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Lunghwa Universityof Scienceand Technology Department of Business Administration Thesis for a Master’s Degree Improve the working enviroment at Sunjin Vietnam joint venture Company Researcher: NGUYEN VIET CUONG Supervisor 1: NGO VI DUNG Supervisor 2: CHIR-HO CHANG Ha Noi ,2018 i Lunghwa University of Science and Technology Approval Certificate of Master's Degree Examination Board This is to certify that the Master’s Degree Examinations Board has approved the thesis Improve the working enviroment at Sunjin Vietnam joint venture Company by Mr.Nguyen Viet Cuong in the Master Program of Graduate School of Department of Business Administration Master’s Degree Examination Board Board Members:TSAN CHIA-CHI Mai Anh Doan Thu Trang Advisors:Ngo Vi Dung; Chir-HoChang Chair: TSAN CHIA-CHI Date:2018/ 11/ 25 ii iii ABSTRACT Thesis Title:Improve the working enviroment at Sunjin Vietnam joint venture Company Pages:51 University:Lunghwa University of Science and Technology Graduate School:Department of Business Administration Date:November, 2018 Degree:Master Researcher:Nguyen Viet Cuong Advisor:NgoVi Dung; Chir-HoChang Keywords: Sunjin Vietnam, Working enviroment This dissertation is developed under the context of Sunjin Vietnam is now focusing on the improvement of working condition and paying special attention to a performance culture that values every single employee and promotes a sustainable work-life balance should be embraced Some research objectives are proposed and they are to identify the relationship between Sunjin’s employees’ performance and different aspects of workplace environment and to propose the solutions to improve workplace environment and to obtain higher employees’ performance To fulfill these research objectives, quantitative research method is adopted with primary data is collected from a survey of questionnaire with the managers, the supervisors, and the employees who are working for Sunjin Vietnam The sample size is 200 people in which people is manager, 31 people is supervisor and 160 people is staff Demographic characteristics of 200 respondents are explored and the reliability test and the explanatory factor analysis are conducted Multiple linear regression is utilized to explore the impact of chosen factors on employee performance and these factors are supervisor support, job aid, physical working condition, performance feedback, and workplace incentives 41.1% of variances of employee performance is explained by these factors and performance feedback has highest impact on employee performance From those key findings, some recommendations are proposed in order to boost employee performance at Sunjin Vietnam iv ACKNOWLEDGEMENT I sincerely thank the teacher Prof NgoVi Dung; Chir-HoChang and corporate officers of Sunjin Vietnam joint venture Company devoted to guide and help me complete this thesis Thank you! Author Nguyen Viet Cuong v TABLE OF CONTENTS LIST OF TABLES viii LIST OF FIGURES ix ABSTRACT ix INTRODUCTION 1.1 Research rationale 1.2 Research aims and research objectives 1.3 Research questions 1.4 Scope of the research 1.5 Significance of the research 1.6 Structure of the research LITERATURE REVIEW 2.1 The understanding of key terms 2.1.1 Workplace environment 2.1.2 Employee performance 2.2 Related theories 2.2.1 Need Hierarchy Theory 2.2.2 Two-Factor Theory 2.2.3 Equity Theory 2.2.4 Expectancy Theory 2.3 Factors of workplace environment in influencing on employee performance 10 2.3.1 Supervisor support 10 2.3.2 Job aid 10 2.3.3 Physical workplace environment 11 2.3.4 Performance feedback 11 2.3.5 Workplace incentives 12 2.4 Research model and research hypotheses 12 RESEARCH METHODOLOGY 14 3.1 Research design 14 vi 3.2 Research method 18 3.3 Data collection method 19 3.3.1 Data collection tools 19 3.3.2 Reliability and validity of the data 20 3.4 Questionnaire design 20 3.5 Sampling 23 3.6 Data analysis techniques 24 DATA ANALYSIS AND KEY FINDING 27 4.1 Demographic characteristics of the respondents 27 4.2 Descriptive statistics analysis 31 4.3 Reliability test analysis 34 4.4 Explanatory factor analysis 38 4.5 ANOVA analysis 41 4.6 Multiple linear regression 45 CONCLUSION AND RECOMMENDATION 47 5.1 Conclusion 47 5.2 Recommendation 49 5.3 Limitations and future research 51 REFERENCES 53 vii LIST OF TABLES Table 3-1: Questionnaire’s items for both managers and supervisors and employees 21 Table 3-2: Sample size 23 Table 4-1: Descriptive statistics of items 31 Table 4-2: Reliability test of supervisor support factor 35 Table 4-3: Reliability test of job aid factor 35 Table 4-4: Reliability test of physical working environment factor 36 Table 4-5: Reliability test of performance feedback factor 37 Table 4-6: Reliability test of workplace incentives factor 37 Table 4-7: Reliability test of employee performance factor 38 Table 4-8: KMO and Bartlett’s Test for the group of independent items 39 Table 4-9: Total variance explained by new component of the group of independent items 39 Table 4-10: Rotated component matrix of component of the group of independent items 40 Table 4-11: ANOVA for gender 42 Table 4-12: ANOVA for age 42 Table 4-13: ANOVA for educational background 43 Table 4-14: ANOVA for monthly income 44 Table 4-15: ANOVA for job role 44 Table 4-16: ANOVA for job position 45 Table 4-17: Multiple linear regression 46 Table 5-1: Hypothesis confirmation 48 viii LIST OF FIGURES Figure 2-1: Need Hierarchy Theory Figure 2-2: Two-Factor Theory Figure 2-3: Research model 13 Figure 3-1: Research onion framework 14 Figure 3-2: Research design 16 Figure 4-1: Description of gender variable 27 Figure 4-2: Description of age variable 28 Figure 4-3: Description of education background variable 29 Figure 4-4: Description of monthly income variable 29 Figure 4-5: Description of department variable 30 Figure 4-6: Description of job role variable 31 ix INTRODUCTION 1.1 Research rationale Workplace environment is the combination of factors that exist surrounding the employees (Kohun, 2002) In other worlds, workplace environment refers to physical environment and the policies which are implemented by the firms and they are established to maintain and to improve employee performance (Heath, 2006) Moreover, workplace environment has indirect relationship with the firms’ competitiveness level due to when employee performance is improved, the firms’ performance is improved accordingly (Heath, 2006) It is denoted that the firms need to establish effective workplace environment where the employees feel proud for what they are doing and feel achievement when they finish assigned tasks in high quality manner (Humphries, 2005) According to Farh (2012), the employees feel motivated at work when they perceive that their workplace environment is well-setup Moreover, the study of Leblebici (2012) identifies that effective workplace environment contributes significantly to lower error rate of the employees, to foster innovation at work, and to attain higher employee satisfaction and employee retention Cunnen (2006) argues that when the firms establish good workplace environment, they gain higher opportunity to attract talent candidates from labor market to work for them and the firms gain benefit from lower job turnover intention from existing employees Kohun (2002) affirms that a healthy workplace environment allows the employees to reach higher innovation and creativity at work Challenger (2000) identifies that a healthy workplace environment boosts employee performance and employee productivity According to Chandrasekhar (2011), workplace environment consists of basic components, including physical workplace environment, psychological, and policies Physical workplace environment refers to the layout and the design of working space and equipment (Chandrasekhar, 2011) Psychological is reflected though the relationships among the employees and between the employees and their supervisors (Chandrasekhar, 2011) Policies which are embedded in workplace environment are determined as the documents and they encompass the employees at work (Chandrasekhar, 2011) Due to the industrialization and urbanization, there is an increase in the competition between companies in the field of design consultancy on architecture and urban planning, project of supervisor support, job aid, physical working environment, performance feedback, workplace incentives, and employee performance are 0.654, 0.523, 0.359, 0.178, 0.702, and 0.990 and they are higher than 0.05 Thus, monthly income variable does not impact to the evaluation of people towards chosen factors Table 4-16: ANOVA for monthly income Factors Supervisor support Job aid Physical working environment Performance feedback Workplace incentives Employee performance F Sig 0.613 0.805 1.098 1.592 0.546 0.074 0.654 0.523 0.359 0.178 0.702 0.990 One-Way ANOVA is applied for job role variable F-Test values of supervisor support, job aid, physical working environment, performance feedback, workplace incentives, and employee performance are 5.043, 1.163, 0.930, 1.482, 3.741, and 2.406 P-values of F-Tests of supervisor support, job aid, physical working environment, performance feedback, workplace incentives, and employee performance are 0.007, 0.315, 0.396, 0.230, 0.025, and 0.093 Thus, job role variable impacts significantly on people’s opinion towards supervisor support and workplace incentive factor while job role variable does not have significant impact on other factors Table 4-17: ANOVA for job role Factors Supervisor support Job aid Physical working environment Performance feedback Workplace incentives Employee performance F Sig 5.043 1.163 0.930 1.482 3.741 2.406 0.007 0.315 0.396 0.230 0.025 0.093 One-Way ANOVA is applied for job position variable F-Test values of supervisor support, job aid, physical working environment, performance feedback, workplace incentives, and employee performance are 0.737, 0.801, 0.903, 0.844, 1.163, and 0.267 P-values of F-Tests 44 of supervisor support, job aid, physical working environment, performance feedback, workplace incentives, and employee performance are 0.597, 0.550, 0.480, 0.520, 0.329, and 0.931 Thus, job position variable does not have significant impact on chosen factors Table 4-18: ANOVA for job position Factors Supervisor support Job aid Physical working environment Performance feedback Workplace incentives Employee performance F Sig 0.737 0.801 0.903 0.844 1.163 0.267 0.597 0.550 0.480 0.520 0.329 0.931 4.6 Multiple linear regression It is asserted that 41.1% of variance of employee performance is explained by supervisor support, job aid, physical working environment, performance feedback, and workplace incentives F-Test is statistical significant at 5% of confidence interval, showing that the relationship between dependent variable and independent variables is statistical significant Among independent variables, performance feedback has highest impact on employee performance because of this variable has highest Beta value H1 emphasizes that supervisor supports impact positively on employees’ performance H1 is accepted with T-Test value is 4.013 and p-value is less than 0.05 B and Beta of supervisor support are estimated at 0.137 and 0.224 H2 emphasizes that job aid impacts positively on employees’ performance H2 is accepted with T-Test value is 4.247 and p-value is less than 0.05 B and Beta of job aid are estimated at 0.137 and 0.232 H3 emphasizes that physical working environment impacts positively on employees’ performance H3 is accepted with T-Test value is 2.995 and p-value is less than 0.05 B and Beta of physical working environment are estimated at 0.101 and 0.185 45 H4 emphasizes that performance feedback impacts positively on employees’ performance H4 is accepted with T-Test value is 5.948 and p-value is less than 0.05 B and Beta of performance feedback are estimated at 0.237 and 0.372 H5 emphasizes that workplace incentives impact positively on employees’ performance H5 is accepted with T-Test value is 3.810 and p-value is less than 0.05 B and Beta of workplace incentives are estimated at 0.177 and 0.212 Table 4-19: Multiple linear regression Adjusted R-Square = 0.411; F-Test = 28.756; p-value = 0.000 Model Unstandardized Standardiz t Coefficients ed B Std Error Coefficients Beta (Constant) 0.743 0.238 3.125 Supervisor support 0.137 0.034 0.224 4.013 Job aid 0.137 0.032 0.232 4.247 Physical working 0.101 0.034 0.185 2.995 environment Performance 0.237 0.040 0.372 5.948 feedback Workplace incentives 0.177 0.046 0.212 3.810 Sig 0.002 0.000 0.000 0.003 0.000 0.000 Then, the mathematical equation for the relationship between employee performance and independent variables (supervisor support, job aid, physical working environment, performance feedback, and workplace incentives) are: Employee performance = 0.743 + 0.137 * Supervisor support + 0.137 * Job aid + 0.101 * Physical working environment + 0.237 * Performance feedback + 0.177 * Workplace incentives 46 CONCLUSION AND RECOMMENDATION 5.1 Conclusion This study is developed with the rationales of which Sunjin Vietnam is a market leader in providing design consultancy services in Vietnam and the firm needs to continuously improve workplace conditions, special attention to a performance culture that values every single employee and promotes a sustainable work-life balance should be embraced The objective of the study is to identify the relationship between Sunjin’s employees’ performance and different aspects of workplace environment To achieve this research objective, a survey of questionnaire is established after literature reviews are conducted In term of literature reviews, this study collects the definition of employee performance as well as workplace environment Some theories related to the topic of this study are collected and analyzed such as Need Hierarchy Theory, Two-Factor Theory, Equity Theory, and Expectancy Theory Moreover, literature reviews help to choose which factors of workplace environment impact on employee performance and there are factors which are put into discussion, including supervisor support, job aid, physical working environment, performance feedback, and workplace incentives To quantify the impacts of supervisor support, job aid, physical working environment, performance feedback, and workplace incentives on employee performance in Sunjin Vietnam, a survey of questionnaire is implemented accordingly The survey includes 18 items of independent variables and items of dependent variables It is recapped that the numbers of items of supervisor support, job aid, physical working environment, performance feedback, and workplace incentives are 3, 3, 5, 3, and items and the sample size is 200 people Among 200 people, there are 35 people who come from Concept design department, 35 people who come from Architectural consultant department, 30 people who come from M&E Center, 35 people who come from Structural design center, 30 people who come from Construction cost estimate department, and 35 people who come from Department of general plan, finance and accountant, administration, communication The survey are also sent to managers, 31 supervisors, and 160 staffs of the firm 47 Quantitative data analysis is developed and the first data analysis is frequency analysis with the objective of identifying demographic characteristics of 200 people Then, descriptive statistics analysis is conducted to verify how the respondents agree or disagree or neither agreeing nor disagreeing with each item Obtained result shows that the respondents disagree with the statements of “Job aid is being given within the system itself”, “I satisfy with temperature in my workplace”, “I satisfy with work space, design and layout, “The feedbacks from colleagues help to strengthen my productivity”, “I receive opportunity to participate into decision making”, and “I receive professional promotion” Reliability test is also applied and it is identify that all factors qualify the requirements of this test Moreover, EFA is conducted and the result confirms the research model which is proposed in Chapter ANOVA analysis is also adopted and the result shows that male and female people provide different opinions towards their performance perception and job role variable impacts significantly on people’s opinion towards supervisor support and workplace incentive factor After that, multiple linear regression is applied and it is explore that supervisor support, job aid, physical working environment, performance feedback, and workplace incentives explain for 41.1% of variance of employee performance It is denoted that performance feedback has highest influence on employee performance Table 5-20: Hypothesis confirmation Hypothesis Statement H1 H2 H3 H4 H5 Confirmation Supervisor supports impact positively on employees’ performance Job aid impacts positively on employees’ performance Physical working environment impacts positively on employees’ performance Performance feedback impacts positively on employees’ performance Workplace incentives impact positively on employees’ performance 48 Accepted Accepted Accepted Accepted Accepted 5.2 Recommendation Based on the result of descriptive statistics in which there are some items that have low mean scores, the recommendations are developed and proposed There are First, Sunjin Vietnam needs to focus on supervisor support due to this factor is ranked as third position in term of quantitative impact on employee performance Currently, Sunjin Vietnam has good supervisor support in term of employee performance with the evidence of high mean score value and low standard deviations value in descriptive statistics for supervisor support factor However, it does not mean that Sunjin Vietnam does not need to enhance supervisor support On the other hand, the firm needs to maintain the roles of supervisor support throughout continuous training programs for its supervisors in term of how to manage the team with motivation The training content is mostly about teamwork management and motivation management Sunjin Vietnam should invite the experts who have rich knowledge and experience about teamwork management and motivation management and they share their attitudes to the management team of the firm Second, Sunjin Vietnam needs to focus on job aid due to this factor has second highest influence on employee performance Currently, job aid is not being given within the system itself and it is identified through descriptive statistics analysis although Sunjin Vietnam provides tools to support its employees’ working progress The training for how to use the job aid software must be delivered in order to increase the efficiency of working performance It is denoted that job aid software is managed by Information Technology Department and therefore the functions of job aid software must be monitored and aligned with each functional department Information Technology Department should conduct the survey with users in order to identify the limitations of the software as well as to develop new functions Third, Sunjin Vietnam needs to focus on physical working environment Although this factor has lowest impact on employee performance, the impact of this factor is still significant Physical working environment refers to the condition of sound, lighting, color, temperature, and work space, design and layout Currently, the respondents provide low mean score value for temperature, and work space, design and layout Therefore, Sunjin Vietnam needs to evaluate current temperature level as well as work space, design and layout This task is belonged to 49 Department of general plan, finance and accountant, administration, communication and this department needs to survey the firm’s employees in order to identify which the right temperature for its employees Moreover, working space is identified through the design and the layout and it is recommended that the firm should allow each functional department to propose which design and layout are suitable for its teams The firm may want to develop a competition of which the best design and layout are nominated and recognized in firm-wide level Fourth, Sunjin Vietnam needs to focus on performance feedback due to this factor has highest influence on employee performance Performance evaluation and performance feedbacks is part of performance appraisal process and it is being in-charged by Human Resource Department of Sunjin Vietnam This department needs to develop and to revise performance appraisal policies in which each employee performance is reviewed officially by times per year with one is conducted by first months and second is performed as year-end reviews To evaluate the employees’ performance, Key Performance Indicators must be defined and aligned between the employees and their supervisors In more detail, Key Performance Indicators include quantitative and qualitative metrics and it allows the employees and their supervisors to evaluate both working attitudes of the employees and the quality of working outputs of the employees For quantitative metrics, each job position requires different measurements and it must be assured that each measurement is measurable For qualitative metrics, it is asserted that supervisors evaluate working attitudes of the employees though the ambitious level, the innovative at work level, and the relationship with other employees in workplaces It is demonstrated that qualitative metrics are based on a scale of points with as lowest score and is highest score and the higher score means the higher positive level in working behavior of the employees Sunjin Vietnam should highlight the importance of feedbacks from the colleagues due to people who are involved into survey of questionnaire disagree that the feedbacks from colleagues help to strengthen their productivity In fact, the employees in Sunjin Vietnam are working in teamwork model and individual working performance of one employee is definitely impacting on overall team working performance Through the continuous colleagues’ feedbacks, individual employee understands the issues and they can identify the solutions to further enhance individual job performance and overall team performance accordingly 50 Finally, Sunjin Vietnam needs to focus on workplace incentives due to this factor is ranked as fourth position in term of quantitative impact on employee performance The result from descriptive statistics analysis show that low mean score is given to the fact that the employees in Sunjin Vietnam not receive opportunity to participate into decision making and they not receive professional promotion It is critical issues and Human Resource Department needs to identify the solutions for fixing these issues Promotion policies must be developed and communicated in firm-wide level Promotion policies should be integrated with job enlargement and job enrichment Job enlargement is performed when qualified employees are move to another job role while job enrichment is conducted when qualified employees are allowed to further develop special skills in specific job role Both job enlargement and job enrichment are applied in Sunjin Vietnam and the criteria for these promotion must be defined clearly Moreover, the managers and the supervisors in Sunjin Vietnam should allow their employees to further participate into decision making process It is good way to improve self-awareness of the employees towards assigned tasks as well as increasing recognition at workplace 5.3 Limitations and future research There are few limitations which are recognized when developing this study First, this study is based on quantitative analysis and key findings are extracted from the output of data analysis techniques Quantitative analysis requires the data collected from survey of questionnaire and self-administered questionnaire is utilized accordingly Collected data, however, is not much in-depth compared to the data collected from the interview with people and findings are generalized Second, there are factors influencing on employee performance in Sunjin Vietnam, including supervisor support, job aid, physical working environment, performance feedback, and workplace incentives Multiple linear regression reveals that these factors only explain for 41.1% of variance of employee performance It means that other the variance of employee performance in Sunjin Vietnam is explained by other factors or other factors explain for 58.9% of variance of employee performance Therefore, future researchers need to acquire more factors in their research models in order to obtain higher variance explained value for employee performance Moreover, there are some factors which have Cronbach’s alpha lower than 0.7, including job aid and performance feedback Cronbach’s alpha of job aid and 51 performance feedback are 0.618 and 0.696 To have higher Cronbach’s alpha, future studies should employ more items into examined factors 52 REFERENCES Adams, J S (1963) Inequity in social exchange In L Berkowitz (Ed.)., Advances – Experimental Social Psychology (vol 2) New York: Academic Press Altinay, L., and Paraskevas, A (2008) Planning research in hospitality and tourism (1 st Ed.) 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Certificate of Master''s Degree Examination Board This is to certify that the Master’s Degree Examinations Board has approved the thesis Improve the working enviroment at Sunjin Vietnam joint venture. .. Before the determination of the sample size, it is required the understanding of the population The population of the research is all employees who are working for Sunjin Vietnam Currently, the company. .. CHIA-CHI Date:2018/ 11/ 25 ii iii ABSTRACT Thesis Title? ?Improve the working enviroment at Sunjin Vietnam joint venture Company Pages:51 University:Lunghwa University of Science and Technology Graduate

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    1.2. Research aims and research objectives

    1.4. Scope of the research

    1.5. Significance of the research

    1.6. Structure of the research

    2.1. The understanding of key terms

    2.3. Factors of workplace environment in influencing on employee performance

    2.4. Research model and research hypotheses

    3.3.2. Reliability and validity of the data

    4. DATA ANALYSIS AND KEY FINDING

    4.1. Demographic characteristics of the respondents

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