Research about job satisfaction at viettravel vietnam

4 Limitation of the Research PART TWO LITERATURE REVIEW 5 Definition constructs Job Satisfaction Supervisory Support Developmental Experiences Fairness in Skill – Based Pay Percei

RESEARCH PROJECT

(BMBR5103)

RESEARCH ABOUT JOB SATISFACTION AT VIETRAVEL

ADVISOR’S NAME & TITLE : NGUYEN THE KHAI (DBA)

HO CHI MINH CITY, AUGUST 2016

Acknowledgments

It is not a single doubt that pursuing this research is not only hard but also meaningful experience This could be compared with climbing a high peak, step by step, paired with hardships, frustration, encourangement, trust and unlimited help from numerous people altogether When I find myself admiring the view from the top, I realize that teamwork leads me all over there Though it would not be enough to express my appreciation in words to all those people who support me, I still desire to convey my special thanks to all these people

I would like to express my gratitude to all those who have made this dissertation possible My deepest gratitude goes first and foremost to my lecturer Dr Nguyen The Khai (DBA) for his full support, expert guidance, understanding and encouragement througout my study and research Without his incredible patience and timely wisdom and counsel, my research would have been a frustrating and overwhelming pursuit

My thanks are also extended to Vietravel – Asia’s Leading Tour Operator for their unceasing support from the very first beginning accompanied by their willingness shown to provide a solid grounding in database needed in the accomplishment of this research

Last but not least, I also place on record, my sense of gratitude to my parents, friends and colleagues for their endless support, enduring love, constant guidace, motivation and ecouragement

4 Limitation of the Research

PART TWO LITERATURE REVIEW

5 Definition constructs

Job Satisfaction

Supervisory Support

Developmental Experiences

Fairness in Skill – Based Pay

Perceived Ability – Job Fit

6 Argument for the relationship among

the constructs

X theory and Y theory

Maslow’s needs theory

Herzberg’s two factor theory

Hackman & Oldham’s Job

Characteristics

McClelland’s needs theory

Stacey Adam’s Equity Theory

PART THREE METHODS

7 Data collection

Design Template Scale

Data collection progress

Adam’s Equity Theory Diagram

Cronbach’s Alpha of Job Satisfaction Cronbach’s Alpha of Supervisory Support

Cronbach’s Alpha of Developmental Experiences

Cronbach’s Alpha of Fairness in Skill – Based Pay

Cronbach’s Alpha of Perceived Ability Job Fit

Descriptive statistics Value of Coefficients Correlation statistics Model Summary of H1 Coefficients of H1 Model Summary of H2 Coefficients of H2 Model Summary of H3 Coefficients of H3 Model Summary of H4 Coefficients of H4

270 valid ones were returned The questionnaires were completed voluntarily by all respondents The findings of the study revealed that the joint effect of variables can be grouped as independent ones (Supervisory Support, Procedural Justice, Fairnness in Skill – Based Pay and Perceived Ability – Job Fit) which might influence Job Satisfaction relative to Expectation – the dependent one

Based on the findings of this study, it is highly recommended that the management should try as much as possible to give constant attention to factors that can enhance job satisfaction Human resource is considered as the most fundamental asset for any organization, not mention VTV Therefore, this study could be much of the tool used by the higher – ups in VTV to better comprehend the satisfaction level of employees and how they can encourage their employees to carry out their job proficiently and effectively

Key words: Job Satisfaction relative to Expectation, Supervisory Support, Procedural

Justice, Fairness in Skill – Based Bay and Perceived Ability – Job Fit

PART ONE: INTRODUCTION

About Vietravel

Brandname Calibration

The triangle with 03 apexes and 03 sides that an switch places and roles to each other, this shows the absolute balance in an active market and non – stop growing world The unfinished circle demonstrates that knowledge of humankind cannot reach the absolute truth of “The truth, the good and the beautiful” This reminds tourist operators have to learn, to improve constantly in order to deliver the best product & services to meet the customer’s travelling needs that are more gradually diversified from customers The four lines divine the circle into 5 proportions which represent for 5 continents, this expresses the aspiration to reach out and globally develop all around the world

History

The Vietnam Travel and Marketing Transport Joint-stock Company (Vietravel) was established on the basis of the Centre of Tourism – Marketing and Investment Services (Tracodi Tourmis) under the Ministry of Transport

In the initial days after Vietravel was established in December, 1995 it faced many difficulties in the tourist market, lacking employees, funds and facilities But with a dynamic, determination to overcome difficulties and an effective business strategy, the company has gradually developed

Vietravel has been a member of Domestic and International Tourism Organizations:

- VCCI (Vietnam Chamber of Commerce and Industry)

- VITA (Vietnam Tourism Association)

- HTA (HCMC Tourism Association)

- HUBA (HCMC Union of Business Association)

- ASTA (American Society of Travel Agents)

- PATA (Pacific Asian Travel Association)

- IATA (International Air Transport Association)

- JATA (Japan Association of Travel Agents)

- IAGTO (International Association of Golf and Tour Operators)

- ATTA (Adventure Travel Trade Association)

Vietravel Offices Network

Scope Business

- International and Domestic Tourism

- E- tour (E – commerce)

- Organizing MICE tour, Golf tour & Team building

- Air/train ticket service

- Services for self – drive car rental

- Tour guide & Interpreter services

- Marine Transporting and Mediating Agency

- Foreign currency exchange service

- Overseas study consultant service

- Events Organizing

- Hotel Reservation service

- Career Training Center

- Labor Export Service

- Civil Construction Enterprise

Vision, Mission and Core values

Vision: Reach out to the world’s height

Vietravel has been honored with “Vietnam’s Leading Tour Operator” and “Vietnam’s Leading Travel Agency” in 2015 organized by World Travel Awards – “Oscars” of the travel industry With a long-term strategy and an emphasis on training human resources and investing in infrastructure and information technology to improve customer services, Vietravel will continue to conquer new heights and reach out to regional and international markets

Mission: The Pioneer

Since our inception, Vietravel has been a pioneer in the travel industry They offer a wide variety of vacations and other travel opportunities to countless destinations Vietravel has always worked very hard to bring their valued clientele the best the travel industry has to offer

Core Values:

EXPERIENCE: After 20 - year's operations in the field of international and domestic

tourism, Vietravel has gained much experience and been confident of our quality services

PROFESSIONALISM: The fast, strong and sustained growth of Vietravel is based on

two important elements: an effective business structure, well-trained and highly experienced staff with in-depth knowledge of tourism as well as excellent language skills

Moreover, the professionalism of Vietravel is displayed by the application of commerce into their business activities The management structure and customer care programs are also applied with quality management standards

E-PERSONAL CARE: Vietravel with a wide network of branches, offices and affiliates

throughout Vietnam and overseas, can easily approach our customers and satisfy their needs accordingly wherever they are In addition, we have a database which has been updated regularly with an abundant list of hotels, restaurants, resorts, entertainments Also new destinations have been constantly added by the Product Department in order

to bring new experiences and varied choices to our customers

ADDED VALUES: those are the values exceeding the hope of customers Through our

tour programs, members in family will have chances to get closer and understand each other more than ever; colleagues will collaborate with one another firmer Gifts will also

be offered through the programs: “Together win”, “VIP club” or “Membership card” Above all of those mentioned values are the charity programs combined into tour programs With Vietravel, tourism is not only for sightseeing and relaxing but also sharing difficulties and responsibilities with the community

SUBLIMATE EMOTIONS FOR EACH CUSTOMER: that is the impression

Vietravel will definitely bring to the customer once buying Vietravel’s services When taking tours with Vietravel, customers will surely have opportunities to experience it all: from exploring new lands new people with their history and cultures, to their typical lifestyles and cuisines…

YOUNG & DYNAMIC: With all their enthusiasm and creativity, our staff tiredlessly

strive to bring to customers a wide range of new products with the best quality and competitive price

24 - HOUR ASSISTANCE: Vietravel provides customers with 24/7 and 365 days

assistance through our hotline numbers, even in Tet and national holidays

QUALITY: We commit to bringing the highest standard services and conveniences

beyond customers’ expectations We will continuously update our new exciting tour programs and services at the best prices, just to carry out our business mission “Quality

is always our first priority”

Management Formality

Organization Structure

Leadership style

Over the course of the long career, Mr Nguyen Quoc Ky – Chairman & General Director of Vietravel, accompanied by other recognized deputy general directors have been able to handle the good times and bad by never lacking confidence in their ability

to get the job done This could not be carried out without the signature leadership style shaped by these great leaders

Democratic Leadership: Vietravel’s employees are given the opportunity to participate, ideas are exchanged freely, and discussion is encouraged While the democratic process tends to focus on group equality and the free flow of ideas, the lead

of the group is still there to offer guidance and control

Coaching Leadership: Vietravel supports their subordinates identify their unique

advantages and disadvantages and tie them to their career aspirations They encourage employees to construct long – term goals and help them conceptualize a plan for attaining them

Visionary Leadership: Vietravel excels at creating a positive and inspirational vision

of the future and conveying that vision in an engaging manner that attracts committed employees They understand the need for meaning and purpose in employees, and uses that need to inspire them to achieve more and to build better futures The subordinates get motivated by the defined vision and feel a sense of solidarity within the group due

to the common sense

Research problem statement

Vietravel is 100% Vietnamese enterprise but it has expanded branches overseas (Thailand, Singapore, America, Australia, France,…) Currently, in the context of the tourism industry is very tough and working environment of Vietnamese industry has experienced too many changes, yet none researchers are working on findings obtained

job satisfaction in these companies Vietravel is aggressively developing and growing human resource, especially in the selection of right people for the right position offered

by the company However, it appears that recruiting right people does not complete the process, when another piece remains keeping talent employees In other words, how to retain key staff gives the employers a big question which needs to be answered correctly The Chief Executive Officer recognizes that the Job Satisfaction is considered as the significant factor for Vietravel development since tourism industry is the huge pie shared by coming competitors, the subordinates’ capabilities are the winning tool for the champions However, some factors such as Supervisory Support, Developmental Experiences, Fairness in Skill – Based Pay and Perceived Ability – Job Fit are problems for human resource managemet at Vietravel

Research objectives

This purpose of this research is to find the factors which influence the Job Satisfaction

of Vietravel employees My research will center on 3 main factors:

! Firstly: Search related information and try to define the meaning of Job Satisfaction in Vietravel

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

! Thirdly: Discuss and propose recommendation to improve the effectiveness and forecast the human resources management in Vietravel next time

Research Scope

The Scope of research is designed for the entire employees at Vietravel, including: General Director & Chairman, Deputy General Directors & Board of Directors,

managers, subordinates and employees working at Vietravel & excluding: Shareholders, Supervisory Board and employees who are under probation period or in maturity leave The survey scope is within the territory of Vietnam, which composes 500 employees working in Vietravel Contents are factors influencing Job Satisfaction and not intended

to re- structure, change and replace the employees This survey was conducted from 1stApril to 25th June 2016

Significance of research

This research will help CEO, Directors, managers understand and recognize the importance of Job Satisfaction which is the most important factor to show the effectiveness of the policy in human matter Beside significant management, it does improve employee loyalty to the organization and further, employees will be loyal to the shareholders of the company, contributing to the financial strength of the company

Limitation of the Research

This research will have some limitations due to its focus on Vietravel only The survey was conducted in short period of time Besides, the survey respondents are more qualified and different perceptions about Job Satisfaction combined with the grammatical errors in the contents which may cause confusion for the readers

to beliefs regarding one's job whether it is respectable, mentally demanding / challenging and rewarding Finally, the behavioral component includes people's actions

in relation to their work such as tardiness, working late, faking illness in order to avoid work (Bernstein & Nash, 2008)

Job satisfaction refers to the positive attitudes or emotional dispositions people may gain from work or through aspects of work Employees’ job satisfaction becomes a central attention in the researches and discussions in work and organizational psychology because it is believed to have relationship with the job performance

Figure 1: Facets of job satisfaction (Hackman & Oldham, 1980; Smith, Kendall, &

Hulin, 1969)

Supervisory Support

The measure, developed by Greenhaus, Parasuraman, and Wormley (1990), includes 9 items to be exact Supervisor support is defined as the extent to which leaders value their

employees’ contributions and care about their well-being A leader with high supervisor

support is one that makes employees feel heard, valued, and cared about Although it

sounds simple, providing this kind of support is one of the hardest transitions to make when promoted from employee to supervisor The move from “process expert” to

“motivational leader” is possibly one of the largest steps one can take in his/her working life

Developmental Experiences

The measure, developed by Wayne, Shore and Liden (1997), includes 5 items to be obtained Developmental Experiences (DE) are defined as an individual’s experience of taking on demanding assignments that offer opportunity for learning and leadership The extent to which an assignment brings DE can depend on how the particular employee views the opportunity in his or her own mind Developmental assignments usually share

some common features: unfamiliar responsibilities, opportunity to create change, high levels of responsibility, working across boundaries, and managing diversity

Fairness in Skill – Based Pay

This measure, developed by Lee, Law and Bobko (1998), uses 4 items to assess fairness

in competency – skill based pay system Management’s strategy for the organization should be a critical determinant of the operations of the pay system Employees with higher skill levels receive higher pay than those with lower skill levels Skill-based structures link pay to the depth or breadth of the skills, abilities, and knowledge persons acquire that are relevant to the work

Perceived Ability – Job Fit

Ability-job fit can be defined as the "fit between the abilities of a person and the demands of a job, or the desires of a person and the attributes of a job" (Sekiguchi, 2004) When employees perceive change programs as having a significant impact on their job, they will have more negative attitudes towards the change We also expect that the extent to which employees perceive a better fit between their abilities and the revised job demands, they will have more positive attitudes about the change Taking these arguments together, we propose that the relationship between individual job impact and attitudes towards change is moderated by fit While perceptions of job impact and fit are related, they are conceptually distinct in that changes may or may not be a good fit with

an individual’s existing skill set A major change will be perceived more negatively to the extent that individuals view themselves as incapable of meeting the demands – that

is, perceive a worse fit And to the extent that individuals are asked to incorporate

changes to their job – changes that do not fit with their skills and abilities – the level of stress and uncertainty would increase

Argument for the relationship among the constructs

X theory and Y theory

Contents

Theory X and Theory Y represent two sets of assumptions about human nature and human behavior that are relevant to the practice of management Theory X represents a negative view of human nature that assumes individuals generally dislike work, are irresponsible, and require close supervision to do their jobs Theory Y denotes a positive view of human nature and assumes individuals are generally industrious, creative, and able to assume responsibility and exercise self-control in their jobs One would expect, then, that managers holding assumptions about human nature that are consistent with Theory X might exhibit a managerial style that is quite different than managers who hold assumptions consistent with Theory Y

In the 1950s, Douglas McGregor (1906-1964), a psychologist who taught at MIT and served as president of Antioch College from 1948-1954, criticized both the classical and human relations schools as inadequate for the realities of the workplace He believed that the assumptions underlying both schools represented a negative view of human nature and that another approach to management based on an entirely different set of assumptions was needed McGregor laid out his ideas in his classic 1957 article "The Human Side of Enterprise" and the 1960 book of the same name, in which he introduced what came to be called the new humanism

McGregor argued that the conventional approach to managing was based on three major propositions, which he called Theory X:

1.! Management is responsible for organizing the elements of productive money, materials, equipment, and people-in the interests of economic ends 2.! With respect to people, this is a process of directing their efforts, motivating them, controlling their actions, and modifying their behavior to fit the needs of the organization

enterprise-3.! Without this active intervention by management, people would be passive-even resistant-to organizational needs They must therefore be persuaded, rewarded, punished, and controlled Their activities must be directed Management's task was thus simply getting things done through other people

According to McGregor, these tenets of management are based on less explicit assumptions about human nature The first of these assumptions is that individuals do not like to work and will avoid it if possible A further assumption is that human beings

do not want responsibility and desire explicit direction Additionally, individuals are assumed to put their individual concerns above that of the organization for which they work and to resist change, valuing security more than other considerations at work Finally, human beings are assumed to be easily manipulated and controlled McGregor contended that both the classical and human relations approaches to management depended this same set of assumptions He called the first style of management "hard" and identified its methods as close supervision, tight controls, and coercion

The hard style of management led to restriction of output, mutual distrust, unionism, and even sabotage McGregor called the second style of management "soft" and identified its methods as permissiveness and need satisfaction McGregor suggested that the soft style of management often led to managers' failure to perform their managerial role He also pointed out that employees often take advantage of an overly permissive manager by demanding more but performing at lower levels

McGregor drew upon the work of Abraham Maslow (1908-1970) to explain why Theory

X assumptions led to ineffective management Maslow had proposed that man's needs are arranged in levels, with physical and safety needs at the bottom of the needs hierarchy and social, ego, and self-actualization needs at upper levels of the hierarchy Maslow's basic point was that once a need is met, it no longer motivates behavior; thus, only unmet needs are motivational McGregor argued that most employees already had their physical and safety needs met and that the motivational emphasis had shifted to the social, ego, and self-actualization needs Therefore, management had to provide opportunities for these upper-level needs to be met in the workplace, or employees would not be satisfied or motivated in their jobs

Such opportunities could be provided by allowing employees to participate in decision making, by redesigning jobs to make them more challenging, or by emphasizing good work group relations, among other things According to McGregor, neither the hard style of management based on the classical school nor the soft style of management inspired by the human relations movement were sufficient to motivate employees Thus,

he proposed a different set of assumptions about human nature as it pertains to the workplace

McGregor put forth these assumptions, which he believed could lead to more effective management of people in the organization, under the rubric of Theory Y The major propositions of Theory Y include the following:

1.! Management is responsible for organizing the elements of productive money, materials, equipment, and people in the interests of economic ends 2.! People are not by nature passive or resistant to organizational needs They have become so as a result of experience in organizations

enterprise-3.! The motivation, potential for development, capacity for assuming responsibility, and readiness to direct behavior toward organizational goals are all present in people-management does not put them there It is a responsibility of management

to make it possible for people to recognize and develop these human characteristics for themselves

4.! The essential task of management is to arrange organizational conditions and methods of operation so that people can achieve their own goals by directing their efforts toward organizational objectives

Thus, Theory Y has at its core the assumption that the physical and mental effort involved in work is natural and that individuals actively seek to engage in work It also assumes that close supervision and the threat of punishment are not the only means or even the best means for inducing employees to exert productive effort Instead, if given the opportunity, employees will display self-motivation to put forth the effort necessary

to achieve the organization's goals Thus, avoiding responsibility is not an inherent quality of human nature; individuals will actually seek it out under the proper conditions

large, rather than a small segment of the population Finally, it assumes that rather than valuing security above all other rewards associated with work, individuals desire rewards that satisfy their self-esteem and self-actualization needs

Although McGregor did not believe that it was possible to create a completely Theory Y-type organization in the 1950s, he did believe that Theory Y assumptions would lead

to more effective management He identified several approaches to management that he felt were consistent with the precepts of Theory Y These included decentralization of decision-making authority, delegation, job enlargement, and participative management Job enrichment programs that began in the 1960s and 1970s also were consistent with the assumptions of Theory Y

In the 1970s, 1980s, and 1990s, McGregor's conceptualization of Theory X and Theory

Y were often used as the basis for discussions of management style, employee involvement, and worker motivation Empirical evidence concerning the validity of Theory X and Theory Y, however, was mixed

Maslow’s needs theory

Contents

Maslow's hierarchy of needs theory states that people have a pyramid hierarchy of needs that they will satisfy from bottom to top Starting from mere physiological subsistence the Maslow hierarchy of needs covers belonging to a social circle to pursuing your talent through self-actualization Important to the hierarchy of needs theory is that Maslow felt that unfulfilled needs lower on the ladder would inhibit the person from climbing to the next step

The pyramid of needs is divided into two categories: deficiency needs (physiological and safety) and growth needs (belonging, self-esteem and self-actualisation) If the deficiency needs aren't satisfied, the person will feel the deficit and this will stifle his or her development

Figure 2: Maslow’s Hierarchy of Needs

Previous Research

Tang, T.L.; Ibrahim, A.H.; West, W.B (2002) “Effects of war – related stress on the satisfaction of human needs: The United States and the Middle East” International Journal of human needs: The United States and the Middle East” International Journal

of Management Theory and Practices 3 (1): 35 – 53

Cianci, R.; et al (2003) “Maslow’s hierarchy of needs: Does it apply in a collectivist culture” Journal of Applied Management and Entrepreneurship 8 (2): 143 – 161

Kendrick, D.T.;Griskevicius, V.; Neuberg, S.L.; Schaller, M (2010) “Renovating the pyramid of needs: Contemporary extensions built upon ancient foundations” Perspectives on Psychological Science 5 (3): 157 – 163

Self – argument

In my opinion, I think Maslow’s theory is affecting Job Satisfaction, Supervisory Support, Developmental Experiences, Fairness in Skill – Based Pay and Perceived Ability – Job Fit because it deeply researched into the nature of human beings in all aspects of psychology and physiology

Herzberg’s two factor theory

Contents

In 1959, Frederick Herzberg, a behavioural scientist proposed a two-factor theory or the motivator-hygiene theory According to Herzberg, there are some job factors that result

in satisfaction while there are other job factors that prevent dissatisfaction According

to Herzberg, the opposite of “Satisfaction” is “No satisfaction” and the opposite of

“Dissatisfaction” is “No Dissatisfaction”

Herzberg classified these job factors into two categories-

a.! Hygiene factors- Hygiene factors are those job factors which are essential for

existence of motivation at workplace These do not lead to positive satisfaction for long-term But if these factors are absent / if these factors are non-existant at workplace, then they lead to dissatisfaction In other words, hygiene factors are those factors which when adequate/reasonable in a job, pacify the employees and

do not make them dissatisfied These factors are extrinsic to work Hygiene

factors are also called as dissatisfiers or maintenance factors as they are

required to avoid dissatisfaction These factors describe the job environment/scenario The hygiene factors symbolized the physiological needs which the individuals wanted and expected to be fulfilled

b.! Motivational factors- According to Herzberg, the hygiene factors cannot be

regarded as motivators The motivational factors yield positive satisfaction These factors are inherent to work These factors motivate the employees for a superior performance These factors are called satisfiers These are factors involved in performing the job Employees find these factors intrinsically rewarding The motivators symbolized the psychological needs that were perceived as an additional benefit

Figure 3: Herzberg’s Two – Factor Theory

Previous research

Robert J.House and Lawrence A Wigdor (2006) “Herzberg’s dual – factor theory of job satisfaction and motivation: A review of the evidence and a criticism” Personnel Psychology, Vol 20 (4), 369 – 390

King, Nathan (1970) “Clarification and evaluation of the two – factor theory of job satisfaction” Psychological Bulletin, Vol 74 (1), 18 – 31

Self – argument

Satisfaction and dissatisfaction do not form a continuum therefore, with one decreasing

as the other one increases To improve productivity and attitudes in the workplace, managers must recognize and attend to both sets of factors and not make the false assumption that increasing satisfaction will automatically lead to a decrease in dissatisfaction

Any company should use elements of Herzberg’s theory to motivate its employees The company pays attention to factors causing dissatisfaction as well as those causing satisfaction

As an example, employees are motivated and empowered by timely and appropriate communication, by involving personnel in decision-making and by delegating wherever possible Forums should be held every year in which staff can provide input on pay rises The personnel should be offered the opportunity to give their input when policies are designed, helping to prevent feelings of alienation and dissatisfaction

Hackman & Oldham’s Job Characteristics

Job characteristic theory proposes 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)

McClelland’s needs theory

In his in his 1961 book 'The Achieving Society', David McClelland expounds on his acquired-needs theory He proposed that an individual's specific needs are acquired over time and are shaped by one's life experiences He described three types of motivational need A person's motivation and effectiveness in certain job functions are influenced by these three needs

Figure 5: McClelland’s needs theory

Previous research

Harrell, Adrian M.; Stahl, Michael J (1981) “A behavioral decision theory approach for measuring McCellland’s trichotomy of need” Journal of Applied Psychology, Vol

66 (2), 242 – 247