Factors affecting overall job satisfaction in meinhardt viet nam LTD

MASTER OF BUSINESS ADMINISTRATION INTERNATIONAL PROGRAM  BUSINESS RESEARCH PROJECT (BMBR5103) FACTORS AFFECTING OVERALL JOB SATISFACTON IN MEINHARDT VIET NAM LTD STUDENT’S FULL NAME : PHAN MINH TRI STUDENT ID : CGS000016265 COURSE : MBAOUM0514 – K14C ADVISOR : DR KHAI NGUYEN Ho Chi Minh City, August 2015 Advisor’s Assessment - Advisor’s signature Page of 52 ACKNOWLEDGEMENTS I would like to express my gratitude to my supervisor Dr Khai Nguyen for his dedicated teaching and advising during this wonderful study time at Hutech University, and the library staffs of Hutech for providing the support and information I needed I would like to thank all employees and my partners at Meinhardt VN Ltd for providing me with all the attention and information I needed for this study I would also like to thank my classmates who studied along with me and helped me in one way or the other Page of 52 Table of Contents ABSTRACT CHAPTER I INTRODUCTION 1 Company Description 1.2 Organization structure 1.3 Company Services 1.4 Business Sector 10 1.5 Company problem 14 1.6 Purpose of study 15 CHAPTER II LITERATURE REVIEW 16 2.1 Goal and Process clarity and overall job satisfaction 16 2.2 Procedural Fairness 18 2.3 Fairness in skill-based pay 20 2.4 Perceived Person-Organization Fit 21 2.5 Overall Job Satisfaction 23 CHAPTER III HYPOTHESIS MODEL & RESEARCH METHODOLOGY 26 3.1 Hypothesis model 26 3.2 Research Methodology 28 3.2.1 Data collection 28 Page of 52 3.2.2 Measurement of constructs 29 CHAPTER IV DATA ANALYSIS AND HYPOTHESIS TESTING RESULT 34 4.1 Reliability Test 34 4.2 Descriptive statistic 35 4.3 Correlation statistic 35 4.4 Overall Hypothesis Testing Result 37 4.4.1 Hypothesis result 38 4.4.2 Hypothesis result 38 4.4.3 Hypothesis result 38 4.4.4 Hypothesis result 38 CHAPTER V DISCUSSION AND RECOMMENDATION 39 5.1 Discussion 39 5.2 Limitation 40 REFERENCES 42 APPENDIX: RESEARCH QUESTIONAIRES 47 Page of 52 LIST OF FIGURES Fig Meinhardt VN’s organization chart Fig Hypothesis model 26 LIST OF TABLES Table Measure of goal and process clarity 30 Table Measure of procedural fairness 31 Table Measure of fairness in skill-based pay 31 Table Measure of perceived person-organization fit 32 Table Measure of overall job satisfaction 33 Table Cronbach’s alpha testing values 35 Table Descriptive statistic results 35 Table Correlation statistic 36 Table Model Summary 37 Table 10 ANOVA results 37 Table 11 Coefficients results 37 Page of 52 ABSTRACT Real estate industry in Viet Nam is growing back after falling down due to the economic crisis Construction companies are also growing back following the industry In Viet Nam, we have several famous international companies participating in construction service, and Meinhardt VN Ltd is one of those The company provides services of construction consultancy such as project management, project supervision, project bidding etc The company business was very successful from 2000 to 2010, but has been slowing down lately even though the real estate is growing back This study examines factors affecting the employee’s overall job satisfaction at Meinhardt VN and its relationship with overall job satisfaction Four factors affecting are goal and process clarity, procedural fairness, fairness in skill- based pay and perceive person – organization fit Through this study, it is tested and resulted that there is a positive relationship between goal and process clarity, procedural fairness, fairness in skill- based pay and perceive person – organization fit and overall job satisfaction in Meinhardt Viet Nam Ltd Key words: Goal and process clarity, procedural fairness, fairness in skill-based pay, perceive person-organization fit, overall job satisfaction Page of 52 CHAPTER I INTRODUCTION 1 Company Description Meinhardt Group commenced operation in Australia in 1955, in Asia in 1973 and now employs in excess of 3,500 permanent staff The Group currently operates in 30 countries worldwide and maintains permanent offices in USA, UK, UAE, India and Pakistan and throughout the Asia Pacific regions Ranked among the largest independent engineering consulting firms globally by revenue, Meinhardt Group, with over 42 offices worldwide In Viet Nam, Meinhardt Viet Nam Ltd (Meinhardt VN) was established in Ho Chi Minh City in 1995 The company has been granted a full license of engineering consultancy under 100% Foreign Owned Company status and has been admitted as a member of Vietnam Engineering Consultant Association (VECAS) Representative offices are established in Hanoi and Da Nang to execute projects in the north of the country Through its close links with the other offices of the Group, the firm is able to obtain external support and particular specialist expertise when required, so as to combine the Group global presence and knowledge base with local experience 1.2 Organization structure The company has currently over 300 full time employees with a variety of expertise and a strong combination of international staff, Vietnamese with overseas qualifications and experience, and well qualified Vietnamese nationals This allows the company to provide engineering services that meet either Vietnamese or International Standards Page of 52 Although the company is part of Meinhardt Group, however, the general director can decide all the decisions by himself, meaning the general director has full power to ma make ke decisions The company structure consists of departments with its own directors Department directors d are directed by a specific deputy general director of the company Fig Meinhardt VN’s organization chart 1.3 Company Services Meinhardt VN Ltd is fully licensed with variety ranges of consultancy services Some main services of the company are: Architectural design - Concept Design: Sketches/ drawings with different options for the building layout and general perspectives - Basic Design: Provide general detail after completion of concept design - Detail Design and Documentation: Complete set of architectural Page of 52 drawings and specifications suitable for construction Civil & Structural design - Concept Design: Concept on structural components, design parameters and design standard report - Detail Design: Develop detail civil, structural and foundation design, calculations, drawings and specifications Mechanical & Electrical - Water supply & storage and distribution system design - Power supply & distribution and lighting system - Telecommunication system - Ventilation and air conditioning system - Fire fighting and protection system Project Management - Co-ordinate designers - Arrange Government approvals and liaise with government authorities Construction Supervision - Construction management and site supervision - Examine and supervise quality of construction materials and equipment used for the project - Check construction methods of construction contractor - Regularly and systematically supervise construction procedures of the contractor on the site - Organize the acceptance of the project - Holding meetings, cooperate with other relating parties to settle all misgivings, matters arising during the construction of the project Cost Management (QS) - Preliminary cost estimates Page of 52 4.4.1 Hypothesis result - R2 > - Coefficient Beta = 0.226 => the same direction with model - Sig = 000 < 0.05 The hypothesis H1 was supported 4.4.2 Hypothesis result - R2 > - Coefficient Beta = 0.189 => the same direction with model - Sig = 000 < 0.05 The hypothesis H2 was supported 4.4.3 Hypothesis result - R2 > - Coefficient Beta = 0.148 => the same direction with model - Sig = 004 < 0.05 The hypothesis H3 was supported 4.4.4 Hypothesis result - R2 > - Coefficient Beta = 0.362 => the same direction with model - Sig = 000 < 0.05 The hypothesis H4 was supported Page 38 of 52 CHAPTER V DISCUSSION AND RECOMMENDATION 5.1 Discussion Through analysis, the results of this study can be used as a guideline to the employer of Meinhardt VN in order to improve employees’ overall job satisfaction, thus increasing organization business The first hypothesis is that goal and process clarity is positively related to overall job satisfaction was supported This means an improvement of goal clarity and process clarity will improve over job satisfaction As an employee, I would like to know clearly my duty or my responsibilities, or the expected results of my work…an improvement of these things is not hard to achieve Employer may clarify every time they give a task to an employee and explain what the company will expect from them As tested, these actions will increase the employee’s overall job satisfaction The second hypothesis is that procedural fairness is positively related to overall job satisfaction was supported Procedural fairness consists a variety of aspects such as pay determination, pay communication, performance appraisal and appealing…An improvement of any of these aspects can result in increasing of job satisfaction For example of pay determination, the employer can clarify the process of how the pay raises and the frequency of pay raise to employees; or for performance appraisal, the employer should show employees how information used to evaluate their work is collected or how their performance is evaluated; or simply just show the employees the process of appealing and resolving disagreement if has any The third hypothesis is that fairness in skill-based pay is positively related to overall job satisfaction was supported Salary is a basic requirement for both employers and employees Page 39 of 52 However, the level of pay is differs depending on many factors like experience, skill… or sometimes, the relationship with those of top leader of a company Being an international company, Meinhardt VN pays employees for their skill and experience rather than other things However the fairness in skill-based pay is not only for the initial pay level, but for other aspects such as supervisors a good job of certifying employees for skill-based pay raises or is skill-bases pay plan fair to all employees… The company may pay more attention on these aspects in order to improve overall job satisfaction The fourth hypothesis is that perceived person-organization fit is positively related to overall job satisfaction was supported The fit between employee and organization is essential to any organizational success The fit may be expressed in many terms such as values, ethics, culture, religion, politics, personal character, work-family balance… These terms belong to perception of employees, so taking care of those will increase overall job satisfaction of employees to the company, thus there is variety of ways to improve job satisfaction from aspect of perceived person-organization fit In summary, the hypothesis model shown in figure was supported Four factors are goal and process clarity, procedural fairness, fairness in skill-based pay and perceived personorganization fit were positively related to overall job satisfaction This means the company can either choose one factor to develop in order to improve job satisfaction or choose all four factors, providing many ways to increase the current overall job satisfaction of employees 5.2 Limitation The process of data collection was conducted in a short period of time, therefore there is a limitation in number of handout questionnaires which resulted in small number of respondents Page 40 of 52 (n=270) However, percentage of respondents (75% of total employees) is somehow useful for internal purpose Therefore, this study can only be used for internal research of Meinhardt VN Ltd For other organizations with the same business sector, it is not applicable because small size of sample can reduce the reliability outcome of this study It is suggested to carry out more empirical test to verify these findings Page 41 of 52 REFERENCES Arthur Jr, W., Bell, S T., Villado, A J., & Doverspike, D (2006) The use of personorganization fit in employment decision making: an assessment of its criterion-related validity Journal of Applied Psychology, 91(4), 786 Arvey, R D., Dewhirst, H D., & Boling, J C (1976) Relationships between goal clarity, participation in goal setting, and personality characteristics on job satisfaction in a scientific organization Journal of Applied Psychology, 61(1), 103 Bang, H., Fuglesang, S L., Ovesen, M R., & Eilertsen, D E (2010) Effectiveness in top management group meetings: The role of goal clarity, focused communication, and learning behavior Scandinavian Journal of Psychology, 51(3), 253-261 Brockner, J., Heuer, L., Magner, N., Folger, R., Umphress, E., van den Bos, K., & Siegel, P (2003) High procedural fairness heightens the effect of outcome favorability on self-evaluations: An attributional analysis Organizational Behavior and Human Decision Processes, 91(1), 5168 Bettencourt, L A., & Brown, S W (1997) Contact employees: Relationships among workplace fairness, job satisfaction and prosocial service behaviors Journal of retailing, 73(1), 39-61 Cable, D M., & Judge, T A (1996) Person–organization fit, job choice decisions, and organizational entry Organizational behavior and human decision processes, 67(3), 294-311 Culnan, M J., & Armstrong, P K (1999) Information privacy concerns, procedural fairness, and impersonal trust: An empirical investigation Organization science, 10(1), 104-115 Page 42 of 52 De Cremer, D., & Tyler, T R (2007) The effects of trust in authority and procedural fairness on cooperation Journal of Applied Psychology, 92(3), 639 Donavan, D T., Brown, T J., & Mowen, J C (2004) Internal benefits of service-worker customer orientation: Job satisfaction, commitment, and organizational citizenship behaviors Journal of marketing, 68(1), 128-146 Fisher, C D (1998) Mood and emotions while working-missing pieces of job satisfaction School of Business Discussion Papers, 64 Gardner, D G., Dyne, L., & Pierce, J L (2004) The effects of pay level on organization‐based self‐esteem and performance: A field study Journal of Occupational and Organizational Psychology, 77(3), 307-322 Green, C., & Heywood, J S (2008) Does performance pay increase job satisfaction? Economica, 75(300), 710-728 Griffin, M A., Patterson, M G., & West, M A (2001) Job satisfaction and teamwork: The role of supervisor support Journal of organizational behavior, 22(5), 537-550 Hamermesh, D S (1999) The changing distribution of job satisfaction (No w7332) National Bureau of Economic Research Hollenbeck, J R., & Klein, H J (1987) Goal commitment and the goal-setting process: Problems, prospects, and proposals for future research Journal of applied psychology, 72(2), 212 Page 43 of 52 Hu, J., & Liden, R C (2011) Antecedents of team potency and team effectiveness: an examination of goal and process clarity and servant leadership Journal of Applied Psychology, 96(4), 851 Jordan, P J., Ashkanasy, N M., Härtel, C E., & Hooper, G S (2002) Workgroup emotional intelligence: Scale development and relationship to team process effectiveness and goal focus Human Resource Management Review, 12(2), 195-214 Judge, T A., Bono, J E., & Locke, E A (2000) Personality and job satisfaction: the mediating role of job characteristics Journal of applied psychology, 85(2), 237 Kristof, A L (1996) Person‐organization fit: an integrative review of its conceptualizations, measurement, and implications Personnel psychology, 49(1), 1-49 Kristof‐brown, a l (2000) perceived applicant fit: distinguishing between recruiters'perceptions of person‐job and person‐organization fit personnel psychology, 53(3), 643-671 Lee, F K., Sheldon, K M., & Turban, D B (2003) Personality and the goal-striving process: The influence of achievement goal patterns, goal level, and mental focus on performance and enjoyment Journal of Applied Psychology, 88(2), 256 Lee, C., Law, K S., & Bobko, P (1999) The importance of justice perceptions on pay effectiveness: A two-year study of a skill-based pay plan Journal of Management, 25(6), 851873 Ledford Jr, G E., & Heneman III, H G (2011) Skill-Based Pay Society for Human Resource Management, Alexandria, VA Page 44 of 52 Lauver, K J., & Kristof-Brown, A (2001) Distinguishing between employees' perceptions of person–job and person–organization fit Journal of Vocational Behavior, 59(3), 454-470 Manove, M (1997) Job responsibility, pay and promotion The Economic Journal, 85-103 Milanowski, A (2003) Varieties of Knowledge and Skill-Based Pay Design education policy analysis archives, 11, McFarlin, D B., & Sweeney, P D (1992) Research notes Distributive and procedural justice as predictors of satisfaction with personal and organizational outcomes Academy of management Journal, 35(3), 626-637 Murray, B., & Gerhart, B (1998) An empirical analysis of a skill-based pay program and plant performance outcomes Academy of management Journal, 41(1), 68-78 Rizzo, J R., House, R J., & Lirtzman, S I (1970) Role conflict and ambiguity in complex organizations Administrative science quarterly, 150-163 Roberson, L (1990) Prediction of job satisfaction from characteristics of personal work goals Journal of Organizational Behavior, 11(1), 29-41 Sawyer, J E (1992) Goal and process clarity: Specification of multiple constructs of role ambiguity and a structural equation model of their antecedents and consequences Journal of Applied Psychology, 77(2), 130 Shaw, J D., Gupta, N., Mitra, A., & Ledford, G E (2005) Success and survival of skill-based pay plans Journal of Management, 31(1), 28-49 Page 45 of 52 Schminke, M., Ambrose, M L., & Cropanzano, R S (2000) The effect of organizational structure on perceptions of procedural fairness Journal of Applied Psychology, 85(2), 294 Schmitt, M., & Dörfel, M (1999) Procedural injustice at work, justice sensitivity, job satisfaction and psychosomatic well‐being European Journal of Social Psychology, 29(4), 443453 Silverthorne, C (2004) The impact of organizational culture and person-organization fit on organizational commitment and job satisfaction in Taiwan Leadership & Organization Development Journal, 25(7), 592-599 Saari, L M., & Judge, T A (2004) Employee attitudes and job satisfaction Human resource management, 43(4), 395-407 Tepeci, M., & Bartlett, A B (2002) The hospitality industry culture profile: a measure of individual values, organizational culture, and person–organization fit as predictors of job satisfaction and behavioral intentions International Journal of Hospitality Management, 21(2), 151-170 Tekleab, A G., Bartol, K M., & Liu, W (2005) Is it pay levels or pay raises that matter to fairness and turnover? Journal of Organizational Behavior, 26(8), 899-921 Van den Bos, K., Wilke, H A., & Lind, E A (1998) When we need procedural fairness? The role of trust in authority Journal of Personality and social Psychology, 75(6), 1449 Page 46 of 52 APPENDIX: RESEARCH QUESTIONAIRES My name is Phan Minh Tri and I am doing a research about overall job satisfaction under a course of Hutech and Open University Malaysia I would like to invite you to join these little queries about overall job satisfaction and its influenced factors Personal information is confidential and your answers are only used for the inputs of this research I thank you for spending your time and your honest information If you have any queries, please contact me by this email: tri.mphan@yahoo.com I GOAL & PROCESS CLARITY Please tick to the box that fits you the most: No GOAL AND PROCESS 1=Very uncertain 2=Uncertain 3=Slightly uncertain 4=Certain 5=Certain slightly moderately 6=Very certain Goal clarity My duties and responsibilities The goals and objectives for my job 6 6 How my work relates to the overall objectives of my work unit The expected results of my work What aspects of my work will lead to a positive evaluation Process clarity Page 47 of 52 How to divide my time among tasks 6 6 required of my job How to schedule my work day How to determine the appropriate procedures for each work task The procedures I use to my job are correct and proper Considering all your work tasks, how 10 certain are you that you know the best ways to these tasks II PROCEDURAL FAIRNESS Please describe how you feel about the fairness of procedures for……: No PROCEDURE FAIRNESS 1=Very 2=Unfair unfair 3=Not 4=Fair sure 5=Very fair Pay determination 11 Determining the pay for my job 12 How my pay raises are determined 13 The way performance is reflected in my pay 5 Pay communication 14 Communicating pay policies and procedures Page 48 of 52 15 Communicating pay issues of concern to me 16 Answering questions about how my pay is determined Performance appraisal 17 Evaluating my performance 18 Monitoring my supervisor's pay decisions Appeal 19 Appealing pay decisions 20 Resolving disagreements about my pay III FAIRNESS IN SKILL – BASED PAY Please tick the box that fits you the most: No FAIRNESS IN SKILL- 1=Strongly BASED PAY disagree 2=Disagree 3=Slightly disagree 4=Neither agree disagree or 5=Slightly agree 6=Agree 7=Strongly agree Supervisors a good job 21 of certifying employees for 7 skill-based pay raises The skill-bases pay certifications are a fair test 22 of employee ability to perform a task Page 49 of 52 If an employee really knows how to perform the tasks that make up a skill 23 level, the employee will be able to pass 7 the certification tests for that skill level The skill-bases pay plan is 24 fair to most employees IV PERCEIVED PERSON – ORGANIZATION FIT (dung bang cau tren cai cu) Please describe the fit between your values and the organization’s values, such as: No PERCEIVED PERSON- ORGANIZATION FIT 1=Not at all 2= Poorly 3=Average 4=High 5=Very high To what degree feel your values 25 “match” or fit this organization and the 5 current employees in this organization? 26 My values match those of the current employees in this organization Page 50 of 52 Do you think the values and “personality” 27 of this organization reflect your own 5 values and personality? 28 To what degree is your interaction with coworkers? V OVERALL JOB SATISFACTION Please tick to the box that fits you the most: No OVERALL JOB SATISFACTION 1=Completely 2=Dissatisfied 3=Not sure 4=Satisfied dissatisfied 5=Completely satisfied All in all, how satisfied are you 29 with the persons in your work 5 5 group? 30 All in all, how satisfied are you with your supervisor? 31 All in all, how satisfied are you with your job? All in all, how satisfied are you with 32 this organization, compared to most? Page 51 of 52 Considering your skills and the 33 effort you put into your work, how 5 satisfied are you with your pay? How satisfied you feel with the 34 progress you have made in this organization up to now? How satisfied you feel with your 35 chance for getting ahead in this organization in the future? VI BACKGROUND INFORMATION Female □ Male □ Gender: Age: Marital Status: Single □ Do you currently: Live with your parents? □ Job level: Beginner □ Married without children □ Experienced (Non-manager) □ Married with children □ Live separately from your parents? □ Manager □ Director/Deputy Director □ THANK YOU! -Page 52 of 52 ... consulting firms globally by revenue, Meinhardt Group, with over 42 offices worldwide In Viet Nam, Meinhardt Viet Nam Ltd (Meinhardt VN) was established in Ho Chi Minh City in 1995 The company has been... satisfaction at Meinhardt VN, thus finding a way to increase their overall job satisfaction This study will focus on four factors and its relationship with the overall job satisfaction in Meinhardt VN... estate industry in Viet Nam is growing back after falling down due to the economic crisis Construction companies are also growing back following the industry In Viet Nam, we have several famous international