Job satisfaction at saigontourist travel service company

MBAOUM0315 – K17C Abstract ABSTRACT This research aimed to find which exact factors influence to the Global Job Satisfaction of employees working at Saigontourist Travel Service Company

RESEARCH PROJECT

(BMBR5103)

JOB SATISFACTION

AT SAIGONTOURIST TRAVEL SERVICE COMPANY

STUDENT’S FULL NAME : NGUYEN PHUOC PHUONG UYEN

ADVISOR’S NAME & TITLE : NGUYEN THE KHAI (DBA)

July 2016

Advisor’s assessment

Advisor’s signature

MBAOUM0315 – K17C Table of Contents

TABLE OF CONTENTS

ACKNOWLEDGEMENT

ABSTRACT

CHAPTER 1: INTRODUCTION 1

1.1 Introduction of Saigontourist 1

1.2 Business Objective 1

1.2.1 Core business 1

1.2.2 Inbound Travel 1

1.2.3 Mission statement 2

1.2.4 Vision 2

1.3 RESEARCH INTRODUCTION 6

1.3.1 Research Problems Statement 6

1.3.2 Research Objectives 7

1.3.3 Research Scope 7

1.3.4 Significance of research 8

CHAPTER 2: LITERATURE REVIEW 9

2.1 Definition of Construct 9

2.1.1 Global Job Satisfaction 9

2.1.2 Job control, Cognitive Demand and Production Responsibility 10

2.1.3 Supervisory Support 10

2.1.4 Developmental Experiences 11

2.1.5 Role Justice 12

2.1.6 Work Values Inventory 15

2.2 Research Model 16

2.2.1 Research model 16

2.2.2 Constructs 17

2.2.3 Research Hypothesis 17

CHAPTER 3: ARGUMENT FOR THE RELATIONSHIP AMONG THE

CONSTRUCTS 18

3.1 Maslow’s theory 18

3.2 Herzberg’s Motivation Hygiene Theory 21

3.3 McGregor’s Participation Theory 23

3.4 Urwick’s Theory Z 26

3.5 Alderfer’s ERG theory 27

3.6 McClelland’s theory 31

3.7 Porter and Lawler’s Expectancy Theory 34

3.8 Vroom’s Expectancy Theory of Motivation 36

CHAPTER 4: RESEARCH METHODOLOGY 39

4.1 Method of Data collection 39

4.2 Design template scale 39

4.2.1 Global Job Satisfaction 39

4.2.2 Job Control, Cognitive Demand, and Production Responsibility 41

4.2.3 Supervisory Support 42

4.2.4 Development Experiences 44

4.2.5 Role Justice 45

4.2.6 Work Values Inventory 46

4.3 Data analysis 46

CHAPTER 5: RESEARCH FINDINGS AND ANALYSIS 48

5.1 Data Analysis 48

5.2 Measure of each constructs 49

5.2.1 Global Job Satisfaction (GJS - main construct) 49

5.2.2 Job Control, Cognitive Demand, and Production Responsibility (JCP) 49

5.2.3 Supervisory Support (SS) 50

5.2.4 Developmental Experiences (DE) 50

5.2.5 Role Justice (RJ) 51

5.2.6 Work Values Inventory (WVI) 51

5.3 Descriptive statistics 51

MBAOUM0315 – K17C Table of Contents

5.4 Correlation statistics among the variables 53

5.5 Hypotheses testing 54

5.5.1 Hypothesis proposed (H1) 55

5.5.2 Hypothesis proposed (H2) 56

5.5.3 Hypothesis proposed (H3) 57

5.5.4 Hypothesis proposed (H4) 58

5.5.5 Hypothesis proposed (H5) 59

CHAPTER 6: DISCUSSION AND RECOMMENDATION 61

6.1 Discussion 61

6.2 Limitation of the research 61

6.3 Forecast recommendation 62

REFERENCE 64

APPENDIX 1: SURVEY 69

APPENDIX 2: PRESENTATION 78

LIST OF TABLES

Table 1: Global Job Satisfaction Scale 40

Table 2: Job Control, Cognitive Demand, and Production Responsibility 41

Table 3: Supervisory Support 43

Table 4: Developmental Experiences 44

Table 5: Role Justice 45

Table 6: Work Values Inventory 46

Table 7: Cronbach‟s Alpha - Internal Consistency 48

Table 8: Cronbach‟s Alpha of Global Job Satisfaction 49

Table 9: Cronbach‟s Alpha of Job Control, Cognitive Demand, and Production Responsibility 49

Table 10: Cronbach‟s Alpha of Supervisory Support 50

Table 11: Cronbach‟s Alpha of Developmental Experiences 50

Table 12: Cronbach‟s Alpha of Role Justice 51

Table 13: Cronbach‟s Alpha of Work Values Inventory 51

Table 14: Descriptive statistics 52

Table 15: Correlation statistics 53

Table 16: Model summary of H1 55

Table 17: Coefficients of H1 55

Table 18: Model summary of H2 56

Table 19: Coefficients of H2 56

Table 20: Model summary of H3 57

Table 21: Coefficients of H3 57

Table 22: Model summary of H4 58

Table 23: Coefficients of H4 58

Table 24: Model summary of H5 59

Table 25: Coefficients of H5 59

MBAOUM0315 – K17C List of Figures

LIST OF FIGURES

Figure 1: Research model 16

Figure 2: Maslow's hierarchy of needs, represented as a pyramid with the more basic needs at the bottom 19

Figure 3: Herzberg‟s motivational and hygiene factors 22

Figure 4: McGregor‟s Participation Theory 24

Figure 5: Alderfer‟s ERG theory 30

Figure 6: McClelland‟s theory 33

Figure 7: Porter and Lawler‟s expectancy model 36

Figure 8: Vroom‟s Expectancy Theory of Motivation 38

ACKNOWLEDGEMENT

In order to completing thesis, the author always needs not only his efforts but also the support of other people Therefore, I would like to gives my best regards to those who have been besides me and motivate me during the time of doing this research

First of all, I would like to express my thankfulness as well as my attitude to my lecture Nguyen The Khai (DBA) who give introduction carefully and basically Without his encouragement and comments, my thesis would not have been finished effectively

Secondly, I would like to thanks to groups who assist in the process of data collection and data entry for doing this research as an important part of this thesis I also acknowledge my thankfulness to those who give me valuable time, kind assistances in participating in the survey

Finally, my special thanks to all my family, my friends, my colleagues always encouraged me and push me to complete this survey as well as give me more helpful knowledge that is much useful in my work

Nguyen Phuoc Phuong Uyen

MBAOUM0315 – K17C Abstract

ABSTRACT

This research aimed to find which exact factors influence to the Global Job Satisfaction

of employees working at Saigontourist Travel Service Company Limited This research project is advised to use Business Research Methods to determine whether other main factors affect to the Global Job Satisfaction or not

The quantitative method was used to conduct this research with the source is surveys

by offline on 500 employees of Saigontourist to collect data Moreover, the results of statistics analyzed by SPSS version 20 software (Copyright of IBM) were proved by Cronbach‟s alpha, Descriptive Statistics, Correlation and Multiple Regression Analysis The hypotheses used in this research were inclusive six constructs which are

one dependent construct (Global Job Satisfaction) and other five independent constructs (Supervisory Support, Developmental Experiences, Role Justice and Work Values Inventory)

Least but not last, the research outlined the relationship between dependent and independent constructs are positive or negative The research also pointed out some helpful recommendation to managers of Saigontourist so that they can acknowledge the problems are having in their company and then they will have effective solutions to upgrade job satisfaction for employees in their company

Key words in this research: Global Job Satisfaction, Supervisory Support,

Developmental Experiences, Role Justice and Work Values Inventory

CHAPTER 1: INTRODUCTION

1.1 Introduction of Saigontourist

Established since 1975, Saigontourist Travel Service Company, an affiliate of Saigontourist Holding Company, has made its hallmark amongst the Vietnamese leading travel management companies that have operated successfully in all three primary tourism fields including inbound, outbound, and domestic travel

Comprehensive development, continuing innovation and improvement in management technology, serving style standardization and dedicated, professional, high-skilled staff have paved the way for enhancing and strengthening Saigontourist‟s brand name popularity

1.2 Business Objective

1.2.1 Core business

Saigontourist Travel Service Co Ltd is specialized in designing and operating optimal leisure tours, meeting & incentive travel & business travel services for customers with consulting expertise, high-quality service, and product diversification

1.2.2 Inbound Travel

Saigontourist Travel Service owns competitive advantages in the field of inbound travel thanks to the partnership network covering many countries over the world Since established, Saigontourist has been trusted by international tourists for package tours of diversified itineraries spreading throughout Vietnam

MBAOUM0315 – K17C Chapter 1: Introduction

Outstanding products of Saigontourist are built based on Vietnam‟s great potentials of tourism attractions, and Vietnamese strength and cultural depth, under many forms of travel such as: sight-seeing, adventure, social–culture exploration, gastronomy, eco, diving, golf, research, handicapped, and so on

Cooperation network

Saigontourist Travel Service brand name has stretched far beyond the border as broadening close partnership with over 400 travel companies, agents from many countries and territories such as France, Japan, Germany, the United States of America, Northern Europe, Spain, China, United of Kingdom, South of Korea, ASEAN, etc., and official membership of international tourism associations (PATA, ASTA, USTOA, JATA), Vietnam Tourism Association (VTA), Ho Chi Minh City Travel Association (HTA)

Leading travel brand

Since 1999, Saigontourist Travel Service has been voted annually as the leading of Top Ten Tour Operators by Vietnam Tourism Association and Vietnam National Administration of Tourism

1.2.3 Mission statement

“Saigontourist Travel Service, as a Viet Nam‟s leading tour operator, is committed to creating the best values with its travel services for its customers, partners and to guaranteeing the sustainable and harmonious development for the benefits of its staff and social community”

1.2.4 Vision

“Saigontourist Travel Service focuses on diverse business in terms of market, customer

and travel service & product in all fields of inbound, outbound and domestic travel with an aim to become one of the leading travel companies in the region”

Saigontourist – Business Philosophy

BUSINESS FOCUS – CUSTOMER FOCUS – STAFF & COMMUNITY FOCUS

Building, developing, and protecting Saigontourist‟s trade name over the past 36 years

is an interactive process under the collaboration between the company, customers, and the community The company‟s branding and business culture is comprised of incessantly application of new management standards, development of customer-oriented products and services, strong teamwork spirit, and full awareness of the company‟s responsibilities towards the community…

On that fundamental, Saigontourist puts priority on:

Business Focus: Targeting sustainable business development

Customer Focus: Satisfying all travel demands with best services Increasing add-on

values throughout interesting personal experiences Strengthening loyalty of current customers and simultaneously attracting the potential ones

Staff Focus: Human resources are determined to be an invaluable property of the

company Treating every employee with appreciation is one of the core values in Saigontourist‟s traditional culture

Staff training is concentrated on a regular basis to enhance professionalism, dedicated serving style, career knowledge and skills, teamwork spirit, as well as sense of responsibility The working condition has also received great care to improve solidarity

MBAOUM0315 – K17C Chapter 1: Introduction

and friendliness, becoming the second home to every employee so as to foster the unanimity in developing Saigontourist brand name, paving the way for individual income increase

Community Focus: In addition to financial profits, Saigontourist has always aimed at

harmonizing the benefits of the social communities, while ensuring friendliness as well as suitability with our socio-economic and cultural environment, with a view to achieve an active and mutually supportive relationship with the communities throughout diversified and practical sponsorship and charity programs

environmental-Saigontourist – Corporate brand

The corporate brand of Saigontourist Travel Service and the Logo are registered to and protected by the Vietnam Industry Proprietary & Author Copyright Bureau The Saigontourist Travel Service logo with a traditional „Mai‟ flower (apricot) is also considered as a symbol of spring in Vietnam, and the yellow color of the flower represents happiness, wealth, and prosperity The letter S on the cyan background illustrates the shape of Vietnam as well as the first letter of Saigontourist The circle in the center is designed with one vertical line and three cross lines to reflect the continuingly extending partnership and business world scale The logo incorporates our company‟s full name “Saigontourist Travel Service” that is positioned within a unified block, reflecting a sustainable development on a solid foundation

What makes Saigontourist Travel different from competitors?

Saigontourist Travel Service is the only company in Viet Nam operating successfully

in all three primary tourism fields including inbound, outbound, and domestic travel

As for inbound, Saigontourist Travel Service serving not only foreign tourists by air but also by road, by sea and by river, and for leisure, business, MICE tourists Our

products have been developed by categories as Premium Travel, Traditional Travel and IKO Travel The distribution channel has been established include both online and offline We are now managing different websites such as:

- www.dulichthu-dong.com (Autumn – Winter);

- www.dulichtet.com (tet festival);

- www.dulichtietkiem.com (IKO Travel)

Our business strategy has made contribution to promoting Vietnam and Sagiontourist

in the source markets Out effective marketing & promoting activities have considerably contributed to our achievements For years Saigontourist Travel Service have been consistent in strategic approach to increase demand in the source markets Saigontourist Travel Service has promoted a positive image of Vietnam and Indochina

in the source markets

Vietnam, Cambodia and Laos, “three countries, one destination” Saigontourist Travel Service has promoted not only Vietnam but also Cambodia and Laos in our source markets Combination tour programs of Cambodia-VN-Laos, Cambodia-VN and Laos-Vietnam are always presented in our brochures, Saigontourist Travel Service web pages, etc… as in our tour offers to tour operators in the source markets

MBAOUM0315 – K17C Chapter 1: Introduction

1.3 RESEARCH INTRODUCTION

1.3.1 Research Problems Statement

The company is currently actively developing human resources; they especially focus

on the selection and retaining talented staffs to the company Saigontourist is a big company, so human resources management should have strict management system effectively, especially keeping the loyalty of talented people stay with the company Recruiting the right people talent was hard, but to retain talent is even more difficult, especially how to keep key persons is the most important task of the recruitment department in the company

Saigontourist is known for many talent staffs stay with the company very long, up to thirty years However, this amount is recently dropped significantly This makes a huge trouble to the Human Resources Department That is why we have to conduct this survey for the Job Satisfaction of staffs in the company and from then, we can understand clearly about their needs about work condition nowadays

With the shortage of qualified staff, to retain good people are becoming major issues of

Saigontourist It is recognized that the Job Satisfaction of employees based on many factors but I would choose five factors such as Job Control, Cognitive Demand and Production Responsibility, Supervisory Support, Developmental Experiences, Role Justice and Work Values Inventory, and I would like to research all these factors

whether they affect positively or negatively to the loyalty of employees From then, I would like to give some recommendation so that the company will have sustainable plan for development of its human resources as well as help organizations operate more efficiently, produce quality services, get the brand building, have customer confidence and loyalty

Cronbach’s alpha, Descriptive Statistics, Correlation and Multiple Regression Analysis to analyze which factors really affect the Global Job Satisfaction

- Step 3: Discussing and providing recommendation to improve the human

resources management at Saigontourist in the future

1.3.3 Research Scope

The scope of this research is for all employees like Vietnamese or even foreigners, from junior staffs to senior managers such as employees, subordinate, managers, Vice General Directors and General Director working at Saigontourist It does not including Chairman, Board of Directors, Shareholders, supervisor Board and employees under probation period or in maturity leave

The survey scope is including 500 employees at Saigontourist Contents of this research focused on the degree of influence of factors affecting the Job Satisfaction at Saigontourist This survey purpose was not applied for restructure the operating apparatus of the company, changing or replacing the employees‟ position

This survey was conducted around one month from June 15 to July 15, 2016

MBAOUM0315 – K17C Chapter 1: Introduction

CHAPTER 2: LITERATURE REVIEW

2.1 Definition of Construct

2.1.1 Global Job Satisfaction

This measure was originally developed by Quinn and Shepard (1974) Then, the concept of job satisfaction has been widely defined by different researchers and practitioners; however, definition from Locke was the most impressive Locke, (1976) specified that job satisfaction is a pleasurable or positive emotional state resulting from the appraisal of one„s job experiences Worthy of note in this definition by Locke is the use of both cognition (appraisal) and affect (emotional state) Thus, Locke assumes that job satisfaction results from the interplay of cognition and affect, or thoughts and feelings

After few years, Rice, et al (1991) defined job satisfaction as an overall feeling about one job or career in terms of specific facets of job or careers (e.g compensation, autonomy, coworkers) It can be related to specific outcomes, for example, productivity After that, Spector (1997) refined the definition of job satisfaction to constitute an attitudinal variable that measures how a person feels about his or her job, including different facets of the job

According to the research of Fields & Blum (1997); McFarlin & Rice (1992); Pond & Geyer (1991), Global job satisfaction correlated positively with satisfaction with the facets of the job itself, supervision, promotion, pay, interactions with a boss, customer contact, job freedom, learning opportunities, amount of decision making, and satisfaction with co-workers It also correlated positively with affective commitment to

an occupation and the organization, job involvement, the importance of interaction with a boss and the importance of customer contact (Birnbaum & Somers, 1993; McFarlin & Rice, 1992; Mossholder Bennett & Martin, 1998; Pond & Geyer, 1991)

MBAOUM0315 – K17C Chapter 2: Literature review

This measure uses six items to measure an employee‟s general affective reaction to his

or her job without reference to any specific facets

2.1.2 Job control, Cognitive Demand and Production Responsibility

This measure was developed by Jackson, Wall, Martin, and Davids (1993) It assesses the extent of job control, cognitive demand, and production responsibility an employee experiences in a job The job control covers timing control which means a job gives the freedom to an employee in order to not only to determine the scheduling of his or her work behavior and method control but also carry out tasks The cognitive demand gives the concept about the job, which is involves active, cognitive processing to prevent or detect error, requires an employee to perform passive monitoring tasks Production responsibility which means a job involves responsibility for avoiding lost damage to expensive equipment

The structure of the five dimensions of the measure was confirmed with both exploratory and confirmatory factor analysis

of acceptance, job discretion, job performance in terms of both tasks and relationships, employee promotability and career satisfaction

Supervisor support is defined as the extent to which leaders value their employees’ contributions and care about their well-being A leader with high

supervisor support is one that makes employees feel heard, valued, and cared

about Although it sounds simple, providing this kind of support is one of the hardest transitions to make when promoted from employee to supervisor The move from

“process expert” to “motivational leader” is possibly one of the largest steps one can take in his/her working life So why is supervisor support so important for effective leadership? Because it is one of the key behaviors that effective leaders develop as soon as they move from individual contributor to manager (In fact, it leads to positive outcomes at all levels of leadership) In specific terms, organizational research has

identified a myriad of positive outcomes associated with high supervisor support,

including:

 Increased job satisfaction

 Stronger person-organization fit (degree to which personality/beliefs/values match organizational culture)

 Increased organizational citizenship behaviors (OCB)

 Improved employee perceptions of organizational support

 Improved relationships with employees

 In-role and extra-role performance

 Reduced job tension

 Reduced work-family conflict

 Reduced turnover (a secondary effect)

2.1.4 Developmental Experiences

This measure was developed by Wayne, Shore, and Liden (1997) It mentions the formal and informal developmental experiences a job affords employees The measure focus on the formal and informal training and development of an employee from an investment of a company

MBAOUM0315 – K17C Chapter 2: Literature review

Leadership Experience Examples:

 Serve as a mentor to other colleagues, supervisees, or staff members or help to onboard new colleagues

 Lead a project team/manage a group where team members are experts in areas that you are not

 Lead a project that requires innovation

 Lead a division- or campus-wide project or task force that will have campus policy implications

 Assume a divisional liaison role with Central HR on processes for:

o Outreach and recruitment

o Managing people issues

 Chair a selection committee to fill a position

 Speak at a meeting

 Present at a conference

 Run for a position in a professional association on or off campus

 Take on a leadership role in a social, community, or volunteer organization

These are just some examples of developmental experiences that can help employees develop their skills The unique experiences that can help employees progress toward their career development goals will be created by themselves, in conjunction with their supervisor or manager Learning how to communicate to their supervisor that eployees are open to and desire development experiences is important to getting the opportunity

to develop their career skills

Show openness by being receptive to new ideas and suggestions, by admitting to their need for improvement, and by actively seeking their direct supervisor/manager's feedback Keep in mind that the end goal is their career development, not the coaching process itself Even if it's difficult to hear constructive criticism in the short run, if it helps to create development experiences for them it will help their career development

as a whole

2.1.5 Role Justice

This measure was developed by Zohar (1995) It describes employee perceptions of role justice as an employee‟s appraisal of fairness when the employee and a role

sender‟s expectations do not make sense because of limiting conditions associated with

a job Perceptions of injustice or unfair reactions may create role stress Moreover, perceptions of justice may moderate the effects of role stress, or moderate the effects of role conflict and overload When an employee is unable to meet the role senders‟ role demands, it may be reduce the effects of overload, or increase the salience and discomfort employees feel

The study of organizational justice perceptions has received great attention from the researchers and scholars and it has become frequently researched topics in the field of industrial-organizational psychology, human resource management and organization behavior (Cropanzano & Greenberg, 1997) Over the last 30 years, organizational justice has been researched extensively in social psychology, specifically in organizational contexts by psychologists and management researchers, among others interested in the construct (Blakely, Andrews & Moorman, 2005; Moorman, 1991; Trevino & Weaver, 2001) Perceptions of organizational justice constitute an important heuristic in organizational decision-making, as research relates it to job satisfaction, turnover, leadership, organizational citizenship, organizational commitment, trust, customer satisfaction, job performance, employee theft, role breadth, alienation, and leader-member exchange (Cohen Charash & Spector, 2001) Kim (2009) found that employees who perceived that they were treated fairly by their company tended to develop and maintain communal relationships with the company Also, when employees felt that they were treated fairly by their company, they were likely to hold more commitment, trust, satisfaction, and control mutuality than when they perceived that they were treated unfairly

The research on organization justice perceptions which focuses on the role of fairness

in the work place have shown that organizational justice perceptions strongly effect the

MBAOUM0315 – K17C Chapter 2: Literature review

attitude of the workers such as job satisfaction, turnover intentions and organization commitment and also workplace behavior such as absenteeism and organizational citizenship behavior (Colquitt, Conlon, Wesson, Porter, & Ng, 2001) In addition, research has also demonstrated the linkages between perceived organizational justice and individual work performance (Colquitt et al., 2001, Earley & Lind, 1987) Perceived organizational justice is found to be an important antecedent of organizational citizenship behavior (Bakhshi & Kumar, 2009) Although the associations between justice perceptions and various work outcomes are well established in western literature a very few studies has examined the relationship of justice perceptions with work attitude and work behavior in Indian culture A number

of studies showed that culture do influence the justice perceptions of the employees and culture is an important determinant of what impact does the justice perception will have on various work outcomes Tyler and his colleagues (Lind & Tyler, 1988; Tyler, Boeckmann, Smith, & Huo, 1997) proposed that procedural justice concerns are ubiquitous across diverse societal and cultural settings Cross-cultural research on procedural justice has recently begun (Brockner, Chen, Mannix, Leung, & Skarlicki 2000; Lind & Earley, 1992; Lind, Tyler, & Huo, 1997) A first question addressed by cross-cultural procedural justice researchers is whether non-Westerners (i.e., collectivists) care about procedural justice issues as well (e.g., LaTour, Houlden, Walker, & Thibaut, 1976) Similarly, Sugawara and Huo (1994) found that the Japanese show a strong concern about procedural justice in conflict resolutions White, Tansky, and Baik (1995) reported that Korean subjects reveal concerns about procedural justice, although their concerns are lower than those of American subjects The present study aims to find the relationship between justice perceptions, job satisfaction an organization commitment and attempt to fill that research gap We provide a brief review of the conceptualization of the organizational justice construct before reviewing the specific research questions explored in this article

2.1.6 Work Values Inventory

The Work Values Inventory (WVI), developed by Manhardt (1972), focused on job characteristics Although there is little evidence as to how the characteristics were selected, the original study consisted of 25 job characteristics After analysis of the items, three factors emerged Meyer, Irving, and Allen (1998) later confirmed and labeled the three factors: Comfort and Security, Competence and Growth, and Status and Independence According to Leuty and Hansen (2011), comfort and security are characterized by “a comfortable working environment including having a routine schedule, leisure time, and good relationships with coworkers” (p 380) The second factor, competence and growth, is characterized by “the importance of responsibility, advancement, and supervision of others” (p 380) The third and final factor, status and independence, is characterized by “independence, continued development of skills, and intellectual stimulation” (p 380) Manhardt‟s Work Values Inventory is of importance

as it asks a range of questions, at the item level, that are not included in other work values measures For example, the MWVI asked respondents if they valued employment that 20 “permitted” a regular routine in time and place of work” (p 380) concerning comfort and security

It assesses the importance of 25 difference job characteristics Manhardt found 21 of these characteristics group These dimensions are includes three items which are comfortable and security, competence and growth, and status and independence The

1st item which is comfortable and security, includes job characteristics such as having comfortable working conditions, job security and a regular routine The 2nd item which

is competence and growth includes job characteristics such as intellectual stimulation, continued development of skills, and a feeling of accomplishment The last item which

is status and independence includes job characteristics such as opportunities to earn a

MBAOUM0315 – K17C Chapter 2: Literature review

high income, supervision of other employees, and working on problems of importance

to the organization (Manhardt, 1972)

- Hypothesis 1 H2: There is a positive relationship between Supervisory Support

and Global Job Satisfaction

- Hypothesis 1 H3: There is a positive relationship between Developmental Experiences and Global Job Satisfaction

- Hypothesis 1 H4: There is a positive relationship between Role Justice and

Global Job Satisfaction

- Hypothesis 1 H5: There is a positive relationship between Work Value

Inventory and Global Job Satisfaction

MBAOUM0315 – K17C Chapter 3: Argument for the Relationship among the Contructs

CHAPTER 3: ARGUMENT FOR THE RELATIONSHIP AMONG THE CONSTRUCTS

3.1 Maslow’s theory

Contents

Shortly after Fritz Roethlisberger published his 1941 book Management and Morale,

outlining in detail the Hawthorn studies, Abraham Maslow published “A Theory of Human Motivation” in 1943 Maslow is considered the father of needs based motivation theory and his theory is “one of the best-known and most widely cited works on motivation” (Denhardt et al., 2008, p 148)

Maslow (Maslow, 1946) proposed a five level hierarchy of needs which he outlined as necessary for the achievement of a completely satisfied individual; or in his terms, a self-actualized being Those needs are: physiological, safety, love, esteem, and self-actualization

Physiological needs can be described as the most basic of human needs; those needed for human survival These include breathing, water, food, and shelter Safety needs are those needs which create stability and predictability in our lives: personal and financial security, health and well-being, and employment and access to resources Love/belonging needs are centered on social interactions and interpersonal relationships: friendship, family, and intimacy Esteem needs reflect our desires for respect, self-esteem and the need to belong

Finally, self-actualization is the state which the individual achieves when all other needs have been meet Maslow identifies fifteen attributes that self-actualized individuals experience, and thus the exact definition of being “self-actualized” is difficult to summarize Some of the characteristics include: the acceptance of self, others and nature; spontaneity; autonomy independent of culture and environment; and the mystic experience:

Feelings of limitless horizons opening up to the vision, the feeling of being simultaneously more powerful and also more helpless than one ever was before, the feeling of ecstasy and wonder and awe, the loss of placement in time and space with, finally, the conviction that something extremely important and valuable had happened,

so that the subject was to some extent transformed and strengthened even in his daily life by such experiences

Each need, or level, is fulfilled in sequence and serves as motivation until all the needs

of the individual are meet in self-actualization While Maslow emphasized that individuals will generally be motivated to seek each need in the order described, he also stated that the order of his hierarchy is “not nearly as rigid as we may have implied” (p 386) and that in some individuals will seek needs in different order

It is important to remember that Maslow himself realized that his hierarchy of needs was more theoretical than normative:

Figure 2: Maslow's hierarchy of needs, represented as a pyramid with the more basic needs at the bottom

MBAOUM0315 – K17C Chapter 3: Argument for the Relationship among the Contructs

Cianci, R.; et al (2003) “Maslow's hierarchy of needs: Does it apply in a collectivist culture” Journal of Applied Management and Entrepreneurship 8 (2): 143-161

Kenrick, D T.; Griskevicius, V.; Neuberg, S L.; Schaller, M (2010) “Renovating the pyramid of needs: Contemporary extensions built upon ancient foundations”

Perspectives on Psychological Science 5 (3): 157-163

Self-argument

Based on the theory of Maslow's needs, I think organizations should use this theory in human resources management In a business or organization's basic needs can be met through the good and fair wage, provide lunch or mid-shift meals free or guaranteed benefits like bonuses as emulation titles, bonus trips, travel, rewards initiatives To meet the needs of safety, managers can ensure favorable working conditions, job security and stability to be maintained fair treatment for employees To ensure relations needs, the employee should be facilitated teamwork, created the opportunity to expand exchanges between divisions, encouraging people to join is to serve the development business or organizational development Also to meet the needs of developing relationships, business or organization needs to have fun activities, entertainment staff anniversaries or other holiday To satisfy the needs of workers are respected should be respected personality, qualities

Besides being paid salaries or adequate income under market relations, they also want

to be respectful of human values The manager or leader; therefore, need to have mechanisms and policies to praise, honor the success and popularity of successful results widely individuals At the same time, workers should also be to provide timely feedback, promote employees on the new job position level and greater sphere of influence For self-improvement needs, the manager or boss needs to provide the opportunity to develop personal strengths At the same time, workers need training and

development, should be encouraged to participate in the process of improvement in the business or organization and create conditions for them to develop careers

A worker newly recruited seeking employment and basic income, the creation of employment opportunities and income for the employees themselves are biting problems are of primary concern While an employee was working with "seniority" in the Company mature work and accumulated quite a lot of work experience were paid high wages, the employee needs to be reach, position in the enterprise or organization The promotion of new work positions in a higher position than the current staff will encourage people to work vigorously and more effectively

3.2 Herzberg’s Motivation Hygiene Theory

Contents

The psychologist Frederick Herzberg extended the work of Maslow and proposed a new motivation theory popularly known as Herzberg‟s Motivation Hygiene (Two-Factor) Theory Herzberg conducted a widely reported motivational study on 200 accountants and engineers employed by firms in and around Western Pennsylvania

He asked these people to describe two important incidents at their jobs:

(1) When did you feel particularly good about your job, and

(2) When did you feel exceptionally bad about your job? He used the critical incident method of obtaining data

The responses when analyses were found quite interesting and fairly consistent The replies respondents gave when they felt good about their jobs were significantly different from the replies given when they felt bad Reported good feelings were generally associated with job satisfaction, whereas bad feeling with job dissatisfaction Herzberg labelled the job satisfiers motivators, and he called job dissatisfies hygiene or

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maintenance factors Taken together, the motivators and hygiene factors have become known as Herzberg‟s two-factor theory of motivation

Figure 3: Herzberg’s motivational and hygiene factors

Source: http://www.slideshare.net/oeconsulting/motivation-theories-by-operational-excellence-consulting

According to Herzberg, the opposite of satisfaction is not dissatisfaction The underlying reason, he says, is that removal of dissatisfying characteristics from a job does not necessarily make the job satisfying He believes in the existence of a dual continuum The opposite of „satisfaction‟ is „no satisfaction‟ and the opposite of

„dissatisfaction‟ is „no dissatisfaction‟

According to Herzberg, today‟s motivators are tomorrow‟s hygiene because the latter stop influencing the behaviour of persons when they get them Accordingly, one‟s hygiene may be the motivator of another

Previous research

Robert J House and Lawrence A Wigdor (2006) “Herzberg's dual-factor theory of job satisfaction and motivation: A review of the evidence and a criticism” Personnel

Psychology, Vol 20 (4), 369-390

King, Nathan (1970) “Clarification and evaluation of the two-factor theory of job satisfaction” Psychological Bulletin, Vol 74 (1), 18-31

Self-argument

In my opinion, these factors satisfy workers are different from the factors that create satisfaction So the organizations cannot expect the employee satisfaction by simply removing the causes of dissatisfaction The effective management requires adequately solved simultaneously maintaining two groups of factors and encouragement, rather than focusing on a particular group

This theory helps administrators know the factors causing dissatisfaction for employees and thereby seek to eliminate these factors For example, employees may be dissatisfied with the job because their wages are too low, superiors are too strict, relationship with colleagues is not good Thus, managers must find ways to improve wages, reduced monitoring and colleagues built the better However when the factors causing dissatisfaction are removed, there is no means employees will be satisfied If you want to motivate people, make them happy in the job, the administration will need

to address factors such as achievement, recognition and job assignment For example, employees will feel satisfied with the work when they are given the right skills and his personality, have the opportunity to learn, improve their skills and career advancement

3.3 McGregor’s Participation Theory

Contents

Theory X and Theory Y are theories of human motivation that were created and developed by Douglas McGregor at the MIT Sloan School of Management in the 1960s Douglas McGregor formulated two distinct views of human being based on participation of workers

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The first basically negative, labeled Theory X, and the other basically positive, labeled Theory Y

Figure 4: McGregor’s Participation Theory

Source: http://www.slideshare.net/ajiteshpalsingh/ob-ppt-43309660

Theory X is based on the following assumptions:

1 People are by nature indolent That is, they like to work as little as possible

2 People lack ambition, dislike responsibility, and prefer to be directed by others

3 People are inherently self-centered and indifferent to organisational needs and goals

4 People are generally gullible and not very sharp and bright

On the contrary, Theory Y assumes that:

1 People are not by nature passive or resistant to organisational goals

2 They want to assume responsibility

3 They want their organisation to succeed

4 People are capable of directing their own behaviour

5 They have need for achievement

What McGregor tried to dramatize through his theory X and Y is to outline the extremes to draw the fencing within which the organisational man is usually seen to behave The fact remains that no organisational man would actually belong either to theory X or theory Y In reality, he/she shares the traits of both What actually happens

is that man swings from one set or properties to the other with changes in his mood and motives in changing environment

Previous research

Sahin, F (2012) “The mediating effect of leader-member exchange on the relationship between X and Y theory management styles and effective commitment: A multilevel analysis” Journal of Management and Organization, 18 (2), 159–174

to blame a specific individual to discipline or reward

Despite such limitations, but we cannot conclude that theory X is completely wrong The short comings of the theory comes from the fact X at the time - it is the understanding of governance still in the processing Thus, the view of the shortcomings

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of the theory X is the premise for the introduction of advanced management theories Since its debut up to now, theory X still makes sense and is most commonly used in the manufacturing and services sectors Theory X helps administrators to recognize themselves again to edit accordingly and it also became the human resources classic theory which is not able to be missed to teach in the economic

of the Asian countries in the 1980s If the theory X has a negative outlook, the theory Z focus on increasing the loyalty of workers to companies by creating peace of mind, contentment; respect for workers both inside and outside of work The essence of this theory is to satisfy and increase the morale of the employees so that they achieve productivity and quality at work

The two propositions in Urwicks’s theory are that:

(i) Each individual should know the organisational goals precisely and the amount of contribution through his efforts towards these goals

(ii) Each individual should also know that the relation of organisational goals is going

to satisfy his/her needs positively

In Urwick‟s view, the above two make people ready to behave positively to accomplish both organisational and individual goals However, Ouchi‟s Theory Z has attracted the lot of attention of management practitioners as well as researchers

Theory Z is based on the following four postulates:

a Strong Bond between Organisation and Employees

b Employee Participation and Involvement

c No Formal Organisation Structure

d Human Resource Development

Self-argument

As the content of the theory Z, we can see it is not only a fairly modern theory but also the theory of the Western However, because the theory is based on the management of Japanese companies, it also has the characteristics of Oriental thinking First, it is mentioned as the Japanese people in particular and the East in general attaches great importance to the loyalty and self-esteem or the personal The Japanese already use it for inclusion in their methods of administration Besides Eastern people usually strive toward harmony, the harmony of the three factors is labor productivity, confidence and tact in relations between people

3.5 Alderfer’s ERG theory

higher-MBAOUM0315 – K17C Chapter 3: Argument for the Relationship among the Contructs

intrinsic factors which lead to job satisfaction On the other hand, hygiene factors, associated with Maslow‟s lower-level needs, do not lead necessarily to motivation or satisfaction, but rather are extrinsic and simply reduce job dissatisfaction Examples of hygiene factors include: company policy and administration, supervision, relationships with supervisors, and work conditions

Clayton P Alderfer's ERG theory condenses Maslow's five human needs into three categories: Existence, Relatedness and Growth

Relationships between Alderfer's ERG theory concepts

There are three relationships among the different categories in Alderfer's ERG theory:

a Satisfaction-progression

Moving up to higher-level needs based on satisfied needs

With Maslow, satisfaction-progression plays an important part Individuals move

up the need hierarchy as a result of satisfying lower order needs In Alderfer's ERG theory, this isn't necessarily so The progression upward from relatedness satisfaction to growth desires does not presume the satisfaction of a person's existence needs

motivators

c Satisfaction-strengthening

iteratively strengthening a current level of satisfied needs strengthening indicates that an already satisfied need can maintain satisfaction or strengthen lower level needs iteratively when it fails to gratify high-level needs

Satisfaction-ERG theory has three key differences from Maslow's theory:

 It suggests that people can be motivated by needs from more than one level at the same time There is not necessarily a strict progression from one level to the next

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 It acknowledges that the importance of the needs varies for each person and as

circumstances change Some people might put a higher value on growth than

relationships at certain stages of their lives

 It has a "frustration-regression" element This means that that if needs remain

unsatisfied at one of the higher levels, the person will become frustrated, and go back

to pursuing lower level needs again

Figure 5: Alderfer’s ERG theory Source: https://pidp3250motivation.wikispaces.com/Needs+Based+Motivation

Previous research

1 Alderfer, C P (1969) An empirical test of a new theory of human needs

Organizational behavior and human performance, 4(2), 142-175

2 Alderfer, C P (1977) A critique of Salancik and Pfeffer’s examination of

need-satisfaction theories Administrative Science Quarterly, 658-669

3 Arnolds, C A., & Boshoff, C (2002) Compensation, esteem valence and job

performance: an empirical assessment of Alderfer’s ERG theory International

Journal of Human Resource Management, 13(4), 697-719

4 Schneider, B., & Alderfer, C P (1973) Three studies of measures of need

satisfaction in organizations Administrative Science Quarterly, 489-505

Self-argument

From the ERG theory, I think if the staff‟s attempts to satisfying higher needs are frustrated, managers should endeavor to focus their staff‟s attention to satisfying lower needs

3.6 McClelland’s theory

Contents

Written by psychologist David McClelland, is a motivational model that attempts to explain how the needs for achievement, power, and affiliation affect the actions of people from a managerial context This model was developed in the 1960s soon after Maslow's hierarchy of needs in the 1940s McClelland stated that we all have these three types of motivation regardless of age, sex, race, or culture The type of motivation that each individual is driven by is changed by life experiences and the opinions of their culture

David McClelland built a book "The Achieving Society" In 1961 He identified three motivators that he believed we all have: a need for achievement, a need for affiliation, and a need for power People will have different characteristics depending on their dominant motivator According to him, these motivators are learned (which is why this theory is sometimes called the Learned Needs Theory) McClelland states that, regardless of our gender, culture, or age, we all have three motivating drivers, and one

of these will be our dominant motivating driver This dominant motivator is largely dependent on our culture and life experiences