Luận văn thạc sĩ UEH determinants of workkers job satisfaction and effectiveness of union in garment

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

INTERNATIONAL SCHOOL OF BUSINESS

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NGUYEN THI TRUONG LE

DETERMINANTS OF WORKER’S JOB

SATISFACTION AND EFFECTIVENESS OF

UNION IN GARMENT INDUSTRY IN VIET NAM

MASTER OF BUSINESS

SUPERVISORS: DR. NGUYEN QUYNH MAI

Ho Chi Minh City – Year 2014

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ACKNOWLEDGE

Firstly, I would like to express my appreciate to my research supervisor, Dr. Nguyen Quynh

Mai for her support, suggesting, guidance during time of my dissertation.

Secondly, I would like to express my gratitude to Prof. Nguyen Dinh Tho for his effort in

thoroughly guidance, encourage and support to every student throughout two-year-course.

Thirdly, this research was contributed by my classmates, my colleagues, and was moral

assisted by my family. I would like to send my deepest thank to them.

Last, ISB staff did helped, supported with their best for convenience of MBUS 2012.

I appreciate very much for their contribution to my present result.

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ABSTRACT

Garment industry in Vietnam has developed impressively and has quite highly demanded in

employing labor force. Human resources management in this field is very important to

maintain the stable producing. It contains many characteristics which may impact to the

workers to feel more satisfaction and perform their job better. Keep the staff satisfy to work

better, more efficient is always one of business goals, especially in this special industry.

This study aims to investigate which factor affecting to worker‟s job satisfaction and how

the effective of union effect to worker‟s job satisfaction through these factors. The result

showed that indirect compensation, working environment and relationship with supervisor

factors effect to worker‟s relationship. Among three effect factors, relationship with the

supervisor has the most important to job satisfaction and following is working environment

and indirect compensation. The additional finding in this research is effectiveness of union

has a moderating affect to the relationship between job satisfaction and independent

variables included indirect compensation and Working Environment. This finding will help

to strengthen the effectiveness of Union to structure and operate effectively to satisfy their

union members

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Contents

ACKNOWLEDGE ........................................................................................................................................................1

ABSTRACT .................................................................................................................................................................2

CHAPTER 1. INTRODUCTION....................................................................................................................................2

1.1 Research background ...............................................................................................................................2

1.2 Research problem:........................................................................................................................................3

1.3 Research objective..........................................................................................................................................4

1.4 Scope: ............................................................................................................................................................4

1.5 Significant of study (Research contribution)..................................................................................................5

1.6 Organization (Structure)................................................................................................................................5

CHAPTER 2: LITERATURE REVIEW.............................................................................................................................6

2.1 Concept and Definition:..................................................................................................................................6

2.1.1 Job satisfaction .......................................................................................................................................6

2.1.2 Direct financial compensation.................................................................................................................6

2.1.3 Indirect compensation:............................................................................................................................7

2.1.4 Working environment .............................................................................................................................8

2.1.5 Feedback..................................................................................................................................................9

2.1.6 Relationship with supervisor...................................................................................................................9

2.1.7 Union .....................................................................................................................................................10

2.2 Model and Theories:.....................................................................................................................................10

2.2.1 Affect theory..........................................................................................................................................10

2.2.2 Equity theory .........................................................................................................................................11

2.2.3 Two-factor theory (motivator-hygiene theory).....................................................................................12

2.2.4 Job characteristics model ......................................................................................................................13

2.3. Previous researches about job satisfaction for worker in garment industry .............................................13

2.4. Conceptual model frame work and Hypothesis..........................................................................................14

2.4.1 Model frame:.........................................................................................................................................14

2.4.2 Hypothesis.............................................................................................................................................15

CHAPTER 3: RESEARCH METHOD ...........................................................................................................................18

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3.1 Research Design: ..........................................................................................................................................18

3.2 Measurement and Questionnaire design:..................................................................................................18

3.3 Data collection method: ...............................................................................................................................21

3. 4 Data Analysis Method:.................................................................................................................................21

3.4.1 Descriptive statistics of sample: ............................................................................................................21

3.4.2 Reliability test:.......................................................................................................................................21

3.4.3 Exploratory Factor Analysis (EFA)..........................................................................................................22

3.4.4 Regression Analysis ...............................................................................................................................23

3.4.5 Process Analysis.....................................................................................................................................23

CHAPTER 4. DATA ANALYSIS...................................................................................................................................24

4.1 Descriptive statistics of sample ....................................................................................................................24

4.1.1 Final sample...........................................................................................................................................24

4.1.2 Demographic Statistics..........................................................................................................................24

4.2 The construct measurement scale ...............................................................................................................26

4.2.1. Cronbach’s Alpha results of each measurement..................................................................................26

4.2.2. Exploratory Factor Analysis..................................................................................................................33

4.3.Adjustment of hypotheses and research model ..........................................................................................36

4.4 Regression Analysis: .....................................................................................................................................37

4.4.1. Pearson Correlation Coefficient ...........................................................................................................37

4.4.2. Regression Analysis ..............................................................................................................................38

4.4.3 Process Analysis in SPSS ........................................................................................................................42

4.5. Discussion about findings............................................................................................................................47

CHAPTER 5. CONSLUSIONS AND RECOMMENDATIONS.........................................................................................49

5.1. Recommendations.......................................................................................................................................49

5.1.1 Indirect compensation:..........................................................................................................................49

5.1.2 Working Environment: ..........................................................................................................................50

5.1.4 Effectiveness of Union...........................................................................................................................52

5.2. Limitations and recommendation for future researches............................................................................53

References..............................................................................................................................................................54

APPENDIX A: Descriptive Statistics........................................................................................................................57

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APPENDIX B: PROCESS RESULT...............................................................................................................................62

APPENDIX C: Questionnaire in English ...................................................................................................................69

APPENDIX D: Questionnaire in Vietnamese ...........................................................................................................73

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List of table

Table 4.1 Descriptive statistics of sample……………………………………………………………………………………………………………24

Table 4.2 Reliability statistics for direct compensation….……………………………………………………………………………………25

Table 4.3 Reliability statistics for Indirect compensation…………………………………………………………………………………….26

Table 4.4 Reliability statistics for indirect compensation (extracted ICS2)………………………………………………………….26

Table 4.5 Reliability statistics for Working Environment…………………………………………………………………………………….27

Table 4.6 Reliability statistics for Relationship with supervisor………………………………………………………………………….28

Table 4.7 Reliability statistics for Feedback………………………………………………………………………………………………………..28

Table 4.8 Reliability statistics for Union……………………………………………………………………………………………………………..30

Table 4.9 Reliability statistics for Job Satisfaction……………………………………………………………………………………………….31

Table 4.10: KMO and Bartlett’s test for independent variables…………………………………………………………………………..33

Table 4.11 : Rotated Component Matrixa…………………………………………………………………………………………………………..33

Table 4.12 Rotated Component Matrixa…………………………………………………………………….....................................33

Table 4.13 Pearson Correlation Coefficient…………………………………………………………………………………………………………36

Table 4.14 Summary output of Regression…………………………………………………………………………………………………………37

Table 4.15 Summary output of Regression…………………………………………………………………………………………………………38

Table 4.16 Regression Union and Job satisfation………………………………………………………………………………………………..39

Table 4.17 Hypothesis testing…………………………………………………………………………………………………………………………….46

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CHAPTER 1. INTRODUCTION

1.1 Research background

Overview the garment industry of Vietnam:

Vietnam‟s textile and garment sector has seen fast and sustainable growth over the past years,

playing an important role in national socio-economic development. Demand for labor in the

sector is huge. Every year, the sector gives employment for 2.2 million people, generating

income for the workers. Export value of textile and garment products in recent years has been

ranking number two in the country‟s total export revenue, earning a major source of foreign

exchange and contributing significantly to Vietnam‟s gross national product and budget.

According to government statistic office Vietnam, Labor of Vietnam Textile industry is not

focused, because over 70% of the textile enterprises are small and medium enterprises, which

number less than 300 employees. Nearly 20% of enterprises employed from 300 workers to

1000 workers, the factories have 1000 workers now come up only 6%. With such dispersion, if

not linked to the training activities will be difficult to implement efficiently.

Textile industry workers increased speedily and concentrated mainly in the non-state

enterprises, then in the enterprise with 100% foreign capital. These two types currently attract

two thirds of the entire sector workers. Often the majority of these businesses today tend to

attract for new labor, but not care deeply in keeping the current ones. Lead to a scramble for

labor among firms in the sector has increased at an alarming rate; the concern was their ability

to leave the company is too big due to dissatisfaction. Due to the labor requirements of the

garment industry increased very fast response to worker satisfaction; this industry is actually in

lack of labor. Besides that, the labor force is still weak not only at professional level but also at

management one. If we do not solve this problem rapidly, it will be hard to compete and win

on the market. So, it is really necessary for the industry to know the characteristic of labor

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