UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business ---------------------------- NGUYEN THI TUAN ANH JOB SATISFACTION IN SACOMBANK – BINH THANH BRANCH ID: 22130005 MASTER OF BUSINESS ADMINISTRATION SUPERVISOR: Dr. NGUYEN THI NGUYET QUE Ho Chi Minh City – Year 2015 TIEU LUAN MOI download : skknchat@gmail.com JOB SATISFACTION IN SACOMBANK – BINH THANH BRANCH 2 Contents Contents. 2 CHAPTER 1: PROBLEM IDENTIFICATION .3 Analyze the existence of the problem. 8 Definition of Job Satisfaction.
8 Outcomes of Job Satisfaction. 9 Analyze the existence of the problem .4 Analyze the importance of the problem .5 List of the potential causes of the problem. 17 CHAPTER 2: ALTERNATIVE SOLUTIONS.1 Analyse main causes. 27 Solution 1: Develop positive relationships between employees and managers.
27 Solution 2: Improve compensation and benefits for employees. 28 Solution 3: Develop career opportunities for employees. 30 CHAPTER 3: SELECTED SOLUTION AND CHANGE PLAN DESIGN .1 Selected the suitable solution. 38 TIEU LUAN MOI download : skknchat@gmail.com JOB SATISFACTION IN SACOMBANK – BINH THANH BRANCH 3 Limitation and Recommendation.
44 CHAPTER 4: SUPPORTING INFORMATION. 60 LIST OF REFERENCE. 61 TIEU LUAN MOI download : skknchat@gmail.com JOB SATISFACTION IN SACOMBANK – BINH THANH BRANCH 4 CHAPTER 1: PROBLEM IDENTIFICATION 1.1 Company Background SAIGON THUONG TIN COMMERCIAL JOINT STOCK BANK (hereinafter shortly referred to as Sacombank) is a commercial joint stock bank, which may manage all banking operations and other business transactions. Sacombank was established in December 1991.
They have built outstanding contribution and strong strategic partnerships with many generations of more than 15,000 full time staffs, customers, partners, shareholders and investors. The mission of Sacombank is to optimize modern and multi-utility financial solutions package for customers; bring the value of the banking profession and prosperity to staff and accompany along with Corporate Social Responsibility (sacombank. The major business activities of Sacombank and subsidiaries are to strenghthen retail banking and enhance corporate banking; to receive entrusted investment and development funds from domestic credit institutions; to grant short, medium and long-term loans; to discount commercial papers, bonds and other valuable papers; to contribute capital and to invest in joint- ventures in accordance with the law; to provide settlement services to customers; to trade foreign currencies and gold; to provide trade finance services; and to provide other banking services. In 2020, Sacombank development strategy is in Top 10 Indochina Bank; and in 2015, Sacombank is the bank operating with main targets: stable growth, professional management, suitable income, and reasonable profit.
As of December 31, 2014, Sacombank developed branch network development with nearly of 428 transaction offices including 8 transaction TIEU LUAN MOI download : skknchat@gmail.com JOB SATISFACTION IN SACOMBANK – BINH THANH BRANCH 5 offices in Cambodia, 3 transaction offices in Laos and 417 transaction offices nationwide. Sacombank - Binh Thanh Branch is one of the largest branches in Sacombank. The branch was established in November 2007 and located at 270B Bach Dang Street, Ward 24, Binh Thanh District. The branch has four transaction offices: Binh Hoa, No Trang Long, Thi Nghe, Thanh Da and one main branch.
Over 8-year development, Binh Thanh Branch has recorded a significant performance in 2011-2013. The financial results proved a company maintained a trajectory growth path in business development. The financial performance overcame other branches of comparable size. In addition, the company achieved many prestigious awards like Excellent Unit Reward - Sacombank 2011, Best Young Unit Reward - Sacombank 2012, Best Unit Reward in many years.2 Problem symptoms To have the initial general information about currently company status of Binh Thanh Branch, the writer collects secondary datas from HR Department and conducts to preliminary interviews with employees.
Based on the answers of employees, the writer can get some basic information on currently status of the company. Although Binh Thanh Branch is one of the largest and most effective branches in Sacombank, the branch also copes with many problems with policies and staff such as high turnover rate, low commitment, low employee productivity. According to HR Department report, the turnover rate has been increased significantly, 22% only for 9 first months in 2015, compared with the rate of 12% for the previous year. In TIEU LUAN MOI download : skknchat@gmail.com JOB SATISFACTION IN SACOMBANK – BINH THANH BRANCH 6 2014, there were eight new employees after four-month trial work, seven long-term employees leaving company and three supervisor transferred job to another branch.
But in the first three quarters of 2015, the amount of turnover has increased drammatically with five seniors and nearly thirty employees. In fact, this number is considered as a high turnover ratio compared to other branches in Sacombank. This turnover ratio was considered as a alarm sign of the company. The result of statistical in Table 1 in Chapter 4 showed that the comparison of employees who left out in 2014 – 2015.
According to Huselid (1995), he researched that a high turnover rate extremely have negative effects in organization such as low productivity, higher cost in recruiting and training new employees (Rousseau, 1984) and low future performance as well (Baron, Hannan and Burton, 2001). Therefore, this is a negative symptom for any organization which the high turnover becomes more larger and develop. Secondly, from secondary data, up to now Binh Thanh Branch has not achieved many targets of three quarters of year 2015. Balanced Score Card intergrated to Core Banking T24 is the software to evaluate the complete working results for each employee.
According to the bank's standard regulations, the credit employees must get more than 80 points of BSC score will be standard. The statistics in Table 2 in Chapter 4 for the sale staff are working at Binh Thanh Branch showed the current situation of working employees. Finally, according to Mr Tuan Anh - Credit Department Director, he is worried about the present employee's problem such as lack of enthusiasm, customer low satisfaction and loyalty, lack of personal initiative on the job, lack of building passion, commitment and alignment with TIEU LUAN MOI download : skknchat@gmail.com JOB SATISFACTION IN SACOMBANK – BINH THANH BRANCH 7 the organization's strategies and goals. The branch has built the good relationship with some huge clients, for instance: Golden Lotus Trading and Manufacturing Co., Ltd, Asian Rubber Co., Ltd, Anh Long Co., Ltd, Kham Thien Co.
They brought profitable transactions and had effect to the company‟s business. However, started from the beginning of 2014, with the economic has become very competitive, both competitors and other branches in Sacombank have forced to gain high productivity as well as profit. Worldwide rubber prices fell 21 per cent from May to November, going from usd94 to usd74 per pound (phnompenhpost. The vast amounts of land have been effected for rubber plantations in Binh Phuoc, Dong Nai, Tay Ninh by two of company‟s largest clients, Golden Lotus and Asian Rubber.
This leads to decrease the business corporation with company, and so profit has been reduced. Moreover, since revenue fell, it was needed to adjust plans to keep the business running effectively, the Board of Director (BOD) have decided to cut welfare buget, reduce salary of middle managers and employees, rise business sales and KPI, etc. Besides, all of employees have tried to find as many new potential clients as possible. What makes the branch less competitive than other branches in Sacombank?.
Recently, the employees receives many invitations to recruit from the HR department of many banks. They offer a very competitive salary and appointment as a high place, some employees have resigned and applied to other banks. This issue will affect the psychology of the other employees. Especially recently, branch received a lot of customer criticism about bad morale of salespeople and consultants – the key employee.
Besides, about 50% of sale staff do not have the spirit to work TIEU LUAN MOI download : skknchat@gmail.com JOB SATISFACTION IN SACOMBANK – BINH THANH BRANCH 8 and learn more knowledge about new product and sales skills, especially new employees and trial-work employees. Mr Tuan Anh noticed that work ethic of employees is not high; they do not have a specific plan to find new customers. For existing customers, they do not plan to develop favourable policies for potential customers such as reducing fees or low deposits. In fact, Binh Thanh Branch has lost many good customers.
Based on the awareness of company‟s symptoms, the low level of employee satisfaction is proposed as the central problem in this project. Therefore, the critical purpose is increasing the level of employees satisfaction, getting people taking part in solving company‟s issue and overcoming the obstacles together.3 Analyze the existence of the problem Definition of Job Satisfaction Job satisfation has been defined by Beer (1964) as employees‟ emotions and thoughts about organization, workplace and management and colleagues. The connection between employee job satisfaction and labor efficiency has already demonstrated by many researchers in the past. The advantages of job satisfaction for a company are to minimize complaints and injustice regarding employees, concentrate and successfully accomplish the work within requirement time.
Al-Zoubi (2012) implied that employees‟ performance appreciation is an implement to further improve the motivation level of the employee. Once employees feel satisfied, they will have real more work motivation, thereby their performance results in profit increase and higher further development. TIEU LUAN MOI download : skknchat@gmail.com JOB SATISFACTION IN SACOMBANK – BINH THANH BRANCH 9 Sahnawaz and Juyal (2006) proved the impact of job involvement and job satisfaction on organizational commitment. It was considered to be the key important outcomes of human resoure plans to achieve competitive performance.
While Diaz-Serrano and Cabral Vieira (2005) stated that employees with low paid are likely have low quality jobs and less job satisfaction. Baron et al. (2006), reports have generally implied there is a relationship between job satisfaction and employee absence and turnover. They tend to absent from work or resign and seek other job chances.
Singh and Kohli (2006) indicated that organizational factors such as pay, growth opportunities, job security, etc., influence an employee‟ perception of job satisfaction. Green and Heywood (2008) studied opportunities related pay allows employees optimize their motivation to increase satisfaction with pay and job security. Finally, there are many definitions of employee job satisfaction in the literature, however the common subject in the articles researched is employee satisfaction as an connection to one's work role that involves an individual's emotional, physical, and perceiveness. It is a rational and voluntary choice made by the individual that goes above and beyond work expectations to assist an organization in meeting its goals.
Outcomes of Job Satisfaction There are a number of effects brought about by low job satisfaction. Lowly satisfied employees tend to have worse physical and mental health, learn the new task more difficult, have more job stress and unrest. TIEU LUAN MOI download : skknchat@gmail.com JOB SATISFACTION IN SACOMBANK – BINH THANH BRANCH 10 The two outcomes of job satisfaction were studied by Baker (2011) – absenteeism and turnover. He indicated low job satisfaction cause absence.
He also investigated many factors influencing employees leave the company. These are tenure, salary, promotions and family commitment. When satisfaction is high, absenteeism is low and when satisfaction is low, absenteeism is high. Job satisfaction has also been found to have a connection with turnover (Cotton and Tuttle, 1986).
Managerial concern is mostly for the turnover which increases because of low level of job satisfaction. We can say thay there is an important role played by job satisfaction in employee turnover. When employees are dissatisfied with their jobs, they tend to be more experience accidents. They can not have attention on the task at company and lead directly to accidents (Barling, Kelloway, E.
Gruneberg (1979) proved that less skilled employee‟s productivity was positively related to satisfaction with his job and supervisors. The employee‟s productivity was rated by his manager and showed the results that highly skilled employees places a higher value on their job and freedom to perform their work than production.