Staff satisfaction at aviva vietnam life insurance company limited

Factors affecting staff satisfaction at Aviva Vietnam Life Insurance Company Limited .... Orientation and general targets of staff satisfaction at Aviva Vietnam Life Insurance Company Li

KHOA QUẢN TRỊ VÀ KINH DOANH

SỰ HÀI LÒNG CỦA NHÂN VIÊN

TẠI CÔNG TY TNHH BẢO HIỂM NHÂN THỌ

AVIVA VIỆT NAM

LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH

HÀ NỘI - 2020

KHOA QUẢN TRỊ VÀ KINH DOANH

AVIVA VIỆT NAM

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 - 2020

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………

ACKNOWLEDGEMENT

Foremost, I would like to express my sincere gratitude to my supervisor Dr Tran Huy Phuong for his continuous support of completing my research, for his patience, motivation, enthusiasm, and immense knowledge His guidance helped me

in all the time of research and writing of this thesis

Besides my supervisor, I would like to thank the staffs and managers of Aviva Vietnam Life Insurance Company Limited who provided me insight and expertise that greatly assisted the research and shared with me a lot of useful information as well as opinion in relation to Aviva Company‟s business operation, human resources and performance

I would like to extend my sincere thanks to the staffs of Aviva Vietnam Life Insurance Company Limited who spent their time on completing my long questionnaire and be patient to correct or satisfy my questions

Last but not the least, I would like to thank my family for supporting me spiritually throughout my life and encouraging me to complete the thesis

<…………, ………/………/……… >

Nguyen Quynh Mai

CONTENT

INTRODUCTION 1

1 Rationale 1

2 Literature review 2

3 Aims of research 4

4 Objects of research 5

5 Scope of research 5

6 Research methodology 5

7 Thesis structure 7

CHAPTER 1 THEORETICAL BACKGROUND ON STAFF SATISFACTION IN ENTERPRISES 8

1.1 Theoretical background on staff satisfaction 8

1.1.1 Staff satisfaction 8

1.1.2 Theory of staff satisfaction 9

1.2 Factors affecting on staff satisfaction 20

1.2.1 Job characteristics 20

1.2.2 Training and promotion 20

1.2.3 Leadership 21

1.2.4 Colleagues 22

1.2.5 Salary/ income 22

1.2.6 Working condition 25

1.2.7 Welfare 26

1.3 Research model 26

CHAPTER 2 ASSESSING CURRENT STAFF SATISFACTION AT AVIVA VIETNAM LIFE INSURANCE COMPANY LIMITED 30

2.1 Overview about Aviva Vietnam Life Insurance Company Limited 30

2.1.1 Establishment and development 30

2.1.2 Organizational structure of Aviva Vietnam Life Insurance Company Limited 30 2.1.3 Business results of Aviva Vietnam Life Insurance Company Limited in the period of 2016-2018 32

2.2 Overview of human resources of Aviva Vietnam Life Insurance Company Limited 34

2.2.1 Statistics of human resources of Aviva Vietnam Life Insurance Company Limited 34

2.2.2 Labor structure by age 36

2.2.3 Labor structure by gender 37

2.2.4 Labor structure by education 37

2.3 Factors affecting staff satisfaction at Aviva Vietnam Life Insurance Company Limited 38

2.3.1 Job characteristics 41

2.3.2 Training and promotion 43

2.3.3 Leader 47

2.3.4 Colleague 49

2.3.5 Salary/ income 50

2.3.6 Working condition 57

2.3.7 Welfare 61

2.4 Overall assessment about staff satisfaction at Aviva Vietnam Life Insurance Company Limited 65

2.4.1 Achievements 65

2.4.2 Limitations 66

2.4.3 Causes of limitations 68

CHAPTER 3 PROPOSAL ON SOLUTIONS TO IMPROVE STAFF SATISFACTION AT AVIVA VIETNAM LIFE INSURANCE COMPANY LIMITED 69

3.1 Orientation and general targets at Aviva Vietnam Life Insurance Company Limited 69

3.2 Orientation and general targets of staff satisfaction at Aviva Vietnam Life Insurance

Company Limited 70

3.3 Some solutions to improve staff satisfaction at Aviva Vietnam Life Insurance Company Limited 70

3.2.1 Improving salary and bonus for employees 70

3.2.2 Supplementing welfare 72

3.3.3 Innovating training and promotion for employees 73

3.2.4 Increasing recognition of employees‟ achievements 78

3.2.5 Improving the environment and working conditions 80

3.2.6 Improving the layout and arrangement of work for employees 81

CONCLUSION 84

REFERENCES 85

APPENDIX 89

LIST OF ABBREVIATIONS

LIST OF TABLES

Table 2.1: Business result of Aviva Vietnam from 2016-2018 33

Table 2.2: Labor structure by age of Aviva Vietnam in 2018 36

Table 2.3: Labor structure by gender of Aviva Vietnam in 2018 37

Table 2.4: Labor structure by education of Aviva Vietnam in 2018 38

Table 2.5: Job evaluation table of Aviva Vietnam 54

Table 2.6: Salary table of positions for administrative and sales staff at Aviva Vietnam 55

Table 2.7: Welfare regulations of Aviva Vietnam 64 Table 2.8: Plan for organizing collective exchanges and vacation trips of Aviva Vietnam 65

LIST OF FIGURES

Figure 1.1: Maslow's Needs Theory (1943) 10

Figure 1.2: Victor Vroom's theory of expectations (1964) 14

Figure 1.3: Proposed model to measure staff satisfaction at Aviva Vietnam Life Insurance Company Limited 27

Figure 2.1: Organizational structure of Aviva Vietnam 31

Figure 2.2: Statistics of human resources of Aviva Vietnam from 2016-2018 35

Figure 2.3: Gender structure of Aviva Vietnam‟s respondents 39

Figure 2.4: Age structure of Aviva Vietnam‟s respondents 39

Figure 2.5: Education structure of Aviva Vietnam‟s respondents 40

Figure 2.6: Department/division structure of Aviva Vietnam‟s respondents 40

Figure 2.7: Seniority structure of Aviva Vietnam‟s respondents 41

Figure 2.8: Staff satisfaction about job characteristics at Aviva Vietnam 42

Figure 2.9: Staff satisfaction about training and promotion at Aviva Vietnam 43

Figure 2.10: Staff satisfaction about leader at Aviva Vietnam 48

Figure 2.11: Staff satisfaction about colleague at Aviva Vietnam 49

Figure 2.12: Staff satisfaction about salary/income at Aviva Vietnam 51

Figure 2.13: Staff satisfaction about working condition at Aviva Vietnam 58

Figure 2.14: Office of Aviva Vietnam in Ho Chi Minh headquarters 60

Figure 2.15: Office of Aviva Vietnam in Hanoi headquarters 61

Figure 2.16: Staff satisfaction about welfare at Aviva Vietnam 62

INTRODUCTION

1 Rationale

Human resources are an important factor for an organization's success The job satisfaction of employees helps them to work hard to contribute to the company Job satisfaction measurement is aimed at determining the factors impacting employee satisfaction most; thereby helping the company better understand the level of employee satisfaction Accordingly, there are more accurate decisions to improve the working environment, use the right people in the right jobs, exploit human resources in the company and bring the highest satisfaction to employees

The market economy is increasingly developing and opening up many job opportunities for employees The competition among businesses is getting higher and higher, but people are an important resource in creating competitive advantages for businesses The pressures from the economy and competitive market force businesses to pay more attention to the human element in the organization, including the problem of employee satisfaction Today's business trend most businesses take customers as business philosophy And the component in direct contact with customers, making customers happy

is none other than employees The main staff is intermediaries for businesses to satisfy customers When employees are satisfied they will have positive attitudes and behaviors to improve sales and build business reputation

For businesses, in the period of economic integration, increasingly fierce competition, human resources play an important role in creating competitive advantages Especially for businesses that are on the rise, seeking and asserting a foothold in the market

as Aviva Vietnam Life Insurance Company Limited now needs to pay attention to employee satisfaction Promoting the development of the Company today, it is very helpful

to evaluate the employee's job satisfaction with the company

This research can make initial data, as a benchmark for comparison in the process

of development of the company in the future, will increase employee satisfaction? This is the first step for the organization to increase employee loyalty towards the company Therefore, the topic "Staff satisfaction at Aviva Vietnam Life Insurance Company Limited" is conducted to understand and evaluate the current status of job satisfaction including full-time and part-time employees at Aviva Vietnam Life Insurance Company Limited, and find out the factors that influence this satisfaction; thereby helping businesses have the appropriate orientation, policies in the use of employees, in order to retain appropriate employees, long-term commitment to the company

2 Literature review

Research of Foreman Facts: Following the approach of Foreman Facts (1946), employee satisfaction is related to ten factors: (1) Skillful discipline, (2) Empathy for individual workers' issues, (3) Interesting work, (4) Interacting and sharing at work, (5) Safety labor, (6) Working conditions, (7) Salary, (8) Fully assessed work performed, (9) Personal loyalty to superiors, (10) Promotion and promotion career development

Research by Weiss, Dawis, England & Lofquist Weiss, Dawis, England & Lofquist (1967) built a MSQ (Minnesota Satisfaction Questionnaire) model with 20 items (corresponding to 20 factors) to assess the overall satisfaction level of each aspects: (1) Usability (the opportunity to do something to promote the capabilities of workers); (2) Achievements (a feeling of good accomplishment that workers gain from work); (3) Activity (ability to maintain busyness most of the time); (4) Promotion (promotion opportunity in this job); (5) Rights (opportunity to tell others what to do); (6) Company policy (the way the company sets policies and puts them into practice); (7) Compensation (wages and large amounts of work done); (8) Colleagues (the way colleagues show off to others); (9) Creativity (an opportunity to try each person's methods on his work); (10) Independence (the opportunity to work alone at work); (11) Safety (job stability); (12) Social services (opportunity to do things 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 (recognition of good work); (16) Responsibility (the freedom to use your opinion); (17) Supervision - the person (the way the leader operates the employee); (18) Supervision - technology (leadership decision-making); (19) Diversity (opportunity to do different things); (20) Working conditions

Smith et al's research: The JDI job description scale established by Smith et al in

1969 is one of the most valuable and reliable scales in theory and practice This scale consists of five factors: (1) The nature of the job, (2) Opportunity for promotion training, (3) Leadership, (4) Colleagues, (5) Salary Later, Crossman and Bassem (2003) added two more components, namely welfare and the working environment

Schemerhon's research: With his research, Schemerhon (1993) gave eight factors that affect employee satisfaction, including: (1) Job position, (2) Supervision by superiors, (3) Relationship with colleagues, (4) Content of work, (5) Remuneration, (6) Advancement, (7) Physical conditions of the working environment, (8) Organizational structure

Spector's research: The Spector's JSS (Job Satisfaction Survey) model (1997) was built to apply to businesses in the service sector, including nine factors to evaluate satisfaction and attitude, that are: (1) Salary, (2) Opportunity for promotion, (3) Working conditions, (4) Supervision, (5) Colleagues, (6) Interested in work, (7) Communication believe, (8) Surprise rewards, (9) Welfare

Research by Nasir Mehmood et al (2012): Mehmood et al (2012) conducted a study on factors affecting job satisfaction of employees in service industry in Pakistan with

a sample of 324 The independent variables selected are: Wages and benefits, Promotions, Working conditions, Autonomy Statistical results show that independent variables such as wages and benefits, promotions, working conditions and autonomy affect employees' job satisfaction In measurement, working environment factors predominate in job satisfaction

Research by Ethica Taijeen (2013): Ethica Taijeen (2013) studied factors affecting the job satisfaction of telecommunication industry in Bangladesh The research model of employee satisfaction at work includes factors: working conditions, freedom or autonomy, job security, relationship with superiors, relationship with colleagues, salary, opportunities for career advancement The results show that, in general, the factors leading to the highest satisfaction are working conditions, job security, relationships with colleagues and wages The factors that lead to the lowest satisfaction are freedom, relationships with superiors and advancement

The study "Research on employee satisfaction level for jobs at Vietnam - Korea Friendship Information Technology College" was conducted by Nguyen Thanh Hoai in

2013 The objective of this study is to identify 6 factors that affect employee satisfaction, maintain the team and contribute to the overall development of the school

Research "Research on job satisfaction of employees of Vietnam Tourism Joint Stock Company - Vitours Danang" was conducted by Phan Hoang Thuy in 2013 The objective of this study is to identify the factors that influence on the job satisfaction of employees of Vitours Company - Da Nang; develop and validate a scale of factors to suit the company's context; measure the influence of impact factors; compare job satisfaction among employees with differences in gender, age, working time, education level, job position

The study "Research on employee satisfaction level at Hai Duong Power Company" was conducted by Pham Tuan Ngoc in 2013 The objective of this study is to identify factors that affect the satisfaction of employees with the work of Hai Duong Power Company staff and assess the employee satisfaction level The author used JDI model to

design questionnaires and collect and analyze data in this study The study results showed

5 factors affecting employees' job satisfaction: job; promotion opportunities; leader; colleague; salary

Weiss and his colleagues' model and Foreman Facts are more detailed, but the weakness is too long Schemerhon and Spector have proposed tidier models, but if applying the research, it needs to be adjusted accordingly Although Smith et al's JDI model did not cover all factors that affect satisfaction and there is no overall scale, based

on this model, there have been many studies for the evaluated high results in value and reliability Later, when Crossman and Bassem added two more factors made the model more complete

In Vietnam, the JDI model is also used by many authors as the basis for employee satisfaction research, such as Tran Thi Kim Dung (2005) and colleagues by surveying about 500 employees working full-time under the theme "Needs, satisfaction of employees and level of engagement with the organization", using a scale of seven factors showing: the satisfaction level of salary with negative relationship with the level of effort of the staff This paradox is explained by businesses lacking knowledge and skills on the market salary system, not knowing how to design a system of payrolls scientifically The salary payment

is usually emotional and arbitrary without clear policy As a result, people with more efforts and contribution to the organization are dissatisfied with the current wage policy

Vu Khac Dat (2009) measured the satisfaction of office workers of Vietnam Southern Airlines using a six-factor scale; Nguyen Tran Thanh Binh (2009) conducted a study on employee satisfaction at Long An Mechanical Engineering Joint Stock Company using a six-factor scale

In addition, a number of studies of the above authors have shown that employee satisfaction at work differs due to personal factors such as age, gender, education level, seniority, position, department and income

- Systematizing the theoretical basis of staff satisfaction in enterprises;

- Analyzing and evaluating the current staff satisfaction at Aviva Vietnam Life Insurance Company Limited in the period of 2016-2018;

Proposing solutions to enhance staff satisfaction at Aviva Vietnam Life Insurance Company Limited in the coming time

+ Space: Aviva Vietnam Life Insurance Company Limited

+ Time: The thesis analyzes the current staff satisfaction at Aviva Vietnam Life Insurance Company Limited in the period of 2016-2018 and proposes the recommendations up to 2025

+ Content: The staff satisfaction at Aviva Vietnam Life Insurance Company Limited

"References" section Specifically, secondary data the author collected in this study include:

+ Books, newspapers, magazines, theses, theses, research programs have been published and published by research agencies, domestic and foreign scientists, documents posted on the Internet, related to staff satisfaction

+ Figures, data and reports related to the personnel situation; business operation results; development directions and objectives; policies, remuneration, recruitment, of Aviva Vietnam

+ Circulars, directives and decisions of the Government and the competent authorities of the State; The figures have been published by central statistics agencies, research institutes, universities, journals, specialized newspapers and scientific reports related to staff satisfaction

- Primary data

For primary data, this is the type of data collected by the questionnaire through face-to-face interviews and is used to conduct the necessary analysis to answer research questions

+ Content of survey: Satisfaction of employees at Aviva Vietnam

+ Survey subjects: Officials and employees working at Aviva Vietnam

+ Quantity: 200

+ Duration: 01 month, from October 1, 2019 - October 1, 2019

+ Survey form: Currently, the author is an employee of Aviva Vietnam Therefore, the author chooses the form of direct and email survey Survey respondents who can answer directly in the questionnaire are directly instructed by the author to fill out the survey information Officers and staff are busy, unable to answer directly, the author sends emails by completing the questionnaire For these officials and employees, after one week after sending emails, the author sends emails, Zalo messages, phone messages or calls reminds them to take time to complete the questionnaire

* Questionnaire design

+ Part I: The questionnaire is made on the basis of the selected scale and group discussion on employee satisfaction with the job The content and observed variables in the components are adjusted accordingly A 5-point Likert scale used to rank from small to large is more agreeing with the statement (1 Completely dissatisfied; 2 Dissatisfies; 3 Neutral; 4 Satisfied; 5 Completely satisfied)

The mean score follows the following scales:

1.00-1.80: Completely dissatisfied 1.81-2.60: Dissatisfied

2.61-3.40: Neutral 3.41-4.20: Satisfied 4.21-5.00: Completely disatisfied + Part II: Personal information to classify interview subjects such as gender, age, working time at hotel, working department, level, current income

* Data processing methods

After 01 month, the author collected 190/200 questionnaires, of which 190 were valid, reaching 95% 190 is the final data used by the author throughout this study

For secondary and primary data collected, the author used methods of comparison, analysis, synthesis to process and clarify these data Inside:

The comparison method is used to compare the current situation of Aviva Vietnam's staff satisfaction with other units in the same field; thereby, we learned the strengths and limitations of the remuneration and regimes for employees of Aviva Vietnam

Methods of analysis and synthesis: After collecting the data, the author proceeds to process and analyze to clarify the necessary attributes such as information of the survey subjects (age, gender, time workspaces, departments, .) and the answers obtained After analysis, the author synthesized into a system to have the most comprehensive and objective view of the meanings behind those numbers and data; thereby, helping the author analyze the current staff satisfaction

In addition, with the research issues in the thesis, the author also seeks to break down the research content to be able to carefully analyze each content, thereby better understanding their nature, advantages and limitations Then, the author generalized the issues to get the most complete and general understanding of the results collected

7 Thesis structure

In addition to Introduction, Conclusion and List of references, the thesis includes

03 chapters as follows:

Chapter 1: Theoretical background on staff satisfaction in enterprises

Chapter 2: Assessing current staff satisfaction at Aviva Vietnam Life Insurance Company Limited

Chapter 3: Proposal on solutions to improve staff satisfaction at Aviva Vietnam Life Insurance Company Limited

CHAPTER 1 THEORETICAL BACKGROUND ON STAFF SATISFACTION IN

ENTERPRISES 1.1 Theoretical background on staff satisfaction

1.1.1 Staff satisfaction

1.1.1.1 Definition

Staff satisfaction is a unified concept of researchers stemming from different perspectives, different research fields Kusku (2003) argues that staff satisfaction reflects individual needs and desires and the level of employees' perceptions of their work This definition is derived from Maslow's demand scale theory (1943), which states that employees are satisfied with low to high demand Wright and Kim (2004) also suggested that staff satisfaction is the match between what employees expect from work and what they feel from work Some other researchers think that staff satisfaction is a positive emotional state of workers with jobs that show their behaviors and beliefs (Vroom, 1964; Locke, 1976; Quinn and Staines, 1979; Weiss et al, 1967)

Ellickson and Logsdon (2002) suggest that staff satisfaction is the degree to which employees like their jobs, which are attitudes based on employees' perceptions (positive or negative) of work or their working environment

According to Quinn & Staines (1979), staff satisfaction is a positive response to work

According to Kreitner & Kinicki (2007), staff satisfaction mainly reflects the level

of an individual who loves his or her job, which is the employee‟s emotions or feelings for the job

Luddy (2005) argued that staff satisfaction is an emotional response to different aspects of work Luddy emphasized the causes of job satisfaction including job position, supervision of superiors, relationship with colleagues, job content, remuneration and rewards including: advancement, the physical condition of the working environment and organizational structure

Some other researchers claim that staff satisfaction is satisfaction with different job aspects The level of job satisfaction with employees affects employee attitudes and perceptions, typically Smith et al (JDI) study (1969 cited by Luddy, 2005) In the study of Smith et al, staff satisfaction is expressed through five main groups of factors: (1) job, (2) promotion opportunities, (3) leadership, (4) colleagues and (5) salary/income The consideration of satisfaction in many aspects of Smith's work is also recognized by many other researchers in different studies (Spector, 1997; Tran Kim Dung, 2005; Luddy, 2005)

According to Smith, Kendal and Hulin (1969), the level of satisfaction with the components or aspects of a job is the attitude that influences and acknowledges employees' different aspects of work (nature of work, training and advancement opportunities, leadership, colleagues and salaries)

There are generally two trends that define staff satisfaction (1) considering staff satisfaction as a general variable of the emotional nature (positive and negative) of workers

to work that may affect to the beliefs and behaviors of workers; (2) considering staff satisfaction under various job aspects In this study, staff satisfaction is considered under both aspects of job and overall staff satisfaction with work in general

In this research, staff satisfaction is understood as definitions by Smith, Kendal and Hulin (1969) Accordingly, staff satisfaction is “the attitude that influences and acknowledges employees' different aspects of work (nature of work, training and advancement opportunities, leadership, colleagues and salaries)”

1.1.1.2 Benefits from staff satisfaction

Human resources are a decisive factor in the development of organizations (Wheeland, 2002) To create loyalty and attachment to the organization, it is necessary to create employee satisfaction with the work they are doing Satisfying and creating loyalty will help the organization reduce the costs of hiring, training and reduce errors in the process of working from new employees Highly skilled and experienced staffs often finish their work effectively in a shorter time than new and inexperienced employees at work The influence of the quality of work and the competence of the human resources has been recognized by quality researchers Quality experts in the US such as Deming, Juran think that job satisfaction will lead to productivity and performance of the company

Japanese quality experts such as Ishikawa (1985) always emphasize the importance

of the "human element" to create a high quality working environment Ishikawa believes that effective quality control must be based on people management Research by Saari and Judge (2004) also shows that job satisfaction affects employee performance In general, such studies show that job satisfaction will make workers more loyal, less likely to quit their jobs or reduce strikes or increase union activities (Saari and Judge, 2004)

1.1.2 Theory of staff satisfaction

1.1.2.1 Maslow's Needs Theory (1943)

According to Maslow, individuals are ready to act according to the level of increasing demand According to Maslow's hierarchy of needs, there are five types of needs:

Level 1: Basic/physiological needs include needs for eating, drinking, physiologically satisfying housing, and other physical needs

Level 2: Safety needs are security needs and are protected from physical and spiritual harms as well as ensuring physical needs continue to be satisfied

Level 3: Social needs are emotional needs, acceptance and friendship

Level 4: Esteem needs are internally respected factors such as self-esteem, autonomy, achievements and externally respected factors such as status, recognition

Level 5: Self-actualization or the need to affirm yourself is to promote and achieve what you can and to satisfy yourself; needs to help them improve themselves

Figure 1.1: Maslow's Needs Theory (1943)

These five levels of human needs are described in two groups as low-level needs (level 1 and 2) and high-level needs (levels 3, 4 and 5) The difference between the two groups is based on the assumption that high-level needs are usually satisfied from the inside, while low-level needs are mostly satisfied from the outside Maslow's demand theory was widely recognized and applied in practice during the 1960s and 1970s (Robins

et al, 2002) The weakness of Maslow's theory is that it does not give empirical evidence for the theory and some studies to validate it have failed (Robins et al, 2002)

This is the theory of human needs and it is considered and applied in this study because only when the needs of employees are met, they can have staff satisfaction The needs in this theory are addressed in the form of different variables For example, physiological and safety satisfaction can be expressed in variables measuring company income and welfare Similarly, satisfaction with social needs and self-esteem are expressed

in variables that express satisfaction with relationships with superiors and colleagues, as well as a certain degree of autonomy in performing work

1.1.2.2 Two-factor theory of Herzberg (1959)

Among the content theories of satisfaction, Herzberg (1959) theory emphasizing the motivator-hygiene factors sought to explain satisfaction and motivation in the organization The theory focuses on outcomes of satisfaction and dissatisfaction The theory further found that certain aspects of a job cause satisfaction and therefore motivation, but certain aspects caused job dissatisfaction Herzberg explained that the factors that lead to satisfaction or to dissatisfaction are different Accordingly, he states that „the opposite of job satisfaction is not job dissatisfaction but, rather, no satisfaction; and the opposite of job dissatisfaction is not job satisfaction but no satisfaction‟ (Herzberg, 2003.91) This theory states that job satisfaction and dissatisfaction is a product of different factors – motivation and hygiene respectively Motivation is seen as an inner force that drives individuals to attain personal and organizational goals Motivational factors are those aspects of the job that make people want to perform and provide people with satisfaction Hygiene factors include aspects of the working environment like working conditions, interpersonal matters, organizational policies and so on (Hackman & Oldham, 1976) Factors that relate to job satisfaction are therefore called satisfiers or motivators According to Weir (1976) and Syptak, Marsland & Ulmer (1999), the following factors stood out as „strong determinants of job satisfaction‟

Achievement: This requires helping and placing employees in position that use their talents and not to set up for failure It is achieved by setting clear, achievable goals and standards for each position, and making sure employees know what those goals and strategies are Individuals should also receive regular, timely feedback on how they are doing and feel they are adequately challenged in their jobs

Recognition: Refers to the honour, favourable note or attention given to an employee for a „job well done‟ or an outstanding behaviour Individuals at all levels in the organization want to be recognized for their achievement on the job The individual‟s success does not have to be monumental before they deserve recognition Employees should be acknowledged for doing something well immediately after their good work Publicly appreciating them for finding solutions to a problem, writing a note of praise, establishing a formal recognition program like „employee of the month or year‟, making periodic reports directly available to the employees themselves rather than to management, are some of the ways of recognizing employees

Work itself: This involves helping employees believe that the task they are doing is important and meaningful Setting goals and reminding and emphasizing that their efforts lead to and contribute to positive outcomes and goal accomplishment is crucial Success stories and cases should be shared on how an employee‟s actions made a real difference in the organization Also show employees how their work is essential to the overall processes that make the practice succeed Unnecessary tasks can be eliminated or streamlined to bring about greater efficiency in the organization

Responsibility: Responsibility is taken action for ones actions Granting additional authority to employees in their activity, giving them enough job freedom and power so that they feel they „own‟ the results are ways of giving them responsibility As employees grow, they can be provided opportunities for added responsibility by adding challenging and meaningful work

Opportunity for advancement or promotion: This involves electing employees from the present job or position to a higher one or level in the organization If possible permit and support them to acquire higher certificates so that they could become experts themselves and make them more valuable to the practice and more fulfilled individuals Factors that relate to job dissatisfaction (dissatisfiers or hygiene factors) as explained by Herzberg are:

Pay (salary): Organizations, they say, „pay get what they pay for‟ Salary is a contractual agreement between the employer and the employee It not a motivator for them but do want to be paid fairly and when due If an employee perceives that he is not fairly compensated, he will not be happy and so slow the pace of performance Comparable salaries and benefits, clear policies relating to salaries, increments, bonuses and benefits must be clearly indicated to avoid dissatisfaction

Supervision: This involves technical and general supervision in the organization Wise decisions should be taken when it comes to appointing someone to the role of supervising This role is difficult and requires good leadership skills and the ability to treat all employees fairly There should also be positive feedback and a set means of evaluating

or appraising employees

Working conditions: The environment under which employees work has a tremendous effect on their level of pride for themselves and for the work they do The provision of modern equipment and facilities, quality furniture, well ventilated offices, well-spaced offices, secured, well-spaced staff quarters, and so on are some of the conditions that are required to prevent job dissatisfaction in the organization

Company policies, administration and procedures: An organization‟s policies, administration and procedures can be a great source of frustration for employees if the policies and procedures are unclear or unnecessary or if those to follow are selected A policy permits an employee to use his discretion and initiatives in the discharge of his duties Policies may not make employees satisfied and motivated but it can decrease dissatisfaction by making policies fair and applicable to all Policy issues should be documented (manual) and distributed to employees, their inputs should be solicited for while comparing policies to those of similar practices Policies should also be reviewed from time to time Helping employees to use their initiatives can also go a long way in preventing dissatisfaction

Interpersonal relationships: Relating well with peers, managers and subordinates encourages job dissatisfaction Part of the satisfaction in employment contract is the social contact it brings to employees Reasonable time should be given for socializing This will help to develop a sense of teamwork and at the same time cracking down on rudeness, difficult behaviour and offensive comments People should be encouraged to live in harmony irrespective of cultural and other diversities

Status: This is a person‟s social rank in a group, which often is determined by a person‟s characteristics, in addition to the person‟s formal position When status differ, it may be difficult to communicate effectively in the organization To reduce dissatisfaction, managers should use both verbal and nonverbal forms of communications to pass messages

to employees with the highest level of probability that the information circulated will be intact The issue of status should also be diluted to avoid a situation whereby those with higher status will not influence members having lower status Individual status should not

be a yard stick for satisfaction

Security: Security in this case refers to job security - freedom from threats of layoffs, frequent queries, harassment, discrimination, bullying and so on When there is no job security, an employee‟s needs for higher growth will be blocked If he works hard but security does not return, he will seek to fulfill his needs elsewhere or burn out While motivators are part of the job content and relate to what people actually do in their work hygiene or dissatisfies are often associated with job context: associated more to the work setting than the nature of work itself

1.1.2.3 Victor Vroom's theory of expectations (1964)

Vroom argued that human behavior and motivation are not necessarily determined

by reality, but rather by people's perceptions of their future expectations Unlike Maslow

and Herzberg, Vroom does not focus on human needs but on results This theory revolves around three basic concepts (Kreitner & Kinicki, 2007) or three relationships (Robbins, 2002):

- Expectancy: is the belief that effort will lead to good results This concept is expressed through the relationship between effort and performance

- Instrumentality: is the belief that good results will lead to worthy rewards This concept is expressed through the relationship between performance and outcome / rewards

- Valence: is the importance level of the reward for the person doing the job This concept is expressed through the relationship between rewards and personal goals

Figure 1.2: Victor Vroom's theory of expectations (1964)

Vroom thinks that employees are only encouraged when their awareness of all three concepts or relationships is positive In other words, when they believe that their effort will produce better results, which will result in a worthy reward and that the reward is meaningful and appropriate to their individual goals

Because this theory is based on the perceptions of workers, it is possible to work in the same company and the same position, but one person is motivated to work and the other is not due Their consciousness on the above concepts is different

Applying this theory to the research topic of this thesis, we see that in order for employees to be motivated toward a certain goal (of course, this goal is associated with the goal of the organization) we must create awareness in such worker that their efforts will bring the rewards they desire In order to gain that knowledge, we must first create satisfaction in their current jobs, make them satisfied with the current working environment, and with the support of their superiors and colleagues, thereby making them more confident in their efforts that will lead to the results and rewards they expect Satisfaction with fairness and reward will also help them believe that the results they achieve will surely receive recognition and reward from the company

1.1.2.4 Adam's theory of justice (1963)

Adam's theory of justice (1963) states that people value equity by the ratio of input

to output Inputs for a job include: personal experience, effort and competence The output

of the job includes wages, recognition, promotions and allowances Discontent arises when people feel that the results received are not commensurate when compared to what others receive

The theory of equity implies that when employees visualize injustice, they may have one or several of the following five options:

- Distorting the inputs or outputs of yourself or others

- Behaving in a way that makes others change their inputs or outputs

- Behaving in a way that changes their own inputs or outputs

- Choosing another comparisoncriterion to compare

- Quitting the job

Staff satisfaction is greatly influenced by relative rewards as well as absolute rewards When employees perceive injustice, they will take actions to correct this situation The result may be higher or lower productivity, better quality or diminishment, increased absenteeism, or voluntary termination

The theory of fairness requires managers to pay attention to the factors that influence workers' perceptions of fairness and thereby influence employees to have a right understanding of fairness

1.1.2.5 McClelland's Human Motivation Theory (1988)

David Mc Clelland (cited by Robbins, 2002) argued that people have three basic needs: the need for achievement, the need for alliances and the need for power Of which:

A desire to fulfill personal responsibilities

Trends set high goals for themselves

High demand for specific, immediate feedback

Quickly, soon to master their work

Demand for power is the need to control and influence others and their working environment Researchers have shown that people with strong power needs and a need for achievements tend to become administrators Some also argue that successful managers have the greatest need for power, followed by the need for achievement and, ultimately, the need for alliances

1.1.2.6 Affective Event Theory

According to Thompson & Phua (2001) the affective event theory was developed

by Psychologist Howard M Weiss and Russell Cropanzano to explain how emotions and moods influence job satisfaction The theory explains the linkages between employees‟ internal influences - cognitions, emotions, mental states etc and their reactions to incidents that occur in their work environment that affect their performance, organizational commitment, and job satisfaction (Wegge, van Dick, Fisher, West & Dawson, 2006) The theory further proposes that affective work behaviours are explained by employee mood and emotions, while cognitive-based behaviours are the best predictors of job satisfaction

In addition, the affective events theory emphasized that positive-inducing and inducing emotional incidents at work are distinguishable and have a significant psychological impact upon workers‟ job satisfaction This resulted in lasting internal and external affective reactions exhibited through job performance, job satisfaction and organizational commitment

negative-Rolland & De Fruyt (2003) research findings on personality in support of affective events theory shows that there are a number of factors that influence the theory These are: consciousness, agreeableness, neuroticism, openness to experience, and extraversion Finally performance feedback has an important influence on employee affect Regular reviews should be done on regular basis in both medium and large organizations The type

of feedback on performance provided by managers can affect employee performance and job satisfaction (Fisher & Ashkanasy, 2000)

Closely related to this theory is Locke‟s (1976) Range of Affect Theory The major premise of this theory is that satisfaction is determined by a discrepancy between what an employee wants in a job what he has in a job The theory further states that how much one valued a given facet of work (for example, the degree of autonomy) moderates how satisfied or dissatisfied one becomes when expectations are or not met When an employee values a particular facet of a job, his satisfaction is more greatly impacted both positively (when expectations are met) negatively (when expectations are not met), compared to one

who does not value that facet However, too much of a particular facet will produce stronger feelings of dissatisfaction the more a worker values that facet (Spector, 1997)

1.1.2.7 Equity theory

Equity theory, as reviewed by Walster, Berscheid & Walster (1973) shows how a person perceives fairness in regard to social relationships The theory presupposes that during a social exchange, a person identifies the amount of input gained from a relationship compared to the output, as well as how much effort another person‟s puts forth Based on Adam (1965) theory, Huseman, Hatfield & Miles (1987) further suggest that if an employee thinks there is an inequity between two social groups or individuals, the employee is likely to be distressed or dissatisfied because the input and the output are not equal Inputs encompass the quality and quantity of the employee‟s contributions to his

or her work Examples of inputs include: time, effort, hard work, commitment, ability, adaptability, flexibility, tolerance, determination, enthusiasm, personal sacrifice, trust in superiors, support from co-workers and colleagues and skills Output (outcomes) on the other hand is the positive and negative consequences that an individual (employee) perceives a participant has incurred as a consequence of his relationship with another Examples of outputs include job security, esteem, salary, employee benefits, expenses, recognition, reputation, responsibilities, and sense of achievement, praise, thanks, and stimuli and so on

The major concern in equity theory is about payment and therefore the cause of concern of equity or inequity in most cases in organizations In any position in the organization, an employee wants to feel that their contributions and work performance are being rewarded with their pay If an employee feels underpaid, he would be dissatisfied and therefore becomes hostile towards the organization and co-workers which may ultimately result to lack of satisfaction and low performance Equity is multidimensional in nature For example, it does not depend on our input-to-output alone It depends on people‟s comparison between own input-output ratio and the ratio of others Since equity is all about perception, employees form perceptions on what constitute a fair (balance or trade) of inputs and outputs by comparing their situation with other „referents‟ in the market place as they see it

From this comparison, when they perceive that their inputs are fairly rewarded by outputs, then they are satisfied, happier and more motivated in their work They are de-motivated to their job and the organization when they perceive that their ratio of inputs-outputs is less beneficial than the ratio enjoyed by referent others (Ball, 2014) According

to Adams (1963), when a person becomes aware of inequity, it causes a reaction in them, potentially some form of tension that is „proportional to the magnitude of inequity present‟

It is because of this tension that an individual might react in a way that reduces the tension

in him Equity theory further identifies four mechanisms for job satisfaction (dissatisfaction) as follows:

a Employees seek to maximize their outcomes (rewards minus outcomes)

b Groups can maximize collective rewards by developing accepted systems for equitably apportioning rewards and costs among members That is, systems of equity will evolve within groups, and members will attempt to induce other members to accept and adhere to these systems

c When employees find themselves participating in inequitable relationships, they become dissatisfied or distressed The theory explains that in this situation, both the person who gets „too much‟ and the person who gets „too little‟ feel dissatisfied The employee who gets too much may feel ashamed or guilt and the employee who gets too little may feel angry or humiliated

d Employees who perceive that they are in an inequitable relationship attempts to eliminate their dissatisfaction by restoring equity This could be done by either by distorting inputs, outputs, or leaving the organization

Thus the theory has wide-reaching implications for employee morale, efficiency, performance, productivity and turnover It also shows why employees see themselves the way they are treated in terms of their surrounding environment, teams, systems, etc collectively and not in isolation and so they should be managed and treated accordingly In addition, the totals of employee inputs-outputs must be measured including their personal values Schultz & Schultz (2010) further extended equity theory to include the behavioral responses patterns to situations of equity or inequity These response patterns are: benevolent (satisfied when they are under paid compared with co-workers), equity sensitive (believe everyone should be fairly rewarded) and entitled (employees believe that everything they receive is their just due)

1.1.2.8 Job characteristics theory

Job characteristic theory (Hackman & Oldham 1976), Schermerhorn, Jr (1984), Hellriegel, Jackson & Slocum (1999) and Dugguh (2008) propose a framework to study how particular job characteristics affect job outcomes and job satisfaction The framework states that there are a number of core job characteristics that impact on job outcomes These are: Skill Variety (the degree to which a job requires a variety of different activities

in carrying out the work and involves the use of different skills and talents of the individual), Task Identity (the degree to which the job requires completion of a „whole‟ and identifiable piece of work – that is, one that involves doing a job from beginning to end with a visible outcome), Task Significance (the degree to which the job has substantial impact on the lives or work of people in other departments in the organization or in the external environment), Job Autonomy (the degree to which the job gives the employee substantial freedom, independence, and discretion in scheduling the work and in determining the procedures to be used in carrying it out) and Job Feedback (the degree to which carrying out the work activities required by the job results in the individual obtaining direct and clear information on the results of his performance)

These core job characteristics impacts three critical psychological states - experienced meaningfulness, experienced responsibility for outcomes of the work and knowledge of actual results of the work activities which in turn influence work outcomes (job satisfaction, absenteeism, work satisfaction and so on) The theory also recognizes that the core characteristics do not affect all employees in the same way They affect more those in growth-need strength, that is, the employee‟s desire to achieve a sense of psychological growth in his work

Based on the preceding, a Motivating Potential Score (MPS) - an index of how likely a job is to affect an employee‟s attitudes and behaviours - can be calculated using the formula:

Where: MPS = Motivator Potential Score

affected and the likelihood of negative outcomes (absenteeism and turnover) will be reduced

1.2 Factors affecting on staff satisfaction

Factors affecting employee job satisfaction are described by JDI These factors include job characteristics, training and promotion, leadership, colleagues, salary/income, working conditions Only when such factors are met, employees feel satisfied and their satisfaction with the work will be improved

1.2.1 Job characteristics

Employees‟ job satisfaction depends on satisfaction with the job components, such

as the nature of the job (Loke, 1995 cited Luddy, 2005) The suitability of the job with the employee is manifest through many aspects of the nature of the job such as whether the job

is suitable to the competence and expertise of the employee, the employee clearly understands the work he or she does, the job provides the employees with dedication and creativity, whether the work brings challenges and promote the competencies of individual workers Many empirical studies show that job factors affect job satisfaction of workers (Luddy, 2005; Ha Nam Khanh Giao, 2011; Chau Van Toan, 2009)

1.2.2 Training and promotion

Some researchers believe that promotion and training are closely related to job satisfaction of workers (Pergamit & Veum 1999; Peterson et al., 2003; Sclafane, 1999 cited

by Luddy, 2005) This view is supported by the study of Ellickson and Logsdon (2002) when researching city government employees shows that promotion and training are said

to have a positive effect on job satisfaction However, Kreitner and Kinicki (2001), argued that positive relationships between development and training opportunities and job satisfaction depend on employees' perceived fairness

In Vietnam, studies of Tran Kim Dung (2005) and Chau Van Toan (2009) among office workers in Ho Chi Minh City also showed that promotion and training have a positive effect on job satisfaction The study of Ha Nam Khanh Giao (2011) for employees working in the field of beverage production (Tan Hiep Phat Group) also showed that the opportunity for promotion has an impact on employee satisfaction In studies in Vietnam (for example: Tran Kim Dung, 2005; Ha Nam Khanh Giao, 2011), the promotion and training are considered in the following aspects: professional training, opportunity to develop personal development, opportunities for capable people, the fairness of personnel development policies, creating opportunities to improve the professional skills of workers

According to Nguyen Van Diem and Nguyen Ngoc Quan (2007), “training and promotion are activities to maintain and improve the quality of the organization's human resources, which are the deciding conditions for the organizations can stand firm in a competitive environment”

Personal training and promotion will help employees improve their professional skills and meet the needs of self-improvement as Maslow's demand theory In current conditions, training and promotion is an important factor for the organization's existence and development When trained workers will be capable, highly qualified to quickly access

to the changes of the environment, quickly identify goals and perform work with greater efficiency Training not only enhances the knowledge and qualifications of workers themselves, it is also a factor that promotes the development of the organization because the quality of human resources is the factor that makes efficiency at work, An organization with a high quality workforce will help it create a huge competitive advantage

Therefore, businesses need to focus on creating conditions for training, developing, improving knowledge and skills for employees, developing training programs and developing high quality in accordance with their needs and aspirations of workers, helping them to fill the gaps in knowledge and skills In addition, businesses can also create conditions for workers to learn by providing funding, flexible working time, opportunities for self-study, self-improvement and career development This is also the satisfaction to help employees stick with the organization and ready to take on new job opportunities

1.2.3 Leadership

Leadership is understood as the direct superior of the employee Leadership brings satisfaction to workers through the creation of fair treatment, showing concern for subordinates, competence, vision and ability to manage and supporting employees in work (Robins et al, 2002) Leadership plays an important role between satisfying the employees' work, which comes from the support and guidance of the commander and the related duties

of the employee According to Ramsey (1997, cited by Luddy, 2005), leadership affects high or low morale Attitudes and behaviors of leaders towards employees can also be factors affecting the cooperative or non-cooperative behavior of workers Leaders with a democratic style, creating a lot of sympathy from the workers can promote learning and reduce job discontent when encouraged at the right time Many empirical studies show a positive relationship between leadership and job satisfaction (Koustelios, 2001; Peterson, Puia & Suess, 2003 cited by Luddy, 2005; Tran Kim Dung, 2005; Ha Nam Khanh Giao, 2011)

1.2.4 Colleagues

Colleagues are people who work in the organization or closer to people who work

in the same department together The friendly and supportive co-worker relationship contributes to job satisfaction of workers (Johns, 1996; Kreitner & Kinicki in 2001 cited by Luddy, 2005) Colleague factors are considered good when in the organization of workers are willing to help each other, work effectively in coordination, stress-free relationships, friendly working environment and relationships between the individuals The relationship between the factor of colleagues and job satisfaction is verified by many different studies

A Madison study (2000 cited by Luddy, 2005) on 21,000 women found that jobs that require rigor without the support of colleagues are more likely to be unsatisfied Various empirical studies also show that the positive relationship of being supported by colleagues will create customer satisfaction (Luddy, 2005; Chau Van Toan, 2009; Ha Nam Khanh Giao, 2011; Pham Van Manh, 2012)

1.2.5 Salary/ income

The Maslow's Needs Theory has shown that the first, most basic need is physiological needs This means that workers pay much attention to income to ensure their lives and their families, to reproduce labor production Herzberg's theory also shows that group wages affect workers' satisfaction to work Salary not only reflects the value of work, but also reflects the value and status of employees in the family, in the organization and society

Article 90 of the Labor Code 2020 stipulates, “salary is an amount of money an employer pays to an employee to perform the work as agreed" Thus, the salary is the amount that the employee receives from the employer, based on the basis of the work and the efficiency of performing the job agreed upon by the employer

According to the International Labor Organization (ILO), “wages are wages or income, regardless of their name or calculation, but there are monetary expressions which are determined by the agreement between the users and labor, or by national laws or regulations, paid by the employer to employees in accordance with a written or oral labor contract, for a work performed or to be done, or for services that have been or will be done”

Salary is the amount of money the employee earns upon completing the job Some researchers believe that there is little empirical evidence that wages affect job satisfaction Workers may have high income levels but they are still not satisfied with a job that is inappropriate or incapable of working (Bassett, 1994 cited by Luddy, 2005) However,

another study by Oshagbemi (2000) shows the relationship between wages and job satisfaction with statistical analysis The salary factor in this study is considered in terms of the match between the salary and the contribution of the employee, the employee can live

on the current income, other income/ salaries such as bonuses and allowances are equally distributed Also consider the aspect of comparison with the income of other units Although there are some researchers who think that there is little evidence that salary or income affects job satisfaction However, in developing countries such as Vietnam, wages

or income is still an important factor affecting job satisfaction (Tran Kim Dung, 2005; Pham Van Manh, 2012)

Article 94 of the Labor Code stipulates the form of payment as follows:

“Employers have the right to choose the form of payment based on time, product or fixed salary The selected form of payment must be maintained for a certain period of time, in case of change in the form of payment, the employer must notify the employee at least 10 days in advance" Whereas:

+ Salary payment based on time: is the salary paid to employees based on their technical qualifications and working time Salary in this form is determined by labor productivity

+ Salary payment by product: is a form of payment based on the quantity and quality of products produced by a person and the unit price of that product This form of payment may be unrestricted direct wages, salaries calculated on indirect products, cumulative product salaries, prize-based product salaries, and award-based contracted pay

+ Salary payment: is a form of payment based on the workload assigned in accordance with the quality

Thus, wages and income only become the satisfaction when it meets the material needs of workers They are assured of working with that income and the payment of wages must also follow certain principles such as:

+ Ensuring compliance with state salary regulations, which is, the salary must not

be lower than the regional minimum wage In addition, employees must be entitled to allowances, overtime pay, wages for working days off, holidays, Tet and other regimes as prescribed by the state

+ Salary is determined by agreement between the employee and the employer based

on the job position, job complexity and scope of job

JDI has become very popular to measure job satisfaction, as does this study The author will examine the influence of factors in the JDI model with overall job satisfaction

Specifically, we will consider how the effects of 5 factors (1) job, (2) promotion and training, (3) leadership, (4) colleagues and (5) salary affect to the job satisfaction level of employees who are working at the company

In terms of reward, according to Article 103 of the 2012 Labor Code, “a bonus is an amount that an employer gives to an employee based on the annual business results and the level of work done by the employee” Accordingly, bonuses are a form of material stimulation that has a very positive effect on employees in striving to perform better jobs

Article 39 of Decree 71/2013/ND-CP stipulates the purpose of using funds of enterprises, including regulations of reward fund for:

+ Year-end and regular bonuses based on labor productivity and achievements of laborers at the enterprise

+ Bonus unexpected individuals, collectives

+ Rewarding individuals and units that contribute greatly to production and business activities

There are many ways to calculate rewards that businesses are applying, in which bonuses are usually determined by the percentage of benefits that employees bring to businesses

+ Reward for productivity and quality: applied when employees perform better than the average level in terms of quantity and quality of products and services

+ Savings bonus: applied when employees save materials, materials, help reduce prices of finished products and services while ensuring quality as required

+ Incentive bonus: applied when workers have initiatives, technical improvements, find new ways to improve work efficiency, reduce costs or improve the quality of products and services

+ Bonuses based on the overall business results of the enterprise: applied when the enterprise makes a profit At that time, the enterprise will distribute a part of the profit to the employee as a bonus

+ Bonuses when employees find suppliers, consumers, sign new contracts or have other activities to improve profits for businesses

+ Bonus for workday guarantee: when employees work with a number of workdays exceeding the prescribed level of the enterprise

+ Reward for loyalty and dedication to enterprises: applied when employees have a service period in the enterprise exceeding a certain time, such as over 20 years or when employees have clear activities help increase reputation for businesses

Thus, bonuses and rewards associated with labor results have a direct impact on employee satisfaction The higher the bonus gets, the higher the satisfaction for work gets The form of reward through bonuses and rewards not only satisfies a part of the employees 'material needs but also stimulates the employees' spirit, demonstrates the recognition of capacity and contributions of businesses with workers Therefore, when developing reward and assessment regimes and regulations, leaders need to ensure that regulations are clear, coherent, appropriate and attached to specific reward criteria, ensuring fairness between employees in the enterprise and motivate employees to try at work

1.2.6 Working condition

Working conditions are places where employees are exposed daily, thus having a great influence on the employees' ability to work, health, working attitudes and work efficiency At work, every employee desires to work in a business with a happy working environment, always helping each other Unreasonable working and resting regime will greatly affect the working ability of employees Favorable working environment, colleagues respect each other, often help each other, superior, friendly relations will create a comfortable working mentality for each employee to strive to create conditions to improve working efficiency

The organization also needs a job security plan for its workers When having full employment, workers will have a stable income, creating joy and excitement for individuals and the collective labor If the unstable job lacks employment, the unstable income also makes the employee not comfortable with the job, not interested in such a job, which reduces the effectiveness of creating staff satisfaction

The living conditions of workers include working and resting regimes, reducing labor accidents and increasing productivity and product quality, which in turn will affect staff satisfaction, creating comfort in job, workers will feel more interested in the job, with the organization

Enterprises also need to create favorable working conditions for workers through the arrangement of equipment, tools, working tools, lighting, hygiene, because these factors have a great influence to the working mood of workers Enterprises should pay attention to eliminating obstacles in the working process of workers, providing fully necessary conditions to create conditions for employees to fulfill their assigned tasks The appropriate and convenient physical environment will surely create conditions for employees to increase staff satisfaction, minimize labor accidents and ensure the highest productivity

1.2.7 Welfare

Welfare or benefit is an indirect remuneration paid in the form of workers' life support In addition to salaries and bonuses, benefits such as insurance, lunch support, shift meals, transportation assistance, medical expenses, training and retraining expenses, etc Employees partly satisfy material needs and feel secure to work

There are two types of benefits:

+ Compulsory benefits: These are benefits that the state requires businesses and organizations to participate for workers In Vietnam, compulsory benefits include 05 social insurance benefits for employees, which is sickness allowance, maternity allowance, labor accident or occupational disease allowance, pension regime, death regime

+ Voluntary benefits are regimes that businesses make based on their financial situation, including insurance benefits: health insurance, life insurance, disability insurance dynamic; guaranteed benefits: income security, pension security; payments for non-working hours; benefits for flexible schedules; mid-shift meal allowances, overtime meals, overtime allowances;

Other welfare regimes include birthday, funerals, weddings, sickness, traveling expenses when returning home; equipping labor protection equipment fully and strictly according to the provisions of law; study promotion gifts for children at the end of the school year, on occasions of International Children's Day, Mid-Autumn Festival

The provision of benefits to help ensure the lives of workers such as housing assistance, car purchase, medical treatment, so they feel secure to work Welfare also helps employees improve their material and spiritual life and helps increase the company's reputation and help employees feel more excited at work Thus, welfare is also an effective tool to create staff satisfaction for employees in the enterprise

1.3 Research model

Most studies have found that JDI factors reflect employee job satisfaction: salary/income, training – promotions, leadership, colleagues and job characteristics In addition, according to the research of Tran Kim Dung (2005), it conducted research to measure job satisfaction by using the JDI scale and Two-factor theory of Herzberg (1959) and in consultation with employees The author has included 02 elements, welfare and working conditions So the research model consists of 07 factors: salary/income, training - promotions, leadership, colleagues, job characteristics, working conditions and welfare

Figure 1.3: Proposed model to measure staff satisfaction at Aviva Vietnam Life

Insurance Company Limited

Source: The author’s design

Of which:

+ Income/ salary is the amount that individuals, organizations, regions, countries, etc from jobs, from investing, from doing business, etc In the semantic of this research, income is the amount of money an individual earns from a public job for a certain business

or organization, this income does not include the income when they do another job (not related to the businesses or organizations they are employed in) Accordingly, this income will include basic salaries, benefits (if any), bonuses including periodic and non-periodic rewards, commissions (if any) and benefits equal to other money arises directly from the current main job

+ Training is the process of learning the skills needed to perform a specific job Promotion is moving to a position or a more important job in a company Training in this topic is grouped with advancement because the training is often aimed at the end is to promote or improve the capacity and efficiency of employees

Training was appreciated by Schmidt (2007) for its importance in the company The results of his study have shown that job satisfaction with job is significantly related to job satisfaction in general In this topic, we will examine the satisfaction level of training

Staff satisfaction at Aviva Vietnam Life Insurance

Working conditions

in the work of employees in aspects such as training to have enough skills to successfully complete the job, training to improve knowledge and skills, training programs applied by the company

+ Leader is a person in a higher position in a company or an organization In the semantic of this topic, the higher level is the direct manager of the junior staff

Job satisfaction comes from the elements of the relationship between superiors and their subordinates including ease of communication with superiors (Ehlers, 2003), support when needed (Wesley & Muthuswamy, 2008) and the care of superiors (Bellingham, 2004), the protection of employees when necessary (Linden & Maslyn, 1998, cited by Dionne, 2000), the power of superiors, the freedom to perform public duties affairs of subordinates (Weiss et al, 1967), recognition of employee contributions, and fair treatment

of subordinates (Warren, 2008)

+ Colleague is a friend who works together In the semantics of this topic, colleagues are people working in the same business with you, whom you often exchange and share with each other about work

For the majority of jobs, the time each employee works with his or her colleagues is more than the time he or she works with his superiors Therefore, as well as the relationship with superiors, the relationship of employees with colleagues also affects job satisfaction Similar to the relationship with superiors, employees need to get the support

of colleagues when needed, find the friendly comfort when working with colleagues (Hill, 2008) At the same time, employees must find in their colleagues the dedication to the work to achieve the best results (Bellingham, 2004) Finally, colleagues need to be trustworthy (Chami & Fullenkamp 2002)

+ According to the job characteristics model of R Hackman and G Oldman (1974), a job will bring employees general satisfaction and create good job efficiency if the design of the job meets the following characteristics such as using different skills, the employees are well aware of the job ends and the jobs of a certain importance to the overall production and business activities of the enterprise; such work allows employees to perform certain rights to complete their work and employees will be responsible for their decisions; the work must have feedback mechanism evaluation of superiors for what employees have done to learn from experience for the next time In addition, in order to achieve the satisfaction of employees, employees need to work in accordance with their competence (Weiss et al., 1967; Bellingham, 2004)

+ Working condition is the status of the place where the employee works For this study, working conditions are the factors that affect the health and convenience of workers when working, including appropriate working time (Skalli et al 2007), security safety at work (Durst, 1997), equipped with the equipment needed for the job (Bellingham, 2004) and time spent traveling from home to the company (Isacsson, 2008)

+ Welfare is the benefits a person gets from his or her company in addition to the money he or she earns According to Artz (2008), welfare has an important role in determining job satisfaction According to him, welfare affects job satisfaction First, welfare is a component of the compensation the company pays its employees, which in turn affects job satisfaction Second, welfare sometimes works as a substitute for wages

In Vietnam, the benefits that employees are most concerned about include social insurance, health insurance, statutory leave, sick leave and private work when needed, which are legally protected by trade unions of employees Moreover, the employees are entitled to annual travel, stable employment in the company (without fear of losing their jobs), house purchase assistance, right to purchase company shares at preferential prices, etc

CHAPTER 2 ASSESSING CURRENT STAFF SATISFACTION AT AVIVA

VIETNAM LIFE INSURANCE COMPANY LIMITED 2.1 Overview about Aviva Vietnam Life Insurance Company Limited

2.1.1 Establishment and development

VietinBank Aviva Life Insurance Co., Ltd (VietinAviva) was established and operated by the Ministry of Finance from July 29, 2011 As a joint venture between Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank) - one of the largest commercial banks in Vietnam and Aviva Insurance Group - the largest insurance group in the UK, VietinAviva links the two leading financial institutions to bring the International quality insurance products and services for the people of Vietnam

On July 17, 2017, VietinAviva was officially renamed Aviva Vietnam Life Insurance Company Limited (Aviva Vietnam) under the adjustment license No 64/GPDC4/KDBH approved by the Ministry of Finance Besides changing the name, Aviva Vietnam also received approval from the Ministry of Finance to increase its charter capital from VND 800 billion to VND 2,557 billion (as of December 31, 2018)

Aviva Vietnam's goal is to become one of the most modern digital integrated insurance companies in Vietnam through the application of advanced technology from Aviva Group to simplify operating and customer care service to bring the best convenience and experience to customers when participating in insurance products with the company

By serving customers well, Aviva Group in general and Aviva Vietnam in particular are gradually building a strong business, where every employee is proud to work here and contribute positively for the society

Functions and duties of the company are to trade life insurance; make precautions, limiting risks and losses; manage fund and invest in capital and guarantees tax obligations

to the State

2.1.2 Organizational structure of Aviva Vietnam Life Insurance Company Limited

The organizational structure of Aviva Vietnam is as follows: