RESEARCH PROJECT (BMAOUM0915) RESEARCHING ABOUT ORGANIZATION COMMITMENT AT DHG PHARMA IN VIET NAM STUDENT’S FULL NAME : NGUYEN THI DIEM THUY STUDENT ID : CGS00019906 INTAKE : SEPTEMBER, 2015 ADVISOR’S NAME & TITLE : DR NGUYEN THE KHAI March, 2017 ADVISOR’S ASSESSMENT - Advisor’s signature (March, 2017) DR NGUYEN THE KHAI ACKNOWLEDGEMENTS I would like to thank my teacher for his participation in the survey who supported my work in this way and helped me get results of better quality I would like to express my deepest gratitude to Dr NGUYEN THE KHAI, who instructed, gave me a chance and guided me to this research I am also grateful to my friends in the this class for their patience and support in overcoming numerous obstacles I have been facing through my research Last but not the least, I would like to thank my family: my mother and sister for supporting me spiritually throughout writing this thesis and my my life in general Once again, I thanks very much to all ! With kindest regards, HCMC, Mar 2017 NGUYEN THI DIEM THUY Student CONTENTS ABSTRACT - PART I INTRODUCTION Company introduction- DHG Pharma Company -2 Principal activities- Capitalization -2 Vision- Mission- Core values -6 Organisational structure -6 Financial performance - The positioning statement Research introduction Reason of research- Introduction of Research Motivation of the study- significance of the study -10 Purpose of the study- Question of the study 12 Time of research- Overcome of research 13 PART II: LITERATURE REVIEW 14 Organization Commitment 15 Job Satisfaction -20 Employee Pay Level -23 Work Role Ambiguity 25 Job Tension -27 PART III METHODS 31 Research design 31 Sample 31 Measures 32 Data Analysis Error! Bookmark not defined.6 PART IV RESULTS 39 Reliability statistic Error! Bookmark not defined.9 Descriptive statistic 40 Correlation statistic 40 Hypotheses Testing Results 42 PART V DISCUSSION -48 PART VI RECOMMENDATION - 54 Appendix 1: Survey Questionnaires 57 Appendix 2: Presentation Slides -61 LIST OF TABLE Table 1.1: Capitalization Table 1.2: Organisational structure -7 Table 1.3: Financial performance -7 Table 1.4: DHG’s position in Southeast Asia Table 1.5: DHG’s position in the Vietnam pharmaceutical industry -9 Table 2.1: Maslow’s Need Hierarchy - 14 Table 2.2: The basic process of organizational behavior 16 Table 2.3: Attitudinal and behavioral perspectives on organizational commitment Table 2.4: Prerequisites for organizational commitment - 17 Table 3.1: Hypotheses - 31 Table 3.2: Measures - 35 Table 4.1: Reliability Statistics 38 Table 4.2: Descriptive Statistics - 39 Table 4.3: Correlations 40 Table 4.4: Model Summary (H1) 41 Table 4.5: Coefficientsa (H1) 42 Table 4.6: Model Summary (H2) 43 Table 4.7: Coefficientsa (H2) 43 Table 4.8: Model Summary (H3) 44 Table 4.9: Coefficientsa (H3) 45 Table 4.10: Model Summary (H4) 46 Table 4.11: Coefficientsa (H4) 46 LIST OF FIGURE Figure 1: DHG Pharma’s Production Line -4 Figure 2: DHG Pharma's Product List Figure 3: DHG Pharma’s Factory -6 Figure 4: The Board of Directors Figure 5: Job Satisfaction -23 Figure 6: Are you stressed at work? -27 ABSTRACT The purpose of the study was to investigate the influence of Job satisfaction (JS), Employee pay level (EPL), Work role ambiguity (WRA), and Job tension (JT) on Organization commitment (OC) in DHG Pharma company Practical data were collected from 285 employees out of 1,000 employees in the company by means of a questionnaire Statistical techniques such as descriptive statistics, correlation and linear regression were employed The results of the study indicated a positive significant relationship between Job satisfaction, Employee pay level, Job tension and Organization commitment Empirical results also indicated that the Work role ambiguity were having slightly impact or was not having significant impact on Organization commitment The results can provide the reference for Human Resource Management Team about the relationship between Job satisfaction (JS), Employee pay level (EPL), and Job tension (JT) on Organization commitment (OC) in DHG Pharma company Key Words: Job satisfaction (JS), Employee pay level (EPL), Work role ambiguity (WRA), and Job tension (JT) on Organization commitment (OC) P a g e 1- 64 PART I: INTRODUCTION Figure 1: DHG Pharma’s Factory Company introduction Principal activities FORMATION HISTORY Establishment: Precursor of DHG Pharma (DHG) was 2/9 Pharmaceutical Factory and was founded on September 02nd 1974 at Dat Set Channel, Khanh Lam Commune (Khanh Hoa Commune now), U Minh District, Ca Mau Province After 30/4/1975 Southwest District People Health Board was dissoluted, Pharmaceutical Factory 2/9 was managed by the Department of Health Hau Giang In 1982: Factory of United Hau Giang Pharma was established on the base of uniting three branches: 2/9 state-owned pharmaceutical factory, Level Pharmaceutical Company, and Pharmacognostic Station In 1988: People’s Committee of Hau Giang Province decided to merge Health Device Material Supply Company and Factory of United Hau Giang Pharma Ngày 02/9/2004: On September 2, 2014: Factory of United Hau Giang Pharma was equitized into DHG Pharma Joint-Stock P a g e 2- 64 MILESTONES In 2004: Become Joint-Stock Company In 2005: Become member of Enterprise Club having over 500 billion VND in revenue Be the first enterprise pharmaceutical equivalent clinical trial Haginat and Klamentin powder Develop effective policies to attract talent, especially the policy of "4D Salary” In 2006: First time having listed stocks at SGDCK HCM city; Achieving WHOGMP/GLP/GSP In 2007: Recognize vison, mission, and core values Try relevant biology successfully Haginat 250 mg and Glumeform 500mg Increase required capital from 80 billion to 200 billion VND Established 02 first subsidiaries and SH and DHG Pharma Travel Convert ISO / IEC 17025 from version 1999 to version 2005 In 2008: Operate effectively modern managerial tools: 10.5S, Balance Score Card Established branches: CM Pharma, DT Pharma, HT Pharma, ST Pharma, DHG PP, DHG Nature In 2009: Successfully perform 20/80 strategy: product, customer, human capital, established A&G Pharma In 2010: Successfully perform “Kieng chan” Strategy: Shareholders, customers, and laborers Established branches: TOT Pharma, TG Pharma and Pharma DHD MTV Ltd In 2011: Successfully Initiated “ Increase the productiveness of the branch operation”, Established Bali Pharma P a g e 3- 64 Conducted a meta-analysis of studies of primary correlates of work role ambiguity: job satisfaction (global and intrinsic) and job performance (self- and independently evaluated) to determine role ambiguity to satisfaction and performance and any relevant relationships 88 studies were examined from Psychological Abstracts, 1967–1990, 39 of which were included in the meta-analyses Results suggest that role ambiguity is significantly and negatively related to satisfaction and to performance, but very weakly to the latter True variance in correlations exists across studies, suggesting that the effects of role ambiguity vary depending on other variables Results suggest that role ambiguity is a valid construct in organizational research and that it is usually associated with lower job satisfaction (PsycINFO Database Record (c) 2012 APA, all rights reserved (21) So Employee pay level is less relationship and influence to DHG Pharma company’s organization commitment of employees Hypothesis is NOT supported: Job tension is less relationship and influence to DHG Pharma company’s organization commitment of employees The hypothesis H4 is not supported by a number of reasons could be Rang Dong company staff like work under pressure, or due to the working culture here or a number of questions that can be filled out questionnaires designed wrong or not good enough to measure the structure or personnel was not found that depression is related to important Job Stress to affect Behaviors through revenue was intent found to be negligible P a g e 50- 64 Practical, reale state business environment at Vietnam always having too much pressure and changes because of influence of state’s macro-policies, for example economic, inflation, exchangerate, liquidity, legal, FDI…and series other factors, like population, urbanization rate Therefore, employees always seem their job tension which is not align with the working development everyday However, the pharmaceutical business is a full compete professionat in Vietnam in the present context of economicis very difficult; to allocate the clearly work for the employees working in the pharmaceutical industry's only a matter of time for make employees to have organization Commitment at DHG Pharma Sometimes the best stress-reducer is simply sharing your stress with someone close to you The act of talking it out and getting support and sympathy—especially face-toface—can be a highly-effective way of blowing off steam and regaining your sense of calm The other person doesn’t have to “fix” your problems; they just need to be a good listener Of course, you may not have a close buddy at work, but you can take steps to be more sociable with your coworkers When you take a break, for example, instead of directing your attention to your smart phone or tablet, try engaging your colleagues Tips for cultivating supportive relationships at work and beyond: o Turn to co-workers for support Having a solid support system at work can help buffer you from the negative effects of job stress Just remember to listen to them and offer support when they are in need as well If you don't have a close buddy at work, you can take steps to be more social with your coworkers When P a g e 51- 64 you take a break, for example, instead of directing your attention to your smartphone or tablet, try engaging your colleagues o Lean on your friends and family members As well as increasing social contact at work, having a strong network of supportive friends and family members is extremely important to managing stress in all areas of your life On the flip side, the more lonely and isolated you are, the greater your vulnerability to stress o Build new satisfying friendships If you don't feel that you have anyone to turn to—at work or in your free time—it's never too late to build new friendships Meet new people with common interests by taking a class or joining a club, or by volunteering your time As well as being a great way to expand your social network, being helpful to others—especially those who are appreciative— delivers immense pleasure and can help to signigicantly reduce stress (22) P a g e 52- 64 PART VI: RECOMMENDATION As this survey was conducted in a short time and also number of respondents (n=265) is not significant large The research was an internal survey for employees of DHG Pharma Company Therefore, the results and findings may not be applicable to other companies in the same business sector In addition, this research is likely to be repeated at different intervals in order to test its reliability in case different conditions occur Finally, since satisfaction is a complication or psychology, this study’s reliability will be more reliable provided that another research engaging qualitative methods and so including leading professionals’ responses This study may also be expanded to measure the impact of Job Satisfaction, Employee Pay Level, Work Role Ambiguity, Job Tension on DHG Pharma Company’s Organization Commitment of employees P a g e 53- 64 REFERENCES Jump up to: a b c d e Spector, P.E (1997) Job satisfaction: Application, assessment, causes and consequences Thousand Oaks, CA: SAGE Jump up to: a b Hulin, C L., & Judge, T A (2003) Job attitUdes In W C Borman, D R ligen, & R J Klimoski (Eds.), Handbook of psychology: Industrial and organizational psychology (pp 255-276) Hoboken, NJ: Wiley Jump up to: a b c Thompson, E.R.; Phua F.T.T (2012) "A Brief Index of Affective Job Satisfaction" Group & Organization Management 37 (3): 275–307 doi:10.1177/1059601111434201 Jump up to: a b c Moorman, R.H (1993) "The influence of cognitive and affective based job satisfaction measures on the relationship between satisfaction and organizational citizenship behavior" Human Relations (6): 759–776 doi:10.1177/001872679304600604 Jump up ^ Locke,E.A (1976) The nature and causes of job satisfaction In M.D Dunnette (Ed.), Handbook of industrial and organizational psychology (pp.12971349) Chicago: Rand McNally Jump up ^ Spector, P.E (1997) Job satisfaction: Application, assessment, causes and consequences Thousand Oaks, CA: SAGE line feed character in |title= at position 54 (help) Jump up ^ Kalleberg, A.L (1977) "Work values and job rewards—Theory of job satisfaction" American Sociological Review 42: 124–143 doi:10.2307/2117735 JSTOR 2117735 P a g e 54- 64 Jump up ^ Tomaževič, N.; Seljak, J.; Aristovnik, A (2014) "Factors Influencing Employee Satisfaction in the Police Service: The Case of Slovenia" Personnel Review 43 (2): 209–227 doi:10.1108/pr-10-2012-0176 Jump up ^ Kumari, G., Joshi, G., and Pandey, K.M., "Analysis of Factors Affecting Job Satisfaction of the Employees in Public and Private Sector", International Journal of Trends in Economics Management and Technology (IJTEMT), ISSN 2321-5518, Vol Issue 1, February 2014 10 http:// hr.harvard.edu/salary-ranges 11 http:// sk.sagepub.com/reference/edleadership/n492.xml 12 http:// thelawdictionary.org/role-ambiguity/ 13 http://www.brighthub.com/office/human-resources/articles/102263.aspx 14 http://stress.lovetoknow.com/Definition_of_Work_Stress 15 https://en.wikipedia.org/wiki/Organizational_commitment 16 http://asqhdandl.org/uploads/3/4/6/3/34636479/commitment.pdf 17 http://study.com/academy/lesson/organizational-commitment-definition-theorytypes.html 18 Management Leading & Collaborating in a Competitive World 19 Talking the Measure of Work 20 http://www.dhgpharma.com.vn/images/B.Codong.2016/Annual%20Report%20DH G%20Pharma%202015%20V2.pdf 21 https://www.researchgate.net/publication/232579182_Work_Role_Ambiguity_Job _Satisfaction_and_Job_Performance_Meta-Analyses_and_Review 22 https://www.helpguide.org/articles/stress/stress-at-work.htm P a g e 55- 64 Appendix 1: Survey Questionnaires EMPLOYEE COMMITMENT SURVEY (Use only for research purposes) This survey aims to find out the relationship between employees Organization Commitment with Job Satisfaction, Employee Pay Level, Work Role Ambiguity, Job Tension in DHG Pharma company How to answer Please use Black or Blue ink For most of the questions there is a list of possible answers with a box beside each one Please choose your answer and put a cross in the box beside it For example, X If you make a mistake, please circle out the whole cross and then put a cross in the correct answer X X I = strongly disagree = slightly disagree, = neither disagree nor agree, = slightly agree, and = strongly agree P a g e 56- 64 P a g e 57- 64 P a g e 58- 64 General information about yourself Gender  Male  Female Age  24 – 29  30 – 35  41 – 46  47 – 60  36 – 40 Education  High school  College  Bachelor  Master  Ph.D  Other…… Your position  Manager (has subordinates)  Staff (no subordinate) How long have you been working for Rang Dong Joint Stock Company (Working Experience) …………year(s)…………month(s) Thank you for your answer !!! P a g e 59- 64 Appendix 2: Presentation Slides P a g e 60- 64 P a g e 61- 64 P a g e 62- 64 P a g e 63- 64 ... any organization and Organization commitment has been an important focal point for organizational How does the organization create employee’s commitment? This question is what heads of an organization. .. Relationships with Coworkers and Supervisors Leadership Initiating Structure Consideration Table 2.4: Prerequisites for organizational commitment In organizational behavior and industrial and organizational... engage in organizational citizenship behavior such as helping other members, putting forth extra effort, and being an advocate for the organization (17) Job Satisfaction Job satisfaction or DHG Pharma s