesis IS: Intrinsic MSQ-SF: Minnesota Satisfaction Questionnaire - Short Form RQ: Research Question SPSS: Statistical Package for the Social Sciences vii 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 viii 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 1 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. [...]... correlated to general job satisfaction of employees at international companies in Ho Chi Minh City 3 H3a Year of service is significantly correlated to general job satisfaction of employees at international companies in Ho Chi Minh City H40 Intrinsic factors are not significantly correlated to general job satisfaction of employees at international companies in Ho Chi Minh City H4a Intrinsic factors are... correlated to general job satisfaction of employees at international companies in Ho Chi Minh City H3a Year of service is significantly correlated to general job satisfaction of employees at international companies in Ho Chi Minh City H40 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 H50 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... significantly correlated to general job satisfaction of employees at international companies in Ho Chi Minh City H50 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 Table 1: Operational... 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. .. 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. .. 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? The null and alternative hypotheses of the study are: H10 There is no difference on general job satisfaction between male and female employees at international companies in Ho Chi Minh City H1a There... significant difference on general job satisfaction between male and female employees at international companies in Ho Chi Minh City 23 H20 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 H30 Year of service is... significant difference on general job satisfaction between male and female employees at international companies in Ho Chi Minh City H20 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 H30 Year of service is... 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: H10 There is no difference on general job satisfaction between male and female employees at international companies in Ho Chi Minh City H1a . 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? . 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. . 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 .