UNIVERSITY OF ECONOMICS AND LAW FACULTY OF BUSINESS ADMINISTRATION --- TRAN LE DIEM QUYNH FACTORS INFLUENCING EMPLOYEES’ MOTIVATION IN IMPLEMENTING 5S SYSTEM AT MILITARY COMMERCIAL JOINT STOCK BANK - SAIGON BRANCH Major: Business Administration Code: 7340101 THESIS GRADUATION INSTRUCTOR: MSc. NGUYEN HONG UYEN Ho Chi Minh city, 04/2024 UNIVERSITY OF ECONOMICS AND LAW FACULTY OF BUSINESS ADMINISTRATION --- THESIS GRADUATION FACTORS INFLUENCING EMPLOYEES’ MOTIVATION IN IMPLEMENTING 5S SYSTEM AT MILITARY COMMERCIAL JOINT STOCK BANK - SAIGON BRANCH Major: Business Administration Code: 7340101 STUDENT: TRAN LE DIEM QUYNH STUDENT ID: K204071543 INSTRUCTOR: MSc. NGUYEN HONG UYEN Ho Chi Minh, 04/2024 DECLARATION OF AUTHORSHIP I would like to affirm that this research article reflects my individual efforts, conducted with the valuable guidance of Ms. Nguyen Hong Uyen.
While presenting and implementing the research findings, it is important to acknowledge that errors may occur due to constraints such as time, data, knowledge, and personal experience. I eagerly anticipate receiving additional guidance from teachers and welcome contributions from colleagues, friends to enhance the quality of my research. THE AUTHOR TABLE OF CONTENTS TABLE OF CONTENTS. i LIST OF TABLES.
i LIST OF FIGURES. iii LIST OF ABBREVIATIONS .1 Reasons for choosing the topic.6 Structure of the thesis .7 Limitation of the thesis .8 Contributions of the thesis. THEORETICAL BASIS AND LITERATURE REVIEW .1 Overview of 5S Process .2 Elements in 5S Process .4 Concept of commercial bank .2 Definition of employee motivation .3 Factors affecting the motivation of employees in 5S implementation .4 Theories related to factors affecting the motivation of employees .1 Maslow’s Hierarchy of Needs .2 Alderfer’s ERG Theory (1969) .3 Herzberg Two Factor Theory (1959) .4 The Job Characteristics Model by Hackman and Oldham (1974) .5 Kovach's Ten-Factor Motivation Model (1987) .5 Research model and research hypotheses .1 The research hypotheses .2 Proposed research model. 28 Conclusion of Chapter 2 .1 Data collection method .3 Quantitative formal research .1 Sample selection process .2 Data analysis method.
37 Conclusion of Chapter 3. RESEARCH RESULTS AND EVALUATION .1 Overview of MBBank and MB Saigon.1 Overview of MBBank .2 Formation and Development Process .3 Overview of MB Saigon .4 Organization structure and functions of departments .2 Current policy application of the MB Saigon in 5S implementation .1 Perception of leadership and employees .2 Training and skill development .3 Culture and organizational policies .3 Survey sample characteristics .4 Working time at MB Saigon .4 Statistics describing survey sample characteristics .5 Test the reliability of the scale (Cronbach's Alpha index) .6 Exploratory Factor Analysis .1 Exploratory factor analysis of independent variable .2 Exploratory factor analysis of dependent variable .7 Correlation analysis and regression .1 Pearson Correlation Analysis .2 Multiple regression analysis .9 Standard distribution inspection .1 Differences of Employee Motivation in “Gender” groups .2 Differences of Employee Motivation among “Age” groups .3 Differences of Employee Motivation among “Position” groups .4 Differences of Employee Motivation among “Working time” groups 74 Conclusion of Chapter 4. DISCUSSION AND MANAGERIAL IMPLICATIONS .2 Proposed administrative implications.1 Proposal on “Training”.2 Proposal on “Employee involvement” .3 Proposal on “Top management role” .4 Proposal on “Organization culture” .3 Limitations of the topic and the direction of further study. 83 Conclusion of Chapter 5.
84 LIST OF REFERENCES. 85 iv LIST OF TABLES Table 2.1 Empirical studies related to factors influencing the 5S implementation .1 Scale of Top management role .2 Scale of Training .3 Scale of Employee involvement .4 Scale of Organization culture .5 Scale of Employee motivation .1 Descriptive characteristics of samples by age .2 Characteristics that describe patterns by age .3 Characteristics describing patterns by position.4 Characteristics that describe the sample by experience .5 Statistics describing the characteristics .6 Cronbach's Alpha index .7 KMO and Bartlett's Test of Independent Variables .8 Total Variance Explained Independent Variables .9 Rotated Component Matrix Independent Variables .10 KMO and Bartlett's Test of Independent Variable .11 Total Variance Explained of dependent Variable .12 Component Matrix dependent Variable .17 Summary of result testing research hypotheses .18 Independent Samples Test .19 Test of Homogeneity of Variances of age groups .20 ANOVA of age groups .21 Test of Homogeneity of variances of position groups .22 ANOVA of position groups .23 Test of Homogeneity of variances of working time .24 ANOVA of working time groups. 75 ii LIST OF FIGURES Figure 2.1 The Schematic Diagram of 5S Principle .2 Hirano’s 5S implementation strategy .3 The Pyramid of Hierarchy of Needs by Abraham Maslow .4 Alderfer’s ERG Theory .5 Herzberg's two-factor theory .6 Hackman and Oldham's Job Characteristics .7 Model of factors influence employee motivation in 5S implementation at MB Saigon .1 Organizational Structure of MB Saigon .2 Summarizing research results .4 P-Plot of Regression Standardized Residual. 70 iii LIST OF ABBREVIATIONS No.
Abbreviation Meaning 1 ANOVA Analysis of Variance 2 MBBank Military Commercial Joint Stock Bank 3 MB Saigon Military Commercial Joint Stock Bank – Saigon Branch 4 EFA Exploratory Factor Analysis 5 KMO Kaiser-Meyer-Olkin 6 Sig Significance 7 SPSS Statistical Package for the Social Sciences 8 VIF Variance Inflation Factor 9 WTO World Trade Organization iv CHAPTER 1.1 Reasons for choosing the topic In today's evolving market economy, businesses are increasingly adapting and swiftly integrating into the dynamic and bustling marketplace. Particularly, with Vietnam's entry into the WTO, coupled with the severe global economic downturn, the competition has intensified, compelling businesses to either evolve or be phased out of the market. To succeed in competitive market, businesses seeking to thrive must find ways to offer products and services that meet customer demands. They must develop and implement strategies to improve and innovate their quality to satisfy customer needs.
However, regardless of the business model, investment in technology, equipment, and especially people are critical factors that determine a company's success. The 5S process emerges as a pivotal strategy in this context, offering a framework that directly contributes to enhancing a company's competitive edge and achieving sustainable development through meticulous organization and efficiency improvement. Developed by JIT Management Laboratory Company Ltd in Tokyo, 5S is a method of organizing the workplace efficiently, effectively, and safely. It emphasizes proper placement and cleanliness to facilitate easy identification and fault detection.
The 5S system, originating from Japanese manufacturing, has achieved global success over the past twenty-five years, impacting countries like Singapore, Hungary, the USA, and China. It significantly enhances organizational efficiency by improving productivity, quality, safety, and maintenance, while also reducing costs and setup times, increasing customer satisfaction, and fostering better employee discipline. The system's success is deeply rooted in the active commitment and participation of employees at all levels. Scholars like Hill (2009), Hiregoudar (2007), and Albert (2004) stress the indispensable role of employee involvement, hard work, and dedication in the effective adoption of the 5S System.
Moreover, Beale (2007) highlights the critical need for employee motivation to implement lean manufacturing practices, including 5S, emphasizing that in a challenging management landscape, motivating the workforce is 1 crucial for realizing organizational objectives and ensuring the delivery of consistent, high-quality service. Radnor et al. (2012) point out that 5S is also an important tool for instilling motivation in workers. However, there is little research regarding employee motivation in implementing 5S in service firms, particularly in the Vietnamese banking sector.
My observations during an internship at MB Saigon revealed the ineffectiveness of the 5S methodology implementation. Despite the introduction of 5S principles, their practical application in daily work practices was limited. Recognizing these shortcomings, the author decides to focus my graduation thesis on "Factors influencing employees’ motivation in implementing 5S system at Military Commercial Joint Stock Bank - Saigon Branch." The objective is to identify the factors that influence employee motivation in effectively implementing the 5S system at the Military Commercial Joint Stock Bank - Saigon Branch, thereby providing actionable recommendations for improving the application of the 5S methodology in this context.2 Research objectives The primary objective of this research is to uncover the key factors that impact employee motivation in implementing the 5S system within a banking environment, particularly focusing on the MB Saigon. In order to achieve the main research objective, this thesis aims to Firstly, to present an overview of the 5S methodology: its concept, characteristics, and implementation methods, to provide the audience with a basic understanding of this production approach and establish appropriate theoretical bases Secondly, to conduct an analysis of the current situation to identify the specific factors that influence employee motivation in relation to the 5S system.
The research scrutinizes how effectively the 5S methodology is being applied within the bank to elevate work quality among its staff. It involves a detailed examination of the bank's existing policies and practices related to the 5S system. 2 Thirdly, to develop surveys and questionnaires targeted at the Saigon branch's employees to collect empirical data on their experiences and perceptions regarding factors in the 5S implementation and analyze the collected data to evaluate how effectively the 5S process. Lastly, propose strategic improvements to the 5S process that aim to enhance its effectiveness and sustainability at the MB Saigon 1.3 Research methodology The research was conducted using a quantitative method through 2 main steps: actual survey and primary data analysis.
After consulting previous studies, the author design scales for proposed concepts and research. Then, the author used questionnaires to collect data for research. After collected data will be processed and implemented in the following order: Step 1: Analyze the survey sample; Step 2: Test the scale (Using Cronbach's Alpha coefficient, EFA exploratory factor analysis, Pearson correlation coefficient analysis); Step 3: Regression analysis of factors affecting employee motivation to participate in the 5S process; Step 4: Test the model and hypotheses. The survey uses a Likert scale where responses are coded on a 5-point scale.
Author use SPSS 27 statistical data processing software and Microsoft Excel spreadsheet software to process and analyze data.4 Research subject Research object: Factors influencing employee motivation in 5S implementation at MB Saigon. Survey object: Employees at MB Saigon.5 Research scope Research space: The research activities are carried out at MB Saigon Research scope: Research period November 11, 2023 to January 16, 2024.6 Structure of the thesis This dissertation is comprised of five chapters, with the following specific content Chapter 1: Introduction Chapter 2: Theoretical basis and literature review Chapter 3: Research methodology Chapter 4: Research results and evaluation Chapter 5: Discussion and managerial implications 1.7 Limitation of the thesis The report has been completed based on the author's research and analysis. However, there are still shortcomings in the report, which stem from limited work experience and insufficient specialized knowledge. The company has a high level of information confidentiality, so the data collected is not complete, leading to incomplete and unfinished analytical indicators.8 Contributions of the thesis This study aims to achieve its research goals and enhance the understanding of 5S in the banking sector, focusing on MB Saigon.
It provides a detailed analysis of the 5S process and includes surveys to suggest practical solutions and improvements. Successful 5S implementation can boost the bank's efficiency, increase employee satisfaction, and improve its public image. By addressing the key factors that affect employee motivation, the bank can navigate the challenges of implementing the 5S system effectively. The findings will be useful for future research on what motivates employees in the context of 5S implementation.
4 Based on the literature review in the previous sections, it appears that no study has been devoted to the implementation of 5S in banking services in Vietnam. Therefore, this research study is novel, and it will attempt to close or minimize this gap by offering a new dimension and positive opportunity in the application of 5S in the banking industry. Previous studies have mostly focused on 5S in the manufacturing sector, since it was initially developed for the manufacturing field and successfully used by Toyota. There is a lack of empirical research with quantitative findings carried out concerning 5S in the banking industries in Vietnam.
THEORETICAL BASIS AND LITERATURE REVIEW 2.1 Overview of 5S Process 2.