The impact of human resources management to employees job satisfaction within interior design and construction industry in vietnam , luận văn thạc sĩ

MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HOCHIMINH CITY THE IMPACT OF HUMAN RESOURCES MANAGEMENT TO EMPLOYEE’S JOB SATISFACTION WITHIN INTERIOR DESIGN AND CONSTRUCTION INDUSTRY IN VIETNAM MASTER OF BUSINESS ADMINISTRATION THESIS Major: Business Administration Major Code: 60.34.05 Supervisor: DR TRAN HA MINH QUAN Student: HOANG TU NGOC Ho Chi Minh City – 2012 COMMITMENT My name is Hoang Tu Ngoc, author of this MBA thesis I would guarantee that this is my own research and has not been published in any previous studies I am fully responsible for above commitment Student Hoang Tu Ngoc Major: Business Administration Major Code: 60.34.05 ACKNOWLEDGEMENT I would like to express my heartfelt gratitude and deepest appreciation to my research supervisor, Dr Tran Ha Minh Quan for his intensive support, valuable suggestions, guidance, and encouragement during the course of my study I would like to thank many of my colleagues at TTT and friends from other companies in interior design and construction area who helped me during the data collection stage I would like to express my sincere gratitude to all of my tutors at Faculty of Business Administration and Postgraduate Faculty, University of Economics Ho Chi Minh City for their teaching and guidance during my MBA course I would like to specially express my thanks to all of my classmates, my friends from for their support and encouragement Hoang Tu Ngoc Ho Chi Minh City, May 2012 ABSTRACT In development of business, human resources management is understood as employees who are working in company and they play an important part of organization It is safe to say that the impact of human resource management is a crucial influence on the job satisfaction of employees and thus affects their performance during working period The research on these effects is essential for every business Based on the model study of Petrescu & Simmons (2008) regarding the impact of human resources management to the job satisfaction of employees, the aim of this research is to explore the practical impact of human resource management to the job satisfaction of employees in interior designer and construction industry in Vietnam Following the result of this research, companies in industry are able to improve the effectiveness of the human resources management Keywords: human resource management, employee’s job satisfaction, teamwork, supervision, recruitment and selection, training and learning, employee involvement, payment LIST OF FIGURES: Figure 1: The matrix Diagram of the organizational structure of TTT Corporation – page Figure 2: The difference between Personnel Management and Human Resource management – page 12 Figure 3: One other point of comparison between Personnel Management and Human Resource Management – page 13 Figure 4: The impact of human resource management to the job satisfaction of employees in interior design and construction industry – page 21 Figure 5: Stages of research – page 24 Contents CHAPTER | INTRODUCTION 1.1 Reason for choosing the research 1.2 Interior design and construction industry in Vietnam within th 1.2.1 General information 1.2.2 Selection of featured compan 1.2.3 Organizational chart in interio 1.2.4 The work of human resources 1.2.5 The particularities of the inter Human resources management 1.3 Research purposes 1.4 The scope and subject of study 1.4.1 Scope of study 1.4.2 Subjects of study 1.5 The significance of research 1.6 Research Methods 1.7 Research structure CHAPTER | LITERATURE REVIEW 2.1 The theory of human resources 2.2 The theory of human resource management 2.2.1 Definition 2.2.2 The difference between Perso 2.2.3 Characteristic of human resou 2.2.4 The model of human resource 2.3 Analysis on employee’s job satisfaction 2.4 Research model 2.5 Summary of Chapter CHAPTER | METHODOLOGY 3.1 Research Methods 3.1.1 Preliminary study 3.1.2 Formal research 3.2 Method of data processing 3.2.1 Inspection by the scale factor 3.2.2 Exploratory factor analysis E 3.2.3 Regression analysis and ANO 3.3 Methodology 3.3.1 Surveyor 3.3.2 Method of surveying 3.3.3 Size and method of sample ch 3.4 Scale adjustment 3.4.1 Process of scale adjustment 3.4.2 Qualitative research 3.4.3 Quantitative research 3.4.4 Scale of human resource man 3.4.5 Scale for job satisfaction of e 3.5 Summary of Chapter CHAPTER | RESULT OF RESEARCH 4.1 Sample description: 4.2 Preliminary evaluation scale with Cronbach Alpha 4.2.1 Testing the reliability of the in 4.2.2 Testing the reliability of the d 4.3 Scale testing by using Exploratory Factor Analysis (EFA) 4.3.1 Factor analysis for Independe 4.3.2 Factor analysis Dependent va 4.4 Regression Analysis 4.5 The results of comparison of human resources management b study components 4.5.1 By Gender 4.5.2 By Age 4.5.3 By Years of experience 4.5.4 By Education level 4.6 Results 4.7 Summary of chapter CHAPTER | CONCLUSION AND SUGGESTION 5.1 Introduction 5.2 The significance of the study 5.3 Proposal for solution of human resource management practic 5.3.1 Solution for Payment 5.3.2 Solution for Training 5.3.3 Solution for Supervision MBA Thesis – Hoang Tu Ngoc 5.4 Limitations and Recommendation for further research 5.4.1 Limitations 5.4.2 Recommendation for further REFERENCES 6.1 Vietnamese sources 6.2 English sources APPENDIX | CONTENT OF GROUP DISCUSSION APPENDIX | QUESTIONARES APPENDIX | VARIABLES AND SYMBOLS 10 APPENDIX 11 APPENDIX 12 APPENDIX 13 APPENDIX MBA Thesis – Hoang Tu Ngoc 1 CHAPTER | INTRODUCTION 1.1 Reason for choosing the research Human resources management has always been considered as one of the most important department amongst resources of a company The quality of human resources plays a key role to the success or failure of a business, particularly in the context of the open economy in Vietnam and global competition nowadays During last consecutive years, Vietnam’s economy has been growing with a rapid pace and sustainable development In the late 1980s, when the renovation policies were adopted, Vietnam market became attractive for foreign trade and investment, and private economic activity were legal (Glewwe, 2002) Due to establishment of new companies in Vietnam, demand for office space develops increasingly significant in Ho Chi Minh – the biggest city Following this growth, interior design (1) and construction companies were born to provide the high quality services in fitou t works (2) Working in human resource management of this industry for years, I would apply my experience into a formal research in order to prepare depth knowledge for further development Interior design and construction is a narrow specialization of construction area Scope of services includes the final stage to complete the construction tasks inside a building There are two type of company which provides this service (a) One is specialized in designing only (b) Another one provides fully stages from interior architectural design to build and complete fitout works This research wil l study on type (b) – a larger organization – which provides and focuses on high value contracts such as high class office, hotel or resorts from stars standard In order to work in this industry, employees are required to have high level of skills in both aesthetic and technical However, it can be seen the lacking of high education of interior design and construction field in Vietnam, therefore employees need to explore their experience through practical working In many cases, when company, or human resources management, can provide employees chances to enhance their experiences and MBA Thesis – Hoang Tu Ngoc performances in job, this matter has positive impact on employee’s job satisfaction It can be seen that human resources management is considered as a connection between employees and company and in charge of employee’s job satisfaction Without a wellorganized system, most of interior d esign and construction companies are only running to meet the immediate needs of market, instead of working with a stable development In fact, the practices of human resources management focus on solving those daily tasks rather than planning for a longt erm strategy That leads to the need of preparing a specific research on human resource management, which based on an appropriate methodology Starting with the research question “The impact of human resource management to the employee’s job satisfaction within interior design and construction industry in Vietnam”, this study attempts to inform and clarify on what and how factors could create satisfaction in current job for employers through the tool of human resource management 1.2 Interior design and construction industry in Vietnam within the research topic 1.2.1 General information As discussed above, this research focuses on interior design and construction industry in Vietnam within large project group only such as highclass office (3) and hotel, resort, which are invested by large companies and organizations This group has the highest fund in the market segment nowadays and is known as a potential market for interior design and construction companies The scope of services provides: architecture interior design, mechanical and electrical (M&E) engineering building services, supply and installation of furniture, Fitout works It can be said this is a difficult area for companies that want to provide these services because it requires a huge investments, especially furniture manufacturing Also next struggle is to have the high quality of human resources in design works, project management, and construction management and so on This research will select, introduce, and analyze a group of leading companies that represent for Vietnam MBA Thesis – Hoang Tu Ngoc 74 Item Statistics tra1 tra2 tra3 tra4 tra5 tra6 Mean 20.0049 Table 4.6 Scale: Payment Cronbach's Alpha N of Items 839 Case Processing Summary Cases a Listwise deletion based on all variables in the procedure Item Statistics Mean Std Deviation N MBA Thesis – Hoang Tu Ngoc 75 pay1 pay2 pay3 Scale Statistics Mean Table 4.7 Scale: Employee’s job satisfaction Cronbach's Alpha N of Items 896 Case Processing Summary Cases a Listwise deletion based on all variables in the procedure Item Statistics sat1 sat2 sat3 sat4 sat5 MBA Thesis – Hoang Tu Ngoc 76 Scale Statistics Mean MBA Thesis – Hoang Tu Ngoc 77 11 APPENDIX | EXPLORATORY FACTOR ANALYSIS (EFA) Table 5.1.Scale: Teamwork KMO and Bartlett's Test KaiserMeyerOlkin Measure of Sampling Adequacy Bartlett's Test of Sphericity Communalities tw1 tw2 tw3 sup1 sup2 sup3 ei1 ei2 ei3 sel1 sel2 sel3 sel4 sel5 MBA Thesis – Hoang Tu Ngoc 78 tra1 tra2 tra3 tra4 tra5 tra6 pay1 pay2 pay3 Extraction Method: Principal Component Analysis Total Variance Explained Compon ent MBA Thesis – Hoang Tu Ngoc 79 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Extraction Method: Principal Component Analysis tra5 ei3 sup2 pay1 sel2 ei2 MBA Thesis – Hoang Tu Ngoc 80 sup3 tra1 pay2 tra4 tra6 pay3 sel5 tra2 sel4 ei1 tra3 sup1 sel1 sel3 tw2 tw1 tw3 Extraction Method: Principal Component Analysis a components extracted Rotated Component Matrix (a) Component tra6 872 tra1 864 tra4 669 tra5 649 tra3 639 tra2 624 MBA Thesis – Hoang Tu Ngoc 81 sel1 sel4 sel3 sel2 sel5 sup3 sup2 sup1 ei1 ei3 ei2 pay1 pay3 pay2 tw1 tw3 tw2 Extraction Method: Principal Component Analysis Rotation Method: Varimax with Kaiser Normalization a Rotation converged in iterations Component Transformation Matrix Component MBA Thesis – Hoang Tu Ngoc 82 Extraction Method: Principal Component Analysis Rotation Method: Varimax with Kaiser Normalization Table 5.1.Scale: Employee’s job satisfaction KaiserMeyerOlkin Measure of Sampling Adequacy Bartlett's Test of Sphericity sat1 sat2 sat3 sat4 sat5 Extraction Method: Principal Component Analysis Total Variance Explained Component MBA Thesis – Hoang Tu Ngoc Extraction Method: Principal Component Analysis Compon sat5 sat4 sat1 sat3 sat2 Extraction Method: Principal Component Analysis a components extracted Rotated Component Matrix(a) Dummy category a Only one component was extracted The solution cannot be rotated MBA Thesis – Hoang Tu Ngoc 84 12 APPENDIX | LINEAR REGRESSION ANALYSIS Variables Entered/Removed(b) Model M_EI, M_TW, M_SUP, M_SEL, M_TRA, M_PAY(a) a All requested variables entered b Dependent Variable: M_SAT Model R 683(a) a Predictors: (Constant), M_EI, M_TW, M_SUP, M_SEL, M_TRA, M_PAY Model Regression Residual Total a Predictors: (Constant), M_EI, M_TW, M_SUP, M_SEL, M_TRA, M_PAY b Dependent Variable: M_SAT Model (Constant) MBA Thesis – Hoang Tu Ngoc 85 M_TW M_SUP M_SEL M_TRA M_PAY M_EI a Dependent Variable: M_SAT Co linearity Diagnostics(a) Mod Dimensi el on 1 a Dependent Variable: M_SAT MBA Thesis – Hoang Tu Ngoc 86 13 APPENDIX | ABBREVIATION, TERMINOLOGYAND LIST OF COMPANIES (1) Interior design is a discipline that looks after designing all of the interiors of a space This can include things like flooring, windows, doors, walls, lighting, furniture, and miscellaneous design pieces The goal of interior design is generally to make a space that is both comfortable and aesthetically pleasing, often catered specifically to the needs and likes of the person hiring the interior designer (2) Fitout works refers to the process or action of in stalling building infill (3) Highclass office, or first class, or superior is o f very good quality of working space (4) AA Corporation Website: www.aacorporation.com Head Office: 15 Nguyen Duy Hieu Street, Thao Dien Ward, District 2, HCMC Tel: (84 8) 3744 2728 Fax: (84.8) 3744 2729 (5) TTT Corporation Website: www.tttcompany.com Head Office: 36 Ly Tu Trong, Ben Nghe Ward, District 1, HCMC, Vietnam Tel: (84 8) 3829 5556 Fax: (84 8) 3829 7232 (6) CBRE (CB Richard Ellis) is the world’s largest commercial real estate services firm, offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting Website: www.cbrevietnam.com MBA Thesis – Hoang Tu Ngoc 87 (7) Happy Land Website: www.happylanddc.com.vn Home office: 16 Pasteur, District 1, HCMC, Vietnam (8) Saigon Xanh Website: www.saigonxanh.com Home office: 193/25 Nam Ky Khoi Nghia, Ward 7, District 3, HCMC, Vietnam (9) AAH Website: www.aahcorporation.com Home office: 178D Hai Ba Trung, Da Kao ward, District 1, HCMC, Vietnam (10) SPSS (Statistical Package for the Social Sciences) software developed by IBM, is predictive analytics software, encapsulates advanced mathematical and statistical expertise to extract predictive knowledge that when deployed into existing processes makes them adaptive to improve outcomes MBA Thesis – Hoang Tu Ngoc ... practical impact of human resource management to the job satisfaction of employees in interior designer and construction industry in Vietnam Following the result of this research, companies in industry. .. Starting with the research question ? ?The impact of human resource management to the employee’s job satisfaction within interior design and construction industry in Vietnam? ? ?, this study attempts to. .. according to working time, to qualifications and to the job results Income of employees includes wages, basic salary, bonus, and allowances Today, in addition to salaries, material elements, they