The impact of human resource performance on employees working motivation case study of vietnam social security

Lunghwa University of Science and Technology Department of Business Administration Thesis for a Master’s Degree The Impact of Human Resource Performance on Employees Working Motivation Case Study of Vietnam Social Security Researcher: NGUYEN HUU VINH Supervisor: Assoc Prof CHIH-CHUNG-CHU Co-Supervisor: Assoc Prof NGUYEN NGOC THANG July 2017 Lunghwa University of Science and Technology Approval Certificate of Master’s Degree Examination Board This is to certify that the Master’s Degree Examination Board has approved the thesis The impact of human resource performance on employees working motivation Case study of Vietnam Social Security published by Mr Nguyen Huu Vinh in the Master Program of Graduate School of Department of Business Administration Master’s Degree Examination Board Board Members: _ _ _ Advisors: Chairman: Date (yyyy-mm–dd) _ AUTHORIZATION AGREEMENT Authorization of Thesis of Lunghwa University of Science and Technology This authorization gives right to use the Author’s Copyright, as the Author studies at the Graduate School of Business and Management in Lunghwa University of Science and Technology, and has completed this Thesis for a Master’s Degree, in the 25th July of 2017 Title of Thesis: The impact of human resource performance on employees working motivation Case study of Vietnam Social Security Supervisor: Assoc Prof Chih-Chung-Chu Co-Supervisor: Assoc Prof Nguyen Ngoc Thang Authorization: Nguyen Huu Vinh I The Author, Nguyen Huu Vinh, agrees to allow Lunghwa University of Science and Technology to use this Thesis, without payment, to be copied, and to be reproduced as a book Lunghwa University of Science and Technology has the right to reproduce the Thesis II The Author, Nguyen Huu Vinh, agrees to follow Rule I and keep this Thesis in the Lunghwa University of Science and Technology data Base The Thesis will be put on the internet, sent by wire and in other ways, for people to read, download, traspmit, print, or use Lunghwa University of Science and Technology has the right to distribute the Thesis III Rule I and Rule II not limit the Author’s copyright The Author retains the Thesis copyright The Author verifies that he/she is responsible for the creation of this Thesis, and holds the sole copyright that does not infringe upon other copyrights If any dispute arises about the copyright, the Author accepts all legal responsibility Condition for Copyright payment： Date for publication on the internet (yyyy/mm/dd) : Author：Nguyen Huu Vinh Signature： Date Signed (yyyy/mm/dd) : ABSTRACT Thesis Title: The impact of human resource performance on employees working motivation Case study of Vietnam Social Security Pages: 99 University: Lunghwa University of Science and Technology Graduate School: Department of Business Administration Date: July 2017 Degree: Master Graduate Student: Nguyen Huu Vinh Advisor: Assoc Prof Chih-Chung-Chu Keywords: HRM, employees, motivation, development, training, participation This thesis examines the HRM practices at Vietnam Social Security (VSS) and the impact of HRM practices on working motivation of VSS’s employees Data used in making analysis was collected from conducting survey at Vietnam Social Security Based on 167 valid responses from employees, the study indentified three components – DEVELOPMENT, PARTICIPATION, and TRAINING – which explain employees’ evaluation of perceived HRM practices at Vietnam Social Security The relationship between these HRM practices components and employees’ motivation is investigated through regression analysis As the result showed, these three components of HRM practices have positive relationship with employees’ motivation in which DEVELOPMENT has the most significant impact on employees’ motivation level In addition, based on these findings, the thesis also gives some suggestions for Vietnam Social Security to further improve HRM and employees’ motivation level Acknowledgement First of all, I would like to send my sincere thanks to the lecturers, especially to my supervisors Assoc Prof Chih-Chung-Chu and Assoc Prof Nguyen Ngoc Thang for their devoted attention, lessons and guidance, which have equipped me with key knowledge and essential skills throughout the course More importantly, everything I have learned here would undoubtedly help me tremendously in my work in the future I would also like to thank International School - Vietnam National University, Nantes University for useful supports during studying and researching to complete this paper This course has equipped and improved and added a lot of knowledge about the different areas In addition, the course also helps me to have a relationship, have the opportunity to share information and learn from other students in the program I am pleased to gratitude leaders and employees of Vietnam Social Security for their enthusiastic support and creating favorable conditions for me to have more useful information to complete thesis In my thesis will not avoid the shortcomings I look forward to receiving comments from lectures and students so that I can add to complete this paper Sincere thanks Author Nguyen Huu Vinh v Table of Contents Acknowledgement v List of Fingure and Tables ix INTRODUCTION 1 Problem identification Research objectives, questions and scope 2.1 Research objectives 2.2 Research questions Research scope, objects and methods 3.1 Objects .2 3.2 Research scope 3.3 Research methods Contribution of the research Structure of the thesis CHAPTER THEORETICAL FRAMEWORK 1.1 Conceptual framework on Human Resource Management 1.2 Human resource management process 1.2.1 Employees participation Error! Bookmark not defined 1.2.2 Recruitment and selection 1.2.3 Training and development 1.2.4 Performance management and appraisals 1.2.5 Compensation and benefits 1.2.6 Promotion 1.3 Motivation 1.3.1 Concepts and characteristics of working motivation 1.3.2 Theories of Employee Motivation 11 1.4 The relationship between HRM practices and working motivation 15 1.5 Literature review 16 vi 1.6 Research Model and Hypotheses 17 1.6.1 Research Model 17 1.5.2 Hypotheses 19 CHAPTER RESEARCH CONTEXT AND METHODOLOGYError! Bookmark not defined 2.1 Overview of Vietnam Social Security 20 2.1.1 History and development of Vietnam Social Security 20 2.1.2 Functions, tasks and organizational structure .22 2.2 Research methods 28 2.2.1 Designing questionnaires 29 2.2.2 Sample and Data Collection 31 2.3 Analyzing data plan 32 2.3.1 Reliability analysis by Cronbach’s alpha 33 2.3.2 Exploratory factor analysis .34 2.3.3 Regression analysis 35 CHAPTER III: ANALYSIS THE REALITY OF HRM PRACICE IN VIETNAM SOCIAL SERCURITY AND SURVEY RESULTS 36 3.1 The reality of VSS’s human resource quality 36 3.1 VSS’s human resource 37 3.1.2 The quality of VSS’s human resource 40 3.2 The reality of some HRM activities in VSS 45 3.2.1 Employees participation 45 3.2.2 Recruitment and selection 45 3.2.3 Training and development .46 3.2.4 Performance appraisals 49 3.2.5 Compensation and employee benefits 50 3.2.6 Promotion 52 3.3 Descriptive Analysis 52 3.3.1 Data description 52 vii 3.3.2 Reliability analysis and scale 53 3.4 Exploratory Factor Analysis 57 3.4.1 Exploratory Factor Analysis of HRM Practice Scale 58 3.4.2 Exploratory Factor Analysis of Motivation Scale 61 3.5 Regression Analysis 64 3.5 Hypotheses tested results 67 CHAPTER 4: FINDINGS AND DISCUSSIONS 69 4.1 HRM Practices and Motivation in Vietnam Social Security 69 4.2 Suggestion to improve HRM practices and create motivation for VSS 70 4.2.1 Improve DEVELOPMENT component 70 4.2.2 Improve PARTICIPATION component 71 4.2.3 Improve TRAINING Component 72 4.2.4 Improve other components of HRM practice 72 CONCLUSION AND LIMITATIONS .74 Limitations of Research 74 Recommendations for future research 75 REFERENCE 76 APPENDIXES 80 viii List of Figures and Tables Figure 1.1 Motivation Equation 12 Figure 1.2 Expectancy Theory 14 Figure 1.3 Research Model 18 Figure 2.1 Organizational structure of VSS 25 Table 2-1: Sample 31 Table 2-2: Encoded Data 32 Table 3.1 The qualification of VSS’s employees in the period from 2005 to2015 40 Table 3.2 The skills reality of VSS’s officers in the period from 2005 to 2015 41 Table 3.3 Age structure of VSS human resource 43 Table 3.4 Numbers of trainees from 2010-2015 48 Table 3.5 Descriptive Analysis 52 Table 3.6 Reliability of scale 54 Table 3-7: Exploratory Factor Analysis of HRM practices 58 Table 3-8: Exploratory Factor Analysis of HRM practice - second time 60 Table 3-9: Exploratory Factor Analysis of Motivation Scale 61 Table 3-10: Exploratory Factor Analysis of Motivation Scale - Second time 62 Table 3-11: Exploratory Factor Analysis of Motivation Scale – Third time 63 Table 3-12: Correlations 64 Table 3-13: Regression Analysis Summary 65 Table 3-14: Regression Analysis Summary - Second time 66 Table 3-15: Hypotheses Tested Results 68 ix INTRODUCTION Problem identification Since the mid-1980s there has been considerable interest in the idea that firms can improve their performance by harnessing the commitment of their employees through human resource management (HRM) practices which should be the determining factor in the success or failure of the organization Firms have increasingly recognized the potential for their people to be a source of competitive advantage Creating competitive advantage through people requires careful attention to the practice that best leverage these assets Currently, Vietnam is in the process of industrialization and modernization Following the experience of Japan and other "Asian dragons", Vietnam has to carry out its own path that consistent with the characteristics of politic, economy, and social culture This is an extremely difficult task to catch up with the advanced level of science and technology of the world in a short period of time with poor infrastructure, backwardness and lack of investment One temporary solution is to increase labor productivity to generate higher returns on the basis of equipment and funds available For reasons mentioned above, motivating labor is a concern of many leaders and managers People always have needs to be satisfied both physically and mentally When employees feel their needs are fulfilled, it will boost employees to work more enthusiastically For individual workers who not have the motivation at works, the goal cannot be achieved because they just completed work assignments without trying to be creative or they just consider the work being done as a duty to perform under the contract labor Therefore, motivation is central to understanding and managing human resource because it explains why people behave as they in organizations Motivating employees to make important contributions to their jobs can have a profound impact on organizational effectiveness Workers only active when they are relatively satisfied their needs are shown the benefits that they are entitled to When employees feel that the benefits they receive not match the spending, they can feel References Appelbaum, E B (2000) Manufacturing advantage: Why high-performance work systems pay off Ithaca NY: Cornell University 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A cross-level analysis using hierarchical linear modelling Journal of Management , 27: 515-535 46 Law on Labor N0 10/2012/QH13 year 2012 47 Law on Social Insurance N0 71/2006/QH11 year 2006 48 Decision No.1215/QĐ-TTg (2013) Development strategy of social insurance sector to 2020 49 Decision No.200/QD-BHXH The plan of training, fostering and professional training for units in the social insurance sector 50 Decision No.99/QD-BHXH (2015) The Social Insurance of Vietnam regulating the functions, tasks, powers and organizational structure of local social insurance 51 Decree No 43/2006/ND-CP (2006) The right to autonomy and self-responsibility for the performance of organizational, staffing and financial tasks of public administrative organizations 79 APPENDIX Reliability statistics of PARTICIPATION scale Cronbach's Alpha Based on Standardized Items 663 Cronbach's Alpha 666 N of Items Item-Total Statistics Scale Mean if Item Deleted Scale Variance if Item Deleted Corrected Item-Total Correlation Squared Multiple Correlation Cronbach's Alpha if Item Deleted Participation 11.31 3.097 546 335 525 Participation 11.33 3.133 530 329 538 Participation 10.96 3.710 483 242 581 Participation 11.13 4.209 251 065 716 Reliability statistics of APPRAISAL scale Cronbach's Alpha Cronbach's Alpha Based on Standardized Items N of Items 601 592 Item-Total Statistics Scale Corrected Squared Cronbach's Scale Mean if Variance if Item-Total Multiple Alpha if Item Item Deleted Item Deleted Correlation Correlation Deleted Appraisal 10.88 2.016 630 440 321 Appraisal 10.49 2.345 406 332 511 Appraisal 11.16 2.351 407 212 511 Appraisal 11.84 3.139 123 050 695 80 Reliability statistics of TRAINING scale Cronbach's Alpha Cronbach's Alpha Based on Standardized Items N of Items 665 660 Item-Total Statistics Corrected Scale Mean if Scale Variance Item-Total Item Deleted if Item Deleted Correlation Squared Multiple Correlation Cronbach's Alpha if Item Deleted Training 11.19 2.250 549 394 525 Training 11.31 2.067 614 433 472 Training 11.12 2.986 199 046 746 Training 12.31 2.491 456 238 592 Reliability statistics of DEVELOPMENT scale Cronbach's Alpha Cronbach's Alpha Based on Standardized Items N of Items 643 648 Item-Total Statistics Scale Corrected Scale Mean if Variance if Item-Total Item Deleted Item Deleted Correlation Squared Multiple Correlation Cronbach's Alpha if Item Deleted Development 9.78 2.055 502 277 514 Development 10.24 2.094 397 192 600 Development 10.55 2.281 533 294 509 Development 10.36 2.627 288 121 658 Reliability statistics of COMMITMENT scale Cronbach's Alpha 589 Cronbach's Alpha Based on Standardized Items 620 81 N of Items Item-Total Statistics Scale Scale Mean if Variance if Item Deleted Item Deleted Corrected Item-Total Correlation Squared Cronbach's Multiple Alpha if Item Correlation Deleted Commitment 19.85 6.341 411 444 516 Commitment 21.48 11.253 -.641 528 832 Commitment 20.39 6.271 548 360 482 Commitment 20.76 5.639 584 472 445 Commitment 19.99 5.833 569 472 457 Commitment 20.63 5.268 599 449 425 Commitment 21.54 5.374 610 579 426 Reliability statistics of SATISFACTION scale Cronbach's Alpha Cronbach's Alpha Based on Standardized Items N of Items 854 854 Item-Total Statistics Scale Mean if Item Deleted Scale Variance if Item Deleted Corrected Item-Total Correlation Squared Multiple Correlation Satisfaction 11.75 3.586 697 531 Satisfaction 11.85 3.432 717 553 Satisfaction 12.33 3.406 688 504 Satisfaction 11.54 3.586 682 490 Source: SPSS 21 Software Output 82 APPENDIX QUESTIONAIRE – VIETNAMESE VERSION Mã phiếu: PHIẾU KHẢO SÁT MỐI QUAN HỆ GIỮA HOẠT ĐỘNG QUẢN TRỊ VÀ ĐỘNG LỰC LÀM VIỆC CỦA NHÂN VIÊN Xin chào Anh/Chị Xin phép mong Anh/Chị bớt chút thời gian để tham gia đóng góp ý kiến cách khách quan Thơng tin mà Anh/Chị trao đổi giữ bí mật sử dụng cho mục đích nghiên cứu Thời gian trao đổi vài phút, mong Anh/Chị giúp đỡ Cám ơn Anh/Chị nhiều! I Thông tin cá nhân Anh/Chị vui lịng cho biết giới tính:  Nam  Nữ Anh/Chị làm việc phòng/ ban Bảo Hiểm Xã Hội Việt Nam chức vụ tại? Phòng:…………………………………….Chức vụ: ………………………………… Độ tuổi Trình độ học vấn Dưới 20 Trung học phổ thông Từ 20 - 29 Trung cấp, cao đẳng Từ 30 - 39 Đại học Từ 40 - 49 Sau đại học Trên 50 Thâm niên công tác Anh/Chị Bảo Hiểm Xã Hội Việt Nam?  Ít năm  Từ đến 15 năm  Từ đến năm  Trên 15 năm Thời gian công tác Anh/Chị phịng/ban tại?  Ít năm  Từ đến 15 năm  Từ đến năm  Trên 15 năm 83 II Đánh giá hoạt động quản trị nhân công ty Chỉ dẫn: Anh/Chị khoanh tròn vào lựa chọn phù hợp phát biểu sau: Các hạng mục Hoàn toàn Không không đồng ý đồng ý Đồng ý phần Đồng ý Hoàn toàn đồng ý Sự tham gia nhân viên Tôi quyền định số vấn đề cơng việc nằm lực Tơi cấp khuyến khích tham gia vào trình định Tơi có hội đưa ý tưởng cải tiến nhằm hoàn thiện hoạt động công ty Tôi không gặp khó khăn việc giao tiếp trao đổi với cấp Tôi tin bảng đánh giá thành tích đánh giá xác hiệu làm việc Tôi tự đánh giá hiệu lao động Tơi nhận phản hồi góp ý cấp hiệu làm việc Tơi nhận tiền thưởng hồn thành tốt cơng việc 5 5 Đánh giá hiệu suất làm việc Cơ hội đào tạo Tôi đào tạo đầy đủ kỹ để thực tốt công việc Các chương trình đào tạo cơng ty tương đối tốt Công ty tạo điều kiện cho học tập để nâng cao kiến thức kỹ làm việc Cơ hội đào tạo chia nhân viên nhân viên 84 Các hạng mục Hồn tồn Khơng khơng đồng ý đồng ý Đồng ý phần Đồng ý Hoàn toàn đồng ý Phát triển nghề nghiệp Tôi giới thiệu định hướng công việc rõ ràng ngày làm việc Cấp hiểu rõ nguyện vọng nghề nghiệp Sự thăng tiến chuyển đổi công việc công ty thực công Tơi có nhiều hội phát triển tương lai III Đánh giá yếu tố động lực làm việc Chỉ dẫn: Anh/Chị khoanh tròn vào lựa chọn phù hợp phát biểu sau: Hồn tồn khơng đồng ý Khơng đồng ý Đồng ý phần Đồng ý Hồn tồn đồng ý Tơi sẵn sàng làm việc chăm để giúp công ty thành công Mức độ gắn bó với cơng ty thấp Tơi nhận thấy có nhiều giá trị chung tơi công ty Công ty truyền cảm hứng tốt cho làm việc Tôi tự hào làm việc công ty Tơi làm cơng ty việc để có tiếp tục làm việc Tôi từ chối công việc khác với mức lương cao để lại công ty Các hạng mục Mức độ gắn kết nhân viên 85 Hồn tồn khơng đồng ý Khơng đồng ý Đồng ý phần Đồng ý Hồn tồn đồng ý Tơi hài lịng với đặc điểm, tính chất cơng việc Tơi hài lịng với thành tích công việc Tôi hài lịng với cống hiến cơng việc Tơi hài lịng với mức độ ảnh hưởng đến cơng việc Các hạng mục Mức độ hài lòng cơng việc Xin cảm ơn đóng góp Anh/Chị! 86 APPENDIX QUESTIONAIRE – ENGLISH VERSION CODE: … QUESTIONAIRE The relationship between human resource management and motivation of Vietnam Social Security’s employees Dear Colleague, Please spend your precious time to contribute your comments in the most objective way for this survey Your opinion will be kept confidential and will only be used for research purposes I GENERAL INFORMATION Gender:  Male  Female Which department/unit are you working in Vietnam Social Security? And your position? Department/Unit:……………………………….Position: ………………………………… Age Qualification under 20 High school From 20 - 29 Vocational, college From 30 - 39 Undergraduate From 40 - 49 Post graduate over 50 Your working experience in Vietnam Social Security?  Less than year  From years to 15 years  From year to under years  More than 15 years Your working time in current department/unit?  Less than year  From years to 15 years  From year to under years  More than 15 years 87 II Evaluating HRM practices in Vietnam Social Security Instruction: Circle your best choice in each of the following statements Items Strongly somewhat disagree disagree neither agree somewhat strongly nor agree agree disagree DIRECT EMPLOYEE PARTICIPATION In firm, employees are allowed to make many decisions Employees are often asked by their supervisors to participate in decisions Employees are encouraged to suggest improvement in the way jobs are done Supervisors keep open communication with employees in firm Company uses performance assessment system that accurately evaluates the performance of employees Firm uses employee’s self-ratings on performance Superiors in firm frequently discuss performance with subordinates Firm will give bonus or reward for employee who doing good job Employees are fully trained skills to their job The company’s training programs are relatively good Company facilitates employees in training to improve knowledge and skills Company provides formal training to promote skills to new hires as well as to existing employees PERFORMANCE APPRAISAL TRAINING 88 Items Strongly somewhat disagree disagree neither agree somewhat strongly nor agree agree disagree CAREER DEVELOPMENT Employees got clear work orientation in the first day of working Superiors understand the career aspirations of employees The work promotion and transformation in the company are done fairly Employees have a lot of opportunities to develop in future III Evaluating Working Motivation Factors Instruction: Circle your best choice in each of the following statements Items Strongly somewhat disagree disagree neither agree somewhat strongly nor agree agree disagree ORGANIZATIONAL COMMITMENT I am willing to work harder than I have to in order to help this organization succeed I feel little loyalty to this organization I find that my values and the organization's values are very similar This organization really inspires the very best in me in the way of job performance I am proud to be working for this organization I would take almost any job to keep working for this organization I would turn down another job with more pay in order to stay with this organization 89 Items Strongly somewhat disagree disagree neither agree somewhat strongly nor agree agree disagree INTRINSIC JOB SATISFACTION I am satisfied with the sense of achievement I get from my work I am satisfied with the scope for using my own initiative I am satisfied with the amount of influence I have over my job I am satisfied with the work itself THANKS FOR YOUR COPORATION 90 ... competitive advantages From these facts, the author has chosen the research topic ? ?The impact of human resource performance on employees working motivation Case study of Vietnam Social Security? ?? is necessary... include the working motivation of VSS employees? ?? and the relationship between HRM practices and their working motivation So I also based on investigate results of the reality of VSS’s human resource. .. solution for HRM practice and create working motivation for VSS employees in the future 3.2.Research scope The study mentioned the employees? ?? working motivation in Vietnam Social Security and the