(LUẬN văn THẠC sĩ) factors affecting job satisfaction, a comparison between state owned and non state owned enterprises in vietnam

INTRODUCTION

Background

In 1986, Vietnam initiated significant economic reforms to transition from a command economy to a market-oriented system, incorporating structural changes and open-door policies as key components of its economic strategy (World Bank, 1999) These reforms led to substantial improvements in the economy and living standards for the Vietnamese people, achieving an impressive average GDP growth rate of over 7% during the 1990s and early 2000s, with a remarkable peak of over 8% in 2006, positioning Vietnam among the fastest-growing economies globally (World Bank, 2006).

In the context of a booming economy and globalization, numerous foreign enterprises have entered the Vietnamese market as Joint Venture Companies, introducing modern management practices and incentive policies that have influenced both state-owned and private firms This market opening has presented both threats and opportunities; while some businesses have thrived by enhancing productivity, product quality, and profitability, others have struggled to adapt and faced decline Under competitive pressure, various Vietnamese companies, including state-owned and private entities, are striving to maximize their financial, production, and sales performance Additionally, the role of employees is crucial in driving development, as highlighted by Maslow's hierarchy of needs.

Since 1954, the evolving personal needs of employees have driven their increasing expectations from work and commitment to company growth However, these needs are often unmet, leading to job dissatisfaction and a desire for change in their lives Additionally, a significant trend is the concentration of the Vietnamese labor force in major cities like Hanoi.

Ho Chi Minh City or so The movement of labor forces is clearly depicted in the

They usually move their jobs, which heavily damages enterprise’s human resources

Many Vietnamese enterprises face the challenge of high costs associated with recruitment and training, as a significant portion of their workforce frequently changes jobs According to a report by the Vietnamese Labor Force Newspaper (2010), 15-20% of employees in industrial zones switch jobs, highlighting the urgent need for companies to focus on employee retention strategies Maintaining a stable labor force has become a critical issue for businesses in Vietnam.

Problem statement

In 2011, the average employee turnover rate in Vietnam was reported at 17.8% by Towers Watson, indicating a significant challenge for companies that can harm their reputation and growth According to IMQ Consulting experts, the primary driver of this turnover is not salary-related issues; rather, it stems from conflicts and disagreements between staff and management, resulting in job dissatisfaction Additionally, an unstable working environment and a lack of focus on corporate culture contribute to this issue Overall, job dissatisfaction is the leading factor behind the high employee turnover rate in Vietnam.

Research objective

Job dissatisfaction is a prevalent issue in Vietnamese companies, leading to employee depression and negatively impacting organizational performance, particularly in human resources This research aims to explore the underlying causes of job dissatisfaction, which is identified as a major contributor to high turnover rates in Vietnam The study will analyze key factors affecting employee job satisfaction, compare satisfaction levels between state-owned and non-state-owned sectors, identify the most influential factors in each sector, and recommend improvements to the existing incentive systems to enhance job satisfaction across Vietnamese companies.

Research scope

This research is focused exclusively on South Vietnamese companies, encompassing both state-owned and non-state-owned enterprises The subjects of the study include employees, as well as low-level and middle-level managers.

Practical implication

This research aims to identify the key factors influencing job satisfaction, contributing to efforts to lower the high turnover rate in Vietnamese companies The findings will assist human resource managers in developing effective strategies to retain their workforce.

Research structure

This research will be composed of 5 Chapters:

Chapter 1: Introduction It introduces research background, research problem, research objective, research question as well as benefit of the research

Chapter 2: Literature review This chapter reviews theories and selects the research’s factors as well as formulates the research hypotheses and model

Chapter 3: Research methodology This chapter provides general idea how the research will be designed and implemented

Chapter 4: Research result This chapter translates data collected from survey, analyses data as well as discusses the result finding in connection with theory Chapter 5: Conclusion This Chapter concludes the research finding; provide further suggestion as well as research limitation.

LITERATURE REVIEW

Introduction

This chapter explores various theories of job satisfaction and the measurement scales associated with them It defines job satisfaction and examines key theories, including Maslow's hierarchy of needs, Herzberg’s motivation-hygiene theory, and McGregor’s Theory X and Theory Y Additionally, it reviews contemporary job satisfaction scales, highlighting their relevance in understanding employee contentment in the workplace.

Job satisfaction

According to C L Hulin (1966), job satisfaction reflects a worker's effective response to their job, stemming from their experiences in relation to personal values and expectations Essentially, satisfaction can be equated with a sense of pleasure derived from one's work.

Brayfield and Rothe (1951) propose a 7-point scale for assessing job satisfaction, focusing on five key factors: satisfaction with the current job, enthusiasm for the role, enjoyment during work hours, overall job enjoyment, and a comparison of positive versus negative aspects of the job These factors can be encapsulated in five specific statements.

- I feel fairly satisfied with my present job.

- Most days I am enthusiastic about my work.

- Each day of work seems like it will never end.

- I find real enjoyment in my work.

- I consider my job rather unpleasant.

Maslow's hierarchy of needs

According to Maslow's hierarchy of needs (1954), employees primarily seek job security and a stable income to support themselves and their families They desire a safe and stable work environment, opportunities to contribute to company development, and recognition from both supervisors and peers Additionally, employees aim to enhance their knowledge and skills, promote themselves effectively, and build long-term careers This trend in employee expectations is illustrated in Figure 1 below.

Figure 1 Maslow hierarchy of needs

Employee dissatisfaction often stems from various factors related to management behavior and company structure Key issues include ineffective communication and problem-solving, lack of clear personnel policies, failure to uphold commitments to staff, arbitrary task delegation, and inadequate emotional support for employees Additionally, a family-style management approach can contribute to a negative work environment These poor working conditions ultimately threaten employees' expectations and lead to decreased job satisfaction.

Herzberg's Motivation-Hygiene Theory

Herzberg's motivation-hygiene theory, developed in 1966, identifies key factors influencing employee satisfaction and dissatisfaction Table 1 outlines the six most significant factors contributing to dissatisfaction, followed by the six critical factors that enhance satisfaction, ranked from highest to lowest importance.

Leading to Dissatisfaction Leading to Satisfaction

Table 1: factors affecting job attitudes

Herzberg proposed that satisfaction and dissatisfaction stem from distinct factors, meaning they shouldn't be viewed as mere opposites Instead, he argued that the absence of satisfaction is what truly contrasts with satisfaction, while the absence of dissatisfaction is the true opposite of dissatisfaction.

The analysis of the results reveals that dissatisfaction is influenced more by external factors than by the work itself Herzberg identified these external influences as "KITA" factors, which stand for a "kick in the ass," referring to incentives or threats used to motivate individuals However, Herzberg argues that such methods yield only temporary results, as true job satisfaction stems from intrinsic motivators inherent to the work, rather than from external rewards or punishments.

Herzberg argued that job enrichment is required for intrinsic motivation, and that it is a continuous management process According to Herzberg:

∑ The job should have sufficient challenge to utilize the full ability of the employee.

∑ Employees who demonstrate increasing levels of ability should be given

If a job fails to leverage an employee's full potential, companies should contemplate automating the task and hiring someone with fewer skills Underutilization can lead to significant motivation issues among employees.

Critics of Herzberg's two-factor theory suggest that individuals tend to attribute their job satisfaction to personal achievements while blaming dissatisfaction on external circumstances Additionally, they argue that experiencing job satisfaction does not automatically correlate with increased motivation or productivity levels.

McGregor's Theory X and Theory Y

Douglas McGregor, in 1957, introduced Theory X and Theory Y, two contrasting perspectives on human behavior in the workplace and organizational settings He argued that managers and organizations typically adopt one of these two approaches, influencing their interactions with employees and overall organizational culture.

∑ People have an inherent dislike for work and will avoid it whenever possible

∑ People must be coerced, controlled, directed, or threatened with punishment in order to get them to achieve the organizational objectives

∑ People prefer to be directed, do not want responsibility, and have little or no ambition

∑ People seek security above all else.

In an organization with Theory X assumptions, management's role is to coerce and control employees

∑ Work is as natural as play and rest

∑ People will exercise self-direction if they are committed to the objectives (they are NOT lazy)

∑ Commitment to objectives is a function of the rewards associated with their achievement

∑ People learn to accept and seek responsibility

∑ Creativity, ingenuity, and imagination are widely distributed among the population People are capable of using these abilities to solve an organizational problem.

Incentive

Pouliakas (2008) highlights the significant influence of monetary incentives on job satisfaction, revealing a notable negative correlation between small bonus payments and workers' contentment with their jobs, particularly in low-salary contexts He argues that introducing monetary incentives can transform the dynamics of an incomplete contract, as employees who previously performed tasks without compensation begin to expect payment for those activities once bonuses are introduced The study shows that workers transitioning from a no-bonus system to an incentive-based policy experience higher average job satisfaction compared to their peers.

Employee satisfaction measurement

The Occupational Stress Indicator (OSI), based on the Cooper and Marshall stress model from 1976, serves as a valuable tool for diagnosing critical aspects of organizational life and their effects on both individual and corporate health Unlike a traditional test, the OSI functions as an indicator of stress, offering a comprehensive and accurate measure of occupational stress The OSI model incorporates three key components in its strain-stress approach: the relationship between job pressure and stress-related outcomes like health and job satisfaction; the influence of individual characteristics, such as Type A behavior and locus of control, which moderate this relationship; and the role of coping strategies in affecting stress-related outcomes.

This model offers valuable insights into identifying the causes of job dissatisfaction However, this research is limited to focusing solely on the scale for measuring job satisfaction within the OSI model This scale assesses the degree of negative feelings or attitudes an employee may have towards their job, providing an overall score based on 22 items Scores vary from 1, indicating "very much dissatisfaction," to 7.

“very much satisfaction” For each sub scale, the higher the score, the greater the satisfaction The sub-scales are as follows:

- Satisfaction with salary: this sub - scale examines the respondent’s perception and feeling about his income.

- Satisfaction with work activities: this sub – scale reflects the participants’ satisfaction concern their specific mission and tasks undertaken.

- Satisfaction with working condition: assesses the structure of the company, the supervision methods, working climate.

- Satisfaction with career prospects: this sub – scale is used to assess your future promotion, job rewards, and opportunities.

- Satisfaction with relationship: this sub – scale shows your relationship with other people at the works.

Table 2 below shows all the elements of OSI scale that usually make up to measure job satisfaction.

1 Communication and the way information flow around your organization.

2 The relationships you have with other people at work.

3 The feeling you have about the way you and your efforts are valued.

5 The degree to which you feel “motivated” by your job

7 The level of job security in your present job

8 The extent to which you may identify with the public image or goals of your organization

9 The style of supervision that your superiors use

10 The way changes and innovations have implemented

11 The kind of work or tasks that you are required to perform

12 The degree to which you feel that you can personally develop or grow in your job

13 The way in which conflicts are resolved in your company.

14 The scope your job provides to help you achieve your aspirations and ambitions

15 The amount of participation which you are given in important decision making

16 The degree to which your job taps the range of skills which you feel you possess

17 The amount of flexibility and freedom you feel you have in your job.

18 The psychological “feel” or climate that dominates your organization.

19 Your level of salary relative to your experience

20 The design or shape of your organization’s structure

21 The amount of work you are given to do whether too much or too little

22 The degree to which you feel extended in your job

Table 2 Job satisfaction measurement (OSI)

To assess job satisfaction within the Vietnamese context, the OSI scales have been specifically adapted to include sub-scales that evaluate pay, work activities, working conditions, career prospects, and relationships with superiors and colleagues This research distinguishes between state-owned and non-state-owned companies, highlighting the differences in their payment systems According to Herzberg (1966), KITA factors, or "kick in the ass," are essential for motivating employees to complete their tasks Consequently, factor 19 of the OSI scales has been further refined to align with the unique aspects of the Vietnamese payment system.

Observation factor 19 has been revised to focus on salary in relation to experience, ability, and incentives The following statements outline the sub-scales associated with salary adjustments.

- Your level of salary relative to your experience.

- Your level of salary bases on your abilities or the job nature.

To enhance the clarity of the survey, Observation Factor 2, "The relationships you have with other people at work," has been broken down into specific categories for easier responses These categories include relationships with colleagues, relationships with supervisors, and relationships with customers The sub-scales for these relationships are outlined below.

- The relationships you have with your colleagues.

- The relationship you have with your bosses.

- The relationship you have with your customers.

The OSI scale of job satisfaction has been adapted to better fit the Vietnamese working environment, incorporating five sub-scales: salary (with three factors), work activities (eight factors), working conditions (six factors), career prospects (six factors), and relationships (three factors) Additionally, Brayfield and Rothe's 1951 framework is utilized to measure job satisfaction effectively.

5 items Totally, 31 items are used to depict employees’ job satisfaction in Vietnamese companies Table 3 shows the instrument of job satisfaction clearly

1 Your level of salary relative to your experience

2 Your level of salary bases on your abilities or the job nature

2 The style of supervision that your superiors use

6 The way changes and innovations have implemented

1 The level of job security in your present job

4 The degree to which you feel extended in your job

5 The design or shape of your organization’s structure

2 The degree to which you feel “motivated” by your job

1 The relationships you have with your colleagues

2 The relationship you have with your boss

3 The relationship you have with your customers

1 I feel fairly satisfied with my present job.

2 Most days I am enthusiastic about my work

3 Each day of work seems like it will never end

4 I find real enjoyment in my work

5 I consider my job rather unpleasant

Hypotheses

Cooper & William (1988) demonstrate a positive relationship between job satisfaction and several key factors, including salary, work activities, working conditions, interpersonal relationships, and career prospects This study aims to explore the correlation between these primary factors and job satisfaction within Vietnamese companies, leading to the formulation of specific hypotheses.

H1: There is a positive correlation between job satisfaction and work activities in the Vietnamese company

H2: There is a positive correlation between job satisfaction and your career prospect in Vietnamese company

H3: There is a positive correlation between job satisfaction and working conditions in Vietnamese company

H4: There is a positive correlation between job satisfaction and relationship in the Vietnamese company

H5: There is a positive correlation between job satisfaction and salary in the Vietnamese company.

A survey of ten employees from both state-owned and non-state-owned sectors reveals that the majority of workers in non-state-owned companies express job satisfaction, while a smaller portion reports dissatisfaction This leads to the assumption that job satisfaction levels differ between state-owned and non-state-owned enterprises.

H6: Employees who are working in a non-state-owned company are more satisfied than the ones in state-owned company.

Conceptual model

Job satisfaction is influenced by several factors, including salary, work activities, working conditions, career prospects, and relationships with colleagues In this study, employee satisfaction serves as the dependent variable, while the independent variables are the aforementioned factors The research specifically examines job satisfaction among employees in state-owned versus non-state-owned sectors, using company type as a moderating variable to categorize the samples (Sharma & ctg, as cited in Nguyen, 2011) The conceptual model framework is illustrated in Figure 2 below.

RESEARCH METHODOLOGY

Research design

This research aimed to identify the factors influencing job satisfaction among employees in Vietnamese companies, without focusing on a specific industry A survey was conducted with a diverse group of respondents from both state-owned and non-state-owned sectors, allowing for a comparative analysis of satisfaction levels between these two sectors The study comprised two components: qualitative research and quantitative research.

Qualitative research was conducted through direct interviews with three individuals in Ho Chi Minh City This phase aimed to assess the clarity and consistency of the measurement scales, ensuring that the survey would be easily comprehensible for all participants.

The quantitative research involved collecting samples through both online and paper surveys, aimed at evaluating measurement scales and testing relevant hypotheses Conducted from October to November 2012, this study provided valuable insights into the targeted population.

The scales were developed based on existing theories and prior research, and were translated into Vietnamese to ensure accessibility for all audiences A feedback loop between the researchers and participants was implemented to eliminate any misunderstandings in the surveys Consequently, Scale 2 was established.

In this quantitative research, the reliability of all scales was evaluated using Cronbach Alpha and Exploratory Factor Analysis (EFA) Initially, Cronbach Alpha identified reliable scales by removing variables with a corrected item-total correlation below 0.3 and a Cronbach Alpha below 0.6, as outlined by Nunnally and Bernstein (cited in Nguyen, 2011) Subsequently, the EFA method was applied to further analyze the data.

Eliminate variables have corrected item – total correlation less than 0.3

Cronbach Alpha must be greater than 0.6 KMO > 0.5

Sum of squared loading cumulative >50%

To estimate the validity of the scale, the analysis process requires a Kaiser-Meyer-Olkin (KMO) value greater than 0.5 and a significant Bartlett test, with a significance level below 0.05 Factor loadings below 0.5 are eliminated from consideration The scale is deemed acceptable only when the cumulative sum of squared loadings exceeds fifty percent, as outlined by Nunnally and Bernstein (cited in Nguyen, 2011).

This research employed SPSS for data analysis, complemented by manual coding for data categorization The analysis commenced with reliability tests using Cronbach Alpha to assess scale consistency Subsequently, Pearson Correlation Coefficient analysis was conducted to identify significant relationships between independent and dependent variables Finally, Multiple Regression Analysis was performed to evaluate the impact of independent variables on employee satisfaction and to test the associated hypotheses.

Variable Coding

As had been stated in chapter 2, there were five factors affecting on job satisfaction:

The study evaluated five key factors: salary, work activities, working conditions, career prospects, and relationships, using multi-item scales and a 7-point Likert scale In this scale, a rating of 1 indicated total dissatisfaction, while a rating of 7 represented total satisfaction The coding of these variables is detailed in Table 4 below.

2 Your level of salary relative to your experience S1

3 Your level of salary bases on your abilities or the job nature

6 The actual job itself WA1

7 The style of supervision that your superiors use WA2

11 The way changes and innovations have implemented WA6

15 The level of job security in your present job WC1

18 The degree to which you feel extended in your job WC4

19 The design or shape of your organization’s structure WC5

23 The degree to which you feel “motivated” by your job CP2

29 The relationships you have with your colleagues R1

30 The relationship you have with your boss R2

31 The relationship you have with your customers R3

33 I feel fairly satisfied with my present job JS1

34 Most days I am enthusiastic about my work JS2

35 Each day of work seems like it will never end JS3

36 I find real enjoyment in my work JS4

37 I consider my job rather unpleasant JS5

Data collection

According to Hair & ctg (Nguyen, 2011), a minimum ratio of 5 observations for every variable is essential for accurate analysis Consequently, with a scale comprising 31 variables, a minimum sample size of 155 participants is required.

The employee job satisfaction surveys were primarily conducted online using Google Docs, targeting employees from both state-owned and non-state-owned companies Additionally, about 20% of the data was gathered through random paper surveys In total, 211 responses were collected, comprising 72 participants from state-owned enterprises and 139 from other sectors.

RESEARCH RESULT

Statistics

The study comprised a total sample of 211 participants, with 104 males (49.3%) and 107 females (50.7%) The majority of respondents were single (71.6%), while the remainder were married Educationally, most participants held bachelor's degrees (59.2%), followed by master's degrees (28.9%), college degrees (10.9%), and a small number with high school diplomas (0.9%) Age-wise, over half (52.1%) were between 26 and 34 years old, with 46% under 25 and a few (1.9%) aged 44 to 55 Income distribution revealed that nearly 40% earned between 5 to 10 million per month, while 25.6% had salaries below 5 million Additional income brackets included 16.6% earning 10 to 15 million, 15% earning 15 to 25 million, and a few (3.8%) with salaries ranging from 25 to 40 million, with only two individuals earning over 40 million Employment data indicated that 34.1% worked in state-owned companies, 35% in private firms, 19.9% in foreign companies, and 10.9% in joint ventures.

The variables were assessed using a multi-item scale, specifically a 7-point Likert scale, where 1 indicated total dissatisfaction and 7 signified total satisfaction A detailed description of the variables can be found in Table 6 below.

Variable N Mean Std Deviation Min Max

Scale analysis

The result of reliability analysis was on the table below

Scale Mean if Item Deleted

Scale Variance if Item Deleted

Cronbach's Alpha if Item Deleted Salary (S)

Cronbach's Alpha if Item Deleted Work activities (WA)

The style of supervision (WA2) 33.18 39.466 0.520 0.698

Level of job securities (WC1) 22.71 34.370 0.369 0.777

Your efforts are valued (CP1) 23.71 40.323 0.749 0.884

Company image or goal (CP4) 23.69 39.948 0.656 0.899

Your job helps you achieve your ambitions (CP6) 23.76 38.544 0.762 0.882

Cronbach's Alpha if Item Deleted Relationship (R)

The analysis indicated that the Cronbach Alpha for all variables was generally acceptable; however, two variables exhibited Corrected Item-Total Correlation values below the standard threshold of 0.3 Following the guidance of Nunnally & Bernstein (as cited in Nguyen, 2011), it was determined that WA7 and JS5 should be excluded to enhance the reliability of the variables Upon further reflection on the significance of these variables, it was decided to remove only WA7 The adjusted Cronbach Alpha values for the remaining variables are presented in Table 8 below.

Cronbach's Alpha if Item Deleted Salary (S)

Level of job securities (WC1) 22.71 34.370 0.369 0.777

Cronbach's Alpha if Item Deleted Career prospects (CP)

Your efforts are valued (CP1) 23.71 40.323 0.749 0.884

Company image or goal (CP4) 23.69 39.948 0.656 0.899

Your job helps you achieve your ambitions (CP6) 23.76 38.544 0.762 0.882

The validity of the scale was assessed using Exploratory Factor Analysis (EFA), employing Principal Axis Factoring for extraction and Promax rotation with Kaiser Normalization Any analysis values below 0.4 were excluded from the results.

Your job helps you achieve your ambition 725

Based on the results, variables with values below 0.5 were eliminated After careful evaluation of each variable's significance, the following were removed: job security, work loyalty, decision-making, personal performance, and company image or goals The resulting reduced values are presented in Table 10 below.

Your job helps you achieve your ambition 909

Finally, the main factors affecting on job satisfaction were reduced from five factors to four factors:

Working conditions and activities (WCA): style of supervision, innovation, the way solved conflicts, flexible time, psychological feel, organization structure, and communication.

Career prospect (CP): Task required, the job itself, your efforts are valued, job motivation, personal development, job opportunities, and your job helps you archive your ambitions

Salary (S): Salary based on experiences, salary based on abilities, and incentives. Relationship (R): Relationship with colleagues, relationship with bosses, and relationship with customers.

Job satisfaction (JF): Your job satisfaction, your job enthusiastic, job enjoyment, working day, and job VS unpleasant.

A survey of ten individuals revealed that most perceived working conditions and work activities as synonymous, often referring to them collectively as the working environment Only three respondents recognized a slight distinction between the two terms, yet they did not advocate for separating them Instead, they viewed "work conditions and activities" as integral to their daily job experiences The newly proposed conceptual model encompasses factors such as working conditions and activities, career prospects, relationships, salary, and job satisfaction.

H1: Work condition and activities have a positive correlation with job satisfaction.H2: Career prospects have a positive correlation with job satisfaction.

H3: Salary has a positive correlation with job satisfaction

H4: Relationship has a positive correlation with job satisfaction

Analysis

Firstly, In order to test these relevant hypotheses, the correlation between factors was carried out by Pearson correlation The results of these analyses were in the Table 11.

Pearson correlation Job satisfaction (JS) Significant (2 - tailed) Pearson correlation

Working condition and activities (WCA)

This analysis reveals a significant correlation between job satisfaction (JS) and various factors, including working conditions and activities (WCA), interpersonal relationships (R), salary (S), and career prospects (CP).

4.2 Regression analysis a Multi linear regression

Multilinear regression is a statistical method employed to analyze the impact of multiple independent variables on a single dependent variable (Nguyen, 2011) Before applying this model, it is essential to verify the regression standardized residuals and ensure homoscedasticity (Nguyen, 2011).

The regression standardized residual and homoscedasticity are suitable and the result is showed in Appendix 2

This study examined the impact of four independent variables—salary, working conditions and activities, relationships, and career prospects—on the dependent variable of job satisfaction (JS) The results are presented in the tables below.

Std Error of the Estimate

1 656 a 430 419 99514 a Predictors: (Constant), R Relationship, S Salary, WCA Working condition and activities, CP Career prospects

Table 12 Multi linear regression analysis (1)

Total 358.074 210 a Predictors: (Constant), R Relationship, S Salary, WCA Working condition and activities, CP Career prospects b Dependent Variable: JS Job satisfaction

WCA Working condition and activities

.119 088 099 1.346 180 513 1.948 a Dependent Variable: JS Job satisfaction

Table 14 Multi linear regression analysis (3)

We had the regression equation below:

Each VIF values of independent variables were less than 10, so each independent variable had a significant contribution in explaining the changes in dependent variable (Hair & ctg, as cited in Nguyen, 2011)

The correlation factor R is 0.656, with an adjusted R² of 0.419, indicating that salary (S), relationships (R), working conditions and activities (WCA), and career prospects (CP) account for approximately 42% (41.9%) of the variations in job satisfaction.

The analysis revealed that career prospects (CP) significantly contribute to job satisfaction, with a p-value of less than 0.05 in multi-linear regression This finding aligns with the results from simple linear regression, which also indicated that career prospects had the most substantial impact on job satisfaction In summary, career prospects play a crucial role in enhancing job satisfaction.

To explore the influence of company type on job satisfaction, Sharma & colleagues (as cited in Nguyen, 2011) emphasized the necessity of a moderator variable, termed a homologizer variable, which does not establish a direct relationship between dependent and independent variables To effectively test this conceptual model, it is essential to categorize samples into homogeneous groups and conduct multiple linear regression analyses for each group In this study, the population was divided into two categories: state-owned companies and non-state-owned companies The findings from the multiple linear regression analyses for both groups are presented in the tables below.

Company type Mode l R R Square Adjusted R

Std Error of the Estimate

Non-state-owned 1 674 a 454 437 97798 a Predictors: (Constant), WCA Working condition and activities, S Salary, R Relationship, CP Career prospect

Table 15 Multi linear regression analysis between state-owned and non-state- owned companies (1)

ANOVA b Company type Model Sum of

Total 234.622 138 a Predictors: (Constant), WCA Working condition and activities, S Salary, R

Relationship, CP Career prospect b Dependent Variable: JS Job satisfaction

We had the regression equation of state-owned companies:

And the regression equation of non-state-owned companies was:

WCA Working condition and activities

.103 112 079 918 360 554 1.806 a Dependent Variable: JS Job satisfaction

The analysis revealed that the adjusted R² for state-owned companies (0.380) was lower than that for non-state-owned companies (0.437), indicating that factors like salary, relationships, working conditions, activities, and career prospects significantly influenced job satisfaction in non-state-owned firms Consequently, employees in non-state-owned companies reported higher levels of job satisfaction compared to their counterparts in state-owned sectors.

The analysis revealed that career prospects significantly influence job satisfaction in both state-owned and non-state-owned companies (p < 0.05) Notably, employees in non-state-owned companies exhibited higher ambition levels compared to their counterparts in state-owned sectors, with a β coefficient of 0.619 for non-state-owned firms versus 0.36 for state-owned firms.

Discussions

H1: Work condition and activities have a positive correlation with job satisfaction.

The regression analysis reveals that the relationship between working conditions and activities (WCA) and job satisfaction (JS) is not statistically significant, with a regression weight of β = 0.119 and a p-value of 0.180, which exceeds the 0.05 threshold Consequently, we reject hypothesis 1, indicating that working conditions and activities do not contribute to employees' job satisfaction.

H2: Career prospects have a positive correlation with job satisfaction.

A regression analysis reveals a significant positive correlation between career prospects (CP) and job satisfaction (JS), with a regression weight of β = 0.530 and a p-value of 0.000, which is less than the threshold of 0.05 This supports the acceptance of hypothesis 2, indicating that as career prospects improve, job satisfaction also increases In conclusion, there is a clear positive relationship between career prospects and job satisfaction.

H3: Salary has a positive correlation with job satisfaction

The regression analysis revealed a regression weight of β = 0.062 and a significant value of P = 0.308, indicating that the relationship between salary (S) and job satisfaction (JS) is not statistically significant, as the P-value exceeds the 0.05 threshold Consequently, we cannot accept hypothesis 3 Furthermore, the regression weight for salary is the lowest among the variables tested in the multiple linear regression, suggesting that salary does not play a significant role in influencing employees' job satisfaction in Vietnamese companies.

H4: Relationship has a positive correlation with job satisfaction.

The regression analysis reveals a relationship (R) with job satisfaction (JS) characterized by a regression weight (β) of 0.156 and a significant value (P-value) of 0.068, which is greater than the 0.05 threshold Consequently, we cannot accept hypothesis 4 However, this P-value is only slightly above 0.05, suggesting that if the reliability of the research were reduced to 93%, the relationship could significantly contribute to job satisfaction, explaining 15.6% of its variance.

This regression analysis categorizes companies into state-owned and non-state-owned sectors, revealing that non-state-owned companies have a higher adjusted R² of 0.437, compared to 0.38 for state-owned companies This indicates that factors influencing job satisfaction account for 43.7% of the variance in non-state-owned firms, while only 38% in state-owned firms, suggesting that employees in non-state-owned companies experience greater job satisfaction With a significant p-value of 0.000 for both groups, we confidently accept the results of this analysis and support hypothesis 5.

The summary of hypothesis testing is in the Table 18:

Work condition and activities have a positive correlation with job satisfaction

H2 Career prospects have a positive correlation with job satisfaction 0.000 Yes

H3 Salary has a positive correlation with job satisfaction 0.308 No

H4 Relationship has a positive correlation with job satisfaction 0.068 No

Employees who are working in a non-state-owned company are more satisfied than the ones in state- owned company

The regression equation with standardized regression weight (β) is:

Career prospects significantly influence job satisfaction, with a 1-unit increase in career prospects leading to a 52% rise in job satisfaction In contrast, factors such as salary, relationships, working conditions, and activities have little to no impact on employees' overall job satisfaction.

Regression analysis with moderator variable

Company type is used as moderator variable or grouping classification After running regression analysis for each group, the regression equations with standardized regression weight (β) are:

State-owned companies: Job satisfaction = 0.53 + 0.36 * Career prospects

In non-state-owned companies, job satisfaction is primarily influenced by career prospects, as indicated by the equation Job Satisfaction = -0.233 + 0.619 * Career Prospects This suggests that, unlike factors such as salary, relationships, working conditions, and activities, career advancement plays a crucial role in determining employee satisfaction.

If career prospects increase 1 unit in state-owned companies, the employees’ job satisfaction will increase 36 percent of a unit.

If career prospects increase 1 unit in non-state-owned companies, the employees’ job satisfaction will increase nearly 62 percent of a unit.

CONCLUSION

Conclusions on the research problem and hypotheses

This thesis investigates the key factors influencing employee job satisfaction, revealing that career prospects play a significant role in both state-owned and non-state-owned companies The research thoroughly tested all relevant hypotheses, leading to the conclusion that career advancement opportunities are the primary contributors to job satisfaction among employees.

Implications for human resource manager

This research highlights that career prospects significantly influence job satisfaction, particularly among young employees under 34 years old, with 207 participants in this age group It emphasizes the importance of providing career advancement opportunities over salary or other working conditions By creating more opportunities for growth, human resource managers can enhance employee satisfaction and engagement, encouraging them to overcome challenges in their careers.

Research contributions

This research represents the young employees’ opinion about their job satisfaction

Career prospects are a primary concern for employees, and it is essential for human resource managers to focus on career development initiatives By investing in the growth of their employees, companies in Vietnam can effectively address the high turnover rates they face.

Limitations

This study is limited to Ho Chi Minh City and employs non-probability sampling methods for convenience, which means it may not encompass all cases and the results may lack precision.

- The samples of this research are mostly young employees, who are less than

34 years old So, we cannot understand the opinion of senior employees

- This research is done by English, a secondary language So, it causes some troubles for the writer to convey all of the meaning of measurement instrument scales into Vietnamese.

Brayfield, A H., &Rothe, H F (1951) An index of job satisfaction Journal of Applied Psychology, 35, 307-311.

Cooper, C.L., & Marshall, J (1976) Occupational sources of stress: A review if the literature relating to coronary heart disease and mental ill health Journal of Occupational Psychology, 49, 11-28.

Cooper, C L., Sloan S J., & William, S (1988) Occupational stress indicator: Management guide Windsor: NFER-Nelson.

C L Hulin (1966) The effects of community characteristics in measures of job satisfaction Journal of applied psychology, 50, 185 – 192

Herzberg, F (1966) Work and the Nature of Man Cleveland: World Publishing

Herzberg's Motivation-Hygiene Theory [online] Available at: http://www.netmba.com/mgmt/ob/motivation/herzberg/

Laodong.com.vn Retrieved March 17, 2011 from http://laodong.com.vn/Su-kien- binh-luan/Nhay-viec/38845.bld

Leadership and organizational behavior [online] Available at: http://www.nwlink.com/~donclark/leader/leadob.html

Maslow, A (1954) Motivation and Personality New York: Harper and Row

McGregor, D (1957) Proceedings of the Fifth Anniversary Convocation of the School of Industrial Management, The Human Side of Enterprise.

Massachusetts Institute of Technology (April 9, 1957).

Nguyen TD (2011) Research method in business Labor – society publisher.

Pay enough, don’t pay too much or don’t pay at all? The impact of bonus intensity on job satisfaction investigates the relationship between incentive pay intensity and job satisfaction Using data from the British Household Panel Survey from 1998 to 2007, the study reveals that job satisfaction increases significantly with generous bonuses, particularly in skilled, non-unionized private sector jobs Conversely, the removal of bonuses negatively affects employee satisfaction over time, indicating that employers should adopt a strategy of either providing sufficient bonuses or refraining from offering them altogether to maintain employee motivation.

Towers Watson (May, 2011): HR Market Trends Survey Available from http://www.towerswatson.com/vietnam/

Lam D Nguyen, (2011, Oct) Organizational Characteristics and Employee Overall Satisfaction: A Comparison of State-Owned and Non State-Owned Enterprises in Vietnam The south east Asian journal of management, 5(2), 135 – 158.

Measuring job satisfaction [online] Available at: http://www.makemynotez.com/organizational-behavior/measuring-job- satisfaction/

N van Saane, J K Sluiter, J H A M Verbeek and M H W Frings-Dresen

(2003) Reliability and validity of instruments measuring job satisfaction—a systematic review Occupational Medicine, 53(3), 191–200 DOI: 10.1093/occmed/kqg038

Steiler, D (2004, July) Translation and validation of the occupational stress indicator for use in France (Unpublished honours thesis) The university of Newcastle – Upon – Tyne Business School

Vietnamese questionnaire

Kính chào các anh/chị,

Tôi là Lê Anh Tài - hiện là học viên cao học của Viện Đào Tạo Quốc Tế (ISB) – Trường Đại Học Kinh Tế Tp.HCM.

Tôi đang nghiên cứu về các yếu tố ảnh hưởng đến sự thỏa mãn của nhân viên tại các công ty quốc doanh và ngoài quốc doanh Xin vui lòng dành thời gian thực hiện bảng khảo sát dưới đây Thông tin của bạn sẽ được giữ bí mật và chỉ có dữ liệu tổng hợp được công bố Nếu bạn quan tâm, bản báo cáo sẽ được gửi đến bạn sau khi hoàn thành Mọi ý kiến đóng góp xin gửi về anhtai_le87@yahoo.com Cảm ơn sự hỗ trợ của bạn!

PHẦN I:CÁC YẾU TỐ TÁC ĐỘNG ĐẾN SỰ THỎA MÃN CỦA NHÂN VIÊN

Anh/ chị vui long đánh giá mức độ đồng ý của mình với các phát biểu dưới đây theo qui ước từthấp đến cao như sau:

Hoàn toàn không đồ ng ý

Hơi đồ ng ý Đồ ng ý Hoàn toàn đồ ng ý

TT Nội dung Mức độ đồng ý

I Lương và các khoản tiền thưởng

Mức lương của tôi chủ yếu phụ thuộc vào thâm niên kinh nghiệm và năng lực cá nhân, cũng như tính chất công việc hiện tại Tôi cảm thấy hài lòng với các khoản tiền thưởng mà mình nhận được, ngoại trừ lương cơ bản.

II Tính chất công việc

II.1 Tôi thật sựthích công việc mình đang làm

II.2 Tôi thích cách quản lý nhân viên hiện tại của công ty II.3 Công việc tôi làm đòi hỏi có chuyên môn

Trong công ty tôi, mọi mâu thuẫn trong công việc đều được giải quyết một cách hiệu quả Khi tôi đưa ra những quyết định quan trọng, việc có sự đồng ý từ nhiều người là điều cần thiết để đảm bảo sự đồng thuận và thành công trong công việc.

II.6 Nhiều biện pháp cải tiến trong công việc được áp dụng trong công ty tôi

II.7 Khối lượng công việc của tôi nhiều hơn so với đồng nghiệp cùng bộphận II.8 Tôi thểhiện hết khả năng của mình vào công việc

III Điều kiện làm việc

III.1 Công việc hiện tại bảo đảm sức khoẻcủa tôi

III.2 Tôi có thểsắp xếp thời gian làm việc linh hoạt, thoải mái III.3 Không khí làm việc trong công ty tôi thoải mái

III.4 Tôi cảm thấy không gò bó trong công việc

Cơ cấu tổ chức của công ty tôi được thiết kế đơn giản, nhằm hạn chế các thủ tục phức tạp Điều này giúp tăng cường hiệu quả làm việc và giảm thiểu thời gian xử lý công việc Hơn nữa, cách trao đổi thông tin giữa các bộ phận diễn ra rõ ràng, giúp tránh nhầm lẫn và đảm bảo mọi người đều nắm bắt thông tin chính xác.

TT Nội dung Mức độ đồng ý

IV.1 Những nỗlực và đóng góp của tôi cho công ty được ghi nhận IV.2 Tôi được thăng tiến khi gắn bó với công việc

IV.3 Công việc hiện tại mởra cho tôi nhiều cơ hội cho bản thân (mởrộng mối quan hệ, bổsung kỹ năng sống cho bạn, …)

IV.4 Tôi thật sựquan tâm tới hình ảnh của công ty

Công việc hiện tại mang đến cho tôi cơ hội học hỏi và phát triển bản thân, giúp tôi nâng cao kỹ năng và kiến thức chuyên môn Đồng thời, nó cũng hỗ trợ tôi trong việc đạt được các mục tiêu phấn đấu cá nhân, tạo điều kiện thuận lợi cho sự nghiệp của tôi trong tương lai.

V.1 Tôi luôn duy trì quan hệtốt đẹp với đồng nghiệp

V.2 Tôi luôn làm sếp hài lòng vềcông việc của mình

V.3 Tôi tạo mối quan hệtốt với đối tác của mình

VI Sựthỏa mãn của nhân viên

VI.1 Nhìn chung tôi cảm thấy thỏa mãn với công việc hiện tại VI.2 Hàng ngày tôi hăng say làm việc

VI.3 Ngày làm việc của tôi dường như không kết thúc

VI.4 Tôi tìm thấy sựthích thú thật sựtrong công việc

VI.5 Tôi ưu tiên giải quyết công việc hơn những bực bội trong công việc

PHẦN II: THÔNG TIN CHUNG

Xin Anh/ Chị vui lòng đánh dấu vào các ô trống thích hợp:

2 Tình trạng hôn nhân Độc thân ( ) Đã kết hôn ( )

6 Loại hình công ty đang làm việc:

Nhà nước: ( )Tư nhân: ( ) Liên doanh: ( )100% vốn nước ngoài: ( )

R ất cám ơn sự giúp đỡ chân tình c ủ a Anh/ Ch ị

English questionnaire

I’m Le Anh Tai I’m studying master at University of Economic Ho Chi Minh City

I am currently researching my master's thesis on the factors influencing job satisfaction in state-owned versus non-state-owned enterprises in Vietnam I kindly request your participation in answering the questions below Please be assured that your responses will remain confidential, and only processed data will be published If you are interested in this topic, feel free to contact me at anhtai_le87@yahoo.com Thank you for your cooperation.

PART 1: FACTORS AFFECTING JOB SATISFACTION

To what extend to you agree these statements:

I.1 Your level of salary relative to your experience

I.2 Your level of salary bases on your abilities or the job natureI.3 Your degree of incentive

II.1 The actual job itself

II.2 The style of supervision that your superiors use

II.3 The kind of work or tasks that you are required to perform

II.4 The way in which conflicts are resolved in your company.

II.5 The amount of participation which you are given in important decision making II.6 The way changes and innovations have implemented

II.7 The amount of work you are given to do whether too much or too little

II.8 The degree to which your job taps the range of skills which you feel you possess

III.1 The level of job security in your present job

III.2 The amount of flexibility and freedom you feel you have in your job.

III.3 The psychological “feel” or climate that dominates your organization.

III.4 The degree to which you feel extended in your job

III.5 The design or shape of your organization’s structure

III.6 Communication and the way information flow around your organization.

IV.1 The feeling you have about the way you and your efforts are valued.

IV.2 The degree to which you feel “motivated” by your job IV.3 Current career opportunities

IV.4 The extent to which you may identify with the public image or goals of your organization

IV.5 The degree to which you feel that you can personally develop or grow in your job

IV.6 The scope your job provides to help you achieve your aspirations and ambitions

V.1 The relationships you have with your colleagues

V.2 The relationship you have with your boss

V.3 The relationship you have with your customers

VI.1 I feel fairly satisfied with my present job.

VI.2 Most days I am enthusiastic about my work

VI.3 Each day of work seems like it will never end

VI.4 I find real enjoyment in my work

VI.5 I consider my job rather unpleasant

10-15 million VND ( ) Upper 40 million VND ( )

State owned: ( ) Private: ( ) Joint stock: ( ) Foreigner: ( )

Many thanks for your supporting

Tiêu đề	Factors Affecting Job Satisfaction: A Comparison Between State-Owned And Non State-Owned Enterprises In Viet Nam
Tác giả	Le Anh Tai
Người hướng dẫn	Dr. Nguyen Huu Lam
Trường học	University of Economics Ho Chi Minh City
Chuyên ngành	Master of Business (Honours)
Thể loại	Thesis
Năm xuất bản	2012
Thành phố	Ho Chi Minh City

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