Job satisfaction of underwriting management employees at baoviet insurance

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH --- PHẠM THU ANH JOB SATISFACTION OF UNDERWRITING MANAGEMENT EMPLOYEES AT BAOVIET INSURANCE ĐO LƯỜNG MỨC ĐỘ HÀI LÒNG TRONG CÔNG VIỆ

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH

-

PHẠM THU ANH

JOB SATISFACTION OF UNDERWRITING

MANAGEMENT EMPLOYEES AT BAOVIET INSURANCE

ĐO LƯỜNG MỨC ĐỘ HÀI LÒNG TRONG CÔNG VIỆC CỦA CÁN BỘ TRỤ SỞ CHÍNH - TỔNG CÔNG TY

BẢO HIỂM BẢO VIỆT

LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH

Hà Nội - 2017

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH

-

PHẠM THU ANH

JOB SATISFACTION OF UNDERWRITING

MANAGEMENT EMPLOYEES AT BAOVIET INSURANCE

ĐO LƯỜNG MỨC ĐỘ HÀI LÒNG TRONG CÔNG VIỆC CỦA CÁN BỘ TRỤ SỞ CHÍNH - TỔNG CÔNG TY

BẢO HIỂM BẢO VIỆT

Chuyên ngành: Quản trị kinh doanh

Mã số: 60 34 01 02 LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH

NGƯỜI HƯỚNG DẪN KHOA HỌC: TS TRẦN HUY PHƯƠNG

Hà Nội - 2017

DECLARATION

The author confirms that the research outcome in the thesis is the result of author’s independent work during study and research period and it is not yet published in other’s research and article

The other’s research result and documentation (extraction, table, figure, formula, and other document) used in the thesis are cited properly and the permission (if required) is given

The author is responsible in front of the Thesis Assessment Committee, Hanoi School of Business and Management, and the laws for above-mentioned declaration

Date 01/10/2017

ACKNOWLEDGEMENT

First of all, I would like to express my sincere gratitude to PhD Tran Huy Phuong, my research supervisor, for his invaluable guidance and advice in helping me following the right track throughout the course of my research work I am also grateful to

my committee member who have given their suggestions and comments for improvement

of this research study I take the responsibility of possible mistakes and errors in this study

Secondly, I would like to send my great thanks to professors, lecturers and staffs at the Hanoi School of Business and Management for the knowledge and experience that have been shared through their lectures during the program

Thirdly, I am very thankful to the senior management team and my colleagues in Underwriting Management departments at BaoViet Insurance for their kind cooperation and support to let me interview them and also gave me very useful information as well as valuable experiences

Last but not least, I would like to say many thanks to my family and friends for giving me encouragement and supports during my studying time and completion of this thesis

Hanoi, October 2017

PHAM THU ANH

TABLE OF CONTENT

ACKNOWLEDGEMENT i

ABBREVIATION vi

LIST OF TABLES viii

LIST OF FIGURES vii

INTRODUCTION 1

CHAPTER 1THEORETICAL FRAMEWORK ON JOB SATISFACTION OF EMPLOYEES IN ORGANIZATION 7

1.1.Definition job satisfaction 7

1.1.1 Definition of job satisfaction 7

1.1.2 The role of job satisfaction 8

1.2.Job descriptive index to measure job satisfaction 10

CHAPTER 2 JOB SATISFACTION OF UNDERWRITING MANAGMENT EMPLOYEES AT BAOVIET INSURANCE 14

2.1.Overview of BaoViet Insurance Corporation and Underwriting Management Division 14

2.1.1 Introduction of BaoViet 14

2.1.2 The feature and structure of Underwriting Management (UM) Division in BaoViet Insurance (BVI) 16

2.2.Dimensions to measure job satisfaction of UM employees at BVI 18

2.3.Respondent profile and scale reliability 21

2.3.1 Respondent profile 21

2.3.2 Exploration factor analysis (EFA) for dimension and attribute of measuring job satisfaction 24

2.3.3 Testing reliability for dimension and attribute of measuring job

satisfaction 25

2.4.Analyzing the situation of UM employees job satisfaction at BVI: 27

2.4.1 Satisfaction with “Salary” 27

2.4.2 Satisfaction with“Work itself” 28

2.4.3 Satisfaction with“Training, promotion” 30

2.4.4 Satisfaction with“Manager” 31

2.4.5 Satisfaction with “Colleague” 32

2.4.6 Satisfaction with “Welfare” 34

2.4.7 Satisfaction with “Working environment” 36

2.5.Overall assessment for UM employees’ job satisfaction at BVI 37

2.5.1 Overall job satisfaction of UM employees at BVI 37

2.5.2 Analyzing dimensions to measure job satisfaction through regression model 41

CHAPTER 3 SOLUTIONS TO IMPROVEUNDERWRITINGMANAGEMENT EMPLOYEES’ JOB SATISFACTION AT BAOVIET INSURANCE 46

3.1.Human resources development strategy and job satisfaction improvement goal 46

3.1.1 Human resources development strategy of the Underwriting Management division at BVI 46

3.1.2 Employees’ job satisfaction improvement goal 47

3.2.Solutions to improve underwriting management employees’ job satisfaction at BVI 49

3.2.1 Implementing training programs and expanding the promotion opportunities to develop underwriting management employees’ capabilities and skills 49

3.2.2 Improving the working environment positively 52

3.2.3 Improving policies on Salary and Welfare 56

3.2.4 Improving the factor of manager: 58

3.2.5 Improving activities to connect “Colleagues” 60

3.3.Recommendations for the solutions 61

3.3.1 Recommendations for the Company 61

3.3.2 Recommendations for managers 62

3.3.3 Recommendations for employees 62

CONCLUSION 65

REFERENCE LIST 66

APPENDIXES 68

ABBREVIATION

LIST OF FIGURES

Figure 1.1: Research process 4

Figure 3.1: Revenue of BaoViet Insurance from 2009 – 2013 15

Figure 3.2: Market share of BaoViet Insurance 16

Figure 3.3: Organization Chart of BaoViet Insurance 17

Figure 3.4: Organization Chart of Underwriting Management Division 18

Figure 3.5: AJDI model studying employees’ job satisfaction 20

Figure 3.6: Structure of surveyed sample according to “Age” 23

Figure 3.7: Structure of surveyed sample according to “Qualification” 23

Figure 3.8: Structure of surveyed sample according to “Seniority” 24

Figure 3.9: Adjusted research model 25

LIST OF TABLES

Table 3.1: Dimensions of job satisfaction 20

Table 3.2: The sample description 22

Table 3.3: The result of Exploration factor analysis 25

Table 3.4: The result of the scale reliability 26

Table 3.5: Satisfaction with“Salary and Welfare” 27

Table 3.6: Satisfaction with“Work itself and Working environment” 28

Table 3.7: Satisfaction with“Training, promotion and Decision-making right” 30

Table 3.8: Satisfaction with“Manager” 31

Table 3.9: Satisfaction with “Colleague” 32

Table 3.10: Overall job satisfaction 37

Table 3.11: Job satisfaction based on each personal attribute 39

Table 3.12: Results obtained by Annova analysis 41

Table 3.13: Correlation coefficient R2 42

Table 3.14: Coefficients 43

in negative behavior of employees

In any organization, employees are the key important factor to help companies compete and retain in a market.When the Vietnamese economy develop more and more, the requirements of HR become more important The enterprises not only pay attention at recruitment the right person for each position, but also know how to promote the staff efforts, retain the skillful people and attract highly qualified manpower When the competitiveness of salary, working conditions, preferential regime between the enterprises

is happening commonly, theskilled and well trained staff retention and stable staffing situation are now becoming the main problem that the business owners are interested The previous studies in the past suppose one of the most important factors that make employees staying longer with company is the job satisfaction

Being the first insurance company, BaoViet Insurance Corporation (BVI) has a long heritage in Vietnam With strong financial capability and an extensive network of 67 subsidiaries in 65 provinces of Vietnam, BVI has given local expertise in offering a diversified range of non – life insurance products and services that meet the changes of customers’ demand By that way, the company has already maintained his leading position

in the insurance market with many significant achievements in terms of revenue, profit, products and services quality

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The underwriting management (UM) division is one of the functional divisions of BaoViet Insurance, with 40% labor force It plays an important role to help the system operate fluently, increase the competitiveness in the exploiting the insurance business and ensure the effectiveness of BVI performance The labor productivity and job efficiency of Underwriting Management employees will also affect to the business performance of each branches in particular and BVI in general However, in recent years, the number and frequency of resignation or work transfer of Underwriting Management employees tend to

be increasing In order to get more insights into the workplace scenario and evaluateif employees are actually satisfied with the work they do, it will be necessary to study of Underwriting Management employee’s job satisfaction atBVI.The job satisfaction of employees will make their work more interesting, reduce their stress, progressively increase their confidence in their own competence and enhance commitment with the company It also decides the sustainable development of the organization It helps the companies avoid the big fluctuation of HR, and establish the HR management policies and working environment more suitable to increase the job satisfaction of employees

To be aware of the above problem importance, the topic “Job satisfaction of Underwriting Management employees in BaoViet Insurance” is chosen to study Underwriting Managementemployees' level of job satisfactionand give some recommendations to increase the job satisfaction, the retention of skillful personnel and attract more highly qualified manpower to meet the job requirements of Underwriting Management division - BVI

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 What are the dimensions to measure employee’s job satisfaction?

 How is the current job satisfaction of UM employees in BVI?

 How to improve the job satisfaction of UM employees in BVI?

3 Objects of this research

The thesis focuses on job satisfaction of Underwriting Management employees in BVI

• Primary data: collected within 2 months April – May 2016

• Secondary data: collected from the company HR documents, reports and related analysis in the period 2012 –2016

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5 Research Methodology

5.1 Research process

Figure 1.1: Research process

(Source: Author’s data)

a Data collection

i Secondary data Secondary datacollected from the below:

The data from textbooks and the internet provided the author with theories and basic dimension to measure job satisfaction in the enterprises in general

Job Description

Analyze secondary data:

Company report, Job Description, and others

Theoretical of employee’s job

Solution to improve the Underwriting management

employee's job satisfaction

at BVI

5

BVI reports, regulations, policies, Underwriting Management employees’ job description: provided the author with information on the company’s turnover, market share, the function and duties of UM Division, and HR policies applying currently in BVI

ii Primary data Primary data collected from 2 methods:

- The interest of managers for employee’s satisfaction

- Orientation of HR development of the UM division in the future

• Carried out the direct interview of 6 UMemployees with the open questions as below:

- The working environment and pressure in the current job

- Current salary is paid in comparisonwith other insurance companies

- Opinion of welfare facilities in BaoViet Insurance

- Training and promotion opportunities of BaoViet Insurance for all the employees

- The satisfaction level of delegation in the current job

- The job commitment to BaoViet Insurance

b Survey:

*Respondents: Employees in Underwriting Management division including 06 departments: Fire & Engineering department, Hull & Cargo department, Motor department, Heath & Personal accident department, Reinsurance department, Claim department

*Sample size: UM department at Bao Viet Insurance has total 110 employees, so all of them were choosen to study their satisfaction in working place with the questionnaire designed by 2 sections:

♦First section: a measurement of the employees job satisfactionlevel ranging from 1

= Totally Disatisfied to 5 = Totally Satisfied with the 29 criterions basing on the 8 working

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dimensions:Work itself, Trainning and promotion opportunities, Manager, Colleague, Salary, Welfare, Working environment, Decision – making right

♦ Second section: personal attributes of surveyed participants

- Questionnaire distribution: via email

- Survey conducting:

+Pilot surveywas conducted with a random sample of15 staffs

- chosen in UM division - BVI according to the favorable sampling method,by delivering the preliminary questionnaires via email to be sure that it’s easyfor

15 employees to understand andtake part in this Then, the results will be collected to set up the formalquestionnaires

+Official surveywas conducted with110UM employees in BVI by

- delivering the formal questionnaires via email 105 revoked with 100 full required information, accounting for 90.9%of the sample

b Data analysis:

- Regarding the survey data, Microsoft Excelsoftware and the Mean method are used to analyze the collected information The inspection of scale, theriotical model and hypothesis was carried out by the Crobach’s Alpha reliablity coefficient, Exploration factor analysis, regression modelthrough SPSS software

6 Research structure

The thesis is divided into three chapters as follows:

Chapter 1: Theoretical Framework on Job satisfaction of employee in organization Chapter 2: Status of job satisfaction of Underwriting Management employees at BVI

Chapter 3: Solutions to improve the job satisfaction of Underwriting Management employees in BaoViet Insurance

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CHAPTER 1 THEORETICAL FRAMEWORK ON JOB SATISFACTION OF EMPLOYEES IN

ORGANIZATION 1.1 Definition job satisfaction

1.1.1 Definition of job satisfaction

There are a lot of job satisfaction definition:

Spector (1997) refers to job satisfaction in terms of how people feel about their jobs and different aspects of their jobs.This definition suggests job satisfaction is a general or global affective reaction that individuals hold about their job

Ellickson and Logsdon (2001) support this view by defining job satisfaction as the extent to which employees like (satisfaction) or dislike (dissatisfaction) their jobs their work

Schermerhorn (1993) defines job satisfaction as an affective or emotional response towards various aspects of an employee’s work The author emphasizes that likely causes

of job satisfaction include status, supervision, co-worker relationships, job content, remuneration and extrinsic rewards, promotion and physical conditions of the work environment, as well as organizational structure Similarly, Mc Namara (n.d.) points out that job satisfaction refers to an individual’s feeling or state of mind giving heed to the nature of the individual’s work The author further explains that job satisfaction can be influenced by a diversity of job dimensions, inter alia, the quality of the employee’s relationship with their supervisor, the status of the physical environment in which the individual works, degree of fulfillment in work

Locke (1976), refer to job satisfaction as an individual’s mental state about the job Locked defined job satisfaction as “ a pleasurable or positive emotional state resulting from the appraisal of one’s jobor job experiences.” Job satisfaction is the level of contentment a person feels regarding his or her job This feeling is mainly based on an individual's perception of satisfaction Job satisfaction can be influenced by a person's ability to complete required tasks, the level of communication in an organization, and the way management treats employees

Job satisfaction is defined as "an individual's reaction to the job experience" (Berry, 1997) There are various components that are considered to be vital to job satisfaction These variables are important because they all influence the way a person feels about their

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job These components include the following: pay, promotion, benefits, supervisor, workers, work conditions, communication, safety, productivity, and the work itself Each

co-of these factors figures into an individual's job satisfaction differently

According to Bradley and Brian (2003), employee’s job satisfaction is pleasure that

an employee derives from his/her Job It is an attitudinal variable that describe how people feel about their job Job satisfaction depends on balance between work role inputs (pain)- like education, working time, effort, and work out puts(pleasures) like wages, fringe benefits, status, task importance, working conditions, and intrinsic aspects of the job If work outputs (pleasures) are relative to work role inputs (pains).According the concept, human has basic and universal needs and that, individual needs are fulfilled in their current situation, and then that individual will be happy

Hence, according to the author, the employee’s job satisfaction islevel of contentment a person feels regarding his or her job It can be influenced by a person's abilityto complete required tasks, the level of communication in an organization, and the way management treats to employees.Lower convenience costs, higher organizational and social and intrinsic reward will increase job satisfaction The employees will have pleasure,

happiness and positive attitude toward their job

1.1.2 The role of job satisfaction

The human is always considered as the most important resource, the essential factor that decides the success or failure in the business performance of the enterprises

Human resources (HR), together with the advancements of science and technology, are becoming the leading competitive factors of the company, especially in the context of intellectual economy Many of the companies have faced with the depletion of HR that leads to reduce the motivation and productivity as well as lose the experienced staffs The managers of BaoViet Insurance always attend the quality of UM employees, then give many solutions to reducerecruitment costs, increase retention of experienced staff and motivate them to perform at a high level Hence, how tomaintain and retain the appropriate employees within the organization is the major concern of the managers

One of the important variable to assess the HR management is the job satisfaction

of employees in the organization.In order for an organization to be productive, the

the implied role of job satisfaction Work satisfaction theories, such as Maslow’s (1943)

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Hierarchy of Needs, Hertzberg’s (1968) Two-Factor (Motivator-Hygiene) Theory, Locke’s (1976) Range of Affect Theory, Bandura’s (1977) Social Learning Theory, and Landy’s (1978) Opponent Process Theory, have tried to explain job satisfaction and its influence to the behavior of the employees in the job by researching the theories

- The employee has positive attitude in improving herself through daily job

- The job satisfaction is the positive or negative motivation in the employees’ fulfillment If a person is rewarded for high performance or stands to gain a reward for doing the work, he/she may find the job more satisfying The more satisfied an employee is with their job, the more they will produce and the better feeling they will be.In contrast, the negative indicators include absenteeism, sabotage, and violence will indicate low commitment towards the organization and low job satisfaction

In order for an organization to be successful they must continuously ensure the satisfaction of their employees Creating job satisfaction is the major priority of the managers Are the HR practice norms suitable for the labor? Is the job arrangement for the employees reasonable for their ability? Is the job met the employees’ demand? Or what to

be equipped for the employees to do better at work etc All this factors will decide the positive/negative impact on their productivity and affect their decision whether or not they will stay with their employersfor a relatively long period

Accoring to Heskett et al (1994), creating job satisfaction plays an important role

an environmentthat allows the employees to increase the efficiency and productivity and have strong commitment to put forth their best effort for the aim and mission of the company.It’s also the way to build the loyalty of the employees to the organization, make them get deeply involved in their jobs, and feel more enthusiastic when performing their responsibilities in the workplace In another research, happiness in the workplace leads to much higher levels of productivity It increases employee morale; therefore employees are more willing to work harder to improve the company and its goalsthat are in line with their own career goals and objectives, Derek R Allen & Merris Wilburn (2002)

The objectives of increasing job satisfaction:

- Make the work more interesting, reducing their stress, progressively increase their confidence in their own competence, accept the responsibility and take steps to build on their own satisfaction

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- Increase the labor productivity, competitiveness and market expansion for the enterprises businesses

become more optimistic no matter what challenge we may face at work In addition, a person who is truly satisfied with his or her career life helps create a more positive working environment Workers who have job satisfaction can help boost the morale of his or her co-employees and will encourage them to be optimistic about their job

1.2 Job descriptive index to measure job satisfaction

In simple terms, job satisfaction explains what makes people want to come to work What makes them happy about their job or not to quit their job? Their job satisfaction will

be further enhanced if they are doing work that is utilizing their skills.Job satisfaction is an indicator of employee’s motivation to come to work and it changes with age and employment cycle Certain organizational characteristics influence job satisfaction, and one of the major factors is the intrinsic nature of the job itself An individual who genuinely likes the content of the job will be more satisfied with the job

As there are various measures to measure job satisfaction and not all of them could

be used at the same time, a choice had to be made One of the most frequently used is the Job Descriptive Index (JDI) developed by Smith, Kendall and Hulin (1969) When more than one scale exists for any variable, it is better to use the measure that has a better reliability and validity and is most frequently used.”

The Job Descriptive Index was chosen as the standard measure but at the same time another section was added to measure the importance of the various dimensions to the employees

The Job Descriptive Index (JDI) (Smith, Kendall & Hulin, 1969) is the most widely used measure of job satisfaction in existence today JDI was designed to measure job satisfaction through 5 aspects of a job: the work itself, salary, training / promotion opportunities, manager and colleagues

• The work itself: job specification such as projects, responsibilities It relates to the job challenges, the opportunities for applying personal abilities, an interesting feels performing the tasks The job satisfaction depends on the satisfaction with the work components, such as the nature of job The relevance of the work to workers is expressed through many aspects of the nature of work: use of different skills, employees'

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understanding the work process, and certain importance of the work for the organization

In addition, the work must be in accordance with workers' capacity

• Salary: relate to the employees awareness about thefair in paying the salary of the company A worker's level of job satisfaction can impact his/her job performance The performing employees feel satisfied with their job because of high-level or increased pay

• Trainning / Promotion opportunities (i.e., job enlargement, more prestigious title): relate to the employees awareness about the chances of trainning, individual ability development and promotion in the organization.Advancement opportunities are believed to have a positive influence job satisfaction Kreitner and Kinicki (2001) supposed that positive relationships between development opportunities and job satisfaction depend on fairness perceptions of employees Promotion opportunities have positive impact on job satisfaction In some studies in Vietnam (such as Tran Kim Dung, 2005; Ha Nam Khanh Giao, 2011), the factor “promotion opportunities” is considered in aspects such as: Fully professional trained, opportunities to improve the professional skills, create opportunities for those who can afford, chance for individual developments, and training and promotion policies are clear

•Manager: relationship with the manager is the way in which subordinates perceive

a supervisor's behavior can positively or negatively influence job satisfaction Communication behavior such as the facial expression, eye contact, vocal expression, and body movement is crucial to the superior-subordinate relationship Supervisor makes employees satisfied through their communication, their attention and care for their subordinates, or their act of protecting employees when it is necessary, and through demonstrating their leadership ability and professional capacity in front of their staff (Robins et al, 2002) In addition, employees feel satisfied with their supervisor thanks to their fair treatment, or sincere recognition of employees' contribution According to Ramsey (1997), leadership affects working morale high or low Attitudes and behaviors of leaders for employees could also be factors affecting the behavior or uncooperative co-workers The leadership style democracy creates more sympathy from employees It can promote learning and reduce the frustration in work when employees are motivated on time Many actual researches also show positive relationship between the factor

“supervisors” and job satisfaction

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• Colleagues: interaction and work relationship with co-workers relate to the behaviors, co-workers relationship at working place.Colleagues are people working together in the organization or the people working in the same department Friendly co-worker relation will increase the satisfaction with job of employees (Johns, 1996; Kreitner

& Kinicki in 2001) The factor “colleague” is considered good is in the organization, employees are always willing to help each other, work together effectively, treat well, working environment is friendly, and employees have reliable relations

Besides that, in order to be suitable for the Vietnamese culture and society, basing

on the demand theory of Maslow and JDI of Smith, also the job characteristics of departments in the UM division, the research will carry out the measurement of employees job satisfaction and pointed out more 2 dimensions:

• Welfare: affect to the job satisfaction of employees It covers both monetary and nonmonetary fringe benefits It includes benefit comparison with other organization The enterprises have a good wel-fare facilities that make the employees have higher level of job satisfaction Each company has different welfare facilities that are suitable for its structure aparting from the common practices stipulated by the Goverment That policies has been implenmented well or badly depending on the activities of Trade union in that organization Therefore, it’s neccessary to create the combination of all functional department smoothly to get the best results and increase the job satisfaction

• Working environment: employees can express their dissatisfaction or try to escape the unpleasant aspects that they can meet Employees will aware clearly the balance of job dimensions in the working place with the time and pleasant The employees will feel satisfied working, consider the company as the second home and perform their task more effectively

The research will carry out the measurement of job satisfaction with 7 dimensions:

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Job satisfaction

The work itself

Salary

Training / Promotion opportunities

Manager Colleague

Welfare Working environment

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CHAPTER 2 JOB SATISFACTION OF UNDERWRITING MANAGMENT

EMPLOYEES AT BAOVIET INSURANCE 2.1 Overview of BaoViet Insurance Corporation and Underwriting Management Division

2.1.1 Introduction of BaoViet

BaoViet Insurance Corporation (BVI), being established in 1965, is a owned subsidiary of BaoViet Holdings The charter capital of BVI increased to VND2,000 billion in 2013 from VND1,800 billion in 2012; and reached VND 4,420 billion in early

wholly-2015 This increase of capital has made BVI being the non-life insurance company with the largest chartered capital in the market, improved business performance, and driven further developments in the future

BVI has main product lines: medical, marine hull and cargo, motor, fire& engineering insurance, aviation, and pilot agriculture insurance Each business line contributes 15% – 20% to total revenue and has a positive growth rate every year

With over 50 years of establishment, BVI has grown dramatically: from a small general insurance company first entering the Vietnam market in 1965 into one of the largest insurance companies in the country with a network of 67 branches and nearly 300 customer support offices, employing more than 3,000 employees and 15,000 agents BVI

is proud to be the first non-life insurer in Vietnam, and to be presented with many prestigious awards by the State BVI has played an increasingly important role in the national economy and society:

• For customers, BVI has always stood from customers’ perspectives to serve their increasingly sophisticated needs by providing comprehensive insurance products and services With the strong financial capacity, effective business management and claim settlement, BVI enable to meet all insurance needs and handle claims of customers in a prompt, timely and professional manner

• For employees, BVI has built a performance-based culture, linked to a world class performance management system and a competitive rewards structure, and continually improved our recruitment, people training and development

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• For the community, BVI has strived to ensure we contribute to the peace of mind and prosperity of society Enhancing lives for the community where we operate is an important part of how we run our business

BVI’s business goals include improving customer service and the operation of the call center to provide high quality product consultation and add values to customers; developing individual insurance products with advanced features, especially medical and health insurance, and automobile insurance; extend distribution channel including cross-selling with BaoViet life, direct sales, brokerage, and bancassurance In addition, BVI also enhance risk management by establishing world class risk management model to control risks and support its insurance policy issuance, and reducing management cost to improve business efficiency and deliver profit growth

The remarkable achievements that BVI gained in the recent years:

• Constantly increasing the revenue throughout all years (Unit: VND billion)

Figure 3.1: Revenue of BaoViet Insurance from 2012 – 2016

(Source: BaoViet’s annual report 2015-2016)

• Maintaining the leading position in non-life insurance market in Vietnam by market share: around 24%

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Figure 3.2: Market share of BaoViet Insurance

(Source: BaoViet’s annual report 2016)

• Affirming the leading role of key markets and individual insurance product lines

by achieving highest growth rates include automobile insurance (30%), medical insurance (34%), and aviation insurance (6%)

• Strengthening the management model to enable sustainable development by implementing international standard risk management model, developing information technology platform in recent years (Insure J, Sun account, Lotus notes, image management etc), and investigating how to effectively launch online sales, telesales…

2.1.2 The feature and structure of Underwriting Management (UM) Division in BaoViet Insurance (BVI)

2.1.2.1 The structure of BaoViet Insurance

The structure of BaoViet Insurance includes Chairman of the board members, Board of Directors, Head office with 5 functional divisions, and 67 branches located across Vietnam

BaoViet 24%

BaoMinh 12%

PVI 23%

PJICO 9%

PTI

4%

Others 28%

Market share

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Figure 3.3: Organization Chart of BaoViet Insurance

(Source: Author’s collection from BVI’s information)

2.1.2.2 The structure of Underwriting Management Division

The Underwriting Management is one of the main divisions belongs to BVI including 6 departments: Fire & Engineering department, Hull & Cargo department, Motor department, Heath & Personal accident department, Reinsurance department, Claim department

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Figure 3.4: Organization Chart of Underwriting Management Division

(Source: Author’s collection from BVI’s information)

Its tasks are:

• Give suggestion to Board of Directors about setting plan and business strategy of each line: Fire& Engineering, Motor, Medical, Hull & cargo

• Settle and instruct the specific business for the branches and sale division to meet the sudden & planned requirements

• Arrange reinsurance programs and allocate the risks to the oversea or domestic Reinsurers

• Carry out the survey and make claim settlement for the Insured

• Research and develop new products, establish new distribution channels

• Supplement, improve processes, regulations, forms and deploy their implementation in whole system aimed at centralized management and IT model application

• Inspect the branches’ compliance in exploiting the insurance businesses and support them to complete the business plan that BVI distributed

• Make statistics the performance results of whole system to release the necessary reports for BVI in each quarter

2.2 Dimensions to measure job satisfaction of UM employees at BVI

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Job Descriptive Index, developed by Smith et al (1969), was chosen for job satisfaction measurement of this research, and in addition, 3 facets of job also were supplemented to measure the employees satisfaction in BVI The questionnaire was based

on JDI and Tran Kim Dung (2005) In the questionnaire, there were total 29 items to observe and measure 8 dimensions of job satisfaction as follows:

+ Work itself (4 items)

+ Training and promotion opportunities (3 items)

+ Manager (6 items)

+ Colleague (3 items)

+ Salary (4 items)

+ Welfare (3 items)

+ Working environment (4 items)

The increase or decrease in satisfaction level over those above dimensions will affect the increase or decrease of overall job satisfaction level of staffs

Through in-depth interviews with 1 Deputy General Director, 3 Department Heads and 2 Department Deputy Heads on UM division leaders’ care about UM staffs’ job satisfaction and UM human resources development orientation At the same time, interviewing 6 UMstaffs to identify their ideas on working conditions, welfare, salary, etc and current job satisfaction

From the evaluation and selection of the Researcher on the appropriate criteria to analyze UMstaffs’ job satisfaction at BVI, according to AdjustedJob Descriptive Index (AJDI) model, the dimensions measure job satisfaction including: Work itself, training/promotion opportunity, manager, colleague, salary, welfare, working environment

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Figure 3.5: JDI model studying employees’ job satisfaction

(Source: Author’s collection from survey and theory)

Those criteria selected to analyze UM employees’ job satisfaction at BVI are represented at the following table:

Table 3.1: Dimensions of job satisfaction

II Training and promotion opportunities

III Manager

Job satisfaction

of Underwriting Management employees at Bao Viet Insurance

The work itself

Salary

Training / Promotion opportunities

Manager Colleague

Welfare Working environment

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IV Colleague

V Salary

VI Welfare

VII Working environment

(Source: Author’s collection from survey)

2.3 Respondent profile and scale reliability

2.3.1 Respondent profile

The Researcher conducted a survey with 110 questionnaires, 105 revoked with 100 with full required information, reaching the rate of 90.9%

Preliminary evaluation for surveyed sample based on 4 individual attributes:

Gender, age, qualification, seniority and position Specifically as follows:

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Table 3.2: The sample description

Individual attribute Individual

characteristic Frequency Percentage

b Age:

UM employeesof BVI are generally quite young partly due to some changes in human resources with many new personnel added; partly due to requirements for experienced ones Therefore, the number of staffs from 25 to 35 years old account for 66% (66 staffs) The number of staffs over 35 years old account for 19% (19 staffs) The number of staffs less than 25 years old only account for 15%

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Figure 3.6: Structure of surveyed sample according to “Age”

(Source: Self-analyzed by the Researcher in 2016)

c Qualification:

Staffs with university degrees account for 66% Post-graduated staffs account for 34%

Figure 3.7: Structure of surveyed sample according to “Qualification”

(Source: Self-analyzed by the Researcher in 2016)

d Seniority:

Because some staffs retired and some turned over, while some have been newly recruited, the majority of surveyed UM staffs have seniority of 5 – 10 years, accounting for 48% Staffs whose seniority is less than 5 years account for 41% And staffs whose seniority

is more than 10% at BVI only account for 11% (11 staffs)

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Figure 3.8: Structure of surveyed sample according to “Seniority”

(Source: Self-analyzed by the Researcher in 2016)

2.3.2 Exploration factor analysis (EFA) for dimension and attribute of measuring job satisfaction

Exploration factor analysis (EFA) helps to set a BVI of observations in the research model

According Hair & ctg (1998, 111), Factor loading is a statistical method used to uncover the underlying structure of a relatively large set of variables EFA is a technique hnique within factor analysis whose overarching goal is to identify the underlying relationships between measured variable

• Factor loading > 0.3 isprobably a good (at least minimum)

• Factor loading > 0.4 is more important

• Factor loading > 0.5 is practically significant

If use the factor loading more than 0.3 the sample size should be at least 350 If the sample size is around 100, the factor loading should be> 0.55 (usually 0.5)

0.5 ≤ KMO ≤ 1: KMO & Bartlett’s Test of Sphericity is a measure of sampling adequacy that is recommended to check the case to variable ratio for the analysis being conducted Using Eigenvalue for factor analysis: >1 and Varimax Procedure rotation (rotating factor angles to minimize the number of variables with large cofficients at the same factor

to increase the ability of explaination for the factors) The analysis conditions must meet the following criteria:

- Factor loading >= 0.55

- Testing coefficient 0.5<=KMO<= 1

- Total variance explained >50%

Value

P-Total variance explained Components Conclusion

factor loading > 0.55

(Source: Self-analyzed by the Researcher in 2016)

Exploration factor analysis (EFA):

The significance level of Bartlett testing of 0.000 (< 0.05) is satisfactory, i.e observation variables have their correlation

KMO coefficient (Kaiser – Meyer – Olkin) is 0.662, meeting the requirement of 0.5<KMO< 1 So 7 extracted dimension BVIs have their own statistical meaning

Total variance explained is 75.383% means the cumulative propotion 75.383% of variable explained by 7 extracted components

Figure 3.9: Adjusted research model 2.3.3 Testing reliability for dimension and attribute of measuring job satisfaction

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After collecting questionnaires andimplementing the Exploration factor analysis (EFA), the Researcher tested data reliability According to Staler (1995) and Peterson (1994), Cronbach’s Alpha(α) coefficient is used to measure the reliability of surveyed data When it ranges from 0.8 to 1, the surveyed data have high reliability and the scale selected

is very good When it ranges from 0.7 to 0.8, the data can be used If it ranges from 0.6 to 0.7, the data can be used in case that measurement concepts are new and relatively new for interviewees Criteria:

- Cronbach’s alpha coefficient >= 0.6

- Total correlation coefficient >= 0.3

After testing the reliability of the data by Cronbach’s alpha coefficient, the results are presented at the following table:

Table 3.4: The result of the scale reliability

Factor Number of

varibale

Cronbach’s alpha Conclusion

(Source: Self-analyzed by the Researcher in 2016)

Job satisfaction scale has 7 working dimensions (AJDI) with 27 observational variables, after tested by Cronbanch’s Alpha, the results show that:

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All dimension which Cronbanch’s Alpha coefficient > 0.6 They all have their total correlation coefficients > 0.3 Therefore, all scale is reliable

2.4 Analyzing the situation of UM employees job satisfaction at BVI

2.4.1 Satisfaction with “Salary”

Table 3.5: Satisfaction with“Salary and Welfare”

Criteria Mean Min Max

(Source: Self-analyzed by the Researcher in 2016)

From the above table, we can see that the Mean of 3.90 can assess employees satisfaction status with “Salary” at the level of “Satisfied” (3<=X1<4)

Currently, at BVI, salary and bonus is divided as follows:

Monthly salary incudes basic salary according to the State’s regulations and business allowance

Day September 2, International Labor Day, bonus rewarded according to job performance

Salary payment limits some shortcomings,equality in job evaluation is improved Employees will be satisfied with their authority if they feel that salary and bonus is distributed fairly based on each personal working capability and contribution to the organization It is not only expressed in material but also emotional compensation Employees will be happier and prouder of their contributions Thus, it is necessary to survey employee satisfaction with:

Criterion “Salary is paid fairly and suitably”: In 100 surveyed employees, there

are 9 employees rating it “Totally satisfied”, 70 employees “Satisfied”, 21 employees

“Somewhat satisfied” with that criterion No one feels dissatisfied with that criterion Therefore, it can be said that almost all of UMemployees at BVI feel satisfied with fair and suitable salary payment

BVI implements working performance appraisal and develops new salary payment

system for its employees annually Therefore, for criterion “Periodical salary increase or

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based on working performance”: 71% of surveyed employees feel “Satisfied” 16% of

them feel “Totally satisfied”, 13% feel “Somewhat satisfied” with periodical salary increase or based on working performance No one feels “Dissatisfied” with that criterion Therefore, we can see that almost all of employees satisfy with the criterion “Periodical salary increase or based on working performance”

At BVI, salary paid to employees must ensure the competitiveness in the labor market, creating motivation for existing one as well as attract potential and experienced ones

For criterion “Salary is the same as other companies in the same industry”: In

100 surveyed employees, there are 9 employees rating it “Totally satisfied”, 62 employees

“Satisfied”, 29 employees “Somewhat satisfied” with that criterion No one feels dissatisfied with that criterion Therefore, it can be said that almost all of UMemployees at BVI feel satisfied with that matter that salary is paid equally to other companies in the same industry

2.4.2 Satisfaction with“Work itself”

Table 3.6: Satisfaction with“Work itself and Working environment”

Criteria Mean Min Max

(Source: Self-analyzed by the Researcher in 2016)

From the above table, we can see that with the Mean of 4.29, it is able to rate employee satisfaction level with “Work itself” as highly “Satisfied” (X2>=4)

For criterion “The work is suitable for employees professional capacity”: 48

employees rated it “Totally satisfied”, 51 employees “Satisfied”, 1 employee “Somewhat satisfied” No one felt dissatisfied with that criterion Therefore, it is able to see that almost all of UMemployees of BVI feel satisfied with the suitability of the work and professional capacity

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The nature of underwriting management includes always having to ensure the smoothness in work implementation: risk assessment, making decisions on insurance approval, insurance premium determination with all the insurance line for fire and engineering, miscellanous, medical, motors, marine hull and cargo; placing re-insurance with the large businesses/exceeding reinsurance treaty scope; supervising damages, compensating Therefore, it is necessary to ensure insurance businesses being exploited fast, timely, safely and effectively to improve the BVI competitiveness with other insurance companies When highly recognizing their works, employees will feel that they play an important role in the success of underwriting management, improve the pride and job satisfaction for the works that employees in charge of

Employees after signing 1-year labor contract will be listed on the BVI official payroll, and enjoyed fixed monthly salary from the company’s business performance, accurately They must fully implement as well as take responsibility for the results of their work, assigned rights, strictly comply with the Company’s disciplines and internal regulations Employees do not have to worry about layoffs as other external private enterprises, they can feel totally secured with their current positions at the BVI,except for the case that employees actively require for their turnover to look for another job more suitable for their professional capacity At the BVI corporation, the works are remained daily and there are many specialized and various insurance classes that the employees are

able to learn step by step during working and handling Therefore, for criterion “Stable

and interesting work”: 50% of surveyed employees rated it “Satisfied”, 40% of them

“Totally satisfied”, 10% “Somewhat satisfied” Therefore, it is able to see that almost all of employees feel satisfied with suitable and interesting work

The nature of the work is not changed, however, sometimes the work is arranged into suitable underwriting segments, so each BVI of employees is in charge of each different segment to create a connection among small BVIs and smoothness and consistency throughout the system Employees will feel interested in their works with higher professionalism, not much pressure and more importantly, they are motivated to well complete their assigned tasks So, with:

Criterion “Suitable assignment for work”: 38 employees rated it as “Totally

satisfied”, 58 employees “Satisfied”, 4 employees “Somewhat satisfied” No one felt

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dissatisfied with that criterion Therefore, it can be seen that almost all of UMemployees at BVI feel satisfied with suitable assignment for work

2.4.3 Satisfaction with“Training, promotion”

Table 3.7: Satisfaction with“Training, promotion and Decision-making right”

(Source: Self-analyzed by the Researcher in 2016)

From the above table, we can see that with the mean 3.22, it is able to assess employee satisfaction with “Training, promotion and Decision-making right” at the level

of “Somewhat satisfied” (3<=X3<4)

Criterion “Promotion conditions in working”: 14% of surveyed employees rated

it as “Satisfied”, 3% “Totally satisfied”, 75% “Somewhat satisfied”, 8% “Dissatisfied” Therefore, it can be seen that almost all of employees feel somewhat satisfied with promotion conditions in working

BVI always focuses on organizing a number of training courses on marine, motors, healthcare and cooperating with the Training Center to organize some soft-skill training courses, distance learning on insurance Annually, BVI assigns some officers to attend intensive underwriting training workshops in foreign countries organized by its partners; assigns officials to work directly at some branches, constructs learning map for underwriting departments to build clear orientation on skill training for employees However, in some recent years, due to difficult economic conditions and phenomenon of brain drain, BVI do not provide sufficient trainingopportunities for employees who are also doing themselves a disservice, training employees in foreign countries is limited, on-site training is paid much attention to Therefore, some employees when surveyed felt dissatisfied with Opportunities to be trained to develop career, expertise

Criterion “Opportunities to be trained to develop career, expertise”: 3

employees rated it “Totally satisfied”, 30 employees “Satisfied”, 60 employees “Somewhat satisfied”, 7 employees “Dissatisfied” Therefore, it can be seen that almost all of