ENHANCING EMPLOYEES’ JOB SATISFACTION AT CONSTRUCTION AND PROJECT MANAGEMENT NO 1. JSC

Above problems reflectthe level of dissatisfaction of employees with their current job, the causes of themcan stem from factors such as: “Salary and Welfare”, “Promotion”, “Reward andRec

NGUYEN DUY CUONG

ENHANCING EMPLOYEES’ JOB SATISFACTION AT

CONSTRUCTION AND PROJECT MANAGEMENT NO 1 JSC

MASTER OF BUSINESS ADMINISTRATION THESIS

HA NOI – 2022

NGUYEN DUY CUONG

ENHANCING EMPLOYEES’ JOB SATISFACTION AT

CONSTRUCTION AND PROJECT MANAGEMENT NO 1 JSC

Major: Business Adminnistration

MASTER OF BUSINESS ADMINISTRATION THESIS

Supervisor: DR NGUYEN QUOC DUY

HA NOI – 2022

My sincerely thank to my supervisor – Dr Nguyen Quoc Duy for hissupport and guidance do that I could be highly effective throughout carrying thisthesis

My deepest thank to all professors and teachers at the NEU BusinessSchool for teaching and imparting me valuable business administrationknowledge Being a student at the E-MBA Program is my pleasure

My warmest thank to all member and the executive Board of PCM1company, who have helped and facilitated me completing the study

My thank to my family and friends for their support and encouragementwhile doing this thesis

Hanoi, August 20, 2022

Nguyễn Duy Cương

LIST OF FIRGUES 6

LIST OF ChART 7

LIST OF TABLES 8

EXECUTIVE SUMMARY 9

Chapter 1: INTRODUCTION 1

1.1 Rationale 1

1.2 Research objective 2

1.3 Research questions 2

1.4 Research methodology 2

1.5 Research scope 6

1.6 Research structure 6

Chapter 2: THEORETICAL BACKGROUND ON JOB’S SATISFACTION 7

2.1 Definition of job satisfaction 7

2.2 Theories of job satisfaction 9

2.3 Importance of job satisfaction 19

2.4 Determinants of job satisfaction 22

2.4.1 Salary and Welfare 23

2.4.2 Promotion 25

2.4.3 Reward and Recognition 26

2.4.4 Leadership 27

2.4.5 Working Conditions 28

2.5 Research Model and Scale 30

2.5.1 Factors affecting employee‘s satisfaction 30

2.5.2 Hypotheses about the relationship between the independent variable and the dependent variable 30

2.5.3 Measurement scale of variables 31

Chapter 3: ANALYSING PCM1 EMPLOYEES’ JOB SATISFACTION 33

3.1 Introduction of Eurowindow Holding and Construction and project management No 1 JSC 33

3.1.1 Introduction about Eurowindow Holding JSC and Construction and Project Management No 1 JSC 33

employee job satisfaction 36

3.2 Respondents' profile 38

3.3 Scale verification 42

3.4 Exploratory Factor Analysis 44

3.4.1 Factor analysis with the independent variables 44

3.4.2 Factor analysis with the dependent variables 46

3.5 Regression analysis 46

3.6 Influential factor analysis 50

3.6.1 Analysis of Overall job satisfaction 50

3.6.2 Analysis of Promotion 51

3.6.3 Analysis of Reward and Recognition 51

3.6.4 Analysis of Leadership 52

3.6.5 Analysis of Working Condition 52

3.7 Sumary of findings 53

3.7.1 Analytical synthesis diagram 53

3.7.2 Achievements 53

3.7.3 Shoricomings: 54

3.7.4 Cause of Shortcomings 56

Chapter 4: SOLUTIONS TO ENHANCE PCM1 EMPLOYEES’ JOB SATISFACTION 58

4.1 Development orientation of PCM1 58

4.2 Solutions to enhance PCM1 employees’ job satisfaction 59

4.2.1 Solutions to enhance Leadership 59

4.2.2 Solutions to enhance Reward and Recognition 60

4.2.3 Solutions to enhance Promotion 60

4.2.4 Solutions to enhance Working Condition 62

References 65

APPENDIX 1: SURVEY OF EMPLOYEE'S JOB SATISFACTION AT PCM1 68

Figure 1.1: Research Process 3

Figure 2.1: Abraham Maslow's Hierarchy of Needs (1943) 9

Figure 2.2: ERG theory of Alderfer (1969) 11

Figure 2.3: Herzberg's two-factor theory (1959) 13

Figure 2.4: Theory X and Theory Y by Douglas McGregor (the 1960s) 15

Figure 2.5: Factors affecting employee‘s satisfaction 30

Figure 3.1: Factors affecting employee‘s satisfaction 53

Chart 3.1: Organization Chart 36

Chart 3.2: Statistics on Gender 38

Chart 3.3: Statistics on Age 39

Chart 3.4: Statistics on Qualification 39

Chart 3.5: Statistics on Position 40

Chart 3.6: Statistics on Department 40

Chart 3.7: Statistics on Seniority 41

Chart 3.8: Statistics on Income 41

Table 2.1: Attributes of "Salary and Welfare" factor 24

Table 2.2: Attributes of "Promotion" factor 26

Table 2.3: Attributes of "Reward and Recognition" factor 27

Table 2.4: Attributes of "Leadership" factor 28

Table 2.5: Attributes of "Working condition" factor 29

Table 2.6: Relationship between the independent variable and the dependent variable 30

Table 2.7: Measurement scale of variables 31

Table 3.1: Scale verification 42

Table 3.2: Model summary of regression analysis 47

Table 3.3: ANOVA of regression analysis 47

Table 3.4: Coefficients of regression analysis 48

Table 3.5: Analysis of Overall job satisfaction 50

Table 3.6: Analysis of Promotion 51

Table 3.7: Analysis of Reward and Recognition 51

Table 3.8: Analysis of Leadership 52

Table 3.9: Analysis of Working condition 52

Nowadays, Human resources are an important factor for a business's success,because according to experts, competitors can "copy" strategies, business methods,products and services, but talent cannot "copy" it However, the current economicdownturn has led to a decline in revenue, a shrinking market, resulting in manyproblems in human resources, such as: (1) Due to the impact of the covid 19epidemic, the company must arrange for employees to take rotational leave orunpaid leave; (2) Although KPIs are applied in job performance evaluation, a scalesuitable for each job position has not been built; (3) New leaders of somedepartments usually only stick with the business for 3-6 months; (4) Newemployees usually stick with the company for 6-12 months Above problems reflectthe level of dissatisfaction of employees with their current job, the causes of themcan stem from factors such as: “Salary and Welfare”, “Promotion”, “Reward andRecognition”, “Leadership” and “Working Conditions”.

According to the leader of the Human Resources Department: "PCM1'sleadership has also identified the problem and evaluated the causes to come up withappropriate solutions." The goal is to improve job satisfaction and increase workmotivation for current employees In addition, new and improved policies attractmore talents joining the organization to contribute to the development of thebusiness The company encourages employees who have the ability to conductevaluation studies and propose solutions to the management to solve the currentproblems of the business Besides, this is also a way for the management to collectopinions and needs of employees Based on the theoretical basis, combined with theemployee's resignation and lack of enthusiasm, are deeply rooted in dissatisfactionwith the job Therefore, the author evaluates that the study of job satisfaction is thekey to helping businesses solve current problems at PCM1 which is urgent and haspractical significance

The study was conducted to evaluate and identify factors affecting employees'

employee job satisfaction will be made Around the world, there are many scientistswho have researched and evaluated the level of employee satisfaction proven therelationship to influencing factors Combined with the actual status of theenterprise, the author proposes a research model on the impact of factors onmotivation on job satisfaction of PCM1 employees

The study collects secondary and primary data from PCM1’s internalinformation sources Secondary data are the company's current policies on humanresource management, company records related to human resources such as trainingcourses, etc Primary data includes survey by questionnaire, in-depth interviewswith each employee The study carried out 200 questionnaires distributed to alldepartments of PCM1 Company and obtained 191 questionnaires Collected data isprocessed by SPSS 20.0 software with reliability test, EFA test and multipleregression model to analyze the impact of factors affecting job satisfaction of PCM1employees

The research results show that employees’ satisfaction is at medium level with2.8 point at Linkert 5 level The factors tested in the proposed model all have arelative impact on the employee's work motivation, but there are 4 of them affectingsignificantly job satisfaction In which, “Leadership” is the greatest influence,

“Working Condition” is the lowest effect, “Reward and Recognition” &

“Promotion” have medium impact and the factor is “Salary and Welfare” need to beconsidered and investigated further in other studies There are four reasons leading

to this situation, including (1) Management has not really paid attention to the level

of employee satisfaction, (2) The company has not developed a recruitment andtraining policy for core personnel in the long term, (3) Remuneration policies andworking environment at the company are still inadequate during the implementationprocess, (4) The leadership style is still conservative and mechanical These are thecentral point that businesses need to address to overcome the current problems of

improve job satisfaction of PCM1 employees Firstly, improving the relationshipbetween employees and employers Secondly, Improving issues so that policies can

be applied in practice and implementation Thirdly, making detailed annual trainingplans and regularly organizing training courses for employees with relevantknowledge about business and application software at work Finally listeningemployees' opinions to continue to improve the safe and better workingenvironment By applying these solutions, PCM1 can increase employeemotivation, attract high-quality human resources, and improve labor productivity

and efficiency

CHAPTER 1: INTRODUCTION1.1 Rationale

In the current period, the perception of business managers towards employees inthe enterprise has had a great change Human resources are an important factor forthe success of an enterprise, because according to experts, competitors can "copy"strategies, business methods, products, services, but talented people cannot be

"copy" This is an extremely valuable asset and resource that determines the success

or failure of a business

First of all, in the past 100 years, there have been a lot of research works carriedout with different scales and research methods worldwide on the relationshipbetween job satisfaction and efficiency activities of the organization and most ofthose studies show a positive relationship between the two factors Among them arethe research groups of De Dreu & Beersma in 1997; Baard & Dect 2004,… with themethod of data collection by questionnaire and data processing by SPSS software

Or the 2004 study by Saari & Judge by the method of factor analysis, correlationanalysis and regression analysis and the study by Indermun & SaheedBayat in 2013with the analytical method using the 0-order correlation and Hierarchical regressionanalysis gave similar results

The results of studies taking place in different time points, places and extremelydiverse research methods are testament to the interrelationship between jobsatisfaction and performance

In addition, the Construction and Project Management Joint Stock Company No

1 (PCM1) also encountered a number of situations such as employees only stickingwith the company for a short time (under 02 years), some departments were always

in poor condition staff shortage or continuous recruitment of new personnel.Especially in the two years from 2020 to now, due to the impact of the COVID-19epidemic, which has adversely affected income, remuneration and workload, theshortage of personnel has become even more serious According to internal statistics

of the Human Resources Department, the number of human resources before the

pandemic occurred met about 80% of the needs of the entire organization And thisnumber at the present time (March 2022) is only 70% At the same time, the lack ofcommitment to the business comes from both middle management and ordinaryemployees The above issues have partly shown dissatisfaction from employeeswith the company's policies and human resource management.

PCM1 is a growing business, seeking and asserting its position in the market.Along with the requirements of future business strategy orientation, the companyneeds to pay more attention to human resource management, which is still revealingmany weaknesses The study of the job satisfaction level of PCM1 employees ispractical and necessary to provide solutions in line with the goals of maintainingand developing current human resources, and attracting more quality employees.contribution to building the organization

1.2 Research objective

Research achievements of the article should achieved the following:

- Review literature to identify factors affecting employees' job satisfactionapplicable for the Construction and Project Management No 1 JSC

- Analyse PCM1 employees' job satisfaction

- Suggest solutions to enhance PCM1 employees' job satisfaction

1.3 Research questions

In order to achieve the above achievements, the author needs to provide answers

to the following questions

- What are possible factors affecting PCM1 employees’ job satisfaction?

- How is the job satisfaction of PCM1 staff and affected by what factors??

- What solutions are offered to improve the job satisfaction of employees atPCM1??

1.4 Research methodology

1.4.1 Research process

Figure 1.1: Research Process

Source: The author’s consumption

1.4.2 Data collection method

This thesis combined both of Qualitative research method and Quantitativeresearch method to collect and analyze survey data, as well as test the proposedmodel Both of Qualitative research method and Quantitative research method wereimplemented through analysing the collection of Secondary data and Primary data

Specifically, the research process was conducted according to the followingsteps:

Secondary data collection

Collecting data from external sources of journal articles and review articlesabout the construction industry and company in Internet Additionally, Internalsources are taken from documents, statistics and internal information of PCM1JSC, such as: Regulations on emulation and commendation (843/2021/EWH –promulgating: 06/08/2021), Training Regulations (665/2020/EWH –

Research Objectives

Theoritical

Background

Building a questionnaireTesting investigationAsking an expertAdjusting the questionnaire

Data collection Collecting primary data

Collecting secondary data

Data analysis

Cronbach alpha, EFA

M ultivariate regression test

Conclusion and Suggested solutions

promulgating: 05/11/2020), Labor regulations (374/2020/EWH – promulgating:13/08/2020)

Primary data collection

Primary data used for this study were collected from:

In-depth interview

Qualitative research methods not only answer the what, where, and whenquestions but also the why and how questions Therefore, in this study, thequalitative method is carried out through in-depth interviews with 04employees including the Director of Human Resources, the HR specialist, theDirector of the Project Management Department and the staff member.Progress monitoring department of the Construction and ProjectManagement No 1 Joint Stock Company

The purpose of in-depth interviews is to determine the characteristics andwork characteristics of each department and find out attributes to measurejob satisfaction Through the interview, the author has approached with theirsubjective opinions on the current situation, the causes of dissatisfaction,orientation with human resource policies and views on the solutions offered

Questionnaire survey

Releasing 200 questionaires in online and offline method to theemployees of PCM1 The traditional method of distributing questionnaires atthe company's office to employees are the main method applied for almostsamples in this survey Besides, survey participants are contacted by phone,email to fill the questionnaires as short interview or answered by google

form observation in online

Survey participants: Employees currently working at PCM1

Survey objective: Assess the current status of employee satisfaction and

determine the factors affecting it at the Construction and Project ManagementJoint Stock Company No 1

Sample size and sampling method: The study conducted a stratified

sampling method to select 200 people including ordinary employees and leadersfrom all departments in the company

Survey format: The author released 200 online and offline questionnaires for

the staff of PCM1 The traditional method of distributing questionnaires at thecompany's office to employees was the main method applied to most of thesamples in this survey In addition, survey participants were contacted by phone

or email to fill out the questionnaire in the form of a short interview or answer

by observing the form on online google

Questionnaire design: The initial questionnaire was designed based on the

results of a number of previous scientific studies to determine the factors thatcan affect the employee's satisfaction with the job The mentioned factorsinclude: “salary and bonus”; “working conditions” (Kumar, 2014), “reward andrecognition” (Greek & Usman, 2010), “Leadership style” (Becker & Gerhart,1996) and “promotion opportunities” (Markos & Sridevi, 2010)

After conducting a trial survey with a group of 20 people representing thesurvey sample and testing the model using SPSS 20.0 software, the authorfound that factors such as “Salary and Welfare”, “Working conditions”,

“Reward and Recognition”, “Leadership” and “Promotion” had impact onemployee satisfaction Combined with the in-depth interviews, the intervieweesall agreed that factors had an impact on their job satisfaction

The answers to the questions are designed according to the Linkert scale of 5increasing levels as follows: Strongly Disagree (1 point); Disagree (2 points);Neutral (3 points); Agree (4 points) and Strongly agree (5 points)

1.4.3 Data analysis

Using the Cronbach’s Alpha coefficient, Explore factor analysis method(EFA method), Regression Analysis to verify the level of the affectingfactors in Job Satisfaction

The survey results were descriptive statistics using Excel software.Collected data will be analyzed by SPSS 20.0 software for the purpose ofchecking Cronbach alpha coefficient, total variable correlation andeliminating variables with small weight At the same time, the multivariableregression equation testing method is also used to test the appropriateness ofthe model as well as the theoretical correlation value

1.5 Research scope

Research object: Job satisfaction and the factor affecting to job satisfaction of

employees of PCM1 Company's management departments

Tíming: Secondary data was collected from 2019 to 2022.

Primary data was collected from 1st October 2020 to 15th March 2021

Location: The research was implemented at 2 Ton That Tung, Dong Da district,

Ha Noi, Viet Nam

Content: Enhancing satisfaction with job of PCM1’s employee.

1.6 Research structure

The thesis consists of four Chapters:

 Chapter 1: Introduction

 Chapter 2: Theoretical background on job’s satisfaction

 Chapter 3: Analysing PCM1 employees’ job satisfaction

 Chapter 4: Solutions to enhance PCM1 employees’ job satisfaction

CHAPTER 2: THEORETICAL BACKGROUND ON JOB’S

SATISFACTION2.1 Definition of job satisfaction

Prior to the 1990s, it was believed that the organization mainly depended onexternal sources to generate profits But high quality products and rightrequirements cannot meet the needs of customers without human resourcesdedicated to the job And employee satisfaction is one of the factors that support theorganization to enjoy profits So what is called job satisfaction? In the past, manyresearchers have given their views on this concept

One of the first and most cited job satisfaction definitions is Robert Hoppock(1935, cited by Scott et al., 1960) Hoppock said that measuring job satisfaction intwo ways:

(a) measure job satisfaction in general

(b) measure job satisfaction in various job related aspects

He also said that job satisfaction in general is not merely the sum of thesatisfaction of different aspects, but job satisfaction in general can be considered as

a separate variable

The overall satisfaction level at work:

Victor Vroom of the Yale School of Management in 1964 stated that Jobsatisfaction is an orientation of the emotions that employees have towards therole they are performing in the workplace In other words, job satisfaction refers

to “how well results meet or exceed employee expectations” He also believesthat it is an essential ingredient to motivate and motivate employees towardsbetter performance

Weiss (1967) defines that job satisfaction is an attitude of work expressed byfeelings, beliefs and behaviors of workers

Hackman và Oldham (1975), employee satisfaction is a value chain ofawareness and experience that incorporates core job characteristics such as job

skills, job nature, job importance, decision making and countermeasures.Regenerating work motivation.

Locke (1976) argues that job satisfaction is understood as an employee'enjoyment of their job

Quibb and Staines (1979) suggest that job satisfaction is a positive response

to work

Spector (1997) job satisfaction is simply how people like their work and theaspects of their work Because it is a general judgment, it is an attitude variable.Ellickson and Logsdon (2002), job satisfaction is generally defined as thedegree to which employees like their jobs, which are attitudes based onemployees' perceptions (positive or negative) about their job or workingconditions To put it more simply, the more the working condition meets theneeds, values and character of the employee, the higher the job satisfaction.Kreitner and Kinicki (2007) job satisfaction primarily reflects the degree towhich an individual enjoys his or her job That is the emotion or emotion of thatemployee for his or her job

Satisfaction level with the work components:

Smith, Kendal and Hulin (1969), the level of satisfaction with thecomponents or aspects of a job is the attitude that influences and acknowledgesemployees' different aspects of work (nature of work; training and advancement;their superiors; colleagues; salary)

Schemerhon (1993, cited by Luddy, 2005) defines job satisfaction as anemotional and emotional response to different aspects of an employee's job.Thus, it can be seen that many definitions of the concept of "job satisfaction"have been given by researchers, however, within the scope of this thesis, the authorthinks that job satisfaction is the like the nature of the work assigned and the feeling

of satisfaction when the workplace expectations of employees are met Thesedesires can be salary and welfare; the possibility of career advancement orrecognition from colleagues, leaders, working condition, etc Satisfaction stems

from three possibilities: from the difference between what the job provides andwhat the individual expects; from the extent to which a job fulfills an individualneed; and from the extent to which other individual values are met.

2.2 Theories of job satisfaction

Maslow's Hierarchy Theory (1943)

Psychologist Abraham Maslow (1908-1970) is considered one of the pioneers

of the school of humanistic psychology, this school is considered the third forcewhen the world At that time, the world was aware of two main schools ofpsychology: Psychoanalysis and Behaviorism

In 1943, he developed one of the theories whose influence is widelyrecognized and used in many different fields, which is the "hierarchical theory ofhuman needs" Maslow's hierarchy of needs theory can be summarized asfollows: (1) Human beings have wants and desires which, when unsatisfied, mayinfluence behavior, (2) Differing levels of to human life are recorded in ahierarchical structure of needs, (3) Needs at higher levels in the hierarchy areheld in abeyance until lower levels needs are at least minimally satisfied and (4)Needs at higher levels of the hierarchy are associated with individuality,humanness and said health His research suggests that in order for higher-levelneeds to appear, lower-level needs must be satisfied first

Figure 2.1: Abraham Maslow's Hierarchy of Needs (1943)

Source: Maslow's Hierarchy Theory in 1943

Maslow's hierarchical demand theory is applied in meeting employeesatisfaction: Biological and safety needs are expressed through income andwelfare Social needs and respect are expressed through the relationship betweensuperiors and colleagues And the need to express yourself is expressed throughthe element of autonomy at work

Although Maslow's hierarchical scale was built in 1943, its application inmanagement is still highly appreciated by managers around the world inimproving and satisfying employee satisfaction Business leaders can applyflexibly to suit the conditions of the business Maslow's hierarchy of needstheory has shown that, in order to motivate employees, managers mustunderstand what level of need they are at From there, managers must come upwith appropriate solutions to satisfy the needs of employees and at the same timeensure organizational goals are achieved Therefore, managers must constantlyexamine what urgent needs will motivate employees and how to motivate them.When Maslow's hierarchy of needs is applied to employees' job needs,biological and safety needs are expressed through income and benefits In orderfor employees to further develop their abilities, the company must first satisfytheir basic needs such as: Salary, reasonable remuneration, etc Social needs andrespect are shown through the relationship between superiors and colleagues.And the need for self-expression is expressed through rewards and recognition.Specifically applied in corporate governance: The employee's income needs to

be done and provided enough for employees to work with peace of mind; Forthe 3rd and 4th floors, the company should create and apply human resourcemanagement policies between all levels of employees as well as buildrelationships between members in the business In today's businesses, they oftenorganize their employees to participate in team building activities, travel, etc tosatisfy the needs at this level and build a spirit of solidarity among employees

pellets together For the last tier requires proper recognition and reward for eachemployee's contribution.

ERG theory of Alderfer (1969)

ERG theory is a theory in psychology proposed by Clayton Alderfer ClaytonAlderfer developed Maslow's Hierarchy of Needs into a three-factor motivationmodel known as the ERG model In this model, the letters E, R, and G eachrepresent a different human need: to exist, to relate, and to grow The ERGmodel is a content theory of motivation

Figure 2.2: ERG theory of Alderfer (1969)

Source: ERG theory of Alderfer in 1969

In Maslow's model, individuals remain at a fixed level of need until theysatisfy that need This means that individuals in the workplace should aim tosatisfy their current needs and that leaders and managers should focus onhelping their team members achieve a certain level of need specific demand at atime

However, Alderfer's ERG Theory of Motivation drives this thinking.According to Alderfer's model, the needs of workers can also occur at all three

levels at the same time, and one need can be compensated for by the other if it isnot satisfied by the worker or the high need is not met satisfied, the desire tosatisfy a lower level of need will increase For example, an employee is notsatisfied with the level of difficulty of the job they are doing but on the contrarythey are compensated when receiving commensurate salary and benefits Itssuitability even if the high-level needs are not satisfied, the job still ensures thelow-level physiological needs, the individual will focus on these needs.Therefore, individuals should not focus on one level of need at a time Instead,they may want to balance their momentum across levels Similarly, leadersshould not focus on helping their team members satisfy one level of need at atime Instead, they should be aware of the mix of needs that people might haveand help their team members progress in relation to the mix of needs, which willchange change over time.

Thus, Alderfer's ERG theory is different from Maslow's theory of needs, threeneeds are considered on three aspects and all appear at the same time and areapplied to measure employee satisfaction

Herzberg's two-factor theory (1959)

This theory was proposed by Frederick Herzberg - a psychologist interested

in the correlation between employee attitudes and work motivation and is one ofthe most important theories related to motivation and satisfaction at work (Dion,2006) This theory has been and is being widely applied by business managers

To develop the two-factor theory, Herzberg interviewed 203 mathematicians andengineers, mainly based on survey results and investigative analysis conducted

in Pittsburgh, Pennsylvania, USA The selection of the above two subjects forinterview is explained by the importance of these occupations in businessactivities in the US Herzberg's discovery came as a big surprise because itupended conventional wisdom Managers often think that the opposite ofsatisfaction is dissatisfaction But Herzbeg argues that the opposite ofdissatisfaction is not satisfaction but not dissatisfaction and the opposite of

satisfaction is not dissatisfaction but dissatisfaction Factors related to jobsatisfaction are called motivators - internal factors Factors related todissatisfaction are called Hygien Factors - extrinsic factors.

Figure 2.3: Herzberg's two-factor theory (1959)

Source: Herzberg's two-factor theory in 1959

Maintenance factors are factors that cause dissatisfaction in the workplace.They are factors external to or independent of the work; and is related to thingslike wages, job stability (ability of employees to keep their jobs, not get fired),corporate policies, working conditions, leadership competence and relationshipsbetween supervisors, subordinates and co-workers According to Herzberg, thesefactors do not motivate employees However, when they are flawed orincomplete, retention factors can make employees very unhappy

The second group is motivational factors They are tied to employeemotivation and arise from the intrinsic conditions of the job, which depend onthe job itself Factors of motivation include responsibility, job satisfaction,recognition, achievement, growth and promotion opportunities

Managers must ensure that they provide enough of the factors that maintainand build employee satisfaction or motivation In essence, retention factors arenecessary to ensure subordinates are not disgruntled, and motivation is necessary

to push employees to work towards higher levels of performance.

In fact, many groups choose two-factor models to conduct research and test.Although the results are not exactly the same as Herzberg's due to differences inoccupational characteristics, research subjects and labor intensity, the abovetheory is still a valuable and widely accepted reference model

Research of Foreman Facts (1946)

Research on employee satisfaction includes 10 motivating factors as follows:

Appropriate regulations: Define clear responsibilities, fair and consistent

discipline throughout the organization, discipline implemented in a way thatmotivates workers rather than frustrating them

Empathy with the individual problems workers: The superiors realize that

employees are having problems and ready to help

Interesting work: Challenging work, creating opportunities for employees

to learn and develop

Participate and share in the work: Workers can exchange, debate, solve

problems, plan, share information, ideas, work experience Workers want to

be connected, feel involved, shared by their superiors whether they arefeeling frustrated or excited about the project they are doing, participating inmaking decisions related to themselves, being shared ideas and be cared for

by others

Stable job: (the position of the employee) is important for the

organization, the operation of the organization is stable, the financial situation

is good

Working conditions: Safe working environment, adequate tools to work,

reasonable working hours, happy and well-organized workplace

Salary: The compensation is at least worthy of the results of work, the

salary is high compared to the general level of the market

Recognized: Employees are rewarded for part-time jobs, collective

recognition for what they can do

Superior: Superior integrity, grasp the work, protect the rights of workers,

trust and respect workers

Opportunities for advancement and career development: There are

opportunities for advancement, being assigned more responsibilities, havinghigher titles, being developed in careers

Theory X and Theory Y by Douglas McGregor (the 1960s)

In the 1960s, social psychologist Douglas McGregor developed twocontrasting theories that explain how managers' beliefs about what motivatestheir employees can affect their management style He called them “Theory X”and “Theory Y”

Figure 2.4: Theory X and Theory Y by Douglas McGregor (the 1960s)

Source: Theory X and Theory Y by Douglas McGregor in the 1960s

Theory X refers to an authoritarian and somewhat pragmatic managementstyle Theory X managers assume that workers are unmotivated and dislikeworking by nature They also believe that all employee actions must bemonitored and held accountable for their actions This ensures that the individualwill receive a reward or punishment depending on the negative or positiveoutcome Performance and compensation evaluation must be based on tangibleresults such as sales figures, number of products produced by employees and

these results are used to control and track employees According to McGregor,organizations with a Theory X approach tend to have multiple levels ofmanagement and supervisors to supervise and direct workers Authority is rarelydecentralized, and control remains firmly centralized Although Theory Xmanagement style has largely fallen out of fashion in recent times, largeorganizations may find its adoption inevitable given the sheer number of peoplethey employ and deadlines they must meet.

In contrast to Theory X, Theory Y managers consider their employees or theirsubordinates to be one of the most valuable assets to the organization becauseemployees are not solely responsible for the work their job but go the extra mile

to deliver better results without requiring supervision by their manager toproduce a better output However, theory Y states that employees must get theirmanager's approval to perform the task as it ensures productive and efficientoutput in line with company standards The decentralized, participatorymanagement style of employees allows them to collaborate, contribute andpropose options to help build and improve the organization Evaluation is stillcarried out continuously for the purpose of encouraging and motivating, therebycreating promotion opportunities for employees regularly Theory Y has becomemore popular among organizations This reflects workers' increasing desire formore meaningful careers that provide them with more than just money It's alsoviewed by McGregor as superior to Theory X, which, he says, reduces workers

to "cogs in a machine," and likely demotivates people in the long term

Theory of Motivational Needs by Meclelland (1961)

David C McClelland, an American psychologist, proposed the theory ofneed to motivate work in 1961 According to him, in the working process,individuals are strongly influenced by three factors that have an influence.influence and influence each other The three factors, also known as the threeneeds, are: achievement, power, and alliance

Achievement motivation: A person with a need for achievement often desires

to accomplish challenging goals with his or her own efforts, enjoys competitivesuccess, and expects clear feedback on his or her performance clear Peoplewith a high need for achievement are more motivated to work Some commoncharacteristics that reflect people with a high need for achievement include (1) Aconstant desire to perform tasks that demonstrate personal responsibility; (2)Tendency to set high goals for themselves; (3) High demand for immediate,specific feedback; (4) Quick, proactive in their work.

Authority/power motivation: People with a need for power desire to

influence, influence and control resources and people if beneficial to them

Affiliation motivation: The need for alliance makes people strive for

friendship, prefer cooperation instead of competition, desire to buildrelationships based on the spirit of mutual understanding

In fact, people with a high need for achievement will succeed in businessactivities But someone with a high need for achievement doesn't necessarilymake a good manager, especially in large organizations Because, they only carefor themselves to do good without supporting others to also do good.Meanwhile, the needs for power and alliance are closely related to success inmanagement

McClelland's theory shows that in order to encourage people to work, leadersmust understand what types of needs are strong and weak under theirsubordinates in order to have measures to satisfy the needs of employees whileensuring the organization's goals The results of studies on the needs andmotivations of people show that the ways of assigning work, the level ofdifficulty, the complexity of the work for each person and the leadership styleneed to be special Pay attention if employers want to leverage the performance

of highly motivated people In addition, building a work environment oriented

on achievement values is also a good measure to form and develop themotivation for success in employees

Research by Paul Spector (1997)

Although the JSS (Job Satisfaction Survey) model proposed by Spector in

1985 is very famous and is used to measure job satisfaction of employees.However, the JDI (Job Descriptive Index) model used to measure employeesatisfaction in the manufacturing sectors gives quite low results Therefore, in

1997 Spector adjusted and launched a separate model to measure the satisfaction

of employees in the service sector In its new model, Spector has given 9important factors to evaluate employee satisfaction and their attitudes: (1)Salary, (2) Promotion opportunities, (3) Management/supervision, (4) Benefits,(5) Recognition of achievements, (6) Operational procedures, (7) Colleagues, (8)Nature of work, (9) Feedback This result is developed and applied mainly inhuman resources organizations of service companies, non-profit organizationssuch as hospitals, health care centers, etc

Spector's JSS model is highly regarded in both research and practice.According to Price (1997) said that JSS is the tool of choice for studiesmeasuring employee satisfaction at work In just the last 20 years of the 20thcentury, JSS was used in more than 600 published studies Therefore, this studyclosely follows Spector's model, which has 9 factors affecting job satisfaction,

he defines these factors as follows:

Salary: Ensure fairness in paying employees.

Promotion: Employees always have equal opportunities for advancement Management/supervisor: Supervisors must be competent and fairly evaluate

employees In contrast, the significant influence from the monitoring process has

a significant influence on employee satisfaction and commitment to theorganization

Welfare: Insurance, vacation/holiday, other allowances.

Acknowledge achievements: Management needs to properly evaluate, show

respect and acknowledge with rewards or gifts to recognize merit

Operational procedures: Specific and feasible regulations, policies,

procedures and internal regulations Avoid using cumbersome regulations and

Colleagues: Colleagues in the same team and in the same organization must

demonstrate competence, value, and employees always feel comfortableworking with them

The nature of work: Employees feel interesting and valuable when

performing the tasks they are doing, these jobs always give them a sense ofexcitement In addition, the nature of the job is also assessed through the level ofpressure and the importance of this job

Feedback: Employees are always sharing timely, transparent information

within their organization Ensure timely communication of necessaryinformation within the organization to employees In addition, this mechanism is

a form of training on procedures and training for employees

2.3 Importance of job satisfaction

Job satisfaction is the most frequently studied topic among organizationalresearchers This is an important topic among academic researchers and is astandard frequently followed by practitioners in organizations So why is jobsatisfaction so important? The importance of job satisfaction should be seen fromthe perspective of employees and employers:

more responsible and seek to repay the company by producing better results tocontinue to receive due recognition from the company company.

Encourage employee creativity and innovation:

Creativity is not something that comes naturally to everyone Hennessery andAmabile said in their 2010 research paper that “people are most creative whenthey are primarily motivated by the interest, enjoyment, satisfaction, andchallenge of their own work” Job satisfaction in the workplace leads toinnovation and creativity in work, enhances service delivery, reduces employeeturnover, and improves mental and physical health of employees also increaseaccordingly Job satisfaction, part of the joy of life; Impact on people's emotions

at work, at the same time, work is an important part of life, then the effect of jobsatisfaction on overall life satisfaction (Saatchi, 2003)

With the ability to think creatively and out of the box, employees are morelikely to come up with unique and creative solutions to the obstacles they face.This eagerness to solve problems can lead to new ways to accomplish tasks andadd to business operations more efficiently It is creativity that keeps businessesmoving forward with new ideas and innovations This includes more than newproducts or services, it includes streamlining efficiency and productivity

For Employers:

Employee job satisfaction is an important aspect of getting the best out ofthem A satisfied employee always contributes more to the company, helpscontrol attrition and helps the company grow Employee satisfaction should beseen in both the short and long term

In the short term, satisfaction directly leads to work motivation andindividual-organizational fit It is important that employees see the positivity inthe company from the very first day of employment, otherwise it will take a longtime for them to change

In the long run, satisfaction brings value to employee performance.Employees who feel satisfied with their work will have a better attitude,

dedication, dedication to the company, and at the same time actively explore andlearn to develop themselves at work From there, the working process isoptimized, reducing process risks because employees will be more responsibleand enthusiastic in their work, they will always strive to best complete theassigned work This not only helps to increase overall productivity, achievepreviously set strategic goals, but also saves recruitment costs and time to trainnew people because workers have less need to find other suitable jobs moremean.

Moreover, it also helps to maintain the stability of human resources in theenterprise, contributing to improving the reputation of the business outside themarket The feeling of satisfaction helps employees feel secure to contribute, notneglect their work to look for other better job opportunities Even when badconditions happen to the business, most of them will still be loyal to theirdedication because of their belief in the company's vision and leadership Anorganization consisting of long-term employees will bring a distinct culture andhigh intrinsic value

Satisfied employees will also show a higher spirit of commitment to thebusiness, they will create a tendency to act positively, perform excellently atwork, and have a sense of building and preserving the image that they have Ifthe employee is not satisfied but continues to work for some reason, it will causeeven more harm An employee will grow to hate the organization more andmore, for example, if he or she receives a bad review with the root cause behindtheir disappointment but the employee is likely to continue to view the criticism

in a different way tend to stigmatize individuals and companies that do notappreciate their worth Dissatisfied employees can transmit their negative viewsabout the company to the outside world This will make those who want to jointhe company become more afraid and the reputation of the organization will also

be damaged

A bad employee in an organization is not an employee who doesn't get the job

done, but an employee who just gets the job done at a mediocre level Directorscan easily fire an employee who doesn't get a job done or is underperforming.But with an employee working at normal performance, completing the work at

an acceptable level, it is completely different With the same salary cost, anemployee who is not satisfied with the assigned work will bring aboutacceptable work performance, but the opposite will happen to an employee whofeels satisfied with the job at hand do Satisfaction brings motivation to helpthem complete the work better than acceptable, work efficiency is also pushed

up This results in higher profits for the business

Thus, job satisfaction brings benefits to both the employee and the employer.However, similar to the relationship between the supply curve and the demandcurve, in order for both enterprises and employees to benefit from job satisfaction,the enterprises themselves need to see the existing problems of the employees.company and find a "crossover" solution that harmonizes the interests of bothparties

2.4 Determinants of job satisfaction

According to the Association for Human Resource Management - SHRM(2009), the employee satisfaction scale for businesses is arranged in the followingorder of priority:

A group of affected factor scales, including: Job safety, Welfare,

Compensation / compensation, Opportunity to use working skills, Feeling safe inthe working environment;

The group of factors measures factors according to career development,

including: Advancement opportunities in the organization, Career developmentopportunities, Development system,

A group of scale factors based on the relationship between work and leadership, including: Communication problems between employees and superiors,

Decision power and independence at work, Evaluation of work progress ofemployees, Working relationship with middle management

Group of factors about working environment, including: Flexible balance

between life and work, Very interesting work, Social responsibility in theorganization, Acceptance of a green working environment, Organizational culture,Working relationship with colleagues, Contributing efforts to the organization'sbusiness goals, Current job, Diversity of work

2.4.1 Salary and Welfare

Salary

In labor relations, salary is the content of special interest to the parties,deciding the stability and sustainability of the labor relationship From aneconomic perspective, salary is the monetary expression of the value of laborpower, which is the amount that the employer pays to the employee when thework is completed as agreed For employers, wages are one of the productioninputs, forming production costs, so employers need to balance in order toachieve the goal of profit in investment activities investment, production andbusiness

Wages are defined by the International Labor Organization in Article 1 ofConvention No 95 of 1949 on the protection of wages as follows: “Wages areremuneration or income, whatever name or measure may be expressed in cashand fixed by agreement between the employer and the employee or by nationallaw, payable by the employer to the worker under a contract of employment, inwriting or orally for work done or to be done, or for services done or to bedone"

Welfare

According to the International Labor Organization (ILO), employee welfarecan be understood as “all kinds of facilities, services and amenities built under acommitment to create conditions for employees to work in a healthyenvironment, as well as taking advantage of the benefits available to improvehealth, well-being and productivity.”

For Vietnamese enterprises, welfare is often understood as insurance,

pensions, scholarships, etc., and health-related programs such as safety and otherbenefits of employees when working in Vietnam work at the enterprise,including certain financial remuneration that the employee will receive inaddition to the main remuneration.

The influence of Salary and welfare factors on employee satisfaction

A study conducted by Ellickson and Logsdon (2002) entitled “Determinants

of job satisfaction of municipal government employees”, reflected that the jobsatisfaction of employees was significantly affected by perceived jobsatisfaction employee satisfaction in terms of salary and benefits A good salary,bonus and welfare policy, enough to meet living needs and having an extrasavings will bring a sense of peace of mind, and work comfort, helping toincrease productivity as well as satisfaction through ensuring ensure workersand their families are protected and supported when needed

Factor “Salary and Welfare” can be measured through the following attributes

Table 2.1: Attributes of "Salary and Welfare" factor.

Salary and Welfare are relatively

competitive compared to similar positions

at companies in the same industry

Spector (1985)

SW

3 Salary is enough to pay for basic living Wiley (1997)

SW

4 Salary is paid in full and on time

Bhattacharya & Mukherjee

(2009)

SW

5 Employee welfares are fully implemented

Mullany and fortifications

(2007)

SW

6

The company has a clear and reasonable

salary increase policy

Nguyen, Taylor, &Bradley, (2003) / Harter

(1978)

Source: The author’s consumption

2.4.2 Promotion

Career advancement is basically the opportunity to be promoted to a higherposition, or given more responsibility in the current job position It includesmore than getting a promotion including experience, training, education, etc of

an individual Promotion is understood as the development of an employee's role

in the organization and it leads to an increase in qualifications, responsibilities,status, increased financial benefits and many other opportunities

The influence of Promotion factors on employee satisfaction

Many researchers believe that if there is a promotion opportunity, jobsatisfaction will increase and vice versa (Levinson, 1983; Tutuncu and Kozak,2006) According to Forbes' Victor Lipman, clear opportunities and a careeradvancement plan are "especially powerful" motivators for employees Talkingabout his observations as a manager at many companies, Lipman notes, “Attimes when career paths are clear, individuals tend to be more motivated, withgoals in mind tangible goals to aim for At times when career advancementplans are dim or nonexistent, individuals tend to be less motivated, less focused,and more uncertain This is also clearly shown in the "Report on RecruitmentDemand and Labor Supply in 2018 and Forecast for 2019" the reason why 74%

of workers will change jobs in 2019 is: No chance promotion That's why itmakes business sense for organizations of all sizes to take the time to developand maintain carefully structured career advancement plans Employees aremore likely to stay engaged when they believe their employers care about theirgrowth and provide avenues for achieving personal career goals while fulfillingthe company's mission Providing employees with ongoing and rewardingadvancement opportunities enhances their skills and knowledge so that they canbecome proficient in their current job, advance, and move into new or differentpositions It can also have a direct impact on the entire organization by

improving morale, career satisfaction, motivation, productivity, andresponsiveness in meeting departmental and organizational goals

Factor “Promotion” can be measured through the following attributes

Table 2.2: Attributes of "Promotion" factor.

PR2 Employees clearly understand the factors

considered for promotion

Smerek and Peterson

(2007)

PR3 Internal employees are actually considered

for open positions

Smerek and Peterson

(2007)

Source: The author’s consumption

2.4.3 Reward and Recognition

Employee morale determines product quality and work efficiency Amongthe factors that help improve employee morale, rewarding and recognizingemployee contributions emerges as an effective and easy way to implement.Depending on the employee's productivity, dedication, and work completionresults, businesses can reward and recognize their achievements in kind, cash orany other form Today, in addition to the basic welfare policies as prescribed bythe Labor Law, most businesses have been applying different reward policies toensure business efficiency and stand out in the market labor

A reasonable reward and recognition policy of the organization not onlyhelps employees be more satisfied with the work they are doing because theirefforts are properly recognized and appreciated, but moreover according toForbes, employees Rewarded employees are often more loyal with higherperformance The more frequent the rewards, the more opportunities foremployees to see changes and progress in their career paths, thereby makingtimely improvements and additions

Factor “Reward and Recognition” can be measured through the followingattributes

Table 2.3: Attributes of "Reward and Recognition" factor.

RR1 Leaders and colleagues recognize

employees' work efforts

Bhattacharya & Mukherjee(2009); Charl Van Wyk

(2011)

RR2

The company has a policy of recognizing

and honoring the outstanding achievements

of individuals

The truth about themanager (1946)

RR3

Performance at work is one of the factors

that determine the level of job completion;

promotion to new position and bonus of

a leader gives direction to team members to perform their tasks, how the leadermotivates and trains employees and also how the leader communicates withothers his subordinates

The influence of Leadership factors on employee satisfaction

Previous studies have shown that job satisfaction really depends onleadership style (Barling et al., 2002) Flexible organizations have aparticipatory management style with an interactive environment and a satisfiedworkforce (Gong, Huang, & Farh, 2009) Leadership style is highly effective inenhancing job satisfaction (Lok & Crawford, 2004; Medley & Larochelle,1995) One study also showed that leadership also improves employeeawareness and commitment to the organization (Ojokuku, Odetayo, &Sajuyigbe, 2012; Barling, Weber, & Kelloway, 1996)

In the current context, the success of an organization relies on the leadershipstyles followed by the leaders of the organization When effective leaders givethe right direction and lead followers to achieve desired goals, employees withhigh levels of job satisfaction become able to perform effectively and bringbenefits for the business.

Factor “Leadership” can be measured through the following attributes

Table 2.4: Attributes of "Leadership" factor.

LS1

Employees are encouraged by their superiors

to innovate and be flexible in the way they

work

Swanson (2001)

LS2

Leaders always listen, respect the opinions

and timely acknowledge the contributions of

employees

Wiley (1997);

Bhattacharya &Mukherjee (2009)

LS3 Employees are guided and instructed by their

LS4 Leaders clearly assign tasks and make

Working conditions are defined as a broad concept that includes all thoserelated to, directly affecting the operation and development, and improving theworking capacity of employees Factors mentioned in many research articles,such as: Manager facts (1946); Herzberg (1959); Spector (1985); Hameed and