ĐẠI HỌC QUỐC GIA HÀ NỘI TRƯỜNG QUẢN TRỊ VÀ KINH DOANH --------------------- LÊ PHẠM TUẤN ANH DETERMINANTS OF EMPLOYEE ENGAGEMENT - A CASE STUDY OF VNPT TECHNOLOGY CÁC YẾU TỐ QUYẾT ĐỊNH ĐẾN SỰ GẮN KẾT CỦA NHÂN VIÊN TẠI CÔNG TY VNPT TECHNOLOGY LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH Hà Nội - 2024 ĐẠI HỌC QUỐC GIA HÀ NỘI TRƯỜNG QUẢN TRỊ VÀ KINH DOANH --------------------- LÊ PHẠM TUẤN ANH DETERMINANTS OF EMPLOYEE ENGAGEMENT - A CASE STUDY OF VNPT TECHNOLOGY CÁC YẾU TỐ QUYẾT ĐỊNH ĐẾN SỰ GẮN KẾT CỦA NHÂN VIÊN TẠI CÔNG TY VNPT TECHNOLOGY Chuyên ngành: Quản trị kinh doanh Mã số: 8340101.01 LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH NGƯỜI HƯỚNG DẪN KHOA HỌC: TS. NGUYỄN ANH TUẤN Hà Nội - 2024 DECLARATION I confirm that the research outcomes in my thesis are the product of my own independent labor throughout the course of my studies and research, and they have not yet been published in other people's works of research or publications. The results of other people’s study and any supporting materials (such as table, figure, extraction, formula, and other documents) that are utilized in the thesis are correctly cited, and permission is obtained as needed. I am accountable for the aforementioned declaration in front of the Thesis Assessment Committee, Hanoi School of Business, and the law.
Date 15/03/2024 ACKNOWLEDGEMENT Please allow me to thank Dr. Nguyen Anh Tuan for his enthusiasm and detail throughout the process of completing this thesis. His knowledge of the subject matter, research prowess, and encouragement helped me improve my statistical analysis skills, specifically the use of structural equation modeling. I would also like to thank all the instructors at Hanoi School of Business and Management (HSB) – Vietnam National University for imparting valuable knowledge during my time studying here.
In addition, it would be remiss if I did not thank my MBA22 classmates and my colleagues at VNPT Technology, who encouraged and supported me during my studies and thesis writing. I would like to thank my family, especially my wife and children, for always being a source of spiritual encouragement for me during nearly 2 years of studying. Date 15/03/2024 CONTENTS LIST OF FIGURES .i LIST OF TABLES .2 Purpose of the research .3 Objects and scope of study .1 Objects of the study .2 Scope of the study .1 Engagement as job satisfaction .2 Engagement as organizational commitment .3 Engagement as job involvement .6 Overview of VNPT Technology .3 Sample and data collection .1 Summary of the survey result .3 Between group differences .3 Level of education .4 Structural equation modeling .2 Reliability and validity test. RECOMMENDATION AND IMPLICATION.
87 LIST OF FIGURES Figure 2. Revised framework of engagement. The job demands-resources model of burnout. Framework for understanding components of employee engagement.
Proposed research model. Job tenure distribution. Level of education distribution. Revised measurement model: standardized estimates.
Structural equation model: standardized estimates. Result of the hypotheses testing. 75 i LIST OF TABLES Table 2.1 Headcount by level of education .2 Headcount by functions .3 Employee income & productivity. Test of homogeneity of variance for gender.
ANOVA: between group differences X gender. Test of homogeneity of variance for age. ANOVA: between group differences X age. Multiple comparisons between groups of age.
Test of homogeneity of variance for level of education. ANOVA: between group differences X level of education. Multiple comparisons between groups of level of education. Test of homogeneity of variance for job tenure.
ANOVA: between group differences X job tenure. Observed variables removed from the model. Observed variables retained in the modified mode. The result of the reliability and validity test.
Summary of relationships between latent and observed variables. Direct relationships among latent variables. Relationships between latent variables. Indirect effects mediated by attitudinal engagement .1 Research rationale All organizations, regardless of size, whether local, national, or multinational, always consider their human resources to be a valuable asset.
The success of a company is largely determined by its human resources. Effective human resource management is critical in today’s intensely competitive business environment, and an organization can differentiate itself with a group of creative, talented employees. According to the “Vietnam Best Places to Work” annual survey in 2019, turnover rates rose during the previous three years, putting a risk of exceeding 24% in 2019. Employees who worked for the company less than two years are the most likely to quit, particularly in management and directors, which is significantly higher than other positions.
In the field of ICT (Information and Communication Technologies), particularly in the software industry, over 60% of jobs lasted no longer than two years, and nearly 80% could last no longer than three years. According to these statistics, employee engagement in the software industry in Vietnam appears to be a luxury. Despite the widespread and rising unemployment after two years of COVID-19 infection, mass resignations occurred during the first six months of 2022. As of April 2022, up to 260,000 out of 4 million LinkedIn members in Vietnam (6.5%) have changed their status to “looking for a new job”.
Additionally, 90% of members who did not post the status “looking for a new job” were very open to feedback when receiving information about new employment opportunities. Based on Anphabe survey results from December 2021, Thanh Nguyen, Managing Director of Inspiring Happiness, stated, “The level of engagement of working people in Vietnam is at an all-time low”. 1 Anphabe reported that in 2022, 47%, 53%, and 66% of employees in the information technology, electronics, and telecommunications industries, respectively, desired to leave their organization and change careers. The organization performance is strongly impacted by employee engagement.
According to Aon Hewitt (2016), motivating employees is of utmost importance because they are an integral part of an organization’s effectiveness. Engaged employees often feel at ease and enthralled by assigned tasks. Therefore, they consistently demonstrate creativity at work, thereby assisting the organization in generating more creative ideas, innovating, making organizational breakthroughs, adapting to change, and initiating change proactively. Teams that promote employee engagement see an 18-21% improvement in their productivity, according to a Gallup survey.
Employee engagement will ultimately lead to higher customer satisfaction, a lower turnover rate, and the profitability of a firm. Customers of companies with engaged workforces use their products and services more often and express greater levels of pleasure than those of businesses with disengaged workforces, according to a National Business Research Institute survey. Employees that are engaged and dedicated in their work are less likely to leave. Sometimes the best employees are not engaged, and the company might risk losing them.
Improving employee engagement encourages team members to invest in the organization, aiding in the retention of top talent. In Gallup’s 2021 report identified that teams with low engagement often have turnover rates that are between 18% and 43% greater than those with strong engagement, and the cost of replacing an employee is roughly equal to half of their annual salary. This number excludes the intellectual capital lost as a result of each employee’s departure. Also, according to Gallup’s 2022 report about global workplace, businesses with engaged employees earn 23% more profit than 2 those with disgruntled employees.
A highly engaged staff infuses every facet of the business with vigor and energy, which boosts earnings. The VNPT Group is powered by VNPT Technology in the domains of digital content, technology, electronics and telecommunications manufacturing, and information communication technology. In 2022, over 8% of the employees, including experienced, knowledgeable, and highly skilled employees, including middle-level managers, quit their jobs or switched departments. The author noticed that there are people who have a lot of energy both at work and in other activities, while other people do not.
There are employees who refused to participate in training courses like MBA, PMP. There are some key engineers who quit the job after being trained at an expert level in their profession. There are centers with very high turnover rates. Are middle managers the source of this problem? Does the job at VNPT Technology allow employees to be independent in decision-making, flexible in time management, etc., without constant supervision from superiors? So what factors will cause employees to disengage from the organization? Is it because of poor relations with colleagues, direct supervision, or a lack of faith in the company’s leadership? Does their perception of growth and advancement opportunities at work affect their engagement level? From this situation, the author chose the topic “Determinants of Employee Engagement: A Case Study of VNPT Technology”.2 Purpose of the research This research aims to examine the factors that influence engagement level at VNPT Technology, evaluate the impact of each factor on engagement, and propose solutions and management implications for enhancing employee engagement on the job and within the organization.
Specifically, the study will determine the relationships among the variables of 3 leader-member exchange (LMX), relations with colleagues, training and development opportunities, task autonomy, and employee engagement. Many research have been conducted on engagement in a range of service sectors, including hotels, banking, food service, medical, call centers etc., as well as in the manufacturing sector, but relatively few in the ICT sector. Besides the factors affecting employee engagement that have been mentioned in previous studies, such as relationships with leaders, coworkers, and career growth, this study will examine the impact of task autonomy, which is part of motivational work characteristics, on employee engagement in the context of VNPT Technology. In this study, the variables and their interactions are examined with an aim of achieving the following results: 1.
Find out how respondents feel about factors including the nature of the LMX relationship, the coworker or supervisor relationship, the level of task autonomy, the availability of training and development, and the degree of engagement. Determine how these factors relate to one another. Identify the level to which each of the above factors affect employee engagement.3 Objects and scope of study 1.1 Objects of the study The purpose of this study is to determine the determinants influencing employee engagement at VNPT Technology. The survey’s respondents are office division employees (R&D center, Technical and Service center, Business center, Solution and Product center, etc.2 Scope of the study The four key factors – Leader-member exchange, task autonomy, social support, and training and development – are selected based on observations of 4 the author within VNPT Technology.
These factors are explored to understand their direct and indirect impacts on overall employee engagement with the company as a whole, rather than isolated interactions with colleagues or managers. The intent is to provide a holistic view of organizational engagement, thereby offering insights that can help VNPT Technology foster a more engaged and committed workforce at the organizational level. Regarding space, the research will be conducted at the VNPT Technology office, located at 124 Hoang Quoc Viet, Nghia Tan Ward, Cau Giay District. Regarding time, the research will be conducted between February and May of 2023.
Questionnaires will be used to collect primary data, while secondary data will be based on actual VNPT Technology data from 2020 and 2022 and other sources from the internet.4 Research methodology The author develops and evaluates a proposed model by studying employee engagement-related theories and previously conducted research. In the research, the author uses quantitative methods to explore and examine relationships among variables in the model. Quantitative research is used to test or confirm theories and hypotheses based on numerical data, the measurement of variables, and the use of statistical procedures. Using questionnaires from previous studies such as The Work Design Questionnaire (Morgeson & Humphrey, 2006) and The Drivers of Employee Engagement (Robinson, Perryman, and Hayday, 2004), measurements will be selected to fit the VNPT Technology situation.
A total of 354 questionnaires were distributed, with an expected response rate of about 60%.