Factors affecting to the job satisfaction of staffs at vinasoy corporation

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RESEARCH PROJECT (BMBR5103) FACTORS AFFECTING TO THE JOB SATISFACTION OF STAFFS AT VINASOY CORPORATION STUDENT’S FULL NAME STUDENT ID INTAKE : VO THI THANH THUY : CGS00018263 : MAY 2014 ADVISOR’S NAME & TITLE : DR. NGUYEN THE KHAI (DBA) Ho Chi Minh City, August 2015 1 Advisor’s assessment ……………………………………………………………………………………… ……………………………………………………………………………………… ……………………………………………………………………………………… ……………………………………………………………………………………… ……………………………………………………………………………………… ……………………………………………………………………………………… ……………………………………………………………………………………… ……………………………………………………………………………………… ……………………………………………………………………………………… ……………………………………………………………………………………… ……………………………………………………………………………………… ……………………………………………………………………………………… ……………………………………………………………………………………… ……………………………………………………………………………………… ________________ Advisor’s signature 2 ACKNOWLEDGEMENT To complete this paper, I have to send my special thanks to Nguyen The Khai, DBA who has shown our class every step of how to do a research and run SPSS software. Moreover, he had even personally gone through and give valuable advised on our paper to every individual in class. Without such detail instructions and advise, we are unable to complete this paper of Business Research Methods. I would also like to thanks employees of Vinasoy, whom had help to complete the questionnaires which is essential for me to conduct further on the research. Lastly, I would like to thanks my family for supporting me during my MBA program and also my classmate whom have shared their knowledge and time to learn together in order to complete all assignments especially this paper. 3 Contents Abtract .........................................................................................................................7 Chapter1: INTRODUCTION Introduction of Vynasoy .......................................8 1.1 Introduction ...................................................................................................8 Main product of Vinasoy .........................................................................................8 Milestones: ...............................................................................................................8 Outstanding Achievement Vinasoy: .......................................................................9 1.2 Research Problem Statement ...........................................................................12 1.3 Purpose Of Research........................................................................................12 1.4 Scope Of Study ...............................................................................................13 1.5 Significance of Research ................................................................................13 1.6 Limitation Of Research...................................................................................13 Chapter 2 – LITERATURE REVIEW .................................................................15 2.1 Definition Of Con struct ..............................................................................15 2.1.1 Job Sactisfaction ........................................................................................15 2.1.2 Perceived Ability- Job fit ..........................................................................15 2.1.3 Supportive and non controlling suppervision ...........................................16 2.1.4 Pairness in skill- Based Pay ......................................................................18 2.1.5 Goal and Process clarity............................................................................20 2.2 Conceptual research Model .............................................................................24 2.3 Summary Of HyPotheses ................................................................................24 Chapter 3 – RESEARCH METHODOLOGY .....................................................24 3.1 Data Collection ................................................................................................25 3.2 Measure of Earch Construct ............................................................................25 3.2.1 Job Satisfaction..........................................................................................25 4 3.2.2 Perceived Ability- Job fit ..........................................................................26 3.2.3 Supportive and non controlling suppervision .......................................27 3.2.4 Pairness in skill- Based Pay.......................................................................28 3.2.5 Goal and Process clarity .......................................................................29 3. 3 Data Analysis ..................................................................................................30 Chapter 4 – RESEARCH FINDINGS AND ANALYSIS ....................................31 4.1 Data Analysi s ..............................................................................................31 4.2 Reliability Satistics ..........................................................................................31 4.3 Descriptive Statistics ......................................................................................33 4.4 Hypothesis Testing Result ..............................................................................34 Chapter 5 – DISCUSSION AND RECOMMENDATIONS ...............................36 5.1 Discussion ........................................................................................................36 5.2 Managerial Implication ...................................................................................37 5.3 Limitations And Recommendations For Fruture Research .............................37 Refeference ...............................................................................................................38 Appendix - Survey Questionnaire .............................................................................40 5 LIST OF TABLE Table 1: Measurement of Job Satisfactio ..................................................................25 Table 2: Measurement of Perceived Ability- Job fit .................................................26 Table 3: Measurement of Supportive and non controlling suppervisionSupportive supervision : ..............................................................................................................27 Table 4: Measurement of Pairness in skill- Based Pay .............................................29 Table 5: Measurement of Goal and Process clarity ..................................................30 Table 6: Cronbach's Alpha- Internal consistency .....................................................31 Table 7: Cronbach's Alpha of Construct Job Satisfaction ........................................32 Table 8: Cronbach's Alpha of Construct Perceived Ability- Job fit .........................32 Table 9: Cronbach's Alpha of Construct Supportive and non controlling suppervision ..............................................................................................................32 Table 10: Cronbach's Alpha of Construct Pairness in skill- Based Pay ...................33 Table 11: Cronbach's Alpha of Goal and Process clarity .........................................33 Table 12: Descriptive Statistics .................................................................................33 6 Abtract The objective of this study is to discuss the factors affecting job satisfaction of employees in companies Vinasoy. Analysis of this study whether or not there is a correlation between Perceived Ability- Job fit, Supportive and non controlling suppervision, Pairness in skillBased Pay, Goal and Process clarity with Job satisfaction of employees, related to the employee's leave job in the company. Data were collected through questionnaires from staff of 5 departments. This study focuses on the staff of Vinasoy and just focus on the job satisfaction of employees. The results showed an improvement in assigning appropriate tasks, strengthen the support of their superiors, Pairness in skill- Based Pay, Goal and Process clarity to obtain satisfaction at work and commitment of staff working for the company. The results of this study have significant value for the Vinasoy‟s Human Resources Department to improve their policies to retain talents. Keywords: Job satisfaction, Perceived Ability- Job fit, Supportive and non controlling suppervision, Pairness in skill- Based Pay, Goal and Process clarity. 7 Chapter1: INTRODUCTION Introduction of Vynasoy 1.1 Introduction In 1997, VinaSoy establishment called dairy plant TX. In 2003, VinaSoy change business strategy towards specializing in the manufacture and supply of products processed from soybeans. On 16/05/2005, the company officially renamed Vietnam soy milk and use the brand name is VinaSoy. VinaSoy Company is one of the members of the General Quang Ngai Sugar Joint Stock Company. Scope of Activities of VinaSoy is specialized in manufacturing, supplying products of soy milk. Main product of Vinasoy - Soymilk Fami (box paper & paper bag). - Black sesame soy milk VinaSoy (box paper). Milestones: The event marked "exit" is on Christmas day 2001, Fami soya milk products are the United States Department of Agriculture selected as the exclusive soymilk provides "school milk program in Vietnam ". The event is "a lifeline" to the factory continued to operate and open the way forward. I n 2003, dairy plants Changchun became the first Vietnam Enterprise specializing in soymilk and pioneering products to enter the market as Fami soya milk. And dated 05.16.2005, brand personality Vinasoy with "natural, innovative, dedicated" milk factory was born and officially changed Changchun Co. Soy 8 Milk Vietnam - VinaSoy. This is the first step on the road to becoming "a leader" in Vietnam soya milk sector. In 2008, an event that marked the development of the production line poured VinaSoy TBA TBA 22 and 23 with a capacity of 20-24 thousand boxes / hour (capacity of the largest series of Tetra Pak) makes a breakthrough capacity and product quality. In 2012 Vinasoy now complete building systems brand portfolio and brand positioning. The biggest achievement is Vinasoy achieve Fami soya milk brand has captured the feelings of consumers, and is currently leading the soy milk market paper box with nearly 80% market share of the output. Outstanding Achievement Vinasoy: Since the transition to sustainable development phase to date, the Company soymilk Vietnam has gradually asserted -Vinasoy reputation through product quality standards and consumer trust. Typical prizes and certificates of merit were awarded a row in the last 3 years as the golden imprint encouraging collective companies increasingly have to make further efforts to deserve the trust of consumers. • 2015 • TOP 10 BEST BUSINESS GOODWILL VIETNAM • HIGH QUALITY VIETNAM GOODS BY CONSUMERS POLLS • BK POSITIVE CONTRIBUTION TO THE DEVELOPMENT OF HUMAN RESOURCES VIETNAM • 2014 • HIGH QUALITY VIETNAM GOODS BY CONSUMERS POLLS • TOP 10 VIETNAM PRESTIGE BRANDS 9 • VIETNAM SERVICE PRODUCTS credit • ETHICS GLOBAL ICONS • TOP 20 "GOLDEN BRAND FOOD VIETNAM" • 2013 • TOP 10 BRANDS ACHIEVE VinaSoy VIETNAM PRESTIGE 2013 • VinaSoy achieved title VIETNAM HIGH QUALITY PRODUCTS 2013 • Fami soya milk DAT HOT TOP 10 MARKS TIẾNG VIETNAM • SOY MILK FOOD FAMI DAT SAFETY CERTIFICATION 2013 • SOY MILK FOOD VinaSoy DAT SAFETY CERTIFICATION 2013 • SOY MILK certified FAMI TOP 20 ASEAN KNOWN BRANDS OF 2013 • 2012 • Soy milk FAMI PRODUCTS ACHIEVE TOP 20 GOLDEN TIME INTEGRATION • CERTIFICATES TOP 100 NCC RELIABILITY • FOOD SAFETY CERTIFICATION VinaSoy • FOOD SAFETY CERTIFICATION FAMI • VinaSoy achieved title VIETNAM HIGH QUALITY PRODUCTS 2012 • SOY MILK FAMI DAT AWARD FOR SUSTAINABLE BRANDS 100 2012 • 2011 • Fami soya milk DAT HOT TOP 50 MARKS TIẾNG VIETNAM 10 • MERIT TOP 20 SP-DV credit VIETNAM IN 2011 • VinaSoy achieved title VIETNAM HIGH QUALITY PRODUCTS 2011 VISION "Becoming and is recognized as a leading company in the nutritional products from soybeans in the market with business Vinasoy" MISSION "We are committed to continuous innovation and optimization of valuable nutrients from natural soy to bring the community the opportunity to use popular best quality products derived from soybeans. Thus, not only us, but our partners and surrounding communities will have a more meaningful life, a better and more prosperous " CORE VALUES - Blood Center: tireless efforts to bring these products optimal nutrition from natural soy source to the consumer - At the heart of cooperation: mounted with partners to deliver a better life, more meaningful & Prosperity - Clean & ethics: honest behavior and ethical in all activities and transactions - Innovation: always at the forefront of research and advanced scientific applications in soy processing technology in order to give birth to the strong brand and reputation - Spiritual Vietnam: proud to be a Vietnamese brand, is inherited good value "solidarity", "drinking water source memory" of Vietnam 11 1.2 Research Problem Statement Human resources are a valuable asset of Vinasoy. Therefore, developing and maintaining talent is very important for the organization because it is one of the factors that will have a major impact on the success of the business of the company. In recent years, state officials - the staff, especially the young staff, capable, resigned tends to increase. That makes the company leadership very worried. With high employee turnover, the company not only lost skilled labor and their experience but also bear many costs of recruitment and training of staff. Although no formal basis but company executives also somewhat aware that there is dissatisfaction on the job for several groups of people who have stopped working .. therefore urgent issue now is to find out the level of satisfaction of the staff and workers are working in Vinasoy to know which employees have job satisfaction or not, these factors make employees satisfied. That is the reason for choosing the theme: "Research on the job satisfaction of employees in Vinasoy" 1.3 Purpose Of Research The purpose of this study was to examine the relationship between original Perceived Job Ability- fit, Supportive and non controlling suppervision, print Pairness skill- Based Pay, Goal and Process clarity related to the satisfaction of employees in companies Vinasoy . Hopefully with the findings of the study could provide experimental evidence in the aspect of factors affecting job satisfaction of employees in the company, which may provide some measures relating to raising the level of employee satisfaction at Vinasoy. 12 With the results of research, management and HR department of Vinasoy can mean valuable to improve their policies to enhance job satisfaction of employees in the company. 1.4 Scope Of Study This study was conducted on all 350 employees of Vinasoy office blocks, including Sales & Marketing, Division of Administrative Management, Finance and Accounting and Technology Division produced. Each employee is sent with a questionnaire to fill out. 1.5 Significance of Research This study was conducted to have an understanding of the factors that affect job satisfaction in the organization. In order for the management of the company to have a clearer view on issues that affect the employees' retirement coa more capacity. This study can also serve as a reference for other managers to improve the working environment and conditions for their parts. With these findings, the management of the company may revise policies and set out a strategy to retain their staff by creating an environment, policies and better working conditions. Research model as a basis, as well as references to related studies and other research. 1.6 Limitation Of Research This study has some limitations. First, the focus of this study are employees of Vinasoy, so findings can not be generalized for employees of all enterprises operating in Vietnam. 13 Second, the survey has been conducted in a short time. A total of 350 questionnaires were distributed to the employees in five departments of the company, only 289 responses were returned of which 270 can be used. The remaining 28 questions that most of the questions blank and can not be used for further study. Future studies should explore the relationship between job satisfaction and business performance of the company, which is a limitation of this study. 14 Chapter 2 – LITERATURE REVIEW 2.1 Definition Of Con struct 2.1.1 Job Sactisfaction Vroom (1964) defined that employee satisfaction is a state that employees have a clear mandate to work in the organization. At the same time, gave the determining factor for satisfaction: salary, bonus, working conditions, job task identified. vangevich and Matteson (1999), satisfaction at work is the attitude of people about their work, it is the result of accepting the job and the most appropriate level between individuals and organizations. Frederick Herzberg (1959) shows two groups of factors relating to satisfaction. Two elements of this theory is: The element maintained as working conditions, wages, mode ... the motivating factor: as the recognition, promotion Weiss et al. (1967), gave the criteria for measuring job satisfaction through Minnesota questionnaire (MSQ), in which the question of the ability to use their abilities, achievements, progress evaluation rights, corporate policy, co-workers, the supervision of their superiors. Studies by Smith, Kendal and Hulin (1969) has developed indicators job description (JDI) to assess the level of satisfaction the work of a staffed with 5 factors: job characteristics, superior , salaries, opportunities for training and advancement, and colleagues. 2.1.2 Perceived Ability- Job fit Definition Ability-job fit can be defined as the "fit between the abilities of a person and the demands of a job, or the desires of a person and the attributes of a job" (Sekiguchi, 2004). Ability- Job fit and Job Satisfaction 15 The ability job-fit model demonstrates that work performance, personal satisfaction and outcomes are enhanced when the employee and work environment are in perfect synch. Synchronization is a process that includes not just education and experience, but many dimensions of individual's abilities: ability to learn, mental hard-wiring, personality archetypes, leadership dynamics and physical abilities (Coppola, Carini, 2006). The review of the ability-job fit literature by Edwards (1991) recognized job satisfaction, low job stress, motivation, performance, attendance and retention as outcomes that are positively affected by ability-job fit. When ability-job fit is assessed as the match between what an employee wants and receives from performing job, it is linked to enhance job-satisfaction, integration, and organizational commitment, as well as reduced intentions to resign. Additional benefits for task performance have been established when the meaning of abilityjob fit is expanded to include the match between abilities and their job demands. Therefore, the hypotheses below can be proposed. H1: There is a positive relationship between Ability- Job fit and Job Satisfaction 2.1.3 Supportive and non controlling suppervision Definition A study done by Stahl and Koser (1978) indicated that R&D scientists‟ creativity was significantly related to their supervisors‟ supportive attitude. Supportive and non controlling suppervision and Job Satisfaction A study done by Ceci and Iubatti (2011) searches answers to the question if personal relationships play a role in supporting innovative activities. The results conclude that the coexistence of personal and professional relationships shape a unique context that changes the usual dynamics of innovation diffusion (Ceci and Iubatti, 2011) . Oldham and Cummings (1996) examined three characteristics of the organizational context-job complexity, supportive supervision, and controlling 16 supervision-to three indicators of employee‟s creative performance: patent disclosures written, contributions to an organization suggestion program, and supervisory ratings of creativity. Results showed that employees were most creative in their work when they had appropriate creativity relevant characteristics, worked on complex, challenging jobs, and were supervised in a supportive and noncontrolling organizational environment (Oldham and Cummings, 1996) . The organizational context in which an individual performs a task influences his or her intrinsic motivation, which in turn affects creative achievement (Amabile, 1988) .The existing literature fails to include the organizational component of trust in leader as a part of the leader‟s supporting and non-controlling attitude which might increase the creativity of the employees in the work place. Existing literature in general supports that supervisory attitude that is supportive of the employees is expected to enhance creative achievement and on the other hand, supervisory attitude which is controlling is expected to diminish creative performance (Deci, Connell, Ryan, 1989) . For the purposes of our research we propose that non - controlling supervision creates a work climate based on trust which make the employees express themselves more confidently and creatively since they will know that their supervisors will show respect and concern for their feelings and opinions and let them express themselves more creatively. Supportive and non controlling suppervision and Job Satisfaction When supervisors are supportive, they show concern for employees‟ feelings and needs; encourage them to voice their own concerns; provide positive, chiefly informational feedback; and facilitate employee skill development (Deci, Connel, &Ryan, 1989) . When supervisors are controlling, they closely monitor employee behavior; make decisions without employee employement; provide feedback in a controlling manner, and generally pressure employees to think, feel or behave in prescribed ways (Oldham and Cummings, 1996) When the supervisor is behaving in a supportive attitude and does not show a 17 controlling behavior employees feel free to express themselves more innovatively. Finding new ways of doing one‟s work, letting creativity into work life requires a supportive environment. Non-controlling behavior and trust in one‟s supervisor are climatic components of open communication cultures (Demirel and Fikes, 2010; Butchoz, 1993) .In such an environment employees feel free to express themselves in different contexts. Interest in work innovation or “finding new ways of doing one‟s job” is not an investigated area since its first introduction to the field (Price, 1972) . Finding new ways of doing your job ends up in more satisfied employees and increased performance. This relationship can be the subject of a future study. Also finding out the other necessary conditions in the business organization improving the creativity and initiative taking capabilities of the employees where especially necessary in sectors which seek after „innovation can be the subject of a future study. In this study we observed that when the supervisors behaving in a supportive attitude and does not show a controlling attitude employees feel free to express themselves more innovatively. Therefore, the hypotheses below can be proposed. H2: There is a positive relationship between Supportive and non controlling suppervision and Job Satisfaction. 2.1.4 Pairness in skill- Based Pay Definition Pay is an important job attribute (Jurgensen, 1978) and greater job satisfaction results, inter alia, from job rewards (Rusbult and Farrell, 1983; Anderson, Jerman and Constantin, 1979). A skill based pay system (SBPS) can best be described as 'a system in which the capabilities of individuals are the primary focus and which cause them to be managed in a way that facilitates organizations developing organizational capabilities that provide competitive advantage' (Lawler III, p6, 1993). Simply put, employees are paid in accordance with the number of positions they are able to 18 fulfill in an organization. Pairness in skill- Based Pay and Job Satisfaction The main reason for adopting a skill based approach is to create a competitive advantage (Lawler , 1993; Murray and Gerhart, 1998) even though the training costs and hourly wages are higher (Tosi and Tosi, 1986). Furthermore it would aid in attracting new employees and retaining existing ones. However, academics argue that, for the skill based system to work effectively, certain organizational elements have to be met. For instance, Lawler (1986) found that the system works best in a high involvement environment. In addition, Gomez-Mejia and Balkin (1992) suggested that the following elements benefited the results of a SBPS: the organization is situated in a start up or growth phase, has a participative culture and offers other incentive programs complementing skill based pay. Murray and Gerhart (1998) suggest that a relevant theory to describe a SBPS is the expectancy theory. Here, skill seeking and acquisition is motivated by rewarding an employee for skill or knowledge competencies. In terms of the model of Vroom (1964)7, the incremental pay increases are the reward outcome, the value of the increase is the valence, the exertion of skill competency is the effort outcome and the level of skill seeking behavior is the input effort (Murray and Gerhart, 1998). This is in accordance with Tosi and Tosi (1986) who state that workers in a skill based pay system have strong incentives to increase knowledge and skill since higher skill l Although a skill based pay system (SBPS) is in most cases beneficial for the firm, it is expected that employees will still prefer a job based pay system. Not only is it hard to determine how 'competent' one is, the employee also has to invest in additional education/training in order to receive a decent salary. The myopic loss aversion theory states that employees are generally risk averse and have a short evaluation horizon (Bernartzi and Thaler,1995; Bowman, Minehart and Rabin, 1999; Van der Sar, 2008). Uncertainty about the exact demands, additional investments in learning and the fear of falling behind are 19 all elements that make a SBPS more risk bearing. Tosi and Tosi (1986) report that especially workers with low motivation, ability and tolerance for work ambiguity will be unsatisfied with a SBPS.evels are associated with both higher status and with pay Employees will perceive a higher level of satisfaction and motivation from a job based pay system than from a skill based pay system. - Pairness in skill- Based Pay make employees feel more satisfied Therefore, the hypotheses below can be proposed. H3: There is a positive relationship between Pairness in skill- Based Pay and Job Satisfaction 2.1.5 Goal and Process clarity Definition In general terms, the process of setting goals helps you choose where you want to go. By knowing precisely what you want to achieve directionally, you know where you have to concentrate your efforts and hopefully you will also quickly spot the distractions that would otherwise lure you from your course. Goal a Organizational goal ambiguity has been defined as the “degree to which goals allow [for] interpretive leeway, or leeway in how one interprets, conceives, and applies the goals” (Chun and Rainey 2005a; Feldman 1989, 5-7). When goals allow for less interpretive leeway, they are more certain and clear (i.e., goal clarity); conversely, when goals allow for greater leeway, they are characterized as being more ambiguous (i.e., goal ambiguity). Although ambiguous goals provide certain advantages to organizations and organizational leaders (e.g., the ability to [re- ]cast issues or political demands in ways that advance or safeguard organizational interests), existing research tends to focus on the employee-related effects of goal ambiguity (see Radin 2006 for a discussion of the benefits of ambiguous goals; To be able to even begin the journey of working towards a goal, we first need to ensure that we have complete clarity. Goal clarity can be simply described as your ability to set a clear and specific objective that all affected parties understand and 20
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