Research on job satisfaction at tuong an vegetable oil JSC vietnam

Research on job satisfaction at tuong an vegetable oil JSC vietnam Research on job satisfaction at tuong an vegetable oil JSC vietnam Research on job satisfaction at tuong an vegetable oil JSC vietnam Research on job satisfaction at tuong an vegetable oil JSC vietnam Research on job satisfaction at tuong an vegetable oil JSC vietnam Research on job satisfaction at tuong an vegetable oil JSC vietnam

MASTER OF BUSINESS ADMINISTRATION INTERNATIONAL PROGRAMME

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RESEARCH PROJECT (BMBR5103)

RESEARCH ON JOB SATISFACTION

AT TUONG AN VEGETABLE OIL JSC (VIETNAM)

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

Ho Chi Minh city, Vietnam - July 2016

ADVISOR’S ASSESSMENT

ADVISOR’S SIGNATURE

NGUYEN THE KHAI (DBA) Date: July 2016

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I am especially grateful for my co-advisors, class mates who helped me a lot in getting this thesis more clearly and finalizing this project within the limited time frame

I would like to send the profound thanks to my old friends at Tuong An Vegetable Oil Joint Stock Company who helped me a lot to send and collect the research surveys

Lastly, I would like to thank my family, my parents, my wife and my son for all their love, encouragements and supports

Student: Dang Hoang Giang

TABLE OF CONTENTS

Contents

ADVISOR’S ASSESSMENT 1

ACKNOWLEDGEMENTS 2

TABLE OF CONTENTS 3

LIST OF FIGURES 5

LIST OF TABLES 6

ABSTRACTS 8

PART 1: INTRODUCTION 9

1 About Tuong An 9

1.1 History 9

1.2 Scope of Business 11

1.3 Development Strategy and Investment 12

1.4 Vision, Mission, Core Value, Business Philosophy, Quality Policy 12

1.5 Contacts 14

1.6 Organization Structure 15

2 About the Research 15

2.1 Research Problem Statement 15

2.2 Research Objectives 16

2.3 Significance of Research 16

2.4 Scope of the Research 17

PART 2: LITERATURE REVIEW 18

1 Definition of Constructs 18

1.1 Job Satisfaction 18

1.2 Work Schedule Flexibility 19

1.3 Job Stress 19

1.4 Fairness in Skill Based Pay 20

1.5 Job Overload 21

2 Argument for the Relationship among the Constructs 21

3 Hypotheses and Research Model 30

PART 3: METHODOLOGY 31

1 Data Collection 31

1.1 Design Template Scale 31

1.2 Data Collection Progress 33

1.3 Time Table for Sending, Receiving and Checking Survey: 33

2 Data Analysis 34

PART 4: RESULTS 35

1 Cronbach’s Alpha 35

1.1 Cronbach’s Alpha Standard applied 35

1.2 Cronbach’s Alpha of Constructs 35

1.3 Statistics Information 36

2 Hypotheses Testing 39

PART 5: CONCLUSIONS 44

1 Discussion 44

2 Limitation of Research 44

3 Forecasts and Recommendations 45

BIBLIOGRAPHY 46

APPENDIX 1: SURVEY/ QUESTIONNAIRES 49

APPENDIX 2: PRESENTATION/ SLIDES 52

LIST OF FIGURES

Figure 1: Tuong An’s Core Values 13

Figure 2: Tuong An’s Organizational Structure 15

Figure 3: Mc.Gregor’s X Theory and Y Theory 22

Figure 4: Maslow's Hierarchy of Needs 24

Figure 5: Alderfer’s ERG Theory 25

Figure 6: McClelland’s Theory 26

Figure 7: Herzberg’s Two-factor Theory 28

Figure 8: Hackman and Oldham's Job Characteristics 29

Figure 9: Research model of Job Satisfaction 30

LIST OF TABLES

Table 1: Research Scale of Constructs 18

Table 2: Job Satisfaction Scale 31

Table 3: Job Flexibility Scale 31

Table 4: Job Stress Scale 32

Table 5: Fairness in Skill Based Pay Scale 32

Table 6: Job Overload Scale 33

Table 7: Time table for Collecting Progress 33

Table 8: Cronbach’s Alpha – Internal Constency 35

Table 9: Cronbach’s Alpha of Job Satisfaction (JSA) 35

Table 10: Cronbach’s Alpha of Work schedule flexibility (WSF) 35

Table 11: Cronbach’s Alpha of Job stress (JST) 36

Table 12: Cronbach’s Alpha of Fairness in skill-based pay (FSB) 36

Table 13: Cronbach’s Alpha of Job Overload (JOL) 36

Table 14: Descriptive statistics of Job Satisfaction (JSA) 37

Table 15: Descriptive statistics of Work Schedule Flexibility (WSF) 37

Table 16: Descriptive statistics of Job Stress (JST) 37

Table 17: Descriptive statistics of Fairness in Skill-Based Pay (FSB) 38

Table 18: Descriptive statistics of Job Overload (JOL) 38

Table 19: Correlation Statistics 39

Table 20: Model Summary of H1 40

Table 21: Cooefficients of H1 40

Table 22: Model Summary of H2 41

Table 23: Cooefficients of H2 41

Table 24: Model Summary of H3 41

Table 25: Cooefficients of H3 42

Table 26: Model Summary of H4 42 Table 27: Cooefficients of H4 42 Table 28: Overall Hypotheses Testing Results 43

The hypotheses used in this research includes five constructs including one dependent construct (Job Satisfaction) and four independent constructs (Work Schedule Flexibility, Job Stress, Fairness in Skill Based Pay and Job Overload)

I do hope that the results of this research will assist the management and HR Department of Tuong An to have some good references in human resource management So that they could find out their keys to improve and increase their quality human resource based on Job Satisfaction Besides, being as a researcher, I will have a clearer perception of that job satisfaction of employees will impact on working effectiveness and competitiveness power of every stakeholder in the Vietnam vegetable oil market

PART 1: INTRODUCTION

1 About Tuong An

1.1 History

Founded in 1977, Tuong An Vegetable Oil Joint Stock Company (abbreviated as “Tuong An” or

“TAC”) is one of Vietnam’s leading vegetable oil companies It was formerly a State owned enterprise named as “Tuong An Vegetable Oil Public Administration Enterprise” On the 20th of November 1977, the Ministry of Foods & Foodstuffs (being known as the Ministry of Agriculture & Rural Development) issued the Decision No 3008/LTTP-TC to re-structure and transformed Tuong An Vegetable Oil Public Administration Enterprise into the “National Industries Enterprise” under the management of the Southern Vegetable Oil Corporation

In July of 1984, the State terminated the Naitonal System on Budget Subsidies and handed over the rights of doing business and production to all people Tuong An Vegetable Oil Factory was also changed and became a member of the Vietnam Union of Vegetable Oil Factories Accordingly, Tuong An has a legal independent status and its own accounting regime which can actively be engaged in every registered fields of production and business

During this period, Tuong An mainly manufactured some traditional products including Vegetable Shortening, Margarine and Soap Cakes At that time, it was the golden age of the Shortening products Tuong An’s equipment was operated at full capacity but could not meet enough buying demands of various instant noodle processing factories

In field of exports, Tuong An mainly exported refined coconut oil - a traditional famous produce

of Vietnam, which its volume was just accounted for 32% of the total output Since Tuong An tried its best to improve its product quality and diversification, its brands began to be more popular and reputable in the market

From 1991 until October 2004, Tuong An tried to boost its production capacity and expanded its distribution channels aimed at preparing for entering the era of global economic integration At that time, the State started its economic open policy to create more favourable conditions for import and export industries Some imported vegetable oil products began to appear in the Vietnamese market together with some local vegetable oil processing small and medium size enterprises (SMEs) were established The competition was very tough The vegetable oil market

in Vietnam was becoming hotter and harder

In 1991, in view of the above-said economic context, various oils and fats products of Tuong An had to fiercely defend against imported oils and fats products, especially Shortening products

Under these circumstances, Tuong An had to re-define its product strategies that maintaining its Margarine and Shortening as the company’s traditional items for loyal consumers; on the other hand, Tuong An invested in improvement of packaging designs combining with sending healthy messages to local consumers on using vegetable oil in stead for animal fats Tuong An boosted its production of liquid refined vegetable oil and expanded its domestic consumption market Tuong An’s trump card “Tuong An Cooking Oil” has been introduced in the market since October 1991 Until now, Tuong An was still one of Vietnam leading cooking oil processors The company positively propagated local consumers to daily use vegetable oil in stead for animal fat in order to prevent cardiovascular diseases

The Cooking oil consumption volume was increased rapidly within several years later on In

1992, the consumption volume is 215% higher than the one in 1991 In 1993, it was 172% higher than the one in 1992 Tuong An Cooking Oil has been favoured by local consumers and has become the flagship of Tuong An ever since

In the trend of regional and international economic integration, Tuong An has continuously innovated its manufacturing technology, equipment and setting up a modern production line from input of crude oils to output of finished products Tuong An carried out some investment projects aimed at renovating technology, boosting production capacity, diversifying product ranges, improving product quality and lowering production costs towards domestic consumptions and exports

Since the 01st of October 2004, Tuong An has been transformed from a State-owned enterprise into a Joint Stock company This was an important turning point for Tuong An The company’s organizational structure and scale of operation have been improved more and more to meet the needs of developments

On the 26th of December 2006, Tuong An’s stocks (TAC) was listed in the Ho Chi Minh Stock Exchange (HOSE) which has opened a new era of developments for Tuong An

In 2016, Tuong An has more than 500 employees and contributed much to the social economic development of the nation

Tuong An is currently being recognized as one of the most powerful, dynamic and sustainable enterprises in the vegetable oil industry of Vietnam with high potential for international integration

1.2 Scope of business

 Manufacturing, buying – selling, import - export of vegetable oil products and by-products, oily seeds, tree nuts and coconut

 Manufacturing, buying – selling all types of packaging

 Buying – selling, import – export of machinery, equipment, raw materials for manufacturing and processing of vegetable oil products

 Office, warehouse, house rental

 Manufacturing, buying – selling all types of spices for food industries; sauces (non- processed at the head quarter)

 Manufacturing, buying – selling all types of instant noodles and instant rice

 Service agency for buying – selling, goods depositing

 Amusement services (non-performed at the head quarter)

 Cultural and social activities (meeting, outdoor and indoor activities)

 Read estate business (building houses for rent or for sales)

Key products of Tuong An

Fats & condensed oils Industrial oils & fats Vitamin supplement oil

1.3 Development strategy and investment

 In 1994, the first PET bottle blowing line in Vietnam “made in Japan” was invested by Tuong An in the vegetable oil industry

 In 1997, an Automatic filling line “made in Germany” with capacity of 5,000 1-litre-bottle poured and filled per hour

 In 1998, Tuong An’s lands and premises were extended up to 22,000 m2; building a 1,000 KVA power transformer; installation of 4,300 m3 tanks

 In 2000, Tuong An installed an automatic oil refining line “Technology in Europe” with capacity of 150 tons per day Thanks to this investment, the total production capacity of Tuong

An was increased up to 240 tonnes per day

 In 2002, beyond its capacity, Tuong An acquired Nghe An Vegetable Oil Company and structure it to increase its production capacity from 30 tons per day up to 60 tons per day This unit is currently named as Vinh Vegetable Oil Factory

re- In 2004, Tuong An started its investment project “Phu My Vegetable Oil Factory” with production capacity of 600 tons per day at Phu My Industrial Zone No I, Ba Ria - Vung Tau province of Vietnam with a total investment value of more than VND 330 billion

 In 2005, Tuong An installed 2 more bottle filling lines “Technology in Europe”, bringing the total capacity of oil pouring and filling up to 22,500 liters per hour, 4.5 times higher than the previous period

 Besides, Tuong An’s investment project “Phu My Vegetable Oil Factory” in Phu My Industrial Zone I, Ba Ria - Vung Tau province of Vietnam continued to be accelerated to finish before the end of 2006 This was a positive preparation of Tuong An in the participatory process

of regional and international economic integration

1.4 Vision, Mission, Core value, Business Philosophy, Quality policy

 Core value

6 core values of Tuong An including: LEADERSHIP - INTEGRITY - COOPERATION - INNOVATION - QUALITY – PEOPLE are considered the complete set of values and guideline for all activities and works of each Tuong An’s “veg-oil-people”

By thoroughly understanding the content of values and applying them flexibly, correctly, fully in daily works, each staff has shown his responsibility in conserving, preserving and developing the standard ideology, culture or working spirit of Tuong An This is a solid foundation, great motivation that helps Tuong An overcome all difficulties, develop sustainably onto the next levels

Figure 1: Tuong An’s Core Values

 Business Philosophy

Tuong An desires to become one of the most favourite brands of oils and fats industries in every region and territory Therefore, Tuong An always keeps in its mind and its heart that the quality and innovation are always our most important companions Tuong An acts with customer-centered approach and commit to respond to all their needs

 Quality Policy

LEADERSHIP: Always leader

in perfecting oneself to be the best in the field, always be proactive in taking new tasks.

INTEGRITY: Always fulfill all commitments with partners, customers and colleagues

Always be transparent and earn

one’s trust.

COOPERATION: Always understand and cooperate well with partners, customers and colleagues to bring highest efficiency in work.

INNOVATION: Always think, explore and develop new breakthrough, practical ideas, bring high efficiency

in work and business production

activity.

QUALITY: Always commit

to ensure quality of work since the beginning show professionalism of Tuong

An “veg-oil-people”.

PEOPLE: The key element that is always valued, nurtured and developed at Tuong An Vietnam.

TUONG AN’S CORE VALUES

Tuong An always satisfies and be responsible for consumers’ needs by diversifying products and services, assuring quality, food safety with competitive price, respecting the business ethics and complying with laws

In April 2013, Tuong An was issued certificate ISO 9001:2008 and GMP - HACCP certified by QUACERT at Phu My Vegetable Oil Factory

Office/ Branches/ Factories:

 Phu My Vegetable Oil Factory in Ba Ria – Vung Tau province – Vietnam

 Vinh Vegetable Oil Factory in Vinh city, Nghe An of Vietnam

 Northern branch in Hung Yen province, Vietnam

 Representative office in Hanoi city, Da Nang city, Can Tho city of Vietnam

Distribution channels:

 More than 200 distributors and sales agents, 100 loyal industrial customers and 400 super markets, restaurants, food shops, school, kindergartens, etc in 64 provinces and city around Vietnam

 Sales agents and buyers in Japan, Middle East, East Europe, Hong Kong, China, etc

1.6 Organization structure

Figure 2: Tuong An’s Organizational Structure

2 About the Research

The research project is about Job Satisfaction at Tuong An Joint Stock Company where I had one year co-partnering with them from 2005 to 2006 as an expert for VOCARIMEX – Vietnam

I still have some good friends in this company who helped me a lot to complete this research

2.1 Research Problem Statement

Obviously, the vegetable oil business environment is always changed and having much pressure because of the State’s macro policies and the international economic integration process via various FTAs nowadays

Tuong An is currently developing fast and requires much on improvement of human resource Besides recruiting right people, Tuong An has to keep loyal employees and talents for the company Because of human shortage and “head-hunting” competition in the vegetable oil industry in the era of global integration, the retention of good employees are becoming a big issue for Tuong An Tuong An’s Management always realizes Job Satisfaction of employees as one of the most important factors for Tuong An towards its sustainable development

Actually, Tuong An JSC is a good place to work but still someone resign their works, especially newly recruited employees Before my research, there were not any research about Job Satisfaction for this company That is why I hope to do this research to know more about how the employees of every departments in Tuong An feel satisfy about their role and job or not And

to help the Management and HR Director of Tuong An to find out the best solutions to control and revise the HR policies, especially with the new recruited persons

In my experience and consulted by my friends in Tuong An, we focus on 4 key factors including Work schedule flexibility, Fairness in skill-based pay, Job stress and Job overload which may play the most important role to the Job Satisfaction at Tuong An Company I need to find out what are the positive and negative hypotheses and its relationships to the Job Satisfaction at Tuong An

2.2 Research Objectives

The purpose of this research is to find out key factors influencing on Job Satisfaction of employees working at Tuong An My research focus on 3 main factors:

 Firstly, searching related information and trying to define what meaning of Job

Satisfaction of employees at Tuong An

 Secondly, designing a research model and test related factors to check influences between the factors and accessing strong and weak level of each factor in influence progress

 Thirdly, discussing and proposing recommendations to improve the effectiveness and forecast the human resources management at Tuong An in the future

2.3 Significance of research

This research will assist the Management and HR Director of Tuong An to do understand and be aware of importance of Job Satisfaction which is the most important factor to express the HR policy’s effectiveness and corporate concept towards human resources

Hence, it may improve the employee’s LEADERSHIP - INTEGRITY - COOPERATION - INNOVATION - QUALITY – PEOPLE Thanks to this, Tuong An company will continue developing stronger in the future

2.4 Scope of the Research

The scope of research is for the entire employees at Tuong An JSC It does not include the Management and employees are under probation period or in maturity leave The survey scope is within the territory of Vietnam, This is a very hard research to make survey to 300 in total of over 500 company’s employees I am very happy to get back 278 fully completed surveys Contents of this research are only including factors influencing to Job Satisfaction at Tuong An

It does not have intention of re-structuring, changing and replacing the employees This survey was conducted from the 1st of June to the 30th of June 2016

PART 2: LITERATURE REVIEW

Cammann, C., Fichman, M., Jenkins, D., & Klesh, J

2 Independent

Variable (IV1)

Work schedule flexibility (WSF)

skill-Lee, C., Law, K.S., Bobko, P 1998 3

5 Independent

Variable (IV4)

Job overload (JOL)

Caplan, R.D., Cobb, S., French, J.K.P., Van Harrison, R., & Pinneau, S.R

Before that, Job Satisfaction has been developed in different ways by some different researchers and practitioners One of the most widely used definitions in organizational research is that of Edwin A Locke (1976), who defines the 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 the indications of whether employees likes their job or not and it is assessed at both the global level or at the facet level Job satisfaction can also be seen within the broader context of issues which affect an individual's working experiences, or their working life quality Job Satisfaction can be understood in terms of its relationships with other key factors including Work Schedule Flexibility, Job Stress, Fairness in skill based pay and Job Overload

1.2 Work Schedule Flexibility

The concept of Work Schedule Flexibility was developed by Rothausen, T.J (1994) which describes how important of the role of flexibility and rewards to Job Satisfaction It includes 3 items

The Work Schedule Flexibility was firstly introduced in 1970 and since then this concept has continued to be the interest of most researching papers It is supposed as one of the main factors which contributes to the growth of Job Satisfaction

Some studies were conducted to reflect the relation between Work Schedule Flexibility and other variables According to Lambert, A.D., Marler, J.H & Gueutal, H.G (2008), the Work Schedule Flexibility as a factor which can both prevent and create opportunities

The findings revealed by Kelliher, C & Anderson, D in 2008 that generally positive relationship between Work Schedule Flexibility and perceptions of job quality in term of work-life balance and helping to improve and control autonomy particularly for remote workers, but some factors such as opportunities for advancement will be negatively affected due to the variations on different dimensions of job quality

Accodring to the National Institute for Occupational Safety and Health of the United Sates (NIOSH, 1999), the Job Stress comes from various interactions of the worker and the environment of the work they perform their duties, in which Location, gender, environment, and many other factors may contribute to the build-up of stress

According to Colligan, Thomas W; Colligan MSW; Higgins M (2006), main sources of job stress originate from: A toxic work environment, Negative workload, Isolation, Types of hours worked, Role conflict and role ambiguity, Lack of autonomy, career development barriers, Difficult relationships with administrators and/ or coworkers, Managerial bullying, Towing to the wrong gates, Harassment and Organizational climate

According to Bittel, Lester R (1984), an Organization can prevent Job Stress by applying the some methods including: Ensuring that the workload is in line with workers' capabilities and resources Designing jobs to provide meaning, stimulation, and opportunities for workers to use their skills Clearly defining workers' roles and responsibilities In order to reduce workplace stress, managers may monitor the workload given out to the employees Also while they are being trained the managers should let employees understand and be notified of stress awareness Giving workers opportunities to participate in decisions and actions affecting their jobs Improving communications-reduce uncertainty about career development and future employment prospects Providing opportunities for social interaction among workers Establishing work schedules that are compatible with demands and responsibilities outside the job Combating workplace discrimination (based on race, gender, national origin, religion or language) Bringing in an objective outsider such as a consultant to suggest a fresh approach to persistent problems Introducing a participative leadership style to involve as many subordinates

as possible to resolve stress-producing problems Encouraging work-life balance through family-friendly benefits and policies

1.4 Fairness in Skill Based Pay

The concept of Fairness in Skill Based Pay was developed by Lee, C., Law, K.S., Bobko, P (1998), describing the importance of the justice perceptions on pay effectiveness to the Job Satisfaction It includes 3 items

According to the BusinessDictionary.com (2016), Skill Based Pay is defined as a remuneration system in which the employees will be paid wages on the basis of number

of job skills they have acquired Many employers today are using this evaluation system of Skill based pay for evaluating employees’ skills and for setting fair wages and salaries The Fairness

in Skill Based Pay system plays an important role to the Job Satisfaction of employees

Some evidences indicated that Skill Based Pay leads to the opposite of the desired outcomes when it is applied to any work involving cognitive rather than physical skill

The Fairness in Skill Based Pay is similar to the achievement-based pay, of which a research study made by Schuler and Rogovsky (1998) pointed out that there are cultural differences which affect the kind of remuneration and reward systems that are in use There is a good connection among status-based reward systems (as opposed to achievement-based) and high uncertainty avoidance, individual performance based systems and individualism, systems incorporating extensive social benefits and femininity and employee ownership plans with individualism, low uncertainty avoidance and low power distance

According to Dictionary.Cambridge.Org (2016), job overload is the situation in which someone has too much job or work to do

According to the European Agency for Safety and Health at Work of EU (EU-OSHA, 2007), the Job overload is one of the first psychosocial risk factors to be researched that may be divided into qualitative workload (referring to the difficulty of the task) and quantitative workload (referring to the amount of work that has to be completed within limited time)

Actually the working environment and manners have been significantly changed and Job overload becomes a common problem today The job overload can lead to the excessive stress at the place of working According to Rica Bhattacharyya (2012), there are 5 ways to manage the job overload including: Farming out work, Managing working time, Balancing Work and Life, Prioritising Tasks and Enjoying Work

2 Argument for the relationship among the constructs

a) The X Theory and Y Theory

Contents

The X Theory and Y Theory are the theories of human motivation which were created, developed and implemented by Douglas McGregor at the MIT Sloan School of Management in the 1960s The theories describe two contrasting models of manpower motivation being used in human resource management, organizational behavior, organizational communication and organizational development The X theory and Y theory emphasize manager’s management and leadership styles are influenced by his or her perceptions

Figure 3: McGregor’s X theory and Y Theory

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 Employees who are managed according to this way need to be closely supervised, and some comprehensive systems of control need to be developed A hierarchical structure is needed with narrow span of control at each and every level

In view of this theory, the employees will show little ambition without an enticing incentive program and may avoid responsibility when they can If the organizational goals are actually met, X theory managers must heavily rely on the threats of punishment to gain compliance of employees Upon being 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 who are responsible for them needs to be directly rewarded or reprimanded depending on the action's results

This managerial style is more effective when it is used for motivating 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 the workers often tend to perform repetitive tasks in their jobs One major flaw of this management style relates to limits of the potential of the employees under it and discourages out of the box thinking

Y Theory:

In this theory, the management assumes employees can be ambitious, self-motivated and exercise self-control enough It is believed that employees enjoy their mental and physical working duties According to them, working is as natural as playing They possess the ability for creating and solving problems but their talents are underused in most organizations Y theory managers believe that if proper conditions are given, the employees will learn how to seek out

and accept responsibility, exercise self-control and self-direction in accomplishing objectives to which they are committed The Y theory manager believes that if the right conditions are given, most of people may want to do well at work They believe that the satisfaction of doing a good job is a very strong motivation Many people interpret Y theory as a positive series of believes about employees in a workplace

A close reading of The Human Side of Enterprise reveals that Mc Gregor simply argues for the managers who are open to a more positive view of workers and the possibilities that this creates

He thinks that the Y theory managers are more likely than the X theory managers to develop a climate of trust with employees and required for employee development This would include managers openly communicating with subordinates, minimizing the difference between superior subordinate relationships, creating a comfortable environment in which subordinates can develop and use their abilities well This environment would include decision making sharing so that subordinates have a good saying and comments in decisions that influence on them

The X theory and Y theory combined:

X theory and Y theory are not different and opposite ends of the same continuum but rather two different continua in themselves McGregor has identified the X theory and Y theory differently The X theory assume that individuals dislike their careers, the X theory people have to be supervised by the management

The Y theory assumptions are that individuals like their careers and are willing to take part in responsibility The Y theory people do not need any supervision and they can be expected to work productively

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 Work schedule flexibility and Fairness in skill based pay because it creates clear perception of justice in organizations; obvioursly it affects on Job Satisfaction

b) Maslow’s Theory

Contents

The Maslow's Hierarchy of needs is a famous theory in psychology proposed by Abraham Maslow in his paper “A Theory of Human Motivation" in Psychological Review” (1943) Maslow subsequently extended the idea that including his observations of humans' innate

curiosities His theories parallel many other theories of human developmental psychology, some

of which focus on describing the growth stages of humans Maslow used the terms of Physiological, Safety, Belongingness and Love, Esteem, Self-actualization and Self-transcendence to describe the pattern that human motivations generally go through Maslow studied what he called exemplary people including 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 1.0% 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

Figure 4: 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 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

Personally, I think Maslow’s theory is strongly affecting on Job Satisfaction, Work schedule flexibility and fairness in skill based pay because it deeply researched into the nature of human beings in all aspects of psychology and physiology

c) Alderfer’s ERG theory

Contents

Clayton Paul Alderfer is an American psychologist and consultant in Sellersville, Pennsylvania who further developed Maslow's Hierarchy of needs by categorizing the hierarchy into his ERG Theory (Existence, Relatedness and Growth) in 1969

Figure 5: Alderfer’s ERG theory

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 which 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 selfesteem 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 selfactualization or self-esteem is not met then individuals will invest more effort in the relatedness category in the hopes of achieving the higher need

Previous research

C.A Arnolds and C Boshoff (2002) “Compensation, esteem valence and job performance: an empirical assessment of Alderfer's ERG theory” The International Journal of Human Resource Management

Self-argument

Personally, I think Alderfer's ERG theory has greater scientific supports than Maslow’s theory but both theories remind managers of the types of reinforces or rewards that can be used to motivate people

d) McClelland’s Theory

Contents

Written by psychologist David McClelland, is a motivational model that attempts to explain how the needs for achievement, power, and affiliation affect the actions of people from a managerial context This model was developed in the 1960s soon after Maslow's hierarchy of needs in the 1940s McClelland stated that we all have these three types of motivation regardless of age, sex, race, or culture The type of motivation that each individual is driven by is changed by life experiences and the opinions of their culture

Figure 6: McClelland’s theory

e) Herzberg’s Two-factor Theory

Contents

The two-factor theory (also known as Herzberg's motivation-hygiene theory and dualfactor 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 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