Statement of the Problem General This study aims to determine the job satisfaction of employees working in Thai Nguyen iron and steel joint stock corporation, recommendations for stren
Trang 1AND STEEL JOINT STOCK CORPORATION
EXECUTIVE SUMMARY
Presented to the Faculty of the Graduate Program
of the College of Business and Accountancy Central Philippine University, Philippines
In Collaboration with Thai Nguyen University, Vietnam
By NGUYEN THI LAN HUONG
DECEMBER 2016
Trang 2EXECUTIVE SUMMARY
Corporation
Total No of Pages: 116
Rationale/ Introduction of study
There are many factors influencing human resource management, of which job satisfaction is the most important issue among many factors of human resource management that every manager needs to give much attention
The term “job satisfaction” is derived from the humanities, psychology and sociology In the field of psychology, it is a state where an employee has an emotional perception of his situation and reacts with feelings of pleasure or pain In sociology, it is considered a variable in different categories related to how each employee evaluates and thinks about his work (Sypniewska, 2013) Job satisfaction can be defined as an individual’s total feeling about their job and the attitudes they have towards various aspects or facets of their job, as well as an attitude and perception that could consequently influence the degree of fit between the individual and the organization (R Karthik, S Saratha, & M Sowmiya, 2012; Spector 1997)
For a few decades, many researchers have been carried out about job satisfaction and its components Many researchers and administrators have noticed the importance of job satisfaction on a variety of organizational variables In particular, it was know that dissatisfied employees are likely to leave their jobs (E.J Lumley, et al, 2011) Job satisfaction among employees is an indicator of organizational effectiveness (R Karthik, S Saratha, & M Sowmiya, 2012) the study conducted by Harter et al (2002) found positive and substantive correlations between employee satisfaction-engagement and the business unit outcomes of productivity, profit, employee turnover, employee accidents, and customer satisfaction Freeman, (2005) shows that businesses that excel in employee satisfaction issues reduce turnover by 50% from the norms, increase customer satisfaction to an average of 95 % and lower employee cost
by 12% Carpitella (2003) indicated that the more satisfied an employee is, the less turnover and absenteeism occurs (Maloney, & McFillen, 1986)
Trang 3Added to that, Job satisfaction plays an important role for an employee in doing their job performance Research examining the relationship between job satisfaction and job performance has been conducted since at least as early as 1945 (Davar, 2012) The idea that job satisfaction leads to better performance is supported by Vroom's The study relating to the relationship between job satisfaction and job performance has now become a research tradition in industrial-organizational psychology Vroom's (1964)
In worldwide, job satisfaction was conducted on many areas and those results were
different Nolan et al (1998) found that the vast majority of respondents (85%) considered that their work was interesting Regarding job satisfaction and morale, 35% of respondents considered that their job satisfaction had decreased in the last year and 69% felt that overall morale had fallen Price (2002) indicated that over half of the respondents (58%) were generally satisfied with their job They identified that highest satisfaction was related to co-workers and extrinsic rewards and that most dissatisfaction was with the amount of control and responsibility they had and with professional opportunities Using the same scale, Wang (2002) found that workforces were more dissatisfied than satisfied and were mostly dissatisfied with salary and job promotion
In Vietnam, CareerBuilder (2008) showed that dissatisfaction is growing among the
workers: 25% of employees were bored with their job, 60% of respondents were intending to leave their current job to go to a different berth in the next two years Another study indicated that the respondents ranked their job satisfaction at the moderate level (Vu Thi Kim Trinh, 2013) Duong Cong Vi (2013) revealed that the level of satisfaction among workforces was at lower and middle range of good level This finding is accordant with Le Quang Thach’s research (2012)
Thus, job satisfaction affects to most of aspects of a factory or company It is not only influences to the management resource management, employee productivity, product quality but also changes the customer satisfaction In worldwide and Vietnam, there have been some studies were conducted but results from those studies were different Especially in Vietnam, the degree
of job satisfaction of employee was still low Hence, the we would like to conduct this research
to determine factors influencing job satisfaction of employees and explain the relationship existing among them
Established in 1959, Thai Nguyen Iron and Steel joint stock Corporation (TISCO), the cradle of the metallurgical industry of Vietnam is the first an unique metallurgical zone in Vietnam with an integrated production line from exploiting iron ore to making cast iron, steel billet and rolling steel Like the other companies, TISCO have been facing the challenges of
Trang 4recruiting, and retaining quality workers The problem is unlike the past years, in conditions of economic slowdown, the role of human resource professionals has become an integral part of the organization’s success For the TISCO, these challenges are even more complex So the question
is how to satisfy employees and how to retain them is most concerned question of the different levels of management These studies have been focused mainly on private sectors Seldom has been conducted on relationship between job satisfaction and organizational and individual factors, especially no case of Thai Nguyen, there is no research on this topic Thus, the research
in evaluating the job satisfaction and determining the factors influencing job satisfaction is needed
With the above purposes, we conduct a research on “Satisfaction of employees in Thai Nguyen Iron and Steel Joint Stock Corporation”
Research questions
i) What is the level of job satisfaction among TISCO’s employees?
ii) Is there a difference between level of job satisfaction of directal employee and indirectal
employee?
iii) How may factors influence the job satisfaction in TISCO?
Statement of the Problem
General
This study aims to determine the job satisfaction of employees working in Thai Nguyen iron and steel joint stock corporation, recommendations for strengthening employees’ satisfaction shall be proposed in order to enhance of job efficiency and quality and consolidation
of TISCO personnel
Specific
The purpose of this study is to evaluate the satisfaction level of the employee in TISCO and examine its relevant factors Therefore, the specific objectives of this research are as follows:
1 To synthesize the relevant theories related to job satisfaction
2 To describe the profile of respondent in term of gender, job position, age, educational level, length of work in the company, monthly income, and working conditions
3 To determine the job satisfaction level of employee working in TISCO
4 To identify the effect of Nature of work, Salary, Opportunity for advancement, Relationship with Supervisors, Respect from Co-Workers, Working condition, and Financial Rewards on job satisfaction of employees
5 To propose recommendations for committee to improve the job satisfaction of
Trang 5employees for keeping of their job productivity and efficiency
Research Design and Procedure
A cross – sectional correlation design was used in the present study to examine the relationship between job satisfaction and related factors among employee working at 12 areas in TISCO Thai Nguyen It included descriptive and correlational method Descriptive method was used to describe all data of this study It is a purpose process of fathering, analyzing, classifying, and tabulating data about demography data, perception on job satisfaction data and its factors Correlation design was conducted to determine evaluation of job satisfaction of employee working in TISCO It used for testing of hypotheses and also described the nature of the situation, as it existed at the time of the study and to explore the causes of such particular phenomena Finally, the researcher proposes recommendations for committee to improve the job satisfaction of employees for keeping of their job productivity and efficien
Study Population and Sampling Technique
Population (N): Major factory of TISCO is located in Thai Nguyen In there, amount of employees are big However, some of branch outside Thai Nguyen just introduce and sell product Amount of employees of branches are small Added to that, the time and economic for research are limited Therefore, this study will be conducted in TISCO Thai Nguyen The population is 4489 From a total sample of 4489, the computed sample size is 367
Cluster sampling technique was used to select the sample in this study Each step of sampling was described as following:
Step 1: TISCO (Thai Nguyen) consisted of 12 areas (unit members) Cast Iron Making Factory have 681 employees, Luu Xa Steel Marking Factory 1 has 743 employees, Luu Xa Steel Rolling Factory has 412 employees, Thai Nguyen Steel Rolling Factory has 291 employees, Coking Plant has 529 employees, Energy Enterprise has 220 employees, Railway Transport Enterprise has 183 employees, Phan Me Coal Minehas 690 employees, Trai Cau iron one mine has 204 employees, Tien Bo iron one mine has 242 employees, Company offices has 282 employees and Service center has 12 employees The researcher will collect data in all of area in Thai Nguyen
Step 2: At the 12 selected areas (unit number), the researcher used simple randomsampling technique to select the objects
Step 3: At the each cluster the sample size for the employees was calculated by using the formula of Cochran (1977)
Trang 6Table 1 Distribution of Respondents per Unit of TISCO, Thai Nguyen, Vietnam
Data Collection and Instruments
Data Collection
Employees in TISCO include 2 groups There are direction employees and Indirection employees Direction employees are direction product goods; Indirection employees are professionals, engineers, civil affairs, technicians, clerical staff, service staff, storekeepers trading, market surveillance, security guards Therefore, researcher will conduct data collection
in 12 unit members with employees in two groups The data was collected only by the researcher
at workplaces on every day from 10 AM to 12 AM and 1.00 PM to 2.00 PM
Instruments
Questionnaires include 2 parts;
Job satisfaction, Nature of work,
Trang 7Salary, Opportunity for advancement, Supervisors,
Co-Workers, Working Conditions,
Financial Rewards
Each item of all questionnaires will be rated on 5-points Likert scale of strongly disagree, disagree, moderate, agree, and strongly agree Responddents filled in the 5- likert scale to assess their job satisfaction and its factors
Table 1 The 5- Likert scale
Data processing and data analysis
The collected data were coded in the SPSS software program Standard editing and coding procedure will be utilized
The statistical methods utilized in this study for analyzing the collected data were reliability analysis, descriptive statistics, test scale of reliability and standard multiple regression analysis
Cronbach’s alpha is used to test reliability of variables, if the group of factors that have Cronbach alpha coefficient is greater than 0.6, sample meet the requirements of scale In addition, variable correlation coefficient of variations (Item-Total Correlation) is greater than 0.3
Descriptive statistics was used to analyze mean, frequency, range of variables
Exploratory Factor Analysis was used to uncover the underlying structure of a relatively large set of variables
Factor analysis is used to handle with many dimensions variables
Correlation matrix is used to measure correlation coefficient of variables, if the significant level of the variable is higher than 0.5, the correlation is strong and vice versa
Trang 8Regression model is used to define effect of each independent variable with dependent variable Regression model will be used to identify factors that influence employee’s job satisfaction
Testing of research hypothesis
ANOVA analysis (for variable that has 4 dimensions) and T-test analysis (for variable
that has 2 dimensions) are used to test the differences between variables If the significant level
of the variable is higher than 0.05, there is no different between variables and vice versa
Findings
Description of participants’ characteristics
The result showed that the majority of participant is male (56.1 %) and there is 43.9 % of
female A half of participant’s age (47.7 %) fall between 26-35 and mean score is 30.15 (SD =
7.44), range of 36-45 accounted for 31.9%và range of 45-60 accounted for 6.3% Almost of participants had completed graduate level (46.9 %), technical worker accounted for 25.6%, college workers accounted for 22.6%, unskilled worker accounted for 4,9% About 83.4 % of workers are married and about 16.6 % of participant is single The majority of samples (71.7 %) earned 3,000,000 - 5,000,000 VND The majority of samples have seniority more than 16 years, accounted for 31.3 % About 29.4 % và 26.2 % of sample have 11-15 years and 6-10 year seniority
Descriptive statistics of employees
Descriptive statistics of general employees (n = 367)
According to results of descriptive statistics by Likert scale of “job satisfaction”, majority
of employees evaluated in moderate and high level However, the second subscale “In general, you satisfy with your income” have lowest score compared with other subscale (mean score= 3.376), specificially, there are 194 employees who chose “Agree” and “Strongly agree”, accounted for 52.9%
Descriptive statistics of direct employees (n = 290)
According to results of descriptive statistics by Likert scale of “job satisfaction”, majority
of direct employees evaluated in moderate and high level However, the second subscale “In general, you satisfy with your income” have lowest score compared with other subscale (mean score= 3.141), specificially, there are 123 employees who chose “Agree” and “Strongly agree”, accounted for42.3%
Descriptive statistics of Indirect employees (n = 77)
Trang 9According to results of descriptive statistics by Likert scale of “job satisfaction”, majority of Indirection employees evaluated in moderate and high level However, the second subscale “In general, you satisfy with your income” have lowest score compared with other subscale (mean score= 4.259), specificially, there are 71 employees who chose “Agree”, accounted for 92.2%
Descriptive statistics of Influecing factors
Descriptive statistics of “Supervisors”factor
According to results of descriptive statistics by Likert scale of “Supervisors”, all 4 subscales were evaluated in moderate level However, the subscale “you receive equally treatment from supervisor” have the highest score compared with other subscale (mean score = 3.76)
Descriptive statistics of “Co-worker” factor
According to results of descriptive statistics by Likert scale of “Co-worker”, all of 4 subscales were evaluated in moderate level However, the subscale “Your co-worker is reliable” have the lowest score compared with other subscale (mean score= 3.34)
Descriptive statistics of “Working condition” factor
According to results of descriptive statistics by Likert scale of “Working condition”, all
of 3 subscales were evaluated in moderate level However, the subscale “You are satisfy with the work-time” have the highest score compared with other subscale (mean score= 3.68)
Descriptive statistics of “Financial reward” factor
According to results of descriptive statistics by Likert scale of “Financial reward”, all of
3 subscales were evaluated in low level However, the subscale “Welfare policy of the company expressed the consideration of company to employees” have the highest score compared with other subscale (mean score= 2.16)
Descriptive statistics of “Opportunity for advancement” factor
According to results of descriptive statistics by Likert scale of ““Opportunity for advancement”, all of 5 subscales were evaluated in moderate level However, the subscale
“Company has a fair policy to train employees” have the highest score compared with other subscale (mean score= 3.48), specificially, there are 303 employees who chose “Agree” and
“Strongly agree”, accounted for82.5%
Descriptive statistics of “Salary” factor
According to results of descriptive statistics by Likert scale of “salary”, all of 5 subscales were evaluated in moderate level However, the subscale “The company allowance is reasonable” have the highest score compared with other subscale (mean score= 3.38)
Trang 10Descriptive statistics of “Nature of work” factor
According to results of descriptive statistics by Likert scale of “Nature of work”, majority
of employees evaluated in moderate and high level However, the subcale “your job is comfortable” have lowest score compared with other subscale (mean score= 3.12)
Results of multiple regression analysis
Results of multiple regression analysis for general employees (n = 367)
The multiple regression analysisdeterminated that job satisfication of general employees
at Thai Nguyen Iron and Steel Corporation include 7 factors: Opportunity for advancement β = .118; Financial reward: β = 101; Supervisors: β =.144; Working conditions: β =.206; Co-worker
β = 162; Salary: β =.143; Nature of work β =.147
So: Working condition was best predictor of job satisfication of general employees Working condition (β’=0 206)
Results of multiple regression analysis for direct employees (n = 290)
The multiple regression analysisdeterminated that job satisfication of direct employees at Thai Nguyen Iron and Steel Corporation include 7 factors: Opportunity for advancement β = .131; Financial reward: β = 140; Supervisors: β = 144; Working condition: β =.172; Co-workers
β = 107; Salary: β = 167; Nature of work β = 150
JS = 0.131*OFA + 0.140*FR + 0.144*SU + 0 172*WC + 0.107*CoW + 0.167*SA + 0.150*NW
So: Working condition was best predictor of job satisfication of direct employees Working condition β = 172
Results of multiple regression analysis for indirect employees (n =77)
The multiple regression analysisdeterminated that job satisfication of indirect employeessat Thai Nguyen Iron and Steel Corporation include 7 factors: Opportunity for advancement β = 213; Financial reward: β = 175; Supervisors: β = 106; Working condition: β
=.105; Co-workers β = 129; Salary: β = 201; Nature of work β =.171
JS = 0 213*OFA + 0.175*FR + 0.106*SU + 0.105 *WC + 0.129*CoW + 0.201*SA + 0.171*NW
So: Opportunity for advancement was best predictor of job satisfication of indirect employees Opportunity for advancement β = 213