Research about job satisfaction relative to expectations of BIDV joint stock commercial bank for invement and development of vietnam

To find out the level of satisfaction of banking industry employees for their business and their business is empowering and help banks have a basis to assess the value of their HR polici

Development of Vietnam)

ADVISOR’S NAME & TITLE : DBA.NGUYEN THE KHAI

March 2017

Advisor’s assessment

Advisor’s signature

Assurance

I hereby pledge to the paper "Assessment of Job Satisfaction of Employees

in BIDV" is my own research The figures in this topic are collected and used honestly The results of the study presented in this dissertation are not copied by any dissertation and any text and has not been presented or published in any other research before

Thank you

First of all, I would like to send my sincere thanks to the teachers of the University of Technology, who have taught me and taught me the precious knowledge that underlies this thesis I would like to thank Dr Nguyen The Khai, who has guided me and instructed me to complete my dissertation research I also sincerely thank all colleagues at BIDV for helping me answer the survey questionnaire as a source of data for analysis and results of this thesis Finally, this dissertation is completed with the support and help of friends and family members

I would like to thank everyone!

Contents

Abstract 1

I BIDV INTRODUCTION 3

1.1 About company 3

Scope of business 3

Position 4

Human resources 4

Customers base 5

1.2 Organizing 5

1.3 Research problem 10

1.4 Research Object 11

1.5 Research scope 11

1.6 Signification 12

II THE RATIONALE AND PRACTICE OF EMPLOYEE SATISFACTION RESEARCH 14

2.1 Satisfaction 14

2.2 Employee satisfaction of the business 15

2.3 Research methods on satisfaction 17

2.3.1 Research by Foreman Facts 17

2.3.2 Research by Weiss, Dawis, England & Lofquist 17

2.3.3 Research by Smith et al 18

2.3.4 Schemerhon's study 18

2.3.5 Spector's research 18

2.3.6 Comparison of research models 19

2.4 Overview of satisfaction of works and factors affecting work satisfaction 20

2.4.1 Herzberg's Two-Factor Theory (1959) 20

2.4.2 Abraham Maslow's Theory of Needs (1943) 21

2.4.3 Like Maslow's hierarchy of needs theory 21

2.4.4 Victor Vroom's Expectancy Theory (1964) 21

III METHODS RESEARCH 22

3.1 Data collection 22

3.2 Models and discussion studies on satisfaction of employees 26

3.2.1 Recommended research model 26

3.2.2 The hypothesis of the research model proposed 32

3.2.3 Data collection progress 34

IV RESULT 35

4.1 Scale rating by Cronbach Alpha 35

4.2 Exploratory factor analysis – EFA 36

V CONCLUSIONS 41

5.1 Discussion 41

5.2 Restructuring of research and forecast recommendation 44

REFERENCES 46

Abstract

It can be said, at present, one of the competitive elements between These businesses are the policy to attract talent Bring about Satisfaction for employees becomes more urgent than ever by it Also for the important purpose in the present context is to keep staff To find out the level of satisfaction of banking industry employees for their business and their business is empowering and help banks have

a basis to assess the value of their HR policies and corporate image for Labor market

For BIDV - a bank focused on exploiting strengths in the human element - satisfying both internal and external customers is considered one of the key tasks in the context of fierce competition

The open market economy has opened up more and more employment opportunities for foreign workers to enter the country In addition, there are many challenges in human resources such as shortage of middle and high level labor force, labor quality, competitive salary and wage scandal scandal scandal Human resources are an important factor for the success of a business, because, according

to experts, competitors can "clone" their strategies, business practices, products and services "Copy" is However, the current recession has led to shrinking revenue, shrinking markets, resulting in many human resources problems.:

The rate of brain drain, jumping high: Job hopping is increasing (10-13% per year

Strike labor increased, resulting in many consequences such as: Manufacturing stagnation does not reach the plan, reputable business damage

Productivity and performance decrease: The cause may be due to a lack of confidence in the company's new policy, organizational change, employees feeling insecure about their future

In the era of economic integration, the competitiveness is increasingly fierce, human resources play an important role in creating competitive advantage Especially with the development companies like BIDV, want to confirm their position in the market, the more attention must be paid to the satisfaction of employees Therefore, this research was conducted to "Study the satisfaction of employees at BIDV" The research results will help the company to have a scientific basis for the development and implementation of appropriate human resource policies, to overcome difficulties in the current workforce, improve the economy with banks in the region and in the world

I BIDV INTRODUCTION

1.1 About company

Company introduction

BIDV was established on 26 April 1957 as the Bank for Construction of

Vietnam From 1981 to 1990, it changed its name to the Bank for Investment and Construction of Vietnam In 1990 the bank adopted new name as Bank for

Investment and Development Vietnam and had operated under this name until 2012

Since April 27th 2012 to present, it officially has become Joint Stock Commercial Bank for Investment and Delopment of Vietnam

Addess of head office:

BIDV Tower, No 35 Hang Voi Street, Hoan

loans, trade finance, payment and account services, and card services and among others

Insurance: BIDV provides life and non-life insurance product bundles, tailored to the needs of individual customers

Securities: BIDV provides a wide range of brokerage services, investment consultancy with the ability of quickly developing a system of order receiving agents nationwide

Financial investment: BIDV contributes capital to establish companies for investment in key national projects and takes the lead in a number of significant projects such as Vietnam Aircraft Leasing Company

Position

BIDV is always at the forefront of implementing major economic and monetary policies of the Government and the State Bank of Vietnam BIDV’s total assets, outstanding loans and deposits in 2015 were higher than those of key competitors, making it the leading bank among commercial banks

Human resources

With 24,000 officers, employees and financial consultants who are qualified and well-trained with full experience and have been accumulated and

well-transferred for over half of a century, BIDV always brings its customers the benefits and reliability

Customers base

Corporates: BIDV has established relations with nearly 200,000 corporate customers including groups, corporations, and small and medium-sized enterprises from all economic sectors

Financial institutions: BIDV has established correspondent relationships with nearly 1,700 financial institutions both local and international The bank is the trusted choice of major international organisations including the World Bank, ADB, JBIC and NIB

Individuals: 7.7 million individual customers currently use products and services of BIDV

1.2 Organizing

Organization Structure

BIDV Organization chart

Organization chart of Head

Headquarters are categorized into 7 functional blocks: Block wholesale banking; Retail banks and networks; Block Capital Capital; Blocks of risk management; Operational block; Bloc Bloc Finance and Accounting support At branches are arranged into five blocks: Block customer relationship; Blocks of risk management; Operational block; Block internal management and Subsidiaries New organizational model works well as an important platform for the Bank

towards becoming a modern retail banking

Along with the restructuring of the organizational structure, the management system has also been continuously strengthened, enhanced, consistent with organizational models and new development requirements Bank for Investment and Development has developed and perfected institutional development plans, issued the basic full text systems business, create uniform legal framework for banking activities according to the law, in line with standards and international practices

HUMAN RESOURCE

With more than 18,000 officers, employees and financial consultants who are well-qualified and well-trained with full experience and have been accumulated and transferred for over half of a century, BIDV always brings its customers the benefits and reliability

In particular, there are 300 staffs with full training according requirement of business and operation at Card Centre With strong and skillful manpower of

BIDV, it enhances competitiveness with leading banks and foreign banks in Vietnam

Continue to promote the values of corporate culture, especially the Ministry issued two standards of professional ethics and code of conduct was issued in 2009, the common practice in the entire system In the spirit of the core of the Bank's standards of conduct HONESTY - FRIENDLY - ADVANCED, or 6 "golden letters" in dealing with customers is: FRIENDLY - HEARTED - ADVANCED, so far, the Bank has 1.8 thousand highly qualified staff who have the qualifications, skills and high professionalism

Together, recruitment, staff rotation to training combines risk management; activity test, internal monitoring also contribute to the Bank has a highly qualified staff of top quality banking and financial markets at present

Focus focus on improving the quality of assets and human resources BIDV always identified as an important task, is the determining factor to promote the value of internal resources, decisions on quality, sustainable efficiency BIDV's operations

Management model and corporate governance systems and institutions are the World Bank international consultants implementation consultants such as governance capacity building strategic management; Credit management; Enhance operational risk management oriented Basel 2

BIDV always adequate attention to material life, the spirit of the employees Besides the continued fostering of core staff for the sector, training and retraining

of staff, BIDV has constantly recruiting young workforce with the knowledge and skills to meet the requirements of integration The system has executed an employment policy is relatively uniform, worthy remuneration and performance capabilities of each individual to create an environment at the same time working with the cultural competition, encourage creativity is a member of the

1.3 Research problem

Systematize reasoning about employee satisfaction

Establish a model for assessing the satisfaction of banking staff

Understand the factors that affect employee satisfaction and assess the current status of employee satisfaction From there, we propose solutions to enhance the efficiency of banking management in the coming time

The objective of the survey was to develop a database of employee comments, study factors and aspects that affect the satisfaction of all employees, or

of a group of employees with the business As a business trainer, management levels are responsible for increasing the level of employee satisfaction The first step in increasing employee satisfaction is to survey the current situation

• Relationships in the workplace

• Tools and systems encourage employees

• Engagement with business

• Communication and feedback system

+ Primary data: Collected through live interviews of staff working at the departments

- Content: Study on factors affecting employee satisfaction On

This basis, propose solutions to improve employee satisfaction with BIDV

1.6 Signification

Complete the assessment of employee satisfaction

Contribute to enrich the company's harmony assessment system as well as the basis for other banks to refer to the improvement of human resource management

As a result of the employee satisfaction survey, employees can understand more about employee or employee feedback as well as their contributions Also through these feedbacks, new perspectives are shared that may play an important role in enhancing competitiveness or fostering business growth In addition, the employee satisfaction survey identifies aspects of business that need to be revised and the direction of change, as well as helps the executive make the decision regarding the business Finally, surveys also help you build strong connections with your employees, retain good employees, and attract talented people

Enhance your business competitiveness based on the efforts of highly committed and dedicated employees

Employees who are satisfied with the job will have a high productivity, indirectly increase profits for the business

If a business does not care about internal satisfaction, it will be less competitive than the competitor's investment in activities to increase employee satisfaction

Benefit from a satisfied staff

• Commitment, loyalty

• Increase personal productivity

• Increase the productivity of the whole organization

• Increase motivation to work

• Word of mouth advertising for businesses

Challenge from an unhappy employee

• Productivity is not stable

• Cause disputes

• Affecting corporate reputation

• Reduce motivation and work results

• Reduce company spirit

II THE RATIONALE AND PRACTICE OF

EMPLOYEE SATISFACTION RESEARCH

2.1 Satisfaction

There are different concepts of satisfaction:

Satisfaction is the degree to which a person's sense of state is derived from comparing the results obtained from reality with those expectations (Philip Kotler 2001)

Satisfaction is the human response to estimating the difference between previous expectations and perceived reality (Tse and Wilton 1988)

According to Miller (1977), consumer satisfaction is the result of the effects

of expected levels of anticipation and actual assessments From an analysis point of view this is achieved by the formula:

When reality gets higher than expected then people are satisfied,

Conversely when the actual received is lower than expected, people feel dissatisfied

According to Vroom (1964), job satisfaction is a state in which workers are clearly oriented towards organizational work

Wexley and Yukl (1984) define job satisfaction as the way an employee perceives his or her occupation

According to Spetor (1997), job satisfaction is simply how people feel like their work and work aspects

The definition of satisfaction relates to job components

According to Smith, Kendal and Huilin (1969), satisfaction with the components or aspects of work is the attitude and influence of the employee on different aspects of the job (job nature, opportunity Training and promotion, leadership, colleagues, their salary)

2.2 Employee satisfaction of the business

Satisfaction is the satisfaction of need, desire, expectation The needs, wants, expectations are the driving force for human performance Kusku (2003) states that: Employee satisfaction reflects the degree to which individual needs and expectations are met and perceived by other individuals Employee Satisfaction with Businesses expressed in the job is the employee's preference or dislike for the job, which represents the employee's acceptance and satisfaction with the results they receive Was when doing the job And most clearly expressed through their engagement and loyalty to the business When assessing satisfaction one not only considers workers' reactions on aspects that directly affect workers without regard

to the results of employee satisfaction

There are a number of factors that affect the level of employee satisfaction for a business and each of the factors influencing employees may vary depending

on the motivation, expectations, expectations of each person There are a lot of

theories out there about which motives are more important or more influential for employees in a business, such as Maslow's theory of demand and the two-factor theory of F.Herzberg

In short: Satisfaction is the fulfillment of the needs and desires of the people

in the work environment When the desired needs are met adequately, the satisfaction of the workers is increased Factors that affect employee satisfaction with the business There are a number of factors that affect the level of employee satisfaction in a company, such as: the nature of the work, remuneration and welfare, promotion, corporate environmental, safety, health However, due to the research scope of the topic, in order to facilitate the analysis, I only analyze the four factors: work, training, training and promotion, wages and benefits Enlightenment, working environment, sense of attachment with the business

Weiss's (1967) definition of satisfaction is broader and more inclusive: Job satisfaction is the attitude of work expressed by the worker's feelings, beliefs and behaviors

Definition of satisfaction with job components Smith, Kendal and Huilin (1969), Schemerhon (1993), Kreitner and Kinicki (2007) satisfaction with components such as job characteristics, opportunities

Training and promotion, leadership, co-workers, salary, public relations,Work, treatment, and rewards

In short, employee satisfaction in the workplace is when they have a sense of pleasure, comfort, and a positive response to their work aspects

2.3 Research methods on satisfaction

2.3.1 Research by Foreman Facts

According to the approach of Foreman Facts (1946) the satisfaction The staff involved ten factors: (1) ingenious discipline, (2) Empathy to individual worker issues, (3) Work Interesting, (4) Being interacted and shared at work, (5)

TB safety (6) Working conditions, (7) Salary, (8) Fully assessed The work done, (9) personal loyalty to the superior, (10) Advancement and career development

2.3.2 Research by Weiss, Dawis, England & Lofquist

Weiss, Dawis, England & Lofquist (1967) built the tissue The Minnesota Satisfaction Questionnaire (MSQ) consists of 20 items With 20 factors) evaluates the overall level of satisfaction in each aspect:

(1) the ability to use (the opportunity to do something that can promote the ability of workers); (2) Achievement (feeling of good accomplishment that the employee gains from the job); (3)Active (can maintain busy for most of the time); (4) promotion (promotion opportunities in this work); (5) Rights Term (opportunity

to tell others what to do); (6) Policy Company (how the company sets policies and put into practice); (7) Compensation (salary and a large amount of work done); (8) Colleagues (how colleagues show up to others); Creativity (the opportunity to try individual approaches to his work); (10) independence (opportunity to work alone

in work); (11) Safety (stability of work); (12) social services (the opportunity to do

something for others); (13) Social position (Opportunity to become "someone" in the community); (14) moral value (can do things that are not contrary to conscience); (15) recognition (praise when doing a good job); (16) Liability (freedom of use of opinions); (17) Supervision - human (how executives lead the staff); (18) Technical supervision (decision-making ability of leaders); (19) Diversity (opportunity To do different things); (20) working conditions

2.3.3 Research by Smith et al

The Job Descriptive Index (JDI), set up by Smith et al in 1969, is one of the most valued and credible scales in both theory and practice This scale consists of five elements:(1) the nature of work, (2) opportunities for promotion, (3) leadership, (4) colleague, (5) salary Later on, Crossman and Bassem (2003) added two more components, welfare and working environment

2.3.4 Schemerhon's study

Schemerhon (1993) outlines eight factors that affect employee satisfaction, including: (1) job placement, (2) supervisory level, (3) Relationship with colleagues, (4) Job content, (5) Treatment, (6)Advancement, (7) physical condition of working environment, (8) organizational structure

2.3.5 Spector's research

The Spector (1997) Job Satisfaction Survey (JSS) model was developed for use in service businesses, including nine factors that measure satisfaction and attitudes: (1) salary, (2) promotion opportunities, (3) working conditions, (4) supervision, (5) coworkers, (6) job favorites, (8) surprise reward, (9) benefits

2.3.6 Comparison of research models

Weiss's model with colleagues and Foreman Facts is more detailed, but the weakness is too long Schemerhon and Spector proposed more neat models, but if applied to practical research also need to be adjusted accordingly The Smith et al Model of JDI does not yet outline the factors that affect satisfaction and does not have an overall scale, but on the basis of this model there has been a great deal of research for the results to be evaluated High in value and reliability Later, when the authors Crossman and Bassem added two factors that made the model more complete

In Vietnam, the JDI model is also used by many authors as a basis for employee satisfaction research, such as Tran Thi Kim Dung (2005) in the topic

"Demand, Tablet and degree of engagement with the organization, "used a factor scale; Vu Khac Dat (2009) measured the satisfaction of office workers of Vietnam Airline in the South using a six-factor scale; Nguyen Tran Thanh Binh (2009) carried out the employee satisfaction survey at Long An Mechanical Machinery Joint Stock Company using a six-factor scale

seven-In addition, some of the authors' work has shown that employee satisfaction

in work is different due to the six factors of individual characteristics such as age, gender, education level Seniority, position, department, income

2.4 Overview of satisfaction of works and factors

affecting work satisfaction

Definition of general satisfaction in work According to Vroom (1964), job satisfaction is a state in which workers are effectively oriented towards work in the organization Wexley and Yukl (1984) define job satisfaction as the way an employee perceives his or her occupation According to Spetor (1997), job satisfaction is simply how people feel like their work and work aspects Definition

of Job-Related Satisfaction According to Smith, Kendal and Huilin (1969), satisfaction with the components or aspects of work is the attitudes and perceptions

of employees in terms of Different aspects of the job (nature of work, opportunities for training and advancement, leadership, colleagues, wages)

2.4.1 Herzberg's Two-Factor Theory (1959)

This theory divides factors into two categories: motivational factors and maintenance factors Motivational factors include achievement, recognition by others, job nature, job responsibilities, promotion and progress, and the prospects of development Maintaining factors include Company policy, superiors' supervision,