The impact of human resource performance on employees working motivation case study of vietnam social security

Chih-Chung-Chu Keywords: HRM, employees, motivation, development, training, participation This thesis examines the HRM practices at Vietnam Social Security VSS and the impact of HRM pr

Lunghwa University of Science and Technology Department of Business Administration

Thesis for a Master’s Degree

The Impact of Human Resource Performance

on Employees Working Motivation Case

Study of Vietnam Social Security

Researcher: NGUYEN HUU VINH

Co-Supervisor: Assoc Prof NGUYEN NGOC THANG

July 2017

Lunghwa University of Science and Technology

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ABSTRACT

Thesis Title: The impact of human resource performance on employees working

motivation Case study of Vietnam Social Security

Pages: 99

University: Lunghwa University of Science and Technology

Graduate School: Department of Business Administration

Date: July 2017 Degree: Master

Graduate Student: Nguyen Huu Vinh Advisor: Assoc Prof Chih-Chung-Chu

Keywords: HRM, employees, motivation, development, training, participation

This thesis examines the HRM practices at Vietnam Social Security (VSS) and the impact of HRM practices on working motivation of VSS’s employees

Data used in making analysis was collected from conducting survey at Vietnam Social Security Based on 167 valid responses from employees, the study indentified three components – DEVELOPMENT, PARTICIPATION, and TRAINING – which explain employees’ evaluation of perceived HRM practices at Vietnam Social Security The relationship between these HRM practices components and employees’ motivation is investigated through regression analysis As the result showed, these three components of HRM practices have positive relationship with employees’ motivation in which DEVELOPMENT has the most significant impact on employees’ motivation level

In addition, based on these findings, the thesis also gives some suggestions for Vietnam Social Security to further improve HRM and employees’ motivation level

Acknowledgement

First of all, I would like to send my sincere thanks to the lecturers, especially to my supervisors Assoc Prof Chih-Chung-Chu and Assoc Prof Nguyen Ngoc Thang for their devoted attention, lessons and guidance, which have equipped me with key knowledge and essential skills throughout the course More importantly, everything I have learned here would undoubtedly help me tremendously in my work in the future

I would also like to thank International School - Vietnam National University, Nantes University for useful supports during studying and researching to complete this paper This course has equipped and improved and added a lot of knowledge about the different areas In addition, the course also helps me to have a relationship, have the opportunity to share information and learn from other students in the program

I am pleased to gratitude leaders and employees of Vietnam Social Security for their enthusiastic support and creating favorable conditions for me to have more useful information to complete thesis

In my thesis will not avoid the shortcomings I look forward to receiving comments from lectures and students so that I can add to complete this paper

Sincere thanks

Author

Nguyen Huu Vinh

Table of Contents

Acknowledgement v

List of Fingure and Tables ix

INTRODUCTION 1

1 Problem identification 1

2 Research objectives, questions and scope 2

2.1 Research objectives 2

2.2 Research questions 2

3 Research scope, objects and methods 2

3.1 Objects 2

3.2 Research scope 3

3.3 Research methods 3

4 Contribution of the research 4

5 Structure of the thesis 4

CHAPTER 1 THEORETICAL FRAMEWORK 5

1.1 Conceptual framework on Human Resource Management 5

1.2 Human resource management process 6

1.2.1 Employees participation Error! Bookmark not defined 1.2.2 Recruitment and selection 6

1.2.3 Training and development 8

1.2.4 Performance management and appraisals 8

1.2.5 Compensation and benefits 9

1.2.6 Promotion 9

1.3 Motivation 9

1.3.1 Concepts and characteristics of working motivation 9

1.3.2 Theories of Employee Motivation 11

1.4 The relationship between HRM practices and working motivation 15

1.5 Literature review 16

1.6 Research Model and Hypotheses 17

1.6.1 Research Model 17

1.5.2 Hypotheses 19

CHAPTER 2 RESEARCH CONTEXT ANDMETHODOLOGYError! Bookmark not defined 2.1 Overview of Vietnam Social Security 20

2.1.1 History and development of Vietnam Social Security 20

2.1.2 Functions, tasks and organizational structure 22

2.2 Research methods 28

2.2.1 Designing questionnaires 29

2.2.2 Sample and Data Collection 31

2.3 Analyzing data plan 32

2.3.1 Reliability analysis by Cronbach’s alpha 33

2.3.2 Exploratory factor analysis 34

2.3.3 Regression analysis 35

CHAPTER III: ANALYSIS THE REALITY OF HRM PRACICE IN VIETNAM SOCIAL SERCURITY AND SURVEY RESULTS 36

3.1 The reality of VSS’s human resource quality 36

3.1 1 VSS’s human resource 37

3.1.2 The quality of VSS’s human resource 40

3.2 The reality of some HRM activities in VSS 45

3.2.1 Employees participation 45

3.2.2 Recruitment and selection 45

3.2.3 Training and development 46

3.2.4 Performance appraisals 49

3.2.5 Compensation and employee benefits 50

3.2.6 Promotion 52

3.3 Descriptive Analysis 52

3.3.1 Data description 52

3.3.2 Reliability analysis and scale 53

3.4 Exploratory Factor Analysis 57

3.4.1 Exploratory Factor Analysis of HRM Practice Scale 58

3.4.2 Exploratory Factor Analysis of Motivation Scale 61

3.5 Regression Analysis 64

3.5 Hypotheses tested results 67

CHAPTER 4: FINDINGS AND DISCUSSIONS 69

4.1 HRM Practices and Motivation in Vietnam Social Security 69

4.2 Suggestion to improve HRM practices and create motivation for VSS 70

4.2.1 Improve DEVELOPMENT component 70

4.2.2 Improve PARTICIPATION component 71

4.2.3 Improve TRAINING Component 72

4.2.4 Improve other components of HRM practice 72

CONCLUSION AND LIMITATIONS 74

Limitations of Research 74

Recommendations for future research 75

REFERENCE 76

APPENDIXES 80

List of Figures and Tables

Figure 1.1 Motivation Equation 12

Figure 1.2 Expectancy Theory 14

Figure 1.3 Research Model 18

Figure 2.1 Organizational structure of VSS 25

Table 2-1: Sample 31

Table 2-2: Encoded Data 32

Table 3.1 The qualification of VSS’s employees in the period from 2005 to2015 40

Table 3.2 The skills reality of VSS’s officers in the period from 2005 to 2015 41

Table 3.3 Age structure of VSS human resource 43

Table 3.4 Numbers of trainees from 2010-2015 48

Table 3.5 Descriptive Analysis 52

Table 3.6 Reliability of scale 54

Table 3-7: Exploratory Factor Analysis of HRM practices 58

Table 3-8: Exploratory Factor Analysis of HRM practice - second time 60

Table 3-9: Exploratory Factor Analysis of Motivation Scale 61

Table 3-10: Exploratory Factor Analysis of Motivation Scale - Second time 62

Table 3-11: Exploratory Factor Analysis of Motivation Scale – Third time 63

Table 3-12: Correlations 64

Table 3-13: Regression Analysis Summary 65

Table 3-14: Regression Analysis Summary - Second time 66

Table 3-15: Hypotheses Tested Results 68

INTRODUCTION

1 Problem identification

Since the mid-1980s there has been considerable interest in the idea that firms can improve their performance by harnessing the commitment of their employees through human resource management (HRM) practices which should be the determining factor in the success or failure of the organization Firms have increasingly recognized the potential for their people to be a source of competitive advantage Creating competitive advantage through people requires careful attention to the practice that best leverage these assets Currently, Vietnam is in the process of industrialization and modernization Following the experience of Japan and other "Asian dragons", Vietnam has to carry out its own path that consistent with the characteristics of politic, economy, and social culture This is an extremely difficult task to catch up with the advanced level of science and technology of the world in a short period of time with poor infrastructure, backwardness and lack of investment One temporary solution is to increase labor productivity to generate higher returns on the basis of equipment and funds available For reasons mentioned above, motivating labor is a concern of many leaders and managers People always have needs to

be satisfied both physically and mentally When employees feel their needs are fulfilled, it will boost employees to work more enthusiastically For individual workers who do not have the motivation at works, the goal cannot be achieved because they just completed work assignments without trying to be creative or they just consider the work being done as

a duty to perform under the contract labor Therefore, motivation is central to understanding and managing human resource because it explains why people behave as they do in organizations

Motivating employees to make important contributions to their jobs can have a profound impact on organizational effectiveness Workers only active when they are relatively satisfied their needs are shown the benefits that they are entitled to When employees feel that the benefits they receive do not match the spending, they can feel

depressed and do not focus on the job Motivation helps employees can improve themselves When employees are motivated, they have been greater efforts to work, study, improve their knowledge and qualifications to improve themselves

As mentioned before, many Vietnamese enterprises and organizations have to face with the problem of how to motivate employees including Vietnam Social Security Human resource management is assumed as a useful tool to motivate employees Enhancing the quality of HRM to gain the commitment of employees is considered as an effective way to help Vietnam Social Security build their sustainable competitive advantages From these

facts, the author has chosen the research topic “The impact of human resource

performance on employees working motivation Case study of Vietnam Social Security” is necessary to develop the HRM system in future

2 Research objectives, questions and scope

2.1 Research objectives

The paper focused on researching and analyzing to systematize and clarify HRM quality The study was also look at the relationship between HRM and employee’s working motivation as well as apply 4 soft HRM practices model (Direct Employee Participation, Performance Appraisal, training and career development) to analyze collected data of survey It analyzes the result of VSS’s HRM activities Thereby, evaluate the quality and propose some solutions to improve HRM quality and employee’s motivation in Vietnam Social Security

2.2.Research questions

2.2.1 What is VSS employees’ working motivation?

2.2.2 What is the relationship between HRM practices and work motivation?

3 Research scope, objects and methods

3.1 Objects

The study’s objects include the working motivation of VSS employees’ and the relationship between HRM practices and their working motivation So I also based on investigate results of the reality of VSS’s human resource quality, employees’ working

motivation to access the quality of HRM practices in this organization From those collected data and analysis results will formed the basics for determining and selecting the later solution for HRM practice and create working motivation for VSS employees in the future

3.2.Research scope

The study mentioned the employees’ working motivation in Vietnam Social Security and the relationship between HRM practices and their working motivation Therefore, it is not only stopped at testing the theories regarding the quality of human resource, employees’ working motivation and the models used to measure HRM and working motivation but further, it is the way for me to apply the knowledge, skills and my experiences into the construction the strategy for a specific enterprise, from that contribute the useful points in HRM activities of Vietnam Social Security where I am working for In this paper, I will focus on research the information and figures related to the reality of the HRM activities of Vietnam Social Security in the period from 2005 to 2015

3.3.Research methods

In order to answer the two main research questions, the author uses quantitative research method and data resources following

Secondary data: figures were collected from annual reports and data published by Vietnam

Social Security (VSS), reports by independent organizations and actual data of HRM activities at Vietnam Social Security as well as investigate results of employees’ motivation

in there

Primary data collection and analysis: collected data would be processed by software SPSS

version 21.0 with methods such as reliability test cronbach alpha, exploratory factor analysis and multiple linear regression analysis The author found out solutions to achieve the research objectives

4 Contribution of the research

Within the boundary of this thesis, the author pointed out the significant correlation between the HRM practices and employees’ working motivation Base on evaluated results the reality of the human resource quality of Vietnam Social Security as well as its employees’ working motivation, the author proposed some solutions to improve HRM practice and increase working motivation for VSS employees in the future Those solutions constituted enhancing the VSS’s prestige at domestic and abroad markets; building and implementing VSS’s culture; expanding international cooperation to improve VSS’s human resources quality

5 Structure of the thesis

Regardless of the introduction, conclusion, reference and appendices the thesis has four major parts as following

Chapter 1: Theoretical Framework

Chapter 2: Research context and methodology

Chapter 3: Analysis the reality quality of human resource management at Vietnam

Social Security and survey result

Chapter 4: Findings and Discussions

CHAPTER 1 THEORETICAL FRAMEWORK

This chapter will provide theoretical framework for the research It includes fundamental concepts on human resource management, working motivation and their characteristics The Measures of HRM and working motivation will be presented too Furthermore, the factors affected on employees’ motivation as well as research model and its hypotheses were also mentioned in there

1.1 Conceptual framework on Human Resource Management

The concept “human resource” is defined differently in various organizations and countries Generally, human resource (or human capital in a narrow view) is the collective value of the competencies, knowledge, skills, life experiences and motivation of an organizational labor force Human capital is also defined as the intellectual capital to reflect the thinking, knowledge, creativity, and decision making that people in organizations

contribute (Mathis et al., 2010) Human resource also refers to the set of individuals who

make up the workforce of an organization, business sector or an economy Other terms can

be used exchangeable with “human resource” are “manpower”, “talent”, “labor”, and

“people” Thus, the term “human resource” can be known as a human capital (both manual and intellecture capabilities) that contributes to the success of organizations This asset can

be trained and developed to create more value for organizations in the future Using human capital effectively and efficiently can create competitive advantages for the organization According to Dessler, human resource management is the process of acquiring, training, appraising, and compensating employees, and of attending to their labor relations, health and safety, and fairness concerns And managers should maintain high efficiency and encourage enthusiasm of the labor force (Dessler, 2010) Human resource management in another point of view is designing management systems to ensure that human talent is used

effectively and efficiently to accomplish organizational goals (Mathis et al., 2010) In

addition, the professional discipline and business function that oversees an organization’s human resource is called human resource management In each organization, especially in

the administrative public service sector, the key factor to success is improving their human resources Human resource management is not simply hiring the right people for the right jobs; it is a process of recruiting, motivating, appraising and developing people for the future benefits of the entity The planning and implementation of human resource development programs can develop a more productive staff Only a small improvement in personnel management can lead to big returns for the whole organization

1.2 Human resource management process

In the human resource management process, there are a number of key areas such as, recruitment and selection, orientation, training and development, performance management and appraisal, compensation and benefits, employees participation and promotion

1.2.1 Employees participation

The manpower is a solid foundation for any organizational success Employees represent an endless source of knowledge and ideas that sometime unexploited Employee participation in HRM practices not only empowers them to contribute to the organizational success, but also saves enterprises time and money, increased productivity and reduce outsourcing Because they are already aware of various aspects of enterprise and they probably offer right things it need and understand the overall polices of enterprise too These would both beneficial to enterprise’s development and bring possibilities on-the-job training for its employees They would be prepared relevant skills and competencies to meet their work requirements in a new position in the future Moreover participating in the HRM practices give each worker a chance to say his/her opinion and share his/her knowledge with colleagues Thereby, the employees’ relationship with their boss was improved and encouraged a strong sense of teamwork among them It is a good place to gather information about how employees work and where training may be necessary This leads to an increase in effectiveness as well as teamwork and performance

1.2.2 Recruitment and selection

Recruitment is the process of attracting human resources that meet the needs of

organizations from various sources To be highly effective in this work, the human resource managers must follow the strategy planned accurately identify the number of needed employees, job skills required Dyer at al (1984) He proposed that the analyzing and identification of job requirements must be carried out in following steps [14]:

- Personal interviews with the employees in the job to be recruited, then collect the information and specific requirements for applicants

- Review relevant background information such as organization charts, and job descriptions

- Determine the priority for the importance of skills required in a job, the most important skill will be emphasized

After that, job descriptions and job specifications are developed so that the selectors know what skills and characteristics required for the job The main sources of human resource recruitment:

- Internal promotion and internal introductions: the organization encourages internal employees who have skills and capabilities should apply for the vacancies This method is usually applied when the situation is urgent or little amount needed to be hired Moreover, this is a less expensive solution than recruitment from external sources Recruiting from internal source reduces the time new staff gets familiar with the company policies, organizational structure and working environment

- External sources:

 Recruitment from universities, colleges, vocational schools

 Recruitment from friends and relatives of company staff

 Others sources such as job placement centers, advertising via public media etc

Selection is the process of deciding who is eligible to get the job vacancies The company

selects employees based on:

- Letters of recommendation

- Cover letters: refers to present job or previous working experiences, the ability to work, strengths and weaknesses

- Profiles of candidates

- Tests: intelligence tests, English ability, psychological tests, work experiences etc

- Interview: this is a final step to determine whether the applicant is hired or not Interviewing can be carried out by individuals, by panels of interviewers or in the form of sequential interviews by different experts

1.2.3 Orientation, training and development

Orientation: The process is done to help employees get acquainted with the

organization, people and job In the orientation process, new employees have chances to learn about the organization, what the expectations are in the position, their benefits etc.[2] The purposes of orientation include reducing startup costs, anxiety, employee turnover; saving time for the supervisor; developing realistic join expectations, positive attitudes and job satisfaction [5]

Training and development: these stages give new or current employees the skills they

need to perform their jobs (Dessler, 2010) This process is very important in developing human resource capabilities, thus enhances the production capacity in the future Training programs consist of four steps:

- Need analyzing: the managers identify the specific knowledge and skills the job

requires, and compare these with the prospective trainees’ knowledge and skills

- Instructional designing: the measurable knowledge and performance training

objectives are formulated, possible training program content is reviewed and a budget for the training program is estimated

- Implementing: There are some training techniques usually used for the targeted

employee group in this step encompass on-the-job training, apprenticeship training, classroom training, informal learning, job instruction training through video, visual, programmed instructions, visiting other companies, organizations and inviting experts etc

- Evaluating: the manager assesses the program’s success, the effectiveness of

training, or failures - identify the causes of failure (Dessler, 2010)

1.2.4 Performance management and appraisals

Performance appraisal is evaluating an employee’s current and/or past performance relative to his or her performance standards The process of performance appraisal comprises defining the employee’s job and performance criteria, appraising performance – comparing the employee’s actual performance to the standards, and feedback session In this step the managers and the subordinate discuss his or her performance and progress, and make plans for any development required [4, 8, 19]

1.2.5 Compensation and benefits

Compensation and benefits process is the most specialized area in human resource management It is about managing the personnel expenses budget, setting the performance standards, setting the transparent compensation policies and introducing the competitive benefits for employees [18] The level of compensation and benefits are determined by the following factors:

- Labor markets and geographical location of the firm: labor markets in various regions are different, such as between cities and rural areas, between countries etc

- Employee’s performance: this is an important factor to decide the salaries of employee Individuals who accomplished the assigned work well, had creative thinking, contributed greatly to the organizations often received high wages and vice versa

- The characteristics of work: such as the job requires high level of skills or not

- Legal, company profitability, human resource strategy etc

1.2.6 Promotion

Promotion is the advancement of an employee from one job position to another job position that has a higher salary range, a higher level job title, and more and higher level job responsibilities It is a form of recognition for employees who make significant and effective work contributions A promotion is often viewed as desirable by employees because of the impact a promotion has on pay, authority, responsibility, and the ability to influence broader organizational decision making Thus, promotion is an effective tool to create motivation and increase the working spirit If the employees are provided the opportunities to develop their career, they would feel satisfied and the commitment toward the organization is improved

get a firm grasp on what motivation is before we try to understand its role in human resource management Tuan B.A at all (2003) suggests that motivation is the internal factors that stimulate people to work more actively within allowance conditions to enhance efficiency and productivity [38] Expression of motivation is the willingness, effort and passion to achieve the goals of the organization as well as the employee himself Motivation is important because it explains why employees behave as they do Work motivation can be defined as the psychological forces within a person that determine the direction of that person’s behavior in an organization, effort level, and persistence in the face of obstacles

 Characteristics of working motivation

Motivation includes 3 elements namely direction of behavior, level of effort, and level

of persistence during the process of selection, orientation, self – expression etc [17] On the other hand, motivation can be changed because it does not only depend on the characteristics, knowledge, skills and abilities of the individual but on external factors such

as job characteristics, social, and economic environment social, and personal characteristics

of the organizations where they work At this time a worker can have very high motivation

to work but in a different time motivation is unlikely to remain in them Motivation is expressed through specific tasks that each employee is responsible and in their attitude toward the organization This means there is no motivation to all employees Each employee responsible for different tasks may have different motivation to work harder Labor force is associated with a job, an organization and a specific workplace Motivation plays an important role in the increase in labor productivity when the input conditions are constant In the research on “An Examination of the Relationships among Organizational Justice, Job Satisfaction, Organizational Commitment and Intention to Turnover” McNabb,

N S (2009) suggested that working motivation is also considered an important concept to study as it is relevant both to job satisfaction perspective and organizational commitment perspective Job satisfaction is vital factor because a worker's behavior may be affected by his or her attitude and beliefs that probably motivate a person to work harder or lazier It also closely relates to a person's welfare for the simple reason that s/he spends a lot of time

at work Consequently, if employees dissatisfy with work they could dissatisfy in other areas of their life According to Weiss, D.J et al, (1967) job satisfaction is usually divided

into three types including intrinsic, extrinsic, and general reinforcement Intrinsic job satisfaction refers to how employees feel about their tasks themselves In order to evaluating intrinsic job satisfaction was based on some key factors such as creativity, achievement, morale values, independence and authority Extrinsic job satisfaction relate to how workers feel about aspects of organization that are external to the job tasks or the work itself This element is usually influenced by environmental factors that are associated with the work itself or the work environment The items were used to assess extrinsic satisfaction consist of advancement, company policy, compensation and recognition Finally when intrinsic and extrinsic dimensions associate together they will create general satisfaction Job satisfaction can encompass various concepts and keeps an important role

in many different aspects of our life not only as individuals but also as a society We should not underestimate the importance of being satisfied with one's work, which has a strong role in defining one’s identity and position within our society

Klein, H J., et al, (2009) has also been defined organizational commitment as “a force that binds an individual to a course of action that is of relevance to one or more targets” He proposed three main characteristics of organizational commitment encompassed of “1) a strong belief in and acceptance of the organization’s goals and values 2) willingness to exert considerable effort on behalf of the organization 3) a strong desire to maintain membership in the organization” Many studies have been reported to provide illustrations that organizational commitment brought many benefits for organizations; therefore interest in this concept continues to grow day after day Several of these benefits include lower turnover, higher job effort and performance, increased organizational citizenship, increased attendance and productivity, increased organizational effectiveness and gaining competitive advantages [5, 6, 7]

1.3.2 Theories of Employee Motivation

Theories about work motivation provide answers to questions of what motivate people, why they become motivated, and how they sustain their motivation by explaining why employees behave as they do in organizations The key challenge facing managers in terms of motivation is how to encourage employees to contribute inputs to their jobs and to the organization Managers want employees to be motivated to contribute inputs (effort, specific job behaviors, skills, knowledge, time, and experience) because inputs influence

job performance and, ultimately, organizational performance Employees are concerned with obtaining outcomes from the organization—both extrinsic outcomes (pay and job security) and intrinsic outcomes (a feeling of accomplishment from doing a good job or the pleasure of doing interesting work) These key concerns for managers and their employees can be graphically depicted in an equation: Inputs → Performance → Outcomes

Figure 1.1 Motivation Equation

Source: (George, Jennifer M., 2012)

According to Jennifer M George (2012), 4 theories of work motivation - need theory, expectancy theory, equity theory, and organizational justice theory - are complementary perspectives Each theory addresses different questions about motivation in organizations and the relationships between inputs, performance, and outcomes

 Need Theory

Need theory focuses on this question: What outcomes are individuals motivated to obtain from their jobs and organizations? The principal message of need theory is that employees have needs that they are motivated to satisfy in the workplace To determine what will motivate an employee, a manager first must determine what needs an employee is trying to satisfy on the job be-cause needs will vary from person to person The manager then must ensure that the employee can satisfy his or her needs by engaging in behaviors that contribute to the organization’s effectiveness The earliest approaches to work motivation were described by Abraham Maslow and Clayton Alderfer with several specific needs that employees try to satisfy through their work behaviors and the order in which they try to satisfy them Psychologist Abraham Maslow proposed that human beings have

Performanc e:

Quantity Quality Level of customer service

Outcomes:

PayJob securityBenefitsVacationSatisfactionPleasure

five universal needs they seek to satisfy: physiological needs, safety needs, belongingness needs, esteem needs, and self-actualization needs [31, 33]

 Expectancy Theory

The expectancy theory was proposed by Victor Vroom of Yale School of Management

in 1964 While need theories try to explain what motivate employees, expectancy theory focuses on how employees decide which specific behaviors to perform and how much effort to exert In other words, expectancy theory is concerned with how employees make choices among alternative behaviors and levels of effort Expectancy theory proposes that regardless of which outcomes are available; employees will not be motivated to contribute their inputs to the organization unless they believe it will result in achieving a given level of performance Employees’ beliefs about the relationship between their inputs (such as effort) and the performance level they reach are, thus, central to understanding motivation According to expectancy theory, a manager who wants to motivate an employee to perform

at a certain level must first make sure the employee believes he or she can achieve the performance level Then the manager must make sure the employee believes he or she will receive, and actually does receive, the desired outcomes once the performance level has been achieved

 Equity Theory

The equity theory of work motivation was developed in the 1960s by J Stacy Adams The theory focuses on employees’ perceptions of the fairness of their work outcomes and inputs Outcomes include pay, fringe benefits, job satisfaction, status, opportunities for advancement, job security, and anything else the employees wants from the organization Inputs include special skills, training, education, working experience, effort on the job, time, and anything else that employees believe they contribute To motivate employees to contribute the inputs the organization needs, managers need to administer outcomes based

on those inputs Moreover, managers need to ensure that different employees’ input ratios are approximately equal so that employees who contribute more inputs receive more outcomes and vice versa All in all, motivation is highest when equity exists and outcomes are distributed to employees on the basis of their inputs to the organization Employees who contribute a high level of in-puts and receive, in turn, a high level of outcomes are motivated to continue to contribute inputs Employees who contribute a low

outcome-level of inputs and receive a low outcome-level of outcomes know that if they want to increase their outcomes, they must increase their inputs

Like expectancy theory, equity theory is a popular theory of motivation and has received extensive research attention Also, as in the case of expectancy theory, although there have been some non-supportive results, by and large the research supports the main ideas of the theory In order for an employee to be motivated to perform desired behaviors and to perform them at a high level, the following conditions are necessary (see Figure 1):

● Valence must be high: The employee wants outcomes the organization has to offer

● Instrumentality must be high: The employee perceives that she or he must perform the desired behaviors at a high level to obtain these outcomes

● Expectancy must be high: The employee thinks that trying hard will lead to performance at a high level

Figure 1.2 Expectancy Theory

Source: (George, Jennifer M., 2012)

 Organizational Justice Theory

Organizational justice is essentially the perception of fairness and the reaction to those perceptions in the organizational context (Greenberg, 1987) Organizational justice theory proposes that employees will not be motivated to contribute their inputs unless they perceive fair procedures that will be used to distribute outcomes in the organization and that they will be treated fairly by managers

1.4 The relationship between HRM practices and working motivation

As mentioned in the sections above, HR practices affect on employees working motivation in an organization in many ways Many relationships between HRM practices and working motivation were found in the HR studies, but in this paper’s context, a few relevant relationships would be discussed Employee participation in organizational decision making process of HR practices allows them to have a say in decisions that might be impact on their working performance in several ways Employee participation in organizational HR practices can be direct, indirect and financial forms and become a part

of empowerment process at the workplace Team members or individuals are encouraged

to give their ideas, suggestions and advices on organizational matters and prospects in the future This might lead to the raised productivity because employees are actively involving in different aspects of enterprise and expect to see their efforts succeed overall

It is not only profitable to the organizational growth but also increases progress ability and provides employees the opportunities grow to higher positions which allows them to learn new skills and competencies

Training and development create possibilities for employees to learn additional expertise skills and competencies which related to their work performance Delaney (1996) pointed out in his study that several forms of training and development closely relate to a positive impact on employee motivation These forms consist of orientation training, in-door training, cross-training and on-the-job training Their purpose is to enhance the systematic training and development activities instead of non evaluated training, because they would contribute more to organizational objectives than random training and development

Performance appraisal could be use as a positive tool if performance is measured accurately and appraisal is applied effectively For instance, it may be done every six months and ongoing Right performance appraisal expand manager’s understanding about their employees’ skills and competencies as well as increase training and development opportunities that influence on employees motivation Moreover performance appraisal could be utilized to provide feedback to workers about their advancement in their work and how can make further improvement in their performance [37] Excellent employees with good performance appraisals would receive financial or nonfinancial awards even

put up salary Mainly duty of a manager is ongoing right performance appraisals and feedback them to his employees timely He has to supervise operations and performance

of his subordinates, recognize achieved goals and build relationships to enhance their performance So performance appraisal also has got positive influence on employee motivation too A compensation structure includes wages and other benefits for employees Therefore a fit compensation would help to reach organizational targets and improve motivations [35]

1.5 Literature review

The relationship between HR practices and business results is built on a rather simple premise: better deployment and use of HR practices should correlate with higher business results (Dave Ulrich, 1997) In 1980s, a number of initial studies were made (Devanna, M.A., Fombrun, C.J., & Tichy, N.M., 1981); (Dyer, 1984) Susan Nkomo examined the correlation between how much firms invested in HR planning processes and business results She found no correlation; investment in HR planning did not correlate with business performance (Nkomo, 1987) Dave Lewin and his colleagues (1988–1989) published similar results from their large scale survey of HR practices and financial results (Delaney, J.T., Lewin, D., & Ichniowski, C., 1988); (Delaney, J.T., Lewin, D., & Ichniowski, C., 1989) At the same time, a research project called Organization and Strategic Information Service (OASIS) was undertaken as a joint venture among Strategic Management Associates, Hay Consulting, and the University of Michigan The results of OASIS showed some relationships between specific HR practices and business results, but they did not produce overall indicators of how HR practices affect business performance (Ulrich, D., Geller, A., & DeSouza, G., 1984) The conclusion from these studies, carried out and repeated in the 1980s, is equivocal Direct relationships between investment and attention

to HR practices are often fuzzy, however, and vary according to the population sampled and the measures used

In 1990s, the interest in quantifying the impact of HR practices on financial performance has led to a number of studies which linked the impact of HR practices to specific firm outcomes Roger and Wright (1998) reviewed the empirical research on the

HR performance relationship; they found that many studies had used accounting and financial measures as the approaches to observe HR practices Turnover, for example, has been linked to job security, presence of a union, compensation level, culture etc (Arnold,

H.J & Feldman, D.C., 1982); (Baysinger, B.D & Mobley, W.H., 1983) Another research

of found that “bundles” of HR practices were related to productivity and quality in his sample of worldwide auto assembly plants (MacDuffie, J.P, 1995) Investments in various

HR practices have been linked to firm financial performance, such as: training (Russell, J.S., Terborg, J.R., & Powers, M.L., 1985), selection and staffing (Terpstra, D.E & Rozell, E.J., 1993), appraisals (Borman, W.C., 1991), and compensation (Gerhart, B., & Milkovich, G.T., 1992) Other studies have focused on HR practices and financial performance in specific industries Studies have shown relationships between progressive HR practices and firm performance in manufacturing (Delaney, 1996), cooperative and innovative HR practices and organizational productivity in steel plants (Ichniowski, C., Shaw, K., & Prennushi, G., 1993); (Arthur, 1994), and bundles of integrated HR practices and higher productivity and quality in automotive plants (MacDuffie, 1995)

1.6 Research Model and Hypotheses

1.6.1 Research Model

To study the relationship between HRM and motivation, 4 soft HRM practices were selected in this present thesis (Elise Marescaux, Sophie De Winne, and Luc Sels, n.d) What these practices comprehend, is described below:

Direct Employee Participation: This HRM practice refers to a system of worker participation in management decision making that is based on the direct involvement of individual employees (Heery, E & Noon, M., 2001) As it may give a signal to employees that the organization encourages active participation and discourage passive compliance, employee might fell satisfaction Therefore, motivation can increase

Performance Appraisal’s aim is to evaluate the performance of the employees of an organization and look how their performance can be increased This HRM practice provides both positive and negative feedbacks about employees’ performance In addition, this HRM practice can foster satisfaction as this interaction may allow for increasing motivation

Training: Training opportunities ensure that employees understand their roles and develop the needed skills and abilities to perform in their job It can be augured that training satisfies the need for relatedness because it gives the employees signal that they are valued and company is willing to invest in long term relationship with them

Career Development: it consists of activities in which an employee’s career is planned, guided, and developed Career planning signals career security to employees thus reducing threats of external control As such we expect career development to increase satisfaction and thus motivation

The measures relating to employee motivation are organizational commitment (OC) and intrinsic job satisfaction (IJS) [29] OC is an obvious measure because of the salient position of the commitment concept in the literature on HRM and workplace transformation Intrinsic job satisfaction is also frequently referred to in that literature, and its use can be supported from psychological theories of basic needs that emphasize autonomy and self-realization

Source: Author

Figure 1.3 Research Model

Direct participation

Performance appraisal

Training

Career development

 Intrinsic Job satisfaction

 Commitment

H1a,H2a, H3a,H4a

H1b,H2b, H3b,H4b

1.6.2 Hypotheses

There are several hypotheses for this research model as following:

1 Direct Participation and Motivation

H1a: Direct employee participation is positively related to Organizational Commitment That means the higher/lower of employees evaluate participation, the higher/lower level of Commitment

H1b: Direct employee participation is positively related to Intrinsic Job Satisfaction That means the higher/lower of employees evaluate participation, the higher/lower level of job satisfaction

2 Performance Appraisal and Motivation

H2a: Performance Appraisal is positively related to Organizational Commitment That means the higher/lower of employees evaluate appraisal, the higher/lower level of Commitment

H2b: Performance Appraisal is positively related to Intrinsic Job Satisfaction That means the higher/lower of employees evaluate appraisal, the higher/lower level of job satisfaction

3 Training and Motivation

H3a: Training opportunities are positively related to Organizational Commitment That means the higher/lower of employees evaluate training, the higher/lower level of Commitment

H3b: Training opportunities are positively related to Intrinsic Job Satisfaction That means the higher/lower of employees evaluate training, the higher/lower level of job satisfaction

4 Career Development and Motivation

H4a: Career Development is positively related to Organizational Commitment That means the higher/lower of employees evaluate career development, the higher/lower level

of Commitment

H4b: Career Development is positively related to Intrinsic Job Satisfaction That means the higher/lower of employees evaluate career development, the higher/lower level

of job satisfaction

CHAPTER 2 RESEARCH CONTEXT AND METHODOLOGY

This chapter has given an overview description of Vietnam Social Security where the research was conducted In addition, it would also provided detail research method from preparing for collecting data to analyzing data

2.1 Overview of Vietnam Social Security

2.1.1 History and development of Vietnam Social Security

Social insurance has been implemented in Vietnam since 1945 and was supplemented and amended in 1961, 1985 and 1995

In 1961, a decree was promulgated by the Government to provide social welfare services to all officers who were working in the internal affairs, education, health and state-owned enterprises The system covers only about 600,000-700,000 people out of the total population of 17 million people in northern Vietnam [43] In 1964, Decree N0 218 has implemented social insurance for military Since 1975, social insurance policies have been implemented nationally with items consist of retirement, disability, death, sickness, maternity and occupational accidents, occupational disease Insurance funds have been contributed by agencies, units and businesses

In February 1995, the Government issued Decree No 19/ND-CP to establish the Vietnam Social Security In September 1995, the Prime Minister issued Decision N0 606/TTg on the regulation on organization and operation of Vietnam Social Security Its purpose was innovating social insurance policies fundamentally oriented independent accounting, ensuring the balance between income and expenditure, attaching the social insurance benefits of the employees with the business owners’ responsibility and workers, the State only supports when necessary According to the labor law, social insurance funds were accounted independently, self-balancing revenue - expenditure for services and separated from the state budget Since then, Vietnam social security has been built and developed in three periods accordance with the its functions and tasks

The period from 1995 to 2002

This was the first building and development stage of Vietnam social security According to Decree N019/ND-CP, Vietnam Social Security was a governmental agency which was administrative managed by the Ministry of Labor, Invalids and Social Affairs [48] Governing body was the highest management Board of Vietnam Social Security Although newly established, Vietnam Social Security has effectively carried out the tasks assigned by the Government, contributed to implementing the renovation of mechanisms and policies for the social insurance sector from subsidy to independent accounting As the result, social insurance revenues were not only guaranteed payment but also accumulate At the same time, payment in time to ensure employees’ benefits, reduce troubles and avoid loss funds

The period from 2003 to 2008

In this period, Vietnam social security was added the function of managing health insurance and unemployment insurance policies for beneficiaries In December 2002, the Government issued decree No 100/2002/ND-CP that regulated the functions, tasks, powers and organizational structure of Vietnam Social Insurance instead of the issued decree No 19/NĐ-CP in 1995 According to this decree, Vietnam Social Security was still a governmental agency under the administrative management of the Ministry of Labor, Invalids and Social Affairs and supervision of the VSS Governing Body but its function and tasks was expanded this period Along with the revenue and expenditure duties and the management of the social insurance fund, VSS also has got the duty of collecting, spending and managing the health insurance fund in accordance with the law

The organizational model of VSS was still follows a vertical system including three levels of the central, province/city and district

The period of implementing the Social Insurance Law

In June 2006, the National Assembly has adopted the Social Insurance Law In order to implement this law most effectively, the Government has issued decree N0 94/2008/ND-CP

to define VSS’s functions, tasks and powers at all levels Accordingly, Vietnam Social Security was allowed to set up 4 new divisions consist of Legal Department, Fund

Investment Department, Department for Pharmaceuticals and Medical Supplies and the Center for Medical Review and Tertiary Care payment Then, due to specific job requirements, the Government has issued decree No 05/2014/ND-CP to allow Vietnam Social Security to set up two other units encompasses the Internal Audit Department and the South Center for Medical Review and Tertiary Care payment

So far, over 20 years of construction and development, Vietnam's social insurance industry has been non-stopped growing in all aspects The turnover of social insurance and health insurance has increased rapidly over the years which were not only ensuring the payment but also accumulation The payment of social insurance benefits was done well, easily procedures and not caused troubles for VSS’s clients Social insurance funds were strictly managed, avoid negative and comply with the State’s regulations

2.1.2 Functions, tasks and organizational structure

2.1.2.1 Functions

Vietnam Social Security is a governmental agency which has got a responsible for organizing the implementation of social insurance (SI) and health insurance (HI) policies (compulsory and voluntary), collecting SI and HI contributing from employees and employers, make payments on retirement pension, unemployment (hereinafter referred as social insurance), compulsory and voluntary health insurance (maternity, health care, funeral etc hereinafter referred as health insurance) in accordance with the law’s provisions Vietnam social security is also administrative managed by the Ministry of Labor, Invalids and Social Affairs on social insurance, by the Ministry of Health on health insurance, by the Ministry of Finance on the financial regimes for social and health insurance funds

2.1.2.2 Tasks and powers

Vietnam Social Security has to submit to the Government and the Prime Minister a development strategy of Vietnam's social insurance industry as well as long-term and short-term plans on industry’s operation It has to provide sustainable growth schemes for social and health insurance funds which are being approved by the VSS Governing Body Then

VSS has to organize the implementing those strategies, plans and schemes Furthermore,Vietnam Social Security is responsible for connecting with other government agencies which jointly administrative manage in the field of social and health insurance, financial policies for social and health insurance funds

 Ministry of Labour, Invalids and Social Affairs: cooperation in implementation of the law on social insurance, report to the MOLISA on the SI fund management

 Ministry of Health: cooperation in implementation of the law on health insurance, report to the MoH on the management of the HI fund

 Ministry of Finance: cooperation in financial mechanism for SI and HI funds, report

to the MoF on the financial management of the funds, particularly revenue- expenditures and investment

VSS has got its own authority in the following items

- Promulgating guidelines on the procedures and professional expertise to deal with social and health insurance regimes and policies, on the collecting and payment of social and medical insurance according to the law’s provisions; Issuing specific documents and internal management documents of Vietnam social insurance sector

- Organizing communication and dissemination of regimes, policies, the law on social insurance and health insurance to people; exploiting and managing subjects who are participating in social and health insurances Issuing the approved forms of social insurance books and health insurance cards according to the insurants in accordance with the law

- Organizing collects social and health insurances that are contributed by agencies, businesses, organizations, employers and employees Receiving funds from the state budget

to pay for social and health insurance regimes according to the provisions of law Receipting and dealing with profiles, subsidizing conveniently and timely payment insurances that relate to sickness and maternity regimes, occupational diseases and accidents, retirement pension, death, medical examination and treatment Collecting unemployment insurance from agencies, businesses, organizations, employers and employees Supporting for unemployment, vocational training, looking for a job, paying health insurance for unemployment beneficiaries according to the provisions of law

- Managing and using social and health insurance funds comprise funds for pension, occupational accidents and diseases, sick and maternity fund, voluntary social insurance fund; unemployment insurance fund; compulsory and voluntary health insurance funds These activities would be centralized in a principle of unified, public, transparent, right purposes in accordance with the law

- Signing and supervising the contracts performance with healthcare facilities that meet all conditions, professional and technical criteria and supervise these facilities’ supplying medical examination and treatment services; protect patients’ rights who have got health insurance cards and anti-abuse; introduce workers to assess the working capacity decline at the Medical Evaluation Council VSS also has got a right to sign contracts with agents who are recommended and guaranteed by the People's Committees of communes, wards and townships for the implementation of the social and health insurance regimes and policies in there

- Directing and providing professional guidance as well as managing the implementation of social and medical insurances in the Ministry of National Defense, the Ministry of Public Security and the Government cryptographic board Inspecting the contract signing, the payment social and medical insurance for the agencies, businesses, organizations, individuals and medical facilities Refusing to pay and demand payment of social and health insurances which are not in accordance with the law Resolving petitions, complaints and denunciations about the implementation of the social and health insurances according to the provisions of law

- Implement international cooperation on social and health insurances in accordance with the law Research and apply science, information technology in statistics and management of social and health insurances Training and retraining professional skills in social and health insurances

- VSS is entitled to decide the number of official staffs of the member units and conducting the recruitment staffs and systematically managing the personnel system; managing the financial and property of the Vietnam Social Insurance system and organize

statistical and accounting activities on social and medical insurances according to the provisions of law

- Deciding and implementing an administrative reform plan of the Vietnam Social Insurance according to the Government's objectives, requirements, programs and plans as well as the direction of the Prime Minister Carry out the one-stop shop mechanism in dealing with social and health insurances

- Report biannually to the VSS Governing Body on the implementing social and medical insurances Report annually to the Government on managing and using social and health insurance funds To provide sufficient and timely information on the payment, the right to enjoy regimes social and health insurance and procedures which are requested by the employee, the employer and the trade union Sharing adequate and timely documents and information as requirement of competent state agencies Coordinating under the request

of competent state agencies in inspecting social and health insurances To propose the competent agencies to handle break-law activities on social and medical insurances To perform other tasks and powers assigned by the Government or the Prime Minister

2.1.2.3 Organizational structure

Vietnam Social Security is organized and managed in a vertical system, centralized and unified manner from central to local levels enclose

 At the central is Vietnam Social Security

 In the provinces and cities directly managed by the Central, they are provincial social insurance and VSS directly managed its members

 In the rural districts, urban, provincial towns and cities, they are the district social insurance offices which directly managed by provincial social insurance department

Vietnam social security has got 25 functional units which were described in the figure below

Figure 2.1 Organizational structure of VSS

Contribution Collection Depart

Finance - Accounting Depart

Social Security Office (Province, Distr.) Social Security Magazine

Training School for Social Security Oper*

International Cooperation Depart

South Center for MRTCP * North Center for MRTCP * Archives Center

Information technology Center Institute for Social Security Science

Awards - Emulation Depart

The Office Internal Audit Depart

Social Security Newspaper

Explaining (*)

HIB and HIC Depart = Department for Social Insurance Books and Health Insurance Cards

PMS Depart = Department for Pharmaceuticals and Medical Supplies

North Center for MRTCP = North Center for Medical Review and Tertiary Care payment

South Center for MRTCP = South Center for Medical Review and Tertiary Care payment

Training School for Social Security Oper = Training School for Social Security Operations

 Governing Body of Vietnam social security

It helps the Government and the Prime Minister to direct and supervise the VSS’s conducting regimes and policies, collection and spending, managing and using social and health insurance funds Board’s members are representative leaders of MOLISA, MOH, MOF, MOI, the Vietnam General Confederation of Labor, the Vietnam chamber of Commerce and Industry, Vietnam Cooperative Alliance, Vietnam Farmers' Association VSS general director and other members shall be defined by the Government It has a chairman, a permanent vice chairman and the members who are appointed, dismissed by the Prime Minister according to a proposal of the Minister of the Interior These members have got a 5-years managerial term VSS governing body has got its own office that performs the specific tasks [50]

The VSS Governing Body has got a power to direct setting-up and approving important plans such as the development strategy of the Vietnam Social Insurance industry, long-term and short-term plans for the implementing social and healthcare insurance regimes, sustainable development projects of social and health insurance funds before they submit to the Prime Minister for an approval This board also supervises and inspects the VSS General Director to implement approved strategies, plans and as well as VSS’s revenues and expenditures, managing and utilizing social and medical insurance funds It proposes competent state agencies to amend and supplement the State's regimes and policies on social and medical insurances in order to ensure the safety of funds The Board approves the annual estimates and balances on revenues and expenditures of the social and health insurance funds and reports them to the Ministry of Finance according to current regulations It is entitled to decide on investment forms of social and medical insurance funds according to General Director’s proposal Members of the VSS governing body who

are the representative of the Ministry, the agency will be responsible to report the related contents to their Minister, leaders It has got a right to request the Prime Minister to appoint

or dismiss the VSS General Director and Deputy General Directors

 Provincial and District social insurance offices

Provincial/district social insurance offices have their own legal status, seal, accounts, functional divisions and working office

The directors of the provincial/district social insurance offices are responsible for the offices’ operation and personnel The VSS general director has got a right to appoint and dismiss the director, vice directors and decide the operating budget of these offices Each provincial/district social insurance office has got a director and three vice directors VSS general director decides to establish or dissolve the provincial/district social insurance offices if there is a decision on the merger or splitting of the provincial administrative unit

by the competent state agencies The provincial/district social insurance directors are entitled appoints, and dismisses the heads and deputy heads of divisions belong to his office according to the criteria of VSS’s personnel regulation

2.2 Research methods

This part has presented the used methods to carry out the survey that compose of designing questionnaires, selecting sample and data, analyzing data plan Data processing was conducted by softwave SPSS 21.0 consist of Cronbach’s Alpha confidence coefficient analysis, exploratory factor analysis and multiple linear regression analysis

- Part II was designed to collect assessments from employees about perceived HRM practices of Vietnam Social Security

- Part III was designed to collect assessment from employees about their perceived of working motivation

Part II combined 16 variables in total to assess perceived HRM practices in the company This measurement based on a 5-point rating scale which corresponding to 1 = strongly disagree, 2 = somewhat disagree, 3 = neither agree nor disagree, 4 = somewhat agree, 5 = strongly agree Respondents were given a definition or description of an HRM practice and were asked to assess the degree to which they agree or not into consideration

in that specific HRM practice First, we defined direct employee participation as periodic and structured consultations between management and staff concerning work and working conditions Secondly, performance appraisal was described as conversations in which strengths, weaknesses, and actions to improve future functioning are discussed Next, the

HR practice training was defined as training opportunities which are aimed at increasing an employee’s employability Finally, career planning was described as consisting of activities

or conversations in which an employee’s career is planned, guided, and developed A brief description of these measures was provided below:

Direct Employee Participation

- Employees are allowed to make many decisions

- Employees are often asked by their supervisors to participate in decisions

- Employees are encouraged to suggest improvement in the way jobs are done

- Supervisors keep open communication with employees in firm

Performance Appraisal

- Firm uses performance based appraisal that accurately evaluates the performance of employees

- Firm uses employee’s self-ratings on performance.

- Superiors in firm frequently discuss performance with subordinates

- Firm will give bonus or reward for employee who doing good job

Training

- Employees are fully trained skills to do their job

- The company’s training programs are relatively good

- Company facilitates employees in training to improve knowledge and skills

- Company provides formal training to promote skills to new hires as well as to existing employees

Career Development

- Employees got clear work orientation in the first day of working

- Superiors understand the career aspirations of employees

- The work promotion and transformation in the company are done fairly

- Employees have a lot of opportunities to develop in future

Part III combined 11 variables in total to assess perceived working motivation in the company More specifically, 7 variables will be used to assess organizational commitment (Lincoln and Kalleberg, 1997) and 4 variables are used to evaluate intrinsic job satisfaction Responses were to be answered on a 5-point scale ranging from 1 (strongly disagree) to 5 (strongly agree)

To measure intrinsic job satisfaction, we selected 4 questionnaire items that are similar to measures in research survey on the “job itself intrinsic satisfaction” of Warr et al (1979) These measures were briefly described below:

Organizational Commitment

- I am willing to work harder than I have to in order to help this organization succeed

- I feel little loyalty to this organization

- I find that my values and the organization's values are very similar

- This organization really inspires the very best in me in the way of job performance

- I am proud to be working for this organization

- I would take almost any job to keep working for this organization

- I would turn down another job with more pay in order to stay with this organization

Intrinsic Job Satisfaction

- I am satisfied with the sense of achievement I get from my work

- I am satisfied with the scope for using my own initiative

- I am satisfied with the amount of influence I have over my job

- I am satisfied with the work itself

2.2.2 Sample and Data Collection

According to head of Organization and Personnel Depart, total employees of Vietnam Social Security headquarter are about 666 people To collect the information, 180 questionnaires were given to employees Method to collect data was conducting surveys with employees who were working in VSS’s headquarter It took each people about 10 to

15 minutes to answer the questionnaire Survey process was carried out from 15th May

Age

Under 20 years old From 20 to 29 years old From 30 to 39 years old From 40 to 49 years old Over 50 years old

Seniority in VSS

Under 1 year From 1 to under 5 years From 5 to under 15 years Over 15 years

Seniority in current Department

Under 1 year From 1 to under 5 years From 5 to under 15 years Over 15 years

9% 13.4% 77.6% 0% 29.9% 31.3% 29.9% 9.0% 22.4% 34.3% 25.4% 17.9%

23.9% 37.3% 29.9% 9%

Female 44.8%

Department

Office 11.9%

Finance - Accounting Department 10.4%

Planning and Investment

Organization and Personnel Depart 11.9%

Fund Investment Depart 7.5%

Educational Level

College and Vocational 4.5%

University 82.1%

Higher Education 13.4%