RESEARCH PROJECT (BMBR5103) FACTORS AFFECTING JOB SATISFACTION OF THE EMPLOYEES AT ASTRAZENECA VIETNAM IN HO CHI MINH CITY STUDENT’S FULL NAME STUDENT ID INTAKE ADVISOR’S NAME & TITLE : : : : HUYNH THI XUAN TRAM CGS00018491 SEPTEMBER, 2014 A PROF NGUYEN PHAN December – 2015 Advisor’s assessment Huynh Thi Xuan Tram |Factors affecting Job Satisfaction of the employees at AstraZeneca VN Table of Contents ABSTRACT CHAPTER 1: INTRODUCTION 1.1 Problem statement: 1.2 Research Objectives: 1.3 Research question: 1.4 Scope and Methodology of Research 1.5 Research Structure CHAPTER 2: LITERATURE REVIEW 2.1 Introduction of AstraZeneca Vietnam ……………………… 2.2 Notion of job satisfaction 10 2.3 Theories about job satisfaction 11 2.3.1 Theory of David Mc Clelland 11 2.3.2 Theoretical Framework of David Mc Clelland 11 2.3.3 Hertzberg’s two-factor theory 12 2.3.4 Expectation Theory of Vroom 13 2.3.5 Maslow’s hierarchy of needs 13 2.3.6 Model of motivation of Porter and Lawler 14 2.3.7 Model of Job Description Index (JDI) 14 2.4 Studies about the job satisfaction 16 CHAPTER 3: RESEARCH METHODOLOGY 17 3.1 Data source: 17 3.2 Modeling Specification 17 3.3 Relation between notions of research and research theory 19 Huynh Thi Xuan Tram |Factors affecting Job Satisfaction of the employees at AstraZeneca VN 3.4 Measurement of observed variables 21 3.5 Design of research 22 3.5.1 Design of qualitative research 23 3.5.2 Design of Scales 24 3.5.3 Sample Selection 25 3.6 Method of data analysis 25 3.6.1 Statistics of sample description 25 3.6.2 Scale assessment 25 3.6.3 Explanatory Factor Analysis (EFA) 26 3.6.4 Name and Adjustment of the modeling specification 27 3.6.5 Construction of regression equation 27 3.7 Evaluation of the fit of the model 27 3.8 Evaluation of research assumptions 28 CHAPTER 4: EMPIRICAL RESULTS AND DISCUSSION 30 4.1 Sample description 30 4.2 Scale evaluation 31 4.2.1 Evaluation of scale “work itself” 32 4.2.2 Evaluation of scale “Advancement opportunities” 32 4.2.3 Evaluation of Scale “Salary” 33 4.2.4 Evaluation of Scale “Supervisor support ” 34 4.2.5 Evaluation of Scale “Co-worker relations” 34 4.2.6 Evaluation of Scale “Working conditions” 35 4.2.7 Evaluation of scale of dependent variable “job satisfaction” 36 4.3 Name and adjustment of the model 37 Huynh Thi Xuan Tram |Factors affecting Job Satisfaction of the employees at AstraZeneca VN 4.3.1 Name of the first factor: 37 4.3.2 Name of the second factor 38 4.3.3 Name of the third factor 38 4.4 Adjustment of modeling specification 39 4.5 View the correlation between the notions 40 4.6 Construction of regression equation 41 4.6.1 Construction of regression equation by Enter method 41 4.6.2 Examination of the difference between the groups of employees having different age 45 4.6.3 Examination of the difference between the groups of employees having different age 47 4.7 Discovery of research 47 CHAPTER 5: CONCLUSION AND PROPOSALS 49 5.1 Conclusions 49 5.2 Some proposals from the research results: 50 5.3 Contributions and meanings of the research 52 5.3.1 Contributions 53 5.3.2 Meanings of the research 53 5.3.3 Limitation of the research: 53 REFERENCES 55 APPENDIX 57 Huynh Thi Xuan Tram |Factors affecting Job Satisfaction of the employees at AstraZeneca VN ABSTRACT The Pharmaceutical industries in Viet Nam are facing the critical challenges of recruiting and retaining the best talents In this era of globalization employees are blessed with good opportunities There are many factors which influence retention and it is required to understand employee expectation When highly desirable employees decide to leave, it can have a significant negative impact on the organization Recruitment costs, training costs, low productivity, loss of critical knowledge and operational disruptions can decrease organizational effectiveness According to the literature, when employees are satisfied, they intend to stay in the organization and when they are dissatisfied, they think about quitting Furthermore, if the employee perceives employment opportunities in the labor market, the intention to quit or stay is affected To support business optimally, need is to retain existing talented employees who have the essential knowledge, expertise and competencies to the work The Research project was designed to find out the factors which influence Job Satisfaction of employee working at AstraZeneca Viet Nam from that increases intention to stay and work performance for employees Data were collected from 200 Medical Representatives of AstraZeneca from Sixty - four Provinces and cities in Vietnam Using software SPSS version 22 (copyright of IBM) Hypotheses used this research includes five constructs: one dependent construct (Job Satisfaction) and four independent constructs (Staff Relations, Supervisor, pay and opportunity to develop) that important factors are key indicators for employee retention, satisfaction, and productivity Huynh Thi Xuan Tram |Factors affecting Job Satisfaction of the employees at AstraZeneca VN CHAPTER 1: INTRODUCTION 1.1 Problem statement: Nowadays, keeping good staffs staying with the company becomes more important The stability of human resource assists the firm economizes fees (training, recruitment) and also reduces potential professional mistakes, creating belief and forming the culture of the company Thus, employees will consider the company as the perfect location to fulfill all their capabilities as well as stay with the firm in the long term Last but not least, this stability assists the enterprise effectively their business, creating the confidentiality of customers to the quality of goods and service of the company Investigations show that the satisfaction of the employees has positive effect on working results (Sari & Judge, 2004) or the loyalty for the organization (Luddy, 2005) Great employees are the lifeblood of any business However, as the job market accelerates, even happy workers may be tempted to explore whether the grass is greener at another company Within years (2014-2015), more than 160 Medical Representative in Vietnam has resigned, And Losing employees is a concern for AstraZeneca Every Year, The Company are losing 20 percent of the employee’s annual salary for replacing an employee to cover the lost productivity costs and then recruit and train someone new With the shortage of human capital as today, retention good people are becoming big issue of AstraZeneca Viet Nam And Job Satisfaction of employees is important factor for AstraZeneca to keep employee retention, Even though there are numerous studies related to job satisfaction but there is limited research done in different country contexts Therefore, this study will mainly look into the four factors: Staff Relations, Supervisor, pay and opportunity to develop that influence on job satisfaction of AstraZeneca Staff Hence, the evaluation of the factors affecting the job satisfaction of the employees is very essential in order that the enterprises can adjust human resource policies suitably Huynh Thi Xuan Tram |Factors affecting Job Satisfaction of the employees at AstraZeneca VN 1.2 Research Objectives: This goal of this research is way to find the factors influence to the Job Satisfaction of employees working at AstraZeneca Viet Nam The primary objectives of this study will focus on: (1) To determine the factors influencing the satisfaction of the employees in the company (2) To propose the solutions to improve the satisfaction of the employees in order to keep competent staffs and impulse the labor productivity 1.3 Research question: Specifically, the research aims to address the following questions: (1) Which factors influence the satisfaction of the employees? (2) What are the solutions to enhance employee’s job satisfaction? 1.4 Scope and Methodology of Research The research focuses on investigating the job satisfaction of employees in AstraZeneca Vietnam in Ho Chi Minh City The subjects are staffs working actually in the company; the sample size of the research is 200 people collected, surveyed in the number of different departments in the company In order to clarify the contents above, serving for the target of the research, the dissertation use specific research methods as: - Preliminary study is implemented through qualitative research, through the technique of consulting the opinions of specialists and experienced professors in this field, at the same time observing on the working location, discussing with the superiors and colleagues - Official study is used by quantitative research through the survey of 200 staffs in the company Collect and process the data with the software SPSS Conduct the survey for the study in the end of 2015 at AstraZeneca Vietnam 1.5 Research Structure The research is organized in five chapters, including this introduction Huynh Thi Xuan Tram |Factors affecting Job Satisfaction of the employees at AstraZeneca VN Chapter 2: Reviews theories the general theory related to the research including the general information of AstraZeneca Vietnam, the notions in the research model, the research models and some recent studies of similar topic Chapter 3: Describes data collection and methodology in which the model for estimation and method of estimation are outlined Chapter 4: Presents the results from analyzing data and discussion Chapter 5: Briefly draws the conclusion, recommendations and limitations of the research Huynh Thi Xuan Tram |Factors affecting Job Satisfaction of the employees at AstraZeneca VN CHAPTER 2: LITERATURE REVIEW This chapter will present the general theory related to the topic of the research including the general information of AstraZeneca Vietnam, the notions in the research model, the research models and some recent studies of similar topic 2.1 Introduction of AstraZeneca Vietnam AstraZeneca plc is a British-Swedish multinational pharmaceutical and biologics company We are the world's seventh-largest pharmaceutical company Our primary focus is the discovery, development and commercialization of prescription medicines for six important areas of healthcare: Cardiovascular, Gastrointestinal, Infection, Neuroscience, Oncology and Respiratory & Inflammation The organizational hierarchy of the company includes Board of directors, Chief Executive Officer, Deputy Chief Executive Officers, Executive Director, Deputy Director, departments: Financial and Accounting Department, Human Resource and Administration Department, Engineering Department (operation, reparation, maintenance, customer care), Sales Department, Project Department (5 construction team) and Warehouse, with the workforce is 303 people We operate in over 100 countries and our innovative medicines are used by millions of patients worldwide We are one of only a handful of companies to span the entire lifecycle of a medicine from discovery, early and late-stage development, to the global commercialization of primary care, specialty care-led and specialty care medicines Using these skills and capabilities we can make a real difference to the health of a broad range of patients by delivering great medicines in disease areas where there is unmet medical need We want AstraZeneca to be valued as a source of great medicines and trusted as a company that delivers business success responsibly Our Responsible Business Plan provides the framework for ensuring that we operate with integrity and high ethical standards across all our activities In Viet Nam, we are currently one of the top pharmaceutical companies and we are committed to continued innovation, close customer relationships, people development Huynh Thi Xuan Tram |Factors affecting Job Satisfaction of the employees at AstraZeneca VN 10 Table 16: Resume of the regression information by Stepwise method Table 17: Analysis of variance of the model by Stepwise method a Predictors: (Constant), F1 b Predictors: (Constant), F1, F2 c Dependent Variable: Y Table 18: Coefficient Beta of the model by Stepwise method Huynh Thi Xuan Tram |Factors affecting Job Satisfaction of the employees at AstraZeneca VN 45 The result estimated by Stepwise method is not different from the result estimated by Enter method after rejecting variable F3, only variables F1, F2 have meanings (p-value is 000) The last regression equation is: Y = 0.079 + 0.629F1 + 0.271F2 In which: Y: job satisfaction of employees F1 is working conditions and promoting opportunities F2 is leadership and fair distribution of income The coefficient of Adjustment R-square is 0.654 (table 18), proving that variables F1, F2 can explain 65.4% of variation of variable Y, this value is suitable and accepted The pvalue in F-test is 0.654, then, with the degree of confidence 95%, it is possible to generalize the conclusion for the overall from the research data 4.6.2 Examination of the difference between the groups of employees having different age To examine the difference between the groups of employees having different age, it uses the technique of analysis of variance (ANOVA), the results examined are as follows: Table 19: Analysis of variance according to the age Huynh Thi Xuan Tram |Factors affecting Job Satisfaction of the employees at AstraZeneca VN 46 For the variable F1, test F between the groups having p-value = 000