The effect of work life conflics, working environment and compensation on employee performance im vietnamese domestic banks

UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Nguyen Thi Anh Ngoc THE EFFECT OF WORKLIFE CONFLICTS, WORKING ENVIRONMENT AND COMPENSATION ON EMPLOYEE PERFORMANCE IN VIETNAMESE DOMESTIC BANKS MASTER OF BUSINESS (Honours) Ho Chi Minh City – Year 2014 UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Nguyen Thi Anh Ngoc THE EFFECT OF WORK-LIFE CONFLICTS, WORKING ENVIRONMENT AND COMPENSATION ON EMPLOYEE PERFORMANCE IN VIETNAMESE DOMESTIC BANKS ID: 21110038 MASTER OF BUSINESS (Honours) SUPERVISOR: Dr TRAN HA MINH QUAN Ho Chi Minh City – Year 2014 ACKNOWLEDGEMENT This thesis could not have been accomplished without the help, advice, support, guidance and encouragement of many people I wish to explain my sincere gratitude to my advisor, Dr Tran Ha Minh Quan, for his kind guidance, intensive support, valuable suggestions, instructions and encouragement during the time of doing my research I also would like to thank my dear colleagues, friends and classmates for their invaluable advice, help, support during the time I was doing this thesis Last but not least, I would like to express my special thanks to my man and my family for their great support, assistance and encouragement for my study and thesis fulfillment Nguyen Thi Anh Ngoc November 2014 EMPLOYEE PERFROMANCE IN VIETNAMESE DOMESTIC BANKS ii ABSTRACT Vietnam, like the rest of Asia, has entered a period of slower growth Besides the manufacturing and agricultural sectors, other industry sectors are being adversely affected by the slower growth and the Banking sector is no exception Series of banks restructure itself with human resource as an important part: layoffs the ineffectives and higher employees’ performance for the remains It is clear that employees take a key figure for banks’ performance Go along with the issue, managers should control what contribute for higher employees’ performance to enhance the competitive advantages of banks As a result, all three determinants which are work-life conflicts, working environment and compensation impact on employee performance in Vietnamese domestics banks whereas compensation has the highest impact on performance of banking staff in significantly high level Imbalance in work-life negatively impact on performance bank in turn Working environment also has positively impact on bank staff productivity but with the lowest significance The result of the study can contribute for human resource management for enhancing productivity and performance of banking staff in the future Key words: Employee performance (EP), work-life conflicts, working environment (WE), compensation (COM), Vietnamese domestic banks (VDBs) EMPLOYEE PERFROMANCE IN VIETNAMESE DOMESTIC BANKS iii LIST OF FIGURES Figure 1: Conceptual research model 18 Figure 2: Research process 20 LIST OF TABLES Table 1: Income of bank staffs by year 03 Table 2: Income and average profit of bankers in 2013 04 Table 3: Distribution system of banks in 2013 19 Table 4: Demographic information 21 Table 5: Measurement scale 22 Table 6: Reliability statistics of compensation variable 29 Table 7: Reliability statistics of COM variable with factors 30 Table 8: Reliability of Work-life conflicts variable 31 Table 9: Reliability statistics of WLC variable with factors 32 Table 10: Reliability of working environment variable 32 Table 11: Reliability of WE variable with factors 33 Table 12: Reliability statistics of Employee performance variable 33 Table 13: KMO and Barlette’s test 36 Table 14: Total Variance Explained 37 Table 15: Rotated Component Matrix 38 Table 16: KMO and Barlette’s test & Total Variance Explained of second EFA .38 Table 17: KMO and Barlette’s test & Total Variance Explained .38 Table 11: Coefficient 41 Table 19: ANOVA 41 Table 20: Model Summary 42 EMPLOYEE PERFROMANCE IN VIETNAMESE DOMESTIC BANKS LIST OF ABBREVIATIONS EP Employee Performance COM Compensation WE Working Environment WLC Work-Life Conflicts VSBs Vietnamese Domestics Banks HRM Human Resource Management SOCBs State-Owned Commercial Banks JSCBs Joint-Stock Commercial Banks S&D Sales and Distributors iv EMPLOYEE PERFROMANCE IN VIETNAMESE DOMESTIC BANKS ACKNOWLEDGEMENT ABSTRACT LIST OF FIGURES LIST OF TABLES LIST OF ABBREVIATIONS CHAPTER INTRODUCTION 1.1 Research background 1.2 Research objectives and questions 1.3 Scope of the research 1.4 Conclusion CHAPTER LITERATURE REVIEW, HYPOTHESIS AND RESEARCH MODEL 2.1 Introduction 2.2 Theoretical review 2.2.1 Employee perfo 2.2.2 Work-life Confl 2.2.3 Working Enviro 2.2.4 Compensation 2.3 Hypothesis development 2.3.1 Work-life confli 2.3.2 Working Enviro 2.3.3 Compensation a 2.4 Research model 2.5 Conclusion EMPLOYEE PERFROMANCE IN VIETNAMESE DOMESTIC BANKS Chapter METHODOLOGY 3.1 Introduction 3.2 Research design 3.3 Research sample size and techniques, sample discription 3.3.1 Sa 3.3.2 Sa 3.3.3 Sa 3.4 Measurement 3.5 Data analysis methods 3.5.1 Te 3.5.2 E 3.5.3 M 3.6 Conclusion Chapter RESULTS 4.1 Brief description of subjects 4.3 Patterns of data for each research question 4.3.1 Pr 4.3.2 E 4.3.3 R 4.4 Conclusion Chapter CONCLUSIONS AND IMPLICATIONS 5.1 Discussions EMPLOYEE PERFROMANCE IN VIETNAMESE DOMESTIC BANKS 5.2 vii Managerial implications .44 5.3 Limitations and recommend for further research .47 5.4 Conclusions 47 REFERENCES 49 APPENDIX A: SURVEY QUESTIONAIRE 54 ENGLISH SCALE 61 APPENDIX B – DATA ANALYSIS RESULTS 63 Factor Analysis 63 Regression 74 EMP OYEE PE RFROMA NCE IN VIETNAM ESE DOM ESTIC BANKS Appen dix B: Tabl e 3: FA - KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequ acy Bartlett's Test of Spheri city Extraction Method: Analys s EMPLOYEE PERFROMANCE IN VIETNAMESE DOMESTIC BANKS Appendix B: Table 6: FA - Component COM1 COM2 COM3 COM4 COM6 WLC2 WLC3 WLC4 WLC5 WLC6 WE1 WE3 WE4 WE5 Extraction Method: Principal Component Analysis a components extracted EMPLOYEE PERFROMANCE IN VIETNAMESE DOMESTIC BANKS Appendix B: Table 6: FA - Rotated Component Matrixa Component COM1 COM2 COM3 COM4 COM6 WLC2 WLC3 WLC4 WLC5 WLC6 WE1 WE3 WE4 WE5 Extraction Method: Principal Component Analysis Rotation Method: Varimax with Kaiser Normalization a Rotation converged in iterations EMPLOYEE PERFROMANCE IN VIETNAMESE DOMESTIC BANKS Appendix B: Table 7: FA - Component Compon ent Extraction Method: Principal Component Analysis Rotation Method: Varimax with Kaiser Normalization Appendix B: Table 8: FA - Rotated Component Matrixa Component COM1 COM2 COM3 COM4 COM6 WLC2 WLC3 WLC4 WLC5 WLC6 WE1 EMPLOYEE PERFROMANCE IN VIETNAMESE DOMESTIC BANKS WE3 733 WE4 847 WE5 828 Extraction Method: Principal Component Analysis Rotation Method: Varimax with Kaiser Normalization a Rotation converged in iterations Appendix B: Table 9: FA - Component Transformation Matrix Compon ent Extraction Method: Principal Component Analysis Rotation Method: Varimax with Kaiser Normalization Appendix B: Table 10: FA - Component Score Coefficient Matrix COM1 COM2 COM3 COM4 COM6 WLC2 EMPLOYEE PERFROMANCE IN VIETNAMESE DOMESTIC BANKS WLC3 WLC4 WLC5 WLC6 WE1 WE3 WE4 WE5 Extraction Rotation Method: Varimax with Kaiser Normalization Component Scores Appendix B: Table 11: FA - Descriptive Statistics EP1 EP2 EP3 Appendix B: Table 12: FA - Correlation Matrix Correlation Method: Principal Component An EMPLOYEE PERFROMANCE IN VIETNAMESE DOMESTIC BANKS Kaiser-Meyer-Olkin Measure of Sampling Adequacy Bartlett's Test of Sphericity Appendix B: Table 14: FA Communalities EP1 EP2 EP3 Extraction Method: Principal Component Analysis Compon ent Extraction Method: Principal Component Analysis EMP OYEE PE RFROMA NCE IN VIETNAM ESE DOM ESTIC BANKS Appen EP1 EP2 EP3 Extraction Method: P rincipal Com p a co mponents extr acted Ap pendix B: T able EP1 EP2 EP3 Extraction Method: P rincipal Com ponent Analysis Rotation Method: Varimax with K iser Normaliz ation Component Scores EMPLOYEE PERFROMANCE IN VIETNAMESE DOMESTIC BANKS Appendix B: Table 18: Component Score Co Component EP1 383 EP2 413 EP3 441 Extraction Method: Principal Component Analysis Rotation Method: Varimax with Kaiser Normalization Component Scores Appendix B: Table 19: Compon ent Score Covariance Matrix Compon ent 1 1.000 Extraction Method: Principal Component Analysis Rotation Method: Varimax with Kaiser Normalization Component Scores Regression Appendix B: Table 20 - Descriptive Statistics employees' performance compensation work-life conflicts working environment Appendix B: Table 21 - Correlations Pearson Correlation EMPLOYEE PERFROMANCE IN VIETNAMESE DOMESTIC BANKS Sig (1-tailed) N Appendix B: Table 22 - Variables Entered/Removedb Variables Model Entered working environment, work-life conflicts, compensation a a All requested variables entered b Dependent Variable: employees' performance Appendix B: Table 23 - Coefficient Correlations a Model Correlations EMPLOYEE PERFROMANCE IN VIETNAMESE DOMESTIC BANKS Covariances a Dependent Variable: employees' performance Dimensi Model on a Dependent Variable: employees' performance EMPLOYEE PERFROMANCE IN VIETNAMESE DOMESTIC BANKS Predicted Value Residual Std Predicted Value Std Residual a Dependent Variable: employees' performance ... conflicts on employee performance Hypotheses H2: There is a positive impact of working environment on employee performance Hypotheses H3: There is a positive impact of compensations on employee performance. .. positive impact of working environment on employee performance 2.3.3 Compensation and employees’ performance Compensation is the major element that affects the employee performance If employees... questions of the thesis are raised as following questions: EMPLOYEE PERFROMANCE IN VIETNAMESE DOMESTIC BANKS - How work- life conflicts, working environment, compensation affect on employees’ performance