Job satisfaction of employees at trung nguyen coffee

RESEARCH PROJECT (BMBR5103) JOB SATISFACTION OF EMPLOYEES AT TRUNG NGUYEN COFFEE STUDENT’S FULL NAME : NGUYEN NGOC DUC STUDENT’S ID : CGS00019376 INTAKE : MARCH 2015 ADVISOR’S NAME AND TITLE : NGUYEN THE KHAI, DBA Ho Chi Minh City, July 2016 ADVISOR’S ASSESSMENT Advisor’s signature ACKNOWLEDMENTS Firstly and foremost, I would like to express my especial thanks of gratitude to my advisor, NGUYEN THE KHAI DBA for his elaborate instructions, invaluable guidance as well as periodical censor during the course within the time of doing this research project Secondly, I’m also thankful to a large number of employees who are working at Trung Nguyen coffee and a district manager, Mr Thieu Quang Thanh All of them helped me finish the survey and particularly, Mr Thanh shared his understanding and experience with me as well as some ideas to solve the current problem at Trung Nguyen coffee Finally, most especially to my wife, who has created the most favorable environment for me within the course and during the time of completing this project Thank you very much, HCMC, July 2016 Nguyen Ngoc Duc CONTENTS ABTRACT CHAPTER I: INTRODUCTION About Trung Nguyen group 1.1 History 1.2 Scope of business 1.3 Development strategy and investment 1.4 Vision, Missions and Core values 1.5 Contact 1.6 Organization chart Problem statement Research objectives Research scope Significance of the research Limitation of the research CHAPTER II LITERATURE REVIEW Definitions of job satisfaction The causes of job satisfaction Theories of job satisfaction 11 3.1 Maslow’s hierarchy of needs (1943) 11 3.2 Herzberg's Hygiene and Motivational Factors (1966) 13 3.3 McGregor’s Theory X and Theory Y (1957) 14 3.4 ERG theory of Alderfer (1969) 17 3.5 Equity theory of John Stacey Adams (1963) 18 3.6 Theoretical achievements of the McClelland’s (1988) 20 Research models 21 Definition of factors 22 5.1 Overall Job Satisfaction 22 5.2 Pay Satisfaction Questionnaire 22 5.3 Supervisor Support 23 5.4 Empowerment at Work Scale 23 5.5 Perceived Importance of Workplace Values 23 CHAPTER III: RESEARCH METHODOLOGY 25 Designing research 25 Technical analysis of statistical data 28 2.1 Testing the reliability of the scales 28 2.2 Linear regression analysis and correlation coefficient 29 CHAPTER IV: RESULTS 30 Cronbachs’ Alpha 30 Calculate the Cronbach’s Alpha 30 2.1 Job Satisfaction (JS) 30 2.2 Pay Satisfaction (PS) 31 2.3 Supervisor Support (SS) 31 2.4 Empowerment at Work (EAT) 31 2.5 Perceived Importance of Workplace Values (PWV) 32 Calculate the descriptive data: Max, Min, Mean, Standard deviation 32 Correlations among the variables 32 Hypotheses testing result 33 5.1 Hypothesis proposed (H1) 34 5.2 Hypothesis proposed (H2) 35 5.3 Hypothesis proposed (H3) 36 5.4 Hypothesis proposed (H4) 37 CHAPTER IV: CONCLUSION AND RECOMMENDATION 38 Conclusion 38 Recommendation 39 Limitation of the research 40 REFERENCES 41 APPENDIX 44 FIGURES AND TABLES Figures: Figure 1: Southwest Asia visited coffee chains by Financial Times Figure 2: Organization chart of Trung Nguyen group Figure Maslow’s hierarchy of needs 11 Figure 4: Maslow’s and Herzberg’s Ideas Compared 13 Figure 5: Motivational theory X and Y 15 Figure 6: Alderfer's ERG theory 17 Figure 7: John Stacey Adams' equity theory 19 Figure 8:Theoretical Achievement of McClelland's 20 Figure 9: Research Model 21 Tables: Table 1: Scale of Pay Satisfaction Questionnaire 26 Table 2: Scale of Supervisor Support 26 Table 3: Scale of Empowerment at Work 27 Table 4: Scale of Perceived Importance of Workplace Values 27 Table 5: Scale of Overall Job Satisfaction 28 Table 6: Cronbach’s Alpha – Internal consistency 30 Table 7: Conbach’s Alpha of Job Satisfaction 30 Table 8: Model summary of H1 31 Table 9: Model summary of H2 31 Table 10: Model summary of H3 31 Table 11: Model summary of H4 32 Table 12: Descriptive Statistics 32 Table 13: Correlation 33 Table 14: Model summary of H1 34 Table 15: Coefficients of H1 34 Table 16: Model summary of H2 35 Table 17: Coefficients of H2 35 Table 18: Model summary of H3 36 Table 19: Coefficients of H3 36 Table 20: Model summary of H4 37 Table 21: Coefficients of H4 37 LIST OF ABBREVIATIONS: JS Job Satisfaction PS Pay Satisfaction SS Supervisory Support EAT Empowerment at Work PWV Perceived Importance of Workplace Values H (1,2,…) Hypothesis (1,2,…) Sig Significant Std Deviation Standard Deviation CEO Chief Executive Officer L&D Learning and Development Business Research Methods T Page of 52 ABTRACT he purpose of this independent study is to examine the relationship of four variables (Pay Satisfaction, Supervisor Support, Empowerment at Work, Perceived Importance of Workplace Values) with Job Satisfaction, and the impact of these four factors on Job Satisfaction of employees at Trung Nguyen coffee The research analyzes whether or not there is a significant relationship between Job Satisfaction and four factors above The data used in this research was gathered from questionnaires sent to 270 employees in 15 stores of Trung Nguyen coffee The result showed that these four factors are significantly and positively related with Job Satisfaction It has big effect on Job Satisfaction because Job Satisfaction represents one of the most key challenges faced by all of the managers Employees are the most valuable resource for all organizations, the longer an employee works for a company the more valuable it becomes This study helps managers of Trung Nguyen group increase the satisfaction level on job of employees, points out contributions, limitations as well as maintain the good and qualified employees Key words: Job Satisfaction, Pay Satisfaction, Supervisor Support, Empowerment at Work, Perceived Importance of Workplace Values Student: Nguyen Ngoc Duc (ID:19376) Business Research Methods Page of 52 CHAPTER I: INTRODUCTION About Trung Nguyen group History Trung Nguyen is a business group involved in the production, processing and distribution of coffee The group was established in 1996 At first, it was a small brand of Vietnam, which located in Buon Me Thuot, Đak Lak province Ten years later, Trung Nguyen has become a powerful co-operation including Trung Nguyen Corporation JSC in Ho Chi Minh city; four branches in Ha Noi, Da Nang, Buon Me Thuot and Can Tho; four factories in Bac Giang, Muon Me Thuot, Binh Duong and Saigon; Trung Nguyen international Holding PTE LTD in Singapore and an representative office in Thailand (http://www.trungnguyen.com.vn/en/alo-trungnguyen-2/) Its founder and also CEO is Dang Le Nguyen Vu From a young brand of Vietnam, Trung Nguyen quickly builds the credibility and became the most familiar coffee brand to domestic and overseas consumers The businesses are producing and offering coffee, selling tea and coffee and they also franchising their brand All products of Trung Nguyen have been exported to 60 countries around the world, including major Asian markets such as Japan and Singapore (http://congthongtinhvnclc.vn/pages/Doanh-nghiep-ct.aspx?id=437) At present, Trung Nguyen is the favorite coffee brand in Vietnam According to Financial Times’ survey on Southwest Asia most visited coffee chains in the last quarter of 2015 Trung Nguyen is the number one of top favorite coffee in Vietnam market Student: Nguyen Ngoc Duc (ID:19376) Business Research Methods Page of 52 Figure 1: Southwest Asia visited coffee chains by Financial Times (https://next.ft.com/content/189c23bc-055b-11e6-9b51-0fb5e65703ce) Scope of business v Producing, processing and trading of tea, coffee; v Franchising and distribution services, modern retail Development strategy and investment o On 06.16.1996, Dang Le Nguyen Vu established Trung Nguyen coffee company in Buon Ma Thuot - Vietnam's coffee capital o On 08/20/1998 Trung Nguyen coffee opened first store at 587 Nguyen Kiem, Phu Nhuan district, Ho Chi Minh city and served free coffee in 10 days It was a historic breakthrough to Saigoneses when it first had a free coffee shop Student: Nguyen Ngoc Duc (ID:19376) Business Research Methods Page 38 of 52 CHAPTER IV: CONCLUSION AND RECOMMENDATION This research examined how does Pay Satisfaction, Supervisor Support, Empowerment at Work and Perceived Importance of Workplace Values influence on Job Satisfaction of employees of Trung Nguyen coffee The study tested four hypotheses using data collected from Trung Nguyen coffee These four hypotheses examined there are positive relation between Pay Satisfaction, Supervisor Support, Empowerment at Work and Perceived Importance of Workplace Values with Job Satisfaction of employees at Trung Nguyen coffee Conclusion By using descriptive statistical analysis to find the mean, standard deviation of all variables to find out how Pay Satisfaction, Supervisor Support, Empowerment at Work and Perceived Importance of Workplace Values have influence on Job Satisfaction of employees of Trung Nguyen coffee The mean of these variables Pay Satisfaction, Supervisor Support, Empowerment at Work and Perceived Importance of Workplace Values is very high (from 3.69 ~ 3.90) much higher than the standard deviation (Std Deviation = 0.52 ~ 0.65) We can conclude that the Pay Satisfaction, Supervisor Support, Empowerment at Work and Perceived Importance of Workplace Values supported Job Satisfaction and can be applied in Trung Nguyen coffee Correlation analysis and multiple regressions were conducted to find out the impact of Pay Satisfaction, Supervisor Support, Empowerment at Work and Perceived Importance of Workplace Values on Job Satisfaction and test these four hypotheses The result showed that all of four hypotheses have positive relationship with the Job Satisfaction of employee at Trung Nguyen coffee The results are following: v Pay Satisfaction positively related to and supported Job Satisfaction of employees at Trung Nguyen coffee Student: Nguyen Ngoc Duc (ID:19376) Business Research Methods Page 39 of 52 v Supervisory Support positively related to and supported Job Satisfaction of employees at Trung Nguyen coffee v Empowerment at Work positively related to and supported Job Satisfaction of employees at Trung Nguyen coffee v Perceived Importance of Workplace Values positively related to and supported Job Satisfaction of employees at Trung Nguyen coffee In conclusion, the finding of this study explored that four independent variables Pay Satisfaction, Supervisor Support, Empowerment at Work and Perceived Importance of Workplace Values have significantly influence on Job Satisfaction of employees at Trung Nguyen coffee From there, directors and managers at Trung Nguyen group can find solutions to improve human practice within company to increase the level of job satisfaction of employees, because the more satisfied employees are, the more perceived value the company can receive Recommendation Pay Satisfaction is positively related to Job Satisfaction, it means that employees at Trung Nguyen coffee satisfied with their current salaries because the pay they receive is equivalent to the job which is not overload, stressful, or under-pressure So, they agree with their first salary on contract However, Trung Nguyen group should have a policy to review salary annually and use KPI to evaluate and reward employee’s performance, especially to Supervisors and Managers when they resigned labor contracts in order to retain these well trained and qualified leaders Supervisor Support is positively related to Job Satisfaction Therefore, L&D Manager should create opportunities to increase the interaction among employees in the coffee shop, offer separately for each position and job rotation in the workplace Furthermore, employees should have regular training courses, briefing from L&D Manager to improve employees’ skills and knowledge The more support an employee receives from his manager, the more efficiently he works Student: Nguyen Ngoc Duc (ID:19376) Business Research Methods Page 40 of 52 Empowerment at Work and Perceived Importance of Workplace Values have positive relationship with Job Satisfaction So, Trung Nguyen should maximize employees’ satisfaction and give them opportunities to show up themselves as well as to motivate and to promote employees in the work The store manager should set the rule and standards for personnel work clearly and maintain good working environment in the coffee shops Limitation of the research The research has some limitation due to short time only in weeks, and with a small number of employees, 270 people who are working at the coffee shops, not the total employees of Trung Nguyen group Besides, the results can’t reflect truly the nature of work because the survey is done with the working people, not the supervisors and store managers who resigned and left Trung Nguyen coffee Student: Nguyen Ngoc Duc (ID:19376) Business Research Methods Page 41 of 52 REFERENCES Alderfer, C (1969) An Empirical Test of a New Theory of Human Needs Organizational Behavior and Human Performance, vol 4, pp 142 - 175 Artz, B (2008) Fringe benefit and Job satisfaction University of Wiscosin Bao Nguyen (2016) Trung Nguyen Coffee: Working in a team as Leader & Member Teamwork, Trung Nguyen coffee case study, Jan 14 2016 Bellingham, R (2004) Job satisfaction survey Wellness Council of America Bless, C., Higson Smith, C., & Kagee, A (2006) Fundamentals of Social Research Methods: An African Perspective Juta and Company Limited Cooper, D., & Schindler, P Business research methodolygy 1998: McGrawHill Book Co D.S Possenriede and J Plantenga, Access to flexible work arrangements, working- time fit and job satisfaction, Discussion Paper Series/Tjalling C Koopmans Research Institute, 11(22) (2008), 1-26 Dionne, L (2000) Leader-member Exchange (LMX): Level of negotiating latitude and job satisfaction Universite de Moncton, Shippangan Durst, S., & DeSantis, V (1997) The determinants of job satisfaction among federal, state and local government employee State and Local Government Review Efere, P (2005 ) Motivation and Job satisfaction London: Trans-Atlantic College, London Ehlers, L (2003) The relationship of communication satisfaction job satisfaction and self-reported absenteeism Miami University G.N Powell and L.A Mainiero, Managerial decision making regarding alternative work arrangements, Journal of Occupational and Organizational Psychology, 72(1) (1999), 41-56 Gary Dessler (2013) Human Resource Management 13th McGraw- Hill/Irwin Student: Nguyen Ngoc Duc (ID:19376) Business Research Methods Page 42 of 52 Hackman, J., & Oldham, G (1974) The Job Diagnosis survey: An Instrument for the Diagnosis of Job and the Evaluation of Job redesign project Department of Administrative Sciences, Yale University Herzberg, F (1966) Work and the Nature of Man Cleveland: World Publishing Co Hill, S (2008) What make a good work colleague EzineArtical.com King, Nathan (1970) “Clarification and evaluation of the two-factor theory of job satisfaction” Psychological Bulletin, Vol 74 (1) 18-31 Kreitner, R., & Kinicki, A (2007) Organizational Behavior McGraw Hill Irwin Kumar, R (2005), Research Methodology – A step by step guide for Beginners, 2nd Edition, Sage Publication Limited MacCallum, R C., Widaman, K F., Zhang, S., & Hong S (1999) Sample size in factor analysis Psychological Methods, 4, 84-99 Maslow, A (1954) Motivation and Personality New York: Harper & Row Maslow, A H (1943), A Theory of Human Motivation, Psychological Review, 50, pp 370-396 McGregor, D (1957) Proceedings of the Fifth Anniversary Convocation of the School of Industrial Management, The Human Side of Enterprise Massachusetts Institute of Technology (April 9, 1957) Pattanayak, B (2005), Human Resource Management, Third Edition, PHI Learning Pvt Ltd, India Robert J House and Lawrence A Wigdor (2006) “Herzberg's dual-factor theory of job satisfaction and motivation: A review of the evidence and a criticism” Personnel Psychology, Vol 20 (4), 369-390 Rothausen, T.J (1994) Job satisfaction and the parent worker: the role of flexibility and reward Journal of Vocational Behavior, 44, 317-336 Item were taken from text, p.326 Student: Nguyen Ngoc Duc (ID:19376) Business Research Methods Page 43 of 52 Schjoedt, Leon (2005), Examining the causes of job satisfaction for small business executives: A test of the situational, dispositional, and international job satisfaction models, College of Business, Illinois State University Schmidt, S (2007), The Relationship between Satisfaction with Workplace Training and Overall Job Satisfaction, Human Resource Development Quarterly, Vol 18, No 4., Winter 2007 © Wiley Periodicals, Inc Scott, T et al (1960), Minnesota Studies in Vocational Rehabilitation: A Definition of Work Adjustment, University of Minnesota, USA Skalli, A., Theodossiou, I & Vasileiou, E (2007), Jobs as Lancaster Goods: Facets of job satisfaction and overall job satisfaction, Center for European Labor Market Research Smith, P.C., Kendall, L M and Hulin, C L (1969), The measurement of satisfaction in work and retirement, Chicago: Rand McNally Spector, P E (1997) Job Satisfaction Application, assessment, causes, and consequences Thousand Oaks, California: Sage Publications, Inc Sweeney, A (2000), Job Satisfaction Among Employee Assistance Program Professionals in United States, Virginia Polytechnic Institute and State University, Virginia, USA Trung-nguyen-online, 2016 Trung Nguyen history http://www.trungnguyen.com.vn/en/coffee-leader/ 15th July, 2016 Trung-nguyen-online, 2016 Trung Nguyen offices and branches http://www.trungnguyen.com.vn/en/alo-trung-nguyen-2/ 15th July, 2016 W Schaufeli and D Enzmann, The Burnout Companion to Study and Practice: A Critical Analysis, (1998), CRC Warren, E (2008), The relationship between communication, supervision and job satisfaction, The University of North Carolina at Asheville William G Zikmund (2013) Business Research Methods 13th McGrawHill/Irwin Student: Nguyen Ngoc Duc (ID:19376) Business Research Methods Page 44 of 52 APPENDIX Dear Sir/ Madam, My name is Nguyen Ngoc Duc, a student of the MBA-OUM program Currently, I am doing a research project related to the topic “Job Satisfaction at Trung Nguyen Coffee” I would appreciate you a few minutes to participate into this survey If you have any question about this questionnaire please fill free to contact me immediately via email ducnguyen79vn@gmail.com Thank you very much for cooperation! QUESTIONS OF THE SURVEY Pay Satisfaction (PS) Please circle O to the box you select according level chosen from (dissatisfy too much) to (satisfy so much) very dissatisfied Somewhat dissatisfied only moderately satisfied Well satisfied Very satisfied I am satisfied with my current salary I am satisfied with my most recent raise I have supervisor influence on my pay 5 5 I am satisfied with the number of benefits I receive? I am satisfied with the way my raises determined I am satisfied with the differences in pay among jobs in the company? Student: Nguyen Ngoc Duc (ID:19376) Business Research Methods Page 45 of 52 Supervisor Support (SS) Please circle O to the box you select according level chosen from (strongly disagree) to (strongly agree) Strongly disagree Disagree to some extent Uncertain Agree to some extent My supervisor takes time to learn about my career goals and aspirations My supervisor cares about whether or not I achieve my goals Strongly agree 5 5 5 5 My supervisor keeps me informed about different career opportunities for me in the organization 10 11 12 My supervisor makes sure I get the credit when I accomplish something substantial on the job My supervisor gives me helpful feedback about my performance My supervisor gives me helpful advice about improving my performance when I need My supervisor supports my attempts to acquire 13 additional training or education to further my career My supervisor provides assignments that give 14 me the opportunities to develop and strengthen new skills Student: Nguyen Ngoc Duc (ID:19376) Business Research Methods Page 46 of 52 Empowerment at Work (EAT) Please circle O to the box you select according level chosen from (strongly disagree) to (strongly agree) Strongly disagree Disagree to some extent Uncertain Agree to some extent Strongly agree 15 The work I is very important to me 16 The work I is meaningful to me 17 I am confident about my ability to my job 18 I have mastered the skills necessary for my job 5 19 20 I can decide on my own how to go about doing my work My impact on what happens in my department is large Perceived Important of Workplace Value Please circle O to the box you select according level chosen from (not important at all) to (extremely important) Not important at all 21 22 Slightly important Important Fairly important High-quality products and services of central important Individual employees recognized and rewarded for superior performance Student: Nguyen Ngoc Duc (ID:19376) Extremely important 5 Business Research Methods 23 24 25 26 27 28 Reputation for Page 47 of 52 quality surpasses major competitors Innovative products and services of central importance Individual employees recognized and rewarded for innovative work Reputation for innovative surpasses major competitors Widespread participation in decision making highly valued Employees are encouraged to express minority points of view 29 Procedures facilitated widespread participation in decision making 30 Cooperation among employees highly valued 5 5 5 5 Pay Satisfaction Please circle O to the box you select according level chosen from (completely unsatisfied) to (completely satisfied) completely Somewhat unsatisfied unsatisfied 31 32 only moderately satisfied Well satisfied Completely satisfied All in all, how satisfied are you with the persons All in all, how satisfied are you with your in your work group? Student: Nguyen Ngoc Duc (ID:19376) Business Research Methods Page 48 of 52 supervisor? 33 34 35 36 All in all, how satisfied are you with your job? All in all, how satisfied are you this organization, compared to most? Considering our skills and the effort you put into your work, how satisfied are you with your pay? How satisfied you feel with the progress you have made in this organization up to now? 5 5 PERSONAL INFORMATION Gender: ă Male ă Female Age: ă < 25 ă 25-30 ă 31- 40 ă > 40 Academic degree: ă B.A Working experience ă < years ă 5-10 years ă 11-20 years ă > 20 years ă Officer/ staff ă Deputy manager ă Manger ă Senior manager Working position ă M.A I am very appreciated for your promptly responses Thank you very much Best regards, Student: Nguyen Ngoc Duc (ID:19376) ă Ph.D Business Research Methods Student: Nguyen Ngoc Duc (ID:19376) Page 49 of 52 Business Research Methods Student: Nguyen Ngoc Duc (ID:19376) Page 50 of 52 Business Research Methods Student: Nguyen Ngoc Duc (ID:19376) Page 51 of 52 Business Research Methods Student: Nguyen Ngoc Duc (ID:19376) Page 52 of 52 ... relationship with the Job Satisfaction of employee at Trung Nguyen coffee The results are following: v Pay Satisfaction positively related to and supported Job Satisfaction of employees at Trung. .. a job satisfaction of employees at Trung Nguyen coffee, how to maximize their satisfaction in order to reduce the number of resign employees, and to increase the quality of service at Trung Nguyen. .. Trung Nguyen coffee v Empowerment at Work positively related to and supported Job Satisfaction of employees at Trung Nguyen coffee v Perceived Importance of Workplace Values positively related to