Tài liệu The impact of supervisory support, social support, procedural justce, goal and process clarity on vietinbank's employee satisfaction

MASTER OF BUSINESS ADMINISTRATION PROGRAM  RESEARCH PROJECT (BMBR5103) THE IMPACT OF SUPERVISORY SUPPORT, SOCIAL SUPPORT , PROCEDURAL JUSTICE, GOAL AND PROCESS CLARITY ON VIETINBANK’S EMPLOYEE JOB SATISFACTION STUDENT’S FULL NAME : NGUYEN QUANG ANH QUYEN STUDENT ID : CGS00018257 INTAKE : MAY 2014 ADVISOR’S NAME & TITLE : DR. NGUYEN THE KHAI (DBA) August, 2015 Page 1 of 70 RESEARCH PROJECT Advisor’s Assessment ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Advisor’s signature Page 2 of 70 RESEARCH PROJECT ACKNOWLEDGEMENTS In fact, no success has come without associated with the support. During the period from the beginning of Programe at OUM and HUTECH so far, I've received a lot of attention, help from the teacher, family and friends. I sincerely thank DBA Khai Nguyen has dedicated guided us through each classroom sessions as well as the presentation story, discuss the creative fields of scientific research. If no words to guide, teach from Dr, I think it very hard to be perfect in this research. Let me deeply thank to the Board of Directors, staffs at Vietinbank Branch 9 HCM.City who gave me the survey had higher academic values. My sincere thanks also go to my lovely wife Ms Nho, Wish you health, success and happiness! Researcher Nguyen Quang Anh Quyen Page 3 of 70 RESEARCH PROJECT TABLE OF CONTENTS LIST OF FIGURES AND TABLE ..........................................................................6 ABSTRACT ...............................................................................................................7 CHAPTER 1: INTRODUCTION ............................................................................8 1.1 Background of the study .............................................................................8 1.2 Significance of the study..............................................................................8 1.3 Purpose of the study ....................................................................................9 1.4 Research Questions......................................................................................9 1.5 Introduction of Vietinbank .........................................................................9 1.5.1 Company Description .........................................................................10 1.5.2 History and Milestones .......................................................................11 1.5.3 Organizational structure of Vietinbank ...........................................13 1.5.4 Key Financial Indicators ....................................................................15 1.6 Problem Statement ....................................................................................16 CHAPTER 2: LITTERATURE REVIEW ...........................................................18 2.1 Job satisfaction ...........................................................................................18 2.2 Supervisory support ..................................................................................20 2.3 Social support .............................................................................................21 2.4 Procedural Justice .....................................................................................24 2.5 Goal and process clarity ............................................................................26 2.6 The relationship between supervisory support and job satisfaction ....26 2.7 The relationship between Social support and job satisfaction ..............27 2.8 The relationship between procedural justice and job satisfaction........27 2.9 The relationship between Goal and process clarity and job satisfaction 28 CHAPTER 3: RESEARCH MODEL AND HYPOTHESIS ...............................29 3.1 Research model ..........................................................................................29 3.1.1 Dependent Variables: .........................................................................29 3.1.2 Independent Variables: ......................................................................29 Page 4 of 70 RESEARCH PROJECT 3.2 Constructs...................................................................................................29 3.3 Research Hypothesis: ................................................................................30 3.4 Instruments ................................................................................................30 3.5 Research Participants................................................................................38 3.6 Procedure for Data Collection and Analyze ...........................................38 CHAPTER 4: RESULTS AND FINDINGS .........................................................40 4.1 Reliability statistic by Cronbach’s Alpha. ................................................40 4.2 Descriptive statistic .....................................................................................41 4.3 Hypothesis Testing Result: .......................................................................41 4.3.1 Hypothesis 1 Testing Results: ............................................................42 4.3.2 Hypothesis 2 Testing Result: ..............................................................43 4.3.3 Hypothesis 3 Testing Result: ..............................................................43 4.3.4 Hypothesis 4 Testing Result: ..............................................................44 CHAPTER 5: DISCUSSION .................................................................................46 5.1 Main Findings for Research .....................................................................46 5.2 Some recommendations from the research results ................................47 5.2.1 Solutions related to policy development HR development .....................47 5.2.2 Related solutions support concerns of leaders .........................................47 5.2.3 Related solutions policy formulation equitable income distribution .....47 5.3 Limitations of the research .......................................................................48 REFERENCES ........................................................................................................49 APPENDIX A ..........................................................................................................54 Page 5 of 70 RESEARCH PROJECT LIST OF FIGURES AND TABLE Figure 1: Proposed Research Model of Employee Job Satisfaction in Vietinbank ------------------------------------------------------------------------------------------------------- Page 29 Figure 2: Accepted Research Model of Employee Job Satisfaction in Vietinbank ------------------------------------------------------------------------------------------------------- Page 45 Table 1: Organizational structure chart of Vietinbank (Source: Annual report 2014 of Vietinbank) ------------------------------------------------------------------------------ Page 14 Table 1: Organizational chart of Vietinbank (Source: Annual report 2014 of Vietinbank) --------------------------------------------------------------------------------- Page 15 Table 2: Key Financial Indicators (Source: Annual report 2014 of Vietinbank )Page 16-17 Table 4: Job satisfaction index questionnaire -------------------------------------- Page 30-31 Table 5: Supervisory support questionnaire---------------------------------------- Page 32-33 Table 6: Social support questionnaire --------------------------------------------- Page 34-35 Table 7: Procedural justice questionnaire ---------------------------------------------- Page 36 Table 8: Goal and Process Clarity questionnaire ---------------------------------- Page 37-38 Table 9: Reliability statistic result ------------------------------------------------------- Page 40 Table 10: Reliability statistics ----------------------------------------------------------- Page 40 Table 11: Descriptive statistics ---------------------------------------------------------- Page 41 Table 12: Model Summary --------------------------------------------------------------- Page 41 Table 13: Coefficients --------------------------------------------------------------------- Page 42 Table 14: Coefficients in term of Supervisory support ------------------------------- Page 42 Table 15: Coefficients in term of Social support -------------------------------------- Page 43 Table 16: Coefficients in term of Procedural justice --------------------------------- Page 44 Table 17: Coefficients in term of Goal and process clarity -------------------------- Page 45 Page 6 of 70 RESEARCH PROJECT ABSTRACT This study examined the impact of supervisory support, social support, procedural justice, goal and process clarity on Vietinabnk’s employee job satisfaction. Data was collected through the use of standardized questionnaires. Questionnaires were given personally to 280 managerial and non- managerial employees in all over 5 branches of Vietinbank. It include Vietinbank – HCM.City Branch, Vietinbank – No. 9 HCM.City Branch, Vietinbank – No. 1 HCM.City Branch; Vietinbank – No. 3 HCM.City, Vietinbank – No. 8 HCM.City Branch, there were 280 questionnaires returning, in which 270 completely responses were used for the statistical analysis. The collected data were computed and analyzed through factor analysis, Cronbach’s alpha, descriptive statistics, correlation, and multiple regression analysis. Hypothesis test result: The results supported the hypothesis that supervisory support, social support, procedural justice, goal and process clarity have positive relationship with employee’s job satisfaction at Vietinbank. Conclusion: The findings in this research would help levels of management related of Vietinbank to formulate strategies that involved work factors such as 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, supervisory support, social support, procedural justice, goal and process clarity. Page 7 of 70 RESEARCH PROJECT CHAPTER 1: INTRODUCTION 1.1 Background of the study Engaged employees are more likely to perform beyond the call of duty to meet the needs of customers and are highly motivated to work at full capacity. These features are critical to the continued commitment of the customer and current income and growth of an organization. Engaged employees remained in the employment of the company longer, they resisted offers competitive labor and not actively looking for another job and recommend the company to others as a best place to work. Long companies maintain their employees; there would be no need for additional spending to train new employees (Saker, 2003). People are most important resources of any organization. Employees are the livelihood of a company. How do you feel about the work they are doing and the results received that work directly affect the performance of an organization and ultimately, its stability (Milliman et al., 2008). For instance, if employees of the organization are highly motivated and pro-active, they will do whatever is necessary to achieve the objectives of the organization and track the industry to achieve the goals of organizational performance to address any potential challenge. The success any business depends largely on the motivation of employees. Organization low motivation is completely vulnerable to internal and external challenges, because its employees are not given a step further to maintain the stability of the organization. As we know, unstable organization ultimately effective. 1.2 Significance of the study The researcher hopes that this study will contribute to numerous benefits in terms of theoretical, management and academic perspectives: Page 8 of 70 RESEARCH PROJECT + In terms of theoretical perspective: This research will help someone else to test the theory and also support future research, it generates good ideas and also provides a better understanding. + In terms of management perspective: This study could support the management to improve the job performance of employees in the future, and to increase job satisfaction of employees. + In terms of academic perspective: This study will benefit other students to understand the relationship between job satisfaction, supervisory support, social support, procedural justice, goal and process clarity. 1.3 Purpose of the study The purpose of this study is to investigate the impact of supervisory support, social support, procedural justice, goal and process clarity on job satisfaction of employees of Vietinbank. 1.4 Research Questions This study seeks to investigate is whether supervisory support, social support, procedural Justice, goal and process clarity is related to the job satisfaction as the questions below: - What is the relationship between supervisory support and job satisfaction in Vietinbank ? - What is the relationship between social support and job satisfaction in Vietinbank ? - What is the relationship between procedural Justice and job satisfaction in Vietinbank ? - What is the relationship between goal and process clarity and job satisfaction in Vietinbank ? 1.5 Introduction of Vietinbank Page 9 of 70 RESEARCH PROJECT 1.5.1 Company Description - VietinBank was established in 1988 after being separated from State Bank of Vietnam. - Being one of the four largest State-owned commercial banks of Vietnam, VietinBank’s total assets account for over 20 percent of the market share of the whole Vietnamese banking system. VietinBank’s capital resources keep on increasing over the years and have been substantially rising since 1996 with the annual average growth of 20 percent, especially up 35 percent a year against that of last year. - VietinBank has developed an operations network comprising of 01 Transaction Centers, 150 branches, over 1000 transaction offices/ savings offices. Has established correspondent relationship with 900 banks, financial institutions of 90 countries and territories all over the world. - Being diversified with 07 independent accounting subsidiaries: VietinBank Leasing Company, VietinBank Securities Company, VietinBank Asset Management Company, VietinBank Insurance Company, VietinBank Fund Management Company, VietinBank Gold and Jewellery Company, VietinBank Global Money Transfer Company and 03 non-profit making units: VietinBank Information Technology Center, VietinBank Card Center and VietinBank Training Center. - Being the founder of the following Financial Credit Institutions: + Saigon Bank for Commerce and Industry + Indovina Bank (the first joint-venture bank in Vietnam) + Vietnam International Leasing Company – VILC (the first financial leasing company in Vietnam) + Vietinbank Insurance Company Ltd. - Being the official member of : + Vietnam’s Banker Association Page 10 of 70 RESEARCH PROJECT + Asian Banker’s Association + Society for Worldwide Interbank Financial Telecommunications (SWIFT) + Visa International Services Association - Being the first bank in Vietnam to apply modern technology and e-commerce in its banking operations. - Mission: To become the leading fnancial and banking corporation in Vietnam that operates in diverse areas, as well as provides products and services that conform to international standards, aiming to improve the values of life. - Vision: To become one of the most modern and efective fnancial and banking group in and outside the country. - Core Values: + Customer-oriented operations; + Dynamic, innovative, professional, devoted, transparent, modern; + Workers have the right to make their best efort and contribution – they have the right to receive rightful compensation – they have the right to pay homage to outstanding individuals and workers. - Business Philosophy: + Safe, efective, sustainable, and in compliance with international standards; + United, ready to cooperate, share, and be socially responsible; + Your prosperity is our success. - Slogan: Improving the values of life. 1.5.2 History and Milestones - Establishment date of Vietnam Bank for Industry and Trade: * March 26 1988 Establishment of the specialized banks under Decision No. 53/HĐBT issued by the Ministerial Committee. * November14 1990 Renamed Vietnam Commercial and Specialized Bank into the Industrial and Commercial Bank of Vietnam under the Page 11 of 70 RESEARCH PROJECT Decision No. 402/CT issued by the Ministerial Committee. * March27 1993 Establishment of the State-owned Enterprise named Bank for Industry and Commerce of Vietnam under the Decision No. 67/QĐ-NH5 issued by the Governor of the State Bank of Vietnam. * September 21 1996 Re-establishment of Industrial and Commercial Bank of Vietnam under the Decision No. 285/QĐ-NH5 of the State Bank of Vietnam. Establishment of member units: * February 08 1991 Opening 69 VietinBank branches under the Decision No. 12/NHCT of the General Director of VietinBank. * April 20 1991 Establishment of VietinBank Transaction Center No.II in Hochiminh city under the Decision No. 48 of the State Bank of Vietnam. * October 29 1991 Establishment of Indovina Bank, the first joint venture bank in Vietnam under the Business License No. 08/NH-GP VN. * March 27 1993 Opening further 77 VietinBank branches nation-wide under the Decision No. 67/QĐ-NH5 of the Governor of the State Bank of Vietnam. * March 30 1995 Establishment of VietinBank Transaction Center No. I in Hanoi under Decision No. 83/NHCT-QĐ of the Management Board of VietinBank. * October 28 1996 Establishment of VietinBank International Financial Leasing Company under the Business License No. 01/GP-CTCTTC of the Governor of The State Bank of Vietnam. * July 01 1997 Establishment of VietinBank Humane Education under Decision No. 37/QĐ-NHCT1 of VietinBank’s General Director. * June 29 1998 Renamed into VietinBank Training Center under Decision No. 52/QĐ-HĐQT-NHCT1. Page 12 of 70 RESEARCH PROJECT * October 30 2001 Renamed into VietinBank Training and Technology Development Center under Decision No. 089/QĐ-HĐQT-NHCT1. * January 26 1998 Establishment of the VietinBank Leasing Company under Decision No. 53/1998-QĐ-NHNN5 of the Governor of the State Bank of Vietnam. * December 30 1998 Establishment of VietinBank Transaction Center No. I under Decision No. 134/QĐ-HĐQT-NHCT1 issued by VietinBank’s Board of Management. * February 12 1999 Opening VietinBank Branches such as: Gia Lai, Bình Phước, Đắc Lắc under Decision No. 019, 020, 021/QĐ-HĐQT-NHCT1 of VietinBank’s Board of Management. * April 22 1999 Set up VietinBank Representative Offices under Decision No. 46/QĐ-HĐQT-NHCT1 of VietinBank’s Board of Management. * July 10 2000 Set up VietinBank Asset Management under Decision No. 106/QĐ-HĐQT-NHNN of VietinBank’s Board of Management. * July 17 2000 Establishment of VietinBank Information Technology Center under Decision No. 091/QĐ-HĐQT-NHCT1 issued by VietinBank’s Boar of Management. 1.5.3 Organizational structure of Vietinbank Scope of business: Scope of business: VietinBank’ services include Fund Mobilization in the form of Term Deposits for Retail and Corporate clients, Foreign Exchange, Guarantees, International Settlements, Letters of Credit, Capital Markets, Money Markets, Bonds, Equity Investments, Correspondent Banking, Internet Banking and other innovative financial and investment services and solutions licensed by the State Bank of Vietnam. Page 13 of 70 RESEARCH PROJECT Branch Network: VietinBank branch network is comprised of: Head Office located at 108 Tran Hung Dao Street, Hoan Kiem District, Hanoi; 01 Main Operation Centre; 03 functional units; 02 Representative Offices in Hochiminh City and Danang City; 01 Representative Office in Myanmar; 149 local branches in 63 cities and provinces across the country and 03 foreign branches (02 in Germany and 01 in Laos PDR). In addition to the extensive network, VietinBank has established correspondent relationship with over 1,000 financial institutions of more than 90 countries and territories worldwide. Organizational structure of Vietinbank: Table 1: Organizational structure chart of Vietinbank (Source: Annual report 2014 of Vietinbank) Page 14 of 70 RESEARCH PROJECT Organizational chart of Vietinbank: Table 3: Organizational chart of Vietinbank (Source: Annual report 2014 of Vietinbank) 1.5.4 Key Financial Indicators Page 15 of 70 RESEARCH PROJECT Table 4: Key Financial Indicators (Source: Annual report 2014 of Vietinbank ) 1.6 Problem Statement Every organization could not last without their employees. Employees are the main reason an organization could exist for a long time. Similarly to Tradewinds Group, employees are the ones who play the major roles and make significant contributions to the organizations. Hence, the organization should pay attention to them in order to keep them in the organization. This will also influence the productivity of the organizations which eventually will lead to achieving the organizations’ visions and goals. Highly satisfied and committed employees will deliver high quality of job performance. At Vietinbank there are some issues related to job satisfaction and performance which affect the employee satisfaction and performance in the organization (HR Report 2009). Although the number is rather small but tackling Page 16 of 70 RESEARCH PROJECT poor performance is a challenge for all managers in the organization. According to the sources and data collected from the Human Resource Department of some branches in Ho Chi Minh City, there are continuous issues of job satisfaction as well as job performance in the organization (HR Report 2010). This is the reason that researchers do this study, which evaluated the factors affecting job satisfaction level and propose solutions to improve and increase labor productivity, efficiency business. Page 17 of 70 RESEARCH PROJECT CHAPTER 2: LITTERATURE 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: - (1) Job satisfaction - (2) Supervisory support - (3) Social support - (4) Procedural justice - (5) Goal and process clarity - (6) The relationship between Supervisory support and job satisfaction - (7) The relationship between Social support and job satisfaction - (8) The relationship between procedural justice and job satisfaction - (9) The relationship between Goal and process clarity and job satisfaction. 2.1 Job satisfaction Job satisfaction or employee satisfaction has been defined in many different ways. Some believe it is simply how content an individual is with his or her job, in other words, whether or not they like the job or individual aspects or facets of jobs, such as nature of work or supervision (Spector, P.E. 1997). Others believe it is not so simplistic as this definition suggests and instead that multidimensional psychological responses to one's job are involved (Hulin, C. L., & Judge, T. A. 2003). Researchers have also noted that job satisfaction measures vary in the extent to which they measure feelings about the job (affective job satisfaction) (Thompson, E.R.; Phua F.T.T. 2012) or cognitions about the job (cognitive job satisfaction) (Moorman, R.H. 1993). The concept of job satisfaction has been developed in many ways by many different researchers and practitioners. One of the most widely used definitions in Page 18 of 70 RESEARCH PROJECT organizational research is that of Locke (1976), who defines job satisfaction as "a pleasurable or positive emotional state resulting from the appraisal of one's job or job experiences" (Locke,E.A. (1976 p. 1304). Others have defined it as simply how content an individual is with his or her job; whether he or she likes the job or not (Spector, P.E. 1997). It is assessed at both the global level (whether or not the individual is satisfied with the job overall), or at the facet level (whether or not the individual is satisfied with different aspects of the job) (Spector, P.E. 1997). Spector (1997) lists 14 common facets: Appreciation, Communication, Coworkers, Fringe benefits, Job conditions, Nature of the work, Organization, Personal growth, Policies and procedures, Promotion opportunities, Recognition, Security, and Supervision). A more recent definition of the concept of job satisfaction is from Hulin and Judge (2003), who have noted that job satisfaction includes multidimensional psychological responses to an individual's job, and that these personal responses have cognitive (evaluative), affective (or emotional), and behavioral components (Hulin, C. L., & Judge, T. A. 2003). Job satisfaction scales vary in the extent to which they assess the affective feelings about the job or the cognitive assessment of the job. Affective job satisfaction is a subjective construct representing an emotional feeling individuals have about their job. Hence, affective job satisfaction for individuals reflects the degree of pleasure or happiness their job in general induces. Cognitive job satisfaction is a more objective and logical evaluation of various facets of a job. Cognitive job satisfaction can be unidimensional if it comprises evaluation of just one facet of a job, such as pay or maternity leave, or multidimensional if two or more facets of a job are simultaneously evaluated. Cognitive job satisfaction does not assess the degree of pleasure or happiness that arises from specific job facets, but rather gauges the extent to which those job facets are judged by the job holder to be satisfactory in comparison with objectives they themselves set or with other jobs. While cognitive job satisfaction might help to bring about affective job satisfaction, Page 19 of 70 RESEARCH PROJECT the two constructs are distinct, not necessarily directly related, and have different antecedents and consequences (Moorman, R.H. (1993). Job satisfaction can also be seen within the broader context of the range of issues which affect an individual's experience of work, or their quality of working life. Job satisfaction can be understood in terms of its relationships with other key factors, such as general well-being, stress at work, control at work, home-work interface, and working conditions (Tomaževič, N.; Seljak, J.; Aristovnik, A. 2014). A study title "Analysis of Factors Affecting Job Satisfaction of the Employees in Public and Private Sector", in India concluded that in India Employees tend to love their job if they get what they believe is an important attribute of a good job. Weightage factor of each such attribute based on exhaustive survey has been calculated. Region, sector and gender wise study of job satisfaction has provided consistent picture with respect to distribution of data set analyzed showed that most of the employees in Indian industry are not satisfied with their job except for a few like male in commerce sector and female in education sector. Total job satisfaction level of males is found to be higher than that of woman. Total job satisfaction level in manufacturing sector is found to be very low (Kumari, G., Joshi, G., and Pandey, K.M 2014). 2.2 Supervisory support Support from supervisors often involves showing one’s concern for and encouraging employees, providing key resources, a structured work environment, feedback, opportunities for career advancement, information, and assistance in coping with work-related stressors (Babin & Boles, 1996; Griffin et al., 2001; Jiang & Klein, 2000; Rauktis & Koeske, 1994). This source of support might be more important to the focal employee than other sources of support because of the supervisor’s position of power and hierarchical standing (Beehr 1995, cited in Beehr & Glazer, 2001). It is also important for supervisors to coach and guide Page 20 of 70 RESEARCH PROJECT