UNIVERSITY OF ECONOMICS HO CHI MINH CITY INTERNATIONAL SCHOOL OF BUSINESS ----------------------- NGUYEN THI TRUONG LE DETERMINANTS OF WORKER’S JOB SATISFACTION AND EFFECTIVENESS OF UNION IN GARMENT INDUSTRY IN VIET NAM MASTER OF BUSINESS SUPERVISORS: DR. NGUYEN QUYNH MAI Ho Chi Minh City – Year 2014 TIEU LUAN MOI download : skknchat@gmail.com 1 ACKNOWLEDGE Firstly, I would like to express my appreciate to my research supervisor, Dr. Nguyen Quynh Mai for her support, suggesting, guidance during time of my dissertation. Secondly, I would like to express my gratitude to Prof.
Nguyen Dinh Tho for his effort in thoroughly guidance, encourage and support to every student throughout two-year-course. Thirdly, this research was contributed by my classmates, my colleagues, and was moral assisted by my family. I would like to send my deepest thank to them. Last, ISB staff did helped, supported with their best for convenience of MBUS 2012.
I appreciate very much for their contribution to my present result. TIEU LUAN MOI download : skknchat@gmail.com 2 ABSTRACT Garment industry in Vietnam has developed impressively and has quite highly demanded in employing labor force. Human resources management in this field is very important to maintain the stable producing. It contains many characteristics which may impact to the workers to feel more satisfaction and perform their job better.
Keep the staff satisfy to work better, more efficient is always one of business goals, especially in this special industry. This study aims to investigate which factor affecting to worker‟s job satisfaction and how the effective of union effect to worker‟s job satisfaction through these factors. The result showed that indirect compensation, working environment and relationship with supervisor factors effect to worker‟s relationship. Among three effect factors, relationship with the supervisor has the most important to job satisfaction and following is working environment and indirect compensation.
The additional finding in this research is effectiveness of union has a moderating affect to the relationship between job satisfaction and independent variables included indirect compensation and Working Environment. This finding will help to strengthen the effectiveness of Union to structure and operate effectively to satisfy their union members TIEU LUAN MOI download : skknchat@gmail.com 3 Contents ACKNOWLEDGE .5 Significant of study (Research contribution) .5 CHAPTER 2: LITERATURE REVIEW .1 Concept and Definition:.2 Direct financial compensation .6 Relationship with supervisor .2 Model and Theories:.3 Two-factor theory (motivator-hygiene theory) .4 Job characteristics model. Previous researches about job satisfaction for worker in garment industry. Conceptual model frame work and Hypothesis .15 CHAPTER 3: RESEARCH METHOD .18 TIEU LUAN MOI download : skknchat@gmail.2 Measurement and Questionnaire design: .3 Data collection method:.
4 Data Analysis Method:.1 Descriptive statistics of sample: .3 Exploratory Factor Analysis (EFA) .1 Descriptive statistics of sample .2 The construct measurement scale. Cronbach’s Alpha results of each measurement. Exploratory Factor Analysis .Adjustment of hypotheses and research model. Pearson Correlation Coefficient .3 Process Analysis in SPSS.
Discussion about findings. CONSLUSIONS AND RECOMMENDATIONS .4 Effectiveness of Union. Limitations and recommendation for future researches .54 APPENDIX A: Descriptive Statistics .57 TIEU LUAN MOI download : skknchat@gmail.com 5 APPENDIX B: PROCESS RESULT .62 APPENDIX C: Questionnaire in English .69 APPENDIX D: Questionnaire in Vietnamese .73 TIEU LUAN MOI download : skknchat@gmail.com 1 List of table Table 4.1 Descriptive statistics of sample……………………………………………………………………………………………………………24 Table 4.2 Reliability statistics for direct compensation….3 Reliability statistics for Indirect compensation…………………………………………………………………………………….4 Reliability statistics for indirect compensation (extracted ICS2)………………………………………………………….5 Reliability statistics for Working Environment…………………………………………………………………………………….6 Reliability statistics for Relationship with supervisor………………………………………………………………………….7 Reliability statistics for Feedback……………………………………………………………………………………………………….8 Reliability statistics for Union…………………………………………………………………………………………………………….9 Reliability statistics for Job Satisfaction……………………………………………………………………………………………….10: KMO and Bartlett’s test for independent variables………………………………………………………………………….11 : Rotated Component Matrixa………………………………………………………………………………………………………….12 Rotated Component Matrixa…………………………………………………………………….13 Pearson Correlation Coefficient…………………………………………………………………………………………………………36 Table 4.14 Summary output of Regression…………………………………………………………………………………………………………37 Table 4.15 Summary output of Regression…………………………………………………………………………………………………………38 Table 4.16 Regression Union and Job satisfation……………………………………………………………………………………………….46 TIEU LUAN MOI download : skknchat@gmail.1 Research background Overview the garment industry of Vietnam: Vietnam‟s textile and garment sector has seen fast and sustainable growth over the past years, playing an important role in national socio-economic development. Demand for labor in the sector is huge.
Every year, the sector gives employment for 2.2 million people, generating income for the workers. Export value of textile and garment products in recent years has been ranking number two in the country‟s total export revenue, earning a major source of foreign exchange and contributing significantly to Vietnam‟s gross national product and budget. According to government statistic office Vietnam, Labor of Vietnam Textile industry is not focused, because over 70% of the textile enterprises are small and medium enterprises, which number less than 300 employees. Nearly 20% of enterprises employed from 300 workers to 1000 workers, the factories have 1000 workers now come up only 6%.
With such dispersion, if not linked to the training activities will be difficult to implement efficiently. Textile industry workers increased speedily and concentrated mainly in the non-state enterprises, then in the enterprise with 100% foreign capital. These two types currently attract two thirds of the entire sector workers. Often the majority of these businesses today tend to attract for new labor, but not care deeply in keeping the current ones.
Lead to a scramble for labor among firms in the sector has increased at an alarming rate; the concern was their ability to leave the company is too big due to dissatisfaction. Due to the labor requirements of the garment industry increased very fast response to worker satisfaction; this industry is actually in lack of labor. Besides that, the labor force is still weak not only at professional level but also at management one. If we do not solve this problem rapidly, it will be hard to compete and win on the market.
So, it is really necessary for the industry to know the characteristic of labor TIEU LUAN MOI download : skknchat@gmail.com 3 force and orient for a new period. (Ministry of Industry, Vietnam Textile and Garment Group, 2013) This study is to identify the factors make workers feel satisfaction and perform their work better then can affect to the economic and social development of countries involved.2 Research problem: Because job satisfaction is serious in organizations, the study of what satisfies workers is increasingly important. Therefore, the goal of this research project was to answer the overarching question: How are workers across satisfied at work? Job satisfaction is important in every worker‟s life. Workers spend more than thirds of our waking hours at work which means that if we are not happy with their jobs, they are also unhappy with their personal lives.
Workers who find satisfaction in their jobs are more enthusiastic when it comes to performing their responsibilities. Job satisfaction definitely plays an important role in determining our efficiency and productivity. Job satisfaction gives them motivation and helps them become more optimistic no matter what challenge they may face at work. It encourages workers to always give their best shot in everything they do.
In addition, a person who is truly satisfied with his or her career life helps create a more positive work environment. Workers who have job satisfaction can help boost the morale of his or her co-employees and will encourage them to be optimistic about their job. Many experts believe that job satisfaction trends can affect labor market behavior and influence work productivity, work effort, employee absenteeism and staff turnover. Moreover, job satisfaction is considered a strong predictor of overall individual well-being (Diaz-Serrano and Cabral Vieira, 2005), as well as a good predictor of intentions or decisions of employees to leave a job (Gazioglu and Tansel, 2002).
TIEU LUAN MOI download : skknchat@gmail.com 4 Beyond the research literature and studies, job satisfaction is also important in everyday life. Organizations have significant effects on the people who work for them and some of those effects are reflected in how people feel In addition, measures of job quality seem to be useful predictors of future labor market behavior. Workers‟ decisions about whether to work or not, what kind of job to accept or stay in, and how hard to work are all likely to depend in part upon the worker‟s subjective evaluation of their work, in other words on their job satisfaction.(Clark, 1998) Second one, this research is to find out the union impact to job satisfaction. The goal was to investigate the mediating role of compensation, relationship with supervisor, feedback and working environment versus relationship between union and job satisfaction.
For some country, people concern on the effective operation of union, it is speculated that if clothing factory workers were free to choose their own union and were socialized with regard to the functions of a union, it would be doubtful whether they would still be satisfied with the garment workers union (Chetty, 1983).3 Research objective - To determine factors influence worker satisfaction in garment companies - To determine the moderating impact of union to the relationship of worker‟s job satisfaction to direct and indirect compensation, working environment, relationship with supervisor and feedback.4 Scope: - Garment factories in Vietnam - Subject: workers in the garment factories in Vietnam TIEU LUAN MOI download : skknchat@gmail.5 Significant of study (Research contribution) - For management of factories to make decision in human resource management, creating appropriate decisions in managing, in order to increase productivities and employees‟ motivation level - For Union to structure and operate effectively to satisfy their union members - Theoretical contribution: understand the moderating role of union 1.6 Organization (Structure) This study includes five chapters below: Chapter 1 Introduction Chapter 2 – Literature review: this chapter includes Definition of job satisfaction, theories of satisfaction, previous researches and identifying significant satisfaction factors in this paper Chapter 3 – Research method: this chapter consists research process, measurement scale, the pilot test and the main research which was conducted. Chapter 4 – Data analysis: this chapter describes how each measurement scale was evaluated and the result of testing hypothesis. It consists of sample description, measurement scale data analysis, regression analysis and evaluating the impact of personal characteristic on employee motivation. Chapter 5 – Conclusion and Recommendation: this chapter presents brief description about research findings and some of implications has mentioned.
In the end, research limitation and recommendations for future research have presented as well. TIEU LUAN MOI download : skknchat@gmail.com 6 CHAPTER 2: LITERATURE REVIEW 2.1 Concept and Definition: 2.1 Job satisfaction Job satisfaction is described as the feelings of employees resulting from the assessment of their job. It can be negative, positive, or moderate. Edwards, et al.
(2008, p 442) refers to job satisfaction as “an evaluative judgment about the degree of pleasure an employee derives from his or her job that consists of both the affective and cognitive components”. Aamodt, (2009) defines job satisfaction as “the attitude an employee has toward his job.” Moser and Galais (2007) highlighted that employee‟s ability and opportunities aid to improve their satisfaction of the job level. Herzberg, et al. (1959) formulated the two-factor theory of job satisfaction and postulated that satisfaction and dissatisfaction are two separate, and sometimes even unrelated phenomena.
Intrinsic factors named „motivators‟(that is, factors intrinsic to the nature and experience of doing work) are found to be job „satisfiers‟ and included achievement, recognition, work itself and responsibility. Extrinsic factors which they named hygiene‟ factors are found to be job „dissatisfies‟ and included company policy, administration, supervision, salary, interpersonal relations and working conditions. Herzberg and Mausner‟s Motivation- Hygiene theory has dominated the study of the nature of job satisfaction, and formed a basis for the development of job satisfaction assessment. There are different models developed in the job satisfaction field.
Job satisfaction generally implies a positive evaluation of work and a positive effect deriving from it; that is, a “positive emotional state resulting from the appraisal of one‟s job or job experiences” (Locke 1976, p. Job satisfaction is defined as the extent to which people like (satisfaction) or dislike (dissatisfaction) their jobs" (Spector, 1994, p.2 Direct financial compensation TIEU LUAN MOI download : skknchat@gmail.