Apply job descriptive Index(JDI) to assess job satisfaction of staff at promind

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ID No : CGS00019067 Class: MBAOQUMI114-K16A OPEN UNIVERSITY MALAYSIA x RESEARCH PROJECT wr (BMBR5103)

APPLY JOB DESCRIPTIVE INDEX (JDI) TO ASSESS JOB SATISFACTION OF STAFFS AT PROMIND

: NGUYEN PHU HIEN

STUDENT ID : CGS00019067

: NOV 2014 INTAKE

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ID No : CGSC0019067 O UM Class: MBAOUMI114-KI6A OPEN UNIVERSITY MALAYSIA TABLE OF CONTENTS ACKNOWLEDGEMENTTS 5< nành 1121110181100 n1 10 6 LIST OF FIGURES Ăn HH n1 0121110211101 11 7 IIkY09)0.):102 111557 .ố 8 F\2):):02147 9019) 10 Lý): la ốẽ 11

CHAPTER I — INTRODUC TIƠN 5-5-5 sọ nen 1e srree 12 I.1 Company Introduction -sccenenhhhhHHrrerrrrererrrrie 12 1.2 Research IntroductiOH ss<ssssg nh 12511 13

1.2.1 Problem statement ¿ 5< St thi 1811118101158 13

1.2.2 Purpose of the stUdy -+-<-+eeerertHHHH tre 14 1.2.3 The scope of the research .-. cà c2ernerrieirrrrrrrrriirerree 14 1.2.4 Research quesfion -. sxccree+eerrhnnrenH 111.11 15 CHAPTER II - LITERATURE REVIEW ị cài 16 2.0 Theory of job satisfaction - ren 16

2.1 Research projects have used JDI in the past -s-sssererereerrrrrrrrrerrrr 17

2.2 Research projects have used JDI over the worÌd -ceerersererrertee 18

2.3 Research projects are used in Vietnam -ceeerrrrririirdirrrrrrrrire 21

2.4 The nature of JDI and its roÍ€S -¿- +: s+<5 nhe 1e 22 CHAPTER III— RESEARCH MODEL AND HYPOTHESES 26 k8: o0 8 .ốỐố 26

3.1.1 Dependent Variables ‹ cành t1nnrtrrre 26

3.1.2 Independent Variables ccccnsehihrrrerreiieriiierirrireeeeeee 26

ENEie l Sẽ .ố 27

3.2 Research Hypoth€ses ccsrnenehHhhtr111212.11.nnn n0 27 3.3 Contents of the researcH - + s44 HH n2122110121111181111111 1n 28 3.4 Research design - se ehhnnHhhnhHhH1012420811180.00110100nn 29

ni nh 11 33 a

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Full name: NGUYEN PHU HIEN

ID No : CGS00019067 U

Class: MBAQUMI114-K16A OPEN UNIVERSITY MALAYSIA

3.6 Method of testing the sce - «series 34

3.7 Exploratory Factor Analysis - EEA -eeeerereerrrdrrrdrrrrrrrrrrrrre 34

3.8 Constructing Linear RegresSiOn - -c-ceneerhrrererrerrrrrrrsrrreie 34 3.9 Detection of conformity of hypotheses using the least squares method 35 3.9.1 Testing of hypothe§e€s - c+ st sen 01.1 1 tre 36 3.9.2 Testing the suitability of the model . -crseeeereerrrrrrrrerrree 36 CHAPTER IV — ANALYSIS AND RESULTS .cccscrecssesetsssessensnreensenesesenanneneaans 37 4.1 Described saimpes - - - cà 339tr 122210011011enr 37 4.2 The job satisfaction of samples -cccsereerrrirrriieiirerrrrirrrrrrrree 40 4.3 Assess the reliability and relevance of the scaÏe e -eernrerirrre 42 4.4 Testing Cronbach Alpha coefficient for the factor “The nature of work” .43 4.5 Testing Cronbach Alpha coefficient for the factor “Training and Promotion”

¬ lv 43

4.6 Testing Cronbach Alpha coefficient for the factor “Superiors” 44 4.7 Testing Cronbach Alpha coefficient for the factor “Colleagues” - 44

4.8 Testing Cronbach Alpha coefficient for the factor “Salary” - 45

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4.15 Adjusted research hypoth€sis -. ceeehehreriiririiiirrrrrre 52

4.16 Regression AnaÌWSÌS -. chen 001101100111 33

4.16.1 The correlation between variables - «c5 sinh 53 4.17 The construction of regression MOdel cesseseeesseteteeetersesseeeerenereesenenenes 55 4.17.1 Construction of regression by using Enter method . - 35 4.17.2 Testing hypotheses: .cccscsceeenenrrrrrriierirriie 56 4.18 The construction of regression by using Stepwise method 60 4.19 Testing the suitability of the model .- ++-++exsrerersrreerrerrrrerirre 62 4.20 The importance of the independent variables in the model .- 63 4.21 Checking the hypothetical phenomenon violated by using the least square 6 0 .a 63

CHAPTER V — CONCLUSION s- sen 67

5.1 Summary and Discussion - : sec rrntereretrrrteitiritrtrrrrrrrserrrrer 67 5.2 The construction of Organizational culture at ProMind -‹ 67 ;3995):40))/05 20777 — 69

232009950127 73

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ID No : CGS00019067 OUM

Class: MBAQUM1114-K16A OPEN UNIVERSITY MALAYSIA

ACKNOWLEDGEMENTS

I would like to thank teachers who teaching in Hutech as well as OUM for teaching and imparted to me the invaluable knowledge to make the foundation for the implementation of this research

I am much obliged to Dr Bui Phi Hung was devoted guide and advise me so I can

finish this dissertation

I also would like to thank my classmates, colleagues who have helped me to answer

the questionnaire to help me get data sources for analysis and also provide the result for this research

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Class: MBAQUMI114-K16A OPEN UNIVERSITY MALAYSIA,

LIST OF FIGURES Figure 1: Initial research model

Figure 2: Official research model

Figure 3: Adjustment research model

Figure 4: Scatterplot graph detect the simultaneous linear Figure 5: P-Plot graph detects residual abnormal distribution Figure 6: Histogram graph detects residual abnormal distribution

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ID No : CGS00019067 Full name: NGUYEN PHU HIEN ( O UM Class: MBAQUM1114-K16A Table 1: Table 2: Table 3: Table 4: Table 5: Table 6: Table 7: Table 8: Table 9: Table 10: Table 11: Table 12: Table 13: Table 14: Table 15: Table 16: Table 17: Table 18: Table 19: BMBRS103 OPEN UNIVERSITY MALAYSIA LIST OF TABLES

Summary of some studies over the world Dissertation research process

Scale assessment for Job Satisfaction

Classify the results by gender

Classify the results by age

Classify the results by education background Classify the results by working position Classify the results by personal income

The average results for answering the questions

Statically summarized overall variable of factor “The nature of

work”

Statically summarized overall variable of factor “Training and

Promotion”

Statically summarized overall variable of factor “Superiors”

Statically summarized overall variable of factor “Colleagues” Statically summarized overall variable of factor “Salary” Component Matrix

KMO and Bartlett’s Test

The observed variables of factor 1 The observed variables of factor 2

The observed variables of factor 3

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Table 20: The observed variables of factor 4 Table 21: The observed variables of factor 5 Table 22: The observed variables of factor 6 Table 23: A correlation matrix between variables Table 24: Summarized model using the Enter method

Table 25: Results of linear regression by using Enter method

Table 26: Summarized model using the Enter method after eliminated variable

Table 27: Results of linear regression by using Enter method after eliminated variable

Table 28: Summarized model using stepwise method

Table 29: Results of linear regression follows Stepwise method

Table 30: Testing constant variance by using Spearman's rank

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Full name: NGUYEN PHU HIEN ID No : CGS00019067 Class: MBAOUM1114-K16A

ABBREVIATIONS

ProMind ProMind Research & Consulting Company

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ID No : CGSN0019067 UM Class: MBACUMI114-K16A

ABSTRACT

Scientific revolution and modern technology has made the development of strong and fast in all fields of social life Human resources became the major driving force which affected the decision of the production process, growth and economic development and social Recognizing the importance of human resources, the current corporate governance has evaluated human resources is one of the most valuable assets, an important competitive advantage, and decide the success or failure of the company However, the strong growth of the economy also raises

many issues about human resources and it is expressed through the dissatisfaction of employees towards work Recognized the issues, since 1969, Smith and his

colleagues have developed Job Descriptive Index (JDI) with 5 factors: the nature of work, training and promotion, salary, superiors, colleagues in order to evaluate the job satisfaction, measuring the impact of each factor and find out the solutions to improve job satisfaction of the employees In recent times, at ProMind, they have

raised many issues about human resources The frequency of the employees resigned their job tends to increase The board of directors somewhat aware of that dissatisfaction at work has a positive impact on employees who have quit the job The solution is set to find out the level of satisfaction, the factors that make employees feel satisfied as well as unsatisfied in their work so that the company can

provide the appropriate HR policies

This research aimed to evaluate employee satisfaction at ProMind and the scope of the research is the office staff at ProMind This research was implemented for 2016 as well as orient and propose solutions by 2017

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CHAPTER I - INTRODUCTION 1.1 Company Introduction

ProMind is a leading global information and measurement company that enables

companies to understand consumers and consumer behavior ProMind measures and

monitors what consumers watch (programming, advertising) and what consumers buy (categories, brands, products) on a global and local basis

ProMind specializes in research on fields such as Brand health checking, Usage &

Attitude (U&A), Segmentation, Customer satisfaction and Product evaluation It has been established in 2005 Its website is http://promindvn.com/

ProMind development timeline:

2005 ProMind Research & Consulting Company was established in Ho Chi Minh City by a group of seniors

2008 ProMind expanded its business by opening a branch office in Ha Noi together with developing strong field forces throughout the nation

2009 ProMind made an improvement on procedure to enhance quality of information

2010 ProMind set a 5-year strategy to become a leading research and consulting provider in local segment

2012 ProMind keeps expanding its business by opening a branch office in Ho Chi Minh City

ProMind Vision

Our vision is to build a place where you can put your trust in whenever you might

need any piece of information or consultation

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ProMind Mission

Our mission is to provide the most reliable information and the highest actionable consultation to as many businesses as possible through our top standards and

commitment

1.2 Research Introduction 1.2.1 Problem statement

Along with the development of Vietnam's economy in recent years, the demand for human resources is also increasing Businesses are becoming more focused on the

issue of human resource development, especially selecting the right person for the

company However, the company choose the right people they need is not enough;

they must also know how to retain their employee especially for the core employee that hold key roles in the company At present, the shortage of human resources “for the qualified employee”, to retain good employees becomes critical issues and

companies are very interested

The stability of the employee will help companies save time and costs (recruitment, training, etc.), reduce of errors (caused by the new employees are not familiar with

their new job), create internal trust and solidarity in the company As a result,

employees will now realize that this is the ideal place for them to promote their

capabilities and long-term commitment Finally, most importantly, this stability also

will help companies operate more efficiently and create customer confidence in the

quality of products and services

“§o how to build a stable employee for your company?” Many domestic and foreign

researchers identified that need to create job satisfaction for employees When

employees achieve work satisfaction, they will be motivated to work harder, leading to higher performance as well as work efficiency This is one of the basic foundations that managers required from their employees According Luddy (2005),

once, the employees has no satisfaction that will lead to low labour productivity,

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influence both physically and mentally When employees achieved work

satisfaction that will limit them to find a new job

This research was done for the purpose of understanding, assess the status of the job satisfaction of employees at ProMind, and find out the factors affecting this satisfaction With data obtained from the survey and through processing and analysis of data on the statistics, this research hopes to provide business managers a better view on the factors that may bring job satisfaction for their employees From there, it will help them get oriented, given appropriate policies, in order to retain the

qualified employee that managers expect them to stick with the company in long

term

1.2.2 Purpose of the study

The objective of the research is to examine and clarify the criteria should be used to

assess the level of satisfaction, measuring the level of satisfaction, evaluate the

intensity of each factor which impacts on job satisfaction, propose the solutions to improve the job satisfaction at ProMind

1.2.3 The scope of the research

Target audience is the job satisfaction and the factors that affect the job satisfaction

of employees By gathering information from those who were given a survey by questionnaire to determine job satisfaction of employees in each job factors such as the nature of work, training and promotion, salary, superiors, colleagues The

specific aspects of each factor is represented by the index (observed variables) were

also considered and verified Finally, through statistical analysis of the impact of each factor for job satisfaction in general will be reviewed and determined

Scope of the research is limited by office staffs at ProMind Office staffs are defined as who worked at a company or any other organization (Oxford Advance Learner's Dictionary) Office staffs are also defined includes both subordinates and senior

employees, but does not include the business owner Geographically, the survey

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only uses for groups of office staffs at ProMind in Ha Noi and Ho Chi Minh City, did not survey staffs who are working in other provinces This topic only examines job satisfaction and does not examine staffs for intended workplace change Timing

for the implementation of the survey is March 2016 1.2.4 Research question

With the purpose of evaluating the level of job satisfaction of staffs at ProMind and

found that the effectiveness of Job Descriptive Index (JDI) in assessing the job

satisfaction of staffs, so I have decided to choose a subject: “Apply Job

Descriptive Index (JDJ) to assess job satisfaction of staffs at ProMind”

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CHAPTER II — LITERATURE REVIEW

2.0 Theory of job satisfaction

There are many definitions of job satisfaction Encyclopaedia dictionary “wikipedia.com” argues that job satisfaction is the personal satisfaction towards his or her job Meanwhile, Oxford Advance Learner's Dictionary, the definition of

“satisfaction” is to meet a need or desire so we can understand the job satisfaction is when an employee is to meet the needs or desire towards their job

One of the first definitions of job satisfaction and are most cited regardless of the definition of Robert Hoppock (1935, cited by Scott and his colleagues, 1960) The

author argued that the measure of job satisfaction is defined in two ways: measuring

job satisfaction in general and measure job satisfaction in various aspects related to the job He also said that the general job satisfaction is not merely the total satisfaction of the different aspects, that the general job satisfaction can be viewed as a separate variable

According to Spector (1997) job satisfaction is that people simply feel like their

work and other aspects of their work As it is the general assessment, it is an attitude variable Ellickson and Logsdon (2001) argued that job satisfaction is defined as generally level of job enjoyableness of employees, which is based on the attitude of the staff awareness (positive or negative) on the job or their working environment

More simply, the work environment as to meet the needs, values and personality of

the employees, it will help improving job satisfaction

Schemerhon (1993, cited by Luddy, 2005) defined job satisfaction as the emotional reactions and feelings towards different aspects of the job The author emphasized the causes of job satisfaction including job placement, the supervision of superior, relationships with colleagues, job content, remuneration and the rewards include

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According Kreitner and Kinicki (2007), the level of job satisfaction mainly reflected personal job enjoyableness That was feelings or emotional of the employee for his or her job

The evaluation models of job satisfaction are developed quite early by researchers

One of the most popular models is JDI (Job Descriptive Index) by Smith and his colleagues (1969) which has been developed from Cornell University This model is

used to assess the job satisfaction of employees based on 5 factors as the nature of work, training opportunities - promotion, superiors, colleagues and salary JDI model is considered to own the good content and concepts are reliable (Kerr, 1995 and Tran Kim Dung, 2005) JDI is also seen as tools to choose to measure job satisfaction (Price, 1997) Although appreciated both theory and practice, but JDI still have its weaknesses The first weak point is the use of a questionnaire with 72

sections that are considered too long and cause difficulties in investigating retrieve

data Second is the question answered in the form is Yes - No, it could not measure many of the different level of satisfaction of employees The third is there are no

questions to assess the overall satisfaction of employees (Spector, 1997) Today the

researchers adjusted JDI model in the question form of Likert scale that can help to

assess the perceived level of many employees and the number of questions are

adjusted less than primitive JDI (e.g., Tran Kim Dung, 2005; Ha Nam Khanh Vo Thi Mai Phuong Giao & 2011; Dao Trung Kien and his colleagues, 2013)

So there are many different definitions of job satisfaction, but we can take out is that a person is considered to have job satisfaction, he or she will feel comfortable,

pleasant to his or her job Related to the causes that lead to job satisfaction, each researcher has a way of looking at, or specific explanation through their research

projects

2.1 Research projects have used JDI in the past

In 1969, the JDI was first introduced to assess employee satisfaction towards the work by the three authors Smith, Kendall, Hulin with 5 factors: the nature of work,

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training and promotion, salary, superiors and colleagues The researchers afterwards have cut down or supplement the factors related to their research to suit the conditions and job characteristics of each enterprise, each region and each country in different stages

2.2 Research projects have used JDI over the world

Smith and his colleagues at Cornell University (USA) have used this JDI to assess employee satisfaction towards the work in 1969 The study entitled “The

measurement of satisfaction in work and retirement” Smith and colleagues have

used 72 items to measure the level of satisfaction of employees at work in five aspects: the nature of work, training and promotion, salary, superiors and colleagues in this research project

After the research project of Smith and his colleagues, other researchers have used JDI to assess job satisfaction of employees towards work to find the ways out to improve the working regime and HR policies and raise their loyalty to the organization in many different fields So far, there is a lot of research has applied JDI all around the world to measure the satisfaction of employees towards work

Andrew Oswald (2002) has done his research of job satisfaction in the United States

and Europe with the project: “Are you happy at work? Job and work-life balance in the US and Europe” Author's survey showed that 49% of workers in the United States that were satisfied or very satisfied with their job, only a very smal! number

of replies are dissatisfied and very dissatisfied One of the factors he has used to

evaluate the level of satisfaction such as income, colleagues, training opportunities, promotions that workers were highly appreciated Besides that, other personal

factors also affect the level of job satisfaction such as: gender, age, safety, travel time In this research, the researcher also found that safety at work is the most important factor, women attains job satisfaction higher than male, younger and

older age groups also attain job satisfaction higher than middle age group

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In 2003, Alf Crossman and Abou-Zaki Bassem added two elements to the JDI

model of Smith and his colleagues such as “welfare” and “working environment”

was formed 7 factor model (the nature of work, training opportunities and

promotion, salary, superiors, colleagues, company benefits and working environment) in order to evaluate employee satisfaction with the project: “Job satisfaction and employee performance of the Lebanese banking staff’

Luddy, Nezaam (2005) in South Africa has studied the job satisfaction of

employees at the Public Health Institute of the Western Cape through the use of Smith’s JDI based on 5 factors: the nature of work, training opportunities and promotion, salary, and the supervision of the superiors and colleagues In this

research, the authors divided these factors into two groups, one including the factors

that belong to the organization (the nature of work, the remuneration, the supervision of superiors, promotion opportunities and job placement) and the remaining groups of factors is personal (race, gender, education background, seniority, age and marital status) The results showed that employees in the Public

Health Institute in the Western Cape, they are most satisfied with colleagues,

followed by the nature of work and the supervision of superiors Training opportunities and promotion and salary are two factors that the staff feels

dissatisfied The authors also pointed out that the job location, race, gender,

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Oswal (UK & work? Job and Measurement | colleagues,

US) work-life balance training

in the US and opportunities,

Europe promotion

Qualification,

Job satisfaction training and

Alf Crossman, and employee promotion, salary,

Bassem Abou- | 2003 | performance of Banking superior,

Zaki Lebanese banking colleagues,

staff benefits, working

environment

Job satisfaction Qualification,

amongst training and

Luddy , -

Employees at a promotion, salary,

Nezzam (South | 2005 Medical -

- public Health the supervision of

Africa)

Institution in the superior,

Western Cape colleagues

Table 1: Summary of some studies over the world

Basically, the research projects of the authors are inheriting initial JDI research

model of Smith and his colleagues (1969) which have supplemented and adjusted to suit each specific research The degree of importance of the factors in the fields is different, some demographic factors that are different in the research (gender, age, qualification, etc.) In general, JDI is a set of indicators to measure the satisfaction of employees towards work which are highly appreciated and bring more meaning

in practice that many researchers are commonly used in over the world

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2.3 Research projects are used in Vietnam

In Vietnam, the application of JDI to measure job satisfaction of the employees has become more popular in recent years The studies were carried out in many areas, different regions and have pointed out these factors which affected employee satisfaction, and came up with solutions and suggestions towards HR policies for the managers

In 2005, Assoc Prof., Dr Tran Kim Dung has done a research project on

“Measuring the level of job satisfaction of employees in Vietnam’s working

conditions” with the implementation of survey for 500 individuals who work in Ho Chi Minh City In this research, the author used 7 factors to measure the job satisfaction of employees, including 5 factors of the Smith and added 2 more factors as “benefits” and “working conditions”

Vo Thi Thien Hai and Pham Duc Ky (2010) through the research of “Building a

model to assess the satisfaction of the switchboard telephone operator who answer customer questions at telecommunication services in Vietnam” performed on the model includes 12 factors (income, working conditions, benefits, training and work

assistance, feedback, colleague relations, relations with superiors, job

enjoyableness, rewards, promotion opportunities at work, job characteristics,

information communication, overall satisfaction) to assess the level of job

satisfaction of the switchboard telephone operator The research focused on

switchboard customer care - Call Center of three major Telecommunications company such as Vinaphone, Mobifone and Viettel The result has showed that the

factors need to be maintained are: material facilities, update their knowledge at work and relationships with superiors The factors should not focus on: adequate working facilities, skills training and conformable work at Call Center

Assoc Prof., Dr Ha Nam Khanh Giao and M.A Vo Thi Mai Phuong (2011),

University of Finance - Marketing in Ho Chi Minh City has conducted "Measuring J @

job satisfaction of production employees in Tân Hiệp Phát Service and Trading z

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Company Limited" using 7 factors: training opportunities - promotion, salary, superiors, colleagues, job characteristics, working conditions and benefits to assess the satisfaction of employees towards work The result of 300 employees has showed the level of job satisfaction of production employees is achieved at average level and only 5 factors affect job satisfaction such as salary, superiors, job

characteristics, working conditions and benefits Meanwhile, the satisfaction of

company benefits is the most powerful factors influencing job satisfaction, followed by salary and job characteristics Factors are less affected job satisfaction such as the relationship with superiors and job characteristics The two remaining factors of the model are: training opportunities ~ promotion and colleagues did not affect job satisfaction of employees

In the field of transportation, in 2010, Dang Thi Ngoc Ha has studied “the impact of job satisfaction to employee loyalty to the organizations at road transport units in Ho Chi Minh City The author has used research model which consists of seven factors, including 5 factors in the model of Smith and added 2 factors such as brand

name and work pressure The result of 325 employees has showed that the nature of work, superiors, colleagues, brand name that affected overall satisfaction level

towards the work, meanwhile the most powerful factor is superiors

As a result, the application of JDI to measure the satisfaction of employees towards

work is widely applied in many researches around the world and Vietnam It is a good indicator to assess, measure the satisfaction of employees towards work The research also helps identify the priorities of the factors in improving HR policies at the company

2.4 The nature of JDI and its roles

Job Descriptive Index (JDI) is used to assess the employee satisfaction and recommendations on personnel policy for the organization to improve employee satisfaction, increased employee productivity and the retention of good employees

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in the company JDI of Smith and his colleagues (1969) included 5 factors, 5 factors that are mainly affected to the satisfaction of employees towards their job

JDI has played a huge role in assessing the satisfaction of employees towards work It is a tool determined by quantification, helps managers to quantify the key elements, the fundamental factors in responding their employees Identify priority activities to improve the working environment in the organization Research models

of Smith and his colleagues on JDI as follows: The nature of work Coll olleagues Training we Job satisfaction opportunities - promotion Salary Superiors

Figure 1: Initial research model

Meanwhile, the concept is understood as follow:

The nature of work: is the nature and characteristics of each job, these elements make up the characteristics of the job It affects the results of the employee The

nature of work is often considered on the following aspects: skills, job execution

process, the importance of job in general business activity, jobs suitable for the competence of the staff, etc The job quality must be consistent with the employees so it will bring the satisfaction of employees and generate high efficiency at work

Training opportunities and promotion: training is the process of teaching these

skills to cater specifically for the job Promotion is to achieve a higher position in the group, or in a working system In the research project of Smith and his colleagues, training and promotion are grouped together in the same factor is due to the relationship between the cause and effect The purpose of participating in

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various forms of training to improve staff qualifications, and promotion purposes in the system work is to help the employee has a close relationship with each other Satisfaction is about training opportunities and promotions are perceived as training opportunities, develop personal capacities and opportunities for promotion Fairness and transparency in the process of creating opportunities for training and promotion are the aspects which employees often interested in evaluating the level of

satisfaction

Superiors: is understood as the direct and indirect of superior towards their employees They brings satisfaction to employees through communication with

employees, the attention to their subordinates, to protect employees when necessary,

demonstrating the capacity of superior and expertise to subordinates The satisfaction of superior was assessed through fair treatment, recognized the

worthwhile contribution of the staff

Colleagues: are the people who work at the same location with each other, doing the same jobs with similar content or they work together on the business related to

each other within an organization In this study, colleagues are defined as people

work together in one unit, the same company and they have regular relationships at work, take interest in their colleagues, exchange and help each other in their work Most of the time, they are constantly in contact with each other so that the relationship among colleagues also affect overall satisfaction in their work The

level of satisfaction of colleagues are perceived by each employee about the behavior, relationships with colleagues such as trustworthiness, devoted, help each

other and friendly in work

Salary: as the employee remuneration received from his work In this study, the

salary is defined as income that employees earned from their work while they are working at the company, excluding the incomes outside the main job Salary is an important factor affecting employee satisfaction because it is the recognition of contribution, effort and ability of each person Most employees tend to evaluate

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their income compared to the effort they spent, comparing income with other units in the same area or the same industry so that they can have an overview of their

income is fair or not?

Besides the 5 concepts mentioned above, in the study of satisfaction for the work,

the following concepts are also factors affecting the different levels of job satisfaction of employees:

Company benefits: the remuneration is paid in the form of indirect support for employees in life The types of company benefits including: health insurance, social

insurance, maternity benefits, occupational accident, illness, etc Benefits are a

source of encouragement for the employee so it is also a significant factors

influencing satisfaction towards work

Working conditions: are the factors related to the workplace situation of employees Working conditions are considered on aspects such as working time, the safety of workplaces, equipment and tools in order to cater for the job, etc These

factors directly affect the work outcomes as well as the satisfaction of the employees towards work

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CHAPTER III - RESEARCH MODEL AND HYPOTHESES 3.1 Research Model The Nature of Work Training Opportunities - Promotion Environment Superiors a + 3 Colleagues 2⁄2 Salary + H6 Working + Hi + H2 Job Satisfaction Figure 2: Official research model 3.1.1 Dependent Variables - Job Satisfaction (JS) 3.1.2 Independent Variables

- The Nature of Work (NW)

- Training Opportunities — Promotion (TP)

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ID No : CGS00019067 O UM Class: MBAOUM1114-K16A - Superiors (SP) - Colleagues (CL) - Salary (SA) - Working Environment (WE) 3.1.3 Constructs - Key construct: Job Satisfaction (JS) - Other constructs:

e The Nature of Work (NW)

e Training Opportunities — Promotion (TP) e Superiors (SP) # Colleagues (CL) e Salary (SA) e Working Environment (WE) 3.2 Research Hypotheses From the analysis of the factors in the research model, we came up with the following hypotheses: - H1: Satisfaction of the nature of work has a positive impact on the job satisfaction of employees

- H2: The satisfaction of training opportunities and promotion has a positive impact on the job satisfaction of employees

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Full name: NGUYEN PHU HIEN ID No : CGS00019067

Class: MBAOUMII14-K16A @OUM OPEN UNIVERSITY MALAYSIA

- H6: The satisfaction of working environment has a positive impact on the job satisfaction of employees 3.3 Contents of the research BMBRS103 Determine research objective ¥

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1D No : CGS00019067 O UM Class: MBAOQUM1114-K16A

- Research objective: is defined as understanding the factors that influence employee satisfaction through JDI The impact of each factor affecting satisfaction for the work will be evaluated in detail in order to find appropriate solutions for the company

- Previous research model: consider compatible models previously studied to assess the level of satisfaction of employees at the various research units Assess the level of reliability as well as their implications for research projects

- After doing the research model, we will look at the scale, the concepts have used

in the earlier research model and then choose the appropriate scale for research

objectives as well as specific research unit to conduct and adjust the research accordingly

- Quantitative research: after the construction and adjustment of scale which has been used for the study, we carried out surveys to collect and analyze data

- Adjust the model: data were analyzed after we adjusted the research model based

on the result of data analysis and the construction of new research hypothesis according to the results of data analysis

- Scale verification and data analysis: the implicit variables and the scale are verified by using statistical method to ensure the reliability of the research Testing

of hypotheses, construction of the linear regression equation through a statistical

method based on PASW Statistics 18.0

- Conclusion: summarize the findings and propose appropriate solutions for the

company Pointed out the contribution of academic research on the reality of

research for the company

3.4 Research design

Designing the observed variables: on the basis of the assessment criteria for job

satisfaction, questionnaire that was inherited from the previous research and

adjustment to suit the characteristics and actual conditions at the company through the steps of quantitative research We make observations for the variable factors,

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Class: MBAQUMI1114-K16A 2OUM OPEN UNIVERSITY MALAYSIA,

these variables will be encoded to help the processing of data becomes easier (Table 2) Variables belong to factor “the Nature of Work” is encoded as NW; variables belong to factor “Training and promotion” is encoded as TP; variables belong to factor “Superiors” is encoded SP; variables belong factor "colleagues" is encoded

CL; variables belong to factor “Salary” is encoded SA; variables belong to factor

“working environment” is encoded WE The dependent variable of the factor “job satisfaction” is encoded JS Table 3: Scale assessment for Job Satisfaction ; Coded Factors Assessment Criteria questions

Is work suitable for personal capacity? NWI

The Nature | Do you feel your work is very interesting? NW2

of Work | Does your work have many challenges? NW3

Is your distribute work reasonable? NW4

Are there many opportunities for promotion at work in TPỊ the company? Are promotion policies clear? TP2 Training and — - Do you get any training and career development? TP3 Promotion

Does company offer many opportunities for you to TP4 develop personal capacity?

Are you participating in the promotion process? TPS

Superiors take interested in subordinate employees SPI

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Full name: NGUYEN PHU HIEN ID No : CGS00019067 Class: MBAOUM1114-K16A Superiors are considered talents and contributions of SP4 employees

The employee is treated fairly SPS

Superiors have capacity, vision as well as good operating SP6

Colleagues are willing to help each other CLI1

Colleagues | Your colleagues know how to coordinate better in job CL2 Your colleagues are very friendly CL3

Salary corresponding to the results of work SAI

You can live entirely based on salary from company SA2 Salary is paid equitably among employees within the SA3 company

Salary is on par with other companies SA4

Salary is paid in full and on time SA5 Salary Remuneration policy is fair and satisfactory SA6

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Full name: NGUYEN PHU HIEN ID No : CGS00019067 OUM Class: MBAOUMI114-K16A

You feel you are working in safe conditions WE4

This is the appropriate work for you JS1

Job Satisfaction when working in the company JS2

Satisfaction | Tell the people this is the best place to work JS3

The company is considered as your second home JS4

- Scale: This is a study of human behavior, so in order to accurately assess the

attitude of the interviewer must choose a suitable scale may be used to conduct statistical analysis Theoretically scale can be built using open-ended questions, or

can also be constructed from the closed questions In this study, the use of open- ended questions to conduct investigations is inappropriate It will cause difficulties for the processing of data and do not assess the reliability of the statistical parameters of the model study In other words we do not know the intensity of the impact of these factors on the dependent variable will look like Therefore, this study will be constructed using closed questions, using 5-point Likert scale to measure is the most appropriate (Likert Scale is the hierarchical scale it can be used to calculate the Statistics Index in a meaningful and reliable) 5-point Likert scale

will be followed: Strongly Disagree (1); Disagree (2); Neutral (3); Agree (4);

Strongly Agree (5)

The construction of scales to assess job satisfaction, designed observed variables, using 5-point Likert scale is the basis for the construction of the questionnaire in

order to serve the interview and get the information for the study Questionnaire design process is performed as follows:

- Based on theory and previous related research, criteria for evaluating job satisfaction are built at the research unit to make up the initial questionnaire

- From this initial questionnaire was consulted by instructors and group discussions

with a number of respondents to adjust accordingly

- Completing the questionnaire and conduct official survey

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ID No : CGS00019067 UM Class: MBAOUMI1114-K16A

3.5 Sampling

- Overall: the entire staff working at the company ProMind The staff here is

understood as department directors, staff of departments, full-time interviewers,

full-time supervisors, IT department

- Sampling Method: in this study, we used random sampling methods and methods will help respondents easily accessible, they are ready to answer the questionnaire as well as reduce the costs and time to collect research information The questionnaire will be distributed to all parts of the company, is expected to be 210 samples The results from this survey will be evaluated until the completion of valid

samples

- Sample size: the minimum sample size is built under the rules of taking the number of observed variables multiplied by 5 is based on research and Hoang Trong and Chu Nguyen Mong Ngoc, 2005 According to the principles for determining the sample size, minimum sample size of the research was n= 35*5= 175 Thus the selection of the sample size of 210 is consistent and reliable

- Method of collecting information: Information is collected directly from the

questionnaire after the employee completed the questionnaire Then, the response from the questionnaires will be encrypted and input on the software Microsoft Excel

through two stages:

e Stage 1: Input the questionnaire at the first time

¢ Stage 2: Input the questionnaire at the second time by other individual

Two input files of two stages will be carried out comparing to detect errors and to correct the data before using the final data in the research

-Scope of the research: department directors, staff of departments, full-time

interviewers, full-time supervisors, and IT department will be conducted interview

and obtained results

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3.6 Method of testing the scale

In this research, after retrieving the data from the scale, it will be tested on the reliability based on Cronbach Alpha coefficient According to Hoang Trong - Chu

Nguyen Mong Ngoc, Cronbach Alpha coefficient is considered reliable if greater

than 0.6 If the sample of the research is less than 50, The Cronbach Alpha should

be 0.85 or higher to ensure the reliability of scale Considering the sample size of this research, we took Cronbach Alpha coefficients at least 0.6 in order to examine

the scale of the research

3.7 Exploratory Factor Analysis - EFA

EFA is mainly minimized and summarized the data In the research, we can collect a large number of variables, and most of these variables are related to each other so

these numbers need to be reduced to an appropriate number that we can use

Research data will be analyzed by the method of Varimax rotation to ensure the smallest factor The analysis of the factors with the major components makes

abridged many variables as they relate to each other and turn them into quantity (factor) In particular, the coefficient of observed variables which have small Factor Loading less than 0.5 will be removed from the model, eigenvalue will get a standard of greater than 1, and the variance coefficient extracted of the model must

be greater than 0.5 (which means the factor must be explained more than 50% of the result of dependent variable)

3.8 Constructing Linear Regression

The factor after being tested by the scale and analysis of these factors is suitable to

be built on the regression equation with both the Enter method (put all the factors at

the same time) and the Stepwise method (putting the independent variable and based on the principle that certain variables have the greatest correlation will take

precedence) by method of sum of least squares

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ID No : CGS00019067 OUM Class: MBAOUM1114-K16A

The regression equation is described as follows: JSi =Bo + B1X1i + B2X2i + + B6X6i + Ui

Defined as:

66009

e JSj: the value of job satisfaction due to observed variables “j

$6099

¢ Xpi: the value of the independent variable “p” due to observed variables “j ¢ Bk: partial coefficient of regression

e Ui: independent random variables with normal distribution

3.9 Detection of conformity of hypotheses using the least squares method

- Linear association between the independent variables: Using Scatterplot graph to

test the hypothesis of linear association between the independent variables in the model

- Variance of the residuals: Using Spearman’s rank correlation coefficient to test the hypothesis of variance of the residuals

- Testing normal distribution of residuals: use the Histogram graph and P-Plot to

evaluate the normal distribution of residuals

- Testing the multi-collinearity in the model: Multi-collinearity is a phenomenon in

which the independent variables are highly correlated The problem is that they

provide the same information to model and difficult to assess the impact of each variable For multi-collinearity phenomenon, tolerance or VIF (Variance Inflation Factor) is used According to Hoang Trong & Mong Ngoc (2008), the VIF is less

than or equal to 10 means that the independent variables are not correlated and

nonlinear

- Homoscedasticity: when the variance of the error changes, the estimates of the

regression coefficients ineffective, the t and F are no longer reliable If the magnitude of the normalized residuals towards increased or decreased based on the

predicted value, the hypothesis of constant variance would be violated

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Class: MBAOUM1114-K16A OPEN UNIVERSITY MALAYSIA

- Testing autocorrelation: is a test statistic used to detect the presence of autocorrelation in the residuals from a regression analysis Consequences while ignoring the autocorrelation is the forecast and estimates remain unbiased and

consistent but inefficient In that case, the Durbin-Watson test is the most common

test for first-order serial correlation

- After the test, the results showed that the assumptions are not violated, and then

we can conclude the regression coefficients are unbiased, consistent and efficient The conclusions take out from the regression analysis is reliable

3.9.1 Testing of hypotheses

- The research hypothesis was tested using statistical methods to compare the value of p-value with the level of significance (95%), using T to test 2 sides of hypotheses

with positive B coefficients

- Using T and ANOVA to test the difference of overall figure (as classified by groups such as age, gender)

3.9.2 Testing the suitability of the model

- The suitability of the model will be tested through F-test and R-square coefficient

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ID No : CGS00019067 UM Class: MBAOUMI114-K16A

CHAPTER IV —- ANALYSIS AND RESULTS

4.1 Described samples

To conduct the study, we have distributed 210 questionnaires and collected 202 questionnaires In these 202 questionnaires, there are 9 invalid questionnaires and removed by the following reasons: questionnaire answered by the same person with

the same content, personal information are incorrect, the information is not completed

After checking 193 questionnaires, 193 questionnaires is valid and these 193 collected questionnaires greater than 175 so it will be accepted for analysis Results collected data is encrypted, cleaned and analyzed by descriptive statistics through frequency tables and forms under the object classification criteria: age, income,

gender, education, location Below is a description of the components classified

samples collected

- The structure of the sample by gender

In 193 collected valid samples, 139 surveys are male (72%), 54 surveys are female (28%) This study was conducted in ProMind Company to the characteristics of the

travelling far away and specific characteristics more suitable for men rather than

women, therefore we could see this gender ratio is appropriate and practical

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Class: MBAOUMI1114-K16A OPEN UNIVERSITY MALAYSIA @OUM

- The structure of the sample by age

Result of 193 valid questionnaires, the percentage of workers over 35 years old accounted for 84.5%, the proportion of 20 to 35 accounted for only 15.5% This is

the initial information shows the age structure of the company is quite large, there

should be policies to rejuvenate the workforce

Table 5: Classify the results by age Frequency | Proportion Valid Accumulated (%) Proportion (%) Survey |20 -35 30 15.5 15.5 15.5 >35 163 84.5 84.5 100.0 Sum 193 100.0 100.0

- The structure of the sample by education background

According to the obtained sample, the proportion of primary accounted for 35.2%

corresponding to 68 respondents, followed by College (32.6%), 23.8% for

Vocational and University with 8.3% Such ratio gives us the initial information

about level of labor in ProMind relatively, the percentage of educated people from college to university hold 40%

Table 6: Classify the results by education background Proportion Valid Frequency (%) Proportion (%) Accumulated Survey | University 16 8.3 8.3 8.3 College 63 32.6 32.6 40.9 Vocational 46 23.8 23.8 64.8 school Primary school 68 35.2 35.2 100.0 Sum 193 100.0 100.0

- The structure of the sample by working position

From 193 valid questionnaires, the proportion of Full-time interviewers accounted for the largest proportion with 52.8% of 102 respondents, the Full-time supervisors

accounted for 22.3% of 43 respondents, staff of departments for 12.4% and 15 Pages®

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Class: MBAOUMI114-KI6A OPEN UNIVERSITY MALAYSIA @OUM

Department directors accounted for 7.8%, the number of employees in IT

department accounted for 4.7%

Table 7: Classify the results by working position Proportion Valid Frequency Pm Proportion | Accumulated (%) (%) Survey | Full-time 102 52.8 52.8 52.8 interviewers Full-time 43 22.3 22.3 75.1 supervisors Department 15 7.8 7.8 82.9 directors Staff of 24 12.4 12.4 95.3 departments IT departments 9 4.7 4.7 100.0 Sum 193 100.0 100.0

- The structure of the sample by personal income

In this survey, there are two levels of personal income is from 4 to 6 million/month and more than 8 million/month The survey showed that workers earning between 4

and 6 million/month accounted for a very high percentage (77.7%) with 150

respondents and only the top 8 million accounted for 22.3% with 43 respondents It can be seen in personal income levels at ProMind in medium level

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Ful name: NGUYEN PHU HIEN

4.2 The job satisfaction of samples

The mean score of the survey questions (Table 9) shows workers ai the company

evaluated the criteria are satisfied with the job has quite big dispersion, the dispersion is concentrated at level 1 and level 5 out of Likert scale Mean score for the creation of CL1 is the biggest — “Colleagues are willing to help each other” is

reached 3.6477 on a scale of 5, while the lowest criterion WE3 — “You do not have

to worry about losing your current job” has a mean score of 2.5855

For the group of factors “The nature of work”: The degree of dispersion of the answer is quite large The mean score of the answers are not high, with 3 out of 4 questions with a mean score less than 3 points This proves that the “The nature of work” in the company does not satisfy employees This dissatisfaction proceeds from the division, challenges, conformity of the company’s work is in medium level requires reasonable changes

For groups of factors on “Training and promotion”: Although the mean score for the questions that is higher than “The nature of work” but there are 2 out of 5 questions do not have the highest score (5 point) that is the question of training opportunities

and promotion policies From here you can see that, the employees are not satisfied

with their training opportunities at work as well as promotion policies of the

company may not be clear, this can lead to dissatisfied of employees, they will not

strive in their work because they believe that the striving and trying also not recorded properly

For groups of factors on “Superior”: This is the factor that the mean score is high in these questions, it shows staff at the corporation quite satisfied with the superiors of

the company In addition there are 2 out of 6 questions having mean score quite

concentrated with answering point from 2 points to 4 points The employee at the corporation quite concurred in assessing the interest and support of their superiors

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