Research about job satisfaction at PG bank (vietnam)

MASTER OF BUSINESS ADMINISTRATION INTERNATIONAL PROGRAM  RESEARCH PROJECT (BMBR5103) RESEARCH ABOUT JOB SATISFACTION AT PG BANK (VIETNAM) STUDENT’S FULL NAME : PHAN BA PHUONG STUDENT ID : CGS00019372 INTAKE : MARCH 2015 ADVISOR’S NAME & TITLE : NGUYEN THE KHAI (DBA) ADVISOR’S ASSESSMENT ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ADVISOR’S SIGNATURE ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… NGUYEN THE KHAI (DBA) ACKNOWLEDGMENTS Suggestions have been received from many of my lecturer and classmate during research progress Each of those who have offered comments and suggestions always has my thanks The efforts of many people are needed to develop and improve this research Among these people are the reviewers and consultants who point out areas of concern, cite areas of strength, and make recommendations for change I am grateful for the outstanding support from my lecturer NGUYEN THE KHAI (DBA) and PG Bank for permission the employees answer the questions in the survey and support too much information related to my research And, I also specially thank to my members of family, friends and colleagues always mobilize me to finish this research Once again, I thank very much to all Phan Ba Phuong Student CONTENTS PART ONE ABSTRACT INTRODUCTION About PG Bank 2 Organization structure and Corporate culture Mix organizational structure Achievements Strategy Shareholders Corporate culture Research problem statement Research objective 10 Research scope 11 Significance of research 11 PART TWO LITERATURE REVIEW 12 Definition of Constructs 12 Job Satisfaction 12 Job Cognitions 13 Distributive, Procedural, Interactive Justice 14 Perceived Person – Organization Fit 14 Perceived Importance of Workplace values 16 Argument for the relationship among the constructs 17 X theory and Y theory 17 Maslow’s theory 20 Alderfer’s ERG theory 22 McClelland’s theory 24 Herzberg’s two-factor theory 25 Hackman and Oldham's Job Characteristics 27 10 Hypotheses 29 11 Research model 30 PART THREE 12 13 PART FOUR 14 15 16 PART FIVE METHODS 30 Data collection 30 Design template scale 30 Data collection progress 33 Data analysis 34 RESULTS 34 Cronbach’s Alpha 34 Cronbach’s Alpha standard applied 34 Cronbach’s Alpha of constructs 35 Statistics information 36 Descriptive statistics 36 Correlation statistics 37 Hypotheses testing 38 Hypothesis proposed (H1) 39 Hypothesis proposed (H2) 39 Hypothesis proposed (H3) 40 Hypothesis proposed (H4) 41 CONCLUSIONS 42 17 Discussion 42 18 Limitation of research 43 19 Forecast recommendation 43 REFERENCES 44 47 APPENDIX Appendix 1: Survey 47 Appendix 2: Presentation 52 FIGURE & TABLE FIGURE Figure Maslow's hierarchy of needs 21 Figure Alderfer’s ERG theory 23 Figure McClelland’s theory 24 Figure Herzberg’s two-factor theory 26 Figure Hackman and Oldham's Job Characteristics 29 Figure Research model of Job Satisfaction 30 Table Job Satisfaction Scale 31 Table Satisfaction with Job cognitions Scale 31 Table Distributive, Procedural, Interactive Justice Scale 32 Table Perceived Person – Organization Fit Scale 32 Table Perceived Importance – Workplace Values Scale 33 Table Time table for data collection progress 34 Table Cronbach’s Alpha - Internal Consistency 35 Table Cronbach’s Alpha of Job Satisfaction 35 Table Cronbach’s Alpha of Job Cognitions 35 TABLE Table 10 Cronbach’s Alpha of Distributive, Procedural, Interactive Justice Table 11 Cronbach’s Alpha of Perceived Person – Organization Fit Table 12 Cronbach’s Alpha of Perceived Importance – Workplace Values Table 13 Descriptive statistics 37 Table 14 Correlation statistics 38 Table 15 Model summary of H1 39 Table 16 Coefficients of H1 39 Table 17 Model summary of H2 39 Table 18 Coefficients of H2 40 Table 19 Model summary of H3 40 Table 20 Coefficients of H3 40 Table 21 Model summary of H4 41 Table 22 Coefficients of H4 41 35 36 36 Business Research Methods P a g e / 55 ABSTRACT T his purpose of this research is way to find the factors influence to the Job Satisfaction of employees working at PG Bank This research project will use Business Research Methods to determine Job Satisfaction and what other main factors that it influence job satisfaction And this research also was conducted by quantitative method with source data is surveys that it issued by offline to 500 employees of PG Bank to collect the ideas and comments of employees about job satisfaction Next, the result of these surveys shall be statistically analyzed by software SPSS version 22 (copyright of IBM) Hypotheses used this research includes five constructs: one dependent construct (Job Satisfaction) and four independent constructs (Job Cognitions; Distributive, Procedural, Interactive Justice; Perceived PersonOrganization Fit; Perceived Importance of Workplace values) I hope results of this research will help the CEO; managers of PG Bank have some reference angle in human resource management to improve and increase our quality resource based on job satisfaction of employees as well as you should have perception clearly that job satisfaction of employees will impact to working effective, ability of competitiveness of the company on banking and financial sector Vietnam market Key words in this research: Overall Job Satisfaction, Job Cognitions; Distributive, Procedural, Interactive Justice; Perceived Person; Perceived Importance and PG Bank Student: Phan Ba Phuong (ID: CGS00019372) Business Research Methods P a g e / 55 PART ONE: INTRODUCTION About PG Bank History Petrolimex Group Commercial Joint Stock Bank (PG Bank), formerly known as Dong Thap Muoi Rural Joint Stock Bank, was established on 13th Nov 1993 with initial chartered capital of VND 700 million After nearly 20 years of operation, the Bank has developed steadily and succeeded in building up customers trust From 2005, with the participation of strategic shareholder, which is Vietnam National Petroleum Group (Petrolimex), PG Bank experienced outstanding achievements, in terms of both operating scale and effectiveness The year 2007 marked a significant development milestone of PG Bank by the transformation to urban bank model which is sound step forward on the road to become a leading Vietnamese universal bank • December 2011: Officially launching new Head quarter in Mipec Tower, 229 Tay Son (Hanoi) • August 02, 2012: Chartered capital officially increased to VND 3,000 billion • May 2013: Flexipay - money transfer service was launched at Petrolimex's petrol stations • June 2013: Visa Credit Card was rolled out • December 2013: PG Bank was extended the operating license to 99 years from 13/11/1993 according to the Decision of the State Bank of Vietnam on amending the contents of the Operating License Student: Phan Ba Phuong (ID: CGS00019372) Business Research Methods P a g e / 55 Products and Services PG Bank provides a comprehensive range of traditional banking products and services, including deposit and lending products, cross-border remittance service, trade financing and card-related services In addition, the Bank has also put great effort in developing and offering customers more diversified and advanced financial products and services, notably corporate finance and commodity derivatives Information System The Internet Banking service of PG Bank has been enhancing continuously in recent years, allowing customers to conveniently make banking transactions on the Bank’s portal with personal information being kept at strictest confidential To ensure best Student: Phan Ba Phuong (ID: CGS00019372) Business Research Methods P a g e / 55 support possible to all the operations of the Bank, in recent years PG Bank has invested heavily on the information system At the moment, PG Bank is utilizing FlexCube, the corebanking system provided by Oracle while using the advanced information security system developed by Checkpoint Vision and Business strategy To become a leading commercial joint-stock bank offering outstanding quality financial and banking services based on highly competent and dedicated personnel, and a world-class technology Philosophies Moving towards a multi-functional banking model, in which giving priority to and applying differentiation strategy in the fields that PG Bank has competitive advantages: Corporate banking: target at major shareholders and the shareholders’ clients and partners, small and medium enterprises Retail banking: focus on individual & household businesses Investment banking: provide investment banking services to corporate customers Financial Highlights - Since the transformation from a rural bank to an urban bank in 2007, PG Bank has continuously accomplished marvelous achievements Student: Phan Ba Phuong (ID: CGS00019372) Business Research Methods P a g e 41 / 55 From results: Model summary of H3 and Coefficient of H3, we have:  R square is 188: greater than  Unstandardized coefficients beta is 188: the same sign with hypothesis  P value (Sig) is 0.002: less than 0.05 We can conclude that the hypothesis H3 is supported Hypothesis proposed (H4) There is positive relationship between Perceived Importance – Workplace Values and Job Satisfaction (JS) Model Summary Model R Adjusted R Std Error of the Square Estimate R Square 142 a 020 016 54061 a Predictors: (Constant), PIWV (Table 21: Model summary of H4) Coefficients a Standardized Unstandardized Coefficients Model B Coefficients Std Error (Constant) 4.093 033 (Constant) 4.093 033 Beta T 142 Sig 123.953 000 123.953 000 a Dependent Variable: JS (Table 22: Coefficients of H4) From results: Model summary of H4 and Coefficient of H4, we have:  R square is 0.142: greater than  Unstandardized coefficients beta is 142: the same sign with hypothesis  P value (Sig) is 0.000: greater than 0.05 We can conclude that the hypothesis H4 is supported Student: Phan Ba Phuong (ID: CGS00019372) Business Research Methods P a g e 42 / 55 PART FIVE: CONCLUSIONS Discussion This research conducted to analyze the levels of the relationship and influence to Job Satisfaction by four hypotheses: Job Cognitions; Distributive, Procedural, Interactive Justice; Perceived Person - Organization Fit; Perceived Importance of Workplace Values of employees at PG Bank  Firstly: we can assess three hypotheses Distributive, Procedural, Interactive Justice; Perceived Person - Organization Fit; Perceived Importance of Workplace Values have positive relationship and influence to Job Satisfaction This thing also is easy to understand and perfectly match with practical context of human resource management at PG Bank As leading banking and financial sector on Vietnam market, the policies, organization structure, leadership style, corporate culture … of PG Bank always build to orient the employees In thinking of Board of Director, CEO PG Bank, this thing (Job Satisfaction) is top concern with their employees  Secondly: with hypothesis Job Cognitions, we can assess this hypothesis is less relationship and influence to Job Satisfaction Practical, banking and financial environment at Vietnam always having too much pressure and changes because of influence of state’s macro-policies such as economic, inflation, exchange rate, liquidity, legal, … and series other factors such as population, urbanization rate, competitive,… Therefore, employees always seem their ability not align with the working development every day However, the banking and financial Student: Phan Ba Phuong (ID: CGS00019372) Business Research Methods P a g e 43 / 55 sector is a young profession at Vietnam in the present context of economic difficulty; to complete the experience of the employees working in the banking and financial sector is only matter of time for making employees get Job Satisfaction at PG Bank Limitation of research This research will have some limitation:  The samples is very small (n = 268)  This research will have some limitation because it only focus related contents at PG Bank and also can’t be generalized for banking and financial sector at Vietnam  The survey conducted in slightly short time The survey respondents are more qualified and different perceptions about Job Satisfaction as well as the contents of survey shall be more grammatical errors because of English Vietnamese translation progress, it may cause confusion for the reader when they answer Forecast recommendation Vietnam joined the WTO, TPP, ASEAN (AEC), thus working experience in the banking and financial sector is important This experience is reflected in the understanding of international law, the trading skills, negotiation skills and knowledge about cultural working of the countries in the world PG Bank need to enhance recruitment of experience employees and local training Besides, PG Bank should enhance to recruit the foreigners banking and financial Student: Phan Ba Phuong (ID: CGS00019372) Business Research Methods P a g e 44 / 55 sector professional to take advantage of their relationships, language, experience for creating dynamic, efficient working environment as well as sharing, increasing and development experience working for Vietnamese employees This thing will contribute to increase Job Satisfaction; effect to competitive advantage by working efficiency of employees and help the PG Bank develops sustainably REFENRENCES William G Zikmund (2013) Business Research Methods 13th McGraw-Hill/Irwin Maslow A H (1943) Theory of Human Motivation Psychological Review, 370-396 Kreitner R & Kinicki A (2007) Organizational Behavior 7th McGraw-Hill/Irwin Robbins, Stephen P (2002) Organizational Behavior 10th Pearson Efere P (2005) Motivation and Job Satisfaction Trans-Atlantic College, London Gary Dessler (2013) Human Resource Management 13th McGraw-Hill/Irwin Dail L Fields (2002) Taking the measure of work: a guide to validated scales for organizational research and diagnosis Regent University Thomas S Bateman, Scott A Snell (2013) Management - Leading & Collaborating in a Competitive World 10th McGraw/Hill Sahin F (2012) “The mediating effect of leader-member exchange on the relationship between X and Y theory management styles and effective commitment: A multilevel analysis” Journal of Management and Organization, 18 (2), 159–174 Tang T L, Ibrahim A H, West W B (2002) “Effects of war-related stress on the satisfaction of human needs: The United States and the Middle East” International Journal of Management Theory and Practices (1): 35-53 Student: Phan Ba Phuong (ID: CGS00019372) Business Research Methods P a g e 45 / 55 Cianci R et al (2003) “Maslow's hierarchy of needs: Does it apply in a collectivist culture” Journal of Applied Management and Entrepreneurship (2): 143-161 Kenrick D T, Griskevicius V, Neuberg S L, Schaller M (2010) “Renovating the pyramid of needs: Contemporary extensions built upon ancient foundations” Perspectives on Psychological Science (3): 157-163 C.A Arnolds and C Boshoff (2002) “Compensation, esteem valence and job performance: an empirical assessment of Alderfer's ERG theory” The International Journal of Human Resource Management Harrell, Adrian M, Stahl, Michael J (1981) “A behavioral decision theory approach for measuring McClelland's trichotomy of needs” Journal of Applied Psychology, Vol 66 (2), 242-247 Robert J House and Lawrence A Wigdor (2006) “Herzberg's dual-factor theory of job satisfaction and motivation: A review of the evidence and a criticism” Personnel Psychology, Vol 20 (4), 369-390 King, Nathan (1970) “Clarification and evaluation of the two-factor theory of job satisfaction” Psychological Bulletin, Vol 74 (1), 18-31 Management (2014) Retrieval from http://management.about.com/ Management of Forbes (2014) Retrieval from http://www.forbes.com/management/ Basic management models and theories associated with motivation and leadership and be able to apply them to practical situations and problems (2014) Retrieval from http://www.healthknowledge.org.uk/public-health-textbook/organisationmanagement/5c-management-change/basic-management-models Student: Phan Ba Phuong (ID: CGS00019372) Business Research Methods P a g e 46 / 55 Historical and contemporary theories of management (2014) Retrieval from http://managementhelp.org/management/theories.htm Adkins, C L., Russell, C J., & Werbel, J D (1994) Judgments of fit in the selection process: The role of work value congruence Personnel Psychology, 47, 605-623 Arvey, R D & Campion, J E (1982) The employment interview: A summary and review of recent research Personnel Psychology, 35, 281-322 Barley, S R, Meyer, G W., & Gash, D C (1988) Cultures of culture: Academics, practitioners and the pragmatics of normative control Administrative Science Quarterly, 33, 24-60 Barney, J (1986) Organizational culture: Can it be a source of sustained competitive advantage? Academy of Management Review, 11, 656-665 Barr, M A., & Hitt, M A (1986) A comparison of selection decision models in manager versus student samples Personnel Psychology, 39, 599-617 Baron, R A (1989) Impression management by applicants during employment interviews: The"too much of a good thing" effect In R W Eder & G R Ferris (Eds.), The employment interview: Theory, research, and practice (pp 204-215) Newbury Park, CA: Sage http://www.pgbank.com.vn/Desktop.aspx/AboutUs/Introductions/Introduction/ The End Student: Phan Ba Phuong (ID: CGS00019372) Business Research Methods P a g e 47 / 55 APPENDIX Appendix 1: Survey JOB SATISFACTION SURVEY AT PG BANK (VIETNAM) INTRODUCTION Dear Mr / Ms, My name is Phan Ba Phuong I’m a student of MBA Collaboration Program at Open University Malaysia and Ho Chi Minh City University of Technology I am conducting the research for my thesis My research thesis is about: Job Satisfaction at PG Bank I would like to look for your help by answering the following questionnaire All of your information will be strictly confidentially kept and be solely used for the purpose of my studying Your value time and feedback are extremely useful and meaningful to my fulfillment of my graduation thesis Thank you very much for your very kindly response to this questionnaire It is highly appreciated If you need any information related to this questionnaire, would you please call me at my mobile number 84.909726265 or contact with me through my email at pbp279@gmail.com/phuongpb.pgbank@petrolimex.com.vn Thank you very much! INSTRUCTION ON HOW TO TICK Choose: Cancel: SURVEY Student: Phan Ba Phuong (ID: CGS00019372) Re-choose: Business Research Methods P a g e 48 / 55 Job Satisfaction It was developed by Cammann, Fichman, Jenkins, and Klesh (1983) as part of the Michigan Organizational Assessment Questionnaire (OAQ), uses three items to describe an employee’s subjective response to working in his or her job and organization Strongly disagree Statement Strongly agree All in all, I am satisfied with my job In general, I like my job In general, I like working here Job Cognitions It was developed by Williams and Anderson (1991),asks employees to describe the extent to which 20 statements are accurate descriptions of the nature of a job It includes items and used the 5-point Likert-type Never true Statement Am able to keep busy Have the chance to work alone 10 Have the chance to different things 11 Have the chance to be somebody 12 My manager understands employees 13 My manager makes competent decisions 14 Can things that not go against conscience Student: Phan Ba Phuong (ID: CGS00019372) Always true 5 5 5 5 Business Research Methods P a g e 49 / 55 Distributive, Procedural, Interactive Justice It was developed by Niehoff and Moorman (1993) A distributive justice subscale (five items) describes the extent to which an employee believes that his or her work outcomes, such as rewards and recognition, are fair The outcomes include pay level, work schedule, workload, and job responsibilities Strongly disagree Statement Strongly agree My work schedule is fair 5 I think that my level of pay is fair I consider my workload to be quite fair Overall, the rewards I receive here are quite fair 10 I fell that my job responsibilities are fair Perceived Person – Organization Fit It was developed by Cable and Judge (1996), uses three items to directly assess an employee’s perception of his or her fit with an organization Not at all Statement completely 5 5 To what degree you feel your values “match” or fit this organization and the current employees in this organization? My values match those of the current employees in this organization Do you think the values and “personality” of this organization reflect your own values and personality? Student: Phan Ba Phuong (ID: CGS00019372) Business Research Methods P a g e 50 / 55 Perceived Importance – Workplace Values It was developed by Van Dyne, Graham, and Dienesch (1994), It includes items Not important at all extremely important Statement 5 10 Reputation for quality surpasses major competitors 11 Innovative products and services of central importance 5 5 High – quality products and services of central importance Individual employees recognized and rewarded for superior performance 12 Individual employees recognized and rewarded for innovative work 13 Reputation for innovation surpasses major competitors 14 Widespread participation in decision making highly valued PLEASE TELL ME JUST A BIT ABOUT YOURSELF… Gender  Male  Female  24 – 29  30 – 35  41 – 46  47 – 60 Age  36 – 40 Education  High school  College  Bachelor  Master  PhD  Other Student: Phan Ba Phuong (ID: CGS00019372) Business Research Methods P a g e 51 / 55 Your position  Officer  Engineer  Supervisor  Clerk  Assistant  Director How long have you been working at PG Bank (working experience)?  Under months  months - year  - year  – years  – years  Over years THANK YOU FOR YOUR SUPPORT AND CO-OPERATION! Student: Phan Ba Phuong (ID: CGS00019372) Business Research Methods Appendix 2: Presentation Student: Phan Ba Phuong (ID: CGS00019372) P a g e 52 / 55 Business Research Methods P a g e 53 / 55 Research model Job Cognitions Distributive, Procedural, Interactive Justice Perceived Person – Organization Fit Perceived Importance of Workplace Values H1 H2 H3 H4 Job Satisfaction DV Student: Phan Ba Phuong (ID: CGS00019372) Business Research Methods P a g e 54 / 55 Hypotheses testing results No Type Variable / Construct R square Shareholders’ Meeting Beta Sig Assessment H1, H- Job Cognitions 0.013 0.114 H2, H+ Distributive, Procedural, Interactive Justice 0.179 0.423 0.000 Support H3, H+ Perceived Person – Organization Fit 0.035 0.188 0.002 Support H4, H+ Perceived Importance of Workplace Values Supervisory 0.063 BoardNot Support Internal auditing Director 0.020 0.142 Rule:  Value of R square: greater than  Unstandardized coefficients beta: the same sign with hypothesis  Value of Sig: less than 0.05 Student: Phan Ba Phuong (ID: CGS00019372) 0.000 Support Business Research Methods Student: Phan Ba Phuong (ID: CGS00019372) P a g e 55 / 55 [...]... Organization Fit; Perceived Importance of Workplace values are problems for human resource management at PG Bank Research objectives This purpose of this research is way to find the factors influence to the Job Satisfaction of employees working at PG Bank My research will focus 3 main factors:  Firstly: search related information and try to define what meaning Job Satisfaction is of employees at PG Bank. .. into two levels: affective job satisfaction and cognitive job satisfaction Affective job satisfaction is a person's emotional feeling about the job as a whole Cognitive job satisfaction is how satisfied employees feel concerning some aspect of their job, such as pay, hours, or benefits Student: Phan Ba Phuong (ID: CGS00019372) Business Research Methods P a g e 13 / 55 Job satisfaction can also be seen... motivation, based on the notion that the presence of one set of job characteristics or incentives leads to worker satisfaction at work, while another and separate set of job characteristics leads to dissatisfaction at work Thus, satisfaction and dissatisfaction are not on a continuum with one increasing as the other diminishes, but are independent phenomena This theory suggests that to improve job attitudes... Perceived Importance of Workplace Values and Job Satisfaction Research model Job Cognitions H1 Distributive, Procedural, Interactive Justice H2 - Perceived Person – Organization Fit + H3 Perceived Importance of Workplace Values + Job Satisfaction Figure 6: Research model of Job Satisfaction PART THREE: METHODS Data collection Design template scale Job Satisfaction Student: Phan Ba Phuong (ID: CGS00019372)... Business Research Methods P a g e 25 / 55 Herzberg’s two-factor theory Contents The two-factor theory (also known as Herzberg's motivation-hygiene theory and dualfactor theory) states that there are certain factors in the workplace that cause job satisfaction, while a separate set of factors cause dissatisfaction It was developed by psychologist Frederick Herzberg, who theorized that job satisfaction and job. .. both the global level or at the facet level Job satisfaction is the level of contentment a person feels regarding his or her job This feeling is mainly based on an individual's perception of satisfaction Job satisfaction can be influenced by a person's ability to complete required tasks, the level of communication in an organization, and the way management treats employees Job satisfaction falls into... CGS00019372) Business Research Methods P a g e 30 / 55  H1: There is less positive relationship between Job Cognitions and Job Satisfaction  H2: There is a positive relationship between Distributive, Procedural, Interactive Justice and Job Satisfaction  H3: There is a positive relationship between Perceived Person – Organization Fit and Job Satisfaction  H4: There is a positive relationship between... good people are becoming big issue of PG Bank CEO at PG Bank realized Job Satisfaction of employees is important factor for PG Bank develop sustainably their human resource to help organization to operate more efficient, produce quality of products and services, build brand awareness, customer trust and loyalty… But, some factors such as Overall Job Satisfaction; Job Cognitions; Distributive, Procedural,... Research problem statement PG Bank is 100% Vietnamese enterprise Currently, in the context of the Vietnam financial and banking business very tough and working environment of Vietnamese financial and banking has too many changes but not yet have any researches finding about job satisfaction of employees at these organizations Practice of many countries shows that, if the development of the banking system... has shown that the factors that encourage good if addressed will create satisfaction from that motivate employees to work very hard, harder But if not resolved, it creates good condition is not satisfied, but not necessarily cause discontent Meanwhile factor for maintaining well if not resolved will create resentment, if solved would create states not unhappy with the situation but not satisfied This