Luận văn thạc sĩ UEH critical factores of employees motivation in manufacturing firms, evidence from

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

INTERNATIONAL SCHOOL OF BUSINESS

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VO TRUNG TINH

Critical factors of employee's

motivation in manufacturing firms:

Evidence from Vietnam

ID: MBUS111041

Master of Business and Commerce (Honors)

Supervisor: Dr. TRAN HA MINH QUAN

HO CHI MINH CITY

02.11.2013

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Critical factors of employee's motivation in manufacturing firms in Vietnam

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ACKNOWLEDGEMENTS

First, Iwould like to express appreciation to some people, who

continuously supported and helped to complete this thesis.

I am extremely grateful to Dr. Minh Quan Tran Ha on the relentless

guide, who has taken the timely guidance and support to help me solve the

problems encountered during the implementation of the thesis.

I would also like to thank my colleagues at Wipro Unza Vietnam, and

the staffs working in VSIP, AMATA, etc. who helped me in providing the

responses to the questionnaire and the helpful comments on the some parts of

the study.

Finally, I want to express the special thanks and sincere to my family,

especially my parents, who were always anxious and continuously encouraged

me in difficult times and uninterrupted support material and love. The support

helped me enough courage and confidence to be able to firmly overcome

difficulties and successful completion of this thesis.

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Critical factors of employee's motivation in manufacturing firms in Vietnam

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ABTRACTS

Motivation of employees at workplace was topic mentioned

continuously by management of these companies in Vietnam. This thesis aims

to specify the key factors affecting to motivation of employees, who has been

working in manufacturing firms in Vietnam. By adopting quantitative method,

five factors include advancement, salary, working condition, challenge,

management were extracted. Moreover, this study also investigated on

motivational profiles for some focus viewpoints of employee such as gender,

age and material status. At the end of thesis, some recommendations were

drawn to increase the motivation and satisfaction of employees at workplace.

Key terms: Key motivation factors, manufacturing firms, motivational

profiles.

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Critical factors of employee's motivation in manufacturing firms in Vietnam

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Table of Contents

Chapter 1: Introduction .............................................................................................................. 8

I.1 Overview about the Vietnamese economic and labor in Vietnam ............................. 8

I.2 Significance of the research ..................................................................................... 10

I.3 Thesis structures ....................................................................................................... 10

Chapter 2: Literature review and hypothesis ........................................................................... 12

II.1 Literature review ...................................................................................................... 12

II.1.1 Motivation theories .......................................................................................... 12

II.1.2 Motivation profiles ........................................................................................... 15

II.2 Demographics for employee's motivation ................................................................ 16

II.2.1 Roles of demographic in organization ............................................................. 16

II.2.2 Age ................................................................................................................... 17

II.2.3 Gender .............................................................................................................. 18

II.2.4 Marital status .................................................................................................... 19

II.3 Hypothesis and conceptual model ............................................................................ 19

II.3.1 Motivation factors and hypothesis ................................................................... 19

II.3.2 Conceptual model ............................................................................................ 23

Chapter 3: Research method .................................................................................................... 25

III.1 Research procedures ................................................................................................ 25

III.2 Measurement scales ................................................................................................. 26

III.3 Pilot research ............................................................................................................ 28

III.4 Main research ........................................................................................................... 28

III.5 Data analysis ............................................................................................................ 29

III.5.1 Specify key factors ........................................................................................... 29

III.5.2 Ranking motivators .......................................................................................... 29

Chapter 4: Data analysis and Results ....................................................................................... 30

IV.1 Sample characteristics .............................................................................................. 30

IV.2 Assessment of measurement of scales ..................................................................... 32

IV.2.1 Reliability check for measurement scales .............................................................. 33

IV.2.2 Validity assessment for measurement scales ......................................................... 34

IV.2.3 Assessment for reliability and validity motivation scales ..................................... 40

IV.2.4 Assessment for assumptions of regression ........................................................... 40

IV.3 Assessment of theoretical model and hypotheses .................................................... 42

IV.3.1 Assessment of theoretical model ........................................................................... 42

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Critical factors of employee's motivation in manufacturing firms in Vietnam

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IV.3.3Test of hypotheses .................................................................................................. 43

IV.4 Extract and rank for motivators in motivational profiles ......................................... 45

IV.4.1 Gender .................................................................................................................. 46

IV.4.2Maritalstatus .......................................................................................................... 47

IV.4.3 Age groups ............................................................................................................ 48

IV.5 Interpreting the results ............................................................................................. 49

IV.5.1 Regression model .................................................................................................. 49

IV.5.2 Employees' demographics .................................................................................... 49

Chapter 5: Conclusion and recommendation ........................................................................... 53

V.1 Conclusion ............................................................................................................... 53

V.2 Recommendations .................................................................................................... 53

V.2.1 Advancement ......................................................................................................... 53

V.2.2Management ............................................................................................................ 54

V.2.3Salary ...................................................................................................................... 55

V.2.4 Work Challenge ..................................................................................................... 55

V.2.5Working condition .................................................................................................. 56

V.2.6Motivation profiles based demographics ................................................................ 56

V.3 Limitation and further research directions ............................................................... 57

REFERENCES ........................................................................................................................ 59

APPENDIX .............................................................................................................................. 63

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List of tables

TABLE 1. SUMMARY OF HYPOTHESIZES ..................................................................................................... 24

TABLE 2. LIST OF SOURCES FOR ITEM SCALES............................................................................................ 28

TABLE 3. SAMPLE CHARACTERISTICS ........................................................................................................ 31

TABLE 4. ASSESSMENT THE RELIABILITY OF MEASUREMENT SCALES ........................................................ 34

TABLE 5. RELIABILITY FOR NEW FACTORS ................................................................................................ 35

TABLE 6. FACTOR LOADING RESULTS ........................................................................................................ 36

TABLE 7. KMO AND BARTLETT'S TEST ..................................................................................................... 36

TABLE 8. COMPARE FOR ORIGINAL AND REFINED SCALES ......................................................................... 39

TABLE 9. SUMMARY FOR CONSTRUCT AFTER RE-ASSESSMENT SCALES ..................................................... 39

TABLE 10. RELIABILITY ASSESSMENT FOR MOTIVATION SCALE ................................................................ 40

TABLE 11. EFA FOR MOTIVATION ............................................................................................................. 40

TABLE 12. DURBIN-WATSON VALUE ......................................................................................................... 41

TABLE 13. COLLINEARITY STATISTICS ...................................................................................................... 41

TABLE 14. MULTIPLE REGRESSION RESULTS ............................................................................................. 42

TABLE 15. MODEL SUMMARY ................................................................................................................... 42

TABLE 16. SUMMARY FOR HYPOTHESIS TESTING ....................................................................................... 43

TABLE 17. MOTIVATION PROFILE FOR MALE AND FEMALE ....................................................................... 46

TABLE 18. MOTIVATION PROFILE FOR MARITAL STATUS WISE ................................................................. 47

TABLE 19. MOTIVATION PROFILE FOR SUBGROUP OF AGE WISE ............................................................... 48

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List of figures

FIGURE 1: MASLOW'S HIERARCHY OF NEEDS .................................................................................................... 13

FIGURE 2. TWO FACTORS THEORY ................................................................................................................... 14

FIGURE 3. CONCEPTUAL MODEL ..................................................................................................................... 24

FIGURE 4. RESEARCH PROCEDURE .................................................................................................................. 25

FIGURE 5. REGRESSION COEFFICIENT MODEL .......................................................................................... 45

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