Factors influencing job satisfaction of employees a case study of joint stock commercial bank for foreign trade of viet nam in ho chi minh city

RESEARCH PROJECT (BMBR5103) FACTORS INFLUENCING JOB SATISFACTION OF EMPLOYEES: A CASE STUDY OF JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM IN HO CHI MINH CITY STUDENT’S FULL NAME STUDENT ID INTAKE ADVISOR’S NAME & TITLE : HUYNH LINH PHUONG : CGS00018508 : SEPTEMBER 2014 : ASSOC.PROF.DR PHAN DINH NGUYEN December 2015 Advisor’s assessment Advisor’s signature Huynh Linh Phuong Page i ACKNOWLEDGEMENTS First of all, I would like to send my special thanks to Open University Malaysia and Hutech University had opened a very excellent MBA course for us; and given us an opportunity to study, to expand our knowledge And especially, I would like to express my special gratitude to our Business Research Methods course lecturer, Dr Phan Dinh Nguyen who has shown our class every step of how to a research and run SPSS software Your devoted, enthusiastic, attentive instruction and support that you have given truly help me lot in progression and smoothness of the Case Study Without your teaching & guidance, this Case Study would not be completed Moreover, I want to thank the board of managers and all employees working the branches and transaction offices of Joint Stock Commercial Bank for Foreign Trade of Vietnam (VCB) in Ho Chi Minh City for their precious comments and helping me to collect data for this research study And finally, I wish to give my sincerest and deepest gratitude to my family and all of my sweet friends who always stay next to me, encourage, help, create favorable conditions for me to study and overcome obstacles in life Huynh Linh Phuong Page ii ABSTRACT This study examined the impact of job stress, distributive & procedural justice, working conditions and perception of organization politics on job satisfaction of employees working in Joint Stock Commercial Bank for Foreign Trade of Vietnam (VCB) in Ho Chi Minh City Data was collected through the use of standardized questionnaires Questionnaires were given personally to 200 managerial and nonmanagerial employees in all over branches and transaction offices of VCB; there were 290 completely responses were used for the statistical analysis The collected data were computed and analyzed through Cronbach’s alpha analysis, factor analysis, correlation analysis, and multiple regression analysis The results of the study supported the hypotheses that job stress, distributive & procedural justice, working conditions and perception of organization politics (including general political behavior and get ahead) has significant relationship with employee’s job satisfaction Conclusion: The findings in this study would help managers of VCB to formulate strategies that involved work factors to improve the management of human resource development These strategies would help in influencing positive behaviors among employees, and hence achieve effectiveness and high productivity in the organization The results also suggest reducing work stress, improvement of its working conditions such as clear key performance indicators, more empowerment for decision making, ownership of stock and to obtain high commitment of staff to work for the company Therefore, it was worth the effort for the organization to train and educate their managers on the impact of perceptions of organizational justice on the motivation and commitment of their employees This study has valuable implications for the Human Resources Department of VCB to improve its policies in order to retain talents Keywords: Job satisfaction, job stress, distributive & procedural justice, working conditions, and perception of organizational politics Huynh Linh Phuong Page iii LIST OF ABBREVIATIONS No Abbreviation Definition Joint Stock Commercial Bank for Foreign Trade of VCB JS Job Satisfaction JSS Job Stress Scale DPJ Distributive & Procedural Justice WC Working Conditions POPS Perception of Organizational Politics Scale GPB General Political Behavior GA Get Ahead SPSS Huynh Linh Phuong Vietnam Software Package for Social Sciences Page iv LIST OF TABLES No Table Page Table 1: Measurements and sources 30 Table 2: Cronbach‘s Alpha analysis results 35 Table 3: KMO and Bartlett‘s Test result of independent variables 36 Table 4: Factor analysis results 38 Table 5: KMO and Bartlett‘s Test result of dependent variable 39 Table 6: Results of Correlation Analysis 41 Table 7: Results of Regression Analysis 42 Table 8: Results of Hypothesis Testing 48 Huynh Linh Phuong Page v LIST OF FIGURES No Figure Figure 1: Job Satisfaction model in study of Smith, Kendall, & Hulin (1969) Figure 2: Model of items measuring job satisfaction of Weiss et al (1967) Figure 3: Research model of Job Satisfaction Figure 5: Adjusted research model Huynh Linh Phuong Page 23 24 25 40 Page vi TABLE OF CONTENTS ACKNOWLEDGEMENTS ii ABSTRACT iii LIST OF ABBREVIATIONS iv LIST OF TABLES v LIST OF FIGURES vi TABLE OF CONTENTS vii CHAPTER 1: INTRODUCTION 1.1 Problem Statement 1.2 Background of VCB 1.3 Research Objectives 1.3.1 General objectives 1.3.2 Specific objectives 1.4 Research questions 1.5 Scope and methodology of the study 1.6 Importance of the study 1.7 Significance of the study 1.7.1 Individual Perspective 1.7.2 Organizational perspective 1.8 Research structure CHAPTER 2: LITERATEUR REVIEW 2.1 Job Satisfaction 2.2 Job Stress Scale and its relationship with Job Satisfaction 10 2.3 Distributive & Procedural Justice and its relationship with Job Satisfaction 12 2.4 Working Conditions and its relationship with Job Satisfaction 15 Huynh Linh Phuong Page vii 2.5 Perception of Organizational Politics and its relationship with Job Satisfaction 17 2.6 Review of Relevant Theoretical Models 21 2.7 Research model 24 CHAPTER 3: RESEARCH METHODLOGY 26 3.1 Research design 26 3.2 Data collection methods 26 3.3 Sample design 27 3.3.1 Target population 27 3.3.2 Sample frame and sample location 28 3.3.3 Sampling technique 28 3.3.4 Sample size 28 3.4 Hypotheses, variable description, regression model 29 3.5 Data analysis 32 CHAPTER 4: RESEARCH RESULTS 34 4.1 Reliability analysis 34 4.2 Factor analysis 35 4.2.1 Factor analysis for independent variables 35 4.2.2 Factor analysis for dependent variable 39 4.2.3 Adjusted research model 39 4.3 Correlation Analysis 41 4.4 Regression analysis 42 CHAPTER 5: CONCLUSION 46 5.1 Conclusion and Recommendations 46 5.2 Limitation of the study 52 REFERENCES 54 APPENDIX A: Pilot Test – Reliability 62 Huynh Linh Phuong Page viii Job Stress Scale 62 Distributive and Procedural Justice 64 Working Conditions 65 Perception of Organizational Politics Scale 67 Job Satisfaction 69 APPENDIX B: Factor Analysis 71 Dependent variable 71 Independent variables 72 APPENDIX C: Regression Analysis 78 QUESTIONNAIRE 80 Huynh Linh Phuong Page ix APPENDIX B: Factor Analysis Dependent variable Factor Analysis [DataSet1] C:\Users\ASUS\Downloads\Data P.sav Correlation Matrix JS1 JS2 JS3 JS4 JS5 JS6 JS1 1.000 597 598 632 354 338 JS2 597 1.000 581 631 459 459 JS3 598 581 1.000 659 635 571 JS4 632 631 659 1.000 526 544 JS5 354 459 635 526 1.000 611 JS6 338 459 571 544 611 1.000 Correlation KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy Approx Chi-Square Bartlett's Test of Sphericity 862 501.356 df 15 Sig .000 Communalities Initial Extraction JS1 1.000 551 JS2 1.000 621 JS3 1.000 740 JS4 1.000 721 JS5 1.000 568 JS6 1.000 545 Extraction Method: Principal Component Analysis Total Variance Explained Component Huynh Linh Phuong Initial Eigenvalues Extraction Sums of Squared Loadings Page 71 Total % of Variance Cumulative % Total 3.745 62.421 62.421 833 13.878 76.299 430 7.174 83.473 392 6.528 90.001 316 5.271 95.272 284 4.728 100.000 3.745 % of Variance Cumulative % 62.421 62.421 Extraction Method: Principal Component Analysis Component Matrix a Component JS3 860 JS4 849 JS2 788 JS5 753 JS1 742 JS6 738 Extraction Method: Principal Component Analysis a components extracted Independent variables KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy .858 Approx Chi-Square 2721.514 Bartlett's Test of Sphericity df 351 Sig .000 Communalities Initial Extraction JSS3 1.000 644 JSS5 1.000 681 Huynh Linh Phuong Page 72 JSS6 1.000 660 JSS7 1.000 594 JSS8 1.000 587 JSS9 1.000 686 DPJ2 1.000 577 DPJ3 1.000 604 DPJ4 1.000 644 DPJ5 1.000 484 DPJ6 1.000 682 WC1 1.000 709 WC2 1.000 752 WC3 1.000 762 WC4 1.000 696 WC5 1.000 677 WC6 1.000 662 POPS1 1.000 665 POPS2 1.000 584 POPS3 1.000 627 POPS4 1.000 566 POPS5 1.000 613 POPS6 1.000 727 POPS7 1.000 796 POPS8 1.000 760 POPS9 1.000 653 POPS10 1.000 488 Extraction Method: Principal Component Analysis Huynh Linh Phuong Page 73 Total Variance Explained Component Initial Eigenvalues Total % of Variance Extraction Sums of Squared Loadings Cumulative % Total % of Variance Cumulative % Rotation Sums of Squared Loadings Total % of Variance Cumulative % 8.255 30.575 30.575 8.255 30.575 30.575 4.167 15.433 15.433 4.382 16.230 46.805 4.382 16.230 46.805 3.972 14.710 30.143 2.015 7.465 54.269 2.015 7.465 54.269 3.812 14.119 44.262 1.654 6.127 60.396 1.654 6.127 60.396 2.853 10.567 54.830 1.270 4.704 65.100 1.270 4.704 65.100 2.773 10.271 65.100 915 3.387 68.487 888 3.289 71.776 831 3.076 74.852 714 2.644 77.496 10 662 2.453 79.949 11 613 2.271 82.220 12 520 1.925 84.145 13 490 1.816 85.961 14 474 1.756 87.717 15 423 1.568 89.285 16 367 1.361 90.646 17 365 1.352 91.997 18 315 1.165 93.163 19 292 1.082 94.245 20 257 950 95.195 21 244 905 96.100 22 228 843 96.943 Huynh Linh Phuong Page 74 23 207 767 97.710 24 186 689 98.399 25 167 619 99.018 26 146 541 99.559 27 119 441 100.000 Extraction Method: Principal Component Analysis Huynh Linh Phuong Page 75 Component Matrix a Component JSS3 -.585 JSS5 535 JSS6 -.502 JSS7 -.547 JSS8 -.533 JSS9 -.650 506 DPJ2 DPJ3 538 DPJ4 552 DPJ5 DPJ6 569 WC1 658 WC2 662 WC3 540 WC4 506 558 WC5 610 WC6 546 POPS1 692 POPS2 590 POPS3 642 POPS4 649 POPS5 728 POPS6 690 POPS7 734 POPS8 598 POPS9 611 POPS10 Extraction Method: Principal Component Analysis a components extracted Rotated Component Matrix Huynh Linh Phuong a Page 76 Component JSS3 735 JSS5 816 JSS6 791 JSS7 729 JSS8 704 JSS9 738 DPJ2 684 DPJ3 764 DPJ4 681 DPJ5 650 DPJ6 754 WC1 758 WC2 822 WC3 832 WC4 804 WC5 737 WC6 771 POPS1 725 POPS2 697 POPS3 728 POPS4 620 POPS5 641 POPS6 792 POPS7 736 POPS8 817 POPS9 682 POPS10 634 Extraction Method: Principal Component Analysis Rotation Method: Varimax with Kaiser Normalization a Rotation converged in iterations Component Transformation Matrix Component 1 Huynh Linh Phuong 447 -.487 567 276 407 Page 77 660 450 -.208 510 -.242 -.148 745 455 -.062 462 -.584 -.047 128 789 -.130 -.040 -.058 -.642 193 739 Extraction Method: Principal Component Analysis Rotation Method: Varimax with Kaiser Normalization APPENDIX C: Regression Analysis REGRESSION /MISSING LISTWISE /STATISTICS COEFF OUTS R ANOVA COLLIN TOL /CRITERIA=PIN(.05) POUT(.10) /NOORIGIN /DEPENDENT JS /METHOD=ENTER DPJ WC GPB GA JSS Regression [DataSet1] C:\Users\ASUS\Downloads\Data P.sav Variables Entered/Removed Model Variables Entered a Variables Method Removed JSS, DPJ, GA, WC, GPB Enter b a Dependent Variable: JS b All requested variables entered Model Summary Model R R Square 806 a Adjusted R Std Error of the Square Estimate 650 639 37487 a Predictors: (Constant), JSS, DPJ, GA, WC, GPB a ANOVA Model Sum of Squares Regression Huynh Linh Phuong 42.187 df Mean Square 8.437 F Sig 60.041 Page 78 000 b Residual 22.765 162 Total 64.952 167 141 a Dependent Variable: JS Coefficients Model Unstandardized Standardized Coefficients Coefficients B (Constant) Std Error a t Sig Beta 1.721 355 DPJ 014 067 WC 072 GPB Collinearity Statistics Tolerance VIF 4.842 000 012 -.211 033 721 1.387 054 076 1.345 021 683 1.465 -.424 061 -.455 6.918 000 499 1.982 GA -.202 059 -.211 3.427 001 572 1.748 JSS -.251 054 -.257 -4.609 000 695 1.439 a Dependent Variable: JS b Predictors: (Constant), JSS, DPJ, GA, WC, GPB Collinearity Diagnostics Model Dimension Eigenvalue a Condition Index Variance Proportions (Constant) DPJ WC GPB GA JSS 5.855 1.000 00 00 00 00 00 00 091 8.011 00 00 00 03 02 35 026 14.981 00 06 44 06 12 06 011 22.672 03 63 54 00 09 12 011 23.215 01 02 00 86 57 06 005 33.577 96 29 01 05 20 40 a Dependent Variable: JS Huynh Linh Phuong Page 79 QUESTIONNAIRE Investigator: Huynh Linh Phuong The purpose of conducting this survey is to determine how the impacts toward job satisfaction of employees in Joint Stock Commercial Bank for Foreign Trade of Vietnam in Ho Chi Minh City Introduction: There are sections in this questionnaire Please answer ALL questions in ALL sections For each section, please select ONLY ONE of the number which is the best reflects your opinion on the statement Please chose your answer and put a cross in the box beside it For example: If you make a mistake, please cross out the whole box and then put a cross in the correct answer For example: A JOB SATISFACTION Note: = Strongly agree = Agree = Undecided = Disagree = Strongly disagree You are often bored with your job 2 You feel fairly well satisfied with your present job Huynh Linh Phuong Page 80 You are satisfied with your job for the time being 4 Most days you are enthusiastic about your work 5 You like your job better than the average worker does You find real enjoyment in your work B JOB STRESS SCALE Note: 1-5: strong disagreement to strong agreement TIME STRESS: Working here makes it hard to spend enough time with your family You spend so much time at work; You can‘t see the forest for the trees Working here leaves little time for other activity 10 You frequently get the feeling you are married to the company 11 You have too much work and too little time to it in 12 You sometimes dread the telephone ringing at home because the call might be job-related 13 You feel like you never have a day off 14 Too many people at your level in the company get burned out by job demands Huynh Linh Phuong Page 81 ANXIETY: 15 You have felt fidgety or nervous as a result of your job 16 Your job gets to you more than it should 17 There are lots of times when your job drivers you right up the wall 18 Sometimes when you think about your job you get a tight feeling in your chest 19 You feel guilty when you take time off from job C PERCEPTONS OF ORGANIZATIONAL POLITICS SCALE Note: 1-5: strong disagreement to strong agreement GENERAL POLITICAL BEHAVIOR: 20 One group always gets their way 21 Influential group no one crosses 22 Policy changes help only a few 23 Build themselves up by tearing others down 24 Favoritism not merit gets people ahead 25 Don‘t speak up for fear of retaliation Huynh Linh Phuong Page 82 GET AHEAD: 26 Promotions go to top performers 5 5 30 Pay and promotion policies are not politically applied 31 Pay and promotion consistent with policies 5 27 Rewards come to hard workers 28 Encouraged to speak out 29 No place for yes men PAY AND PROMOTION POLICIES: decisions are D WORKING CONDITIONS Note: = A very great deal = Little = Quite a bit = Very little 32 How much pride can you take in the appearance of your work place? = Some Note: = Extremely satisfied = Well satisfied = Somewhat dissatisfied = Very satisfied 33 How you feel about your working conditions? Huynh Linh Phuong = Only moderately satisfied Page 83 Note: = They have a very favorable influence = They have a favorable influence = They have no influence one way or the other = They have a slightly unfavorable influence = They have a very unfavorable influence 34 How your working conditions influence your overall attitude toward your job? Note: = Very pleasant unpleasant = Unpleasant = Pleasant = Neither pleasant nor = Very unpleasant 35 The working conditions make working here: Note: = Very good = Reasonably good = Relatively poor = Very poor 36 For the work you do, your working conditions are = Neither good nor poor Note: = They help me a great deal = They help me a little = They make little difference = They tend to make it difficult = They make it very difficult Huynh Linh Phuong Page 84 37 How your working conditions affect the way you your job E DISTRIBUTIVE AND PRODURAL JUSTICE Note: 1-5 = definitely disagree to definitely agree PROCEDURAL JUSTICE: 38 You have considerable voice determining your performance in 39 You have considerable determining your job duties voice in 40 You have considerable voice determining your job assignment in 41 Most of your job assignments have been fair 42 The treatment that you have generally received here at the company has been fair 43 You have received fair performance evaluations DISTRIBUTIVE JUSTICE: THANK YOU FOR YOUR PRECIOUS TIME AND CO-OPERATION Huynh Linh Phuong Page 85 [...]... Satisfaction of Employees: A Case Study of Joint Stock Commercial Bank for Foreign Trade of Vietnam in Ho Chi Minh City was conducted The main focus of this study was to assess the job satisfaction of bank employees in the context of organizational factors 1.3 Research Objectives 1.3.1 General objectives Huynh Linh Phuong Page 4 Identify the factors influencing job satisfaction of employees in Joint Stock Commercial. .. specialized bank for foreign trade, VCB nowadays has become a bank providing customers with a wide range of leading financial services in international trade; traditional services such as capital trading, capital mobilization, credit, project financing…etc., and modern banking segment such as trading and derivatives, card services, e-banking and so on VCB has many advantages of applying advanced technology into... encouraging their staffs to be assured, close-knit with the organization Understanding factors underpinning job satisfaction offers a significant meaning to the bank, helping them to adjust their human management policies sensibly Therefore, the study of job satisfaction of employees at VCB in Ho Chi Minh City is necessary In this background the present study entitled Factors Influencing Job Satisfaction. .. corporate banking, trade finance, personal banking, information technology, audit and legal & compliance) of 8 branches and transaction offices of VCB in Ho Chi Minh City in 2015 In this study, qualitative research method is utilized to obtain information with reference for the research The researcher uses the comparative method, analysis in order to provide a solid theoretical basis Besides, the thesis also... human management policies in an appropriate way and carry out the strategic objectives of the organization By using quantitative research methods, this study aims to find out the factors influencing job satisfaction of employees and offer some ideas to help the organization build the human resource policies which are more attractive to employees 1.2 Background of VCB Joint Stock Commercial Bank for Foreign. .. Foreign Trade of Vietnam, formerly known as Bank for Foreign trade of Vietnam, was established on 01/04/1963 from the Foreign Exchange Bureau (of the State Bank of Vietnam) Being the first state commercial bank chosen for pilot privatization by the Government, VCB officially came in to operation on 02/06/2008, after successfully implementing the equitization plan through IPO VCB (stock code: VCB) officially... individually on the job satisfaction of the employees to the organization they work in 1.7 Significance of the study This study is beneficial to two parties, which were employees and the organization particularly Joint Stock Commercial Bank for Foreign Trade of Vietnam From the study, the researcher has investigated the factors which will affect job satisfaction of employees to their current organization... establish a sustained development with ambition to became a bank has a wide range, great admin ability, working scope that could influenced the region and overseas in the near future At present, there are 23 branches and transaction offices of VCB in Ho Chi Minh City To get the development as it is today, VCB has always attached special importance to the human resources The bank has made great efforts... Commercial Bank for Foreign Trade of Vietnam in Ho Chi Minh City 1.3.2 Specific objectives The current study seeks to achieve the following objectives: 1) To identify the factors affecting job satisfaction of the employees 2) To measure the influence degree of the factors on job satisfaction of the employees 3) To provide the solutions to increase job satisfaction of the employees 1.4 Research questions In. .. reaching out, Vietnam must open the domestic market, including the finance banking sector The competition of organizations in the field of finance and banking is increasingly becoming tough, especially human resources factor as quality of staffs is one of the intrinsic factors affecting the competitive competence of the bank Facing to this situation, to keep a long term employees the bank should have policies ... Case Study of Joint Stock Commercial Bank for Foreign Trade of Vietnam in Ho Chi Minh City was conducted The main focus of this study was to assess the job satisfaction of bank employees in the... organization politics on job satisfaction of employees working in Joint Stock Commercial Bank for Foreign Trade of Vietnam (VCB) in Ho Chi Minh City Data was collected through the use of standardized... Background of VCB Joint Stock Commercial Bank for Foreign Trade of Vietnam, formerly known as Bank for Foreign trade of Vietnam, was established on 01/04/1963 from the Foreign Exchange Bureau