Exploring factors affecting employee job satisfaction at bank for investment and development of viet nam

RESEARCH PROJECT (BMBR5103) EXPLORING FACTORS AFFECTING EMPLOYEE JOB SATISFACTION AT BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM STUDENT’S FULL NAME : NGUYEN PHUONG NAM STUDENT ID : 14967 INTAKE : MARCH 2013 ADVISOR’S NAME & TITLE : NGUYEN THE KHAI, DBA SEPTEMBER 2014 ADVISOR’S COMMENTS Advisor’s signature: Page iii of 53 DECLARATION I declare that the work on which this dissertation is based, hereby submitted to Open University Malaysia for the degree of Master of Business Administration This wok has not previously been submitted by me for a degree at this or any other university It is my work in design and execution, and that all material contained herein has been duly acknowledged Nguyen Phuong Nam (Mr.) Page iv of 53 ACKNOWLEDGEMENTS Firstly, I came to my great pleasure to have a chance to attend the official course of Strategic Management of OUM and HUTECH conducted by Nguyen The Khai, DBA two months ago Through this class, a lot of knowledge on Business Research Method with different angles, art and skills needed have been absorbed carefully and this will help me a lot in the long run to work in business environment Secondly, understanding of Business Research Method will help me and other members of the class build teamwork’s environment, leading team and motivate others through Business Research Method Thirdly, I would like to express my great thankfulness to my lecturer – Nguyen The Khai, DBA, who inspired me with interesting lessons, ways of systematic learning that will be very useful for me With kind regards, Nguyen Phuong Nam Page v of 53 Contents ADVISOR’S COMMENTS iii DECLARATION iv ACKNOWLEDGEMENTS v LIST OF TABLES ix LIST OF FIGURES ix ABSTRACT 10 CHAPTER 1: OVERVIEW 11 1.1 BIDV introduction 11 1.2 Context of the study: BIDV’s inside problems 12 1.3 Research problem statement 13 1.4 Research objectives 13 CHAPTER 2: LITERATURE REVIEW 15 2.1 Definitions of Constructs 15 2.1.1 Job satisfaction 15 2.1.2 Benefits 16 2.1.3 Work-related expectancies 18 2.1.4 Performance appraisal system knowledge 18 2.1.5 Supervison 20 2.2 Theories of Job Satisfaction 21 2.2.1 Maslow Hierarchy Theory 21 2.2.2 Herzberg’ Two-Factor Theory 22 2.2.3 Vroom’s Expectancy Theory of Motivation 23 2.2.4 Adams’s Equity Theory (1963) 24 2.2.5 Locke’s Range of Affect theory 25 2.3 Proposed research model and hypotheses 26 2.3.1 Proposed research model 26 2.3.2 Proposed research hypotheses 27 CHAPTER 3: RESEARCH METHODOLOGY 28 Page vi of 53 3.1 Sample 28 3.2 Measurement of variables 28 3.2.1 Benefits 28 3.2.2 Job satisfaction 28 3.2.3 Work-related expectancies 29 3.2.4 Performance appraisal system knowledge 30 3.2.5 Supervision 32 3.3 Data collection 33 3.4 Data Analysis 33 CHAPTER 4: RESEARCH FINDINGS 34 4.1 Construct Reliability 34 4.1.2 Main construct: Job satisfaction 35 4.1.2 Construct: Performance Appraisal System Knowledge 35 4.1.3 Construct: Work-related expectancies 35 4.1.4 Construct: Benefits 36 4.1.5 Construct: Supervision 36 4.2 Descriptive statistics 37 4.3 Correlations among variables 38 4.4 Hypothesis testing results 39 4.4.1 Proposed hypothesis H1 40 4.4.2 Proposed hypothesis H2 41 4.4.3 Proposed hypothesis H3 42 4.4.4 Proposed hypothesis H4 43 CHAPTER 5: DISCUSSION AND RECOMMENDATION 44 5.1 Discussion 44 5.2 Managerial implications 45 REFERENCES 46 APPENDIX 50 Page vii of 53 Page viii of 53 LIST OF TABLES Table 1: Measurement of benerfits Table 2: Measurement of Job satisfaction Table 3: Measurement of Work-related expectancies Table 4: Measurement of Performance appraisal system knowledge Table 5: Measurement of supervision Table 6: Cronbach's alpha- Internal consistency Table 7: Cronbach's alpha of Construct Job Satisfaction Table 8: Cronbach's alpha of Construct Performance appraisal system knowledge Table 9: Cronbach's alpha of Construct Work-related expectancies Table 10: Cronbach's alpha of benefits Table 11: Cronbach's alpha of supervision Table 12: Descriptive statistics Table 13: Correlations among variables Table 14: H1 model summary Table 15: H1 Coefficients (a) Table 16: H2 Model summary Table 17: H2 Coefficients (a) Table 18: H3 Model summary Table 19: H3 Coefficients (a) Table 20: H4 model summary Table 21: H4 Coefficients (a) 28 29 30 31 32 34 35 35 35 36 36 37 38 40 40 41 41 42 42 43 43 LIST OF FIGURES Figure 1: Maslow's Hierarchy Needs Theory 22 Figure 2: Vroom's Expectancy Theory of Motivation 23 Figure 3: Proposed Research Model 26 Page ix of 53 ABSTRACT Employees are internal customers of the organization, to meet the current requirements and is willing to work with organizations to implement business objectives However, most organizations focus on customer satisfaction about the product, but very little attention to employee's satisfaction with his work or not The satisfaction of employees towards work will boost the quality of banking operations Therefore conducted a study on employee satisfaction towards work is a necessity for the development of the bank Because of that, I decided to delve into the topic "Exploring factors affecting employee job satisfaction at Bank for Investment and Development of Vietnam" (BIDV) threads clarify this issue.This study discusses the factors that influence job satisfaction Data were collected through questionnaire from 270 employees (n=270) of four departments in BIDV The hypotheses were tested using SPSS software, version 15.0 All variables were tested the reliability Cronbach’s Alpha, the correlations, descriptive statistics, and the like The study result reveals that procedural justice, work-related expectancy, perceived organizational support, and performance appraisal system knowledge have positive relationship with job satisfaction This result helps the managers of BIDV have a more holistic view of enterprise systems and more specific policies strategies The company should appropriate to improve employee satisfaction contributing to impact customer satisfaction, empowerment and competitiveness of their enterprise on the market The implications to human resource development for organizations that want to increase employee job satisfaction is to focus on enhancing the support for the employees, improving the procedural fairness, and caring the employee’s expectancies and the like Key words: job satisfaction, benefits, work-related expectancies, performance appraisal systems, supervision, BIDV Page 10 of 53 4.4 Hypothesis testing results As proposed in chapter 2, we suggested that the relationships between procedural justice, work-related expectancies, performance appraisal system knowledge, perceived organizational support and job satisfaction were all positive In order to prove that the hypothesis is supported, the hypothesis has to fulfill three below requirements: + R square is positive; + Unstandardized coefficients Beta: positive if the proposed hypothesis is positive; vice versa, negative if the proposed hypothesis is negative; + Significant is less than 0.05 Below is the hypothesis testing result of all proposed hypotheses Page 39 of 53 4.4.1 Proposed hypothesis H1 H1: There is a positive relationship between benefits and job satisfaction Model Summary T ABLE 14: H1 MODEL SUMMARY Model Summary Mode l R R Square 538(a) 289 a Predictors: (Constant), BN Adjusted R Square 286 Std Error of the Estimate 49009 That the R square is 0.289 is positive Coefficients(a) T ABLE 15: H1 C OEFFICIENTS ( A ) Unstandardized Coefficients Mode B (Consta nt) BN Std Error 1.640 186 496 047 Standardized Coefficients t Sig Beta B Std Error 538 8.799 000 10.437 000 a Dependent Variable: JS That unstandardized coefficients beta B is 0.538 is positive, and the significant is 0.000 less than 0.05 Conclusion: The hypothesis H1 is supported Hence, benefits and job satisfaction have positive relationship Page 40 of 53 4.4.2 Proposed hypothesis H2 H2: There is a positive relationship between work-related expectancies and job satisfaction Model Summary T ABLE 16: H2 M ODEL SUMMARY Model R R Square 704 (a) Adjusted R Square 494 Std Error of the Estimate 492 42336 a Predictors: (Constant), WR That the R square is 0.494 is positive Coefficients(a) T ABLE 17: H2 C OEFFICIENTS ( A ) Unstandardized Standardized Coefficients Coefficients T Sig Beta B Std Error Model B Std Error (Constant) 951 163 WR 710 044 703 5.833 000 16.182 000 a Dependent Variable: JS That unstandardized coefficients beta B is 0.703 is positive, and the significant is 0.000 which is less than 0.05 Conclusion: The hypothesis H2 is supported Hence, work-related expectancies and job satisfaction have positive relationship Page 41 of 53 4.4.3 Proposed hypothesis H3 H3: There is a positive relationship between performance appraisal system knowledge and job satisfaction Model Summary T ABLE 18: H3 M ODEL SUMMARY Model R R Square 475(a) Adjusted R Square 225 Std Error of the Estimate 223 51151 a Predictors: (Constant), PA That the R square is 0.225 is positive Coefficients(a) T ABLE 19: H3 C OEFFICIENTS ( A ) Model (Constant) PA Unstandardized Standardized Coefficients Coefficients t Sig Beta B Std Error B Std Error 1.596 224 542 061 475 7.111 000 8.833 000 a Dependent Variable: JS That unstandardized coefficients beta B is 0.475 is positive, and the significant is 0.000 which is less than 0.05 Conclusion: The hypothesis H3 is supported Hence, performance appraisal system knowledge and job satisfaction have positive relationship Page 42 of 53 4.4.4 Proposed hypothesis H4 H4: There is a positive relationship between supervision and job satisfaction Model Summary T ABLE 20: H4 MODEL SUMMARY Model R R Square 341 (a) Adjusted R Square 116 Std Error of the Estimate 113 54632 a Predictors: (Constant), SU That the R square is 0.116 is positive Coefficients(a) T ABLE 21: H4 C OEFFICIENTS ( A ) Model Unstandardized Standardized Coefficients Coefficients T Sig Beta B Std Error B Std Error (Constant) 1.715 312 SU 488 082 341 5.497 000 5.944 000 a Dependent Variable: JS That unstandardized coefficients beta B is 0.341 is positive, and the significant is 0.000 which is less than 0.05 Conclusion: The hypothesis H4 is supported; hence, supervision and job satisfaction have a positive relationship Page 43 of 53 CHAPTER 5: DISCUSSION AND RECOMMENDATION 5.1 Discussion This study is conducted in order to first establish evaluation model of employee job satisfaction in BIDV, second to understand the factors affecting job satisfaction and assessment of level of satisfaction, and finally suggest some recommendation for the managers of BIDV When testing the reliability of five constructs including job satisfaction, benefits, workrelated expectancies, performance appraisal system knowledge, and supervision, we found that all these constructs have the good Cronbach’s alpha The largest is the Cronbach’s alpha of workrelated expectancies with 0.883, and the lowest is that of benefits with 0.830 That all results of Cronbach’s alpha are greater than 0.8 shows that these constructs are good enough to conduct further analysis From the above analysis in chapter 4, mean of job satisfaction equals 3.5598 with the standard deviation 0.58014 by using 5-point Likert scale It could be said that employees at BIDV have average job satisfaction When satisfaction is calculated by each variables, benefits has the highest mean (3.8731); next is the factor supervision (3.7763) and work-related expectancies (3.6716) The factor has the lowest mean (3.6219) is performance appraisal system knowledge When testing the hypotheses, the results show that all four proposed hypotheses are supported It could be approved that there are four factors influencing job satisfaction among employees working at BIDV Benefits, work-related expectancies, performance appraisal system knowledge, and supervision are together affecting the level of job satisfaction at BIDV Page 44 of 53 5.2 Managerial implications For those employers in BIDV, this study has some certain significance First of all, with the average job satisfaction relatively low (3.5598), employer must implement some internal and external measures to increase the employee job satisfaction When there is high level of job satisfaction, employees will feel more productive and have long-term commitment to the company The results of the regression analysis showed that the factors affecting job satisfaction include benefits, performance appraisal system knowledge, work-related expectancies, and supervision Although this study may not totally accurately reflecting the level of employee job satisfaction as well as the factors affecting the level of job satisfaction at BIDV, this study will also help managers in issuing and improving company’s policies to enhance job satisfaction The employees at BIDV feel satisfied with benefits the most; thus, the BIDV’s managers could further improve the salary and reward system, make the effect different between officer staff and sales staff The company recognizes that employees satisfy with the benefits; therefore, if the company cares much for their expectancies by paying worth with the employee’s efforts, the employees’ satisfaction will be increased Page 45 of 53 REFERENCES Arizi B (2011) Job satisfaction: A literature review Research on Management Research and Practice Vol 3, Issue 4, pp: 77-88 Armstrong, M (2006) A Handbook of Human resource Management Practice, Tenth Edition, Kogan Page Publishing, London, p 264 Baron, A.R & Greenberg (2003) Organisational Behaviour in Organisation: Understanding and managing the human side of work Canada: Prentice Hall Bies, R.J and Moag, J.S (1986) International Justice: communication criteria of fairness Research on Negotiation in Organizations (Vol 1) Greenwich, CT: JAI Press, 43-55 Bingham, L.B (1997) Mediating employment disputes: perceptions of Redress at the United States Postal Service Review of Public Personnel Administration, 17, (2), 20-30 Cascio, W (1996) Managing for maximum performance HR Monthly, (September), 10-13 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Please read carefully every item before answering Circle one of the scales mentioned at each part to indicate your answer No Items I am satisfied with the benefits I receive The benefits we receive are as good as most other organization offer The benefits package we have is non equitable There are benefits we have which we should have I understand the performance appraisal system being used in my agency My supervisor and I concur on the meaning of the criteria used in the performance appraisal system Completely disagree Disagree to some extent Uncertain Agree to some extent Completely agree 5 5 5 Page 50 of 53 10 11 12 13 14 15 16 17 18 19 20 21 I understand the objectives of the present performance appraisal system I have a real understanding of how the performance appraisal system works I not understand how my last performance appraisal rating was determined (R) I know the criteria used by my employer to evaluate my performance I understand the standards of performance my employer expects My employer clearly communicates to me the objectives of the performance appraisal system I would benefit from additional training in the process of the appraisal system (R) Procedures regarding the performance appraisal system are not generally understood by the employees (R) An attempt should be made to increase employees' understanding of the performance appraisal system (R) It is more likely that I will be given a pay raise or promotion at BIDV if I finish a large amount of work It is more likely that I will be given a pay raise or promotion at BIDV if I high-quality work Getting work done quickly at BIDV increases my chances for a pay raise or promotion Getting work done on time is rewarded with high pay at BIDV Completing my work on time gets me greater approval from my immediate supervisor at BIDV My immediate supervisor at BIDV gives me more recognition when I get a lot of work done 5 5 5 5 5 5 5 Page 51 of 53 22 23 24 If I get my job done on time, I have more influence with my immediate supervisor at BIDV My immediate supervisor at BIDV pays added attention to the opinions of the best workers When I finish my job on time, my job is more secure at BIDV Items 25 26 27 28 29 30 31 All in all, how satisfied are you with the persons in your work group? All in all, how satisfied are you with your job? All in all, how satisfied are you with this organization, compared to most? All in all, how satisfied are you with your supervisor? Considering your 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? How satisfied you feel with your chance for getting ahead in this organization in the future? Items 32 33 34 35 36 37 38 The way my supervisor listens when I have something important to say The way my supervisor sets clear word goals The way my supervisor treats me when I make a mistake My supervisor’s fairness in appraising my job performence The way my supervisor is consistent in his/her behavior toward subordinates The way my supervisor helps me to get the job done The way my supervisor gives me credit for my ideas 5 Completely satisfied Satisfied Neutral Unsatisfied Completely unsatisfied 5 5 5 Neutral Satisfied Completely Satisfied Completely Unsatisfied unsatisfied 5 5 5 Page 52 of 53 39 40 41 42 43 44 45 46 47 48 49 The way my supervisor gives me clear instruction The way my supervisor informs me about work changes ahead of times The way my supervisor follows through to get problems solved The way my supervisor understands the problems I might run into doing the job The way my supervisor shows concern for my career progress My supervisor’s backing me up with other management The frequency with which I get a pat on the back for doing a good job The technical competence of my supervisor The amount of time I get to learn a task before I’m moved to another task The time I have to the job right The way my job responlitities are clearly defined 5 5 5 5 5 Page 53 of 53 ... necessity for the development of the bank Because of that, I decided to delve into the topic "Exploring factors affecting employee job satisfaction at Bank for Investment and Development of Vietnam"...RESEARCH PROJECT (BMBR5103) EXPLORING FACTORS AFFECTING EMPLOYEE JOB SATISFACTION AT BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM STUDENT’S FULL NAME : NGUYEN PHUONG NAM STUDENT ID : 14967 INTAKE... the factors that influence employee satisfaction with the job + Survey and assessment of employee satisfaction for thejob at BIDV Page 13 of 53 + Propose a solution to improve employee satisfaction