TRƯỜNG ĐẠI HỌC MỞ TP HCM HO CHI MINH CITY OPEN UNIVERSITY UNIVERSITE LIBRE DE BRUXELLES SOLVAY BRUSSELS SCHOOL MBAVB3 TRẦN QUỐC TRÍ FACTORS AFFECTING JOB SATISFACTION OF SOFTWARE ENGINEERS AT HARVEYNASH VIETNAM MASTER PROJECT MASTER IN BUSINESS ADMINISTRATION (PART-TIME) Tutor’s Name: Dr VŨ VIỆT HẰNG Ho Chi Minh City (2010) i UNDERTAKINGS I would like to undertake that, to carry out this thesis “Factors affecting job satisfaction of software engineers at Harveynash Vietnam”, I have myself studied and researched the project’s issue, applied the academic knowledge obtained from the MBAVB program, and discussed with my supervisor I undertake that this is my own research project, all information, data and survey results are true and never announced in any other research projects Ho Chi Minh City, 22 February 2011 TRAN QUOC TRI ii ACKNOWLEDGEMENT I would like to express the deepest appreciation to Dr Vu Viet Hang for her time and her valuable advice to help me to finish this project I would like to thank all professors from both Open University and SolvayBusinessSchool who had given me the academic knowledge and shared with me their practical experience I also would like to thank all employees at Harveynash Vietnam who help me to join my survey for this project iii TUTOR’S COMMENTS It’s a pleasure to supervise Tran Quoc Tri for this final task forward completing his master in business management In the course of the project implementation, I’ve formed a good impression of the preparatory work completed by Tri as well as his responsibility and trustworthiness I’d like to highlight key accomplishment of this research report as follows The author succeeded in maintaining cohesion between different parts of the research, from the literature review, the status quo to solutions recommendation The research was developed on the basis of modern and solid theories The author achieved the primary objective of doing a serious work of collecting data and thoroughly analyzing them to provide meaningful information and recommendations The results of this research can be applied in real life situations and address them in a practical way I would encourage the management of the author’s company to adopt the recommendations of the research to help improve the employee satisfaction at Harveynash Vietnam Ho Chi Minh City, 22 February 2011 Dr VU VIET HANG iv TABLE OF CONTENT Chapter 1  Introduction 1  1.1  Overview 1  1.2  Research problem and research objectives 1  1.2.1  Research problem 1  1.2.2  Research objectives .2  1.3  Research questions and hypotheses 2  1.3.1  Research questions 2  1.3.2  Research hypotheses .3  1.4  Research methodology 4  1.5  Delimitations 4  1.6  Structure of the study 4  Chapter 2  Literature review 6  2.1  Concepts and definitions of job satisfaction 6  2.2  Theories relating to job satisfaction .7  2.2.1  Maslow’s Hierarchy of Need (1943) 7  2.2.2  Herzberg’s Two Factor Theory (1959) 8  2.2.3  Vroom’s Expectancy Theory (1964) 10  2.2.4  Hackman and Oldham's Job Characteristics Model (1974) 11  2.3  The measurement of job satisfaction 12  2.4  Researches related to job satisfaction .17  2.4.1  Organizational factors and job satisfaction .17  2.4.2  Demographic factors and job satisfaction 20  v 2.5  Developing the research model 21  Chapter 3  Research Methodology .23  3.1  Research Process 23  3.2  Population and sample 24  3.3  Data collection 25  3.4  Questionnaire design 26  3.5  Data analysis method 28  Chapter 4  Data analysis and findings 31  4.1  Profile of samples .31  4.2  Means of job satisfaction 31  4.3  Reliability analysis .34  4.4  Factor analysis 36  4.5  Comparison of job satisfaction by demographic factors 38  4.5.1  Comparison of job satisfaction by gender and marital status 38  4.5.2  Comparison of job satisfaction by years of experience 39  4.5.3  Comparison of job satisfaction by length of service and position 40  4.6  Regression analysis 41  4.6.1  Assumptions checking 41  4.6.2  Model evaluation 43  4.6.3  Evaluation of independent variables 44  4.7  Summary of research findings 45  4.8  Revised research model 48  Chapter 5  Conclusion and implication 49  vi 5.1  Conclusion 49  5.1.1  Means of job satisfaction 49  5.1.2  Personal antecedents of job satisfaction 49  5.1.3  Organizational antecedents of job satisfaction 51  5.2  Recommendations 51  5.3  Contributions 52  5.4  Limitations and recommendations for future researches 53  REFERENCES 54  APPENDIX 1  THE QUESTIONNAIRE 57  APPENDIX 2  PROFILE OF SAMPLES 64  APPENDIX 3  RELIABILITY ANALYSIS 65  APPENDIX 4  SUITABILITY ASSESSMENT FOR FACTOR ANALYSIS 69  APPENDIX 5  FACTOR EXTRACTION 71  APPENDIX 6  FACTOR ROTATION 77  APPENDIX 7  FACTORS COMPARISON OF JOB SATISFACTION BY DEMOGRAPHIC 79  APPENDIX 8  ASSUMPTIONS CHECKING FOR MULTIPLE REGRESSION 86  APPENDIX 9  REGRESSION ANALYSIS 87  vii LIST OF ABBREVIATIONS HVN Harveynash Vietnam IT Information Technology SPSS Statistical Package for Social Sciences JDI Job Descriptive Index JSS Job Satisfaction Survey MSQ Minnesota Satisfaction Questionnaire JIG Job in General SD Standard Deviation EFA Exploratory Factor Analysis KMO Kaiser-Meyer-Olkin VIF Variance Inflation Factor QC Quality Assurance CPI Consumer Price Index viii LIST OF FIGURES Figure 1: Outline of the thesis .5  Figure 2: Maslow’s Hierarchy of Needs .8  Figure 3: Herzberg’s two factor theory .9  Figure 4: Vroom expectancy theory 10  Figure 5: Job Characteristics Model 12  Figure 6: Six facial expressions from the Faces scale 15  Figure 7: Proposed research model 22  Figure 8: The research process 23  Figure 9: Revised research model .48  ix LIST OF TABLES Table 1: Internal consistency reliability for the Job Satisfaction Survey 14  Table 2: Items from the Michigan Organizational Assessment Questionnaire Satisfaction subscale 16  Table 3: Measurement scales of satisfaction level 27  Table 4: Divisions of facets satisfaction into 36 items .27  Table 5: Mappings between satisfaction scores and satisfaction levels 32  Table 6: Means of the items in construct “pay” 32  Table 7: Summary of satisfaction scores 33  Table 8: The results of the One-Sample T-test 33  Table 9: Results of reliability analysis of items 35  Table 10: Factor analysis results .38  Table 11: Multicollinearity check results for independent variables 42  Table 12: Regression model summary and statistical significant of the results .43  Table 13: Multiple regression results 44  Table 14: Summary of hypothesis testing results .47  74 11 845 2.486 76.876 12 671 1.973 78.849 13 640 1.881 80.730 14 594 1.748 82.477 15 548 1.613 84.090 16 525 1.543 85.634 17 477 1.402 87.035 18 455 1.338 88.373 19 403 1.187 89.559 20 392 1.153 90.712 21 374 1.099 91.811 22 332 976 92.787 23 314 923 93.710 24 301 884 94.594 25 298 876 95.471 26 264 776 96.247 27 207 608 96.855 28 198 581 97.436 29 190 558 97.994 30 168 495 98.489 31 150 440 98.930 32 133 392 99.321 33 124 365 99.686 34 107 314 100.000 Extraction Method: Principal Component Analysis Component Matrixa Component pay1 591 pay2 584 pay3 613 pay4 581 promotion1 594 75 promotion3 promotion4 569 supervision1 601 supervision2 632 supervision3 632 supervision4 595 benefits1 576 515 566 benefits2 benefits3 584 625 benefits4 532 rewards1 763 rewards2 636 rewards3 706 rewards4 748 procedures1 688 procedures2 662 procedures3 773 procedures4 761 coworkers1 614 coworkers2 676 coworkers3 606 coworkers4 570 work1 work2 583 558 619 work3 775 work4 674 communication1 communication3 communication4 Extraction Method: Principal Component Analysis a components extracted .539 76 Scale: Overall satisfaction Total Variance Explained Initial Eigenvalues Component Total % of Variance Extraction Sums of Squared Loadings Cumulative % 3.005 60.094 60.094 644 12.884 72.978 543 10.862 83.840 483 9.652 93.492 325 6.508 100.000 Extraction Method: Principal Component Analysis Component Matrixa Component overall1 863 overall2 749 overall3 718 overall4 741 overall5 796 Extraction Method: Principal Component Analysis a components extracted Total 3.005 % of Variance 60.094 Cumulative % 60.094 77 APPENDIX FACTOR ROTATION Rotated Component Matrixa Component pay1 698 pay2 710 pay3 681 pay4 652 promotion1 715 promotion3 633 promotion4 781 supervision1 660 supervision2 720 supervision3 803 supervision4 834 benefits1 816 benefits2 741 benefits3 703 benefits4 786 rewards1 663 rewards2 842 rewards3 754 rewards4 632 procedures1 780 procedures2 686 procedures3 828 procedures4 777 coworkers1 795 coworkers2 791 coworkers3 729 coworkers4 796 work1 674 work2 779 78 work3 882 work4 789 communication1 852 communication3 798 communication4 739 Extraction Method: Principal Component Analysis Rotation Method: Varimax with Kaiser Normalization a Rotation converged in iterations Component Transformation Matrix Component 426 410 369 411 415 202 057 186 307 260 -.069 -.297 -.326 -.096 772 133 324 -.074 016 148 059 -.167 -.027 -.093 932 -.261 016 -.552 -.311 -.036 260 139 -.001 275 599 275 -.007 -.377 840 -.141 -.114 158 018 067 -.301 -.400 689 191 -.047 -.523 123 -.076 178 -.001 384 096 004 -.393 -.058 -.558 022 608 -.068 292 -.281 058 115 -.619 -.033 001 -.081 654 232 -.055 -.161 663 -.354 -.051 168 144 -.549 Extraction Method: Principal Component Analysis Rotation Method: Varimax with Kaiser Normalization 79 APPENDIX COMPARISON OF JOB SATISFACTION BY DEMOGRAPHIC FACTORS Comparison of job satisfaction by gender T-Test Group Statistics Gender Overall satisfaction N Mean Male Female Std Deviation Std Error Mean 133 3.929 7362 0638 48 3.929 6760 0976 Independent Samples Test Levene's Test for Equality of Variances t-test for Equality of Means 95% Confidence Interval of the Sig (2- F Overall Sig t df Mean Difference Std Error tailed) Difference Difference Lower Upper Equal satisfaction variances 835 362 001 179 999 0002 1214 -.2394 2397 001 89.971 999 0002 1166 -.2315 2318 assumed Equal variances not assumed Mann-Whitney Test Test Statisticsa Ranks Overall satisfaction Gender N Mean Rank Sum of Ranks Overall satisfaction Male 133 90.83 12080.50 Female 48 91.47 4390.50 Total 181 Mann-Whitney U Wilcoxon W Z Asymp Sig (2-tailed) a Grouping Variable: Gender 3169.500 12080.500 -.073 942 80 Comparisonof job satisfaction by marital status T-Test Group Statistics Marital status Overall satisfaction N Single Married Mean Std Deviation Std Error Mean 77 3.883 7486 0853 104 3.963 6977 0684 Independent Samples Test Levene's Test for Equality of Variances t-test for Equality of Means 95% Confidence Interval of the Sig (2- F Overall Sig t Equal satisfaction variances 260 611 assumed Df - - variances not 735 assumed tailed) Difference Std Error Difference Difference Lower Upper 179 459 -.0803 1082 -.2939 1332 157.216 464 -.0803 1094 -.2963 1356 743 Equal Mean Mann-Whitney Test Test Statisticsa Ranks Marital Overall satisfaction Mean Sum of Rank Ranks status N Single 77 87.63 6747.50 Married 104 93.50 9723.50 Total 181 Overall satisfaction Mann-Whitney U 3744.500 Wilcoxon W 6747.500 Z Asymp Sig (2-tailed) a Grouping Variable: Marital status -.748 455 81 Comparisonof job satisfaction by years of experience Oneway ANOVA Descriptives Overall satisfaction 95% Confidence Interval for N Mean Less than years Mean Std Std Deviation Error Lower Bound Upper Bound Minimum Maximum 23 4.104 6765 1411 3.812 4.397 2.6 5.6 - years 106 3.862 7093 0689 3.726 3.999 2.0 5.2 - 10 years 47 3.957 7768 1133 3.729 4.186 2.4 5.4 4.280 3633 1625 3.829 4.731 3.8 4.8 181 3.929 7189 0534 3.824 4.035 2.0 5.6 More than 10 years Total Test of Homogeneity of Variances Overall satisfaction Levene Statistic df1 1.679 df2 Sig 177 173 ANOVA Overall satisfaction Sum of Squares Between Groups df Mean Square F 1.833 611 Within Groups 91.182 177 515 Total 93.015 180 Sig 1.186 316 Kruskal-Wallis Test Test Statisticsa,b Ranks Overall satisfaction Years of experience N Mean Rank Overall satisfaction Less than years Chi-Square 23 102.76 - years 106 86.44 Asymp Sig - 10 years 47 92.56 a Kruskal Wallis Test 118.80 More than 10 years Total 181 df b Grouping Variable: Years of experience 3.440 329 82 Comparisonof job satisfaction by number of years working at the company Oneway ANOVA Descriptives Overall satisfaction 95% Confidence Interval for Mean N Mean Std Deviation Std Error Lower Bound Upper Bound Minimum Maximum Less than year 26 4.262 4759 0933 4.069 4.454 3.0 5.6 - years 64 4.075 6566 0821 3.911 4.239 2.8 5.4 - years 74 3.759 7578 0881 3.584 3.935 2.0 5.2 More than years 17 3.612 7983 1936 3.201 4.022 2.4 4.8 Total 7189 0534 3.824 4.035 2.0 5.6 181 3.929 Test of Homogeneity of Variances Overall satisfaction Levene Statistic df1 df2 4.321 Sig 177 006 ANOVA Overall satisfaction Sum of Squares Between Groups df Mean Square 8.077 2.692 Within Groups 84.938 177 480 Total 93.015 180 Robust Tests of Equality of Means Overall satisfaction Statistica df1 df2 Sig Welch 6.566 56.150 001 Brown-Forsythe 5.813 76.746 001 a Asymptotically F distributed F Sig 5.611 001 83 Post Hoc Tests Multiple Comparisons Overall satisfaction Games-Howell 95% Confidence Interval (I) No years at HVN (J) No years at HVN Mean Difference (I-J) Std Error Sig Lower Bound Upper Bound Less than year - years - years - years 1865 1243 443 -.141 514 - years 5021* 1283 001 164 840 More than years 6498* 2149 028 056 1.244 Less than year -.1865 1243 443 -.514 141 - years 3155* 1204 048 002 629 More than years 4632 2103 154 -.121 1.047 Less than year -.5021* 1283 001 -.840 -.164 - years -.3155* 1204 048 -.629 -.002 1477 2127 898 -.441 736 Less than year -.6498* 2149 028 -1.244 -.056 - years -.4632 2103 154 -1.047 121 - years -.1477 2127 898 -.736 441 More than years More than years * The mean difference is significant at the 0.05 level Comparison of job satisfaction by position Oneway ANOVA Descriptives Overall satisfaction 95% Confidence Interval for Mean N Developer Mean Std Deviation Std Error Lower Bound Upper Bound Minimum Maximum 127 3.906 7406 0657 3.775 4.036 2.0 5.6 QC 41 3.868 7080 1106 3.645 4.092 2.4 5.4 BA 10 4.280 3011 0952 4.065 4.495 3.6 4.6 PM 4.600 3464 2000 3.739 5.461 4.2 4.8 181 3.929 7189 0534 3.824 4.035 2.0 5.6 Total 84 Test of Homogeneity of Variances Overall satisfaction Levene Statistic df1 df2 3.323 Sig 177 021 ANOVA Overall satisfaction Sum of Squares Between Groups df Mean Square 2.804 935 Within Groups 90.211 177 510 Total 93.015 180 Robust Tests of Equality of Means Overall satisfaction Statistica df1 df2 Sig Welch 6.062 9.477 014 Brown-Forsythe 3.714 48.517 017 a Asymptotically F distributed F Sig 1.834 143 85 Post Hoc Tests Multiple Comparisons Overall satisfaction Games-Howell 95% Confidence Interval Mean Difference (I) Position (J) Position Developer QC 0372 1286 991 -.301 376 BA -.3745* 1157 020 -.699 -.050 PM -.6945 2105 158 -1.884 495 Developer -.0372 1286 991 -.376 301 BA -.4117* 1459 037 -.805 -.018 PM -.7317 2285 123 -1.750 286 Developer 3745* 1157 020 050 699 QC 4117* 1459 037 018 805 PM -.3200 2215 556 -1.395 755 Developer 6945 2105 158 -.495 1.884 QC 7317 2285 123 -.286 1.750 BA 3200 2215 556 -.755 1.395 QC BA PM (I-J) Std Error * The mean difference is significant at the 0.05 level Sig Lower Bound Upper Bound 86 APPENDIX ASSUMPTIONS CHECKING FOR MULTIPLE REGRESSION 87 APPENDIX REGRESSION ANALYSIS Descriptive Statistics Mean Overall satisfaction Std Deviation N 3.929 7189 181 2.9655 74432 181 3.31 680 181 3.9489 72203 181 Fringe benefits 3.666 6287 181 Contingent rewards 3.477 8448 181 4.5262 81330 181 4.66 709 181 Nature of work 4.5580 72079 181 Communication 3.9151 68366 181 Pay Promotion Supervision Operating procedures Coworkers Model Summaryb Std Error of the Model R R Square 810a Adjusted R Square 657 Estimate 639 Durbin-Watson 4320 1.937 a Predictors: (Constant), Communication, Operating procedures, Coworkers, Fringe benefits, Nature of work, Promotion, Supervision, Pay, Contingent rewards b Dependent Variable: Overall satisfaction ANOVAb Model Sum of Squares df Mean Square Regression 61.098 6.789 Residual 31.916 171 187 Total 93.015 180 F Sig 36.372 a Predictors: (Constant), Communication, Operating procedures, Coworkers, Fringe benefits, Nature of work, Promotion, Supervision, Pay, Contingent rewards b Dependent Variable: Overall satisfaction 000a 88 Coefficientsa Model Unstandardized Standardized Collinearity Coefficients Coefficients Statistics B (Constant) Std Error -.328 346 Pay 262 061 Promotion 147 Supervision Beta t Sig Tolerance VIF -.949 344 272 4.293 000 502 1.994 060 139 2.458 015 623 1.604 089 057 090 1.567 119 611 1.636 Fringe benefits 192 061 168 3.155 002 707 1.414 Contingent rewards 184 055 216 3.343 001 480 2.081 014 040 016 351 726 969 1.032 Coworkers 123 059 121 2.101 037 601 1.663 Nature of work 071 050 071 1.402 163 788 1.269 Communication 086 052 082 1.643 102 815 1.227 Operating procedures a Dependent Variable: Overall satisfaction ... facets of their job To determine the demographic factors affecting overall job satisfaction To measure the level of impact of organizational factors on overall job satisfaction of software engineers. .. research in measuring the level of job satisfaction of software engineers at HVN as well as the impact of demographic and organizational factors on job satisfaction 1.2.2 Research objectives In attempting... difference in job satisfaction between software engineers having different length of service for the company H1d: There is significant difference in job satisfaction between software engineers having