UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business ------------------------------ NGUYEN THI NGOAN FACTORS AFFECTING JOB PERFORMANCE: AN INVESTIGATION OF EMPLOYEES IN THE VIETNAMESE BANKING INDUSTRY MASTER OF BUSINESS (Honours) Ho Chi Minh City – Year 2012 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business ------------------------------ NGUYEN THI NGOAN FACTORS AFFECTING JOB PERFORMANCE: AN INVESTIGATION OF EMPLOYEES IN THE VIETNAMESE BANKING INDUSTRY ID: 60340102 MASTER OF BUSINESS (Honours) SUPERVISOR: DR. NGUYEN THI MAI TRANG Ho Chi Minh City – Year 2012 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com ACKNOWLEDGEMENT I would like to give my gratefulness to my research instructor, Dr. Nguyen Thi Mai Trang for her intensive support, valuable suggestions, instructions and encouragement during the time of doing my research. I would like to express my deepest gratitude to Professor Nguyen Dong Phong, Professor Nguyen Dinh Tho, Dr.
Tran Ha Minh Quan for their valuable time as the members of the proposal examination committee. Their comments and meaningful suggestions were contributed great help for my completion of this research. My sincere thanks are given to all of my teachers at International Business School – University of Economics Ho Chi Minh City for their teaching and guidance during my MBA course. In addition, I would like to special express my thanks to all of my classmates, my colleagues at JSC Bank for Investment and Development of Viet Nam, my friends who are working in some banks in Ho Chi Minh City: Ms Pham Thi Thu Ha (Techcom Bank), Ms.
Nguyen Thi Phuong Thao (Asia Commercial Bank), Mr. Luong Thi Ngoc Tram (Sacombank), Ms Le Thi Viet Ha (Eximbank) for their support and encouragement during the time I was doing my research. LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com TABLE OF CONTENTS ACKNOWLEDGEMENT ABSTRACT TABLE OF CONTENTS LIST OF FIGURES LIST OF TABLES CHAPTER 1: INTRODUCTION .4 RESEARCH METHODOLOGY AND SCOPES .5 STRUCTURE OF THE RESEARCH. 6 CHAPTER 2: LITERATURE REVIEW AND HYPOTHESES .1 POSITIVE PSYCHOLOGICAL CAPITAL .2 QUALITY OF WORKING LIFE .4 THE CONCEPTUAL MODEL AND HYPOTHESES OF THE RESEARCH.
20 CHAPTER 3: RESEARCH METHODOLOGY .2 DATA ANALYSIS METHOD. 29 CHAPTER 4: DATA ANALYSIS AND DATA RESULT.1 CHARACTERISTICS OF RESEARCH SAMPLES .2 THE RELIABLITY TEST: THE CRONBACH’S ALPHA TEST.3 EXPLORATORY FACTOR ANALYSIS .4 MULTIPLE REGRESSION ANALYSIS .5 THE FINAL MODEL FOR THE RESEARCH. 41 CHAPTER 5: CONCLUSIONS, IMPLICATIONS AND LIMITATIONS. 45 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.
LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LIST OF FIGURES Figure 2.1 Conceptual Model Figure 3.1 Research processes Figure A1 Top 10 countries with highest asset growth of banking sector Figure A2 Top 10 countries with highest asset growth of banking sector Figure A3 ATM, POS and issued cards during 2007 -2010. Figure E1 Histogram of Job performance Figure E2 Normal Plot of Job performance Figure E3 Scatter Plot of Job performance LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LIST OF TABLES Table 3.1 Summary Result of Delivery Questionnaire Table 4.1 Sample Characteristics Table 4.2 Reliability Test Results Table 4.3 Total Variance Explained of Independent Variables Table 4.4 Rotate Factor Matrix of Independent Variables Table 4.5 Factor Matrix of Dependent Variable Table 4.6 Correlations Matrix Table 4.7 Model Summary When Adding Gender As An Independent Variable Table 4.8 Model Summary When Adding Age As an Independent Variable Table 4.9 Final Model Summary Table 4.10 Anova Result of Final Model Table 4.11 Coefficients Result of Final Model Table F1 Summary of Coefficients When Adding Gender and Age as an Independent Variable LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com ABSTRACT Viet Nam has reached many achievements in developing its country since the time the economy has been opened. In 2010, while the global economy has recovered slowly, Asia economies, especially Viet Nam, has done particular well. Viet Nam economy’s growth continues to be impressive and become the third fastest growing economy after China, India.
Vietnam has crowded population, with more than 86 millions, the third in Asia and the thirteenth in the world. In addition, the income level of population is likely to rise strongly over years. However, the population still is under – banked. Since, Vietnam is really a potential market for developing the banking industry.
Among many industries, banking industry is the most important industry that extremely contributes to the development of Vietnamese Economic. Nowadays, because of the quickly change in business environment and the more competition in banking industry, the bank’s managers have put more efforts to improve bank’s performance with other competitors. The employee takes a key factor to the bank’s performancce. So, the bank’s managers are required to understand and to investigate whether their employees are satisfied with their job or not.
Only if they are satisfied, they will contributie a higher job performance. Go along with the higher job performance, the employees will project a positive image of the organization as well as the capacity of competiveness of their banks As a result, the purpose of this research is to identify factors that affect the job performance of employees in the Vietnamese banking industry, specify to factors that belong to psychological capital and quality of working life. Key words: Psychological capital, quality of working life, job performance, banking industry performance, human resource of banking industry. LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 1 CHAPTER 1: INTRODUCTION 1.1 RESEARCH BACKGROUND The recently financial crisis is one of the most pressing challenges facing countries and businesses in today's global business environment.
It is required most countries in the world to make suitable changes to improve and overcome this difficult period. Vietnam is in the case of developing country, globalization poses distinct challenges to governments, the private sector and organized labor. These challenges, which must be addressed through a strategic approach to human resource management, include (1) Partnership in economic recovery especially in Vietnam (2) Dealing with the large foreign companies (3) Concerns over possibility of fraud in E-commerce (such as issues of confidence and trust) and (4) Implementing prescriptions for recovery and growth taking in to consideration the development agenda and unique circumstances of individual area. At present, senior executives in Vietnamese companies have become more strategic in their thinking about the human capital.
Human capital is becoming a main power for the success of any organizations. Unfortunately, the competiveness and the quality of the human resources of Vietnamese companies are in low position in comparing with other countries. The report of Labor and Social trends in Viet Nam stated that: Despite some advantages, the labor force of Viet Nam remains mostly unskilled as nearly two-third did not have any technical education. The country‟s productivity of Viet Nam remains low in absolute terms and was equal to only 61.4% of the average of Asia countries.
Viet Nam has to increase the labor productivity and enhance competitiveness of labor force LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 2 if the country desires to move up in regional and global production networks. In order to reach the goal of the economic growth as well as the higher quality of labor force, Viet Nam must address many issues, especially in human resources.2 RESEARCH PROBLEMS Banking industry is the heart of any economies. Firstly, banks act as delegated monitors and ensure that firms use the resources allocated to them effectively. Secondly, banks also play an important role as tool for executing macro – economic policies.
Go along with the quickly changes in business environment, the banking industry has renewed itself to catch up with the requirements of bank‟s users. Almost banks are offering many kinds of valuable services for customers besides its traditional services in order to upgrade the satisfaction of the bank‟s customers. Consequently, beyond the normal expectation of providing excellent customer service, the bank‟s employees are also required to sell various added value services. The quality of banking services has been moved on strongly improvement over the last few years, it is still in its infancy.
The old banking systems and the old habit of local Vietnamese resident were two major obstacles to access to finance for Vietnam‟s large population of bankable but under-banked households and enterprises. In the future, the Vietnamese banks have to do their businesses in competitive environment not only with local banks but also with a lot of foreign – owned banks. The banks need employees with high knowledge to advise more suitable services for their customers and attract more customers to use more services of banks. (See more information about Vietnamese Banking Industry in Appendix A) LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 3 Among many industries, banking industry is one of the most industry has the fastest growth in the human resources in both quantity and quality.
Banking industry has the highest attraction with job- seekers during the last ten years. The average growth in human resources of banking industry during the period 2000- 2010 was about 10% each year (Nguyen, 2012). Unfortunately, the demand of banking employees is forecasted to be in the down –trend in the next few years. According to the point of view of specialists in banking industry, many banks will cut off the employees in the next time (at the-end of 2012 and next year 2013) because of the difficulties of macroeconomic as well as the decrease in the profit of almost banks.
However, the banks will take much caution to increase the quality of labor force for banking industry. There will be some adjustments in the human resources policies, especially in training and recruiting human resources. It means that there will be a called for qualified employees who can help to enhance the performance of banking industry. The employee takes a key factor to the bank‟s performancce.
In order to enhance the productivity and profitability of the bank, the performance of employee should be strongly considered. It is important for bank‟s managers to understand and to investigate whether their employees are satisfied with their job or not. Only if they are satisfied, they will work with strong commitment, with high effort and perform their best. By this way, employees will project a positive image of the organization as well as improve their performance and the bank‟s performance.
As forementionded reasons, it is necessary for bank‟s managers to investigate which factors affect the job performance of their employees in Vietnamese banking industry. Many studies have proved that sustainable competitive advantages can best be accomplished through context- specific, cumulative, renewable, and thus hard to imitate factors (Susan. The comprehensive study (Luthans et al.,2007) have noted that “integrating human, LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 4 social, and now psychological capital can have great impact on job performance than any of the previously listed resources in separately”. Even there were many studies concerning about positive organization behaviors and its relationship with job performance as well as the relationship between the working environment and job performance, most of these studies focused on the West, Mid West and the United States.
In Asian region, most studies concentrated on developed Asian countries (Singapore, China, Taiwan, Malaysia, etc) than developing countries like Vietnam, Lao, Cambodia. In Viet Nam, there were many studies related to job satisfaction or job performance but most of these studies pay much attention to the working environment, leadership styles, organization commitment than to the Psychological Capital of the employees. The newest researh related to Psychological Capital, Quality of Working Life, Quality of Life (Nguyen and Nguyen, 2012). However, the objective of the research is the marketer in Vietnamese Market.
Researching in the field of Psychological Capital as well as the Quality of Working life in the different industries is in shortage status. Therefore, the problem to be accessed in this study is to exam the factors that impact job performance of employees in Vietnamese banking industry, especially concerning to the Psychological Capital and Quality of Working Life.3 RESEARCH OBJECTIVES According to Zikmund (1997, p.