ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH --------------------- ĐẶNG THỊ HỒNG EFFECTS OF ORGANIZATIONAL CULTURE ON EMPLOYEES’ JOB SATISFACTION AT LG DISPLAY VIETNAM ẢNH HƯỞNG CỦA VĂN HÓA DOANH NGHIỆP LÊN SỰ HÀI LÕNG CỦA CÁN BỘ NHÂN VIÊN TRONG CÔNG TY TNHH LG DISPLAY VIỆT NAM LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH HÀ NỘI - 2019 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH --------------------- ĐẶNG THỊ HỒNG EFFECTS OF ORGANIZATIONAL CULTURE ON EMPLOYEES’ JOB SATISFACTION AT LG DISPLAY VIETNAM ẢNH HƯỞNG CỦA VĂN HÓA DOANH NGHIỆP LÊN SỰ HÀI LÕNG CỦA CÁN BỘ NHÂN VIÊN TRONG CÔNG TY TNHH LG DISPLAY VIỆT NAM Chuyên ngành: Quản trị kinh doanh Mã số: 60 34 01 02 LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH NGƯỜI HƯỚNG DẪN KHOA HỌC: PGS. NGUYỄN NGỌC THẮNG HÀ NỘI - 2019 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com DECLARATION The author confirms that the research outcomes in the thesis is the result of the author‟s independent work during study and research period and it is not yet published in other‟s research and article. The other‟s research results and documentation (extraction, table, figure, formula and other documents) used in the thesis are cited properly and the permission (if required) is given. The author is responsible in front of the Thesis Assessment Committee, Hanoi School of Business and Management, and the laws for above-mentioned declaration.
i LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com ACKNOWLEDGEMENT Firstly, I would like to acknowledge my advisor, Associate Professor Doctor Nguyen Ngoc Thang for his wealthy advices. He has guided and promptly given me a lot of instructions and comments in order to help me moving forward with the right direction to the completion of my final research. Secondly, I would like to express my sincere thank to Associate Professor Doctor Nguyen Ngoc Thang for his support since the beginning of my research that was selecting the very interesting research topics, then going through research outline, until the end of this research. From this research, I can have a deep understanding of business administration in general and innovative business model of a business firm in particular.
I also would like to reserve special thank to my dear husband who spent lots of his time supporting to analyze data and complete the thesis as planned. Last but not least, I would like to send my deep thank all LG Display Vietnam‟s employees, especially the 966 participants of the research. They have assisted me to fulfill this research successfully in terms of survey questionnaires, the research aims and scope. They did spend lots of time on my questionnaires; so that I could collect valuable answers serving for the analysis of data before the thesis could be completed well.
Because of the time limitation, I cannot avoid some mistakes in the research. I look forward to receiving further comments from lectures and colleagues so as to have more objective and fruitful research results/. ii LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com TABLE OF CONTENTS DECLARATION. ii LIST OF TABLES.
v LIST OF FIGURE. vii CHAPTER 1: INTRODUCTION. Objectives of the research. Subjects and the Research Scope.
Structure of the research. 3 CHAPTER 2: LITERATURE REVIEW. Current Situation of LG Display Vietnam. Establishment and History of Development.
Building the Organizational Culture. The Management‟s Point of View and Purposes of Finding Effects of Organizational Culture on Employees‟ Job Satisfaction. Analysis of the Survey Results. Analysis of the Internal Documents.
25 iii LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com CHAPTER 4: RESULTS AND DISCUSSIONS. Results Achieved from Excel Analysis. Results Achieved from SPSS Analysis. 66 CHAPTER 5: CONCLUSIONS, LIMITATIONS AND RECOMMENDATIONS.
Suggestions for Future Studies. Suggestions for the Management of LG Display Vietnam. 74 APPENDIX A: INFORMED CONSENT TO PARTICIPATE. 79 APPENDIX B: EMPLOYEE DEMOGRAPHIC SURVEY.
80 APPENDIX C: SURVEY QUESTIONS ON JOB SATISFACTION. 82 APPENDIX D: SURVEY QUESTIONS ON ORGANIZATIONAL CULTURE. 83 iv LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LIST OF TABLES Table 1: Job satisfaction survey - Internal consistency reliability coefficient. 18 Table 2: Tables showing structure of respondents and distributions of questionnaires.
20 Table 3: Survey results received (Source: Primary data). 21 Table 4: Successful Ratio of Respondents‟ Answers. 22 Table 5: Marital status of respondents. 27 Table 6: Age group of respondents.
28 Table 7: Educational level of respondents. 29 Table 8: Gender of respondents. 29 Table 9: Jobs of respondents. 31 Table 10: Service duration of respondents.
31 Table 11: Living areas of respondents. 32 Table 12: Mean score of organizational culture and job satisfaction of respondents. 37 Table 13: Correlation between the company‟s organizational culture and employees‟ job satisfaction. 38 Table 14: Details of correlation between the company‟s organizational culture and employees‟ job satisfaction.
39 Table 15: Regression between organization culture factors and the employees‟ job satisfaction. 41 Table 16: Detailed regression between organizational culture factors and job satisfaction factors. 45 Table 17: Groups of sex and job satisfaction. 47 Table 18: Groups of sex and organizational culture.
49 Table 19: Tables showing significant differences among the means of independent groups of job grade to the employee‟s job satisfaction. 53 Table 20: Tables showing significant differences among the means of independent groups of employees‟ education to their job satisfaction. 55 v LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Table 21: Tables showing significant differences among the means of independent groups of employees‟ living areas to their job satisfaction. 56 Table 22: Tables showing significant differences among the means of independent groups of employees‟ service duration to their job satisfaction.
58 Table 23: Tables showing significant differences among the means of independent groups of employees‟ job grades to the organizational culture. 60 Table 24: Tables showing significant differences among the means of independent groups of employees‟ educational levels to the organizational culture. 61 Table 25: Tables showing significant differences among the means of independent groups of employees‟ marital status to the organizational culture. 63 Table 26: Tables showing significant differences among the means of independent groups of employees‟ service duration to the organizational culture.
63 Table 27: Tables showing significant differences among the means of independent groups of employees‟ living areas to the organizational culture. 65 vi LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LIST OF FIGURE Figure 1: A framework to analyze the relationship between Organizational culture and Job satisfaction. 12 Figure 2: Job satisfaction among total respondents at LG Display Vietnam. 33 Figure 3: Analysis of organizational culture in LG Display Vietnam.
35 vii LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com CHAPTER 1: INTRODUCTION 1. Rationale Located in Hai Phong Province, Vietnam, LG Display Vietnam was officially established in April 2016 with total investment 1. It is one branch of LG, a famous Korean group specializing in manufacturing electronic products such as TV, OLED, POLED module, washing machines, vacuum, refrigerator, etc. With the purpose of becoming number one global display manufacturing company in electronics industry, the company will reach 20.000 employees including 200 Managers, 1.800 Engineers, 200 Unit leaders, 1.900 Technicians, 500 Korean Interpreters and about 17.
With this business strategy, work quality, employee commitment and recruitment efficiency (mass numbers) are always the matters of concern of the director board. As a new company, LG Display Vietnam now focuses on building up a strong organizational culture in order to help motivate its employees to work and create the most professional working environment with high job satisfaction for the employees in the company. Despite such efforts, turnover rates of the company are a little high, 3.5% among line worker taking shift work and 2.5% among office workers taking admin shift (turnover rates of other companies in the same industry are 3% and 2% relatively). Consequently, high turnover rates have led to negative effects on LG Display as follows: - Shortage of key positions such as Managers, Assistant Manager, Engineers.
This causes over-workload for current manpower in the same positions. - Low work performance of respective departments. - Worry for the management board and recruitment team. - Low cooperation among departments in the company because all are busy and they are working under high pressure because of manpower shortage.
1 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com With above mention perspectives, this study will focus on finding: a) actual effects of current organizational culture on employees‟ job satisfaction; b) the levels of effects of organizational culture on employees‟ job satisfaction. The rationale of the current study, therefore, is to analyze effects of organizational culture on the employees‟ job satisfaction which may have certain relations with the high resignation as above mentioning. The study is also expected to reveal levels of such effects and what could be executed to improve current organizational in order to have a better one in the future. This study, therefore, intends to discover interesting relationship between the company‟s organizational culture and its employees‟ job satisfaction.
Based on the results, possible contributions to the management of the company may be made accordingly. Moreover, the study will focus on key elements of organizational culture and the levels of its effects on employees‟ job satisfaction. Taking into account different elements of job satisfaction, the theory of organizational culture and job satisfaction will be openly discussed, so that the reader can fully understand fully about them, elements of these two areas, certain theoretical relationships concluded from results of previous studies and researchers. Objectives of the research By the end of the research, the author aims to: - To study impacts of organizational culture on job satisfaction of employees in LG Display Vietnam.
- To identify key elements of organizational culture and its effect levels on job satisfaction of different groups of employees at LG Display Vietnam - To propose recommendations for the management of the company (if any) in order to increase job satisfaction and firm‟s performance. Subjects and the Research Scope With the research environment in LG Display Vietnam, main subjects of the study are permanent employees in the company. These employees are managers, assistant managers, engineers/ assistants, unit leaders, technicians and operators. They have been working from one month to more than 24 months in the company.
They are 2 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com from different areas of the country and grouped into three main areas, Hai Phong, nearby and far away. These people belong to different educational levels, from secondary/ high school to higher education, and both male and female groups. Regarding the data, most of the secondary data were collected internally from internal HR policies, monthly turnover reports, analysis of employee types, recruitment materials, and reports from TDR Task Team, from Jan till April 2018. The primary data, on the other hand, were collected through questionnaires conducted to nearly 1.000 employees of all job grades.
These employees were working in the company at the time that the research was conducted. Although there are different aspects of organizational culture and job satisfaction to study, the author will mainly focus on the impact of organizational culture on its employees‟ job satisfaction, the levels of effects if any only. Further conclusions and recommendations for organizational culture will be provided so as to strengthen current organizational culture elements in the company while motivate the employees to feel satisfied and work more fruitfully. Research questions Within its scope about job satisfaction and engagement to work, this study seeks to answer the following core research questions: - How does the organizational culture affect employees‟ job satisfaction at LG Display Vietnam? - What are elements of the organizational culture there and its levels of effects on employees‟ job satisfaction?