Luận văn thạc sĩ UEH key factors affecting employee satisfaction in the banking industry evidences

0

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

--------------------

HA NGUYEN MINH TAM

KEY FACTORS AFFECTING EMPLOYEE

SATISFACTION IN THE BANKING INDUSTRY –

EVIDENCES FROM HO CHI MINH CITY

MASTER OF BUSINESS (Honours)

SUPERVISOR: DR. DINH THAI HOANG

Ho Chi Minh City - 2014

LUAN VAN CHAT LUONG download : add [email protected]

1

TABLE OF CONTENTS

ACKNOWLEDGEMENT ................................................................................................ 4

ABSTRACT ....................................................................................................................... 5

LIST OF TABLES............................................................................................................. 6

LIST OF FIGURES........................................................................................................... 7

CHAPTER 1: INTRODUCTION .................................................................................... 8

1.1 Research background....................................................................................... 8

1.2. Research problem............................................................................................ 9

1.3 Research objectives ........................................................................................ 10

1.4 Scope of study ................................................................................................. 10

1.5 Thesis structure .............................................................................................. 11

CHAPTER 2: LITERATURE REVIEW AND HYPOTHESES ................................ 12

2.1 Employee satisfaction..................................................................................... 12

2.1.1. Definition of employee satisfaction ................................................ 12

2.1.2 Employee satisfaction and its dimensions...................................... 13

2.2 Previous research about employee satisfaction and identifying hypotheses

in this study ..................................................................................................................... 14

2.2.1 Salary and Benefits........................................................................... 14

2.2.2 Work environment........................................................................... 15

2.2.3 Management system......................................................................... 16

LUAN VAN CHAT LUONG download : add [email protected]

2

2.2.4 Career progression........................................................................... 17

2.2.5 Supervisor support........................................................................... 18

2.2.6 Moderated variable: Bank type ...................................................... 19

2.3 The research model ........................................................................................ 20

CHAPTER 3: RESEARCH METHODOLOGY.......................................................... 21

3.1 Research process............................................................................................. 21

3.2 Measurement scale ......................................................................................... 22

3.3 Qualitative pilot research .............................................................................. 24

3.4 Quantitive research ........................................................................................ 25

3.4.1 Sample size ........................................................................................ 25

3.4.2 Data collection................................................................................... 26

3.4.3 Data analysis method ....................................................................... 26

3.5 Conclusion....................................................................................................... 29

CHAPTER 4: DATA ANALYSIS.................................................................................. 30

4.1 Sample descriptive statistics.......................................................................... 30

4.2 The reliability test: The Cronbach’s Alpha Test......................................... 31

4.3 Exploratory Factor Analysis ......................................................................... 33

4.4 Hypothesis testing........................................................................................... 35

4.4.1 Pearson Correlation Coefficient ..................................................... 35

4.4.2 Testing assumptions of multiple regression................................... 35

LUAN VAN CHAT LUONG download : add [email protected]

3

4.4.3 Regression analysis........................................................................... 36

4.4.4 Chow Test for moderating variable................................................ 40

4.5. Discussion of research findings.................................................................... 45

4.6 Conclusion....................................................................................................... 46

CHAPTER 5: CONCLUSIONS, IMPLICATIONS AND LIMITATIONS .............. 48

5.1 Conclusions ..................................................................................................... 48

5.2 Managerial Implications................................................................................ 49

5.3 Limitations and recommendations for future research.............................. 51

REFERENCES ................................................................................................................ 52

APPENDIX....................................................................................................................... 58

LUAN VAN CHAT LUONG download : add [email protected]

4

ACKNOWLEDGEMENT

First of all, I would like to express my sincere gratitude to my supervisor Dr. Dinh Thai

Hoang, who offered his continuous support and useful advices throughout the course of

this thesis. His guidance helps me over the time of research and writing this master thesis.

Secondly, I would like to thank the ISB Research Committee for their encouragement and

valuable comments.

Last but not least, I am thankful to all my colleagues, friends for the consultation and

support during my research process.

LUAN VAN CHAT LUONG download : add [email protected]

5

ABSTRACT

This study aims to determine the different impacts of five independent variables (Salary

& Benefits, Work environment, Management system, Career progression and Supervisor

support) on dependent variable, employee satisfaction in the Vietnamese banking

industry, and explores the moderating role of the bank type variable on these

relationships. A survey was conducted by utilizing a sample of 171 employees working in

both local and foreign banks in Ho Chi Minh City. Multiple regression and Chow Test

were used to analyze these impacts on employee satisfaction as well as compare those

effects between two groups.

The result indicates that all determinants which are Salary & Benefits, Work

environment, Management system, Career progression and Supervisor support positively

influence employee satisfaction. Career progression and work environment are found to

be the most important factors. Furthermore, the analysis results also support that the bank

type moderates the relationship between these factors and employee satisfaction.

Accordingly, in the local bank type, career progression still has the strongest effect on

employee satisfaction, whereas, work environment has the highest impact on employee

satisfaction in the foreign bank type.

Based on the statistical results, managerial implications have been discussed and

recommendations are provided to enhance the employee satisfaction in the banking

industry in Ho Chi Minh City.

Keywords: Employee satisfaction, salary & benefits, work environment, management

system, career progression, supervisor support.

LUAN VAN CHAT LUONG download : add [email protected]

6

LIST OF TABLES

Table 3.1: Measurement scale ........................................................................................... 22

Table 4.1: Descriptive Statistics........................................................................................ 30

Table 4.2 Reliability Statistics of Salary & Benefits variable........................................... 68

Table 4.3 Reliability Statistics of Work environment variable ......................................... 68

Table 4.4 Reliability Statistics of Management system variable ...................................... 69

Table 4.5 Reliability Statistics of Career progression variable ......................................... 70

Table 4.6 Reliability Statistics of Supervisor support variable ......................................... 70

Table 4.7 Reliability Statistics of Employee Satisfaction variable ................................... 71

Table 4.8: KMO and Bartlett’s Test.................................................................................. 33

Table 4.9: Total Variance Explained................................................................................. 72

Table 4.10: Rotated Component Matrix............................................................................ 73

Table 4.11: KMO and Bartlett’s Test for employee satisfaction ...................................... 34

Table 4.12: Total Variance Explained for employee satisfaction ..................................... 34

Table 4.13: Pearson Correlation Coefficient..................................................................... 74

Table 4.14: Coefficients .................................................................................................... 75

Table 4.15: Variables Entered/Removed........................................................................... 36

Table 4.16: Regression analysis ........................................................................................ 37

Table 4.17: Hypothesis testing results............................................................................... 38

Table 4.18: The summary of hypotheses testing results ................................................... 39

Table 4.19: Regression analysis for local bank................................................................. 41

Table 4.20: Coefficients (local bank)................................................................................ 42

Table 4.21: Regression analysis for foreign bank ............................................................. 43

Table 4.22: Coefficients (foreign bank) ............................................................................ 43

Table 4.23: Differences of impact of determinants on employee

satisfaction by bank type ................................................................................................... 44

LUAN VAN CHAT LUONG download : add [email protected]