Factors Affecting Job Satisfaction: A Comparison between state-owned and non state-owned Enterprises in Vietnam

1 UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business LE ANH TAI Factors affecting job satisfaction: A comparison between state-owned and non state-owned enterprises in Viet Nam MASTER OF BUSINESS (HONOURS) Ho Chi Minh – Year 2012 UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business LE ANH TAI Factors affecting job satisfaction: A comparison between state-owned and non state-owned enterprises in Viet Nam ID: 60340102 MASTER OF BUSINESS (HONOURS) SUPERVISOR: Dr NGUYEN HUU LAM Ho Chi Minh City – Year 2012 i ABTRACT The turn-over rate of Vietnamese companies has been so high recently, which causes many troubles for Vietnamese enterprises, such as recruitment and training However, the most factor causes high turn-over rate of Vietnamese companies is job dissatisfaction Therefore, this research is conducted to find out the most factors affecting job satisfaction in order to make a contribution into reducing turn-over rate of Vietnamese companies This research investigates employees working in state-owned and non-state-owned companies in Ho Chi Minh City The results demonstrate career prospect has the most contribution in job satisfaction and employees who are working in non-state-owned companies are more satisfied than ones in state-owned companies ii ACKNOWLEDGEMENTS I would like to express my obligation to my Supervisor, Dr Nguyen Huu Lam, for his supporting and inspiration Furthermore, I would like to show my thankful to Dr Nguyen Dinh Tho for his clear instruction during our study, which has a lot of useful methods and practical implications for our study and career Besides, I would like to thank to my friends in MBUS 2010 who had supported me a lot during my thesis implementation And an honorable mention goes to my family, my friends and my colleagues for understanding and helping me during my data collection as well as my thesis completion Ho Chi Minh City, Vietnam January 2nd, 2013 iii TABLE OF CONTENTS ABTRACT i ACKNOWLEDGEMENTS ii CHAPTER INTRODUCTION .1 Background .1 Problem statement Research objective Research scope Practical implication Research structure .3 CHAPTER LITERATURE REVIEW Introduction .4 Job satisfaction Maslow's hierarchy of needs 4 Herzberg's Motivation-Hygiene Theory 5 McGregor's Theory X and Theory Y Incentive Employee satisfaction measurement .8 Hypotheses 15 Conceptual model 15 CHAPTER RESEARCH METHODOLOGY 17 Introduction .17 Research design .17 2.1 Research methods 17 2.2 Research process 18 Variable Coding 19 Data collection 22 CHAPTER RESEARCH RESULT 23 Introduction .23 iv Statistics 23 2.1 Observation description 23 2.2 Variable description 24 Scale analysis 25 3.1 Reliability analysis (Cronbach alpha) 25 3.2 Validity analysis (factor analysis) 29 3.3 Adjusted Conceptual model .33 Analysis 34 4.1 Correlation analysis 34 4.2 Regression analysis 35 Discussions 39 5.1 Hypothesis testing 39 5.2 Analysis result discussions .41 CHAPTER CONCLUSION 43 Introduction .43 Conclusions on the research problem and hypotheses 43 Implications for human resource manager 43 Research contributions 44 Limitations 44 REFERENCES 45 BIBLIOGRAPHY .47 APPENDIX .48 Appendix 1: Vietnamese questionnaire 48 Appendix 2: English questionnaire 52 Appendix 3: Regression standardized residual and homoscedasticity 56 v LIST OF TABLES Table 1: factors affecting job attitudes Table Job satisfaction measurement (OSI) 11 Table Job satisfaction instrument 14 Table Variable coding 21 Table 5: Demographic description 24 Table 6: Variable description 25 Table Cronbach Alpha 27 Table Cronbach Alpha adjustion 29 Table 9: factor analysis .31 Table 10 Data reduction 32 Table 11: Correlation analysis 34 Table 12 Multi linear regression analysis (1) 35 Table 13 Multi linear regression analysis (2) 35 Table 14 Multi linear regression analysis (3) 36 Table 15 Multi linear regression analysis between state-owned and non-stateowned companies (1) 37 Table 16 Multi linear regression analysis between state-owned and non-stateowned companies (2) 37 Table 17 Multi linear regression analysis between state-owned and non-stateowned companies (3) 38 vi LIST OF FIGURES Figure Maslow hierarchy of needs Figure OSI model Figure Conceptual model 16 Figure Process of analysis 18 Figure Adjusted conceptual model .33 vii LIST OF ABBREVIATIONS JS: Job satisfaction WCA: Working conditions and activities WC: Working conditions WA: Work activities S: Salary R: Relationship CP: Career prospects CHAPTER INTRODUCTION Background Vietnam started a profound economic reform in 1986 that aimed to transform the country from a command economy into a market oriented economy From the early days of the economic reform, economic structural reforms and open-door policies have become an integral part of overall economics (World Bank, 1999) As a consequence, Vietnam substantially elevated its economy and the living standards of Vietnamese people The country reaped average economic growth rate (GDP) of over 7% during the 1990s and early 2000s, especially more than 8% in 2006, which made it one of the highest growing economies in the World (World Bank, 2006) In the booming economic period and the globalization, many foreign enterprises join into the Vietnamese economy as a Joint Venture Company They applied many modern management methods and incentive policies, which are spread to many state owned and private Vietnamese companies Opening up the market brought both threats and opportunities Some businesses thrived in the new business environment and were able to improve productivity, product quality, and ultimately profit Others failed to meet the new challenges and declined Under competitive pressure, Vietnamese companies, including state owned companies, private companies and joint venture companies try to maximize their performance such as financial performance, production performance, sales performance, etc Besides, employees also take an important essential role in development Base on Maslow (1954) the personal needs go along with their development So, employees need more and more from their works, their devotion for company development However, their requirements have not always met; they usually suffer from their job and find new changes in their life Another remarkable is the distribution of Vietnamese labor forces They mostly focus on the big cities, such as Ha Noi and Ho Chi Minh City or so The movement of labor forces is clearly depicted in the Vietnamese industrial zones where concentrate a large number of unskilled labors 43 CHAPTER CONCLUSION Introduction The aims of this research are exploring factors affecting on job satisfaction in Vietnamese companies This research bases on the previous theories of job satisfaction The target respondents are employees working in state-owned and nonstate-owned companies in Ho Chi Minh City The conceptual model of this research mostly follows Occupational Stress Indicator (OSI) and focuses on the differences between state-owned and non-state-owned sectors This chapter will summary the results of this research, discuss the meaning and implication of the results, and raise the limitations of this research Conclusions on the research problem and hypotheses The research problem of this thesis is finding factor has the most contribution in employees’ job satisfaction And the result shows that career prospect is the most factor affecting on job satisfaction in both state-owned and non-state-owned companies Besides, the whole relevant hypotheses have already been tested and drawing the conclusion above Implications for human resource manager This research explores an interesting thing, which is stated that the most effect on job satisfaction is career prospect Actually, this research interviews young employees mostly, which are less than 34 years old (207 employees are less than 34 years old) Therefore, career prospects are very important to their careers This point will help human resource manager focus on giving more career opportunities for their employees rather than salary or other working conditions The more chances human resource manager creates for their employees, the more challenges they must overtake 44 Research contributions This research represents the young employees’ opinion about their job satisfaction It claims that career prospect is the most concerned of employees I hope human resource manage should notice on developing careers for their employees, and this result can make a contribution into solving high turnover rate in Vietnamese companies Limitations - This research is only conducted in Ho Chi Minh City and using non-probably data collection methods for convenience Therefore, I cannot cover all cases, and the result may be not exact - The samples of this research are mostly young employees, who are less than 34 years old So, we cannot understand the opinion of senior employees - This research is done by English, a secondary language So, it causes some troubles for the writer to convey all of the meaning of measurement instrument scales into Vietnamese 45 REFERENCES Brayfield, A H., &Rothe, H F (1951) An index of job satisfaction Journal of Applied Psychology, 35, 307-311 Cooper, C.L., & Marshall, J (1976) Occupational sources of stress: A review if the literature relating to coronary heart disease and mental ill health Journal of Occupational Psychology, 49, 11-28 Cooper, C L., Sloan S J., & William, S (1988) Occupational stress indicator: Management guide Windsor: NFER-Nelson C L Hulin (1966) The effects of community characteristics in measures of job satisfaction Journal of applied psychology, 50, 185 – 192 Herzberg, F (1966) Work and the Nature of Man Cleveland: World Publishing Co Herzberg's Motivation-Hygiene Theory [online] Available at: http://www.netmba.com/mgmt/ob/motivation/herzberg/ Laodong.com.vn Retrieved March 17, 2011 from http://laodong.com.vn/Su-kienbinh-luan/Nhay-viec/38845.bld Leadership and organizational behavior [online] Available at: http://www.nwlink.com/~donclark/leader/leadob.html Maslow, A (1954) Motivation and Personality New York: Harper and Row McGregor, D (1957) Proceedings of the Fifth Anniversary Convocation of the School of Industrial Management, The Human Side of Enterprise Massachusetts Institute of Technology (April 9, 1957) Nguyen TD (2011) Research method in business Labor – society publisher 46 Pouliakas, Konstantinos (2008): Pay enough, don’t pay too much or don’t pay at all? The impact of bonus intensity on job satisfaction Retrieved from URL http://mpra.ub.uni-muenchen.de/20155/ Towers Watson (May, 2011): HR Market Trends Survey Available from http://www.towerswatson.com/vietnam/ 47 BIBLIOGRAPHY Lam D Nguyen, (2011, Oct) Organizational Characteristics and Employee Overall Satisfaction: A Comparison of State-Owned and Non State-Owned Enterprises in Vietnam The south east Asian journal of management, 5(2), 135 – 158 Measuring job satisfaction [online] Available at: http://www.makemynotez.com/organizational-behavior/measuring-jobsatisfaction/ N van Saane, J K Sluiter, J H A M Verbeek and M H W Frings-Dresen (2003) Reliability and validity of instruments measuring job satisfaction—a systematic review Occupational Medicine, 53(3), 191–200 DOI: 10.1093/occmed/kqg038 Steiler, D (2004, July) Translation and validation of the occupational stress indicator for use in France (Unpublished honours thesis) The university of Newcastle – Upon – Tyne Business School 48 APPENDIX Appendix 1: Vietnamese questionnaire BẢNG KHẢO SÁT Kính chào anh/chị, Tôi Lê Anh Tài - học viên cao học Viện Đào Tạo Quốc Tế (ISB) – Trường Đại Học Kinh Tế Tp.HCM Tôi thực đề tài nghiên cứu yếu tố ảnh hưởng đến thỏa mãn nhân viên cơng ty quốc doanh ngồi quốc doanh Rất mong anh/ chị dành thời gian thực bảng khảo sát bên Phần trả lời anh/ chị giữ bí mật, có thơng tin tổng hợp báo cáo công bố Nếu anh/ chị quan tâm đến đề tài, báo cáo sau hoàn thành gởi đến anh/ chị để tham khảo Mọi ý kiến đóng góp xin vui lịng gửi địa chỉ: anhtai_le87@yahoo.com Chân thành cám ơn hỗ trợ anh/ chị! PHẦN I:CÁC YẾU TỐ TÁC ĐỘNG ĐẾN SỰ THỎA MÃN CỦA NHÂN VIÊN Anh/ chị vui long đánh giá mức độ đồng ý với phát biểu theo qui ước từ thấp đến cao sau: 49 Hồn tồn khơng đồng ý Khơng đồng ý Hơi khơng đồng ý Khơng có ý kiến Hơi đồng ý (1) (2) (3) (4) (5) TT I I.1 I.2 I.3 II II.1 II.2 II.3 II.4 II.5 II.6 II.7 II.8 III III.1 III.2 III.3 III.4 III.5 III.6 Nội dung Lương khoản tiền thưởng Mức lương phụ thuộc vào thâm niên kinh nghiệm Mức lương tơi tuỳ thuộc vào lực hay tính chất cơng việc tơi làm Tơi hài lịng với khoản tiền thưởng (ngoại trừ lương) Tính chất cơng việc Tơi thật thích cơng việc làm Tơi thích cách quản lý nhân viên cơng ty Cơng việc tơi làm địi hỏi có chun môn Trong công ty tôi, mâu thuẫn công việc giải Khi đưa định quan trọng cơng việc, cần có đồng ý nhiều người Nhiều biện pháp cải tiến công việc áp dụng công ty Khối lượng công việc nhiều so với đồng nghiệp phận Tôi thể hết khả vào cơng việc Điều kiện làm việc Cơng việc bảo đảm sức khoẻ tơi Tơi xếp thời gian làm việc linh hoạt, thoải mái Khơng khí làm việc cơng ty tơi thoải mái Tơi cảm thấy khơng gị bó cơng việc Cơ cấu tổ chức công ty đơn giản, hạn chế thủ tục phức tạp Cách trao đổi thông tin phận với rõ ràng, khơng có nhầm lẫn thơng tin Đồng ý (6) Hoàn toàn đồng ý (7) Mức độ đồng ý 50 TT Mức độ đồng ý Nội dung IV V Triển vọng nghề nghiệp Những nỗ lực đóng góp tơi cho cơng ty ghi nhận Tơi thăng tiến gắn bó với công việc Công việc mở cho nhiều hội cho thân (mở rộng mối quan hệ, bổ sung kỹ sống cho bạn, …) Tôi thật quan tâm tới hình ảnh cơng ty Tơi có hội học hỏi, phát triển thân làm công việc Công việc giúp tơi đạt mục tiêu phấn đấu Quan hệ cơng việc V.1 Tơi ln trì quan hệ tốt đẹp với đồng nghiệp V.2 Tôi làm sếp hài lịng cơng việc V.3 Tôi tạo mối quan hệ tốt với đối tác VI VI.2 Sự thỏa mãn nhân viên Nhìn chung cảm thấy thỏa mãn với công việc Hàng ngày hăng say làm việc VI.3 Ngày làm việc dường không kết thúc VI.4 Tơi tìm thấy thích thú thật cơng việc Tôi ưu tiên giải công việc bực bội công việc IV.1 IV.2 IV.3 IV.4 IV.5 IV.6 VI.1 VI.5 PHẦN II: THÔNG TIN CHUNG Xin Anh/ Chị vui lịng đánh dấu vào trống thích hợp: Giới tính Nam: ( ) Nữ: ( ) Tình trạng nhân Độc thân ( ) Đã kết ( ) 51 Tình trạng học vấn Trung học ( ) Cao đẳng ( ) Đại học ( ) Trên đại học ( ) Thu nhập < triệu ( ) 15-25 triệu ( ) 5-10 triệu ( ) 25-40 triệu ( ) 10-15 triệu ( ) Trên 40 triệu ( ) Tuổi ≤ 25: ( ) 26-34: ( ) 35-43: ( ) 44-52: ( ) 52: ( ) Loại hình cơng ty làm việc: Nhà nước: ( )Tư nhân: ( ) Liên doanh: ( )100% vốn nước ngoài: ( ) Rất cám ơn giúp đỡ chân tình Anh/ Chị Trân trọng kính chào 52 Appendix 2: English questionnaire QUESTIONNAIRE Dear Mr./ Ms., I’m Le Anh Tai I’m studying master at University of Economic Ho Chi Minh City At this time, I am conducting a research for my master thesis My topic is factors affecting job satisfaction: a comparison between state – owned and non-state – owned enterprises in Viet Nam Would you please answer these questions below? Your answer is confidential, and this research only publics the processed data during its collection If you concern for this topic, please don’t hesitate email to me at anhtai_le87@yahoo.com Many thanks for your cooperation PART 1: FACTORS AFFECTING JOB SATISFACTION To what extend to you agree these statements: Totally disagree Disagree A little bit disagree Unknown A little bit agree (1) (2) (3) (4) (5) No I I.1 I.2 I.3 Statements Salary Your level of salary relative to your experience Your level of salary bases on your abilities or the job nature Your degree of incentive Agree (6) Totally agree (7) Agreement 53 No II II.1 II.2 II.3 II.4 II.5 II.6 II.7 II.8 III III.1 III.2 III.3 III.4 III.5 III.6 Statements Work activities The actual job itself The style of supervision that your superiors use The kind of work or tasks that you are required to perform The way in which conflicts are resolved in your company The amount of participation which you are given in important decision making The way changes and innovations have implemented The amount of work you are given to whether too much or too little The degree to which your job taps the range of skills which you feel you possess Working condition The level of job security in your present job The amount of flexibility and freedom you feel you have in your job The psychological “feel” or climate that dominates your organization The degree to which you feel extended in your job The design or shape of your organization’s structure Communication and the way information flow around your organization Agreement 54 No IV IV.1 IV.2 IV.3 IV.4 IV.5 IV.6 Statements Agreement Career prospects The feeling you have about the way you and your efforts are valued The degree to which you feel “motivated” by your job Current career opportunities The extent to which you may identify with the public image or goals of your organization The degree to which you feel that you can personally develop or grow in your job The scope your job provides to help you achieve your aspirations and ambitions V Relationship V.1 The relationships you have with your colleagues V.2 The relationship you have with your boss V.3 The relationship you have with your customers VI Job satisfaction VI.1 I feel fairly satisfied with my present job VI.2 Most days I am enthusiastic about my work VI.3 Each day of work seems like it will never end VI.4 I find real enjoyment in my work VI.5 I consider my job rather unpleasant PART II: INFORMATION Gender Male: ( ) Status Single ( ) Married ( ) Female: ( ) 55 Education High school ( ) College degree ( ) Bachelor degree ( ) Post graduated ( ) Salary < million VND ( ) 15-25 million VND ( ) 5-10 million VND ( ) 25-40 million VND ( ) 10-15 million VND ( ) Upper 40 million VND ( ) Age ≤ 25: ( ) 26-34: ( ) 35-43: ( ) 44-52: ( ) Upper 52: ( ) Working company type: State owned: ( ) Private: ( ) Joint stock: ( ) Many thanks for your supporting Best regards Foreigner: ( ) 56 Appendix 3: Regression standardized residual and homoscedasticity 57