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FACTORS EFFECT JOB SATISFACTION AND ORGANIZATIONAL
COMMITMENT
A CASE STUDY OF TRAN DUC GROUP
BY TRUONG QUOC VIET
(VIETNAM)
COACH Dr. VO VAN HUY
This proposal was submitted in partial fulfillment of the
requirements for the Masters of Business Administration (MBA)
degree at the Maastricht School of Management (MSM), Maastricht,
the Netherlands, April 2009.
Maastricht School of Management P.O. Box 1203 6201 BE Maastricht
The Netherlands
C/o HCMC University of Technology, 268 Ly Thuong Kiet, D.10, HCM
City Vietnam, Tel: (84-8) 8660 898 - Fax: (84-8) 8660 899 - E-mail:
[email protected]
Maastricht MBA
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ACKNOWLEDGEMENTS
First of all, I would like to express my deepest gratitude and
great appreciation to Dr. Vo Van
Huy, my coach, for his guidance, valuable advices and great
support in developing my thesis.
I would like to express my sincere thankfulness to Mr. Hoang
Trong for giving me his inspiration, thoughtful guidance and
sharing his valuable knowledge about SPSS program for
the completion of my thesis.
Also thanks go to my colleagues and staff at Tran Duc Group who
assisted me in collecting data during the fieldwork stage, to
people at MSM office for their continuous support during last
years.
Last, but not least I would like to thanks all professors,
lectures, tutors, and my classmate for their support during my
learning time at the MBA program of the MSM
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ABSTRACT
This study examines what factors motivates the worker involved
in the wood industry in Tran Duc group, their level of job
satisfaction and relationship between job satisfaction and
organizational commitment. Wood industry is a critical industry
which accommodates an increasing export up to 300% in three years.
Data collected by a survey of stratified random sampling of 350
manufacturing workers at three factories of Tran Duc group. A
Likert-scale type questionnaire was used to detect employment
attitudes, job satisfaction and organizational commitment.
Hierarchical regression analysis was used to analyze the data of
the study. Companys vision, job security, leadership support, pay
& benefits, and co-worker relation are found significant
determinants of job satisfaction and organizational commitment. The
finding of this study provide valuable insights for the management
of Tran Duc group understanding the factors
effecting job satisfaction and organizational commitment as well
as relationship between job satisfaction and organizational
commitment.
Key words: Job satisfaction, organizational commitment,
turnover.
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TABLE OF CONTENTS
I. Introduction
...................................................................................................
9
1.1 Vietnam wood industry introduction
....................................................... 9
1.2 Tran Duc group
introduction.................................................................
10
1.3 Statement of the problem
......................................................................
11
1.4 Purpose of research & objectives
.......................................................... 12 1.5
Scope & Limitations
.............................................................................
13
1.6 Thesis
structure.....................................................................................
13
II. Review of literature
...................................................................................
15
2.1 Job satisfaction
.....................................................................................
15
2.2 Factors affecting to job satisfaction
........................................................ 16 2.3 Job
satisfaction theories
........................................................................
17
2.3.1 Two-Factor Theory (Motivation-Hygiene Theory)
........................ 17 2.3.2 Affect
Theory................................................................................
18
2.3.3 Dispositional
Theory.....................................................................
18
2.3.4 Equity Theory
...............................................................................
18
2.4 Theory application
................................................................................
19
2.5. Organizational commitment
.................................................................
20
2.6. Factors affecting to organizational commitment
................................... 22
2.6.1 Personal characteristics
.................................................................
22
2.6.2 Organization structure
...................................................................
22
2.6.3 Work experience
...........................................................................
22
2.7. Models of Retention-Turnover
..............................................................
23
2.8 Importance of job satisfaction and organizational commitment
.............. 24 2.9 HR practice in Tran Duc group
.............................................................
26
2.9.1 Regulations and
Policy..................................................................
26
2.9.2 Job description
.............................................................................
26
2.9.3 Recruitment process
......................................................................
27
2.9.4 Training
.......................................................................................
27
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2.9.5 Skill evaluation
............................................................................
28
2.9.6 Pay, allowance, benefits and
bonus................................................ 28
III. Research Methodology:
.................................................................................
29 3.1 Proposal research model
.......................................................................
29 3.2 Instruments
...........................................................................................
29
3.3 Participation
..........................................................................................
29
3.4 Translation and pre-test reliability of questionnaire
................................ 29
3.5 Research hypotheses
.............................................................................
30
3.6 Research methodology
..........................................................................
32
3.7 Data collection
......................................................................................
32
3.7.1 Primary
data..................................................................................
33
3.7.2 Secondary data
..............................................................................
33 3.8 Method of analysis.
................................................................................
33
3.8.1 Assessment of measurement of scale
............................................. 33
3.9 Measurement scales of the
questionnaire................................................
34
3.10 Source of measurement
scales..............................................................
34
IV. Research
findings:.............................................................................................
38
4.1 Sample characteristics
...........................................................................
38
4.1.1 Sample
.........................................................................................
38
4.1.2 Gender
..........................................................................................
38 4.1.3 Age
...............................................................................................
38
4.1.4 Marital
status.................................................................................
38
4.1.5 Education
level..............................................................................
39
4.1.6 Year of experience
.......................................................................
39
4.1.7
Salary............................................................................................
39
4.2 Assessment of measurement scale
......................................................... 40
4.2.1 EFA for scale of
factors.................................................................
40
4.2.2 EFA for all scale of factors together
.............................................. 42
4.3 Testing model and hypotheses
.............................................................. 45
4.3.1 Revising the research
model..........................................................
45
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4.4 Finding and discussion
..........................................................................
51
4.5 Finding
.................................................................................................
52
4.6 Managerial
implications.........................................................................
56
V. Conclusion, discussion and recommendations
.................................................... 58 5.1
Conclusion
............................................................................................
58
5.2
Recommendations..................................................................................
60
5.2.1 Building a skillful team
.................................................................
60
5.2.2 Building a training
system.............................................................
60
5.2.3 Building a skill matrix system and skill-base salary
increase ......... 60
5.2.4 Building a reward & recognition System
...................................... 60
5.2.5 Designing job levels.
.....................................................................
60 5.2.6 Building organization culture.
....................................................... 61
5.2.7 Upgrade or invest high-tech processing machine
........................... 61
5.2.8 Monthly performance feedback
..................................................... 61
5.3
Limitations.............................................................................................
61
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LIST OF TABLES
Table 1.1 : Vietnam wood industry revenue
...................................................................
9
Table 1.2: Tran Duc JS resignation rate in
2008............................................................
11
Table 3.1: Measurement scales of Job dissatisfaction and
organizational commitment.. 36
Table 4.1: Sample distribution by gender
....................................................................
38
Table 4.2: Sample distribution by
age...........................................................................
38
Table 4.3: Sample distribution by marital status
........................................................... 39
Table 4.4: Sample distribution by education
level.........................................................
39
Table 4.5: Sample distribution by year of
experience....................................................
39
Table 4.6: Sample distribution by salary
.......................................................................
40
Table 4-7: Unidimentionality and reliability test results
................................................ 41
Table 4.8: KMO and Bartlett's Test
..............................................................................
43
Table 4.9: Total Variance Explained
............................................................................
43
Table 4.10: Result of joint factor analysis for 7 scales
.................................................. 44
Table 4.11 Revised undimentionality and reliability for 2 new
factors ..45
Table 4.12: Model Summary
(b)...................................................................................
46 Table 4.13: Anova (b)
..................................................................................................
46 Table 4.14: Coefficients (a)
..........................................................................................
46 Table 4.15: Levels of importance factors on Job
Satisfaction........................................ 48
Table 4.16: Model Summary
(b)...................................................................................
48 Table 4.17: Anova (b)
..................................................................................................
49 Table 4.18: Coefficients (a)
..........................................................................................
49 Table 4.19: Levels of importance factors on Organizational
commitment ..................... 51
Table 4.20: R square value
...........................................................................................
52
Table 4.21: Regression result between job satisfaction and
organizational commitment 52 Table 4.22: F and Sig. value
.........................................................................................
52
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LIST OF FIGURES
Figure 2.1: Job Satisfaction Model (Justin Field 2008)
.................................................. 16
Figure 2.2: Adams Equity Theory diagram - job
motivation......................................... 20
Figure 2.3: Factors Affecting Job Satisfaction and
Organizational Commitment ........... 23
Figure 2.4: Research model proposals
..........................................................................
25
Figure 4.1: Revised model
...........................................................................................
55
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CHAPTER I
INTRODUCTION
1.1 Vietnam wood industry introduction
Vietnams wood and furniture industry has grown tremendously in
the past few years. In merely
4 years, the industrys total export volume rose by 300% from USD
460.2 million in 2002 to USD 1932.8 million in 2006 and 2800
million in 2008. This made Vietnam the second largest exporter of
wooden goods in Southeast Asia. Furthermore, the wood processing
industry has become an important industry in Vietnam, as it is
today the fifth largest source of export earnings in Vietnam after
oil, garment & textiles, footwear, seafood & rice, etc
Table 1.1 Vietnam wood industry revenue
Vietnam 2003 2004 2005 2006 2007 2008 2009 (est)
Volume (US mil) 600 1100 1600 2000 2500 2800 3200
Source: www.vietnamnews.vnagency.com.vn
Vietnam has developed into the fourth biggest wood product
exporter in ASEAN, following Malaysia, Indonesia and Thailand. It
can be said that Vietnams wood industry has great potentiality as
despite its position among Vietnams leading export industries,
Vietnams wood products now account for only 0.78 % of the global
market share. So far, China is considered as
the most redoubtable competitor of Vietnam in term of wood
processing, having the leading position in wood product
exporter.
Despite a lot of advantages for development, Vietnams wood
processing and fine art industry
is, like other industries, facing with series of difficulties
and severe challenges, especially the impacts put by the
international economic crisis. Recent new regulations provided by
the two export markets, US and EU, such as the FSC (Forest
Stewardship Council) requirement, have posed barriers to Vietnams
wood product exporters. In addition, the 80 % dependence on
imported materials has brought about a lot of difficulties in
entering these two big markets.
Another problem that most of Vietnamese wood furniture companies
facing is productivity of
labor and capital. Productivity of Vietnams worker reached USD
10,000 per year in 2008 meanwhile Chineses reached USD 15,000. The
productivity rising in 2008 could not cover high interest rate,
price hikes and investment cost. In spite of efforts to overcome
the difficulties,
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several Vietnamese wood companies have to stop production, even
suffering from loss and bankruptcy. Productivity of capital has a
problem due to poor financial management which can result from poor
cash flow and a lack of experience. If calculating capital effect
(fixed and working capital), Vietnam need VND 0.91 to create a VND
1 in 2008
The big problem accompanying with growth up of industry is
demand for wood processing
worker in wood furniture industry has continuously been
increasing during the recent years, especially in 2008 needed
170,000 workers. However, Vietnam lacking of resources through
training and education wood processing, so almost skilled workers
learned by working. The given situation has resulted in the
movement of the wood skilled workers between
organizations. In front of such situation, many of companies
become awkward because of the leaking and lacking skilled workers
serving their jobs. They understand that losing the skilled workers
is a big problem since may it cause a threat to the success of
their businesses. High rate of labor turnover rate in wood
processing business is affecting to whole of industry. Researching
on causes of labor turnover of the industry is necessary to work
out measures to reduce this rate
and stabilize the workforce of the industry and opportunity for
employees. Managers in many companies wondered how to retain
skilled workers and whether satisfying their work related needs
would help.
1.2 Tran Duc group introduction
The Tran Duc Group is one of the leading manufacturers of garden
and indoor furniture and
flooring in Vietnam. Operating since 2000 the Tran Duc Group has
successfully developed a reputation for quality furniture and
service excellence.
The group currently consists of five companies owned and
operated wholly by the Tran Duc
Group. Tran Duc Joint Stock and Furniture Global Corporation are
responsible for manufacturing the entire garden furniture program
while Tran Duc One is the indoor furniture facility. Sao Nam
currently manufactures our indoor flooring and packaging and also
hosts the log yard and drying facilities.
In addition to manufacturing the Tran Duc Group in 2007 created
the Tran Duc Forest Management Services Company which is
responsible for the acquisition and management of plantation
forests in Vietnam. Currently the Tran Duc Group owns two
plantation areas in
central Vietnam holding 1500 ha of Acacia trees which are under
Tropical Forest Trust certification.
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1.3. Statement of the problem
During the past decade, employee turnover has become a very
serious problem for organizations. Managing retention and keeping
the turnover rate below target and industry norms is one of the
most challenging issues facing business. All indication points
toward the issue are compounding in the future and, even as
economic times changed, turnover will
continue to be an important issue for most job groups. Yet
despite these facts employee turnover continues to be the most
unappreciated and undervalued issue facing business leaders. There
are a variety of reasons for this, for example, the true cost of
employee turnover is often
underestimated. The causes of turnover are not adequately
identified, and solutions are often not
matched with the causes, so they failed. Preventive measures are
either not in place or do not target the issues properly, and
therefore have little or no effect, and a method for measuring
progress and identify monetary value on retention does not exist in
most organizations.
Being aware of the critical role of skilled workers in the wood
furniture company, Tran Duc Group, which specialized in processing
indoor and outdoor wood furniture with over 2,500 workers facing
the same issue are striving to attract and retain skilled workers
by various measures such as increasing salary much higher than
Government law about the limit salary,
house & fuel allowance, skill allowance. However, turnover
rate among workers has still increased during last year even though
that is high season, low season or year end.
Table 1.2 Tran Duc JS resignation rate in 2008
Month Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08
Sep-08 Oct-08 Nov-08 Dec-08
Resignation (#) 105 76 97 150 134 149 121 69 42 66 79 89
Rate (%) 10 8 10 17 17 23 23 14 8 12 13 12
Source: Tran Duc HR department
Turnover intension impacts negatively on product quality,
productivity and performance of the company. Moreover, it is costly
and not easy to figure out for this hidden cost. Cost of labor
turnover includes expenses on procedures for separations and on
training replacements, losses of productivity when skilled workers
spend time training new apprentices, waste caused by production of
more bad products by new laborers. To obtain enough skill for a
stage of production line, the worker needs at least trained 15 days
before their skills are fully estimated. Therefore, stable
front-line workforces with artistic skills and honesty at whole
production process are valued to the company. The shortage of labor
resource adds more difficulty to the company which its key resource
is man power. The labor shortage may slowdown the operation
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expansion of the company and leads to miss business
opportunities, delaying delivery, resulting in customer canceling
contracts.
Why turnover is high after company spent more effort? What does
the worker want? What are their needs? Are they satisfied with
their current jobs, current salaryies and allowances? Is there
relationship between satisfaction and worker retention? In order to
has right solution to this
problem in wood furniture industry under current social-economic
context, The Board of Management needs to understand in more
details about those issues namely are the worker preferring better
salary, promotion opportunity or motivation, working environment,
good relationship with boss/peers, or company culture? Research all
factors effect to retain worker is
necessary not only in adds an insight into the issue of humane
resource management in Tran Duc Group but also responding to this
situation in the long run
1.4. Purpose of research & objectives
Frederick Herzbergs two factor theory attempts to explain
satisfaction and motivation in the workplace. This theory states
that satisfaction and dissatisfaction are driven by different
factors motivation and hygiene factors, respectively. An employees
motivation to work is continually
related to job satisfaction of a subordinate. Motivation can be
seen as an inner force that drives individuals to attain personal
and organization goals (Hoskinson, Porter, & Wrench, p.133).
Motivating factors are those aspects of the job that make people
want to perform, and provide people with satisfaction, for example
achievement in work, recognition, promotion
opportunities. These motivating factors are considered to be
intrinsic to the job, or the work carried out. Hygiene factors
include aspects of the working environment such as pay, company
policies, supervisory practices, and other working conditions.
Besides job dissatisfaction, the low level of organizational
commitment is also correlated to turnover (Angle & Perry 1981,
Arnold & Feldman 1982, OReilly & Chatmen 1986, Porter at al
1976.). Studies of job satisfaction and organizational commitment
to predict factors effected to personnel retention and
productivity. Charles Glisson and Mark Durick 1988 reported that a
combination of both satisfaction and commitment may form employee
morale. Defining factors that impact on employee satisfaction and
commitment are potential paths to find a solution to reduce
turnover
The purpose of this study was to determine factors effected to
job satisfaction and relationship between job satisfaction and
organization commitment. Vietnams economic comes down due to worlds
economic crisis, unemployment rate increase, so almost employees
try to keep their
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jobs, therefore level of turnover is low. However, what happens
when world economy was recovered? The waves of workforces moving
will re-occur, turnover may be increased in next few years. A
research result is necessary to the Tran Duc Groups Board of
Management find
out long-term solutions for retaining skilled workers
In response to the above stated problems, this is the aim of
research :
1. To quantitatively determine antecedent factors effecting to
job satisfaction and organizational commitment of production
workers in Tran Duc group
2. To determine relationship between level of job satisfaction
and that of organizational commitment, this study investigated
relationship between the level of satisfaction of each of facets of
job satisfaction and that of organizational commitment
3. To draw recommendations to improve retention of worker in
Tran Duc Group
1.5. Scope & Limitations
Given the limited of sources and time, the research only focuses
on the production workers and a survey will be taken place at Tran
Duc Joint Stock, and Furniture Global and Tran Duc One Factory.
1.6 Thesis structure
This study report is presented in five chapters as follow:
Chapter 1 - Introduction provides a brief introduction to wood
industry, overview of Tran Duc group, the research problem, core
objectives, scope of the study and structure of the research
report.
Chapter 2 - Literature Review provides some conceptual
definitions of human resource construction, theories of Job
Satisfaction and Organizational Commitment. Also it reports
several literature reviews of Job Satisfaction and
Organizational Commitment and a discussion of previous researches
on Job Satisfaction, Organizational Commitment and Employee
Turnover.
Chapter 3 - Research Methodology introduces the research model
and hypotheses. Then it justifies the methods used to evaluate
measurement scales and test the research model and hypotheses. This
chapter is covers the general approach and construct measurement of
the study,
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the source of primary and secondary information to be used, data
collection method including the design of questionnaire and
sampling method.
Chapter 4 - Data Analysis and Findings presents the description
of the sample and response rate of the survey, the practical
assessment and refinement of measurement construction, results of
testing theoretical model and hypotheses.
Chapter 5 - Conclusion, Discussion and Recommendations
summarizes and discusses the key findings of the research, then
suggests recommendations for improving job satisfaction and
organizational commitment.
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CHAPTER II:
REVIEW OF LITERATURE
Over the years, many studies relating to personal in term of
human needs, job satisfaction and organizational commitment have
been conducted, however, almost focus on staff but worker. In this
literature review, factors effect job satisfaction and
organizational commitment will be represented. Then, the model of
job satisfaction and organizational commitment will be proposed for
this specific study, which provides a basis for development for
hypotheses.
2.1 Job satisfaction
Job satisfaction and motivation have widely been investigated in
many job situations and against many different theoretical
formulations. Frederick Herzberg's motivation-hygiene factor
theory, although considered nontraditional when it was introduced
in 1959, has become one of the most used, known, and widely
respected theories for explaining motivation and job satisfaction.
For instance, Maidani (1991) made a comparative study of Herzberg's
theory in private and public sector jobs. His analysis showed that,
for employees in both sectors, the motivation to work tended to
emphasize intrinsic, or motivating, factors. One interesting result
of his work was that
public-sector workers tended to value extrinsic, or hygiene,
factors significantly more than did workers in the private
sectors.
Herzberg's theory divides motivation and job satisfaction into
two continua. The theory differentiates between factors that are
considered to be intrinsic to a job, such as responsibility, and
factors that are extrinsic but important to a job, such as working
conditions. The factors that are inherent to the job are those that
affect motivation. To put it in Herzberg's (1968) own words, "The
only way to motivate the employee is to give him challenging work
in which he can
assume responsibility." Conversely, the extrinsic factors affect
job satisfaction. Moreover, problems in the job satisfaction
factors can serve as barriers to motivation, even if the motivating
factors themselves are addressed satisfactorily.
Job satisfaction means the degree in which an individual feels
towards different sides of their job (pay, promotion, supervision,
fringe benefits, contingent rewards, operating procedures,
coworkers, nature of work and communication) which determine their
work performance. ( Paul E. Spector 1997)
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Figure 2.1: Job Satisfaction Model (Justin Field 2008)
2.2 Factors affecting to job satisfaction
Growth Aspect: This is one of the key factors, without which
there can not be job satisfaction. For some individuals personal
growth in terms of skills and knowledge gained is only important
whereas for some others in addition to knowledge, growth in
hierarchy is important. In either case advancement is a key factor
to fulfillment.
Money talks: Adequate compensation drives ones interest in the
job execution and their performance, so let us not fool our self
that money does not matter. There are a few among us who work not
only earn a living but also keep themselves occupied, even if this
is the case it
becomes necessary that such individuals be paid as per the
industry standard.
Responsibility & Accountability: Responsibility or May I say
freedom of action is another important factor that needs to be
considered while you measure your job satisfaction. Responsibility
and accountability boosts most peoples level of interest in the
job.
Job Security: Stability and Security is vital to everyone and at
all times. Security in terms of job is no exception. Insecurity in
job is very likely to affect performance, morale and
confidence.
Recognition: Let be true to ourselves and agree that we all love
to be recognized and
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appreciated for the work that we do. Recognition is essential as
it helps increase confidence and self esteem. It is highly
important to know the outcome of a task assigned in terms of good
or bad appraisal so as to help them to improve their
potentiality.
Enjoyment: It would be wise if everyone asks himself / herself
if he/she enjoys his/her work. Enjoyment at work comes with
satisfaction. Do you look forward to going to work? Do you await
results of some important tasks that you complete the previous day?
Even if your job is some kind of routine work if you feel a sense
of pride and achievement then you definitely enjoy your job.
People you work with: Being comfortable with the people we work
with high necessity.
Unpleasant relationships at the work place are indication to
start looking for a new job as it is very difficult to work with
those who you hate or can not relate to. One should not try to find
best friends in their co-workers but its important that you get
along well with all.
Working hours & conditions: Long hours induces fatigue and
tiredness among individuals, which might induce oversight in them
and in such condition people make mistakes which take more time to
be solved. One does and should have a life outside work. Long hours
without breaks should be a strict no! If one is required to put in
long hours make sure you are getting
compensation or getting knowledge and experience that you can
not afford to loose. Working conditions should be comfortable.
Perks: Perks last but not the least is another important factor
in terms of job satisfaction. Your designation derived from your
talent and knowledge should be eligible for some privileges.
2.3 Job satisfaction theories
2.3.1 Two-Factor Theory (Motivation-Hygiene Theory)
Frederick Herzbergs two factor theory attempts to explain
satisfaction and motivation in the
workplace. This theory states that satisfaction and
dissatisfaction are driven by different factors motivation and
hygiene factors, respectively. An employees motivation to work is
continually related to job satisfaction of a subordinate.
Motivation can be seen as an inner force that drives individuals to
attain personal and organization goals (Hoskinson, Porter, &
Wrench, p.133). Motivating factors are those aspects of the job
that make people want to perform, and provide people with
satisfaction, for example achievement in work, recognition,
promotion
opportunities. These motivating factors are considered to be
intrinsic to the job, or the work
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carried out. Hygiene factors include aspects of the working
environment such as pay, company policies, supervisory practices,
and other working conditions.
While Hertzberg's model has stimulated much research,
researchers have been unable to reliably empirically prove the
model, with Hackman & Oldham suggesting that Hertzberg's
original formulation of the model may have been a methodological
artifact. Furthermore, the theory is
not considered as individual differences, conversely predicting
all employees will react in an identical manner to changes in
motivating/hygiene factors. Finally, the model has been criticized
in that it does not specify which motivating/hygiene factors are to
be measured.
2.3.2 Affect Theory
Edwin A. Lockes Range of Affect Theory (1976) is arguably the
most famous job satisfaction model. The main premise of this theory
is that satisfaction is determined by a discrepancy
between what one wants in a job and what one has in a job.
Further, the theory states that how much one values a given side of
work (e.g. the degree of autonomy in a position) moderates how
satisfied/dissatisfied one becomes when expectations are/arent met.
When a person values a particular side of a job, his satisfaction
is more greatly impacted both positively (when expectations are
met) and negatively (when expectations are not met), compared to
one who doesnt value that side. This theory also states that too
many of particular ones will produce stronger feelings of
dissatisfaction the more a worker values that facet.
2.3.3 Dispositional Theory
Another well-known job satisfaction theory is the Dispositional
Theory. It is a very general theory that suggests that people have
innate dispositions that cause them to have tendencies toward a
certain level of satisfaction, regardless of ones job. This
approach became a notable explanation of job satisfaction in light
of evidence that job satisfaction tends to be stable over time and
across careers and jobs. Research also indicates that identical
twins have similar levels of job satisfaction.
A significant model that narrowed the scope of the Dispositional
Theory was the Core Self-evaluations Model, proposed by Timothy A.
Judge in 1998. Judge argued that there are four Core
Self-evaluations that determine ones disposition towards job
satisfaction: self-esteem, general self-efficacy, focus of control,
and neuroticism. This model states that higher levels of
self-esteem and general self-efficacy lead to higher work
satisfaction.
2.3.4 Equity Theory
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John Stacey Adams, a workplace and behavioral psychologist, puts
forward his Equity Theory on job motivation in 1963. There are
similarities with Charles Handy's extension and interpretation of
previous simpler theories of Maslow, Herzberg and other pioneers
of
workplace psychology, in that the theory acknowledges that
subtle and variable factors affect each individual's assessment and
perception of their relationship with their work, and thereby their
employer. However, awareness and cognizance of the wider situation
- and crucially comparisons - feature more strongly in Equity
Theory than in many other earlier motivational
models.
When people feel fairly or advantageously treated they are more
likely to be motivated; when
they feel unfairly treated they are highly prone to feelings of
disaffection and de-motivation. The way that people measure this
sense of fairness is at the heart of Equity Theory. The basic idea
following the Equity Theory is that workers, in an attempt to
balance what they put in to their jobs and what they get from them,
will unconsciously assign values to each of his various
contributions. Workers contribute their experience, their
qualifications, and their capability in
addition to their personal strength such as acumen and ambition,
the most highly motivated employee is the one who perceives his
rewards are equal to his contributions. If he feels that he is
working and being rewarded at about the same rate as his peers,
then he will judge that he is being treated fairly.
Equity, and thereby the motivational situation we might seek to
assess using the model, is not dependent on the extension to which
a person believes reward exceeds effort, nor does even
necessarily on the belief that reward exceed effort at all.
Rather, Equity, and the sense of fairness which commonly underpins
motivation, is dependent on the comparison a person makes between
his or here reward/investment ratio with the ratio enjoyed (or
suffered) by others considered to be in a similar situation.
2.4 Theory application
Equity theory states that, worker fells satisfaction and
motivation if they treaded fairly in the
organization. Dispositional theory mentions that higher levels
of self-esteem and general self-efficacy lead to higher work
satisfaction. Meanwhile affecting theory states that the main
premise of this theory is that satisfaction is determined by a
discrepancy between what one wants in a job and what one has in a
job.
Motivation-Hygiene theory states that satisfaction and
dissatisfaction are driven by different factors motivation and
hygiene factors, respectively. This theory covers all the factors
from
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other theory that lead to low or high turnover. Thus, in this
research we use Motivation-Hygiene theory for hypothesis
testing
Figure 2.2 Adams Equity Theory diagram - job motivation
2.5. Organizational commitment
Traditionally, within the employment relationship, employees
exchanged their loyalty and hard work for the promise of job
security. In the contemporary environment, changes in
organizational structure towards more flexible work practices and
the decline in job security have altered the psychological contract
between employer and employee (Allan, 2002; Wiens-Tuers, 2001). The
new form of psychological contract is visible in placement
practices, which see organizations focus on non-core and part-time
workers to gain flexibility at lower cost
(Cappelli, 1999; Kalleberg, 2000). Because of these
organization-wide changes, the essence of attachment between
employer and employee has changed.
The old contract of employee loyalty in exchange for job
security and fair work has dissolved (Overman, 1998). Current
employer emphasizes "employability" rather than long-term loyalty
in a specific job (Cappelli, 1999; Ko, 2003). The trend these days
seems to be geared towards having a 'career portfolio (Handy, 1995;
Hays & Kearney, 2001). Replacing the old employment deal, the
new psychological contract suggests that the employer and the
employee meet each
other's needs for the moment but are not making long-term
commitments.
It is suggested that commitment to one's professional growth has
replaced organizational
commitment (Bozeman & Perrewe, 2001; Powers, 2000). Instead
of job security, employees
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now seek job resiliency; opportunities for skill development and
flexibility in order to quickly respond to shifting employer
requirements (Barner 1994). Employees seem to take greater
responsibility for their own professional growth in order to
increase their career marketability
(Finegan, 2000).
Commitment is a belief which reflects "the strength of a
person's attachment to an organization"
(Grusky, 1966, p. 489). Researchers have suggested that
reciprocity be a mechanism underlying commitment (Angle &
Perry, 1983; Scholl, 1981) and that employees will offer their
commitment to the organization in reciprocation for the
organization having fulfilled its psychological contract (Angle
& Perry 1983; Robinson, Kraatz & Rousseau, 1994). By
fulfilling obligations relating to, for example, pay, job security,
and career development, employers are creating a need for employees
to reciprocate, and this can take the form of attitudinal
reciprocity through enhanced commitment and consequently influence
employees to stay with the organization (Becker & Huselid,
1998; Capelli, 2000; Furnham, 2002; Oakland & Oakland, 2001;
Wagar, 2003)
Previous studies of the concept of commitment (Mowday, Porter
& Steers, 1982; Meyer & Allen 1991) have substantiated that
employee commitment to the organization has a positive influence on
job performance and a negative influence on intention to leave or
employee turnover. In addition, empirical evidence also strongly
supports the position that intent to stay or leave is strongly and
consistently related to voluntary turnover (Dalessio, Silverman
& Schuck, 1986; Fishbein & Ajzen 1975; Griffeth, Hom &
Gaertner, 2000; Lambert, Hogan & Barton, 2001; Mathieu &
Zajac, 1990).
According to Mayer and Allens (1991) three commonly cited
components of commitment, (i.e. continuance, normative and
affective) effective commitment is the most studied dimension
(Aven, Parker & McEvoy, 1993; Dunham, Grube & Castaneda,
1994; Wahn, 1998). Affective commitment is considered to be an
affect-focused attitude towards the organization, which represents
an emotional bond between an employee and his or her organization
(Allen, 1996). Individuals possessing high levels of affective
commitment identify with, are involved in, and
enjoy membership in the organization and are therefore more
likely to remain with the organization.
Ulrich (1998) has suggested that engaging employees' emotional
energy gains commitment toward the organization. The most
fundamental of those processes thought to influence affective
commitment is an employee's personal fulfillment based on met needs
and positive work experiences (Meyer & Allen, 1997). Although
employees may develop affective commitment
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through relatively unconscious associations with positive work
experiences (classical conditioning), research suggests that
affective commitment can be consciously influenced by human
resource practices such as collaboration and team work, high
autonomy job design, training and development, rewards, and
participation in decision making (Agarwala, 2003, Meyer &
Allen, 1997, Ulrich, 1998).
2.6. Factors affecting to organizational commitment
Mayer et al, 1991 defined general patterns that have emerged in
the previous researches. The drivers of commitment have belonged to
three categories as personal characteristics,
organizational structure and work experiences.
2.6.1 Personal characteristics: age, gender, experience and
education. Most of findings of the previous studies proved that
there is a positive relationship between age, experience and
commitment.
2.6.2 Organization structure: Through not many researches
examine the relation of organization structure and commitment.
However, some evidences showed that commitment is
related to decentralization of making decision and formulation
of policy and procedure.
2.6.3 Work experience: According to Mayer et al, 1991 the
variables of work experience should be divided into two groups, one
refer to comfortable feeling including equity in reward
distribution, organizational dependability, role clarity and
freedom form conflict, supervisor support, pre-entry expectation
and the other refer to competencies feeling in workers position
including accomplishment, autonomy, reward equity, job challenges,
job scope, opportunity for advancement, opportunity for
self-expression, participation in making decision .
According to Leigh Branham in The 7 hidden reasons employees
leave: How to recognize the subtle signs and act before its too
late, the first step in addressing turnover, is to understand
the
reasons. Here they are:
Reason #1: The job or workplace is not satisfactory as
expected.
Reason #2: The mismatch between job and person.
Reason #3: Too little coaching and feedback.
Reason #4: Too few growth and advancement opportunities.
Reason #5: Feeling devalued and unrecognized.
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Reason #6: Stress from overwork and work-life imbalance.
Reason #7: Loss of trust and confidence in senior leaders.
Figure 2.3 Factors Affecting Job Satisfaction and Organizational
Commitment
Source: Human resource Management, twelfth edition, Robert L.
Mathis, John H. Jackson
2.7. Models of Retention-Turnover
More than two decades, many researchers have defined a part of
variables that appeared to contribute to either job satisfaction or
organizational commitment. These variables may be divided into
three groups: (1) variables that describe characteristics of job
tasks; (2) variables describe that organization; (3) variables
describe that worker (Charles Glisson & Mark Durick, 1998).
Also, Price, Mueller, and colleagues (Kim et al. 1996; Mueller
& Price 1990; Price1977; and Price & Mueller 1986a, 1986b)
was developed a retention-turnover model that identifies impacts of
structural, environmental, and personal variables on job
satisfaction and organizational commitment. Job satisfaction and
organizational commitment are identified as intervening variables
affecting stay/quit intentions. The model describes intentions as
the
immediate precursor to turnover/retention behaviour (Kim et al.
1996; Mobley et al. 1979).
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2.8 Importance of job satisfaction and organizational commitment
There is a link between job dissatisfaction with withdrawal and
aggressive or violent behaviors in the workplace (Glomb, 1999;
Rosse, 1983 et al.). When the gap between dissatisfaction and
employees expectancy are big enough, withdrawal and aggressive or
violent behaviors can appear.
Besides job dissatisfaction, the low level of organizational
commitment is also correlated to turnover. Studies of job
satisfaction and organizational commitment are attempts to increase
understanding of personnel retention and productivity. A
combination of both satisfaction and commitment may form employees
morale (Charles Glisson and Mark Durick 1988).
According to the empirical research conducted since 1972 by
Price, Mueller and their colleagues, job satisfaction and
organizational commitment are intervening variables of turnover.
The research indicated seven structural variables that may impact
on job satisfaction and organizational commitment such as:
autonomy, justice, stress, pay, promotional chances,
rountinization, and social support.
Following Job Satisfaction Survey (JSS) developed by Paul E.
Spector (1994) including nine sides. Pay, Promotion, Supervision,
Fringe, Benefit, Contingent Reward, Operating Procedures, Coworker,
Nature of Work and Communication.
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Figure 2.4 Research model proposals
Opportunity for Growth
Co-workers relation
Reward & Recognition
Supervision
Companys Vision
Pay & Benefits
Working Conditions
Opportunities for Promotions
Job Security
Job Satisfaction Organizational Commitment
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2.9 HR practice in Tran Duc group
2.9.1 Regulations and Policy
Regulations
Besides common regulations applied at most companies such as:
working hours (8 hours/day and 6 days/week), annual leave (12
days/year), wearing uniform while working, punishment of violating
rules and regulations, labor contract will co-sign if worker pass
temporary contract
Insurance Policy
All human resources policies conform to the Vietnamese law. The
company offers to all
workers who working in risk areas a health insurance 24/24 and
pay full wage, allowances and medicine cost if there are any safety
incident happen.
2.9.2 Job description
There are no official systems or working instruction designs for
each department or each variance, all based on working experience.
There are five difference departments in the
manufacturing process, those are cutting and planning, shaping
and drilling, assembling and sanding, painting and oiling, and
packing. The tasks are very complex however they are assigned in
verbal by team leader to worker. Production is following process,
each department carries about fifteen steps of the process.
Therefore, job description for each worker is complex, each worker
carries some tasks. Worker who has high skills is assigned to do
complicated steps. However, the worker was not officially
recognized their skill level. There is not a job ladder or skill
level to distinguish worker qualifications officially.
2.9.3 Recruitment process
Recruitment process of workers as below: Request from
manufacturing department Factory manager approval HR department
Select candidates Pre-interview by HR Final interview by request
department Employment
Selected workers must be graduated from secondary school at
least. However, in the recent
years, due to shortage of labor source have reduced selection
standard to obtain enough the quantity of personnel in need. Then,
workers graduated from primary school are acceptable. Therefore the
quality of workers has decreased in talent as well as morals.
2.9.4 Training
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There isnt official process for training new workers, after a
half-day regulation training conducted by HR, they starting
working. Production team leader and supervisor will coach them from
simple tasks to complicated task.
Almost team leaders promoted from worker as well as supervisors
were promoted from line leader therefore they were very good in
technical skills but not in management. There were no training
courses of management for these supervisors before taking over the
positions.
2.9.5 Skill evaluation
There are no systems to measure the skill of workers. Each
supervisor sets up by themselves an
evaluation standard based on standard time, assiduity, attitude
of worker And it is quite different from supervisor to supervisor.
The skill of worker is evaluated qualitatively by supervisor. No
test or exam to ensure that there is not bias in evaluation. The
skill of worker is just recognized by the supervisor and it is not
official to the company.
2.9.6 Pay, allowance, benefits and bonus
No skill-based pay structure is employed. All workers, who have
no specific skills start at the
minimum level of salary. The salary for worker in probation time
is 75% of 1,030,000 VND. If they can pass probation, they can be
offered at the minimum salary level of contractual staffs. The
salary for contractual worker is 1,030,000 VND.
Company pay allowance for housing, transportation, attendant,
health care maximum 300,000
VND
Salary is reviewed based on performance standard designed by
department heads or supervisors based on their skill increasing.
The company review salary manually, increase rate base on business
result.
Workers received one month salary bonus on end of year and
200,000 VND for each year of seniority
In addition, workers are offered a lunch and a dinner if they
work over time.
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CHAPTER III
RESEARCH METHODOLOGY
In order to test the model and hypotheses stated in previous
chapter, this research adopts quantitative approach in which the
data were by means of questionnaire survey.
3.1 Proposal research model
This research model is depicted in Figure 2.4; Studies of job
satisfaction and organizational commitment have a common purpose
that is to increase understanding of personnel retention
and productivity. Defining factors leading to worker turnover
should be done through defining factors that impact on employee
satisfaction and commitment. A model of turnover predictors with
assumption of worker turnover related to the level of job
satisfaction and organizational commitment was developed for this
study. This model was developed based on the
HERZBERGs two-factor theory and adopting the works of Meyer et
al, 1991, Price, Mueller, and colleagues (Kim et al. 1996; Mueller
& Price 1990).
3.2 Instruments
A survey instrument is designed to measure and identify
demographic characteristics, levels of job satisfaction and
organizational commitment among worker of Tran Duc Group. A cover
letter briefly explained the purpose of the study and further
explanations are given when requested. The respondents received and
answered the questionnaires at their work place. Participation is
voluntary. The questionnaire consisted of three sections as
follow:
Section 1 - Job satisfaction scale: A self-developed, combined
and refined job satisfaction questionnaires are adapted from John
H. McConnell, 2003, Kim et al 1996, Hilb 2003 and Paul E. Spector
1994. The nine most common job satisfaction domains are chosen for
inclusion in the questionnaire. These included: Company policy, job
security, opportunity for growth, supervision, pay & benefit,
working condition, opportunity for promotion, reward &
recognition, co-worker relation. A further some questions are also
included in the questionnaire: worker asked about their overall job
satisfaction and intention to leave the organization if they
received a good offer from other companies. The questionnaire
utilizes a Likert type scale with
five response alternatives ranging from Strongly disagree
(weighted 1) to Strongly agree (weight 5).
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Section 2 Organizational commitment scale: This variable is
measured using the questionnaires developed by Mowday, Steers and
Porter. Ratings are completed on a five point scale from Strongly
disagree (weighted 1) to Strongly agree (weight 5).
Section 3 Demographics: The questionnaire gathered data related
to participants (a) gender; (b) Marital status; (c) age; (d) year
of experience; (e) education level; (f) monthly salary
3.3 Participation
The population of the study will be the total number of the
worker at Tran Duc Group up to
May. 31th, 2009, respondents are 333 workers. Refer to the
sample size defined in the webpage http://www.surveysystem.com/ .
The researcher expected about 70% respondent. Thus, 475
questionnaires are issued and they equal to 20% of population.
(Total workers of the Tran Duc Group are 1,500).
N = Z2 * p * (1-p) / C2
Where: Z = 1.96 for 95% confidence level p = 0.5 percentage
picking a choice, expressed as decimal c = 5 confidence interval,
expressed as decimal
3.4 Translation and pre-test reliability of questionnaire
The questionnaire was adapted and developed in English. However,
the target respondents were Vietnamese workers. Therefore, the
questionnaire should be translated into Vietnamese as
understandable as possible.
A pilot study is undertaken to test the relevance and clarity of
the questions and to refine them
as needed to avoid misunderstand. A small sample of 45 workers
were randomly selected, who are not included in the sample,
received the questionnaire. Pilot test result found that
questionnaires need to modified or new developed to avoid confuse
by workers who have low education level
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3.5 Research hypotheses
The research model consists of nine independent variables
(Company vision , Job security, Opportunity for Growth,
Supervision, Pay & benefits, Working condition, Opportunity for
Promotion , Reward & recognition and co-worker relation) and
two dependent ones (job satisfaction and organizational
commitment). Therefore, nine pairs of hypotheses were developed as
follow:
1. Company vision: The competency is designed to survey feelings
toward company vision. A good vision is one that arranges the
activities of the enterprise in such a way that they contribute
to the goals of the organization. Specifically, this topic
investigates whether employees clearly understand about future of
company
H1: There is a positive impact of company vision on job
satisfaction and/or organizational commitment.
2. Job security: This competency is designed to measure how
employees view their job security within organization. In todays
often volatile or contingent labor market, its crucial to
understand the level of security employees feel about their jobs.
Studies show that employees who do not feel secure in their jobs
are less likely to be committed to best assisting customers. This
competency can be especially useful if your organization has
suffered recent layoffs or firings.
H2: There is a positive impact of job security on job
satisfaction and/or organizational commitment.
3. Opportunity for growth: This competency explores issues such
as internal growth opportunities, potential for advancement, career
development importance, and the relationship between job
performance and career advancement. The question set examines
whether employees believe they have a chance to grow within the
organization. Studies show that lack of
career opportunity is one of the top reasons employees leave an
organization. Also, continually
hiring open positions from outside the organization can be
detrimental to morale when a qualified candidate is available
internally. Topics covered in this competency are perceived
opportunity for advancement, existence of a career development
plan, and organizational
commitment to staff development.
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H3: There is a positive impact of opportunity for growth on job
satisfaction and/or organizational commitment.
4. Supervision: This competency is designed to reflect employees
feelings regarding their direct manager or supervisor. The
manager/supervisor competency covers topics such as clarity of
goals, manager support, coaching and feedback, and regular reviews
of performance. The old adage People leave their managers, not
organizations is often true. Of all the workplace stressors, a bad
immediate manager is one of the worst and can directly affect the
emotional
health, productivity, and retention of an employee. This
organizational topic can be especially insightful if organization
is losing quality employees while compensation and benefit packages
are equivalent with industry standards.
H4: There is a positive of supervision on job satisfaction
and/or organizational commitment.
5. Pay & benefits: This competency focuses in detail on how
employees feel regarding their compensation and benefits packages.
The questions included in this organizational topic can help
organization determine whether employees feel they are fairly paid
for the work they perform when compared to a similar job at a
different company. This competency also queries their feelings
regarding the adequacy and quality of their benefits package. A
fair and attractive
compensation package is critical for hiring and retaining
quality employees. A high satisfaction level in this competency
requires that your compensation structure and benefits package be
fair, balanced, and understood by present employees.
H5: There is a positive impact of pay & benefits on job
satisfaction and/or organizational commitment.
6. Working condition: This competency is designed to measure how
employees feel about their physical and environmental working
conditions, the quality of their equipment and tools, and
overall attention to safety within the workplace. Every
organization is responsible for ensuring the health and safety of
its employees. An unsafe working environment can lead to accidents,
lawsuits, and missed work. Such incidents can result in significant
costs to organization. The questions included in this
organizational topic investigate whether your employees are
satisfied with the organizations facilities, whether they believe
business is being conducted in a safe
manner, and whether the tools and equipment provided are
adequate to successfully and safely complete their jobs.
H6: There is a positive impact of working condition on job
satisfaction and/or organizational commitment.
7. Opportunity for promotion:
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H7: There is a positive impact of opportunity for promotion on
job satisfaction and/or organizational commitment.
8. Reward & recognition: This competency examines whether
employees believe they are properly and fairly recognized for their
efforts. This organizational topic also explores what type of
behavior is appreciated and rewarded within organization. Studies
show that employees who receive regular recognition and praise are
more likely to raise their individual productivity levels, increase
engagement with their colleagues, and stay longer at the
organization. This
organizational topic can be especially insightful if
organization is experiencing low productivity levels or ineffective
teamwork
H8: There is a positive impact of reward & recognition on
job satisfaction and/or organizational commitment.
9. Co-workers: This competency is designed to examine issues
surrounding effective cooperation, collaboration, and communication
among the workers in organization. Whereas the Team Dynamics
competency focuses on relationships within a single group, this
competency is
written to target coworker topics spanning the entire
organization over multiple work units. This
organizational topic investigates team members ability to
successfully partner on projects with one another and between
groups to reach the common goals of the organization. This
competency also examines whether employees feel they are treated
fairly and equally in relation to other workers and sections of the
organization.
H9: There is a positive impact of co-workers on job satisfaction
and/or organizational commitment.
3.6 Research methodology
Questionnaire survey is designed to collect information of
workers opinion. Exploratory study will help to discover the level
of workers commitment and satisfaction. Respondents will be asked
to disagree or agree with Likert scale anchored by 1 strongly
disagree to 5 strongly agree.
Face-to-face interviews help to explore the employers view of HR
practices are currently
deployed in the organization.
In-depth interviews with managers will help to collect their
view about certain things which would be important factors led
their worker commitment.
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In-depth interviews with left workers help to explore reasons of
their leave and what they expect or obtain from the new place. This
data need to support references for analysis.
3.7 Data collection
I will use both primary and secondary data for all the
analytical methods.
3.7.1 Primary data
Questionnaire survey was designed to collect information of
workers opinion. Exploratory study was used to discover factors
having impact on the level of workers commitment and satisfaction.
The questionnaire included three sections:
Questionnaire Design: included 3 sections
1. Survey about job satisfaction factors
2. Survey about organizational commitment factors.
3. Survey about Personal background information
3.7.2 Secondary data
Secondary data is collected from Human Resource Department.
Also, it is gathered from Consulting reports, Economics News and
Journal of Management Study.
3.8 Method of analysis.
Computer Statistic Package for Social Science (SPSS) version
11.5 will be used as the main tool for analysis of the quantitative
data. Descriptive statistical analyses: percentage, median, means,
standard deviation, Cronbach alpha, EFA and correlation
coefficient. Multiple regression analysis is used to study the
correlation and to test the research model. The analysis process is
implemented as follow
3.8.1 Assessment of measurement of scale
The multi item scale developed above have to be evaluated for
their reliability, unidimensionality and validity. Cronbach alpha
is the most commonly use approach test reliability. Cronbach alpha
will be high if the scale is highly correlative (Hair et al.,
1998). Unidimensionality is defined as the existence of one
construct of underlying a set of items
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(Garver and Mentzer, 1999). Unidimensionality should be test
before doing reliability tests because reliability such as Cronbach
alpha does not ensure unidimensionality but instead assumes it
exists (Hair et al., 1998). In the current research, the main
assessment method is exploratory factor analysis (EFA). There are
two methods used to extracting factors in EFA, common factor
analysis and principal component factor analysis. While principal
component factor analysis is used mainly for item reduction and
test unidimensionality, reliability, common factor analysis is for
exploring the latent dimensions represented in the original
variables
(Conway and Huffcutt, 2003) and test convergent validity,
discriminant validity. The analyses were implemented through two
respective steps:
The first step, EFA with principal component, eigenvalue >= 1
and VARIMAX rotation was applied to 9 constructs under
investigation (Conway and Huffcutt, 2003). The main purpose of this
step is to see whether the scale for each constructs under
investigation is unidimensional or multidimensional. For a scale to
be empirically unidimensional, the factor analysis must result in
only one factor extracted. Moreover, item with low factor loading
< 0.40 were eliminated
because they do not converge properly with the latent construct
they were designed to measure (Hair et al., 1998). Then,
reliability analysis was applied to each set of items to assess and
refine the measurement item. Items having low Cronbach alpha < =
0.60 item to total correlation coefficient
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3.10 Source of measurement scales
(1) Company vision: Questionnaires were developed by the author
basing on web-side
(2) Job security: This construct consisted of five items.
Question no. 5 & 6 were developed by Oldham 1986 and adapted by
Deery et al. 1994. Question no. 7, 8, 9 was designed by the author
base on we-side
(3) Opportunity for growth: This scale was measured by four
variables, question no. 10, 11, 12, 13 was modified from
web-side
(4) Supervision: This construct was measured by four variables,
Q14, Q15, Q16 were developed from John H. McConnell 2003.
(5) Pay & benefits: Salary and benefits were measured by
four items from question Q18 to Q21. These scale were developed
from sample questionnaires by John H. McConnell 2003 and survey
questionnaires by Paul E Spector 1994
(6) Working condition: This construct consisted of 4 items, from
item Q22 to Q25 adapted from Kim et al. 1996
(7) Opportunity for promotion: Opportunity for promotion
questionnaires from item Q26 to Q29 were developed by the author
based on web-side
(8) Reward & recognition: Four items, Q30 to Q33 were
developed by the author based on web-side
(9) Co-worker relation: Three items, Q34, Q36 were developed
from sample questionnaires by John H. McConnell 2003, Q37 from
survey questionnaires by Paul E Spector 1994
(10) Job satisfaction: The construct of satisfaction in this
research was measured by 5 scales. The content of questions was
adapted from facet-free job satisfaction of Quinnn Saines 1979
(page 476, Handbook of organizational measurement).
(11) Commitment: The scales of commitment in this research
included 10 items that were applied from the 15 items of
organizational commitment questionnaire (OCQ) of Mowday, Porter and
Steers, 1974
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Table 3.1 Measurement scales of Job dissatisfaction and
organizational commitment CON
STRUCT CODE ITEM ITEMS OF MEASUREMENT SCALES SOURCE
VISI1 Q1 I am optimistic about the future of the company.
Modified
VISI2 Q2 I am optimistic about my future success with the
company
Modified
VISI3 Q3 The company is a leader in the industry in important
ways
Modified
Com
pan
ys
Visi
on
VISI4 Q4 The company is a strong competitor in key growth
areas.
Modified
SECU1 Q5 I am confident that I will be able to work for this
company as long as I do a good job. Oldham 1986
SECU2 Q6 My job is a secure one. Oldham 1986
SECU3 Q7 I feel that working for the company will lead to the
kind of future I want. Modified
SECU4 Q8 I am confident that the company growth will bring us
the security of job.
Modified Job
Secu
rity
SECU5 Q9 I feel that the company cares about its people Modified
GROW1 Q10 I am encouraged to learn from my mistakes Modified GROW2
Q11 My work is challenging and stimulating Modified
GROW3 Q12 I receive the training I need to do my job well
Modified
GROW4 Q13 My manager encourages and supports my development.
Modified
SUPE1 Q14 Employee performance evaluations are fair and
appropriate.
John H. McConnell 2003
SUPE2 Q15 My manager treats all employees fairly. John H.
McConnell 2003 SUPE3 Q16 My manager always treats me with respect.
John H. McConnell 2003
Su
perv
isio
n O
ppo
rtu
nity
fo
r
G
row
th
SUPE4 Q17 My manager gives me praise and recognition when I do a
good job John H. McConnell 2003
PAY1 Q18 The benefits we receive are as good as most other
organization offer. Paul E Spector 1994
PAY2 Q19 The salary I receive compare well to my co-worker
basing on skill, efficiency and responsibility. John H. McConnell
2003
PAY3 Q20 I feel I am being paid a fair amount for the work I do
Paul E Spector 1994
Pay
& Be
nef
its
PAY4 Q21 My salary is competitive with similar jobs I might find
elsewhere John H. McConnell 2003
COND1 Q22 My workplace is a physically comfortable place to work
Kim et al. 1996
COND2 Q23 I have the resources I need to do my job well. Kim et
al. 1996 COND3 Q24 I have adequate protecting equipment to do my
job. Kim et al. 1996 W
orki
ng
con
ditio
n
COND4 Q25 My workplace is safe Kim et al. 1996
PROM1 Q26 Company is frequency evaluate workers skill
Modified
PROM2 Q27 The procedures used to determine salary increases are
base on workers skill.
Modified
PROM3 Q28 I am satisfied with my skill evaluated by the
company
Modified
Opp
ort
un
ity fo
r
Prom
otio
n
PROM4 Q29 My salary is adequate to my skill Modified
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REWA1 Q30 Company rewards workers who did the good job.
Modified
REWA2 Q31 Company rewords workers who did improvements with
benefic
Modified
REWA3 Q32 The rewards I receive are adequate to my
contribution
Modified
Rew
ard
&
Rec
ogn
ition
REWA4 Q33 When I do good job, I receive the recognition for it
that I should. Modified
COWO1 Q34 I like people I work with
Paul E Spector 1994
COWO2 Q35 My co-workers are friendly. John H. McConnell 2003
COWO3 Q36 I receive supporting from my co-workers John H. McConnell
2003 Co
-work
ers
COWO4 Q37 The employees in my department work well as a team.
John H. McConnell 2003
SATI1 Q38 Company is good place for you to work Hilb 2003
SATI2 Q39 I like to work with company Hilb 2003
SATI3 Q40 I want to built company prestige Hilb 2003
SATI4 Q41 I trying to fulfill company work well Hilb 2003
Job
satis
fact
ion
SATI5 Q42 I satisfy with my current job Hilb 2003
COMM1 Q43 I am willing to put in a great deal of effort beyond
that normally expected in order to help this organization be
successful.
Mowday, Steers, Porter 1974
COMM2 Q44 I would accept almost any type of job assignment in
order to keep working for this organization
Mowday, Steers, Porter 1974
COMM3 Q45 I feel very much loyalty to this organization Mowday,
Steers, Porter 1974 COMM4 Q46 I am proud to tell others I am part
of this
organization Mowday, Steers, Porter 1974
COMM5 Q47 I could just as well be working for a difference
organization as long as the type of work is similar
Mowday, Steers, Porter 1974
COMM6 Q48 It would take very little change in my present
circumstances to cause me to leave this organization
Mowday, Steers, Porter 1974
COMM7 Q49 I am extremely glad that I chose this organization to
work for over others I was considering at the time I jointed
Mowday, Steers, Porter 1974
COMM8 Q50 For me this is the best of all possible organizations
for which to work
Mowday, Steers, Porter 1974
COMM9 Q51 I feel more committed to a career with the company
this year than I did a year ago. Mowday, Steers, Porter 1974
Org
aniz
atio
nal
C
om
mitm
ent
COMM10 Q52 I really care about the fate of this organization
Mowday, Steers, Porter 1974
1 Gender 2 Marital status 3 Salary 4 Year of experience 5 Age
D
emogr
aph
y
6 Educational level
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Page 38 of 72
CHAPTER IV
RESEARCH FINDINGS
This chapter presents sample characteristics, the assessment,
and refinement of the measurement scale based on the data of set
350 cases, the results from the statistical estimation, the discuss
and managerial implications.
4.1 Sample characteristics
4.1.1 Sample
The data collected from 475 questionnaires delivered through
directly contact, the total numbers of the collected questionnaires
were 405, respond rate is 85%. After filtering, the number of
questionnaires were eliminated is 55 due to many missing. As a
result, 350 questionnaires were officially used in the data
analysis.
4.1.2 Gender 60.3% respondents were female and 39.7% were male.
This ratio is the same as the ratio of gender population in the
factories.
Table 4.1 Sample distribution by gender
Frequency Percent Valid Percent Cumulative Percent Valid male
139 39.7 39.7 39.7 female 211 60.3 60.3 100.0 Total 350 100.0
100.0
4.1.3 Age Most age of workers were from 20 to 25 years. There
were 14% under 20 years of age, 44.9% in the range of 20 to 25
years of age, 27.4% in the range of 26 to 30 years of age, and
13.7% above 30 years of age
Table 4.2: Sample distribution by age
Frequency Percent Valid Percent Cumulative
Percent Valid under
20 49 14.0 14.0 14.0 20-25 157 44.9 44.9 58.9 26-30 96 27.4 27.4
86.3 over 30 48 13.7 13.7 100.0 Total 350 100.0 100.0
4.1.4 Marital status 44.3% respondents had got married meanwhile
54.3% single, the rest 1.4% divorced.
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Page 39 of 72
Table 4.3 Sample distribution by marital status
Frequency Percent Valid Percent Cumulative Percent Valid married
155 44.3 44.3 44.3 single 190 54.3 54.3 98.6 divorce 5 1.4 1.4
100.0 Total 350 100.0 100.0
4.1.5 Education level 13.1% respondents have not yet passed
primary school, 47.4% respondents graduated from secondary school,
38.6% respondents graduated from high school, there was only 0.9%
graduated from college.
Table 4.4 Sample distribution by education level
Frequency Percent Valid Percent Cumulative Percent Valid Primary
46 13.1 13.1 13.1 Secondary 166 47.4 47.4 60.6 high 135 38.6 38.6
99.1 college 3 .9 .9 100.0 Total 350 100.0 100.0
4.1.6 Year of experience Most tenure of workers was from 1 to 3
years. 11.7% respondents were under 6 months, 35.4% from 7 to 12
months, 39.1% from 1 year to 3 years, 10.9% from 3 years to 5 years
and 2.9% over 5 years.
Table 4.5 Sample distribution by year of experience
Frequency Percent Valid Percent Cumulative Percent Valid under 6
months 41 11.7 11.7 11.7 from 7 to 12
months 124 35.4 35.4 47.1 from 1 to 3 years 137 39.1 39.1 86.3
from 3 to 5 years 38 10.9 10.9 97.1 over 5 years 10 2.9 2.9 100.0
Total 350 100.0 100.0
4.1.7 Salary Most workers take home 1.5 to 2 million VND per
month (75.1%), 15.7% workers received 1 to 1.5 million VND per
month, 8% workers received over 2 million VND per month, the rest
1.1% received minimum level of salary under 1 million VND per
month.
-
Page 40 of 72
Table 4.6 Sample distribution by salary
Frequency Percent Valid Percent Cumulative Percent Valid under 1
million VND 4 1.1 1.1 1.1 1-1.5 million VND 55 15.7 15.7 16.9 1.5-2
million VND 263 75.1 75.1 92.0 over 2 million VND 28 8.0 8.0 100.0
Total 350 100.0 100.0
4.2 Assessment of measurement scale As mentioned in Chapter 3,
each model comprises nine independent varieties and one
dependent
variety. To assess internal consistency and unidimentionality of
each construct, reliability test and a factor analysis of single
construct are employed. Reliability test may be done if an
assumption of unidimentionality was justified (Hair et al.,
1998). Therefore, before testing the reliability of measurement
scale, a test for unidimensionality of a measurement scale may be
undertaken.
The process of assessment and refinement of measurement scale
are implemented through two
steps using SPSS 11.5 software. The first step is EFA and
Cronbach alpha to assess unidimentionality and reliability. The
second step is EFA with all scales together in order to assess
convergent validity and discriminant validity. In this process, the
items dont meet evaluating criteria are eliminated. After
refinement, reliability of scale is re-assessed by
Cronbach alpha. Criteria of refinement of item included factor
loading > 0.40, item-total correlation > 0.35, Cronbach alpha
> 0.60, % of variance (Hair et al., 1998).
4.2.1 EFA for scale of factors
Following the procedure and criteria described above, the EFA
results show that all of the scales were loading for only one
factor and immediately acceptable
-
Page 41 of 72
Table 4-7 Unidimentionality and reliability test results
Construct / Items
Item Description Factor loading
% of total
variance
Corrected item-total
correlation Q1 I am optimistic about the future of the
company. .846 .7173
Q2 I am optimistic about my future success with the company .859
.7341
Q3 The company is a leader in the industry in important ways
.863 .7441
Company' vision (Alpha = .8658; Eigenvalue = 2.858)
Q4 The company is a strong competitor in key growth areas.
.812
71.441
.6698
Q5 I am confident that I will be able to work for this company
as long as I do a good job. .771 .6458
Q6 My job is a secure one. .862 .7623 Q7 I feel that working for
the company will lead to
the kind of future I want. .837 .7341
Q8 I am confident that the company growth will bring us the
security of job. .849 .7500
Job Security (Alpha = .8769; Eigenvalue = 3.313)
Q9 I feel that the company cares about its people 782
67.458
.6638 Q10 I am encouraged to learn from my mistakes .827 .6912
Q11 My work is challenging and stimulating .871 .7531 Q12 I receive
the training I need to do my job well .871 .8125
Opportunity for Growth (Alpha = .8665 ; Eigenvalue = 2.874) Q13
My manager encourages and supports my
development. .820
71.843
.6846
Q14 Employee performance evaluations are fair and appropriate.
.806 .6596
Q15 My manager treats all employees fairly. .858 7343 Q16 My
manager always treats me with respect. .854 4246
Supervision (Alpha = .8605 ; Eigenvalue = 2.822)
Q17 My manager gives me praise and recognition when I do a good
job .841
70.546
7089 Q18 The benefits we receive are as good as most
other organizations offer. .827 .6805
Q19 The salary I receive is compared well to my co-worker based
on skill, efficiency and responsibility.
.855 .7195
Q20 I feel I am being paid a fair amount for the work I do .823
.6956
Pay & benefits (Alpha = .8420; Eigenvalue = 2.724)
Q21 My salary is competitive with similar jobs I might find
elsewhere .782
68.098
.6205
Q22 My workplace is a physically comfortable place to work .791
.6339
Q23 I have the resources I need to do my job well. .871 .7466
Q24 I have adequate protecting equipment to do my
job. .871 .7504
Working condition (Alpha = .8491 ; Eigenvalue = 2.759)
Q25 My workplace is safe .784
68.967
.6279 Q26 Company frequently evaluate workers skills .839 .7153
Q27 The procedures used to determine the salary
increased based on workers skills. .837 .7130
Q28 I am satisfied with my skill evaluated by the company .889
.7905
Opportunity for Promotion (Alpha = .8843 ; Eigenvalue =
2.973)
Q29 My salary is adequate to my skill .882
74.326
.7782
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Page 42 of 72
Construct / Items
Item Description Factor loading
% of total
variance
Corrected item-total
correlation Q30 Company rewards workers who did the good
job. .851 .7242 Q31 Company rewords workers who did
improvements with benefit .876 .7555
Q32 The rewards I receive are adequate to my contribution .883
.7805
Reward & Recognition (Alpha = .8707 ; Eigenvalue =
2.904)
Q33 When I do a good job, I receive the recognition for it that
I should. .796
72.588
.6548 Q34 I like people I work with
.852 .7207
Q35 My co-workers are friendly. .898 7919
Q36 I receive support from my co-workers .861 .7373
Co-workers (Alpha = .8625 ; Eigenvalue = 2.850)
Q37 The employees in my department work well as a team. .759
71.240
.6048
Q38 Company is a good place for you to work 0.8358 .7354 Q39 I
like to work for company 0.8724 .7848 Q40 I want to built company
prestige 0.8500 .7578 Q41 I try to fulfill company work well 0.8052
.6974
Job Satisfaction (Alpha = .8918 ; Eigenvalue = 3.502)
Q42 I am satisfied with my current job 0.8190
70.030
.7134
Q43 I am willing to put in a great deal of effort beyond that
normally expected in order to help this organization be successful.
0.7427 .6757
Q44 I would accept almost any type of job assignment in order to
keep working for this organization 0.8078 .7472
Q45 I feel very much loyalty to this organization 0.8107 .7540
Q46 I am proud to tell others I am part of this
organization 0.7395 .6751 Q47 I could just as well be working
for a difference
organization as long as the type of work is similar 0.6819
.6124
Q48 It would take very little change in my present circumstances
to cause me to leave this organization 0.7600 .6965
Q49 I am extremely glad that I chose this organization to work
for over others I was considering at the time I joined 0.8209
.7625
Q50 For me this is the best of all possible organizations for
which to work 0.7795 .7175
Q51 I feel more committed to a career with the company this year
than I did a year ago. 0.7583 .6949
Commitment (Alpha = .9200 ; Eigenvalue = 5.842)
Q52 I really care about the fate of this organization 0.7313
58.421
.6633
4.2.2 EFA for all scale of factors together
After establishing the unidimensionality and reliability of each
scale, all 37 items were jointly subjected to a common factor
analysis. This approach allows all items to correlate with every
factor without being constrained to correlate only with its
underlying factor (Kline, 1998). In this procedure, Item loaded
highly on more than two factors were eliminated, loading of items
smaller threshold value of 0.40 are eliminated. The result of this
procedure was shown in table
-
Page 43 of 72
4.10. In which 9 factors consist 37 items were retained which
together explain 69.012% of the total variance. Factor loading of
each of the 37 items vary from 0.657 to 0.871 which are higher than
0.40 (table 4.9). In this testing, rotation method: Equamax with
Kaiser Normalization was applied providing better reliability.
There are two pairs of sets of items loaded highly on one factor,
so I re-named they were Leadership support (Opportunity for growth
& Supervision) and Workplace (Working condition &
Opportunity for promotion). The result of Bartletts Test of
Sphericity and KMO measure indicated that the degree of
inter-correlation among the items
were suitable for EFA procedure as table 4.8 (Chi-square = 8193,
df = 666, Sig = .000)
Table 4.8 KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy.
.901
Approx. Chi-Square 8193.062 df 666
Bartlett's Test of Sphericity
Sig. .000
Table 4.9 Total Variance Explained
Component Initial Eigenvalues Extraction Sums of Squared
Loadings Rotation Sums of Squared
Loadings
Total % of
Variance Cumulative
% Total % of
Variance Cumulative
% Total % of
Variance Cumulative
% 1 8.522 23.033 23.033 8.522 23.033 23.033 5.035 13.609 13.609
2 6.278 16.968 40.000 6.278 16.968 40.000 4.844 13.093 26.702 3
3.934 10.633 50.633 3.934 10.633 50.633 3.490 9.434 36.135 4 2.284
6.174 56.807 2.284 6.174 56.807 3.151 8.518 44.653 5 1.982 5.356
62.164 1.982 5.356 62.164 3.141 8.490 53.143 6 1.480 4.001 66.165
1.480 4.001 66.165 3.022 8.168 61.311 7 1.053 2.847 69.012 1.053
2.847 69.012 2.849 7.701 69.012
Extraction Method: Principal Component Analysis.
After two steps for individual and scale and all scales
together, nine constructions consist of 37 items were retained. In
conclusion, unidimensionality, reliability, convergent validity,
and
discriminant validity of the nine scales of factors have been
assessed by the data set. The 37 items for the nine scales are
accepted for further analysis.
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Page 44 of 72
Table 4.10 Result of joint factor analysis for 7 scales
Component 1 2 3 4 5 6 7 I am optimistic about the future of the
company.
.821 I am optimistic about my future success with the
company
.834 The company is a leader in the industry in important
ways
.823 The company is a strong competitor in key growth areas.
.766 I am confident that I will be able to work for this company
as long as I do a good job. .749 My job is a secure one.
.827