Satisfaction level of employees in thai nguyen iron and steel joint stock corporation

SATISFACTION LEVEL OF EMPLOYEES IN THAI NGUYEN IRON AND STEEL JOINT STOCK CORPORATION A DISSERTATION PAPER Presented to the Faculty of the Graduate Program of the College of Business and Accountancy Central Philippine University, Philippines In Collaboration with Thai Nguyen University, Vietnam In Partial Fulfillment Of the Requirements for the Degree DOCTOR OF MANAGEMENT NGUYEN THI LAN HUONG MARCH 2017 i ACKNOWLEDGMENT The researcher would like to express her most professional thanks and gratitude to the following person who made significant contribution for successful completion of this study: Assoc Prof Dr Hoang Thi Thu for her great support and guidance towards the completing of this research work The employee of CPU and TUEBA, whose tutelage through the years, provided the researcher with the necessary background skills to undertake and complete this study The research‟s co-worker for the kind support and for sharing their time and experience that motivated the researcher to work toward the successful completion of this study Her husband and children for their unconditional and understanding, love and support that gave the researcher the encourage and inner drive that made possible the successful conduct of this study Thai Nguyen, March 2017 Nguyen Thi Lan Huong ii TABLE OF CONTENTS LIST OF TABLES v LIST OF FIGURES vii ABSTRACT viii CHAPTER I INTRODUCTION 1.1 Background and rationale of the study 1.2 Objectives 1.3 Theoretical framework 1.4 Conceptual framework 11 1.5 The operational definitions 12 1.6 Significance of the study 15 1.7 Scope and limitation of the study 16 CHAPTER II 17 REVIEW OF RELATED LITERATURE AND STUDIES 17 2.1 Theoretical foundation 17 2.1.1 Defining job satisfaction 17 2.1.2 Importance of job satisfaction of employees and its relationship with job performance 18 2.1.3 Measuring job satisfaction 19 2.2 Empirical related studies 20 CHAPTER III 27 RESEARCH METHODOLOGY 27 3.1 Research Design 27 3.2 Population, Sample Size and Sampling Technique 27 3.3 Research Instruments 29 3.4 Ethical Consideration 29 3.5 Data Gathering Procedures 29 iii 3.6 Data Processing and Data Analysis 32 CHAPTER IV 34 DATA PRESENTATION, ANALYSIS AND INTERPRETATION 34 4.1 Thai Nguyen Iron and Steel Joint Stock Corporation introduction 34 4.1.1 General informations 34 4.1.2 Organizational structure 36 4.1.3 Business Situation of TISCO 37 4.2 Situation of human resources of TISCO 38 4.2.1 The structure of human resources 38 4.2.1.1 Employee Structure by gender 38 4.2.1.2 Employees structure by age group 39 4.2.1.3 Employees structure by level of education and training 40 4.2.1.4 Employees structure according to the nature of work 40 4.2.2 Salaries, bonuses and Welfare of employees 40 4.2.3 Working condition of employee 41 4.2.4 Opportunity for advancement 41 4.2.5 Personal relationships 41 4.3 Evaluating the results of the employee satisfaction of TISCO 41 4.3.1 General information about respondents 41 4.3.2 Descriptive statistics 43 4.3.3 Test for reliability by Cronbach Alpha 48 4.3.4 Exploratory Factor Analysis EFA 52 4.3.5 Correlation Analysis 58 4.3.6 Regression analysis and hypothesis testing 59 Differences of Job Satisfaction by characteristics of workers 75 4.5.1 Difference of Job Satisfaction by “gender” 75 4.5.2 Difference of Job Satisfaction by “Age groups” 76 4.5.3 Difference of Job Satisfaction by “marital status” 77 iv 4.5.4 Difference of Job Satisfaction by “education” 78 CHARTER V 80 SUMMARY, CONCLUSION AND RECOMMENDATION 80 5.1 Summary 80 5.1.1 Research objective and methodology 80 5.1.2 Results of multiple regression analysis 80 5.2 Conclusions 82 5.3 Recommendation 83 REFERENCES 88 APPENDICES 95 v LIST OF TABLES Table Sample size of participants from each department in TISCO Thai Nguyen 28 Table The 5- Likert scale 29 Table 3 Sample of member in TISCO Thai Nguyen by kind employees 31 Table Cronbach alpha coefficient scale 32 Table Balance company audit results 37 Table Report on business results of the Company 38 Table Employee Structure by gender 39 Table 4 Employees structure by age group 39 Table Employees structure by level of education and training 40 Table Number of questionnaire sent out and collected 42 Table Frequency and percentage of employees by characteristics of participants (n = 367) 43 Table Descriptive Statistics of total employees 44 Table Descriptive Statistics of Indirect employees 44 Table 10 Descriptive Statistics of direct employees 45 Table 11 Descriptive statistics of “Supervisors”factor 45 Table 12 Descriptive statistics of “Co-worker” factor 46 Table 13 Descriptive statistics of “Working conditions” factor 46 Table 14 Descriptive statistics of “Financial reward” factor 46 Table 15 Descriptive statistics of “Opportunity for advancement” factor 47 Table 16 Descriptive statistics of “Salary” factor 47 Table 17 Descriptive statistics of “Nature of work” factor 48 Table 18 Cronbach Alpha of Nature of work 48 Table 19 Cronbach‟s alpha of salary 49 Table 20 Cronbach‟s alpha of Opportunity for advancement 49 Table 21 Cronbach‟s alpha of Supervisors 50 Table 22 Cronbach Alpha of Co-workers 50 Table 23 Cronbach Alpha of Working conditions 50 Table 24 Cronbach Alpha of Financial reward 51 Table 25 Cronbach Alpha of Satisfactions 52 Table 26 The result of EFA test for factors influencing job satisfaction of employees 52 Table 27 The result of EFA retest for factors influencing job satisfaction of employees 55 Table 28 EFA test for influencing job satisfaction factors 56 vi Table 29 EFA test for influencing job satisfaction factors 57 Table 30 Correlation coeefficients 58 Table 31 Descriptive Statistics of general employees 59 Table 32 Job satisfaction of Indirect employees 60 Table 33 Descriptive Statistics of direct employees 61 Table 34 Descriptive Statistics of “Nature of work” factor 61 Table 35 Descriptive Statistics of “Supervisors” factor 62 Table 36 Descriptive Statistics of “Co-worker” factor 62 Table 37 Descriptive Statistics of “Working conditions” factor 63 Table 38 Descriptive Statistics of “Financial reward” factor 63 Table 39 Descriptive Statistics of “Opportunity for advancement” factor 63 Table 40 Descriptive Statistics of “Salary” factor 64 Table 41 Regression model of general employees 66 Table 42 Regression model of direct employees 69 Table 43 Regression model of indirect employeess 72 Table 44 Results of One-Way Anova test of “gender” 75 Table 45 Results of One-Way Anova test of “Age groups” 76 Table 46 Result of Bonferroni test of “Age groups” 77 Table 47 Results of One-Way Anova test of “marital status” 77 Table 48 Results of One-Way Anova test of “education” 78 Table 49 Result of Bonferroni test of “education” 79 Table Coefficients three multiple regression 81 vii LIST OF FIGURES Figure 1 Abraham Maslow‟s need hierarchy theory Figure Maslow‟s hierarchy of needs and application in the workplace Figure Herzberg‟s two factors theory Figure Summarizing the need theories Figure Theoretical framework 11 Figure Conceptual framework 12 Figure Measure job satisfaction by faces 20 Figure Research framework: Adjusted model 57 Figure Homoscedasticity 64 Figure 4 Histogram chart 65 Figure P-P plot chart 65 viii ABSTRACT The purposes of this study were to examine Studies on job satisfaction have been conducted and applied including both theoretical and practical aspects In context of needing to improving quality of work performance in manufacturing enterprises, surveying on employee‟s job satisfaction has been done in previous researches However, there have not been separate studies on employee‟s satisfaction at administrative area toward their job (direct employes) as well as employee‟s satisfaction production area toward their job (indirect employees) The findings showed in previous part have many theoretical and practical implications This section summarizes all these implications Firstly, the findings of this study are different from the previous studies about job satisfaction among employees The research determined the job satisfaction level in both direct employees and indirect employees Secondly, this dissertation develops a model and empirically tests their applicability in delivery of pass grassroots level This study has tested the scales about the job satisfaction and components of job It points out that there are components when considering a job To be compared with the previous studies, the factors and impact levels on the satisfaction of employees have some differences Thirdly, this study objects to understand how employee satisfaction with their job in Thai Nguyen Iron and Steel joint stock Corporation TISCO is determined Even when the satisfaction of employees is medium level and high, some other aspects of job which are scored low or workers are not satisfied Fourthly, the research also shows that whether or not the differences in the satisfaction of employee according to their personal characteristics The concern about the relationship between employee‟s perceptions of components of job like nature of work, salary, supervisors, co-worker, opportunity for advancement, working condition, financial reward and the employee‟s job satisfaction in TISCO We also need to learn about the influence of these factors as an important part in the future improving the satisfaction of the employees This trend requires the operational capacity of administrator and manager in TISCO and worker knowledge Fifthly, and finally, this thesis supply helpful information for TISCO can based on to set up the polices and plans so as to enhance the satisfaction of the employee about their job Although The latter approach generally takes the form of employee‟s satisfaction surveys or other relevant survey data measuring quality of job or work performance by worker Thus, the findings from the survey at TISCO have practical significance when the TISCO has made reform for a long time CHAPTER I INTRODUCTION 1.1 Background and rationale of the study There are many factors influencing human resource management, of which job satisfaction is the most important issue among many factors of human resource management that every manager needs to give much attention The term “job satisfaction” is derived from the humanities, psychology and sociology In the field of psychology, it is a state where an employee has an emotional perception of his situation and reacts with feelings of pleasure or pain In sociology, it is considered a variable in different categories related to how each employee evaluates and thinks about his work (Sypniewska, 2013) Job satisfaction can be defined as an individual‟s total feeling about their job and the attitudes they have towards various aspects or facets of their job, as well as an attitude and perception that could consequently influence the degree of fit between the individual and the organization (R Karthik, S Saratha, & M Sowmiya, 2012; Spector 1997) For a few decades, many researchers have been carried out about job satisfaction and its components Many researchers and administrators have noticed the importance of job satisfaction on a variety of organizational variables In particular, it was known that dissatisfied employees are likely to leave their jobs (E.J Lumley, et al, 2011) Job satisfaction among employees is an indicator of organizational effectiveness (R Karthik, S Saratha, & M Sowmiya, 2012) the study conducted by Harter et al (2002) found positive and substantive correlations between employee satisfaction-engagement and the business unit outcomes of productivity, profit, employee turnover, employee accidents, and customer satisfaction Freeman, (2005) shows that businesses that excel in employee satisfaction issues reduce turnover by 50% from the norms, increase customer satisfaction to an average of 95 % and lower employee cost by 12% Carpitella (2003) indicated that the more satisfied an employee is, the less turnover and absenteeism occurs (Maloney & McFillen, 1986) Added to that, Job satisfaction plays an important role for an employee in doing their job performance Research examining the relationship between job satisfaction and job performance has been conducted since at least as early as 1945 (Davar, 2012) The idea that job satisfaction leads to better performance is supported by Vroom's The study relating to the relationship between job satisfaction and job performance has now become a research tradition in industrial-organizational psychology Vroom's (1964) 92 McCloskey, J.C and McCain B (1987), “Satisfaction, commitment, and professionalism of newly employed nurses”, Journal of Nursing Scholarship 19 (10): 20-24 Moorhead, G., Griffin, R (1995) Organisational Behaviour: Managing people and organisations, Boston: Houghton Mifflin Mueller, C W., & McCloskey, J C (1990) Nurses’ job satisfaction: A proposed measure Nursing Research, 39, 113Y117 Mulinge M, Muller CW (1998) Employee Job Satisfaction in Developing Countries: The Case of Kenya World Dev., 26(12): 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(p 271) New York: Springer Publishing Sweney, P.D and McFarlin, D.B (2005) Organizational Behavior, Solutions for Management, McGraw- Hill/Irwin, New York,p 57 Ting, Y (1997) Determinants of job satisfaction of federal government employees Public Personnel Management, 26, 313-334 Tran Kim Dung (2005) Measurement of job satisfaction within Vietnamese context” Journal of Science – Technology and Development, Ho Chi Minh National University Vol (12) Tran Xuan Thach, 2015 Factors that have impacted job‟s satisfaction of the employees in Binh Dinh PISICO Corporation Journal of Science, (1), 113-120 94 Vidal MES, Valle RS, Aragón BMI (2007) Antecedents of repatriates' job satisfaction and its influence on turnover intentions: Evidence from Spanish repatriated managers Journal of Business Research., 60: 1272-1281 Viswesvaran, C., Deshpande, S.P., & Joseph, J (1998) Job satisfaction as a function of top management support for ethical behavior Journal of Business Ethics, 17(4), 365371 http://dx.doi.org/10.1023/A:1017956516324 Vroom, V.H (1964), Work and Motivation, John Wiley & Sons, New York www.die.gov.tr.16/01/2008 Willem A, Buelens M, Jonghe ID (2007) Impact of organizational structure on nurses‟ job satisfaction: A questionnaire survey International Journal of Nursing Studies., 44: 1011-1020 B UNPUBLICED THESES Bui Thi Hien, 2010 Factors influencing job satisfaction of employee – a study of Joint Stock Company investment and development and traffic construction of 208 Charles G Andrews, 2003 comparative analysis of management and employee job satisfaction and policy perceptions (doctoral thesis) University of north Texas Duong Cong Vi, 2013 factors influencing job satisfaction of employees working at the people committee‟s binh gia district, lang son province (master‟s thesis) Faculty of the Graduate Program of the College of Business and Accountancy Central Philippine University, Philippines in colemployeesation with Thai Nguyen University, Vietnam Le Quang Thach (2012) Factors influencing job satisfaction of workers in joint stock company industrial wood Truong Thanh (master‟s thesis) Nha Trang university Nezaam luddy, 2005 Job satisfaction amongst employees at a public health institution in the western cape (mini-thesis) Faculty of Economic and Management Science, University of the Western Cape 95 APPENDICES APPENDIX 1: DESCRIPTIVE STATISTICS Descriptive Statistics Natural of work N Minimum Maximum 367 1.00 5.00 current job is challenge Mean 3.5259 Std Deviation 74200 your choice in current job 367 1.00 5.00 3.4441 89718 your skills in current job 367 1.00 5.00 3.7084 70479 your job is convenient 367 1.00 5.00 3.7657 68920 your current is appropriate 367 2.00 5.00 3.8638 63845 current job is challenge 367 1.00 5.00 3.7411 75460 Mean 3.4986 Std Deviation 83919 Valid N (listwise) 367 Mean : 3.674 Descriptive Statistics Salary 2.Salary from company is clear and fair N Minimum Maximum 367 1.00 5.00 3.Salary was paid in full and on time 367 1.00 5.00 3.8501 72194 4.Bonus policy is fair and satisfactory 367 1.00 5.00 3.5150 84877 5.The company allowance is reasonable 367 1.00 5.00 3.6567 68700 Valid N (listwise) 367 Mean: 3.630 96 Descriptive Statistics Opportunity for advancement 1.Your skills can meet the job N Minimum Maximum 367 1.00 5.00 Mean 3.7466 Std Deviation 67231 requirements 2.You have the opportunity to be 367 1.00 5.00 3.5777 78500 367 1.00 5.00 3.6213 81374 367 1.00 5.00 3.2398 90067 367 30 5.00 3.2842 87567 367 2.00 5.00 3.8147 62594 trained and to improve knowledge 3.Company give a chance for you to be trained and improve knowledge 4.You have a lot of chance of advancement when you work at here 5.Company has a fair policy to train employees 6.The company gives the process, specific instructions for every employee Valid N (listwise) 367 Mean: 3.5470 97 Descriptive Statistics Supervisors 1.Supervisor cares about you N Minimum Maximum 367 1.00 5.00 Mean 3.6730 Std Deviation 69887 2.Supervisor listen to your opinions 367 1.00 5.00 3.6376 74070 3.Supervisor gives good suggestions 367 1.00 5.00 3.7847 64443 4.You easily communicate and 367 1.00 5.00 3.7929 69789 367 1.00 5.00 3.6485 70837 6.Supervisor iscapabilities 367 1.00 5.00 3.8065 69200 Valid N (listwise) 367 Mean: 3.723 Mean 4.0163 Std Deviation 43073 interface with your supervisor 5.you receive equally treatment from supervisor Descriptive Statistics Co-workers 1.Co-worker is willing to help you N Minimum Maximum 367 2.00 5.00 2.Co-worker is friendly 367 2.00 5.00 4.0518 44970 3.You can learn from your co- 367 2.00 5.00 4.0218 52746 367 2.00 5.00 3.9591 60143 workers 4.Co-worker coordinates with you well Valid N (listwise) 367 Mean: 4.012 98 Descriptive Statistics Working condition N Minimum Maximum 367 1.00 5.00 1.Personal protect equipment was Mean 3.9183 Std Deviation 67659 provided 2.Workplace is sate 367 1.00 5.00 3.8501 68703 3.Workplace is clear and convenient 367 1.00 5.00 3.6076 82565 4.You are satisfy with the work-time 367 2.00 5.00 3.9319 49394 Valid N (listwise) 367 Mean: 3.826 Descriptive Statistics Financial reward 2.Trade union has a good policy 3.Welfare of company is clear and N Minimum Maximum 367 1.00 5.00 Mean 3.8474 Std Deviation 64752 367 1.00 5.00 3.7684 63010 367 1.00 5.00 3.7738 62775 adequate 4.Welfare policy of the company expressed the consideration of company to employees Valid N (listwise) 367 Mean: 3.796 99 APPENDIX 2: QUESTIONNAIRE DESIGN Elements Variables Abbrevation Demographic data Age Gender Individual Education information Marital status Income Year of working experience Job satisfaction of employees satisfied with current job JS1 satisfied with current income JS2 Examine job satisfied with current opportunity for advancement JS3 satisfaction of satisfied with current supervisor, satisfied with co- employees based worker JS4 on the aspects and satisfied with current working condition, JS5 the characteristic satisfied with current welfare or reward, JS6 of work satisfied with current employee-evaluated method of company JS7 totally satisfied with current job JS8 Factors influence job satisfaction Natural of work Salary understanding clearly current job NW1 current job is simple or easy NW2 current job is creative NW3 current job is a challenge NW4 your choice in current job NW5 your skills in current job NW6 your job is convenient NW7 your current work is appropriate NW8 Salary commensurate with your ability SA1 Salary from company is clear and fair SA2 Salary was paid in full and on time SA3 Bonus policy is fair and satisfactory SA4 100 The company allowance is reasonable Your skills can meet the job requirements SA5 OFA1 You have the opportunity to be trained and to improve knowledge OFA2 Company give a chance for you to be trained and Opportunity for improve knowledge advancement You have a lot of chance of advancement when you OFA3 work at here OFA4 Company has a fair policy to train employees OFA5 The company gives the process, specific instructions for every employee Supervisors OFA6 Supervisor cares about you SU1 Supervisor listen to your opinions SU2 Supervisor gives good suggestions SU3 You easily communicate and interface with your supervisor SU4 you receive equally treatment from supervisor SU5 Supervisor iscapabilities SU6 Co-worker is willing to help you CoW1 Co-worker is friendly CoW2 You can learn from your co-workers CoW3 Co-worker coordinates with you well CoW4 Your co-worker is reliable CoW5 Personal protect equipment was provided WC1 Working Workplace is safe WC2 condition Workplace is clear and convenient WC3 You are satisfy with the work-time WC4 Companies implements all of insurances for employees FR1 Trade union has a good policy FR2 Welfare of company is clear and adequate FR3 Co-workers Financial reward Welfare policy of the company expressed the consideration of company to employees FR4 101 APPENDIX 2: ORGANIZATION STRUCTURE DIAGRAM OF THAI NGUYEN IRON & STEEL 102 Shareholders' assenbly of TISCO Control Committee Board of Directiors of TISCO Bureau Office General Director of TISCO Subsidiaries Jointed Companies Thai Nguyen Iron & Steel Transportation JSC Department of Personel Organization Energy/ Enterpries Iron & Steeel Machanic JSC Department of Finance & Accounting Phan Me Coal Mine Gang Sang Steel Making Rolling JSC Department of panning & Marketing Tuyen Quang steel Rolling & Iron Ore Mine Thai Trung Rolling Mill JSC Nguom Chang (Cao Bang) Iron Ore Mine Phu Tho Steel Alloy JSC Department of Material Import & Export Thai Nguyen Iron & Steel Ally JSC Department of Development & Investment Trai Cau Iron Ore Mine Department of Technique Phu Tho Silicco Mine Department of Product Quality and Quantity Control TienBo Iron Ore Mine Department of Design & Equipment Management Coking Plant Tuyen Quang Mineral Exploitation & Processing JSC Department of Technical Safety & Environment Cast Iron Making Factory Iron & Steel Auto Repairation JSC Cast Iron Making Factory Department of Security LuuXa Steel Making Factory Inspection committee 2nd stage Project Management Board Thai Nguyen Steel Rolling Factory Railway Transport Enterprise Branch in Ha Noi Brach in Quang Ninh Branch in Thanh Hoa Branch in Nghe An Branch in Da Nang, Service Center Thai Nguyen refractory joint stock group companyMerallurgical Lime Prouction JSC 103 APPENDIX 4: QUESTIONNAIRE This questionnaire is designed to collect data for the purpose of completing the doctor thesis All the information will be kept confidently Please, kindly fill in the questions bellows: Part I: Personal information of the respondents 1.Full name: ……………………………… Age: Marital status: - Gender:  Male  Female  18- 25  26- 35  36- 45  45- 60  Single  Married Working areas: Work position:  Worker  Office employee  Manager Year of working experience:  less than years  6-10  11-15  Over 16 years Educational level:  After graduated worker  College worker  General worker  Technology worker Coefficients salary:… Coefficient positions…… Allowance:………….………(đ) - Income per month (million VND):):  1,500,000 – 2,000,000  3,000,000 – 4,999,999  5,000,000 – 7,999,999  ≥ 8,000,000 104 Part II: Evaluation Please read the following statements and check () in the blank that best indicates the extent of your agreement or disagreement Strongly disagree Disagree Moderate Agree Strongly agree Natural of work You understand clearly current job      Your current job is simple or easy      Your current job is creative      Your current job is challenge      You may decide to work some issues in their abilities      You can use a lot of different skills at work      The work that you are doing matches with your capabilities      The work that you are doing is appropriate      Salary The salary that you get from TISCO commensurate with the your capacity and contribution      The salary that you get from TISCO is clear and fair      The salary that you get from TISCO was paid in full and on time      Bonus policy is fair and satisfactory      The company allowance is reasonable      Opportunity for advancement The skills that you was trained can meet the job requirements You may have the opportunity to be trained and to improve knowledge           Company always give a chance for you to be trained and improve knowledge      You may have a lot of chance of advancement when you work at here      Company has a fair policy to train employees      105 The company gives the process, specific instructions for every employee Supervisor      Supervisor cares about you      Supervisor listen to your opinions      Supervisor gives good suggestions      You easily communicate and interface with your supervisor      You receive equally treatment from supervisor      Supervisor is capable of executive      Co-worker Co-worker is willing to help you      Co-worker is friendly and generous      You may learn experiences from your co-workers      Co-worker coordinates with you well      Your co-worker is reliable      Working condition Personal protect equipment that was provided to you is adequate      Workplace is sate      Workplace is clear and convenient      You satisfied with the work-time      Financial Reward Companies implements all of insurances for employees      Trade union always cares and support you when you face with some problems Welfare of company is clear and adequate      Welfare policy of the company expressed the consideration of company to employees Job satisfaction of employees      You satisfied with current job      You satisfied with current salary           106 You satisfied with current opportunity for advancement      You satisfied with current supervisor      You satisfied withco-worker      You satisfied with current working condition      You satisfied with current financial reward      You totally satisfied with current job      Thank you very much for your great cooperation! ... research to determine factors influencing job satisfaction of employees and explain the relationship existing among them Established in 1959, Thai Nguyen Iron and Steel joint Stock Corporation (TISCO),... job satisfaction of employees in TISCO? 1.2 Objectives General objectives This study aims to determine the job satisfaction of employees working in Thai Nguyen Iron and Steel Joint Stock Corporation. .. employee satisfaction with their job in Thai Nguyen Iron and Steel joint stock Corporation TISCO is determined Even when the satisfaction of employees is medium level and high, some other aspects of