INTRODUCTION
Research background
Human resource management is essential in today's business landscape due to its significant influence on organizational success and talent retention The empathy factor inherent in human resources directly affects employee attitudes, which in turn impacts customer satisfaction and perception This connection is crucial for fostering higher customer loyalty and commitment Consequently, human resources are a key driver of service quality and overall customer satisfaction.
Job performance is crucial for the success of organizations, including banks, as it directly impacts overall performance Employee motivation plays a significant role in enhancing job performance, encouraging regular attendance, diligence, and flexibility in their work A high level of motivation also fosters a willingness to undertake necessary tasks Conversely, job dissatisfaction can lead to decreased performance and lower contributions from employees Therefore, it is essential to enhance the job performance of human resources within the banking sector to drive organizational success.
Numerous studies indicate that job performance is influenced by various factors, particularly the quality of work life and organizational commitment Research, including that conducted by Nguyen, explores the significant effects of these elements on employee performance across different contexts.
Nguyen(2012),Sirgy, Efraty, Siegel and Dong(2001),Fu and Deshpande (2014)
Quality of work life significantly impacts a company's efficiency and productivity, as highlighted by Mohan and Kanta (2013) By fostering a positive work environment, organizations can enhance employee satisfaction, which is crucial for attracting and retaining top talent Research by May, Lau, and Johnson (1999) indicates that companies with superior quality of work life enjoy a competitive edge in recruiting and keeping skilled employees Furthermore, organizational commitment, defined as the psychological attachment employees feel towards their workplace (Murthy, 2013; Lamba & Choudhary, 2013), plays a vital role in encouraging longer employee tenure.
Research Problems
The banking and finance industry has been a cornerstone of the modern economy for centuries Recently, the growth of the Vietnamese banking system has led to an increased demand for skilled workers, while banks face challenges related to workforce competency As a result, developing a high-quality workforce has become a priority Job performance is a crucial criterion for evaluating employee outcomes and success (Campbell et al., 1993) Thus, it is essential for bank managers in Vietnam to explore the factors influencing their employees' job performance.
This research focuses on explaining job performance by examing the effects oftwo factors which are quality of work life and organizational commitment on job performance
Work plays a crucial role in our lives, occupying one-third of our daily time and significantly influencing our personal well-being The quality of work life is essential for enhancing individual life quality, yet while North America has extensively studied this concept, it remains underexplored in Asia, particularly in Vietnam Existing research has primarily focused on the marketing industry, highlighting the need for a comprehensive study on the relationship between quality of work life and job performance within the Vietnamese banking sector.
The transition of skilled employees from the banking sector to more profitable industries poses a significant challenge for banks, particularly during tough economic times Retaining experienced and dedicated staff is crucial, as their commitment directly influences customer service and overall business interests Harter, Schmidt, and Hayes (2002) emphasized that a committed workforce is essential for achieving meaningful business results In today's increasingly competitive landscape, fostering organizational commitment has become vital for the survival of banks Therefore, it is essential to investigate the impact of organizational commitment on job performance within the Vietnamese banking sector.
Research Objectives
The objective of this study is to examine the impact of quality of work life and organizational commitment on job performance among employees in the Vietnamese banking sector
More specifically, three research questions are given as follows:
Question 1: Doesquality of work life affect job performance of employees in the Vietnamese banking sector?
Question 2: Does organizational commitment affect job performance of employees in the Vietnamese banking sector?
Question 3: Doesquality of work life affect organizational commitment of employees in the Vietnamese banking sector?
Scopes of the study
This study focuses on bank employees in Ho Chi Minh City, a major economic hub in Vietnam.
This research focuses exclusively on the relationship between organizational commitment, quality of working life, and job performance, while excluding other factors that may also influence job performance.
The significane of the study
This research contributes to the understanding of quality of work life and organizational commitment, and their impact on job performance within the context of
Vietnamese business organizations in generally and within Vietnamese banking sector in particularly
The research highlights a crucial opportunity for managers to recognize that improving certain aspects of employees' quality of work life can positively influence job performance and organizational commitment Therefore, it is essential for business leaders to develop effective work requirements and implement supportive policies aimed at enhancing employees' quality of work life, ultimately fostering greater organizational commitment and improved job performance.
Structure of the study
The structure of the study consists five chapters:
This chapter presents research background of the study, as well as, research problems, research objectives, research methodology and scopes
Chapter 2: Literature Review, Hypotheses, and Research model
This chapter offers a literature review that focuses on two key concepts: quality of work life and organizational commitment Additionally, it outlines the conceptual model of the study and presents the associated hypotheses.
Research process, measurement scales, questionnaire design, data collection method, sampling design, and data analysis method are presented more details in this chapter
The survey data has been thoroughly analyzed to construct the final study model Based on the analysis results, the relationships among the factors outlined in the study model will be evaluated.
Chapter 5: Conclusions, Implication, and Limitation
The conclusions of the study summarize the key findings and propose managerial implementations derived from the results discussed in earlier chapters Additionally, the researcher addresses the limitations that influenced these findings and outlines potential directions for future research.
LITERATURE REVIEW AND HYPOTHESIS DEVELOPMENT
Theoretical foundations
According to Sirgy et al (2001), the quality of work life literature is primarily based on two theoretical approaches: need satisfaction and spillover The need satisfaction approach, rooted in models by Maslow, Frager, and Cox (1970), posits that individuals have fundamental needs that can be fulfilled through their jobs Employee satisfaction is largely determined by how well their jobs meet these needs Porter (1961) further developed a framework to assess quality of work life in organizational settings, utilizing Maslow's Hierarchy of Needs His work aimed to evaluate employees' needs in relation to their jobs, the availability of organizational resources, and the alignment between individual needs and organizational support, highlighting the importance of fulfilling employee needs for overall job satisfaction.
Maslow’s hierarchy were covered by the Porter (1961) measure, namely survival needs, social needs, ego needs, and self-actualization needs
The spillover approach to quality of work life, as proposed by Sirgy et al (2001), suggests that satisfaction in one area of life can positively impact satisfaction in other areas For instance, job satisfaction may enhance overall contentment in various life domains, including family, leisure, social interactions, health, and financial well-being.
Organizational commitment refers to an employee's emotional attachment and loyalty to their workplace This article explores the key theories of organizational commitment that have evolved from the 1960s to the present day.
The side-bet theory, introduced by Becker in 1960, highlights the significance of investments made by employees—such as time, effort, or money—that could be lost if they leave their organization Meyer and Allen (1990) further elaborated that these investments, termed side-bets, hold substantial value for individuals, creating a barrier to job change due to potential financial losses, like forfeiting pension benefits, and the loss of seniority and established relationships Becker argued that over time, these accrued costs make it increasingly challenging for employees to consider new job opportunities.
Becker's (1960) theory highlights the strong link between organizational commitment and voluntary employee turnover, suggesting that commitment should be assessed based on the reasons prompting an employee to leave This foundational approach influenced subsequent research in measuring organizational and occupational commitment The side-bet approach's impact is particularly evident in Meyer and Allen's (1991) Scale, which focuses on continuance commitment and serves as an effective tool for testing this concept, forming one of the three key dimensions of organizational commitment they identified.
Meyer and Allen (1984) critiqued the operationalization of the side-bet approach, arguing that Becker's (1960) scales measure attitudinal commitment rather than true side-bets They suggested that a more effective way to measure side-bets would involve directly assessing individuals' perceptions of the number and significance of their side-bets To validate this idea, they analyzed the relationships among various commitment scales, introducing their own scales for Affective and Continuance commitment Meyer and Allen posited that the Continuance dimension more accurately reflects Becker's side-bet approach, focusing on the costs employees associate with leaving their organizations.
A few years later, a third dimension was added, the normative commitment (Allen
Normative commitment refers to the obligation employees feel to stay with their organization Those who experience high normative commitment believe they should remain with the company, influenced largely by socialization and cultural factors prior to their entry into the workplace.
Overview on job performance, quality of work life and organizational commitment
Borman and Motowidlo (1993) define job performance as the work-related behaviors that can be quantified based on an individual's contribution to achieving organizational goals, effectively assessing how well a person executes their job responsibilities.
Job performance is a crucial activity that reflects an organization's goals and the means to achieve them, as noted by Razek (2011) It represents the efficiency of specialists and the expected achievements of the organization, highlighting the efforts made by employees to reach specific objectives Ultimately, job performance serves as an objective measure of the actual results that companies aim to achieve.
Job performance is defined as the extent to which an employee's behaviors contribute to organizational goals (Daniel & Harris, 2000) It reflects an employee's ability to effectively accomplish assigned tasks within an organizational context (Arverty & Murphy, 1998).
Briefly, job performance indicates the effectiveness of employee’s specific actions that contribute to attain organizational goals
Ever since the concept of quality of work life (QWL) was first used over 30 years ago there are some different definitions of QWL (Martel &Dupuis, 2006) Feldman
Quality of Work Life (QWL) refers to the relationship between employees and their overall working environment, as defined by 1993 The concept has been in existence since the 1960s, emphasizing the importance of organizations prioritizing employees' health and well-being According to Bowditch and Buono (2005), a strong focus on QWL ensures that employees feel satisfied and fulfilled in their work, enhancing the overall quality of their on-the-job experiences.
Kashani (2012) highlights that numerous organizations are now assessing the quality of work life for their employees by actively involving them in the evaluation process This engagement allows employees to offer valuable insights on enhancing human resource management and related policies, ultimately leading to improved work quality Additionally, the study emphasizes the impact of the working environment on employee performance, their participation in problem-solving, and the importance of a rewards system to motivate staff effectively.
Quality of work life, as defined by Mohan and Kanta (2013), refers to the provision of favorable working conditions that enable employees to perform at their best A motivating workplace fosters a positive attitude among staff towards their jobs and the organization as a whole.
According to Sirgy et al (2001), the quality of work life encompasses employee wellbeing and satisfaction, which are derived from various needs met through workplace resources, activities, and outcomes related to their participation in the work environment.
The concept of quality of life, as explored by Sirgy et al (2001), is rooted in the need theories proposed by Maslow, Frager, and Cox (1970), along with spillover theories This research identifies four primary categories of needs—survival, social, ego, and self-actualization—encompassing seven specific needs based on Maslow's hierarchy, as detailed by Porter (1961).
The concept of quality of work life has evolved to encompass seven key needs: health and safety, economic and family stability, social connections, esteem, self-actualization, knowledge, and aesthetic fulfillment (Nguyen & Nguyen, 2010).
In a study by Nguyen and Nguyen (2010), the authors introduced the concept of "Survival needs" to encompass the fulfillment of health, safety, economic, and family needs They categorized the satisfaction of social and esteem needs under "Belonging needs," while "Knowledge needs" was used to represent the satisfaction of actualization, knowledge, and aesthetic needs These three key concepts—survival needs, belonging needs, and knowledge needs—highlight the various dimensions of human needs and their importance in overall well-being.
“knowledge needs” are accepted by several researchers including Nguyen and Nguyen
The quality of working life significantly influences employee satisfaction, which in turn enhances job performance Employee satisfaction is closely linked to how well a job meets their fundamental human needs.
In the Vietnamese market, Nguyen and Nguyen (2012) defined the quality of work life as the satisfaction of marketers with their human needs in the workplace These needs encompass health and safety, economic and family, social, esteem, actualization, knowledge, and aesthetic needs Their study revealed that three primary variables significantly explain human demands at work: survival needs, belonging needs, and knowledge needs.
In short, quality of work life also refers to the satisfaction of employees with survival needs, belonging needs, and knowledge needs based on the definition of Nguyen and Nguyen (2012)
Organizational commitment, as defined by Mowday, Steers, and Porter (1979), refers to the degree of an individual's identification with and involvement in a specific organization This concept was further elaborated by O'Reilly and Chatman (1986), highlighting its significance in understanding employee engagement and loyalty within the workplace.
“individual's psychological attachment to an organization - the psychological bond linking the individual and the organization.”
Meyer and Allen's (1991) definition of organizational commitment, widely recognized in research, describes it as a psychological state that reflects an employee's relationship with their organization, influencing their decision to remain a member They introduced a three-component model of commitment, which includes affective, continuance, and normative commitment Employees with high organizational commitment tend to exhibit greater adaptability, job satisfaction, productivity, accountability, and loyalty, ultimately making them a more cost-effective asset to the organization.
Affective commitment is characterized by an employee's emotional connection to their organization, which influences their identification with its goals and their level of involvement This emotional attachment manifests in how individuals manage their roles, handle tasks, and engage in social interactions that align with the organization's values and objectives (Lee, Allen, Meyer & Rhee, 2001).
Hypothesis development
2.3.1 Quality of work life and job performance
Quality of work life and job performance both are organizationally based (Beh
In a study conducted by Beh and Rose (2007), which surveyed 475 managers in the Malaysian manufacturing industry, it was found that there is a positive correlation between quality of work life and job performance.
In the paper ofKorunka, Christian, Peter Hoonakker, and Pascale Carayon
(2008),Regoand Cunha(2008), quality of work life has a positive impact on employee’s productivity, loyalty and performance In Vietnamese market, Nguyen and Nguyen
A study conducted in 2010 identified key factors influencing human demands in the workplace, such as survival needs, belonging needs, and knowledge needs However, it did not address the connection between quality of work life and job performance within the Vietnamese banking sector Therefore, this research proposes a positive relationship between quality of work life and job performance, as outlined in the following hypothesis.
H1: Quality of work lifeimpacts positively on job performance among employees in the Vietnamese banking sector
2.3.2 Organizational commitment and job performance
Research consistently demonstrates a strong link between organizational commitment and job performance A study by Jaramillo, Mulki, and Solomon (2005) identified organizational commitment as a key predictor of job performance Similarly, Khan, Ziauddin, Jam, and Ramay (2010) explored this relationship within Pakistan's oil and gas sector, finding a positive correlation between organizational commitment and employee job performance Notably, their comparative analysis highlighted that normative commitment significantly correlates with enhanced job performance among employees.
The Vietnamese banking sector has experienced significant growth, marked by the entry of international banks and various mergers This research focuses on the commitment levels and performance of bank employees in their roles By examining these factors, we aim to identify key elements that enhance employee performance and foster greater organizational commitment.
A study conducted by Memari, Mahdieh, and Marnani (2013) revealed a positive relationship between organizational commitment and employee job performance at Meli Bank in Iran The research identified three dimensions of organizational commitment—affective, continuance, and normative commitment—and demonstrated several positive correlations between these dimensions and job performance among employees.
Observation on previous studies (Fu & Deshpande, 2014) showed that organizational commitment had a significant direct impact on job performance
Therefore, the second hypothesis is proposed as follows:
H2: Organizational commitment impacts positively on job performance among employees in the Vietnamese banking sector
2.3.3 Quality of work life and organizational commitment
Research by Gupta (2013) demonstrates that employees with a favorable quality of work life exhibit greater commitment and foster long-term relationships with their organizations compared to those experiencing unfavorable work conditions Additionally, improved quality of work life correlates with heightened organizational commitment Supporting this, Fattahi et al (2014) provide further evidence of the positive relationship between quality of work life and organizational commitment, underscoring its significance in enhancing employee engagement and loyalty.
Research indicates a significant relationship between quality of work life and organizational commitment among employees in Malaysian firms (Normala, 2010) Studies by Birjandi et al (2013) and Farid (2015) further confirm that higher quality of work life correlates positively with increased organizational commitment Specifically, employees in the banking sector demonstrate that improved work life quality leads to greater commitment to their organizations Additionally, Sirgy et al (2001) emphasize that quality of work life has a positive influence on organizational commitment.
In the Vietnamese banking sector, a positive correlation exists between employees' organizational commitment and their attachment to various aspects of their work This suggests that as employees become more committed to their organization, their level of engagement and connection to their job increases.
H3: Quality of work life impacts positively onorganizational commitment among employees in the Vietnamese banking sector
Research model
This article proposes a model that illustrates the influence of work quality and organizational commitment on employee job performance within the Vietnamese banking sector.
Figure 2.1 Conceptual framework of the study
H1: Quality of work life impacts positively on job performance among employees in the Vietnamese banking sector
H2: Organizational commitment impacts positively on job performance among employees in the Vietnamese banking sector
H3: Quality of work life impacts positively onorganizational commitment among employees in the Vietnamese banking sector
RESEARCH METHODOLOGY
Research process
This thesis explores how the quality of work life and organizational commitment influence employee job performance within the Vietnamese banking sector The research encompasses a comprehensive process that includes a literature review, research design, qualitative methods, a main survey, and data analysis, all of which are detailed in the following sections.
Research design
The questionnaire consists of eight sections: personal information, survival needs, belonging needs, knowledge needs, affective commitment, continuance commitment, normative commitment, and job performance Each section utilizes 5-point Likert scales for rating responses.
Development of hypothesis, Research question
- Main test Questionnaire design, measurement scale
Reliability analysis Exploratory Factor Analysis Hypothesis Testing Model
The SEM analysis employs a widely recognized scale to assess employee attitudes regarding the influence of work quality and organizational commitment on job performance, utilizing a 5-point agreement scale ranging from strongly disagree (1) to strongly agree (5) To accommodate banking officers in Vietnam, the questionnaire was initially crafted in English and subsequently translated into Vietnamese by a bilingual academic, ensuring clarity of meaning for all respondents Prior to distribution, the questionnaire underwent a pre-test involving face-to-face interviews with five experienced banking professionals to confirm their understanding of the scale, allowing for necessary adjustments to enhance its suitability for the Vietnamese context The finalized questionnaire was then administered in the main survey.
The questionnaire of quality of work life is mentioned into three dimensions: survival needs, belonging needs, and knowledge needs
To measure these items, the study adapts the measurement given by Nguyen and Nguyen (2012) who suggest several questions The questions are as follows:
Construct Coding of variables Item
QS1 My job provides good health benefits QS2 I am satisfied with what I’m getting paid for my work
QB1 I have good friends at work
QB2 I have enough time away from work to enjoy other things in life QB3 I feel appreciated at work
QK1 I feel that my job allows me to realize my full potential QK2 My job allows me to sharpen my professional skills
QK3 My job helps me develop my creativity
The questionnaire of organizational commitment is mentioned into three dimensions: affective commitment, continuance commitment, and normative
To measure the affective commitment, the study adapted the measurement given
Fu and Deshpande (2014) who suggest several questions The questions are as follows:
Construct Coding of variables Item
AC1 I would be very happy to spend the rest of my career with this organization AC2 I really feel as if this organization’s problems are my own
AC3 I feel a strong sense of belonging to my organization;
AC4 I feel like ‘‘part of the family’’ at my organization AC5 I feel ‘‘emotionally attached’’ to this organization
AC6 This organization has a great deal of personal meaning for me
CC1 It would be very hard for me to leave my organization right now, even if I wanted to;
CC2 Too much in my life would be disrupted if I decided I wanted to leave my organization now;
CC3 Right now, staying with my organization is a matter of necessity as much as desire CC4 I feel that I have too few options to consider leaving this organization
CC5 One of the few serious consequences of leaving this organization would be the scarcity of available alternatives
CC6 If I had not put so much of myself into this organization, I might consider working elsewhere
NC1 I would feel guilty if I left the organization now
NC2 I do not feel any obligation to stay with my current employer
NC3 Even if it were to my advantage, I do not feel it would be right to leave my organization NC4 This organization deserves my loyalty;
NC5 I would not leave my organization right now because I have a sense of obligation to the people in it;
NC6 I owe a great deal to my organization
This study revised two questions in two variables in to negative questions to avoid bias The questions were revised as below:
Construct Coding of variables Item
AC4 I do not feel like ‘‘part of the family’’ at my organization
AC5 I do not feel ‘‘emotionally attached’’ to this organization
To measure job performance, this study use the four items Nguyen and Nguyen
(2012) Four questions are designed as below:
Construct Coding of variables Item
I consider myself an effective employee, consistently delivering high-quality work that satisfies both my own standards and those of my manager, who recognizes my efficiency Additionally, my colleagues view me as a highly productive team member, further affirming my commitment to excellence in the workplace.
Qualitative method
The researcher conducted in-depth interviews with five employees to assess their understanding of the questionnaires and to evaluate the appropriateness of the scale for research in Vietnam Additionally, the author sought suggestions from the interviewees to enhance the questionnaires Feedback from the respondents was collected to facilitate modifications, resulting in a clearer and more comprehensible survey questionnaire (See Appendix E).
Main survey
According to Hair et al (2009), the minimum sample size for statistical analysis should be at least five times the number of independent variables, ensuring reliability in results In this research, with 31 items, the required sample size is calculated as n = 5 x 31, resulting in a total of 155 participants.
According to Tabachnick (1996), the minimum sample size for multiple regression analysis should exceed n > 50 + 8m, where m represents the number of independent variables For this study, with six independent variables, the required sample size is calculated to be at least 98 To enhance the reliability and validity of the research, the initial target sample size was set at approximately 200 employees from the banking sector.
A total of 300 questionnaire forms were distributed to bank employees in Ho Chi Minh City using a mail survey method to minimize varied interpretations of questions The choice of mail and online surveys is due to their cost-effectiveness, ability to reach a large number of respondents quickly, and the convenience they offer participants in answering at their own pace while ensuring privacy (Mangione, 1995) Out of the 270 responses received via email, 259 questionnaires were deemed valid for analysis, while 11 were excluded—5 for incomplete answers and 6 for providing a single unique response to all questions.
Upon completing data collection, the analysis phase begins, where all accepted questionnaires are thoroughly reviewed for validity It is essential to implement reverse scoring for negatively-keyed items prior to calculating individual total scores and performing data analyses This study utilized SPSS Statistics version 20 for data analysis, and the data processing procedures are summarized as follows.
Cronbach’s Alpha is a widely recognized statistical measure used to assess the reliability of a scale by evaluating the correlation between its items This analysis helps eliminate irrelevant variables and reduces noise in the research process, ultimately determining the scale's reliability through the Cronbach’s Alpha coefficient (Hair et al., 1998) According to Pallant, this method is essential for ensuring the validity of research findings.
In 2001, it was established that scales are considered reliable when the Cronbach’s Alpha coefficient is 0.7 or above A low alpha value may indicate a limited number of questions, weak interrelatedness among items, or the presence of heterogeneous constructs.
Exploratory Factor Analysis (EFA) was employed to identify the number of factors and examine the relationships among independent variables, serving as a multivariable statistical technique that reveals the underlying structure of numerous variables (Hair et al., 1998) The primary goals of factor analysis are to summarize extensive information from multiple variables and to condense this data into a smaller set of factors (Hair et al., 1998) In this study, six dimensions were identified as influential on employee job performance, with factor analysis facilitating the creation of factors corresponding to each of the six measurement scales Furthermore, this analysis helped identify the factors that are most strongly correlated with employee job performance According to Pallant (2001), factor analysis is suitable for data that meets specific criteria.
The Kaiser-Meyer-Olkin value (KMO) is 0.6 or greater
The Bartlett’s test of inadequate is statistically significant: p < 0.05
The transmission coefficient variables (factors loading) is less than 0.5 or the difference between the two factors less than 0.3 will be disqualified
Stop Eigenvalue (representing the variance explained by each factor) greater than
1 and the total variance extracted (Cumulative Extraction Sum of Square Loadings) greater than 50%
Testing the reliability and validity of measurement model
Amos 20 ran for CFA with purpose of testing the reliability and validity of measurement model The CFA results indicated the model fit if Cmin/df was less than 03 with p-value larger than 5% The goodness of fit index (GFI) was a measure of fit between the hypothesized model and the observed covariance matrix The comparative fit index (CFI) analyzed the model fit by examining the discrepancy between the data and the hypothesized model, while adjusting the issue of sample size inherence in the chi- squared test of model fit A CFI value is more than 0.95 is good, more than 0.9 is traditionally, and more than 0.8 is sometimes permissible The root mean square error of approximation (RMSEA) avoided issues of sample size by analyzing the discrepancy between the hypothesized models, with optimally chosen parameter estimates, and the population covariance matrix A value of 0.1 or less was indicated and acceptable model fit Based on composite reliability (CR), the author evaluated the measurement scale’s reliability According to CFA results, average variance extracted (AVE) was used to conclude the convergent validity and correlation between items was used to identify the discriminate validity Then, structural equation modeling (SEM) tested the hypothesized model and estimated path coefficients for each proposed relationship in the structural model SEM is a comprehensive statistical approach to testing hypotheses about relations among observed and latent variables (Hoyle, 1995) Rigdon (1998) defined that SEM is a methodology for representing, estimating, and testing a theoretical network of (mostly) linear relations between variables.
DATA ANALYSIS AND DATA RESULTS
Preliminaries of data analysis
The survey participants, as detailed in Table 4.1, exhibit a diverse profile in terms of age, gender, job position, and bank type Notably, 54% of the employees are female, while 46% are male The predominant age group is 26-35 years, comprising 54% of respondents, followed by 39% in the 18-25 age bracket A significant portion of the workforce consists of credit officers at 49%, with back officers making up 24% Most employees have been with their company for 2 to 5 years (51%), while 22% have less than one year of experience In terms of monthly net income, 44% earn between 5 to 11 million VND, followed by 34% earning between 12 to 20 million VND The majority of employees work at state-owned banks (68%), with joint-stock commercial banks accounting for 31%.
Table 4.1 Summary of employees’ profile
No Items Scale Frequency Percent
3 Job at bank of respondents
4 Net income per month of respondents
5 Kind of bank of respondents
6 Years at the bank job of respondents
Reliability analysis
In this study, Cronbach’s Alpha was utilized to assess the reliability of the measurement scales, with an acceptable alpha coefficient defined as greater than 0.7 Items with a Cronbach’s Alpha coefficient below 0.7 and a corrected item-total correlation lower than 0.3 were excluded, resulting in the deletion of NC2 Ultimately, all factors in the research demonstrated satisfactory reliability, with alpha coefficients ranging from 0.810 to 0.893.
Variable Item-Total Statistics Reliability Statistics
Scale Variance if Item Deleted
Cronbach's Alpha if Item Deleted
Exploratory Factor Analysis
Following the assessment of Cronbach’s Alpha coefficient, the study proceeded with Exploratory Factor Analysis (EFA) to examine the relationships among internal variables A rigorous criterion was applied to eliminate factors with loadings below 0.5, while retaining components with an Eigenvalue greater than 1.0 The aim of EFA is to identify groups of items that exhibit strong interrelationships and are answered consistently by respondents, as outlined by Hair et al.
(1995), sample size should be 100 or greater Hence, sample size of this study which had
259 valid observations as shown detail in chapter 3, met the requirement for EFA analysis
The study commenced with 30 items across all variables, revealing a KMO value of 0.824, surpassing the acceptable threshold of 0.7 (Leech, Barrett & Morgan, 2005) This KMO test assesses whether there are sufficient items predicted by each factor Furthermore, the Chi-squared value of Bartlett's test was 4655.835, with a significance value of 0.000, which is below the statistically significant level of p
