Thai Nguyen University Socialist Republic of Vietnam Southern Luzon State University Republic of Philippines ANALYSIS OF JOB SATISFACTION LEVEL AT DELTA CIVIL CONSTRUCTION AND INDUSTRIES PUBLIC COMPANY LIMITED A RESEARCH PAPER PRESENTED TO THE FACULTY OF THE GRADUATE SCHOOL SOUTHERN LUZON STATE UNIVERSITY, LUCBAN, QUEZON, PHILIPPINESIN COLLABORATION WITH THAI NGUYEN UNIVERSITY, SOCIALIST REPUBLIC OF VIETNAM IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE DOCTOR OF BUSINESS ADMINISTRATION (DO THUY DUNG - LINDA) ii AUGUST, 2013 iii ACKNOWLEDGMENTS I would like to express our most sincere thanks to the Management Board of the Southern Luzon State University, Thai Nguyen University, the teacher, the teacher of the school has helped me facilitate the learning process throughout I would like to express sincere gratitude and profound Professor Walberto A Macaraan, enthusiastic teacher who have dedicated guidance, encouragement, spend time and exchange orientation for me during this research I would like to express my sincere thanks to the Delta Civil Construction and Industries Public Company Limited The company has helped me research material, through a questionnaire survey I sincerely thank the Board of the University of Labor and Social affair (ULSA), colleagues in ULSA, classmates DBA1 facilitated enthusiastic help and share my experience to help complete the thesis Finally, I would like to send the gift to the heart of my family has passed enthusiasm and encouragement to complete my thesis iv TABLE OF CONTENT ACKNOWLEDGMENTS iii LIST OF TABLES .vii LIST OF FIGURES ix CHAPTER INTRODUCTION 1.1 Rationale 1.2 Background of the company 1.3 Statement of the Problem for the Research Study 1.4 Objectives of the Research Study 1.5 Conceptual Framework of the Research Study 1.6 Scope of the Research Study 1.7 Methodology for the Research Study 1.7.1 Primary data 1.7.2 Secondary data: 1.8 The Expected Contributions of the Research Study 1.9 Limitation of the Research Study 1.10 Organization of the Research Study CHAPTER LITERATURE REVIEW 2.1 Definitions of Job Satisfaction 2.2 Theories of Job Satisfaction 2.2.1 Locke’s Value Discrepancy Theory 2.2.2 Lawler’s Facet Theory 2.2.3 Work Adjustment Theory 11 2.3 2.3.1 2.3.2 2.3.3 2.3.4 2.3.5 2.3.6 Factors affect job satisfaction 13 The nature of jobs 14 Salary 14 Colleagues 15 Leadership 15 Training opportunities and getting promotion: 15 Working environments 16 2.4 Some research results of job satisfactions of labors 16 2.4.1 Andrew ‘S research(2002) 16 v 2.4.2 Tom’s research (2007) 17 2.4.3 Research of Tran Kim Dung and her corporators: 17 2.4.4 Research of Keith and John 18 2.5 Research model 18 CHAPTER 3: RESEARCH METHODS 21 3.1 Research design 21 3.1.1 Research methods 21 3.1.2 Research process 22 3.2 3.2.1 3.2.2 3.2.3 3.2.4 Official research 24 Designing by questions 24 Expression and coding scales 24 Evaluating measurement scales 27 Research design 29 CHAPTER 4: RESULTS OF RESEARCH 30 4.1 Collected data 30 4.2 Scale evaluation 32 4.1.1 Results of evaluation scale factors affecting job satisfaction in employees in Delta Civil Construction and Industries Public Company Limited 32 4.2.1 Scales to assess satisfaction 35 4.3 4.3.1 4.3.2 4.3.3 FACTORS ANALYSIS 36 Results of factors analysis 36 Naming and explaining factors 38 Interpretation of results 38 4.4 Adjustment model 39 4.4.1 Contents of adjusment 39 4.4.2 Hypothesis for adjustment model 39 4.5 Testing factors of model 40 4.5.1 Inspection of the correlation coefficient 40 4.5.2 Regression analysis 40 4.6 Testing hypothesis 43 4.7 Inspection of the difference in the lwvels of satisfaction according to individual charasteristics 45 vi 4.7.1 Testing the impact of different levels of age toward job satisfaction of employees in Delta Manufacturing and Engineering Joint Stock Company 47 4.7.2 Testing differences in “ qualifications” toward job satisfaction of employees in Delta Manufacturing and Engineering Joint Stock Company 48 4.7.3 Table 4.21: Results of One-Way ANOVA compare levels of job satisfaction according to “ seniority” 48 4.7.4 Inspection of the different impacts of "departments" toward levels of job satisfaction of the employees in Delta Civil Construction and Industries Public Company Limited 49 4.8 Statistical results on levels of satisfaction levels of satisfaction in general and groups of factors 50 4.8.1 General satisfaction 50 4.8.2 Satisfaction in each group element 50 4.8.2.1 Levels of satisfaction factor according to group "colleagues" 50 CHAPTER 5: CONCLUSIONS 56 5.1 A summary of the study 56 5.2 Summary of research findings 57 5.3 Some solutions to increase levels of job satisfaction of working staff in delta civil construction and industries public company limited 58 5.3.1 Colleagues issues 61 5.3.2 Leadership issues 62 5.4 Limitations of the research and next research direction 64 5.4.1 Linitations of the research 64 5.4.2 Next research direction 64 BIBLIOGRAPY 66 vii LIST OF TABLES Table 3.1: Mesurement scales and coding measurement scales 25 Table 3.2: Mesurement scales and coding measurement scales 26 Table 4.1: Gender structure 30 Table 4.2: Age structure 31 Table 4.3: Structure of qualifications 31 Table 4.4: Seniority structure 31 Table 4.5: Structure of departments 32 Table 4.6: Cronbach Alpha of scale “ nature of work” 32 Table 4.7: Cronbach Alpha of scale “salary” 33 Table 4.8: Cronbach Alpha of scales “ colleagues” 33 Table 4.9: Cronbach Alpha of scales “leaders” 34 Table 4.10: Cronbach Alpha of scales “training and promotion opportunities” 34 Table 4.11: Cronbach Alpha of scale “ working environment” 35 Table 4.12: Cronbach Alpha of scales “satisfaction” 35 Table 4.13: Results of step of model 37 Table 4.14: Model summary of method Enter 41 Table 4.15: The regression results using the method Enter 41 Tabled 4.16: Results of using the method Enter after removing variables 42 Table 4.17: Results of Independent t-test Statistics according to groups of genders 46 Table 4.18: Results of Independent t-test compare levels of job satisfaction according to genders 46 Table 4.19: One-Way ANOVA Results compare levels of job satisfaction according to the age 47 Table 4.20: Results of One-Way ANOVA compare job satisfaction according to qualifications 48 Table 4.22: Results of One-Way ANOVA compare levels of job satisfaction according to departments 49 viii Table 4.23: Results Descriptive statistics overall satisfaction level 50 Table 4.24: Results of research according to levels of satisfaction factor according to group "colleagues" 51 Table 4.25: Results Descriptive statistics of the satisfaction level of "3 colleagues” 51 Table 4.26: Results Descriptive statistics of the satisfaction level of the "colleagues 4" 52 Table 4.27: Results of descriptive statistics of the satisfaction level of "colleagues 1" 52 Table 4.28: Results of statistics describing satisfaction of component “ leadership” 53 Table 4.29: Results Descriptive statistics of the satisfaction level of "2 colleagues." 54 ix LIST OF FIGURES Figure 1.1 Research Framework for this research study Figure 2.1 Lawler’s model of job satisfaction and its determinants 10 Figure 2.2 Work adjustment model 12 Graph 2.1 Research model 19 Graph 3.1 Research process 23 Graph 4.1 Adjustment model 39 CHAPTER INTRODUCTION 1.1 Rationale Specific employee attitude relating to job satisfaction is one of the major interests to the field of organizational behavior and the practice of human resource management Job satisfaction is one of the most researched areas in Industrial and Organizational (I/O) Psychology It estimated that over 3,000 articles have been written on the topic The subject has aroused so much interest because of three main reasons First, it is cultural in the sense that as a nation that values individual freedom, personal growth, and opportunity For example, in certain European countries, like Germany, Sweden and Holland, there has been a long-standing concern for industrial democracy, in which the feelings of workers are of major importance However, in some other European countries and in other parts of the world, interest in the quality of work life is emerged (De Wolff & Shimmin, 1976) The second reason for interest in job satisfaction is functional Some research studies have shown that satisfaction is related to other important variables like absenteeism, turnover, and performance Though we not know if job satisfaction has a causal relationship with these variables (for example, if high job satisfaction will cause a worker to be absent less often), we know that feelings of high job satisfaction are associated with certain levels of these variables Because the company wants less absenteeism, less turnover and better performance, then increasing job satisfaction might help in meeting these objectives Finally, there is a historical basis to job satisfaction research The studies began in the 1920s as research on the effects of work and illumination 54 Table 4.29: Results Descriptive statistics of the satisfaction level of "2 colleagues." Frequenc yyy Percent percentage of valid The cumulative observations percentage Valid 1.2 1.2 1.2 observati 11 6.6 6.6 7.8 on 34 20.5 20.5 28.3 88 53.0 53.0 81.3 31 18.7 18.7 100.0 Total 166 100.0 100.0 Composition "colleagues 2": "He / She and colleagues to work together better." The average value of this question is 3.8133 (higher than the average value of the elements "colleague" is 3.7120) Up to 28.3% of those surveyed have the satisfaction level from 1-3 (ie 28.3% of those surveyed said that this factor from the very low levels of average), with 71.7% of survey the satisfaction level from 4-5 (ie 71.7% of those surveyed said that this factor levels from fair to very good Summary: This program of work was carried out as follows: Testing scale factors appearing in the model by means of Cronbach Alpha reliability and factor analysis EFA examination Results Cronbach's Alpha elements are all satisfactory, except for the scale "work environment" Results appear scales colleagues including some scale factor of 02 "leader" and his colleagues formed; scales "leaders" are formed from scales "leader" and scale "of training opportunities, promotions " 55 Results regression analysis model with multiple linear regression through SPSS 16.0 software using the Enter method shows that there are factors that affect the level of job satisfaction of employees in the company shares Delta Civil air Manufacturing are: salary, leadership and colleagues Testing the assumptions of the model based on the regression results, accepted three hypotheses (H2, H3, H4), we reject the hypothesis (H1) Testing showed that the satisfaction level of the whole company is 3.5226 (1 is lowest, highest) Satisfaction with co-workers is 3,712 elements (higher overall satisfaction level) Meanwhile, the level of satisfaction with the leadership factor and lower wage levels are generally satisfied, except that the satisfaction level of wage factor is very low (only 2.4834) 56 CHAPTER 5: CONCLUSIONS The purpose of this chapter is to summarize the main results and conclusions from the study This chapter consists of four parts: (1) A summary of the study, (2) Summary of research findings, (3) A number of Delta Civil Construction and Industries Public Company Limited., (4) Limitations of the study and suggest directions for further 5.1 A summary of the study The research has launched a number of definitions of the authors: Vroom (1964); Dormann and Zapf (2001); Locke (1976); Quinn and Staines (1979), Weiss (1967) on the job satisfaction of employees, then make the comparisions between the meanings From the reference model to study the level of job satisfaction, the study outlined the factors affecting the job satisfaction of employees at Delta Civil Construction and Industries Public Company Limited These factors are: the nature of work, wages, colleagues, leaders, training opportunities and advancement, working environment The study reference the research results of domestic and foreign authors on the issue of measurement of job satisfaction of workers and compared the findings to create a database for topics The model has been developed consisting of six elements: the nature of work, wages, colleagues, leaders, training opportunities and advancement, working environment From six above factors, the hypothesis model was launched The study was conducted in two steps: qualitative research techniques were implemented through in-depth interviews (n = 5) and quantitative study 57 was carried out by questionnaire survey interviewed all technical employees are working at Delta Civil Construction and Industries Public Company Limited ,which overall study is 198 people Scale factors are built from the legacy from previous studies and from the results of qualitative research The scale is calibrated by means of Cronbach Alpha reliability and EFA discovery factor analysist The process of analyzing the results of quantitative research is done through the help of SPSS 16.0 software 5.2 Summary of research findings On scale systems: The results of the measurement models showed that, after addings and adjustments based on qualitative research and some of the results of the previous studies and foreign authors, the scales achived reliability and value allowed This study contributes to the measurement systems of scale factors affect the level of job satisfaction of employees at Delta Civil Construction and Industries Public Company Limited In theoretical models: the original model studies provide fairly consistent However, after the survey and data analysis, the final results showed that three most influence factors on the level of job satisfaction of employees at Delta Civil Construction and Industries Public Company Limited is "food", "leaders" and "colleagues", and “wages” has the greatest influence to the level of job satisfaction of employees, followed by “leaders” and “colleagues” It should be noted that these factors are good or bad is judged based on the experience of staff, not the element itself is really good or bad 58 The main purpose of the study: the factors that affect the level of job satisfaction of employees in companies are colleagues, leaders and wages The level of job satisfaction of employees in companies is not high: Inspection of the individual elements in the factor indicated that the satisfaction level of the whole company is 3.5226 (minimum of and a maximum of 5) Satisfaction with co-workers is 3,712 (higher than overall satisfaction level) Meanwhile, the level of satisfaction with “leaders” and “wages” are lower than generally satisfied level, and satisfaction level of wages is very low (only 2.4834) The difference in the satisfaction level of employees in the individual characteristics (age, gender, education level, seniority, parts): Based on the results Independent t-test and One -Way ANOVA analysist to compare the satisfaction level of the employees at Delta Civil Construction and Industries Public Company Limited by a number of factors suggest that The difference in the satisfaction level of employees in the individual characteristics (age, gender, education level, seniority, parts): Based on the analysis results Independent t-test and One -Way ANOVA to compare the satisfaction level of the employees in Delta Civil Construction and Industries Public Company Limited by a number of factors suggest that male individuals with levels of job satisfaction than women, there is no difference in the satisfaction level in the work of the employees in the remaining individual factors (age, education level, seniority, department) 5.3 Some solutions to increase levels of job satisfaction of working staff in delta civil construction and industries public company limited From the results obtained from the model study, we propose a number of the following recommendations to the Board of Directors of Delta Civil Construction and Industries Public Company Limited 59 Salary issues Results of research and meanings : According to the study, the satisfaction level of wages in the same direction relative to the level of job satisfaction of employees in Delta Civil Construction and Industries Public Company Limited According to the research results, the satisfaction level of the company's salary is very low Satisfaction of the company's salary is 2.4834, much lower than the overall satisfaction level of the whole company is 3.5226 In particular, the composition "salary commensurate with work performance" (value of 2.4518), "high-wage" (avalue of 2.1627) underestimated the value of the average wage factor Composition "Wages paid by income" (value oF 2.6627) and "can live solely on the income from the company" (value of 2.6566) were rated higher average value of the salary factor This suggests that the perception of the employee's salary policy is not a good company Reasons: Feelings of workers on wage policy of the company is not good This problem is due to a number of reasons: Workers find themselves underpaid, slary doesn’t guarantee for their livelihood needs The time of the first half of 2008 has been large fluctuations in the economy, the cost of living surges simultaneously and continuously, but the company doesn’t make timely adjustments to increase wages for workers The company is a unit conversing from state-owned enterprises should be the implementation of wage policy also affects the certain payment mechanisms from the state-owned enterprises: less strongly to those who paid actually contribution, the average salary style should not create incentives stimulate employee feels simultaneously cause the unfair payment 60 Solutions recomendations: According to research findings, wages are important factors that have the most important influences on the job satisfaction It is also a factor with the worst assessment of factors affecting satisfaction Therefore, companies need to take solutions to improve the level of employee satisfaction with salary issues, as follows: Salary: According to employees at the company, current salary they receive is very low, does not correspond with the results of their work and not enough to cover the daily needs of life Therefore, the immediate problem is to check company and unit wage adjustment at a more reasonable level The Company may pay based on common ground in the region and peers to adjust reasonable salary The company should also regularly review and adjust the salary for each individual based on their actual capacity Salary payments to employees must be based on work performance and ensure workers reconstruct labor, pay attention to the changes in economic and social adjustments to salary match the volatility of the price index of food and social space in each given moment The fair wage policy: The equal pay is an important factor Employees not only want to be paid attention to, but the company paid how Here we address the issue of fairness in the implementation of wage policy An employee may be able to get a reasonable salary, but if they feel the company's payroll unfair can also make them feel dissatisfied with the company's salary policy 61 5.3.1 Colleagues issues Results of research and meanings: Colleagues also be a factor in the level of job satisfaction of employees Delta Civil Construction and Industries Public Company Limited According to the study, the satisfaction level of peers in the same direction relative to the level of job satisfaction of employees in Manufacturing and Engineering Joint Stock Company According to the study, the satisfaction level of co-workers is 3,712, higher than the overall satisfaction level of the whole company is 3.5226 In particular, in the "friendly colleague" ( value of 3.7349), "the mutual help of colleagues" (value of 3.8193) and "collaboration among peers" (value of 3.8133 ) were rated higher average value of factor colleagues Composition "the comfort of colleagues" (value of 3.6988) and "fair treatment for employees" (value of 3.4940) underestimated the average value of factor colleagues Reasons: We see that the factor colleagues, the component "friendly colleague" "the mutual help of colleagues" and "collaboration among colleagues is appreciated more than the average value of the elements colleagues Meanwhile, in the "comfort of the colleagues" and "fair treatment for employees" to be underestimated by the average value of factor colleagues This result is due to the majority of the employees have worked at the company long-term, there is a certain understanding so friendly with each other, coordinate and help each other better The assessment of "fair treatment for employees" is not good because some department heads for certain favors for senior staff but is limited in capacity 62 Solutions recomendations: The company should also take measures to improve the level of satisfaction with fellow workers This problem is an element of the corporate culture Specifically: The company should develop regulations to work to create an environment so that the coordination of mutual help everyone in the company, the intertwined friendly work Equal treatment toward employees should be corrected in the future Accordingly, companies should develop specific criteria for evaluating work performance of employees as well as the rewards, as well as discipline and regulations applicable to such a public way transparency, so there is no bias condition or prejudice against any individual employee in the company This enables more accurate assessment, avoiding the subjective evaluation and minimize bias or prejudice Leadership issues 5.3.2 Results of research and meanings: The leadership factor here is the set of components of elements "leader" and elements "training opportunities, promotions" in the original research model According to the study, the satisfaction level of leadership in the same direction relative with the level of job satisfaction of employees in Delta Civil Construction and Industries Public Company Limited According to the study, the satisfaction level of leadership is 3.4378, lower than the overall satisfaction level of the whole company is 3.5226 In particular, the component "support of superiors" (value of 3.6386), "consulting upper ưorking staff’s ideas " ( value of 3.7651) and "Leadership style is polite, 63 gentle "( value of 4.0301) is higher rating average value of the leadership factor Composition " training for jobs and career development" (value of 3.2349), "opportunities for advancement" (value of 2.8313) and "personal development opportunities" (value of 3.1265) is underestimated than the average value of the leadership factor Reasons According to research results, as the "superior support", "consult ing the supper working staff ‘s ideas" and "polite and gentle leadership style" are higher than value average of the leadership factor Component "training for jobs and career development", "advancement opportunities" and "personal development opportunities" underestimated the average value of the leadership factor This result is due to the company leaders have the interest, support staff jobs and employee recognition But not a good job training and career development not create opportunities for advancement, and personal development opportunities for staff, so these factors are not staff good reviews Solutions recomendations: Therefore, to improve the satisfaction level of leadership leadership, companies need to implement a number of measures as follows: Leaders must create the trust, respect of employees Leadership style should be polite, gentle, always listening to the thoughts and aspirations of employees Leaders should also support staff employees in the case of difficulty can not be resolved In particular, the issue of fair treatment for staff pay special attention because these are very sensitive issues, if not handled properly will cause inhibition of employees, making employees feel dissatisfied leadership and overall job dissatisfaction 64 Besides, training policies, promotion must also be emphasized The company should create conditions for workers are learning to improve their knowledge for their job Besides promotion policy must be transparent, clear and implementing policies that promote and create conditions for the people who are qualified to contribute more to the company to create opportunities for advancement motivation for them as well as stimulate and encourage all other employees of the company 5.4 Limitations of the research and next research direction 5.4.1 Linitations of the research Like any research, this research has some limitations: Firstly, this research is only surveyed in Delta Civil Construction and Industries Public Company Limited Thus, the research only has practical values toward the company If this study is repeated in other companies which operate in the field of mechanical engineering, the study can be compared and build a common scale system for mechanical engineering This is a direction for further research Secondly, This study conducted at a time of strong fluctuations in prices and the cost of living has affected the attitudes of those surveyed should be able to make results of the results one-sided Thirdly, this is the first research of companies about this field, thus surveyed people can be unfamiliar with methods as well as meanings of answering methods that partially influences on reliability of answers choices Fourthly , the research doesn’t bring social factors which affect levels of job satisfaction of labors 5.4.2 Next research direction In the next time, in order to complete measurement model of job satisfaction of labors for general application for enterprises in Viet Nam, it is 65 necessary to carry out these issues: Carry out measurement in a larger scale, the number of surveyed samples must be various with many kinds of enterprises, and diversified with geography and enterprise scale The number of surveyed samples must be large enough to make sure reliability of research The research need to add some elements like: benefits, company culture, company fame…or social elements such as: family, friends…into the model to define whether there is correlation between those factors toward labors’ job satisfaction or 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of Khonkean University, Dissertation of Master Degree, Faculty of Public Administration, Thammasart University: p.1 Chatri Wateetip (1999) Factors Affecting Employee Turnover in Sony Group of Companies in Thailand, Dissertation of Doctoral Degree, School of Public Administration, Administration p.58-100 The National Institute of Development ... employees in Delta Civil Construction and Industries Public Company Limited 49 4.8 Statistical results on levels of satisfaction levels of satisfaction in general and groups of factors... scales of factors affecting job satisfaction of labors in Delta Civil Construction and Industries Public Company Limited are come from the most famous measurement scales of levels of job satisfaction. .. Interpretation of results 4.3.3 Results of factor analysis gave the model of job satisfaction of employees in Delta Civil Construction and Industries Public Company Limited is a combination of the