VNU- UNIVERSITY OF ECONOMICS AND BUSINESS FACULTY OF BUSINESS ADMINISTRATION FACTORS INFLUENCING EMPLOYEES’ SATISFACTION IN INDUSTRIAL ZONES: CASE STUDY OF SONG KHE- NOI HOANG INDUSTRIAL ZONE Supervisor’s name: Dr. NhamPhong Tuan Student’s name: Than Thi Minh Nguyet Student ID: 12050080 Intake: QH — 2012 —E Program: International Standard Hanoi — May, 2016 TABLE OF CONTENTS ACKNOWLEDGEMENTS 1217. Vi LIST OF ABBREVIA TIONS.- c1 t1 91H HH HH HH TH ni vii LIST 'OEEIGURES.:inc so co nh nmciensinsaiennesnenannnsivtnnannn gha 455, sedIEBSUE1G830587581836. 1x TINT RGQDUCTION ss scastis cap casanesnewunscgensinsons monsensinnnne ita «ae L5 1468005985 153613850838857955539088585388 1 CHAPTER 1: LITERATURE REVIEW.
2S ST nh HH HH 7 1.Employee/Job satisfaction defInIfIOn.Theoretical frameworks of job satIsfacfion. Framework One: Content TheOTI€S. Maslows Need Hierarchy Theory:.- cà ccccc se seceierrrrrerirree 10 1. Herzberg’s Motivator-Hygiene Theory.2, Framework Two: Process, [H€OTIES ssnssscssusernonnnnnsiiiniaesooiHStttiditssoptie 1] 1.
Vroom’s Expectancy Theory.ccccccccscscesesssesseeesesnssesssssseeneenes 12 L222, Adams? Equity THEOTY:seesnsresmnsnomrineonnnmnorinnioEOidEdfGiEMIESUOMAEASVSSBUA 12 1. Framework Three: Situational ModeÌS. Situational Occurrences Theory. Predictors of Job Satisfaction.
ce eee eeeeesceeeeceeceeseseseseeeeeees 14 1.Research about employee safISfaCfIOT. -- Sàn HH HH He, 14 1. Measurement of Job SafIsfactiOn.- óc nn nh He 14 1. Single-Item Job Satisfaction Measure.---cc se 14 ill 1.
General Job Satisfaction Measure. Facet-Specific Job Satisfaction MeasSure.cccccecccceeseceeseceseeeeteesneeeseecsseeeeseeesessessesseeesesteseesseeeaes 15 CHAPTER 2: METHODOLOOY,. Research method nn. 17 Dade Research MOE] wer sssenesanes ance gui gUEc T561gBiTDgg68006888%EVDSI2retepoiesgeloasiaran dB2110008 100100001380 1nie 17 PPN9) 200i i6 8n nh ố.
Question developIm€TI. Sampling and collecting data.-- 6 cL*n*nH HH HH Hee 23 CHAPTER 3: ANALYSIS OF DATA. sss cas cox snes curs nS 01 601A nape T05 688 on gốy tất 135 55E9E015388395590 25 3. The research 0v00ì:-‹4ZZaaùỤẶ.
Background of Boviet Solar. csscsssssseassosesevsovesoncansssenvesansnanves 888355EESGEE 25 Sleds BOWAY QLOUD sssszssiiiiiixxdesesseseseersesesneesenesBELGS. Boviet Solar Technology Co, DtG scccsccsaeecenoenner emamnentomannnoonenamesececens 27 3. Human resource management in Boviet .-- ecc ese eeeeeeeeeeeeeeeseenees 29 3.
Difficulty at human resource management in BoViet .-- - ---- 29 Bil ATIALV SIS) sà saree sete anh tụ 2308đ8ayEoaesseeesessesusn luEl iis GRACIA tưgiikuiBidg noadliliy381818846. Descriptive statistics aHAÌYSIS. coi L2 kh Gà Hà Hả g0 Hà 04 21/021111166 31 3.2 Cronbach’s alpha anaÌySIS.EGT'WOFK IÏESÏÍ.ss 686 S5 0598165 6006 8305P SMS S555 SENA 200'9880555103558:3803 10 Sa cx DSESEESEI 34 3. For working CONdItION: .- - -- Sàn xi HH HH như 35 3.
For coworker relations .cccccccccccccccccccecececesessssnsseeeceeeseesceeeeeeeenenaees 36 IV n20h, GV 9đ |8TYb-es sekn etnu ot 050164890016 3360130005-ESS685euueges umsuiemieceslS8i-gE0R E8 30B38898cEm4 14088 36 3. FOF SIDETTOT FELATIONS ¿ác ns cõi ngang 502500110 cesar TGDUBE5 Đ00HISE. For training and promotion OppOTfUnIfI€S. For efiBloWee safisfaetlOT.ssssss-sassnszesritos1888158 tin H011/615 Q88.
Exploratory factor analysis (EEA). EFA for independent Variable «sc sccicsrsssciaersonvsssnnssnvanesersnsevs nos sieresGUEReB 40 3. EFA analysis for dependent variabÌe. Multiple regression analysis.
Multicollineartty: TSt sex seusessseensisBftiporsngirggtdtillcsgggdugtagstietraoagospdlD29gfQ0p/008uDEDE801ÔA 47 3. - ch nành HH nh HH HH HH HH HH 48 3.5 FAYPOUHESES TESE se sen ns anh conesies reste coe weno poenonn one ond Was sina 084.070 151 T8074180538%58a 838 51 CHAPTER 4: RESEARCH RESULTS AND DISCUSSION. Findings and dIsCuSSIOH.eosnsniinieooibritsdsneibesvlsvdeessessseesneresusritBDEl IS NGESggeh/3SI i9 8:3181 305885305 286 8808 54 CONGLUUSIONS.GnHE2 57 REFERENCE essssccssasssavcevesnerawxeavtnenneconsnazeanss veacennovorennenostinnstunwnseropeetestiosonrerancveneneenensenad 60 APPENDIX‹-.ET2S88 ciassrrasSÐiIESESSESEINENHIS OSE gi809eS9” 65 ACKNOWLEDGEMENTS Many works were conducted over the last three months with the instructions and supports of many people around me. I greatly appreciate the contributions of these influential people and take the opportunity to thank them.
First of all, I would like to express my deepest gratitude to my supervisor, Dr. Nham Phong Tuan, for his supportive guideline and help as well as valuable feedback, which enable me to achieve and writing a well-structured paper. I am so grateful for his warm and sincere support and so sorry when disturbing him at the very late night. Besides my advisor, I would like to thank Boviet Solar Technology Co., Ltd for giving me chance to do this study.
Special thanks go to Mr. Lam, Du Xuan —Manager of human resource department for providing me opportunity working on position that is closely related with all information I need to do the research. I also thank all nice coworker who are very hard-working offices, technicians, workers in Boviet Solar Technology Co., Ltd for providing me great information to support my research. I am in debt to University of Economics and Business for providing me four unforgettable years of my student life with full of priceless experiences and memories with a lot of lectures and friends in Faculty of Business Administration.
With the deepest gratitude from my heart, I wish all of you health and happiness. Than Thi Minh Nguyet BacGiang, May, 2016 vi ABSTRACT This study examined the relationship between employees’ satisfaction with factors including work itself, working condition, salary, training and promotion opportunity, coworker relations, superior relation. The goal is to identify the influence degree of each factors listed above to employees’ satisfaction. Tests carried out in stages to test the effect of work itself, working condition, salary, training and promotion opportunity, coworker relations, superior relation on employees’ satisfaction.
The study was conducted inBoviet Solar Technology Co. with a sample of 110 survey by employees at this company including: workers, officers, technical staffs, and other job. The results showed that there are five in six factors have positive influence to employees’ satisfaction, they are work itself, working condition, salary,coworker relations, superior relation. In this research,45% change in employees’ satisfaction is explained by 5 independent variables (work itself, working condition, salary,coworker relations, and superior relations).
Salary has most significant positive effect on employee satisfaction. The research has contribution in providing some suggestions to improving employees’ satisfaction at Boviet Solar Technology Co. Those suggestions might have good impact on human resource management to reduce turnover rate and increase job effecience. Vil LIST OF ABBREVIATIONS No.
Abbreviation Explanation | | Boviet Boviet Solar Technology Co. 2 SPSS Statistical Package for the Social Sciences 3 VIF Variance Inflation Factor 4 EFA Exploratory Factor Analysis 5 KMO Kaiser-Meyer-Olkin Test 6 | VIF Variance Inflation Factor 7 SALA Salary 8| WOLF Working itself 9 | woco | Working condition 10 CORE Coworker relations 1Í SURE [ Superior relation 12 | PROP |. Training and promotion opportunity _| 13 EMSA + Employee satisfaction Vill LIST OF FIGURES Figure 2.12 Sugvestion Model gsassessaysssnsnnsriszeannosinainooansaoilGttgssiSTGiS88giG9NigSgSD2ESS0jE20630900/4820 18 Figure 3.1:Member companies of Boway GTrOUD. kh HH nghe 26 Figure 3.2: Main products produce by Boway Group .3: Department at Boviet Solar Technology Co.---------c+-<++ 28 1X LIST OF TABLES Table 2.1: Variables and measuring 1†€IS.-- - óc 1311k ng nh iey 21 Table 2.
Five-point Likert scale of measuremen.-- -¿ eee ceecnetseeerssseeees 23 Table 3.1: Descriptive statistics analysis for gender, age, Salary, major and QUALITI CB OM, cnivensxsunennvapnnenesnaroussanesennostiigeratylsas gabon ua san ssivelneueeiipy Sh1880.usessessssssaSiSk21EITESEESN 31 Table 3.2: Descriptive Statistics for independent variable and dependent variable .3: Reliability statistics analysis for work itself.4: Reliability statistics analysis for work itself (after).5: Reliability statistics analysis for working Condition.c cece eres 35 Table 3.6: Reliability statistics analysis for coworker relafiOnS.7: Reliability statistics analysis for SaÌÏaTY.- SH erre 36 Table 3.8: Reliability statistics analysis for superior relafiOnS.9: Reliability statistics analysis for training and promotion opportunities .10: Reliability statistics analysis for employees’ satisfaction .11: KMO and Bartlett's Test for independent variables .12: Total Variance Explainedfor independent variables.13: Rotated Component Matrix for independent varlables. KMO and Bartlett's Test for dependent varIables.15: Total Variance Explained for dependent variables.16: Component Matrix for dependent variables .17: Linear Regression Analysis result for SALA, PROP, SURE, WOLF, CORE, WO CO 0001 1 ẼẺ8ẽ. verecpeneeroverecnavon con end G5 ices ote haiewnynnentengnswnwinenenstsetonet3es 45 Table 3.18: Linear Regression Analysis result SALA, SURE, WOLF, CORE, WOCO -.2H0gg988i7đg8i38suelcsftfaStiiEo0b2S-ngegxcoei 47 (oC eeeeee 47 TiaS 32ltrcrrsoritrrbetsiEĐEhb Bhởigaozpicbsisesgggig82.24 ooo iicciccccccsccecsscccssceccsscecessscssecesscesssussccesssecesssessesessecssseessecesseesssesenseeesssenes 49 18 50 INTRODUCTION. Background statement Technology, engineering, modeling, all of those are created by man.
Because humans and their intelligence is the key to all initiatives, the organization has been a source of good personnel can get to all the objectives that they set out, developing and growing steadily. Human Resources is one of the most important resource deciding to the survival of any business. Factors help us recognize a business works well or not good is its workforce, with enthusiasm and creativity in work or not. Basically, human resource management known as the process of acquiring, training, appraising, and compensating employees,and of attending to labor relations, health and safety, and fairness concerns [1].
However, workers are gradually maturing in the labor market and understanding their important roles in the success of the business, their needs grow higher. Therefore companies want to compete in the attracting and retaining the good human resources, particularly- talents, the role of human resources management should be developed that besides the factors managing by policies, which is managing by psychological and emotional elements. Human resource becomes a profit center. For example, by monitoring employee satisfaction levels, Cisco was able to improve its employee retention rate from 65% to 85%, saving the company nearly $50 million in recruitment, selection, and training costs [2].
A well-managed organization usually sees an average worker as the root source of quality and productivity gains. An organization is effective to the degree to which it achieves its goals. The effective organization has to make sure that there is a spirit of cooperation and sense of commitment and satisfaction among their employees. With the trend of globalization in the world economy, small firms are discovering that success depends on marketing and managing abroad.
But expanding abroad requires putting in place management systems to control overseas activities, managing human resources internationally creates challenges. For one thing, differences in cultures and economic and legal systems influence the way practicing human resource management from country to country. Challenges like these don’t just come from the vast distances involved (though this is important). The bigger issue is coping with the cultural, political, legal, and economic differences among countries [3].
The company operating oversea need to overcome more challenges such to competing in labor force market, especially when they operating on the industrial zone with many rival in labor force. Problem statement Recently, in the latest survey of VietnamWorks (2015), 40% of people surveyed said that they will jump in when he had found new jobs. Turnover is a painful issue in the organizations. In the world of tough competition,the organizations try to minimize their turnover ratio and save cost related to recruitment, turnover cost consists of hiring, recruiting and selecting the employees[4].
There are many research has shown that job satisfaction is strongly and inversely associated with employee’s intention to leave an organization. In other words, more satisfied employees are less likely to seek a new job, with a new employee [5] The survey made by VietnamWorks also pointed out some main reasons of change the job such as: 57% surveyed said they have no opportunities for promotion, 55% of them said they do not feel respected, 54% employee change by low wages, leadershipis not good make 37% of surveyed gave up their job[10]. From this information, we could state that there are many ways make employee feel dissatisfied with their job and change to another. To be active in the management of human resources, minimizing the turnover rate, understanding the factors that influence satisfaction and dissatisfaction of employee is very important.
This job creates many challenges, special when company working abroad. Boviet is oversea company invested in Song Khe- Noi Hoang Industrial Zone, Vietnam which is a developing industrial zone with invested from various companies, mostly are manufacturing company hiring general workers. Although the labor force in this area is abundant, but the rapid growth in the number of companies with increasing job opportunities, workers have morechoices, turnover rate is high, and therefore, human resource competition between those companies is increase. Understanding employee insight and motivation are critical to help company win in the human resource battles.
For more than 3 months working as human resource internship at Boviet Solar Technology, author has the opportunity to in charge in the field of the corporate culture and employees’ welfare. This is a good opportunity for the author to be able to feel and assess the degree of employee satisfaction at work and the affecting factors.