Factors influencing employee career satisfaction at PETROVIETNAM fertilizer and chemicals company (PVFCCO)

RESEARCH PROJECTBMBR5103 FACTORS INFLUENCING EMPLOYEE CAREER SATISFACTION AT PETROVIETNAM FERTILIZER AND CHEMICALS COMPANY PVFCCO Ho Chi Minh City, December 2015... PVFCCo Petrovietnam f

RESEARCH PROJECT

(BMBR5103)

FACTORS INFLUENCING EMPLOYEE CAREER SATISFACTION AT PETROVIETNAM FERTILIZER

AND CHEMICALS COMPANY (PVFCCO)

Ho Chi Minh City, December 2015

ADVISOR’S ASSESSMENT

Advisor’s signature

To complete this paper, firstly, I have to send my special thanks to NguyenThe Khai, DBA who has shown our class every step of how to do a research.Moreover, he had even personally gone through and give valuable advised on ourpaper to every individual in class

Without such detail instructions and advise, we are unable to complete thispaper of Business Research Methods

Secondly, I would also like to thanks employees of Petrovietnam Fertilizer andChemicals Company, whom had help to complete the questionnaires which isessential for me to conduct further on the research

Lastly, I would like to thanks my family for supporting me during my MBAprogram and also my classmate whom have shared their knowledge and time tolearn together in order to complete all assignments especially this paper

TABLE OF CONTENTS

ACKNOWLEDGEMENT 2

LIST OF TABLES 5

LIST OF PICTURE, GRAPHICS, CHART, FIGURES 6

ABBREVIATIONS 7

ABSTRACT 8

CHAPTER I - INTRODUCTION 10

1.1 Company Introduction 10

1.2 Research Introduction 22

1.2.1 Problem statement 22

1.2.2 Research objective 23

1.2.3 Object and scope of the research 23

1.2.4 Research Methodology 23

1.2.5 Research questions 23

CHAPTER II – LITERATURE REVIEW 25

2.1 Career satisfaction 25

2.2 Job satisfaction relative to expectations 27

2.3 Role innovation 31

2.4 Person organization fit 31

2.5 Perceived importance of workplace values 33

CHAPTER III: RESEACH MODEL AND HYPOTHESES 34

3.1 Research Model 34

3.1.1 Dependent Variables 34

3.1.2 Independent Variables 34

3.1.3 Constructs 34

3.2 Research Hypotheses 35

3.5 Procedure for Data Collection and Analyze 46

CHAPTER IV: ANALYSIS AND RESULTS 48

4.1 Demographic Characteristics of the respondents 48

4.2 Reliability Analysis 50

4.3 Descriptive Analysis 50

4.4 Correlation of all variables statistics 51

4.5 Hypotheses Testing 53

CHAPTER V: CONCLUSION 56

5.1 Summary and Discussion 56

5.2 Management Implications 58

5.3 Limitations and Further Research Recommendation 59

REFERENCES 61

APPENDIX 1 64

APPENDIX 2 72

LIST OF TABLE

Table 1.1 Major shareholders of PVFCCo 21

Table 4.1 Summary of Cronbach’s Alpha of the variables 50

Table 4.2 Descriptive Statistics 51

Table 4.3 Summary of Correlations of all variables 52

Table 4.4 Model Summary of all hypotheses 53

Table 4.5 Coefficients of all hypotheses 54

Table 4.6 Hypothesis Statistic 55

LIST OF PICTURE, GRAPHICS, CHART, FIGURES

Figure 1.1: Large storage network from North to South of PVFCCo 11Figure 1.2 Organization-Chart of petrovietnam fertilizer and chemicals company 16Figure 1.3 Shareholder Structure of PVFCCo 21Figure 3.1 Proposed Research Model of Career satisfaction at PVFCCo 34Figure 4.1 A summary of frequency analysis for qualitative variables 49

PVFCCo Petrovietnam fertilizer and chemicals company

(I/O) psychologists Industrial and organizational psychologists

SPSS Statistical Packages for the Social Science

Along with the advances of science and technology and especially in thecontext of the economy switched toward knowledge-based development, the humanresources become competitive factors leading organizations and enterprises Manyorganizations and businesses are having problems when manpower gradually

"cachexia" work motivation, job-hopping leads to risk or decrease performance.How to remedy this situation is a major concern of the human resourcesmanagement and organizational leadership

To attract and maintain high-quality human resources, in addition to theimplementation of good recruitment, planning, appointment and training of staff,the work performance assessment, payroll system, bonus, the organizations /companies should develop policies and incentives encourage suitable therebyencouraging the highest contribution of staff to the development of the organization.One of the important criteria to assess the level of human resource management that

is "The satisfaction of employees for career" Employee satisfaction is a way tobuild their loyalty to the organization / company, make employees love the job,sticking with colleagues, found optimism in the environment, there by mount themwith the organization's goals and striving for that goal Survey employeesatisfaction is one of the tools helping employees to express feelings and aspirationsfor career development and help managers understand human psychology andexpectations of employees from that maximize energy and enthusiasm in their workand constantly improve the policy development of human resources

The basic objective of the survey activities of employee satisfaction is:Knowing the needs of staff to apply consistent personnel policy; Knowing the views

of staff about the activities of the organization; Rate the deciding factor to employeeengagement; Improve the existing problems in the operation of institutions, humanresources policies, labor relations,

Currently, many enterprises in Vietnam have conducted periodic surveys thesatisfaction of employees, the information obtained from this activity have beenrecognized as useful resources to improve the environment work, improve workefficiency.

PVFCCo no exception, companies are also trying to improve the work createdfor staff satisfaction after equitisation since 2008

It is expected that the findings of the research will give an overall view of howcreate employee satisfaction in their careers Then, PVFCCo management teamcould find the project’s results as reference on adjusting and developing couple ofsolutions that fill in the gap to identify ways and directions for how to makeemployees more satisfied at career in today strong competitive context

Questionnaires were delivered to 180 employees in different background ofeducational degrees, years of service, gender, years of age as well as work positions

151 samples were returned and put into further researched and analyzedpractices The reliability analysis, descriptive analysis, and hypothesis testing werestatically measured in the study with the support of SPSS software

The results showed that among four independent constructs involved inexamining with one dependent construct, there were 4 constructs supported Theseindependent variables include: Job satisfaction relative to expectations, Roleinnovation, Person organization fit, Perceived importance of workplace values

CHAPTER 1: INTRODUCTION

I would like to introduce a research about “Factors influencing employee career satisfaction at petrovietnam fertilizer and chemicals company (PVFCCo)” Seven years after equitization in 2008, the company with 100% state

capital into jointstock company operating under the model of parent company subsidiary, Corporation Fertilizers and Chemicals Petroleum (PVFCCo) hasmaintained steady growth and is considered a successful example of businessefficiency and modern management

-1.1 Introduction

1.1.1 Overview of the establishment and development of PVFCCo

Petrovietnam Fertilizer and Chemicals Company (PVFCCo) was establishedunder the Decision No 02/2003/QD-VPCP dated 03/28/2003 of the Secretary of theOffice of Government and officially came into operation from 19/01/2004 Thefunctions and duties of PVFCCo are to take over, manage and operate effectivelythe Phu My Fertilizer Plant; produce and trade urea fertilizer, liquid ammoniac,industrial gas and other chemical products

Right after receiving the establishment decision, PVFCCo formed and utilizedits full forces to be able to take over, manage, and operate successfully andefficiently the Phu My Fertilizer Plant On September 21, 2004, PVFCCo took overfull responsibilities of Phu My Fertilizer Plant from Technip-Samsung consortiumand the Project Management Unit of Phu My Fertilizer Plant Since then, the plantstarted operation and immediately delivered its high quality products to the marketwith brandname Dam Phu My During the last three years, PVFCCo hassuccessfully managed its production and business activities, highly achieved itstargets, and contributed subtanically to the national petro industry as well as otherindustries

Today, PVFCCo production satisfies roughly 50% of the total urea domesticdemand (total domestic demand is from 2 million tones per year).

Following the national economy growth trend, the Department of Industrydecided to equitize PVFCCo On August 31, 2007, Petrovienam Fertilizer andChemical Company was officially equitized and became a joint stock company withcharter capital of VND 3,800,000,000,000 (roughly USD 237,500,000) OnNovember 05th 2007, 380 million shares of PVFCCo were officially listed andtraded in the Hochiminh City Securities Exchange under symbol of DPM At theshareholders’ annual meeting in 2008, PVFCCo transformed its business model intocorporation Finally, PVFCCo was renamed as Petrovietnam Fertilizer andChemicals Corporation (PVFCCo) under the business license issued by theHochiminh city Department of Planning and Investment dated 05/15/2008 This is agreat opportunity for the company to conduct its development strategy and attainfurther achievements in the future Besides, PVFCCo has a large storage networkfrom North to South, to supply fertilizer in time

Key milestones:

- March 12th, 2001: Started construction of Phu My fertilizer plant

- March 28th, 2003: Established Petrovietnam fertilizer and chemicals company(PVFCCo)

- January 1st 2004: PVFCCo came into operation

- September 21st 2004: PVFCCo took over Phu My fertilizer plant, officiallylaunched Phu My urea product

-December 15th 2004: Inaugurated Phu My fertilizer plant

- August 31st 2007: Changed itself as a joint stock company

- November 05th 2007: DPM shares were listed on Ho Chi Minh city stockexchange

- August 30th 2008: Changed itself as Fertilizer and Chemicals Corporation

- September14th 2010: Inaugurated CO2 emission withdrawal cluster to increasecapacity of Phu My fertilizer plant to 800,000 tons per year

- July 16th 2011: Inaugurated PVFCCo tower – head office

- October 16th 2012: Phu My fertilizer plant achieved the total capacity of 6 milliontons

- March 26th 2013: PVFCCo was awarded the First-class Labour Medal

- March 28th 2013: Anniversary of 10 years of PVFCCo

- December 20th 2013: 7th million tons of Phu My urea

- March 28th 2014: Anniversary of 11 years of PVFCCo

- February 2015: 8th million tons of Phu My urea

- March 28th 2015: Anniversary of 12 years of PVFCCo

1.1.2 Mission and Vision

MISSION:

To produce and supply an abundant, reliable source of fertilizers at reasonableprice and best conditions to clients, in the meantime to ensure business efficiencyand make active contribution to sustainable development of domestic agricultureand economy

Corporate SocialResponsibility award

- 2013: First-class Labor Medal for PVFCCo and Phu My fertilizer plant

- 2009: Second-class Labor Medal for PVFCCo and Phu My fertilizer plant 2008:Third-class Labor Medal for Phu My fertilizer plant

- Top 10 Vietnam Golden star award: 2009, 2011, 2013.

- Top 10 Vietnam Golden star – Corporate Social Responsibility award: 2011, 2013

- Trusted listed company in Vietnam stock market: from 2009

Vietnam and international Golden prize for Annual report: 2009 – 2010 – 2011

-2012 – 2013

- Vietnamese high quality products: Continuously achieved Vietnamese high qualityproducts title voted by consumers from 2004-2015

- National Brands (Vietnam Value)

- PVFCCo is one of the Top 50 best Vietnamese listed enterprises, ranking at 3/50,according to a survey made by Forbes Vietnam magazine

Supervisory Board:

The Supervisory Board has 03 members, appointed by the shareholdermeeting with a duration of 05 years The Supervisory Board has responsibility tosupervise the legality and the rationality in all operation of the BOD, theManagement Board and financial reports The Supervisory Board operatesindependently from the BOD and the Management Board

Vice President support the President & CEO in repective areas and is reponsible totake rights and duties assigned by the President & CEO.

Board of Directors:

Board of Directors (BOD), appointed by the shareholder meeting, is thehighest ranking management body, having 05 members with duration of 05 years.BOD represents the company to make all decisions for the interest of the company,not excepts what belong to the responsibilities of the shareholder meeting BODhave rights and duties to to supervise the general director and other managers intheir daily works

1.1.4.2 Organization-Chart

Figure 1.2 Organization-Chart of petrovietnam fertilizer and chemicals company

1.1.4.3 Board of Directors

Board of Directors (BOD), appointed by the shareholder meeting, is the

highest ranking management body, having 05 members with duration of 05 years.BOD represents the company to make all decisions for the interest of the company,not excepts what belong to the responsibilities of the shareholder meeting BODhave rights and duties to to supervise the general director and other managers intheir daily works

PVFCCo’s Board of Directors:

The Supervisory Board has 03 members, appointed by the shareholder

meeting with a duration of 05 years The Supervisory Board has responsibility tosupervise the legality and the rationality in all operation of the BOD, theManagement Board and financial reports The Supervisory Board operatesindependently from the BOD and the Management Board

1 Ms TRAN THI PHUONG THAO – Head of Board of Supervisors

2 Mr Nguyen Van Hoa – Member

3 Mr Le Vinh Van – Member

1.1.4.5 Management Board

The Management Board includes: President - CEO, 6 Vice Presidents and

Chief Accountant President & CEO manages and takes decision on the company’sproduction and business operation and is responsible to take rights and dutiesassigned by the BOD

Vice Presidents support the President & CEO in repective areas and are reponsible

to take rights and duties assigned by the President & CEO

1.Mr.Cao Hoai Duong - President & CEO

2 Mr.Le Van Quoc Viet - Vice President of Internal Affairs

3 Mr.Tu Cuong - Vice President of Production & Managing

Director of Phu My Fertilizer Plant

4 Mr.Duong Tri Hoi - Vice President of Sales and Distribution

Network

5 Mr.Hoàng Việt Dũng - Vice President of Technology,

Techniques, Investment and Construction

6 Mr.Nguyen Van Tong - Vice President of Finance, Accounting

and Auditing

7 Mrs.Le Thi Thu Huong - Vice President of International

Cooperation, Legal issues, R&D and Financial Investment

8 Mr.Huynh Kim Nhan - Chief Accounting Officer

Government Foreign investors Other

Figure 1.3 Shareholder Structure of PVFCCo

1.1.6 Major shareholders

Table 1.1 Major shareholders of PVFCCo

(%)

Deutsche Bank Aktiengesellschaf và Deutsche Asset

Management (Asia) Limited

4.53%

Petrovietnam is the parent company of DPM, which holds the dominantnumber of shares, representing 61.38% of charter capital of the corporation This is

an advantage of DPM receiving great support from the Group, namely theconsortium ensure raw material for gas production plant Phu My fertilizer Howeverthe domination too big from the Group may be detrimental to the company in theimportant decisions require quick and timely but the corporation itself does notdecide to be, must await approval approval from the Group

1.2 Research introduction

1.2.1 Problem statement

Man is a social entity, subject to the domination of many different activities

In today's modern society pressures from work, life, increasing, workers are slowlychanging, with new needs, new ambitions and perspectives on the importance ofcareer Therefore, the study found a solution to increase the satisfaction of thepeople for the profession is essential That meant that staff development is not justabout career development segment which also includes identifying career goals, thenon-cash prizes and the chance to prove themselves

According to a survey conducted recently by Blessing White - a globalcompany in the field of human resource development, 25% of employees expressedcontentment over if given the chance to do what they do best and 5% of directlyacknowledged that career development opportunities and training would increasetheir satisfaction at work

Abreast of the changes are very important and necessary for managers toinvest time into developing employees

All these factors have a huge impact on workers, decided the place to stay or

go, their work ethic, though in any business no matter what, if not satisfactorilyresolved these factors,, the condition of the worker quit is inevitable, threaten thedevelopment of the business The problem is how to staff satisfaction in your

career? The rolling lines of change and development in the new era requires everybusiness must continually enhancing all aspects in order to adapt and PVFCCo inparticular are in that flow To constantly reach out further, the company has alwaystried to strengthen the management and improvement of the management of humanresources To do this, first create value workplace for employees, get higher valuethan expected of employees, and themselves of the leaders and the businessrelationship in comfort roof, matching employees And this is the problem is veryinterested now in PVFCCo.

1.2.2 Research objective

This study mainly seeks to achieve the following objectives:

- Define criteria measuring employee satisfaction with their careers

- Develop and adjust the scale of employee satisfaction with their careers

- Identifying the factors affecting employee satisfaction with their careers

- Survey and evaluation of staff satisfaction with career PVFCCo

- Propose some solutions to improve employee satisfaction for careers in PVFCCo

1.2.3 Object and scope of the research

Scope of this research is to study the factors that influence employeesatisfaction for the work and will conduct surveys of employees currently working

at PVFCCo

1.2.4 Research Methodology

Research methods used in this topic is qualitative research methods incombination with quantitative research Method analyze data through SPSS 16.0software

1.2.5 Research questions

1 How are the impact of Job satisfaction relative to expectations on PVFCCo’semployee career satisfaction?

2 How are the impact of Role innovation on PVFCCo’s employee careersatisfaction?

3 How are the impact of Person organization fit on PVFCCo’s employee careersatisfaction?

4 How are the impact of Perceived importance of workplace values onPVFCCo’s employee career satisfaction?

CHARPTER 2: LITERATURE REVIEW

2.1.Career satisfaction

We take as our working definition of career ‘the unfolding sequence of aperson's work experience over time’ (Arthur & Rousseau, 1996, p.6) Thisdefinition avoids making assumptions about the setting or form of a career It alsoallows for exploration of individuals and social contexts, and of their interplay Thisdefinition likewise acknowledges temporal, and potentially spatial dimensions ofexperience Given the ‘elasticity’ (Collin & Young, 2000) of the career concept, wefeel that sharpening the focus in this way enhances its analytical value Savickas(2002) highlights subjective sense-making as central to the career concept: ‘theessential point is that career denotes a reflection on the course of one’s vocationalbehavior; it is not vocational behavior.’ In this chapter, therefore, we will emphasizethe meaning that the person attaches to his or her career path, rather than restrictingourselves to objectively observable patterns of movement through organizational oroccupational 3 hierarchies Second, echoing our point above, Savickas argues thatthe notion of development, of movement through time, is fundamental to the careerconcept In his view the concern of careers is not ‘how to fit people intooccupations’, but rather ‘how individuals produce their own development’ (p 384)

2.1.1 Career - the Concept

Career as a concept has been studied with psychological, social,anthropological, economic and political perspectives (Arthur, Hall and Lawrence,1989) Psychologically, career is seen as a concept reflecting more internal andsubjective matter (Hall, 2002) Socially, it links with the social upward mobility ofpeople with career progression The notion that careers are upward, linearprogression in organizations or in the profession includes horizontal movements andrealization of subjective individual needs The reasons for such inclusion have been

Sociological, political and economic notions of vertical mobility incorporating thetheme of directionality and the notion of occupation as career, with regular statuspassages fails to incorporate horizontal movement that enrich the competencies andemployability of employees Integrating them all, the behavioural sciences literaturelooks at career as a life-long sequence of jobs and hence no value judgment is madeabout the type of occupation or the direction of movement This paper would followthe realm of the behavioural science literature and look at factors surrounding anindividual’s work experience during his/her lifetime Consistent with this concept ofcareer, we adopted Hall’s (2002: 12) definition of career as “the individuallyperceived sequence of attitudes and behaviours associated with work-relatedexperiences and activities over the span of the person’s life” Here, the notion ofwork related experiences over a person’s life indicates a long-term time framerather than immediate performance and satisfaction.

2.1.2 Career Satisfaction

This measure was developed by Greenhaus, Parasuraman, and Wormley(1990) It measures satisfaction with career success, an internally generated anddefined career outcome Besides general satisfaction with career progress, themeasure assesses the extent to which an employee has made satisfactory progresstoward goals for income level, advancement, and development of skills

Career satisfaction correlated positively with having a job in generalmanagement, salary level, number of promotions received, perceptions of upwardmobility, sponsorship within an organization, acceptance, job discretion,supervisory support, career strategies, perceived personal-organization valuecongruence, presence of an internal labor market, and job performance It correlatednegatively with having reached a career plateau (Aryee et al., 1994; Greenhaus etal., 1990; Seibert et al., 1999) Confirmatory factor analysis showed that generalperceptions of career satisfaction are empirically distinct from financial success andhierarchical success in an organization (Aryee et al., 1994)

2.2 Job satisfaction relative to expectations

2.2.1 Job Satisfaction Overview

Job satisfaction is the most widely investigated job attitude, as well as one ofthe most extensively researched subjects in Industrial/Organizational Psychology(Judge & Church, 2000) Many work motivation theories have represented theimplied role of job satisfaction In addition, many work satisfaction theories havetried to explain job satisfaction and its influence, such as: Maslow’s (1943)Hierarchy of Needs, Hertzberg’s (1968) Two-Factor (Motivator-Hygiene) Theory,Adam’s (1965) Equity Theory, Porter and Lawler’s (1968) modified version ofVroom’s (1964) VIE Model, Locke’s (1969) Discrepancy Theory, Hackman andOldham’s (1976) Job Characteristics Model, Locke’s (1976) Range of AffectTheory, Bandura’s (1977) Social Learning Theory, and Landy’s (1978) OpponentProcess Theory

As a result of this expansive research, job satisfaction has been linked toproductivity, motivation, absenteeism/tardiness, accidents, mental/physical health,and general life satisfaction (Landy, 1978) A common idea within the research hasbeen that, to some extent, the emotional state of an individual is affected byinteractions with their work environment People identify themselves by theirprofession, such as a doctor, lawyer, or teacher A person’s individual well-being atwork, therefore, is a very significant aspect of research (Judge & Klinger, 2007).The most widely accepted explanation of job satisfaction was presented byLocke (1976), who defined job satisfaction as “a pleasurable or positive emotionalstate resulting from the appraisal of one’s job or job experiences” (Locke, 1975,p.1304) Additionally, job satisfaction has emotional, cognitive, and behavioralcomponents (Bernstein & Nash, 2008) The emotional component refers to feelingsregarding the job, such as boredom, anxiety, or excitement The cognitive

behavioral component includes people's actions in relation to their work, which mayinclude being tardy, staying late, or pretending to be ill in order to avoid work(Bernstein & Nash, 2008).

There are two types of job satisfaction based on the level of employees'feelings about their jobs The first, and most studied, is global job satisfaction,which refers to employees' overall feelings about their jobs (e.g., "Overall, I love

my job.") (Mueller & Kim, 2008) The second is job facet satisfaction, which refers

to feelings about specific job aspects, such as salary, benefits, and the quality ofrelationships with one's co-workers (e.g., "Overall, I love my job, but my schedule

is difficult to manage.") (Mueller & Kim, 2008) According to Kerber and Campbell(1987), measurements of job facet satisfaction may be helpful in identifying whichspecific aspects of a job require improvements The results may aid organizations inimproving overall job satisfaction or in explaining organizational issues such ashigh turnover (Kerber & Campbell, 1987)

There are several misleading notions that exist about job satisfaction Onesuch fallacy is that a happy employee is a productive employee (Syptak, Marsland,

& Ulmer, 1999) Research has offered little support that a happy employee isproductive; furthermore, some research has suggested that causality may flow in theopposite direction, from productivity to satisfaction (Bassett, 1994) There might be

a correlation, but it is a weak one Knowing that research does not support the ideathat happiness and employee satisfaction creates higher production, why do I/Opsychologists and organizations still attempt to keep employees happy? Many havepointed out that I/O psychologists research more than just increasing the bottom line

of an organization Happy employees do not negatively affect productivity and canhave a positive effect on society; therefore, it still benefits all parties to have happyand satisfied employees Another fallacy is that pay is the most important factor injob satisfaction In reality, employees are more satisfied when they enjoy theenvironment in which they work (Berry, 1997) An individual can have a highpaying job and not be satisfied because it is boring and lacks sufficient stimulation

In fact, a low-paying job can be seen as satisfying if it is adequately challenging orstimulating There are numerous factors that must be taken into consideration whendetermining how satisfied an employee is with his or her job, and it is not alwayseasy to determine which factors are most important to each employee Jobsatisfaction is very subjective for each employee and each situation being assessed.

2.2.2 Job Satisfaction Relative to Expectations

Job Satisfaction Relative to Expectations - Bacharach, Bamberger, and Conley(1991) developed this measure It assesses the degree “of agreement between theperceived quality of broad aspects of a job and employee expectations” (Fields,

2002, p.6) It is most effective to determine how job stresses, role conflicts, or roleambiguities can hinder an employee from meeting job expectations (Fields, 2002,p.6) Job satisfaction relative to expectations correlated negatively with roleconflict, role overload, and work-home conflict (Bacharach et al., 1991)

Employees believe that higher levels of job performance will be rewarded andemployee expectancies about the relationship of better performance with increasedpay, promotion, and job security It also assesses employee expectancies that betterperformance will lead to increased influence, supervisory approval, and recognition(Eisenberger, Fasolo, and Davis-LaMastro.,1990)

There are two factors for work-related expectancies One dimension capturesexpectancies about pay and promotion rewards The other dimension describesexpectancies about approval and recognition The two factors were consistentacross samples of hourly workers and managers Expectancies for pay/promotionrewards and approval/recognizational support, job satisfaction, participation indecisions, and job involvement (Eisenberger et al.,1990; Smilth&Brannick, 1990)

In relation to opportunities for upgrading, Herzberg (1966) proposed thatperson needs for progress, accountability, appealing and challenging work, safety,

favor a pay for performance system more than individuals low in these needs(Bajpai & Srivastava, 2002).

Fair upgrading policies and practice provide chances for personaldevelopment, more tasks and increased social condition When a person get fairupgrading which is usually his true evaluation, he gets a type of acknowledgmentand hence job satisfaction It amplifies worker perception to the excellence of theirjob and improves both their job satisfaction and organizational commitment(Luthans, 2005:212)

The workers who value opportunity for evolution display a high degree of jobparticipation in the wishes of solicit such compensation Naturally, if workers donot perceive development chances materialized, this outcome will be lost Eventhough condemn for various causes, the hierarchical and insular kind of countrycivil service systems do give for transparent and expected inner progress (Manzoor

et al., 2011)

Adequate salary structure is linked with job satisfaction (Bajpai & Srivastava,2002; Marginson, 2003) The characteristic of education depends on the incentivefor teaching performance determined by the academia, which, sequentially depends

on the marginal dollars of university income produce from education excellence(Marginson, 2003)

Worker reward refers to all forms of pay or rewards available to workforceand arising from the service (Dessler, 2005:410; Fattah, 2010) Money or othermonetary incentive in the classic performance exemplar is based broadly on theabstract propositions of reinforcement theory Reinforcement theory concentrates

on the affiliation between the target behavior (performance) and its consequences(pay) and is premised on the main beliefs and methods of organizational behavioradjustment Organizational behavior modification is a structure within whichworker behaviors are recognized, measured, and analyze in terms of their functionalconsequences (existing reinforcements) and where an interference is developed

using values of reinforcement (Perry et al., 2006) Compensation systems haveimpacts on the job satisfaction in both the public and private sector workers(Getahun et al., 2007).

2.3 Role innovation

This measure, developed by West (1987), asks employees to indicate the ways

in which they are doing their job differently from the person(s) who did the jobpreviously or from others doing this job in the organization Although employeestaking on an organizational role will tend to stay close to the approach observed inprevious role holders, role innovation may occur when the old behaviors do notseem to have as much benefit as alternative new behaviors

Role innovation correlated negatively with collective, formal, sequential,fixed, and serial approaches to socialization at 4 months and 10 months after roleassumption Role innovation correlated positively with intentions to quit and jobperformance at 4 months and positively with role conflict and job performance at 10months (Ashforth & Saks, 1996) Role innovation correlated positively withpersonal change and job discretion within and across time periods, and negativelywith self-esteem across periods (Munton &West, 1995)

2.4 Person organization fit

This measure, developed by Bretz and Judge (1994), consists of twoquestionnaires containing 15 items each One questionnaire asks employees toindicate how accurately each statement describes their current organization Theother questionnaire asks employees for their individual preferences for anorganization to work in A fit score for each individual is calculated as the sum ofthe differences between the responses to the two questionnaires Thus, low scoresindicate better person-organization fit The questions used to assess person-organization fit were developed to reflect fit between an employee's knowledge,

value orientations and the perceived values orientation of the organization; andperceived match between an employee's personality and the organization'spersonality or image (Bretz & Judge, 1994).

Person-organization fit correlated positively with job satisfaction, salary level,job level, hours worked per week, access to a mentor, and career interruption.Person-organizationfit correlated negatively with being nonwhite and having aPh.D (Bretz & Judge, 1994)

Consideration of person-organization fit is based on the perspective thataspects of both an individual employee and a job situation combine to influence theindividual’s response to work (O'Reilly, Chatman, & Caldwell, 1991) That is,attitudes, behaviors, and other individual-level outcomes result not from the person

or environment separately, but rather from the relationship between the two Theconcept of fit is particularly prominent in studies of organizational stress wheremeasures must recognize individual differences in the way situations are cognitivelyappraised (Edwards, 1996)

Person-organization fit refers to the degree of congruence or compatibilitybetween the attributes of an organization member and those of the organization Forindividuals, these attributes may include personality traits, beliefs, values, andinterests For the organization, these characteristics traditionally include the culture,climate, values, goals, and norms (Chan, 1996) Congruence may occur when aperson supplements or matches with other individuals in an environment, when aperson’s characteristics add something to the environment that was missing, when

an organization satisfies individual needs, and/or when an individual has theabilities required to meet organizational demands (Kristof,1996)

Value congruence is an important form of fit because organizational values arefundamental components of organizational culture that affect employees’ attitudesand behaviors (Chatman, 1989) Person-organization fit can be operationalized as

an individual’s goal congruence with organizational leaders and peers (Vancouver

& Schmitt, 1991) An alternative approach defines fit as the match betweenindividual preferences or needs and organizational systems and structures Ingeneral, a person will be more satisfied with work if the environment fulfills his orher needs Alternately, person-organization fit can be viewed as the match betweenthe personality characteristics of an individual employee and organizational climate.For example, an organization’s collectivist climate may be reflected by a team-based compensation system that may or may not meet an individual’s need forachievement (Kristof, 1996).

There is some debate as to whether person- organization fit should beoperationalized as the compatibility of employees with specific jobs Edwards(1991) defined person-job fit as the agreement between the abilities of a person andthe demands of a job or the desires of a person and the attributes of a job Although

it could be argued that jobs tend to offer a narrow view that may not berepresentative of an organization, there is substantial evidence that employees mayform their views about an organization based on their experiences in their job(Hackman & Oldham, 1980) Person-organization fit does not generally includeperson-vocation fit, which often reflects the similarity between an individual’spersonality and that of a vocational environment, or person-group fit, whichdescribes the compatibility between individuals and their work groups (Kristof,1996)

2.5 Perceived importance of workplace values

This measure was developed by Van Dyne, Graham, and Dienesch (1994) Ituses 12 items to describe the extent to which employees believe their organizationplaces importance on such areas as quality, innovation, cooperation, and wideparticipation in decision making

The perceived importance of workplace values correlated positively with

CHARPTER 3: RESEARCH MODEL AND HYPOTHESES

- Job satisfaction relative to expectations (JS)

- Role innovation (RI)

- Person organization fit (POF)

- Perceived importance of workplace values (WV)

H1+

H2+

H3+

H4+

+ Role innovation (RI)

+ Person organization fit (POF)

+ Perceived importance of workplace values (WV)

3.2 Research hypotheses

3.2.1 Job satisfaction relative to expectations

In 1964, Vroom developed the expectancy theory as a means for determiningpersonal motivation (Lunenburg, 2011) The theory, based on four assumptions, is afoundational construct for conceptual frameworks on motivation The firstassumption was when workers accept employment with an organization withexpectations of individual needs, motivation, and using previous experiences Thesecond assumption was that individuals made conscious choices of behavior Thethird assumption aligns with Herzberg’s (1970) theory of motivation There weredifferent expectations among employees of the company, based on motivatingfactors such as advancement, good pay, and job security The fourth assumptionwas that individuals made decisions for maximizing performance (Lunenburg,2011) Samuel and Chipunza (2009) supported Lunenburg’s (2011) study andextended the research to include turnover intentions based on intrinsic and extrinsicmotivational factors Samuel and Chipunza’s (2009) quantitative research designincluded 145 respondents from a population of 1800 employees from two publicand two private sector organizations in South Africa A questionnaire form requiredresponses based on a fivepoint Likert Scale Samuel and Chipunza (2009) designedthe investigation to determine the extent to which intrinsic and extrinsicmotivational variables influenced retention and reduction of turnover of employees

in public and private companies Results revealed factors such as achievement,recognition, the work, responsibility, advancement, and growth, deemed intrinsicvalues, which Herzberg et al (1959) labeled as motivators Conversely, dissatisfiers

The findings from Samuel and Chipunza’s (2009) study identified intrinsicmotivational variables that influenced retention among employees that includedtraining and development, a sense of belonging to the organization, job security,interesting work, and freedom to use creative thinking Based on Vroom’sexpectancy theory (1964), leaders should focus on intrinsic values when motivatingemployees The results indicate that leaders who focus on an employee’s intrinsicvalues increased employee career satisfaction The intrinsic value of belonging tothe organization is analogous to the third tier of Maslow’s (1970) hierarchy of needssuch as affection and belongingness, achieving goals, and achieving physiologicaland safety needs (Rossiter, 2009).

The third dimension of Maslow’s (1970) needs occurs when humans long foraffectionate relations with people, not to be confused with sex As Rossiter (2009)explained, an affectionate relation is the encompassing need for affiliation, as well

as being accepted Affection and belongingness occurred among coworkers andcreated a sense of group identity, which is particularly valuable in accomplishingteam goals The arguments indicate that leaders must focus attention on developing

an affectionate relationship with followers when increasing motivation

Analysis of scientific literature showed strong link between Job satisfactionrelative to expectations and their career satisfaction Every person has different sets

of goals and can be motivated if he/she believes in positive correlation betweenefforts and performance; desirable reward, which will satisfy an important need and

if desire to satisfy the need is strong enough to make the effort worthwhile

To conclude the results of empirical research about expectations from workand motives for studies, we can say that employee state their background as themost important motive for studies

Physiological and safety needs according to employee view are the mainexpectations they want to satisfy from the work These results confirm the essence

of Maslow hierarchy theory of needs

Evaluating employee career satisfaction using Katz’s methodology we canstate that are the most important for their work It was not found strong statisticaldifference according to work experience and analyzed factors.

Hypothesis 1: Job satisfaction relative to expectations direct impact to their career satisfaction

3.2.2 Role innovation

Unlike a lot of existing business processes, innovation is still in its infancy as

a process and thus is dependent on people rather than systems or metrics to drive itforward

Also, unlike other processes, innovation requires a commitment and a beliefsystem in order to succeed

People are important to innovation, and the right people in the right roles arecritical In some firms, one person may hold multiple roles In larger firms each rolemay be held by one or several individuals

Note, however, that the roles do not define a title or organizational hierarchy

We find that the seniority of the person filling the role is important only if they arecommitted to innovation If you cannot fill a role with a senior person but have acommitted, more junior person, engage the process and demonstrate success and thesenior people will come aboard

Cast your net broadly The more business functions involved, the easier it will

be to implement a business process across the organization If marketing, sales,engineering, legal and finance all have a stake in the success, they will be morelikely to work together to succeed

Engage people who are intellectually interested (heads), who are passionateabout innovation or the success of the project or product (hearts) and who arewilling and able to commit time and resources (hands) to successfully execute theproject