UNIVERSITY OF BOLTON OFF CAMPUS DIVISION ĐÀO NGUYỄN QUỲNH GIAO FACTORS AFFECTING EMPLOYEES’S LOYALTY AT TIEN PHONG JOINT STOCK COMMERCIAL BANK – THAO DIEN BRANCH. BSc (Hons) Business Management Module name: BAM6001 Dissertation Module’s leader: Dr. David Racliffe Student ID: 2124765 Submission date: 1 May 2023 1 DECLARATION I hereby declare that the research paper ―Factors affecting employees’ loyalty at Tien Phong Joint Stock Commercial bank – Thao Dien branch.‖ is the result of my own research. Except for the reference content from other works as stated in the thesis, the survey data, research results given in the thesis are honest, I would like to take full responsibility for the content of this research topic.
Ho Chi Minh city, 27/12/2022 Author Đào Nguyễn Quỳnh Giao 2 ACKNOWLEDGEMENT I sincerely thank the teachers at the Institute of International Training - Banking University of Ho Chi Minh City for their enthusiastic guidance, encouragement and guidance during my study at Banking University. I would like to thank my instructor Dr. David Radcliffe and my supervisor Dr. Begum Asma for their enthusiastic guidance and useful comments so that I can complete the report smoothly.
I would also like to thank the staff and leaders of TPBank Branch for their help, support and enthusiastic advice, especially in helping me gather information for my dissertation. Although there has been careful guidance from the Instructor along with the leadership of TPBank Branch, however, as a student with limited knowledge, lack of practical experience, in-depth knowledge and limited resource. Also due to the limited time of research, the content of this report may have many unnecessary errors. Therefore, I look forward to receiving comments from teachers to improve the topic.
Thank you sincerely! 3 Table of Contents DECLARATION. Context and background. The subject and scope of the study. The research subject.
The research scope .11 Chapter 2: LITERATURE REVIEW. Basic theories of loyalty .2 Factors affecting loyalty. Welfare and policies. Relationship with colleagues.
Relationships with Leaders/Supervisor. Maslow’s hierarchy of needs (1943). Herzberg Two-Factor theory. Vroom’s expectancy theory of motivation.
An overview of previous research. 25 CHAPTER III: METHODOLOGY. Data collection technique. Triangulation, reliability, and validity.
44 CHAPTER IV: ANALYSIS OF LOYALTY STATUS AND FACTORS AFFECTING LOYALTY OF THE BANK EMPLOYEES OF TPBANK – THAO DIEN BRANCH. General introduction about Tien Phong Bank. Overview of Tien Phong Commercial Joint Stock Bank. Functions, tasks and operating principles .1: Organizational structure of human resources and labor situation of City Bank - Thao Dien Branch.
Survey sample characteristics. Preliminary assessment of the scale. Scale of independent variables. Scale of dependent variable (Loyalty).
Correlation and regression analysis .56 CHAPTER V: CONCLUSION AND RECOMMENDATIONS. Solutions and recommendations. Recommendations on welfare policy. Recommendations on working environment.
Recommendations on the relationship between leaders and employees:. Limitations of the study and suggestions for further research. 62 APPENDIX 1: OFFICIAL STUDY. 63 APPENDIX 2: OFFICIAL RESEARCH RESULTS.
Google forms result. Check the reliability of the scale by Cronbach's Alpha analysis .82 APPENDIX 3: RESEARCH ETHICS. 93 5 LIST OF TABLES AND FIGURES Figure 1. Factors affecting employees’ loyalty at manufacturing company in Malaysia (Omar, Jusoff, and Hussin, 2010).
Factors affecting employee loyalty in a large international hotel chain (Martensen and Gronholdt, 2006). Factors affecting employee loyalty in an Austrian company in the utility sector (Matzler and Renzl, 2006). Error! Bookmark not defined. Preliminary scale table Salary .2 Preliminary scale table Working environment .3 Preliminary scale table Welfare .4 Preliminary scale table Relationship with colleagues .5 Preliminary scale table Relationship with leader .5 Preliminary scale table Loyalty of employee.
Preliminary survey of differences of personal characteristics on employee loyalty .1 The Research Onion Framework (Saunders et al.1: Organizational structure of human resources and labor situation of City Bank - Thao Dien Branch. Preliminary scale table Salary affecting the loyalty of employee (S1). Preliminary scale table Welfare affecting the loyalty of employee (WF2). Preliminary scale table Working environment affecting the loyalty of employee (W2).
Preliminary scale table Relationship with colleagues affecting the loyalty of employee (RC4. Preliminary scale table Relationship with leaders affecting the loyalty of employee (RL5). Preliminary scale table Loyalty of employee (L6). 52 6 ACRONYMS TPBank Tien Phong Bank ANOVA Analysis Variance KMO Kaiser – Mayer Olkin Sig Observed significance level SPSS Statistical Package for Social Sciences 7 Chapter I: INTRODUCTION 1.
Context and background Today, with the market's escalatingly intense competitive pressure and the rapid advancement of the fourth industrial revolution. Businesses of today must constantly take steps to ensure their continued existence while also coming up with new ideas and innovations on a regular basis to satisfy the market's rising demands. Therefore, every business is aware that having adequate human resources is one of the most important things it can do to increase the effectiveness of its operations, grow sustainably, gain a competitive advantage, and perform better overall. The stability and sustainability of human resources, particularly good human resources, is one of the key elements that must be implemented and maintained.
The previous theories state that one of the key elements in human resource management is the preservation of human resources. At the moment, companies outside the industry are competing fiercely for employees, as well as within companies in the industry. Therefore, one of the factors impeding business growth is the fluctuation of human resources, a real issue that every company in the market must deal with. But when specific measures are taken, having a group of devoted, loyal employees will have a positive effect on assisting businesses in moving forward with their development.
As is well known, Vietnam is now taking further steps toward economic integration with the rest of the world, which has altered the thinking of business managers and helped them to clearly perceive more about the need for human resources; factors such as how to create a working 8 environment, salary and bonus policies, benefits, etc. to retain employees. All businesses, especially service businesses, depend on the involvement of people to operate. The human factor is a major factor in determining a company's success.
Employee retention is thus a challenging issue that human resource managers constantly encounter. In fact, it can be challenging to find the right candidates for the job, and it can be even harder to keep them on board. Whether an employee chooses to leave the company after completing the training process or after gaining experience after a period of employment is one of the hardest problems for employers to solve. Particularly when they look to competitive businesses, the company's direct rivals, and bring in significant clients with them.
This is why, despite ranking among the professions with the highest attraction for young people today, the banking industry is facing many significant challenges that cause employees to want to leave their jobs. These challenges include uncompetitive salary and remuneration, excessive work pressure, and concern over legal risks (Tap chi tai chinh, 2021). Additionally, statistics show that bank staff turnover is on the rise, and that when key employees leave in succession, underground waves will follow due to the domino effect, this is will caused a great problem within the bank. Overall objective The research objective is to analyze the current status of employee loyalty at the Tien Phong Commercial Joint Stock Bank's - Thao Dien Branch (TP Bank) in order to develop solutions to raise employee loyalty at TP Bank over the next two years.
Detailed objective Specifically, the study aims to achieve the following objectives: - Conducting a critical literature review about the concept of loyalty - Analyzing the current status of employee loyalty at Tien Phong Commercial Joint Stock Bank - To propose some solutions to help improve employee loyalty at TP Bank - Thao Dien Branch. The subject and scope of the study 1. The research subject The object of the study: Focus on the employees' loyalty to Tien Phong Commercial Joint Stock Bank. Subject of the study: The subjects of this study are bank employees who work at the TP Bank branch in Thao Dien.
The research scope Spatially The thesis focuses on examining bank employees' loyalty at Tien Phong Commercial Joint Stock Bank – Thao Dien branch. Timely Secondary data: data collected from 2020 to 2021 at Tien Phong Commercial Joint Stock Bank – Thao Dien branch. Research methodology Secondary data In order to evaluate the standing and loyalty of bank employees at TP Bank, the author uses statistical methods, synthesizes, compares, and analyses operational reports and statistical reports of Tien Phong Commercial Joint Stock Bank. Primary data Qualitative research 10 Through the review of theoretical background material, focus group discussions, and interviews with managers and staff members at the TP Bank - Thao Dien branch, the study employed qualitative research methods.
We also conducted interviews with a number of former workers who had left within the previous six months. From there, asses the extent and factorrs affecting the loyalty of bankers. The adjusted statements will be included in the Survey Questionaire – the data collection tool in the official research. Quantitative research The primary research methodology for this study will also be quantitative.
The author will assess the level of loyalty and the factors influencing the loyalty of bank employees after completing the complete scale from the preliminary research process combined with secondary data at the bank. Research findings The study will provide practical information to help the board of directors of Tien Phong Commercial Joint Stock Bank – Thao Dien branch have a deeper understanding and a more realistic view of the status of employee loyalty, they can be aware of the reasons why employees leave the organization. From there, propose solutions and cary out appropriate policy adjustments and reforms to attract and retain significant good human resources who have worked for the bank for a long time. Research structure In addition to the references and related appendices, the topic will be presented in 4 chapters, with chapter summaries as follows: Chapter 1: The introduction, the reason for choosing the topic, context and background.
Chapter 2: A literature review of employee’s loyalty. 11 Chapter 3: Reality of loyalty and factors affecting the loyalty of bankers at Tien Phong Commercial Joint Stock Bank. Chapter 4: Solutions to improve the loyalty of bankers at Tien Phong Commercial Joint Stock Bank. 12 Chapter 2: LITERATURE REVIEW 2.
Basic theories of loyalty Definition Because employee loyalty is so crucial to all human resource management activities in corporate organizations, including public and non-governmental ones, many authors domestically and internationally have shared their thoughts on the subject through journals and published books. In general, the term ―loyalty‖ refers to a person’s devotion or sentiment of attachment to a specific object, which could be another person or group of people, an ideal, a duty, or a cause. It manifests in both thought and action and aims to align the loyal person’s interest with the object of allegiance (Encyclopedia Britannica, 1998). According to (Grosman, 1989) The last few decades have seen an occasional but significant presence of loyalty in the literature on business ethics.
Recent discussion about the changing nature of the employment relationship have sparked a lot of interest in loyalty. He also believed that it’s difficult to define loyalty. It very much depends on who you ask. An employee thinks that the corporate employer’s loyalty guarantees that she will be taken care of.
It denotes an extended commitment on the part of the employer. It implies that he will be paid well if he performs his duties and will work for a long period of time at the company. 13 (Antoncic and Antoncic, 2011) also makes this point that loyalty is the perception that employees have of the company’s future direction and development, which has an effect on day-to-day operations.