The Effectiveness of HRM in an Import Export Joint Stock Company in HCMC – Cosimex: Masters thesis of Business Administration

MEIHO UNIVERSITY

Graduate Institute of Business and Management

MASTERS THESIS

The Effectiveness of HRM

in an Import Export Joint Stock Company

in HCMC – Cosimex

In partial fulfillment of the requirements for the degree of

Masters of Business Administration

Advisor: Dr. Ching-Wen Mo

Co-advisor: Dr. Nguyen Minh Tuan

Graduate Student: Vu Quoc Thang

December, 2010

I

ACKNOWLEDGMENTS

Today, especially from 2006, when Vietnam becomes WTO membership; the

biggest problem that it has to face is How to successfully assimilate into worldwide

economy; in which, the factor of human resource management is one of the most

important.

The study on the personnel work below is a case one. I receive knowledge and

training from the Master of Business Administration (MBA) Program of Meiho

University (MU) and Hochiminh City University of Industry (HUI). Then I apply them

into the reality of human resource management of my company. Finally, I analyze,

recognize my own problems and go to conclusions and recommendations for my own

company.

I am very grateful for the dedication, and enthusiasm that I receive from MU and

HUI professors, who spend a lot of time and effort to teach and guide me, among them is

my Advisor, Dr. Ching-wen Mo.

I also appreciate directors, managers, and employees of my company for their

tightly cooperation to help me fulfill this subject.

II

The Effectiveness of HRM in an Import Export

Joint Stock Company in HCMC – Cosimex

ABSTRACT

Con Son Import Export Joint Stock Company (Cosimex) was founded on January

18th 2008. Previously, it was a state company, established in 1993, named Con Son

Import Export Company (Cosimex), and began the process of privatization from 2005.

From that time, Cosimex has to rearrange, to plan, to try to survive without any help from

the government. From that time, Cosimex has to learn the real lesson about sustainable

development; in which, one of the most important key is human resource management.

Besides, the domestic economy has to be rearranged quickly to assimilate into

worldwide economy. It requires managers and employees to have non-stop renovation, to

apply new scientific ways in management, to have proper business strategy, especially in

human resource strategy. The right human resource strategy that satisfies and encourages

employees will repair the company errors that exist, will turn company challenges into

opportunities, will make the company sustainably develop.

With knowledge through courses, through the accumulation and research, I would

like to do the research about employees satisfaction to Con Son Import Export Joint Stock

Company; in order to help all directors and managers can recognize the reality of

Cosimex human resource management; then can establish a strategy to improve the

human resource management as well as the company competitiveness in the world

markets.

In this study, I recommend suggestions to apply to my company Personnel￾Administrative Department, including: good resolution to internal relationships,

implementation a fairness in treatment about discipline and income policies, create an

comfortable working environment, set regulations to promote opportunities for employees

advancement, including training affairs.

Keywords: Vietnam, Hochiminh, MU, HUI, Cosimex.

III

The Effectiveness of HRM in an Import Export

Joint Stock Company in HCMC – Cosimex

Contents

ACKNOWLEDGMENTS .........................................................................................................I

ABSTRACT..............................................................................................................................II

Contents .................................................................................................................................. III

Tables....................................................................................................................................... V

Figures..................................................................................................................................... VI

Chapter1 Introduction ............................................................................................................... 1

1.1 Background and Motivation ........................................................................................... 1

1.1.1 Company structure................................................................................................... 1

1.1.2 Labor structure......................................................................................................... 2

1.1.3 Motivation................................................................................................................ 4

1.2 Research Objectives........................................................................................................ 5

1.3 Research Scope and Limitations..................................................................................... 5

1.4 Research Method ............................................................................................................ 5

Chapter2 Literature Review...................................................................................................... 6

2.1 Overview of Human Resource Management.................................................................. 6

2.1.1 Definition. ................................................................................................................ 6

2.1.2 The goal of personnel management in enterprises................................................... 6

2.1.3 Personnel management roles. .................................................................................. 7

2.1.4 Trends and issues affect personnel management..................................................... 8

2.1.5 Administration to meet workers requirement. ......................................................... 8

2.2 Theories of Human Satisfaction ..................................................................................... 9

2.2.1 Maslow’s theory. ..................................................................................................... 9

2.2.2 Alderfer’s theory.................................................................................................... 10

2.2.3 Herzberg’s theory. ................................................................................................. 11

2.2.4 McClelland’s theory. ............................................................................................. 13

2.2.5 Summary................................................................................................................ 13

2.3 Related Studies on Human needs and Motivation........................................................ 15

2.3.1 Theory of hierarchy needs (Abraham Maslow)..................................................... 15

2.3.2 Expectations theory (Victor Vroom). .................................................................... 16

IV

2.3.3 Two factors theory (F. Hertzberg). ........................................................................ 16

2.3.4 Theory of fair (The most important)...................................................................... 17

2.3.5 Related studies on motivation................................................................................ 18

2.4 Summary....................................................................................................................... 23

Chapter3 Research Methodology............................................................................................ 24

3.1 Research Process........................................................................................................... 24

3.2 Research Methods......................................................................................................... 24

3.2.1 Research on the qualitative one. ............................................................................ 24

3.2.2 Research on quantitative one. ................................................................................ 25

3.3 Research Framework .................................................................................................... 26

3.4 Sampling ....................................................................................................................... 27

3.5 Instrument Design......................................................................................................... 27

3.5.1 Building the measurement. .................................................................................... 27

3.5.2 Test validity and reliability. ................................................................................... 31

Chapter4 Research Results and Analysis................................................................................ 35

4.1 Analyzing Data ............................................................................................................. 35

4.1.1 Basic information analysis results. ........................................................................ 35

4.1.2 The correlations of variables.................................................................................. 36

4.1.3 Descriptive statistics on the factors affecting the employee’s satisfaction to the

company................................................................................................................ 38

4.1.4 Exploratory factor analysis (EFA)......................................................................... 38

4.1.5 Linear Regression. ................................................................................................. 44

4.2 Findings and Empirical Results .................................................................................... 46

4.2.1 Factors that are the most influential to the employee satisfaction......................... 46

4.2.2 Factors that do not influence on employee satisfaction......................................... 46

4.2.3 Empirical results. ................................................................................................... 46

Chapter5 Conclusions and Recommendations........................................................................ 48

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

5.2 Recommendations......................................................................................................... 49

5.3 Limitation of the Study................................................................................................. 51

References............................................................................................................................... 52

APPENDIX............................................................................................................................. 54

Attachment Verification Reliability Cronbach's Alpha .......................................................... 59