G@OUM
OPEN UNIVERSITY MALAYSIA
RESEARCH PROJECT (BMBR5103)
RESEARCHING FACTORS AFFECTING TO EMPLOYEES’ SATISFACTION AT BINH MINH PLASTICS JOINT STOCK COMPANY
Trang 2Advisor’s assessment
Trang 3Contents 0 5/.10)21:0001))69:40)9)9/9919) 00017 7 1.1 Company Introduction BINH MINH PLASTICS JOINT STOCK 09001.) 7 1.1.1 HN) 0) nan Ắ ố.Ố 1 1.1.2 "The key businesS SC0p€S: S Ăn nen 02 re 9 1.1.3 Organization StruCfuF€ ch tr 11 Problem s†at€ITI€TIE - - 5< S9 393 HT ng HH ng 1104 11H41 1914111 3116 16 1.1.4 Purpose 0Ÿ StUdy - Ăn» H»H” ng ni HH nhanh hệ 17 1.1.5 The scope of the research - sành 1 17 1.1.6 Research queSfÏ0nsS - s9 1 nh HH kh 17 1.2 Layout themes -Ặ c4 H212 01221011 ekrerrerrrrke 18 CHAPTER II —- LITERATURE REVIENW - nhai 18 2.1 EMPLOYEE SATISEACTION IN WORK cceeeiiieieirke 18 2.2 Some related fheOFiES - - +22 Sa vn HH1 301 118118101011 111014011164 20 2.2.1 Herzberg's Two-Factor Theory ch nhhhheiưe 20 2.2.2 Masilow's Hierarchy of Needs Model «+ <S+eseeeererirreree 21 2.2.3 Adams' equlty th€OTY cành” 4101 14141100111 14 1 ekrenemekre 22 2.3 SOME RESEARCH ON EMPLOYEE SATISFACTION IN WORK 23 2.4 FACTORS AFFECTING THE SATISFACTION OF EMPLOYEES IN
WORK 2 24 2.4.1 Compensation material ccc cs eeeseseeeeeeeeseeseetenseneeseseetseeseesteneseseenseneee 24 2.4.2 Opportunities for training and advanceMent ccceseeseereerteeeeteneeenes 25 2.4.3 Relationships with leađ€rsS -. sàn 1.24 xem 25 2.4.4 Relationships with coll€agU©s - 7< HH hi, 25 2.4.5 The nature Of WOFĂ con HH HH Hy HH Tà H4 8 TH T0 nh nen 26 2.4.6 Work EnvirOnIM€TIE - 5G 5Á + ng TH 9010 0110 110011100 6 9h hn ve 26 CHAPTER III - RESEARCH METHODS . .- 5S nehHieeeresree 27 3.1 Process of R€s€arCH - cv TH HH HH ng 11H TH 1n re 27 3.2 RESEARCH MODDEL - - 5x St re 28 3.2.1 The proposed research mmodđelL s5 se + s3 914183: 0114 2k 28 3.2.2 Research Hypothe€SIS - sành 2 0 0 HH khe 28 3.3 METHODS OF HANDLING INFORMATTION -<-<c-<eeeee 29
3.3.1 DescrIptIV€ Sfa†ISEICS cà ncHHHHH n4 1181011110121 ke rerkrrer 29 3.3.2 Mean vU€§ -. - - < SH H9 HH HH 01101811101 0081166 29 3.3.3 Cronbach’s Alpha Tesfing - sen Hà Hà Hàng 111111 re, 30 3.3.4 Exploratory Factor Analysis (EEA) cành He, 30 3.3.5 Pearson correlation anaÌYSÌS - «+ ss khe 1132141181112 e6 30
3.3.6 Multivariate Regression AnaÏySIS «chai 31
3.3.7 Research Hypothesis 'TestIng - «Ăn iê, 31 3.3.8 Analysis of variance ANOVA cà Hà nh tt Hh 32 CHAPTER IV — ANALYSIS OF RESULTS RESEARCHING FACTORS
Trang 44.2.3 Financial Benefits (Salary,bonus, benefits) -‹ -seee 36 4.2.4 Working CondiLIOTS sec th H100 112011 6.1 1t 37 4.2.5 Managers (Management sfyÌ€) - - heererirrerre 37 4.2.6 Colleagues relationship -.ccsnhherrrreierieirrie 38 4.3 Cronbach°s Alpha 'Tesfing ác test 8.1 38 4.4 Exploratory Factor Analysis (EFA) - cằeierrrrrrriie 39 4.5 Pearson correlation annaÏy§1§ - chì g1 H317 1114 43 4.6 Multivariate regression AnySIS « -ces nen 43 4.7 Research HypothesIs Testing -‹ ccs sen eT" 46 4.8 Analysis of variance ANOVA che th 46
CHAPTER 5: SOME SOLUTIONS TO IMPROVE LEVEL OF
EMPLOYEES’ SATISFATION AT BINH MINH PLASTIC JSC 49
5.1 Solutions related Financial bemeffits cccecccsseceseeeeeenetesessceseneeensenees 49 5.2 Solutions related training opportunities and promotions 49 5.3 Solutions related nature of job che 50 5.4 Solutions related Working Conditions .:.:ccccsccseseneceseeessereeteententenens 51 5.5 Solutions related Management .- - canh 51 5.6 Solutions related Collegues relationship -:ccc chien 52
09))1006.:9) 11 33
Reference PB .ẻ 54
Trang 5ABSTRACT
Employee factor is one of the key factors determining the success or
failure of any an organization or a business An organization which is
high expectation in employees productivity will determine high level of success Employee's behaviour, employee's loyalty employee's performance and employee cooperation are results obtained from employee's satisfaction
Globalization, cultural integration leads to an increase in volatility and a
strong labor market in Vietnam and other countries The current situation, employees have the capacity and qualifications tend to look for new job opportunities, new companies, which can meet the needs of their growing This study aims to know how important the employee's satisfaction is Why is it the most requirements of any organizations in order to meet their business success? What is the problem of employee's dissatisfaction? And satisfaction of employees is determinant of its long- term commitment to the business or not And employee engagement impacts how the sustainable development of the business?
An actual survey took place with 235 employees are working at Binh Minh Plastic All of these employees mostly worked in Head quarter and at the factory in Binh Duong, Long An factory
Trang 6researched and analyzed practices The reliability analysis, descriptive analysis, and hypothesis testing were statically measured in the study with the support of SPSS 20.0 software
Trang 7CHAPTER I - INTRODUCTION 1.1 Company Introduction BINH MINH PLASTICS JOINT STOCK COMPANY ° Company’s name : BINH MINH PLASTICS JOINT STOCK COMPANY
° Abbreviated name : BM PLASCO
° Business registration certificate : 0301464823 - Fist registration date: 02 January 2004 thregistration date: 07 October 2013
° Charter capital : VND 454,784,800,000
° Invested capital by the owners: VND 1,718,260,413,418
° Head office’s address : 240 Hau Giang street, ward 9, district 6, HCMC_ ° Telephone: (08) 39 690 973 ° Fax : (08) 39 606 814 ° Website : www binhminhplastic.com.vn ° Stock code : BMP 1.1.1 Development timeline: e IN 1986
© Started production of plastic pipes serveing for UNICEF’s Rural Clean Water Project This is the first time the plastic pipes of Binh Minh Plastics are trusted and ordered by a foreign partner for the national market
e IN 1987:
o Formed the strategic of entirely moving to produce the industrial and technical plastic products, which mainly were plastic pipes and fittings
Trang 8o The Factory was renamed BINH MINH PLASTICS MANUFACTURE SCIENTIFIC ENTERPRISE
e IN 1994:
7 The enterprise was renamed BINH MINH PLASTICS COMPANY, belong to the Ministry of Light Industry
« The first enterprise in the country use the Dry-Blend technology into manufacturing plastic pipes with diameter up to 400mm directly from PVC compound
e IN 1977:
« Established under the public private partnership model with the name
o “BINH MINH PLASTIC PUBLIC PRIVATE PARTNERSHIP FACTORY” specialized in manufacturing plastic civil products, plastic pipes and fittings
e IN 1999:
« The Factory 2 is inaugurated in Binh Duong, with area 20.000m2 and advanced equipment from EU, marked the development of scale and competence of the company e IN 2000: = Company was certified for Quality Management System ISO 9001 © =IN 2002: = HDPE pipes and PE double-wall corrugated pipes were presented to the market © IN 2004:
* The company was equitized, officially operated under name BINH MINH PLASTIC JOINT-STOCK This was the important mark in changing the type of business, creating favorable conditions for the rapid sustainable development in future The Factory 2 was invested for upgrading and extending area to 50.000m2
e IN 2006:
» Stocks of the Company were listed on the HOSE, with the stock code BMP
Trang 9= Formed the Northern Binh Minh Plastics One Member Co., Ltd (NBM) at Hung Yen province, marking Binh Minh Plastics officialy operate in the North market (considered as Factory 3)
* The trademark and logo of the Company were registered under exclusive protection in Vietnam The Company’s distribution system began to be formed
e IN 2010:
* Successfully produced HDPE pipes with diameter 1.200mm in NBM, the largest diameter of Vietnam
s The land-leasing contract for Factory 4 project in Long An with area over 155.000m2 was signed
e IN 2013:
* Completed profile of conformity certification for products according to regulations of the Ministry of Construction
e IN 2014: Started constructing of Factory 4 in Long An province ¢ Go-live the ERP system
1.1.2 The key business scopes:
Binh Minh Plastics is evaluated by the consumers to be a leading and reputable enterprise in the Vietnam plastic industry generally and in the plastics industry particularly, specializeded in providing plastic pipes and fittings, technical high plastic products for water supply and drainage, telecommunications, electricity, construction and civil; sprayers used in agriculture five major current product lines of the Company may be listed as follows:
Y uPVC pipes and fittings with diameters from 21mm to 630mm are used in water supply and drainage, electricity, telecommunications, construction and civil use
¥ HDPE pipes and fittings with diameters from 16mm to 1,200mm are used for water supply and drainage, electricity, construction and civil engineering, especially for alkaline and saline waters
Trang 10v PP-R pipes and fittings with diameters from 20mm to 160mm are used for hot and cold water, enduring high pressure
v Sprays are used in agriculture with types of 1 liters, 5 liters and 10 liters
The product lines of pipes and fittings with Binh Minh Plastics brand meet
Trang 111.1.3.Organization Structure Managing Director ‡ Ỷ
Director Managing Director
Business hmmm | | Representative [~~ ~~ Technical
Development Development
r. - r - Y r =eeer~ ¬ - m -T- | _= TTTrrrerrreen r - y-~~ 7-37-77 ~- =~
vy WwW vy Wo vy vy vv Ỷ
Sales || Marketing | Administrative || HR Accounting Managing R&D Quality
Dept Dept Management Dept & Financial || Information Investment | Assurance Dept Dept Systems Dept Dept
Dept
Factory 1
> | Multi Factory 2
Teen > | Management relations of quality management Figure I: Chart of BMP Organization Structure
11
Trang 12Share capital/ Shareholders’ structure NUMBER OF HELO t SHRREH0LDER STRUCTURE SHRRES nh State shareholder 13,422,170 29.51 Members of BOM 1,187,687 261 Inspection council 134,495 0.30 Individual 5,418,091 1191 Organization ‘ 3,041,192 6.69 Foreign individual 316,773 0.70 Foreign organization 21,958,072 48.28 TOTAL 45,478,480 100 48% 0.70% 7%
Trang 13VND Billion 2,000 1,800 1,600 1,400 1,200 1,000 1929 2004 2005 2006 2007 2008 2009 2010 2013 2012 2013 2014
Ml Charter capital Total assets
Figure 3: Chart of BMP Capital and Total Assets from 2004 to 2014 VND Billion 2,500 2,000 1,500 1,000 2416 Figure 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
MM Revenue Ml Profit before tax
4; Chart of BMP Revenue and Profit before tax from 2004 to 2014
Over the recent 5 years from 2010 to 2014, BMP’s total of assets increased 2 times during the Vietnam economy emerging the signs of recovery; productivity and competitiveness of the economy still were not improved
This achievement was due to the determination and the perseverance of implement of strategic business development orientation by the BOM, the Board of Directors during the recent years
13
Trang 14Compared to 2013, the total of assets value of BMP in 2014 increased 15%, primarily increased short-term assets, namely arisen short-term investment due to the short-term deposits transferred by the Company to long term deposits in order to get higher interest rate 2014 remained a challenging year for the real estate industry in general speaking and for plastic construction industry in particular speaking, the BMP should maintain a high liquidity ratio, not spread investment, maintained to focus and developed the available assets, gradually built new factories, prepared for long-term progress in the future for the safe and effective direction in the current economic situation
By now, BMP remains pursue secure capital structure with the proportion accounted for 89% of equity in the total of capital The maintenance of this percentage in the long run due to the BMP capital resources are strong enough, no need for external power, can finance all investments in short-term and long-term business
However, in the future, the more demand of building of factories, machinery and equipment investment the structure will be changed Thus, trying to maintain a capital structure at present is to prepare the plans of capital use in a not too distant future, to ensure the sustainable development for the enterprise
The short-term assets of the BMP at end of 2014 reached VND 1,486 billion,
increased 21% as compared to 2013 and 2 times as compared to 2010 In the structure of short-term assets in 2014, the portfolio of short-term financial accounting took the highest proportion of 31% This amount was the deposit of savings by the Company from short-term to a term of 6 months for obtaining higher interest rate Two items of cash and cash equivalents, short term investments was accounted for 47% of the current assets, 1.6 times higher than the charter capital With this capability, it did not only help BMP in advantages in negotiation with the suppliers but also create the confidence to investors, improved the competitiveness of the bidding of sales Two other items accounted for a large proportion of short- term assets were inventories in 2014 were inventory (25%) and receivables (26%) Compared to 2013, the proportion of these two items tended to decrease, which mean BMP balanced the inventories, receivables under control This proportion was consistent with the characteristics of a manufacturing and commercial enterprise
Trang 15Although no significant contribution to the Company’s profit, for the diversified development, richness in variety, size of the product lines, desire to bring satisfaction, maximization of satisfaction to the customer needs, the company continues to maintain This is also the method, by which, the BMP wants to retain its existing customers system and seek new customers to increase their market share
The ratio of cost of sales to net revenue of BMP varied in every year In 2014, the percentage of cost price accounted for 72.3%, with 2.1% higher than 2013 The main cause was due to the raw material input cost increased 5%
The structure of selling and administrative expenses as compared to net revenue in 2014-was taken 8.1%, increased by 1.6% as compared to 2013 This increase was due to increase of transport costs, marketing costs, advertising costs in order to boost sales and expand market share In addition, in 2014, it was the first time when BMP held a meeting of its largest distribution system in Singapore, with over 1,000 guests, with the total expense of VND 25 billion, to recognize the distribution network which attached to the Company for years, and built up the present brand of Binh Minh Plastics
Gross profit in 2014 of BMP was VND 669 billion, equivalent to 27.7% of net sales, reduced by 2.1% as compared to the previous year While the revenue increased nearly 16%, the cost of sales increased 19% The cost of sales increased due to the raw material input costs increased Although, the Company had the advantage of its solvency to deal the best prices in the market for purchasing raw materials, but as compared to 2013, the average unit price for importing PVC material was still higher than 5%
The ratio of profit before taxes to Net revenue in 2014 reached 19.9%, reducing 4% compared to 2013 In 100 VND of revenue generated by BMP in 2014, it gained 19.9 VND of profit before taxes In 2014, the Company enhanced its image promotion activities, improved its selling policy, and strengthening its status and that made selling expenses increased significantly, and the profit decreased
Revenue increases and profit reduces, it affects ROA and ROE indicators decreasing accordingly
Trang 16coming years, and with the stage-by-stage construction and operation of the new factory shall help to the development of BMP in future
Research Introduction
Problem statement
It is no longer news that employee satisfaction anchors employee performance One of the most important goals of an organization is to maximize employee performance in order to accomplish those goals (Butler & Rose 2011) In doing this, the organization needs not only highly motivated but also satisfied and psychologically balanced employees to increase performance and productivity in the organization Employee satisfaction, performance and retention have always been very important issues in employee management literature and among human resource management practitioners especially in developing countries like Viet Nam
Like that, BMP has over 30 years of existence and development, has
confirmed its position on the domestic market and abroad BMP brand has become so familiar to people in the area of high-grade plastic tube construction During the development stage, at this stage, can also be said BMP is sustainable development So what factors contribute to this? Surely, the human factor remains - the staff - is the most important Have the Leadership of company developed policies, strategies effective human resource management to sustain and developing good staff or not? Leaders really care about the needs of employees, care about what increases their satisfaction? Managers need to understand the meaning of employee's satisfaction in other to achieve those purposes Employee satisfaction is defined as workers who are happy with their job and their working environment The word satisfaction toward employee can be determined that all the best of internal quality which can be delivered to workers Employees
performances are often rely on work environment, colleagues’ attitude and
Trang 17satisfaction of them They will work more effective and will deliver high quality product and service instead of "just do their jobs" Employee satisfied with the company, they will promote all their capacity, performance, productivityand the organization's overall development
1.1.4 Purpose of study
To empirically study the significance and impacts of physical (salary, bonus, working conditions, nature of work ), psychological (relationship with superior and colleagues ) & environmental factors on employees satisfaction of Binh Minh Plastic JSC
- Identify the employee's satisfation for enterprise
- Learn the factors affects employee's satisfaction for enterprise
- Recommendations some measures to raise the level of employee's
satisfaction for enterprise
1.1.5 The scope of the research
This research was conducted on 320 employees of Binh Minh Plastic JSC,
mainly in Binh Duong factory, Long An factory and Head Office It was conducted on both employees and direct supervisors in different departments include Sales & Marketing, Business Development, Compliance, Finance and Information Technology, and Production
A series of formed questionnaire was distributed to each employee with clear instructions and guidelines for fulfillment
1.1.6 Research questions
The research will focus on examining the relations of factors affecting to employee's satisfaction Therefore, the following questions will be addressed in the scope of study:
> How is nature of work affects to employees satisfation?
How are promotion opportunities affect to employees satisfation? How are financial benefits affect to employees satisfation?
How are working conditions affect to employees satisfation?
Trang 181.2 Layout themes
> Chapter 1: Introdution the subject > Chapter 2: Literature review >» Chapter 3: Research Methods
> Chapter 4: Analysis findings satisfaction level of employees at Binh Minh Plactic JSP
> Chapter 5: Some propose raising the level of employee satisfaction
Summary Chapter 1: Chapter | briefly mentioned BMP and give the reasons
for the selection of research topics determinants, aiming to study the content and audience profile, scope , research methodology of the subject, which has an overview of why and how to approach the study of the authors to be able to easily capture information in the next content
CHAPTER II — LITERATURE REVIEW
2.1 EMPLOYEE SATISFACTION IN WORK
Employee satisfaction at work is a concept that has not been agreed by the researchers comes from different angles, the different research areas Kusku (2003) suggested that job satisfaction reflect the needs and personal wishes are met and the level of the staff feel about their work This definition comes from the theory of Maslow scale needs (1943) suggest that satisfied employees meet the demand from low to high Wright and Kim (2004) shows that job satisfaction is the fit between what employees want from work and what they get from work Some other studies suggest that job satisfaction is a positive emotional state of workers with work shown by acts, their beliefs (Vroom, 1964; Locke, 1976; Quinn and Staines , 1979; Weiss et al, 1967)
Some other studies suggest that job satisfaction is satisfaction with various aspects of work Level of satisfaction with job aspects affecting attitudes and awareness of staff, which is the study of typical job description index (JDI) by Smith et al (1969
tutorial Luddy, 2005) In the study by Smith et al in job satisfaction is reflected in
Trang 19and colleagues ( 5) wages and income The consideration of satisfaction in many aspects of Smith's work is also recognized by many other researchers in different studies (Spector, 1997; Tran Kim Dung, 2005; Luddy, 2005)
Approach various aspects related to the job will help administrators more aware of the strengths and weaknesses in the administration of the organization and activity are most appreciated employees or worst (Deconinck & Stilwell CD, 2002) Therefore, many researchers as Stanton and Croaaley (2000), Schwepker (2001) approach towards measuring the level of satisfaction for the work component According to Smith, Kendal and Hulin (1969), the level of satisfaction with the components or aspects of the work is the attitude of influence and recognition of employees on various aspects of the work (nature of work , salaries and opportunities for advancement, leadership, colleagues) of them Schemerhon (1993, cited by Luddy, 2005) defined job satisfaction as the emotional reactions and feelings towards different aspects of the work of employees The author emphasizes the causes of job satisfaction including job placement, superior supervision, relationships with colleagues, job content, the treatment, and the rewards include advance , physical conditions of the workplace, as well as the structure of the organization
Organizations need to know and understand specific factors that significantly affect satisfaction of employee in order to create useful mechanism for hiring, training, improving and managing staff effectively This study aim to identify factors that affecting employee's satisfaction It will heip to know how these factors can importantly affect the result of employee's working process There are variable factors, each factors have difference affect on employee's satisfation
Trang 20When companies are effective in satisfying their employees, employees stay longer, make a deeper commitment to the business, and recommend ways to improve the company's future business such as product and services Knowing our employee means knowing our company's true strength and ability It will help the manager able to determine solution for the internal problems and create solid organization Employee satisfaction can be measured by clear performance target set Managers grade their performance by these targets By that managers have changes to attract and retain talented employees
2.2 Some related theories
2.2.1 Herzberg's Two-Factor Theory
Herzberg's Two-Factor Theory, McClelland's Need Theory, and Maslow's Hierarchy of Needs all talk about higher-level psychological needs such as achievement, recognition, responsibility, and advancement The key factor that differentiates Two-Factor Theory is the idea of expectation
¥ According to Herzberg, intrinsic motivators and extrinsic motivators have an inverse relationship This is to say that intrinsic motivators tend to inspire motivation when they are present, while extrinsic motivators tend to reduce motivation when they are absent This is because of expectation Extrinsic motivators (e.g., salary, benefits) are expected and so will not increase motivation when they are in place, but they will cause dissatisfaction when they are missing Intrinsic motivators (e.g., challenging work), on the other hand, can be a source of
additional motivation
Extrinsic Motivators
Trang 21Intrinsic Motivators
Intrinsic motivators tend to represent less tangible, more emotional needs—.e., the kinds of needs identified in McClelland's "relatedness" and "growth" categories of needs in his ERG Theory and in the higher levels of Maslow's Hierarchy of Needs Intrinsic motivators include challenging work, recognition, relationships, and growth potential Managers must recognize that while these needs may be outside the more traditional scope of what the workplace should provide, they are
absolutely critical in empowering strong individual and team performance
2.2.2 Maslow's Hierarchy of Needs Model
Speaking of general satisfaction it is often referred to the theory of Maslow's needs hierarchy (1943) According to him, human needs are divided into five ascending levels: physiological, safety, social, self-esteem and self-expression After a certain demand has been satisfied, the demand in the next higher rank will appear From this theory, we can see managers need to know their employees are at any level needs so that your employees motivated by meeting the needs of their individual This is the theory of human needs and it is reviewed and applied in this study because only when the employee needs are met, they will be able to have job satisfaction The demands of this theory are discussed in terms of different variables For example, the satisfaction of physiological needs and safety can be expressed in the variables measuring satisfaction on salary, bonuses and company benefits Similarly, the satisfaction of social needs and self-respect are shown in the variables expressed satisfaction about the relationship with the leaders, superiors and colleagues, as well as current variations in certain autonomy perform the work
Trang 22
Intake: Nov, 2014 OUM MBA Project Self-Actualization Esteem needs Social needs ] Safety needs Figure 5: Maslow's Hierarchy of Needs Model Physiological needs ]
2.2.3 Adams' equity theory
John Stacey Adams, workplace and behavioural psychologist, put forward his Equity Theory on job motivation in 1963 There are similarities with Charles Handy's extension and interpretation of previous simpler theories of Maslow, Herzberg and other pioneers of workplace psychology, in that the theory acknowledges that subtle and variable factors affect each individual's assessment and perception of their relationship with their work, and thereby their employer Awareness and cognizance feature more strongly than in earlier models, as does the influence of colleagues and friends, etc, in forming cognizance, and in this particular model, ‘'a sense of what is fair and reasonable”'
Trang 23benchmarks and our own responses to them in relation to our own ratio of inputs to outputs
Inputs are typically: effort, | People need | Outputs are typically all financial loyalty, hard work, to feel that rewards - pay, salary, expenses, commitinent, skill, ability, | there is a fair | perks, benefits, pension adaptability, flexibility, balance arrangements, bonus and
tolerance, determination, between commission - plus intangibles -
heart and soul, enthusiasm, inputs and recognition, reputation, praise
trust in our boss and outputs and
superiors, support of thanks, interest, responsibility, stimulus, travel, training, colleagues and development, sense of subordinates, personal achievement and advancement, sacrifice, etc promotion, etc 2.3 SOME RESEARCH ON EMPLOYEE SATISFACTION IN WORK
The theories concerning satisfaction in the work mentioned above was later researchers consider the application and conduct research to identify and test the real factors affecting satisfaction in the work of the employees Here are some study authors use research as a basis for your project
Weiss and colleagues (1967) from the University of Minnesota made the
measurement criteria of job satisfaction through Minnesota satisfaction
questionnaire (MSQ) which included questions about the possibility of using the capacity of Friendly, achievements, progress and competence, company policy, remuneration, colleagues, creativity, independence, moral values, recognition, responsibility, security, social status, the supervision of their superiors, working conditions, etc
Trang 24work of a person through the factors is the job quality, wages, promotion, coworkers, and the supervision of their superiors
Spector's study (1985) in the field of assessing service satisfaction and attitude factors as salary, promotion opportunities, working conditions, supervision, colleagues, love of work, communicate information, unexpected rewards and welfare
In Vietnam, Tran Kim Dung's research (2005) conducted in Ho Chi Minh
City showed that the factors affecting employee satisfaction for the work that is the nature of work, training and promotion progress, salary, leadership, colleagues, company benefits and working conditions
The study of Nguyen Lien Son(2008) in Long An for 6 factors affecting satisfaction with the work of the employees is the nature of work, wages, colleagues, leadership, training opportunities creation and promotion, and working environment 2.4 FACTORS AFFECTING THE SATISFACTION OF EMPLOYEES IN WORK 2.4.1 Compensation material Ompansation materials include: Salary, bonus and benefits 2.4.1.1 Salary
The salary is the amount that companies pay employees a fixed and regular manner in a unit of time, such as weekly, monthly, quarterly and annual Wages are the main income of the household staff and help them family stability, improve living standards It also expressed the value, status of staff According to Herzberg, the wage factor is to maintain satisfaction in the job if it reflects the true value of the contribution of each employee and ensure the fair, reasonable, otherwise it will
create resentment
2.4.1.2 Bonus and benefits
Trang 25life, peace of mind to work, improve working capacity At the same time welfare workers as a tool to help organizations retain their best employees and attract highly qualified workers from outside
Salaries, bonuses and benefits are an effective tool to attract, motivate and retain employees Proficient use of this tool will help businesses be more favorable in achieving business goals
2.4.2 Opportunities for training and advancement
Opportunities for training and advancement is shown the workers be given training opportunities, improve service skills and ability to work they were promoted to higher positions Workers will feel satisfied with their job and training opportunities to help them advance in their careers So the creation of training
opportunities and promoting advancement will make employees feel satisfied with
the work This has been proven through studies Spector (1985), JH Ironson et al (1989), Jonh.D Pettit et al (1997), T Ramayah et al (2001) Stanton et al (2001 ), Kinicki et al (2002), Luddy (2005), Tran Kim Dung (2005), Nguyen the Son
(2008), Pham Van Manh (2012), 2.4.3 Relationships with leaders
Leadership is superior, is the manager of the staff, leadership gives staff satisfaction through communication, expressing interest, fair treatment and recognition of employee contributions In other words the leadership factor positively affecting employee satisfaction at work This has been proven through studies Spector (1985), Jonh.D Pettit et al (1997), Lilia Cortina, and Vicki J Magley M (2011), T Ramayah et al (2001), Luddy ( 2005), Tran Kim Dung (2005), Nguyen The Son (2008), Nguyen Thi Thu Thuy (2011),
2.4.4 Relationships with colleagues
Colleagues who do the same location with each other, work with content similar implement Relationships among peers and competitive relationships and support Workers will feel satisfied with the work if their work is good support from colleagues, co-workers are friendly and help each other in their work as well as fair
competition in the reward and promotion within the organization In other words,
Trang 26colleagues This has been proven through studies Ramayah T et al (2001), Luddy (2005), Tran Kim Dung (2005), Nguyen The Son (2008), Nguyen Thi Thu Thuy
2011), Pham Van Manh (2012),
2.4.5 The nature of work
The nature of work is the content of congviec matching capabilities of employees, inspiring employees promote their capabilities Appropriate working arrangements will exploit the potential of employees, increase employee productivity and makes employees feel comfortable in their job done In other words the employees will feel satisfied with the work assigned to the job if the job that is suitable to their ability This is proven by studies of Jonh.D Pettit et al (1997), research Ramayah T et al (2001) in Malaysia, research Kinicki et al (2002), research Luddy (2005), a study by Tran Kim Dung (2005), by Nguyen Lien Son (2008), by Nguyen Thi Thu Thuy (2011) show that employees are satisfied with the nature of the work assigned influential their satisfaction on the job
2.4.6 Work Environment
Work environment is a workplace situation of workers it covers such factors as: the safety of workplaces, equipment and jobs in service workers Workers are provide a good working condition will be evaluated on their work well, whereas they feel dissatisfied with working conditions that they must accept This has been proven in studies of Spector (1985), Tran Kim Dung (2005), Nguyen The Son (2008), Pham Van Manh (2012),
Summary Chapter 2: In Chapter 2, the effect has summarized the theoretical basis
Trang 27CHAPTER III - RESEARCH METHODS
3.1 Process of Research
Step 1: Identify the problem research
Step 2: Find out the status the company and determine the rationale
Step 3: Proposed research model Step 4: Preliminary Study
Step 5: Research Official
Based on the model research, carried out research to collect two types of information: secondary and primary
* With secondary information: Collect information on the development process and report business results, tables and statistics of the structure of the staff, in the company
¢ With primary information: Collect from company employees through survey questionnaires were completed in preliminary studies
Step 6: Handling data collected
Information collected included handled by two tools is Microsoft Excel and SPSS 20 Microsof Excel charts used to draw statistics, SPSS 20 for statistical and quantitative analysis
Step 7: Analysis of research results
From the results processed, analyzed the causes of that phenomenon Step 8: Conclusion and offer solutions
Trang 283.2 RESEARCH MODEL 3.2.1 The proposed research model Nature of Jobs a Promotion + Hi opportunities + H2 Salary (faniancial + H3 Employees benifits) _ ————— | Satisfation + H4 Working conditions | + H5 MANAGERS +H Colleagues Figure 5: Research Model 3.2.2 Research Hypothesis
¥ Research questions: "Which factors affect the satisfaction of employees at the Binh Minh Plastic Company JSC"
¥ Research Hypothesis:
> >
Hypothesis H1: The nature of work impacts on employee satisfaction Hypothesis H2: Promotion opportunities impact on employee satisfaction
Trang 293.3 METHODS OF HANDLING INFORMATION
© Questionnaire’ be directly distributed to employees in the company during the breaks and obtain approval from the corporate leaders > The number of broadcast questionnaire: 235 votes for the departments of the
company Collected 231 valid table Questionnaire used tructured questions combining the scale to measure values such as identifiers and Likert scale of 5 levels: (1) Strongly disagree, (2) disagree, (3) normal, (4) agree (5) Strongly agree
> The questionnaire consists of two parts: the personal information and the assessment of the level agreed with the criteria of factors affecting employee satisfaction at work:
* Part 1 - Personal Information: Include the question of room / board is working, education, gender, seniority, age, monthly income
* Part 2 - The factors influencing job satisfaction of employees: This section includes 23 observation variables represented 6 independent factors in the model study and 3 joint assessment variables represent auxiliary transformer the satisfaction of employees
3.3.1 Descriptive statistics
Descriptive statistics for the purpose of finding out the outstanding characteristics of the study sample, statistics are used to quantify variables, qualitative variables which evaluate the impact on the Research Model Descriptive statistics presented graphs relating to the percentage of variation in comparison with the total sample
3.3.2 Mean values
The mean value is used to calculate the average value of the variables, applied to continuous variables or values Likert scale from 5 upwards Mean average value
used to calculate the average values for quantitative variables
The meaning of each average value for scale range:
Value distance = (Maximum - Minimum) /n = (5-1) /5 = 0.8 7 1.00 to 1.80: Completely disagree
Trang 30" 3.41 to 4.20: Agreed 7 4.21 to 5.00: Totally agree
3.3.3 Cronbach’s Alpha Testing
Meaning: Cronbach's Alpha Testing is testing to analyze and evaluate the reliability of the scale The purpose of this test is to find out whether the observed variables
with the same measure for the concept to be measured or not The value
contribution is reflected more or less through the correlation coefficient of total variation Corrected Item - Total Correlation Thereby, allowing the removal of inappropriate variation in Research Model
Evaluation criteria: The variables observed correlation coefficient variables - total (Item-Total Correlation) is less than 0.3 will be disqualified and the criteria for the scale when Cronbach's alpha of 0.6 or higher (Hoang Trong & Chu Nguyen Mong Ngoc , analysis of research data with SPSS, Hong Duc Publishing House, 2008)
3.3.4 Exploratory Factor Analysis (EFA)
Meaning: The Hair & partner (1998), factor analysis is a statistical method used to analyze a set of much shortened observed variables into a group so that they have more sense, but still contains most of the information content of the original variables
Evaluation criteria: The Hair & partner (1998, 111), Multivariate Data Analysis, Prentice - Hall International, the EFA analysis, Factor Loading index value greater than 0.5 are considered to have practical significance KMO is indicator of the relevance of the method EFA, KMO coefficient greater than 0.5 and less than 1, the factor analysis is considered to be appropriate According Gerbing & Anderson (1988), stops when Eigenvalue (represent the fraction of variation explained by each factor) greater than 1-and the total variance explained by the deduction for each factor greater than 50% of new satisfied requirements of factor analysis
3.3.5 Pearson correlation analysis
Trang 31Evaluation criteria : To examine the relationship between the variables we use the
correlation coefficient for review Other correlation coefficient of 0 and value sig accreditation of two side less than 0.05 show concepts related to each other Positive
correlation coefficient of relationship is expressed in the same direction, negative
correlation coefficient expressed opposite relationship, the correlation coefficient between the larger factor represents the relationship between them as closely If between two independent variables correlation must note multicollinearity problems when regression analysis
3.3.6 Multivariate Regression Analysis
Meaning: The method of regression analysis will determine the relationship between the dependent variable and the independent variables Regression analysis method allows to draw the final regression equation includes the factors that impact
directly on the level of employee satisfaction
Evaluation criteria: Standard accepts the appropriateness of correlation regression model (Hoang Trong & Chu Ngoc Nguyen Mong - Data analysis with SPSS Research) are:
"Testing must be valid F sig less than 0.05 to verify the suitability of regression models with overall
= Accepted standards variables Tolerance value greater than 0.0001
“The diagnosis of multicollinearity phenomenon magnified coefficient variance VIF (Variance Inflation Factor) is less than 10
= Durbin Watson coefficient used to test the first-order autocorrelation chain has to have value ranges from 0 to 4
3.3.7 Research Hypothesis Testing
Meaning: The Research hypothesis testing will be conducted through the research data of the regression equation was built
Evaluation criteria: Standard testing using t-statistic and the value sig respectively, taken as standard reliability 95%, the value sig will be compared directly with the
Trang 323.3.8 Analysis of variance ANOVA
Meaning: Technical analysis of variance ANOVA was used to test the hypothesis of
a total group of card value equal average This technique is based on calculating the
amount of variation within the group and the average variation between groups This estimate is based on two of the variation we can draw conclusions about the level of the average difference between the groups
Evaluation criteria: specific terms in this study Where the variance of the satisfaction level is equal between groups of employees will use the results of the ANOVA table Where variance of satisfaction differ between groups of employees, this time can not use tables that used ANOVA test results Statistics Tamhane's T2 Both cases are based on the level of significance sig to conclude (sig <0.05: no difference with statistical significance; sig > 0.05: no differences were statistically significant)
Summary Chapter 3: In Chapter 3, the author has clarified the Research model of choice, offering specific research process and the research methods and statistical
tools to analyze spending the most detailed to conduct practical research at the
Trang 33CHAPTER IV — ANALYSIS OF RESULTS RESEARCHING FACTORS AFFECTING TO EMPLOYEES SATISFATION AT BINH MINH PLASTIC JSC 4.1 Descriptive statistics Z XN = female g male
Figure 6: Structure of employees by gender
Number of female employees accounted for 21% of the total number of employees,
while the rate is 79% male employees 1% 4 > w Age 18-24 mw Age 25 -30 m@ Age 31-40 @ Age 41-50 mw Age >50 Figure 7: Structure of employees of Age
CHAU THI NGOC HOA 33
Trang 342% § Direct employee & Office staff @ Middle Managers @ Senior Managers Figure 8: Structure of Working position mwi-<3 years 3-5 years “>5 years
Figure 9: Structure of Work seniority
Trang 36The mean value of the criteria in the variable nature of the work are in the range of 3.28 to 3.71 Thus, the majority of employees agree with the criteria for assessment of the work being done Variable Job1 “Jobs suitable to the capacity and expertise” andvariable Job4 “the job is interesting and challenging” have the high level of agree with 3.71 and 3.4 4.2.2 Promotion opportunities Descriptive Statistics Std N Minimum Maximum Mean Deviation pro6 231 1 5 3.84 1.252 pro7 231 1 5 K 1.049 pro8 231 1 5 3.85 1.111 pro9 231 1 5 3.96 1.081 Valid N 231 (listwise)
The variables have the mean value > 3.41 should be able to assert staff generally quite satisfied with training opportunities and advancement in the company
4.2.3 Financial Benefits (Salary,bonus, benefits) Descriptive Statistics Std N Minimum | Maximum Mean Deviation $a10 231 2 5 3.91 612 Sa11 231 2 5 3.48 638 Sa12 231 2 5 3.71 847 Sa13 231 2 5 3.71 909 Sa14 231 4 5 4.02 791 Valid N 231 (listwise)
Trang 374.2.4 Working Conditions Descriptive Statistics N Minimum Maximum Mean Std Deviation woc15 231 4 5 3.38 1.166 woc16 231 1 5 3.42 1.234 woc17 231 1 5 3.38 1.191 Valid N 231 (listwise)
The variables have the mean value from 3.38 to 3.42 should be able to assert staff
generally satisfied with Working conditions at the company 4.2.5 Managers (Management style) Descriptive Statistics N Minimum | Maximum Mean Std Deviation man18 231 1 5 3.09 1.064 man19 231 1 5 2.99 1.302 man20 231 1 5 3.11 1.371 Valid N 231 (listwise)
Trang 384.2.6 Colleagues relationship Descriptive Statistics N Minimum Maximum Mean Std Deviation col21 231 4 5 4.14 1.029 col22 231 2 5 4.14 888 col23 231 4 5 3.91 847 Valid N 231 (listwise)
The variables have the mean value > 3.41 should be able to assert staff generally quite satisfied with colleagues relationship at the company
4.3 Cronbach’s Alpha Testing
In turn carry out the verification scale Cronbach's Alpha for each group of observed variables of each independent variable and the dependent variable to examine the scale of the model can ensure the reliability according to requirements of the testing
or not
Most of the factors are satisfactory inspection of testing, the only independent variable sall4 has Corrected Item-Total Correlation is 0.180, so we remove this variable and conduct examinations 2nd Implementation result satisfies the requirements of accreditation (Details presented in Appendix 2)
Independent variables and The remaining Cronbach’s
Trang 39Table 5: Results of inspection of Cronbach's Alpha last 4.4 Exploratory Factor Analysis (EFA)
After testing the Cronbach's Alpha, with 6 to 22 independent variables observed
variables affecting employee satisfaction at work at the Binh Minh Plastic JSC,
Putting this into 22 observed variables factor analysis discovered EFA Factor analysis is done to allow deduction Principle Component, using Varimax rotation, using methods KMO and Bartlett test to measure the compatibility of the survey (Details presented in Appendix 2) KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of 753 Sampling Adequacy Bartlett's Test of Approx Chi- 1975.617 Sphericity Square df 210 Sig .000 Table 6 : Results KMO and Bartlett's Test Values Comparison KOM 0.753 0.5 < 0.753 <1 Bartlett's Test of Sphericity 0.000 0.000 < 0.05 Rotation Sums of Squared Loadings (Cumulative %) _ Eigenvalues 1.512 1.512>1 Table 7 : Results exploring factor analysis EFA 70.258% 70.258%> 50%
Through the results table above, we find that the observed variables included in the analysis were grouped into 6 groups Factors Statistical Review:
* KMO = 0.753 should factor analysis is appropriate
+ Sig (Bartlett's Test) = 0.000 (sig <0.05) demonstrated the observed variables are correlated with each other in the overall
* eigenvalues = 1.512> 1 represent the fraction of variation explained by each factor, the factors that draw meaningful summary of the best information
* The total variance extracted:
Trang 40This proves that the 70,258% of the data variance is explained by 6 new factor + Factor Loading coefficient of the observed variables are greater than 0.5 Total Variance Explained
Extraction Sums of Squared Rotation Sums of Squared
Initial Eigenvalues Loadings Loadings
% of Cumulative % of Cumulative % of Cumulative
Component [| Total_| Variance +% Total_| Variance % Total | Variance % 1 3.796 18.075 18.075 | 3.796 18.075 18.075 | 2.822 13.439 13.439 2 2.758 13.133 31.207 | 2.758 13.133 31.207 | 2.651 12.622 26.061 3 2.583 12.298 43.505 | 2.583 12.298 43.505 | 2.418 11.515 37.576 4 2.360 11.237 54.742 | 2.360 11.237 54.742 | 2.398 11.421 48.997 5 1.746 8.313 63.056 | 1.746 8.313 63.056 | 2.315 11.024 60.021 6 4.512 7.202 70.258 | 1.512 7.202 70.258 | 2.150 10.236 70.258 7 686 3.265 73.523 8 611 2.908 76.431 9 583 2.777 79.208 10 513 2.444 81.652 11 504 2.399 84.052 12 462 2.199 86.251 13 436 2.077 88.328 14 414 1.972 90.300 15 381 1.813 92.113 16 350 1.667 93.780 17 307 1.464 95.244 18 286 1.363 96.607 19 268 1.279 97.886 20 233 1.109 98.995 21 211 1.005 100.000 Extraction Method: Principal Component Analysis
Table 7 : Total Variance Explained
Results exploring factor analysis first EFA satisfy the conditions are accepted, so there is no need to conduct further analysis times Do the same with 3 variables observed SE1, SE2, SE3 in the dependent variable, the analysis showed that all three variables are converging on one factor