INTRODUCTION
Background of the research
Every organization relies on two key assets: labor and capital, with capital being crucial for success and labor being essential for daily operations While employees' knowledge and skills are important, their performance ultimately determines organizational success, influenced by factors such as leadership, promotion opportunities, and workplace environment In Vietnam's developing economy, various sectors—including foreign, joint, private, and public—contribute significantly to national development As the economy reforms, the number of state sectors is decreasing, while other sectors are on the rise, although state sectors still play a vital role in the economic landscape.
The success of each sector largely depends on employee performance, but the state sector exhibits unique characteristics that differentiate it from others While all sectors are influenced by similar determinants, the impact varies in intensity and requires careful analysis and comparison Identifying the key factors affecting employee performance in each sector is crucial for enhancing overall effectiveness, benefiting leadership and employees alike This understanding is particularly important in the rapidly evolving Vietnamese economy, which presents numerous opportunities and challenges.
Market as battlefield, in battlefield as Vladimir Ilyich Lenin said: the winning or failing on battlefield depend on the emotion of the soldiers who are fighting on that
Motivating individuals is crucial for the success of organizations across all sectors, including business A significant issue facing Vietnamese industries today is the low productivity of the labor force, a concern acknowledged by both government officials and the public Foreign managers who have collaborated with Vietnamese workers often note their intelligence and skillfulness; however, the output remains comparatively lower than that of neighboring countries This disparity highlights the need for effective motivation strategies to address the underlying issues and improve productivity.
In Vietnam, many managers overlook the importance of understanding what motivates their employees, leading to a lack of effective policies to enhance performance While some may be aware of motivational strategies, they often choose to ignore them Since joining the World Trade Organization, the competition between Vietnamese and foreign products has intensified, particularly during economic crises, necessitating improvements in various sectors, including human resources Enhancing employee performance has become a crucial factor for success in this competitive landscape.
3 enhancing the productivity of each employee, as a result the quality of products could improve and price could be reduced that help Vietnamese products have chances to win in competition
Understanding the impact of various factors on employee performance is crucial for managers in enhancing productivity and maintaining competitiveness within the Vietnamese economy This study will explore the effects of earnings, working environment, and promotion opportunities on employee performance, while also comparing these effects between state and other sectors Additionally, the research will examine the interrelationship among these three determinants and their collective influence on employee performance.
Research problem, research objective, and research questions
Earnings, working environment, and promotion opportunities significantly influence employee performance, with distinct effects observed in the state sector compared to other sectors within the Vietnamese economic system In the state sector, job security and benefits often enhance motivation, while in private sectors, competitive salaries and dynamic work environments may drive higher performance levels Understanding these differences is crucial for developing effective strategies to boost productivity across various sectors in Vietnam.
This research aims to analyze the influence of earnings, working environment, and promotion opportunities on employee performance It will also compare and discuss how these factors differently impact the public sector versus other sectors within the Vietnamese economic system.
How do earning, working environment, and promotion opportunities affect employees’ performance?
Earnings, working environment, and promotion opportunities significantly influence employee performance in the Vietnamese economic system, with distinct effects observed between the state sector and other sectors In the state sector, job security and benefits often lead to stable performance, while in private sectors, competitive salaries and dynamic work environments can drive higher productivity Additionally, the availability of promotion opportunities varies, impacting motivation and career growth differently across these sectors Understanding these differences is crucial for enhancing employee performance and overall organizational effectiveness in Vietnam.
Numerous studies have explored the determinants affecting employee performance globally, including factors such as workplace environment, earnings, and performance-related pay Notable research includes "Workplace Environment and Its Impact on Employees’ Performance" by Nowier Mohammed Al-Anzi (2009) and "Effects of Wage and Promotion Incentives on the Motivation Levels of Japanese Employees" by Kiyoshi Takahashi (2006) However, there is a lack of research in Vietnam comparing the impact of these determinants on employee performance between state and other sectors This study aims to analyze previous research on earnings, working environment, and promotion opportunities, focusing on their effects on employee performance in Vietnam It will also compare and discuss the differences in how these factors influence state sectors versus other sectors, contributing valuable insights to the existing literature and practice.
Justification for the research
Employees are the backbone of any organization, directly influencing its success or failure through their performance A deep understanding of key factors such as earnings, work environment, and promotion opportunities is crucial for enhancing employee performance Recognizing how these determinants impact various sectors differently within the Vietnamese economic system can provide valuable insights for leaders, managers, and employees alike This knowledge enables the development of tailored strategies to improve employee performance and boost the overall efficiency and effectiveness of organizations These considerations underscore the importance of this research.
Methodology
tot nghiep down load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
This research will employ a quantitative approach, gathering data through surveys conducted with employees from both state and other sectors in Ho Chi Minh City The data collection will utilize questionnaires distributed in printed form and via email.
The sample for surveying was 280 employees
Questionnaires: The participants completed a questionnaire with 20 questions; the questions were designed to survey about three determinants that are earning, working environment, and promotion opportunities affect employees’ performance
Procedure: the participants were informed about the questionnaires The questionnaires were provided to participants by printed papers or emails
The survey analyzed the factors influencing employee performance across state and other sectors, highlighting the differences in how three key determinants affect performance in these two groups.
Outline of the report
This research article is structured into five chapters Chapter 1 provides an overview of the study, while Chapter 2 reviews existing literature on how earnings, working environment, and promotional opportunities impact employee performance, along with the introduction of hypotheses and a conceptual model Chapter 3 details the research methodology, including sample selection, research instruments, procedures, and statistical techniques for data analysis Chapter 4 presents the data analysis and key findings, and Chapter 5 discusses the results, drawing conclusions based on the findings.
6 implications of the research findings The conclusion comes with some recommendations for further researches.
Definitions/concepts
Employee” (The Legal Dictionary) a person who has agreed by contract to perform specified services for another, the employer, in exchange for money/benefits
“Performance” (Business Dictionary) the accomplishment of a given task measured against preset known standards of accuracy, completeness, cost, and speed
In a contract, performance is deemed to be the fulfillment of an obligation, in a manner that releases the performer from all liabilities under the contract
Earnings refer to the income received by each employee for their work, encompassing salary, wages, and benefits provided by their employer or organization According to the Oxford Dictionary, earnings are defined as the money earned through employment.
The work environment, as defined by the business dictionary, refers to the location where tasks are completed, encompassing both the physical geographical site and the immediate surroundings of the workplace, such as an office building or construction site It also includes various factors related to employment, such as air quality, noise levels, and additional perks like free childcare, unlimited coffee, and sufficient parking.
When evaluating a working environment, it is crucial to consider its cultural aspects, specifically whether it fosters creativity or adheres to conventional norms, as this significantly impacts employee productivity.
A promotion in a career context signifies the advancement of an employee's rank or position within an organizational hierarchy Typically, job promotions come with a new title, increased responsibilities, and a salary boost, along with enhanced benefits and managerial authority Such advancements are generally determined by an employee's performance or length of service.
Delimitations of scope and key assumptions
This research focuses on Vietnam, a rapidly changing developing economy, which may limit the applicability of its findings to other economies Additionally, the small sample size, drawn from only a few provinces and cities, may not fully represent the entire country.
Conclusion
In this chapter the overview of the research was provided Research objective, research questions were introduced The justification for the research was expressed
This chapter highlights the data collection and analysis methods, defining essential terms throughout the process It concludes by outlining the research delimitations.
Numerous studies worldwide have identified various determinants that influence employee performance, encompassing both internal and external factors unique to each organization and individual These determinants can be tangible or intangible, and their effects on performance can vary significantly based on specific circumstances, firms, and organizational types This study focuses on three key determinants—earnings, working environment, and promotion opportunities—previously recognized in research for their impact on employee performance, aiming to develop hypotheses for a model analysis.
2.2 Classification models of literature review
This study explores the determinants affecting employee performance, highlighting a gap in existing research that typically examines only one or two factors Notably, there is a lack of comparative studies on the differences in determinants between state and other sectors within the Vietnamese economic system This section reviews previous studies on earnings, working environment, and promotion opportunities to analyze their individual impacts on employee performance and to formulate hypotheses for further comparison.
2.2.1 Earning and employees’ performance tot nghiep down load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
Most individuals seek employment for a range of benefits, both tangible and intangible, with income being a primary factor valued by employees across various sectors Many companies leverage financial compensation as an incentive to boost employee performance, ultimately enhancing productivity at both the individual and organizational levels.
Performance-related pay (PRP) is an effective tool for enhancing labor productivity for two main reasons Firstly, it addresses asymmetric information regarding workers' abilities and effort, motivating them to exert the appropriate level of effort Secondly, PRP can serve as a screening mechanism during the hiring process, attracting only the most capable candidates Consequently, this payment structure encourages employees to work harder and improve their performance, ultimately boosting the productivity of both individual employees and the organization as a whole.
In the workplace, individuals are primarily motivated by two key benefits: financial compensation and personal satisfaction Most employees do not work without these incentives, as monetary rewards, particularly performance-related pay, significantly influence their effort and productivity Research indicates that employees are more likely to exert effort when they anticipate valuable outcomes from their work (Van Eerde and Thierry, 1996) Reinforcement theory supports this notion, establishing a direct link between desired behaviors and their consequences, suggesting that pay can effectively encourage performance-related behaviors (Perry, Mesch, and Paarlberg, 2006) However, the effectiveness of financial incentives can vary across different situations.
Incentive programs aimed at enhancing performance and productivity must be carefully considered, as the relationship between payment and productivity is not always direct Gielen et al (2009) noted that while performance-related pay (PRP) can have positive effects on productivity, it does not guarantee an increase In team settings, measuring individual performance becomes challenging, leading to potential free-riding behaviors Consequently, group-based incentives may have minimal impact on individual productivity Furthermore, multitasking can create perverse incentives, where employees prioritize rewarded tasks at the expense of others Thus, the effectiveness of PRP schemes in boosting productivity is not always assured.
Employees in stable jobs view wage increases differently than those with short-term career goals, as wage growth serves as a short-term incentive in unstable employment situations (Kiyosh Takahashi, 2006) Consequently, the impact of earnings on employee performance may vary between state sector workers and those in other sectors, given that individuals in non-state sectors tend to change jobs more frequently.
Hypotheses H1: There is a positive impact of earning on employees’ performance
2.2.2 Working environment and employees’ performance
In both personal and professional settings, individuals are influenced by their natural and social environments The workplace environment, encompassing both physical and behavioral aspects, significantly impacts productivity and performance.
The workplace environment significantly affects employee motivation and performance, influencing their engagement with the organization Factors such as the immediate surroundings can impact error rates, innovation levels, collaboration among colleagues, absenteeism, and employee retention (Nowier Mohammed Al-Anzi et al., 2009) Understanding these dynamics is crucial for enhancing productivity and overall performance.
Several key workplace factors significantly influence employee performance These include engaging work that employees find enjoyable, opportunities for skill development that allow them to express and enhance their capabilities, access to adequate information, sufficient authority, and necessary support and equipment Additionally, a friendly and cooperative team, the ability to see the results of their work, competent supervision, and clearly defined responsibilities are crucial motivators for enhancing employee performance (Chandrasekar, 2011).
The physical layout of a workspace, including factors such as furniture, noise levels, lighting, temperature, and overall comfort, significantly impacts employee performance A well-designed workplace enhances productivity, while a poor environment can lead to increased complaints and absenteeism Therefore, improving the working environment is essential for boosting employee performance and satisfaction.
The quality of the physical workplace environment significantly impacts a company's ability to attract and retain top talent Key behavioral factors, such as employee engagement, productivity, morale, and comfort, play a crucial role in influencing performance A better workplace environment not only motivates employees but also leads to improved outcomes.
Inconvenient working conditions can lead to decreased performance and increased risk of occupational health issues, resulting in higher absenteeism and turnover rates (Demet Leblebici, 2012) A harmonious work environment, characterized by friendly interactions among employees, is essential for fostering productivity and well-being.
A supportive workplace fosters equality among employees, encouraging collaboration and knowledge sharing, which enhances individual and organizational performance According to Haynes (2008, in Demet Leblebici, 2012), the office environment's behavioral components significantly influence productivity Interaction among team members is identified as the most beneficial factor for productivity, while distractions are seen as detrimental.
In short, it is widely accepted that both physical and behavioral factors have great impact on employees’ performance or productivity
Hypotheses H2: There is a positive impact of working environment on employees’ performance
2.2.3 Promotion opportunities and employees’ performance
LITERATURE REVIEW AND HYPOTHESES
Introduction
Numerous studies worldwide have identified various determinants that influence employee performance, encompassing both internal and external factors specific to each organization and individual These determinants can be tangible or intangible, and their effects on performance can vary significantly based on the context of each firm and situation This study focuses on three key determinants—earnings, working environment, and promotion opportunities—previously recognized for their impact on employee performance, aiming to develop hypotheses for a model to analyze these effects.
Classification models of literature review
This study explores the determinants affecting employee performance, highlighting a gap in existing research that typically examines only one or two factors at a time Notably, there is a lack of comparative studies on the impact of these determinants across state and other sectors within the Vietnamese economic system This section will review previous studies focusing on earnings, working environment, and promotion opportunities to analyze their individual effects on employee performance and to formulate hypotheses for further comparison.
2.2.1 Earning and employees’ performance tot nghiep down load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
Most individuals seek employment for a range of benefits, both tangible and intangible, with income being a primary factor valued by employees across various sectors Many companies leverage financial compensation as an incentive to boost employee performance, ultimately enhancing productivity at both the individual and organizational levels.
Performance-related pay (PRP) is an effective tool for enhancing labor productivity for two main reasons Firstly, it addresses asymmetric information regarding workers' abilities and effort, motivating them to exert the appropriate level of effort Secondly, PRP can serve as a screening mechanism during the hiring process, attracting only the most capable candidates Consequently, this payment structure encourages employees to work harder and improve their performance, ultimately boosting the productivity of both individual employees and the organization as a whole.
In the workplace, individuals are primarily motivated by two key benefits: financial compensation and personal satisfaction Most employees do not work without these incentives, as monetary rewards, particularly performance-related pay, significantly influence their effort and productivity Research indicates that employees are more likely to exert effort when they anticipate valuable outcomes from their work (Van Eerde and Thierry, 1996) Reinforcement theory supports this notion, establishing a direct link between desired behaviors and their consequences, suggesting that pay can effectively encourage performance (Perry, Mesch, and Paarlberg, 2006) However, the effectiveness of financial incentives can vary across different situations, highlighting the complexity of employee motivation.
Incentives to enhance performance must be carefully considered, as the relationship between payment and productivity is not always direct Gielen et al (2009) noted that while performance-related pay (PRP) can have positive effects on productivity, it does not guarantee an increase In team settings, measuring individual performance is challenging, leading to potential free-riding among members Consequently, group-based incentives may have minimal impact on individual productivity Furthermore, multitasking can create perverse incentives, where employees prioritize rewarded tasks at the expense of others Thus, the effectiveness of PRP schemes in boosting productivity is not always evident.
Employees in stable jobs view wage increases differently than those with short-term career goals, as wage growth serves as a short-term incentive in unstable employment situations (Kiyosh Takahashi, 2006) Consequently, the impact of earnings on employee performance may vary between state sector workers and those in other sectors, given that individuals in non-state sectors tend to change jobs more frequently.
Hypotheses H1: There is a positive impact of earning on employees’ performance
2.2.2 Working environment and employees’ performance
In both personal and professional settings, individuals are influenced by their natural and social environments The workplace environment, encompassing both physical and behavioral aspects, significantly impacts employee productivity and performance.
The workplace environment significantly affects employee motivation and performance, influencing their engagement with the organization Factors such as error rates, innovation levels, collaboration with colleagues, and absenteeism are all impacted by this environment, ultimately determining employee retention.
Several key workplace factors significantly influence employee performance These include engaging work that employees find enjoyable, opportunities for skill development that allow them to express and enhance their capabilities, access to adequate information, sufficient authority, and necessary support and equipment Additionally, a friendly and cooperative team, the ability to see the results of their work, competent supervision, and clearly defined responsibilities are crucial motivators for enhancing employee performance (Chandrasekar, 2011).
The physical layout of a workspace, including factors such as furniture, noise levels, lighting, temperature, and overall comfort, significantly impacts employee performance A well-designed workplace enhances productivity, while a poor environment can lead to increased complaints and absenteeism Therefore, improving the working environment is essential for boosting employee performance and satisfaction.
The quality of the physical workplace environment significantly impacts a company's ability to attract and retain top talent Key behavioral factors, such as employee engagement, productivity, morale, and comfort, play a crucial role in influencing performance A better workplace environment not only motivates employees but also leads to improved outcomes.
Inconvenient working conditions can lead to decreased performance and increased risk of occupational health issues, resulting in higher absenteeism and turnover rates (Demet Leblebici, 2012) A harmonious work environment, characterized by friendly interactions among employees, is essential for fostering productivity and well-being.
Supportive employers foster an environment where all members are treated equally, encouraging collaboration and knowledge sharing This enthusiasm for mutual assistance enhances individual performance and benefits the entire organization According to Haynes (2008, in Demet Leblebici, 2012), the office environment's behavioral components significantly influence productivity Interaction among employees is identified as the most beneficial factor for productivity, while distractions are seen as the most detrimental.
In short, it is widely accepted that both physical and behavioral factors have great impact on employees’ performance or productivity
Hypotheses H2: There is a positive impact of working environment on employees’ performance
2.2.3 Promotion opportunities and employees’ performance
Promotion serves as a significant reward for employees who demonstrate strong performance and possess the skills necessary for higher positions within an organization Achieving promotions aligns with the aspirations of many employees, fulfilling their ambitions and recognizing their dedication and hard work Ultimately, the pursuit of advancement is a common goal for individuals across various organizations.
Promotions are often viewed as valuable opportunities that provide both tangible and intangible benefits Advancing to higher positions allows individuals to showcase and enhance their skills, leading to increased motivation and improved performance Additionally, promotions serve as a form of compensation that can effectively motivate employees However, the impact of promotions may vary across different organizations.
Conclusion
This chapter provides an overview of existing literature on three key determinants that influence employee performance: earnings, working environment, and promotion opportunities Based on these determinants, a model was developed that includes three hypotheses: H1 posits a positive impact of earnings on employee performance, H2 suggests a positive impact of the working environment on employee performance, and H3 indicates a positive impact of promotion opportunities on employee performance.
WORKING ENVIRONMENT tot nghiep down load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
This chapter outlines the approach to addressing the research problem, detailing the selection of participants and the data collection procedures It will also discuss the measurement instruments used for data gathering Finally, the chapter will conclude with an overview of the statistical techniques employed for data analysis.
This research utilizes a quantitative approach to examine how earnings, working environment, and promotion opportunities affect employee performance in Vietnam, while also comparing these impacts between the state and other sectors.
Before doing an official survey, a pilot test was conducted with 30 employees in both state sectors and other sectors
The survey, conducted between May and November 2012, targeted employees from both state and other sectors in Ho Chi Minh City A total of 280 questionnaires were distributed to selected respondents, which, while not a large sample size, was deemed sufficient for the study's objectives.
The study involved 20 questions, with a total of 200 participants, which is ten times the number of questions, exceeding the minimum requirement of four to five times Participants were evenly divided into two groups: state sector employees and those from other sectors, each consisting of over 100 individuals, thereby meeting the minimum requirement of five times the number of questions in the questionnaire.
A questionnaire was developed with guidance from my supervisor and adapted from prior research This study utilized three scales to assess employee performance, focusing on earnings, working environment, and promotion opportunities The questions related to these three factors were derived from Nguyen (2011), with four specific questions addressing the earnings determinant.
Presence of salary that reflects my performance Current income presence of attractive and competitive compensation system
My company has transparent and equitable policy of salary Presence of salary that encourages better performance
There are six questions for working environment determinant:
My company organizes stable working time
In my workplace, staff is equipped and provided enough equipment for doing their work
My superiors encourage and help me in doing my work so much
I receive support from colleagues so much
Relationships between colleagues at my workplace are friendly and relaxed
My workplace is safety and convenience
There are five questions for promotion opportunities determinant:
My company has variety training programs to improve ability of employees
I have been trained all skills that need for doing my work The company has created many opportunities for me to learn and improve
I have many opportunities for promotion
I have equal opportunities for promotion compared to my colleagues who possess similar qualifications.
Questions for measuring employees’ performance borrow from Rego and Cunhan
I believe I am an effective employee
I am happy with the quality of my work output
My manager believes I am an efficient worker
My colleagues believe I am a very productive employee
My performance is better than that of my colleagues with similar qualification
The questionnaire consists of twenty scales and is available in both English and Vietnamese versions It employs a 5-point Likert scale, ranging from 1 (strongly disagree) to 5 (strongly agree) For further details, please refer to Appendix A and B at the end of this thesis.
Data collection was conducted directly by hand-delivering instruments to the selected employees for this study Research assistants were tasked with distributing and collecting these instruments, which were then returned to the author for coding and analysis.
Participants who agree to take part in this survey will receive an email at their personal addresses However, they may not be able to respond to the questionnaires immediately and prefer to reply via email at a later time.
Validation and pilot test of the instrument
To establish the highest degree of reliability, the jury-validated instrument was pre-tested on a small sample (n = 30) of randomly selected employees who are working in Ho Chi Minh City
Mean comparisons were employed to assess the significant differences in the impact of various determinants on employee performance, specifically contrasting state employees with other employee groups.
Using the SPSS to analyzing the data and make the data analyzing:
1- Testing reliability of scales by using Cronbach’s Alpha and Coefficient:
The study evaluated the Cronbach’s Alpha for each scale and the beta of the factor loading in the model Cronbach’s Alpha is a statistical measure that assesses the correlation among questions within a scale This analysis helps eliminate inappropriate and irrelevant variables, ensuring the reliability of the scale Variables with a Corrected Item-Total Correlation below 0.3 are disqualified, while scales with a Cronbach’s Alpha coefficient of 0.7 or higher are considered acceptable.
This is in order to explore the relationship between independent variables
Factor analysis is used when the KMO (Kaiser-Meyer-Olkin) value is greater than 0.7 and it is inadequate if less than 0.5 (Nancy L, Leech, Karen C Barret, GeorgeA
Morgan, 2005), the transmission coefficient variables (factors loading) is less than 0.5 or the difference between the two factors less than 0.3 will be disqualified
Stops Eigenvalue (representing the variance explained by each factor) greater than
1 and the total variance extracted (Cumulative% Extraction Sum of Squared loadings) greater than 50% Extract method "Principal Axis Factoring" rotation
"Varimax" is used in the factor analysis scale independent variables
The study aims to examine the relationship between independent and dependent variables through Linear Regression, comparing the impact of various independent factors on the dependent variable across the state sector and other sectors The analysis focuses on key factors such as earning potential, working environment, and promotion opportunities, assessing their influence on employee performance.
20 enter The variables included in the same time to select based on the selection criteria variables with a significance level of
