Factors influencing job satisfaction a case study of generation z in white collar sector in ho chi minh city

Having recognized the generation shift in the current labor market and its significant effect in the long run, the author decided to choose the topic: “Factors influencing job satisfacti

LE THUY TUYET NGHI

FACTORS INFLUENCING JOB SATISFACTION:

A CASE STUDY OF GENERATION Z IN WHITE-COLLAR SECTOR

IN HO CHI MINH CITY

GRADUATE THESIS

MAJOR: BUSINESS ADMINISTRATION

CODE: 7340101

SUPERVISOR

Dr Bui Duc Sinh

HO CHI MINH CITY, 2022

LE THUY TUYET NGHI

FACTORS INFLUENCING JOB SATISFACTION:

A CASE STUDY OF GENERATION Z IN WHITE-COLLAR SECTOR

IN HO CHI MINH CITY

GRADUATE THESIS

MAJOR: BUSINESS ADMINISTRATION

CODE: 7340101

SUPERVISOR

Dr Bui Duc Sinh

HO CHI MINH CITY, 2022

ABSTRACT

Job satisfaction is a high priority for the Human Resources workforce since the level of employees’ contentment could lead to higher productivity, profitability, and complete organizational commitment In recent years, most organizations have faced considerable challenges in attracting and retaining employees from Generation Z since they appear to have higher requirements for their jobs compared

to their predecessors Thus, the objective of this study is to investigate the factors influencing Generation Z employees working in offices in Ho Chi Minh City Preliminary quantitative research was initially conducted with 50 participants to modify the scales and eliminate unreliable items Subsequently, official data were collected from 300 Generation Z employees in Ho Chi Minh City via an online questionnaire The results reveal seven proposed factors contributing to Generation

Z officers in Ho Chi Minh City In which, Salary & Benefits have the most decisive effect on job satisfaction of this age group, while the weakest component is Working environement The study also presents practical implications and further research directions to enrich this aspect of human resources management

Keywords: Job satisfaction, Generation Z, Human Resources Management

DECLARATION

I formally declare that I wrote this thesis under the guidance of Dr Bui Duc

Sinh; and the findings presented in this thesis are honest and not against ethical

issues in conducting research

I clearly listed all the literature and sources that I employed while writing

this academic research Moreover, I commit that the data collected were

confidential and solely used for this thesis

I am fully responsible if the violation of this regulation is found in my thesis

Author’s signature

ACKNOWLEDGEMENT

Words cannot describe my gratitude to my family and beloved friends who emotionally and mentally supported me whenever I struggled with my thesis This endeavor could not have been possible without their encouragement

Besides, I sincerely appreciate every respondent who was willing to participate in the survey so that the data collection process could occur efficiently

Eventually, I would like to express my appreciation to Dr Bui Duc Sinh His instructions and constructive advice have helped improve my thesis significantly Without his supervision, this thesis would not have been completed effectively

TABLES OF CONTENT

ABSTRACT i

DECLARATION ii

ACKNOWLEDGEMENT iii

LIST OF ACRONNYMS vii

LIST OF TABLES ix

LIST OF FIGURES x

CHAPTER 1: INTRODUCTION 1

1.1 Research Statement 1

1.2 Research Objectives 2

1.3 Research Questions 3

1.4 Research Subjects and Scope 3

1.5 Research Methodology 3

1.6 Research Significance 4

1.7 Research Structure 4

SUMMARY OF CHAPTER 1 5

CHAPTER 2: LITERATURE REVIEW 6

2.1 Generation Z 6

2.1.1 Definition of Generation Z 6

2.1.2 Characteristics of Generation Z 6

2.2 Job Satisfaction 7

2.2.1 Definitions of job satisfaction 8

2.2.2 Measures of job satisfaction 9

2.3 Theories on motivation 10

2.3.1 Abraham Maslow’s Need Theory (1943) 11

2.3.2 Herzberg’s two-factor theory 13

2.3.3 Vroom’s expectancy theory 14

2.4 Previous Studies 15

2.4.1 Domestic Studies 15

2.4.2 Foreign Studies 17

2.5 Research Model and Hypotheses 20

2.5.1 Research Model 20

2.5.2 Hypotheses 22

SUMMARY OF CHAPTER 2 31

CHAPTER 3: METHODOLOGY 32

3.1 Research Process 32

3.2 Research Design 33

3.3 Data Collection 34

3.3.1 Sample Size 34

3.3.2 Sampling method 34

3.3.3 Scale formulation 34

3.3.4 Questionnaire Design 38

3.4 Preliminary quantitative research 38

3.4.1 Preliminary quantitative research process 38

3.4.2 Preliminary quantitative research results 38

3.5 Formal Research 40

3.6 Data Analysis Techniques 42

3.4.1 Descriptive statistics 42

3.4.2 Cronbach’s Alpha Analysis 42

3.4.3 Exploratory factor analysis (EFA) 43

3.4.4 Regression analysis 44

3.4.5 Testing differences based on Controlled Variables 44

SUMMARY OF CHAPTER 3 45

CHAPTER 4: RESULTS 46

4.1 Descriptive Statistics 46

4.2 Scale Reliability Testing 48

4.3 Exploratory Factor Analysis 51

4.3.1 Factor analysis for the independent variable 51

4.3.2 Factor analysis for the dependent variable 53

4.4 Correlation Analysis 54

4.5 Regression Analysis 55

4.5.1 Tests of Model Fit 55

4.5.2 Regression Coefficients 56

4.5.3 Hypothesis Testing 57

4.6 Testing differences based on Controlled Variables 61

4.6.1 Testing differences in gender 61

4.6.2 Testing differences in income 62

4.6.3 Testing differences in experience 64

4.6.4 Testing differences in specialization 64

4.7 Result discussion 65

SUMMARY OF CHAPTER 4 67

CHAPTER 5: CONCLUSION 68

5.1 Conclusion 68

5.2 Managerial Implications 69

5.3 Limitations and further research 72

REFERENCES 73

APPENDIX 1: MEASUREMENT SCALES OF OBSERVED VARIABLES 84

APPENDIX 2: QUESTIONNAIRE SURVEY 87

APPENDIX 3: PRELIMINARY RESEARCH RESULTS 92

APPENDIX 4: DESCRIPTIVE STATISTICS 97

APPENDIX 5: CRONBACH’S ALPHA 104

APPENDIX 6: EXPLORATORY FACTOR ANALYSIS (EFA) 108

APPENDIX 7: CORRELATION ANALYSIS 113

APPENDIX 8: REGRESSION ANALYSIS 115

APPENDIX 9: TESTS OF DIFFERENCES 118

SPSS Statistical Package for the Social Sciences

SIG Significance level

ANOVA Analysis of Variance

EFA Exploratory Factor Analysis

KMO Kaiser-Mayer-Olkin

VIF Variance inflation factor

JDI Job Descriptive Index

MSQ Minnesota Satisfaction Questionnaire

JSS Job Satisfaction Survey

JDS Job Diagnostic Survey

GJS Global Job Satisfaction

JIG Job in General Scale

HRM Human Resource Management

LIST OF TABLES

Table 2.1 - Previous studies summary 18

Table 2.2 - Summary of the author's hypotheses and expectations 30

Table 3.1 - Measurement scale of observed variables 35

Table 3.2 - Scale Reliability Testing of Preliminary quantitative research 39

Table 3.3 - Formal Research Scale 40

Table 4.1 - Sample Description 47

Table 4.2 - Reliability Analysis Results 49

Table 4.3 - Factor analysis for the independent variables 51

Table 4.4 - Factor analysis for Dependent variable 53

Table 4.5 - Pearson correlation analysis 55

Table 4.6 - Model Summary 55

Table 4.7 - ANOVA Analysis 56

Table 4.8 - Coefficients Analysis 56

Table 4.9 - Summary of hypothesis testing results 59

Table 4.10 - One-way analysis of variance by gender 61

Table 4.11 - One-way analysis of variance by income 62

Table 4.12 - Post Hoc test by Income 62

Table 4.13 - One-way analysis of variance by Experience 64

Table 4.14 - One-way analysis of variance by Specialization 65

Table 4.15 - Beta synthesis and the influence level of 7 factors 66

LIST OF FIGURES

Figure 2.1 - Maslow's Hierarchy of Needs 11

Figure 2.2 - Herzberg’s two-factor theory 13

Figure 2.3 - Vroom’s expectancy theory 14

Figure 2.4 - Proposed research model 22

Figure 3.1 - Research Process 33

Figure 4.2 – Completed research model 61

CHAPTER 1: INTRODUCTION

Chapter 1 explains why this topic was chosen and provides an overview of research objectives, questions, methodologies, and research scope Additionally, this chapter also presents the research’s significance in terms of academics and practice Eventually, the presentation structure of this research is outlined

1.1 Research Statement

Job satisfaction is one of major priorities of Human Resources personnel since high job satisfaction could reduce turnover, increase work productivity and build organizational loyalty within employees Because of its significance, job satisfaction has sparked the widespread interest of social psychologists, researchers and administrators They have developed instruments to measure the level of satisfaction of employees towards their jobs, some of which are Minnesota Satisfaction Questionnaire (MSQ) (Weiss et al., 1967), Job Description Index (JDI) (Smith, Kendall & Hulin, 1969), Job Diagnostic Survey (JDS) (Hackman, Oldham, 1974) and Job Satisfaction Survey (Spector, 1997)

However, those instruments seem quite general since they failed to fully reflect different aspects of both typical and specific organizations Some of them were proposed based on white-collar jobs while the others were solely applicable for specific sectors such as healthcare and service workers (Astrauskaite et al., 2011)

On the other hand, this diversity has demonstrated different aspects of organizational sectors and provided academic scholars a variety of options which suit the sample of their research As a result, most previous studies related to job satisfaction, researchers had to modify the chosen instrument or combine it with another in order to propose a model thats fit their organizations

It is noticeable that each generation has different patterns in perceptions, working styles and job satisfaction because they grow up in dissimilar economic

situations, social conditions and cultural environment Thus, it is crucial for corporates to understand every generation in order to create and retain a suitable workplace Granted that extensive studies have conducted on Millennial or Generation Y over the past decades, but little to none on Centennial or Generation

Z Meanwhile, Generation Z is gradually entering the labor market while the Baby Boomers are beginning their retirement According to PwC’s report “How digital ready is Generation Z” - Findings from PwC Vietnam’s Digital Readiness Survey

2020, Generation Z is estimated to account for roughly one-third of the total Vietnamese labor market by 2025 In recent years, all contemporary organizations have faced a significant challenge in attracting and retaining Generation Z employees since they seem to have more demands in their jobs compared to their predecessors Accordingly, a deeper and insightful understanding about the characteristics of this cohort and their job expectations could help reduce generation gap and foster collaboration among different generations in the workplace

Globally, there are some studies on this new generation using quantitative method conducted by Aggarwal et al (2020) and Husainah, Hafnidar & Limakrisna (2022), and some of them are mainly based on secondary data In Vietnam, research

on Generation Z’s job satisfaction has been rarely found

Having recognized the generation shift in the current labor market and its

significant effect in the long run, the author decided to choose the topic: “Factors influencing job satisfaction: A case study of Generation Z in white-collar sector

in Ho Chi Minh city” to explore and examine factors affecting this new generation 1.2 Research Objectives

The general objective of this study is to determine factors affecting the job satisfaction of Generation Z working in Ho Chi Minh City Subsequently, management implications will be suggested based on the research results to help bridge the generation gap in the current labor market In order to achieve these aims, this study has the following specific objectives:

 To identify factors contributing to job satisfaction of Generation Z working in different speclizations in Ho Chi Minh City

 To measure the impact level of each factor on job satisfaction of Generation Z working in different speclizations in Ho Chi Minh City

 To suggest management implications to improve Generation Z’s job satisfaction

1.3 Research Questions

Based on the research objectives and research problems above, this study concentrates on answering the following questions:

 Which factors are affecting on job satisfaction of Generation Z?

 How is the degree of influence of each factor on job satisfaction of Generation Z?

 Which management implications could enhance job satisfaction of Generation Z?

1.4 Research Subjects and Scope

This study concentrates on investigating the influence of factors on job satisfaction of Generation Z

In terms of space: This study focuses on Generation Z who are from 20 to 27 years old and currently working in Ho Chi Minh City

In terms of time: The fundamental statistical information is gathered by conducting

a questionnaire from October 2022 to November 2022

1.5 Research Methodology

This study involves both qualitative technique and quantitative techniques

The qualitative technique involves collecting and analyzing non-numerical data through articles, theories, and previous studies related to factors affecting job satisfaction Based on those resources, this study proposes a model of factors contributing to job satisfaction of Generation Z in Ho Chi Minh City

Quantitative technique involves collecting and analyzing numerical data by undertaking a survey into job satisfaction whose participants are mainly from 20 to

27 years old and currently working in Ho Chi Minh City Subsequently, this research uses SPSS 22.0 to perform the following quantitative analysis:

 Descriptive statistics of the sample

 Internal Consistency (Cronbach Alpha)

 Exploratory Factor Analysis (EFA)

1.7 Research Structure

Besides the cover page, the declaration, acknowledgment, table of contents, lists

of acronyms, figures, and tables, abstract, as well as references, and appendixes, this thesis includes five chapters as follows:

SUMMARY OF CHAPTER 1

This chapter has discussed an overview issues-related this topic, including the urgency of the research, research objectives and questions, research’s methods, and data, and finally the research’s contributions Based on the discussion above, the

subject “FACTORS INFLUENCING JOB SATISFACTION: A CASE STUDY

OF GENERATION Z IN WHITE-COLLAR SECTOR IN HO CHI MINH CITY” is scientific and practical This helps establish a basis for further research

steps which mainly concentrate on presenting the theoretical framework, research methods, and data collection to obtain research results, provide findings and draw conclusions

CHAPTER 2: LITERATURE REVIEW

Chapter 2 demonstrates theoretical underpinnings in relation to job satisfaction and Generation Z Based on theories and previous studies, this chapter proposes a research model for the study

2.1.2 Characteristics of Generation Z

In recent years, researchers, educators, and sociologists have conducted multiple surveys to analyze the characteristics of this new generation Having grown up in such a modern and changeable era, Generation Z has several manners, preferences, and mindsets that are unique and different from their predecessors

This represents difficult challenges to managers, supervisors, human resource leaders, and educators in every sector (Tulgan, 2013)

This cohort is believed to be capable of obtaining the information they need quickly, so they are self-educated and self-efficient rather than seeking interaction with experts (Schwieger & Ladwig, 2018) However, this leads them to have a short attention span (Stuckey, 2016), be impatient, and always want everything to occur immediately (Berkup, 2014) According to (McAlpine, 2013), Generation Z is expected to be more frugal with their money than previous generations as they witnessed long-term parental unemployment during the Great Recession Other features of this generation are their individualism, competitive spirits, and enterprising mindsets Accordingly, they ache to be treated equally and respectfully (Schwieger & Ladwig, 2018), always seek challenges around them and have a strong desire to influence the world (Bencsik, Horváth-Csikós & Juhász, 2016)

When it comes to the workforce, these character characteristics have a great influence on this generation’s manners and perceptions According to Racolţa-Paina

& Irini (2021), retaining and motivating Generation Z are becoming strenuous since this cohort seems to have more demands than the earlier generations In the past few years, contemporary organizations have been dealing with problems related to workforce diversity including gender, race, ethnicity, religion, and generation gaps Therefore, the arrival of Generation Z into the workforce does not only raise new challenges for companies, but it also represents a significant shift in how organizations operate, communicate, and solve problems

2.2 Job Satisfaction

Job satisfaction has always been a major concern for most institutes and organizations From employees’ perspective, it is the main reason for them to decide whether to stay or leave the company (Pratama, Suwarni, & Handayani, 2022) In terms of organizations, job satisfaction is closely correlated with organizational outcomes such as employee performance, absenteeism, productivity,

work output and turnover (Onukwube, 2012) Because of its profound influence, various researchers have endeavored to define and measure it in different ways to grasp its concepts

2.2.1 Definitions of job satisfaction

The term was brought to the forefront by Hoppock (1935) He states that job satisfaction is any combination of psychological, physiological, and environmental conditions that leads a person to honestly say "I am satisfied with my job." Such definition indicates that job satisfaction is affected by objective and subjective factors Meanwhile, Vroom (1964) refers job satisfaction as positive feedbacks from individuals towards their current jobs It can be seen that his definition emphasizes employees’ roles in the workplace Locke (1969) defines job satisfaction as a

“pleasurable or positive emotional state resulting from the appraisal of one’s or job experiences” In other words, job satisfaction is an emotional response towards work situation Spector (1997) describes job satisfaction as the degree to which people like their jobs Weiss (2002) proposes a clearer definition which indicates that job satisfaction is affective evaluations including negative and positive feelings

an employee develops in relation with his or her job This definition has been supported by Mullins (2005) who defines job satisfaction as an inner feeling that employees have towards their jobs Besides, he also claims that job satisfaction is a complicated and multifaced concept which varies widely to different people

In summary, there have been various perspectives on job satisfaction The definitions developed from an overall viewpoint to a detailed assessment The former indicates that job satisfaction is related to both internal and external factors, whereas the latter emphasize on the inner state Regarding causes leading to job satisfaction, each researcher has different approaches and interpretations Through these descriptions, it can be concluded that an employee is considered to satisfy when he has positive emotions about his job

2.2.2 Measures of job satisfaction

Over the decades, there have been various instruments developed to measure employees’ job satisfaction The following instruments are considered common ones used in studies regrading job satisfaction

Job Descriptive Index (JDI)

The Job Descriptive Index (JDI) was initially developed by Smith, Kendall

& Hulin (1969) to measure job satisfaction of an individual based on five facets including pay, promotional opportunities, supervision, co-workers, and the work itself There are nine to eighteen statements or phrases per facet that describe the respondent's work experiences The JDI model is one of the most relevant scales (Irani & Scherler, 2002) and the most widely used measure of job satisfaction (Ramayah, Jantan, & Tadisina, 2001) According to Tran Kim Dung (2005), the JDI model is also highly evaluated in terms of both theory and reality

Minnesota Satisfaction Questionnaire (MSQ)

The Minnesota Satisfaction Questionnaire (MSQ designed by Weiss, Dawis

& England (1967 & 1977) to measure employees’ job satisfaction There are three forms of this questionnaire including two long versions and a short one The MSQ has 100 items in its long form, 5 items per facet For research purposes, a short form was also developed The MSQ short form consists of 20 items (1 item for each facet), which were divided into intrinsic and extrinsic job context items Each of them is rated on a 5-point Likert: “Very Dissatisfied; Dissatisfied; Neither dissatisfied nor satisfied; Satisfied; Very satisfied” According to Weiss et al (1967), the short form of MSW provides a more individualized representation of job satisfaction than other measures of job satisfaction

Job Satisfaction Survey (JSS)

The Job Satisfaction Survey (JSS), which was developed by Spector (1997) JSS has 36 items with nine subscales designed to assess employee attitudes about different aspects of their jobs It consists of nine facets including pay, promotion, supervision, fringe benefits, rewards, operation conditions, co-workers, nature of work and communication Each subscale has four questions with a 6-point Likert scale, ranging from “Disagree very much” to “Agree very much” Originally, JSS was designed for use in human service organizations, but it is suitable for all enterprises

Apart from the three instruments mentioned above, there are other measures Some of which are the Job Diagnostic Survey (JDS) (Hackman & Oldham, 1974), the Global Job Satisfaction (GJS) (Quinn and Shepard, 1974) and the General Scale (JIG) (Ironson et al., 1989) Such numerous instruments provide researchers with many options to select the one that is suitable with their samples’ features On the other hand, if it is chosen without careful consideration, the instrument might not accurately reflect researchers’ samples

2.3 Theories on motivation

Although job satisfaction cannot substitute for motivation, it is found closely related to motivation theories (Kian, Yusoff & Rajah, 2014) Moreover, theories about job satisfaction also drawn from motivation, so there is an apparent relationship between these two concepts (Unutmaz, 2014) In other words, both job satisfaction and motivation theories are inextricably linked There are numerous theories that attempt to explain human motivation All of them are divided into two categories: content theories and process theories Abraham Maslow and Herzberg’s two-factor describe content theories, while one of the prominent of process one is Vroom’s expectancy theory

2.3.1 Abraham Maslow’s Need Theory (1943)

Psychologically, Maslow’s theory helps researchers gain a better understanding of human motivation In terms of Human Resource Management, it

is also widely accepted and become a part of compulsory reading to managers (Thangaswamy & Thiyagaraj, 2017) Based on Maslow’s theory, researchers can

Self -actualization

personal growth, achieve full potential including creative activities

Esteem needs

status, respect, recognition

Belongingness and love needs

relationships, sense of connection

analyze employees’ needs and figure out how to satisfy their needs to motivate them

Physiological needs are basically biological requirements of human beings such as food, sleep, and clothing If these needs are not satisfied, the human’s bodily functions cannot work effectively As such, Maslow saw that physiological needs are the most fundamental and crucial for human survival and the other four categories become secondary until the first one is met According to Daft (1997), these basic needs are satisfied when organizations could offer base salary and adequate working environment to their employees

Once the physiological needs are satisfied, the needs for security and safety become These needs could be fulfilled by health, property, and financial security through employment and social welfare In organizations, such needs can be meet

by job security, safe working conditions, and insurance policies (Mondy et al., 1994)

The next stage of needs in Maslow’s hierarchy consists of love, senses of connection and acceptance in relationship with others In terms of organizations, this category is related to a positive workplace where employees have opportunities

to build rapport with their colleagues through organized and extracurricular activities (Ozguner & Ozguner, 2014; Stewart et al., 2018)

The next level is esteem needs which include status, recognition, and respect Ozguner & Ozguner (2014) states that job title and responsibilities, praise and competent management are crucial factors to meet these needs

Self-actualization needs are at the peak of the pyramid referring to the realization of an individual’s potential and capacities Draft (1997) states that this highest level can be satisfied in organizations by providing opportunities which allow their creativity, personal growth, and advancement

According to Schermerhorn (2001), Maslow’s theory of human motivation is greatly useful in understanding people’s needs at the workplace and dictating what organizations can do to satisfy their employees Besides, he also claims that Maslow’s hierarchy helps managers to recognize that deprived needs might have a negative effect on employees’ attitudes and behaviors, whereas providing opportunities for need fulfillment may have positive motivational impacts

2.3.2 Herzberg’s two-factor theory

Another theory about motivation is Herzberg’s two-factor theory or dual factor theory of motivation developed by Herzberg, Mausner & Snyderman in 1959 According to this theory, there are two factors determining the motivation, namely

“Motivators” and “Hygiene”

Figure 2.2 - Herzberg’s two-factor theory

Source: Herzberg, Mausner & Snyderman (1959)

The motivators are defined as intrinsic factors leading to satisfaction In organizations, they refer to achievement, experience, the actual work, promotion and opportunities for growth and advancement Moloantoa (2015) Conversely, the hygiene was described as extrinsic factors causing dissatisfaction In the workplace, these factors are defined as salary and benefits, supervision, company policies and working environment (Tan & Waheed, 2011) According to Herzberg, if intrinsic

Employees are satisfied and motivated

Effort Performance Outcome Motivation

factors are met, individuals would feel satisfied and motivated Meanwhile, absence

of hygiene decrease satisfaction, but their presence does not increase satisfaction In other words, job dissatisfaction occurs when the hygiene factors are not met, they

do not motivate employees, however (Ghafoor, 2012)

The Herzberg’s two-factor theory provides useful results in determining employees’ job satisfaction and causes of dissatisfaction (Brenner et al., 1971) Schermerhorn (1993) also claims that this theory is a reference for managers who need to gain a better understanding of job satisfaction and issues related to job performance

2.3.3 Vroom’s expectancy theory

Expectancy theory is a process theory of job satisfaction and motivation proposed by Vroom in 1964 This theory states that individuals’ effort is determined

by their expected outcome and outcome values In other words, employees tend to work harder to provide a positive performance if they expect compensation and rewards When these expectations are met, they are motivated To create a connection among effort, performance and motivation, there are three components including Expectancy, Instrumentality and Valance

 Expectancy: Expectancy refers to an individual’s belief that his additional effort would lead to them to achieve their desired performance or outcomes

 Instrumentality: Instrumentality is the belief that an individual will receive his desired outcomes if he has positive performance

 Valance: Valance refers to the significance and value of expected outcomes

Figure 2.3 - Vroom’s expectancy theory

Source: Vroom (1964)

According to Lunenburg (2011), Vroom’s expectancy theory provides a cognitive process that reflect differences in motivation of individuals He also states that employees in this model are rational people whose behaviors are influenced by their beliefs, perception, and expectations rather than internal motivations, unmet needs, or rewards In terms of management, this theory suggests that managers describe clearly to employees that their positive performance would lead to valued rewards and desired outcomes and increase employees’ belief in their capacity by providing them training opportunities and assigning them more challenging tasks based on training

In summary, content theories represented by Abraham Maslow and Herzberg’s two-factor theory primarily identify factors that contribute to motivation job satisfaction and dissatisfaction Meanwhile, Vroom’s expectancy theory is more about a cognitive rational process and mainly focus on the psychological and behavioral processes that motivate individuals Both concepts provide useful implications which help managers grasp employees’ motivation and satisfaction

2.4 Previous Studies

2.4.1 Domestic Studies

Tran Kim Dung (2005) based on Maslow’s theory, adapted and validated the JDI model (Smith et al., 1969) to investigate the factors influencing employee satisfaction in the Vietnamese context The author suggested two additional factors: working environment and fringe benefits complement It was found that the adapted JDI model has 6 independent variables including the work itself, supervisors, promotional opportunities, co-workers, salary, working environment, and fridge benefits The seven-point Likert questionnaire was distributed to 448 evening students at the University of Economics in Ho Chi Minh City During data

reliability The findings indicate that the work itself and training & promotion opportunities have the strongest and most significant statistical influences on overall job satisfaction

Chau Van Toan (2009) based on the JDI model (Smith et al., 1969) and added two independent variables to complement Vietnamese working conditions to conduct the study “Factors influencing job satisfaction of office staffs in Ho Chi Minh City The proposed model includes 7 factors: Income, Training and Promotion, Superior, Colleague, Job characteristics, Working conditions and Benefit The five-point Likert scale questionnaire ranging from completely disagree

to completely agree was designed to survey 200 officers in Ho Chi Minh City The result reveals that except for Colleague factor, the other six factors contribute to job satisfaction Income has the strongest impact on job satisfaction, followed by job characteristics and Superior, while training and promotion, and benefits have the lowest impact

Vu Tan Tai (2013) based on the JDI model (Smith et al., 1969) to investigate factors influencing job satisfaction of office staffs at Vietnam Communications Corporation A total of five-point Likert questionnaires were distributed to 200 employees Job satisfaction was measured based on seven factors including job characteristics, salary, benefits, co-workers, supervisors, training & promotion and working environment The result indicates that salary was the strongest influence on job satisfaction, followed by benefits and promotion opportunities Conversely, working environment and supervisors have the lowest impact on job satisfaction Besides, the findings also reveal that office staffs satisfied with working environment, supervisors, and job characteristics, while promotion opportunities and benefits were the two lowest satisfaction factors

Pham Tuan Van, Pham Van Sy, Le Van Quy, Tran Thai Yen Thuc, Nguyen Thi My Tien, and Tran Chi Vinh Long (2021) adjusted and combined different measures of job satisfaction such as the MSQ (Weiss et al., 1967), the JDI (Smith et al., 1969) and the JSS (Spector, 1997) to conduct a study on 2500 white-collar

officers currently working in Ho Chi Minh City The questionnaire with 39 questions has six factors including working environment; job characteristics; promotion opportunities; salary and income; coworkers, and supervisors The result shows that there was a positive correlation between six factors with job satisfaction Besides, the result also points out that supervisor is the most influential effect on officers’ job satisfaction Conversely, the co-workers factor has the weakest impact

on job satisfaction

2.4.2 Foreign Studies

Sakthivel Rani, Kamalanabhan, and Selvarani (2011) examined job satisfaction of 210 employees working in an IT organization The study consists of seven factors including career opportunities, recognition, work tasks, payments, benefits, superior subordinate relationship, and work/life balance, in which work-life balance is a mediator The result indicates that employee satisfaction has positive relationships with six factors, except for pay The authors also concluded that career opportunities were the most important contribution to employee job satisfaction, which is followed by work tasks, superior subordinate relationship and work-life balance Meanwhile, recognition factor has lowest impact and pay does not affect job satisfaction in the examined IT organization

Mohammad Rabiul Basher Rubel and Daisy Mui Hung Kee (2014) conducted the study “Quality of work life and employee performance: Antecedent and outcome of job satisfaction in Partial Least Square (PLS)” In this study, job satisfaction plays as a predictor of employee performance and was measured based

on four dimensions: Supervisory behavior, Compensation, Job characteristics and Work-life balance The questionnaires were distributed to 150 employees and rated

on five-point Likert scale The result reveals that all four dimensions are positively significant to job satisfaction Compensation and benefits have the strongest impact, followed by work-life balance and Supervisory behavior, while job characteristics has lowest impact Moreover, the authors also concluded that there is also a

significant positive relationship between job satisfaction and employee performance

Anantha Raj A Arokiasamy and Ricardo Baba (2019) modified the JSS (Spector, 1997) to investigate factors influencing job satisfaction of employees in Malaysian commercial banking sector The study surveyed 1200 employees in banking sector through a 6-point Likert scale, ranging from being strongly disagree

to being strongly agree The authors used quantitative technique to measure the relationship between organization factors (pay, promotion, supervision, fringe benefits, contingent rewards, working conditions, co-workers, operating conditions, and communication) and individual factors (gender and age) The result points out that all 9 variables of organizational factors have positive impact on job satisfaction The findings also pointed out that Pay and Working conditions are the most two influential factors on job satisfaction; meanwhile, operating conditions and promotion have the weakest influence

Table 2.1 - Previous studies summary

Tran Kim Dung (2005) The measurement of job

satisfaction in a Vietnamese context

Salary Training & Promotion opportunities

Supervision Co-workers The work itself Working environment Fringe benefits

Chau Van Toan (2009) Factors influencing job

satisfaction of office staffs in

Ho Chi Minh City

Income Training and Promotion Superior

Colleague Job characteristics Working conditions Benefit

Vu Tan Tai (2013) Factors affecting job

satisfaction of office staffs at Vietnam Communications Corporation

Job characteristics Salary

Benefits Co-workers Supervisors Training and promotion Working environment Pham Tuan Van, Pham

Van Sy, Le Van Quy,

Tran Thai Yen Thuc,

Nguyen Thi My Tien,

and Tran Chi Vinh

Long (2021)

Factors Affecting Job Satisfaction of White-collar Officers in the Ho Chi Minh City of Vietnam

Working environment Job characteristics Promotion opportunities Salary and income Co-workers

Supervisors Sakthivel Rani,

Kamalanabhan, and

Selvarani (2011)

Reflections on Employee Satisfaction

Career opportunity Recognition

Work tasks Payments Benefits Work-life balance Superior Subordinate Relationship

Mohammad Rabiul

Basher Rubel and

Daisy Mui Hung Kee

Job characteristics Work-life balance

Least Square (PLS) Anantha Raj A

Pay Promotion Supervision Fringe Benefits Contingent Rewards Working conditions Co-workers

Operating Conditions Communication

Source: Summarized by the author

2.5 Research Model and Hypotheses

2.5.1 Research Model

Based on theories about human motivation and studies on factors affecting job satisfaction in different sectors and countries, it is noticeable that the Job Description Index model developed by Smith, Kendall & Hulin (1969) was commonly used and accepted by many scholars and researchers Its values and reliability were highly evaluated by many researchers, which indicates that the JDI model is straightforward to comprehend and apply However, the JDI model limits itself to only five dimensions, which might not completely cover a wide range of the other dimensions (Buffum & Konick, 1982) Moreover, there are also unfamiliar characteristics in each country and each sector, which leads to differences in employees’ job preferences Solely implementing the JDI model might not evaluate properly other dimensions while job satisfaction is a complex and multifaceted concept As such, despite its common use and reliability, most researchers both in Vietnam and other countries had to modify this model or combine it with the MSQ (Weiss, Dawis & England, 1967) and the JSS (Spector, 1997) to suit their sample and chosen sector or organization In Vietnam, Tran Kim Dung (2005) was the

pioneer who added two other factors to suit the Vietnamese context Many Vietnamese researchers have applied her adapted JDI model and found it fully reflects their sample The familiar patterns can be seen in foreign studies; however, some researchers are approaching this concept differently and propose research models that contain new factors One of them is the work-life balance factor that was proposed by Rani & Selvarani (2011) and Rubel & Kee (2014) The author chooses the factors influencing job satisfaction based on the Vietnamese social and economic milieu and Generation Z’s job expectations It can be seen that the adjusted JDI model proposed by Tran Kim Dung (2005) has been commonly used

in Vietnam context, so this study is based on that model Additionally, the author suggests work-life balance factor to investigate whether Generation Z in Vietnam takes this aspect into consideration Given the underpinnings mentioned, the proposed model consists of seven independent variables: Salary & Benefits, Working environment, Job Characteristics, Training & Promotion, Supervisors, Co-workers, and Work-life balance

Figure 2.4 - Proposed research model

2.5.2 Hypotheses

The relationship between salary & benefits with job satisfaction

Salary refers to a consistent payment that employees receive monthly, which

is specified in an employment agreement Yaseen (2013) states that money is regarded as a reward given to employees in exchange for their efforts as well as payment for work completed Less pay as compared to work finished could lead to job dissatisfaction (Robbins, 2003) According to Barton (2002), organizations should take salary into consideration since it strongly affects employee motivation and retention Moreover, Tabassum (2012) also claim that a fair and adequate salary

could positively influence employees’ job satisfaction As mentioned above, Generation Z is more likely to be thriftier with money due to their experiences during the financial crisis in their childhood (McAlpine, 2013) When it comes to the workplace, salary becomes their top priority because they are early cognizant of the living expenses and house prices (Stuckey, 2016; Racolţa-Paina & Irini, 2021)

In terms of benefits, Artz (2008) states that they have an influence on job satisfaction in several ways Firstly, benefits are crucial components of employees’ salary while salary have an impact on job satisfaction Secondly, benefits can become substitutes for wages or salaries However, if employees find it unnecessary

to sacrifice their salaries for the provision of a benefit that they do not desire, they will feel dissatisfied Therefore, employers need to be aware of the necessary fringe benefits to avoid providing inappropriate substitution between benefits and salary According to Tran Kim Dung (2011), fringe benefits in Vietnam consist of social insurance, health insurance, lunch allowance, furlough, and other benefits

Salary & benefits having a positive impact on job satisfaction can be found

in previous studies such as Tran, K D (2005); Chau, V T (2009); Tai, V T (2013); Arokiasamy & Baba (2019) Based on the discussion above, the following hypothesis is proposed:

H1: Salary & benefits have a positive impact on Generation Z’s job satisfaction

The relationship between working environment and job satisfaction

Working environment is basically defined as surrounding conditions where employees perform their jobs According to Leshabari et al (2018) supportive working environments enable employees to take full advantage of their knowledge, skills and available resources to perform their tasks more effectively Miah & Kamaruzzaman (2020) also claim that employees are the main contributors to the development of organizations, so it’s necessary to provide them a proper working environment Agbozo et al (2017) concluded in their study that working

environment has a positive effect on job satisfaction Herzberg et al (1959) also states that inappropriate working environment causes employees’ dissatisfaction According to Spector (1997), working environment is comprised of safety, job security, good relationships with colleagues, recognition, and participation in decision-making process Meanwhile, Agbozo et al (2017) states that working environment has three aspects including physical, psychological, and social environment Although there are many researchers explaining the aspects of working environment in different ways, this factor of the study would be measured

by four aspects including an airy, hygienic and well-decorated workplace (Tai, V T., 2013 and Shobe, 2018), a safe and comfortable workplace (Durst & DeSantis, 1997), well-quipped facilities (Bellingham, 2004) and the amount of time spent commuting from home to work (Isacsson, 2008)

Previous studies reveal that there is a positive relationship between working environment and job satisfaction Chau, V T (2009); Tai, V T (2013); Van Pham,

T et al (2021) and Arokiasamy & Baba (2019) Based on the underpinnings above and prior research results, the following hypothesis is proposed:

H2: Working environment has a positive impact on Generation Z’s job satisfaction

The relationship between job characteristics and job satisfaction

According to Hackman & Oldham (1974), a well-designed job should include five core job dimensions, namely task identity, variety, significance, job autonomy, and feedback Firstly, task identity refers to how well an employee understand or participates in the completion of the whole piece of work Coelho and Augusto (2010) states that task identity fosters the sense that the job is meaningful and worthwhile, which motivates employees to work more efficiently Secondly, task significance is defined as the extent to which a job has an impact with respect

to others and the organization Thirdly, task variety is the degree to which an employee is allowed to use their multiple skills to perform their tasks Another dimension is job feedback which is described as information and suggestions that an employee receive about his or her performance Coelho & Augusto (2010) suggested that managers give feedback to their employees so that they could recognize which skills need to be improved, which helps them gain a better understanding of their work Finally, task autonomy is explained as the degree to which a job provides employees with freedom and independence in decision-making process Autonomy could motivate employees to generate new ideas, learn from their mistakes and improve their own skills (Coelho & Augusto, 2010)

The five core dimensions of job characteristics defined by Hackman & Oldham (1974) matches Generation Z’s job expectations to a certain extent According to Half (2015), this young generation has a strong desire to have a positive influence

on their organization and society As such, fully understanding their job and its significance would motivate and satisfy them Besides, many HR specialists realized that the constant need for feedback is one of the main characteristics of Generation Z (Racolţa-Paina & Irini, 2021) Stuckey (2016) also states that this generation cohort is able to access the information that need quite quickly, so giving them tasks which encourage them to bring new ideas and use their own skills will motivate them

Job characteristics having a positive impact on job satisfaction is found in prior studies Tran, K D (2005); Chau, V T (2009); Tai, V T (2013); Van Pham,

T et al (2021) and Rubel & Kee (2014) Thus, the following hypothesis is proposed:

H3: Job characteristics has a positive impact on Generation Z’s job satisfaction

The relationship between training & promotion with job satisfaction

Training refers to a process in which employees have opportunities to learn necessary skills and knowledge to perform their jobs (Chau, 2009) Promotion is defined as “a shifting of employee for a job of higher significance and higher compensation” (Lazear, 2000) Stanton & Crossley (2000) had a more general definition for these two concepts, they state that promotions refer to employees’ perceptions of training & promotion opportunities, and personal development within an organization Despite some minor differences in definitions, training and promotion basically refers to employers providing their employees career development opportunities Moreover, both concepts are principal for organizations and employees Allen et al (2003) states that organizations with various opportunities for training and promotion could reduce turnover rate as the lack of such opportunities is the main reason causing qualified employees quitting the company In addition, employees who are satisfied with their training and promotional opportunities in their organization are more likely to experience job satisfaction (Choo & Bowley, 2007) The two concepts are believed to influence job satisfaction of Generation Z since they match the characteristics of this age group According to Hope (2016), Generation Z is strongly motivated by career development This is because they are eager to make their own identity (Aggarwal

et al., 2020), career ambitious Chillakuri (2020) and have strong enterprising mindset (Bencsik, Horváth-Csikós & Juhász, 2016)

Training and promotion having a positive effect on job satisfaction could be found

in prior studies such as Tran, K D (2005); Chau, V T (2009); Tai, V T (2013); Van Pham, T et al (2021); Rani & Mariappan (2011) and Arokiasamy & Baba (2019) Based on the discussion above, the following hypothesis is proposed:

H4: Training & promotion have a positive impact on Generation Z’s job satisfaction

The relationship between supervisors and job satisfaction

A supervisor is defined as a front-line manager who takes responsibilities for supervision of employees (Heery & Noon, 2001) Supervision refers to “the ability

of supervisor to provide emotional/technical support and guidance with work related tasks” (Robbins, 2003) Supervisors with inadequate leadership will cause their employees to have lower satisfaction, lower organization commitment, work-life conflicts and even psychological distress (Tepper, 2000) According to Gagnon

& Judd (2004), employees will have higher levels of job satisfaction working with supervisors displaying democratic management styles than those with autocratic leadership styles It seems that every employee will feel satisfied and work more effectively if their supervisor is supportive and receptive Generation Z is not an exception, but they seem to take this aspect more importantly The findings of Ozkan & Solmaz (2015) reveal that that this young age group have a stronger desire for leaders to listen to them and value their suggestions than Millennials In other words, Generation Z value the workplace where contributions are taken priority over age In addition, they also want their supervisors to recognize their work-performance (Aggarwa et al., 2020) and not to hide any work-related information from them due to their young age (Agarwal & Vaghela, 2018)

Supervisor having a significant influence on job satisfaction could be found in most previous studies such as Tran, K D (2005); Chau, V T (2009); Tai, V T (2013); Van Pham, T et al (2021); Rani & Mariappan (2011); Rubel & Kee (2014) and Arokiasamy & Baba (2019) Thus, the following hypothesis is proposed:

H5: Supervisors has a positive impact on Generation Z’s job satisfaction

The relationship between co-workers and job satisfaction

Co-workers refer to individuals who have the similar role in an organization, share the same workplace and responsibilities Co-workers are those employees interact and work with a regular basic Therefore, a good relationship with them could help increase job satisfaction, productivity, and well-being (Hodson, 1997),

and Nazarey, 2001) According to Bonache (2005), social support from co-worker networks is a modest source of job satisfaction to employees This school of thought was also supported by Arokiasamy & Baba (2019), they state that amiable and cooperative co-workers or teammates is an important determinant for job satisfaction Apart from being attentive, co-workers should be those who are trustworthy (Chami & Fullenkamp 2002), and always dedicated themselves to their work (Bellingham, 2004) When it comes to Generation Z, besides features mentioned above, this young workforce also wants their co-workers respect and value their opinions (Schroth, 2019), as well as recognize their efforts (Aggarwal, 2021)

Co-workers having an impact to job satisfaction could be found in previous studies such as Tran, K D (2005); Tai, V T (2013); Van Pham, T et al (2021) and Arokiasamy & Baba (2019) Thus, the following hypothesis is proposed:

H6: Co-workers has a positive impact on Generation Z’s job satisfaction

The relationship between work-life balance and job satisfaction

The term work-life balance has been defined in various ways According to Nasution & Ali (2020), it refers to a balanced state between the professional and personal life Meanwhile, Poulose & Sudarsan, (2014) explained WLB in a broader way, they state that it indicates the act of effectively managing a balance in one's three life domains, namely organization, social, and personal life However, the clearest and boardiest definition of work-life balance was proposed by Lockwood (2013) who described this term through different viewpoints He states that from an employee’s perspective, work-life balance refers to “the dilemma of managing work obligations and personal/family responsibilities”, while from an employer’s viewpoint, it is a challenge of providing a supportive organization culture where employees could concentrate on their jobs while at the workplace As for