Research about career commitment at saigon securities inc

ABSTRACT The purpose of this research is to determine the relationship between variables in the model such as Performance Appraisal System Knowledge, Empowerment at Work Scale, Procedura

RESEARCH PROJECT

(BMBR5103)

RESEARCH ABOUT CAREER COMMITMENT

AT SAIGON SECURITIES INC

ADVISOR’S SIGNATURE

NGUYEN THE KHAI (DBA)

The first word I would like to express my deepest gratitude to Dr KHAI NGUYEN (DBA), who instructed, gave me a chance and inspired me to do this research I also would like to express my thanks to my colleagues who helped me with very useful information to do this assignment Thanks all employees of Sai Gon Securities Inc for their precious comments and helps to collect data for this research

After studying at Hutech I have gained a lot of valuable knowledge from the teacher to be able to complete this topic I would like to thank administrators, the teachers directly teach, mentor and impart to you is professional knowledge while studying in the school

And, I also specially thank to my members of family, friends and colleagues always mobilize me to finish this research

Thank you very much

Hoang Manh Hung Student

ABSTRACT 1

PART 1 INTRODUCTION 2

About Sai Gon Securities Inc 2

Research problem statement 10

Research objectives 11

Scope of research 11

Significance of research 12

Limitation of research 13

PART 2: LITERATURE REVIEW 13

Definition of Constructs 13

Argument for the relationship among the constructs 21

Previous Researches on career satisfaction 28

Research Hypotheses and Research Model 30

PART 3: METHODS 31

Data collection 31

Data collection progress 37

Data analysis 37

PART 4: ANALYSIS AND RESULTS 38

Cronbach’s Alpha 38

Descriptive information 40

Hypotheses testing 42

PART 5: CONCLUSIONS 44

Discussion 44

Limitation of research 45

Forecast recommendation 45

REFERENCES 47

APPENDIX 49

Appendix 1: Survey 49

Appendix 2: Presentation 55

Figure 1: Hackman and Oldham's Job Characteristics 22

Figure 2: McClelland’s theory 23

Figure 3: Maslow’s theory 24

Figure 4: Alderfer’s ERG theory 26

Figure 5: Herzberg’s two-factor theory 27

Figure 6: Research model of Career commitment 31

TABLE Table 1: Career commitment Scale 32

Table 2: Work-Related Depression, Anxiety and Irritation 33

Table 3: Performance Appraisal System Knowledge 34

Table 4: Empowerment at Work Scale 35

Table 5: Procedural Fairness 36

Table 6 : Time table for data collection progress 37

Table 7 : Cronbach’s Alpha - Internal Consistency 38

Table 8: Cronbach’s Alpha of Career commitment 39

Table 9: Cronbach’s Alpha of Work-Related Depression, Anxiety and Irritation 39

Table 10: Cronbach’s Alpha of Performance Appraisal System Knowledge 39

Table 11: Cronbach’s Alpha of Empowerment at Work Scale 40

Table 12: Cronbach’s Alpha of Procedural Fairness 40

Table 13: Descriptive Statistics 41

Table 14: Correlation statistics 42

Table 15: Model Summary 42

Table 16: Coefficients 42

ABSTRACT

The purpose of this research is to determine the relationship between variables in the model such as Performance Appraisal System Knowledge, Empowerment at Work Scale, Procedural Fairness, Work-Related Depression, Anxiety and Irritation with Career commitment The research result was conducted in Sai Gon Securities Inc with 288 employees

And SPSS software version 22 (copyright of IBM) is a tool that is used to analysis data in this research The collected data were analyzed through

factor analysis, Cronbach’s alpha, descriptive statistics, correlation, and multiple

regression analysis The research showed that there are four factors influencing Career commitment are Performance Appraisal System Knowledge, Empowerment at Work Scale, Procedural Fairness, Work-Related Depression, Anxiety and Irritation Moreover, the research provides some recommendations implications for managers to raise the level of satisfaction with work of the employees

Key word: Performance Appraisal System Knowledge (PAS), Empowerment at Work Scale (EWS), Procedural Fairness (PF), Work-Related Depression, Anxiety and Irritation (WAI), Career commitment (CC)

PART 1 INTRODUCTION

About Sai Gon Securities Inc

Saigon Securities Inc (SSI) is a leading and reputable financial corporation in Vietnamese market With a sound financial potential, a large and professional employees of the company, SSI always provides to all its customers the outstanding level of products and services and maximizing shareholders' interest SSI has an extensive branch network in Vietnam at major cities such as Hanoi,

Ho Chi Minh City, Nha Trang, Vung Tau

With a wide range of international standardized products and services for institutional, individual, domestic and foreign customers SSI has gained credibility not only from local but also from global clients and partners Some outstanding clients from SSI are Morgan Stanley, HSBC, Vinamilk, Hoang Anh

Gia Lai, Vietnam National Petrolium Group Petrolimex, Credit Suisse, BIDV, ANZ, C.T Group, Prudential VN, Deutsche Bank

 2002: SSI established its branch in Hanoi, expanding its networks to Northern areas

 2005: SSI raised chartered capital to VND 52,000,000,000 with 6 services, Successful IPO advisor of VSH (Vinh Son – Song Hinh

Hydropower JSC) – It was the first hydropower company which IPO in

Vietnam Stock Market It was also the first IPO with repo service

 2006: Chartered capital was raised to VND 300 billion, becoming the largest capitalized securities firm on Vietnam stock market at the time

 2007: SSI was officially listed on Hochiminh Stock Exchange, Chartered capital reached VND 799,999,170,000

 2008: Successfully ran the largest stock issuance in 2008 for Hoang Anh Gia Lai JSC (HAG), Chartered capital reached 1,366,666,710,000 VND

 2009: SSI Asset Management (SSIAM) and Daiwa SMBC Capital signed the establishment agreement and jointly managed DSCAP - SSIAM

Vietnam Growth Investment Fund LLC - the only foreign onshore fund in Vietnam till now SSI was awarded the ―Best Broker in Vietnam‖ and the

―Best Equity House in Vietnam‖ These awards were presented by the

famous FinanceAsia for the second consecutive year

 2010: Chartered capital reached 3,511,117,420.000 VND, successfully advised the first tender offer in Vietnam Securities Market between Hung Vuong Fisheries JSC (HVG) and An Giang Fisheries Import & Export JSC (AGF)

 2011: SSI was honored to receive the Third Labor Medal for outstanding achievements in construction and development the stock market in the period of 2000 – 2010

 2013: Top 500 Vietnamese Largest Private Enterprises (VNR500)

 2014: Top 50 Best Vietnamese Listed Companies 2014 (Forbes)

 2015: Received certificates of Prime Minister, People's Committee of Ho Chi Minh City

1.2 Vision – Mission – Core values:

The Business of Success

SSI operates based on the vision ―The Business of Success‖

At the heart of all their products and services is a drive for achieving success They help unlock opportunities in financial markets, and turn these into prosperity and growth

Mission: Connecting Capital to Opportunities

SSI’s mission is to connect capital to opportunities

This mission unifies all the businesses under the SSI brand and will guide any future opportunities, which the brand may take on

Core values

Solutions-Led: They are focused on the outcome of making their customers successful, and they prioritize their individual needs over existing products or processes

Skilled: They are experts in their industry and in our markets, and will continually enhance their professional skills to provide the highest standards of service to their customers

Inventive: They empower and encourage their people to find creative new ways

to bring success to SSI and its customers

1.3 Business Units

Saigon Securities Inc (SSI – HOSE) is a leading financial institution that

provides a comprehensive range of products and services, including Securities Services, Investment Banking, Asset Management and Treasury

SECURITIES SERVICES

 Products and Services for enabling investing in listed stocks and mutual

funds including: Opening of trading accounts, brokerage, advisory, cash transactions, securities depository; consultancy and support for OTC transactions, distribution of open-ended fund certificates, and distribution

of certificates of deposit and corporate bond

 Financial services: Margin financing, and cooperation with banks to

support securities trading

 E-trading services: Web Trading, Pro Trading, Mobile Trading, Smart

Trading, Contact Center and SMS

 Research and Advisory: macro reports, investment advisory report, daily

call report, industry research report, company reports, stock valuation reports, money market reports, fund flow reports, technical analysis reports

 Corporate access: company visits to listed/unlisted companies, seminars

to introduce investment opportunities to Vietnam and international investors

INVESTMENT BANKING

 Corporate financing advisory: business evaluation, corporate financing

restructuring, listing and Initial Public Offering (IPO) advisory

 Mergers and Acquisitions (M&A) advisory

 Advisory for capital raising in domestic and international capital market:

stock issuance and underwriting, bond and derivatives issuance via public offering or private placement

TREASURY

 Treasury management including investment and funding activities

through term-deposits trust accounts, bond repos, fixed income instruments and other structured product transactions;

 Bond services including brokerage, auctions and underwriting services

 Providing flexible structured products to optimize advantage in funding

needs as well as investment capital on the market with optimal interest rates and with appropriate maturities

SSI ASSET MANAGEMENT

 Fund Management: capital mobilization and management for onshore and

offshore funds, including fund investing in unlisted companies, mutual fund and ETF

 Portfolio Management: Discretionary and Non-discretionary Portfolio

Management for domestic/international institutions as well as individual customers, corporate clients and Private Wealth management

 Investment Advisory: for institutional and individual, domestic and

foreign customers

 Strategy and asset allocation advisory

1.4 Development Objectives and Strategy

With the goal to maintain its position as the leading financial institution in Vietnam market and reach out to international markets, SSI will strive endlessly for operational innovation as well as product diversification Customers will

always be placed at the center with the Company’s commitment to a long term

partnership and cooperation for mutual development Many technological solutions will be provided to increase the utility for customers and investors SSI will also continue to focus on developing a high quality human resource team to meet the rigorous market demands; create a working environment in which each individual is given opportunities to explore and develop full potentials, contributing the highest value for the Company SSI will continue to tightly control costs and manage risks in order to improve financial performance

SSI believes that the combination of building a reputable brand and operating in

accordance with standards will help maximize shareholders’ value

Objectives and strategy for business operations are set forth as follows:

to improve the quality of online trading products

Expanding the retail distribution network

Coordinating closely with the Asset Management division to provide financial solutions meeting the needs of customers

Investment Banking

Striving to maintain the leading position in the market through:

Providing comprehensive financial solutions to clients

Expanding the network of customers both in the country as well as abroad

Extending cooperation with leading financial institutions in the world

Treasury

Improving the quality of treasury management

Diversifying products to minimize risks while growing the Company’s assets

Strengthening participation in and seeking for investment opportunities in the bond market

Developing derivative products

Investment

Focusing on investments that create competitive added values

Improving investment performance through diversification strategies

Achieving high risk-adjusted returns

Asset Management

Continuing to grow the total assets under management

Diversifying products to meet the various needs of investors

Providing customized financial investment solutions to meet and improve performance for investors

1.5 Organizational structure

Research problem statement

Recently years is the time when companies have more difficulties in business operations Vietnam's economy slowing growth, rising inflation, the real estate crisis affecting the banking system Government creates solutions to control credit more closely, thereby affecting the cash flow to invest in the stock market Investors are also more cautious in putting their money into the stock market, they withdraw money and invest in safer areas such as: gold or savings deposits

During this period, the operations of the securities companies are affected, SSI is also among them The retention of good employees, especially senior management positions is very difficult in the context of the company's revenue decline, the cost of salaries for employees is not stable as before Attractiveness from competing companies or the attractiveness of other industries has strongly influenced employee engagement with the company

Director at Sai Gon Securities Inc realized Career commitment is important factor for SSI develop sustainably their human resource to help organization to operate more efficient, produce quality of products and services, build brand

awareness, customer trust and loyalty… But, some factors such as Performance

Appraisal System Knowledge, Empowerment at Work Scale, Procedural Fairness, Work-Related Depression, Anxiety and Irritation are problems for human resource management at Sai Gon Securities Inc

Research objectives

The objective of this research topic to explore, analyze the factors affecting the career satisfaction of employees working in SSI, simultaneous survey, analyze the comments and evaluation of each employee On that basis make comment on the effectiveness evaluation work at the company as well as providing recommendations and solutions to improve the operational efficiency of the management humman resource at Sai Gon Securities Inc This study focused to research and solves practical problems about Career commitment of employees with SSI Subjects of the study subjects are employee currently working for SSI

My research will focus 3 main factors:

- Firstly: search related information and try to define what meaning Career commitment is of employees at SSI

- Secondly: design research model and test related factors to check influence between factors to access strong / weak level of each factor in influence progress

- Thirdly: discussing and proposing recommendation to improve the effectiveness and forecast the human resources management at SSI in the next time

Scope of research

The purpose of this research is career commitment and factors effect to it Consider perceptions of employees with career and suitability of employees to the organization The study was conducted at three locations are Ho Chi Minh, Vung Tau and Hanoi Branch Office, which include 500 employees of SSI

Contents of this research are only including factors influencing to career commitment at SSI; it does not have intention of re-structuring, changing and replacing the employees

Implementation period is from 1-Jan to 25-Jan 2017 In this study, the I used quantitative methods to survey and assess the career satisfaction of employees based on 5-point scale I used a questionnaire as a tool to collect data and information of the object This questionnaire will be processed the data to make the results of Career Satisfaction based on the scale was constructed The questionnaire is listed in the Appendix section

Significance of research

This research will help us understand and are more aware of the importance of career commitment Since then the organization can establish a plan, policy organizations to improve career commitment That is the most important significance in connecting employees with organization It brings stability development for organization For employees in career commitment shown satisfaction about the psychology of individuals with their career From there they can express themselves, develop skills, develop loyalty to the organization

In addition, it also improves employee loyalty to the organization and further, employees will be loyal to the company, contributed to the financial strength of the companies increasingly stronger in the future

Limitation of research

This research will have some limitation because the limited number of employees participating in the survey Culture of branches in the company are different, leading to the perception of individuals with different career

This research only focuses related contents at SSI and also can be not generalized for securities industry

Besides, the survey respondents are more qualified and different perceptions about Career Satisfaction as well as the contents of survey shall be more grammatical errors because of English - Vietnamese translation progress, it may cause confusion for the reader when they answer

PART 2: LITERATURE REVIEW

Definition of Constructs

Career commitment (CC)

Career commitment is one important parts of organization commitment Therefore, in order to understand the concept of career commitment, we must understand the organization commitment Organization commitment was

defined as the relative strength of an individual’s identification with an

involvement in a particular organization (Porter and Smith, Note 4)

Career commitment can be considered one's attitude towards one's profession or vocation, where career commitment involves the development of personal career goals and an identification with and involvement in those goals, such that one is

willing to exert effort in support of their career, congruent with its values (Blau 1985; Goulet and Singh 2002; Kalleberg and Berg 1987; Porter, Steers, Mowday and Boulian 1974)

To understand the literature of career commitment is necessary to define some

terminology; career commitment had been defined as the strength of one’s

motivation to work in a chosen career role This definition focuses on motivation

and goal’s achievement within a specific career field The definition is based on

Colarelli (1990) and Hall (1971)

Performance Appraisal System Knowledge (PAS)

Performance appraisal may be defined as a structured and formal interaction between a subordinate and supervisor, that usually takes the form of a periodic interview (annual or semiannual), in which the work performance of the subordinate is examined and discussed, with a view to identifying weaknesses and strengths as well as opportunities for improvement and skills development

In many organizations - but not all - appraisal results are used, either directly or indirectly, to help determine reward outcomes That is, the appraisal results are used to identify the better performing employees who should get the majority of available merit pay increases, bonuses, and promotions Employee performance reviews can be one of the best tools to boost performance, improve morale and increase productivity When done properly, performance evaluation is an effective planning tool for managers and provides important feedback to employees

For better performance of the organizations satisfied employees play a vital role Seldon, Ingraham & Jacobson, (2001) reported that more than 90 percent of bigger organizations use performance appraisal system and more than 75 percent are scheduled annually Employee satisfaction is considered a key to organizational success Khan (2007) defines employee satisfaction with job as how well ones personal expectations at work are in line with outcomes Malik, Bibi and Rahim (2010) state that people enjoy working, and strive to work in those organizations that provide positive work environment where they feel they are making difference and where most people in the organization are proficient and pulling together to move the organization forward The organizations in this regard are struggling hard to keep their valued employees satisfied

Performance appraisal is frequently performed in organizations for a variety of purposes, including administrative decisions (e.g., raise, promotion), feedback and development, and personnel research Thus, performance appraisals are among the most important human resource systems in organizations insofar as they represent critical decisions integral to a variety of human resource actions and outcomes (Judge & Ferris, 1993) Because of its prevalence and importance

in organizations, performance appraisal is also one of the most widely researched areas in industrial/organizational psychology (Murphy & Cleveland, 1995)

Of great concern to scientists and practitioners has been the issue of appraisal effectiveness and its measurement Appraisal effectiveness refers to how well

the appraisal system is operating as a tool for the assessment of work performance It is perhaps best regarded as a multidimensional construct or an ultimate criterion (Cascio, 1991) that cannot be directly measured but rather is assessed through the measurement of other subordinate criteria (Cardy & Dobbins, 1994) Cardy and Dobbins suggested that appraisal effectiveness is composed of rater errors, rating accuracy, and qualitative aspects of the appraisal

Procedural Fairness (PF)

Procedural fairness refers to the perception by the individual that a particular activity in which they are a participant is conducted fairly (Lind and Tyler 1988) Factors that contribute to perceptions of procedural fairness include providing the consumer with voice, and control over actual outcomes (Folger and Greenberg 1985, Lind and Tyler 1988) Research has shown that even if outcomes are not favorable to an individual, individuals are less likely to be dissatisfied with unfavorable outcomes if they believe that the procedures used

to derive those outcomes are fair (Lind and Tyler 1988, Greenberg 1987, Folger and Bies 1989)

For consumer marketing, fair information practices operationalize procedural fairness Fair information practices are procedures that provide individuals with control over the disclosure and subsequent use of their personal information They are global standards for the ethical use of personal information and are at the heart of U.S privacy laws, the privacy directive adopted by the European

Union in July 1995, and the Clinton Administration's June 1995 guidelines for personal information use by all National Information Infrastructure participants

Empowerment at Work Scale (EWS)

Empowerment refers to measures designed to increase the degree of autonomy and self-determination in people and in communities in order to enable them to represent their interests in a responsible and self-determined way, acting on their own authority Empowerment as action refers both to the process of self-

empowerment and to professional support of people, which enables them to overcome their sense of powerlessness and lack of influence, and to recognize and use their resources

In the sphere of management and organizational theory, "empowerment" often refers loosely to processes for giving subordinates (or workers generally) greater discretion and resources: distributing control in order to better serve both customers and the interests of employing organizations

During the 1980s and 1990s, empowerment has become a point of interest in management concepts and business administration In this context, empowerment involves approaches that promise greater participation and integration to the employee in order to cope with their tasks as independently as possible and responsibly can A strength-based approach known as

"empowerment circle" has become an instrument of organizational development Multidisciplinary empowerment teams aim for the development of quality circles to improve the organizational culture, strengthening the motivation and

the skills of employees The target of subjective job satisfaction of employees is pursued through flat hierarchies, participation in decisions, opening of creative effort, a positive, appreciative team culture, self-evaluation, taking responsibility (for results), more self-determination and constant further learning The optimal use of existing potential and abilities can supposedly be better reached by satisfied and active workers Here, knowledge management contributes significantly to implement employee participation as a guiding principle, for example through the creation of communities of practice

However, it is important to ensure that the individual employee has the skills to meet their allocated responsibilities and that the company's structure sets up the right incentives for employees to reward their taking responsibilities Otherwise there is a danger of being overwhelmed or even becoming lethargic

Work-Related Depression, Anxiety and Irritation (WAI)

Since the 1990's there is a change at many workplaces in industrialized countries Work related depression emerges as a major cause of long-term sickness The relationship between work and depression is bidirectional: work gives acceptance and self-confidence to the individual but stress at the workplace may precede depression The relationship between work-related stress and depressive disorders is shortly reviewed The underestimated costs of lost productivity by depression are so impressive that better preventional and interventional strategies are necessary to reduce early disability payments and to improve rehabilitation at the workplace

Depression is a state of low mood and aversion to activity that can affect a person's thoughts, behavior, feelings, and sense of well-being People with a depressed mood can feel sad, anxious, empty, hopeless, helpless, worthless, guilty, irritable, angry, ashamed, or restless They may lose interest in activities that were once pleasurable, experience loss of appetite or overeating, have problems concentrating, remembering details or making decisions, experience relationship difficulties and may contemplate, attempt or commit suicide Insomnia, excessive sleeping, fatigue, aches, pains, digestive problems, or reduced energy may also be present

Anxiety disorder describes a group of illnesses such as generalized anxiety disorder, obsessive-compulsive disorder, panic disorder, post-traumatic stress disorder, and phobias, there are some symptoms that characterize the illness as a whole

According to the American Psychiatric Association, when people suffering from anxiety disorders talk about their condition, they often include these descriptions:

o Unrealistic or excessive worry

o Exaggerated startled reactions

o Sleep disturbances

o Jitteriness

o Fatigue

o Dry mouth

o Lump in throat

o Trembling

o Sweating

o Racing or pounding heart

In the workplace, these symptoms could translate into difficulty working with colleagues and clients, trouble concentrating, preoccupation over the fear instead

of focusing on work, and turning down assignments because of fear of failure, flying, going in to the elevator, or public speaking

Irritation is feeling frustrated due to a particular situation—but it is not anger It

leaves you stressed and can leave you with a feeling that you are powerless or undervalued It is a kind of personality conflict that you are dealing with

It is important to overcome this feeling because it will start damaging your personality and can ruin your relationships, concentration, and affect your productivity Moreover, it can even give headaches and back pain

The most obvious cause of irritation is lack of patience while facing or dealing with any particular situation or person or behavior It is agreed that patience is a virtue but it is equally true that it is difficult to be mastered

When facing an unwanted situation, the moment we lose our patience, we become annoyed and cranky

The most obvious outcome of irritation is anger which is surely damaging for your self-development But, do you know, there are people who rarely get irritated or handle the cause of irritation in a very mature way and turn them into

opportunities for self development It’s up to you to decide whether you want

them to make your life hell or help you in your self-development

Argument for the relationship among the constructs

Hackman and Oldham's Job Characteristics

In 1975, Greg R Oldhamand J Richard Hackman constructed the original version of the Job Characteristics Theory (JCT), which is based on earlier work

by Turner and Lawrence and Hackman and Lawler Turner and Lawrence provided a foundation of objective characteristics of jobs in work design Further, Hackman and Lawler indicated the direct effect of job characteristics on employee's work related attitudes and behaviors and, more importantly, the individual differences in need for development, which is called Growth Need Strength in Job Characteristics Theory In 1980, Hackman and Oldham presented the final form of the Job Characteristics Theory in their book Work Redesign The main changes included the addition of two more moderators - Knowledge and Skill and Context Satisfaction, removal of the work outcomes of absenteeism and turnover, and increased focus on Internal Work Motivation Several of the outcome variables were removed or renamed as well Concentration was shifted to the affective outcomes following results from empirical studies that showed weak support for the relationship between the psychological states and behavioral outcomes

In addition to the theory, Oldham and Hackman also created two instruments, the Job Diagnostic Survey (JDS) and the Job Rating Form (JRF), for assessing constructs of the theory The JDS directly measures jobholders' perceptions of the five core job characteristics, their experienced psychological states, their Growth Need Strength, and outcomes The JRF was designed to obtain the assessments from external observers, such as supervisors or researchers, of the core job characteristics

Figure 1: Hackman and Oldham's Job Characteristics (Source: edweb.sdsu.edu/people/arossett/pie/Interventions/jobdesign_1.htm)

McClelland’s theory of Human Motivation

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

Figure 2: McClelland’s theory

(Source: www.bms.co.in/explain-the-mcclellands-theory-of-need-achievement)

Maslow’s theory

Maslow's hierarchy of needs is a theory in psychology proposed by Abraham

Maslow in his 1943 paper ―A Theory of Human Motivation" in Psychological Review‖ Maslow subsequently extended the idea to include his observations of

humans' innate curiosity His theories parallel many other theories of human developmental psychology, some of which focus on describing the stages of growth in humans Maslow used the terms ―physiological‖, ―safety‖,

―belongingness‖ and ―love‖, ―esteem‖, actualization‖ and

―self-transcendence‖ to describe the pattern that human motivations generally move

through Maslow studied what he called exemplary people such as Albert Einstein, Jane Addams, Eleanor Roosevelt, and Frederick Douglass rather than

mentally ill or neurotic people, writing that ―the study of crippled, stunted,

immature, and unhealthy specimens can yield only a cripple psychology and a

cripple philosophy‖ Maslow studied the healthiest 1% of the college student

population Maslow's theory was fully expressed in his 1954 book Motivation and Personality The hierarchy remains a very popular framework in sociology research, management training and secondary and higher psychology instruction

Figure 3: Maslow’s theory

(Source: http://what-is-the-meaning-and-purpose-of-life.com/hierarchy-of-needs)

Alderfer’s ERG theory

Clayton Paul Alderfer (born September 1, 1940 in Sellersville, Pennsylvania) is

an American psychologist who further developed Maslow's hierarchy of needs

by categorizing the hierarchy into his ERG theory (Existence, Relatedness and Growth) The existence group is concerned with providing the basic material existence requirements of humans They include the items that Maslow considered to be physiological and safety needs

The second group of needs is those of relatedness - the desire people have for maintaining important interpersonal relationships These social and status desires require interaction with others if they are to be satisfied, and they align with Maslow's social need and the external component of Maslow's esteem classification Finally, Alderfer isolates growth needs: an intrinsic desire for personal development These include the intrinsic component from Maslow's esteem category and the characteristics included under self-actualization

Alderfer categorized the lower order needs (Physiological and Safety) into the Existence category He fit Maslow's interpersonal love and esteems needs into the Relatedness category The Growth category contained the self-actualization and self-esteem needs Alderfer also proposed a regression theory to go along with the ERG theory He said that when needs in a higher category are not met then individuals redouble the efforts invested in a lower category need For example if self-actualization or self-esteem is not met then individuals will

invest more effort in the relatedness category in the hopes of achieving the higher need

Figure 4: Alderfer’s ERG theory

(

Source:http://www.shareyouressays.com/102853/3-basic-needs-based-on-erg-theoryexplained)

Herzberg’s two-factor theory

The two-factor theory (also known as Herzberg's motivation-hygiene theory and dual-factor theory) states that there are certain factors in the workplace that cause job satisfaction, while a separate set of factors cause dissatisfaction It was developed by psychologist Frederick Herzberg, who theorized that job satisfaction and job dissatisfaction act independently of each other

Figure 5: Herzberg’s two-factor theory

(Source: https://wikispaces.psu.edu/display/PSYCH484/10.+ Job+ Design)

Two-factor theory fundamentals: Attitudes and their connection with industrial mental health are related to Abraham Maslow's theory of motivation His findings have had a considerable theoretical, as well as a practical, influence on attitudes toward administration According to Herzberg, individuals are not content with the satisfaction of lower-order needs at work; for example, those needs associated with minimum salary levels or safe and pleasant working conditions Rather, individuals look for the gratification of higher-level psychological needs having to do with achievement, recognition, responsibility, advancement, and the nature of the work itself This appears to parallel Maslow's