Factors affecting work motivation of employees at operations division of fe credit finance limited company

RESEARCH PROJECT (BMBR5103) FACTORS AFFECTING WORK MOTIVATION OF EMPLOYEES AT OPERATIONS DIVISION OF FE CREDIT FINANCE LIMITED COMPANY STUDENT’S FULL NAME STUDENT ID INTAKE ADVISOR’S NAME & TITLE : HONG VAN ANH : CGS000064966 : MARCH 2016 : DR BUI PHI HUNG August 2017 Advisor’s assessment Advisor’s signature ACKNOWLEDGEMENTS I assure the project "Factors affecting work motivation of employees at Operations Division of FE CREDIT Finance Limited Company" is my own research The data and content presented in this project is completely valid and comply with regulations on protection of intellectual property rights The research results presented in this project are not reproduced of any dissertation and have not been presented or published in any other study before I take full responsibility for my research topic Ho Chi Minh City, Aug 6th 2017 Author of project Hong Van Anh THANK-YOU First, I would like to sincerely thank the teachers of Hutech and Open University Malaysia for teaching and imparting to me the precious knowledge that underlies the implementation of this project Second, I would like to thank my instructor Dr Bui Phi Hung who has guided me through the writing process, taken the time to read and comment my drafts and shared his knowledge within the research field Finally, I would like to thank all the interviewees for answering all my questions, my dear colleagues for all the sound advices and my beloved family for always listening and supporting me Many thanks to you all! Table of Contents Acknowledgements Thank-you List of charts List of tables Abstract Charter Introduction 10 1.1 Background 10 1.2 Problem statement 10 1.3 Purpose of the study 11 1.4 Contribution of the study 11 1.5 Objective and scope of the study 12 1.6 Research method 12 1.7 Limitations of the study 12 1.8 Dissertation structure overview 13 Charter Literature review and general study 13 2.1 Definition of work motivation 13 2.2 Theory on work motivation 14 2.3 General study 22 2.4 Research model 26 2.5 Components and hypothesis 27 Charter Company background and research methodology 29 3.1 FE CREDIT in brief 29 3.2 Research methodology 40 Charter Research result and discussion 49 4.1 Sample descriptives 49 4.2 Cronbach’s Alpha coefficient analysis 51 4.3 EFA analysis 51 4.4 Regression analysis 55 4.5 Statistics descriptives 56 Charter Conclusion and recommendation 59 5.1 Findings 59 5.2 Recommendations 60 5.3 Further research directions 65 References 66 Appendix 69 List of charts Chart 2.1: Maslow’s hierarchy of needs 16 Chart 2.2: Herzberg two-factor theory 17 Chart 2.3: Alderfer’s ERG theory 19 Chart 2.4: McGregor’s theory X and theory Y 20 Chart 2.5: McClelland’s acquired needs 21 Chart 2.8: Proposed research model 27 Chart 3.1: Organizational structure of FE CREDIT 35 Chart 3.2: Business structure of FE CREDIT 36 Chart 3.3: Hierarchy of management 37 Chart 3.4: Organizational structure of Operations Division 39 Chart 3.5: Research process (source: the author) 40 List of tables Table 2.6: Article or review published on motivation 24 Table 2.7: Motivation dimensions 26 Table 3.6: Scale and observational variables 45 Table 4.1: Survey structure 50 Table 4.2: KMO measure 52 Table 4.3: Rotated component matrix 54 Table 4.4: Model summary 55 Table 4.5: Regression 56 Table 4.6: Descriptive Statistics 57 Abstract Research on motivation has attracted academic and corporate entities over the last two decades Motivation directly links to individual performance that gain to organization performance and as a catalyzer for all individual employees working for an organization to enhance their working performance or to complete task in much better way than they usually This research on work motivation was conducted in 2017, with a sample size of 200 employees who are working at the Operations Division of Finance Limited Company FE CREDIT The research model included seven independent variables: Base salary; Training and promotion; Relationship towards leaders; Relationship towards co-workers; Working conditions; Work itself; Benefits and reward The study has identified seven factors that affect the work motivation of employees The study also found there are differences in perception and evaluation of factors affecting work motivation of different groups of employees CHARTER – INTRODUCTION 1.1 Background The process of globalization and international economic integration has been happening fast and drastically and became the trend of development of the world economy In that context, economic development is one of the top strategies and people are an indispensable resource and play a very important role in that development To increase human productivity in the organization, the work motivation is very important Any organization would like its employees to fulfill their work with high efficiency to contribute to the successful accomplishment of their goals However, in the team there are always enthusiastic employees with high performance results but there are also ones who are working in sluggishness, lack of interest, indifference to work, even not fulfilling their assigned tasks which lead to low performance results The economists have pointed out the answer to that problem is the work motivation of every individual employee The motivation to work is considered as a strong lever which motivates the employees to work actively, thereby contribute to improve the efficiency of business production of the company 1.2 Problem statement Nowadays, with the rapid development of consumer credit trends in Vietnam, the human resources of finance companies have rapidly increased in recent years However, the inspiration and motivation for these employees are not as good as the leaders’ expectation There is still a large majority of employees who are passive and have not achieved good results in their assigned work Especially, towards FE CREDIT, currently the market leader in finance industry, with the rapidly expanding human resources and the increasingly intense competition from competitors, pushing motivation for employees is more important than ever Facing the situation of limitations in creating work motivations at FE CREDIT, especially FE CREDIT's Operations Division which is one of the key blocks of the 10 Reliability Statistics Cronbach's Alpha N of Items 861 Item-Total Statistics Scale Mean if Item Scale Variance if Deleted Item Deleted Corrected Item- Cronbach's Alpha Total Correlation if Item Deleted Promotion1 8.68 10.793 726 815 Promotion2 8.71 10.239 722 816 Promotion3 8.70 11.067 664 839 Promotion4 8.62 10.769 717 818 Reliability [DataSet1] Scale: ALL VARIABLES Case Processing Summary N Cases Valid a Excluded Total % 200 100.0 0 200 100.0 a Listwise deletion based on all variables in the procedure Reliability Statistics Cronbach's Alpha N of Items 652 Item-Total Statistics Scale Mean if Item Scale Variance if Deleted Item Deleted Corrected Item- Cronbach's Alpha Total Correlation if Item Deleted Motivation1 9.49 5.708 519 538 Motivation2 9.78 5.426 588 493 Motivation3 9.84 5.117 223 823 Motivation4 9.73 5.796 605 506 82 Reliability [DataSet1] Scale: ALL VARIABLES Case Processing Summary N Cases Valid % 200 100.0 0 200 100.0 a Excluded Total a Listwise deletion based on all variables in the procedure Reliability Statistics Cronbach's Alpha N of Items 823 Item-Total Statistics Scale Mean if Item Scale Variance if Deleted Item Deleted Corrected Item- Cronbach's Alpha Total Correlation if Item Deleted Motivation1 6.39 2.429 660 776 Motivation2 6.68 2.259 731 701 Motivation4 6.62 2.738 652 784 Factor Analysis [DataSet1] KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy Bartlett's Test of Sphericity 821 Approx Chi-Square 3095.312 df 378 Sig .000 83 Communalities Initial Extraction Conditions1 1.000 777 Conditions2 1.000 736 Conditions3 1.000 761 Conditions4 1.000 760 Salary1 1.000 610 Salary2 1.000 782 Salary3 1.000 753 Salary4 1.000 704 Bene_rewar1 1.000 793 Bene_rewar2 1.000 622 Bene_rewar3 1.000 666 Bene_rewar4 1.000 740 Co_workers1 1.000 633 Co_workers2 1.000 725 Co_workers3 1.000 707 Co_workers4 1.000 825 Leaders1 1.000 708 Leaders2 1.000 694 Leaders3 1.000 715 Leaders4 1.000 682 Work1 1.000 542 Work2 1.000 739 Work3 1.000 537 Work4 1.000 768 Promotion1 1.000 720 Promotion2 1.000 716 Promotion3 1.000 677 Promotion4 1.000 756 Extraction Method: Principal Component Analysis 84 Total Variance Explained Extraction Sums of Squared Rotation Sums of Squared Loadings Loadings Initial Eigenvalues Component Total % of Cumulative Variance % Total % of Cumulative Variance % % of Total Variance Cumulative % 7.621 27.219 27.219 7.621 27.219 27.219 3.046 10.878 10.878 3.252 11.613 38.831 3.252 11.613 38.831 2.969 10.605 21.483 2.523 9.009 47.841 2.523 9.009 47.841 2.867 10.238 31.721 2.001 7.145 54.986 2.001 7.145 54.986 2.826 10.092 41.813 1.708 6.099 61.085 1.708 6.099 61.085 2.806 10.021 51.834 1.519 5.424 66.510 1.519 5.424 66.510 2.725 9.732 61.566 1.223 4.369 70.878 1.223 4.369 70.878 2.608 9.313 70.878 846 3.022 73.900 683 2.441 76.341 10 630 2.249 78.590 11 607 2.168 80.758 12 522 1.863 82.621 13 500 1.787 84.408 14 477 1.705 86.113 15 457 1.631 87.744 16 421 1.505 89.249 17 387 1.380 90.630 18 334 1.193 91.822 19 321 1.146 92.968 20 289 1.034 94.001 21 267 955 94.956 22 256 914 95.870 23 248 884 96.754 24 227 812 97.566 25 217 774 98.340 26 179 638 98.977 27 158 565 99.543 28 128 457 100.000 85 Total Variance Explained Extraction Sums of Squared Rotation Sums of Squared Loadings Loadings Initial Eigenvalues Component Total % of Cumulative Variance % Total % of Cumulative Variance % % of Total Variance Cumulative % 7.621 27.219 27.219 7.621 27.219 27.219 3.046 10.878 10.878 3.252 11.613 38.831 3.252 11.613 38.831 2.969 10.605 21.483 2.523 9.009 47.841 2.523 9.009 47.841 2.867 10.238 31.721 2.001 7.145 54.986 2.001 7.145 54.986 2.826 10.092 41.813 1.708 6.099 61.085 1.708 6.099 61.085 2.806 10.021 51.834 1.519 5.424 66.510 1.519 5.424 66.510 2.725 9.732 61.566 1.223 4.369 70.878 1.223 4.369 70.878 2.608 9.313 70.878 846 3.022 73.900 683 2.441 76.341 10 630 2.249 78.590 11 607 2.168 80.758 12 522 1.863 82.621 13 500 1.787 84.408 14 477 1.705 86.113 15 457 1.631 87.744 16 421 1.505 89.249 17 387 1.380 90.630 18 334 1.193 91.822 19 321 1.146 92.968 20 289 1.034 94.001 21 267 955 94.956 22 256 914 95.870 23 248 884 96.754 24 227 812 97.566 25 217 774 98.340 26 179 638 98.977 27 158 565 99.543 Extraction Method: Principal Component Analysis 86 Component Matrix a Component Promotion1 713 -.448 Promotion2 712 -.393 Conditions2 687 Promotion3 679 Conditions3 664 Promotion4 652 Co_workers3 629 Co_workers1 609 Conditions4 592 Co_workers2 584 Conditions1 579 Co_workers4 567 Leaders4 527 -.388 Leaders1 519 -.444 Work3 419 Salary4 319 644 Salary3 455 599 Salary2 368 553 Bene_rewar2 378 519 Salary1 362 511 Leaders3 411 -.499 Bene_rewar3 395 471 331 Bene_rewar1 432 454 353 396 Bene_rewar4 384 446 341 430 Leaders2 410 -.434 Work4 369 634 Work2 416 620 Work1 335 521 -.411 -.444 -.439 -.522 -.354 -.370 -.472 -.312 -.310 -.366 -.540 -.325 304 -.474 320 386 379 313 -.305 480 304 345 328 301 343 343 -.324 Extraction Method: Principal Component Analysis a components extracted Rotated Component Matrix 87 a Component Conditions1 850 Conditions4 836 Conditions3 801 Conditions2 743 Salary2 870 Salary3 820 Salary4 808 Salary1 756 Leaders2 816 Leaders3 788 Leaders1 774 Leaders4 772 Bene_rewar1 866 Bene_rewar4 841 Bene_rewar3 779 Bene_rewar2 732 Co_workers4 874 Co_workers2 786 Co_workers3 760 Co_workers1 673 Promotion4 796 Promotion1 742 Promotion3 721 Promotion2 711 Work4 856 Work2 807 Work3 684 Work1 677 Extraction Method: Principal Component Analysis Rotation Method: Varimax with Kaiser Normalization a Rotation converged in iterations 88 Component Transformation Matrix Component 456 288 357 296 422 477 298 -.120 649 -.497 526 001 -.148 -.135 108 -.358 -.264 392 -.396 -.016 693 -.677 -.259 362 492 313 -.055 009 -.394 545 344 -.322 -.310 -.033 478 234 043 511 368 -.627 -.063 -.387 312 047 214 020 278 -.862 185 Extraction Method: Principal Component Analysis Rotation Method: Varimax with Kaiser Normalization Factor Analysis [DataSet1] KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy Bartlett's Test of Sphericity 707 Approx Chi-Square 219.727 df Sig .000 Communalities Initial Extraction Motivation1 1.000 716 Motivation2 1.000 792 Motivation4 1.000 712 Extraction Method: Principal Component Analysis Total Variance Explained Initial Eigenvalues Compon ent Total % of Variance Extraction Sums of Squared Loadings Cumulative % 2.220 73.989 73.989 457 15.221 89.209 324 10.791 100.000 Extraction Method: Principal Component Analysis 89 Total 2.220 % of Variance 73.989 Cumulative % 73.989 Component Matrix a Component Motivation2 890 Motivation1 846 Motivation4 844 Extraction Method: Principal Component Analysis a components extracted Correlations [DataSet1] Correlations Conditions Salary Bene_rewar Co_workers Leaders Conditions Pearson Correlation Sig (2-tailed) N Salary Pearson Correlation ar rs Leaders ** 311 ** 531 ** 564 ** 000 200 200 200 200 200 200 200 200 ** ** 026 045 000 000 714 530 001 000 200 200 200 200 200 200 200 ** ** 041 000 564 001 000 000 200 200 200 200 200 200 ** 213 202 ** 304 000 N 200 200 373 ** 293 ** 304 255 ** Sig (2-tailed) 000 000 000 N 200 200 200 ** 026 041 000 714 564 Sig (2-tailed) 305 000 004 Correlation ** 000 Sig (2-tailed) Pearson 373 000 200 Correlation ** 000 N Co_worke Pearson 202 004 002 Correlation ** Promotion Motivation 002 Sig (2-tailed) Bene_rew Pearson 213 Work 305 90 293 255 366 ** 241 ** 161 * 242 264 491 ** ** ** 461 458 566 ** ** ** 000 023 000 000 200 200 200 200 200 ** 366 000 194 ** 006 440 ** 000 433 ** 000 N Work 200 200 ** 045 Sig (2-tailed) 000 530 001 023 006 N 200 200 200 200 200 Pearson 311 Correlation Promotion Pearson 531 Correlation ** 242 200 241 ** 264 200 ** 161 ** 491 * ** 200 200 ** 194 440 ** 358 000 000 N 200 200 200 200 200 200 ** 458 ** 566 ** 433 ** 446 ** 200 ** 722 000 000 000 000 000 000 N 200 200 200 200 200 200 200 * Correlation is significant at the 0.05 level (2-tailed) Regression [DataSet1] Variables Entered/Removed b Variables Model Variables Entered Promotion, Salary, Removed Method Work, Bene_rewar, Enter Leaders, Conditions, Co_workers a a All requested variables entered b Dependent Variable: Motivation Model Summary Std Error of the R R Square 862 a 743 Adjusted R Square 733 91 Estimate 38926 ** 200 000 (2-tailed) .722 000 Sig (2-tailed) ** Correlation is significant at the 0.01 level 200 000 461 ** 200 000 ** 446 200 001 564 ** 000 000 Correlation 358 200 000 Sig (2-tailed) Motivation Pearson Model ** 200 200 Variables Entered/Removed b Variables Model Variables Entered Promotion, Salary, Removed Method Work, Bene_rewar, Enter Leaders, Conditions, Co_workers a a Predictors: (Constant), Promotion, Salary, Work, Bene_rewar, Leaders, Conditions, Co_workers b ANOVA Model Sum of Squares df Mean Square Regression 84.041 12.006 Residual 29.092 192 152 113.133 199 Total F Sig 79.236 000 a a Predictors: (Constant), Promotion, Salary, Work, Bene_rewar, Leaders, Conditions, Co_workers b Dependent Variable: Motivation Coefficients Model Unstandardized Standardized Coefficients Coefficients B Std Error Beta a Collinearity Statistics t Sig Tolerance VIF (Constant) -.559 218 -2.569 011 Conditions 107 034 142 3.187 002 676 1.480 Salary 172 029 237 5.908 000 830 1.205 Bene_rewar 206 046 180 4.457 000 823 1.215 Co_workers 165 049 150 3.369 001 672 1.488 Leaders 142 044 135 3.196 002 749 1.334 Work 173 040 174 4.298 000 818 1.222 Promotion 245 035 346 6.907 000 534 1.874 a Dependent Variable: Motivation 92 Collinearity Diagnostics a Variance Proportions Condition Model Dimension Eigenvalue Index Bene_ Co_wor (Constant) Conditions Salary rewar kers Leaders Work Promotion 7.678 1.000 00 00 00 00 00 00 00 00 090 9.225 01 03 28 03 00 00 05 27 072 10.308 01 01 16 01 00 00 41 24 052 12.188 02 01 29 00 05 14 36 05 041 13.653 00 91 00 03 01 02 00 21 033 15.224 00 03 21 70 00 13 11 02 022 18.656 01 00 03 04 88 26 04 03 012 25.740 95 01 03 18 05 44 03 18 a Dependent Variable: Motivation ONEWAY Motivation BY Sex /STATISTICS HOMOGENEITY /MISSING ANALYSIS Oneway [DataSet1] Test of Homogeneity of Variances Motivation Levene Statistic df1 5.825 df2 Sig 198 017 ANOVA Motivation Sum of Squares Between Groups df Mean Square 1.508 1.508 Within Groups 111.625 198 564 Total 113.133 199 ONEWAY Motivation BY Positions /STATISTICS HOMOGENEITY /MISSING ANALYSIS 93 F Sig 2.675 104 Oneway [DataSet1] Test of Homogeneity of Variances Motivation Levene Statistic df1 3.692 df2 Sig 198 056 ANOVA Motivation Sum of Squares Between Groups df Mean Square 669 669 Within Groups 112.463 198 568 Total 113.133 199 F Sig 1.179 279 ONEWAY Motivation BY Age /STATISTICS HOMOGENEITY /MISSING ANALYSIS Oneway [DataSet1] Test of Homogeneity of Variances Motivation Levene Statistic df1 5.924 df2 Sig 197 003 ANOVA Motivation Sum of Squares Between Groups df Mean Square 2.999 1.500 Within Groups 110.133 197 559 Total 113.133 199 ONEWAY Motivation BY Years_worked /STATISTICS HOMOGENEITY /MISSING ANALYSIS 94 F Sig 2.682 071 Oneway [DataSet1] Test of Homogeneity of Variances Motivation Levene Statistic df1 5.014 df2 Sig 197 008 ANOVA Motivation Sum of Squares Between Groups df Mean Square 2.455 1.228 Within Groups 110.677 197 562 Total 113.133 199 F Sig 2.185 115 ONEWAY Motivation BY Edu /STATISTICS HOMOGENEITY /MISSING ANALYSIS Oneway [DataSet1] Test of Homogeneity of Variances Motivation Levene Statistic df1 7.759 df2 Sig 198 006 ANOVA Motivation Sum of Squares Between Groups df Mean Square 1.658 1.658 Within Groups 111.475 198 563 Total 113.133 199 ONEWAY Motivation BY Income /STATISTICS HOMOGENEITY /MISSING ANALYSIS Oneway [DataSet1] 95 F Sig 2.944 088 Test of Homogeneity of Variances Motivation Levene Statistic 3.250 df1 df2 Sig 196 023 ANOVA Motivation Sum of Squares Between Groups df Mean Square 4.702 1.567 Within Groups 108.431 196 553 Total 113.133 199 96 F Sig 2.833 039 ... correlated with the work motivation of employees at FE CREDIT Operations Division 27 + Work: Work itself is positively correlated with the work motivation of employees at FE CREDIT Operations Division. .. the factors that significantly affect the motivation of employees at the Operations Division of FE CREDIT Finance Limited Company + Quantify the impact of these factors on the motivation of employees. .. correlated with the work motivation of employees at FE CREDIT Operations Divison + Promotion: Training and promotion is positively correlated with the work motivation of employees at FE CREDIT Operations