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) APRIL, 2013 INTRODUCTION The researcher has aimed to study different factors behind job satisfaction and use Delta Civil Construction & Industries Public Company Limited (DCI) as a case study The company is facing a problem about high turnover of employee1 This has led to the management’s concern on labor productivity as it takes sometime for the company to train these workers to achieve their expected level of performance on the job The causes for labor turnover may result from many reasons both from employees themselves and the organization From organizational perspective, employee turnover can represent a significant cost in terms of lost recruiting, training, socialization investments, disruption and replacement costs, and a variety of indirect costs 1.1 Objectives of the Research Study The major objective of the study is to find out different factors behind job satisfaction of employees in Delta Civil Construction & Industries Public Co., Ltd The following specific objectives will be considered: ♦ To study employees’ job satisfaction level in the company ♦ To study the different factors that affect to job satisfaction of employees in the company ♦ To give some useful recommendations to improve employee’s satisfaction in the company ♦ Scope of the Research Study The study focuses on studying different factors that have impact on employee's job satisfaction level The main focus of the present study is managerial practice for Human Resource Management 1.2 Methodology for the Research Study 1.2.1 Primary data This research study conducts a questionnaire survey to obtain the primary data 1.2.2 Secondary data: The information has been extracted from the sources such as previous research, newspaper, magazines, journals and internet 1.3 The Expected Contributions of the Research Study This study is expected to contribute the following: ♦ Knowledge and understanding of the factors, which affect the employee's job satisfaction level of the company, ♦ An understanding of a priority of the significant factors which affect employee's job satisfaction level of the company, and ♦ Knowledge of employee's job satisfaction and result of the research study can be used in the continuous improvement process of management, especially in Human Resource Management, in order to reduce the employee turnover rate and other outputs, which may be caused from employee's satisfaction Organization of the Research Study Chapter 1:   Introduction  Chapter 2:   Literature Review  Chapter 3:   Research Methodology  Chapter 4:   Finding and Data Analysis  Chapter 5:   Conclusion and Recommendation  Chappter 2: LITERATURE REVIEW Chapter brings some definitions about levels of job satisfaction and factors affecting levels of job satisfaction and defines six factors affecting job satisfaction of labors in companies including: nature of work, salary, colleagues, leaders, training and promotion opportunities and working environment This chapter presents resuts of some previous research in and out of country; builds research model and give hypothesis of research model There are six hypothesis correlating with six factors affecting job satisfaction of labors in companies Research model Research model is built based on theory basic of job satisfaction Research results of some authors in and out of country define factors affecting job satisfaction of labors according to individual characteristics Individual characteristics are considered including: age, gender, learning status, number of working year, departments Research model and hypothesis are presented in graph 2.1: Graph 2.1: Research model Nature of work Salary Colleagues Levels of job satisfaction Leaders Training and promotion opportunities Working environment HYPOTHESIS FOR RESEARCH MODEL Hypothesis for research model are built based on evaluating factors affecting job satisfaction of labors in companies In the model of this research, there are six elements affecting job satisfaction of labors in companies including: nature of work, salary, colleagues, leaders, training and promotion opportunities, working environment Hypothesis for research models are supposed as following: H1: Whether nature of work is well evaluated or not correlate the same direction with levels of job satisfaction of labors H2: Whether salary policy is well evaluated or not correlate the same direction with job satisfaction of labors H3: Whether colleagues relationship is well evaluated or not correlate the same direction with levels of job satisfaction of labors H4: Whether relationship with leaders is well evaluated or not correlate the same direction with levels of job satisfaction of labors H5: Whether training and promotion opporturnities are well evaluated or not correlate the same direction with levels of job satisfaction of labors H6: Whether working environment is well evaluated or not correlate the same direction with levels of job satisfaction of labors CHAPTER 3: RESEARCH METHODS  This chapter will present research methods which are carried out to build and evaluate scale of measuring research concepts and check previous theory sample, including: (1) Research design (2) Official research: designing scale for question table, expression and coded scale, sample design 3.1.1 Research process Research process is carried out step by step as following: firstly, defining researching aims, after that giving research model, giving simple measurement scales, carrying out qualitative research by deep interviewing technology (n=5), from that providing model nd correction scale, the next step is carrying out quantitative research ( selecting samples, surveying by question table with N=198) The next step is collected data processing in order to test scales and data analysis based on results Crobach’s Alpha, element anaylysis, multivariable regression analysis…The last step is discussing results and providing solutions Graph 3.1: Research process Researching aims Research model Selecting esuarement scales Qualitative research Quantitative research Model and adjusting scales Testing measurement scales, data analysis Conclusion 3.2 Official research 3.2.1 Designing by questions All observing variables in parts also use measurement scales Likert levels with the first choice means “totally disagree with the statement” and the the fifth choice means “ totally agree with the statement” The contents of observing variables in parts are adjusted so as to fit with characteristics in Delta Civil Construction and Industries Public Company Limited 3.2.2 Expression and coding scales As presented in the chapter 3, researching model has six factors affecting job satisfaction of labors in Delta Civil Construction and Industries Public Company Limited (1) Work (2) Salary (3) Colleagues (4) Leaders (5) Training and promotion opportunities (6) Working environment CHAPTER 4: RESULTS OF RESEARCH  This chapter presents the results of analysis including: (1) description of obtained dat; (2) Evaluate the reliability of the scale, (3) factors analysis and research model calibration , (4) multivariable regression analysis, (5) Verification of model assumptions 4.1 Collected data Total number of delivered questionnaires is 190 of 198 employees who currently work in the company until 31st, August, 2008 (due to the time of the survey , there are some people who are in business, not available in the company) Total number of collected questionnaires is 178 After testing , there are unacceptable 12 tables which are excluded ( mainly because of lack of answering information) Thus, the total of questionnaire tables for analyzing and processing is 166 questionaire tables with full answers choices Data Structure: 4.2 FACTORS ANALYSIS 4.2.1 Results of factors analysis Factor analysis is used only when the coefficient KMO (Kaiser-MeyerOlkin) has the value of 0.5 or higher (Othman & Owen, 2000), the variable ratio transmission (factor loading) is fewer than 0.4 will be suitable Eigenvalue stop (variance represents the award explained by each factor) is greater than and the total variance extracted (Cumulative Extraction Sums of Squared Loadings%) greater than 50% (Gerbing & Anderson, 1988) Table 4.17: Results of Independent t-test Statistics according to groups of genders Giới tính satisfaction N Average Statistical error Average standard deviation 163 3.5307 76567 05997 3.0833 14434 08333 Table 4.18: Results of Independent t-test compare levels of job satisfaction according to genders Testing equality of variance Standard Level of average deviatio significa differen n nce ce differen ce Level of signific ance Satisfying Reliability 95% The assumption of equal 3.551 061 1.009 164 315 44734 44348 -.42832 1.32300 009 44734 10267 17623 71846 variances The assumption of unequal 4.357 4.593 variances Based on the value average of men higher than average of women (Table 4.19) the boolean men you dumpdir satisfied Man in the job cao higher than women 4.1.1 Testing the impact of different levels of age toward job satisfaction of employees in Delta Civil Construction and Industries Public Company Limited Because  “age” in the  research has 4 variables, we use  One‐Way ANOVA test.  Table 4.19: One-Way ANOVA Results compare levels of job satisfaction according to the age Total square df Average square F Levels of significance .471 157 267 849 In the same group 95.132 162 587 Total 95.603 165 Among groups Table 4.21 shows that between the groups with significance level = 0849 (> 0:05), so we conclude there is no difference between age groups in the satisfaction level of the employees work in Long An Engineering and Manufacturing Joint Stock Company Testing differences in “ qualifications” toward job satisfaction of employees in Delta Civil Construction and Industries Public Company Limited Table 4.20: Results of One­Way ANOVA compare job satisfaction  according to qualifications.  Total square df Average square F Levels of significance Among groups 2.765 691 1.199 313 In the same group 92.838 161 577 Total 95.603 165 Table 4.22 shows that between the groups with significance level = 0.313 (> 0:05), so we conclude there is no difference between groups with different education levels of satisfaction in the work of the employees in Delta Civil Construction and Industries Public Company Limited Inspection of the different impacts of "seniority" toward levels of job satisfaction of the employees in Delta Civil Construction and Industries Public Company Limited Table 4.21: Results of One-Way ANOVA compare levels of job satisfaction according to “ seniority” Total square df Average square F Levels of significance Among groups 2.164 721 1.251 293 In the same group 93.438 162 577 Total 95.603 165 Inspection of the different impacts of "departments" toward levels of job satisfaction of the employees in Delta  Civil  Construction  and  Industries  Public Company Limited Table 4.22: Results of One-Way ANOVA compare levels of job satisfaction according to departments Total square df Average square F Levels of significance Among groups 1.688 844 1.465 234 In the same group 93.915 163 576 Total 95.603 165 Table 4.24 shows that between the groups with significance level = 0.234 (> 0.05), so we conclude there is no difference between the parts of the level of job satisfaction of employees in Long An Engineering and Manufacturing JSC 4.5 Statistical results on levels of satisfaction levels of satisfaction in general and groups of factors 4.5.1 General satisfaction Table 4.23: Results Descriptive statistics overall satisfaction level N Lowest Highest Statistics Statistics Statistics Average Statistics Standard coefficineent satisfying 166 1.00 5.00 3.5226 05908 colleagues 166 1.40 5.00 3.7120 05638 leaders 166 1.17 5.00 3.4378 05322 salary 166 1.00 4.25 2.4834 06144 Acceptable 166 observations According to the table 4.25, the satisfaction level of the whole company is 3.5226 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 for the satisfaction factor is very low wages (only 2.4834) 4.5.2 Satisfaction in each group element 4.8.2.1 Levels of satisfaction factor according to group "colleagues" Table 4.24: Results of research according to levels of satisfaction factor according to group "colleagues" N Lowest Highest Average colleague Statistic Statistics Statistics 166 1.00 5.00 Statistics Standard 3.7349 05992 colleague 166 1.00 5.00 3.8193 06296 colleague 166 1.00 5.00 3.6988 07019 leader 166 1.00 5.00 3.4940 08095 colleague 166 1.00 5.00 3.8133 06652 Value N 166 Table 4.25: Results Descriptive statistics of the satisfaction level of "3 colleagues” Frequenc yyy Percent percentage of valid observations The cumulative percentage Valid 1 6 obser 5.4 5.4 6.0 vation 44 26.5 26.5 32.5 91 54.8 54.8 87.3 21 12.7 12.7 100.0 Total 166 100.0 100.0 Composition "colleagues 3": " people that you are very friendly to work with." The average value of this question is 3.7349 (higher than the average value of the element is now 3.7120) There are 32.5% of those surveyed have the satisfaction level from 1-3 (ie 32.5% of those surveyed said that this factor from the very low levels of average), with 67.5% of those surveyed closely with the satisfaction level from 4-5 (ie 67.5% of those surveyed said that this factor levels from fair to very good) Table 4.26: Results Descriptive statistics of the satisfaction level of the "colleagues 4" Frequenc yyy Percent percentage of valid The cumulative observations percentage Valid 1.2 1.2 1.2 observa 4.2 4.2 5.4 tion 39 23.5 23.5 28.9 89 53.6 53.6 82.5 29 17.5 17.5 100.0 Total 166 100.0 100.0 Composition "colleagues 4": "The people that He / She works with often help each other." The average value of this question is 3.8193 (higher than the average value of the element is now 3.7120) There are 28.9% of those surveyed have the satisfaction level from 1-3 (ie 28.9% of those surveyed said that this factor from the very low levels of average), with 71.1% of those surveyed closely with the satisfaction level from 4-5 (ie 71.1% of those surveyed said that this factor levels from fair to very good) Table 4.27:.Results of descriptive statistics of the satisfaction level of "colleagues 1" Frequenc yyy Percent percentage of valid observations The cumulative percentage Valid 1.8 1.8 1.8 observa 11 6.6 6.6 8.4 49 29.5 29.5 38.0 73 44.0 44.0 81.9 30 18.1 18.1 100.0 Total 166 100.0 100.0 tion Composition "colleagues 1": "Colleagues of him / her comfortable and pleasant." The average value of this question is 3.6988 (lower than the average value of the element is now 3.7120) There are 38% of those surveyed have the satisfaction level from 1-3 (ie, 38% of those surveyed said that this factor from the very low levels of average), with 62% of those surveyed closely with the satisfaction level from 4-5 ( 62% of those surveyed said that this factor levels from fair to very good) Table 4.28: Results of statistics describing satisfaction of component “ leadership” Frequenc yyy Percent percentage of valid observations The cumulative percentage Valid 4.2 4.2 4.2 observat 20 12.0 12.0 16.3 ion 51 30.7 30.7 47.0 60 36.1 36.1 83.1 28 16.9 16.9 100.0 Tổng 166 100.0 100.0 Composition "Leadership 4": "Employees are treated fairly, regardless." The average value of this question is 3.4940 (lower than the average value of the elements "colleague" is 3.7120) Up to 47% of those surveyed have the satisfaction level from 1-3 (ie, 47% of those surveyed said that elements from very low levels average), with 53% of those surveyed have the satisfaction level from 4-5 (ie, 53% of those surveyed said that this factor levels from fair very good) 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       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 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 The main purpose of the study: the factors that affect the level of job satisfaction of employees in companies are colleagues, leaders and wages 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 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 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 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 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 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 Reasons: 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 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 5.3.2 Leadership issues 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 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 Besides, training policies, promotion must also be emphasized 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 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 not, and if have, whether this level is small or large ... affecting the level of job satisfaction of employees in Delta Civil Construction and Industries Public Company Limited Testing gender differences toward job satisfaction of labors in Delta Civil Construction. .. employees in Delta Civil Construction and Industries Public Company Limited Inspection of the different impacts of "seniority" toward levels of job satisfaction of the employees in Delta Civil Construction. .. employee''s job satisfaction level of the company, ♦ An understanding of a priority of the significant factors which affect employee''s job satisfaction level of the company, and ♦ Knowledge of employee''s