MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HOCHIMINH CITY --------- Đặng Minh Hải DETERMINANTS OF ORGANIZATIONAL PRIDE OF STAFFS IN TELECOMMUNICATION COMPANIES IN VIETNAM MASTER THESIS Ho Chi Minh City, 2011 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HOCHIMINH CITY --------- Đặng Minh Hải DETERMINANTS OF ORGANIZATIONAL PRIDE OF STAFFS IN TELECOMMUNICATION COMPANIES IN VIETNAM Major: Business Administration Code: 60.05 MASTER THESIS Supervisor: Nguyễn Thị Mai Trang Ho Chi Minh City, 2011 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com i ACKNOWLEDMENTS After completing this dissertation, I would like to thank people who have been helping me while I was working on it. Firstly, from the bottom of my heart, I would like to thank Dr. Nguyen Thi Mai Trang, who has been very patient with me. In during working time, I often went to go for business trip and interrupted the guidance of her but she was not only to be not angry but also sympathized with me.
If there was not her toleration I could not finish this dissertation. Secondly, I would like to thank Dr. Nguyen Dinh Tho, HCMC University of Economics and Dr. Tran Kim Dung, although they were not my direct guide but they had given me many wonderful advices for my dissertation.
Thirdly, I would like to thank Dr. Tran Ha Minh Quan, he is my head teacher, whenever I have seen the difficulties he always encourages and supports me. Fourthly, I would like to thank all of my colleagues in EVN Telecom and my wonderful friends in FPT, and VTC. They have supported me to collect data.
Especially, I would like to thank an American friend that his name is Jered who has helped me to find the research materials and edited mistakes in writing English for me. Beside I also would like to thank Mr. Lai The Hung, he is CEO of EVN Telecom Transmission center and to be my boss. Finally, I would like to thank my supportive wife and daughter.
They have given me support, love and encouragement while I was working on this dissertation. Without them, I would not have completed my dissertation. LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com ii Last word, I again thank all of the people whom I just mentioned above, and I would like to try to make all my thanks, my gratitude in a way of helping others whenever I can. Ho Chi Minh City, 28 August, 2011 Dang Minh Hai LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com iii ABSTRACT Objectives: Studies continue to show that the role of job satisfaction in managing effective work relationship.
Beside job satisfaction factor, pride in the organization (organizational pride) is also an important factor affecting organizational success. This study was designed to examine determinants affecting job satisfaction, also organizational pride because job satisfaction is one in three factors effects on pride in the organization. Staffs are working in the Telecommunication companies in Vietnam to be subject of this study. Methodology: These are 209 staffs from three Telecommunication companies in Vietnam including EVN Telecom, FPT Telecom and VTC Telecom were interviewed through the questionnaire table.
Multiple regression analysis was used to identify relationship between independent variables (satisfaction with nature of work, satisfaction with coworkers, satisfaction with promotion, satisfaction with supervisor and satisfaction with working environment) and the dependent variable (organizational pride). Results: The results of the study reveal that satisfaction with supervisor affects most organizational pride level of staffs, the next is satisfaction with nature of work and the last factor is satisfaction with working environment. Conclusion: This study discusses and give some solutions to improve human resources policy, attract and retain good staffs…all solutions with the highest target are building the pride of staffs in Telcos in Vietnam. LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com iv TABLE OF CONTENTS ACKNOWLEDGEMENTS.
iii TABLE OF CONTENTS. iv LIST OF FIGURES. vi LIST OF TABLES. vii LIST OF ABBREVIATIONS.
viii Chapter 1: INTRODUCTION .2 Overview of Human resources in Telecommunication industry in Vietnam .3 Problem statement and rationales. 6 Chapter 2: LITERATURE REVIEW .2 Determinants of organizational pride. 14 Chapter 3: RESEARCH METHODOLOGY .2 Developing research methodology .3 Population and sample. 20 Chapter 4: DATA ANALYSIS .2 Assessment of scale reliability of components .3 Exploratory factor analysis (EFA) .4 The new hypothesis 30 4.6 Hypotheses testing result .7 Descriptive and ANOVA of individual characteristic factors.
35 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.8 Descriptive statistic of variables .1 Organizational pride levels among three Telcos in Vietnam .2 Descriptive statistic of independent variables .3 Descriptive statistic of dependent variables .1 Satisfaction with supervisor .2 Satisfaction with nature of work .3 Satisfaction with working environment. 54 APPENDICES: A: Vietnamese version questionnaire. 57 B: English version questionnaire. 59 C: Coding of variables.
61 D: Total variance explained table. 62 E: Descriptive statistic of independents. 63 F: Histogram and scatter plot of regression standardized residual. 64 G: Coding of variables of the new factors.
65 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com vi LIST OF FIGURES Figure 2.1: The theoretical model .1: The research process .1: Adjusted measurement model. 34 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com vii LIST OF TABLES Table 3.1: Coding of data .2: Reliability statistic and item total statistic of components .3: KMO and Bartlett’s test.4: Rotated component matrix .5: Coding new factors .6: Summary of model.7: Coefficients of independent variables .8 Results of hypotheses .9 Descriptive and ANOVA of age .10 Descriptive and ANOVA of working experience.11 Descriptive and ANOVA of gross monthly income .12 Descriptive and ANOVA of marital status .13 Descriptive and ANOVA of educational level .14: Level of organizational pride among three Telcos in VN .15: Means of new factors.16: Descriptive statistic of dependent variables. 41 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com viii LIST OF ABBREVIATIONS H Hypothesis SPSS Statistical package of social science TelcosTelecommunication companies EFA Exploratory factor analysis Wo Nature of work Su Supervisor Co Coworkers En Environment Pr Promotion Pri Pride Sig Observed significance level LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 1 CHAPTER 1: INTRODUCTION 1.1 Background Encouraging and motivating employee is a big problem so the board of director of each company always think about to find out the best way to do that, and almost the researchers in the world often focus on needs satisfaction (Mendenhall, 1995). In Viet Nam, there are many researchers have been studied this problem (Tran Kim Dung, 2005): The subject as needs, employee satisfaction and organizational commitment, this research indicates that which determinants affect positively on general satisfaction it also affects positively on organizational commitment in Viet Nam.
In addition, I also have approached the research about the Job satisfaction, Job performance, and effort (Christen et al., 2006), this article attempts to clarify ambiguities in the literature about the relationship among effort, Job performance, and Job satisfaction. It finds a negative, direct effect of effort and a positive, direct effect of job performance on job satisfaction. Indeed, employees who are satisfied with their jobs are more likely to stay with their employer (USA – A survey report by the Society for Human Resource Management 2009). According to these studies, we can see the evidences indicate the relationship between job satisfaction factor with employee behavior.
But there are a lot of factors affect employee behavior, one in these is organizational pride, if we can build pride in the organization we can keep the good employees (Arnett et al. However, in Viet Nam, there is almost not official study about the organizational pride. Viet Nam became a member of WTO in 2007, we have confirmed to open LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 2 the national market for many fields, one in that is telecommunication field. The presence of many foreign companies in Viet Nam in this field and consequence of the global financial crisis in 2008 have created a high pressure on employee policy of Viet Nam Telcos because Telecommunication field is the high technology sector so an enterprise does business in it needs to create an appropriate human resource policy because of maintaining and developing employees are a first priority for each company in this field.
Telecommunication companies in Vietnam try to attract employees of other competitor to be an element in recruitment strategy, concurrently they attempts to keep and maintain their employees. Within the limitation of resources, the Telecommunication companies (Telcos) need to build pride in the organization, if they can do that they will create a stable employee policy with a low cost. The effects of three factors on pride in the organization were examined as Job satisfaction, evaluation of managers, and organization performance (Arnett et al. This research was only designed to examine the relationship between Job satisfaction and organizational pride also it indicates the determinants effect on them.2 Overview of Human resources in Telecommunication industry in Vietnam Starting at 1993 with the appearance of VinaPhone, Vietnam Telecommunication field has been growing stably.
During 3 years from 2003, Vietnam reached the average growing rate was 40%, it was third after China and India. According to the statistic, until the end of 2005, the number of people used telecommunication services to occupy only 10% per total of Vietnam’s population. It means that, LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 3 Vietnam Telecommunication market still has been a large potential market for the local telecommunication companies and foreign telecommunication companies. Vietnam officially became a WTO’s member at 11 January 2007.
To become a WTO’s member, Vietnam had passed 15 hard negotiation rounds within 11 years with the Vietnam’s WTO commitments (Xuân Danh, 2006). This document shows a lot of commitments of Vietnam government about goods and services, and Telecommunication field is one in those. At the early of 2007, there were six mobile providers in Vietnam includes 3 providers using GSM technology, the rest of providers using CDMA technology. Addition to having 4 providers supplied fix phone service as VNPT, SPT, EVN Telecom and Viettel with many companies supplied internet service and added telecommunication services (VCCI, 2007).
Vietnam government has done the telecommunication commitments step by step. They have opened the telecommunication market for foreign investors. This performance has created the boom in Vietnam Telecommunication market. There are more many Telecom companies to be established as VTC Telecom, CMC Telecom and several of Join-stock companies between foreign investors and local companies as Hanoi Telecom, Gtel.
The competition between telecommunication companies rise fast, almost Telecom companies use the way decreasing the price of telecommunication services to compete together. Because the price of telecommunication services has been adjusted down constantly, however, the business expenditure has been rising beside the influence of global financial crisis on business activities, so Telecommunication companies in Vietnam have been facing with challenges and difficulties much. LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 4 Vietnam telecommunication field are lacking high skill employees to work seriously, at present, the Telecommunication companies in Vietnam often are supported from the foreign telecom companies to operate their telecom systems. To enhance the competition ability of Telecommunication companies in Vietnam, the boards of director of these companies need to have an appropriate recruitment and keeping policies.
How to recruit good staffs? ; How to keep good staffs? ; How to enhance the pride of staffs with low expenditure? These questions will be answered if the managers in Telecommunication companies in Vietnam have the knowledge about employee behavior, inside, they can see the terms as Job satisfaction and Organizational pride. This study has been done to help the managers in Telecommunication companies in Vietnam to answer these questions above.3 Problem statement and Rationales The results support the proposition that job satisfaction effects pride positively, as evidenced by a [beta] of .