Research about job satisfaction at coca - cola vietnam

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MASTER OF BUSINESS ADMINISTRATION INTERNATIONAL PROGRAM  RESEARCH PROJECT (BMBR5103) THE WORK – RELATED EXPECTANCIES, ROLE INNOVATION, PROCEDURAL JUSTICE, AND SOCIAL SUPPORT AFFECTING ON EMPLOYEE JOB SATISFACTION STUDENT’S FULL NAME :LE VAN DONG STUDENT ID :CGS00018244 INTAKE :MAY 2014 ADVISOR’S NAME & TITLE :DR. NGUYEN THE KHAI (DBA) Ho Chi Minh City, August 2015 Advisor’s Assessment ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Advisor’s signature Page 1 of 53 ACKNOWLEDGEMENTS I wish to acknowledge the help of several individuals because without their assistance, guidance, and understanding this research would not have been possible. Firstly, I am very grateful to my advisor DBA. Khai Nguyen. His patience, time, and commitment, in addition to his constant encouragement, effort, constructive comments, support, and individualized attention were a major source of inspiration. Thank you for trusting in me. The other members of my committee were also great assets. I wish to give my sincerest and deepest gratitude to my family and all of my sweet friends for their encouragement, and great support. Page 2 of 53 Contents ABSTRACT ...................................................................................................................................... 6 Chapter 1: INTRODUCTION ........................................................................................................ 7 Introduction of COCA-COLA .................................................................................................... 7 Company background ................................................................................................................. 7 Vision and mission ....................................................................................................................... 8 Vision ............................................................................................................................................. 8 Mission .......................................................................................................................................... 9 Current strategic objectives ...................................................................................................... 11 Organizational structure ........................................................................................................... 12 Leadership .................................................................................................................................. 12 Culture ........................................................................................................................................ 13 Research problem statement of the study ................................................................................ 15 Contribute of the study .............................................................................................................. 15 Statement of purpose and the Question of the study .............................................................. 16 Chapter 2: LITTERATURE REVIEW ....................................................................................... 16 Job satisfaction ........................................................................................................................... 17 Work – Related Expectancies ................................................................................................... 21 Role innovation........................................................................................................................... 22 Procedural Justice ...................................................................................................................... 23 Social support ............................................................................................................................. 24 The relationship between work – related expectancies and job satisfaction ........................ 27 The relationship between role innovation and job satisfaction.............................................. 27 The relationship between procedural justice and job satisfaction......................................... 28 The relationship between social support and job satisfaction................................................ 29 Chapter 3: RESEARCH MODEL AND HYPOTHESES .......................................................... 30 Research model .......................................................................................................................... 31 Dependent Variables:............................................................................................................. 31 Independent Variables: ......................................................................................................... 31 Constructs ............................................................................................................................... 31 Data Colection ............................................................................................................................ 32 Procedure for Data Collection and Analyze ............................................................................ 32 Measures of Constructs ............................................................................................................. 33 Page 3 of 53 Job satisfaction questionnaire ............................................................................................... 33 Work – related expectancies ................................................................................................... 33 Role innovation ....................................................................................................................... 34 Procedural justice.................................................................................................................... 35 Social support .......................................................................................................................... 36 Chapter 4 : RESULTS ................................................................................................................... 38 Cronbach‘s Alpha ........................................................................................................................ 38 Descriptive statistics .................................................................................................................... 39 Hypotheses testing ....................................................................................................................... 39 Hypothesis (H1) ....................................................................................................................... 40 Hypothesis (H2) ...................................................................................................................... 41 Hypothesis (H3) ...................................................................................................................... 41 Hypothesis (H4) ...................................................................................................................... 41 Chapter 5: CONCLUSIONS ........................................................................................................ 42 Discussion .................................................................................................................................... 42 Contributions................................................................................................................................ 43 Limitations ................................................................................................................................... 44 APPENDIX A ................................................................................................................................. 47 Page 4 of 53 LIST OF FIGURE AND TABLE Figure 1 Logo of Coca Cola ............................................................................ 7 Figure 2 Coca Cola can ................................................................................... 11 Figure 3: Organizational structure .................................................................. 12 Figure 4 Mr. Vamsi Mohan - General Director of Coca-Cola Vietnam and Cambodia ......................................................................................................... 12 Figure 5 Coca Cola‘s values ........................................................................... 13 Figure 6: Hypothesized Research Model ....................................................... 31 Table 1: Cronbach's Alpha- Internal consistency ........................................... 38 Table 2: Cronbach‘s Alpha of Construct ......................................................... 38 Table 3: Descriptive statistics .......................................................................... 39 Table 4: R Square ........................................................................................... 40 Table 5: Coefficients value of the model ........................................................ 40 Page 5 of 53 ABSTRACT This study tested that the impact of work – related expectancies, role innovation, procedural justice, and social support on employee job satisfaction. I hypothesized the positive relationship related to job satisfaction of employee. The result of 286 data was collected form managerial and non- managerial employees of COCA-COLA Corporation in Viet Nam. Result: The results supported the hypothesis that work – related expectancies, procedural justice have significant relationship with employee‘s job satisfaction. Conclusion: The findings in this study would help managers to formulate strategies that involved work factors such as distributive and procedural justice to improve the management of human resource development. These strategies would help in influencing positive behaviors among employees, and hence achieve effectiveness and high productivity in the organization. Therefore, it was worth the effort for the organization to train and educate their managers on the impact of perceptions of organizational justice on the motivation and commitment of their employees. Keywords: Job satisfaction, work – related expectancies, role innovation, procedural justice, social support. Page 6 of 53 Chapter 1: INTRODUCTION Introduction of COCA-COLA As you know, Coca-Cola is one of the most favorable drinks all over the world, its own brand-name costs about $80 billion. In 1960, Coca-Cola was the first time introduced in Vietnam. After that, Coca-Cola Indochina Pte Company was established officially in Vietnam on August 1995. Company background Figure 1 Logo of Coca Cola The Coca-Cola Company is headquartered in Atlanta, Georgia in United States. Coca-Cola was invented in 1886 by John Pemberton who was Georgia pharmacist. Muhtar Kent who was born in 1952 in New York, United States is currently the Chairman and Chief Executive Officer (CEO) and stick with the operation of The Coca-Cola Company. The Coca-Cola Company establishes its firm in the worldwide areas and currently sells its products to over 200 countries. The firm operations are divided into several geographies which are Eurasia and Africa, Europe, Latin American, North American and Pacific. The Coca-Cola Company is a beverage company which produces more than 3000 beverage products. The Coca-Cola Company is also a manufacturer, distributor, bottler, and marketer of non-alcoholic beverage concentrates and syrups. Under the implementation of the Coca-Cola system, the Coca-Cola Company has to cooperate with over 300 bottling partners worldwide. The company produces the products such as waters, juices and juice drinks, teas, coffees, sports drinks and energy drinks. The company has four of the world‘s top Page 7 of 53 five nonalcoholic sparkling beverage brands which are Coca-Cola, Diet Coke, Sprite and Fanta. In 1960, Coca cola was the first time introduced in Vietnam. After that, Coca-Cola Indochina Pte Company was established officially in Vietnam on August 1995. Since then, Coca-Cola has some locations in Vietnam, which were united as one Beverage Company called Coca-Cola Vietnam with the head office located in Thu Duc District, Ho Chi Minh City. Vision and mission In the strategic management model, clear vision and mission statements are very important for alternative strategies to be formulated and implemented. A clear business vision will help the firm build a comprehensive mission statement and a clear mission is needed before alternative strategies can be formulated and implemented. So developing a good vision and mission is essential for any firm and a big company like Coca Cola is not an exception. Vision The vision 2020 is a great direction for Coca cola‘s development in beverage industry. The company is aware of what they need to do in present and in the future. They concern not only in their profit or productivity but also in people. This can support them to develop in both quantity and quality.  People: Be a great place to work where people are inspired to be the best they can. Attract, engage and retain the best talent by knowledge, inspiration of passion, recruiting, developing and advancing women, achieve true diversity.  Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people's desires and needs.  Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value.  Planet: Have responsibility to society by helping build and support sustainable communities. Page 8 of 53  Profit: Maximize long-term return to shareowners while being mindful of our overall responsibilities.  Productivity: Be a highly effective, lean and fast-moving organization; manage people, time and money for the greatest effectiveness. Mission Cola need a clear mission before setting up alternative strategies to be formulated and implemented. Mission will be analyzed based on nine main factors which are customers, products, markets, technology, concern for survival growthprofitability, philosophy, self-concept, concern for public image and employee. ―Our Roadmap starts with our mission, which is enduring. It declares our purpose as a company and serves as the standard against which we weigh our actions and decisions.‖  To refresh the world...  To inspire moments of optimism and happiness...  To create value and make a difference. ― Above are three main factors that is inspiration for doing with Coke‘s mission from current to the future, at least to 2020 with company‘s expectation of serving people best.  Customers: For Coca cola, customers are the ones who need to be appreciated and offered the most quality products and the best of serving from Coca cola. The company serves the diversity of customers including their agencies, distributors and all the Coca cola users in a large scale.  Products: Coca cola towards to bring the safety and quality products which ensure about the natural alcohol levels, colorings and carbon dioxide level…Diversity in kind of drinks is also a criteria of Coca cola products.  Market: Expand the market of Coca Cola; gain the aimed point of sales. Coca cola expand their consumption investment. They increase to participate and serve in local, provide more outlets and to many specific shoppers. Page 9 of 53  Public image: Mission of Coca cola is not only a leader in offering the best drinks, but also a global leader in environment protection, in packaging and producing and disposing system.  Philosophy: Coca-Cola Enterprises provides products and services meeting the beverage and business needs of thousands of retail customers. Opening dialogue and ongoing relationships, Coca cola work to build mutual understanding and trust to pursuit the goals. Customer relationships are central to Coca cola‘s effort and philosophy.  Technology: The company displays their direction of technology in the vision report as the purpose needed to achieve such as using the advanced and modern technology which contributes to increase the productivity.  Self-concept that Coca cola is the firm which refreshes the world with the delicious and fresh drinks and brings people on over the world the moments and feelings of optimism and happiness, creates the difference to make customers remember and appreciate Coca cola‘s values.  Concerns for employees: increasing people‘s system knowledge and crosssystem movement, inspiring employees to be passionate, recruiting, developing and advancing women, making better conditions for all employees to devote their creative and qualification for great drinks.  Concerns for growth, profit, survival: This element is not also demanded in the mission but generally the company displays what to do in a detail report. Coca cola want to operate the lowest cost manufacturing and logistics in every market while maintain the quality standards; also use the size and expertise for creating the economic scale. There are some important components that should be considered and put in the mission such as technology, philosophy and its concern for survival growth and profitability. Company should give more details about mission which would show the customers and employers know what Coca Cola‘s aim, targets and big picture about it in future. Page 10 of 53 Current strategic objectives Coca-Cola‘s objective is maintaining a trusted local presence in every community its serve. Coca Cola is constantly looking ahead to anticipate what communities may need and gathering resources to support them. To carry out this objective, they‘ve devised a strategy to build out on fundamental strengths in marketing and innovation by increasing efficiency and effectiveness in interactions and generating new energy through core brands that focus on health and wellness. Their tactic is to increase their annual marketing budget, launch many new products, and developed a model to help our retail customers maximize their sales. Figure 2 Coca Cola can Page 11 of 53 Organizational structure Figure 3: Organizational structure Leadership Mr. Vamsi Mohan was born and brought up in India. During the nearly 20-year career at Coca-Cola, he had played many important roles before becoming general director of Coca-Cola Vietnam and Cambodia. He holds a Bachelor of Technology degree in Electronics and Communications Engineering from Figure 4 Mr. Vamsi Mohan - General Jawaharlal Nehru Technological University, Director of Coca-Cola Vietnam and Hyderabad and a post-graduate Diploma in Cambodia Management from the Indian Institute of Management, Calcutta. Page 12 of 53 Vamsi Mohan and other managers of Coca Cola have recognized that Vietnamese industry is extremely potential. Some surveys have shown that the demand of this product in Vietnamese market is very high. A lot of people, especially young people are very keen on Coca Cola drinks. Therefore, Vamsi Mohan and his team successfully reintroduced and launched a number of Company brands and established Coca Cola‘s commercial operations across the country, laying a strong foundation for their business in this market. Culture Coca-Cola exists to benefit and refresh everyone it touches. Its beliefs stem from global ideals grounded in local insights and influences. Coca-Cola takes responsibility for providing a wide variety of quality beverages so that parents, youth, children and all consumers will have enjoyable refreshment choices. Today, these choices include soft drinks, juices, waters, sports drinks, tea and coffee products and others - with more options to come in the future.  Live Our Values. It serves as a compass for Coca cola company‘s actions and describes how they behave in the world. Figure 5 Coca Cola’s values Page 13 of 53  Coca cola focuses on the Market, especially on needs of consumers, customers and franchise partners. Getting out into the market, listen and observe helping them to learn and understand more their business environment. They become a world view focusing on execution in the marketplace every day. However, the curiosity is never satiable because it is the factor stimulating the learning and development.  Work Smart is one of the most important core values. They always act with urgency, remain responsive to change, have the courage to change course when needed, remain constructively discontent, work efficiently. These are the smart way to work that brings more success to Coke in the future.  Coca cola act like an owner by understanding needs and what to do well for themselves and their customers. An owner must have a smart system to operate and must focus on building their values, positioning in the beverage market. The action of rewarding for people who take risks and find better way to solve problem is a good solution to increase and develop the loyalty. Learning form the outcomes is also a qualification of an owner.  Be the Brand Coca cola inspire creativity, passion, optimism and fun as their brand.  The true ‗secret formula‘ of Coca-Cola is its highly talented and motivated associates. There is a statement spoken by a manager: ―We are a high performance team in a happiness factory with happy energy who takes ownership and pride in refreshing and inspiring the world around us. We leverage our rich individuality to grow the collective excellence‖.  Employee engagement at every level is the key to being the employer of choice, where people create extraordinary results every day. Not only does Coca Cola refresh the world through our brands, it also inspires each employee with optimism and ignites the passion within every individual. Coca Cola ensures that every single employee at Coca-Cola Singapore is equipped Page 14 of 53 with adequate knowledge and opportunities to grow. An openness in communication is what drives the dynamism here. Research problem statement of the study The intense competition of the beverage industry in the Vietnamese market. Coca-Cola is one of the big companies in the world and Vietnam. Nowadays, many companies with high potential resources receive the opportunities in this field. So lot of competitors try to compete to gain the market share. They aren‘t only using the finance resource but also try to attract the people from the other competitors. The purpose of Coca-Cola in market economy is to achieve the most effective performance in long term. Performance of the enterprise is the correlative result comparing the profits from the business activities of enterprises with the resources used to archive those profits. The enterprise performance is decided by many factors, in which human resources quality is the most important. Human resources have an important role affect the survival and development of any organizations and job satisfaction has been an important point for organizational . How does the organization create employee job satisfaction? This question is what heads of an organization are interested in. Therefore, the relationship between employee job satisfaction and organization commitment are necessary and should be focused. In fact, a lot of organization didn't satisfy the employee job satisfaction related promotion, salary so on. Human resources management is at the core development and execution of COCA-COLA. The board of directors of COCA-COLA knows thoroughly innovation, leadership, cooperation and loyalty play a vital role in COCA-COLA‘s success. COCA-COLA has invested heavily in people to make it become an advantage of the company. Contribute of the study This study will be conducted from either managerial employees or nonmanagerial employees to exclude the bias of self-report. The opinion of employees Page 15 of 53 in Coca-Cola about the impact of work – related expectancies, role innovation, procedural justice, and social support on Coca-Cola Corporation‘s employee job satisfaction will be collected to see what the being implemented side evaluates the company HRM policies. The study provided a general view to HMR about the satisfaction of their employees. They understand the needs and how the employees feel about the current at Coca-Cola. Thereby the board of management make a policy and set out strategy to enhance satisfaction of employees and contribute on the development of Coca- Cola. Statement of purpose and the Question of the study The purpose of the current study are to investigate the impact of work – related expectancies, role innovation, procedural justice, and social support on Coca-Cola employee job satisfaction. This study addresses some points follow:  How are the impact of work – related expectancies on Coca-Cola employee job satisfaction?  How are the impact of role innovation on Coca-Cola employee job satisfaction?  How are the impact of procedural Justice on Coca-Cola employee job satisfaction?  How are the impact of social support on Coca-Cola employee job satisfaction? Chapter 2: LITTERATURE REVIEW LITERATURE REVIEW AND HYPOTHESES This chapter reviews literature on the job satisfaction construct and on the relationships between this construct and specific outcomes in order to develop the study hypotheses. This chapter consists of two main parts. The first part summarizes and discusses the theories and empirical studies that have been utilized to introduce, develop and validate the job satisfaction construct. Ultimately, the Page 16 of 53 second part of the chapter identifies the potential areas in the extant literature that this study aims to explore and introduces the proposed model. The second portion of this chapter develops a set of hypotheses based on the model stemming from issues identified from the literature review. This chapter presents the body of organizational literature containing the base theory and relevant other theories used in this study. This chapter includes the following:  Job satisfaction  Work – Related expectancies  Role innovation  Procedural justice  Social support  The relationship between work – related expectancies and job satisfaction  The relationship between role innovation and job satisfaction  The relationship between procedural justice and job satisfaction  The relationship between social support and job satisfaction. Job satisfaction a literature review, Lu, While, and Barriball (2005) mentioned the traditional model of job satisfaction focuses on all the feelings about job of an individual. However, what makes a job satisfying or dissatisfying does not depend only on the nature of the job, but also on the expectations that individuals have of what their job should provide. Maslow (1954 cited in Huber, 2006) arranged human needs along a five level hierarchy from physiological needs, safety and security, belonging, esteem to selfactualization. In Maslow‘s pyramid, needs at the lower levels must be fulfilled before those rise to a higher level. According to Maslow‘s theory, some researchers have Page 17 of 53 approached on job satisfaction from the perspective of need fulfillment (Regis & Porto, 2006; Worf, 1970). Job satisfaction as a match between what individuals perceive they need and what rewards they perceive they receive from their jobs (Huber, 2006). However, overtime, Maslow‘s theory has diminished in value. In the current trend, the approach of job satisfaction focuses on cognitive process rather than on basic needs in the studies (Huber, 2006; Spector, 1997). Another approach as proposed by Herzberg (Herzberg et al., 1959; cited in Huber, 2006) is based on the Maslow‘s theory. Herzberg and colleagues built Herzberg‘s motivation-hygiene theory of job satisfaction. Theory proposed that there are two different categories of needs, which are intrinsic (motivators) and extrinsic (hygiene) factors. Theory postulates that job satisfaction and/or is dissatisfaction is the function of two need systems. Intrinsic factors are related to the job itself. Intrinsic factors seem to influence positively on job satisfaction. The motivators include advancement, growth and development, responsibility for work, challenging, recognition, and advancement. In other words, extrinsic factors are closely related to the environment and condition of the work. The hygiene‘s relate to job dissatisfaction including supervision, company policy and administration, working condition and interpersonal relation (Lephalala, Ehlers, & Oosthuizen, 2008; Shimizu et al., 2005). This theory has dominated in the study of job satisfaction, and become a basic for development of job satisfaction assessment (Lu et al., 2005). As job satisfaction is a widely researched and complex phenomenon, it follows that there are numerous definitions of the concept. Job satisfaction can be defined as an individual‘s total feeling about their job and the attitudes they have towards various aspects or facets of their job, as well as an attitude and perception that could consequently influence the degree of fit between the individual and the organization (Ivancevich & Matteson 2002; Spector 1997). A person with high job satisfaction appears to hold generally positive attitudes, and one who is dissatisfied to hold negative attitudes towards their job (Robbins 1993). Page 18 of 53 The concept of job satisfaction has been defined in many ways. However, the most-used definition of job satisfaction in organizational research is that of Locke(1976), who described job satisfaction as "a pleasurable or positive emotional state resulting from the apprajsa1 of one's job or job experiences" (p. 1304). Building on this conceptualization, Hulin and Judge (2003) noted that job satisfaction includes multidimensional psychological responses to one's job, and that such responses have cognitive (evaluative), affective (or emotional), and behavioral components. This tripartite conceptualization of job satisfaction fits well with typical conceptualizations of social attitudes (Eagley &. Chaiken, 1993). Job satisfaction has been an important focal point for organizational and industrial psychology. In defining job satisfaction the reference is often made to Locke‘s (1976) description of job satisfaction as a ―pleasurable or positive emotional state resulting from the appraisal of one‘s job or job experiences‖ (Jex 2002 p.116). The appraisal involves various elements related to the job such as salary, working conditions, colleagues and boss, career prospects and, of course, the intrinsic aspects of the job itself (Arnold et al 1998 p. 204) One of the most often cited definitions on job satisfaction is the one given by Spector according to whom job satisfaction has to do with the way how people feel about their job and its various aspects. It has to do with the extent to which people like one dislike their job. That's why job satisfaction and job dissatisfaction can appear in any given work situation. Job satisfaction represents a combination of positive or negative feelings that workers have towards their work. Meanwhile, when a worker employed in a business organization, brings with it the needs, desires and experiences which determinates expectations that he has dismissed. Job satisfaction represents the extent to which expectations are and match the real awards. Job satisfaction is closely linked to that individual's behavior in the work place (Davis et al.,1985). Page 19 of 53
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