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Research about overall job satisfaction at Tuong An Vegetable Oil Corporation TAC Research about overall job satisfaction at Tuong An Vegetable Oil Corporation TAC Research about overall job satisfaction at Tuong An Vegetable Oil Corporation TAC luận văn tốt nghiệp,luận văn thạc sĩ, luận văn cao học, luận văn đại học, luận án tiến sĩ, đồ án tốt nghiệp luận văn tốt nghiệp,luận văn thạc sĩ, luận văn cao học, luận văn đại học, luận án tiến sĩ, đồ án tốt nghiệp

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MASTER OF BUSINESS ADMINISTRATION

INTERNATIONAL PROGRAM



RESEARCH PROJECT (BMBR5103)

RESEARCH ABOUT OVERALL JOB SATISFACTION

at Tuong An Vegetable Oil Corporation (TAC)

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ADVISOR’S SIGNATURE

(July 2016)

NGUYEN THE KHAI (DBA)

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First of all, I am very grateful to my advisor DBA Khai Nguyen for his supervision, and constant guidance in this report

Thank you for all suggestions have been received from many of my lecturer and classmate during research progress

In addition, we also would like to say thanks to all my class mates, team members, colleagues who provided information, sharing and comments for our group presentation during this fantastic course

Once again, I thank very much to all

Dao Mai Thao Student

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Organization structure and Corporate culture 7

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Hypothesis proposed (H1) 37 Hypothesis proposed (H2) 38 Hypothesis proposed (H3) 38 Hypothesis proposed (H4) 39

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FIGURE

Figure 1 Figure 2 Figure 3 Figure 4 Figure 5

TABLE

Table 1 Table 2 Table 3 Table 4 Table 5 Table 6 Table 7 Table 8 Table 9 Table 10 Table 11 Table 12 Table 13 Table 14 Table 15 Table 16 Table 17 Table 18 Table 19 Table 20 Table 21 Table 22

Work Control Satisfaction With Work Schedule Flexibility Scale 29

Cronbach’s Alpha of Satisfaction with Work Schedule 34

Cronbach’s Alpha of Satisfaction with My Supervisor 35

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Data was collected through the use of standardized questionnaires Questionnaires were given personally to 350 managerial and non-managerial employees in TuongAn company; there were 273 questionnaires returning, in which completely responses were used for the statistical analysis

The result of these surveys shall be statistically analyzed by software SPSS (copyright

of IBM) Hypotheses used this research includes five constructs: one dependent

construct (Overall Job Satisfaction) and four independent constructs (Work Control, Satisfaction with Work Schedule Flexibility, Developmental Experiences, Satisfaction with My Supervisor)

I hope results of this research will help managers of TuongAn have some reference angle

in human resource management to improve and increase our quality resource based on job satisfaction of employees as well as you should have perception clearly that job satisfaction of employees will impact to working effective

Key words in this research: Overall Job Satisfaction, Work Control, Satisfaction with Work Schedule Flexibility, Developmental Experiences, Satisfaction with My Supervisor

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PART ONE: INTRODUCTION

1 About Tuong An Company

1.1 History

TuongAn is a Vietnamese publicly quoted company engaged in the production and marketing of processed vegetable oils and fats The company was incorporated in November 1977, and has its registered headquarters primarily located in Ho Chi Minh City, Vietnam The company is traded on the Vietnam Stock exchange under the ticker symbol “TAC”

The company offers a wide range of vegetable oils and fats, which include cooking oil, soya bean oil, groundnut oil, Van Tho oil, sesame oil, Vio oil, season oil, shortening and margarine These products are offered in 64 cities and provinces nationwide through its distribution network with more 200 distributors and agents Its main customers include supermarkets, restaurants, and nursery schools The company has oil factories located

in Ho Chi Minh City, Vinh City, and in Phu My 1 Industrial Park, Vung Tau Province, which is the biggest oil factory in Vietnam with a production capacity of 600 tons per day It distributes its products to various countries in Asia, the Middle East, and Easten Europe The company is one of the first Vietnamese firms that has been granted a quality certification of ISO 9001 and ISO 9001: 2000 for its quality management system

A typical number of titles the company achieved in 2014:

- The Industrial and Commercial Merit excellent emulation flag

- Award Vietnam high quality products by consumers vote

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- Award "Vietnam goods preferred by consumers"

- Vio extra oil was awarded the top 100 best-services for families and children

- Season Oil was awarded gold products for public health

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 Trading, exporting and importing of machinery, equipments, materials for vegetable oil processing and production

 Leasing premises and workshops

 Manufacturing and trading spices used for food processing industry and sauces (production is not carried out at head office)

 Manufacturing and trading instant food products (noodles, rice vermicelli, noodle soup, dry pancake and instant soup)

 Agent in trading and on consignment

 Entertainment center services (it does not operate at head office)

 Cultural activities (organizing meetings and cultural exchange relations)

 Accommodation business (constructing buildings for trading or for leasing)

1.3 Development strategy and investment

During orientation, TAC set the strategic objectives as follows:

 Development of the North (Vietnam): at present, in the northern market, TAC are experiencing strong competition from rivals on price, and brand Market development company North is seen as an important direction to improve investment efficiency, maximum power extraction machinery has a new investment Besides expanding export markets, creating a strong foothold for enterprises solve employment for laborers, accelerated depreciation for reinvestment, increase production, revenue and profit

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 Make the most of the creation of new products with better quality, packaging design more attractive Apply ISO to ensure the quality and production processes for all company products

 Expanding the network of distribution and consumption, with the tactics: to attract distributors with increased discounting, enhance service and increase business sales staff

1.4 Vision, Missions and Core values

Vision Become a strong economic group of multinational, long-term sustainable

maintenance and development of brand value or brand reputation, competitive domestic and international

TAC would like to become one of the leading companies specialized in supplying edible oils refining the best in domestic and foreign markets

Missions Tuong An Company is committed to bring to society the products with the

best quality that reflects our respect, our responsibility for the health of the consumer life and society

For society: In the spirit of enterprise development accompanied by social

development, TAC always contribute positively to the community-oriented activities, demonstrating a sense of responsibility to the country and see it as fine traditional cultureof the Group

For employees: TAC is committed to recognize the importance of each

member, create an environment to encourage the development and success

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of each individual TAC is a convergence of excellence by members has built

a reputation for almost a decade

For the market: Develop, maintain position TAC brand has always been a

pioneer, leader of Vietnam Provide high-quality products always satisfy and meet the needs, wants and tastes of diverse domestic and foreign customers Always take customer satisfaction, consumer-focused activities Close cooperation with partners in a spirit of trust, respect and equality for success, victory of both parties

Protection and development of brand reputation, built and fortified the cultural characteristics of the business, the brand identity TAC stimulate creative work in order to maintain meaningful difference, ensuring highly competitive, always adapt to the business environment, sustainable development, long-term

For shareholders and partners: to enhance the collaborative spirit for

mutual development; to strive to become “The Number One Companion” of

partners and shareholders; to generate attractive and sustainable investment values for shareholders and partners

Core values

Top quality; perfect service and professional; reliable partner; ideal work environment; social values; sustainable development

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1.5 Contact

Legal name:

Headquarters: 48/5 Phan Huy Ich Street, 15th Ward Tan Binh District HCM City

Phone: (84-8) 38153950 Fax: (84-8) 38153649 Website: www.tuongan.com.vn

2 Organization structure and corporate culture

Working Policy

Employees of the TAC work 5 to 6 days per week and 8 hours per day The working time can be adjusted based on deliverables, but it should be remained within the standard working hours in accordance with the TAC’s policy Overtime may be required from time to time to meet the deadline

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Employees are entitled to 1 to 2 days off per week Employees who have worked for 12 months are entitled to 12, 14 or 16 days of annual leave per year depending on working requirements If an employee has worked less than 12 months, the annual leave entitlement will be pro-rated according to the number of working months The TAC will increase the annual leave entitlement based on the number of years of service, e.g 1 additional day of annual leave for every 5 additional years of service

Employees are entitled to all the public holidays per year as stipulated by the Labour Code and other related regulations

Training

Professional training for knowledge enrichment and expertise enhancement for employees is specifically underlined so as to best satisfy requirements of the production operation and meet the orientation of business development

Beside title-specific standard training courses of the production, employees can participate in internal training sessions at the premises They are also supported to attend short-term or long-term training courses at external schools/academies Furthermore, TAC actively develops its personnel plan and provides staff with additional training for knowledge enhancement aimed at successful fulfillment of current jobs or career development in the future In 2014, TAC held 22 training courses for 1040 attendants

Bonus policy

Commendation and reward for successful completion of projects/campaigns: for staff/departments proactively executing and successfully completing their tasks which contribute to the success of their projects/campaigns

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Commendation and reward for extraordinary achievements: for staff who deliver excellent performance, make contributions to the company in terms of economic benefit, business efficiency, prestige and image of the company; staff/departments proactively participating in sport and spiritual activities, culture building of the company

Commendation and reward for initiatives: for staff whose initiatives are beneficial to the company, and whose proposals of innovations contribute to the improvement of the company’s business performance, prestige and image

Periodic commendation and reward: Staff of the Month; Department of the Quarter (for Customer Services, Housekeeping, Technical, and Security Departments); Year-end Award for Excellent Performance; Award for Excellent Performance on the occasion of the company’s annual Anniversary

Commendation and reward for Exemplars: for staff that prevent potential disasters or well handle emergencies; bravely save people in emergencies; return lost property to their owners

Commendation forms: Certificate of merit; rewards (in cash or other forms such as travelling), promotion, early salary review, etc

Other

TAC employees are entitled to full benefits including social insurance, health insurance, unemployment insurance, public holiday leaves, and trade union membership, etc In accordance with the current regulations They also have periodic health checks, corporate holidays, sickness allowances, etc on annual basis

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3 Research problem statement

Currently, in the context of the real estate business at Vietnam is very tough and working environment of Vietnamese real estate has too many changes but not yet have any researches finding about job satisfaction of employees at these companies

Managers at TAC realized Job Satisfaction of employees is important factor for

Vingroup develop sustainably their human resource to help organization to operate more efficient, produce quality of products and services, build brand awareness, customer trust and loyalty…

4 Research objectives

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

of employees working at TAC

My research will focus 3 main factors:

 Firstly: search related information and try to define what meaning Job Satisfaction is of employees at TAC

 Secondly: design research model and test related factors to check influence

between factors to access strong / weak level of each factor in influence progress

 Thirdly: discussing and proposing recommendation to improve the effectiveness and forecast the human resources management at TAC in the future

5 Research scope

The scope of research is for the entire employees at TAC, includes: General/Vice General Director, managers, and employees working at TAC; it does not include: Chairman, Board of Directors, Shareholder, Supervisory Board

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The survey scope is within the territory of Vietnam, which includes 350 employees of TAC

Contents of this research are only including factors influencing to Job Satisfaction at

TAC; it does not have intention of re-structuring, changing and replacing the employees This survey was conducted from 25 June to 15 July 2016

6 Significance of research

The results of the research can help managers in TAC to understand employees’ feeling towards their work and discovery important factors need to satisfy employees Replying

on that, managers can make suggestions and recommendations for appropriate policies

to further motivate the labor force, retain talent, inspire staffs’ enthusiasm and provide high efficiency for company

Besides significant management, it also improves employee loyalty to the organization and further, employees will be loyal to the shareholders of the company, contributed to the financial strength of the companies increasingly stronger in the future

7 Limitation of research

The survey conducted in slightly short time Besides, the survey respondents are more qualified and different perceptions about Job Satisfaction as well as the contents of survey shall be more grammatical errors because of English - Vietnamese translation progress, it may cause confusion for the reader when they answer

This research will have some limitation because it only focuses related contents at TAC and also can be not generalized for this industry

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PART TWO: LITERATURE REVIEW

1 Definition of Constructs

1.1 Overall Job Satisfaction

Job satisfaction is generally defined as "an interesting state or positive feelings experienced by the evaluation of a job or job" (Locke, 1976: 1304) Overall, job satisfaction can be defined as a comprehensive achievement of internal, external and personal job satisfaction Job satisfaction reflects the degree to which a person's wants, needs or expectations are met at work (Cranny, Smith & Stone, 1992) More specifically, job satisfaction represents the level of satisfaction with one's job, coworkers, supervision, advertising opportunities, pay scales, tempo, and organizational settings (Cook, Hepworth, Wall, and Warr, 1981) They both satisfaction and dissatisfaction are viewed as a function of the relationship between what people want from a job and what

we perceive to receive from work Assessment of cognitive labor and emotional reactions to develop job skills over time (Hausknecht et al, 2011; Weiss & Cropanzano, 1996), may lead to an increase or decrease in job satisfaction Interestingly, although job satisfaction obviously change over time, it often acts as a static variable, like Lee, Gerhart, Weller, and Trevor (2008) noted Moreover, job satisfaction trajectory of an employee's term trend shows awareness of employee satisfaction over time and an important indicator of the ability to forecast their revenue Gestalt characteristics theory suggests that when people evaluate and summarize different experience, people do not just look at the average value or concentration of the frequent their experiences (Ariely

& Carmon, 2000) Instead, they use specialized "feature" the most important action to

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inform their future Including chemotherapy overall experience, but the importance is equal to or higher than the change in assessment or trajectory: "A Gestalt characteristics proven to affect multiple evaluation summary off a trend of expansion profile "(Reb & Cropanzano, 2007: 492)

1.2 Work Control

Dating back to Rotter (1966), locus of control describes the perception of individuals how far they are able to control crucial decisions in their life People scoring high on the internal dimension (“internals”) believe that they have control over critical situations in their life through their own efforts and abilities External locus of control describes a situation where individuals perceive to be heteronomous, i.e they have no or only little control over crucial events in their lives In jobs with performance-related pay, a feeling

of self-determination seems to be a precondition for employees to provide effort or to

be satisfied As internals often perceive a strong link between their actions and consequences and are convinced that certain goals are actively achievable by themselves, the process of performance monitoring becomes a useful management tool

It has been shown that internal locus of control is positively associated with task performance (rated by supervisors, objective performance measures, and self-rated performance), job feedback and job autonomy (Ng et al., 2006) Furthermore, internal locus of control is shown to have a positive effect on job satisfaction (Spector, 1986; Spector et al., 2002) as well as motivation and commitment (Ng et al., 2006)

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Overall job satisfaction correlated positively with a composite measure of job facets, autonomy, distributive justice, supervisory support, task significance, sensitivity to equity, employee perceptions of performance, and job involvement (Agho et al., 1993;Aryee et al., 1999; Judge et al., 1998; O'Neill & Mone, 1998)

In Abraham and Hansson (1996), job satisfaction correlated negatively with both related tension and control problems Job satisfaction correlated positively with job-related well-being, satisfaction with rate of pay, perceived job competence, and perceived job control (Norman et al., 1995; Wright & Cordery, 1999)

job-Rice, Gentile, and McFarlin (1991) found that facet importance moderated the relationship between facet amount and job satisfaction for each of 12 job facets: pay, hours worked, commuting time, promotion opportunity, interaction with co¬workers, customer/client contact, opportunity to learn new skills, decision making, physical effort required, mental effort required, supervisor contact, and a worker's control over his or her schedule Karasek envisages that under conditions of high work control, a demanding job may actually foster feelings of well-being and enhances employee performance For example, there is evidence of beneficial effects of work control on job satisfaction (Dwyer & Ganster, 1991; Greenberger, Strasser, Cummings & Dunham, 1989; McLaney & Hurrell, 1988; Tetrick & LaRocco, 1987) This is with McLaney & Hurrell's (1988) exception which utilized a multidimensional measure of work control that assessed levels of task control, decisional control, physical environment control and resource control McLaney & Hurtell failed to find support for Karasek's (1979)

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interactive model, although tbey did find that levels of task, physical environment and resource control exerted (positive) main effects on job satisfaction

Hypothesis 2: There is a positive relationship between Work Control and Overall Job Satisfaction

1.3 Satisfaction with Work Schedule Flexibility

Satisfaction with Work Schedule Flexibility can be express as working hours set by the company give their employee much flexibility in work and also personal activities which could result in creating satisfaction for the employee towards their job

The study of Possenriede & Plantenga (2008) stated that if there are flexible work arrangements in fact it will enhance the fit between paid work and some other activities and it will be reflected in job satisfaction of employees This study argued that, to identify job preparations and the factors that can influence job satisfaction is related to different labor market fields The study also mentioned arrangement for flexibility work schedules are linked with higher job satisfaction

Baltesetal (1999); Scandura & Lankau, (1997) described that flexible work arrangements provided to employees allow them to work according to their ease, which

in result will minimize the amount of stress

According to Hill et al (2008) if flexible work arrangements are provided to employees

it will have a positive impact on values from work in general Due to this work schedule

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flexibility employees shall have more control and independence in their working life and their work life and private life can be improved

1.4 Developmental Experiences

Developmental experience can be defined as those on-the-job experiences that provide the opportunity to learn skills and behaviors in situations where results really matter (McCauley et al., 1994) There are always many opportunities for development on the job Examples include supervisors’ additional challenging formal and informal assignments of duties and trying new activities so as to strengthen new skills On-the-job development and learning opportunities occur informally in daily operations such as coaching or receiving advice from supervisors, peers, and technical experts as well as experiences of sharing within the firm Experiences from challenging assignments, on the job training and coaching lead to personal growth and development, promotion opportunities (McCall et al., 1988)

Morrison’s career development model was built on three critical elements: challenge, support and recognition (Morrison and Hock, 1986) The challenge of new job assignments and demanding goals requires managers to learn and prepares them to perform effectively in higher-level jobs in the future Support and encouragement involve acceptance and developing employees’ self-worth and satisfaction in the organization Recognition involves acknowledging their role in the success of the organization and rewarding their achievement with promotions and pay rises Empirical studies have demonstrated that developmental job assignments and challenging

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experiences are critical to advancement (Cianni and Romberger, 1995; McCauley et al 1994)

1.5 Satisfaction with My Supervisor

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

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

2 Theories of Overall Job Satisfaction

2.1 Maslow’s Theory (1943)

In general when we talk about the satisfaction theory is often referred to Maslow’s needs hierarchy (1943) According to his theory, human needs are divided into five ascending levels: Physiological, Safety, Social, Esteem and Self-actualization After a certain demand has been satisfied, people will needs at the next higher level From this theory,

we can see that managers need to know the level of needs of their staff where they are

to meet the next higher needs

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Figure 1: Maslow’s

Source: http://what-is-the-meaning-and-purpose-of-life.com/hierarchy-of-needs/

It is a theory of human needs, and it is considered and applied in this study because only when the employee’s needs are met, they could have satisfaction in their work The needs of this theory are discussed in terms of different variables For example, the satisfaction of Social needs can be expressed in the variables measuring Job Stress Similarly, the satisfaction of self-actualization needs is reflected in the variable Empowerment at work

2.2 ERG Motivation Theory Alderfer (1969)

In general this theory similar to the theory of Maslow’s needs hierarchy, but there are some differences as follows: first, the number needs to be reduced to three instead of five, which is the existing needs (Existence need), solidarity needs (relatedness need) and development needs (growth need); Second, difference with Maslow, Alderfer said that there may be more needs to appear at the same time (Maslow said that only one needs to appear at a certain time); Third, compensation factor between of need demand, one need does not meet will be compensate by the other needs (Kreitner & Kinicki,

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2007) For example: an employee does not meet the needs of income but may be compensated by a good working environment, suitable job, training opportunities are promoted, etc.) while Maslow did not recognize it

The model linear regression in this study is built in which the dependent variable (Overall Job Satisfaction) and various independent variables (Satisfaction with Work Schedule Flexibility, Empowerment at Work Scale, Employee Satisfaction with Influence and Ownership, Performance Appraisal System Knowledge.) has demonstrated human have many needs rather than one as the same time

Figure 2: ERG Theory

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

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2.3 Adams’s Equity Theory (1963)

J Stacey Adams said that employees tend to evaluate fairness by comparing their efforts compared to what they receive as well as compare their rate with the rate of his/her colleagues in the company If the result of the comparison is an equal, they will continue efforts and keep their work performance If remuneration received exceeded their expectations, they will tend to increase their effort at work, whereas if the remuneration they receive less than their contributions, they will tend to reduce less effort to find other solutions or absent during working hours or quit their job (Pattanayak, 2005)

This theory can also be considered in this research Staff could not have been satisfied

if they realize that they have been treated unfairly from the issues of wages, opportunities and training support from superiors

2.4 Herzberg’s Two-Factor Theory

This theory determines which factors in an employment work environment cause satisfaction or dissatisfaction The factors causing satisfaction include: achievement, recognition, work, responsibilities, advancement, and growth If employee satisfactions are met, it will bring satisfaction in their work, whereas workers will not have the satisfaction The factors causing dissatisfaction include: company policy, supervision, relationships with superiors, working conditions, salary, and relationships with colleagues If there is meet will bring satisfaction in their work, whereas will lead to dissatisfaction (Efere, 2005) Thus, Herzberg has defined different separately two feelings and that the only motivation can bring satisfaction to employees and if not well

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maintaining factors will lead to dissatisfaction of employees Many studies have given results do not agree with the separate two feelings such as Herberg and also said only motivation that has bring satisfaction for employees (Kreitner & Kinicki, 2007) In reality, factors belong two above feelings have affected to satisfaction of employees However, through Hezberg theory we can also see the importance of motivation in bringing satisfaction as well as will lead to dissatisfaction of employees

2.5 Hackman and Oldham's Job Characteristics Model to Job Satisfaction

Hackman and Oldham (1974) have developed models to determine how to design jobs

so that employees can be motivated to work from their inside as well as job satisfaction and create the best performance To build the design of work like that, according to two researchers, work have to use many different skills, the employee must understand the business from start to finish and work have a certain importance

Hackman and Oldham’s job characteristics theory proposes that high motivation is related to experiencing three psychological states whilst working:

- Meaningfulness of work: that labor has meaning to you, something that you can relate to, and does not occur just as a set of movements to be repeated

- Responsibility: that you have been given the opportunity to be a success or failure

at your job because sufficient freedom of action has given you

- Knowledge of outcomes: this is important for two reasons Firstly to provide the person knowledge on how successful of their work, this enables them to learn

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from mistakes The second is to connect them emotionally to the customer of their outputs, thus giving further purpose to the work

These three above will bring meaningful of work for employees as well as bring excitement to them Next, employees have a right to execute the job It makes employee have responsible of result of their job Finally, there are feedback from their superior related their job: recognize their achievements as well as comments and criticism to help them work better in the future It helps employees know the results of their work

Figure 3: Hackman and Oldham’s Job Characteristics Model to Job Satisfaction

Source:http://www.myrbopportunity.com/2010/03/04/why-rb-employees-are-

passionate-about-their-work

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2.6 Vroom’s Expectancy Theory of Motivation

Whereas Maslow and Herzberg look at the relationship between internal needs and the resulting effort expended to fulfill them, Vroom’s expectancy theory separates effort (which arises from motivation), performance, and outcomes

Vroom’s expectancy theory assumes that behavior results from conscious choices among alternatives whose purpose it is to maximize pleasure and to minimize pain Vroom realized that an employee’s performance is based on individual factors such as personality, skills, knowledge, experience and abilities He stated that effort, performance and motivation are linked in a person’s motivation This theory revolves around three basic concepts (Kreitner & Kinicki, 2007) or three relationships (Robbins, 2002):

- Expectancy (expectation): the belief that increased effort will lead to increased performance This concept is expressed through the relationship between effort (effort) and the results (performance)

- Instrumentality (motive characteristics): the belief that if you perform well that a valued outcome will be received This concept is expressed through the relationship between results (performance) and reward (outcome/rewards)

- Valence (valence): the importance that the individual places upon the expected outcome This concept is expressed through the relationship between rewards (rewards) and personal goals (personal goals)

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Vroom said that the staff only is motivated when they are aware of the three concepts or the three relationships positively In other words if they believe that their efforts will lead to better results that will lead to rewarding and the rewards have valuable and consistent with their personal goals

Since this theory is based on the perception of the employees so it should be able to happen which in the same company and same position but one person have a motivation and the other has not because their understanding of the concepts are different

Application of this theory to the research, we found that if the company wants to be motivated employees towards certain goals (linked to organizational goals), we have created awareness in which employees that their efforts will bring rewards as they desire

To have an aware that we need to create their satisfaction in their current job, make them satisfied with the working conditions, supports from their superiors/colleagues, which makes them more confident about their efforts will lead to results and rewards as they desire Satisfaction of reward and punishment fairly will help them believe that their achievement that recognize and reward from the company

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