Satisfaction level of employees in thai nguyen iron and steel joint stock corporation

The concern about the relationship between employee‟s perceptions of components of job like nature of work, salary, supervisors, co-worker, opportunity for advancement, working condition

AND STEEL JOINT STOCK CORPORATION

A DISSERTATION PAPER

Presented to the Faculty of the Graduate Program

of the College of Business and Accountancy Central Philippine University, Philippines

In Collaboration with Thai Nguyen University, Vietnam

Her husband and children for their unconditional and understanding, love and support that gave the researcher the encourage and inner drive that made possible the successful conduct of this study

Thai Nguyen, March 2017

Nguyen Thi Lan Huong

TABLE OF CONTENTS

LIST OF TABLES v

LIST OF FIGURES vii

ABSTRACT viii

CHAPTER I 1

INTRODUCTION 1

1.1 Background and rationale of the study 1

1.2 Objectives 3

1.3 Theoretical framework 3

1.4 Conceptual framework 11

1.5 The operational definitions 12

1.6 Significance of the study 15

1.7 Scope and limitation of the study 16

CHAPTER II 17

REVIEW OF RELATED LITERATURE AND STUDIES 17

2.1 Theoretical foundation 17

2.1.1 Defining job satisfaction 17

2.1.2 Importance of job satisfaction of employees and its relationship with job performance 18

2.1.3 Measuring job satisfaction 19

2.2 Empirical related studies 20

CHAPTER III 27

RESEARCH METHODOLOGY 27

3.1 Research Design 27

3.2 Population, Sample Size and Sampling Technique 27

3.3 Research Instruments 29

3.4 Ethical Consideration 29

3.5 Data Gathering Procedures 29

3.6 Data Processing and Data Analysis 32

CHAPTER IV 34

DATA PRESENTATION, ANALYSIS AND INTERPRETATION 34

4.1 Thai Nguyen Iron and Steel Joint Stock Corporation introduction 34

4.1.1 General informations 34

4.1.2 Organizational structure 36

4.1.3 Business Situation of TISCO 37

4.2 Situation of human resources of TISCO 38

4.2.1 The structure of human resources 38

4.2.1.1 Employee Structure by gender 38

4.2.1.2 Employees structure by age group 39

4.2.1.3 Employees structure by level of education and training 40

4.2.1.4 Employees structure according to the nature of work 40

4.2.2 Salaries, bonuses and Welfare of employees 40

4.2.3 Working condition of employee 41

4.2.4 Opportunity for advancement 41

4.2.5 Personal relationships 41

4.3 Evaluating the results of the employee satisfaction of TISCO 41

4.3.1 General information about respondents 41

4.3.2 Descriptive statistics 43

4.3.3 Test for reliability by Cronbach Alpha 48

4.3.4 Exploratory Factor Analysis EFA 52

4.3.5 Correlation Analysis 58

4.3.6 Regression analysis and hypothesis testing 59

4 5 Differences of Job Satisfaction by characteristics of workers 75

4.5.1 Difference of Job Satisfaction by “gender” 75

4.5.2 Difference of Job Satisfaction by “Age groups” 76

4.5.3 Difference of Job Satisfaction by “marital status” 77

4.5.4 Difference of Job Satisfaction by “education” 78

CHARTER V 80

SUMMARY, CONCLUSION AND RECOMMENDATION 80

5.1 Summary 80

5.1.1 Research objective and methodology 80

5.1.2 Results of multiple regression analysis 80

5.2 Conclusions 82

5.3 Recommendation 83

REFERENCES 88

APPENDICES 95

LIST OF TABLES

Table 3 1 Sample size of participants from each department in TISCO Thai Nguyen 28

Table 3 2 The 5- Likert scale 29

Table 3 3 Sample of member in TISCO Thai Nguyen by kind employees 31

Table 3 4 Cronbach alpha coefficient scale 32

Table 4 1 Balance company audit results 37

Table 4 2 Report on business results of the Company 38

Table 4 3 Employee Structure by gender 39

Table 4 4 Employees structure by age group 39

Table 4 5 Employees structure by level of education and training 40

Table 4 6 Number of questionnaire sent out and collected 42

Table 4 7 Frequency and percentage of employees by characteristics of participants (n = 367) 43

Table 4 8 Descriptive Statistics of total employees 44

Table 4 9 Descriptive Statistics of Indirect employees 44

Table 4 10 Descriptive Statistics of direct employees 45

Table 4 11 Descriptive statistics of “Supervisors”factor 45

Table 4 12 Descriptive statistics of “Co-worker” factor 46

Table 4 13 Descriptive statistics of “Working conditions” factor 46

Table 4 14 Descriptive statistics of “Financial reward” factor 46

Table 4 15 Descriptive statistics of “Opportunity for advancement” factor 47

Table 4 16 Descriptive statistics of “Salary” factor 47

Table 4 17 Descriptive statistics of “Nature of work” factor 48

Table 4 18 Cronbach Alpha of Nature of work 48

Table 4 19 Cronbach‟s alpha of salary 49

Table 4 20 Cronbach‟s alpha of Opportunity for advancement 49

Table 4 21 Cronbach‟s alpha of Supervisors 50

Table 4 22 Cronbach Alpha of Co-workers 50

Table 4 23 Cronbach Alpha of Working conditions 50

Table 4 24 Cronbach Alpha of Financial reward 51

Table 4 25 Cronbach Alpha of Satisfactions 52

Table 4 26 The result of EFA test for factors influencing job satisfaction of employees 52

Table 4 27 The result of EFA retest for factors influencing job satisfaction of employees 55

Table 4 28 EFA test for influencing job satisfaction factors 56

Table 4 29 EFA test for influencing job satisfaction factors 57

Table 4 30 Correlation coeefficients 58

Table 4 31 Descriptive Statistics of general employees 59

Table 4 32 Job satisfaction of Indirect employees 60

Table 4 33 Descriptive Statistics of direct employees 61

Table 4 34 Descriptive Statistics of “Nature of work” factor 61

Table 4 35 Descriptive Statistics of “Supervisors” factor 62

Table 4 36 Descriptive Statistics of “Co-worker” factor 62

Table 4 37 Descriptive Statistics of “Working conditions” factor 63

Table 4 38 Descriptive Statistics of “Financial reward” factor 63

Table 4 39 Descriptive Statistics of “Opportunity for advancement” factor 63

Table 4 40 Descriptive Statistics of “Salary” factor 64

Table 4 41 Regression model of general employees 66

Table 4 42 Regression model of direct employees 69

Table 4 43 Regression model of indirect employeess 72

Table 4 44 Results of One-Way Anova test of “gender” 75

Table 4 45 Results of One-Way Anova test of “Age groups” 76

Table 4 46 Result of Bonferroni test of “Age groups” 77

Table 4 47 Results of One-Way Anova test of “marital status” 77

Table 4 48 Results of One-Way Anova test of “education” 78

Table 4 49 Result of Bonferroni test of “education” 79

Table 5 1 Coefficients three multiple regression 81

LIST OF FIGURES

Figure 1 1 Abraham Maslow‟s need hierarchy theory 5

Figure 1 2 Maslow‟s hierarchy of needs and application in the workplace 5

Figure 1 3 Herzberg‟s two factors theory 8

Figure 1 4 Summarizing the need theories 9

Figure 1 5 Theoretical framework 11

Figure 1 6 Conceptual framework 12

Figure 2 1 Measure job satisfaction by faces 20

Figure 4 2 Research framework: Adjusted model 57

Figure 4 3 Homoscedasticity 64

Figure 4 4 Histogram chart 65

Figure 4 5 P-P plot chart 65

The findings showed in previous part have many theoretical and practical

implications This section summarizes all these implications Firstly, the findings of this

study are different from the previous studies about job satisfaction among employees The research determined the job satisfaction level in both direct employees and indirect

employees Secondly, this dissertation develops a model and empirically tests their

applicability in delivery of pass grassroots level This study has tested the scales about the job satisfaction and components of job It points out that there are 7 components when considering a job To be compared with the previous studies, the factors and impact levels on

the satisfaction of employees have some differences Thirdly, this study objects to understand

how employee satisfaction with their job in Thai Nguyen Iron and Steel joint stock Corporation TISCO is determined Even when the satisfaction of employees is medium level and high, some other aspects of job which are scored low or workers are not satisfied

Fourthly, the research also shows that whether or not the differences in the satisfaction of

employee according to their personal characteristics The concern about the relationship between employee‟s perceptions of components of job like nature of work, salary, supervisors, co-worker, opportunity for advancement, working condition, financial reward and the employee‟s job satisfaction in TISCO We also need to learn about the influence of these factors as an important part in the future improving the satisfaction of the employees This trend requires the operational capacity of administrator and manager in TISCO and

worker knowledge Fifthly, and finally, this thesis supply helpful information for TISCO can

based on to set up the polices and plans so as to enhance the satisfaction of the employee about their job Although The latter approach generally takes the form of employee‟s satisfaction surveys or other relevant survey data measuring quality of job or work performance by worker Thus, the findings from the survey at TISCO have practical significance when the TISCO has made reform for a long time

CHAPTER I

INTRODUCTION

1.1 Background and rationale of the study

There are many factors influencing human resource management, of which job satisfaction is the most important issue among many factors of human resource management that every manager needs to give much attention

The term “job satisfaction” is derived from the humanities, psychology and sociology In the field of psychology, it is a state where an employee has an emotional perception of his situation and reacts with feelings of pleasure or pain In sociology, it is considered a variable in different categories related to how each employee evaluates and thinks about his work (Sypniewska, 2013) Job satisfaction can be defined as an individual‟s total feeling about their job and the attitudes they have towards various aspects or facets of their job, as well as an attitude and perception that could consequently influence the degree of fit between the individual and the organization (R Karthik, S Saratha, & M Sowmiya, 2012; Spector 1997)

For a few decades, many researchers have been carried out about job satisfaction and its components Many researchers and administrators have noticed the importance of job satisfaction on a variety of organizational variables In particular, it was known that dissatisfied employees are likely to leave their jobs (E.J Lumley, et al, 2011) Job satisfaction among employees is an indicator of organizational effectiveness (R Karthik, S Saratha, & M Sowmiya, 2012) the study conducted by Harter et al (2002) found positive and substantive correlations between employee satisfaction-engagement and the business unit outcomes of productivity, profit, employee turnover, employee accidents, and customer satisfaction Freeman, (2005) shows that businesses that excel in employee satisfaction issues reduce turnover by 50% from the norms, increase customer satisfaction to an average of 95 % and lower employee cost by 12% Carpitella (2003) indicated that the more satisfied an employee

is, the less turnover and absenteeism occurs (Maloney & McFillen, 1986)

Added to that, Job satisfaction plays an important role for an employee in doing their job performance Research examining the relationship between job satisfaction and job performance has been conducted since at least as early as 1945 (Davar, 2012) The idea that job satisfaction leads to better performance is supported by Vroom's The study relating to the relationship between job satisfaction and job performance has now become a research tradition in industrial-organizational psychology Vroom's (1964)

Worldwide, job satisfaction was conducted on many areas and the results were

different Nolan et al (1998) found that the vast majority of respondents (85%) considered that their work was interesting Regarding job satisfaction and morale, 35% of respondents considered that their job satisfaction had decreased in the last year and 69% felt that overall morale had fallen Price (2002) indicated that over half of the respondents (58%) were generally satisfied with their job They identified that highest satisfaction was related to co-workers and extrinsic rewards and that most dissatisfaction was with the amount of control and responsibility they had and with professional opportunities Using the same scale, Wang (2002) found that workforces were more dissatisfied than satisfied and were mostly dissatisfied with salary and job promotion

In Vietnam, CareerBuilder (2008) showed that dissatisfaction is growing among the

workers: 25% of employees were bored with their job, 60% of respondents were intending to leave their current job to go to a different berth in the next two years Another study indicated that the respondents ranked their job satisfaction at the moderate level (Vu Thi Kim Trinh, 2013) Duong Cong Vi (2013) revealed that the level of satisfaction among workforces was at lower and middle range of good level This finding is accordant with Le Quang Thach‟s research (2012)

Thus, job satisfaction affects to most of aspects of a factory or company It is not only influences to the resource management, employee productivity, product quality but also changes the customer satisfaction In worldwide and Vietnam, there have been some studies were conducted but results from those studies were different Especially in Vietnam, the degree of job satisfaction of employee was still low Hence, the we would like to conduct this research to determine factors influencing job satisfaction of employees and explain the relationship existing among them

Established in 1959, Thai Nguyen Iron and Steel joint Stock Corporation (TISCO), the cradle of the metallurgical industry of Vietnam is the first an unique metallurgical zone in Vietnam with an integrated production line from exploiting iron ore to making cast iron, steel billet and rolling steel Like the other companies, TISCO have been facing the challenges of recruiting, and retaining quality workers The problem is unlike the past years, in conditions

of economic slowdown, the role of human resource professionals has become an integral part

of the organization‟s success For the TISCO, these challenges are even more complex So the question is how to satisfy employees and how to retain them is the most concerned question

of the different levels of management These studies have been focused mainly on private sectors Seldom has been conducted on relationship between job satisfaction and organizational and individual factors, especially in the case of Thai Nguyen, there is no

research on this topic Thus, the research in evaluating the job satisfaction and determining the factors influencing job satisfaction is needed

With the above purposes, this conducts a research on “Satisfaction of employees

in Thai Nguyen Iron and Steel Joint Stock Corporation” was conducted

Research questions

i) What is the level of job satisfaction among TISCO‟s employees?

ii) Is there a difference between level of job satisfaction of direct employees and

Specific objectives

The purpose of this study is to evaluate the satisfaction level of the employee in TISCO and examine its relevant factors Therefore, the specific objectives of this research are

as follows:

1 To synthesize the relevant theories related to job satisfaction

2 To describe the profile of respondent in term of gender, job position, age, marital status, educational level, length of work in the company, monthly income, and working conditions

3 To determine the job satisfaction level of employee working in TISCO

4 To identify the effect of Nature of work, Salary, Opportunity for advancement, Relationship with Supervisors, Respect from Co-Workers, Working conditions, and financial Rewards on job satisfaction of employees

5 To propose recommendations for committee to improve the job satisfaction of employees for keeping of their job productivity and efficiency

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 Maslow‟s theory states that people have a pyramide hierarchy of needs that they will satisfy from bottom to top There are deficiency needs, that will stifle any other movement if they‟re not satisfied, and growth needs, that can be progressively satisfied once the basics have been covered (Argyris, 1957)

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 status, 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

Figure 1 1 Abraham Maslow’s need hierarchy theory

Maslow‟s hierarchy of needs applied to work situations implies that managers have the responsibility, firstly, to make sure their people‟s deficiency needs are met This means, in broad terms, a safe environment and proper wages.Secondly, it implies creating a proper climate in which employees can develop their fullest potential Failure to do so would theoretically increase employee frustration and could result in poorer performance, lower job satisfaction, and increased withdrawal from the organization

Figure 1 2 Maslow’s hierarchy of needs and application in the workplace

Needs Examples

Physiological Cafeterias Vending machines

Drinking fountains Security Economic: Wages and salaries

Fringe Financial rewards Retirement Financial rewards Medical Financial rewards Psychological: Provide job descriptions

Avoid abrupt changes Solve employee‟s problems Physical: Working conditions

Heating and ventilation Rest periods

Belongingness Encourage social interaction

Create team spirit Facilitate outside social activities Use periodic praise

Allow participation

Use praise and awards Delegate responsibilities Give training

Encourage participation Self-actualization Give training

Provide challenges Encourage creativity

(2) McClelland’s achievement motivation theory (need based theory)

McCelland‟s theory of needs focuses on just three needs: achievement, power and affiliation They are defined as follows:

Need for achievement – The drive to excel, to achieve in relation to a set of standards, to strive to succeed

Need for power – The need to make others behave in a way they would not have behaved otherwise

Need for affiliation – The desire for friendly and close interpersonal relationships

McClelland (1988) suggests that people with a high achievement need have a compelling drive to succeed They strive for personal achievement rather than rewards and have a desire to do something better or more efficiently than it has been done before They seek situations where they can attain personal responsibility for finding solutions to problems, where they can receive rapid feedback on their performance so they can tell easily whether they are improving or not, and where they can set moderately challenging goals It is important to note that high achievers, as described by McClelland, avoid what they perceive

to be very easy or very difficult tasks They receive feelings of achievement and satisfaction from overcoming 50 difficulties and obstacles, but they need to feel that their success (or failure) is due to their own actions McClelland postulates that high achievers will perform best when they perceive there to be an approximately equal chance of success or failure

McClelland stated that most people possess and exhibit a combination of these characteristic Some people exhibit a strong bias to a particular motivational needs, and this motivational or needs “mix” consequently affects their behavior and working and managing style McClelland's theory also allows for the shaping of a person's needs; training programs can be used to modify one's need profile

McClelland suggested that a strong need for affiliation affiliation-motivation undermines a manager's objectivity, because of their need to be liked, and that this affects a manager's decision-making capability A strong need for power authority-motivation will produce a determined work ethicand commitment to the organization, and while “n-pow” people are attractedto the Supervisorsship role, they may notpossess the required flexibility and people-centred skills McClelland argues that need for achievement people with strong achievement motivation make the best Supervisorss, although there can be a tendency to demand too much of their employee in the belief that they are all similarly and highly achievement-focused and results driven, which of course most people are not

McClelland‟s needs are found to varying degrees in all workers and managers, and their mix of motivational needs characterizes a person's or manager's style and behavior Both

in terms of being motivated and in the management and motivation others People with different needs are motivated differently

High need for achievement – High achievers should be given challenging projects with reachable goals They should be provided frequent feedback, while the money is not an important motivator in itself Rather, it is an effective form of feedback

High need for affiliation – Employees with a high affiliation need perform best in

a cooperative environment

High need for power – Management should provide power seekers the opportunity to manage others

(3) Herzberg’s two factors theory (need based theory)

Herzberg‟s theory is one of the most empirical and compelling theories about motivation It‟s the only theory that splits out demotivating factors from motivating factors; it introduces the concept of movement and motivation And it “has produced more replications than any other research in the history of industrial and organizational psychology The Two Factor Theory, or Motivation and Hygiene Theory, purports to differentiate between intrinsic and extrinsic aspects of the job The authors referred to the intrinsic factors as content or motivators, and they include: achievement, advancement, the work itself, responsibility, and recognition The extrinsic factors were referred to as hygienes and included: company policy and administration, technical supervision, working conditions, salary, and interpersonal supervision

Herzberg avoids using the word „need‟ and maintains that in any work situation, you can distinguish between two sets of factors The theory states that job satisfaction and dissatisfaction are affected by two different sets of factors Therefore, satisfaction and dissatisfaction cannot be measured on the same continuum

Hygiene factors: Features of the work environment which, if present, help avoid dissatisfaction with work Concerned with job context e.g work environment, status, company procedures, quality of supervision Can be related roughly to Maslow‟s lower-level needs

Motivators: Features of the job itself that people find enjoyable and that have a motivational effect Mainly intrinsic in nature e.g sense of achievement, recognition, responsibility Can be related to Maslow‟s higher-level needs

Figure 1 3 Herzberg’s two factors theory

 Pay and security

 Company policies and administration

Satisfaction No satisfaction Dissatisfaction No Dissatisfaction

Summarizing the need based theories

Despite the obvious differences between the need theories discussed in this section, there are several points at which the theories intersect Figure 1.4 illustrates the similarities among the three theories examined All need-based theories, however, share an inherent weakness in that “they do an adequate job of describing the factors that motivate behavior, but they tell us very little about the actual processes of motivation” (Moorhead & Griffin, 1995) Process based motivation theories provide a better understanding of the ways in which motivation occurs

Figure 1 4 Summarizing the need theories

(4) Victor Vroom’s expectancy theory (process based theory)

The most widely accepted explanation of motivation has been propounded by Victor Vroom.The Expectancy theory provides a sort of a mechanism for finding out motivation through a certain type of calculation The way in which the Expectancy theory works is as follows:

Firstly, Employees have personal goals which they like to achieve and for this reason they work in organizations These personal goals can be fulfilled by organizational rewards or work outcomes Therefore, the relationship between organizational rewards or work outcomes and personal goals is important i.e to what extent organizational rewards fulfil an employee‟s personal goals and how, attractive are those rewards to the employee This relationship can also be expressed as the value the employee gives to the work outcomes Secondly, organizational rewards or work outcomes are dependent on the individual performance of the employee The level of belief that the individual employee has that his/her performance will result in achievement of organizational rewards/work outcomes is also important And thirdly, the perception of the chances by the individual employee that personal effort on his/her will lead to high performance is again important Therefore, there are four variables for an employee that matter him/her in motivation (Robbins Stephan and Judge Timothy, 2013) These variables are: 1) Individual effort; 2) Individual performance; 3) Organizational rewards/work outcomes; 4) Personal goals

Relationship between Efforts and Performance: This is known as Expectancy (E) Expectancy explains the subjective probability of the effort resulting in an outcome (called the first level outcome) The value of expectancy will vary between 0 and 1 0 level of expectancy means that our maximum effort will also not result in any change in performance In other words the probability of improvement in performance is nil An expectancy of the level of 1 means that our effort will lead to highly successful or the best performance In other word, the probability of improvement is 1 (PareekUdai, 2004)

Relationship between Performance and Rewards/Work Outcomes: This relationship

is called Instrumentality (I) The instrumentality is the perception of an employee of the probability that performance will lead to organizational rewards or outcomes like superior salary, bonuses, promotion etc The value of instrumentality is also between 0 and 1 According to Fred Luthans, another major input into the valence is the instrumentality of the first level outcome in obtaining a desired second level outcome For example an employee would be motivated towards achieving better results or superior performance because of desire of getting higher bonuses The better results or superior performance or the first level outcome will therefore be instrumental in getting higher bonuses or a second level outcome (Luthans Fred, 1998)

Relationship between Rewards/Work Outcomes and Personal goals: This is known

as Valence (V) The valence measures the attractiveness, preference, value or the liking of the rewards or work outcomes for the employee Its value can be from -1 to +1 The Valence of

an outcome to a person is a monotonically increasing function of the algebraic sum of the

products of the valences of all other outcomes and his conceptions of its instrumentality for the attainment of these other outcomes (Vroom, 1964) Work outcomes can be stress or fatigue But they can also be pay raise or promotion Stress or fatigue can have somewhat negative valences but pay raise or promotion can have strongly positive valences But for motivation it is important that sum total of valences must be positive (Miner John, 2006) The Valence may vary from one person to another person Therefore, the expectancy theory says that:

Effort/motivation = V x E x I (Motivation = Valence x Expectancy x Instrumentality)

Based on the literature review, theoretical frame work is proposed as below:

Figure 1 5 Theoretical framework

1.4 Conceptual framework

After studying literature review on job satisfaction conducted by domestic and international researchers, the author of this thesis to input – process – output model to develop researcher‟s study on evaluation of job satisfaction of employees working in TISCO, as below

 Future expectation

Job satisfaction of employee

Figure 1 6 Conceptual framework

Based on specific condition of working in TISCO, the study propose hypothesis as below:

Hypotheis 1 There are no significant differences in the job satisfaction among employees in TISCO according to their personal characteristics like age, gender, education, and marital status;

Hypothesis 2 There are no significant relationship between employee‟s perceptions of components of job like nature of work, salary, supervisor, co-worker, opportunity for advancement, working condition, financial reward and the employee‟s job satisfaction in TISCO

1.5 The operational definitions

The operational definitions of variables in present study are defined as follows:

Job satisfaction: Job satisfaction can be defined as an employee‟s total a happy or pleased

feeling about their job and the attitudes they have towards various aspects or facets of their job Job satisfaction is measured by the perception of respondents with the following criteria:

1 Satisfied with current job,

2 Satisfied with current income,

3 Satisfied with current opportunity for advancement,

4 Satisfied with current supervisor, satisfied with co-worker,

Antecedent variables Independent variables Dependent variable

Relationship with Supervisors

Respect from Workers

Co-Working Conditions

Financial Rewards

Job satisfaction

5 Satisfied with current working condition,

6 Satisfied with current welfare or reward,

7 Satisfied with current employee-evaluated method of company,

8 Totally satisfied with current job

The nature of work (work itself): The nature of the employee‟s work is best defined as the

type of work that they do This can refer to the basic daily tasks that he carries out as part of their job The nature of this work may be summed up in the employee's title The nature of work is measured by the perception of respondents with the following criteria:

1 You understand clearly current job

2 Your current job is simple or easy

3 Your current job is creative

4 Your current job is challenge

5 You may decide to work on some issues with your abilities

6 You can use a lot of different skills at work

7 The work that you are doing matches with your capabilities

8 The work that you are doing is appropriate

Salary: Salary is a fixed amount of money agreed every year as pay for a employee, usually

paid directy into his or her bank account every month In this case, salary refers the money that TISCO pays for their employee a month The salary is measured by the perception of respondents with the following criteria:

1 The salary that you get from TISCO is commensurate with the your capacity and contribution

2 The salary that you get from TISCO is clear and fair

3 The salary that you get from TISCO was paid in full and on time

4 Bonus policy is fair and satisfactory

5 The company allowance is reasonable

Opportunity for advancement: Advancement is the development or improvement of

position or something of employee‟s own career The opportunity for advancement is measured by the perception of respondents with the following criteria:

1 The skills that you was trained can meet the job requirements

2 You may have the opportunity to be trained and to improve knowledge

3 Company always give a chance for you to be trained and improve knowledge

4 You may have a lot of chance of advancement when you work at here

5 Company has a fair policy to train employees

6 The company gives the process, specific instructions for every employee

Supervisor: Supervisor is a person whose job is to supervise employees or their works

The surpervisor is measured by the perception of respondents with the following criteria:

1 Supervisor cares about you

2 Supervisor listen to your opinions

3 Supervisor gives good suggestions

4 You easily communicate and interface with your supervisor

5 You receive equally treatment from supervisor

6 Supervisor is capable of executive

Co-worker: Co-worker is a person working with another employee, especially as a partner or

helper The co-worker is measured by the perception of respondents with the following criteria:

1 Co-worker is willing to help you

2 Co-worker is friendly and generous

3 You may learn experiences from your co-workers

4 Co-worker coordinates with you well

5 Your co-worker is reliable

Financial reward: financial is the money or something given in exchange for good behavior

or good work, extra work of employees The financial is measured by the perception of respondents with the following criteria:

1 Companies implements all of insurances for employees

2 Trade union always cares and support you when you face with some problems

3 Welfare of company is clear and adequate

4 Welfare policy of the company expressed the consideration of company to employees

Working condition: refers to the working environment and all existing circumstances

affecting employee in the workplace, including job hours, physical aspects, legal rights and responsibilities The working condition is measured by the perception of respondents with the following criteria:

1 Personal protect equipment that was provided to you is adequate

2 Workplace is sate

3 Workplace is clear and convenient

4 You satisfied with the work-time

Age: refers the length of time of the person from 18 to Current age The age is measured by

the perception of respondents with the following criteria:

1 From 18 to 25

2 From 26 to 35

3 From 36 to 45

4 From 46 to 60

Gender: refers to the attitudes, feelings, and behaviors that a given culture associates with a

person‟s biological sex In the other hand, gender is the state of being male or female (typically used with reference to social and cultural differences rather than sex Sex refers to a person‟s biological status) Gender is measured by the perception of respondents with the following criteria:

1 Male

2 Female

Education: refers the knowledge, skill, and understanding that someone gets from attending a

school, vocational school, college or university Education is measured by using length of year your academic and the perception of respondents with the following criteria:

1 Primary school

2 High school

3 Vocational/ college education

4 Graduate or higher

Marital status: A person's marital status indicates whether the person is married or single It

may also apply in other cases such as widowed, divorced or separated The marital status is measured by the perception of respondents with the following criteria:

1 Single

2 Married

Length of employment: the observing, encountering, or undergoing of things generally as

they occur in the course of time In this case, experiences refer the year that employees work

in TISCO The length of employment is measured by the perception of respondents with the following criteria:

1 Less than 6 years

2 From 6 to 10 years

3 From 11 to 16 years

3 More than 16 years

1.6 Significance of the study

Finding of this study will provide administrator or managers an inside knowledge on job satisfaction, work performance and work motivation The author and other research can realize specific level of job of job satisfaction of employee working at TISCO Therefore, this

finding is used as a recommendation to CEO of TISCO to improve the level of satisfaction and motivation of work Organizations will be oriented towards treating workers fairly and with respect

Result of this study also will provide the basic knowledge about the factor influencing job satisfaction In the other hand, this study will provide management with a greater understanding of the importance of factors which influence job satisfaction It is very useful for us to examine how many factor affect to job satisfaction and which factor influence job satisfaction most The result of this study also support for the administrator and manager

to select correct factors and get a priority setting for conducting an action plan Hence, it improves job satisfaction directy and increases the work motivation, work performance and productivity Include other factor which will be Financial rewarded by the study

1.7 Scope and limitation of the study

Scope of study: This study, which armed to determined the level of satisfaction of

imployees of TISCO, and was conducted in 2015 using a a cross-sectional correlation design There were 367 paritcipants in this study who were choosen randomly form a population of

4489

Limitation of study: Because of this study is a cross sectional design, hence there

are some dis-advantages such as: Study is carried out at one time point It is just conducted to estimate the prevalence of the outcome of interest for a given population Cross sectional design cannot be used to analyzed behavior over a period to time It does not help determine

deeply cause

CHAPTER II

REVIEW OF RELATED LITERATURE AND STUDIES

2.1 Theoretical foundation

2.1.1 Defining job satisfaction

Job satisfaction is the common term using work management and motivation Job satisfaction is also one of the most researched variables in the area of workplace psychology (Barriball, Zhang & While, 2012) There are several studies conducted to explore in worldwide and Vietnam, to provide basis knowledge and understanding about job satisfaction

of employee In this study, researcher would like to clarify the definition of job satisfaction, classification of job satisfaction and the importance of job satisfaction

Free Glisson man (1978) had observed more than twenty years ago that reported job satisfaction is a good predictor for job mobility over and above the effect of lagged wages The more satisfied with their job people proclaim themselves, the less likely they are to quit

Akerlof, Rose and Yellen (1988); Clark, Georgellis and Sanfey (1998) confirmed that satisfaction is implicitly assumed to reflect individuals‟ expectations about future wages and working conditions

According to Lévy-Garboua and Montmarquette (2004) job satisfaction reflects a worker‟s experienced or post-decisional preference for her job relative to outside opportunities The worker who reports being satisfied with her job ranks the mental opportunity of choosing the same job from the beginning until the present date and possibly in the future

Job satisfaction is simply defined as the affective orientation that an employee has towards his or her work (Price, 2001).Job satisfaction is an affective reaction to a job that results from the comparison of perceived outcomes with those that are desired (Kam, 1998)

Job satisfaction describes the feelings, attitudes or preferences of individuals regarding work (Chen, 2008) or Job satisfaction is the degree to which employees enjoy their jobs (McCloskey & McCain, 1987)

Vroom (1964), need/value fulfillment theory, states that job satisfaction is negatively related to the discrepancy between individual needs and the extent to which the job supplies these needs

Porter and Lawler (1968) collect the influences on job satisfaction in two groups of internal and external satisfactory factors According to them, internal satisfactory factors are related the work itself (such as feeling of independence, feeling of achievement, feeling of

victory, self-esteem, feeling of control and other similar feeling obtained from work), whereas external satisfactory factors are not directy related to work itself (such as good relationships with Co-worker, high salary, good welfare and utilities)

Schermerhorn (1993) defines job satisfaction as an affective or emotional response towards various aspects of an employee‟s work including status, supervision, co-worker relationships, job content, remuneration and extrinsic rewards, promotion and physical conditions of the work environment, as well as organizational structure Four categories were believed to affect job satisfaction, including: challenging jobs, an equitable reward system, including salary and promotional opportunities, good collegial relationships, and a supportive working environment (Schermerhorn et al., 2011)

Conclusion: Job satisfaction is an employee’s total happy or pleased feeling about their job and the attitudes they have towards various aspects or facets of their job (such as The nature of work , salary, opportunities for promotion, co-worker, supervisors, finance reward, social service, social status, )

2.1.2 Importance of job satisfaction of employees and its relationship with job performance

The importance of job satisfaction specially emerges to surface if had in mind the many negative consequences of job dissatisfaction such a lack of loyalty, increased absenteeism, increase number of accidents etc Spector (1997) lists three important features of job satisfaction Firstly, organizations should be guided by human values Such organizations will be oriented towards treating workers fairly and with respect In such cases the assessment

of job satisfaction may serve as a good indicator of employee effectiveness High levels of job satisfaction may be sign of a good emotional and mental state of employees Second, the behavior of workers depending on their level of job satisfaction will affect the functioning and activities of the organization's business From this it can be concluded that job satisfaction will result in positive behavior and vice versa, dissatisfaction from the work will result in negative behavior of employees Third, job satisfaction may serve as indicators of organizational activities Through job satisfaction evaluation different levels of satisfaction in different organizational units can be defined, but in turn can serve as a good indication regarding in which organizational unit changes that would boost performance should be made Job satisfaction is important for the company success because:

People who are satisfied with their job seem likely to do better at work

People who are happy with their job will work more productively and efficiently People who are satisfied with their job can help boost the morale of his or her co-

workers and will encourage them to be more optimistic about their job

Beside that, Job satisfaction plays an important role for an employee in doing their job performance The idea that job satisfaction leads to better performance is supported by Vroom's The study relating to the relationship between job satisfaction and job performance has now become a research tradition in industrial-organizational psychology Vroom's (1964)

A study of Danica Bakotic show the existence of a clear link between employees‟ job satisfaction and organisational performance in both directs, but with pretty weak intensity Detailed analysis showed that the connection between job satisfaction and organisational performance is stronger than the connection between organisational performance and job satisfaction It could be stated that job satisfaction determines organisational performance, rather than organisational performance determining job satisfaction (Bakotic, 2016) But there are conflicting viewpoints on the relationship between job satisfaction and job performance The proposed study is to synthesize the results of different studies relating to the relationship between job satisfaction and job performance (Davar, 2012)

2.1.3 Measuring job satisfaction

Usually job satisfaction is measured by using general scientific research methods such as the questionnaire Some of the most commonly used techniques for measuring job satisfaction include: Minnesota Satisfaction Questionnaire (MSQ) and Job Description Index (JDI) (Aziri B, 2011)

The Job Descriptive Index (JDI) is a 72-item instrument designed to measure five dimensions of job satisfaction: satisfaction with supervision, coworkers, pay, promotional opportunities, and the work itself The Job Descriptive Index (JDI) was originally developed

by Smith, Kendall, and Hulin (1969) to measure job satisfaction defined as “the feelings a worker has about his job” This instrument has been revised in 1985, 1997, and most recently

in 2009

The Minnesota Satisfaction Questionnaire (MSQ) is a paper-pencil type of a questionnaire and can be implemented both individually and in group, but it does not take sex differences into consideration This questionnaire has one short form and two long forms that date from 1967 and 1977 In fact 20 work features in five levels are measured with this questionnaire Responding to this questionnaire usually takes between 15-20 minutes (Aziri

B, 2011) The 1967 version of the Minessota Satisfaction Questionnaire had five levels of satisfaction (included not satisfied, somewhat satisfied, satisfied, very satisfied and extremely satisfied) The 1977 version of the Minessota Satisfaction Questionnaire was revised with other five levels (included very satisfied, satisfied, neither satisfied nor dissatisfied, dissatisfied and very dissatisfied)

One of the oldest approaches to measure job satisfaction is the degree of facial expressions presented by Kunin (1955), The matching female faces were created by Dunham and Herman (1975), Figure below Perhaps this is the simplest form of job satisfaction measurement In fact according to this approach several facial expressions are presented to the employee and he should put a check underneath the expression that describes his feeling and opinion the best

Figure 2 1 Measure job satisfaction by faces

Put a check under the face that expresses how you feel about your job in general, including the work, the pay, the supervision, the opportunities for promotion and the people you work with

2.2 Empirical related studies

Job satisfaction and dissatisfaction not only depends on the nature of the job, it also depend on the expectation what‟s the job supply to an employee (AL-Hussami, 2008) Lower convenience costs, higher organizational and social and intrinsic reward will increase job satisfaction (Mulinge & Mullier, 1998; Willem et al., 2007) Job satisfaction is complex phenomenon with multi facets (Jia Lin Xie & Gary John, 2000); it is influenced by the factors like salary, working environment, autonomy, communication, and organizational commitment (Lane, Esser, Holte and Anne, 2010; Vidal, Valle & Aragón, 2007), natural of work, opportunity for advancement, relationship with supervisor, relationship with co-worker and financial reward (Jia Lin Xie & Gary Johns, 2000; Kakyom Kim & Giri Jogaratnam, 2010)

Natural of work:The nature of the employees‟ work is best defined as the type of

work that they do This can refer to the basic daily tasks that he carries out as part of their job The nature of this work may be summed up in the employee's title For example, a human resources manager is someone who manages a human resources department and performs all

of the tasks required of such a position (Foreman Facts, 1946) As cited by Le Quan Thach (2010) the result implied that there was a relationship between natural of work and job satisfaction (p < 0.01) The natural of work was significant associated with job satisfaction (β

= 0 545) The more good work employees reported getting more job satisfaction than employees with bad natural of work According to Nguyen Van Thuy (2013), there is a

positive correlation between the attractiveness of the work and job satisfaction (β = 0 545, p

< 0.001)

Salary: The salary implies monetary-related Financial rewards that include

competitive pay; a fair pay system that employees receive monthly from their work/ service for the organization (Duong Cong Vy, 2013; Tran Xuan Thanh, 2015) Result from one of studies of Le Quan Thach (2010) showed that there were several factors influenced to job satisfaction but salary is the most important factors of them (β = 0.336) This finding is similar with study of Bu Thi Hien (2010), the result showed that there was a positive relationship between salary and job satisfaction (β = 0.260) and this result also indicated that the employee who had a higher salary was had a higher job satisfaction According to Spector (1985) with a study of job satisfaction and its application on service organizations and non-governmental organizations revealed that there was a significant association between salary and job satisfaction (Foreman Facts, 1946)

Opportunity for advancement: According to Charles G Andrews (2003),

opportunity for advancement includes having a career path within the organization and presence of a career-planning program that enhances the abilities of the individual employee These opportunities represent the degree to which organizational culture provides employees with growth paths that include advancement opportunities, career counseling, and training of new skills In studying social workers it was found that perceived opportunities for promotion and job challenge are significant influences on job satisfaction In a study of job satisfaction conducted by Spector (1997) showed that there was a positive relationship between opportunity and job satisfaction For Management, 0.337 unit increases in training may cause 0.20 units of Job Satisfaction to increase (Bashir et al 2014) Daljeet Singh Wadhwa et al (2011) indicated that there are three factors influencing job satisfaction including Behavioral, organizational and environmental factors, of which organizational factor consists of fair rewarding and opportunity for advancement (p = 0.01) A study of newly hired entry-level professionals showed that the amount of training provided is significantly related to job satisfaction, as well as to job performance, commitment, and ability to cope (Saks, 1996; ; Foreman Facts, 1946)

Supervisor: Supervisor is a person whose job is to supervise employees or their

works According to Duong Cong Vi (2013) implied a supervisor as a member of the most junior level of management in the organization Another view of Nel et al (2004) considered supervisors to be those employees that “control the activities of lower-level employees.” Bidyut Bijoya Neog and Mukulesh Barua (2014) indicated that the supervisor and other factors have significant influence on job satisfaction level of employees at the 01 level With

the similar opinion, Deborah B Smith and Joel Shields (2013) also revealed that experiences with supervisor was significant associated with job satisfaction (p < 001) Heery and Noon (2001) revealed that a supervisor is defined as a front-line manager who is responsible for the supervision of employees There was a relationship between supervisor and job satisfaction at 0.05 significant level (Rashid Saeed et al, 2013; ; Foreman Facts, 1946)

Co-worker: Co-worker is a person working with another employee, especially as a

partner or helper A number of authors maintain that having friendly and supportive worker contribute to increased job satisfaction (Johns, 1996; Kreitner & Kinicki, 2001; Luthans, 1989) Findings of a survey conducted by Madison (2000) on more than 21000 women occupying the most demanding jobs indicated that those participants, who lacked support from co-workers, were more likely to suffer from job dissatisfaction Another survey conducted amongst 1250 Food Brand employees found that positive relationships with co-workers enhance job satisfaction (Berta, 2005) Empirical evidence indicates that relationships with Co-worker have consistently yielded significant effects on job satisfaction

Co-of federal government workers in the United States (Ting, 1997) A study conducted by Viswesvaran, Deshpande and Joseph (1998) further corroborated previous findings that there

is a positive correlation between job satisfaction and co-workers (Nezaam Luddy, 2005) There was a relationship with coworkers and job satisfaction at 0.05 significant level (Rashid Saeed et al, 2013; Foreman Facts, 1946)

Working Conditions: Working conditions refers to the working environment and

all existing circumstances affecting employee in the workplace, including job hours, physical aspects, legal rights and responsibilities It includes the physical work area, safety conditions, oppressive individuals, and demands generated by management on the output of employees (such as required overtime and working to the point at which mental and physical problems develop) Working conditions include convenient restrooms, rest areas, liquids and food at workstation, and ability to take breaks when employee feels the need They also include working in a place where people know each others‟ names and where the individual is treated

as an adult For work environment factors,working conditions contributed to employee‟s job satisfaction (Atefi, Abdullah, Wong and Mazlom, 2014) Beside that, Nasir Mehmood et al (2012) also indicated that working codition significance influencing job satisfaction of employee Daljeet Singh et al (2011) revealed that working codition factors have a significant impact on employee job satisfaction since the significance level is less than 0.05

Financial reward: Emotional support has been found to be an important factor

contributing to work satisfaction for an individual (Adams, King, & King, 1996) A study of Dunseath, Beehr, & King (1995) found that when role conflict is high, social support from co-

workers and supervisors positively influences job satisfaction and is associated with lower levels of depression Tangible rewards can sometimes lower performance levels, and creating

a supportive work environment may actually decrease the need for “incentive" programs (Aryee, Wyatt, & Stone, 1996) Allowance and support include Financial rewards such as retirement, medical insurance, life insurance, dental insurance, and paid vacation time This includes medical, insurance, and retirement forms of compensation In addition, in this case of our study, we also refer to other monetary support from the company for employee like TISCO in this study According to Le Quan Thach (2010) the result implied that there was a relationship between financial reward and job satisfaction (p < 0.01) This finding is similar with study of Bui Thi Hien (2010), the result showed that there was a positive relationship between finacial reward and job satisfaction (β = 0.204)

Overall satisfaction focuses on the general internal state of satisfaction or dissatisfaction within the individual Positive experiences in terms of friendly Co-worker, good remuneration, compassionate supervisors and attractive jobs create a positive internal state Negative experiences emanating from low pay, less than stimulating jobs and criticism create a negative internal state Therefore, the feeling of overall satisfaction or dissatisfaction

is a holistic feeling that is dependent on the intensity and frequency of positive and negative experiences (Cherrington, 1994)

Job satisfaction statistics

Maryam, et al (2014) has empowerment on job satisfaction in context to banking sector of Pakistan This study is unique in a way that it has studied the impact of psychological empowerment on job satisfaction at three managerial levels i.e Top level, middle level and lower level Primary data has been collected from employees working in different banks in four major cities of Pakistan The study has used survey approach for data collection Scale from previous studies has been used to measure psychological empowerment and job satisfaction which consists of 12 items and 16 items respectively The study documents that Psychological empowerment positively affects job satisfaction for senior, middle and lower level managers in banking sector of Pakistan

George, et al (2008) has job satisfaction is the collection of feeling and beliefs that people have about their current job People‟s levels of degrees of job satisfaction can range from extreme satisfaction to extreme dissatisfaction In addition to having attitudes about their jobs is as a whole People also can have attitudes about various aspects of their jobs such as the kind of work they do, their co-workers, supervisors or subordinates and their pay

Kaliski (2007) has job satisfaction is a worker‟s sense of achievement and success

on the job It is generally perceived to be directy linked to productivity as well as to personal

well-being Job satisfaction implies doing a job one enjoys, doing it well and being rewarded for one‟s efforts Job satisfaction further implies enthusiasm and happiness with one‟s work Job satisfaction is the key ingredient that leads to recognition, income, promotion, and the achievement of other goals that lead to a feeling of fulfillment

Mullins (2005) has job satisfaction is a complex and multifaceted concept which can mean different things to different people Job satisfaction is usually linked with motivation, but the nature of this relationship is not clear Satisfaction is not the same as motivation Job satisfaction is more of an attitude, an internal state It could, for example, be associated with a personal feeling of achievement, either quantitative or qualitative

Sweney and McFarlin (2005) has even though the effects are modest the fact that job satisfaction contributes to decreasing the level of employee absenteeism remains Therefore, satisfaction is worth paying attention to, especially since it is potentially under your control – unlike some of the other causes of absenteeism (e.g illness, accidents) But awe said circumstances can alter this equation As a manager you could be implicitly encouraging absenteeism by informing company policies If people are paid for sick days, and if they must

be “used or lost” this is pretty strong encouragement for employees to be absent In other words, you‟ve helped create a culture of absenteeism that can overcome the “satisfaction” effect

Lee et al (2003) has the South Korean study showed that the most frequently mentioned reasons for nurses‟ intending to leave their jobs were work overload, rotating shifts and conflict in interpersonal relationships A total of 24%, 15% and 35% of variance regarding depersonalization, emotional exhaustion and personal accomplishment, respectively, was explained by the individual characteristics, job stress and personal resources It was particularly noteworthy that nurses who experienced higher job stress showed lower cognitive empathy and empowerment, and worked on night shifts at tertiary hospitals were more likely to experience burnout

Price (2002) has the study explored key areas of job satisfaction using the Mueller and McCloskey‟s (1990a, b) Satisfaction Scale It is a 5-point Likert scale (5 = very satisfied,

1 = very dissatisfied) comprising 31 items on eight dimensions: extrinsic rewards, scheduling, balance of family and work, co-workers, interaction opportunities, professional opportunities, praise and recognition, control and responsibility The global scale‟s correlation coefficient was reported as 0.89 and the validity ranged from 0.53 to 0.75, with the scale correlating positively with several established satisfaction scales The results demonstrated that over half

of the respondents (58%) were generally satisfied with their job They identified that highest satisfaction was related to co-workers and extrinsic rewards (mean=3.8 and 3.5, respectively)

and that most dissatisfaction was with the amount of control and responsibility they had and with professional opportunities (mean=2.7 and 2.6, respectively) The individual items on this scale with which nurses were most satisfied were identified as annual leave, nursing peers and hours worked (79%, 78% and 76% of respondents scored 4 or 5, respectively), and for dissatisfaction compensation for working weekends and control over working conditions and childcare facilities (55%, 55% and 46% of respondents scored 1 or 2, respectively) Using the same scale, Wang (2002) found that Chinese nurses were more dissatisfied than satisfied (mean=2.51) and were mostly dissatisfied with pay (mean=1.85) and job promotion (mean=1.97)

Ostroff (1992) has studying a sample of 364 schools, investigated the relationship between employees‟ attitudes and organizational performance Ostroff found that aggregated teacher attitudes such as job satisfaction and organizational commitment were concurrently related to school performance, as measured by several performance outcomes such as student academic achievement and teacher turnover rates Across 12 organizational performance indexes, the magnitudes of the correlations between teacher satisfaction and performance ranged from 11 to 54, with a mean of 28 When the unique characteristics of the schools were statistically controlled for, teacher satisfaction and other job-related attitudes continued

to predict many of the organizational performance outcomes Results were strongest for teacher satisfaction; thus, organizations with more satisfied employees tended to be more effective than organizations with dissatisfied employees This study indicates that satisfaction

is an important social process factor that fosters organizational effectiveness The major limitation of this study pertains to the nature of the study sample; all organizations were secondary schools The extent to which similar relationships would hold for organizations in other types of industries (manufacturing, service, etc) and occupations cannot be determined

In Vietnam, some researches on HRM and job satisfaction have been conducted in the southern part of Vietnam Authors combined both quantitative and qualitative methods to investigate factors influencing job satisfaction as well as measuring the level of job satisfaction Based on the research findings, some solutions for improvement of job satisfaction have been recommended

Tran Kim Dung (2005) investigated 448 full time employees in Ho Chi Minh City The author used the job description index (JDI) to measure the level of job satisfaction within the Vietnamese context Beside factors in the JDI such as job characteristic, wage, promotion, supervisor and coworker, the author added 2 more factors such as company Financial reward and working condition for the purpose of better evaluation within the specific country context Research findings showed that job characteristics, training and promotion satisfaction have

strongly influenced the level of job satisfaction It was interesting to find out satisfaction on wage has negative impact with employee‟s effort in the work The reason behind this is that companies lack skills and knowledge on wage/ salary system within the market economy, did not design wage system reasonably Payment mainly based on feelings and the companies did not have clear payment policies This leads to the fact that people with more endeavors and effort to contribute to the company felt more dissatisfaction with the current wage policies Moreover, she did not find the impact of education level However, she found a significant influence of genders, age, on job satisfaction and loyalty of the employees to the company

Another research on had been conducted by Chau Van Toan (2009) on “factors influencing job satisfaction of the office employee in Ho Chi Minh City” Using qualitative research method and regression model, he found that 6 factors influenced the job satisfaction

of the office employee Of which, satisfaction on the income (wage) had a strongest influence

on the job satisfaction, following by the satisfaction of job characteristics and supervisor, satisfaction with training and promotion opportunities, and company Financial rewards

According to Nguyen Thi Kim Anh (2011) did a study on the “measurement of employees‟ job satisfaction at the Fresenius Kabi Bidiphar” She carried our survey of 200 employees working company in Binh Dinh province Eight factors including job characteristics, wage, Co-worker, and supervisors, opportunity for training and promotion, working condition, performance evaluation and company Financial rewards had been examined The research findings found 5 factors influencing job satisfaction such as performance evaluation, wage, Co-worker, supervisors and job characteristics Of which performance evaluation has a strongest influence on job satisfaction and Co-worker had a weakness influence

Conclusion

Job satisfaction represents one of the most complex areas facing today‟s managers when it comes to managing their employees Although thousands of papers and research have been conducted on job satisfaction all over the world, in the Vietnam this is one of the least studied research fields Many studies have demonstrated an unusually large impact on the job satisfaction on the motivation of workers, while the level of motivation has an impact on productivity, and hence also on performance of business organizations There is a considerable impact of the employee‟s perceptions for the nature of his work and the level of overall job satisfaction However, there is no study so far on job satisfaction and work motivation which has been used to the integrative theory of need, theory of motivation and theory of expectation Added to that, no study was conducted in job satisfaction of employees

in Thai Nguyen Thus, this study at 12 areas in the TISCO

CHAPTER III

RESEARCH METHODOLOGY

This chapter presents the research methodology including research design, study setting, population and sample, sampling technique, instruments, collecting data, procedures and data analysis

3.1 Research Design

A cross – sectional correlation design was used in the present study to examine the relationship between job satisfaction and related factors among employee working at 12 areas

in TISCO Thai Nguyen It included descriptive and correlational method

Descriptive method was used to describe all data of this study It is a purpose process of gathering, analyzing, classifying, and tabulating data about demography data, perception on job satisfaction data and its factors

Correlation design was conducted to determine evaluation of job satisfaction of employee working in TISCO It used for testing of hypotheses and also described the nature

of the situation As it existed at the time of the study and to explore the causes of such particular phenomena

Finally, the researcher proposes recommendations for committee to improve the job satisfaction of employees for keeping of their job productivity and efficiency

3.2 Population, Sample Size and Sampling Technique

The target population: the subject of the study are employees working in TISCO

Thai Nguyen at least for one year

The major factory of TISCO is located in Thai Nguyen In there, the number of employees are big However, some of branch outside Thai Nguyen just introduce and sell product Number of employees of branches are small Added to that, the time and economic for the research are limited Therefore, this study was conducted in TISCO Thai Nguyen The employee population is 4489

The sample size was determined by using a formula to make out the sample size of the population (Slovin, 1960) The formula is given as follows:

n

Where: n = the sample size

N = the population size

e = sampling error (we might want a confidence level of 95 percent, which

will give you a margin error of 0.05 Hence, e will be equated to 0.05)

Therefore, n = 367.27 After rounding the result, the whole number was 367

Sampling Technique

Stratified sampling technique was used to select the sample in this study Each step

of sampling was described as follow:

Step 1: TISCO (Thai Nguyen) consisted of 12 departments At the those departments, the researcher used simple randomsampling technique to select the objects

Step 2: At the each area the sample size for the employees was calculated by using the formula of Cochran (1977) as follows:

Of which:

nh = sample in each unit number

Nh = employee population in each unit number

N = total employee population in Thai Nguyen

n = sample size (367)

(result as shown on table 3.1)

Table 3 1 Sample size of participants from each department in TISCO Thai Nguyen

3.3 Research Instruments

Questionnaires includes 2 parts;

 Part I is the respondent‟s profile

 Part II is the respondent's evaluation on job satisfaction of employees:

Table 3 2 The 5- Likert scale

3.5 Data Gathering Procedures

Both quantitative and qualitative primary and secondary data were used for analyzing use both secondary and primary data

Secondary data

The researcher synthesized the theories and models related to job satisfaction, and also analyze the secondary data of TISCO (Reports, publications and papers on human resource management, job satisfaction and organizational commitment from academic

journals, publications, website, books and public reports…) Finally, discussion the relevant factors that influencing satisfaction of employees working at TISCO was made

Primary data

A questionnaires were designed by the researcher to collect primary data The data were collected by using the questionnaire to examine the level of job satisfaction and the relevant factors (primary data) This part included job satisfaction questionnaire, nature of workquestionnaire, salary questionnaire, advancement questionnaire, supervisor questionnaire, co-worker questionnaire, finalcial reward questionnaire, and working conditionquestionnaire

The study was conducted in 12 departments in TISCO Thai Nguyen

Employees in TISCO are catergorized either as direct or indirect-employee employees are direct work involed in production of goods; Indirect-employees are professionals, engineers, civil affairs, technicians, clerical employee, service employee, storekeepers trading, market surveillance, security guards Therefore, reseacher will conduct data collection in 12 departments with the kind of employees Using the formula Cochran (1977) with the distribution of employees are as follow:

Direct-Table 3 3 Sample of member in TISCO Thai Nguyen by kind employees

1 Cast Iron Making