Research about job satisfaction at HD bank

ABSTRACT This purpose of this research is way to find the factors influence to the Job Satisfaction of employees working at HDBank.. Hypotheses used this research includes five construc

Ho Chi Minh City, July 2016

MASTER OF BUSINESS ADMINISTRATION

INTERNATIONAL PROGRAM

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RESEARCH PROJECT (BMBR5103)

RESEARCH ABOUT JOB SATISFACTION

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ADVISOR’S SIGNATURE

(August 2016)

NGUYEN THE KHAI (DBA)

Suggestions have been received from many of my lecturer and classmate during

research progress

Each of those who have offered comments and suggestions always has my thanks

The efforts of many people are needed to develop and improve this research

Among these people are the reviewers and consultants who point out areas of

concern, cite areas of strength, and make recommendations for change

I am grateful for the outstanding support from my lecturer NGUYEN THE KHAI

(DBA) and HDBank for allowing the employees to answer the questions in the

survey and support too much information related to my research

And, I also specially thank to my members of family, friends and colleagues who

always mobilize me to finish this research

Once again, I appreciate very much to all

Tran Nguyen Thy Chau, Student

ABSTRACT 1

PART ONE: INTRODUCTION 2

About HDBank 2

Organization structure and corporate culture 6

Organization structure: 6

Corporate culture: 6

Research problem statement 7

Research objectives 7

Research scope 8

Significance of research 8

PART TWO: LITERATURE REVIEW 9

Definition of Constructs 9

Overall Job Satisfaction 9

Satisfaction with My Supervisor 9

Person-Organization Fit 9

Fairness in Skill-based Pay 10

Work Tension 11

Argument for the relationship among the constructs 11

X theory and Y theory 11

Maslow’s theory 13

Alderfer’s ERG theory 15

McClelland’s theory 16

Hypotheses 22

Research Model 22

PART THREE: METHODS 23

Data collection 23

Design template scale 23

PART FOUR: RESULTS 30

Cronbach’s Alpha 30

Cronbach’s Alpha of constructs 30

Statistics information 32

Descriptive statistics 32

Correlation statistics 33

Hypotheses testing 34

Hypothesis proposed (H1) 34

PART FIVE: CONCLUSIONS 38

Discussion 38

Limitation of research 38

Forecast recommendation 39

REFENRENCES 40

APPENDIX 42

Appendix 1: Survey 42

Appendix 2: Presentation 48

Figure 1: Maslow's hierarchy of needs, represented as a pyramid with the more basic

needs at the bottom 14

Figure 2: Alderfer’s ERG theory 16

(Source: www.springerplus.com/content/2/1/246/figure/F2?highres=y) 16

Figure 3: McClelland’s theory 17

Figure 4: Herzberg’s two-factor theory 19

Figure 5: Hackman and Oldham's Job Characteristics 21

Figure 6: Research Model of Job Satisfaction 22

(Table 1: Person-Organization Fit Scale) 24

(Table 2: Satisfaction with My Supervisor Scale) 24

(Table 3: Fairness in Skill-based Pay Scale) 25

(Table 4: Overall Job Satisfaction Scale) 26

(Table 5: Work tension Scale) 27

(Table 6: Time table for data collection progress) 28

(Table 7: Description of interviewees) 29

(Table 8: Cronbach’s Alpha - Internal Consistency) 30

(Table 9: Cronbach’s Alpha of Overall Job Satisfaction) 30

(Table 10: Cronbach’s Alpha of Satisfaction with My Supervisor) 31

(Table 11: Cronbach’s Alpha of Person-Organization Fit) 31

(Table 12: Cronbach’s Alpha of Fairness in Skill-based Pay) 31

(Table 13: Cronbach’s Alpha of Work Tension) 32

(Table 14: Descriptive statistics) 32

(Table 15: Correlation statistics) 33

(Table 16: Model summary of H1) 34

(Table 17: Coefficients of H1) 34

(Table 18: Model summary of H2) 35

(Table 19: Coefficients of H2) 35

(Table 20: Model summary of H3) 36

(Table 21: Coefficients of H3) 36

(Table 22: Model summary of H4) 37

(Table 23: Coefficients of H4) 37

FIGURE & TABLE

ABSTRACT

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

of employees working at HDBank

This research project will use Business Research Methods to determine Job Satisfaction and what other main factors that it influence job satisfaction And this

research also was conducted by quantitative method with source data is surveys that it issued by offline to 500 employees of HDBank to collect the ideas and comments of employees about job satisfaction

Next, the result of these surveys shall be statistically analyzed by software SPSS version 22 (copyright of IBM) Hypotheses used this research includes five constructs:

one dependent construct (Job Satisfaction) and four independent constructs (Satisfaction with My Supervisor, Person-Organization Fit, Fairness in Skill-based Pay and Work Tension)

I expect that the results of this research will help the CEO; managers of HDBank to have some reference aspect in human resource management to improve and increase our quality resource based on job satisfaction of employees as well as you should have perception clearly that job satisfaction of employees will impact to working effective, ability of competitiveness of HDBank in Vietnamese banking system

Key words in this research: Global Job Satisfaction, Satisfaction with My Supervisor, Person-Organization Fit, Fairness in Skill-based Pay, Work Tension and HDBank

PART ONE: INTRODUCTION

About HDBank

History:

Ho Chi Minh City Development Joint Stock Commercial Bank, abbreviated as HDBank, was founded on 04th January, 1990; with its present head office based at 25 Bis Nguyen Thi Minh Khai, District 1, Hochiminh City HDBank is one of the pioneering joint stock commercial banks in Vietnam Its typical shareholders are Viet Nga Insfrastructure Investment Corporation – SOVICO Holdings, Hochiminh Finance and Investment state-owned Company – HIFU, Tan Thuan Industrial Promotion Company – IFC, Thuduc Housing Development Corporation – Thuduc House, Saigon Real Estate Corporation – RESCO, Saigon Trading Group – SATRA, etc

As one of the top 10 commercial banks in Vietnam with more than 25 years of experience in Vietnam and currently advancing to the world, HDBank possesses the financial capacity, advanced technology and flexible services which can satisfy the demands of customers from various sectors, including individuals, corporation and investors The bank has standardised its branch model and been creating professional and friendly standards for its customer service to realise its mission "committed to your best returns and community development"

With strength of merger from DaiABank and HDFinance in the year of 2013, HDBank became one of the largest lenders in Vietnam The bank has a chartered capital of VND 8.1 trillion and manages total assets of VND 100 trillion, a staff over 6.000 personnel HDBank has expanded into a network of over 220 offices and 3,000 transaction spots with an eye on opportunities to open branches overseas In the international market, HDBank has established relations with more than 300 banks and branches in over 150 countries and territories

For these activities, HDBank has received many awards, prizes in domestic and many international honours, such as "Best Cash Management in Vietnam" awarded by Asiamoney and Euromoney

With a recent burst of growth, the bank has been able to build momentum and lay the foundation to rise to new heights

In July 2015, HDBank has about 220 sales points covering major economic centers such as Ho Chi Minh City, Hanoi, Dong Nai, Binh Duong, Ba Ria - Vung Tau, Binh Phuoc, Tay Ninh, DakLak, Gia Lai, Kon Tum, Lam Dong, Binh Thuan, Khanh Hoa, Binh Dinh, Quang Ngai, Da Nang, Thua Thien - Hue, Ha Tinh, Nghe An, Thanh Hoa, Quang Ninh, Hai Phong, Lang Son, Bac Ninh, Hai Duong, Lao Cai, Long An, Vinh Long, Can Tho, Soc Trang, Ca Mau, Dong Thap, An Giang, KienGiang

Major Awards

• President's Certificate of Merit

• The National Quality Award as conferred by the Prime Minister

• Viet Nam's Top 500 Biggest Enterprises

• Viet Nam's Strong Brand Award

• For-the-Community-Development Award

• Sustainable Brand Award

• World Payment Management Prize (conferred by Citigroup)

• Standard Payment Telegram Making Quality Award (conferred by Wells Fargo Bank, N.A)

• Outstanding International Payment Prize (awarded by Citibank)

• The head emulation flag in movements

• The best Savings Bank Award in 2011

• Certificate of merit as conferred by the Prime Minister

• Union Emulation flag for strong excellent enterprises

• “The excellent annual report" of Vision Awards 2010 conferred by League of American Communications Professionals (LACP)

• The best Cash Management of Vietnam conferred by Asiamoney

Scope busines:

HDBank’s business operations include:

Mobilizing capital (short-term, mid-term, long-term in different methods such

as limited, unlimited and certificates of deposits (CD)

Receiving investment and development capital from national organizations Borrowing from another credit institutions

Lending (short-term, mid-term, long-term)

Discounting commercial papers, bonds

Executing interbank payment service

Trading foreign currencies, bullion in domestic and foreign markets according

to international standard

Conducting international payment transactions

Mobilizing capital from foreign countries

Implementing other banking services in accordance with foreign banks

Development strategy and investment:

Accomplish the restructuring program; build up a sound management system based on high-tech utilization, sustainability and full compliance with relevant laws and regulations…

+ Expand network coverage and its efficiency

+ Execute the retail banking strategy

+ Develop the model of investment bank with the core divisions are Funding and Currency Trading under the support of securities companies, fund management companies, etc

+ Develop profitable financial investment plans and diversify financial investment models

+ Build a professional and consistent brand for the whole system as well as develop HDBank as a strong brand in banking and finance

Vision, Missions and Core values

They aim to co-operate and grow with partners on further shared developments They recognize the importance of their shared responsibilities with the local community and society at large

Contact

Legal name:

Headquarters: 25 Bis Nguyen Thi Minh Khai street, District 1, HCMC

Phone: (08) 62 915 916 Fax: (08) 62 915 900 SWIFT code: HDBCVNVX

Email:info@hdbank.com.vn Websitewww.hdbank.com.vn

Organization structure and corporate culture

HDBank aims to form a dynamic and efficient organization that has an in-depth understanding of their products and services, their personnel will perform their duties

in accordance with a strict code of professional ethics while prioritizing clients’ and the bank’s interests

They encourage their staff’s curiosity, creativity and desire to develop their talents and further their careers

They also encourage their staff to show a high level of responsibilities and commitment in spreading harmony and goodwill amongst the community

Research problem statement

Job satisfaction in HDBank is always a big concern among its Board of Directors because they clearly consider that only satisfied employees can help their organization

to be successful

Currently, in the context of severe economic environment in Vietnam, especially in the banking system nowadays, HDBank has faced a tough competition with other commercial banks in the field Therefore, to maintain the position of top brand in banking sector, HDBank always aims to create the highest satisfaction among employees to help organization to operate more efficiently; increase quality of products and services; build brand awareness, customer trust and loyalty… But, some

factors such as Satisfaction with Supervisor, Fairness in skill-based Pay, Organization Fit and Work tension are problems for human resource management at

Person-HDBank

Research objectives

This purpose of this research is the way to find the factors which affect to the Job Satisfaction of employees working at HDBank

My research will focus on 3 main matters:

 Firstly: searching for related information and trying to define what the meaning

of Job Satisfaction is of employees at HDBank

 Secondly: designing the research model and testing with related factors to

check the influences between these factors to access strong / weak level of each factor in the progress

 Thirdly: discussing and proposing recommendation to improve the

effectiveness and forecasting the human resources management at HDBank in

the future

Research scope

The scope of research is for the entire employees at HDBank, including: General Director, Vice General Directors, managers at each branch, subordinate and employees working at HDBank; it does not include: Chairman, Board of Directors, Shareholder, Supervisory Board, and employees are under probation period or in maturity leave The survey scope is within the territory of Vietnam, which includes 500 employees of HDBank

The contents of this research are only including factors influencing to Job Satisfaction

at HDBank; it does not have intention of re-structuring, changing and replacing the employees

This survey was conducted from 1st August 2015 to 25th May 2016

Significance of research

The result of this research is being conducted in order to have an understanding of the factors influencing the Job Satisfaction in organization It will help the management

of the company to have a strong view of problems that affected the skilled employees

in the company This research could also support as a reference for other managers to improve the working environment according to the result of the analysis from the research With the research results, management of HDBank could re-arrange the policy and set out a strategy to obtain its methods by creating better thinking on Job Satisfaction

PART TWO: LITERATURE REVIEW

Definition of Constructs

Overall Job Satisfaction

It was developed by Cammann, Fichman, Jenkins (1983) It includes 3 items

The concept of job satisfaction has been developed in many ways by many different researchers and practitioners One of the most widely used definitions in

organizational research is that of Locke (1976), who defines job satisfaction as “a pleasurable or positive emotional state resulting from the appraisal of one's job or job experiences” Others have defined it as simply how content an individual is with his or

her job; whether he or she likes the job or not It is assessed at both the global level or

at the facet level

Job satisfaction can also be seen within the broader context of the range of issues which affect an individual's experience of work, or their quality of working life Job satisfaction can be understood in terms of its relationships with other key factors, such

as general well-being, stress at work, control at work, home-work interface, and working conditions

Satisfaction with My Supervisor

It was developed by Scarpello and Vandenberg (1987), describes an employee’s satisfaction with his or her immediate supervisor It includes 4 items

Supervisor always affect the employees, subordinates The impact is reflected in the treatment, support, reward, motivate, encourage and support Satisfaction with their supervisor is increasing, the working efficiency of organizations increasing

and shared values among coworkers This can translate to increased levels of trust and

a shared sense of corporate community (Boone & Hartog, 2011) This high value congruence would in turn reap benefits for the organization itself, including reduced turnover, increased citizenship behaviors, and organizational commitment (Andrews et al., 2010; Gregory et al., 2010) The attraction–selection–attrition theory states that individuals are attracted to and seek to work for organizations where they perceive high levels of person–organization fit (Gregory et al., 2010) A strong person–organization fit can also lead to reduced turnover and increasedorganizational citizenship behaviors (Andrews, Baker, & Hunt, 2010)

Fairness in Skill-based Pay

It was developed by Lee, Law, and Bobko (1998) The Skill-based Pay (SBP) system was pioneered by Procter and Gamble in the late 1960s and started to be applied increasingly by various organizations since then However, the existing literature about SBP or competency-based pay is very limited and does not provide sufficient guidance regarding its impact on organizational and employee effectiveness Most of the existing studies on SBP followed either case study or exploratory survey approaches that lack generalization and analytical rigor (Murray & Gerhart, 1998) In order to understand the appropriate conditions for effective application of SBP and its outcomes, there is a need for studies that use rigorous research methods and theoretical models There is no SBP design that can work for every organization Instead, the best design should be determined by a complete analysis of the work activities, organizational culture, and the available human, technical, and financial resources A pay system in general should be tailored to fit the technical system and the social system in the organization (Ledford & Bergel, 1991) This is particularly important when the pay system is relatively new and not commonly used as in the case of SBP

An important issue here is to analyze the existing organizational culture and the degree

of readiness in accepting the change implied in adopting an SBP system The lack of previous knowledge and experience of SBP system by both employees and managers entails careful planning in ensuring a smooth transition to the new pay system It is very important to inform, involve and continuously communicate with employees, to

ensure their understanding, acceptance and participation in the process of planning, designing and implementing the SBP system It includes 4 items

Work Tension

It was developed by House and Rizzo (1972), describes an employee’s psychological

or psychosomatic symptoms associated with tension experienced at work It includes 7 items

Job tension is define as an ‘adverse reaction people have to excessive pressures or other types of demand placed on them’.3 Work-related stress is thus understood to occur when there is a mismatch between the demands of the job and the resources and capabilities of the individual worker to meet those demands This definition emphasises the relationship between individuals and their working environment, and helps to explain why a situation that one person regards as a stimulating challenge causes another to experience a damaging degree of stress

Argument for the relationship among the constructs

X theory and Y theory

Contents

Theory X and Theory Y are theories of human motivation that were created and developed by Douglas McGregor at the MIT Sloan School of Management in the 1960s These theories describe two contrasting models of workforce motivation that have been used in human resource management, organizational behavior, organizational communication and organizational development

X theory and Y theory have to do with the perceptions that managers hold of their employees, which in turn influence their management style

X theory: according to this theory, X type individuals are considered to be inherently

lazy and not fond of their jobs As a result, an authoritative management style is required to ensure that individuals fulfill their objectives Workers managed this way need to be closely supervised and comprehensive systems of control need to be developed A hierarchical structure is needed with narrow span of control at each and every level According to this theory, employees will show little ambition without an

enticing incentive program and will avoid responsibility when they can According to

Dr Kumi Mark, if the organizational goals are to be met, X theory managers must rely heavily on the threat of punishment to gain compliance of employees When practiced, this theory can lead to mistrust, highly restrictive supervision and a punitive atmosphere The X theory manager tends to believe that all actions can be traced back and the individual responsible for them needs to be directly rewarded or reprimanded depending on the action's results This managerial style is more effective when used to motivate a workforce that is not inherently motivated to perform It is usually exercised in professions where promotion is infrequent, unlikely or even impossible and where workers tend to perform repetitive tasks in their jobs One major flaw of this management style is that it limits the potential of the employees under it and discourages out of the box thinking

Y theory: in this theory, management assumes employees can be ambitious,

self-motivated and exercise self-control It is believed that employees enjoy their mental and physical work duties According to them, work is as natural as play They possess the ability for creative problem solving, but their talents are underused in most organizations Y theory managers believe that given the proper conditions, employees will learn to seek out and accept responsibility, exercise self-control and self-direction

in accomplishing objectives to which they are committed Y theory manager believes that, given the right conditions, most people will want to do well at work They believe that the satisfaction of doing a good job is a strong motivation Many people interpret

Y theory as a positive set of beliefs about workers A close reading of The Human Side of Enterprise reveals that McGregor simply argues for managers to be open to a more positive view of workers and the possibilities that this creates He thinks that Y theory managers are more likely than X theory managers to develop a climate of trust with employees required for employee development This would include managers communicating openly with subordinates, minimizing the difference between superior-subordinate relationships, creating a comfortable environment in which subordinates can develop and use their abilities This environment would include sharing of decision making so that subordinates have a say in decisions that influence them

X theory and Y theory combined: X and Y theory are not different ends of the same

continuum, but rather two different continua in themselves McGregor has identified X theory and Y theory differently X theory assumptions are that individuals dislike their careers X theory people have to be supervised Y theory assumptions are that individuals like their careers and are willing to take part in responsibility Y theory people don't need supervision and can be expected to be productive in their jobs

Previous research

Sahin, F (2012) “The mediating effect of leader-member exchange on the relationship between X and Y theory management styles and effective commitment: A multilevel analysis” Journal of Management and Organization, 18 (2), 159–174

Self-argument

Personally, I think Theory X and Theory Y will have a strongly impact to Organization Fit, because it helps us to have a clear perception of employees’ characteristics in organizations After that, it affects Job Satisfaction

Person-Maslow’s theory

Contents

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

in his 1943 paper “A Theory of Human Motivation" in Psychological Review”

Maslow subsequently extended the idea to include his observations of humans' innate curiosity His theories parallel many other theories of human developmental psychology, some of which focus on describing the stages of growth in humans

Maslow used the terms “physiological”, “safety”, “belongingness” and “love”,

“esteem”, “self-actualization” and “self-transcendence” to describe the pattern that

human motivations generally move through

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

neurotic people, writing that “the study of crippled, stunted, immature, and unhealthy specimens can yield only a cripple psychology and a cripple philosophy” Maslow

studied the healthiest 1% of the college student population

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

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 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

Kenrick, 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

Figure 1: Maslow's hierarchy of needs, represented as a pyramid with the more basic needs at the bottom

(Source: www.honolulu.hawaii.edu/intranet/committees/FacDevCom/guidebk/teachtip/maslow.htm)

Personally, I think Maslow’s theory is affecting to Job Satisfaction, Satisfaction with Supervisor, because it deeply researched into the nature of human beings in all aspects

of psychology and physiology

Alderfer’s ERG theory

Contents

Clayton Paul Alderfer (born September 1, 1940 in Sellersville, Pennsylvania) is an American psychologist who further developed Maslow's hierarchy of needs by categorizing the hierarchy into his ERG theory (Existence, Relatedness and Growth) The existence group is concerned with providing the basic material existence requirements of humans They include the items that Maslow considered to be physiological and safety needs The second group of needs is those of relatedness - the desire people have for maintaining important interpersonal relationships These social and status desires require interaction with others if they are to be satisfied, and they align with Maslow's social need and the external component of Maslow's esteem classification Finally, Alderfer isolates growth needs: an intrinsic desire for personal development These include the intrinsic component from Maslow's esteem category and the characteristics included under self-actualization

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

Figure 2: Alderfer’s ERG theory (Source: www.springerplus.com/content/2/1/246/figure/F2?highres=y)

Maslow's hierarchy of needs in the 1940s McClelland stated that we all have these three types of motivation regardless of age, gender, race, or culture The type of motivation that each individual is driven by is changed by life experiences and the opinions of their culture

Personally, I think McClelland’s theory has shown that when a manager needs to work

with others culture, he will need to adjust to see that the demand for Job Satisfaction is

quite different from one person to another

Figure 3: McClelland’s theory (Source: www.mindtools.com/pages/article/human-motivation-theory.htm)

Herzberg’s two-factor theory

Contents

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

dual-Two-factor theory fundamentals: Attitudes and their connection with industrial mental health are related to Abraham Maslow's theory of motivation His findings have had a considerable theoretical, as well as a practical, influence on attitudes toward administration According to Herzberg, individuals are not content with the satisfaction of lower-order needs at work; for example, those needs associated with minimum salary levels or safe and pleasant working conditions Rather, individuals look for the gratification of higher-level psychological needs having to do with achievement, recognition, responsibility, advancement, and the nature of the work itself This appears to parallel Maslow's theory of a need hierarchy However, Herzberg added a new dimension to this theory by proposing a two-factor model of motivation, based on the notion that the presence of one set of job characteristics or incentives leads to worker satisfaction at work, while another and separate set of job characteristics leads to dissatisfaction at work Thus, satisfaction and dissatisfaction are not on a continuum with one increasing as the other diminishes, but are independent phenomena This theory suggests that to improve job attitudes and productivity, administrators must recognize and attend to both sets of characteristics and not assume that an increase in satisfaction leads to decrease in un-pleasurable dissatisfaction

Figure 4: Herzberg’s two-factor theory (Source: www.strategicleadershipinstitute.net/news/start-with-herzberg-if-motivation-lacks-at-work/)

This theory enables administrators to know the factors that cause dissatisfaction for employees and thereby seeks to eliminate these factors For example, employees may

be dissatisfied with their jobs because their salaries are too low, superior too strict supervision; relationship with colleagues is not good Thus, managers must find ways

to improve wages, reduced monitoring and colleagues built the better However, when the factors causing discontent removed, does not mean that employees will be satisfied If you want to motivate employees, make them happy in their work, the user needs to pay attention to factors such as achievement, recognition and assignment For example, employees will feel satisfied with the work when they are given the right skills and their personalities, have the opportunity to learn, improve their skills and career advancement

Hackman and Oldham's Job Characteristics

Contents

In 1975, Greg R Oldhamand J Richard Hackman constructed the original version of the Job Characteristics Theory (JCT), which is based on earlier work by Turner and Lawrence and Hackman and Lawler Turner and Lawrence provided a foundation of objective characteristics of jobs in work design Further, Hackman and Lawler indicated the direct effect of job characteristics on employee's work related attitudes and behaviors and, more importantly, the individual differences in need for development, which is called Growth Need Strength in Job Characteristics Theory

In 1980, Hackman and Oldham presented the final form of the Job Characteristics Theory in their book Work Redesign The main changes included the addition of two more moderators - Knowledge and Skill and Context Satisfaction, removal of the work outcomes of absenteeism and turnover, and increased focus on Internal Work Motivation Several of the outcome variables were removed or renamed as well Concentration was shifted to the affective outcomes following results from empirical studies that showed weak support for the relationship between the psychological states and behavioral outcomes

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

Figure 5: Hackman and Oldham's Job Characteristics

(Source: edweb.sdsu.edu/people/arossett/pie/Interventions/jobdesign_1.htm)

responsibility was a result of their work Accountability will lead to a sense of autonomy

Hypotheses

Based on the theoretical basis of the above, we would propose four hypotheses (H) influence to Job Satisfaction as below:

 H1: There is a positive relationship between satisfaction with my supervisor

and overall job satisfaction

 H2: An employee’s person-organization fit is positively related to overall job

satisfaction

 H3: Fairness in Skill-based pay is positively related to overall job satisfaction

 H4: An employee’s work tension relative is negatively related to overall job

satisfaction

Research Model

Figure 6: Research Model of Job Satisfaction