LITERATURE REVIEW
Literature review
Employee well-being (EWB) is crucial in today's competitive landscape, as it significantly impacts health, productivity, and performance A strong sense of well-being is essential for employees, as poor well-being can lead to negative outcomes in work performance EWB encompasses not only happiness and life satisfaction but also emotional factors and situational contentment related to work, personal life, and health Ultimately, well-being is about what gives our lives meaning and value, highlighting its importance in fostering a positive work environment.
Well-being is defined as the realization of preferences, measurable through affective and cognitive indicators (2008) Szombathelyi (2012) emphasizes that well-being at work encompasses an individual's physical, mental, and social health However, sustaining employee well-being poses challenges for organizations due to factors like downsizing and restructuring (Kowalski, Loretto & Redman, 2015) Monique Veld & Kerstin Alfes (2017) describe employee well-being as a multidimensional construct reflecting the overall quality of an employee's work experience Researchers highlight two key dimensions: happiness and health, noting potential trade-offs between them Employee well-being extends beyond health, encapsulating the overall quality of work life (Warr, 1987), and is categorized into happiness, health, and relationships (Langove, B Isha, Javaid, 2016) Grant et al (2007) define it as including happiness, health, and relationship-oriented aspects, while Boxall and Macky (2014) differentiate these dimensions by associating happiness with job satisfaction, health with fatigue/stress, and relationships with work-life balance Ultimately, psychological well-being encompasses the mental, physical, emotional, and economic health of employees, influenced by their relationships, decision-making, and available resources.
1.1.2 The factors affecting psychological well-being
According to a study by Kőmíves et al (2020), professional success and recognition are crucial for individual well-being, highlighting the positive influence of work on overall wellness Additionally, research by Krekel, Ward, and De Neve (2019) identifies key factors that affect well-being, including job satisfaction with the organization and levels of employee engagement.
Well-being at work refers to an individual's sense of fulfillment and satisfaction derived from their job, significantly influenced by a stress-free environment and recognition of their efforts According to Warr's (2007) study, there are 12 key components, or "vitamins," that contribute to workplace well-being: control over activities, opportunities to utilize skills, externally derived goals, variety in tasks, clarity of the work environment, interpersonal relationships, income, physical security, collective positioning, supportive management, career advancement opportunities, and equity The right balance and presence of these factors are crucial for fostering a positive sense of well-being among workers.
Maslow's hierarchy of needs, proposed in 1943, categorizes human needs into five levels, illustrating how individuals seek satisfaction at progressively higher tiers The first level encompasses physiological needs, including reasonable working hours and physical comfort, along with opportunities for rest and relaxation The second level focuses on safety needs, emphasizing job and salary security The third level addresses love and belongingness, highlighting the importance of relationships with co-workers, customers, and supervisors The fourth level pertains to esteem needs, where individuals aspire for respect, recognition, promotion, and rewards from their superiors Finally, the fifth level represents the need for self-actualization, reflecting the desire for personal growth, perfection, and the full utilization of one's abilities.
Well-being encompasses various elements that define our identities and aspirations A comprehensive Gallup study conducted across over 150 countries identified five universal and interconnected components of well-being: physical well-being, financial well-being, career well-being, social well-being, and community well-being.
Research by Desmarais & Savoie (2012) identifies five key dimensions of employee well-being: (1) interpersonal relationships at work; (2) a sense of significance in one's role; (3) feelings of competence; (4) recognition and value within the workplace; and (5) a desire for active involvement in work activities.
Interpersonal fit at work refers to the positive relationships individuals experience with colleagues in an organizational setting These relationships are crucial, as highlighted by Marie Jahoda (1982), who noted that they can provide workers with a sense of social purpose However, much of the research has concentrated on the adverse effects of negative interpersonal interactions, which can lead to significant employee dissatisfaction, increased turnover intentions, and detrimental physical and mental health outcomes Studies have shown that experiences such as aggression, social exclusion, and incivility contribute to these negative consequences, underscoring the importance of fostering healthy workplace relationships.
Informal workplace relationships, such as friendships and romances, play a significant role in fostering positive outcomes in the workplace These connections enhance teamwork, communication, and cooperation among coworkers, leading to increased job satisfaction, involvement, and performance Research shows that strong workplace friendships contribute to team cohesion and organizational commitment while reducing turnover intentions Additionally, workplace romances are linked to higher employee happiness and a more positive work atmosphere, underscoring the importance of informal relationships in promoting a healthy work environment.
Positive interpersonal relationships within organizations yield numerous benefits, including enhanced organizational commitment and improved team performance Research by Liden, Wayne, and Sparrowe (2000) highlights that these relationships are crucial for fostering individual behaviors that boost team efficacy and efficiency Furthermore, Kostova and Roth (2003) emphasize that positive interpersonal dynamics correlate with higher job satisfaction and physical health for individuals Overall, the significant advantages for both employees and organizations underscore the necessity of cultivating positive interpersonal relationships in the workplace.
Thriving at work is a positive psychological state where individuals feel both energized and engaged in continuous learning (Porath et al., 2012) According to Spreitzer et al (2005), this state is marked by personal growth, as employees experience vitality and actively acquire and apply knowledge Their theoretical model outlines how individual traits, such as knowledge and positive emotions, along with supportive relationships, job autonomy, and proactive work behaviors, contribute to thriving in the workplace.
The feeling of competency at work encompasses the perception of having the necessary skills to perform job tasks effectively and masterfully Career competencies play a vital role in human capital development, enhancing individuals' self-management abilities in their work and learning experiences to achieve career goals These competencies can be cultivated through education and training and are categorized into three types: know-why competencies, which involve career motivation, values, and identity-related capabilities such as career insight and openness to experience; know-how competencies, which pertain to job-related knowledge and skills; and know-whom competencies, which focus on building a career-related social network through mentoring relationships and both internal and external connections.
According to Xixi Wu (2019), individuals with high career competencies possess enhanced career insights, which encompass realistic career expectations, self-awareness of strengths and weaknesses, and clear career objectives This self-awareness facilitates effective self-observation, enabling individuals to set achievable goals Additionally, strong career-related skills empower individuals to reach their organizational targets, leading to increased opportunities for promotion and expertise, which in turn fosters respect, honor, and self-satisfaction Furthermore, individuals adept at expanding their social networks can communicate effectively on an emotional level, enhancing their perceived fit within the organization and potentially reducing turnover rates.
Recognition at work is essential for employees to feel valued and appreciated for their contributions to the team and the company This sense of acknowledgment becomes even more crucial during periods of organizational growth or change, fostering a sense of security and motivation among employees Recognition can take various forms, not limited to monetary rewards, and may include acknowledging achievements, demonstrating desired behaviors, exceeding expectations, and celebrating milestones like tenure Research by Dewhurst et al (2010) highlights that non-financial rewards, such as managerial praise, opportunities for significant projects, and attention from leadership, can significantly enhance employee performance Furthermore, studies indicate that effective recognition is positively correlated with increased employee productivity, satisfaction, commitment, and reduced turnover rates Organizations can boost motivation and performance by implementing performance-related compensation strategies, as noted by Delaney and Huselid.
According to Shore & Shore (1995), employees who receive job recognition are better equipped to understand their roles, the workplace, and their colleagues This highlights the importance for employers to demonstrate that employee well-being is a priority for the organization and that individual contributions are highly valued Buchanan (1974) supports this perspective, emphasizing that recognizing employees' contributions positively impacts their commitment to the organization and its objectives.
Previous studies
1.2.1 Research model:"Influence of Quality of Work Life towards
Psychological Well-being and Turnover Intention of Nurses and Midwives in Hospital" _Indra et al._2017_ National Public Health Journal
This study involved 72 participants and examined key variables such as quality of work-life, psychological well-being, and turnover intention Quality of work-life was assessed through six indicators: management leadership values, work pressures, autonomy-fulfillment, salary, pride in the organization, and happiness and progress Psychological well-being was evaluated based on self-acceptance, positive relations with others, autonomy, environmental mastery, purpose in life, and personal growth Additionally, turnover intention was measured as a singular indicator reflecting employees' intent to leave their organization.
Figure 1.1 Research model of Influence of Quality of Work Life towards Psychological Well-being and Turnover Intention of Nurses and Midwives in
This study utilized a quantitative correlation design with a cross-sectional approach, conducted at X Hospital Malang in March 2016 Data was collected through questionnaires distributed to all nurses and midwives at the hospital who had been employed for over four months, employing a total sampling method Respondents' distribution was categorized based on measurement criteria: low (1.00-2.33), medium (2.34-3.67), and high (3.68-5.00).
The quality of work-life significantly enhances nurses' psychological well-being and reduces their turnover intention While nurses' psychological well-being has a minor influence on turnover intention, it does not mediate the relationship between quality of work-life and turnover intention Among the indicators of quality of work-life, pride in the organization is the most influential, whereas mastery of the environment is the key indicator for psychological well-being Overall, the quality of work-life plays a crucial role in shaping nurses' turnover intentions, highlighting the importance of focusing on these aspects to improve the work environment for nurses and midwives at X.
To enhance the quality of work-life for nurses and midwives at X Hospital Malang, the human resources department should implement comprehensive human resources policies This can be achieved by establishing clear standard operating procedures (SOPs) that outline job descriptions, reward and punishment systems, and workload calculations, followed by effective SOP socialization These SOPs aim to ensure managerial support, equitable treatment, and alignment of workloads with employee capabilities, while also providing fair compensation Additionally, fostering a positive work environment is crucial for boosting employee engagement and pride in the organization, ultimately leading to a more motivated workforce that enjoys their roles within the hospital.
1.2.2 Research model:“ Employee turnover intention among Millennials: The role of psychological well-being and experienced workplace incivility” _Reny, Abas & Hamzah_2019_ Humanitas Indonesian Psychological Journal
This study utilized a purposive sampling method to recruit participants from employees at a private university in Yogyakarta, focusing on those born between 1984 and 1995, who had access to information technology, and had a minimum work experience of three months in Yogyakarta, Indonesia The sample comprised 46 employees, predominantly male (63.05%) and permanent workers (65.22%), with work experience ranging from three months to ten years, and the majority holding a high school or vocational high school education (84.78%).
Figure 1.2 Research model of Employee turnover intention among
Millennials' psychological well-being significantly influences their experiences of workplace incivility and turnover intentions To assess these factors, a series of validated scales were employed, including the turnover intention scale, psychological well-being scale, and workplace incivility scale, all adapted through a comprehensive five-stage process (Beaton et al., 2000) Specifically, the turnover intention was evaluated using a scale designed by Netemeyer, highlighting the importance of understanding these dynamics in the modern workforce.
Brashear et al (Hur, Kim & Park, 2015) An index of psychological well-being in the work context is assessed using the Psychological Well-being scale by Desmarais
The study conducted by Savoie (2012) utilized five dimensions to assess turnover intention and psychological well-being, employing a Likert scale ranging from 1 (strongly disagree) to 7 (strongly agree) Additionally, workplace incivility was measured through seven items from the Workplace Incivility Scale developed by Cortina et al (2013), with responses collected on a 5-point scale, where 1 indicates "never" and 5 signifies "many times."
This study significantly enhances the understanding of turnover intention among millennial employees, highlighting the crucial role of workplace connections It reveals that experiences of workplace incivility are positively correlated with turnover intention; when millennials frequently encounter incivility, their likelihood of leaving the company increases Conversely, the psychological well-being of these employees is negatively related to their turnover intention; unhappiness at work leads to a greater desire to quit.
This study highlights the importance of fostering a civil workplace environment to reduce employee turnover intentions By cultivating a culture of respect, organizations can encourage open discussions about incivility through initiatives like the CREW (Civility, Respect, and Engagement at Work) process CREW involves structured gatherings that enhance employees' awareness of their working relationships, ultimately helping them connect with colleagues, develop their skills, and feel valued through recognition and rewards This supportive atmosphere can lead to increased engagement and a stronger intention to remain with the organization.
1.2.3 Research model:“ Abusive supervision and turnover intention:
A study published in the *International Journal of Nursing Sciences* by Lyu et al (2019) explored the mediating effects of psychological empowerment among nurses The research involved a cross-sectional survey that assessed perceptions of abusive supervision, psychological empowerment, and turnover intention through questionnaires A total of 1,127 clinical nurses participated in the study, recruited via convenience sampling, providing valuable insights into the relationship between workplace dynamics and nurse retention.
Figure 1.3 Research model of Abusive supervision and turnover intention:
Mediating effects of psychological empowerment of nurses
Measurement: The research instruments used in this study have four components:
(a) demographic information, (b) psychological empowerment scale, (c) abusive supervision scale, and (d) turnover intention scale.
The abusive supervision questionnaire, developed by Tepper, consists of a single dimension with 15 items, utilizing a five-point Likert scale ranging from 1 ("never") to 5 ("often") Meanwhile, the psychological empowerment measure, originally created by Spreitzer and adapted by Li et al for Chinese cultural context, evaluates four key dimensions: self-efficacy, meaningfulness of work, autonomy, and work impact, with three items dedicated to each dimension Responses for this measure also employ a five-point Likert scale, where 1 indicates "completely disagree" and 5 signifies "completely agree."
The scale of turnover intention was developed by Huang and was composed of one dimension with five items in Chinese Responses used a five-point Likert scale
Our research revealed that nurses in China have an average psychological empowerment score of 3.24 ± 0.83, indicating a moderate-to-high level of empowerment While this finding is promising, it highlights the need for further enhancement of psychological empowerment among nurses in the country.
The average perceived abusive supervision score is 1.62 ± 0.95, indicating that such supervision may not be widespread, as it falls below the questionnaire's median This finding could be attributed to the predominance of female nursing leaders in China, who typically prioritize mental acuity and considerateness while actively monitoring their behavior during supervision.
The high turnover intention score of 14.17 ± 3.78 among nurses in China highlights the critical issue of nurse attrition Our research indicates that many nurses are inclined to leave their positions, which may worsen the existing nursing shortage This finding acts as a crucial alert for healthcare organizations, emphasizing the need for targeted strategies to address and manage nurse turnover effectively.
Our study reveals that psychological empowerment plays a crucial mediating role between abusive supervision and nurses' intention to leave their jobs When nursing leaders exhibit an abusive leadership style, it diminishes the psychological empowerment of nurses, which in turn increases their likelihood of considering turnover.
Proposed research model
Interpersonal fit at work involves an organization's commitment to fostering positive relationships with its employees, which enhances loyalty and engagement Research by Liden, Wayne, and Sparrowe (2000) indicates that such relationships are crucial for organizational commitment, while Kostova and Roth (2003) highlight their positive impact on team performance by promoting behaviors that boost efficacy and efficiency The advantages of nurturing positive interpersonal relationships extend to individuals, leading to improved physical health and job satisfaction, as well as to organizations through increased commitment and job performance Additionally, informal relationships, such as friendships and workplace romances, contribute to a collaborative atmosphere, enhancing teamwork and communication, ultimately resulting in a more positive work environment.
H1: Interpersonal fit at work have affects turnover intention
Thriving at work, as defined by Spreitzer et al (2005), is a positive psychological state characterized by vitality and learning, where employees feel intrinsically motivated and supported in their self-development and personal growth This concept builds on earlier research by Nix et al (1999), which highlights vitality as the positive sensation of having available energy and enthusiasm in the workplace.
Thriving at work is defined as the joint experience of vitality and learning, which involves employees feeling that they are acquiring and applying valuable knowledge and skills (Spreitzer et al., 2005) This definition is significant for two reasons: it highlights the interconnectedness of affective and cognitive dimensions of psychological experiences (Eagly & Chaiken, 2005).
1993), and thriving is no exception.Second, on the basis of an understanding of well‐being as a multidi-mensional phenomenon with complementary facets,
Spreitzer et al (2005) highlighted that vitality embodies the hedonic aspect of well-being, characterized by pleasurable experiences, while learning signifies the eudaimonic aspect, which focuses on realizing one's potential (Ryan & Deci, 2001).
H2: Thriving at Work have affects turnover intention
Feeling of Competency at Work: Competence means that you have the ability to do something well You are capable of performing a task or job effectively
Competence is a fundamental psychological need that drives individuals to have a meaningful impact on their environment It encompasses the natural tendency to cultivate skills and abilities, leading to a sense of effectiveness in one’s actions This sense of competence encourages the pursuit of challenging and fulfilling experiences, serving as a vital criterion for psychological growth and overall well-being.
H3: Thriving at Work have affects turnover intention
Employees seek more than just financial compensation; they desire recognition and appreciation from their supervisors This acknowledgment significantly boosts their morale and motivation, leading to a more engaged and productive workforce Recognizing employees' efforts fosters a positive work environment and enhances overall job satisfaction.
(Saunderson, 2004) Recognition means valuing and caring about the employees' contributions It is essential for companies to recognize their employees (McGregor,
Recognizing employees is more effective than providing monetary incentives, as highlighted by various studies (Deci & Ryan, 2000) Employee recognition can take many forms, including both monetary and non-monetary programs (McAdams, 1995) Examples of recognition include featuring employees in company newsletters, issuing letters of commendation, granting extra time off, and offering verbal appreciation Such recognition demonstrates care and appreciation for employees, with non-monetary awards often proving to be more motivating than financial ones Ultimately, this approach helps employees feel valued within the organization.
H4: Perceived Recognition at Work have affects turnover intention
Employee involvement is a multifaceted concept that empowers individuals to engage in managerial decision-making and improvement activities relevant to their roles within the organization According to Kumari and Kumari (2014), this process fosters a sense of ownership among employees, while Price (2004) emphasizes its role in enhancing participation, communication, and decision-making, ultimately contributing to industrial democracy and increased employee motivation By actively involving employees in organizational operations, companies can motivate their workforce and enable them to add significant value to the organization.
Employee involvement, as defined by Zabijakin–Chatleska (2013), refers to the active participation of employees in decision-making and problem-solving processes, which enhances their autonomy in the workplace This concept emphasizes granting employees the authority and responsibility to influence decisions that impact their roles, thereby fostering greater commitment, motivation, and job satisfaction Ultimately, employee involvement is an organizational practice initiated by management to empower employees in contributing to managerial decisions and improvement initiatives, leading to overall organizational development and success.
H5: The desire for Involvement at Work have affects turnover intention
Feeling of Competency at Work
The desire for Involvement at Work
The study "Employee Turnover Intention Among Millennials: The Role of Psychological Well-Being and Experienced Workplace Incivility," along with previous research, identifies key factors influencing employee turnover intentions These factors will be examined through the lens of their definitions and related studies, leading to the formulation of observational variables The research questionnaire will incorporate these variables in the form of targeted questions to effectively assess the impact of psychological well-being and workplace incivility on Millennials' turnover intentions.
This article explores the theoretical concepts of well-being and the intention to quit, emphasizing their interrelationship It reviews studies focused on employee well-being and intentions across various businesses, leading to the development of a research model that evaluates key influencers The proposed model includes variables such as Interpersonal Fit at Work, Thriving at Work, Feeling of Competency at Work, Perceived Recognition at Work, and Desire for Involvement at Work, aligning with the topic's relevance and providing a solid theoretical foundation for further investigation.
Turnover intention being and turnover intention helps the study evaluate the relationship between well- being and turnover intention the most appropriate and accurate.
OVERVIEW OF THE COMPANY
The process of formation and development of the Company
2.1.2.1 Formation process of the company
The Hoa Tho - Dien Ban textile company originated from the Dien Ban garment factory, which was an industrial production unit under the Department of Industry in the former Da Nang province, now known as Quang Nam province.
Established on October 15, 1987, under Decision No 2696/QD-UB by the People's Committee of Quang Nam - Da Nang province, Hoa Tho - Dien Ban Garment Company received approval from relevant authorities, including the Ministry of Industry The company's board of directors invested in factory construction, machinery, and equipment, as well as conducted market research, leading to the official commencement of manufacturing operations in 1989.
In 1992, the company was founded as a state-owned enterprise in accordance with Decree No 388/CP, following Decision No 3499/QD-UB issued by the People's Committee of Quang Nam - Da Nang province on December 25, 1992, focusing on the garment industry.
In October 1999, a pharmaceutical company merged into the Vietnam National Textile and Garment Corporation following Decision No 54/1999/QD-BCN issued by the Ministry of Industry on August 20, 1999, which included its subsidiary, Vietnamese Garment in Da Nang By August 2001, the company transitioned to Hoa Tho Textile and Garment Corporation under the Vietnam Garment Corporation, operating independently with its own business methods and seal, as per Decision No 554/QD-TCHC dated August 24, 2001.
In February 2007, Hoa Tho Textile and Garment Corporation transitioned to a joint stock model, becoming Hoa Tho Textile and Garment Joint Stock Corporation As part of this restructuring, Hoa Tho - Dien Ban Garment Company was established as a subsidiary under the new corporation, following Decision No 554/QD-TCHC issued by the Vietnam Textile and Garment Corporation on August 24, 2001.
Hoa Tho - Dien Ban Garment Company was invested in and built-in October
Founded in 1987, the company operates on a 12,000 m² site in Viem Tay village, Dien Thang Bac commune, Dien Ban district, Quang Nam province, utilizing four advanced sewing technology lines By April 1989, the company commenced production of various garments, including shirts, catering primarily to the former Soviet Union and the German People's Republic, as part of the Protocol 19/5 agreement between Vietnam and the Soviet Union.
In response to the shifting global political landscape, particularly following the collapse of the Soviet Union and changes in Eastern Europe, Hoa Tho - Dien Ban Garment Company faced significant challenges The company needed to source new materials and adapt its production to meet the diverse design and higher quality demands of new customers, while also improving delivery schedules To thrive in this evolving market, Hoa Tho had to invest in
In recent years, Hoa Tho Textile and Garment Joint Stock Corporation has faced significant challenges due to intense market competition and rising customer expectations for technological and production management improvements However, through the dedication of its employees and strategic investments, the company has successfully navigated these difficulties By expanding its technological capabilities from 4 to 8 production lines and now boasting 17 sewing lines, Hoa Tho has enhanced its ability to fulfill large orders while maintaining high-quality standards The company continually invests in advanced training for its workforce, ensuring that they possess the necessary skills to support its business growth and adapt to the evolving market landscape.
In 2005, the equitization of Hoa Tho Textile and Garment Corporation led to the transformation of Hoa Tho Garment Company - Dien Ban into a medium-sized enterprise Currently, the company operates 30 production lines, showcasing its capacity for garment production.
Business products
- Types of yarn: Carded, combed Cotton yarn, T/C yarn, Polyester yarn (Number Ne20 - Ne45)
- Garment products: All kinds of trousers, anti-wrinkle pants, vests, jackets, knitted shirts, workwear,
Exported products: All kinds of trousers, anti-wrinkle pants, vests, jackets, knitted shirts, workwear,
Fashion products: Merriman brand includes: trousers of all kinds, T-shirts, shirts,
Current human resource situation
In today's integration landscape, human resources play a crucial role in establishing a sustainable competitive advantage for companies They significantly impact business operations, ultimately determining the success of the entire production process.
Table 2.1: Structure of labor force by sex Target
The company's labor structure reveals a predominance of female employees, which is characteristic of the garment industry Additionally, there has been a notable increase in both male and female staff within the organization.
Between 2019 and 2021, it is essential for companies, given that the majority of their workforce is female, to establish preferential treatment and welfare policies aimed at supporting female employees By doing so, organizations can enhance job performance and create a more productive work environment.
Table 2.2: Structure of employees by nature of work
The year 2019 The year 2020 The year 2021
The labor structure at the company reveals that direct labor, primarily comprising garment workers, constitutes nearly 86% of the workforce, with cutting and finishing workers following closely Indirect labor remains a smaller segment, largely consisting of KCS staff responsible for quality inspections of input materials and both semi-finished and finished products, adhering to the stringent quality standards demanded by foreign customers and the ISO 9001:2008 management standards Additionally, technical staff represent about 25% of the indirect workforce, highlighting the growing emphasis on quality assurance and technical expertise within the company.
Table 2.3 Company's labor structure by education level
Education The year 2019 The year 2020 The year 2021 level Quality Ratio
The company's labor structure reveals that the majority of its workforce consists of unskilled labor, typical of the garment industry Skilled workers also play a role, but those with university, college, or intermediate education represent a small fraction of the total workforce This limited number is primarily due to their roles in administrative, technical, and management departments, where they fulfill essential functions and tasks within the organization.
The labor structure analysis reveals a gradual increase in employee educational levels over the years, though the overall number of qualified staff has not seen significant growth This stagnation is largely attributed to job demand and productivity requirements As production escalates, the company seeks to hire more skilled employees, while the nature of the work necessitates ongoing training for current staff to enhance their qualifications and meet job demands effectively.
Company structure
Figure 2.1 Company organization chart 2.4.2 Functions and duties of each department:
The director of Hoa Tho Textile and Garment Joint-Stock Company serves as the head of the organization and represents both the state and the company's legal entity This role entails legal accountability for all business operations, political security, employee welfare, and external relations Additionally, the director directly manages and oversees all production and business activities, ensuring the company's performance aligns with corporate objectives.
The Vice Director plays a crucial role in managing the company alongside the Director, providing strategic advice on both management and business operations This position involves direct supervision of various departmental activities and accountability to the Director for overall performance.
The Administration Department, led by the company's Director, focuses on enhancing the management structure and developing organizational models Key responsibilities include recruiting and training staff, overseeing employee recognition programs, and executing the Director's directives regarding internal and external procedures Additionally, the department manages the company's administrative functions, organizes and archives official documents, policies, and employee records, while also ensuring compliance with safety regulations for all workers.
The Financial Accounting Department plays a crucial role in advising the Director on the effective implementation of policies in accordance with established principles and laws It is responsible for closely monitoring all revenue and expenditure activities within the company, preparing financial statements in compliance with state regulations, and ensuring proper management and utilization of company assets Additionally, the department handles cost accounting and reports on the company's operational results.
The Technical Department is crucial for designing and evaluating technical standards for goods received under contracts, ensuring safety and quality assurance As a company focused on exporting, we often rely on outsourcing for product designs, making it essential for the technical team to maintain and guide workers in adhering to these templates Additionally, the department is responsible for monitoring and verifying that the product implementation process meets the requirements set by our partners.
The Planning Department plays a crucial role in advising the Director on the company's production and business strategies, including expansion and development plans Additionally, it is responsible for identifying potential market partners, negotiating and signing economic contracts, and managing customer agreements and other service-related activities.
The cutting workshop is tasked with fabricating product parts according to established standards The workshop manager oversees production processes and directly reports to the Director regarding the division's production status.
Garment workshop: Carrying out the assembly of different parts of the product into the finished product.
Completes workshop: Check the quality of manufactured products and put qualified products into a warehouse for finished products.
The KCS workshop plays a crucial role in ensuring product quality by directly inspecting input materials, semi-finished, and finished products The KCS team's primary responsibility is to assess product quality and eliminate any items that fail to meet established standards, thereby enhancing the manufacturing company's reputation for excellence Additionally, the KCS team provides valuable advice to the technical department on quality assurance and production code design, further contributing to overall product integrity.
Electromechanical workshop: Responsible for providing regular, stable, and safe power for the entire company, repairing and overcoming electrical problems occurring during the company's production process.
The operating status of the company
1 Revenue from selling goods and providing services
3 Net sales and service provision (10
5 Gross profit from sales and service provision (20
10 Net profit from business activities
14 Total accounting profit before tax (50
17 Profit after corporate income tax (60 = 50 - 51 -
The company's production and business activities have experienced significant fluctuations, particularly during the two years of the Covid pandemic, leading to instability and decreased profits In 2021, the impact of the Covid-19 epidemic caused a sharp decline in production and business results.
In terms of revenue: if in 2019 sales revenue is 236.110.253.692 VND, by
In 2020, the company's revenue was 234,474,837,894 VND, reflecting a decrease of 0.7% compared to 2019, primarily due to the impact of the epidemic, which resulted in fewer export orders and a focus on domestic consumption However, in 2021, revenue rose to 238,681,926,797 VND, marking an increase of 1.8% from the previous year as the economic situation stabilized and export orders began to recover.
From 2019 to 2021, the company experienced a gradual decline in interest expenses In 2020, other expenses significantly decreased compared to 2019, while in 2021, these expenses rose due to the garment industry's recovery following the pandemic.
About profit: From 2019 to 2020, profit after tax tends to increase, in 2020 compared to 2019 the company's profit increased by 19%, and in 2021 compared to
In 2020, the company's profit plummeted by 52.7%, indicating that it has yet to regain stable production levels following the impact of the Covid-19 pandemic This decline highlights ongoing challenges in the company's operational and business performance compared to previous years.
2021 decline sharply is that almost 80% of workers are infected with the Covid-19 epidemic, delaying the company's production and business process.
Policy for employees Working
Work regime: The Corporation implements a working regime of 6 days/week and
The standard working hours are 8 hours per day, but the Factory or Company may adjust these hours or require overtime based on operational needs, provided that all changes adhere to Labor Law regulations.
Leaves, holidays, and Tet: Employees are entitled to leave, holidays, and New
Year according to the regulations of the State
Working conditions: The Corporation is fully equipped with tools and protective equipment, complying with standards and safety requirements in the process of working and production
The salary policy is implemented in accordance with state regulations on salaries and bonuses The General Director assigns salary unit prices based on revenue to various units and delegates the responsibility to the Chief of Office and Directors to develop plans for product salaries, package salaries, and job grade coefficients These plans include evaluations of employee performance and task completion for the month, categorized into types A, B, C, etc This framework serves as the basis for monthly salary payments and bonuses to employees, in line with the approved salary payment plan of each unit.
- Allotment of salary fund on the profits of the Company/Factory for the Board of Directors and in charge of accounting for the Company/Factory
Wages for waiting for work are determined in situations caused by objective conditions, force majeure, or power failures Employees must be granted a leave of absence and compensated for waiting in accordance with Article 62 of the Labor Code, ensuring that the payment is not less than the current minimum wage set by the State.
Bonuses at Hoa Tho Corp are based on the corporation's production and business performance, with a guaranteed minimum of one month's average salary per year The company ensures full compliance with state regulations by providing social insurance, health insurance, and unemployment insurance for its employees, along with 24/7 risk insurance coverage.
Policy on recruitment and training:
The Corporation follows a structured recruitment process to select new personnel, ensuring that candidates possess the necessary qualifications, skills, and experience for their roles, along with strong ethical standards This commitment to hiring individuals with good moral character fosters long-term loyalty to the Corporation.
The Corporation prioritizes the professional development of its employees by providing comprehensive training to ensure they possess the necessary skills to excel in their roles Training sessions, both conducted internally and through external courses, are organized in accordance with the Corporation's annual training plan.
The Corporation actively promotes continuous professional development by encouraging its officers and employees to participate in external training courses outside of working hours Those selected for training or skill enhancement are entitled to receive their full salary along with coverage for study-related expenses, ensuring that learning opportunities are accessible and financially supported.
Employees of the Corporation engage in self-directed study to enhance their qualifications by pursuing courses approved by the General Director, outside of regular office hours Upon successful completion of these courses, employees who submit valid diplomas and certificates will receive full reimbursement of their tuition fees.
The Corporation offers financial support for tuition fees and related educational expenses; however, if an employee changes jobs or resigns, they are required to reimburse 100% of the funds spent by the Corporation on their education This repayment obligation does not apply to employees who have been with the Corporation for over five years from the date of their certification.
The occupational safety policy is a crucial aspect of the Corporation, emphasizing the importance of comprehensive safety training for workers prior to employment It ensures that protective gear, including clothing and helmets, is provided promptly and appropriately based on job requirements Additionally, the Corporation establishes regulations for labor safety and environmental sanitation, conducting regular checks and evaluations to maintain high standards of occupational safety within the Company and Factory.
Employees of the Corporation who have passed away are eligible for benefits in accordance with both State regulations and Corporation policies.
Employees who have been with the company for less than 3 years will receive a visit valued at 2,000,000 VND, including wreaths and lamps Those who have served between 3 to 10 years will be honored with a visit worth 3,000,000 VND, along with garlands and incense lamps Employees with 10 or more years of service will be recognized with a visit totaling 5,000,000 VND, also featuring wreaths and lamps.
- Retired employees die: The Corporation pays 500,000 VND, for wreaths and candles
The Corporation has provided compensation of 500,000 VND and incense sticks to the families of four deceased employees, including parents, wives, husbands, and laborers In cases where two or more employees from the same family have passed away while working for the Corporation, the compensation increases to 1,000,000 VND along with incense sticks.
- In some special cases or relationships, expenses must be higher than the amount specified above The Corporation's Office specifically proposes to the Corporation's leaders to consider and resolve accordingly
Wedding: Employees working at the Corporation organize weddings, the
Corporation gives gifts with the following levels:
- Working for less than 01 years, the Corporation gives gifts of VND 500,000/person; 01 years to less than 03 years gift 700,000 VND/person; Over 3 years, the gift is VND 1,000,000/person
Upon retirement, employees of the Corporation receive a gift of VND 2,000,000 each For managers, specifically those at the level of production group leaders or higher, the Corporation's Office will recommend a tailored gift amount based on individual circumstances for the leaders' approval and final decision.
The Corporation prioritizes employee welfare by providing essential uniform fabrics, offering two shirts per year To enhance the quality of life, it ensures mid-shift meals are priced at 20,000 VND each and breakfast at 10,000 VND Additionally, in response to rising costs, employees receive dinner support of 12,000 VND per person per day The Corporation also promotes Hoa Tho Supermarket, catering to employees' needs for affordable and quality food and necessities, ensuring the well-being of their families after work while maintaining high standards of food safety.
Reality leaves the job
Table 2.5 Reality leave job of the company Number of workers leaving
In 2019, Hoa Tho - Dien Ban Textile and Garment experienced a workforce turnover of 184 employees, representing 11.18% of its total staff The situation worsened in 2020 due to the complexities of the Covid-19 pandemic, leading to a significant increase in departures to 256 workers, or 15.13% of the workforce As the economy began to recover, the garment industry saw a resurgence in labor demand; however, prolonged pandemic challenges resulted in many workers remaining unable to return, with a notable number considering resignation Consequently, in 2021, the company recorded 197 departures, equating to 11.76% of its workforce.
From there, the following highlights can be realized:
Being a large garment manufacturing company.
Specialists in the production of high-quality garments.
Fabrics are imported from different sources.
Affected by the economic crisis, the covid epidemic reduced orders, workers quit their jobs.
Under pressure on price when negotiating with customers.
-> companies and employees are under increasing pressure on sales.
-> The health and attachment to the company of employees are increasingly declining.
-> There is a phenomenon of employees quitting their jobs and leaving the company.
-> the risk of competitors manipulating personnel.
- Employees are under excessive and continuous revenue pressure for a long time, leading to stress.
- Due to the company's policy of saving and compensating for losses during the crisis period, the remuneration and salaries of employees are not suitable and low.
- There is a situation of disputes and quarrels between levels in the garment factory
- Rest, activities to compensate and re-employment have not been given due importance.
The relationships among employees at the Hoa Tho textile company in the Dien Bàn branch reveal significant dissatisfaction, particularly between workers and their superiors Frequent reprimands for minor issues such as tardiness or taking breaks contribute to a tense atmosphere Additionally, workers often engage in negative comparisons regarding salaries, fostering disunity within the organization The ongoing bullying of new employees by seasoned workers creates a hostile environment, leading many newcomers to feel disrespected and consider quitting their jobs.
To enhance employee skills and promote professional development, the company has conducted surveys to identify training needs and organized skill-building sessions led by its technical department Additionally, a sewing contest has been established to foster a competitive spirit and encourage workers to strive for excellence in their craft.
Feelings of self-efficacy: Many workers feel that working hours are too much, sometimes overtime they are not healthy enough to meet the work
The company actively promotes workplace recognition through production competitions and sewing contests to honor employee achievements and facilitate promotions Additionally, an annual assessment is conducted to award the title of best worker Despite these efforts, some highly qualified employees remain unrecognized and underutilized.
The company holds worker meetings to encourage employee input, but many workers hesitate to share their true opinions due to fears of being ignored or facing repercussions, including termination This reluctance is exacerbated by concerns over job security, particularly regarding the quality of lunch provided Although employees have the right to adapt their work methods for efficiency, they often refrain from doing so out of fear of reprimand or dismissal, leading to a stifled environment where genuine feedback is scarce.
This chapter provides a comprehensive overview of the company's history, development, organizational structure, and product offerings It also highlights the company's growth activities and examines employee welfare programs, along with recent statistics on workforce turnover, underscoring the relevance of the topic.
RESEARCH METHODOLOGY
Research process
4.2 Analysis describing age group factors 58
4.3 Analysis describes the education factor 59
4.4 Analysis describing the group of seniority factors 60
4.5 Analysis describing the group of income per month 61
INTRODUCTION Reasons for choosing a research topic
Vietnam's textile and garment industry has significantly developed over the years, becoming a crucial contributor to the nation's economic growth It stands out among export industries, achieving a high export turnover that represents 12%-16% of the country's total exports This sector employs over 20% of the industrial workforce and nearly 5% of the national labor force, providing jobs for more than 3 million workers nationwide.
The Vietnamese economy has embarked on a new journey of openness and integration, presenting both opportunities and challenges for businesses To thrive in this competitive landscape, companies must enhance their competitiveness, with human resources playing a crucial role It is essential to maintain a sufficient number of skilled employees to meet industry demands However, the textile and garment sector faces significant personnel turnover due to factors such as low wages, long hours, and high pressure Despite government initiatives aimed at developing human resources in this industry, the outcomes have not lived up to expectations, falling short of the market's potential and needs.
Since 2015, approximately 14% of production staff in the textile and garment industry have left their jobs annually, often moving to competitors or entirely different fields Mr Le Tien Truong, Chairman of Vinatex, noted that the COVID-19 outbreak in June severely impacted production, with over 40,000 workers temporarily quitting in just one month, primarily in the southern region In Thanh Hoa, over 200 garment factories are operating at only 60-70% of their design capacity, indicating a high demand for labor recruitment Mr Than Duc Viet, General Director of Garment 10 Corporation, reported that while they recruited about 10% more employees by the end of Q1 2021, the number of employees leaving also increased, highlighting ongoing challenges in workforce stability amid factory expansions.
10 wishes to recruit 3,000 - 5,000 more workers, but this is difficult to do in the current context.
Garment and textile enterprises across Vietnam, including those in the Central region, are grappling with a significant labor shortage, similar to their counterparts in the North and South For instance, Hoa Tho Textile and Garment Company recently advertised hundreds of job openings shortly after the Lunar New Year, highlighting the considerable layoffs within the industry Additionally, companies like Garment 10, Garment 29/3, and Rieker have also reported a high number of job vacancies, reflecting the ongoing challenges posed by the Covid-19 epidemic.
The Covid-19 pandemic has triggered a global economic crisis, resulting in challenges such as decreased orders and price pressures that have severely impacted the production and business operations of companies This has led to a significant shift in labor from the garment industry to other manufacturing and service sectors that offer more appealing working conditions and higher income Consequently, Hoa Tho Garment Company faces the pressing challenge of proactively sourcing a sufficient number of skilled and experienced workers to maintain efficiency and mastery in their production processes.
Hoa Tho Textile and Garment Joint Stock Corporation, Dien Ban branch, acknowledges the critical role of human resources and labor in driving enterprise growth The company actively invests in employee welfare and development initiatives, focusing on enhancing skills and knowledge while fostering teamwork This commitment promotes a proactive and creative work environment, as evidenced by ongoing observation and monitoring of staff performance.
Recognizing existing limitations, the leaders of Hoa Tho Textile and Garment Corporation's Dien Ban branch have inspired a research topic focused on the relationship between psychological well-being and turnover intention of direct labor This case study aims to provide valuable insights for the corporation's leaders, enabling them to develop effective strategies to mitigate human resource shortages and reduce worker turnover intentions.
Determining the factors affecting the psychological well-being and turnover intention of direct labor.
To test the influence of factors on the relationship between psychological well- being and turnover intention of the direct labor.
Proposing solutions to retain employees at Hoa Tho Dien Ban garment company.
What is the current state of a layoff?
What factors influence the relationship between psychological well-being and turnover intentions?
How do employee benefits affect garment workers' intention to leave?
What solutions can be used to overcome the intention of leaving direct labor ?
This study explores the factors influencing the relationship between psychological well-being and turnover intention among direct laborers at Hoa Tho Garment Company, specifically at the Dien Ban branch It focuses on understanding how various aspects of psychological well-being impact workers' intentions to leave their jobs, providing valuable insights for improving employee retention in the garment industry.
The scope of the study includes three elements:
This study investigates the factors influencing the relationship between psychological well-being and turnover intention among direct labor employees at the Hoa Tho garment company, specifically in the Dien Ban branch.
+ About space: The survey was carried out at the branch of Hoa Tho Textile and Garment Corporation - Hoa Tho Garment Company Dien Ban.
+ About time: The research period is from March 10, 2022, to May 14, 2022.
The study employs a quantitative research approach, utilizing a carefully designed questionnaire based on theoretical foundations to survey employees at a garment company This method allows for the verification of scales and assessment of influence levels, with data analyzed using SPSS software derived from the survey responses.
CHAPTER 1: LITERATURE REVIEW 1.1 Literature review
Employee well-being (EWB) is crucial in today's competitive landscape, as it directly impacts health, productivity, and performance A strong sense of well-being is essential for employees, with evidence showing that poor well-being can lead to negative outcomes in the workplace EWB encompasses not only happiness and life satisfaction but also emotional factors and situational contentment in areas such as work, personal life, and health Ultimately, well-being is tied to the meaningful aspects of life that contribute to an individual's sense of value and fulfillment.
Well-being is defined as the realization of preferences, measurable through affective and cognitive metrics (2008) Szombathelyi (2012) emphasizes that workplace well-being encompasses an individual's physical, mental, and social health Maintaining employee well-being has become increasingly challenging for organizations due to factors like downsizing and restructuring (Kowalski, Loretto & Redman, 2015) According to Veld & Alfes (2017), employee well-being is a multidimensional construct reflecting the overall quality of an employee's work experience Research highlights two key aspects of well-being: happiness and health, suggesting potential trade-offs between them Employee well-being extends beyond mere health, encompassing the quality of experiences and functioning at work (Warr, 1987) It is typically categorized into three dimensions: happiness, health, and relationships (Langove, B Isha, Javaid, 2016) Grant et al (2007) describe well-being as integrating happiness, health, and relationship elements, while Boxall and Macky (2014) differentiate these aspects into global job satisfaction, stress and fatigue, and work-life balance Ultimately, psychological well-being represents the holistic mental, physical, emotional, and economic health of employees, influenced by their relationships, decision-making, and available resources.
1.1.2 The factors affecting psychological well-being
According to Kőmíves et al (2020), professional success and recognition are crucial for individual well-being, highlighting the positive influence of work on overall wellness Various factors determine the specific type of well-being impacted, while Krekel, Ward, and De Neve (2019) identified organizational satisfaction and employee engagement as key contributors to well-being in the workplace.
Well-being at work refers to an individual's positive feelings derived from their job, significantly influenced by a stress-free environment and recognition of their contributions According to Warr's (2007) study, well-being encompasses both emotional engagement and satisfaction with labor values, supported by 12 key environmental factors These factors, termed "vitamins," include control over activities, opportunities to utilize skills, external goal alignment, variety in tasks, clarity in the work environment, interpersonal relationships, income, physical security, collective status, supportive management, career advancement, and equity The right balance and presence of these elements are crucial for enhancing overall well-being at work.
Maslow's hierarchy of needs theory, proposed in 1943, categorizes human needs into five levels, emphasizing that individuals strive for higher satisfaction once a lower level is fulfilled The first level encompasses physiological needs, including reasonable working hours and physical comfort The second level focuses on safety needs, such as job and salary security The third level addresses love and belongingness needs, highlighting the importance of relationships with co-workers, customers, and supervisors The fourth level pertains to esteem needs, where individuals seek respect, recognition, and rewards from their superiors Finally, the highest level is self-actualization, which involves the pursuit of personal growth, perfection, and the full utilization of one's abilities.
Research methodology
Quantitative research methods prioritize objective measurements and involve the statistical, mathematical, or numerical analysis of data obtained through polls, questionnaires, and surveys, as well as the manipulation of existing statistical data using computational techniques This approach aims to collect numerical data to generalize findings across groups or to explain specific phenomena The final report typically follows a structured format that includes an introduction, literature review, theoretical framework, methodology, results, and discussion The focus of this particular survey is on direct labor.
Quantitative research emphasizes the use of numbers and logic, adopting an objective perspective It prioritizes stable, numeric data and employs detailed, convergent reasoning, contrasting with divergent reasoning, which involves generating a wide range of ideas about a research problem in a more spontaneous manner Key characteristics of quantitative research include its focus on measurable data and systematic analysis.
The data is usually gathered using structured research instruments.
The results are based on larger sample sizes that are representative of the population.
The research study can usually be replicated or repeated, given its high reliability.
The researcher has a clearly defined research question to which objective answers are sought.
All aspects of the study are carefully designed before data is collected.
Data are in the form of numbers and statistics, often arranged in tables, charts, figures, or other non-textual forms.
The project can be used to generalize concepts more widely, predict future results, or investigate causal relationships.
The researcher uses tools, such as questionnaires or computer software, to collect numerical data.
The overarching aim of a quantitative research study is to classify features, count them, and construct statistical models in an attempt to explain what is observed.
In this study, quantitative research is using Likert that: 1=Totaly disagree, 2 Disagree, 3= Neutral, 4= Agree, 5= Totaly agree
According to the study by Hair et al (1998), the minimum sample size for research involving factor analysis should be five times the total number of observed variables, as supported by Comrey (1973) and Roger (2006) This translates to the formula n = 5*m, where 'm' represents the number of questions in the lesson.
Hair et al (2014) suggest that the ideal ratio of observations to an analytic variable is typically 5:1 or 10:1, while some researchers advocate for a ratio of 20:1 This "number of observations" refers to the necessary quantity of valid questionnaires needed for reliable analysis.
"Measurement variable" is a measurement question in the survey
This study utilizes 30 questions based on a 5-point Likert scale, corresponding to 30 observed variables across various factors To achieve statistical significance, a sample size of at least 300 participants is deemed necessary, following a 10:1 ratio of respondents to variables This ensures the accuracy and relevance of the findings in the context of the research.
Table 3.1 The scale of Interpersonal Fit at Work
Interpersonal Fit at Work Variable name
IFW1 I value the people I work with Desmarais & Savoie (2012)
IFW2 I enjoy working with the people at my job Desmarais & Savoie (2012)
IFW3 I get along well with the people at my job Desmarais & Savoie (2012)
IFW4 I have a relationship of trust with the people at my job.
IFW5 I feel that I am accepted as I am by the people I work with.
Table 3.2 The scale of Thriving at Work
Thriving at Work Variable name
TW1 I find my job exciting Desmarais & Savoie (2012)
TW2 I like my job Desmarais & Savoie (2012)
TW3 I am proud of the job I have Desmarais & Savoie (2012)
TW4 I find meaning in my work Desmarais & Savoie (2012)
TW5 I have a great sense of fulfillment at work Desmarais & Savoie (2012)
Table 3.3 The scale of Feeling of Competency at Work
Feeling of Competency at Work Variable name
FCW1 I know I am capable of doing my job Desmarais & Savoie (2012)
FCW2 I feel confident at work Desmarais & Savoie (2012)
FCW3 I feel effective and competent in my work Desmarais & Savoie (2012)
FCW4 I feel that I know what to do in my job Desmarais & Savoie (2012)
FCW5 I know my value as a worker Desmarais & Savoie (2012)
Table 3.4 The scale of Perceived Recognition at Work
Perceived Recognition at Work Variable name
PRW1 I feel that my work is recognized Desmarais & Savoie (2012)
PRW2 I feel that my work efforts are appreciated Desmarais & Savoie (2012)
PRW3 I know that people believe in the projects I work on
PRW4 I feel that the people I work with recognize my abilities
PRW5 I feel that I am a full member of my organization.
Table 3.5 The scale of Desire for Involvement at Work
The desire for Involvement at Work Variable name
DIW1 I want to take initiative in my work Desmarais & Savoie (2012)
DIW2 I care about the good functioning of my organization
DIW3 I like to take on challenges in my work Desmarais & Savoie (2012)
DIW4 I want to contribute to achieving the goals of my organization
DIW5 I want to be involved in my organization beyond my work duties.
Table 3.6 The scale of Turnover intention
TOI1 Should opportunity present itself for me, i will still want to remain in my profession and organisation
TOI2 I feel i am comfortable in my current job and profession
TOI3 I can't quit my job and this profession Dotun Olaleye Faloye
TOI4 I’d like to work in this organization until I reach retirement age.
TOI5 I plan to stay in this organization to develop my career for a long time
Khawaja, Abu Bakar, and Anwar (2015)
This study investigates the relationship between employee well-being and turnover intention, focusing on the Hoa Tho Textile and Garment Joint Stock Company in Dien Ban Utilizing insights from previous research, a survey questionnaire was developed to gather data for this analysis.
The questionnaire has 3 parts: (see the appendix)
Data analysis method
Descriptive statistics is a crucial technique for researchers, allowing them to summarize the characteristics of their research samples and survey results Its primary goal is to provide an overview of the samples and measurements within a study In conjunction with graphical analysis, descriptive statistics play an essential role in nearly all quantitative data analysis.
This tool assesses the reliability and quality of observed variables within a parent factor (Factor A) by measuring the correlation among them It identifies which observed variables effectively contribute to the concept being measured and which do not A strong Cronbach Alpha indicates that the selected observed variables accurately reflect the characteristics of the parent factor, confirming the robustness of the scale used for evaluation.
Criteria in testing reliability of Cronbach's Alpha scale
- If a measurement variable has a correlation coefficient of the total variable Corrected Item - Total Correlation ≥ 0.3, then that variable meets the requirements
(Source: Nunnally, J (1978), Psychometric Theory, New York, McGraw-Hill)
0.7 > α >= 0.6 : The factor scale is acceptable with new studies
0.6 > α >= 0.5: The factor scale is inappropriate
0.5 > α: The factor scale is not suitable
Cronbach's Alpha coefficient if the variable is excluded (Cronbach's coefficient)
Alpha if Item Deleted): if the value Cronbach's Alpha If Item Deleted > Cronbach's Alpha, that variable will be removed from the evaluation factor.
Exploratory Factor Analysis (EFA) is a statistical technique employed to condense a large set of observed variables into a smaller number of significant factors, where the number of factors (F) is less than the number of variables (k) Researchers frequently gather numerous correlated variables, and EFA helps in identifying underlying relationships among them, facilitating a more streamlined analysis.
Criteria in EFA exploratory factor analysis:
The KMO coefficient, or Kaiser-Meyer-Olkin index, assesses the suitability of factor analysis, requiring a minimum value of 0.5 for appropriateness A KMO value between 0.5 and 1 indicates that factor analysis can be effectively applied to the data.
If this value is less than 0.5, then factor analysis is likely not suitable for the research data set
Bartlett's test of sphericity is a statistical method utilized to determine the correlation among observed variables within a factor A significance level (p-value) of less than 0.05 indicates that the observed variables are indeed correlated, confirming the suitability of the data for factor analysis.
- Eigenvalue is a commonly used criterion to determine the number of factors in EFA analysis Only factors with Eigenvalue ≥ 1 are kept in the analytical model with this criterion.
A Total Variance Explained of 50% or more indicates that the Exploratory Factor Analysis (EFA) model is appropriate This percentage reflects the extent to which the extracted factors capture the total variation, highlighting the proportion of observed variables that are retained versus those that are lost.
Factor loading, or factor weight, indicates the correlation between an observed variable and a factor; a higher factor loading coefficient signifies a stronger correlation According to Hair et al (2009), understanding these relationships is crucial in multivariate data analysis.
Factor Loading at ±0.3: Minimum condition for the observed variable to be retained.
Factor Loading at ±0.5: The observed variable has good statistical significance. Factor Loading at ± 0.7: The observed variable has very good statistical significance.
Multiple Linear Regression is an advanced form of simple linear regression, utilized to forecast the value of a dependent variable based on two or more independent variables The dependent variable, often referred to as the outcome or criterion variable, is influenced by changes in the independent variables, allowing for an analysis of the degree of dependence between them.
Index significance in Multiple Linear Regression
Adjusted R Square (R²) values indicate how much independent variables influence the dependent variable, ranging from 0 to 1 A value closer to 1 signifies a strong model, while a value near 0 indicates a weak model Specifically, values between 0.5 and 1 suggest a good model, whereas values below 0.5 indicate a poor model with little to no significance.
The Durbin-Watson (DW) statistic is used to detect first-order autocorrelation in a time series Its values range from 0 to 4, with a value near 2 indicating no correlation between adjacent errors A DW value close to 4 suggests negative correlation, while a value near 0 indicates positive correlation Notably, DW values below 1 or above 3 signify a strong likelihood of first-order autocorrelation.
Sig value of the F test has the effect of testing the fit of the regression model.
In the ANOVA table, if the Sig < 0.05 => Multiple linear regression model and suitable data set (and vice versa).
Sig value of the t-test is used to test the significance of the regression coefficients If Sig The independent variable has an impact on the dependent variable.
The Variance Inflation Factor (VIF) is a critical tool for detecting multicollinearity among independent variables in a regression analysis A VIF value greater than 10 indicates significant multicollinearity, as noted by Hoang Trong and Chu Nguyen Mong Ngoc (2005) In practical applications, a VIF threshold of 2 is often used; if the VIF is less than 2, it suggests that multicollinearity is not present among the independent variables.
The standardized regression coefficient Beta indicates the influence of independent variables on the dependent variable, with the variable having the largest Beta exerting the most significant impact A negative Beta coefficient signifies a negative relationship, while a positive Beta indicates a positive relationship When comparing the strength of influence among variables, the absolute value of the Beta coefficient is taken into account.
The regression equation has the form:
X ki : the value of the influencing criterion (cause).
Y: The adjusted value of the affected criterion (result) about x.
Based on prior studies and research rationale, a quantitative questionnaire featuring 30 observed variables was developed, utilizing a Likert scale ranging from 1 (strongly disagree) to 5 (strongly agree) These variables are specifically tailored for surveying employees within the company The minimum sample size for the survey targeting workers at the Hoa Tho-Dien Ban branch is set at 300 respondents.
