Determinants of workker''''s job satisfaction and effectiveness of union in garment industry in Vietnam

The result showed that indirect compensation, working environment and relationship with supervisor factors effect to worker‟s relationship.. Among three effect factors, relationship with

NGUYEN THI TRUONG LE

DETERMINANTS OF WORKER’S JOB

SATISFACTION AND EFFECTIVENESS OF UNION IN GARMENT INDUSTRY IN VIET NAM

MASTER OF BUSINESS

SUPERVISORS: DR NGUYEN QUYNH MAI

Ho Chi Minh City – Year 2014

Last, ISB staff did helped, supported with their best for convenience of MBUS 2012

I appreciate very much for their contribution to my present result

ABSTRACT

Garment industry in Vietnam has developed impressively and has quite highly demanded in employing labor force Human resources management in this field is very important to maintain the stable producing It contains many characteristics which may impact to the workers to feel more satisfaction and perform their job better Keep the staff satisfy to work better, more efficient is always one of business goals, especially in this special industry This study aims to investigate which factor affecting to worker‟s job satisfaction and how the effective of union effect to worker‟s job satisfaction through these factors The result showed that indirect compensation, working environment and relationship with supervisor factors effect to worker‟s relationship Among three effect factors, relationship with the supervisor has the most important to job satisfaction and following is working environment and indirect compensation The additional finding in this research is effectiveness of union has a moderating affect to the relationship between job satisfaction and independent variables included indirect compensation and Working Environment This finding will help

to strengthen the effectiveness of Union to structure and operate effectively to satisfy their union members

Contents

ACKNOWLEDGE 1

ABSTRACT 2

CHAPTER 1 INTRODUCTION 2

1.1 Research background 2

1.2 Research problem: 3

1.3 Research objective 4

1.4 Scope: 4

1.5 Significant of study (Research contribution) 5

1.6 Organization (Structure) 5

CHAPTER 2: LITERATURE REVIEW 6

2.1 Concept and Definition: 6

2.1.1 Job satisfaction 6

2.1.2 Direct financial compensation 6

2.1.3 Indirect compensation: 7

2.1.4 Working environment 8

2.1.5 Feedback 9

2.1.6 Relationship with supervisor 9

2.1.7 Union 10

2.2 Model and Theories: 10

2.2.1 Affect theory 10

2.2.2 Equity theory 11

2.2.3 Two-factor theory (motivator-hygiene theory) 12

2.2.4 Job characteristics model 13

2.3 Previous researches about job satisfaction for worker in garment industry 13

2.4 Conceptual model frame work and Hypothesis 14

2.4.1 Model frame: 14

2.4.2 Hypothesis 15

CHAPTER 3: RESEARCH METHOD 18

3.1 Research Design: 18

3.2 Measurement and Questionnaire design: 18

3.3 Data collection method: 21

3 4 Data Analysis Method: 21

3.4.1 Descriptive statistics of sample: 21

3.4.2 Reliability test: 21

3.4.3 Exploratory Factor Analysis (EFA) 22

3.4.4 Regression Analysis 23

3.4.5 Process Analysis 23

CHAPTER 4 DATA ANALYSIS 24

4.1 Descriptive statistics of sample 24

4.1.1 Final sample 24

4.1.2 Demographic Statistics 24

4.2 The construct measurement scale 26

4.2.1 Cronbach’s Alpha results of each measurement 26

4.2.2 Exploratory Factor Analysis 33

4.3.Adjustment of hypotheses and research model 36

4.4 Regression Analysis: 37

4.4.1 Pearson Correlation Coefficient 37

4.4.2 Regression Analysis 38

4.4.3 Process Analysis in SPSS 42

4.5 Discussion about findings 47

CHAPTER 5 CONSLUSIONS AND RECOMMENDATIONS 49

5.1 Recommendations 49

5.1.1 Indirect compensation: 49

5.1.2 Working Environment: 50

5.1.4 Effectiveness of Union 52

5.2 Limitations and recommendation for future researches 53

References 54

APPENDIX A: Descriptive Statistics 57

APPENDIX B: PROCESS RESULT 62 APPENDIX C: Questionnaire in English 69 APPENDIX D: Questionnaire in Vietnamese 73

List of table

Table 4.1 Descriptive statistics of sample………24

Table 4.2 Reliability statistics for direct compensation….………25

Table 4.3 Reliability statistics for Indirect compensation……….26

Table 4.4 Reliability statistics for indirect compensation (extracted ICS2)……….26

Table 4.5 Reliability statistics for Working Environment……….27

Table 4.6 Reliability statistics for Relationship with supervisor……….28

Table 4.7 Reliability statistics for Feedback……… 28

Table 4.8 Reliability statistics for Union……… 30

Table 4.9 Reliability statistics for Job Satisfaction……….31

Table 4.10: KMO and Bartlett’s test for independent variables……… 33

Table 4.11 : Rotated Component Matrixa……… 33

Table 4.12 Rotated Component Matrixa……… 33

Table 4.13 Pearson Correlation Coefficient………36

Table 4.14 Summary output of Regression………37

Table 4.15 Summary output of Regression………38

Table 4.16 Regression Union and Job satisfation……… 39

Table 4.17 Hypothesis testing……….46

CHAPTER 1 INTRODUCTION 1.1 Research background

Overview the garment industry of Vietnam:

Vietnam‟s textile and garment sector has seen fast and sustainable growth over the past years, playing an important role in national socio-economic development Demand for labor in the sector is huge Every year, the sector gives employment for 2.2 million people, generating income for the workers Export value of textile and garment products in recent years has been ranking number two in the country‟s total export revenue, earning a major source of foreign exchange and contributing significantly to Vietnam‟s gross national product and budget

According to government statistic office Vietnam, Labor of Vietnam Textile industry is not focused, because over 70% of the textile enterprises are small and medium enterprises, which number less than 300 employees Nearly 20% of enterprises employed from 300 workers to

1000 workers, the factories have 1000 workers now come up only 6% With such dispersion, if not linked to the training activities will be difficult to implement efficiently

Textile industry workers increased speedily and concentrated mainly in the non-state enterprises, then in the enterprise with 100% foreign capital These two types currently attract two thirds of the entire sector workers Often the majority of these businesses today tend to attract for new labor, but not care deeply in keeping the current ones Lead to a scramble for labor among firms in the sector has increased at an alarming rate; the concern was their ability

to leave the company is too big due to dissatisfaction Due to the labor requirements of the garment industry increased very fast response to worker satisfaction; this industry is actually in lack of labor Besides that, the labor force is still weak not only at professional level but also at management one If we do not solve this problem rapidly, it will be hard to compete and win

on the market So, it is really necessary for the industry to know the characteristic of labor

force and orient for a new period (Ministry of Industry, Vietnam Textile and Garment Group, 2013)

This study is to identify the factors make workers feel satisfaction and perform their work better then can affect to the economic and social development of countries involved

1.2 Research problem:

Because job satisfaction is serious in organizations, the study of what satisfies workers is increasingly important Therefore, the goal of this research project was to answer the overarching question: How are workers across satisfied at work?

Job satisfaction is important in every worker‟s life Workers spend more than thirds of our waking hours at work which means that if we are not happy with their jobs, they are also unhappy with their personal lives Workers who find satisfaction in their jobs are more enthusiastic when it comes to performing their responsibilities Job satisfaction definitely plays

an important role in determining our efficiency and productivity

Job satisfaction gives them motivation and helps them become more optimistic no matter what challenge they may face at work It encourages workers to always give their best shot in everything they do In addition, a person who is truly satisfied with his or her career life helps create a more positive work 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

Many experts believe that job satisfaction trends can affect labor market behavior and influence work productivity, work effort, employee absenteeism and staff turnover Moreover, job satisfaction is considered a strong predictor of overall individual well-being (Diaz-Serrano and Cabral Vieira, 2005), as well as a good predictor of intentions or decisions of employees to leave a job (Gazioglu and Tansel, 2002)

Beyond the research literature and studies, job satisfaction is also important in everyday life Organizations have significant effects on the people who work for them and some of those effects are reflected in how people feel

In addition, measures of job quality seem to be useful predictors of future labor market behavior Workers‟ decisions about whether to work or not, what kind of job to accept or stay

in, and how hard to work are all likely to depend in part upon the worker‟s subjective evaluation of their work, in other words on their job satisfaction.(Clark, 1998)

Second one, this research is to find out the union impact to job satisfaction The goal was to investigate the mediating role of compensation, relationship with supervisor, feedback and working environment versus relationship between union and job satisfaction For some country, people concern on the effective operation of union, it is speculated that if clothing factory workers were free to choose their own union and were socialized with regard to the functions of a union, it would be doubtful whether they would still be satisfied with the

garment workers union (Chetty, 1983)

1.3 Research objective

- To determine factors influence worker satisfaction in garment companies

- To determine the moderating impact of union to the relationship of worker‟s job satisfaction to direct and indirect compensation, working environment, relationship with supervisor and feedback

1.4 Scope:

- Garment factories in Vietnam

- Subject: workers in the garment factories in Vietnam

1.5 Significant of study (Research contribution)

- For management of factories to make decision in human resource management, creating appropriate decisions in managing, in order to increase productivities and employees‟ motivation level

- For Union to structure and operate effectively to satisfy their union members

- Theoretical contribution: understand the moderating role of union

Chapter 4 – Data analysis: this chapter describes how each measurement scale was evaluated and the result of testing hypothesis It consists of sample description, measurement scale data analysis, regression analysis and evaluating the impact of personal characteristic on employee motivation

Chapter 5 – Conclusion and Recommendation: this chapter presents brief description about research findings and some of implications has mentioned In the end, research limitation and recommendations for future research have presented as well

CHAPTER 2: LITERATURE REVIEW 2.1 Concept and Definition:

2.1.1 Job satisfaction

Job satisfaction is described as the feelings of employees resulting from the assessment of their job It can be negative, positive, or moderate Edwards, et al (2008, p 442) refers to job satisfaction as “an evaluative judgment about the degree of pleasure an employee derives from his or her job that consists of both the affective and cognitive components” Aamodt, (2009) defines job satisfaction as “the attitude an employee has toward his job.” Moser and Galais (2007) highlighted that employee‟s ability and opportunities aid to improve their satisfaction of the job level Herzberg, et al (1959) formulated the two-factor theory of job satisfaction and postulated that satisfaction and dissatisfaction are two separate, and sometimes even unrelated phenomena Intrinsic factors named „motivators‟(that is, factors intrinsic to the nature and experience of doing work) are found to be job „satisfiers‟ and included achievement, recognition, work itself and responsibility Extrinsic factors which they named hygiene‟ factors are found to be job „dissatisfies‟ and included company policy, administration, supervision, salary, interpersonal relations and working conditions Herzberg and Mausner‟s Motivation-Hygiene theory has dominated the study of the nature of job satisfaction, and formed a basis for the development of job satisfaction assessment There are different models developed in the job satisfaction field Job satisfaction generally implies a positive evaluation of work and a positive effect deriving from it; that is, a “positive emotional state resulting from the appraisal

of one‟s job or job experiences” (Locke 1976, p 1300) Job satisfaction is defined as the extent

to which people like (satisfaction) or dislike (dissatisfaction) their jobs" (Spector, 1994, p 2)

2.1.2 Direct financial compensation

Direct financial compensation refers to the act of providing a person with money or other things of economic value in exchange for their goods, labor, or to provide for the costs of injuries that they have incurred

Kinds of financial compensation include:

- Damages, legal term for the financial compensation recoverable by reason of another's breach of duty

- Nationalization compensation, compensation paid in the event of nationalization of property

- Payment

- Remuneration: Deferred compensation, Executive compensation, Royalties, Salary, Wage

- Workers' compensation, to protect employees who have incurred work-related injuries

Essays, UK (November 2013) Direct And Indirect Compensation Managing Human Capital Business Essay

2.1.3 Indirect compensation:

Dessler (2011) refers to Indirect Compensation as the indirect financial and non-financial payments employees receive for continuing their employment with the company which are an important part of every employee‟s compensation Other terms such as fringe benefits, employee services, supplementary compensation and supplementary pay are used

Armstrong (2009) says Indirect Compensation or Employee benefits are elements of remuneration given in addition to the various forms of cash pay They also include items that are not strictly remuneration such as annual holidays Management uses it ostensibly to facilitate its recruitment effort or influence the potential of employees coming to work for a company, influence their stay or create greater commitment, raise morale, reduce absenteeism

in general and improve the strength of the organization by instituting a comprehensive

programme in this area (Noe et al, 1996)

According to Chhabra (2001), Indirect or Supplementary Compensation involves 'fringe benefits' offered through several employee services and benefits such as housing, subsidized food, medical aid, crèche and so on It involves rewards provided by organizations to employees for their membership, attendance or participation in the organization Because of the increasing costs of fringe benefits, some people also label them as 'hidden payroll.' Benefits currently account for almost 40 per cent of the total compensation costs for each employee The basic purpose of fringe benefits or supplementary compensation is to attract and maintain efficient human resources within the organization and to motivate them

Some popular indirect compensation offered by today‟s organizations (Byars and Rue 2008): Social Security, Workers‟ Compensation, Retirement Plans, Paid Holidays, Paid Vacations,

Other Benefits

2.1.4 Working environment

Business dictionary defined work environment as location where a task is completed When pertaining to a place of employment, the work environment involves the physical geographical location as well as the immediate surroundings of the workplace, such as a construction site or office building Typically involves other factors relating to the place of employment, such as the quality of the air, noise level, and additional perks and benefits of employment such as free child care or unlimited coffee, or adequate parking When look at working environment should consider about its culture aspect as whether it is a creative or conventional environment which

is very important to productivity of its staff

Heath (2006) states, the biggest goal of all the business organization is to increase their productivity, thus decreasing their cost of production and making high profits Although, there

is very less amount of effort, which these organizations make in order to increase their productivity Many employers have a very wrong view that productivity can be increased by

giving their employees good pay package and timely increments for their work What these employers are not aware of is that there are many other factors, which affects the performance

of the employees in an organization One of the major factors, which have an impact on the motivation level of the employees and their performance, is the workplace environment

2.1.5 Feedback

As noted by Herold and Parsons (1985), and Becker and Klimoski (1989), more information is typically available to employees in organizations than these isolated performance feedback interventions The feedback environment is believed to play a vital role in determining how employees seek, receive process, accept, and use feed-back messages Therefore, a better understanding of the feedback environment is crucial to gain more insight into the feedback process and to improve feedback interventions in organizations (Frederik Anseel, Filip Lievens, 2007, p 3)

2.1.6 Relationship with supervisor

Buckingham and Coffman (1999) pointed manager‟s role in employee‟s commitment, that is they must have good communicate skills, providing positive feedback in order to develop their staff‟s strengths and overcome weaknesses There are many reasons for employee resigning cited in studies of Buckingham and Coffman (1999); Kaye and Jordan-Evans (1999); Kreisman (2002); Herman (1999), and the most popular reason was given is bad relationship between manager and employee Hence, managers and their management ways play a signification and important role in motivation employee and builds organization commitment

According to Adam‟s equity theory, Hellriegel and Slocum (2007) and Coetsee (2003) provide some managerial approaches: first, managers should treat their staff fairly; second, encourage honest and transparent communicate about employee‟s inputs and outputs in order to avoid dissatisfaction Manager‟s role in Adam‟s equity theory plays an important role because of its

moderator position from individual effort to individual goals through recognition If employee‟s effort is not recognized by manager, their new goal may be to decrease effort or quit the job

2.1.7 Union

Business dictionary defined Union as an organized association of workers in a trade, group of trades, or profession, formed to protect and further their rights and interests According to Bryson and Freeman (2006), workers may benefit from union membership A trade union is an organization of employees formed on a continuous basis for the purpose of securing diverse range of benefits It is a continuous association of wage earners for the purpose of maintaining and improving the conditions of their working lives Dale Yoder has defined trade union as a continuing long – term association of employees formed and maintained for the specific

purpose of advancing and protecting the interests of members in their working relationships

He quotes: “A trade union is a continuous association of workers which is formed with the purpose of protecting the interests of workers.”

According to Flippo “A labour union or trade union is an organisation of workers formed to promote, protect, and improve, through collective action, the social, economic, and political interests of its members”

Essays, UK (November 2013) Features Of Trade Unions Management Essay

2.2 Model and Theories:

Three predominant theories of job satisfaction include affect theory (Edwin a Locke‟s), Herzberg, Mausner, & Snyderman, 1959) motivation-hygiene theory

2.2.1 Affect theory

Edwin A Locke‟s Range of Affect Theory (1976) is arguably the most famous job satisfaction model The main premise of this theory is that satisfaction is determined by a discrepancy

between what one wants in a job and what one has in a job Further, the theory states that how much one values a given facet of work (e.g the degree of autonomy in a position) moderates how satisfied/dissatisfied one becomes when expectations are or are not met When a person values a particular facet of a job, his satisfaction was more greatly impacted both positively (when expectations are met) and negatively (when expectations are not met), compared to one who doesn‟t value that facet To illustrate, if Employee A valued autonomy in the workplace and Employee B was indifferent about autonomy, then Employee A would be more satisfied in

a position that offers a high degree of autonomy and less satisfied in a position with little or no autonomy compared to Employee B This theory also states that too much of a particular facet will produce stronger feelings of dissatisfaction the more a worker values that facet

2.2.2 Equity theory

John Stacey Adams (1963) Equity Theory shows how a person views fairness in regard to social relationships such as with an employer A person identifies the amount of input (things gained) from a relationship compared to the output (things given) to produce an input/output ratio They then compare this ratio to the ratio of other people in deciding whether or not they have an equitable relationship Equity Theory suggests that if an individual thinks there is an inequality between two social groups or individuals, the person is likely to be distressed because the ratio between the input and the output are not equal

For example, consider two employees who work the same job and receive the same pay and benefits If one individual gets a pay raise for doing the same work than the other, then the less benefited individual will become distressed in his workplace If, on the other hand, one individual gets a pay raise and new responsibilities, then the feeling of equity will be maintained.

2.2.3 Two-factor theory (motivator-hygiene theory)

Frederick Herzberg‟s two-factor theory (also known as motivator-hygiene theory) attempts to explain satisfaction and motivation in the workplace This theory states that satisfaction and dissatisfaction are driven by different factors – motivation and hygiene factors, respectively

An employee‟s motivation to work is continually related to job satisfaction of a subordinate Motivation can be seen as an inner force that drives individuals to attain personal and organizational goals (Hoskinson, Porter, & Wrench, p 133) Motivating factors are those aspects of the job that make people want to perform, and provide people with satisfaction, for example achievement in work, recognition, promotion opportunities These motivating factors are considered to be intrinsic to the job, or the work carried out Hygiene factors include aspects of the working environment such as pay, company policies, supervisory practices, and other working conditions

While Herzberg's model has stimulated much research, researchers have been unable to reliably empirically prove the model, with Hackman & Oldham suggesting that Herzberg's original formulation of the model may have been a methodological artifact Furthermore, the theory does not consider individual differences, conversely predicting all employees will react

in an identical manner to changes in motivating/hygiene factors Finally, the model has been criticised in that it does not specify how motivating/hygiene factors are to be measured

According to Herzberg, the factors leading to Job Satisfaction are separate and distinct from those that lead to Job Dissatisfaction Conditions surrounding the job such as quality of supervision, pay, company policies, physical working conditions relations with other and job security are characterized by Herzberg as hygiene factors, when adapted, people will not be dissatisfied; neither will they be satisfied If organization wants to motivate people on their jobs, Herzberg suggested emphasizing factors associated with work itself or to outcomes directly derived from it, such as promotional opportunities, personal growth, recognition,

responsibility and achievement These are the characteristics that people find intrinsically rewarding

2.2.4 Job characteristics model

Hackman & Oldham proposed the job characteristics model, which is widely used as a framework to study how particular job characteristics impact on job outcomes, including job satisfaction The model states that there are five core job characteristics (skill variety, task identity, task significance, autonomy, and feedback) which impact three critical psychological states (experienced meaningfulness, experienced responsibility for outcomes, and knowledge

of the actual results), in turn influencing work outcomes (job satisfaction, absenteeism, work motivation, and performance) The five core job characteristics can be combined to form a motivating potential score (MPS) for a job, which can be used as an index of how likely a job

is to affect an employee's attitudes and behaviors Not everyone is equally affected by the MPS

of a job People who are high in growth need strength (the desire for autonomy, challenge and development of new sills on the job) are particularly affected by job characteristics A meta-analysis of studies that assess the framework of the model provides some support for the validity of the JCM

2.3 Previous researches about job satisfaction for worker in garment industry

The above satisfaction theories are studied, applied in afterwards researches, in order to determine which factor affecting to employee‟s satisfaction in each specific circumstance According to studies, papers conducted in general and garment sector, which are reviewed in this research, there are four motivational factors which are repeated many times Based on these factors, hypotheses will be built in order to verify and evaluate their affecting to worker satisfaction in South of VN context According to Chetty (1983), there were two hypotheses are formulated with an assump spillover affect servings as a link: India married women employed in the clothing industry experience job dissatisfaction and jod dissatisfaction among

India married women varies directly with dissatisfaction about their interpersonal relationship

in the family group And Chetty (1983) also mentioned some terminants of job satisfaction such as the work group, job content, supervision, compensation, influence of decision making, working conditions, the trade union, bureaucracy and personal variables

As Bhagya (2011), Job satisfaction related to the job under condition with such specific factors such as wages Supervisors of employment, conditions of work, social relation on the job, prompt settlement of grievances and fair treatment by employer Such factors as employee‟s age, health temperature, desire and level of aspiration should be considered Further his family relationship, Social status, recreational outlets, activity in the organizations etc Contribute ultimately to job satisfaction

High-work load, poor behavior of line managers, low skills and low wage rates are the notable reasons for high job turnover and social unrest Poor relationship between workers and supervisors is the main source of conflict This study finds that there is growing demand for work life balance among the workers Chowdhury Golam Hossan (2012) This author also show the roles of trade union and labor rights, conflicting relationship with first

line supervisors, demand for work-life balance, self-respect and participation, job turnover and absenteeism, efficiency and productivity of workers, workers motivational issues, and key reasons for recent unrest in this sector

2.4 Conceptual model frame work and Hypothesis

2.4.1 Model frame:

2.4.2 Hypothesis

H1: There is a positive affecting between Direct Compensation and Job Satisfaction

Nowadays, compensation is one of the fastest changing fields in Human Resources, as many company are continue to investigate various ways of rewarding employees for increase their job satisfaction and their performance Here, compensation refers to all forms of financial return and tangible services and benefits employees receive as part of an employment relationship, which includes topics in regard to wages or salary programs; for example, salary ranges for job descriptions, merit based programs, bonus based programs, commission based programs, long term or short terms incentives programs, and etc According to the Society for Human Resources Management report, job dissatisfaction can contribute to multiple organizational problems and has been associated with increased levels of turnover and absenteeism, which ultimately cost the organization in terms of low performance and

decreased productivity Thus, employer must ensure that the compensation and benefits system

is fair and equitable to all the staffs and understanding the system By doing so, employer can create a real job satisfaction and motivate their employees

H2: There is a positive affecting between indirect compensation and Job Satisfaction

Beside direct compensation, indirect compensation plays an important role in effecting to job satisfaction In direct compensation refers to all forms of financial return and intangible services and benefits employees receive as part of an employment relationship, which includes topics in regard to insurance, retirement plan, annual paid leave…

H3: There is a positive affecting between Working environment and Job Satisfaction

Heath (2006) states, the biggest goal of all the business organization is to increase their productivity, thus decreasing their cost of production and making high profits Although, there

is very less amount of effort, which these organizations make in order to increase their productivity Many employers have a very wrong view that productivity can be increased by giving their employees good pay package and timely increments for their work What these employers are not aware of is that there are many other factors, which affects the performance

of the employees in an organization One of the major factors, which have an impact on the motivation level of the employees and their performance, is the workplace environment

H4: There is a positive affecting between Relationship with Supervisor and Job Satisfaction

The relationship between supervisor and employee and job satisfaction is a subject of debate in organizations and this leads to studies being done to measure the exact influence of the relationship and how it affects the organizations (Petersitzke 2008, p33) In organizational settings, employees work under supervision The kind of relationship between the two inevitably affects the employee‟s performance The way an employee feels about his job

determines how he does it (Hosie et al 2006, p44) Dissatisfied employees find no enjoyment

in their work (Callaway) There are a lot of interaction between supervisors and workers

H5: There is a positive affecting between Feedback and Job Satisfaction

The feedback environment is believed to play a vital role in determining how employees seek, receive process, accept, and use feed-back messages Therefore, a better understanding of the feedback environment is crucial to gain more insight into the feedback process and to improve feedback interventions in organizations (Frederik Anseel, Filip Lievens, 2007, p 3)

H6: There is a moderator effect on effectiveness of union to job satisfaction

Union can be a control factor to affect the relationship between direct compensation, indirect compensation, working environment, feedback, relationship with supervisor and job satisfaction Effectiveness of union can bring the satisfaction to workers

CHAPTER 3: RESEARCH METHOD

3.1 Research Design:

In this research, quantitative approach was used Quantitative methods emphasize on objective measurements and numerical analysis of data collected through polls, questionnaires or surveys Quantitative research focuses on gathering numerical data and generalizing it across groups of people The data was usually gathered using more structured research instruments The results are based on larger sample sizes that are representative of the population The research study can usually be replicated or repeated, given its high reliability Researcher had a clearly defined research question to which objective answers were sought All aspects of the study were carefully designed before data is collected Data are in the form of numbers and statistics Project can be used to generalize concepts more widely, predict future results, or investigate causal relationships Researcher uses tools, such

as questionnaires or equipment to collect numerical data

3.2 Measurement and Questionnaire design:

Questionnaire was designed and modify from previous studies These question were borrowed from some previous research and some of them are developed by myself

There were four questions for direct compensation which was adopted from Cheety (1983) except CPS1 was developed by myself:

DCS1: Presence of salary that makes me feel reasonable

DCS2: Current income presence of attractive and competitive compensation system

DCS3: My company has transparent and equitable policy of salary

DCS4: Presence of salary that enough for expense

There were five questions for indirect compensation which was adopted from Mensah (2012) and ICS2, ICS5 was developed by myself

ICS1: I am satisfied with other compensation such insurance and annual leave at my company IDC2: I am satisfied with other compensation such annual traveling or present of my company ICS3: I believe company pay for social and health insurance for workers

ICS4: I can get the paid absences when I take leave

ICS5: My company well complies the other benefit for insurance, annual leave…

There were five questions for working environment which was adopted from Nguyen (2011)

and WKE2 was developed by myself:

WKE1: In my workplace, staff is equipped and provided enough equipment for doing their work

WKE2: The physical working condition in this factory (lightning, toilet, safety measure ) are good

WKE3: My workplace is safety and convenience

WKE4: I receive support from colleagues so much

WKE5: Relationships between colleagues at my workplace are friendly and relaxed

There were four questions for Relationship with supervisors which was adopted from Smith, et

al (1996)

RWS1: My supervisor welcome suggestion

RWS2: I am received enough instructions to do job well

RWS3: Supervisor treats everyone equitably

RWS4: Supervisor willing and able to help out

There were four questions for Feedback was adopted from Norris-Watts & Levy (2004), Smith (1996) and FEB5 was developed by myself:

FEB1: My supervisor gives me useful feedback about my job performance

FEB2: My supervisor is usually available when I want performance information

FEB3: I feel comfortable asking my supervisor for feedback about my performance

FEB4: I receive the constructive feedback from the others

FEB5: I feel easy to raise and receive feedback to the others

There are five questions for Union UNI1, UNI2 were adopted from Chetty (1983) and UNI3, UNI4, UNI5 were developed by myself to measure effectiveness of union better

UNI1: The union does a lot for workers

UNI2: I think the union protects workers’ right

UNI3: Union in my company is working well and effective

UNI4: I always get the supporting from union on issues related to work and benefit

UNI5: I can get the share ideas or get advice from others union members

There were four questions for Job satisfaction:

JSF1: I am satisfied with my job

JSF2: I am satisfied with what I achieve at work

JSF3: I am happy with my work

JFS4: I love my job

The official questionnaires were made in English, then translated into Vietnamese for understanding clearly Research used the five-level Likert scale and the format of a typical five-level Likert item

- Strongly disagree

- Disagree

- Neither agree nor disagree

- Agree

- Strongly agree

3.3 Data collection method:

The primary data will be collected through questionnaires which sent directly at factories or via emails The secondary data sources from books, articles, newspaper, business magazines and websites

Sample size: Hair et al (1994) pointed out the minimum sample size is equal or larger 5 time of variables This study has 31 variables so the minimum sample size is: n= 32 x 5 = 160

The data were collected by delivering the questionnaire sheet to workers at factories

3 4 Data Analysis Method:

3.4.1 Descriptive statistics of sample:

Descriptive statistics provides simple summaries about the sample and about the observations that have been made Such summaries may be either quantitative, i.e summary statistics, or visual, i.e simple-to-understand graphs These summaries may either form the basis of the initial description of the data as part of a more extensive statistical analysis, or they may be sufficient in and of themselves for a particular investigation

3.4.2 Reliability test:

To assess the reliability and validity of measurement scales, Cronbach‟s Alpha and exploratory analysis were used in this research Cronbach‟s Alpha was used to eliminate garbage items with low item-total correlations (<0.4) The measure would be chosen if Cronbach‟s Alpha was from 0.6 (Nunnally & Bernstein 1994)

Cronbach’s Alpha results of each measurement One of the most popular reliability statistics in

use today is Cronbach's alpha (Cronbach, 1951) Cronbach's alpha determines the internal consistency or average correlation of items in a survey instrument to gauge its reliability Factors have Cronbach‟s Alpha coefficient greater than 0.6 and correlation coefficient of variations (Corrected Item-Total Correlation) are greater than 0.4 Satisfy the criteria and could

be put into Exploratory Factor Analysis (EFA)

3.4.3 Exploratory Factor Analysis (EFA)

EFA is a statistical method used to uncover the underlying structure of a relatively large set

of variables EFA is a technique within factor analysis whose overarching goal is to identify the underlying relationships between measured variables It is commonly used by researchers

when developing a scale (a scale is a collection of questions used to measure a particular

research topic) and serves to identify a set of latent constructs underlying a battery of measured variables It should be used when the researcher has no a priori hypothesis about factors or patterns of measured variables.Measured variables are any one of several attributes of people

that may be observed and measured An example of a measured variable would be the physical height of a human being Researchers must carefully consider the number of measured variables to include in the analysis EFA procedures are more accurate when each factor is represented by multiple measured variables in the analysis There should be at least 3 to 5 measured variables per factor

EFA is based on the common factor model Within the common factor model, a function of common factors, unique factors, and errors of measurements expresses measured variables Common factors influence two or more measured variables, while each unique factor influences only one measured variable and does not explain correlations among measured variables.

3.4.4 Regression Analysis

Regression analysis is a method to display affecting level of independent variables to dependent variable The regressions are weighted to account for sampling probabilities and a robust variance estimator corrects for the presence of repeated observations on the same establishment The main task of statistical analysis is applied in the multiple linear regressions

in order to study the correlation and measure the prediction level of 4 independent variables on one dependent variable The multiple regressions analysis is applied to test the conceptual model and its hypotheses

According to Pallant (2005), the summaries of Multi Regression Analysis are:

- No multicollinearity

- No outliers are used in this case, no significant impact of outlier

- Normality and linearity should be existed

3.4.5 Process Analysis

Moderator can be tested by following the above steps using the regular linear regression menu item in SPSS, or more conveniently using a special process developed by Andrew F Hayes

CHAPTER 4 DATA ANALYSIS

The previous chapter displayed research methodology and research design of pilot research and the main research This chapter will provide the data analysis and finding discussion

4.1 Descriptive statistics of sample

As the summary table below, the characteristic for respondent can be summary

Gender: The majority worker in garment industry is female Female worker percentage was 67% compared to male worker percentage is 33%

Age: Labor force in garment industry was quite young

Education: Labor force in garment industry is almost completed junior and senior high school Salary scale: Salary in garment industry was low and mostly in ranges 3 million VND to 5 million VND only

Ownership: China and Korea obtained the considerable market share of garment industry ocation of company: This survey was implemented on the North and South of Vietnam with following provinces Ha Noi, Bac Giang, Hai Phong, Ho Chi Minh, Dong Nai, Binh Duong, Long An, Vinh Phuc

Numbers of workers: The factory size was diversified and more than 50% percent was big

company which had more than 2,000 workers

Table 4.1 Descriptive statistics of sample

Item Frequency

Percent (%)

Percent (%) Item

4.2 The construct measurement scale

To assess the reliability and validity of measurement scales, Cronbach‟s Alpha and exploratory analysis were used in this research Cronbach‟s Alpha was used to eliminate garbage items with low item-total correlations (<0.4) The measure would be chosen if Cronbach‟s Alpha was from 0.6 (Nunnally & Bernstein 1994)

4.2.1 Cronbach’s Alpha results of each measurement

Item-Cronbach's Alpha if Item Deleted DCS1 9.38 9.351 735 871

DCS2 9.63 8.698 765 860

DCS3 9.28 8.202 787 852

DCS4 9.46 8.861 766 859

Item-Cronbach's Alpha if Item Deleted ICS1 16.12 4.571 509 503

ICS2 17.05 3.830 200 733

ICS3 16.00 4.468 479 506

ICS4 15.85 4.681 471 519

ICS5 16.27 4.543 396 540

The new Reliability Statistic when taking out the item ICS2

Table 4.4 Reliability statistics for indirect compensation (extracted ICS2)

Item-Cronbach's Alpha if Item Deleted ICS1 12.85 2.317 606 627

Item-Cronbach's Alpha if Item Deleted WKE1 14.75 11.836 645 772

WKE2 14.94 11.607 631 777

WKE3 14.81 11.423 752 739

WKE4 14.44 13.341 557 798

WKE5 14.38 13.902 474 819

The Cronbach‟s Alpha is nearly the same much if we take out item WKE5 We can consider taking out item WKE5 and increasing the Cronbach‟s Alpha in the Factor Dimension step

4.2.1.4 Relationship with supervisor:

Cronbach‟s Alpha is 0.879(>0.6) and all Cronbach‟s Alpha if item deleted are lower than 0.879

so of those items satisfy the criteria so they could put into Exploratory Factor Analysis

Table 4.6 Reliability statistics for Relationship with supervisor

Item-Cronbach's Alpha if Item Deleted RWS1 10.25 8.760 756 838

Item-Cronbach's Alpha if Item Deleted FEB1 14.25 10.496 778 667 FEB2 14.45 9.417 720 682 FEB3 14.37 9.423 758 665 FEB4 13.75 13.595 435 779 FEB5 13.29 15.928 130 844

The Reliability statistics for Feedback after deleting item FEB5

Item-Cronbach's Alpha if Item Deleted FEB1 10.01 9.079 821 744 FEB2 10.21 7.848 795 749 FEB3 10.13 8.047 801 745 FEB4 9.51 12.726 352 913

Cronbach‟s Alpha is 0.844(>0.6) and all Cronbach‟s Alpha if item FEB4 deleted is 0.913 (higher than 0.844) so need to be take out item FEB4 when put into Exploratory Factor

Item-Cronbach's Alpha if Item Deleted FEB1 6.22 6.557 848 871

we keep all items to put into Exploratory Factor Analysis

Table 4.8 Reliability statistics for Union

Reliability Statistics

Item-Cronbach's Alpha if Item Deleted UNI1 12.99 18.182 836 915

Table 4.9 Reliability statistics for Job Satisfaction

Item-Cronbach's Alpha if Item Deleted JSF1 12.34 2.453 544 553

JSF2 12.15 3.006 251 718

JSF3 12.56 2.178 432 632

JSF4 12.49 2.113 627 480

4.2.2 Exploratory Factor Analysis

4.2.2.1 EFA for factors affecting to worker’s job satisfaction:

Rotated Component Matrix a

Extraction Method: Principal Component Analysis

Rotation Method: Varimax with Kaiser Normalization

a Rotation converged in 7 iterations

Table 4.10: KMO and Bartlett‟s test for independent variables

Delete item ICS5, the Component Matrix changes to

Extraction Method: Principal Component Analysis

Rotation Method: Varimax with Kaiser Normalization

a Rotation converged in 7 iterations