Nâng cao lòng trung thành của nhân viên tổng công ty viễn thông mobifone

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - NGUYỄN TUẤN HƯNG IMPROVING EMPLOYEE'S LOYALTY AT MOBIFONE TELECOMMUNICATIONS CORPORATION NÂNG CAO LÒNG TRUNG THÀNH CỦA NHÂN VIÊN TỔNG CÔNG TY VIỄN THÔNG MOBIFONE LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH HÀ NỘI - 2019 ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - NGUYỄN TUẤN HƯNG IMPROVING EMPLOYEE'S LOYALTY AT MOBIFONE TELECOMMUNICATIONS CORPORATION NÂNG CAO LÒNG TRUNG THÀNH CỦA NHÂN VIÊN TỔNG CÔNG TY VIỄN THÔNG MOBIFONE Chuyên ngành: Quản trị kinh doanh Mã số: 60 34 01 02 LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH NGƯỜI HƯỚNG DẪN KHOA HỌC: PGS.TS NGUYỄN NGỌC THẮNG HÀ NỘI - 2019 CAMPAIGNS I pledge that this is my own research The content referenced and used the documents, information posted on the works, journals and reports are fully annotated in the catalog reference of thesis Author i ACKNOWLEDGEMENTS I would like to express my deepest gratitude to all of the following people for helping me complete my thesis Firstly, I would like to express my deepest gratitude to all of the lecturers from the Department of Business Administration - HSB for providing me with research methods and professional knowledge during the course, especially the active and creative research skills Secondly, I would like to express my special thanks to family, friends, co-workers and classmates for giving favorable conditions for my study and my master thesis completion at Hanoi National University (HSB) My appreciation also goes to the teachers in the thesis review committee for giving me valuable ideas during my thesis completion process My profound gratitude is also conveyed to Assoc Prof Dr Nguyen Ngoc Thang for his helpful assistance and guidance This thesis could have never been completed without his enthusiastic counsel and support Despite the efforts during the research period, there are still many limitations in the thesis I would hope to receive valuable comments from the teachers and co-workers to make this essay more complete Thank you very much./ ii TABLE OF CONTENTS CAMPAIGNS i ACKNOWLEDGEMENTS ii TABLE OF CONTENTS .iii INTRODUCTION CHAPTER 1: THEORETICAL FRAMEWORK 1.1 Conceptual framework 1.1.1 Defining employee loyalty 1.1.2 Measuring employee loyalty 1.2 Outcomes of employee loyalty .10 1.2.1 Individual outcomes 11 1.2.2 Group outcomes .12 1.2.3 Organizational outcomes 12 1.3 Antecedents of employee loyalty 13 1.3.1 Individual characteristics 14 1.3.2 Group characteristics 18 1.3.3 Organization characteristics .19 1.4 Proposed theoretical model 22 CHAPTER METHODOLOGY .24 2.1 Research process 24 3.2 Research method 27 2.2.1 Survey method 29 2.2.2 Sampling method 29 2.3 Data processing method: 30 CHAPTER 3: CURRENT STATUS OF EMPLOYEE LOYALTY 32 3.1 About MobiFone Corporation 32 3.1.1 Formation process, functions, tasks and organization of MobiFone 32 iii 3.1.2 Functions and tasks of the units are as follows: .33 3.2 Situation of human resources at MobiFone Telecom 35 3.2.1 Workforce based on educational level 35 3.2.2 Workforce by Functions 37 3.2.3 Workforce by region 38 3.2.4 Workforce by age groups 38 3.2.5 Labor force by productivity 39 3.2.6 Workforce by position 40 3.3 Current status of employee loyalty .41 3.3.1 Turnover rate 41 3.4 Status of enhancing loyalty 44 3.4.1 Improving loyalty by recognition .44 3.4.2 Improving loyalty by salary .44 3.4.3 Improving loyalty by working environment 44 3.4.4 Improving loyalty by training and career advancement opportunity 45 3.4.5 Improving loyalty by training and career advancement opportunity 46 3.4.6 Overall assessment 46 3.5 Results of empirical survey 47 3.4.1 Characteristics of survey sample 47 3.4.2 Assessment of employee loyalty at MobiFone 52 3.5 Employees evaluation of factor affecting loyalty .56 3.5.1 Employee evaluation of work related factors 57 CHAPTER 4: SOLUTION AND RECOMMENDATION 67 4.1 Summary of research findings 67 4.2 Some solutions to improve employee loyalty at MobiFone 68 4.2.1 Redesign the recognition and reward system 68 4.2.2 Improving loyalty via working condition 69 4.2.3 Improving loyalty via promotion and development 69 iv 4.2.4 Improving loyalty through income 70 4.2.5 Improving loyalty through working environment 71 4.2.6 Improving loyalty through leadership 72 4.3 Recommendations 73 4.3.1 Recommendations for academics 73 4.3.2 Recommendations for practitioners 73 4.4 Limitations of the research 74 4.5 Suggestions for further studies 75 REFERENCE 76 Tiếng Việt .76 APPENDIX 79 v LIST OF TABLES Table 3.1: Mobifone Headcounts by Educational level 36 Table 3.2: MobiFone Headcounts by function 37 Table 3.3: MobiFone Headcounts by Area 38 Table 3.4: Employee productivity 40 Table 3.5: Employee by position 41 Table 3.6: Employee Turnover rate 2015-2017 42 Table 3.7: Characteristics of the sample by gender .47 Table 3.8: Characteristics of the sample by age group 48 Table 3.9: Characteristics of the sample by educational level 48 Table 3.10: Characteristics of the sample by year of service 49 Table 3.11: Characteristics of the sample by area 49 Table 3.13: Overall loyalty of employees at MobiFone 52 Table 3.14: Mean score for loyalty by gender 55 Table 3.15: ANOVA result for gender 55 Table 3.16 Evaluation of relative importance of factors affecting loyalty 56 Table 3.17: Assessment of working condition 57 Table 3.18: Assessment of nature of the job 58 Table 3.19: Assessment of promotion opportunities .59 Table 3.20: Assessment of salary 60 Table 3.21: Assessment of working environment 61 Table 3.22: Assessment of relationship with leaders 62 Table 3.23: Assessment of recognition 63 Table 3.24: .64 Table 3.25: Influence of factors on employees loyalty 65 vi LIST OF PICTURES Figure 1.1: Proposed theoretical model 23 Figure 2.1: Research process 24 Figure 2.2: Analytical model 31 Figure 3.1: Workforce by age groups 39 Figure 3.2: Turnover by age 42 Figure 3.3: Turnover by year of service 43 Figure 3.4: Turnover by position 44 vii INTRODUCTION Research Rationale Effective human resource management is very critical in the highly competitive business world of today And the key issue in human resource management that can help increase productivity is employee satisfaction as Syptak, Marsland, and Ulmer (1999) pointed out that employee satisfaction and retention have always been important issues Employees who are satisfied always show their greater loyalty to an organization Employees‘ loyalty is not just a virtue; it is considered to be the fuel that drives the financial success of all company This can be brought from enterprises‘ positive actions when they understood ―what their employees require‖ However, employees‘ requirement and enterprises‘ thinks always have a rather far according to almost all of researches (Ken Kovach, 1980; Valerie Wilson, 1988; Bob Nelson, 1991) Now, it is not hard to ensure overhead costs are kept as low as possible in the highly competitive and technologically advanced society Studies showed that, one important way to accomplish this feat is to retain those employees that have already been trained to be skillful employees and be proficient in their job responsibilities The cost of replacing an employee in today's market is roughly one-half of that person's annual salary This figure does not include the loss of intellectual capital that results from each departure In the industry of telecommunication services, because of services‘ characteristics as intangibility, inseparability of productions and consumers, therefore its employees are met special standards and satisfied personal incentive than other fields Thus, creating motivation, encouraging employees‘ loyalty and keeping them for a long time is meaningful way in management for more business efficiency, reduce the risks in training and transferring of skills and knowledge organization While some of the individual characteristics in this study were individual traits which cannot be easily changed, the other is perceptions which can be influenced by management Also, organizational practices have important influence on employee loyalty, which is the focus for organizational management and policy makers 4.2 Some solutions to improve employee loyalty at MobiFone 4.2.1 Redesign the recognition and reward system MobiFone should focus on evaluating the current recognition and reward system As indicated in the previous chapter, recognition from company of the employee‘s contributions is very important It not only allows the employees to feel their importance to the organization but also shows that the company appreciates the employee‘s contributions Therefore, the recognition and reward system should improve the effectiveness of the management system In order to so, first the company needs to rebuild recognition scheme with clear and obvious criteria, transparent evaluation procedures and public announcement of rewards This helps the employees to focus their efforts on the areas that contribute to the organization‘s strategy Furthermore, it would motivate the employees‘ effort by motivating them Beside, recognition and rewards must be fair and equitable and timely Fair and equitable evaluation of employees‘ contribution will increase employee‘s respect towards their leaders Recognition and rewards must also combine financial and non-financial rewards As reported by the employees, current reward at MobiFone was mainly non-financial with almost no financial components In addition, the combination of departments with the commendation committee to evaluate the performance and contribution of employees in the corporation is recommended Thereby, there are objective assessments to record employee contributions to the corporation In addition, the recognition is reflected 68 in the concerns of the higher level Therefore, it is important to make recommendations to the superiors on the assessment of employee contributions 4.2.2 Improving loyalty via working condition Although working condition at MobiFone was judged quite high by the employees as the second highest factor Leaders need to improve and create a good working environment for employees of the corporation They should also more extracurricular activities, programs for community activities, for businesses with the participation of many members in the company In addition, the leadership should create more favorable conditions in activities related to the operation of the enterprise, which must be carried out by the staff such as business trips, working trips Furthermore, the company may revise the working time regime, design flexible working hours to meet the requirements of employees, especially the female staff Flexible working time regulation will save time traveling, especially during peak hours Along with that, advances in science and technology can enhance the ability to work at home to reduce the cost of the business 4.2.3 Improving loyalty via promotion and development Getting promoted is one of the employee‘s righteous wishes; it directs employee‘s direction, consistency and intensity of efforts As a matter of fact, if the employees could not get promotion after lengthy year of service and contribution, they might have to quit the job to look for new opportunities According to the survey results, promotion was ranked lowest by the respondents with an average score of 2.15 The employees at MobiFone did not believe that they have equal promotion opportunities and that the one who got promoted may not be the ones who deserved Therefore, the company needs to create opportunities for promotion in the workplace It may be difficult for high-level positions to perform this task, but mid-level positions are well suited for employees who have the capacity 69 but still too young, besides, the competition among the staff in the work position is also necessary to enhance their loyalty The company needs staff training policies and promotion policies that match the capabilities of employees Training and promotion policies are important to maintain their loyalty and to improve their performance in the organization Specifically, in this study, the company needs to support employees by providing training courses every year The company needs to clarify their training policies to employees, helping them understand the company's interest in training within the company In addition, companies need to find out what their training needs are, what they need to know, where their weaknesses are, and then have appropriate training policies to reduce costs of training as well as reduce the wastage of learning time of employees Next, the company needs to have appropriate policies to help the trained worker have the right job as well as the right job position with his / her expertise Recommend to the administrative department should coordinate with the department to accurately assess the need for training and learning of staff interns group Thereby, there are annual plans to plan training and training for employees to improve their performance 4.2.4 Improving loyalty through income For employees, income is not all but always the most important factor The same type of job and work environment is the same but if their income is too low compared to colleagues in other businesses it will be very difficult to retain them if they have the opportunity to change The data showed that the employees at MobiFone were not happy because their salary levels were not in par with those at other companies in the same industry In order to ensure that salary levels at MobiFone were competitive among the same industry, 70 MobiFone needs to carry out salary survey and redesign their salary system based on intensive job evaluation Moreover, the company must have a reasonable salary policy in the context of economic hardship, and income must be determined on the basis of the employee's contribution to motivation and loyalty In addition, the company should regularly inquire about the life of employees in the company to support policies as well as salary policy consistent with the situation For the accounting-finance department, they need to reconsider all inter-related expenses relative to salary and income of employees Collaborate with related departments to re-evaluate the policy of wages, income more accurately and more effectively based on the capacity of the staff 4.2.5 Improving loyalty through working environment Working environment is extremely important for managers and employees Many of the employees left their old jobs because there was too much "stress" in dealing with co-workers In addition, there are many companies that manage employees in a similar way to the management of the prison, which makes employees very scared It is often the duty of employees (especially female employees) to work overtime or work away from home, which is a concern for many employees, or a "challenging" job Management makes employees just quit The company need to establish effective working environment and appropriate income policy Good working environment will bring good effect in work, so the company needs to create comfort in your department; the exchange of information needs to be done as freely and happily as possible As indicated by the data, the environment was the factor that received highest ranking by the employees MobiFone could continue to build trust and cooperation among members of the team and between teams and departments with variety of team building or job rotation programs 71 Establish relationships among peers and also relationships with superiors The relationship between employees in the company or between employees and superiors is very important in order to create a high level of solidarity in the implementation of the work To this, businesses first need to create a friendly environment in the workplace, which is set up based on group activities, which will be a reasonable choice for extra-curricular activities Thus, the policy of creating favorable conditions for employees to work on a regular basis must be implemented regularly and consistently In addition, the company must build the playing field for employees in the company during Tet holiday Moreover, the resolution of the conflict in the company should be focused right from the smallest conflict And this requires the direct leader to have the art of dealing with these situations 4.2.6 Improving loyalty through leadership The relationship between management and employees or between employees plays an important role in attracting, motivating and retaining workers Employees need recognition, respect and support from their supervisors for internal and external issues The superiors need to understand their subordinates so they know their personality, strengths and weaknesses, and pay more attention to employees in their own departments and the company in general In addition, superiors should have fair assessments of employees, no bias, and superiors should respect the feedback as well as feedback from employees And last but not least is the role of every individual in the company rather than just the collective purpose Although at MobiFone, leadership was quite highly evaluated as compared to other factors, there were areas that can be improved For example, leaders at MobiFone should show their commitment and engagement to the job and the organization Moreover, they should provide 72 timely and appropriate support for the employees when needed For leaders of departments directly responsible for staff management, the author suggests that they should be active in building the delegation, build a scientific and effective work environment Direct leaders must demonstrate his role properly, need to demonstrate his capacity in a skillful way, and at the same time make employees have motivation and responsibility in the work 4.3 Recommendations 4.3.1 Recommendations for academics The research findings have some recommendations for academics First, the results of in-depth interview support the view that employee loyalty is different from organizational commitment Second, because employee loyalty is difficult to measure, it is necessary to use proxy to measure loyalty The validity of the current research provides support for the use of loyalty related behaviors as proxy for employee loyalty The results also provided support for the dimensions of loyalty characterized behavior Finally, the research suggested that both individual and organizational characteristics can influence employee loyalty in significant ways In other way, loyalty can be influenced and directed by altering the perception of employees and by a certain set of organizational practices 4.3.2 Recommendations for practitioners Practitioners and manager can improve employee loyalty by focusing on the policies and practices that may enhance the feeling of pride towards the organization such as recognition and ethical code of conduct They can also improve employee long-term commitment by implementing internal promotion policy, preference of internal candidate for promotion and provide training for future promotional opportunities Another way to improve loyalty can be done by assignment of work based on consideration of the job holder‘s 73 background qualification, preference and significance of the work On the other hand, providing good benefit package does not guarantee employee loyalty but it would be important to retain employees and keep them away from attractive package offers from other companies Management can also influence the perception of employee about labor market and employment opportunity by providing updated information and highlighting the advantages of working for the current organizations As another mean, effort should also be spent to build up organizational image as an employer brand which may improve the employees‘ feeling of pride when they work for the organization A high quality relationship with leader can be maintained between managers and key employees in order to enhance the feeling of loyalty towards the organizations Individual difference variables have been found to link with the employees‘ attitudes and behaviors at work In this study, level of need for affiliation has been found to affect loyalty However, Vietnamese organization usually pays little attention on such information In the near future, Vietnamese companies should carry out personality and personal traits survey questionnaires on job candidates at the time of recruitment to collect such information 4.4 Limitations of the research The first limitation of the research is about sample selection The main survey was conducted in just one company which might not represent the overall Vietnamese employees The second limitation of the research is about its cross-sectional design Because employee loyalty can change overtime, longitudinal study would be better in tracking the behaviors of loyal employees 74 The third limitation of the research is due to is self-reported questionnaires Some variables like human resource practices by the organization should be answered by the head of human resource department or by senior management to ensure accuracy and free-of-bias 4.5 Suggestions for further studies Future study in this topic can be extended to longitudinal research design which can help understand the changes in the behavior of loyal employees Besides, group characteristic variables were not included in this research and can be explored in future studies Finally, more research attempts are needed to explore reliable proxy of loyalty 75 REFERENCE Tiếng Việt Nguyễn Thị Thu Hằng Nguyễn Khánh Trang (2013), Các yếu tố ảnh hưởng đến trung thành hài lòng giảng viên viên chức trường cao đẳng, đại học Lâm Đồng, Phát triển KH&KT, 16 (3) Nguyễn Văn Anh (2011), Các yếu tố ảnh hưởng đến hài lòng giảng viên trường ĐH Đà Lạt, luận văn thạc sỹ, Đại học Bách khoa Thành phố Hồ Chí Minh kê Trần Kim Dung (2003), Quản trị nguồn nhân lực, Nhà xuất thống 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