FOREIGN TRADE UNIVERSITY HO CHI MINH CITY CAMPUS ---------***-------- GRADUATION THESIS Major: International Business Administration THE IMPACT OF JOB SATISFACTION ON EMPLOYEES’ JOB PERFORMANCE: A STUDY OF WHITE-COLLAR MILLENNIALS IN HO CHI MINH CITY GT Code KL93 Author: Nguyễn Hy Student ID: 1601025076 Class: K55CLC1 Intake: 55 Supervisor: PhD. Lê Tuấn Bách Ho Chi Minh City, May 2020 i TABLE OF CONTENTS LIST OF ABBREVIATIONS .IV LIST OF TABLES AND FIGURES. Rationale of the research. In the world.
Objectives of the research. Subject and scope of the research. 10 SUMMARY OF CHAPTER 1. Definition of job satisfaction.
Measurements of job satisfaction. Employee’s job performance. Definition of employee’s job performance. Measurements of employee’s job performance .3 The impact of job satisfaction on job performance.
Definition of Millennials generations. Characteristics of Millennials in general. Millenials at work. 17 SUMMARY OF CHAPTER 2.
Research model design .2 Research model selection and Hypothesis Development .1 Research model selection .4 Statistical Research Model. Data collection and analysis. Data collection and processing .2 Data analysis techniques .34 SUMMARY OF CHAPTER 3. Statistical description of determinants affecting Job Satisfaction.
Statistical description of Job Satisfaction - Job Performance. Demographic statistical description. The impact of demographic factors on Job satisfaction. Job satisfaction level between two groups of ages.
Job satisfaction level between two groups of genders. Job satisfaction level among different work positions. Satisfaction among different working time at current company. Impact of job satisfaction on job performance.
Interpretation and Discussion .58 SUMMARY OF CHAPTER 4. CONCLUSION AND RECOMMENDATIONS. Conclusion of research question. Recommendations for enterprises to enhance job satisfaction and performance of millennials white-collar employees in Ho Chi Minh City.
Recommendations for “Nature of Work” factor. Recommendations for “Pay and Benefits” factor. Recommendations for “Training and promotion opportunities”. Research limitation and further reseaches.
Proposal for further reseaches .71 iii SUMMARY OF CHAPTER 5. 72 SUMMARY OF THE RESEARCH. 80 iv LIST OF ABBREVIATIONS Abbreviations Full forms ANOVA Analysis of Variance CFA Confirmatory Factor Analysis Df Degree of Freedom EFA Exploratory Factor Analysis GDP Gross Domestic Product HCMC Ho Chi Minh City JDI Job Descriptive Index JSS Job Satisfaction Survey KMO Kaiser-Meyer-Olkin MSQ Minnesota Satisfaction Questionnaire SEM Structural Equation Modeling VND Vietnam Dong v LIST OF TABLES AND FIGURES FIGURES Figures Page Figure 1.1 GDP Growth Percentage in Asia in 2019 1 Figure 1.2 FDI inflows into Vietnam in the period of 2009 – 2017 2 Figure 1.3 Vietnamese labour productivity in 2011 – 2017 3 Figure 1.4 Vietnamese labour productivity compared with countries in 3 area Figure 3.1 Research process 19 Figure 3.2 Proposed research model 21 Figure 3.3 Statistical research model 27 Figure 3.4 Questionnaire design process 28 Figure 4.1 Age structure of survey respondents 41 Figure 4.2 Gender structure of survey respondents 41 Figure 4.3 Education level structure of survey respondents 42 Figure 4.4 The structure of working time at current companies 42 Figure 4.5 Working position structure of survey respondents 43 vi TABLES Tables Page Table 3.1 Research Hypotheses 32 Table 3.2 Model’s suitability indicators 37 Table 4.1 Statistical description table of independent variables 40 Table 4.2 ANOVA test results 44 Table 4.3 Initial result of EFA analysis for independent variables 47 Table 4.4 Final result of EFA analysis for independent variables 48 Table 4.5 EFA initial result for Job Satisfaction – Job Performance 49 Table 4.6 EFA final result for Job Satisfaction – Job Performance 50 Table 4.7 Standardized Regression Weights – CFA Test Result 52 Table 4.8 Composite Reliability and Average Variance Extracted 53 Table 4.9 Regression Weight – SEM Model on 1st try 54 Table 4.10 Regression Weight – SEM Model on 2nd try 55 Table 4.11 Standardized Regression Weight – SEM Model on 2nd try 55 Table 4.12 Bootstrap testing results 58 Table 4.13 Examination of research hypotheses 63 1 CHAPTER 1. INTRODUCTION This chapter as the beginning research provides a clear introduction of many fundamental aspects, consisting of rationale, research background and methods, aims and objectives, subject and scope, contribution as well as topic structure.
The chapter also presents a general perspective on the contents of the remaining four ones. Rationale of the research The Vietnam economy has skyrocketed over the last years, which makes Vietnam be one of the most considerable growth in percentage of GDP growth in 2019 (just behind Lao and Cambodia).1 GDP Growth Percentage in Asia in 2019 (Unit: %) 7 7 7 6 5 5 5 4 2 1 Source: Asian Development Bank, 2019 Besides, Vietnam economy also receives many valuable investments from foreign organizations and enterprises, and the total inflows into Vietnam value recorded at the end of 2019, including newly and additionally registered capital as well as additional existing capital ones, reach 38 billion USD, which raised by 7.2% 2 when comparing to the same period in 2018 and this is also the highest recorded value in the last 10 years. This actually brings Vietnam economy into both opportunities and challenges, especially in private sector ones where the competition happens fiercely day by day.2 FDI inflows into Vietnam in the period of 2009 – 2017 (Unit: billion USD) 35,88 24 23,6 24,5 23 22 19 16 15 2009 2010 2011 2012 2013 2014 2015 2016 2017 Source: Ministry of Planning and Investment, 2017 In addition to this significant economic development, in terms of human resources or personnel aspect, according to a survey in the second quarter, 2016 of JobStreet.com, Vietnam has more than 13.000 employees, of which nearly 85% of employees surveyed feel dissatisfied with current jobs. Also, according to the Vietnam Economic Annual Report 2018, Vietnam's labor productivity experience relatively considerable growth which has been expressed by the fact that with the economic growth in 2018 of 7,08 %, the labor productivity of the whole economy at current prices in 2018 was estimated at 102,2 million VND/labor (equivalent to US $ 4.521 / labor which increased by 6% compared to 2017.
Generally, in the period of 2011-2018, the labor productivity increased by an average of 4,88% / year. Nevertheless, Vietnamese productivity still ranked lowest in Asia. The average productivity level in Vietnam increased by 36%, however, Vietnam's labor productivity only equal to 1/18 Singapore, 1/16 of Malaysia and 1/3 3 of Thailand and China (General Statistics Bureau); this makes enterprises in VietNam in general or the economic center like Ho Chi Minh City in particular, consider again the relationship between job satisfaction and employee’s job performance and how to effectively maximize these factors.3 Vietnamese labour productivity in 2011–2017 (Unit: million VND per labour) 93,2 79,4 84,5 74,7 68,7 63,1 55,2 2011 2012 2013 2014 2015 2016 2017 Million VND per labour Source: General Statistics Bureau, 2017 Figure 1.4 Vietnamese labour productivity compared with countries in area 15,7 Singapore 14,1 14,3 6,6 Malaysia 2,9 5,7 2,9 Thailand 2,9 2,7 2,6 Indonesia 2,6 2,4 1,9 Philippines 1,9 1,8 1 Vietnam 1 1 2016 2014 2010 Source: General Statistics Bureau, 2016 4 Additionally, before solving that problem, businesses need to determine their employees belonging to what kind of generation, which can be The Baby Boomers, GenX, Gen Z or espcially Gen Y (Millennials). According to the Socio-Economic Situation Report (General Statistics Bureau, 2016), the Millennials accounts for the majority (about 51%) of the Vietnamese labor force.
In addition, the Millennials has many different characteristics compared to the previous ones, especially in the fashion of life, of thinking and ways of doing business. making many firms difficult because of facing risks such as low performance or job-hopping. Therefore, if an enterprise wishes to understand its employees, to implement appropriate human resources strategies to fulfill employees’ needs, maintain and promote, retain talents so as to improve the business results of the company, the clear understanding about the impact of job satisfaction on Millenials employee’s job performance is a must- have. This research is also a worldwide trend when it is forecasted that the Millennials will reach 75% of the global workforce by 2025.
With those above notable emerging and existing problems, however, the studies drawing solutions or giving a comprehensive understanding about them have been relatively limited, which just appeared and got attention in abroad with some studies, and in Vietnam, just be around satisfaction, not mentioned clearly and concretely the job performance and the relationship between them, especially for the Millennials white-collar. Realizing the importance of above issues, the author decided to conduct the research on the topic “The impact of job satisfaction on employees’ job performance: A study of white-collar millennials in Ho Chi Minh City” in order to examine, evaluate and display the comprehensive picture about this consequence to support businesses as well as corporations build and implement proper personnel management with the aim of maximizing not only human capital capabilities but also business performance. In the world Since the late 1950s, the impact of job satisfaction on employees’ job performance has been a topic being much interested and studied all over the world. To examine this issue, most authors like Brayfield & Crockett (1955), Herzberg et al.
(1957) and Pushpakumari (2008) have used both primary and secondary data collection methods, through that building and analyzing models to draw conclusions. Specifically, the following outstanding research papers are included. Firstly, this impact received inconsistent and weak results from the first periods, especially which happened before 21st century. In details, prior to raising the “Motivation - Hygiene factor theory” in 1964, Herzberg et al.
(1957), although having a positive look about this relationship, the correlations they examined were generally low and came to the conclusion that further attention to satisfaction in relation to employee’s job performance need to be warranted. Besides, despite finding that people derive intrinsic value from work, with the studies of Iaffaldano and Muchinsky (1985) as well as Brown and Peterson (1993), the relationship between job performance and job satisfaction has also been found to be inconsistent and weak, which was the same results with the research “Employee Attitudes and Employee Performance” (Brayfield & Crockett, 1955). On the other hand, the effect of Job Satisfaction on Work Performance is considered as strong, even positive in other research. For instance, employee performance is described as an explicit consequence of satisfying the needs of employees in the enterprises by stating that "it was typically assumed by most people associated with the human relations movement that job satisfaction was positively associated with job performance.
In fact, human relations might be described as an attempt to increase productivity by satisfying the needs of employees" (Work and Motivation, Vroom, 1964). Moreover, when it comes to this modern century – the 21st, this impact has again affirmed strongly positive with the support from a lot of of research findings. Notably, with the recent paper having close topic to this research, studying the employees in private sector organizations in Sri Lanka “The Impact of Job Satisfaction on Job Performance: An Empirical Analysis” (2008), Pushpakumari 6 confirmed firmly that: There is a significant impact of job satisfaction on job performance of employees working in private-sector organizations. In general, succeeding studies around the world have begun to explore employee satisfaction issues early and made significant discoveries about factors that affect employee satisfaction.
Nevertheless, there have not been many articles focusing on Millennials white-collar employees, namely job satisfaction of Millennials White- collar employees. Besides, previous abroad studies have also shown an influence of employees’ job satisfaction on their individual job performance but no studies have shown particularly millennials white-collar workers subject. In Vietnam Being researched much worldwide, however, in Vietnam, the issue of the effect of job satisfaction on job performance or job performance separately have not been received much attention. There is few researches mentioning this topic, although job satisfaction has still been studied individually.