Shu - Te University Graduate School of Business and Administration

Master

“Employee Job Satisfaction Survey at Trung Hai

Hai Duong Cement Joint Stock Company, Vietnam”

Student: Nguyen Trong Dieu

Advisor: 1. Dr. Shu-Cheng Lee Advisor: 2. Dr. Nguyen Ngoc Dien

September, 2012

Shu-Te University

Graduate School O

f Business

Am

inistration

Thesis

Employee Job Satisfaction Survey at Trung H

ai H

ai Duong C

ement Joint Stock C

ompany , V

ietnam

Nguyen Trong D

ieu

September , 2012

Employee Job Satisfaction Survey at Trung Hai Hai Duong Cement Joint Stock Company, Vietnam

Student: Nguyen Trong Dieu

Advisor: 1. Dr. Shu-Cheng Lee

Advisor: 2. Dr. Nguyen Ngoc Dien

A Thesis

Submitted to the Graduate School of Business Administration

College of Management Shu-Te University

In Partial Fulfillment of the Requirements For the Degree of

Master of Business Administration

September, 2012

Graduate Student of Shu-Te University

Recommendation Letter from Thesis Adviser

This Student, Nguyen Trong Dieu, whose thesis entitled

“Employee Job Satisfaction Survey at Trung Hai Hai Duong

Cement Joint Stock Company, Vietnam”, is under my advisory

and agree to submit for examination.

Adviser : Co-Adviser :

Date : ...... / ..... / ......

i

Shu-Te University

Graduate School of Business Administration

“Employee Job Satisfaction Survey at Trung Hai Hai Duong Cement Joint Stock Company , Vietnam”

Student: Nguyen Trong Dieu

Advisor: Dr. Shu-Cheng Lee Co-Advisor: Dr. Nguyen Ngoc Dien

ABSTRACT The main purpose of this study is to detect the factors affecting employee

satisfaction with job and measure their impact intensity on the satisfaction level. The

research model used in this thesis is JDI model adding the factor “working conditions”.

The research results showed that there were two factors influencing employee

satisfaction with job including (1) “working conditions and advancement opportunities”,

(2) “supervisor and equal salary distribution”. The results also proved that these two

factors had positive impact between two independent variables and the dependent

variable. For categorical variables, only the variable “gender” had no differences

between groups of different gender. Other categorical variables including income, age,

education level and work position had differences on satisfaction level between

different groups of employees.

Finally, the study also pointed out the contributions and importance of the

research, the limitations and directions for further researches.

Keywords: Employee satisfaction, JDI, Cement, Vietnam

ii

ACKNOWLEDGMENTS During the time of conducting this thesis, I have received many helps from may

people. Without these helps, I have probably not finished my dissertation, so I would

like to express my thanks to all of you.

Firstly, I sincerely acknowledge the teachers at Shu Te University and Education

University, Vietnam National University who guided and helped me in the process of

understanding the knowledge to finish the course and then make this thesis. Special

thanks also go out to Dr. Shu Cheng Lee and Dr. Nguyen Ngoc Dien who have

enthusiastically guided and given me the very useful advices and comments to complete

this thesis.

Next, I also would like to express my thanks to my colleagues working at Trung

Hai Cement company for especially helping me in the process of surveying and

collecting data. Without your helps, I would not be able to complete the thesis on time.

Finally, I really acknowledge all beloved members in my family and my friends

for sharing and encouraging me during the course and the time when I make this thesis.

Special thanks for your help.

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TABLE OF CONTENTS

ABSTRACT ................................................................................................................. i ACKNOWLEDGMENTS........................................................................................... ii LIST OF TABLE ........................................................................................................ v CHAPTER 1 INTRODUCTION ................................................................................... 1

1.1 Research Background .......................................................................................... 1 1.2 Research motivation ............................................................................................ 2 1.3 Research purposes ............................................................................................... 2 1.4 Research Procedure ............................................................................................. 3

CHAPTER 2 LITERATURE REVIEW ........................................................................ 6 2.1 The concepts of “job satisfaction” ....................................................................... 6 2.2 Theories of Job Satisfaction ................................................................................. 7

2.2.1 McClelland’s Theory of Needs ...................................................................... 7 2.2.2 Vroom’s Valence x Expectancy theory .......................................................... 8 2.2.3 The Porter and Lawler Model ....................................................................... 8

2.2.4 Job Descriptive Index model (JDI) ................................................................... 9 2.3 Researches related to job satisfaction ................................................................. 10

CHAPTER 3 RESEARCH MOTHODOLOGY........................................................... 12 3.1 Background of the company .............................................................................. 12 3.2 Research model ................................................................................................. 13 3.3 The relationship between concepts and research hypotheses .................................. 14 3.4 Measurement of variables .................................................................................. 16 3.5 Research design ................................................................................................. 17

3.5.1 Qualitative research design ........................................................................ 17 3.5.2 Scale design ................................................................................................ 18 3.5.3 Sampling .................................................................................................... 19

3.6 Data analysis ..................................................................................................... 20 3.6.1 Descriptive Statistics .................................................................................. 20 3.6.2 Scale verification ........................................................................................ 20 3.6.3 The explore factor analysis (EFA) .............................................................. 21 3.6.4 Naming and adjusting research model ........................................................ 21 3.6.5 Building the regression function ................................................................. 21 3.6.6 Testing the suitability of the regression model ............................................ 22 3.6.7 Testing the research hypotheses .................................................................. 22

CHAPTER 4 DATA ANALYSIS ............................................................................... 24 4.1 Sample description ............................................................................................ 24

4.1.2 Sample structure by age .............................................................................. 24 4.1.3 Sample structure by education level ............................................................ 25 4.1.4 Sample structure by work position .............................................................. 25 4.1.5 Sample structure by income ........................................................................ 26

4.2 The results from questionnaires ......................................................................... 27 4.3 Scale verification ............................................................................................... 28

4.3.1 Testing the reliability of the scales for factor “work” ................................. 28

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4.3.2 Testing the reliability of the scales for factor “training and advancement opportunities” ..................................................................................................... 29 4.3.3 Testing the reliability of the scales for factor “salary” ............................... 29 4.3.4 Testing the scales for factor “supervisor support” ...................................... 30 4.3.5 Testing the scales for factor “co-worker relations” .................................... 30 4.3.6 Testing the scales for factor “work conditions” .......................................... 31 4.3.7 Testing the scales for the dependent variable “general satisfaction” .......... 32 4.3.8 Result summary of scale verification ........................................................... 32

4.4 Factor analysis................................................................................................... 33 4.4.1 Factor analysis with the independent variables ........................................... 33 4.4.2 Factor analysis with the factor “general satisfaction” ................................ 35

4.5 Naming and adjusting the research model .......................................................... 36 4.5.1 Naming the first factor ................................................................................ 36 4.5.2 Naming the second factor ........................................................................... 37 4.5.3 Naming the third factor............................................................................... 37 4.5.4 Adjusting the research model ...................................................................... 38

4.6 The correlation between variables ..................................................................... 38 4.7 Building the regression function ........................................................................ 40

4.7.1 Building the regression function by Enter ................................................... 40 4.7.2 Testing the suitability of the research model ............................................... 41 4.7.3 Testing the research hypotheses .................................................................. 44 4.7.4 Retesting the research model by Stepwise ................................................... 45 4.7.5 The importance of independent variables .................................................... 46

4.8 The differences between subtotals ........................................................................ 47 4.8.1 Testing the average of the subtotal .............................................................. 47 4.8.2 Testing the differences between groups of male and female employees ........ 48 4.8.3 Testing the differences between groups of different age............................... 50 4.8.4 Testing the differences between groups of different education level ............. 52 4.8.5 Testing the differences between groups of different work position ............... 54 4.8.6 Testing the differences between groups of different income ......................... 56

4.9 Detections of the research .................................................................................... 58 CHAPTER 5 CONCLUSIONS AND SUGGESTIONS .............................................. 60

5.1 Conclusions ........................................................................................................ 60 5.2 Recommendations ............................................................................................. 61 5.3 Contributions and the importance of the research............................................... 62

5.3.1 Contributions .............................................................................................. 62 5.3.2 The importance of the research ................................................................... 62

5.4 Limitations ........................................................................................................ 63 5.5 Directions for further researches ........................................................................ 63

REFERENCES ........................................................................................................... 64 APPENDIX ............................................................................................................... 68 QUESTIONNAIRE ................................................................................................... 68

v

LIST OF TABLE

Table 1: Research Process ............................................................................................. 3 Table 2: The observed variables .................................................................................. 16 Table 3: The scales used in survey questionnaire ......................................................... 18 Table 4: Result summary from Descriptive Statistics................................................... 27 Table 5: Item (CV)-Total Statistics ............................................................................. 28 Table 6: Item (DT) -Total Statistics ............................................................................. 29 Table 7: Item (TN) -Total Statistics ............................................................................. 30 Table 8: Item (LD) -Total Statistics ............................................................................. 30 Table 9: Item (DN)-Total Statistics ............................................................................. 31 Table 10: Item-Total Statistics .................................................................................... 31 Table 11: Item (TM) -Total Statistics .......................................................................... 32 Table 12: The result summary of scale verification in the model ................................. 32 Table 13: The first Rotated Component Matrixa) ......................................................... 34 Table 14: The third Rotated Component Matrixa) ........................................................ 35 Table 15: Rotated Component Matrixa) of the factor “general satisfaction” ................. 36 Table 16: Pearson correlation coefficient between variables ........................................ 39 Table 17: Summary of regression results by Enter ....................................................... 40 Table 18: Variance analysis of estimates (ANOVA) by Enter...................................... 40 Table19: Estimated Beta coefficient of the model by Enter ......................................... 40 Table 20: Spearman’s rank correlation ........................................................................ 42 Table 21: Summary of information of the model by Stepwise ..................................... 45 Table 22: Variance analysis by Stepwise ..................................................................... 45 Table 23: Beta coefficient of variables by Stepwise ..................................................... 46 Table 24: One-Sample Test with the variable F1 ......................................................... 47 Table 25 One-Sample Test with the variable F2 .......................................................... 47 Table 26: One-Sample Test with the variable TM ....................................................... 48 Table 28: Variance analysis (ANOVA) by age ............................................................ 50 Table 29: Variance analysis (ANOVA) by education level .......................................... 52 Table 30: Variance analysis by work position ............................................................. 54 Table 31: Variance analysis with the variable “income” .............................................. 56 Table 32: Summary of research hypotheses testing results........................................... 59

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LIST OF FIGURES Figure 1: Porter and Lawler’s model of Motivation ....................................................... 9 Figure 2: Smith et al. (1969), Tran Kim Dung (2005) .................................................. 13 Figure 3: Sample structure by gender .......................................................................... 24 Figure 4: Sample structure by age ............................................................................... 25 Figure 5: Sample structure by education level ............................................................. 25 Figure 6: Sample structure by work position ............................................................... 26 Figure 7: Sample structure by income ......................................................................... 26 Figure 8: The adjusted research model ........................................................................ 38 Figure 9: Scatterplot .................................................................................................... 41 Figure 10: Histogram of standardized residual............................................................. 43 Figure 11: Normal P-P lot of standardized residual ..................................................... 43 Figure 12: Dynamics of average response F1 by age ................................................... 51 Figure 13: Dynamics of average response F2 with age ................................................ 51 Figure 14: Graphs the average response dependent variable TM with age ................... 52 Figure 15: The answer the F1 variable according to the average level of education ..... 53 Figure 16: The answer the F2 variable according to the average level of education ..... 53 Figure 17: The average response dependent variable TM in education ........................ 54 Figure 18: The average response variables F1 work placement .................................... 55 Figure 19: The average response variable F2 work placement ..................................... 55 Figure 20: The average response variables F1 work placement .................................... 56 Figure 21: The average response variables F1 income level......................................... 57 Figure 22: The average response variable F2 income level .......................................... 57 Figure 23: The average response dependent variable TM income ................................ 58 Figure 24: The relationship between factors ................................................................ 59

1

CHAPTER 1 INTRODUCTION This chapter will introduce the research thesis in general including: research

background, research motivation, research purposes, and research procedures.

1.1 Research Background

Man is a social entity that is dominated by many different activities. In today's

modern society, pressures from work and life affect more and more strongly to people.

Therefore, the research aims to find solutions for increasing job satisfaction is needed.

The research on behavior and satisfaction of human needs had been done long

time ago with the famous study of Maslow on the scale of needs and was widely applied

in many fields.

Manufacturing sector of construction materials in Vietnam is being expanded

because the demand of investment and construction is now larger and larger. The

cement manufacturing industry is not an exception. Along with the development of

manufacturing building materials, the building market becomes more fiercely

competitive. This requires companies to improve their competitiveness ability. One way

to do that is to increase worker’s productivity in order to lower production cost. The

fact that labor productivity depends on the level of employee satisfaction or

dissatisfaction on job (Luddy, 2005).

Trung Hai Haiduong Cement J.S.C is a cement company with small scale

production. Its competitiveness of brand and market prestige is not as fierce as some

other big manufacturing enterprises, such as Hoang Thach, Bim Son, Ha Tien.

Therefore one of the advantages that can generate is to increase its labor productivity

and to reduce prices of products in order to create competitive advantages. And it

should especially concentrate on ”the northern economic triangle” including Hanoi, Hai

Phong and Quang Ninh because this triangle is really a dynamic economy region in

Vietnam.

Creating a stable quality workforce will help the company save costs (recruitment

costs, costs of training new employees), reduce the errors in work (for new employees),

create trust and solidarity between members of the company. Those things are really

2

necessary to make the business activities of the company more effective, and customers

will feel more and more reliable with the company’s goods and services, so the

company can improve their competitiveness ability in the market. To approach it,

satisfying employees is needed and oblige for each business, especially when the

businesses currently have so many policies to attract more employees.

1.2 Research motivation

Why researching on "employee job satisfaction"? Labor productivity is always a

concern of any companies. The labor productivity of workers is the main factor

affecting the competitive advantages of a company. Labor productivity depends on the

employee satisfaction. If employees feel satisfied with their job, the labor productivity

of them actually will increase. Labor efficiency and labor productivity at the company

are currently not high, and the employee’s income is also low (3mil./month). So it is

difficult to retain good employees and attract talented persons to the company. There

has been a situation that many employees resigned from their jobs. One of the main

reasons is that employees were not satisfied with their assigned works. Thus, the

research on employee job satisfaction is essential because it helps companies find

solutions to keep their employees and to increase labor productivity for the workers.

Why choosing Trung Hai Cement J.S.C? As a graduate student as well as with

family as a shareholder of the company, the author realizes that to make employees feel

satisfied with their jobs is a real requirement that requires researches to find solutions in

order to improve job satisfaction and increase employees’ productivity. Another issue is

that the research carried out at Trung Hai Haiduong Cement J.S.C will be more

advantageous for information collection and investigation.

In addition, up to now, there have not any investigations or researches on the

"employee job satisfaction" at Trung Hai Haiduong Cement J.S.C, but only a few

studies that are concentrated on the satisfaction level of customers for some services of

service providers. So, this study is the initial research to accurately evaluate how

employees feel about their works, and what factors influence their job satisfaction.

1.3 Research purposes

This study has two main following purposes:

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(i) To investigate employee satisfaction with their assigned jobs, and to correctly

evaluate current state of the company based on each factor affecting it, using Job

Descriptive Index (JDI).

(ii) To assess the impact intensity of these factors that influence employee

satisfaction on job, then, to give solutions to improve employee satisfaction with jobs,

increase labor productivity, and adjust the personnel policies of the company to suit the

actual situation.

1.4 Research Procedure

The procedure of this research consists of the research steps as illustrated below

Table 1: Research Process

Step Activity 1 Define thesis title, and research issue with advisor and co-advisor

2 Confirm the approval from supervision

3 Determine research purpose, motivation and procedure 4 Literature review (read related papers)

5 Define factors affecting the “satisfaction” of employees with job Design the research by questionnaire, do the investigation to collect data and analysis

6 Request the research contents and structure (outlines of 3 first chapters) Apply the thesis proposal

7 Chapter 1: Introduction: Describes the background and motivation of the study to find research purposes

8 Chapter 2: Literature review: Introduce Maslow's hierarchy need theory, the application of model in evaluation of main factors affecting " employee job satisfaction", etc.

9 Chapter 3: Research methodology: Explain the research object's choice, research framework and research assumptions

10 Chapter 4: Data analysis and research results: Using SPSS statistical software to do statistical analysis and research hypothesis testing

11 Chapter 5 Conclusions and suggestions: According to the research result with chapter 4, summed up the important conclusions, and to make managerial implications and suggestions

4

The detail contents of each step are as follows:

Step 1: Confirmed thesis title according to the advices of advisor and co-advisor:

At this step, the author made to work with advisor and co-advisor, proposed the title and

issue for the thesis.

Step 2: Confirmed of advisor on the agreement of research on the proposed thesis

title. At this step, the author defined the research issue and the approval from supervision.

This was the basis for the author to perform the next task in the researching project for the

thesis.

Step 3: Determined research purpose and motivation and procedures. At this step,

the author defined the purpose of this study. Is the study an exploring research or an

affirmative research? And what motives to do this research in the research project of the

author?

Step 4: Read related papers. After determining the research motivation and

research purposes, the author reviewed all the documents related to research topic of

other authors on the same field.

Step 5: Determined the factors affecting the satisfaction of employees with job.

After that, the author designed research framework by questionnaire, did the

investigation to collect and analyze data, defined all factors influencing employees

satisfaction. Then, the author started selecting theoretical research model to build the

main research model for this study. At this step, the author made a qualitative study with

ten employees working at the company, divided them into two groups in order to

discuss about the factors affecting their satisfaction with current jobs. The results of this

qualitative research would help the author determine the factors that influence the

"satisfaction" of the company’s employees on jobs and working environment.

Step 6: Applied the thesis proposal (outlines of 3 first chapters). To ensure the

progress of research implementation and the completion of research purposes, the

author outlined three first chapters to discuss with the advisor to make uniform the

contents of each part. The three first chapters of the study were the basic theoretical

framework to do the data analysis and propose solutions according to the research

purposes in the chapter 4 and chapter 5.

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Step 7: Wrote chapter 1: Introduction. After making uniform the contents of the

study with the advisor, simultaneously carried out the data collection and completed the

overview of the thesis title made in chapter 1 according to the standard format of the

university.

Step 8: Wrote chapter 2: Literature review. The author completed the contents in

the approved proposal from the advisor. In this chapter, the author would introduce the

research models applied in the field of information technology and the models carried

out by other authors in the other fields. This chapter was the basic to build theoretical

framework for the research model in chapter 3.

Step 9: Wrote chapter 3: Research methodology. Based on the related theories in

chapter 2 and the quantitative research to detect and test the factors through the

discussion in group of customers. The author proposed a theoretical research model for

the study, confirmed the application of the research methods and models that were used

in this thesis: sampling method, the number of samples, criteria for assessing the scales,

to ensure the reliability of the study.

Step 10: Wrote chapter 4: Empirical studies. After doing the investigation to

collect data, the author analyzed the research results to complete the study. At this step,

the main results from data analysis would be presented in the order; the author

conducted the research hypotheses and retested the theoretical model.

Step 11: Write chapter 5: Conclusions and suggestions. According to the research

results in chapter 4, the author summed up the important conclusions, and also made

managerial implications and suggestions as well as proposed solutions for increasing the

satisfaction of employees with job. In addition, the author also gave directions for

further researches.

6

CHAPTER 2 LITERATURE REVIEW This chapter will review the literature of job satisfaction, the JDI-Job Descriptive

Index model, company image and organizational culture, as well as some researches

related on employee satisfaction with work. The contents are as follows:

2.1 The concepts of “job satisfaction”

There are many different viewpoints on job satisfaction in each research, however

in this study, the author will introduce some popular points of view.

Hoppock (1935) defined job satisfaction as any combination of psychological,

physiological, and environmental circumstances that cause a person truthfully to say, 'I

am satisfied with my job’.

Smith (1983) suggested that job satisfaction simply is the feelings that employees

feel about their jobs.

Weiss (1967) defined that job satisfaction is an attitude about work, which is

expressed by feelings, beliefs and behaviors of employees.

So, we can see that “job satisfaction” can be defined in many different ways. But

in the scope of this study, the concept of “job satisfaction” is understood as perceived

feelings, comfortability, beliefs, of employees with their works.

Satisfaction with job derives from organizational psychology and motivated

theory. According to Green (2000), classic theories of job satisfaction were divided into

three main groups: content theorists, process theorists and circumstance theorists.

Firstly, content theorists (such as Herzberg’s theory (1966) and Maslow’s theory

(1954)) have provided theories to help explain that meeting full demands would bestow

upon job satisfaction.

Secondly, process theorists (such as Vroom’s theory (1964) and Adams’s theory)

explained that job satisfaction is interaction of three factors: expectancies, values and

needs.

Finally, circumtance theorists showed that job satisfaction is interaction of three

variables: individual, work and organization.

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2.2 Theories of Job Satisfaction

2.2.1 McClelland’s Theory of Needs

David Mc. Clelland (according to Robbins, 2002) supposed that human motivation

is dominated by three needs, including: the need for achievement, the need for power,

and the need for affiliation. In which:

The need for achievement

A person with high needs for achievement will set goals that are challenging but

realistic. They want to overcome the difficulties and obstacles. They want to feel that

the success or failure of them as a result of their actions. The goals have to be

challenging so that the person can feel a sense of achievement. This type of person

prefers to work alone or with other high achievers. They do not need praise or

recognition, achievement of the task is their reward. Common characteristics of people

with high achievement needs are as follows:

● willingness to implement personal responsibility

● tendancy to set high target for themselves

● high demands of immediate and specific feedback

● master jobs quickly

The need for affiliation

Similar with social needs in A. Maslow’s theory, the need for affiliation is the

need for friendly relationships and human interaction. Person with a high need for

affiliation is likely to be a team player and thrive in a customer services environment.

They will perform best in a co-operative environment.

The need for power

This is the need to lead others and make an impact. Researchers showed that this

need can exhibit itself in two ways.

The first which is the need for personal power may be viewed as undesirable as

the person simply needs to feel that they have “power over others”. They don’t have to

be effective or further the objectives of their employer.

The second type of “need for power” is the need for institutional power. People

with the need for institutional power; want to direct the efforts of their team, to further

8

the objectives of their organisation.

2.2.2 Vroom’s Valence x Expectancy theory

Victor H. Vroom (1964) argued that the strength of a tendency to act in a specific

way depends on the strength of an expectation that the act will be followed by a given

outcome and on the attractiveness of that outcome to the individual to make this simple.

Expectancy theory says that an employee can be motivated to perform better when there

is a belief that the better performance will lead to good performance appraisal and that

this shall result into realization of personal goal in form of some reward. In other words,

Vroom supposes that, motivation is the result from the people’s expectancy and their

valence. Therefore an employee is:

Motivation = Valence x Expectancy.

When a person is indifferent to achieve the goals, the level of expectancy equals

to zero, and it will be negative when he rejects to achieve that goal. The result of these

two cases is that there is no motivation. Similarly, a person may not

be motivated to achieve goals if the expectancy is zero or negative.

2.2.3 The Porter and Lawler Model

Lyman W. Porter and Edward E. Lawler developed a more complete version of

motivation depending upon expectancy theory (Figure 1).

The figure shows that, actual performance in a job is primarily determined by the

effort spent. But it is also affected by the person’s ability to do the job (knowledge and

skills) and also by individual’s perception of what the required task is. So performance

is the responsible factor that leads to intrinsic (money, rewards in kind) as well as

extrinsic rewards (working conditions, status). These rewards along with the equity of

individual (means that each individual is aware of the reasonableness and

fairness of the reward) lead to the satisfaction. Hence, satisfaction of the individual

depends upon the fairness of the reward.

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Figure 1: Porter and Lawler’s model of Motivation

This model is more appropriate to describe the motivation system. The model also

shows that motivation is simply not a matter of cause and effect.

2.2.4 Job Descriptive Index model (JDI)

The Job Descriptive Index (JDI) has been recognized as the most-respected

measure of employee job satisfaction in the world. It was first introduced by Smith et al.

in 1969. The application of JDI in measuring satisfaction of employees with their jobs is

very wide with 12.000 researches on JDI (Worrel, 2004). Basically, the JDI model of

Smith et al. on employee satisfaction with job is based on five following factors:

Work: is understood as a job which brings satisfaction to employees and creats

better performance of job itself if it satisfies these following characteristics: Use

the different skills; employees understand the work process; and work plays a certain

important role for production and business activities of the company. In addition, work

must suit the ability and capacity of employees.

Training and advancement opportunities: Training is a process of learning

necessary skills for a certain job. Advancement is a job movement to the higher position

in the working system of employees. In this thesis, training and advancement are

Perceived Effort Reward Probability

Perceived equitable

Role perception

Abilities & Traits

Value of Reward

Extrinsic Rewards

Intrinsic Rewards

Performance

Satisfaction

Effort

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grouped together into only one factor because of their cause-effect relationship. The aim

of training employees is not only to increase their skills but also to promote in working

system. They have an intimate relationship with each other.

Salary: Salary is the revenues that employees get from their job at the company.

In this study, salary is understood as salary that employee get from their current job at

the company, excluding other revenues from outside. The factor “salary” is an important

factor that affects the satisfaction of employees with job. Employees have comparision

between their salary and the salary of employees at other companies to know whether

salary is paid fairly among employees in the company or not.

Supervisors: Leaders are understood as the direct superiors of the staffs. Leaders

bring satisfaction to their employees through the communication with each other, the

caring, the interest, or protect employees when needed, show their leadership

capacity and expertise for subordinates. Moreover, satisfaction of employees with

supervisors is also determined by being fairly treated, as well as being expected about

their capacity and contributions.

Co-workers: Co-workers are understood as colleagues who work together at the

same location, with similar work contents or on a chain of professional works related to

each other in an organization. In this study, colleagues are considered as people who

work together in same department of a company and have close relationship as well as

frequent connection in work. Because employees work and contact to each other very

frequently, so the relations between co-workers also have impact on general satisfaction

with job. The main factors of job satisfaction are the trust, conscientiousness,

friendliness and willingness to help each other in work.

2.3 Researches related to job satisfaction

The researches on employee satisfaction with job have been done quite early,

(starting with the research by Hoppock, 1935) and by many researchers in various

fields. In this study, the author will introduce some popular researches in the world and

also in Vietnam in a same field.

Firstly with the research by Smith, Kendall and Hulin (1969) on job satisfaction

description index at Cornell University. There are 5 main factors to evaluate the level of

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job satisfaction, including: The nature of work, advancement opportunities, supervisor

support, co-workers, and salary.

The research by Spector (1985) in the field of services shows that, there are nine

factors affecting the employee satisfaction with job. They are: (1) salary, (2)

advancement opportunities, (3) working conditions, (4) supervision, (5) co-workers, (6)

job desire, (7) information communication, (8) surprise awards, (9) welfare.

The research by Luddy (2005) in the field of health services in South Africa shows

that, employee satisfaction with job is affected by all five factors in the JDI model. In

which, three factors “co-workers”, “supervisors”, and “ work” are positively assessed.

The two factors left “training and advancement opportunities” and “salary” are

negatively assessed (dissatisfaction).

In Vietnam, the research by Tran Kim Dung (2005) done in Ho Chi Minh city

shows that, there are seven factors influencing on employee satisfaction with job,

including: (1) work itself, (2) training and advancement opportunities, (3) salary, (4)

supervisor, (5) co-workers, (6) the company’s welfare, and (7) working conditions.

The research by Nguyen Lien Son (2008) in Long An province shows six factors

affecting employee satisfaction with job. They are: (1) work itself, (2) salary, (3) co-

workers, (4) supervisor, (5) training and advancement opportunities, and (6) working

conditions.

The research by Nguyen Thi Thu Thuy (2011) on the satisfaction of lecturer in.

Ho Chi Minh city shows that, there are four factors that influence the satisfaction,

including: (1) colleagues, (2) salary, (3) job characteristics, and (4) supervisor.

The research by Pham Van Manh (2012) in the field of telecommunications also

shows four factors that affect employee satisfaction, including: (1) co-workers and

welfare, (2) training and advancement, (3) proactivity, and (4) working environment. In

which, the factor “working environment” is negatively assessed.

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CHAPTER 3 RESEARCH MOTHODOLOGY This chapter will provide the research methods including proposed research

framework, research hypotheses, the method of building scale, as well as data

investigation and processing. The contents are as follows:

3.1 Background of the company

Before 2005, Trung Hai Haiduong Cement Joint Stock Company was a state-

owned enterprise that specialized in manufacturing and trading cement for inside and

outside the province. Up to now, the company has been 32 years old and its forerunner

is Hai Duong cement manufactory which was established in Hai Duong in 1978. In

1994-1996, to meet the needs the domestic construction industry and to develop the

cement manufacturing industry, the manufactory was invested by the Provincial

People's Committee to build the second production line with a design capacity of 8.8

thousand tons / year according to blast furnace technology of China. In 1997, by

decision No. 73/QD-UBND of merger of Duyen Linh Cement Company and Hai Duong

Cement Company, Hai Duong cement company was established. In 2000, to implement

the policy of innovation rearrangement of State enterprises in Hai Duong Province, Hai

Duong Cement company was split lines to conduct equitization. By the decision No.

5664/QĐ- UBND on 01/12/2005 of Hai Duong People’s Committee, Trung Hai

Haiduong cement J.S.C was established.

● Trading name: Trung Hai Haiduong Joint Stock Company

● Headquarters: Duy Tan commune - Kinh Mon district - Hai Duong province.

● Tel: (0320)3824708 Fax: (0320)3824753

Currently, the company has 546 officers and workers, in which the number of

employees at university-level makes up 15%, the number of employees at intermediate-

level makes up 20%, the rest are unskilled workers who can meet the requirements of

the company.

Through over 32 years of production, the company has increasingly developed and

met the demands of the construction industry as well as the needs of cement

manufacturing industry not only in Hai Duong province but also other provinces.

13

3.2 Research model

Research model is built based on the Job Descriptive Index model, which was

developed by Smith et al. (1969), and conferences from some previous researches in

Vietnam. In this study, with features of the cement manufacturing industry, a heavy and

toxic work environment, the factor “work conditions” is considered as an important factor

affecting employee satisfaction with job, so it will be added into the research model.

Hence, the research model of the study will include six following factors (Figure 2):

(1) Work

(2) Advancement opportunities

(3) Salary

(4) Supervisor support

(5) Co-worker relations

(6) Work conditions

Figure 2: Smith et al. (1969), Tran Kim Dung (2005)

Work

Advancement opportunities

Salary

Supervisor support

Co-worker relations

Job satisfaction

H1

H2

H3

H4

H5

H6

Work conditions

14

3.3 The relationship between concepts and research hypotheses

Work: includes all contents of work, it suits employee’s capacity and creates

inspirations for them to develop their abilities in work. Arranging job in an appropriate way

will exploit the potentials of employees, increase productivity and make them feel pleased

in their jobs. In other words, the employees will feel satisfied with assigned works if they

suit their capacities. This is proven by the research of John. D Pettit et al. (1997), research

of T. Ramayah et al. (2001) in Malaysia, research of Kinicki et al. (2002), research of

Luddy (2005), researches of Tran Kim Dung (2005), Nguyen Lien Son (2008), Nguyen Thi

Thu Thuy (2011). These researches all show that employee satisfaction with the nature of

work will influence their satisfaction on job. Therefore, this study gives out following

hypothesis:

H1: The factor “work” positively affects general satisfaction of employees with

job.

Training and advancement opportunities: mean that, employees can get

chances of training to improve their skills in work, as well as chances of advancement to

reach the higher position in their career ladder. Employees will feel satisfied with works

which they suppose will have many training and advancement opportunities. So, the

training and advancement opportunities of the company have impact on employee

satisfaction with job. This is proven by the researches of Spector (1985), J.H Ironson et

al. (1989), Jonh. D Pettit et al. (1997) , T. Ramayah et al. (2001), Stanton et al. (2001),

Kinicki et al. (2002), Luddy (2005), Tran Kim Dung (2005), Nguyen Lien Son (2008),

Pham Van Manh (2012). Therefore, this study proposes hypotheses as follows:

H2: The factor “training and advancement opportunities” positively affects

general satisfaction of employees with job.

Salary is the revenues that employees get from their jobs at the company.

According to Maslow's Hierarchy of Needs Theory, the needs for salary here can be

understood as basic needs (physiological needs). In general, with the same level

of work, the employees will feel more satisfied when their salary is higher, besides, the

fairness in salary is also appreciated (comparison salary). This is proven by the

researches of Arthur G. Bedeian et al. (1992), Jonh.D Pettit et al. (1997), T. Ramayah et

15

al. (2001), Stanton et al. (2001), Kinicki et al. (2002), Tran Kim Dung (2005), Nguyen Lien

Son (2008), Nguyen Thi Thu Thuy (2011), Pham Van Manh (2012). Thus, this study

hypothesizes that:

H3: The factor “salary” positively affects general satisfaction of employees with

job.

Supervisor support: Supervisors are leaders, the direct managers of the staffs.

Supervisors bring their employees satisfaction through the communication with each

other, the caring, the interest, their leadership capacity and expertise for subordinates. In

other words, the factor “supervisor support” has positive impact on general satisfaction of

employees with job. This is proven by the researches of Spector (1985), Jonh.D Pettit et al.

(1997), Lilia M Cortina and Vicki J. Magley (2011), T. Ramayah et al. (2001), Luddy

(2005), Tran Kim Dung (2005), Nguyen Lien Son (2008), Nguyen Thi Thu Thuy (2011).

For this reason, it is necessary for the study to launch the hypothesis as follows:

H4: The factor “supervisor support” positively affects general satisfaction of

employees with job.

Co-worker relations: They are people who work together at the same

position, with similar work contents or on a chain of professional works related to each

other in an organization. The relations between co-workers are competitive and support

relations. Employees will feel satisfied with their jobs if they have supports from their co-

workers, the colleagues are friendly and help each other in work, as well as if they have fair

competitiveness of awards and promotion opportunities in the company. The main elements

of satisfaction with co-worker relations are the trust, dedication in work and friendliness. In

other words, employees will feel more satisfied with their jobs if they have good

relationship with their co-workers. This is proven by the researches of T. Ramayah et al.

(2001), Luddy (2005), Tran Kim Dung (2005), Nguyen Lien Son (2008), Nguyen Thi Thu

Thuy (2011), Pham Van Manh (2012). Thus, this study hypothesizes that:

H5: The factor “co-worker relations” positively affects general satisfaction of

employees with job.

Work conditions: is the workplace status of workers, including: safety in work,

the company’s facilities. A workplace with good facilities will make employees feel

16

satisfied with their job. In contrast, employees will feel dissatisfied with job if the

facilities of the company are bad or lacked. This is proven by the researches of Spector

(1985), Tran Kim Dung (2005), Nguyen Lien Son (2008), Pham Van Manh (2012). So,

the study launches this following hypothesis:

H6: The factor “work conditions” positively affects general satisfaction of

employees with job.

3.4 Measurement of variables

The observed variables are inherited from the previous studies and is adjusted to

suit the specific conditions studied through a group discussion with the employees in the

company to keep, add or remove away some of the observed variables does not make

sense. Content as follows:

Table 2: The observed variables

No. Code Contents References

I Work 1 CV1 The work suits your capacity and professional skills.

Tran Kim Dung (2005), Nguyen Lien Son (2008)

2 CV2 Employees understand clearly about job. 3

CV3 Work allows employees to have opportunities for using their individual abilities.

4 CV4 Motivating creativity at work. 5 CV5 Job has much fun and challenges. 6 CV6 Work quantity is reasonable. 7 CV7 Working time is appropriate. II Training and advancement opportunities 8 DT1 Fully trained professional skills.

Tran Kim Dung (2005), Nguyen Lien Son (2008)

9 DT2 Opportunities to improve professional skills. 10 DT3 Promotion opportunities for capable people. 11 DT4 Opportunities for personal growth. 12 DT5 Fair training and promotion policies. III Salary 13 TN1 Salary is proportional to the abilities and contributions.

Tran Kim Dung (2005), Nguyen Lien Son (2008)

14 TN2 Equally rewarded for work efficiency. 15 TN3 Reasonable subsidization 16 TN4 Equitable distribution of salary, bonuses and pension. 17 TN5 Employees can live on their income. 18 TN6 Salary is on par with other companies.

17

IV Supervisor support 19 LD1 The supervisors care about their subordinates.

Tran Kim Dung (2005), Nguyen Lien Son (2008)

20 LD2 Employees receive much supports from their supervisors. 21 LD3 Supervisors treat everyone equally. 22

LD4 Supervisors have capacity, vision and good leadership skills.

V Co-worker relations 23 DN1 Co-workers are often willing to help each other.

Tran Kim Dung (2005), Nguyen Lien Son (2008)

24 DN2 Co-workers work together well. 25 DN3 Co-workers are friendly. 26 DN4 Co-workers are trustworthy in work. VI Work conditions 27 MT1 The working environment is clean and hygiene.

Tran Kim Dung (2005), Nguyen Lien Son (2008)

28 MT2 You do not worry about losing job. 29 MT3 You work under safe conditions. 30 MT4 You are sufficiently provided work equipments. 31 MT5 Work pressures are not too high.

3.5 Research design

3.5.1 Qualitative research design

The method of qualitative research is used in the period of explore research:

research secondary references and discuss with some employees about employee

satisfaction with job to detect, adjust, add variables, and build preliminary scale for the

study. This method is done through the step of interview and direct discussion with

some employees at processing factories, as well as some supervisors of labor

management department.

There are many different opinions after this step of qualitative research, but most

opinions show that, all factors in JDI model have impact on employee satisfaction with

job. In addition, many employees here also agree that, the current work condition of the

company is one of issues that make them feel satisfied or dissatisfied. They suppose

that, the factor “work conditions” is also an important factor to evaluate employee

satisfaction on job, especially in the cement manufacturing industry.

Many opinions showed that appropriate assessment of supervisors with the well-

done works of employees also plays an important role as a support, and then creates

employees trust, beliefs, and motivation to complete assigned works.

Many respondents showed opinions about their current work, especially

18

those with high-minded striving for work. They want to get the clear responsibility in

the position they are taking over, and expect to contribute their voices in the

decision making of supervisors.

Through the step of qualitative research, the author added the factor “work

conditions” into the research model. At the same time, the author also adjusted survey

questions for each factor in the JDI, which is referenced from previous researches to suit

in semantics.

3.5.2 Scale design

Designing scales is needed for every research. An appropriate scale selection will

help the author find it easy to analyze and detect research issues. In this study, the

author uses the five point Likert scale. In principle, the more detail the scale is, the more

accurate it is, however, the five point Likert scale is appropriate with this study, because

its accurateness is similar to the seven point Likert, or in other words, the semantic

distinguishing features of the “agreement” level in Vietnamese are not too different

between the five point and seven point scale. The classification variables are built by

identification scales and hierarchical scales. In detail as follows (Table 3):

Table 3: The scales used in survey questionnaire

Factor Variables Scale Information about employee satisfaction with each factor

Detail evaluation of employee satisfaction

with each factor

Evaluation criteria of work

Five point Likert

Evaluation criteria of training and advancement opportunities Evaluation criteria of salary Evaluation criteria of supervisor support Evaluation criteria of co-worker relations Evaluation criteria of work conditions

Information about general job satisfaction General assessment of job satisfaction level

Feel satisfied when working at company

Five point Likert

19

Feel pleased when choosing a company to work Consider company as the “second house”

Personal Information

Employee classification information

Sex Identification Age Ratio Average income Ratio Area of expertise Identification Education level Level Working time Ratio

3.5.3 Sampling

1. Sampling method

Due to the cost limitation in implementing the research, this study used random

sampling method instead of whole survey. The questionnaires woukd be randomly

handed to employees who are working at the company. It would be done till the

research got the valid samples as expected.

2. Sample size

To ensure the reliability of the research, the selection of an appropriate sample

size is needed. In principle, the more number of samples are, the more accurate research

results are, however, a too big sample size will affect the cost and time to conduct the

research.

Due to the cost and time limitation, the sample size would be determined on the

principle of minimum necessary to ensure the reliability of the study. The expected

number of samples were 200 samples, so to ensure this sample size, 250 samples were

sent to respondents.

The determination of how appropriate the sample size is still has many

controversies. Maccallum et al. (1999) sumed up opinions of previous researchers about

the principle of minimum sample size with Factor Analysis. According to Kline (1979),

the minimum number of samples is 100, but according to Guiford (1954), the number of

20

samples is 200 and Comrey & Lee (1992) gave the sample size for the respective views

is that: 100 = bad, 200 = pretty, 300 = good, 500 = very good, 1000 or more = excellent.

Some researchers did not give specific numbers but the relationship between the

number of observed variables with the sample size. According to Trong and Ngoc

(Vietnam, 2008) using the 5 - Power Rule, i.e. the number of samples x 5 = the

minimum sample size of the study to ensure reliability.

In this study, sampling according to the rules of Comrey and Lee (1992), and

reference from rules of Ngoc & Trong with 31 observed variables. The minimum

sample size is 31 x 5 = 155. Thus, according to Comrey and Lee (1992), the sample size

with 200 samples is a good sample size, at the same time, it also satisfies the 5 – power

rule of Ngoc and Trong of minimum sample size.

3. Research objectives (overall):

The research objectives include employees working at the factories at Trung Hai

Haiduong Cement J.S.C.

3.6 Data analysis

The obtained data were cleaned and analysized by using SPSS 18.0 through

statistical steps including following steps:

3.6.1 Descriptive Statistics

The obtained valid survey questionnaire would be classified according to the

following criteria: gender, age, education level, income, etc. At the same time, the

author also calculated the average point, maximum value, and standard deviation of

the answers in collected questionnaire.

3.6.2 Scale verification

The observed variables were verified by using the Cronbach`s Alpha and the

method of Item-total correlation. The observed variables which did not ensure about the

reliability would be removed from the scale and did not appear in the explore factor

analysis.

In this study, Cronbach `s Alpha coefficient must be at least 0.6 (Hair et al., 1998).

If the correlation coefficient of the total variable is less than 0.3, it is considered as a

“spam variable” and naturally eliminated from the scale (Nunally and Burstein, 1994).

21

3.6.3 The explore factor analysis (EFA)

After being tested by Cronbach`s Alpha and the examination of Item-total

correlation, the observed variables would be analyzed by EFA method. Some standards

applied in analyzing the EFA in the study were as follows:

● testing the appropriateness of factor analysis to sample data through the

statistical value of Kaiser-Meyer-Olkin (KMO). Accordingly, if the KMO value is

greater than 0.5, (Garson, 2002), otherwise, if the KMO value is less than 0.5, the factor

analysis will be not appropriate to obtained data.

● the number of factors: The number of factors is determined based on the

eigenvalue index which represents the variation explained by each factor. According to

Kaiser’s standards, the factors with an eigenvalue index less than 1 will be removed

from the research model (Garson, 2002).

● variance explained criteria: The total variance explained criteria must be greater

than 50% (Hair et al., 1998).

● the convergence value: To meet the convergence value of the scale, the single

correlation coefficient between variables and the factor loading must be greater than or

equal to 0.5 within a factor (Garbing and Anderson, 1988).

● the distinct value: To meet the distinct value, the value of distinction between

the factor loadings must be greater than or equal to 0.3 (Jabnoun, 2003).

● principal components method with Varimax rotation to ensure the number of

factors is smallest (Ngoc and Trong, 2008).

3.6.4 Naming and adjusting research model

After doing the explore factor analysis, the author renamed the factors and

adjusted the model as well as original research hypotheses to fit the actual data.

3.6.5 Building the regression function

After the scales of the examined factors were tested, they would be processed by

running linear regression by method of ordinary least squares (OLS) with both Enter

method and Stepwise method.

22

3.6.6 Testing the suitability of the regression model

After building the regression function by method of ordinary least squares, to

ensure the reliability of model, the author made finding the satisfaction with the

hypotheses of the OLS model. Include:

● Linear dependence between independent variables: Using the Scatter plot graph

to test the linear dependence hypothesis contact between independent variables in the

model.

● The changes in the residual variance: The author uses Spearman’s rank

correlation to test the changes in the residual variance.

● Testing the residual normal distribution: Using the P-Plot and Histogram

graphs to test the residual normal distribution hypothesis.

● Testing the multicollinearity: Multicollinearity is a statistical phenomenon in

which variables have close correlation relationship with each other. The main effects of

this phenomenon are that an independent variable can bring information of other

independent variables, and it makes the regression function can not exactly predict. For

this phenomenon, the tolerance or VIF (variance inflation factor) will be used to test.

According to Hoang Trong & Mong Ngoc (2008), if VIF is less than or equal to 10, the

independent variables do not correlate linearly with each other.

● Testing the heteroskedasticity: In statistics, a collection of random variables is

heteroscedastic if there are sub-populations that have different variability than others.

When the variance of the errors changes, the estimates of the regression coefficients are

not effective, and the T test and F test are no longer reliable.

After checking, if the research results do not violate, we can conclude that,

estimates of regression coefficients are unbiased, consistent and effective, and the

conclusions obtained from regression analysis are reliable.

3.6.7 Testing the research hypotheses

The research hypotheses would be tested through the research data from

regression function. The testing standards used the t statistics and the p-value (sig.).

With the reliability coefficient = 95%, we compared the p-value with 0.05 to conclude

the posed research hypotheses. For testing the difference between subtotals, the study

23

used t-test and ANOVA to test each hypothesis, and the testing standards based on the

value of the corresponding p-value for each specific testing step. To test the suitability

of data and model, the author used F statistics, t statistics, and R-square. In addition, to

assess the importance of factors, the author considered the Beta coefficient in the

regression function.

24

CHAPTER 4 DATA ANALYSIS This chapter will present data analysis results from obtained actual data including

the results of descriptive statistics, scale verification, explore factor analysis, model and

research hypotheses test. The contents in detail are as follows:

4.1 Sample description

In 250 questionnaires, which were distributed for three factories, the author

collected 243 questionnaires, in which there were 237 valid ones, 6 other questionnaires

were not fully filled and removed from the actual data before analyzing data. The

sample size of 237 valid questionnaires satisfies the rule of minimum sample size.

Sample classification structure based on following criteria:

4.1.1 Sample structure by gender

In 237 valid questionnaires, we got 147 from male employees (equivalent to 62%),

90 from female employees (equivalent to 38%) (figure 3). This exactly reflected the

labor structure of the company as well as the features of cement manufacturing industry

with actual labor rate between men and women is 60:40

147

90

0

20

40

60

80

100

120

140

160

Male Female

Series1

Figure 3: Sample structure by gender

4.1.2 Sample structure by age

In 237 valid questionnaires, if classifying by age, the group at the age from 26 to

35 had the biggest percentage of 51.1% (121 persons), the group at the age from 36 to

25

45 made up 44.3% (105 persons) and the last was the group at the age from 18 to 25 that

made up 4.6% (11 persons) (figure 4).

11

121

105

0

20

40

60

80

100

120

140

18 - 25 26 - 35 36 - 45

Series1

Figure 4: Sample structure by age

4.1.3 Sample structure by education level

The research results from 237 valid questionnaires showed that there were 78 persons at

university-level (equivalent to 32.9%), 96 persons at college and intermediate-level (equivalent

to 40.5%), and 63 persons at high school-level (equivalent to 26.6%) (figure 5).

78

96

63

0

20

40

60

80

100

120

Universiry Colleges High School

Series1

Figure 5: Sample structure by education level

4.1.4 Sample structure by work position

In 237 valid questionnaires, there were 68 employees working at the rock

quarrying factory (equivalent to 29.2%), 116 employees working at the cement

26

manufactoring factory (equivalent to 48.9%), and 52 persons working at the market

exploiting department (equivalent to 21.9%) (figure 6).

69

116

52

0

20

40

60

80

100

120

140

Rock quarryingfactory

Cementmanufactoring

factory

Marketexploiting

department

Series1

Figure 6: Sample structure by work position

4.1.5 Sample structure by income

In 237 obtained valid questionnaires, there were 107 employees who had income

from 3 mil. to 5 mil./ month (make up 45.1%), 122 employees had income from 5 mil.

to 10 mil./month (equivalent to 51.5%), 6 employees had income less than 3 mil./month

(equivalent to 2.5%) and two persons had income more than 10 mil./month (0.2%)

(figure 7).

6

107

122

20

20

40

60

80

100

120

140

< 3 mil 3 -5 mil 5 -10 mil >10 mil

Series1

Figure 7: Sample structure by income

27

4.2 The results from questionnaires Table 4: Result summary from Descriptive Statistics

Code N Minimum Maximum Mean Std. Deviation CV1 237 3.00 5.00 4.0211 .73903 CV2 237 2.00 5.00 4.0633 .65758 CV3 237 2.00 5.00 3.6287 .54975 CV4 237 2.00 5.00 3.5949 .63484 CV5 237 2.00 5.00 3.2785 .60932 CV6 237 2.00 5.00 4.0127 .69795 CV7 237 3.00 5.00 4.2574 .75717 DT1 237 2.00 5.00 3.6878 .53240 DT2 237 2.00 5.00 3.5570 .59118 DT3 237 3.00 5.00 3.9705 .83563 DT4 237 2.00 5.00 3.5274 .58611 DT5 237 2.00 5.00 3.5190 .66754 TN1 237 2.00 5.00 3.9367 .54482 TN2 237 2.00 5.00 3.5359 .63428 TN3 237 2.00 5.00 3.5823 .60941 TN4 237 2.00 5.00 3.7764 .55673 TN5 237 2.00 5.00 3.9620 .81993 TN6 237 2.00 5.00 3.7004 .59564 LD1 237 3.00 5.00 4.0380 .69702 LD2 237 2.00 5.00 3.5485 .53159 LD3 237 3.00 5.00 3.6920 .56191 LD4 237 3.00 5.00 4.0380 .64656 DN1 237 2.00 5.00 3.9156 .51384 DN2 237 2.00 5.00 3.4810 .63501 DN3 237 2.00 5.00 3.7553 .61687 DN4 237 2.00 5.00 3.4895 .58666 MT1 237 2.00 5.00 3.3586 .56940 MT2 237 2.00 5.00 3.6371 .57781 MT3 236 3.00 5.00 3.8008 .79263 MT4 237 2.00 5.00 3.3207 .51102 MT5 237 2.00 5.00 3.9662 .70630 TM1 237 2.00 5.00 4.0506 .76853 TM2 237 2.00 5.00 3.3882 .57596 TM3 237 2.00 4.00 3.0717 .37834 Valid N (listwise)

236

28

The obtained results showed that the answers were mostly at level 2 and level 3 in

the five point Likert scale, the highest level was at 5 (excluding the question number

TM3), the average value was greater than 3, some questions were at level 5, and the

standard deviation was quite small (less than 1). So we may initially conclude that the

satisfaction level of employees with job is quite good.

4.3 Scale verification

The implicit variables (factors) in the theoretical model before explore factor

analysis were tested their reliability. As mentioned in chapter 3, to test the reliability of

the scales, the author used Cronbach`s Alpha coefficient. The test standards are that

Cronbach`s Alpha coefficient must be at least 0.6 (Hair et al., 1998), and the total

correlation coefficient of variables also must be at least 0.3 (Nunally and Burstein,

1994). The results from scale verification for each factor are as follows:

4.3.1 Testing the reliability of the scales for factor “work”

The factor “work” in the research model is measured by seven observed variables

from CV1 to CV2. The results from testing the scales by SPSS 18.0 show that

Cronbach`s Alpha coefficient is 0.837 > 0.6, the total correlation coefficients of

observed variables are greater than 0.3 (table 5). If deleting variables from the scale,

Cronbach`s Alpha coefficient is still not higher, so we can conclude that the scales for

the factor “work” are reliable when being measured with seven observed variables from

CV1 to CV7.

Table 5: Item (CV)-Total Statistics

Scale Mean if Item Deleted

Scale Variance if Item Deleted

Corrected Item-Total Correlation

Cronbach's Alpha if Item Deleted

CV1 22.8354 8.316 .507 .829

CV2 22.7932 8.504 .544 .821

CV3 23.2278 8.397 .729 .798

CV4 23.2616 8.169 .675 .802

CV5 23.5781 9.245 .379 .844

CV6 22.8439 7.946 .658 .803

CV7 22.5992 7.648 .669 .801

29

4.3.2 Testing the reliability of the scales for factor “training and advancement

opportunities”

The factor “training and advancement opportunities” is measured by five observed

variables from DT1 to DT5. The results from testing scale by SPSS 18.0 show that

Cronbach`s Alpha coefficient is 0.760 >0.6, and the total correlation coefficients of

observed variables is 0.231<0.3. So to increase the reliability of the scales, we will

remove the item DT5 from the scales for the factor “training and advancement

opportunities”, then Cronbach`s Alpha will increase to 0.816>0.760 (table 6). So, to

ensure the reliability of the scales, this factor will be measured by four observed

variables from DT1 to DT4.

Table 6: Item (DT) -Total Statistics

Scale Mean if Item Deleted

Scale Variance if Item Deleted

Corrected Item-Total

Correlation

Cronbach's Alpha if Item

Deleted

DT1 14.5738 3.635 .732 .660

DT2 14.7046 3.828 .531 .716

DT3 14.2911 2.885 .642 .676

DT4 14.7342 3.671 .620 .688

DT5 14.7426 4.319 .231 .816

4.3.3 Testing the reliability of the scales for factor “salary”

The factor “salary” is measured by six observed variables from TN1 to TN6. The

results from testing the reliability of the scales for this factor by SPSS 18.0 show that

Cronbach`s Alpha coefficient is 0.769> 0.6, and the total correlation coefficient of the

variable TN2 is 0.293 <0.3. To increase the reliability of the scale, we will removed the

item TN2 from the scales for factor “salary”, at once, the Cronbach`s Alpha increases to

0.798 >0.769 (table 7). Therefore, to ensure the reliability of the scales, the factor

“salary” will be measured by five observed variables including TN1, TN3, TN4, TN5

and TN6.

30

Table 7: Item (TN) -Total Statistics

Scale Mean if Item Deleted

Scale Variance if Item Deleted

Corrected Item-Total Correlation

Cronbach's Alpha if Item Deleted

TN1 18.5570 5.121 .524 .735

TN2 18.9578 5.439 .293 .789

TN3 18.9114 4.666 .635 .705

TN4 18.7173 4.687 .710 .691

TN5 18.5316 4.191 .550 .732

TN6 18.7932 5.139 .450 .751

4.3.4 Testing the scales for factor “supervisor support”

The factor “supervisor support” is measured by four observed variables from LD1

to LD4. The results from testing the reliability of the scales for this factor by SPSS 18.0

show that Cronbach`s Alpha coefficient is 0.725 >0.6, and the total correlation

coefficient of the item LD2 is 0.165 <0.3, so the item LD2 is considered as a spam

variable and will be removed from the scale. When deleting LD2 from the scale,

Cronbach`s Alpha coefficient increases to 0.828>0.725 (table 8). So, to increase the

reliability of the scale, we will remove the item LD2 and the factor “supervisor support”

will be measured by three observed variables including LD1, LD3 and LD4.

Table 8: Item (LD) -Total Statistics

Scale Mean if Item Deleted

Scale Variance if Item Deleted

Corrected Item-Total Correlation

Cronbach's Alpha if Item Deleted

LD1 11.2785 1.626 .665 .562

LD2 11.7679 2.721 .165 .828

LD3 11.6245 2.049 .577 .631

LD4 11.2785 1.693 .703 .540

4.3.5 Testing the scales for factor “co-worker relations”

The factor “co-worker relations” is measured by four observed variables from

DN1 to DN4. The results from testing the reliability of the scales for this factor by SPSS

18.0 show that Cronbach`s Alpha coefficient is 0.597 <0.6, not satisfies the necessary

reliability. To improve the reliability of the scale, we will delete the item DN2 because

31

the total correlation coefficient of this item is 0.177<0.3, then Cronbach`s Alpha

coefficient will increase to 0.682 >0.6, satisfies the necessary reliability (table 9). Vso,

the factor “co-worker relations” will be measured by three observed variables including

DN1, DN3 and DN4.

Table 9: Item (DN)-Total Statistics

Scale Mean if Item Deleted

Scale Variance if Item Deleted

Corrected Item-Total Correlation

Cronbach's Alpha if Item Deleted

DN1 10.7257 1.658 .452 .479

DN2 11.1603 1.813 .177 .682

DN3 10.8861 1.381 .523 .401

DN4 11.1519 1.579 .405 .504

4.3.6 Testing the scales for factor “work conditions”

The factor “work conditions” is measured by five observed variables from MT1 to

MT5. The results from testing the reliability of scales for this factor by SPSS 18.0 show

that Cronbach`s Alpha coefficient is 0.698 >0.6, but the total correlation coefficient of

the item MT5 is 0.213<0.3, so MT5 is considered as a spam variable and will be

removed from the scale for factor “work conditions”. When deleting the item MT5 from

the scale, Cronbach`s Alpha coefficient increases to 0.756> 0.698 (table 10). So to

ensure the reliability of the scales, the factor “work conditions” will be measured by

four observed variables from MT1 to MT4.

Table 10: Item-Total Statistics

Scale Mean if Item Deleted

Scale Variance if Item Deleted

Corrected Item-Total Correlation

Cronbach's Alpha if Item Deleted

MT1 14.7203 3.113 .600 .595

MT2 14.4407 3.184 .544 .616

MT3 14.2754 2.890 .417 .678

MT4 14.7585 3.214 .638 .592

MT5 14.1102 3.571 .213 .756

32

4.3.7 Testing the scales for the dependent variable “general satisfaction”

The dependent variable “general satisfaction” is measured by three observed

variables from TM1 to TM3. The results from testing the reliability of scales for this

factor by SPSS 18.0 show that Cronbach`s Alpha coefficient is 0.716 > 0.6, and the total

correlation coefficients of observed variables are greater than 0.3 (table 11). If deleting

the item TM3, Cronbach`s Alpha coefficients will increase but not much and it will

violate the rule of minimum signal (question) for one factor, in other hand, we must

even sacrifice one aspect of the factor. Therefore, the factor “general satisfaction” is still

measured by three observed variables from TM1 to TM3 and satisfies the necessary

reliability.

Table 11: Item (TM) -Total Statistics

Scale Mean if Item Deleted

Scale Variance if Item Deleted

Corrected Item-Total Correlation

Cronbach's Alpha if Item Deleted

TM1 6.4599 .682 .604 .607

TM2 7.1224 .904 .733 .377

TM3 7.4388 1.518 .405 .785

4.3.8 Result summary of scale verification

To facilitate the viewing of research results, we will summarize obtained results as

following table:

Table 12: The result summary of scale verification in the model

No. Factor (independent variable) Cronbach`s Alpha coefficient

Number of observed variables

1 Work 0.837 7

2 Training and advancement opportunities 0.816 4

3 Salary 0.798 5

4 Supervisor support 0.828 3 5 Co-worker relations 0.682 3

6 Work conditions 0.756 4

7 General satisfaction 0.716 3

33

4.4 Factor analysis

After testing scale reliability for each factor with Cronbach`s Alpha, the scales

were continuously tested by the method of explore factor analysis (EFA). The Principal

components with Varimax rotation would be applied to ensure the minimum number of

factors (Hoang Trong and Chu Nguyen Mong Ngoc, 2008). For this study, EFA was

simultaneously analyzed with the independent variables, and the dependent variable was

particularly analyzed. The analysis standards here are that factor loading coefficient

must be greater than 0.5, eigenvalue must equal to or be greater than 1, the variance

extracted must equal to at least 50%, KMO coefficient >0.5, and Bartlett has p-value

(sig.) <0.05. Then we got the results as follows:

4.4.1 Factor analysis with the independent variables

From the obtained actual data, we did EFA with the independent variables by

SPSS 18.0 (after spam items deleted) in the first time and got the results as follows:

The KMO coefficient is 0.918 >0.5, Bartlett-test has p-value =.000<0.05, the

variance extracted is 68.799%, factor loading coefficients are greater than 0.5 (table 13),

however, the item CV5 forms one new factor that does not ensure the reliability of the

factor, so this item (CV5) will be removed from the research model.

34

Table 13: The first Rotated Component Matrixa)

Component 1 2 3 4 5

DT3 .806 MT4 .800 CV1 .779 MT1 .727 TN5 .719 DT4 .711 MT3 .711 DT2 .660 CV7 .659 DN4 .653 CV4 .612 CV3 .600 DT1 .552 MT2 .536 .513 LD1 .859 LD4 .812 CV2 .704 LD3 .701 TN1 .687 TN4 .654 CV6 .533 DN1 .685 DN3 .631 CV5 .849 TN6 .726 TN3 .521 Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.

a. Rotation converged in 9 iterations.

We continue doing EFA in the second time after item CV5 deleted and get the

results that the observed variables form four new factors, the factor loading coefficient

of the item TN3 is 0 and the item TN6 forms one factor, so we will remove the item

TN3 and TN6 from the research scale.

35

Doing EFA in the third time after the items TN3 and TN6 deleted gets the results

that observed variables form three factors (table 14), factor loading coefficients are

greater than 0.5, KMO coefficient = 0.917 >0.5, Bartlett-test has p-value = .000<0.05,

the variance extracted is 63.866%. So, the observed variables form three factors and

explain 63.307% of the variability of the total variable.

Table 14: The third Rotated Component Matrixa)

Component 1 2 3

MT4 .849 MT3 .845 CV1 .742 MT1 .737 TN5 .736 DN4 .701 DT3 .692 DT4 .618 DT2 .611 CV7 .599 .524 LD1 .883 LD4 .817 TN1 .725 DN1 .647 TN4 .627 LD3 .620 CV2 .579 .541 CV6 .707 DT1 .601 CV4 .526 .545 CV3 .528 Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. a. Rotation converged in 6 iterations.

4.4.2 Factor analysis with the factor “general satisfaction”

The results from testing by EFA with the dependent variable “general satisfaction”

show that observed variables form one factor, KMO coefficient = 0.578>0.5, Bartlett-

test has p-value = .000 <0.05, factor loading coefficients are greater than 0.5, the

variance extracted is 65.933%. So, the scale for factor “general satisfaction” is a

unidirectional scale and form only one factor (table 15).

36

Table 15: Rotated Component Matrixa) of the factor “general satisfaction”

Component

1 TM2 .904 TM1 .829 TM3 .688 Extraction Method: Principal Component Analysis. a. 1 components extracted.

4.5 Naming and adjusting the research model

4.5.1 Naming the first factor

Results from testing EFA with the independent variables show that the observed

items including MT4, MT3, CV1, MT1, TN5, DN4, DT3, DT4 and DT2 in the first

factor are unidirectional scales, the observed variables CV7 and CV4 are

multidirectional scales and also belong to both the first factor and the third factor.

However, when considering the meaning of factor, we sort them into the factor number

3. So, the first factor consists of following items:

1. You are sufficiently provided work equipments (MT4)

2. You work under safe conditions (MT3)

3. The work suits your capacity and professional skills (CV1)

4. The working environment is clean and hygiene (MT1)

5. Employees can live on their income (TN5)

6. Co-workers are trustworthy in work (DN4)

7. Promotion opportunities for capable people (DT3)

8. Opportunities for personal growth (DT4)

9. Opportunities to improve professional skills (DT2)

When considering the meaning of these items, we see that they mostly have

meaning belonging to “work conditions”, “advancement opportunities”, so we will

name the new factor as “work conditions and advancement opportunities”.

37

4.5.2 Naming the second factor

The results from testing show that the second factor is built by observed variables

including LD1, LD4, TN1, DN1, TN4, LD3, and CV2. In which, the item CV2 is a

multidirectional scale, belongs to not only factor 2 but also factor 3. However, when

considering its meaning, we sort it into the factor 3. So, the new factor is measured by

the following observed variables:

1. The supervisors care about their subordinates (LD1)

2. Supervisors have capacity, vision and good leadership skills (LD4)

3. Equitable distribution of salary, bonuses and pension (TN4)

4. Co-workers are often willing to help each other (DN1)

5. Salary is proportional to the abilities and contributions (TN1)

6. Supervisors treat everyone equally (LD3)

If considering the meaning, these items have meaning related on the factor

“supervisor”, “equal salary distribution”, so we name the new second factor as

“Supervisor and equal salary distribution”.

4.5.3 Naming the third factor

The results from testing EFA show that the new third factor is built by observed

variables including CV7, CV2, CV6, DT1, CV4, CV3. In which, the two items CV2 and

CV7 are multidirectional scales, belong to both factor 1 and the factor 2, but when

considering its meaning we sort them into the third factor. So the third factor is

measured by observed variables as follows:

1. Working time is appropriate (CV7)

2. Employees understand clearly about job (CV2)

3. Work quantity is reasonable (CV6)

4. Fully trained professional skills (DT1)

5. Motivating creativity at work (CV4)

6. Work allows employees to have opportunities for using their individual abilities

(CV3)

38

If considering the meaning, these items have meaning related to the factors “work”

and “professional training”, so we name this new factor as “Work and professional

training”.

4.5.4 Adjusting the research model

Through testing scale by EFA, we will adjust the original theoretical research

model into following model:

Figure 8: The adjusted research model

And the study gives out following new research hypotheses:

H1: The factor “work conditions and advancement opportunities” positively

affects general satisfaction of employees with job.

H2: The factor “supervisor and equal salary distribution” positively affects

general satisfaction of employees with job.

H3: The factor “work and professional training” positively affects general

satisfaction of employees with job.

4.6 The correlation between variables

To consider the correlation between factors in the research model, before building

the regression function by the method of ordinary least squares (OLS), we consider the

Work conditions and advancement opportunities

Supervisor and equal salary distribution Job satisfaction

Work and professional training

H1

H2

H3

39

correlation between them by using Pearson correlation coefficient, and get the results as

follows:

Table 16: Pearson correlation coefficient between variables

F1 F2 F3 TM

F1

Pearson Correlation 1 .335** .647** .769**

Sig. (2-tailed) .000 .000 .000

N 237 237 237 237

F2

Pearson Correlation .335** 1 .663** .499**

Sig. (2-tailed) .000 .000 .000

N 237 237 237 237

F3

Pearson Correlation .647** .663** 1 .613**

Sig. (2-tailed) .000 .000 .000

N 237 237 237 237

TM

Pearson Correlation .769** .499** .613** 1

Sig. (2-tailed) .000 .000 .000

N 237 237 237 237

**. Correlation is significant at the 0.01 level (2-tailed).

In which:

F1 is the factor “work conditions and advancement opportunities”

F2 is the factor “supervisor and equal salary distribution”

F3 is the factor “work and professional training”

TM is the dependent variable “general satisfaction”

The results of correlation analysis show that there is the correlation between

independent variables with each other and between independent variables and the

dependent variable TM (general satisfaction) (see table 16). So when building the

regression function, we consider the correlation and the multicollinearity in the model.

40

4.7 Building the regression function

4.7.1 Building the regression function by Enter

To test the research hypotheses, the author builds the multicollinearity regression

function between the independent variables F1, F2 and F3 on the dependent variable

TM. The estimated results by SPSS 18.0 are collected by the method of OLS as follows:

Table 17: Summary of regression results by Enter

Model R R Square Adjusted R Square

Std. Error of the Estimate

Durbin-Watson

1 .811 .657 .653 .28042 2.159

Table 18: Variance analysis of estimates (ANOVA) by Enter

Model Sum of Squares df Mean

Square F Sig.

1

Regression 35.147 3 11.716 148.986 .000

Residual 18.322 233 .079

Total 53.469 236

Table19: Estimated Beta coefficient of the model by Enter

Model Unstandardized

Coefficients Standardized Coefficients t Sig.

Collinearity Statistics

B Std. Error Beta Tolerance VIF

1

(Constant) .079 .179 .442 .659

F1 .636 .047 .686 13.453 .000 .566 1.767

F2 .295 .055 .279 5.372 .000 .545 1.833

F3 -.015 .061 -.015 -.240 .810 .357 2.799

a. Dependent Variable: TM

Then, the multicollinearity regression function is described as follows (table 19):

TM = 0.079+ 0.636F1 + 0.295F2 – 0.015F3.

In which:

41

TM is the factor “general satisfaction”

F1 is the factor “work conditions and advancement opportunities”

F2 is the factor “supervisor and equal salary distribution”

F3 is the factor “work and professional training”

4.7.2 Testing the suitability of the research model

The regression function is built by the Ordinary least squares, so before testing

and concluding the research hypotheses, we must consider if the regression function

violates the hypotheses of OLS method or not. The contents in detail are:

● testing the violation of the linear dependence between residuals of independent

variables

To test the violation of the linear dependence between residuals of independent

variables, we use Scatterplot graph to detect signals of the estimated function if it is

appropriate or not. The results from Scatterplot graph show that the residuals of

independent variables do not distribute according to any rules. Thus, the hypothesis of

the linear dependence between independent variables does not violate.

Figure 9: Scatterplot

● testing the violation of heteroscedasticity of the residuals

42

To test the violation of heteroscedasticity of the residuals, we use Spearman's rank

correlation with the corresponding p-value, standard reliability coefficient is 95%. The

obtained results of Spearman’s rank analysis are as follows:

Table 20: Spearman’s rank correlation

F1 F2 F3 TM

Spearman's rho

F1

Correlation Coefficient

1.000 .327** .648** .794**

Sig. (2-tailed) . .000 .000 .000

N 237 237 237 237

F2

Correlation Coefficient

.327** 1.000 .641** .443**

Sig. (2-tailed) .000 . .000 .000

N 237 237 237 237

F3

Correlation Coefficient

.648** .641** 1.000 .585**

Sig. (2-tailed) .000 .000 . .000

N 237 237 237 237

TM

Correlation Coefficient

.794** .443** .585** 1.000

Sig. (2-tailed) .000 .000 .000 .

N 237 237 237 237

**. Correlation is significant at the 0.01 level (2-tailed). From the Spearman table, we see that there are no variables have p-value greater

than 0.05 (table 20), so with the reliability coefficient of 95%, we can conclude that the

estimated regression function does not violate the hypothesis that there is the error

variance of residuals in the model.

● testing the residual normal distribution

The hypothesis of OLS method gives out that the residuals must follow the normal

distribution rule, if not, the estimated model is not the best model, and its function will

43

be not appropriate. To test the residual normal distribution, we use Histogram and P-

plot graphs.

Figure 10: Histogram of standardized residual

Figure 11: Normal P-P lot of standardized residual

44

From the Histogram graph, the distribution of residuals is the near-normal

distribution, the left deviation of average value of residuals is approximately 0, and the

normal deviation is approximately 1. In other hand, P-plot graph also shows that,

observed values are quite close to the expected curve, so we can accept the hypothesis

that the residual distribution is normal distribution, and there is no violation of the

residual normal distribution.

● testing the autocorrelation

With the sample size n =237, p=3, when checking Durbin Watson we get dL =

1.738, dU =1.799, d value is dobv = 2.159 (table 18) =>dU < dobv < 4-dU. We can

conclude here that there is no autocorrelation in the model.

● testing the multicollinearity

To test the multicollinearity in the model, we use the variance inflation factor

(VIF).

If VIF <10: the model has no multicollinearity

If VIF > = 10 the model has multicollinearity

From the results of regression analysis, we see that observed VIF values are less

than 10 (table 19), so we can conclude that the multicollinearity has influence on the

estimated model.

In other hand, p-value of F-statistics in the variance analysis is .000<0.05 (table

18), so we can also conclude here that the research model is reliable, and all hypotheses

of OLS are satisfied.

4.7.3 Testing the research hypotheses

● testing the hypothesis H1: The factor “work conditions and advancement

opportunities” positively affects general satisfaction of employees with job. That means,

Beta coefficient of variable F1 must be positive. The estimated results show that the

corresponding p-value is .000<0.05 (table 20), so with the reliability coefficient = 95%,

we can conclude that the independent variable F1 has positive impact (Beta >0) on the

dependent variable TM. In other words, we accept the hypothesis H1.

● testing the hypothesis H2: The factor “supervisor and equal salary distribution”

positively affects general satisfaction of employees with job, means that Beta coefficient

45

of the independent variable F2 must be positive. The estimated results show that p-value

of corresponding t-statistics is .000<0.05. So we can conclude that with the reliability

coefficient = 95% , the independent variable F2 has positive influence on the dependent

variable TM (Beta >0). In other words, we accept the hypothesis H2.

● Testing the hypothesis H3: The factor “work and professional training”

positively affects general satisfaction of employees with job. It means the Beta

coefficient of the independent variable F3 must be positive. The estimated results show

that p-value of corresponding t-statistics is 0.810>0.05, so with the reliability coefficient

= 95% we can conclude that the independent variable F3 has no impact on the

dependent variable TM (Beta = 0). In other words, we reject the hypothesis H3.

4.7.4 Retesting the research model by Stepwise

To retest the regression function, we use Stepwise method. The estimated results

by Stepwise are as follows:

Table 21: Summary of information of the model by Stepwise

Model R R Square Adjusted R Square

Std. Error of the Estimate Durbin-Watson

1 .769 .592 .590 .30469

2 .811 .657 .654 .27986 2.163

Table 22: Variance analysis by Stepwise

Model Sum of Squares df Mean Square F Sig.

1

Regression 31.652 1 31.652 340.939 .000a

Residual 21.817 235 .093

Total 53.469 236

2

Regression 35.143 2 17.571 224.354 .000b

Residual 18.327 234 .078

Total 53.469 236

a. Predictors: (Constant), F1

b. Predictors: (Constant), F1, F2 c. Dependent Variable: TM

46

Table 23: Beta coefficient of variables by Stepwise

Model Unstandardized

Coefficients Standardized Coefficients t Sig.

Collinearity Statistics

B Std. Error Beta Tolerance VIF

1 (Constant) .888 .143 6.211 .000

F1 .713 .039 .769 18.465 .000 1.000 1.000

2

(Constant) .079 .179 .445 .657

F1 .629 .038 .678 16.702 .000 .888 1.127

F2 .287 .043 .271 6.676 .000 .888 1.127

a. Dependent Variable: TM The estimated results by Stepwise show no differences compared with the results

by Enter after F3 deleted, and there are only two variables F1, F2 that have meaning. So

the final regression function is:

TM = 0.079 + 0.629F1 + 0.271F2.

In which:

TM is the factor “general satisfaction”

F1 is the factor “work conditions and advancement opportunities”

F2 is the factor “supervisor and equal salary distribution”

R-square value is 0.654 (table 20), means that the variables F1 and F2 explain

65.4% of the variability of the variable TM. This value is appropriate and acceptable. P-

value of F-statistics is .000<0.05, so with the reliability coefficient = 95% we may

generate to the overall from the actual data.

4.7.5 The importance of independent variables

The regression function is determined as: TM = 0.079 + 0.629F1 + 0.271F2, in

which the importance of each factor is different from each other. Which factor has

higher Beta coefficient, its affect on the variability of the variable TM will be stronger.

The results show that Beta coefficient of F1 is 0.629, of F2 is 0.271, so we can conclude

that the variable F1 is the most important factor, next is the variable F2. In other words,

the influence on general satisfaction of employees of the factor “work conditions and

47

advancement opportunities” is strongest, next is the effect of the factor “supervisor and

equal salary distribution”.

4.8 The differences between subtotals

4.8.1 Testing the average of the subtotal

The investigation results on the total show that the variable F1 “work conditions

and advancement opportunities” has average value = 3.66. However, this value is just

the sample value, and we do not know if it can be used for the total or not? To test this,

we use T-Test with the comparison value = 3.66, and get the results as follows:

Table 24: One-Sample Test with the variable F1

Test Value = 3.66

t Df Sig.

(2-tailed) Mean

Difference

95% Confidence Interval of the Difference

Lower Upper F1 .233 236 .816 .00778 -.0579 .0735

The results show that p-value = 0.816 >0.05, so we can not reject the hypothesis

that the average of the subtotal is 3.66. If we accept this hypothesis, the possibility of

error is 81.6%.

For the variable F2, the results show that its average value is 3.899, however, this

value is also the sample value, and we do not know if it can be used for the total or not. To

test this, we use T – Test with the comparison value = 3.899, and get following result:

Table 25 One-Sample Test with the variable F2

Test Value = 3.899

t Df Sig.

(2-tailed) Mean

Difference

95% Confidence Interval of the Difference

Lower Upper F2 .015 236 .988 .00044 -.0572 .0581

The result shows that p-value = 0.988 >0.05, so we can not reject the hypothesis

that the average value of subtotal of F2 is 3.899. If rejecting this hypothesis, the

possibility of error is 98.8%.

48

For the dependent variable TM, the results show that the average value is 3.5, and

this value is also the sample value, we do not know if it can be used for the total or not,

so to test this, we use T-Test with the comparison value = 3.5, an get the results as

follows:

Table 26: One-Sample Test with the variable TM

Test Value = 3.5

t Df Sig. (2-tailed) Mean Difference

95% Confidence Interval of the Difference

Lower Upper TM .114 236 .910 .00352 -.0574 .0644

The tested results show that p-value =0.91>0.05, so we can not reject the

hypothesis that the average of the total of variable TM is 3.5. If rejecting this

hypothesis, the possibility of error is 91%.

4.8.2 Testing the differences between groups of male and female employees

To test the differences on job satisfaction between groups of male and female

employees, we use Independent Samples Test, and get the results as follows:

49

Table 27: Independent Samples Test

For the variable F1, Levane-test has p-value =0.017<0.05, so we can not reject the

hypothesis that the variance of these two groups is different. Moreover, we also use the

results from t-statistics in the part “Equal variances not assumed”, p-value of t-statistics

is 0.923 >0.05, then we can conclude that there are no differences between groups of

male and female employees on the variable F1.

For the variable F2, Levane-test has p-value = 0.213>0.05, so we can reject the

hypothesis that the variance of these two groups is different. We also use the results of

t-statistics from “equal variances assumed”, p-value of t-statistics is 0.778>0.05. So we

can conclude that there are no differences between these two groups on the variable F2.

Levene's Test for

Equality of Variances

t-test for Equality of Means

F Sig. t df Sig. (2-

tailed)

Mean Differe

nce

Std. Error

Difference

95% Confidence Interval of the

Difference Lower Upper

F1

Equal variances assumed

5.816 .017 -.100 235 .920 -.00691 .06889 -.14263 .12880

Equal variances not assumed

-.097 167.292 .923 -.00691 .07139 -.14784 .13402

F2

Equal variances assumed

1.441 .231 .282 235 .778 .01701 .06039 -.10196 .13598

Equal variances not assumed

.287 200.059 .774 .01701 .05922 -.09977 .13378

TM

Equal variances assumed

.188 .665 .369 235 .712 .02358 .06382 -.10216 .14932

Equal variances not assumed

.372 192.040 .710 .02358 .06343 -.10153 .14870

50

For the dependent variable TM, Levane-test has p-value = 0.665>0.05, so we can

reject the hypothesis that the variance of these two groups is different. We also use the

results of t-statistics from “equal variances assumed”, p-value of t-statistics is

0.712>0.05. Therefore, we can conclude here that there are no differences between

groups of male and female employees on “general satisfaction”.

4.8.3 Testing the differences between groups of different age

To test the differences between groups of different age, we use analysis of

variance method (ANOVA), and get the results as follows:

Table 28: Variance analysis (ANOVA) by age

Sum of Squares df Mean Square F Sig.

F1

Between Groups 9.706 2 4.853 21.610 .000

Within Groups 52.549 234 .225 Total 62.255 236

F2

Between Groups .874 2 .437 2.176 .116

Within Groups 46.980 234 .201 Total 47.853 236

TM

Between Groups 6.259 2 3.129 15.510 .000

Within Groups 47.211 234 .202 Total 53.469 236

For the variable F1, F-test between groups has p-value = .000<0.05, so there are

differences on the variable F1 between groups of different age. Post Hoc Test with

Tamhane, Dunnett T3 values shows the differences between group at the age from 18 to

25, the group at the age from 26 to 35 and the group at the age from 36 to 45. Between

the groups at the age from 18 to 25 and from 26 to 35, there is no meaningful difference.

This is reflected in the graph of average value comparison between groups.

51

Figure 12: Dynamics of average response F1 by age

For the variable F2, F-statistics has p-value = 0.116 >0.05, so there are no

differences between groups of different age on the variable F2. This is also described in

the graph: the three average values have a very small deviation.

Figure 13: Dynamics of average response F2 with age

For the dependent variable TM, F-statistics between groups has p-value

=.000<0.05, so there are differences between groups of different age on the dependent

variable TM. Post Hoc with Tamhene and Dunnett T3 values shows that there are

differences between the groups at the age from 18 to 25; from 26 to 35 and the group at

52

the age from 36 to 45. Between the group at the age from 18 to 25 and the group at the

age from 26 to 35, there are no meaningful differences. This is also described in the

graph: the average values of these two groups have a very small deviation, while the

deviation between these two groups and the group at the age from 36 to 45 is quite big.

Figure 14: Graphs the average response dependent variable TM with age

4.8.4 Testing the differences between groups of different education level

To test the differences between groups of different education level, we use

Variance analysis method (ANOVA) and get the results as follows:

Table 29: Variance analysis (ANOVA) by education level

Sum of Squares df Mean Square F Sig.

F1 Between Groups 28.816 2 14.408 100.825 .000 Within Groups 33.439 234 .143 Total 62.255 236

F2

Between Groups .326 2 .163 .804 .449

Within Groups 47.527 234 .203 Total 47.853 236

TM Between Groups 14.144 2 7.072 42.083 .000 Within Groups 39.325 234 .168 Total 53.469 236

For the variable F1, F-statistics between groups has p-value =.000 <0.05, so there

are differences between groups of different education level. Post Hoc Test with

53

Tamhane and Dunnett T3 values shows that between the groups at high school-level, at

college and intermediate-level and at university-level, there are differences. This is also

reflected in the graph: the average values between these three groups have a significant

deviation.

Figure 15: The answer the F1 variable according to the average level of education

For the variable F2, F-statistics between groups has p-value = 0.449 >0.05, so we

can conclude that for the variable F2, there are no meaningful differences between

groups of different education level. This is also reflected in the graph: three average

values of these three groups have a very small deviation.

Figure 16: The answer the F2 variable according to the average level of education

54

For the dependent variable TM, F-statistics between groups has p-value =

.000<0.05, so we can conclude here that there are differences between groups of

different education level on the dependent variable TM. Post Hoc Test with Tamhane

and Dunnett T3 values shows the differences between these three groups. This is

reflects in the graph that: the average values of three groups have a significant

deviation.

Figure 17: The average response dependent variable TM in education

4.8.5 Testing the differences between groups of different work position

To test the differences between groups of different work position, we use Variance

analysis method (ANOVA) and get the results as follows:

Table 30: Variance analysis by work position

Sum of Squares df Mean Square F Sig.

F1 Between Groups 48.057 2 24.029 396.032 .000 Within Groups 14.198 234 .061 Total 62.255 236

F2 Between Groups 21.218 2 10.609 93.205 .000 Within Groups 26.635 234 .114 Total 47.853 236

TM Between Groups 26.084 2 13.042 111.438 .000 Within Groups 27.386 234 .117 Total 53.469 236

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For the variable F1, F-statistics between groups has p-value = .000<0.05, so we

can conclude that there are differences between groups of different work position. Post

Hoc Test with Tamhane and Dunnett T3 values also shows the differences between

these groups. This is reflected in the graph: the average values of these groups have a

significant deviation.

Figure 18: The average response variables F1 work placement

For the variable F2, F-statistics between groups has p-value =.000<0.05, so we can

conclude that there are differences between groups of different work position. Post Hoc

Test with Tamhane and Dunnett T3 values also shows the differences between these three

groups. This is reflected in the graph the deviation of these three groups is quite big.

Figure 19: The average response variable F2 work placement

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For the dependent variable TM, F-statistics between groups has p-value

=.000<0.05, so we can conclude here that there are differences between groups of

different work position on the variable TM (general satisfaction). Post Hoc Test with

Tamhane and Dunnett T3 values also shows the differences between these groups. This

is reflected in the graph: the average values of these groups have a certain deviation.

Figure 20: The average response variables F1 work placement

4.8.6 Testing the differences between groups of different income

To test the differences between groups of different income, we use Variance

analysis method (ANOVA) and get the results as follows:

Table 31: Variance analysis with the variable “income”

Sum of Squares Df Mean Square F Sig.

F1 Between Groups 17.836 3 5.945 31.186 .000 Within Groups 44.419 233 .191 Total 62.255 236

F2 Between Groups 5.986 3 1.995 11.104 .000 Within Groups 41.867 233 .180 Total 47.853 236

TM Between Groups 7.259 3 2.420 12.200 .000 Within Groups 46.210 233 .198 Total 53.469 236

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For the variable F1, F-statistics between groups has p-value =.000<0.05, so we can

conclude that there are differences between groups of different income. Post Hoc Test

with Tamhane and Dunnett T3 shows that there are no differences between the group of

income less than 3mil./month and group of income from 3mil. to 5 mil./month. But

between the rest groups with each other and between the rest groups with these two

groups, there are differences. This is also reflected in the graph:

Figure 21: The average response variables F1 income level

For the variable F2, F-statistics between groups has p-value = 0.000<0.05, so we

can conclude that there are differences between groups of different income on the

variable F2. Post Hoc Test with Tamhane and Dunnett T3 values also shows the

differences between these groups. And this is reflected in the following graph:

Figure 22: The average response variable F2 income level

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For the dependent variable TM, F-statistics between groups has p-value =

.000<0.05, so there are differences between groups of different income on the variable

TM. Post Hoc Test with Tamhane and Dunnett T3 values also shows that there are no

differences between groups of income less than 5mil./month, but the groups of income

more than 5mil./month with each other and with the groups of income less than

5mi./month. The graph describes as follows:

Figure 23: The average response dependent variable TM income

4.9 Detections of the research

From the data analysis results, when applying JDI in testing the research scales

(investigation questions) in the research conditions of Hai Duong province, the scale

form new factors. It means that, different cultural environment, different research time,

and in different fields will affect employee feelings about job as well as employee

satisfaction on job. Some factors have influence in this cultural environment but not in

different environment or the understanding about each factor has differences between

different cultures. The results also show that the factor “general satisfaction” is directly

affected by (1) “work conditions and advancement opportunities”, (2) “supervisor and

equal salary distribution”. Moreover, the research results also show that there are no

differences between groups of male and female employees on “general satisfaction” and

other factors. However, there are differences between groups of different education

level, different age, different work position and different income. This table below is the

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summary of research hypotheses testing results and the figure of the impact between

factors.

Table 32: Summary of research hypotheses testing results

Hypothesis Contents Result

H1 The higher the satisfaction level on “work conditions and advancement opportunities” is, the more satisfied employees get.

Accept

H2 The higher the satisfaction level on “supervisor and equal salary distribution” is, the more satisfied employees get

Accept

H3 The higher the satisfaction level on “work and professional training” is, the more satisfied employees get

Reject

Figure 24: The relationship between factors

Work conditions and advancement opportunities

Supervisor and equal salary distribution

Job satisfaction

0.629***

0.2712***

R-square = 0.654***

Work and professional training ( Not statistically significant)

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CHAPTER 5 CONCLUSIONS AND SUGGESTIONS This chapter will present main results, suggestions and recommendations based on

the obtained actual data. At once, the author also gives some important distributions,

directions for further researches as well as limitations of the study. The contents in

detail are as follows:

5.1 Conclusions

The research results helped the author answer two important questions that were

proposed in the research purposes. They were: (1) which factors affect employee

satisfaction with job?, and (2) How is the impact intensity of each factor on the

satisfaction with job of employees at Trung Hai Haiduong cement Joint Stock

Company?

For the first question, the research results showed that in the research conditions of

a cement manufacturing company, all factors in the original model of Smith (1969)

formed new factors. In detail, employee satisfaction with job is directly affected by two

following factors: (1) “work conditions and advancement opportunities”, (2) “supervisor

and equal salary distribution”.

For the second question, the research results showed that these two factors have

positive impact on employee satisfaction with job, however, their impact intensity is

different. The factor “work conditions and advancement opportunities” has stronger

influence (Beta coefficient = 0.629), and the factor “supervisor and equal salary

distribution” has lower impact level (Beta coefficient = 0.271). These two factors

explain 65.7% of the variability of the dependent variable “job satisfaction”.

The results also showed that the evaluation of employee satisfaction on job is at a

good level with the average point = 3.5 in the five point Likert scale. It is a signal for

the company to see that its labor training programs and policies are well assessed, and

their employees feel pretty satisfied with job.

We also see from the research results that there are no differences between groups

of male and female employees on job satisfaction. However, there are differences

between groups of different age, different education level, different work position and

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different income. The study showed the positive influence of two new independent

variables on the dependent variable TM.

5.2 Recommendations

The research results showed that at this time, the employees of the company feel

satisfied with their job, so the company must at least keep this success and continues to

improve more and more the satisfaction of employees. Through the results, there are

two factors affecting employee satisfaction including “work conditions and

advancement opportunities” and “supervisor and equal salary distribution”, so the

improvement of employee satisfaction must be derived from these factors. The author

suggested some solutions as follows:

1. Policies of safe work conditions for employees: For a cement manufacturing

industry with toxic work environment, high work intensity and many risks of labor

safety, the company needs to abide by the regulations on labor protection equipment,

labor safety for the employees in the manufacturing process, especially employees at

rock quarrying factory and cement manufacturing factory. In addition, the company

needs to build standards of labor protection equipment, safe working conditions,

sanitary conditions. That will be uniformly applied at the company.

2. Policies of HR development. Every employee has needs of individual career

development opportunities, so the company must have appropriate policies of HR

development and create opportunities for qualified individuals to promote in their career

ladder such as: skills development programs, professional training courses, a working

environment with many positive challenges. The policies of HR development must

ensure the justice, equal competitiveness opportunities for every employee, and make

them feel motivated in job.

3. Policies of living standard guarantee for employees. Policies of salary and

reward must be equal, satisfactory and can ensure the living standard of employees. The

comparison of salary with other companies in the labor market shows that the current

salary of the company’s staff is just more than the average salary level, so the company

must consider their payment for employees. To encourage in order to increase labor

productivity of the employees, the policies of salary and reward must be clear,

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transparent and base on employee distributions on general outcome of the company. For

example, the manufacturing factory will build salary policies based on employee

capacity of processing products, combining labor productivity and salary distribution.

For the sales group, salary must be paid based on the capacity of sales achievement of

sales department and of individuals.

4. Policies of supervisor support: The supervisors of the departments need to show

their caring about their staff. The leadership promotion mechanism of the company also

must base on their capacity, vision and good leadership skills. Supervisors need to treat

everyone equally. To get that, it is very necessary for the company to build a strong and

good organizational culture. Because when creating a strong organizational culture,

everyone in the company can share core values, sympathy and do a good job.

5. Policies of equal salary distribution: The principles for policies of salary and

reward are transparency and fairness. Employees at the same work positions need to be

paid equally. In addition, the policies of salary and reward must also base on the ability

to compete in the labor market to prevent the labor drain of the company.

5.3 Contributions and the importance of the research

5.3.1 Contributions

The research purposes are to explore, detect factors that affect employee

satisfaction on job. This is a research field that has been done in many countries, not

much in Vietnam, especially in Hai Duong province, so the author thinks that the study

will be one of initial researches in Vietnam contributing in retesting the Job Descriptive

Index (JDI) in another culture and in a specific company. Another contribution of the

study is to create basics for further researches to adjust and select better factor in the

research model.

5.3.2 The importance of the research

● in the domain of learning, the application of an old research model from

previous researches in a new study with different research conditions will have certain

changes because there are differences between different culture. So, the research model

must be adjusted through the step of qualitative research before applying it in the

research.

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● in the domain of reality, the study also helps managers and administrators of the

company answer the questions about which factors affecting employee satisfaction with

job and how they influence. Moreover, the research results also suggest directions and

solutions for the company to improve the satisfaction level of the employees with job.

5.4 Limitations

As other previous researches, this study also has certain limitations as follows:

Firstly, the research is limited in the scope of a company, and at manufacturing

factories, so it cannot answer the question about general satisfaction of all employees in

Hai Duong province or in other companies in Vietnam. To generate to the overall, the

studies in this field need to be done in different time to test the other trends.

Secondly, due to the limitations of time and cost, the study has still not made the

deep interview with students (interviewees) after the quantitative research to detect

more inside information that do not contain in the close questions.

Thirdly, the study selected samples according to the non-probability sampling

method, so it cannot assess the influences of sampling errors on the research results.

Therefore, the reliability and representative of the research model are limited.

5.5 Directions for further researches

From these limitations of this study, the author proposes the directions for further

research.

Firstly, the study should expand the research objects including the employees at

other work positions, other fields to define the general trend of employees in job

satisfaction.

Secondly, to increase the ability of generating results to overall, further researches

should extend the research scope to increase the reliability of the research model, and to

adjust the suitability of the scales. Further researches can also use the probability

sampling method to increase the representative and generality of the research model.

Thirdly, further researches can also add other important factors into the research

model to further enhance the explanatory power of the model and be consistent with

new research conditions.

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And the last one, because this study was done at a time, so its explanation ability

in the long-run is limited. To improve this, further researches should be done in

different times and analyze the research model in the long-run in order to evaluate how

the factors impact in the model.

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APPENDIX QUESTIONNAIRE

Introduction

Dear Respondents

I am Nguyen Trong Dieu, a Master student in the faculty of Business

Administration, at Shu-Te University, Kaohsiung, Taiwan. At this time, I am doing

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Master’s thesis research with the title: “Employee Job Satisfaction Survey at Trung

Hai Haiduong Cement Joint Stock Company , Vietnam” under the direction of ……..

To complete this thesis, I really need your helps by answering questions of the

questionnaire. I promise that your name and any of the information you provide will be

kept strictly confidential and will not be attributed to the individual or organization. All

responses will be stored in a secure environment. The results of this research would be

used for academic purposes only. If you need to know about research results, please

contact me via email address ……..

2. Contents of questions

Please rate the extent to which you agree with each statement below. (Circle the

number that best indicates for each statement). In which::

Strongly disagree

Disagree

Neutral

Agree

Strongly agree

No. Code Contents of question Agreement level I Work itself

1 CV1 The work suits your capacity and professional skills. 1 2 3 4 5 2 CV2 Employees understand clearly about job. 1 2 3 4 5

3 CV3 Work allows employees to have opportunities for using their individual abilities. 1 2 3 4 5

4 CV4 Motivated to have creativity at work. 1 2 3 4 5 5 CV5 Job has much fun and challenges. 1 2 3 4 5 6 CV6 The workload of job is reasonable. 1 2 3 4 5 7 CV7 Working time is appropriate. 1 2 3 4 5 II Training and advancement opportunities

8 DT1 Fully trained professional skills 1 2 3 4 5

9 DT2 Opportunities for improving professional skills 1 2 3 4 5

10 DT3 Promotion opportunities for capable people 1 2 3 4 5

11 DT4 Opportunities for personal growth 1 2 3 4 5

12 DT5 Fair training and promotion policies 1 2 3 4 5

III Salary

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13 TN1 Salary matches the abilities and contributions. 1 2 3 4 5

14 TN2 Equally rewarded for work efficiency 1 2 3 4 5

15 TN3 Reasonable subsidization 1 2 3 4 5

16 TN4 Equitable distribution of salary, bonuses and pension 1 2 3 4 5

17 TN5 Can live on their income 1 2 3 4 5

18 TN6 Salary is on par with other companies 1 2 3 4 5

IV Supervisor support

19 LD1 The supervisors care about their subordinates. 1 2 3 4 5

20 LD2 Employees receive much supports from their supervisors. 1 2 3 4 5

21 LD3 Supervisors treat everyone equally. 1 2 3 4 5

22 LD4 Supervisors have capacity, vision and good leadership skills. 1 2 3 4 5

V Co-worker relations

23 DN1 Co-workers are often willing to help each other. 1 2 3 4 5

24 DN2 Co-workers work together well. 1 2 3 4 5

25 DN3 Co-workers are friendly. 1 2 3 4 5

26 DN4 Co-workers are trustworthy in work. 1 2 3 4 5

VI Work conditions

27 MT1 The working environment is clean and hygiene. 1 2 3 4 5

28 MT2 You do not worry about losing job. 1 2 3 4 5

29 MT3 You work under safe conditions. 1 2 3 4 5

30 MT4 You are sufficiently provided work equipments. 1 2 3 4 5

31 MT5 Work pressures are not too high. 1 2 3 4 5 VII General satisfaction

32 TM1 Feel satisfied when working at the company. 1 2 3 4 5

33 TM2 Be glad when choosing a working place. 1 2 3 4 5

34 TM3 Regarded the company as your second home 1 2 3 4 5

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Personal information

Please share with us your personal information by ticking or in suitable box:

Full name (not required)......................................... 1 Male 2 Female

Age: 1.18-25 2.26-35 3 .36-45 4.Above 46

Education level: 1. University or above 2. College/intermediate 3. High

school 4. Other

Work position 1. Stone quarrying enterprise 2. XN Cement production enterprise 3

Market research department

Address(not required) Phone: (not required)

Please indicate your monthly income:

Less than 3 mil VND

From 5 mil to less than 10 mil VND

From 3 mil to less than 5 mil VND

More than 10 mil VND

Thank you for your cooperation!