Factors affecting job satisfaction of the employees at astrazeneca viet nam in ho chi minh city

The Research project was designed to find out the factors which influence Job Satisfaction of employee working at AstraZeneca Viet Nam from that increases intention to stay and work perf

RESEARCH PROJECT

(BMBR5103)

FACTORS AFFECTING JOB SATISFACTION

OF THE EMPLOYEES AT ASTRAZENECA

VIETNAM IN HO CHI MINH CITY

Advisor’s assessment

Table of Contents

ABSTRACT 5

CHAPTER 1: INTRODUCTION 7

1.1 Problem statement: 7

1.2 Research Objectives: 7

1.3 Research question: 7

1.4 Scope and Methodology of Research 8

1.5 Research Structure 8

CHAPTER 2: LITERATURE REVIEW 9

2.1 Introduction of AstraZeneca Vietnam ……… 9

2.2 Notion of job satisfaction 10

2.3 Theories about job satisfaction 11

2.3.1 Theory of David Mc Clelland 11

2.3.2 Theoretical Framework of David Mc Clelland 11

2.3.3 Hertzberg’s two-factor theory 12

2.3.4 Expectation Theory of Vroom 13

2.3.5 Maslow’s hierarchy of needs 13

2.3.6 Model of motivation of Porter and Lawler 14

2.3.7 Model of Job Description Index (JDI) 14

2.4 Studies about the job satisfaction 16

CHAPTER 3: RESEARCH METHODOLOGY 17

3.1 Data source: 17

3.2 Modeling Specification 17

3.3 Relation between notions of research and research theory 19

3.4 Measurement of observed variables 21

3.5 Design of research 22

3.5.1 Design of qualitative research 23

3.5.2 Design of Scales 24

3.5.3 Sample Selection 25

3.6 Method of data analysis 25

3.6.1 Statistics of sample description 25

3.6.2 Scale assessment 25

3.6.3 Explanatory Factor Analysis (EFA) 26

3.6.4 Name and Adjustment of the modeling specification 27

3.6.5 Construction of regression equation 27

3.7 Evaluation of the fit of the model 27

3.8 Evaluation of research assumptions 28

CHAPTER 4: EMPIRICAL RESULTS AND DISCUSSION 30

4.1 Sample description 30

4.2 Scale evaluation 31

4.2.1 Evaluation of scale “work itself” 32

4.2.2 Evaluation of scale “Advancement opportunities” 32

4.2.3 Evaluation of Scale “Salary” 33

4.2.4 Evaluation of Scale “Supervisor support ” 34

4.2.5 Evaluation of Scale “Co-worker relations” 34

4.2.6 Evaluation of Scale “Working conditions” 35

4.2.7 Evaluation of scale of dependent variable “job satisfaction” 36

4.3 Name and adjustment of the model 37

4.3.1 Name of the first factor: 37

4.3.2 Name of the second factor 38

4.3.3 Name of the third factor 38

4.4 Adjustment of modeling specification 39

4.5 View the correlation between the notions 40

4.6 Construction of regression equation 41

4.6.1 Construction of regression equation by Enter method 41

4.6.2 Examination of the difference between the groups of employees having different age 45

4.6.3 Examination of the difference between the groups of employees having different age 47

4.7 Discovery of research 47

CHAPTER 5: CONCLUSION AND PROPOSALS 49

5.1 Conclusions 49

5.2 Some proposals from the research results: 50

5.3 Contributions and meanings of the research 52

5.3.1 Contributions 53

5.3.2 Meanings of the research 53

5.3.3 Limitation of the research: 53

REFERENCES 55

APPENDIX 57

ABSTRACT

The Pharmaceutical industries in Viet Nam are facing the critical challenges of recruiting and retaining the best talents In this era of globalization employees are blessed with good opportunities There are many factors which influence retention and it is required to

understand employee expectation When highly desirable employees decide to leave, it can have a significant negative impact on the organization Recruitment costs, training costs, low productivity, loss of critical knowledge and operational disruptions can decrease organizational effectiveness

According to the literature, when employees are satisfied, they intend to stay in the

organization and when they are dissatisfied, they think about quitting Furthermore, if the employee perceives employment opportunities in the labor market, the intention to quit or stay is affected To support business optimally, need is to retain existing talented

employees who have the essential knowledge, expertise and competencies to do the work The Research project was designed to find out the factors which influence Job Satisfaction

of employee working at AstraZeneca Viet Nam from that increases intention to stay and work performance for employees

Data were collected from 200 Medical Representatives of AstraZeneca from Sixty - four Provinces and cities in Vietnam Using software SPSS version 22 (copyright of IBM) Hypotheses used this research includes five constructs: one dependent construct (Job Satisfaction) and four independent constructs (Staff Relations, Supervisor, pay and

opportunity to develop) that important factors are key indicators for employee retention, satisfaction, and productivity

CHAPTER 1: INTRODUCTION

1.1 Problem statement:

Nowadays, keeping good staffs staying with the company becomes more important The stability of human resource assists the firm economizes fees (training, recruitment) and also reduces potential professional mistakes, creating belief and forming the culture of the company Thus, employees will consider the company as the perfect location to fulfill all their capabilities as well as stay with the firm in the long term Last but not least, this stability assists the enterprise do effectively their business, creating the confidentiality of customers to the quality of goods and service of the company Investigations show that the satisfaction of the employees has positive effect on working results (Sari & Judge, 2004) or the loyalty for the organization (Luddy, 2005)

Great employees are the lifeblood of any business However, as the job market accelerates, even happy workers may be tempted to explore whether the grass is greener at another company Within 2 years (2014-2015), more than 160 Medical Representative in Vietnam has resigned, And Losing employees is a concern for AstraZeneca Every Year, The

Company are losing 20 percent of the employee’s annual salary for replacing an employee

to cover the lost productivity costs and then recruit and train someone new With the

shortage of human capital as today, retention good people are becoming big issue of

AstraZeneca Viet Nam And Job Satisfaction of employees is important factor for

AstraZeneca to keep employee retention, Even though there are numerous studies related

to job satisfaction but there is limited research done in different country contexts

Therefore, this study will mainly look into the four factors: Staff Relations, Supervisor, pay and opportunity to develop that influence on job satisfaction of AstraZeneca Staff Hence, the evaluation of the factors affecting the job satisfaction of the employees is very essential in order that the enterprises can adjust human resource policies suitably

1.2 Research Objectives:

This goal of this research is way to find the factors influence to the Job Satisfaction of employees working at AstraZeneca Viet Nam The primary objectives of this study will focus on:

(1) To determine the factors influencing the satisfaction of the employees in the company (2) To propose the solutions to improve the satisfaction of the employees in order to keep competent staffs and impulse the labor productivity

1.3 Research question:

Specifically, the research aims to address the following questions:

(1) Which factors influence the satisfaction of the employees?

(2) What are the solutions to enhance employee’s job satisfaction?

1.4 Scope and Methodology of Research

The research focuses on investigating the job satisfaction of employees in AstraZeneca Vietnam in Ho Chi Minh City The subjects are staffs working actually in the company; the sample size of the research is 200 people collected, surveyed in the number of different departments in the company In order to clarify the contents above, serving for the target of the research, the dissertation use specific research methods as:

- Preliminary study is implemented through qualitative research, through the technique of consulting the opinions of specialists and experienced professors in this field, at the same time observing on the working location, discussing with the superiors and colleagues

- Official study is used by quantitative research through the survey of 200 staffs in the company Collect and process the data with the software SPSS Conduct the survey for the study in the end of 2015 at AstraZeneca Vietnam

1.5 Research Structure

The research is organized in five chapters, including this introduction

Chapter 2: Reviews theories the general theory related to the research including the general information of AstraZeneca Vietnam, the notions in the research model, the research

models and some recent studies of similar topic

Chapter 3: Describes data collection and methodology in which the model for estimation and method of estimation are outlined

Chapter 4: Presents the results from analyzing data and discussion

Chapter 5: Briefly draws the conclusion, recommendations and limitations of the research

CHAPTER 2: LITERATURE REVIEW

This chapter will present the general theory related to the topic of the research including the general information of AstraZeneca Vietnam, the notions in the research model, the research models and some recent studies of similar topic

2.1 Introduction of AstraZeneca Vietnam

AstraZeneca plc is a British-Swedish multinational pharmaceutical and biologics

company We are the world's seventh-largest pharmaceutical company Our primary focus

is the discovery, development and commercialization of prescription medicines for six important areas of healthcare: Cardiovascular, Gastrointestinal, Infection, Neuroscience, Oncology and Respiratory & Inflammation

The organizational hierarchy of the company includes Board of directors, Chief Executive Officer, Deputy Chief Executive Officers, Executive Director, Deputy Director,

departments: Financial and Accounting Department, Human Resource and Administration Department, Engineering Department (operation, reparation, maintenance, customer care), Sales Department, Project Department (5 construction team) and Warehouse, with the workforce is 303 people

We operate in over 100 countries and our innovative medicines are used by millions of patients worldwide We are one of only a handful of companies to span the entire life-cycle of a medicine from discovery, early and late-stage development, to the global

commercialization of primary care, specialty care-led and specialty care medicines Using these skills and capabilities we can make a real difference to the health of a broad range

of patients by delivering great medicines in disease areas where there is unmet medical need

We want AstraZeneca to be valued as a source of great medicines and trusted as a

company that delivers business success responsibly Our Responsible Business Plan

provides the framework for ensuring that we operate with integrity and high ethical

standards across all our activities

In Viet Nam, we are currently one of the top pharmaceutical companies and we are

committed to continued innovation, close customer relationships, people development

and an ethical responsible approach to business, with an aim to make a difference to the lives of patients and the healthcare professionals

2.2 Notion of job satisfaction

Job satisfaction is a complex phenomenon that has been studied quite extensively Various literature sources indicate that there is an association between job satisfaction and

motivation, motivation is hard to define, but there is a positive correlation between job satisfaction, performance and motivation, whereby motivation encourages an employee, depending on their level of job satisfaction, to act in a certain manner (Hollyforde, 2002)

In the earlier studies job satisfaction is described as a combination of psychological,

physiological and environmental factors that cause a person to feel satisfied with his or her job This description implies that internal and external factors affect feelings of employees Locke (1976) who described job satisfaction as "a pleasurable or positive emotional state resulting from the appraisa1 of one's job or job experiences" has been cited very often in job satisfaction research (as cited by Parvin, 2011) His definition indicates that job

satisfaction is an emotional state and a result of an appraisal or evaluation of one’s job Simply said job satisfaction was described as the positive and negative feelings and

attitudes people have regarding their job This implies that the evaluation of one’s job, results in negative or positive feelings (Khalifa, 2010) According to Kreitner et al (2002) job satisfaction is an affective and emotional response to various facets of one’s job The complexity of job satisfaction becomes apparent when one realizes that a variety of aspects regarding the job can result in negative or positive feelings Also Falkenburg and Schyns (2007) argue that job satisfaction consists of satisfaction with different aspects of the job and work situation Thus, job satisfaction has often been seen as a multi-faceted concept, which affects satisfaction with one’s job Job satisfaction facets, which have been

identified in research, are numerous but mostly regard internal and external factors related

to the job

2.3 Theories about job satisfaction

2.3.1 Theory of David Mc Clelland

David Mc Clelland (quoted as Robbins, 2002) stated that people have 3 elementary needs: performance need, union need and power need (1) Performance need People who have

high performance need are who always desire to perform their job better They want to pass all the difficulties and obstacles They want to feel that all the success or failure is the results from their actions It means that they love challenged jobs People having high performance needs are encouraged to work better The characteristics of persons having high performance are: the desire to realize individual responsibilities, the tendency to put high targets for themselves, the high need of concrete and immediate response, and quick control of their job (2) Union need People, like in the social need of A Maslow, are who want to accept love and friendship The employees have this need perform strongly and well the jobs creating the friendliness and social relationship (3) Power need: Is the need

to control and influence on the others and their working environment Researchers reveal that people who have strong power and performance needs have tendency to become managers Some people state that a succeed manger is who have the strongest power need, then performance need and lastly union need

Motivation-Hagedorn defines a mediator as “A variable or situations that influence the relationships between other variables or situations producing an interaction effect” (p 6) The

framework contains six triggers: (1) change in life state; (2) change in family-related or personal circumstances (e.g birth, death, divorce, illness of self or significant other); (3) change in rank or tenure; (4) transfer to a new institution; (5) change in perceived justice; and (6) change in mood or emotional state (Hagedorn, 2000, p 7) There are three types of mediators: (1) motivators and hygienes such as salary or work itself; (2) demographics such as gender or academic discipline; and (3) environmental conditions such as

institutional climate/culture and collegial relationships The mediators of salary and

demographics such as gender, family status, whether or not there are children living in the

home, and number of children living in the home will be examined in this study, in

addition to the variables of rank and tenure status

Hagedorn‟s Conceptual Framework of Faculty Job Satisfaction is based on Herzberg‟s (1959) Motivation-Hygiene Theory, which divided the work into two factors: motivators and hygienes Motivators are issues that increase satisfaction and hygienes as issues that decrease dissatisfaction or result in de-motivation Herzberg, Maunser, and Snyderman (1959) found that intrinsic factors, such as achievement, recognition, work itself,

responsibility, advancement, and salary, lead to satisfaction; hence, these factors are named motivators and labeled as job satisfiers Herzberg et al also found that extrinsic factors, such as company policy, supervision, relationship with boss, work conditions, salary, and relationships with peers, lead to dissatisfaction; hence, these factors are named hygienes and labeled as job dissatisfiers Herzberg et al.‟s research has been verified through

numerous studies and has served as the basis for many job satisfaction assessments

Hagedorn‟s (2000) adaptation of Herzberg‟s Motivation-Hygiene Theory has been used in many studies over the last 10 years (August & Waltman, 2004; Grunwald & Peterson, 2003; Corley & Sabharwal, 2007; Castillo & Cano, 2004) This framework has also been used in numerous dissertations The main purpose of this study is to add to the literature regarding job satisfaction among Medical Representative at AstraZeneca Vietnam As such, Hagedorn‟s research is a useful tool to frame this study

2.3.3 Hertzberg’s two-factor theory:

In the late 1950s Frederick Herzberg developed a theory that there are two dimensions to job satisfaction, “motivation” and “hygiene” The work characteristics associated with dissatisfaction (hygiene factors) vary from those pertaining to satisfaction (motivators) in that motivators lead to satisfaction, although their absence may not lead to dissatisfaction The motivators include achievement, recognition and intrinsic interest in the work itself The continuing relevance of Herzberg is that there must be some direct link between

performance and reward, whether extrinsic as in recognition or intrinsic as in naturally enjoyable work, to motivate employees to perform and improve their job satisfaction The current study will be based upon this theory

2.3.4 Expectancy theory:

This theory was developed by Vroom(1964) who asserts that job satisfaction is based on people’s beliefs about the probability that their effort will lead to performance

(expectancy) multiplied by the probability that performance leads to rewards

(instrumentality) and the value of perceived rewards (valence).This theory is based on the belief that the amount of effort exerted on a job depends on the expected return and may result in increased pleasure or decreased displeasure, and that people may perform their job and be satisfied if they believe that their efforts will be rewarded The fundamental

principle of expectancy theory is the understanding of individuals’ goals and the linkages between effort and performance, performance and rewards, and rewards and individual goal satisfaction This theory recognizes that there is no universal principle that explains people’s motivation and is regarded as a contingency model Understanding what needs a person seeks to satisfy does not ensure that the individual perceives high performance as necessarily leading to the satisfaction of these needs The theory of Vroom can be

interpreted by the formula:

The motivation = Degree of desire x Degree of expectation

When one person is indifferent to reaching the goals, the degree of desire seems to be zero, and the latter will be negative if people refuse to attain this goal Similarly, one person can have no motivation to reach the target if the expectation is zero or negative

2.3.5 Maslow’s hierarchy of needs:

According to Maslow’s theory (1970), people’s needs range from a basic to a high level These needs are present within every human being in a hierarchy, namely physiological, safety and security, social, status and self-actualization needs Failure to satisfy one need may have an impact on the next level of need Low order needs takes priority before the higher order needs are activated, so that needs are satisfied in sequence According to this theory, people who are struggling to survive are less concerned about needs on the higher levels than people who have time and energy to be aware of higher level needs

2.3.6 Model of motivation of Porter and Lawler

L.W Porter and E.F Lawler (1974) went to a model of motivation more perfect, in which the majority is built on the theory of expectation As the model show, the entire of the effort or the power of motivation depends on the values of awards and the probability or

the possibility to receive the awards Then, the results of achieving the mission is

determined by the motivation, working capability of human (knowledge and competence) and the perception of essential missions A good execution of duties inevitably leads to inherent awards (money, items) and outside awards (working conditions, positions) These awards along with the awards suited to the perception (it means that each individual

perceive the suitability and the equality for the awards) produce the satisfaction Hence, the satisfaction is the outcome combined of different awards

2.3.7 Model of Job Description Index (JDI)

Model of Job Description Index have been presented by Smith et al since 1969 Model of Job Description Index is highly appreciated through various researches; according to the statistics of Worrel (2004) the implications of JDI in the measurement of job satisfaction of the employees have had 12,000 studies about JDI (Worrel, 2004) Basically, the model of Smith has 5 factors as follows:

The nature of suitable job: Is understood that one job will bring the general satisfaction to

the employees and create good results if it meets these characteristics: Using different skills, staffs master working process and the job plays an important role given to the

commercial activities of the company Besides, the job is well-suited to the competence given of the employees

Training and promoting opportunities: Training is the process of inquiring essential skills

to handle one concrete task Promotion is the movement to the higher position in the

working system of the employees In this topic, training and promotion are grouped in the same factor because of their regular relation cause – result The objective of training

employees, apart from improving the competences, is also to promote in the working system, they have closed relation

Income factor: Is the compensation that the employees receive from their job in the

company In this research, the income is the one that the employees receive from their job

in the company, not including the other revenue aside from their principal job in the

company Income factor is a principal factor influencing job satisfaction of the employees, staffs have comparison of income with other enterprises, and the revenue is distributed equally to member

Leader factor: Leader is understood as the direct superior of employees Leaders bring

satisfaction to the employees through communication, interest, attention to their

employees, protect their staffs if necessary, and express their leading competences and profession to their inferiors Besides, the satisfaction of leaders of employees is

represented through equal treatment, sincere certificate of distribution of employees

Lastly, colleagues: Colleagues means people working together at the same position,

having the similar working missions or relating in the professional chain in an

organization In this content of research, colleagues are understood as people working in the same direct unit, in the same company, having mutual working relationship,

exchanging about the job In the majority of working time, employees have mutual contact; thus, the relation between colleagues influences the job satisfaction The principal factors affecting job satisfaction are the confidentiality, the devotion to the job, the help, the

friendliness, etc…

2.4 Studies about the job satisfaction

Investigations of job satisfaction of the employees are conducted early on (study of

Hoppock, 1935) and are carried out by different researchers In this research, the author presents only some typical studies in the world and in Viet Nam about the same field The first one is the study of Smith, Kendall and Hulin (1969) of Cornell University Study built Job Description Index (JDI) to evaluate the job satisfaction of one person through factors including (1) job nature, (2) income, (3) promotion, (4) colleagues and (5)

supervision of the superior The study of Spector (1985) in the field of services, the

evaluation of the degree of satisfaction has 9 factors: (1) salary, (2) opportunities of

promotion, (3) working conditions, (4) supervision, (5) colleagues, (6) love of job, (7) information communication, (8) unexpected awards, (9) benefits The research of Luddy (2005) in the field of medical services in South Africa show that the job satisfaction of employees are affected by all 5 factors in the model JDI, in which, 3 factors “colleagues”,

“leadership” and “ job nature” are highly appreciated by the workers, 2 factors “training and promotion” and “income” are negatively rated (dissatisfaction) In Vietnam, the

research of Tran Kim Dung (2005) conducted in Ho Chi Minh City reveals that there are 7 factors affecting job satisfaction of employees including (1) job nature, (2) training and

promotion, (3) salary, (4) leadership, (5) colleagues, (6) welfare of the company, and (7) working conditions The study of Nguyen Lien Son (2008) in Long An state that there are

6 factors affecting job satisfaction of employees including (1) job nature, (2) salary, (3) colleagues, (4) leadership, (5) training and promotion opportunities and (6) working

conditions Research of Nguyen Thi Thu Thuy (2011) examining the satisfaction of

professors in the universities in Ho Chi Minh City says that 4 factors influencing the

satisfaction of professors of the universities are (1) colleagues, (2) income, (3) job

characteristics and (4) leadership Study of Pham Van Manh (2012) reckons that in the telecom field, 4 factors having impact on satisfaction of employees are (1) colleagues and welfare, (2) training and promotion, (3) autonomy, and (4) working conditions, in which, working conditions are negatively evaluated

CHAPTER 3: RESEARCH METHODOLOGY

3.1 Data source:

Data from the research are collected through the establishment of survey of questionnaire,

in which the questions are mainly oriented to the factors affecting the satisfaction of

employees, and then distribute the survey paper collecting directly the opinions of

employees in AstraZeneca Vietnam, certain survey questions are sent by mail Data

collected will be processed, removing invalid papers, then using the software SPSS to test the hypothesis

3.2 Modeling Specification

Modeling specification is built on the basis of the model of Job Description Index

developed by Smith et al (1969), combined with the reference of the studies in Vietnam Through the conduction of qualitative research, the factor of “working conditions” is the one that the employees consider significance Therefore, in this research, the author

supplements the factor “working conditions” in the modeling specification Thus, the modeling specification has 6 factors as follows (see the figure 3.1.1)

The Figure 3.1.1 Modeling specification

H1

H2

H3

H4 H5

H6

3.3 Relation between notions of research and research theory

Work (job nature) is the content of tasks suited to the capabilities of the employees,

creating the inspiration to the workers in order to perform their competences Arranging

the missions suitably can exploit the potentiality of the employees, increasing the

productivity and making the workers comfortable when working In the other words, the

employees will be satisfied with the tasks assigned if the job is suited to their capabilities

This is proven by research of John D Pettit et al (1997), study of T Ramayah et al (2001)

in Malaysia, research of Kenichi et al (2002), research of Luddy (2005), study of Tran Kim Dung (2005), Nguyen Lien Son (2008), Nguyen Thi Thu Thuy (2011)… All show that the employees are satisfied with the job nature assigned, influencing the job satisfaction Hence, this research gives research hypothesis:

H1: Working factor has positive impact on the general job satisfaction of employees

Training and promoting opportunities reveal that the workers are given the opportunities to

be trained to enhance skills serving for the job and the ability to be promoted to higher position The employees will be satisfied with the job offering training opportunities and helping to be promoted in their careers Therefore, creating training opportunities and promotion makes the employees satisfied with the job This has been proven by research Spector (1985), JH Ironson et al (1989), Jonh D Pettit et al (1997), T Ramayah et al (2001) and Stanton (2001), Kinicki et al (2002), Luddy (2005), Tran Kim Dung (2005), Nguyen Lien (2008), Pham Van Manh (2012), etc Then, this research put the hypothesis:

H2: The factor of training and promoting opportunities has positive impact on the general

job satisfaction of employees Career development determines the nature and quality of

individuals’ lives, and the social and economic contribution they make Career

development is crucial for an effective labour market When individuals find a career path that utilizes their full potential, they are likely to be motivated and productive thus

increasing job satisfaction Opportunities to develop afford individuals the prospect of further enhancing themselves and growing within the ranks of their career

The availability of career development opportunities illustrates the willingness and effort

of the organization to cherish employees Huselid (1995) suggested that progressive HR practices that embrace career-related practices could improve knowledge, skills and the abilities of an organization’s current and potential employees, and enhance the retention of quality employees .Career development is about the development of employees that is beneficial for both the individual and the organization Effective career development programs enhance individual work performance by continuously learning and adapting, while the organization offers favorable developmental relationships with their employees Rhoades and Eisenberger (2002) suggested training and exposure may imply a high level

of concern for organizations to extend employees’ potential in the organization Employees

who receive such developmental opportunities would boost their motivation and

confidence in their work Subsequently, employees who receive such opportunities might repay their organization with the likeness of extending their self-fulfillment, leading to reduced turnover intention Thus, this study poses research hypothesis:

H3: The factor of income has positive impact on the general job satisfaction of employees

Leaders are the superiors, the managers of the employees; leaders bring to the employees the satisfaction through communication, fair treatment and recognition of the contributions

of the employees In the other words, the leadership factor influences positively on the job satisfaction of workers This has been proven through research of Spector (1985), Jonh.D Pettit et al (1997), Lilia Cortina and Vicki J Magley M (2011), T Ramayah et al (2001), Luddy (2005), Tran Kim Dung (2005), Nguyen Lien (2008), Nguyen Thi Thu Thuy

(2011), etc Thus, this study poses research hypothesis:

H4: The factor of leadership has positive impact on the general job satisfaction of

employees Colleagues are who work at the same position, perform the similar working

content The relationship between colleagues is competitive and supportive relations The employees will be satisfied with the job if their jobs are well supported from the

colleagues, friendly colleagues help mutually when working as well as there are fair

competition of awards and promotion in the organization In the other words, the

employers will be more satisfied with the job when having good relationship with

colleagues This has been proven through research Ramayah T et al (2001), Luddy (2005), Tran Kim Dung (2005), Nguyen Lien (2008), Nguyen Thi Thu Thuy (2011), Pham Van strong (2012), etc Thus, this study poses research hypothesis:

H5: The factor of colleagues has positive impact on the general job satisfaction of

employees Working conditions are working situation of the workers including the

following factors: the safety of workplace, the equipment serving for the job of the

employees… The workers provided good working conditions will highly appreciate their jobs; otherwise they will be dissatisfied with the working conditions they have to accept This has been proven in studies of Spector (1985), Tran Kim Dung (2005), Nguyen Lien

(2008), Pham Van Manh (2012), etc Thus, this study poses research hypothesis:

H6: The factor of working conditions has positive impact on the general job satisfaction of

employees

3.4 Measurement of observed variables

Table 1: Table of recording variables

I Work itself

1 CV1 The job is accorded to professional

qualifications, suited to training skills

Tran Kim Dung (2005)

Nguyen Lien Son (2008)

2 CV2 Understand well the job

3 CV3 Permit to use well individual competences

4 CV4 Be stimulated to imagine when working

5 CV5 The job has many challenges, interests;

6 CV6 The mass of tasks is suitable

7 CV7 Working time is suitable

11 DT4 Occasion to develop himself

12 DT5 Fair policy of training and promotion

III Salary

13 TN1 Salary is suited to competence and Tran Kim Dung

(2005), Nguyen Lien Son (2008)

14 TN2 Fair awards for the working efficiency

15 TN3 Reasonable allowance

16 TN4 Salary, awards and allowance are distributed

Fairly

17 TN5 Possibility to live based on the income

18 TN6 Income is equal to other companies

IV Supervisor support

19 LD1 Leaders are interested in subordinates Tran Kim Dung

(2005), Nguyen Lien Son (2008)

20 LD2 Workers receive the assistance of leaders

when working

21 LD3 Leaders treat fairly

22 LD4 Leaders have competences, visions and

ability of good management

25 DN3 Colleagues are friendly Nguyen Lien Son

28 MT2 Employees do not worry about losing the job

29 MT3 Employees work in safe conditions

30 MT4 Employees work in an environment fully

equipped to support the job

31 MT5 Working depression is not too high

VII Job satisfaction

32 TM1 Job permits you to utilize well your

3.5.1 Design of qualitative research

Method of qualitative research is used in the period of research discovery: research

secondary documents and discuss with some employees to discover, adjust, supplement observed variables, and construct preliminary scales about the satisfaction of employees in the company This method is implemented during interviewing, exchanging directly with some staffs working in the company There are various opinions but basically, these ideas approve with the content in the model of Job Description Index Besides, these employees

state that working conditions is one of the issues making them dissatisfied They say that working conditions is also an important factor to evaluate the job satisfaction of

employees Many participants say a lot about their actual job, especially the staffs having big ambition to promote They want to have specific responsibilities, concrete in the

position that they are assigned, at the same time, they desire to contribute their voice in the decision of their leaders Through this qualitative analysis, the author supplements one factor “working conditions” in the modeling specification At the same time, he will

conduct the adjustment of the questionnaire survey expected to give factors in the model JDI accorded semantically

3.5.2 Design of Scales

The construction of scales in the research is an essential mission of all studies; the

selection of suitable scales will assist researchers ease to analyze the research and discover the issues studied In this research, the author use 5-point Likert Scale In principle, more the scale is detailed, more it is accurate, but the 5-point Likert Scale is suited to this

research, the accuracy is nearly equal to the 7-point Likert Scale because in the feature of distinction of semantic level of agreement in Vietnamese language, there is no difference between 5-point Likert Scale and 7-point Likert Scale Dummy variables are built by nominal scales and ordinal scales Concretely as follows:

Table 2: Scales used in the questionnaire survey

Factors Variables Scales

Information about the job satisfaction

Information of the general job satisfaction

General assessment of

job satisfaction

Satisfaction when working in the company

5-point Likert Scale

Happiness to be chosen to work in the company

Consider workplace as the second

Professional fields Identification

3.5.3 Sample Selection

Sample selection method: Due to limited time as well as research fees, this research uses the method of selection of random sample convenient The questionnaire is distributed to all the departments of the company until having a sufficient number of responses required Sample size: To ensure the reliability of the research, the selection of appropriate sample size is essential In principle, more the sample size is great, more the outcome of the

research is accurate, but as the sample size is too great, this will influence the research fees and time The expected sample size is 150, to ensure this sample, 200 questionnaires are distributed Certain researchers do not give the specific number, but give the relation between observed variables and sample size Trong and Ngoc (2008) used the principle of multiplication by 5; it means that observed variables are multiplied by 5, giving the sample size to ensure the reliability In this research, taking the sample size by the principle of Comrey and Lee (1992), at the same time seeing reference of principle of Trong and Ngoc; with 31 observed variables, the minimum sample size is 31x5=155 Therefore, the sample size with 200 samples is quite good according to Comrey and Lee, at the same time it satisfies the principle of multiplication by 5 of Trong and Ngoc about the minimum sample size

3.6 Method of data analysis

Data collected are cleaned and conducted to analyze with the assistance of software SPSS 22.0 by statistical customs Including

3.6.1 Statistics of sample description

Samples collected will be conducted to be classified statistically following dummy

variables, according to the criteria of grouping the enterprises such as: Gender, Age,

Educational level, Workplace and Income At the same time, calculate the average, the

maximum, the minimum and the standard deviation of the responses in the questionnaire collected

3.6.2 Scale assessment

The factors are implemented to assess the scale by Cronbach’s Alpha and the Item-total correlation Observed variables which do not ensure the reliability will be removed from the scale and do not appear in the part of analysis discovering factor In this research, the coefficient Cronch’s Alpha is taken at minimum 0.6 (Hair et al, 1998) The coefficient of correlation transforming the total smaller than 0.3 is considered as spam variable and certainly removed from the scale (Nunally and Burstein, 1994)

3.6.3 Explanatory Factor Analysis (EFA)

After been assessed scale by Cronbach's Alpha, the notions of factor will continue to be given in Explanatory Factor Analysis (EFA) Certain criteria are applied in analysis EFA

in the research as follows:

- Evaluate the appropriateness of factor analysis with the data of sample through Meyer-statistics Olkin (KMO) Then, if the value of KMO is greater than 0.5, the factor analysis is suitable (Garson, 2003), otherwise if the value of KMO is smaller than 0.5, the factor analysis is not appropriate with the data done

Kaiser The number of factors: The number of factors is based on the eigenvalue representing the part of variation explained by each factor According to Keiser standards, the factors having eigenvalue smaller than 1 will be removed from the modeling specification

(Garson, 2003)

- Variance explained criteria: The total of Variance explained criteria must be greater than 50% (Hair et al, 1998)

- Convergence validity: In order to the scale reach the convergence validity, the

coefficient of simple correlation of variables and the coefficient of factor loading must be greater or equal to 0.5 in one factor (Garbing & Anderson, 1988)

- Distinction validity: To attain the distinction validity, the difference between factors loading must be greater or equal to 0.3 (Jabnoun, 2003)

- Method of deduction of coefficient factor Principal components with Varimax rotation

to ensure the number of factors is the smallest (Trong and Ngoc, 2008)

3.6.4 Name and Adjustment of the modeling specification

After conducting the analysis EFA, based on the real data, the author will continue to name the factors formed and adjust the model as well as the early hypothesis suited to real data

3.6.5 Construction of regression equation

After the scale of Explanatory Factor Analysis is evaluated, it will be treated and run as linear regression by the method of Ordinary Least Square (OLS) with 2 methods Enter and Stepwise

The sample of regression equation:

Y = ß + ß1X1 + ß2X2+ ß3X3+ ß4X4+ ß5X5+ ß6X6

In which:

Y is dependent variable, the job satisfaction of employees

ß1, ß2, ß3, ß4, ß5, ß6 are coefficients, results after running SPSS

X1X6: independent variables, the factors affected the job satisfaction of the employees

3.7 Evaluation of the fit of the model

After constructing the regression equation by the method of Ordinary Least Square, to ensure the reliability of the model built, the author conduct to evaluate the satisfaction of the hypothesis of the method OLS including:

- The phenomenon of linear relationship of independent variables: Use the scatterplot to examine the hypothesis of linear relationship between independent variables in the model

- The phenomenon of residual variance changing: Use the Spearman’s rank correlation to examine the hypothesis of residual variance changing

- Evaluation the standard distribution of residual: Use histogram and p-plot to examine the standard distribution of residual

- Evaluation the multicollinearity in the model: Multicollinearity is the phenomenon where the independent variables have strongly mutual relationship The issues of