Luận văn improving the human resources managementactivities at sunjin vietnam joint venture company

ABSTRACT ‘Thesis Title: Improving the human resource management activities at Sunjin Vietnam Joint Venture Company Pages :101 University : Lunghwa University of Science and Technology

Me Ab Lunghwa University of Science and Technology

Thesis for a Master’s Degree

Improving the human resources managementactivities

at Sunjin Vietnam Joint Venture Company

Lunghwa University of Science and Technology Approval Certificate of Master's Degree Examination Board

This is to certify that the Master’s Degree Examinations Board has approved the thesis Improving the human resources manapementactivities

at Sunjin Vietnam Joint Venture Company published by Mr / Ms._Su Bui

Bao Ngoc_ in the Master Program of Graduate School of Department of Business Administration

Master’s Degree Examination Board

Date! /

ABSTRACT

‘Thesis Title: Improving the human resource management activities at Sunjin Vietnam

Joint Venture Company

Pages :101

University : Lunghwa University of Science and Technology

Graduate Schoal : Department of Business Administration

Researcher : Su bui Bao Ngoc ~~ Advisor : Assoc Prof Han Hon

Keywords; Human Resonecs Management (HRM), cffectiveness, affceting factors,

reality, impact

In today’s integrative context and technology transfer, Iman resources become a factor thal bring competitive advantages for countries in goncral and cach cntorprise in particular It is a strategic toot that helps enterprises maximize their employee’s individual talent in order to bring efficiency in production and business which 15 most businesses expect Kor a long-term, stable development, it requites each business has to have an approptiate business strategy, a policy to maintain the financial stability and to well- manage Iho organivalion’s human resources Therefore thesis bas focused on the HRM practices at Sunjin Vietnam Joint Venture Company to research the thetors impact to the cffectivencss of HRM activitics in there Data used in making analysis was collected from

conducting survay at Sunjin Vietnam Based on 105 valid responses from employees, the

study indenfified three components “Training and development”, “Salary and compensation” and “Working environment — which explain effective level of HRM performance in this company The relationship between these HRM practices components and affecting factor is investigated Uraugh regression analysis As the result showed, these three components have positive intluence on the effectiveness of HRM activities in which silary and compansation has the most significant impact on offective lavel of HRM performance In addition, based on these findings, the thesis also gives some suggestions

for Sujin Vietnam to futher improve IIRM practices and increase employees’ satisfaction level to company.

ACKNOWLEDGEMENT During the time of preparing and completing my report, 1 was received numerous support and cneouragement from many people Tn addition, this is horchy to expross my

sincere gratitude to them

First and foremost, 1 would like to give my sincere thanks to the lecturers,

especially to my supervisors Assoc Prof Han Hou and Dr Mai Duc Anh for their devoted

attention, lessons and gnidance, which have oquipped me with key knowledge and cssential skills throughout the course More importantly, everything 1 have learned here would undoubtedly help me tremendously in my work in the fature

Second, I wish to express my gratefiulness to my colleagues at Sunjin Vietnam Joint Venture Company for their enthusiastic support and creating favorable conditions for me to have more usefil information to complete this report

1 would also like to thank Intemational School - Vietnam National University,

Nantes University for usefiil supports during studying and researching to complete this

2 THEORETICAL FRAMEWORK -« H4oi04880246401286s,xsel 3

2.1 Conceptual framework on human resource management 5

2.1.2 Characteristic of enterprise's human resource 5

2.2 The factors impaet on HRM performanee -2 2e TỔ 3iã\1licogrlilibNhaseisknidalididtDisaiABiSioiGANBfiSiauaudiogatauaaaaagsssaaagJff

2.3 Literature 1eview oo ccosssestecssntestnstntersenesecnasnsnee Seseeeeeeeoe TỔ 2.4 Research Model and Hypotheses - reo TÔ

BAT ROO ON MODE) eee-c«nnirnbdiindeioiinisdroniifBgiiseiidGnisdbsrooegEsseeisseeoollÐ)

bai

RESEARCH CONTEXT AND METHODOLOGY

3.1 Overview of Sunjin Vietnam Joint Venture Company

3.2, Organizational structure and HRM division 020 cccce27 3.3 Research Methods , aspen BD 3.3.1 Research approach 29 3.3.2 Designing qiuesfloiNndiFe 002 —

3.3.3: Sample and Data Collection - diện gotuozginyasgsasaoasSSf) 3.4 Analyzing data plan

3.4.1 Reliability analysis by Cronbach's alpha sone 34 3.4.2 Exploratory factor analysis ss ? 35 3.4.3 Regression analysis .00sssinnenenninnennnneneiennnunneneeeein 3S 4 ANALYSIS THE REALITY OF HRM ACTIVITIES AT SUNJIN VIETNAM JVC AND SURVEY RESULTS

4.1 The business results of Sunjin Vietnam in the period from 2014-2016 38

4.2 The reality of HRM activities at Sunjin Vietnam JVC 39)

4.2.1 The viewpoint on human resource management at Surin Vietnam JVC 40

42.2 Characteristics of human resource of Sunjin Vietnam JỊC 41

423 The reality of HRM practices at Stnyin Vietnam JVC 44 4.2.4 Evaluating the reality of HRM activities at Sunjin Vietnam JVC SL 4.3 Research results and analysis 52

4.3.1 Dafa deseripfiðH s2 2222222111211 9) 43.3 Reliability analysis and scale saursecsaerits § saat 56 4.4, Exploratory Factor Analysis 60 44.1 Exploratory Factor Analysis of Affecting Factors Scale 60

4.4.2, Exploratory Factor Analysis of Effectiveness of HRM performance Scale 64

4-5-1 Rebrr6tSIOHIANHDISẰ:.cuonun ngàn dan gà nga ghi HH 6011801088as820isssscaisisa-OÐ)

4.5.2, Research model and hypotheses tested result 69

5.1 Assessment of the effectiveness of HRM practices at Sunjin Vietnam 7L

5.2 The allecling factors on the offactivenass of HRM activities al Sunjin Vietnarn YC

5.3 Suggestions to improve 118M performance at Sunjin Vietnam

5 3 1 iuprove component of iraining and development 72 5.3.2, Inprove salary and compensation COMpORENt sscscseeseeveeceesiveenesiei TA

LIST OF TABLES AND FIGURES

Figure 2.1, The Michigan model jcscssninieomnsnnennnennenmrenammiatistnmanenense T7

Figue 3.1, Organization structure of Sunjin Vietnam Joint Venture Company 29

Tabble 4.1 Sunjn Victmam"s key performance indicator in the period of 2014-2016 38 Table 4.2 Labor structure of Sunjin Vietnam

‘Table 4.3 The growth rafe of employee education at Sunjin Vietnam JVC in the period

Figure 4.1, The recruitment results of Sujin Vietnam JVC fiom 2004 to 2016

Figure 4.2 The correlation between labor force and gross reverme of Suniin Vietnam in the

‘Table 4.5 Gender distribution among 105 participants 54 Table 4.6 Tẩnealion anđ seniorily ö[ 105 participants 35

Table 1.8: Exploratory Factor Analysis of affecting factors to the effectiveness of TRM

Table 4.9: Reliability statistics and exploratory factor analysis of affecting tactors to the

effectiveness of LIRM practices at Sunjin Vietnam, 2nd time 62 Table 4.10: Exploratory Factor Analysis of the cffectivencss of HRM performance Scale 64

Figure 4.3: Regression Standardized Residual Error! Bookmari‹ not đefincd

‘Table 4.14: Repression analysis — the second time Error! Bookmark not detined

Table 4.15: Hypotheses Tasted Results nen ae

Table 4.16 The effectiveness of IIRM perforruanez at Sunjim Vietnam 7L

‘Table 5.1 ‘The effectiveness of HRM performance at Sunjin Vietnam

1 INTRODUCTION

1.1 Problem identification

In today’s integrative context and technology transfer, human resources become a

factor thal bring competitive advantages for countries in general and each zmcrprise in

particular When the world is more and more flat, the elements of machinery and

technology could be bought or imitated, but the hmman resource factor is a competitive

advantage that cannot or takes a long tims to copy It is a strategic tool that helps

businesses identify their manpower needs, provides befitting operational policies and

ensures that businesses have enough human resources with quality and capacity to work inost effectively 11 is also helps cnlerprises maxintize their employce’s individual talent in

order to bring efficiency in production and business which is most businesses expect An

enterprise might have modem technology good service quality and strong infrastructure

but lack of a good workforce, it cannot survive long and ercate competitive advantage

because human being is the factor that makes the difference among businesses

For a long-term, slable development, it requiros cach business has to havo an

appropriate Iusiness stutzgy, a policy lo maintain the financial stability and ta

manage the organization's human resources, If the HR activities are effective, the enterprise will have many positive solutions to save costs and improve organizational performance, such as reducing administrative costs; organize a compact personne! apparatus; sclecting,

the right people, the right job; raising productivity etc In fact, many enterprises in Vietnam

as Sunjin Vietnam IVC ara using arly abont 60% of their human resource produslivity and this ratio seems lower in the admmnistrators group [41| It shows HRM activities in these enterprises are not efiéctive ‘I'he difficulties and limitations in human resource management require enterpris

s change fundamentally the way they usc lo manage their

manpower They need to have a human resourc: management system with suitable policies

on recruitment, training, salary, bonus and evaluation for their current development

achieved are a pride not only to Sunjin Vietnam's employees but also a good sign to ths

development of the country However, currently the challenge for the company is how to

remain and expand its market share and influence on customers in this period of economic crisis Sunjin Vietnam always considers thal people are the most valuable organizational

asset and to be a strong organization, it should have practical solutions to improve the

efficiency of human resource management activities and its inherent competitive

advantage Irom these realities the author has chosen the topic “Jmpreving the human resource management activities at Sunjin Vietnam Joint Venture Company” is necessary to increasing the effectiveness of HRM performance in future

1.2 Research objectives, questions and scope

1.2.1 Research objectives

‘The paper focused on investigating the reality of IRM performance and determining the main elements of TIRM applied al Sunjin Vietnam IVC as well as the imporiance level

of factors in achieving effectiveness of HRM performance in there The study also

examined the impact of these factors on the effectiveness of company’s HRM performance Base on survey resulls and evaluating the impacl degree of the factors, the paper provided

valuable suggestions and recommendations to Sunjin Vietnam JVC which can improve its

1IRM activities

1.2.2 Research questions

1.2.2.1 ‘To what extent does Sunjin Vietnam JVC apply the HRM concepts?

al Sunjin Vietwarn IVC?

1.2.2.3 What are solutions te improve the effectiveness of HRM performance at

‘business in Sunjin Vietnam FVC and its HRM practices to access the main elements affect

on the effectiveness of ITRM practices in this organization From those collected data and

analysis resuits will formed the basics for determining and selecting the tater solution for Sunjin Victnam IVC to improve its HRM performance in the future

1.3.2 Research scope

‘The shudy scope is idenlifying and measuring the factors thal aflecl on the effectiveness

of HRM practices at Sunjin Vietnam JVC, Therefore, it is not only stopped at testing the theories regarding the human resource management and the research models used to measure impact level of the main factors on IRM performance but fivther, at is the way far me to apply the knowledge, skills and my expericnecs into the sctting-up the HRM solutions for a

specific enterprise, from that contribute the useful points in HRM activities of Sunjin

Vietram JVC where I am working for, Tr this paper, I will focus on tesgarch the information and figures related to the reality of the HRM activities of Sunjin Vietnam in the

period from 2014 to 2016

1.3.3 Data collection methods

In order to answer the three main rescarch questions, the author uscs following methods for data collecting and analyzing:

Secondary data: According lo Saunders et al (2009), secondary dala is the information which is collected from public resources such as books, journals, and the Internet and this information is collected by previous researchers in Eine with curent studies’ objectives Major advantage of sceondary data is less time consuming and lower effort to colleet (0 the researchers (Srivastava and Rego, 2011) In this study, secondary data is collected from books and journals which are about human resource management concepts as well as previous empirical evidences about the impacts of recognition; training and development; salary and compensation, working environment to the effectiveness of human resource management Figures were collected from annnal reports, HR reports and actual data of

‘business and HRM implementation at Surgin Vietnam JVC in the period from 2074-2016

Primary data collection and analysis Primary data is considered as the information that is self-collected by the researchers without reliance on public sources (Guffey ef al., 2010) According to Saunders ct al (2009), primary data has the advantage of dircetly supporting the studies but the researchers often take time to collect this information In this study, primary dala is collected through surveys of questionnaire wilh Televanl respondents

Tn more detaifed, a survey of questionnaire is established to collect the assesstocnt, from the

£mploy2ss at Sunjim Vietnam Joint Venture Company and their assessments are made up in term of recognition; training and development; salary and compensation, working environment These quantitative data would be processed by software SPSS version 21.0

with methods such as reliability test Cronbach Alpha, exploratory factor atelysis, one-way ANOVA and multiple linear regression analysis The author found out solutions to attain the above objectives

1.4 Contribution of the research

Within the boundary of this thesis, the author aimed to explore the factors impact to

the effectiveness of HRM activities Base on assessed results the reality of HRM

porformemes at Surin Vicinam ISC as well es the impact level of these factors to the effectiveness of HRM practices, the author proposed some solutions to improve HRM

activities for Sunjin Vietnam JVC in the future ‘Those solutions constituted conducting

extensive lraining program for its employees relevant to the changing neds of jobs and business; building a core team who are ready to complete the company’s basic mission in any situation; revising working processes, evaluating and recognizing employee's

achicvemenl: crihaneing the prestige of Sunjin Victmam JVC al dorrestic and forzign

markets; building and implementing the culture of Swjin Vietnam JVC

1.5 Structure of the thesis

Regardless of the introduction, conctusion, reference and append

four major parts as following,

(1) Theoretical iramework

(2) Rescarch contex! and incthodutogy

(3) Analysis the reality HRM practices in Sunjin Vietnam JVC and survey result,

2 THEORETICAL FRAMEWORK

This chapter will present theoretical ftamework for the research It includes fundamental

concepts on human resource, its role, fictions and objectives of human resource

maragemenl, The characteristics of enlerprise’s human resource and the maim factors impact to the effectiveness of HRM practices well as research model and its hypotheses

were also mentioned 1n there

2.1, Conceptual framework on human resource management

2.1.1 Concepts of human resource

According to Desslar (2010), the term of human resources was first mentioned in

1960s to refer people who ars working for a company or organization and create a

workforce with the valuc of compotcncics, knowladge, skills, life experieness and

motivation that contribute to increasing in competiveness and value of organization ‘I'ran

Suan Cau & Mai Quoc Chanh (2008) defined human resource as the manpower capable that crcate material and spiritual wealth for socicty that is expressed in certain quantitics and qualities at a specific time Wright et al, (1994) identified that human resource is a combination among skills, knowledge and competencies that were put under the organizational control in the form of direct labor relations Those capabilities express in the

form of cmployze’s behavior thal accordant wilh organizalional goals He poinled oul this concept was also utilized to describe a fimctional department charged with activities related

to employees These activities normally encompass recruiting, selecting, training, employee

benefits and retention efc

2.1.2 Characteristic of cuterprise’ s buman resource

‘Tran Kim Dung (2011) defined human resources of an organization were formed rely

on individuals who have different roles and tinked lo cach other for corlain cnterprise

purposes So enterpris

implementing, completing its short-term and long-term tasks The working ability is a set of

s human resource is total labor capacity that is mobilized for

health factors and workcr’s qualitics The working capacitics arc the more synchronous and

consistenl with the needs, the quality of enlorprise’s human resource is guaranleced

JIuman resources contain human nature with creative capacities, needs, motives and psychological charactcristies of differenl individuals These make the difference amd

superiority of human resources compared to other sources Workers are able to sst up teams, groups and trade unions to protcet their interests Their behavior might be change or not depending on themselves or on the impact of the surrounding environment

Research by Do Vari Phuc (2004) found thal snlerprise’s hummn resource is independent inputs It determines the quality, cost, duration of other inputs, governs the quality, cost, and duration of intermediate products, components and outputs of the business, ‘'his is completely confirmed hecanse all business’s activities are done by people and then retuned to serve themsclves They analyze and forecast market domand, competitors, decide on strategies, business plans and product - customer with defined quatily and quantity, They creative, transfer technology aperale machinery and equipment and continuous improve and modernizes machinery and equipment People detine capital, material needs and labor demand as well as assure those important inputs Nowadays, allhongh science and technolagy advances rapidly, modern machines and deviees arc invented but still need human beings to control and operate It is clcar that without human factors, other factors are meaningless Therefore developing human resource in enterprise has gol following fundamental features

Fustly, human resource in enterprises is a part of a national and territorial human resource, That is the labor capacity that businesses can mobilize from manpower of nation and lerrilories

Secondly, enterprise’s human resource is not only a simple summation and each individual’s working capacity in a business but ths resonance of all staf’ capacity to work

in the team of (he organization, TL means developing hunwn resources in the enlerprise is not only enhances each individual's working ability that reflected in the working quality, but stimulate groups work among the employees such as appropriate placement, strength, befilting compensation and improved-warking environment,

‘Thirdly, the human resources in the business are aligned with the business objectives and must be planned from the business objectives Therefore, the developing human resources in the entcrprisc must be bascd on the enterprise strategic objectives and aim to deal with those tasks

Fourthly, tmman resource in the enterprise is a resource similar other resources such

as capilal, technology ole bul il different in term of ils mature and role in the entorpriss TLis

to be controlled by psychological factors, so the process using it will produces greater value than its own value, At the same time, it plays a decisive role in cfivetively utilizing other resources of the business

Fifth, if human resource management airs lo optimize the business’s resulis and employees’ ability, highly economic efficiency and satisfy the employee’s demand, the developing human resources is raising the working capacity that the business might be mobilize to complete the business’s tasks and objectives

2.1.3 Concepts of human resource management

It cannot be demtied that employees are the most valuable resource of an organization Without a good system of cmployecs who arc working for the same goals, the organization’s operation cannot be successful ‘the problem is when an organization owns a

good system of employees how ean they mmage them in ordsr ta achieve the mission and vision of the organization because each person is a unique individual and it is not easy to group people to work together Since then, the need of man resource management occurs During time, thers are a lot of definitions abont human resource management which is considered as a study of activities related to people working in an organization‘company,

According to Byars& Rue (2006), human resource management is defined as the activities

of an organization in managing all levels of employees in the organivation for the purpose

of reaching, the orpanization’s goals On the other hand, Dessler (2008) states that aman resource management consists of many aspects including recruiting, screening, training, rowarding and appraising However, human resource mmagement is not only concerned with the cfficicncy of using people in order to achicve organization’s goal but also mect the individual's goal, in addition, DeCenzo and Robbins (1996) stated that human resource

2.1.4 The role, funcfions and øhjecfives of IIRM

The role of human resource management is to plan, develop and administer policies and programs designed to make optimum use of an organization human resources, Its objectives include (1) effective utilization of humen resources; (2) desirable working relationship among all members of the organizations and (3) maximum individual development

According to Akbar Ali (2013), imman resource management has got four functions consist of staffing, training, devclopment and motivation and four activities namely getting people, preparing them, stimulating them and keeping them, ‘Therefore, it can be said that human resource management plays an important rote in the creation as well as development

of an organization in the increasing fierce competition, especially in the trend of globalization According to Kelliher and Riley (2002), the impact of human resource Tmanagemoul is grealest when it involvss a sol of coherent policies and practi and they also consider that human resource management initiatives should be implemented as pat of

an integrated package

‘The overall purpose of human resource maragement is lo ensure that the organization is able to achieve success through employees Ulrich & Lake (1990) stated that human resource management is the source of organization capabilities which allows organization learns and capitalize on new opportunilics, According lo Michael Armstrong (2006), human resource management is concemed with acueving objectives which are summarized

as below

* Organizational effectiveness: according to Purcell ef al (2003), the strategy of human rosourec Tnanagomenl is io onhanes the effectiveness of organization through developing and strengthening the programs which related to knowledge management, talent management and creating a great place for working

* Human capital management: contains of the people who work and bring the success

to the organization Bontis et al (1999) defined the human capital as one factor of human issue of an organizalion which includes the intelligen skills and expertise that give the organization its distinctive character The human elements of the organization are those which are capable of learning, changing, innovating and

providing the creative which ensure the survival as well as the long — term

development of the organization

Knowledge management: according to Scarborough of at (1999), knowledge management is a process of which creating, acquiring, capturing, sharing and using knowledge in order to enhance performance of each individual in the organization

Reward management: one purpose of human resource management is to strengthen

the motivation, job commitment of ermployces through the processes and policies which ensure that employees are valued and rewarded for what they do and achieve and for the level of skill and competence they reach

Employee relations; human resource managsment’s task is to create a productive environment and maintain the fiiendly relationship between managers and staf as well as bebween colleagues

Ensuring thal the arganivation is in corupliance with laws allecting the workplace such as: human rights, employee equity, occupation health and safety ete

* To provide the organization with well — Irained and welt — molivalcd employs

= To increase the employees” satisfaction

In short, according to the functions of human resource management, the role and significance of it is presented as below:

() Reeruilinont and [raining: is one of the majar responsibilities of the human resource team The HR managers come wp with plans and strategies for hiring the right kind

of people They design the criteria which is best suited for a specific job description Their othcr tasks related to recruitment include formulating the obligations of an employee and the scope of tasks assigned to him or her Based on these two factors, the contract of an employee with the company is prepared, When needed, they also provide training ta the employ

Thus, the staff members get the opportunity to sharpen their existing skills or develop specialized skills which in tum, will help them to take up some new roles

according to the requirements of the organization

(2) Performance Appraisals: HRM cncourages the people working in an organization,

to work according to their potential and gives them suggestions that can help them

lo bring about improvernent in ii, ‘The leam communicates with the staff individually from time to time and provides all the necessary information regarding,

their performances and also defines their respective roles, This is beneficial as it cnables them to form an outline of their anticipated goals in much clearer terms and thereby, heps them execute the goals with best possible efforts Performance appraisals, when taken on # regular basis, molivale the employees

(3) Maintaining work atmosphere: This is a vital aspect of HRM because the performance of an individual in an organization is largely driven by the work atmosphere or work culture that prevails at the workplace A good working condition is one of the benefits that the employees can expect from an cfficicnt human resource team, A safe, clean and healthy environment can bring out the best

in an emptoyee A friendly atmosphere gives the slafVa job salisfaction as well

{4) Managing disputes: In an organization, there are several issues on which disputes

may arise between the employees and the employers You can say conflicts are

ahuost inevitable Th such # scenario, il is the huroan resource deparlinent which

acts as a consultant and mediator to sort out those issucs in an effective manner

‘They first hear the grievances of the employees ‘hen they come up with suitable

solutions Lo sort Iherm out Tn other words, they Lake Limnely action and prevent things

from going out of hands

(5) Developing public relations: ‘The responsibility of establishing good public relations fies with the HRM to a great extent They organize business meetings, seminars ancl

various ofticial gatherings on behalf of the company in order to build up

relationships with other business sectors Sometimes, the IIR department plays an aclive role in preparing the business and marketing plans for the organtvalion too

Any organizations, without a proper setup for HRM is bound to suffer trom serious problems while managing its regular activities Kor this reason, today, companies must put

alot of effort and cncrgy ilo selimy up a strong and cffeelive HRM

2.2 The factors impact on HRM performance

Fisher and Ackerman (1998) defined thal in Ihe effectiver ss of TIRM practices was

affected directly by business’s internal environment through four elements including recognition, training and development, salary and working environment In this section 1 will study these factors as a theoretical background to build research scales and

hypothesizes in next part.

2.21 Recogn

Recognition is one of the factors that influence on employee behavior when they are

working for particular firms Tl is defined a

by a group to individuals who undertake desired behaviors” (Fisher and Ackerman, 1998)

In this context, recognition is defined as appreciation or depreciation fiom people within the firms towards the achievement of one employee (Miller and Lawson, 1999)

s a public expression of appreciation given

Recognition is also considered as intrinsic rewards and the cfitctivencss of rcoognition is also sourced by extrinsic rewards, While intrinsic rewards refer to job characteristics,

#xIYisic

ards come from pay and bonus level that the employees are get when lhey work for the firms (Kalleberg, 1977) Moreover, intrinsic and extrinsic rewards have inter-

correlation with each other According to Ajila and Abiola (2004), intrinsic rewards are

goncrated when the employees have a sense of recognilion (rom their supervisors and olher collcagucs in term of task achicvement and cxtrinsic rewards, normally, refers to pay level

or bonus for outstanding achievement Hafiza et al (2011) indicate that intrinsic rewards

always come up with extrinsic rewards and the employees do not behavior right if there is lack of either intrinsic or exttinsie rewards,

Recognition is considered as important antecedents of employee behavior and it impacts indircelly to crmployce performance TLis nolable to stale thal crmployce behavior is positive when they are received significant amount of recognition ffom their supervisors and their peer colleagues (Katou, 2008) Many firms today establish recognition mechanism through inlrinsic and extrinsic rewards in order to ingmove employee performance and it is also key source to fiuther upgrade the firm performance itself

(Deeprose, 1994) Such context is also supported by academic studies Kor example, the

study of La Matia (1995) shows that when Ihe cmployces reccive significant reongnition fiom other people, they will work in extra performance The stady of Ronra and Chaisawat (2010) explores that the employses at hotel industry get right behavior and better

performance: when recognition policy is put into practice Other studies also find the same

finding of recognition is main factor influencing on employee job satisfaction and employze performance (IEerzberg, 1957, Locke, 1976, Weinslein, 1997; Ali and Aled,

industries such as software development (Jain, 2010) and outsourcing (Coi et al., 2007) In

extra context, intrinsic rewards and cxtnnsic rewards impact to cmployce bchavior and

empl

exinin

performance but the level of impact is different According to Mottaz (1985),

rewards impact fo employee behavior and employe performance but only

strength in lower level of occupation

2.2.2 Training and development

‘Training is defined as a set of activities that are planned to increase the knowledge of

the cmployces within their work scope and the training goal is to align the crinploycc

behavior and employee performance with the business goal of the firms (Landy, 1985) According ty Patrick (2000), training is impurlant activity and if helps the employee to

improve working knowledge and skills and aims to improve employee performance Along

with training, development is another activity and it is viewed as long term activities and

the objective is to upgrade one employee Lo managerial position (Stcinmel and Lawrene,

1996) Morcover, training is conduetcd to improve the current cmployccs performanc:,

development is utilized to help the employees to gain future performance and progress (Miller, 2006)

Training and development is an important factor that has an impact on both of

employee behavior and employee performance (Owens, 2006) The first aspect of this

faclor is availability of training s ion and when the employce porocives thal they ean access training at the firms, they are more satisfied with the job and therefore better employee behavior (Sahinidis and Bouris, 2008) The studies fom Bartlstt (2001) and Rowden and Conine (2003) affirin thal when (he firms establish the opportunity for workplace learning, the employee behavior will be maintained at positive level, showing through job satisfaction and job performance Empirical finding about the relationship belwcan employce behavior and performmince and raining and developmient is explored in several surveys, For example, two surveys are conducted by Blum and Kaplan (2000) and

Melymuka (2000) in Information Technology — I’ and two surveys come up with ths result

of training and development has strongest influcnec on cmployce behavior and cmployee performance, Same key finding is also found in other industry like among nurse in United Kingdom (Slields and Ward, 2001) Mowever, other shudies show that training and development has insignificant impact lo employes behavior and employee performance

For example, Tansky and Cohen (2001) show that training and development has lowest influence on employee behavior which is quoted through the level of job satisfaction

2.2.3 Salary and compensation

Salary is defined as “a form of periodic payment from an employer to an employee, which specified in an employment contract” (Sharma and Bajpai, 2001) According to Cable and Judge (1994), salary is considered as extrinsic rewards and it is basis factor influencing on employee behavior and employee performance in case of salary 1s paid at the level of employee acceptance The relationship between cmployee behavior and salary

is shown in previous studies, Although eatlier studies find weak relationship (Hoppock, 1935), laler studies come up with different result whether salary has higher impacl lo employee behavior and employee performance (Lee and Wilbur, 1985, Neuyen et al,

2003) According to Sweet et al (2006), salary is basic thing when the employee sets to

work for particular firms and the level of salary paid impacts to daily living standard of the cmptoyces which is clearly shown through Necd Hicrarchy Theory of Maslow (1943) Empirical study which is developed by Sowmya and Panchanatham (2011) examines the impacts ftom pay, promotion, organization factors, supervisor behavior, job and working condition, core worker behavior to the level of job satisfaction and they identify that pay is the most influenced one, Same key finding is also found in case study of Amendolair (2007) Further study fom Dicner and Sclignmn (2004) showed that cmployces who gel lower salary than others often have lower job satisfaction and they are easy to quit the jobs Moreover, one of the most important aspects in examining salary is the perception towards how the salary is paid (TTulin and Smith, 1965, Spector, 1997) 11 is required to have fair salary paid among the employees who share the same working characteristics and

conditions (Adam, 1963) Katzell (1964) indicates that the satisfaction to pay level is

goncrated from (he gap in between perceive of necd-lo-pay and acluat reccived payment

Compensation is one of the most vital factors affecting the employee’s working

motivation Its activities encompass caring the material and spiritual life that the business

did for its employees Thess activitics aimed to satisfy the basic noeds of workers and improving the quality and efficiency of enferprise’s business operations In any firm, well- quatify employees do nol mean they will work effectively, loyal lo the company because it

depends on their individual necds and motivations Tn order Lo promote individual's talents:

and capacity, compensation is the best way to promote personal motivation that contributes

to create the busincss’s strength By providing physical conditions, it also contributes to reproducing working power and maintaining a stable human resource for business Along with olher TIR ac uch as Tecruitmenl, training and development, compensation helps enterprise fo improve its human resources quality to meet the increasing demands of business operations, Certainly, managers need to know how to develop and implement

consistent compensation policies that motivate and stimmlate employees to work

offectively, maintain a good working relationship in the workplace, Particularly, the development and application of compensation policies, reward and discipline regimes, improving working environment and conditions, the healthcare, insurance and occupational safety, Thus, compensation contributes to the cost saving for enterprise In terms of efficiency, compensation is associated with the enterprise’s cost through the payment of

wages, investment for activities to mect the material and spiritual 7 s of the employes and inercase the business efficiency of enterprises

224 ‘Working environment

Working environment is the last faclor that is pul info discussion in this study TL is defined as “all things involve the employee's job such as relationships with colleagues, managers, organizational culture, space for personal growth, and so on” (Arabi, 2000) It is considered as a very important ficlor in promoting organizational development so that businesses have more favorable conditions in attracting their human resources, especially high quality human resources Furthermore, a professional and ñisndiy working environment is a great opportiunily for staf to asserl and maximam develop their working ability to serve practical requirements of enterprise Therefore, it is an indispensable need

in the development of Human resonroes at th enterprise and sometimes it is more molivating meaning fal than malctial compensation However, HR rescarchers cantond that

a sustainable working envionment encompasses both physical and non-physical

would not support for good communicating and sharing among colleagues On the contrary, an open environment will limit privacy and concentration Therefore, a sustainable working environment mst ensure the balance of these lwo faclors

(2) The office environmentally friendly, reduce carbon emissions Currently, it is a globat

while muy offices offer more cnvironmenlally friendly initiatives such as

gteen spaces, reduced printing, savings energy and water etc

@) The office allows to work in everywhere via telephone and video communication, reducing travel time A virtual office or home office that allows employees

to communicate with their collengues and customers through a video conference system will reduce travel tire and reduce greenhouse gas emissions,

The physical environment is a merely necessary condition for a sustainable working

environment The

are seven nonphysical factors need (o be considered inckuctings (4) A sustainable working environment must ensure a balance between work and life,

helping cmployces mect work necds but not forgetting family obligations and

relationships ‘his determines the long-term attachment of employees to an

organization and motivates employees to work more effectively

thinking, towards the common benefits In this environment, employees have got a habit of

making constructive comments for common inlcrests rather tham imposing persomat thoughts and criticisms

(6) = A sustainable working environment is also a place cmployces perecive their

work creates value for society Employees in this environment will know their value and or

the company value creates for the society,

(7) Job ensuring A sustainable working environment would not ta be survived if

employees are always in a precarious position tor their future Therefore, an organization

(8) Proactive in work A sustainable working environment is a place the employses fiom the lower to upper levels can manage their work according to the ouflined plan Proactive helps employ: s maximive efficiency

(9) Ensuring safety and healthy This is one of the key elements of a sustainable working environment, espe jatly for organizations where employ: work in high risk conditions for their health and safety such as mining, oif and gas, garment ete

0) Development opportunities In particular, employees in a sustainable work environment always receive training and development programs that match their position and expertise

2.3 Literature review

Beer et al., (1984) in his study on “Managing Human Assets” argue that managers

need to have the appropriate assessment methods for the effectiveness of AR policies that were built for their organizations He proposed the famous Harvard Model rely on an analytical approach of the “determinants and consequences of HRM policies” In his human-centered model, employee satisfaction was regarded as fimdamental base on personal influence, work regime, human resources flows and salary level The Harvard

model can be considered ax one of the Lypical representatives of the "sof" TIRM trend TL advocates flexibility, negotiation, efficiency, quality, environmental recognition and labor

telations rights However, some HR researchers eriticized that the Harvard model might be

conflict with organizational business objectives and deviate concepts of cost minimization and profit maximization (Armstrong 1987, Lopgc, 1995)

Michigan Devamna et al., (1984) offféred a model with four factors affected on human resource management in enterprise consist of recruitment, appraisal, development and rewards This model base on employee achievemmenls; check stralegy, organizational structure system to manage people; in selection process, candidates meet organizational roquiroments will be recruited: employes aeticvemenls will be recognized in HR assessment process, evaluation results are a fimdamental to identify salary level, rewards

and development (sce figure 1.1).

Source: Kombrun, Vichy & Devanna, 1984,

This model advantage laid on its attachment to market performance and enterprise development because cost minimisation for workers were saved as any other resources 1IRM planning concentrate on business not on human resource 30 it might be guarantee minimum the curren and future ernployment requirements of businesses However, the

right-besed approach of this model will be disintegrated soon by the presence of group diversity and intra-group conflicts leading to organizational failure (Chuang st al., 2004) Ramall, (2003) studicd on “Managing Employcc Retention as a Strategy for

Increasing Organizational Competitiveness” with a sample of 115 employees who wers

working for a large, complex organization, He has measured the improving the cflectiveness af HRM practices throngtr Ihe following components: stratsgic planning: employees recruitment; training and developing; development and organizational change; managing work results: salary and bonus system, organizational theory and behavior, ITs found that managers has considered HRM department as an adviser and a supporter in the effort to retain their excellent employees hey often used the support of their department leaders fo approve fimding when applicable for budget raise Employes preferred a flexible work schedule which was one of'the main reasons for their decision to remain with

company or not

Findings of Shelagh Dillon and Demand Media in study on “Factors aféeting Human Resource plans” determined six factors cffecting on HRM inclading

(1) Political factors: political changes from a local to a government affect the minimum

wage and the number of available employees

(2) Economic Factors: wage policy, training and equipment are the most immediately

concerns in human resource planning

(3) Social factors: they affect an organization's personnel plan

(4) Technological factors: new technology brings new skills requirements, so

businesses always need to be aware of the fluency and training needs when planning

human resource New products and services may also require the recruitment of

highly skilled employees or the training for existing staffs to meet the needs

(5) Legal factors: Labor law is the most important area of a legal system that influences

human resource planning Labor policy changes must be reflected in enterprise’s

policies by monitoring and management, so businesses might be need to incorporate

a training need into the human resource planning

comprehensive review” that human resource management practices were varied from country to country and the affect factors to human resource management include external

factors and internal factors, According to Ozutku and Ozturkler (2009), external factors and internal factors affect human resource management in countries have got several significantly differences as bellow

+ External factors

Kane and Palmer (1995) found that external factors affecting human resource

management were pressures from macro environment that businesses unable to control and

change in the short term including changes in economic, technology, national culture,

industry/sector characteristics, legislatiowregulation, globalization, unions activities and

business activities of competitors

+ Intemal factors

According to Milkovich and Boudreau, (1991) the internal environment of businesses

organizational characteristics that closely relate to HR activities These factors encompass

organizational size and structure, business and HR strategies, history/tradition and past

18

practices, top and line management, power and polities, academic and professional

expertise, (4) Facilities and working conditions, (5) relationship between people Ile

suggested scveral solutions to minimize the risk of labor mobility in the wood processing

industry in HCMC

Le Thi My Linh (2009) studied on “Developing human resource in small and medium

enterprise in Vietnam in the economic integration process” She defined five internal elements that have a decisive affection human resource development in SME such as the

policy and slralegy for HR development; the growth and icchnological imovation of

businesses, positive pcrecption of business owners about HR development, financial

capacity; HR department and database of HRM Moreover, the external elements also

impacted developing TTR in SME consist of macro policy aud the support of stale and

international organizations in training and developing human tesources for SME; the

development of a system that provides business development services, the quality of vocational training and labor market She suggested that in order io develop HR far SME,

the business owners need to raise self-awareness their role in developing HR They also

need to build and conduct their IIR development strategy; improving the effectiveness of TIRM aclivities and career development for employees in SMM; build cosporate culture thal

encouwlages advance learning

2.4, Research Model and Ilypotheses

2.4.1 Research Moiel

This research investigates the main elements affect on effectiveness of HRM

performance al Sunjin Visinamn IVC Researcher based on the THileraiure reviewed proposes

a model which reflects the major elements impact on the effectiveness of HRM performance as shown in figure 1.2 These elements arz independent variables represented

on the left side of the model with four main elements ie recognition, training and

development, salary, working environment and organizational culture On the right side of the model the dependent variable is represented by the cfifectiveness of HRM performance

Figure 2.2, Research model

Training and development

H3 Salary and Compensation

Research hypothesis about the factors affect on effectiveness of IRM performance at

jctnam TVC can be formulated as foHows:

Sunjin

Hi: The recognition has positively impact on effectiveness of HRM performance, That means the higher/lower effectiveness of HRM performance evaluate the recognition factor, the higher/lower level of cflectiveness of HRM parformmnee

H2: The training and development has positively impact on effectiveness of HRM performance ‘That means the higher/lower sffootivertcss of IIKM performance evaluate the training amd development factor, the highcrlawer level of effectivencss of HRM performance

T13: The salary has positively impact on effectiveness of ITRM performance That means the highelower effectiveness of HRM performance evaluate the salary factor, the higher/lower level of effectiveness of HRM performance

114: The working environment and organizational culture have positively impact on

3 RESEARCH CONTEXT AND

METHODOLOGY

‘This chapter has given an overview desenplion af Sunjin Vietrm IVC where the research was conducted, In addition, it would be provided detail research method trom

preparing for collecting data to analyzing dala

3.1 Overview of Sunjin Vietnam Joint Venture Company

+ The establishment and development: Sunjin Vietnam Joint Venture Company established in 2004 basing on the professional cooperation by three companies including

PIDI company, Viel-Han company of Vieinarn and Sunjin E&A group of South Korca Tt is

the best Vietnamese design consultancy company on architecture and urban planning, project development, technical design etc Currently Sunjin Vietnam JVC has got a munber of international and domestic skilled architects, engineers, with high qualification It is becoming the important consultant partner of many big famous projects

in Vielnan, South Korea, and other regional countries With large scute, strong oxpericness

is collected and develop through cach imptomonted project, Sunjin Vietnam Company being developed and innovation, defining company profession's prestige over all field of work such as architecture design, urban planning and development All the Sunjin Vietnam Company’s products on planning and building design not only includes the international quality about technology but also presents the architecture invention that basing on the balance botwson arl and tectmology, appearance and function, toward project’s fulurs

‘values creation, (Sunjin’s website)

(1) Vision’ With the strong belief about 21 Century branch name on an architecture

design consultant company, art passion combines with technological advantage power,

(2) Mission: With the key criterion is client’s benefit is the top important issues, Sunjin

Vielnam Company always believes the clients success will create the general prospect and success Over each high quality project, Sunjin Vietnam Company

21

always develop toward a prestigious branched name, a believe address, along with all partners and contribute to gencral social prospect and development

(3) Core values: “Dynamic — invention — effect” is the core value that Sunjin Vietnam

Company always follows and being divecled toward through each design product Besides that, all the solutions of new technology, green and energy saved, sustainable and ftiendly with environment will be implemented that contribute

advantages to architecture projects

(4) The quality: Propose the best products through best quality services Proposing the

evaluation on feasible ability to clients

6) Design: The unique design, combine between knowledge and leclmology toward the

landmark key point over all kinds of building is our design target and mobility, develop and making improvement over each project

© Invention: The non — stop long-term invention, knowledge and fulure bolicf always

being transmiticd by passion design team, experiment and improvement over cach project

The business activilies of Sunjin Vietnam JVC comprise:

(1) Architectural design: This is always one of strong advantages of Sunjin Vietnam Company Inheriting all the value of standard professional work that being implemented afler tong past tine in domestic and international market, the architectural design service of Sunn Vietnam Company becomes a qualified standard model, on behalf of the modem standard of the best Vietnam consultant company The design service that aimed al new slandard establishment of building design about all kinds of building, the architectural design of Sunjin Vietnam Company always toward develop the building that being not only beautiful appearance bul also reaching the idenlity and modem values All the issues such as Green building, Smart building etc is bemg implemented on the design that

contribute to many augment values, and raising convenient values of 21 century

standards

Main design services

| Making plan and information collection: information collection on project’s location, seale und standard and regulations; gencral evakuation of project, feasible aspects, collection

the information on investor’s design requirement; research on data about regional planning, general planning that include the design area project

+ Sketching the concept: sketching, making the total area planning basing on the input dala survey; research on tiny scale, drafl of architecLural and function model: checking the sketch and making the comparisons to relevant standards and regulations; report to investor and collection the reply comments

| Finalize the basic concept design: making the building plan on fimetion and architectural models; making the 3D models on computer, making the model (in case investor’s requirement); report to investor

| Making the negotiation of general planning

+ Cooperate with investor and authority agencies

(2) Urban planning: it is one of the best consultant services that Sunjin Vietnam Company dominates on the domestic market and develops to inlcnalional market in future With the high quality of design team include Vietnamese and international experts, the urban planning consultant service of Sunjin Vietnam Company is compound the development vision — communily value — investment ¢{Ficien!

The urban planning consultant service of Sunjin Vietnam Company always include the methodical research, full understanding on situation and reality, attached with aspects on sustainable development and cnvironment, bringing the convenicnt valucs of 2] century te not only local people but also regional area and city

@) Landscape design: Basing on invention strength, full understanding on cnvironment and especially new modern standard valuc toward community, the landscape design products of Sunjin Vietmam Company create not only landscape decoration to building or new urban living quarter, but also establish the new stylish and living standard

Design by firm's Vietnamese and inicrmational experls, landscape design will be pos:

the key point, binging the passion for design space and strong connecting between all surrounding areas, include the community connection ecology and sustainable

ve

development, new living convenicnec standard,

(4) Building structure and M&E design: Along with the service on building architectural design, building structure and M&ii desig of Sunjin Vietnam Company have reached the high quality that basing on apply and master the modem technologies, naw

23

internationat structure systems Although it is the technical service, the connection among architccture — structure — M&E are always remained, identified the problems between design and reality to propose the best — safety structure solution and reasonable is the key works of company In professionel Lerm, Sunjin Vielram Company always supporl Ihe bes! service on M&E solutions of many building types such as public building, commerce, culture, education & training, medical, office building and high condominium ete

Main services encompass

+ Collecting the information data on project (scale, structure, investor requirement etc.)

+ Collecting the input data to professional design

| Relevant design drawings (architecture, M&E)

+ Geographical survey report of project arca

+ Technologies, materials applied to structure design

+ Propose Ihe siruclure solution and finalize with archiloclure with the best designing solution,

| Making the detail design and structure cost prediction

+ Making the detail design and M&F cost prediction

(5) _Inffastructure design With the experiences and strength of projects on urban planning and development in all over Vietnam, frame structure planning is one of the key

servi thal Sunjin Visinam Company cslablish im this time wilht the dircetion

of convenience modem economic” In professional tern, basing, on the cooperate with

some fimons intemational experts and companies, Sunjin Viemam Company will provide

the best servieo on infrastruckare of new urban area, high tech industry vonz and infrastructure for urban development in future

Major services inchuding

+ Designing the electticity line and station 35kv or below,

+ Designing the tratic and city light systems

| Designing the water supply for urban area and living querter

+ Designing the rain water and disposal sewer systems

+ Designing the water circling retreat system

| Urban inffastructure system

+ Designing the excavation of transportation system

z

(©) Project management & inspection Basing on the experiences and strong team

of skilled experts, project management and inspection service of Sunjm Vietnam Company

conducted many big famous projects all over Vietnam on fields of project procurement

consullant, project mmnagement consultant and project inspection cansullant Past speed —

precise effectiveness is always an advantage of company’s consultant service:

Key services consist of

- Project procurement consultant:

+ Consulting to investor on cstablishing the project procurcment plan (type tenders chosen)

| Consulting Lo investor on

+ Establishing the project procurement invitation profile, project procurement requirement of nationwide procurement type, international, EPC ete

+ Evaluating the tender’s projecl procurement invitation profile

+ Consulting on tender selection; consulting on project contract negotiation

- Service on input data collecting on project procurement

The law and regulation data on project procurement + Supporting on public the project procurement information,

Measurement and survey: With the advantages of technology and instrument and high level — skilled experts, the serviee on mncasurcment and survey of Sunjin Vietnam Company

is becoming advantage that contributes to the complex solution to project development from the beginning stage In future, basing on the expert” skill improvement — instrument modernization — cooperating with other qualify and famous companies in the world, the service on measurement and survey of Sunjin Vietnam Company will be targeted to reach the high standard, satisfy all the client’s requirement in the modern time

= Measuring on reality attitude, topography, object inside the project area

+ Fstablishing the attitude reaps on different scales

28

* Surveying on infrastructure systems, connection point of water supply system,

waste disposal system, power supply system ete

Geographic survey:

«Establishing the requirement, platform, leclutica] solulion on geographic sinvey

+ Geographic survey drilling, take the specimen support to define the physical and mechanical data in the laboratory

» _ Experimenting (est on the site following the approval Lechnival solution

« ‘Testing the specimen support to define the physical and mechanical data in the Inboratory (standard qualified laboratory following the MOC’s regulation)

+ Evaluating the input data, establishing the geographic survey report

The awarded projects o[ Sunjin Vieinam JVC when participating in the architectural design contests

First prize

+ Ministry of information and Commmnications; 18 Nguyen Du

« Headquarter of Ministry of Cnitme, Sports and Tourism: 53 Ngo Quyen Street

+ Office of the Ministry of Culture, Sports and Tourism;

+ Thai Binh Police Headquarters,

+ Ho Chi Minh City Police Headquarters,

« lla Tay Police Lleadquarters,

« Headquarters of the General Police Department

+ Police office of Quang Ninh province

+ Tung Yen Police Teadquarters

« Tead office of Hoa Tinh Police

« Headquarter of the Ho Chi Minh City Police Departament

+ Hai Ba Trung Police Station

+ Ba Dinh District Police Department

+ [louse N12 National Defense Academy - Ministry of Defense

+ Ba Dinh Cultural House

The second prive

+ Headquarters of the Ministry of Public Security

« Detailed plan of 1/500 scale of Hanoi Children Hospital

The third prize

+ Five-star hotel commercial center of Hien Due - Tay Ho - Hanoi:

+ Project of Thang Long Ford Building

3.2 Organizational structure and HRM division

‘ Organizational structure: Sunjin Vietnam JVC is organized and operated in

accordance with the Enterprises Law 2005 The company's operation are complied with the

Enterprises Law, other related laws and the company charter which governs all company’s

activities Sunjin Vietnam JVC has got 9 functional units that were described in the figure

2.1 below

Figure 3.1 Organizational structure of Sunjin Vietnam JVC

Shareholders:

It is the highest authority that decides all important issucs of the company in accordance

with the Enterprises Law on and the Company Chatter TL approves the long-term

invesinem policy in company’s growth, decides Ihe capital struclurc, and clects the

Imaragement and control the company’s production and business

Executive Board:

‘To be appointed by the Board of Management including a General Director, four Deputy

General Directors, a Chief Accountant ‘I'he General Director appointed by Management

Board is a legal representative of the company and responsible to the by Management Board for all issues related to the company’s daily operations Deputy General Directors

and Chief Accountant appointed by the by Management Board according to General Director’s proposal

% HARM division:

HRM division belong to Gencral Planing Department las got advising fimlion to the

Management Board of directors on persorme] maragement, human resource management

of the organization The HRM slaffs usually conduel ant integrated job [hat requires the TIRM operations including recruitment, training, appraisal, tegimnens, social insurance, working contracls cle They oflen perform administrative work on human resources

primarily with administrative functions Actually, the director of general planning

department wilt be tesponsible for all divisions of the department This structure is also:

suitable for small and medium enterprises with approximately 100 employees as Sunjin

Vietnam JVC It has got several following duties

- ‘To study and propose an organizational structure, fimotions and tasks of units in the company appropriate to the company’s development in each period.

- Planning human resource development in line with development strategy and business plan of Sunjin Vietnam IVC

- Advise to issue documents (guidelines) that help the management board to manage the recruitment, transfer, distiissal, raining, emulation, reward, appraisal and compensation

- Establish and implement recruitment plans to meet the human resource requirements of the departments and center

- Advising the management board on an arranging, using employees and carrying out procedurcs for appointment and re-appointment company’s managcrs;

- Planning wage price, implement the procedures for allowances, retirees and other policies for the employees;

- Synthesize and plan labor protection and implement those plans,

- To collecting, preserving and updating the dossiers of company employees;

+ Conduct other dutic:

plan Data processing was conducted by software SPSS 21.0 consist of Cronbach’s Alpha

confidence cocfficient analysis, exploratory factor analysis and multiple lincar regression analysis,

3.3.1, Research approach

Resoarch approach is defined as framework in which social phenomenon is characterized and analysed accordingly (Remeny et al, 1998) There are two major research approaches in academic studies, namely deduction and induction Like the previous scction, this paragraph is developed to choose the right rescarch approach for this study Deductive is acknowledged as common approach is academic studies (Bryman and Bell, 2007) This approach is followed by the pro

s of starting from general things lo specific context (Saunders et al., 2009) According to Anderson (2004), deductive research approach aims to investigate social phenomenon’s aspects throughout hypothesis development and hypothesis validation in order to obtain empirical evidences of social

phenomenon