Các yếu tố ảnh hưởng đến lòng trung thành của nhân viên tại công ty trách nhiệm hữu hạn thiết bị viễn thông ANSV

Các yếu tố ảnh hưởng đến lòng trung thành của nhân viên tại Công ty Trách nhiệm hữu hạn Thiết bị Viễn thông ANSV Các yếu tố ảnh hưởng đến lòng trung thành của nhân viên tại Công ty Trách nhiệm hữu hạn Thiết bị Viễn thông ANSV Các yếu tố ảnh hưởng đến lòng trung thành của nhân viên tại Công ty Trách nhiệm hữu hạn Thiết bị Viễn thông ANSV Các yếu tố ảnh hưởng đến lòng trung thành của nhân viên tại Công ty Trách nhiệm hữu hạn Thiết bị Viễn thông ANSV Các yếu tố ảnh hưởng đến lòng trung thành của nhân viên tại Công ty Trách nhiệm hữu hạn Thiết bị Viễn thông ANSV

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH

LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH

HÀ NỘI - 2019

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH

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: TS TRẦN HUY PHƯƠNG

HÀ NỘI - 2019

THANK YOU

First of all, I would like to express my deep gratitude to Dr Tran Huy Phuong, who wholeheartedly guided and assisted me during the process of implementing this graduation thesis

I sincerely thank Teachers and Teachers of Hanoi National University for conveying valuable knowledge to me during my time at the school

I would also like to thank all of you and your colleagues who have been working at ANSV Co., Ltd, who helped me answer the survey questionnaire as a data source for analyze and produce research results of this graduate thesis

I would like to express my gratitude to the Family and Friends for helping

me and encouraging me, to help me complete this thesis

In the process of implementation, despite the utmost efforts to complete the thesis, exchange and absorb the comments of teachers and friends, consult many documents but also inevitable errors We hope to receive valuable information from your teachers and readers

I wish you all teachers and students a lot of health and happiness! Sincerely thank

Hanoi, July 3 rd , 2019

Student

Vu Thien Nhuong

TABLE OF CONTENT

LIST OF TABLE i

LIST OF FIGURE iii

LIST OF DIAGRAM iv

PREAMBLE 1

CHAPTER 1: THEORETICAL BASIS OF THE LOYALTY OF STAFF AND RESEARCH MODEL 7

1.1 The concept of loyalty 7

1.1.1 What is loyalty? 7

1.1.2 Some thesis about loyalty 7

1.2 Expression of loyalty, measurement of loyalty [12] 8

1.3 The role and benefits of loyalty to the organization [9] 9

1.4 Factors affecting loyalty 10

1.4.1 Salary and benefits 10

1.4.2 Work environment [6] 13

1.4.3 Colleague [5] 13

1.4.4 Leadership style [13] 13

1.4.5 Interest in work 14

1.4.6 Recruitment of personnel 14

1.4.7 Support of the organization 14

1.4.8 Authorize 14

1.4.9 Corporate culture 15

1.4.10 Training and developing [11] 15

1.5 Theories aimed at understanding the factors affecting employee loyalty 15

1.5.1 Maslow's hierarchy of needs 15

1.5.2 Two-factor theory by F Herzberg 17

1.5.3 Expected theory of Victor H.vroom 17

1.5.4 Theory of fairness 18

1.6 Some previous research on employee loyalty 19

1.7 Research model 26

Summary of chapter 1 27

CHAPTER 2: CURRENT STATUS OF EMPLOYEE’S LOYALTY AT ANSV 28 2.1 General overview of ANSV Co., Ltd 28

2.1.1 The process of formation and development of the Company 28

2.1.2 Organizational structure of the Company 30

2.1.3 Some main business results of the Company 30

2.2 Research design 32

2.2.1 Research method 32

2.2.2 Research process 33

2.3 Current status of loyalty analysis at ANSV Co., Ltd 38

2.3.1 Create loyalty for employees through Rewards and recognition 38

2.3.2 Creating loyalty for employees through Income 38

2.3.3 Creating loyalty for employees through the Work Environment 39

2.3.4 Creating loyalty for employees through Colleagues Relationship 39

2.3.5 Creating loyalty for employees through Training and promotion opportunities 39 2.3.6 Create loyalty for employees through Relationship with superiors 40

2.4 Research process 40

2.5 Design quantitative research 41

2.5.1 Methods of information collection and sample size 41

2.5.2 Methods of data analysis 41

2.6 Design qualitative research 45

2.7 Description of the scale 46

2.8 Overall assessment of employee loyalty status at ANSV 49

2.8.1 Result 49

2.8.2 Limited and causes 49

2.9 Linear regression analysis 50

2.9.2 Regression model with the participation of qualitative variables 58

Summary chapter 2 61

CHAPTER 3: SUGGESTING SOLUTIONS TO MAINTAIN AND IMPROVE THE LOYALTY OF STAFF AT THE ANSV COMPANY 62

3.1 Research sample information 62

3.2 Evaluate the reliability of the scale 67

3.2.1 Cronbach’s Apha inspection for component scales 67

3.2.2 Factor analysis (EFA) 72

3.4 Testing the differences according to personal characteristics to employee loyalty 78

3.4.1 Gender differences 79

3.4.2 Age difference 79

3.4.3 Differences in education level 80

3.4.4 Differences in seniority 81

3.5 Conclude 82

3.6 Proposal 83

3.6.1 For Compensation factors 83

3.6.2 For Leadership factor 85

3.6.3 For work nature elements 88

3.7 Contribution of the topic 89

3.8 Limitations of the topic and the next research direction 89

Summary of chapter 3 90

CONCLUSION 91

LIST OF REFERENCES 92 APPENDIX

LIST OF TABLE

Table 1Motivating and maintaining elements of F.Herzberg 17

Table 2 Extracting business results from 2016 to 2018 31

Table 3 Scale of working environment components 35

Table 4 Component scale Training and promotion 36

Table 5 Scale of Leadership component 36

Table 6 Scale of Colleagues components 37

Table 7 Scale of components Nature of work 38

Table 8 Employee Loyalty Scale 38

Table 9 Scale content 49

Table 10 Structure of survey sample by gender 62

Table 11 Structure of survey sample by educational level 63

Table 12 Structure of survey samples by age 64

Table 13 Structure of survey samples according to working seniority 65

Table 14 Structure of survey sample by job position 66

Table 15 Structure of survey samples by average income per month 67

Table 16 Cronbach’s Alpha coefficient of the Salary scale 68

Table 17 Cronbach Alpha coefficient of the working environment scale 69

Table 18 Cronbach alpha coefficient of scale Working environment after Env4 type 69

Table 19 Cronbach alpha coefficient of scale Working environment after Env3 type 69

Table 20 Cronbach’s Alpha coefficient of Training and promotion scale 70

Table 21 Cronbach Alpha coefficient of Leadership scale 70

Table 22 Cronbach’s Alpha coefficient of Colleague scale 71

Table 23 Cronbach's coefficient Alpha of the scale of work nature 71

Table 24 Cronbach Alpha coefficient of Loyalty scale 72

Table 25 EFA results measure employee satisfaction 74

Table 26 EFA results scale of employee satisfaction after removing Pro5 observed variable 75

observed variable Pro4, Pay1 76

Table 28 Results of EFA scale of employee satisfaction level after removing observed variable Cow5, Pay2, Sup5, Sup6, Pro6, Wor2 76

Table 29 Testing by KMO and Bartlett's method 77

Table 30 Results EFA loyalty scale 78

Table 31 Testing by KMO and Bartlett's method 78

Table 32 Regression results using the Enter method 51

Table 33 Evaluation of conformity of the model 52

Table 34 Model conformity test table 52

Table 35 Spearman test 55

Table 36 Durbin Watson statistics 56

Table 37 Regression model with the participation of qualitative variables 78

Table 38 Testing the level of loyalty between men and women Independent Samples Test 79

Table 39 Table of verification of loyalty level by age Test of Homogeneity of Variances 80

Table 40 Table of verification of loyalty level by cultural level 81

Table 41 Table of verification of loyalty level by working seniority 81

LIST OF FIGURE

Figure 1Calibration model in research of Turkyilmaz, Akman, Coskunozkan and

Pastuszak (2011) 20

Figure 2Calibration model in Mehta's study, Singh, Bhakar & Sinha (2010) 22

Figure 3 Calibration model in the study of Ahmad Ismail Al-Ma’ani (2016) 22

Figure 4 Correction model in Ajami's study (1998) 23

Figure 5 Calibration model in research by Kumar & Skekhar (2012) 23

Figure 6 Calibration model in the study of Athar Waqas et al (2017) 24

Figure 7 Calibration model in Ketbi's research (2006) 24

Figure 8 Calibration model in the study of Nguyen Thi Thu Hang and Nguyen Khanh Trang (2016) 25

Figure 9 Calibration model in research by Nguyen Thi Thu Hang and Nguyen Khanh Trang (2016), Tran Kim Dung (2005) 26

Figure 10 Research Model 26

Figure 11 Research process 32

Figure 12 Scale of remuneration components 35

Figure 13 Structure of survey sample by educational level 63

Figure 14 Structure of survey samples by age 64

Figure 15 Structure of survey samples according to working seniority 65

Figure 16 Structure of survey sample by job position 66

Figure 17 Structure of survey sample by average income / month 67

Figure 18 Scatter chart between residuals and predicted values 53

Figure 19 Frequency chart of standardized residuals 55

Figure 20 Q-Q Plot frequency chart of standardized residuals 55

Figure 21 P-P Plot frequency chart of standardized residuals 56

LIST OF DIAGRAM

Diagram 1 The organizational structure of the company 30 Diagram 2 Research Process 40 Diagram 3 Process of data analysis with SPSS 42

PREAMBLE

1 The urgency of the topic

Every human resource is always an invaluable asset of any organization from state management to private enterprises, from a small locality to a large country The integration leads to the rise of enterprises of all economic types that have made the labor market rapidly formed One sign that is easy to see is the increasing mobility of enterprises among enterprises The situation of highly qualified and qualified employees often moves to high-wage places, better remuneration now not only happens in sectors such as banking, telecommunications, information technology , which is becoming a common problem, hurting most businesses

A successful and efficient business always thanks to the contribution of good and loyal staff Therefore, to attract and maintain the human resources of managers

to implement human resource planning, change the salary, bonus policy, social welfare, etc and also ANSV Co., Ltd must be an exception However, managers are still unable to avoid the departure of employees According to the wage labor report of ANSV Co., Ltd., the total number of unemployed workers in 2018 is 78,

of which professional and skilled employees account for 25% of the total number of employees who leave, within the first 6 months of 2018 this figure accounted for about 35%

So what is the reason why employees of ANSV Co., Ltd are no longer attached to the enterprise? What factors affect employee loyalty to the company? Is the company's salary, bonus, social welfare, working environment, corporate culture, leadership style, influencing their departure and leaders really care to the rights of workers? Because of this concern, I chose the topic "Factors influencing the employee’s loyalty at ANSV Co., Ltd." to conduct research on employee loyalty

to ANSV Co., Ltd, with the desire to contribute a small part in completing policies

to attract, maintain and develop the human resources of the company

2 Overview of research situation

Studies of employee loyalty issues are seen on many perspectives and other

loyalty, solutions to maintain and enhance employee loyalty to the organization Some typical research projects such as:

2.1 Situation of research abroad

In Aon Consulting's research is done annually on a national scale such as the Commitment @ work study in the US since 1997, in Canada since 1999, in the UK since 2000 and in Australia since 2002 shows that The close relationship between employee satisfaction and their attachment to the organization Aon Consulting applied terrific theory to demand Maslow on the condition of the modern economy and said that to enhance employee engagement with the organization, needs to satisfy the needs of employees:

In the United States, employee satisfaction needs are categorized by: salary and welfare, change management, training and development, organizational culture and development path, balancing life

In Canada and Australia the satisfaction of employees' needs is categorized by: Safety, reward, social - loved, balanced work-life

Research by Shruti and Nirmala (2016) investigates the impact of human resource management practices on employee organizational commitment in different sectors in India Research shows how the practice of human resource management brings advantages to employee commitment to organizational goals in

a global competitive market The results show the elements of advancement, satisfaction, job characteristics, communication, satisfaction of leaders, job satisfaction, external exchange, internal and external exchange and internal rewards are positively and significantly related to cohesion among employees

Meyer et al (2000) also provided in their general analysis the results of research on the causal factors of organizational loyalty These factors include: leave of work and awareness of leaving the organization, absence, work performance, civic behavior

in the organization, stress and conflict between work and family; In addition, they presented an additional element related to workers, namely health and welfare

2.2 Researches in our country

Research by Tran Thi Kim Dung and Nguyen Thi Mai Trang (2007) argued

that the organization's leadership and cultural style affects the loyalty of specific employees:

New leaders in substance affect employee loyalty, but this is not true in foreign-invested companies, many employees still achieve good results but cannot withstand the pressure working too high for a long time had to accept to switch to another company

Innovation culture: supporting with creating a supportive, goal-oriented working environment, creating excitement for everyone has a very good effect to retain employees It has a positive effect on employee loyalty in all three types of business ownership

Administrative culture: administrative culture does not affect employee loyalty in domestic enterprises but has an impact on employee loyalty in foreign-invested enterprises When applying to foreign businesses, workers expect to work

in a professional environment, if this is not achieved, workers can easily leave the business On the contrary, when agreeing to work for domestic enterprises, workers are more likely to mimic and accept the status of administrative desks, non-professional manners and practice of adapting to businesses

Vu Khac Dat (2008) studied the factors affecting loyalty of office workers in southern Vietnam Airlines also based on the research model of Tran Thi Kim Dung but there are some adjustments accordingly With the condition of Southern Vietnam office Airlines, the author publishes the following six elements: Nature of work, training-development, assessment, remuneration (salary and welfare), working environment (combining two elements of Colleagues and working environment), leadership Research results show that the most powerful factor affecting employee loyalty is the environmental factor Both leadership and work factors have a positive impact on employees' overall satisfaction as well as their loyalty to the company

Do Phu Tran Tinh et al (2012) surveyed 200 workers working at agencies and businesses in Ho Chi Minh City, concluding that promotion opportunities are

employees at the company, followed by reward and welfare policies, relationships with leaders, working conditions and, ultimately, the relevance to career goals This study also confirms that income is not an important variable that determines the attachment of young workers to enterprises

Pham The Anh et al (2016) in the article on Human Resource Management and the cohesion of employees at enterprises gave the basic indicators of cohesion: loyalty, pride, try At the same time, the authors also analyzed three factors that strongly influence the cohesion of workers: career development opportunities, remuneration and job descriptions

Tran Dinh Man Duy (2018) in the master thesis "Factors affecting the loyalty of employees of Dong Tam Corporation" In my dissertation, the author has identified factors that affect the loyalty of employees of Dong Tam Corporation such as remuneration, working environment, training, advancement, leadership style, colleagues, the nature of the work, the level of satisfaction of the employees On that basis, the author deeply analyzed the influence of factors on the loyalty of employees of Dong Tam Corporation At the same time, the author proposes a number of solutions to minimize negative effects and promote positive factors on remuneration issues, the nature of work and leadership

Dang Thi Hai (2017) in the master thesis "Factors affecting the loyalty of employees of Beton 6 company" By presenting the theoretical basis and models of research on loyalty, the author has developed a research methodology, which gives

an assessment of the factors affecting employee loyalty Beton 6 company Based

on the situation of analysis and evaluation, the author has proposed solutions to strengthen the loyalty of Beton 6 employees

3 Research gap

All of the above works have conducted research on many aspects related to retaining employees in both theoretical and practical aspects In general, studies have mentioned the following issues:

 Giving factors affecting the cohesion of workers and the reasons they leave the organization;

 Analyzing the job satisfaction of employees;

 Domestic studies have applied to the actual conditions of Vietnamese workers in general;

Although there are many works related to the research topic, but these projects in the implementation process as well as results are limited, subjective and objective shortcomings are only to solve the problem of cohesion or job satisfaction issues for employees in general

The above works have not evaluated the reliability of the scale through factor analysis, factor analysis for independent variables, factor analysis for dependent variables At the same time, the above works have not conducted to test the differences according to personal characteristics to employee loyalty such as gender, age, working position and seniority

4 Research purpose

Employee loyalty is a deliberate commitment to further the best interests of one’s employer, even when doing so may demand sacrificing some aspects of one’s self-interest beyond what would be required by one’s legal and other moral duties

A loyal employee is such that is willing to work in that organization, thinking or believing that to work in the organization is the best option for him For this purpose, the employee tries his best for the success of the organization to ensure that it survives

Keep loyalty of employee makes business run smoothly This thesis focuses

in how to make ANSV employee higher

5 Research objectives

Based on research and analysis of factors affecting employee loyalty, thereby providing solutions to maintain and improve employee loyalty to the company Systematize theoretical and practical issues of employee loyalty

Analyzing factors of employee loyalty, the degree of influence of factors on loyalty,

to each individual

Factors influencing the employee’s loyalty at ANSV Co., Ltd

The thesis proposes solutions to retain employees of ANSV Co., Ltd until 2023 Scope of content: The thesis focuses on researching factors affecting employee loyalty at ANSV Co., Ltd

8 Research method

Secondary data: Dissertation uses data collected from internal documents, reports and information of ANSV Co., Ltd from 2017 - 2018, data sources collected from outside such as central ministries, publications have been published (textbooks, articles, magazines, internet, dissertations, )

Primary data: Quantitative method is used in the research phase by technical interview directly with employees who have been working at ANSV Co., Ltd through detailed questionnaire according to rating scale 5 Corresponding level: 1 - Completely disagree to 5 - Absolutely agree Sampling method is random probability The survey results will be statistically and synthesized, and processed

by SPSS software to form an overall view of the status of retaining employees at ANSV Co., Ltd., assisting Direction of feasible solutions

9 Dissertation structure

In addition to the introduction and conclusion, the thesis consists of 3 chapters:

Chapter 1: The theoretical basis of employee loyalty and research design

Chapter 2: The status of employee loyalty at ANSV Co., Ltd

Chapter 3: Proposing solutions to maintain and improve employee loyalty at ANSV Co., Ltd

CHAPTER 1: THEORETICAL BASIS OF THE LOYALTY OF STAFF AND

RESEARCH MODEL 1.1 The concept of loyalty

1.1.1 What is loyalty?

Loyalty is an employee who intends to stay long with the organization / business; will stay with the same organization / business even if there is a relatively more attractive salary offer (Stum 1999-2001)

1.1.2 Some thesis about loyalty

According to Johnson (2005), employees "are more professionally loyal to employers" and "the nature of the relationship between employees and employers has changed substantially and needs to be reevaluated loyalty concept ”according

to Tran Thi Kim Dung & Nguyen Thi Mai Trang (2007, p.19-20)

There have been many studies of employee loyalty with many different approaches

According to Allen, N.J., & Meyer, J.P (1990) focused on 3 psychological states of employees when connected with the organization Staff can be loyal to the organization:

- Because of their true feelings, they will stay with the organization even if other places pay higher wages

- Because they don't have a chance to find a better job

- And maybe because of the moral standards they pursue

The Loyalty Research Center (1990) defined employee loyalty as employee engagement with organizational success and believing that their best choice is to work for this organization Not only do they implement plans to survive with the organization but they are also not proactive in seeking opportunities to change jobs

as well as not responding to other attractive offers According to this definition,

plan to quit

The intention to leave the employee's job is the intention to leave the current working environment to switch to another working environment (Vo Quoc Hung & Cao Hao Thi, 2010) In general, employees often work for an organization that wants to meet their needs and feel satisfied with their work Once the needs are not met, feeling unsatisfied with the job, the intention to leave to find another organization is inevitable Thus, there is a correlation between demand and satisfaction for work to the attachment, loyalty of employees to the organization (Tran Kim Dung, 2005) Therefore, it is necessary to present the theory of employees' needs and satisfaction in order to consider the relationship with employee loyalty, based on which hypotheses are proposed for this study

1.2 Expression of loyalty, measurement of loyalty [12]

Firstly, tell your boss what your boss wants to hear the least: When employees and bosses are farther away from their ranks, fewer employees will disagree with the boss For example, new employees who join the company often absolutely comply with all boss's opinions and instructions without any comments But that doesn't mean they always feel satisfied And when those employees' dissatisfaction peaks, they often resolve themselves by quitting Meanwhile, direct reporters who work closely with their bosses may have mixed views with their boss They are loyal employees, willing to point out the wrong points of the boss, tell the boss what the boss wants to hear the best with the willingness to want the job to be better

Secondly, treat your boss as a person: A student can always watch his teacher as an idol with a very standard and standard image But the student is also difficult to accept the image of the teacher he loves in the form of "morale" of an ordinary person in society Similarly, many employees look at the boss like a person who is always strong, strong, powerful and often keeps distance from his boss But loyal employees do not place heavy relationships between bosses and employees that way They understand boss in every corner of their work and personal life Loyal employees understand that the boss always wants to help them achieve their career

goals and in their personal lives, expecting their employees to have the best On the contrary, they also want their boss to meet the best in their work and personal life

Thirdly, never criticize your boss before others: Employees can criticize your boss as a way to reduce stress but most people do this because they think your boss

is not superior to yourself They also find ways to "erode" the respect that the boss has worked so hard to deserve from everyone around Loyal employees will not do

so They didn't talk, bad boss said behind They always show respect for the boss even if the boss is not in front of them

Fourth, show disagreement with your boss privately: Arguing and disagreement are healthy for an organization Loyal employees believe they can freely share their views with their boss, analyzing the advantages and disadvantages

of their boss's decisions They also believe that the boss is willing and eager to listen to their comments for the sake of the boss and the company However, unlike loyal employees, they will do the above things with their boss skillfully and privately

Fifth, openly support all boss decisions: Even if you disagree with your boss about a decision, loyal employees will not try to find a way to prove that your boss is wrong Conversely, in front of people, loyal employees will do everything to prove their boss is doing the right thing

Sixth, notice to the boss when he wants to quit his job: No boss wants to lose his loyal employees But sometimes, loyal employees are forced to say goodbye to bosses and companies to pursue better opportunities, to enter a new field, to set up their own company or just want to lifestyle changes However, these employees always understand that their departure will leave their boss and a hole in the staff and therefore, they will foreshadow their plan so that the boss has enough time to prepare

1.3 The role and benefits of loyalty to the organization [9]

As mentioned above, employee satisfaction is extremely important in any organization, big or small The satisfaction of employees has a two-way effect, both with the organization and the employees themselves, but the level and intensity are

For organizations, Employee satisfaction affects all aspects of corporate operations including:

The first is increasing personnel performance Employees who are satisfied with the work will have better, more devoted, devoted attitude and active learning and development in their work This increases the overall productivity of the company and helps the company achieve its goals

The second is to maintain and stabilize the human resources in the company, satisfied employees will have a spirit of attachment to higher enterprises, less affected

by outside offers Besides, employees will appreciate the collective benefits because when they want to stick, they will "take care", "build" and "protect" their common home

Third, when employees are satisfied with their work, they will treat customers better and therefore customer satisfaction is also greater

Fourth, the staff will communicate the company outside and that helps the company attract talents, build good image in the eyes of customers and partners

Fifth, the Company will save money for training new candidates and recruiting candidates

Sixth, the Company will minimize the errors in the process of work as well as the process risks by more responsible, enthusiastic employees so they always strive to

do better their work

As for employees, the satisfaction of employees at work not only helps them stick with businesses, but also reinforces their love of business Employees will start to care about their work instead of worrying about other issues, they feel responsible for the organization and try to create better results to gain appreciation from the company They will also deal with customers better and build strong relationships with them

1.4 Factors affecting loyalty

1.4.1 Salary and benefits

Wages are both an expensive and an asset Expensive costs reflect through labor costs In the service sector, labor costs account for about 50% of the total cost However, remuneration is also an asset because it motivates employees to

make efforts It is a potential to affect employees' work behavior, motivating more productive employees Wages help employees improve their work, increase

productivity and lower the number of people who quit their jobs

Some companies want to lead in higher salaries than other companies These companies want to attract talent because they think that paying higher wages than other firms will attract highly qualified candidates Some companies apply a salary policy that is lower than the current salary There are two reasons why these companies pay low wages; one is that the company falls into a difficult financial situation; secondly, they think that they do not need good workers to do simple jobs But studies have shown that paying low wages does not mean saving a sum of labor costs On the contrary, the company will be more expensive, because workers will not be productive, the rate of good people leaving will be high to find other places to pay higher wages

According to Tran Kim Dung (2003), the remuneration is always one of the most challenging issues for managers in all businesses Enterprises often have different views and goals when setting up a pay system, but generally businesses aim to four basic objectives:

Attracting employees: The recommended salary is often one of the most basic factors for a candidate to decide whether to accept a job at a business The higher the wage paying enterprises are, the more likely they are to attract good candidates from the local market

Maintaining good employees: to maintain good employees for businesses, high pay is not enough, but also must show fairness within the enterprise When employees find that businesses pay them unfairly, they will often feel uncomfortable, inhibited and depressed, even leaving the business

Stimulating and motivating employees: If the policies and governance activities

in the enterprise let employees realize that their efforts, hard work and good performance will not be compensated adequately They will not try to work anymore, gradually, can form passive, passive among all employees of the business

regarding labor pay in enterprises often focus on the following issues: the minimum wage regulation, the time and the thing labor law, regulations on child labor, allowances in wages, regulations on social welfare such as social insurance, sickness, maternity, labor accidents,

All employees want to be rewarded for their contributions or contributions

in certain ways Workers who can get in an organization are not just money and not all people work for money Money will be a strong encouragement for low-skilled workers and those pursuing material wealth, but money has little impact on those who like to do challenging jobs Therefore, reward must be directed towards satisfying the individual needs of employees

The theory of expectation indicates that workers will not pursue rewards when they realize rewards are not attainable Therefore, the forms of material encouragement must be designed in such a way that it will create employee confidence in the connection between reward and effort

Moreover, the reward must show personal justice (compare the effort spent with the rewards received) and social justice (compare your efforts and rewards with others) under the same conditions) If rewards do not give employees an awareness of fairness, it is difficult to have good activities of workers

In addition, to encourage employees 'efforts towards achieving the organization's objectives, rewarding must be associated with the results and effectiveness of the performance of employees' tasks

According to Tran Kim Dung (2003), welfare shows the interest of enterprises to the lives of workers, which stimulates loyal and attached employees

to enterprises Business benefits include: Social insurance and health insurance; retire; leave, holidays; lunch is covered by the enterprise; business subsidies for large or disadvantaged employees; Business gifts for employees on birthdays, weddings, happy parents and staff

For Nguyen Huu Than (2001), welfare consists of two main parts: regulatory and welfare benefits that are voluntarily applied by companies in part to stimulate employee incentives, and partly to maintain and attract talented people to work for

the company Voluntary benefits are health insurance programs, health insurance programs, types of services, programs that pay for harmful benefits - hazards and other subsidies such as grants to establish centers, child care center when their parents work or a program to diagnose and treat public blood pressure Each company has many initiatives for different types of subsidies, but all have a common goal of encouraging employees to work, feel secure to work, and stick

with more agencies

The working environment is always concerned by workers because the working environment is related to personal convenience but it is also a factor that helps them to fulfill their tasks Workers do not like dangerous, unfavorable and inconvenient working environments Temperature, light, noise, and other environmental factors must be appropriate Moreover, many workers prefer to work close to home, with clean, modern working facilities and appropriate equipment

People get from work from many things, not just money and achievements For most workers, work also satisfies the need for interaction Therefore, it is not surprising that people who collaborate and support will increase job satisfaction Behavior of leaders is also a key factor determining satisfaction Employee satisfaction increases when their leader is knowledgeable, friendly, and gives praise when workers perform well, listening to employees' opinions, and know about the interests of workers

In order for employees to wholeheartedly serve the business, the superior communication technique for their subordinates is very important Administrators create a friendly atmosphere, trust in employees, pay attention to building good relationships, behave courteously, respect employees, pay attention to their opinions, not force they are more powerful, but by their true reputation, the more they promote their talents, stimulate them to work harder and be more effective

influence, encourage encouragement and direction for the activities of the executives to achieve the common goals of the organization, at the same time Based on some theories show that Leadership has a positive influence on employee loyalty

According to research by Tran Kim Dung & Nguyen Thi Mai Trang (2007)

on the impact of organizational culture and leadership style on their performance and loyalty to the organization, the new leadership style comes substance (including 3 components: attractive-inspirational; intellectual encouragement; personal interest) has a positive impact on employee loyalty When a leader is able to convey inspiration to work for employees, "providing subordinates with a clear sense of purpose" will give life force staff to work and have positive thoughts from there, more with the company The leader also needs to be an example for his subordinates to follow and encourage employees to find new solutions to complete the job Care and encouragement of employees must be done appropriately That is, only encouraging employees, showing employees that they

do it for themselves, not for the company From there they will have admiration for leaders that stick with the company more

1.4.5 Interest in work

Regarding the challenges of work, the opportunity to use personal abilities and feel interesting when doing the job People who are not much suited to work are more likely to leave the organization than those who have a personal and work fit

1.4.6 Recruitment of personnel

The foundation of a business is always a strong, capable and suitable staff of the company, loyal to the company In order to have such staff, it asks a combination of many factors such as remuneration, working environment, training and development, empowerment, corporate culture, However, the first element has The most important role is the recruitment process

1.4.7 Support of the organization

When employees feel that they get help and coordination in good work with their colleagues; being encouraged by the higher level will create confidence for them to strive to accomplish the job well and want to contribute more to the organization

1.4.8 Authorize

The empowerment of businesses to employees is actually a form of employee trust, recognizing the competence of employees in the process of working No business is risking assigning important jobs, key positions in the company to an incompetent person Therefore, this will create the trust of employees for the superiors, for businesses Once assigned to take a more important position, get promoted, the staff will feel that they are being used, their talents are acknowledged by their superiors and then the staff will think that this is a lips The school works well and I can improve further in the future, .Therefore, empowerment of employees is also a factor that increases employee loyalty

1.4.9 Corporate culture

Corporate culture is to create a code of conduct for businesses without creating a directive This way of doing business not only has the effect of promoting businesses to implement the "human-centered" business method, but also makes the capacity of product development and unity capacity unite The collective of the business becomes prosperous, increasing the employee's attachment to the business, increasing employee loyalty to the business

Training and development helps employees update new skills and knowledge, enabling them to successfully apply technological and technical changes in the enterprise At the same time, it helps employees get the necessary skills for advancement opportunities and substitutes for necessary managers and professionals

Satisfying training and development needs for employees will stimulate employees to perform better jobs, achieve better achievements, want to be given more challenging tasks with more advancement opportunities Therefore, training is considered a basic element to meet the strategic goals of the organization The quality of employees has become one of the competitive advantages of businesses, businesses should focus on training policies and create opportunities for employees

to develop themselves

1.5 Theories aimed at understanding the factors affecting employee loyalty

In the system of management theory and encouragement, Abraham Maslow's theory of demand hierarchy (1943) is a theory that has a vast understanding A Maslow believes that human behavior stems from human needs and needs arranged

in a priority order from low to high in importance Demand levels are arranged into the following five levels:

The basic needs or physiological needs: it is the need related to the essentials

to survive such as food, air, housing, clothing, Within the organization, this demand is expressed mainly in salaries and benefits

Safety needs: including personal safety such as no attack, threatening war, natural disasters; financial safety such as economic crisis, unemployment; Health safety such as no sickness, accidents, etc In the organization, this demand is reflected in the safety of the work, the protection of labor, long-term stable work,

Social needs: When the needs of physiology and safety are satisfied, the third higher demand appears that is the need for social relations such as friends, family, and community participation social, loved,

Needs are respected: Everyone has a need to be respectful and respectful Respect comes from people wanting to be accepted and valued by others In the organization, this need represents being organized to recognize employees' contributions, work in a high position and increase responsibility

Demand for self-affirmation: This is the highest and most unsatisfactory demand in Maslow's demand ladder This is the need to express each person's "I" More specifically, at this level people have the need to develop their own capacity and improve themselves In the organization, this need is reflected in the training, coaching, advancement, and the opportunity to promote the capacity and creativity

A Maslow divided the needs into two levels: high and low Low-level needs are physiological and safety and security needs High-level needs include social needs, need for respect and the need to assert themselves

A Maslow said that satisfying lower-level needs is easier than satisfying high-level needs because low-level needs are limited and can be satisfied from the outside He argued that first-class needs work, it requires satisfaction and so it motivates people to act - it is a motivating factor When these needs are satisfied, it

is no longer a motivating factor, then higher level needs will appear

Maslow’s demand theory has an important implication for managers that to motivate employees it is important to understand what level of needs your workers are at From that understanding allows you to devise appropriate solutions for satisfying employees’ needs while ensuring organizational goals

1.5.2 Two-factor theory by F Herzberg

The two-factor theory is given by Frederick Herzberg, an American psychologist He surveyed the sample with the objects of accountants and engineers Each person will be interviewed about his or her work to find out positive (satisfied)

or non-positive (dissatisfied) factors that affect job satisfaction The analytical results have identified two groups that have conflicting effects on work, specifically shown in the following table:

Table 1Motivating and maintaining elements of F.Herzberg

regulations

(Source: Author's synthesis)

F Herzberg's two-factor theory makes sense for managers to please employees Managers must first improve the retention factors before they want to increase their employee motivation Each person will have different feelings about these two groups of factors, because it may be one factor that motivates this person but is the maintenance of others and the tendency of motivating factors over time becomes weak Maintenance factor Therefore, managers need to always find solutions to enrich the work of employees because that will contribute to creating more motivational factors

Victor H Vroom believes that encouragement is the result of an individual's expectations The encouragement of people depends on two factors, the level of the individual's desire to deal with the job and how the individual thinks about the job and how it will be achieved Therefore, to motivate workers, we need to pay attention to the perceptions and expectations of individuals in terms of situation, rewards, ease of implementation in a way that will reach rewards and guarantees Make sure the reward is paid Theory expects that managers must understand employees' expectations and align these expectations with organizational goals For this, the administrator should: create the outcomes that the employee desires, create the need to implement to achieve the organizational goals, ensure the desired level of performance can be achieved, closely linked expected results with the necessary implementation, assessing the situation with different expectations, ensuring the reward is sufficiently attractive and fair for everyone (Nguyen Huu Lam, 1996, p .127-128)

1.5.4 Theory of fairness

Fair doctrine states that workers compare what they put into a job (input) with what they receive from that job (output) and then compare the input-output ratio of them with the input-output ratio of others If their rate is equal to the rate of others, it is assumed that there is a fair situation If this rate is not equal, they think there is an injustice When unfair conditions exist, employees will make efforts to correct them

Fair doctrine implies that when employees visualize injustice, they may have one or more of the following five possibilities:

 Distort the inputs or outputs of yourself or others

 Behave in a way to make others change their inputs or outputs

 Behave in a way to change their own inputs or outputs

 Choose another comparison criterion for comparison

 Quit

The doctrine of fairness recognizes that individuals are not only interested in the sheer volume of rewards they receive for their efforts, but also the relationship between that mass and what others receive Inputs, such as effort, experience,

educational level and talent, are compared with outputs such as wages, salary increases, recognition and other factors When people realize that there is a difference in their input-output ratios compared to others, there will definitely be tension This tension provides the basis for motivation, when people strive to gain what they consider to be fair and satisfactory

Employee motivation is greatly influenced by relative rewards as well as absolute rewards When employees are aware of an injustice, they will take actions

to correct this situation The result may be higher or lower productivity, better quality or less, increased absenteeism, or voluntary resignation

1.6 Some previous research on employee loyalty

The fact shows that organizational leadership and culture have an impact on the loyalty of specific employees:

New leaders in substance affect employee loyalty, but this is not true in foreign-invested enterprises Due to the fierce nature of foreign-invested enterprises, many employees, although still achieving good working results, cannot bear the high pressure of work for a long time to accept to transfer to another company

New culture - supporting with creating a supportive, goal-oriented work environment, creating excitement for everyone, has a good effect to keep employees It has an effect on employee loyalty in all three types of business ownership

Administrative culture; Administrative culture does not affect employee loyalty in domestic businesses but has an impact on employee loyalty in foreign-invested enterprises When applying to work in foreign-invested enterprises, workers have been looking forward to working in a professional working environment, if this is not achieved, workers can easily leave the business In contrast, when agreeing to work for domestic enterprises, workers often easily mimic and accept administrative tables, non-professional manners and practice adapting to businesses

Vu Khac Dat (2008) Research on factors affecting the loyalty of employees

in the South, Vietnam Airlines, the author studied the following six factors:

2 Training - Development

3 Evaluation

4 Treatment: Combining from two factors: Wages and Welfare

5 Operating environment: combining from 2 elements of Colleagues and Working Conditions

The results of the author's research show that the most powerful factors affecting employee loyalty are environmental factors Both leadership and work factors have a positive impact on the employee's overall satisfaction as well as their loyalty to the company Therefore, measures to increase the satisfaction of employees in the company by impacting on these two factors as well as increasing their loyalty to the company

Research of Turkyilmaz, Akman, Coskunozkan and Pastuszak (2011) This study aims to evaluate the factors affecting employee satisfaction and loyalty in the organization

The results of quantitative analysis show that factors such as training and development, compensation and recognition, authorization, group activities and working conditions will increase satisfaction At the same time there is a significant impact of satisfaction on loyalty of employees, according to the authors' conclusion after evaluating the analysis results, the above factors will indirectly affect loyalty

of employees in the organization Research by Mehta, Singh, Bhakar & Sinha Salary, bonus and recognition

(2010)

This study assesses the direct impact of factors on employee loyalty in the company

The results of quantitative analysis show that factors such as career development, work motivation, cohesion, work safety, leadership style and cohesion will directly affect the loyalty of people All of these relationships are positively related, which means that the increased results of these independent factors will enhance employee loyalty in the company Research by Ahmad Ismail Al-Ma’ani (2016) This study assesses the direct impact of factors on employee loyalty in the company

By quantitative analysis the author has synthesized and proposed a model to study the impact of factors such as staff recruitment, training opportunities, authorization and motivation of employees, these factors impact on employee loyalty in the organization With analysis based on a sample of 618 employees, the results show a significant impact of all the above variables Ajami's study (1998) This study assesses the direct impact of factors on employee loyalty in the company in Kuwait

The loyalty of employees

Figure 2Calibration model in Mehta's study, Singh, Bhakar & Sinha (2010)

Figure 3 Calibration model in the study of Ahmad Ismail Al-Ma’ani (2016)

Research results show that employee loyalty has a meaningful relationship with employee satisfaction and also shows a relationship with supervision, communication, advancement, and lips The school works at the company

Research by Kumar & Skekhar (2012) This study assesses the direct impact of factors on employee loyalty in the company in India

The research results show that, with the analysis results from the survey, it is said that salary, recognition of roles, rewards, authorization, active participation in Career advancement

Authority

Figure 4 Correction model in Ajami's study (1998)

Figure 5 Calibration model in research by Kumar & Skekhar (2012)

the organization's development, here These are factors that are related to employee loyalty in the organization

Research by Athar Waqas et al (2017) This study assesses the direct impact

of factors on the loyalty of employees in the company in Pakistan

The analysis results show that, with the variables in the model such as: participating in the decision-making process, authorization, rewards and recognition, working environment, satisfaction The analytical results show that there is a clear impact of participation in decision-making, rewards and recognition, the working environment to the satisfaction and satisfaction of the customers, which strongly affects their loyalty

Ketbi's research (2006) This study assesses the direct impact of factors on the loyalty of public administration employees in Sharjah Police

Authority

Personal factor

Work environment

Loyalty of employees

Figure 6 Calibration model in the study of Athar Waqas et al (2017)

Figure 7 Calibration model in Ketbi's research (2006)

administration field at Sharjah police station, show that there is a relationship between employee loyalty and environmental variables Work school, personal characteristics of employees

Research by Nguyen Thi Thu Hang and Nguyen Khanh Trang (2016) This study assesses the impact of factors on the loyalty of employees working in organizations in Ho Chi Minh City

By quantitative analysis, the results show that the model consists of 6 independent variables: training and development, working conditions, relationships with superiors, rewards and recognition, relationships with colleagues and challenges at work The results show that there is a significant impact of training and development, working conditions, relations with higher levels that affect satisfaction and satisfaction with the change of loyalty of employee

From the above studies, recognizing the important role of factors such as recognition and reward, working environment, training and development opportunities that many researchers show have an impact on middle member of the staff In addition, overseas studies will be difficult to apply any model of any country into Vietnam, especially the Tan Tao corporation, because of cultural differences and living standards

or even even how to work Therefore, based on research on loyalty and research by Nguyen Thi Thu Hang and Nguyen Khanh Trang (2016), Tran Kim Dung (2005), the Salary and recognition

Training and developing

The loyalty of employees

Figure 8 Calibration model in the study of Nguyen Thi Thu Hang and Nguyen Khanh Trang (2016)

author decided to include more variables such as: relations with superiors, relationship with motivation and income into the model

1.7 Research model

Based on previous theories, studies, and group discussions as well as

suggestions of instructors, the author proposes the following research model:

Figure 10 Research Model

The loyalty of employees

Salary

Working Enviroment

Training and Promotion

Leadership Colleagues

Working Nature

Salary and recognition

Training and developing

The loyalty of employees

Figure 9 Calibration model in research by Nguyen Thi Thu Hang and Nguyen Khanh Trang (2016), Tran Kim Dung (2005)

Summary of chapter 1

Chapter 1 of the thesis, the author presented the theoretical basis of employee loyalty in the company Specifically, the author presented the concept of loyalty and the role of encouragement in creating employee loyalty through Maslow's demand theory, two-factor theory by F Herzberg, expectation theory of Victor H.vroom, theory of fairness The author has reviewed some previous studies on employee loyalty and analysis of factors affecting employee loyalty In addition, the author has proposed research methods and processes.

CHAPTER 2: CURRENT STATUS OF EMPLOYEE’S LOYALTY AT ANSV 2.1 General overview of ANSV Co., Ltd

2.1.1 The process of formation and development of the Company

ANSV was established in July 1993 in the joint venture cooperation between Alcatel Group (now Alcatel-Lucent) and Vietnam Post and Telecommunications Corporation (now the VNPT group)

In 1997, the Company expanded its production, extending its operation time

to July 2016

In 2000 Alcatel transferred new technology to produce 1000 E10 systems

In 2006 Alcatel transferred the production technology of MSAN

Since August 24, 2011, Vietnam Post and Telecommunications Industry Technology Joint Stock Company (VNPT Technology) has acquired all rights and responsibilities of Alcatel-Lucent at ANSV, owning 51.2% in ANSV together with VNPT 48.8%

ANSV continues to develop in the traditional areas of operation from more than 18 years of the joint venture model, while promoting the experience and accumulated resources from over 18 years, continue to develop and expand the field areas of activity to promote the development of technology, industry and telecommunications and information technology services

In addition to Alcatel-Lucent's traditional technology partner, ANSV expanded its cooperation with other technology partners such as IBM, Convergys, Oracle ., to develop and produce hardware and software products and solutions meet the needs of the domestic and regional markets

Scope of activities:

 Research, development, production and repair of electrical, electronic, telecommunications, information and communication equipment, development of digital content industry;

 Trading in telecommunications, information and communication technology, digital content industry business;

 Trading in electrical products, electronics, telecommunications,

information technology and communication;

 Survey, consultancy, design, construction, installation, maintenance and technical support of telecommunications, information and communication technologies;

 General contractor of telecommunications, information and communication technologies;

 Consulting, research, training, vocational training and application of scientific and technological advances in the field of electricity,

communication;

 Importing and exporting, supplying materials and equipment for projects in the fields of telecommunications, information technology and communication;