Factors affecting to the job satisfaction of vietcombanks employees

41 3.3.3 The relationship between performance appraisal system knowledge and job satisfaction and hypothesis 3.... The following documentation is a research report completed based on ana

HO CHI MINH CITY, AUGUST 2015

Advisor’s Assessment

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Advisor’s signature

Nguyen The Khai, DBA

TABLE OF CONTENTS

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ACKNOWLEDGEMENT 5

LIST OF FIGURES 6

LIST OF TABLE 7

ABSTRACT 8

CHAPTER I: INTRODUCTION 9

1.1 RESEARCH INTRODUCTION 9

1.1.1 Motivation of the research 9

1.1.2 The research problem statement 10

1.1.3 Significance of the research 11

1.1.4 Purpose of the research 11

1.1.5 Scope of the research 12

1.1.6 Question of the research 12

1.2 INTRODUCTION OF VIECOMBANK 13

1.2.1 Overview of Vietcombank 13

1.2.2 Organizational structure of Vietcombank 18

1.2.3 Management system of Vietcombank 21

1.2.4 Corporate culture of Vietcombank 21

CHAPTER II: LITERATURE REVIEW 24

2.1 Job satisfaction 24

2.2 Supervisory support 28

2.3 Perceived organizational support 30

2.4 Performance appraisal system knowledge 32

2.5 Perceived ability - job fit 35

2.6 Need hierarchy theory for job satisfaction 37

CHAPTER III: RESEARCH MODEL AND HYPOTHESIS 39

3.1 Research model 39

3.2 Contructs 40

3.3 The relationship between each independent variable and dependent variable and Research Hypothesis 40

3.3.1 The relationship between supervisory support and job satisfaction and hypothesis 1 40

3.3.2 The relationship between perceived organizational support and job satisfaction and hypothesis 2 41

3.3.3 The relationship between performance appraisal system knowledge and job satisfaction and hypothesis 3 42

3.3.4 The relationship between percieved ability – job fit and job satisfaction and hypothesis 4 43

3.4 Research design 44

3.5 Measures of constructs 45

3.5.1 Supervisory support 45

3.5.2 Perceived organizational support 47

3.5.3 Performance appraisal system knowledge 49

3.5.4 Perceived ability - job fit 51

3.5.5 Job satisfaction 53

3.6 Research Participants 53

3.7 Sources of data 53

3.7.1 Primary data 53

3.7.2 Secondary data 54

3.8 Procedure for Data Collection 54

3.8.1 Data collection tools 54

3.8.2 Data collection method 54

CHAPTER IV: ANALYSIS AND RESULTS 56

4.1 Methods of analysis 56

4.1.1 Descriptive analysis 56

4.1.2 Correlation 56

4.2 Analysis general and demographic information of the respondents 58

4.3 Cronbach’s Alpha (Reliability) 60

4.4 Descriptive Analysis 62

4.5 Correlations among variables 63

4.6 Hypothesis Testing Result 65

4.6.1 Hypothesis 1 Testing Result 66

4.6.2 Hypothesis 2 Testing Result 67

4.6.3 Hypothesis 3 Testing Result 67

4.6.4 Hypothesis 4 Testing Result 68

CHAPTER V: CONCLUSION 69

5.1 Summary of the results 69

5.2 Discussion and Recommendation 70

5.2.1 Discussion 70

5.2.2 Recommendation 73

5.3 Limitations of the research 76

REFERENCES 78

APPENDIX A 82

ACKNOWLEDGEMENT

First and foremost, I would like to express my sincere gratitude to my advisor DBA KHAI NGUYEN for his patience, motivation, enthusiasm, and immense knowledge in the continuous support for my research Without his guidance, I could not have finished it as it is now Besides, his lessons and guidance provide me with necessary knowledge as well as life inspiration He is whom I could never forget in the rest of my life

Beside my dearest lecturers, my sincere thanks goes to my colleagues at Vietcombank Sai Gon South Branch who had help me to complete the questionnaire in order to help me conduct this research

I would like to show my appreciation for some my bestfriends always share their knowledges and experience with me

Last but not least, I am thankful for my family, my parents support spirit for me throughout the period of time I study MBA program

Ho Chi Minh, August 2015

LIST OF FIGURES

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Figure 1: Vietcombank Market Position 15

Figure 2: Vietcombank's logo and slogan 17

Figure 3: Current Corporate Structure of Vietcombank 18

Figure 4: Organizational structure of Vietcombank 19

Figure 5: Targeted Corporate Structure of Vietcombank 20

Figure 6: Management system of Vietcombank 21

Figure 7: Hypothesized Research Model 39

Figure 8: Participant's Gender 58

Figure 9: Participant's Age 58

Figure 10: Participant's Acamedic Degree 59

Figure 11: Participant's Working seniority 59

Figure 12: Participant's Working Position 60

LIST OF TABLES

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Table 1: The profile of Vietcombank 15

Table 2: Vietcombank in highlight 16

Table 3: Data collection process 55

Table 4: Pearson Correlation Coefficient ( Davies, 1971) 57

Table 5: Cronbach’s Alpha 61

Table 6: Reliability Statistics of Cronbach’s Alpha 61

Table 7: Descriptive Statistics 62

Table 8: The Pearson’s Correlation Coefficient r of all Independent and Dependent Variables 63

Table 9: Coefficientsa of all Hypotheses 67

Table 10: Model Summary of all hypotheses 67

Table 11: Summary of the results 70

ABSTRACT

ecruiting a good employee is very difficult, but retaining that employee is more difficult” So job satisfaction is one of most frequently studied concepts in public management research

For decades, reseachers have sought to explain and predict job satisfaction with other key factors of organizatinal behavior (productivity, absenteeism, workplace behavior, and organizational citizenship behavior) The following documentation is a research report completed based on analyzing whether or not there is a significant relationship between Job Satisfaction with Supervisory Support, Perceived Organizational Support, Performance Appraisal System Knowledge and Perceived Ability-Job Fit of Vietcombank’s employees

Furthermore, with a study of those factors with use of questionnaires, data will

be gathered which will be analyzed for the impact of each factor to job satisfaction From this research findings, Vietcombank will understand more about its employees and improve its human resources strategies and policies in order that employees can increase more satisfied at work

Finally, in assisting and improving the four factors impact on job satisfaction positively, recommendations are further suggested

Multiple theoretical frameworks regarding job satisfaction are used as the theoretical guide SPSS software is utilized to analyse the data in the research Responses gathered by means of a questionnaire survey from 280 employees of one headquarter and eight transaction offices of Vietcombank Sai Gon South Branch, which were generated and analyzed using Cronbach’s Anpha analysis, descriptive analysis, and correlation analysis

Keywords: Job Satisfaction, Supervisory Support, Perceived Organizational Support,

Performance Appraisal System Knowledge, Perceived Ability-Job Fit

“R

CHAPTER 1: INTRODUCTION

1.1 RESEARCH INTRODUCTION

1.1.1 Motivation of the research

Globalization is the inevitable trend of the world economy Implementation of integration policies can help countries approaching rapidly with scientific and technical achievements, developing national economy

Because of a part of the world, Vietnam is strongly influenced by globalization Especially when Vietnam becomes an official member of the World Trade Organization (WTO) and at the end of 2015, Vietnam will join the ASEAN Economic

Community (AEC) and becomes a member of the Trans-Pacific Partnership (TPP), all

trade barriers between countries were removed, the competition becomes more aggressive than it was Therefore, in order to developt economy, we should take advantage and promote many resources including natural resources, financial resources, scientific-technical advances and especially human resources Human resources are important resource of each country The existence and development of each nation and each business depend on the human resources policies of that country

In the age of knowledge, competition among enterprises is often expressed in terms of product, engineering, technology, management methods, ect But all things can copy, recycle or buy rights except human

Thus, competition among enterprises together is mainly about human competition Good staff is the most important capital in the business Retaining good staff is a criteria to evaluate elite enterprises

It is said that satisfied employee is a productive employee, any kind of grievance relating to organizational or personal always influence on the job So every

organization is giving higher priority to keep their employees with satisfaction by providing several facilities which improves satisfaction and which reduces dissatisfaction

Job Satisfaction is considered as a key issue by the entrepreneur where efforts are taken and programs are initiated

If an employee is not satisfied with the job there are chances for absenteeism, low turnover, lower productivity, committing of mistakes, diverting energy for different types of conflicts All organizations are trying to identity the areas where satisfaction to be improved to get out of the above dangers

All managers, business owners recognized that they had to pay a very high price for the leave of good employees The administrators are aware that in order to exploit and retain loyal customers depends so much on loyal employees in business

Bank is one kind of service company, organizational performance appears in term of high quality service delivery and customer satisfaction Because of the stress

on performance, researchers in human resource management emphasise on effective human resource strategies such as job satisfaction

In this connection, on behalf of Vietcombank a survey was conducted to identify the level of satisfaction in terms of strongly agree to strongly disagree on various related job factors such as employee’s satisfaction with Supervisory Support, Perceived Organizational Support, Performance Appraisal System Knowledge, Perceived Ability-Job Fit

1.1.2 The research problem statement

A survey of Towers Watson said that: “About 10% of workers change jobs in

2014, most of those in the pharmaceutical and financial sectors” Explaining why workers in Vietnam change jobs more than other countries, Ms Huynh Thu Huong -

CEO of Towers Watson Vietnam said that reason is not only because of salary and remuneration policy According to her, leave jobs because wages can be relatively correct to senior personnel positions Conversely, with the common position, the changing workplace often also comes from specific causes of labor Vietnam She explained that “mostly they are young, inexperienced and want to try at multiple locations with greater stability” Besides, these problems of supply – demand of the economy combined with the continuous small-scale enterprises, banks created new, ect also cause the labor market change

Vietcombank is one of leading banks in Viet Nam with over 14,000 employees

of which about 70% young employees aged 20 – 40 years old Before the general situation, policies to attract and maintain the human resources of Vietcombank relatively succeed with quitting rate of the bank staffs quite low So what are the factors make employees work at Vietcombank feel satisfied with the job? as well as what improvements does Vietcombank must do to create an attractive working environment to retain the human resources and against the lure of other banks, especially foreign banks? This study will clarify above matters

1.1.3 Significance of the research

One of the biggest challenges in management has been implementing effective human development strategies to improve organizational performance So it is an interesting and significant area for conducting research The study made on the topic of Job Satisfaction will reveal the factors of feelings of employees This research is useful

to the management of Vietcombank to know the satisfaction levels of employees and they can take measures to increase productivity Besides, it may be useful to the management students for reading, and may be useful in preparing their report on the job satisfaction, ect

1.1.4 Purpose of the research

The aim of this research is to examine the degree of Vietcombank employees' satisfaction towards specific factors such as Supervisory Support, Perceived Organizational Support, Performance Appraisal System Knowledge and Perceived Ability-Job Fit In addition, the findings of the study could:

 Measure the employees’s job satisfaction level in Vietcombank

 Study the employees perception towards organization

 Study the attitude of the employees towards their work

 Identify the factors that motivates the employees

 Last but not least, it is expected from the study will give suggestions for the Board of Directors improving the policies in order that employees can increasing more satisfied at work

1.1.5 Scope of the research

There were all 280 employees of Vietcombank Saigon South Branch (includes one headquarter and eight transaction offices) who participated in the research A questionnaire was sent to each employee to fill in This survey was conducted from 1st

to 29th July 2015

1.1.6 Questions of the study

This study addresses some points follow:

- How are the impact of Supervisory Support on Vietcombank employee’s job satisfaction?

- How are the impact of Perceived Organizational Support on Vietcombank employee’s job satisfaction?

- How are the impact of Performance Appraisal System Knowledge on Vietcombank’s employee job satisfaction?

- How are the impact of Perceived Ability-Job Fit on Vietcombank’s employee job satisfaction?

1.2 INTRODUCTION OF VIECOMBANK

1.2.1 Overview of Vietcombank

Joint Stock Commercial Bank for Foreign Trade of Vietnam, formerly known as Bank for Foreign trade of Vietnam, was established from the Foreign Exchange Bureau (of the State Bank of Vietnam) Being the first state commercial bank chosen for pilot privatization by the Government, Joint Stock Commercial Bank for Foreign Trade of Vietnam officially came in to operation on 02/06/2008, after successfully implementing the equalization plan through IPO Vietcombank (stock code: VCB) officially listed on the Ho Chi Minh Stock Exchange (HOSE) on 30/06/2009

Vietcombank has advantage of applying advanced technology into the automatic banking system, products development, and e-banking services, based on its high technology foundation

Vietcombank currently offers the following products and services:

- Account services;

- Funding services (savings, deposits, bonds, debentures);

- Loan services (short, medium and long term);

- Foreign exchange trading services;

- Correspondent banking services;

- Factoring services;

- Other services as indicated in VCB’s certificate of business registration

Products such as Internet Banking, VCB Money, SMS Banking, VCB Cyber Bill Payment have always attracted a great deal of customers by its convenience, promptness, safety, efficiency, creating the habit of non-cash payments (via banks)

amongst customers

After half a century operating in the market, Vietcombank currently has over 13.560 employees, about 400 branches/ transaction offices/ representative officeS/ affiliates both in Vietnam and abroad, including Head Office in Hanoi, 1 Operation Center, 1 Training Center, 90 branches, over 400 transaction offices all over the country, 3 subsidiaries in Vietnam, 2 subsidiaries in other countries, 1 representative office in Singapore and 5 joint ventures In addition, Vietcombank has also developed

an Auto bank system with 1,835 ATMs and 32,178 Points of Sale nationwide Bank’s operations are supported by a network of more than 1,300 correspondent banks in 100 countries and territories

Vietcombank’s team of professional employees with excellent expertise in banking and finance have a good sense for modern and integrated business environment…Thanks to their contribution, Vietcombank remains the primary choice for large corporations, domestic and foreign enterprises as well as millions individual customers

VCB provides a full range of commercial banking services, investment banking services, fund management, insurance, financial leasing, and real estate

With wisdom and enthusiasm, every generation of Vietcombank’s employees has been and will always be endeavoring to its position as a leading bank in Vietnam.''

THE PROFILE OF VIETCOMBANK

TRADE OF VIET NAM

 Head office 198 Tran Quang Khai St., Ly Thai To Ward, Hoan Kiem

District, Hanoi, Vietnam

Phone – Website 84 - 4 - 3 934 3137– www.vietcombank.com.vn

 Market capitalization 25,174,170,760,000 VND (August 1, 2014)

 Number of employees 13.560 employees

 Stock exchange HOSE (Ho ChiMinh Stock Exchange, Vietnam)

Table 1: The profile of Vietcombank

 Vietcombank Market Position

Figure 1: Vietcombank Market Position

 Vietcombank History and Regconitions

 Vietcombank in highlight

Table 2: Vietcombank in highlight

 Strategy management of Vietcombank

Spread over 50 years of construction and development, Vietcombank’s brand has become familiar and a symbol of faith for the general public as well as all customer classes Therefore, the Vietcombank’s brand is continuing to be developed based on several factors: inheritance, convergence and promote the values have been accumulated, refined throughout the history of banking activities 50 years Bank's brand carries its own characteristics with core values: Innovation, continuous development, thoughtfulness - Devotion, Extensive Connectivity, Difference, and Safety - Security

Vision: “Becoming a dynamic financial holding company, ranking among the

300 leading financial group of the world by 2020, with its operations in both domestic and international financial market”

Mission: “Always bring success to customers; Ensure future for customers sustainably; Convenience in transaction and commercial activities in the market"

Slogan: “Together for the future” (“Chung niem tin vung tuong lai” in Vietnamese)

Logo: A green loop in triangle shape

Figure 2: Vietcombank's logo and slogan

(Source: www.vietcombank.com.vn)

1.2.2 Organizational structure of Vietcombank

 Current Corporate Structure of Vietcombank

Figure 3: Current Corporate Structure of Vietcombank

Vietcombank Group is currently organized with the banking operations at the holding level and the other financial operations and non – financial services at the subsidiary level

 Organizational structure of Vietcombank

Figure 4: Organizational structure of Vietcombank

Targeted Corporate Structure of Vietcombank

Figure 5: Targeted Corporate Structure of Vietcombank

1.2.3 Management system of Vietcombank

Figure 6: Management system of Vietcombank

1.2.4 Corporate culture of Vietcombank

Employees of Vietcombank invent a word to describe themselves,

“Vietcombankers” - “Nguoi Vietcombank” in Vietnamese, and a list of seven core values as the premise of corporate culture

Trust: It is about promise keeping and high performance Firstly, trust is the foundation to establish, develop and maintain every normal relationships and it is even more necessary in the banking sector Trust cannot be built in one day but it takes such long time and endurance to prove that if a promise is breached, one could hardly regain his credit Being reliable remains not only an aspect of business philosophy but also an

evidence of dignity Vietcombank staffs are trained to respect the principle of “Speech with actions” in every interaction and under any circumstances Secondly, trust is not enough but it requires high working capacity to earn reliability from customers Vietcombankers should promote the image that they are well trained to serve customers so that they can rely on the Bank to perform its tasks Besides, possesing high technical skills and knowledge helps strengthen the mutual trust among colleagues

to work under the same roof for the same goal

Profession:

 Being professional in image: Banking is such a high-classed service sector that appearance plays an important role in impressing partners and clients Hence, Vietcombankers should pay a great deal of attention to their talking and image

in accordance to the promoted image of the Bank of which they are part and representatives

 Being professional in work: It is said that banking means risk trading so Vietcombankers should strictly comply with legal and intra- regulations Every individual should be highly aware of their roles in the work process

 Being professional in behaviour: It is advisable for Vietcombankers to pay due respect and courtesy to partners in general to optimize work results

Readiness to innovate/ Adaptability: As life is changing every moment and Vietcombankers are no exception, active learning is a need and a must Nevertheless, they also need to apply they have learned to work more effectively and achieve higher results, even if this means to eradicate the old and downgraded procedures

Sustainability: Sustainable development is the long-term goal of Vietcombank During their operations, they always try to enhance sustainability by equally treating and harmonizing benefits among parties To maintain relationships with customers and

provide a strong foundation for success and development, Vietcombankers do not only focus on their own profit but also consider the situation of partners and clients Their business philosophy is not to hurt people in order to achieve profit and trade off short-term benefits to long-term ones From their point of view, it is much more visionary and wiser to work for such lengthy and long-lasting goals

Conception of Time: Every employee of Vietcombank realizes that “Time is money” Thus, they try to reduce delays and processing time in customer services It is also present in the way they talk They often cut the story short as long as it contains enough information to understand

Conception of Interpersonal Relationship: They try to be as nice as possible to people around them including colleagues, partners, and clients since they strongly believe in the fact that we are not robots We are human

Humanity: Vietcombankers has appreciated and practiced interpersonal relationships, work ethics, and other virtues like devotion and cooperation in the last five years Thanks to these values, the bank has made a striking distinction in the industry and overcome all obstacles to achieve great success today In order to continuously promote these values, Vietcombankers always put themselves in others’ shoes to thoroughly understand pros and cons of clients, partners, and colleagues, so that they can come up with an optimal solution

CHAPTER II: LITERATURE REVIEW

Main objective of this chapter is to address the different kind of definitions, theories and perspectives, which was viewed by numerous authors and management scientists, with respect to satisfaction Besides, this chapter aslo describes what are the factors affected the job satisfaction, outcomes of satisfaction and previous researches related to the job satisfaction

2.1 JOB SATISFACTION

The term Job satisfaction is of almost significance from the standpoint of employee morale It refers to employees’ general attitude towards his work It is as a pleasurable or positive emotional state resulting from the appraisal of one’s work or work experience The extent that a person’s work fulfils his dominant need and is consistent with his expectations and values, the work will be satisfying

The definition of job satisfaction is not easy, due to a range of conceptualizations of the construct in the literature (Cass, et al., 2003) Job satisfaction

is one‘s response to the various aspects of a job

Job satisfaction has been defined as a pleasurable emotional state resulting from the appraisal of ones job; an affective reaction to one’s job; and an attitude towards one‟s job Weiss (2002) has argued that job satisfaction is an attitude but points out that researchers should clearly distinguish the objects of cognitive evaluation which are affect (emotion), beliefs and behaviors This definition suggests that we form attitudes towards our jobs by taking into account our feelings, our beliefs, and our behaviors

Job satisfaction is one criterion for establishing the health of an organisation; rendering effective services largely depends on the human source (Fitzgerald et Al., 1994) and job satisfaction experienced by employees will affect the quality of service

they render The impact of other variables on efficiency, such as infrastructures and internal relationships is also widely recognised

Job satisfaction has been defined as a positive emotional state resulting from the pleasure a worker derives from the job (Locke, 1976; Spector, 1997) and as the affective and cognitive attitudes held by an employee about various aspects of their work (Kalleberg, 1977; Mercer, 1997; Wright and Cropanzano, 1997; Wong et.al., 1998); the later implying that satisfaction is related to the component facets rather thăn the whole job, which is consistent with Spenctor's (1997) view This definition suggests job satisfaction is a general or global affective reaction that individuals hold about their job While researchers and practitioners most often measure global job satisfaction, there is also interest in measuring different “dimensions” of satisfaction Examination of these facet conditions is often useful for a more careful examination of employee satisfaction with critical job factors Traditional job satisfaction facets include: co-workers, pay, job conditions, supervision, nature of the work and benefits (Williams, 2004)

According to Mitchell and Lasan (1987), it is generally recognized in the organizational behaviour field that job satisfaction is the most important and frequently studied attitude While Luthan (1998) posited that there are three important dimensions

to job satisfaction: 1/ Job satisfaction is an emotional response to a job situation As such it cannot be seen, it can only be inferred; 2/ Job satisfaction is often determined

by how well outcome meet or exceed expectations 3/ Job satisfaction represents several related attitudes which are most important characteristics of a job about which people have effective response

Job satisfaction research has been carried out for over forty years (Locke, 1976; Spector, 1985); and several types of instruments have been developed, for example,

global or multidimensional instruments, multi- or single-item instruments, instruments designed for jobs in general or for a specific workforce

Moreover the researchers studied different aspects of job satisfaction such as the relationship between job satisfaction and leadership behaviors (Tengilimoglu, 2005) age (Gibson et al., 1970; Hickson et al., 1999, Clark et al.1996; Brewer et al., 2008), turnover (Hellman, 1997; Reed et al 1994) length of service (Oshagbemi, 2003), absenteeism (Sagie, 1998; Waters, et al 2006)

Numerous researchers have investigated the relationship between job satisfaction and gender which has been inconsistent in literature Some researchers report no gender differences in overall satisfaction, while others report relationships between job satisfaction and gender (Dantzer, et al., 1998, Keser, 2005, Celen, et al., 2004; Brewer et al., 2008; Avsaroglu, 2005; Gencay, 2007, Lacy, et al., 1997; Bilge, 2007)

A Hawthorne study was the one of biggest study of job satisfaction This study (1924 -1933) was conducted by the Elton Mayo of the Harvard Business School to find out the effect of various conditions of worker’s productivity These studies ultimately showed that novel changes in work conditions temporarily increase productivity It is called the Hawthorne Effects This finding provided strong evidence that people work for purposes other than pay, which paved the way for researchers to investigate other factors in job satisfaction

Scientific management also had a significant impact on the study of job satisfaction Principles of Scientific Management book (Taylor, 1911) was argued that there was a single best way to perform any given work task This book contributed to a change in industrial production philosophies, causing a shift from skilled labor and piecework towards the more modern approach of assembly lines and hourly wages Therefore industries greatly increased productivity because workers were forced to

work at a faster pace However, workers became exhausted and dissatisfied, thus leaving researchers with new questions to answer regarding job satisfaction It should also be noted that the work of W.L Bryan, Walter Dill Scott, and Hugo Munsterberg

set the tone for Taylor’s work

Some argue that Maslow’s hierarchy of needs theory, a motivation theory, laid the foundation for job satisfaction theory This theory explains that people seek to satisfy five specific needs in life physiological needs, safety needs, social needs, self-esteem needs, and self-actualization This model served as a good basis from which early researchers could develop job satisfaction theories

 Dimensions of Job Satisfaction

While some researches have theorized about more or less specific work factors relevant to job satisfaction (Locke, 1976; Hackman, 1975) there is no “gold standard” that indicates which job aspects should be taken into account when job satisfaction is measured There are three generally accepted dimensions of job satisfaction according

to the Luthan 2002

 Job satisfaction is an emotional response to a job situation

 Job satisfaction is often determined by how well outcomes meet or exceed expectations For example, if organizational participants feel that they are working much harder than others in the same organization, but are receiving fewer rewards, they will probably have a negative attitude towards the work

 Job satisfaction represent several attitudes, they are: pay, promotion opportunities, working conditions, co-worker relationship, supervision and the work nature

2.2 SUPERVISORY SUPPORT

Supervisory support can be seen as the capacity that leaders display to value their employees contributions, making them feeling heard and cared about

The "theory of supervision" or concept which directed the practice continued to

be inspection, and encouraged the idea of supervision as the transmission of superior knowledge Perhaps this was the period in which the supervisor became identified as one with "supervision" and the concept of leadership for improvement emerged (Burnham, 1976) Evans (1970), while suggesting the management that wishes to bring about changes in the organization, signifies improving worker motivation, performance, and satisfaction, through the changing of leadership behavior In a comparison between subordinate performance and supervisory power, a supervisor's behavior is principally guided by the nature of subordinate performance (McFillen, 1978) Employees who perceive strong signals of organizational and supervisory encouragement are more likely to develop and implement creative ideas (Ramus & Steger, 2000) Organizational factors, such as organizational stability, could have overwhelmed any differential relationships between subordinates' outcomes and supervisors' behavior (Petty & Bruning 1980) The most powerful motivation for improved employee performance appears to be a meaningful, well-designed job with fair and competent supervision, performance feedback, equitable compensation, and recognition (Hayward, 1976)

Griffin, Patterson & West (2001) while discussing the relation between supervisory support and team work, indicated that supervisory support has less impact

on employees when teams are introduced Even though supervisory support was less important in companies where there was greater use of teams, this support was still positively related to satisfaction Their study further added that supervisors can play a significant part in enhancing the motivational characteristics of the work environment

such as job autonomy Effective leaders provide feedback about roles and tasks that increase employees' positive experience of autonomy Pierce, Rubenfeld & Morgan (1991) while describing the cooperation between the management and employees, suggested that “As cooperative behavior increases, employees are likely to believe that they can receive job assistance and that their job efforts will tie in more closely with the efforts of others, thereby contributing to effective work behavior and performance” Their study further adds that, the supervisor who notes poor job performance is expected to document the specific acts of conduct related to the employee's decline in job performance and counsel the employee Jackofsky and Slocum (1987) while concluding their study cited, “Employees who were the better performers rated their leader's behaviour more positively rewarding than those whose performance was not high” Truckenbrodt (2000) described supervisors as agents for change, who should act as role models and as positive influences on their subordinates Her study further added that “Supervisors should provide equal training and career development plans to all subordinates, and recognize each employee’s potential and capabilities to encourage

an organizational culture of growth and innovation” The poor performance of an individual employee will reflect far less on the supervisor than will the poor performance of a group (Brown, 1984) The study further adds that, “Supervisors need

to become aware of the importance of accurately diagnosing group poor performance;

it is equally important that they learn how to make the best possible diagnosis” New research shows that a leader’s emotional style also drives everyone else’s moods and behaviors—through a neurological process called mood contagion It’s akin to “Smile and the whole world smiles with you” (Goleman, Boyatzis & McKee, 2001)

Some studies indicate that supervisor support is connected with organizational commitment (Kinicki & Vecchio, 1994; Ko et al., 1997; Kidd & Smewing, 2001;) Though the work organization, the supervisor also peers has existed acknowledged as important bases of employees’ support (Simosi, 2012) Supervisors doing as agents of

the organization, PSS should simplify positive attitudes headed for the organization in common (Levinson, 1965) Perceived supervisor support can provide a working knowledge (Podsakoff et al., 1995) and support overcomes job demands (Schaufeli & Bakker, 2004) Supervisors who are believed to be helpful have been initiated to be effective in handling subordinate emotions (Dawley, 2007)

2.3 PERCEIVED ORGANIZATIONAL SUPPORT

Day by day in the management circumscription of the current style business world especially in the service sector Perceived organizational support (POS) are an important resource that is getting overwhelmed with wonder (Mowday,1998) Eisenberger al (1986) explains “perceived organizational support” as “an employee’s opinion that the organization values his or her involvement and cares almost the employee’s wellbeing” (Ahmed, et al 2011) Eisenberger et al, (2001), it is similarly a sense by encouraging contribution to each organization, and personal and organizational objective fulfillment POS also corresponds to the point which employees sense that the organization that implements them is willing to fairly compensate them for their determinations, help them in a situation of need (e.g Illness, occupational problems), makes their work exciting and inspiring, and offer them with satisfactory working environments (Eisenberger et al., 1986; Randall, Cropanzano, Bormann, & Birjulin ,1999) well-defined POS as employees views that an organization

is anxious with the welfare of its workforces; it refers to the supervision offered by the organization, such as rules and procedures designed to support employees in their careers

Employees consider that the organization is concerned with their welfare where POS denotes a helpful work environment (Loi, Ngo, & Foley, 2006) Study of employee approach and behavior, However it is, has gained much significance to determine employee’s potential behaviors at work place The employees are likely to

reciprocate with positive feelings, job attitudes, and behavioral intentions toward the organization when an organization cares about the well-being of its members, (Ranida

b & Kenneth j, 2008) Evidence of positive connections between POS and necessary organizational significances such as worthy job performance and worker satisfaction where research on POS has sustained this idea,(e.g., Rhoades & Eisenberger, 2002; Shanock & Eisenberger, 2006)

POS should rise based on three common forms of perceived favorable treatment received from the organization - fairness, supervisory support, and organizational rewards besides job situations where in return favorable outcomes are achieved such as job satisfaction and organizational commitment conferring by (Rhoades & Eisenberger 2002) Employee perception almost organizational attitude about their support is created on organizational employee helpful activities e.g satisfying employees’ contribution, employee well-being packages and opportunities for workforces to have contributed in key organizational choices Such perceived organizational support would vital shape employee outlook in organizations (Ali, 2010) Erdogan and Enders (2007) defined “Perceived organizational support mentions to the grade to which an individual trusts that the organization cares around him/her, standards his/her input and provides his/her with assistance and support” In a study shown by (Wayne, Shore, Bommer & Tetrick, 2002), procedural justice (the perceived fairness in the result making process) were found want be the solidest predictor perceived organizational support Keer (2005) Impact of perceived organizational support, organizational commitment and professional obligation for turnover purposes of healthcare professionals in Jamaica

Aselage & Eisenberger (2003) High POS happen when the employees necessity for esteem, consent, and social identity is seen, reinforcing an anticipation that performance outcomes and projected behaviors are recognized and compensated It is argued that established on the norm of reciprocity in community exchange, employees

with higher stages of POS are more possible to repay the organization through positive attitudes and auspicious work performances (Eisenberger et al., 1986) In support of this, previous findings suggest that work-life assistances may adoptive a observation that an organization is supportive of employee requirements (Casper & Buffardi,2003) Perceived organizational support, is a a growing figure of researchers in current years with a concept that takes to attract the consideration of now a days employees and employers (e.g Podsakoff et al., 2010; Watt & Hargis, 2010),

Which employees feel that while the organization is eager to fairly compensate them by the exchange of their determinations, help them when they essential to make their work exciting and motivating, and provide them with suitable working conditions

by Perceived organizational support shields the point (Aube et al., 2007) Employees with POS stayed more possible to report their career as more enjoyable, more possible

to be in an improved mood at work, and practiced fewer psychosomatic criticisms such

as stress, worry, and headaches where earlier research recommended and proved (Rhoades & Eisenberger, 2002)

2.4 PERFORMANCE APPRAISAL SYSTEM KNOWLEDGE

Performance Appraisal Systems one of the important component of human resource management This component also plays a very important role in the job satisfaction of employee This is a system which is used to evaluate the performance of

an employee in the organisation We hear the word evaluation in the case of students when the faculty members evaluate their performance on the basis of test, assignments, exams and their participation in extra circular activities That means a faculty use so many criteria to evaluate the performance of students in the class Now in the organisation point of view the employees working in the organisation get promotion demotion, employee’s salary is decreased or increased on what basis these things happens how the higher authority know that which employee of the organisation is best

or poor what system or criteria they follow that system is called Performance Appraisal System

Mensah et.al (2012) focused on employees perceptions of performance appraisal biases or Errors, and examined the implications for developing and implementing an effective appraisal system The results of the study indicate that employees perceive that the Performance Appraisal System of the institution is affected by subjectivity, and

is influenced by some major Errors The findings have serious managerial implications for training, motivation and provision of resources for effective performance appraisal

Jawahar (2007) reported that satisfaction with appraisal feedback was positively related to job satisfaction and organizational commitment and negatively related to turnover intentions If employees feel that the system provides developmental support and enables correct evaluation of performance, it can be assumed that they will accept the system and harbour a general feeling of satisfaction towards it

Jack N Kondrasuk (2012) Conducted research to ascertain all problems that are occurring with present Performance Appraisal Systems A list of 76 performance appraisal problems was reduced to 4 general categories and find out that Performance Appraisal Systems are improved by rectifying common shortcomings (e.g reducing biases, training those involved, using formats with research substantiation) However, the most important changes required 1) clarifying the goals of performance appraisal, 2) focusing on both results and behaviour appraisals, 3) adding an appraisal category, 4) better timing, and 5) better involving constituencies

Saqib et al (2012) wants to compare the performance appraisal practices undertaken in the government offices in Pakistan with various methods of performance appraisal methods discussed in the contemporary academic research It is satisfactory

to know that government offices in Pakistan are applying some of the contemporary performance appraisal methods like Adjective Rating Scale, Management by

Objectives, and Narrative Method in a traditional way which reminds of the British colonial legacy

Frieda Siaguru (2011) examined the current Performance Appraisal Systems of some private sector organizations in Papua New Guinea with the aim to provide a description of the primary purposes of Performance Appraisal Systems, how these systems are implemented and, any difficulties experienced in implementing the Performance Appraisal Systems The findings of this study are important for at least two reasons Firstly, it contributes to descriptive information on performance appraisal,

in non–western developing countries and also provides an important building block for further studies Secondly, an understanding of the current Performance Appraisal Systems and their difficulties may provide some guidance for human resource managers in developing new appraisal systems and making appropriate improvements

to current systems particularly, in the country’s context

Ikramullah et al (2011) wants to explore appraisees’/ratees’ Fairness perceptions of Performance Appraisal System (PAS) in the civil service of Pakistan and find out that that appraises’ perceive the system fair as diagnosed by four factors of justice Moreover, high interpersonal justice and distributive justice also revealed issues with the system However, on few aspects of the system, appraises’ have mentioned their neutral responses

Suhaimi Sudin (2011) explored employees' satisfaction consist of satisfaction with the last performance appraisal ratings, satisfaction toward supervisor in relation with appraisal process and satisfaction toward the Performance Appraisal System Relationships The findings showed that distributive and informational justice are significantly related to satisfaction with the last appraisal ratings; distributive, interpersonal and informational justice are significantly related to satisfaction with supervision; and distributive and informational justice are related to satisfaction toward

the Performance Appraisal System It also showed that distributive, interpersonal and informational justices are related to overall employees' satisfaction

Saeed et al (2011) investigates the employee’s perception about the outcomes Performance Appraisal System and identifies the factors which can harm the successful implementation of performance appraisal and finds that the employees are aware about the useful outcomes of the performance appraisal but they lack knowledge in implementing an effective performance appraisal Agbola et al (2010) investigates the effectiveness of the Performance Appraisal System of the Ghana public health and find out that appraisal process ineffective and employees highly dissatisfied with the system

2.5 PERCEIVED ABILITY - JOB FIT

The fit perception involves a cognitive process, in which an individual compares his needs, aspirations and abilities to the work environment (Cable & Judge, 1997) Usually formed during individual’s work experience, such perception is influenced by several sources such as job characteristics, organizational characteristics and the individual’s interactions with other staffs within the organization (Rynes, Bretz & Gerhart, 1991) Initially, no serious attention was paid to this concept in the studies of organizational behavior (Ahmed, 1981) It however has been subsequently accepted when researches found that individuals who could fit into their jobs are more able to solve various work-related work behavior issues (Forbes & Barret, 1978) Though earlier conception of person-job fit perception covered several aspects such as individual’s readiness to carry out job demands; the sense of how well individual’s abilities and skills are fully utilized in current job; and how much the job is perceived

by individual to provide the opportunity in practicing his or her best skills, Kristof (1996) has later simplified it as the evaluation of congruence between an employee’s abilities and his or her job demands

Saks and Ashforth (2002) measured the concept as the perception of suitability between an individual’s knowledge, skills and abilities with his or her job requirements; of job’s ability to fulfill an individual’s needs; suitability of the job; and last but not the least, individual’s perception on the freedom in carrying out one’s job Quite close to the definition, Cable and DeRue (2002) have focused on three levels of fitness or suitability in their effort to explain this concept First is the fitness between job demands and individual’s personal skills Second is the fitness between individual’s ability and training with the job requirements And third is the fitness between individual’s personal skills and educational level with his or her job demands Again, all these definitions have highlighted the concept as a subjective evaluation related to one’s job competency and work effectiveness Even though it is a subjective concept, acknowledgment has been made in accepting an individual’s self-report on his

or her level of capability (Artwater, Ostroff, Yammarino & Fleenov, 1998)

Recent studies have shown the importance of person-job fit perception to newcomer’s competency Carr, Pearson, Vest and Boyar (2006) have found that the level such perception mediates the relationship between previous work experience and their length of service in the new organization This study has supported earlier researches which have reported positive relationships between fit-perception to competency (Judge & Cable, 1997; Kristof, 1996), commitment (Ashforth & Mael, 1989) and efficiency (Schuler, 1980) A correct form of fit perception helps a new employee to uphold right status of mind and strategies when caught with uncertainties

at work It makes the employee more comfortable and confident in meeting new job requirements and organizational objectives (Kristof, 1996) Usually a more experienced and capable employee are more able to adopt suitable strategies as to perform effectively compared to less experienced employees (Schuler, 1980) They are usually less stressful compared to those who posses lower level of abilities In contrast, those who are over qualified or over trained might less interested or feel too

comfortable with their job Either way, this could lessen an employee’s level of commitment (Cable & DeRue, 2002) Up to this date, the significance of this concept has been acknowledged in the organizational studies It is believed that those who fit with their jobs would be more successful in their career journey (Cable & Judge, 1997)

2.6 NEED HIERARCHY THEORY FOR JOB SATISFACTION

One of the most widely mentioned theories of motivation is the hierarchy of needs theory put forth by psychologist Abraham Maslow Maslow saw human needs in the form of a hierarchy, ascending from the lowest to the highest, and he concluded that when one set of needs is satisfied, this kind of need ceases to be a motivator

As his theory, these needs are:

Physiological needs : These are important needs for sustaining the human life Food, water, warmth, shelter, sleep, medicine and education are the basic physiological needs which fall in the primary list of need satisfaction Maslow was of an opinion that until these needs were satisfied to a degree to maintain life, no other motivating factors can work

Security or Safety needs : These are the needs to be free of physical danger and

of the fear of losing a job, property, food or shelter It also includes protection against any emotional harm

Social needs: Since people are social beings, they need to belong and be accepted by others People try to satisfy their need for affection, acceptance and friendship

Esteem needs: According to Maslow, once people begin to satisfy their need to belong, they tend to want to be held in esteem both by themselves and by others This

kind of need produces such satisfaction as power, prestige status and self-confidence It includes both internal esteem factors like self-respect, autonomy and achievements and external esteem factors such as states, recognition and attention

Need for self-actualization: Maslow regards this as the highest need in his hierarchy It is the drive to become what one is capable of becoming; it includes growth, achieving one’s potential and self-fulfillment It is to maximize one’s potential and to accomplish something

As each of these needs is substantially satisfied, the next need becomes dominant From the standpoint of motivation, the theory would say that although no need is ever fully gratified, a substantially satisfied need no longer motivates So if someone wants to motivate other one, need to understand what level of the hierarchy that person is on and focus on satisfying those needs or needs above that level Maslow’s need theory has received wide recognition, particularly among practicing managers This can be attributed to the theory’s intuitive logic and ease of understanding

CHAPTER III: RESEARCH METHODOLOGY

This study proposes a new model for the assessment the level employees satisfied with their job based on Supervisory Support, Perceived Organizational Support, Performance Appraisal System Knowledge, Perceived Ability - Job Fit Beside that, this chapter also discuss the study design, nature population and sample sources of data, data collection tool, method and techniques of analyzed that will be used to analyzed the result

3.1 RESEARCH MODEL

I would like to propose the relationship between independent variables (Supervisory Support, Perceived Organizational Support, Performance Appraisal System Knowledge, Perceived Ability - Job Fit) and dependent variable (Job Satisfaction) in the following Hypothesized Research Model after basing on theories and previous research results

Figure 7 : Hypothesized Research Model

H3+

H4 +