UNIVERSITY OF ECONOMICS HO CHI MINH CITY INTERNATIONAL SCHOOL OF BUSINESS - NGUYEN THI TRUONG LE DETERMINANTS OF WORKER’S JOB SATISFACTION AND EFFECTIVENESS OF UNION IN GARMENT INDUSTRY IN VIET NAM MASTER OF BUSINESS SUPERVISORS: DR NGUYEN QUYNH MAI Ho Chi Minh City – Year 2014 ACKNOWLEDGE Firstly, I would like to express my appreciate to my research supervisor, Dr Nguyen Quynh Mai for her support, suggesting, guidance during time of my dissertation Secondly, I would like to express my gratitude to Prof Nguyen Dinh Tho for his effort in thoroughly guidance, encourage and support to every student throughout two-year-course Thirdly, this research was contributed by my classmates, my colleagues, and was moral assisted by my family I would like to send my deepest thank to them Last, ISB staff did helped, supported with their best for convenience of MBUS 2012 I appreciate very much for their contribution to my present result ABSTRACT Garment industry in Vietnam has developed impressively and has quite highly demanded in employing labor force Human resources management in this field is very important to maintain the stable producing It contains many characteristics which may impact to the workers to feel more satisfaction and perform their job better Keep the staff satisfy to work better, more efficient is always one of business goals, especially in this special industry This study aims to investigate which factor affecting to worker‟s job satisfaction and how the effective of union effect to worker‟s job satisfaction through these factors The result showed that indirect compensation, working environment and relationship with supervisor factors effect to worker‟s relationship Among three effect factors, relationship with the supervisor has the most important to job satisfaction and following is working environment and indirect compensation The additional finding in this research is effectiveness of union has a moderating affect to the relationship between job satisfaction and independent variables included indirect compensation and Working Environment This finding will help to strengthen the effectiveness of Union to structure and operate effectively to satisfy their union members Contents ACKNOWLEDGE ABSTRACT CHAPTER INTRODUCTION 1.1 Research background .2 1.2 Research problem: 1.3 Research objective 1.4 Scope: 1.5 Significant of study (Research contribution) 1.6 Organization (Structure) CHAPTER 2: LITERATURE REVIEW .6 2.1 Concept and Definition: 2.1.1 Job satisfaction .6 2.1.2 Direct financial compensation 2.1.3 Indirect compensation: 2.1.4 Working environment .8 2.1.5 Feedback 2.1.6 Relationship with supervisor 2.1.7 Union .10 2.2 Model and Theories: 10 2.2.1 Affect theory 10 2.2.2 Equity theory 11 2.2.3 Two-factor theory (motivator-hygiene theory) .12 2.2.4 Job characteristics model 13 2.3 Previous researches about job satisfaction for worker in garment industry .13 2.4 Conceptual model frame work and Hypothesis 14 2.4.1 Model frame: 14 2.4.2 Hypothesis .15 CHAPTER 3: RESEARCH METHOD 18 3.1 Research Design: 18 3.2 Measurement and Questionnaire design: 18 3.3 Data collection method: .21 Data Analysis Method: .21 3.4.1 Descriptive statistics of sample: 21 3.4.2 Reliability test: .21 3.4.3 Exploratory Factor Analysis (EFA) 22 3.4.4 Regression Analysis .23 3.4.5 Process Analysis .23 CHAPTER DATA ANALYSIS 24 4.1 Descriptive statistics of sample 24 4.1.1 Final sample 24 4.1.2 Demographic Statistics 24 4.2 The construct measurement scale .26 4.2.1 Cronbach’s Alpha results of each measurement 26 4.2.2 Exploratory Factor Analysis 33 4.3.Adjustment of hypotheses and research model 36 4.4 Regression Analysis: .37 4.4.1 Pearson Correlation Coefficient 37 4.4.2 Regression Analysis 38 4.4.3 Process Analysis in SPSS 42 4.5 Discussion about findings 47 CHAPTER CONSLUSIONS AND RECOMMENDATIONS 49 5.1 Recommendations .49 5.1.1 Indirect compensation: 49 5.1.2 Working Environment: 50 5.1.4 Effectiveness of Union 52 5.2 Limitations and recommendation for future researches 53 References 54 APPENDIX A: Descriptive Statistics 57 APPENDIX B: PROCESS RESULT .62 APPENDIX C: Questionnaire in English 69 APPENDIX D: Questionnaire in Vietnamese 73 List of table Table 4.1 Descriptive statistics of sample……………………………………………………………………………………………………………24 Table 4.2 Reliability statistics for direct compensation….……………………………………………………………………………………25 Table 4.3 Reliability statistics for Indirect compensation…………………………………………………………………………………….26 Table 4.4 Reliability statistics for indirect compensation (extracted ICS2)………………………………………………………….26 Table 4.5 Reliability statistics for Working Environment…………………………………………………………………………………….27 Table 4.6 Reliability statistics for Relationship with supervisor………………………………………………………………………….28 Table 4.7 Reliability statistics for Feedback……………………………………………………………………………………………………… 28 Table 4.8 Reliability statistics for Union…………………………………………………………………………………………………………… 30 Table 4.9 Reliability statistics for Job Satisfaction……………………………………………………………………………………………….31 Table 4.10: KMO and Bartlett’s test for independent variables………………………………………………………………………… 33 Table 4.11 : Rotated Component Matrixa………………………………………………………………………………………………………… 33 Table 4.12 Rotated Component Matrixa…………………………………………………………………… 33 Table 4.13 Pearson Correlation Coefficient…………………………………………………………………………………………………………36 Table 4.14 Summary output of Regression…………………………………………………………………………………………………………37 Table 4.15 Summary output of Regression…………………………………………………………………………………………………………38 Table 4.16 Regression Union and Job satisfation……………………………………………………………………………………………… 39 Table 4.17 Hypothesis testing…………………………………………………………………………………………………………………………….46 CHAPTER INTRODUCTION 1.1 Research background Overview the garment industry of Vietnam: Vietnam‟s textile and garment sector has seen fast and sustainable growth over the past years, playing an important role in national socio-economic development Demand for labor in the sector is huge Every year, the sector gives employment for 2.2 million people, generating income for the workers Export value of textile and garment products in recent years has been ranking number two in the country‟s total export revenue, earning a major source of foreign exchange and contributing significantly to Vietnam‟s gross national product and budget According to government statistic office Vietnam, Labor of Vietnam Textile industry is not focused, because over 70% of the textile enterprises are small and medium enterprises, which number less than 300 employees Nearly 20% of enterprises employed from 300 workers to 1000 workers, the factories have 1000 workers now come up only 6% With such dispersion, if not linked to the training activities will be difficult to implement efficiently Textile industry workers increased speedily and concentrated mainly in the non-state enterprises, then in the enterprise with 100% foreign capital These two types currently attract two thirds of the entire sector workers Often the majority of these businesses today tend to attract for new labor, but not care deeply in keeping the current ones Lead to a scramble for labor among firms in the sector has increased at an alarming rate; the concern was their ability to leave the company is too big due to dissatisfaction Due to the labor requirements of the garment industry increased very fast response to worker satisfaction; this industry is actually in lack of labor Besides that, the labor force is still weak not only at professional level but also at management one If we not solve this problem rapidly, it will be hard to compete and win on the market So, it is really necessary for the industry to know the characteristic of labor force and orient for a new period (Ministry of Industry, Vietnam Textile and Garment Group, 2013) This study is to identify the factors make workers feel satisfaction and perform their work better then can affect to the economic and social development of countries involved 1.2 Research problem: Because job satisfaction is serious in organizations, the study of what satisfies workers is increasingly important Therefore, the goal of this research project was to answer the overarching question: How are workers across satisfied at work? Job satisfaction is important in every worker‟s life Workers spend more than thirds of our waking hours at work which means that if we are not happy with their jobs, they are also unhappy with their personal lives Workers who find satisfaction in their jobs are more enthusiastic when it comes to performing their responsibilities Job satisfaction definitely plays an important role in determining our efficiency and productivity Job satisfaction gives them motivation and helps them become more optimistic no matter what challenge they may face at work It encourages workers to always give their best shot in everything they In addition, a person who is truly satisfied with his or her career life helps create a more positive work environment Workers who have job satisfaction can help boost the morale of his or her co-employees and will encourage them to be optimistic about their job Many experts believe that job satisfaction trends can affect labor market behavior and influence work productivity, work effort, employee absenteeism and staff turnover Moreover, job satisfaction is considered a strong predictor of overall individual well-being (Diaz-Serrano and Cabral Vieira, 2005), as well as a good predictor of intentions or decisions of employees to leave a job (Gazioglu and Tansel, 2002) Beyond the research literature and studies, job satisfaction is also important in everyday life Organizations have significant effects on the people who work for them and some of those effects are reflected in how people feel In addition, measures of job quality seem to be useful predictors of future labor market behavior Workers‟ decisions about whether to work or not, what kind of job to accept or stay in, and how hard to work are all likely to depend in part upon the worker‟s subjective evaluation of their work, in other words on their job satisfaction.(Clark, 1998) Second one, this research is to find out the union impact to job satisfaction The goal was to investigate the mediating role of compensation, relationship with supervisor, feedback and working environment versus relationship between union and job satisfaction For some country, people concern on the effective operation of union, it is speculated that if clothing factory workers were free to choose their own union and were socialized with regard to the functions of a union, it would be doubtful whether they would still be satisfied with the garment workers union (Chetty, 1983) 1.3 Research objective - To determine factors influence worker satisfaction in garment companies - To determine the moderating impact of union to the relationship of worker‟s job satisfaction to direct and indirect compensation, working environment, relationship with supervisor and feedback 1.4 Scope: - Garment factories in Vietnam - Subject: workers in the garment factories in Vietnam 62 APPENDIX B: PROCESS RESULT Run MATRIX procedure: ***************** PROCESS Procedure for SPSS Release 2.13 *************** Written by Andrew F Hayes, Ph.D www.afhayes.com Documentation available in Hayes (2013) www.guilford.com/p/hayes3 ************************************************************************** Model = Y = JSF X = RWC M = UNI Sample size 204 ************************************************************************** Outcome: JSF Model Summary R R-sq MSE F df1 df2 p 6638 4406 1897 60.3724 3.0000 200.0000 0000 Model coeff se t p LLCI ULCI 4.0441 0368 109.9905 0000 3.9716 4.1166 UNI 3188 0514 6.2046 0000 2175 4201 RWC 0934 0491 1.9041 0583 -.0033 1902 int_1 0144 0664 2164 8289 -.1166 1453 constant Interactions: int_1 RWC X UNI ************************************************************************* 63 Conditional effect of X on Y at values of the moderator(s): UNI Effect se t p LLCI ULCI -1.0457 0784 0617 1.2710 2052 -.0432 2001 0000 0934 0491 1.9041 0583 -.0033 1902 1.0457 1085 1032 1.0509 2946 -.0950 3120 Values for quantitative moderators are the mean and plus/minus one SD from mean Values for dichotomous moderators are the two values of the moderator ************************************************************************** Data for visualizing conditional effect of X on Y Paste text below into a SPSS syntax window and execute to produce plot DATA LIST FREE/RWC UNI JSF BEGIN DATA -.9401 -1.0457 3.6371 0000 -1.0457 3.7108 9401 -1.0457 3.7845 -.9401 0000 3.9563 0000 0000 4.0441 9401 0000 4.1320 -.9401 1.0457 4.2756 0000 1.0457 4.3775 9401 1.0457 4.4795 END DATA GRAPH/SCATTERPLOT=RWC WITH JSF BY UNI ******************** ANALYSIS NOTES AND WARNINGS ************************* Level of confidence for all confidence intervals in output: 95.00 NOTE: The following variables were mean centered prior to analysis: RWC UNI 64 NOTE: All standard errors for continuous outcome models are based on the HC3 estimator END MATRIX - Run MATRIX procedure: ***************** PROCESS Procedure for SPSS Release 2.13 *************** Written by Andrew F Hayes, Ph.D www.afhayes.com Documentation available in Hayes (2013) www.guilford.com/p/hayes3 ************************************************************************** Model = Y = JSF X = ICS M = UNI Sample size 204 ************************************************************************** Outcome: JSF Model Summary R R-sq MSE F df1 df2 p 6806 4631 1820 68.2226 3.0000 200.0000 0000 Model coeff se t p LLCI ULCI 4.0353 0288 139.9531 0000 3.9785 4.0922 UNI 3245 0348 9.3187 0000 2558 3931 ICS 1831 0581 3.1544 0019 0686 2976 int_1 1321 0690 1.9143 0570 -.0040 2681 constant Interactions: 65 int_1 ICS X UNI ************************************************************************* Conditional effect of X on Y at values of the moderator(s): UNI Effect se t p LLCI ULCI -1.0457 0450 1110 4054 6856 -.1739 2640 0000 1831 0581 3.1544 0019 0686 2976 1.0457 3212 0694 4.6278 0000 1844 4581 Values for quantitative moderators are the mean and plus/minus one SD from mean Values for dichotomous moderators are the two values of the moderator ************************************************************************** Data for visualizing conditional effect of X on Y Paste text below into a SPSS syntax window and execute to produce plot DATA LIST FREE/ICS UNI JSF BEGIN DATA -.5213 -1.0457 3.6726 0000 -1.0457 3.6960 5213 -1.0457 3.7195 -.5213 0000 3.9398 0000 0000 4.0353 5213 0000 4.1308 -.5213 1.0457 4.2071 0000 1.0457 4.3746 5213 1.0457 4.5420 END DATA GRAPH/SCATTERPLOT=ICS WITH JSF BY UNI ******************** ANALYSIS NOTES AND WARNINGS ************************* Level of confidence for all confidence intervals in output: 95.00 66 NOTE: The following variables were mean centered prior to analysis: ICS UNI NOTE: All standard errors for continuous outcome models are based on the HC3 estimator END MATRIX - Run MATRIX procedure: ***************** PROCESS Procedure for SPSS Release 2.13 *************** Written by Andrew F Hayes, Ph.D www.afhayes.com Documentation available in Hayes (2013) www.guilford.com/p/hayes3 ************************************************************************** Model = Y = JSF X = WKE M = UNI Sample size 204 ************************************************************************** Outcome: JSF Model Summary R R-sq MSE F df1 df2 p 6982 4875 1737 103.3836 3.0000 200.0000 0000 Model coeff se t p LLCI ULCI 3.9442 0360 109.4466 0000 3.8731 4.0153 UNI 2172 0538 4.0343 0001 1110 3234 WKE 1601 0405 3.9496 0001 0802 2400 int_1 1452 0395 3.6768 0003 0673 2231 constant 67 Interactions: int_1 WKE X UNI ************************************************************************* Conditional effect of X on Y at values of the moderator(s): UNI Effect se t p LLCI ULCI -1.0457 0083 0477 1735 8624 -.0858 1024 0000 1601 0405 3.9496 0001 0802 2400 1.0457 3119 0665 4.6922 0000 1808 4430 Values for quantitative moderators are the mean and plus/minus one SD from mean Values for dichotomous moderators are the two values of the moderator ************************************************************************** Data for visualizing conditional effect of X on Y Paste text below into a SPSS syntax window and execute to produce plot DATA LIST FREE/WKE UNI JSF BEGIN DATA -1.0600 -1.0457 3.7083 0000 -1.0457 3.7170 1.0600 -1.0457 3.7258 -1.0600 0000 3.7745 0000 0000 3.9442 1.0600 0000 4.1139 -1.0600 1.0457 3.8407 0000 1.0457 4.1713 1.0600 1.0457 4.5020 END DATA GRAPH/SCATTERPLOT=WKE WITH JSF BY UNI ******************** ANALYSIS NOTES AND WARNINGS ************************* 68 Level of confidence for all confidence intervals in output: 95.00 NOTE: The following variables were mean centered prior to analysis: WKE UNI NOTE: All standard errors for continuous outcome models are based on the HC3 estimator END MATRIX - 69 APPENDIX C: Questionnaire in English Your comments for this survey questionnaire is completely voluntary and anonymous You can stop commenting on any time you wants This questionnaire refers to your view on job satisfation This Form is used for research, "DETERMINANTS OF WORKER‟S JOB SATISFACTION A35IN VIETNAM " This topic not only provide practical understanding of the factors affect to worker job satisfaction and the role of union in garment industry in Vietnam but also suggest some recommendation to increase the job satisfaction Part A Sex Male Female Age 18-22 22-36 36-45 >45 Education Secondary school High school University Master Monthly salary Under million VND From million VND to million VND From million VND to million VND Above million VND Location ………………………… Ownership (National) ………………………… 70 Part B CONTENT OF THE QUESTIONNAIRE Please express the degree of your agreement with statements given below (Indentify your rating by circling the number) Rating scale: - Strongly disagree to - Strongly agree STT Question Direct compensation 1.1 Presence of salary that makes me feel satisfied 1.2 Current income presence of attractive and competitive compensation system 1.3 My company has transparent and equitable policy of salary 1.4 Presence of salary that encourages better performance 2.1 Indirect compensation I am satisfied with other compensation such as insurance, annual leave…) 2.2 I am satisfied with other compensation such as period health checked, travelling, present year end…) 2.3 I believe company paid enough social and health insurance for worker 2.4 I can get the paid absences when I take leave 2.5 My company comply well indirect compensation such as insurance, annual leave… 3.1 Working enviroment In my workplace, staff is equipped and provided enough equipment for doing their work 3.2 The physical working condition in this factory Totally Disagre Disagree e Neutral Agree Totally Agree 71 (lightning, toilet, safety measure ) are good 3.3 My workplace is safety and convenience 3.4 I receive support from colleagues so much 3.5 Relationships between colleagues at my workplace are friendly and relaxed Relationship with supervisor 4.1 My supervisor welcome suggestion 4.2 I am received enough instructions to job well 4.3 Supervisor treats everyone equitably 4.4 Supervisor willing and able to help out 5.1 Feeback My supervisor gives me useful feedback about my job performance 5.2 My supervisor is usually available when I want performance information 5.3 I feel comfortable asking my supervisor for feedback about my performance 5.4 I receive the constructive feedback from the others 5.5 I feel easy to raise feedback to the others Effectiveness of union 6.1 The union does a lot for workers 6.2 I think the union protects workers‟ right 6.3 Union in my company is working well and effective 6.4 I always get the supporting from union on issues related to work and benefit 6.5 I can get the share ideas or get advice from others union members 7.1 Job satisfaction I am satisfied with my job 72 7.2 I am satisfied with what I achieve at work 7.3 I am happy with my work 7.4 I love my job 73 APPENDIX D: Questionnaire in Vietnamese Các Anh/Chị đóng góp ý kiến cho phiếu khảo sát hoàn toàn tự nguyện ẩn danh Các Anh/Chị dừng cho ý kiến vào thời điểm anh/chị muốn Phiếu khảo sát đề cập đến quan điểm anh/chị hài lòng công việc Phiếu dùng cho đề tài nghiên cứu “ Một vài nhân tố ảnh hưởng đến hài lòng cơng việc vai trò cơng đồn ngành cơng nghiệp may mặc miền Nam Việt Nam” Đề tài không cung cấp hiểu biết thực tiễn vai trò yếu tác động đến thỏa mãn công nhân mà đưa gợi ý để nâng cao hài lòng cơng việc Xin anh/chị vui lòng dành chút thời gian để chọn câu trả lời thích hợp chân thành cảm ơn giúp đỡ anh/chị !!! Phần A Giới tính Nam Nữ Tuổi 18-25 26-35 36-45 >45 Bằng cấp cao Cấp Cấp Cao đẳng/Đại học Khác (vui lòng ghi rõ) Thu nhập hàng tháng Dưới triệu Triệu-4 triệu triệu - triệu 74 Trên triệu Địa điểm …………………… Chủ sở hữu …………………… Phần B Rất không Câu hỏi STT đồng ý Các phúc lợi trực tiếp 1.1 Mức lương hợp lý Mức lương cạnh tranh hấp dẫn so với công ty 1.2 khác 1.3 Cơng ty tơi có sách lương hấp dẫn rõ ràng 1.4 Tôi nghĩ mức lương đủ chi tiêu Các phúc lợi gián tiếp Tơi hài lòng với chế độ phúc lợi khác lương (bảo 2.1 hiểm, nghỉ phép năm, nghỉ bệnhmà tơi nhận Tơi hài lòng với chế độ phúc lợi khác lương (khám sức khỏe định kỳ, du lịch, quà tặng cuối năm ) mà nhận 2.2 Tơi tin cơng ty đóng bảo hiểm xã hội y tế đầy đủ cho 2.3 công nhân 2.4 Tôi chi trả tiền nghỉ phép đầy đủ 2.5 Công ty thực tốt chế độ phú lợi khác ngồi Khơng Phân Đồng đồng ý vân ý Rất đồng ý 75 lương (bảo hiểm, phép năm, du lịch ) Môi trường làm việc Nhân viên trang bị đầy đủ dụng cụ, phương tiện 3.1 làm việc Điều kiện làm việc (đèn, nhà vệ sinh, dụng cụ bảo hộ…) 3.2 nơi làm việc tốt 3.3 Nơi làm việc an toàn tiện lợi 3.4 Tôi nhận nhiều giúp đỡ từ đồng nghiệp Mối quan hệ đồng nghiệp nơi làm việc thân thiện 3.5 thoải mái Mối quan hệ với quản lý 4.1 Quản lý tơi khuyến khích phản hồi từ công nhân 4.2 Tôi nhận đầy đủ hướng dẫn để làm việc tốt 4.3 Quản lý đối xử với tất người cách công 4.4 Quản lý sẵn sàng giúp đỡ Phản hồi Quản lý đưa phản hồi có ích hiệu làm việc 5.1 tơi Quản lý thường nghe tơi trình bày thơng tin, quan điểm 5.2 cá nhân Tôi thấy thoải mái hỏi quản lý việc nhận xét công 5.3 việc Tôi nhận thông tin phản hồi mang tính xây dựng từ 5.4 người khác 5.5 Tôi cảm thấy dễ dàng cho nhận phản hồi từ người 76 Tính hiệu cơng đồn 6.1 Tơi nghĩ cơng đồn hỗ trợ nhiều cho cơng nhân Tơi nghĩ cơng đồn cơng ty tơi ln bảo vệ quyền lợi cơng 6.2 nhân 6.3 Cơng đồn công ty làm việc tốt hiệu Tơi ln nhận hỗ trợ từ phía cơng đồn cho vấn 6.4 đề liên quan đến cơng việc quyền lợi Tơi chia sẻ nhận lời khun từ thành viên cơng 6.5 đồn Sự hài lòng cơng việc 7.1 Tơi thấy hài lòng với cơng việc 7.2 Tơi hài lòng với sản phẩm tạo 7.3 Tơi thấy vui làm việc 7.4 Tơi u thích cơng việc ... range of benefits It is a continuous association of wage earners for the purpose of maintaining and improving the conditions of their working lives Dale Yoder has defined trade union as a continuing... between job satisfaction and independent variables included indirect compensation and Working Environment This finding will help to strengthen the effectiveness of Union to structure and operate... most important to job satisfaction and following is working environment and indirect compensation The additional finding in this research is effectiveness of union has a moderating affect to the