Thesis Submit's Truong Quoc Viet

Maastricht MBA
C/o HCMC University of Technology, 268 Ly Thuong Kiet, D.10, HCM City Vietnam, Tel: (84-8) 8660 898 - Fax: (84-8) 8660 899 - E-mail: msmsim@hcm.vnn.vn
FACTORS EFFECT JOB SATISFACTION AND

ORGANIZATIONAL COMMITMENT
A CASE STUDY OF TRAN DUC GROUP
BY
TRUONG QUOC VIET
(VIETNAM)
COACH
Dr. VO VAN HUY
This proposal was submitted in partial fulfillment of the requirements for the Masters of
Business Administration (MBA) degree at the Maastricht School of Management (MSM),
Maastricht, the Netherlands, April 2009.
Maastricht School of Management

P.O. Box 1203
6201 BE Maastricht
The Netherlands
Page 1 of 72
ACKNOWLEDGEMENTS
First of all, I would like to express my deepest gratitude and great appreciation to Dr. Vo Van
Huy, my coach, for his guidance, valuable advices and great support in developing my thesis.
I would like to express my sincere thankfulness to Mr. Hoang Trong for giving me his
inspiration, thoughtful guidance and sharing his valuable knowledge about SPSS program for
the completion of my thesis.
Also thanks go to my colleagues and staff at Tran Duc Group who assisted me in collecting data
during the fieldwork stage, to people at MSM office for their continuous support during last
years.
Last, but not least I would like to thanks all professors, lectures, tutors, and my classmate for
their support during my learning time at the MBA program of the MSM
Page 2 of 72
ABSTRACT
This study examines what factors motivates the worker involved in the wood industry in Tran
Duc group, their level of job satisfaction and relationship between job satisfaction and
organizational commitment. Wood industry is a critical industry which accommodates an
increasing export up to 300% in three years. Data collected by a survey of stratified random
sampling of 350 manufacturing workers at three factories of Tran Duc group. A Likert-scale
type questionnaire was used to detect employment attitudes, job satisfaction and organizational
commitment.
Hierarchical regression analysis was used to analyze the data of the study. Companys vision,
job security, leadership support, pay & benefits, and co-worker relation are found significant
determinants of job satisfaction and organizational commitment. The finding of this study
provide valuable insights for the management of Tran Duc group understanding the factors
effecting job satisfaction and organizational commitment as well as relationship between job
satisfaction and organizational commitment.
Key words: Job satisfaction, organizational commitment, turnover.
Page 3 of 72
TABLE OF CONTENTS
I.
Introduction ................................................................................................... 9
1.1 Vietnam wood industry introduction ....................................................... 9
1.2 Tran Duc group introduction................................................................. 10
1.3 Statement of the problem ...................................................................... 11
1.4 Purpose of research & objectives .......................................................... 12
1.5 Scope & Limitations ............................................................................. 13
1.6 Thesis structure..................................................................................... 13
II.
Review of literature ................................................................................... 15

2.1 Job satisfaction ..................................................................................... 15
2.2 Factors affecting to job satisfaction ........................................................ 16
2.3 Job satisfaction theories ........................................................................ 17
2.3.1 Two-Factor Theory (Motivation-Hygiene Theory) ........................ 17
2.3.2 Affect Theory................................................................................ 18
2.3.3 Dispositional Theory ..................................................................... 18
2.3.4 Equity Theory ............................................................................... 18
2.4 Theory application ................................................................................ 19
2.5. Organizational commitment ................................................................. 20
2.6. Factors affecting to organizational commitment ................................... 22
2.6.1 Personal characteristics ................................................................. 22
2.6.2 Organization structure ................................................................... 22
2.6.3 Work experience ........................................................................... 22
2.7. Models of Retention-Turnover .............................................................. 23
2.8 Importance of job satisfaction and organizational commitment .............. 24
2.9 HR practice in Tran Duc group ............................................................. 26
2.9.1 Regulations and Policy .................................................................. 26
2.9.2 Job description ............................................................................. 26
2.9.3 Recruitment process ...................................................................... 27
2.9.4 Training ....................................................................................... 27
Page 4 of 72
2.9.5 Skill evaluation ............................................................................ 28

2.9.6 Pay, allowance, benefits and bonus................................................ 28
III.
Research Methodology: ................................................................................. 29

3.1 Proposal research model ....................................................................... 29
3.2 Instruments ........................................................................................... 29
3.3 Participation .......................................................................................... 29
3.4 Translation and pre-test reliability of questionnaire ................................ 29
3.5 Research hypotheses ............................................................................. 30
3.6 Research methodology .......................................................................... 32
3.7 Data collection ...................................................................................... 32
3.7.1 Primary data.................................................................................. 33
3.7.2 Secondary data .............................................................................. 33
3.8 Method of analysis................................................................................. 33
3.8.1 Assessment of measurement of scale ............................................. 33
3.9 Measurement scales of the questionnaire................................................ 34
3.10 Source of measurement scales.............................................................. 34
IV.
Research findings:............................................................................................. 38
4.1 Sample characteristics ........................................................................... 38
4.1.1 Sample ......................................................................................... 38
4.1.2 Gender .......................................................................................... 38
4.1.3 Age ............................................................................................... 38
4.1.4 Marital status................................................................................. 38
4.1.5 Education level.............................................................................. 39
4.1.6 Year of experience ....................................................................... 39
4.1.7 Salary............................................................................................ 39
4.2 Assessment of measurement scale ......................................................... 40
4.2.1 EFA for scale of factors................................................................. 40
4.2.2 EFA for all scale of factors together .............................................. 42
4.3 Testing model and hypotheses .............................................................. 45
4.3.1 Revising the research model.......................................................... 45
Page 5 of 72
4.4 Finding and discussion .......................................................................... 51

4.5 Finding ................................................................................................. 52
4.6 Managerial implications......................................................................... 56
V. Conclusion, discussion and recommendations .................................................... 58
5.1 Conclusion ............................................................................................ 58
5.2 Recommendations.................................................................................. 60
5.2.1 Building a skillful team ................................................................. 60
5.2.2 Building a training system............................................................. 60
5.2.3 Building a skill matrix system and skill-base salary increase ......... 60
5.2.4 Building a reward & recognition System ...................................... 60
5.2.5 Designing job levels. ..................................................................... 60
5.2.6 Building organization culture. ....................................................... 61
5.2.7 Upgrade or invest high-tech processing machine ........................... 61
5.2.8 Monthly performance feedback ..................................................... 61
5.3 Limitations............................................................................................. 61
Page 6 of 72
LIST OF TABLES
Table 1.1 : Vietnam wood industry revenue ................................................................... 9
Table 1.2: Tran Duc JS resignation rate in 2008............................................................ 11
Table 3.1: Measurement scales of Job dissatisfaction and organizational commitment.. 36
Table 4.1: Sample distribution by gender .................................................................... 38
Table 4.2: Sample distribution by age........................................................................... 38
Table 4.3: Sample distribution by marital status ........................................................... 39
Table 4.4: Sample distribution by education level......................................................... 39
Table 4.5: Sample distribution by year of experience.................................................... 39
Table 4.6: Sample distribution by salary ....................................................................... 40
Table 4-7: Unidimentionality and reliability test results................................................ 41
Table 4.8: KMO and Bartlett's Test .............................................................................. 43
Table 4.9: Total Variance Explained ............................................................................ 43
Table 4.10: Result of joint factor analysis for 7 scales .................................................. 44
Table 4.11 Revised undimentionality and reliability for 2 new factors ..45
Table 4.12: Model Summary (b)................................................................................... 46
Table 4.13: Anova (b) .................................................................................................. 46
Table 4.14: Coefficients (a) .......................................................................................... 46
Table 4.15: Levels of importance factors on Job Satisfaction........................................ 48
Table 4.16: Model Summary (b)................................................................................... 48
Table 4.17: Anova (b) .................................................................................................. 49
Table 4.18: Coefficients (a) .......................................................................................... 49
Table 4.19: Levels of importance factors on Organizational commitment ..................... 51
Table 4.20: R square value ........................................................................................... 52
Table 4.21: Regression result between job satisfaction and organizational commitment 52
Table 4.22: F and Sig. value ......................................................................................... 52
Page 7 of 72
LIST OF FIGURES
Figure 2.1: Job Satisfaction Model (Justin Field 2008) .................................................. 16
Figure 2.2: Adams Equity Theory diagram - job motivation......................................... 20
Figure 2.3: Factors Affecting Job Satisfaction and Organizational Commitment ........... 23
Figure 2.4: Research model proposals .......................................................................... 25
Figure 4.1: Revised model ........................................................................................... 55
Page 8 of 72
CHAPTER I
INTRODUCTION
1.1 Vietnam wood industry introduction
Vietnams wood and furniture industry has grown tremendously in the past few years. In merely
4 years, the industrys total export volume rose by 300% from USD 460.2 million in 2002 to
USD 1932.8 million in 2006 and 2800 million in 2008. This made Vietnam the second largest
exporter of wooden goods in Southeast Asia. Furthermore, the wood processing industry has
become an important industry in Vietnam, as it is today the fifth largest source of export
earnings in Vietnam after oil, garment & textiles, footwear, seafood & rice, etc
Table 1.1 Vietnam wood industry revenue
Vietnam
2003
2004
2005
2006
2007
2008
2009 (est)
Volume (US mil)
600
1100
1600
2000
2500
2800
3200
Source: www.vietnamnews.vnagency.com.vn
Vietnam has developed into the fourth biggest wood product exporter in ASEAN, following
Malaysia, Indonesia and Thailand. It can be said that Vietnams wood industry has great
potentiality as despite its position among Vietnams leading export industries, Vietnams wood
products now account for only 0.78 % of the global market share. So far, China is considered as
the most redoubtable competitor of Vietnam in term of wood processing, having the leading
position in wood product exporter.
Despite a lot of advantages for development, Vietnams wood processing and fine art industry
is, like other industries, facing with series of difficulties and severe challenges, especially the
impacts put by the international economic crisis. Recent new regulations provided by the two
export markets, US and EU, such as the FSC (Forest Stewardship Council) requirement, have
posed barriers to Vietnams wood product exporters. In addition, the 80 % dependence on
imported materials has brought about a lot of difficulties in entering these two big markets.
Another problem that most of Vietnamese wood furniture companies facing is productivity of
labor and capital. Productivity of Vietnams worker reached USD 10,000 per year in 2008
meanwhile Chineses reached USD 15,000. The productivity rising in 2008 could not cover high
interest rate, price hikes and investment cost. In spite of efforts to overcome the difficulties,
Page 9 of 72
several Vietnamese wood companies have to stop production, even suffering from loss and
bankruptcy. Productivity of capital has a problem due to poor financial management which can
result from poor cash flow and a lack of experience. If calculating capital effect (fixed and
working capital), Vietnam need VND 0.91 to create a VND 1 in 2008
The big problem accompanying with growth up of industry is demand for wood processing
worker in wood furniture industry has continuously been increasing during the recent years,
especially in 2008 needed 170,000 workers. However, Vietnam lacking of resources through
training and education wood processing, so almost skilled workers learned by working. The
given situation has resulted in the movement of the wood skilled workers between
organizations. In front of such situation, many of companies become awkward because of the
leaking and lacking skilled workers serving their jobs. They understand that losing the skilled
workers is a big problem since may it cause a threat to the success of their businesses. High rate
of labor turnover rate in wood processing business is affecting to whole of industry. Researching
on causes of labor turnover of the industry is necessary to work out measures to reduce this rate
and stabilize the workforce of the industry and opportunity for employees. Managers in many
companies wondered how to retain skilled workers and whether satisfying their work related
needs would help.
1.2 Tran Duc group introduction
The Tran Duc Group is one of the leading manufacturers of garden and indoor furniture and
flooring in Vietnam. Operating since 2000 the Tran Duc Group has successfully developed a
reputation for quality furniture and service excellence.
The group currently consists of five companies owned and operated wholly by the Tran Duc
Group.
Tran Duc Joint Stock and Furniture Global Corporation are responsible for
manufacturing the entire garden furniture program while Tran Duc One is the indoor furniture
facility. Sao Nam currently manufactures our indoor flooring and packaging and also hosts the
log yard and drying facilities.
In addition to manufacturing the Tran Duc Group in 2007 created the Tran Duc Forest
Management Services Company which is responsible for the acquisition and management of
plantation forests in Vietnam. Currently the Tran Duc Group owns two plantation areas in
central Vietnam holding 1500 ha of Acacia trees which are under Tropical Forest Trust
certification.
Page 10 of 72
1.3. Statement of the problem

During the past decade, employee turnover has become a very serious problem for
organizations. Managing retention and keeping the turnover rate below target and industry
norms is one of the most challenging issues facing business. All indication points toward the
issue are compounding in the future and, even as economic times changed, turnover will
continue to be an important issue for most job groups. Yet despite these facts employee turnover
continues to be the most unappreciated and undervalued issue facing business leaders. There are
a variety of reasons for this, for example, the true cost of employee turnover is often
underestimated. The causes of turnover are not adequately identified, and solutions are often not
matched with the causes, so they failed. Preventive measures are either not in place or do not
target the issues properly, and therefore have little or no effect, and a method for measuring
progress and identify monetary value on retention does not exist in most organizations.
Being aware of the critical role of skilled workers in the wood furniture company, Tran Duc
Group, which specialized in processing indoor and outdoor wood furniture with over 2,500
workers facing the same issue are striving to attract and retain skilled workers by various
measures such as increasing salary much higher than Government law about the limit salary,
house & fuel allowance, skill allowance. However, turnover rate among workers has still
increased during last year even though that is high season, low season or year end.
Table 1.2 Tran Duc JS resignation rate in 2008
Month
Jan-08
Feb-08
Mar-08
Apr-08
May-08
Jun-08
Jul-08
Aug-08
Sep-08
Oct-08
Nov-08
Dec-08
Resignation (#)
105
76
97
150
134
149
121
69
42
66
79
89
Rate (%)
10
10
17
17
23
23
14
12
13
12
Source: Tran Duc HR department

Turnover intension impacts negatively on product quality, productivity and performance of the
company. Moreover, it is costly and not easy to figure out for this hidden cost. Cost of labor
turnover includes expenses on procedures for separations and on training replacements, losses of
productivity when skilled workers spend time training new apprentices, waste caused by
production of more bad products by new laborers. To obtain enough skill for a stage of
production line, the worker needs at least trained 15 days before their skills are fully estimated.
Therefore, stable front-line workforces with artistic skills and honesty at whole production
process are valued to the company. The shortage of labor resource adds more difficulty to the
company which its key resource is man power. The labor shortage may slowdown the operation
Page 11 of 72
expansion of the company and leads to miss business opportunities, delaying delivery, resulting
in customer canceling contracts.
Why turnover is high after company spent more effort? What does the worker want? What are
their needs? Are they satisfied with their current jobs, current salaryies and allowances? Is there
relationship between satisfaction and worker retention? In order to has right solution to this
problem in wood furniture industry under current social-economic context, The Board of
Management needs to understand in more details about those issues namely are the worker
preferring better salary, promotion opportunity or motivation, working environment, good
relationship with boss/peers, or company culture? Research all factors effect to retain worker is
necessary not only in adds an insight into the issue of humane resource management in Tran
Duc Group but also responding to this situation in the long run
1.4. Purpose of research & objectives
Frederick Herzbergs two factor theory attempts to explain satisfaction and motivation in the
workplace. This theory states that satisfaction and dissatisfaction are driven by different factors
motivation and hygiene factors, respectively. An employees motivation to work is continually
related to job satisfaction of a subordinate. Motivation can be seen as an inner force that drives
individuals to attain personal and organization goals (Hoskinson, Porter, & Wrench, p.133).
Motivating factors are those aspects of the job that make people want to perform, and provide
people with satisfaction, for example achievement in work, recognition, promotion
opportunities. These motivating factors are considered to be intrinsic to the job, or the work
carried out. Hygiene factors include aspects of the working environment such as pay, company
policies, supervisory practices, and other working conditions.
Besides job dissatisfaction, the low level of organizational commitment is also correlated to
turnover (Angle & Perry 1981, Arnold & Feldman 1982, OReilly & Chatmen 1986, Porter at al
1976.). Studies of job satisfaction and organizational commitment to predict factors effected to
personnel retention and productivity. Charles Glisson and Mark Durick 1988 reported that a
combination of both satisfaction and commitment may form employee morale. Defining factors
that impact on employee satisfaction and commitment are potential paths to find a solution to
reduce turnover
The purpose of this study was to determine factors effected to job satisfaction and relationship
between job satisfaction and organization commitment. Vietnams economic comes down due to
worlds economic crisis, unemployment rate increase, so almost employees try to keep their
Page 12 of 72
jobs, therefore level of turnover is low. However, what happens when world economy was
recovered? The waves of workforces moving will re-occur, turnover may be increased in next
few years. A research result is necessary to the Tran Duc Groups Board of Management find
out long-term solutions for retaining skilled workers
In response to the above stated problems, this is the aim of research :
1. To quantitatively determine antecedent factors effecting to job satisfaction and organizational
commitment of production workers in Tran Duc group
2. To determine relationship between level of job satisfaction and that of organizational
commitment, this study investigated relationship between the level of satisfaction of each of
facets of job satisfaction and that of organizational commitment
3. To draw recommendations to improve retention of worker in Tran Duc Group
1.5. Scope & Limitations
Given the limited of sources and time, the research only focuses on the production workers and
a survey will be taken place at Tran Duc Joint Stock, and Furniture Global and Tran Duc One
Factory.
1.6 Thesis structure
This study report is presented in five chapters as follow:
Chapter 1 - Introduction provides a brief introduction to wood industry, overview of Tran Duc
group, the research problem, core objectives, scope of the study and structure of the research
report.
Chapter 2 - Literature Review provides some conceptual definitions of human resource
construction, theories of Job Satisfaction and Organizational Commitment. Also it reports
several literature reviews of Job Satisfaction and Organizational Commitment and a discussion
of previous researches on Job Satisfaction, Organizational Commitment and Employee
Turnover.
Chapter 3 - Research Methodology introduces the research model and hypotheses. Then it
justifies the methods used to evaluate measurement scales and test the research model and
hypotheses. This chapter is covers the general approach and construct measurement of the study,
Page 13 of 72
the source of primary and secondary information to be used, data collection method including
the design of questionnaire and sampling method.
Chapter 4 - Data Analysis and Findings presents the description of the sample and response
rate of the survey, the practical assessment and refinement of measurement construction, results
of testing theoretical model and hypotheses.
Chapter 5 - Conclusion, Discussion and Recommendations summarizes and discusses the
key findings of the research, then suggests recommendations for improving job satisfaction and
organizational commitment.
Page 14 of 72
CHAPTER II:
REVIEW OF LITERATURE
Over the years, many studies relating to personal in term of human needs, job satisfaction and
organizational commitment have been conducted, however, almost focus on staff but worker. In
this literature review, factors effect job satisfaction and organizational commitment will be
represented. Then, the model of job satisfaction and organizational commitment will be
proposed for this specific study, which provides a basis for development for hypotheses.
2.1 Job satisfaction
Job satisfaction and motivation have widely been investigated in many job situations and against
many different theoretical formulations. Frederick Herzberg's motivation-hygiene factor theory,
although considered nontraditional when it was introduced in 1959, has become one of the most
used, known, and widely respected theories for explaining motivation and job satisfaction. For
instance, Maidani (1991) made a comparative study of Herzberg's theory in private and public
sector jobs. His analysis showed that, for employees in both sectors, the motivation to work
tended to emphasize intrinsic, or motivating, factors. One interesting result of his work was that
public-sector workers tended to value extrinsic, or hygiene, factors significantly more than did
workers in the private sectors.
Herzberg's theory divides motivation and job satisfaction into two continua. The theory
differentiates between factors that are considered to be intrinsic to a job, such as responsibility,
and factors that are extrinsic but important to a job, such as working conditions. The factors that
are inherent to the job are those that affect motivation. To put it in Herzberg's (1968) own
words, "The only way to motivate the employee is to give him challenging work in which he can
assume responsibility." Conversely, the extrinsic factors affect job satisfaction. Moreover,
problems in the job satisfaction factors can serve as barriers to motivation, even if the
motivating factors themselves are addressed satisfactorily.
Job satisfaction means the degree in which an individual feels towards different sides of their
job (pay, promotion, supervision, fringe benefits, contingent rewards, operating procedures,
coworkers, nature of work and communication) which determine their work performance. (
Paul E. Spector 1997)
Page 15 of 72
Figure 2.1: Job Satisfaction Model (Justin Field 2008)
2.2 Factors affecting to job satisfaction

Growth Aspect: This is one of the key factors, without which there can not be job satisfaction.
For some individuals personal growth in terms of skills and knowledge gained is only important
whereas for some others in addition to knowledge, growth in hierarchy is important. In either
case advancement is a key factor to fulfillment.
Money talks: Adequate compensation drives ones interest in the job execution and their
performance, so let us not fool our self that money does not matter. There are a few among us
who work not only earn a living but also keep themselves occupied, even if this is the case it
becomes necessary that such individuals be paid as per the industry standard.
Responsibility & Accountability: Responsibility or May I say freedom of action is another
important factor that needs to be considered while you measure your job satisfaction.
Responsibility and accountability boosts most peoples level of interest in the job.
Job Security: Stability and Security is vital to everyone and at all times. Security in terms of
job is no exception. Insecurity in job is very likely to affect performance, morale and
confidence.
Recognition: Let be true to ourselves and agree that we all love to be recognized and
Page 16 of 72
appreciated for the work that we do. Recognition is essential as it helps increase confidence and
self esteem. It is highly important to know the outcome of a task assigned in terms of good or
bad appraisal so as to help them to improve their potentiality.
Enjoyment: It would be wise if everyone asks himself / herself if he/she enjoys his/her work.
Enjoyment at work comes with satisfaction. Do you look forward to going to work? Do you
await results of some important tasks that you complete the previous day? Even if your job is
some kind of routine work if you feel a sense of pride and achievement then you definitely
enjoy your job.
People you work with: Being comfortable with the people we work with high necessity.
Unpleasant relationships at the work place are indication to start looking for a new job as it is
very difficult to work with those who you hate or can not relate to. One should not try to find
best friends in their co-workers but its important that you get along well with all.
Working hours & conditions: Long hours induces fatigue and tiredness among individuals,
which might induce oversight in them and in such condition people make mistakes which take
more time to be solved. One does and should have a life outside work. Long hours without
breaks should be a strict no! If one is required to put in long hours make sure you are getting
compensation or getting knowledge and experience that you can not afford to loose. Working
conditions should be comfortable.
Perks: Perks last but not the least is another important factor in terms of job satisfaction. Your
designation derived from your talent and knowledge should be eligible for some privileges.
2.3 Job satisfaction theories
2.3.1 Two-Factor Theory (Motivation-Hygiene Theory)
Frederick Herzbergs two factor theory attempts to explain satisfaction and motivation in the
workplace. This theory states that satisfaction and dissatisfaction are driven by different factors
motivation and hygiene factors, respectively. An employees motivation to work is continually
related to job satisfaction of a subordinate. Motivation can be seen as an inner force that drives
individuals to attain personal and organization goals (Hoskinson, Porter, & Wrench, p.133).
Motivating factors are those aspects of the job that make people want to perform, and provide
people with satisfaction, for example achievement in work, recognition, promotion
opportunities. These motivating factors are considered to be intrinsic to the job, or the work
Page 17 of 72
carried out. Hygiene factors include aspects of the working environment such as pay, company
policies, supervisory practices, and other working conditions.
While Hertzberg's model has stimulated much research, researchers have been unable to reliably
empirically prove the model, with Hackman & Oldham suggesting that Hertzberg's original
formulation of the model may have been a methodological artifact. Furthermore, the theory is
not considered as individual differences, conversely predicting all employees will react in an
identical manner to changes in motivating/hygiene factors. Finally, the model has been criticized
in that it does not specify which motivating/hygiene factors are to be measured.
2.3.2 Affect Theory
Edwin A. Lockes Range of Affect Theory (1976) is arguably the most famous job satisfaction
model. The main premise of this theory is that satisfaction is determined by a discrepancy
between what one wants in a job and what one has in a job. Further, the theory states that how
much one values a given side of work (e.g. the degree of autonomy in a position) moderates
how satisfied/dissatisfied one becomes when expectations are/arent met. When a person values
a particular side of a job, his satisfaction is more greatly impacted both positively (when
expectations are met) and negatively (when expectations are not met), compared to one who
doesnt value that side. This theory also states that too many of particular ones will produce
stronger feelings of dissatisfaction the more a worker values that facet.
2.3.3 Dispositional Theory
Another well-known job satisfaction theory is the Dispositional Theory. It is a very general
theory that suggests that people have innate dispositions that cause them to have tendencies
toward a certain level of satisfaction, regardless of ones job. This approach became a notable
explanation of job satisfaction in light of evidence that job satisfaction tends to be stable over
time and across careers and jobs. Research also indicates that identical twins have similar levels
of job satisfaction.
A significant model that narrowed the scope of the Dispositional Theory was the Core Selfevaluations Model, proposed by Timothy A. Judge in 1998. Judge argued that there are four
Core Self-evaluations that determine ones disposition towards job satisfaction: self-esteem,
general self-efficacy, focus of control, and neuroticism. This model states that higher levels of
self-esteem and general self-efficacy lead to higher work satisfaction.
2.3.4 Equity Theory
Page 18 of 72
John Stacey Adams, a workplace and behavioral psychologist, puts forward his Equity Theory
on job motivation in 1963. There are similarities with Charles Handy's extension and
interpretation of previous simpler theories of Maslow, Herzberg and other pioneers of
workplace psychology, in that the theory acknowledges that subtle and variable factors affect
each individual's assessment and perception of their relationship with their work, and thereby
their employer. However, awareness and cognizance of the wider situation - and crucially
comparisons - feature more strongly in Equity Theory than in many other earlier motivational
models.
When people feel fairly or advantageously treated they are more likely to be motivated; when
they feel unfairly treated they are highly prone to feelings of disaffection and de-motivation.
The way that people measure this sense of fairness is at the heart of Equity Theory. The basic
idea following the Equity Theory is that workers, in an attempt to balance what they put in to
their jobs and what they get from them, will unconsciously assign values to each of his various
contributions. Workers contribute their experience, their qualifications, and their capability in
addition to their personal strength such as acumen and ambition, the most highly motivated
employee is the one who perceives his rewards are equal to his contributions. If he feels that he
is working and being rewarded at about the same rate as his peers, then he will judge that he is
being treated fairly.
Equity, and thereby the motivational situation we might seek to assess using the model, is not
dependent on the extension to which a person believes reward exceeds effort, nor does even
necessarily on the belief that reward exceed effort at all. Rather, Equity, and the sense of
fairness which commonly underpins motivation, is dependent on the comparison a person makes
between his or here reward/investment ratio with the ratio enjoyed (or suffered) by others
considered to be in a similar situation.
2.4 Theory application
Equity theory states that, worker fells satisfaction and motivation if they treaded fairly in the
organization. Dispositional theory mentions that higher levels of self-esteem and general selfefficacy lead to higher work satisfaction. Meanwhile affecting theory states that the main
premise of this theory is that satisfaction is determined by a discrepancy between what one
wants in a job and what one has in a job.
Motivation-Hygiene theory states that satisfaction and dissatisfaction are driven by different
factors motivation and hygiene factors, respectively. This theory covers all the factors from
Page 19 of 72
other theory that lead to low or high turnover. Thus, in this research we use Motivation-Hygiene
theory for hypothesis testing
Figure 2.2 Adams Equity Theory diagram - job motivation
2.5. Organizational commitment

Traditionally, within the employment relationship, employees exchanged their loyalty and hard
work for the promise of job security. In the contemporary environment, changes in
organizational structure towards more flexible work practices and the decline in job security
have altered the psychological contract between employer and employee (Allan, 2002; WiensTuers, 2001). The new form of psychological contract is visible in placement practices, which
see organizations focus on non-core and part-time workers to gain flexibility at lower cost
(Cappelli, 1999; Kalleberg, 2000). Because of these organization-wide changes, the essence of
attachment between employer and employee has changed.
The old contract of employee loyalty in exchange for job security and fair work has dissolved
(Overman, 1998). Current employer emphasizes "employability" rather than long-term loyalty
in a specific job (Cappelli, 1999; Ko, 2003). The trend these days seems to be geared towards
having a 'career portfolio (Handy, 1995; Hays & Kearney, 2001). Replacing the old employment
deal, the new psychological contract suggests that the employer and the employee meet each
other's needs for the moment but are not making long-term commitments.
It is suggested that commitment to one's professional growth has replaced organizational
commitment (Bozeman & Perrewe, 2001; Powers, 2000). Instead of job security, employees
Page 20 of 72
now seek job resiliency; opportunities for skill development and flexibility in order to quickly
respond to shifting employer requirements (Barner 1994). Employees seem to take greater
responsibility for their own professional growth in order to increase their career marketability
(Finegan, 2000).
Commitment is a belief which reflects "the strength of a person's attachment to an organization"
(Grusky, 1966, p. 489). Researchers have suggested that reciprocity be a mechanism underlying
commitment (Angle & Perry, 1983; Scholl, 1981) and that employees will offer their
commitment to the organization in reciprocation for the organization having fulfilled its
psychological contract (Angle & Perry 1983; Robinson, Kraatz & Rousseau, 1994). By fulfilling
obligations relating to, for example, pay, job security, and career development, employers are
creating a need for employees to reciprocate, and this can take the form of attitudinal reciprocity
through enhanced commitment and consequently influence employees to stay with the
organization (Becker & Huselid, 1998; Capelli, 2000; Furnham, 2002; Oakland & Oakland,
2001; Wagar, 2003)
Previous studies of the concept of commitment (Mowday, Porter & Steers, 1982; Meyer &
Allen 1991) have substantiated that employee commitment to the organization has a positive
influence on job performance and a negative influence on intention to leave or employee
turnover. In addition, empirical evidence also strongly supports the position that intent to stay or
leave is strongly and consistently related to voluntary turnover (Dalessio, Silverman & Schuck,
1986; Fishbein & Ajzen 1975; Griffeth, Hom & Gaertner, 2000; Lambert, Hogan & Barton,
2001; Mathieu & Zajac, 1990).
According to Mayer and Allens (1991) three commonly cited components of commitment, (i.e.
continuance, normative and affective) effective commitment is the most studied dimension
(Aven, Parker & McEvoy, 1993; Dunham, Grube & Castaneda, 1994; Wahn, 1998). Affective
commitment is considered to be an affect-focused attitude towards the organization, which
represents an emotional bond between an employee and his or her organization (Allen, 1996).
Individuals possessing high levels of affective commitment identify with, are involved in, and
enjoy membership in the organization and are therefore more likely to remain with the
organization.
Ulrich (1998) has suggested that engaging employees' emotional energy gains commitment
toward the organization. The most fundamental of those processes thought to influence affective
commitment is an employee's personal fulfillment based on met needs and positive work
experiences (Meyer & Allen, 1997). Although employees may develop affective commitment
Page 21 of 72
through relatively unconscious associations with positive work experiences (classical

conditioning), research suggests that affective commitment can be consciously influenced by
human resource practices such as collaboration and team work, high autonomy job design,
training and development, rewards, and participation in decision making (Agarwala, 2003,
Meyer & Allen, 1997, Ulrich, 1998).
2.6. Factors affecting to organizational commitment
Mayer et al, 1991 defined general patterns that have emerged in the previous researches. The
drivers of commitment have belonged to three categories as personal characteristics,
organizational structure and work experiences.
2.6.1 Personal characteristics: age, gender, experience and education. Most of findings of the
previous studies proved that there is a positive relationship between age, experience and
commitment.
2.6.2 Organization structure: Through not many researches examine the relation of
organization structure and commitment. However, some evidences showed that commitment is
related to decentralization of making decision and formulation of policy and procedure.
2.6.3 Work experience: According to Mayer et al, 1991 the variables of work experience should
be divided into two groups, one refer to comfortable feeling including equity in reward
distribution, organizational dependability, role clarity and freedom form conflict, supervisor
support, pre-entry expectation and the other refer to competencies feeling in workers position
including accomplishment, autonomy, reward equity, job challenges, job scope, opportunity for
advancement, opportunity for self-expression, participation in making decision .
According to Leigh Branham in The 7 hidden reasons employees leave: How to recognize the
subtle signs and act before its too late, the first step in addressing turnover, is to understand the
reasons. Here they are:
Reason #1: The job or workplace is not satisfactory as expected.
Reason #2: The mismatch between job and person.
Reason #3: Too little coaching and feedback.
Reason #4: Too few growth and advancement opportunities.
Reason #5: Feeling devalued and unrecognized.
Page 22 of 72
Reason #6: Stress from overwork and work-life imbalance.

Reason #7: Loss of trust and confidence in senior leaders.
Figure 2.3 Factors Affecting Job Satisfaction and Organizational Commitment
Source: Human resource Management, twelfth edition, Robert L. Mathis, John H. Jackson
2.7. Models of Retention-Turnover
More than two decades, many researchers have defined a part of variables that appeared to
contribute to either job satisfaction or organizational commitment. These variables may be
divided into three groups: (1) variables that describe characteristics of job tasks; (2) variables
describe that organization; (3) variables describe that worker (Charles Glisson & Mark Durick,
1998).
Also, Price, Mueller, and colleagues (Kim et al. 1996; Mueller & Price 1990; Price1977; and
Price & Mueller 1986a, 1986b) was developed a retention-turnover model that identifies
impacts of structural, environmental, and personal variables on job satisfaction and
organizational commitment. Job satisfaction and organizational commitment are identified as
intervening variables affecting stay/quit intentions. The model describes intentions as the
immediate precursor to turnover/retention behaviour (Kim et al. 1996; Mobley et al. 1979).
Page 23 of 72
2.8 Importance of job satisfaction and organizational commitment

There is a link between job dissatisfaction with withdrawal and aggressive or violent behaviors
in the workplace (Glomb, 1999; Rosse, 1983 et al.). When the gap between dissatisfaction and
employees expectancy are big enough, withdrawal and aggressive or violent behaviors can
appear.
Besides job dissatisfaction, the low level of organizational commitment is also correlated to
turnover. Studies of job satisfaction and organizational commitment are attempts to increase
understanding of personnel retention and productivity. A combination of both satisfaction and
commitment may form employees morale (Charles Glisson and Mark Durick 1988).
According to the empirical research conducted since 1972 by Price, Mueller and their
colleagues, job satisfaction and organizational commitment are intervening variables of
turnover. The research indicated seven structural variables that may impact on job satisfaction
and organizational commitment such as: autonomy, justice, stress, pay, promotional chances,
rountinization, and social support.
Following Job Satisfaction Survey (JSS) developed by Paul E. Spector (1994) including nine
sides. Pay, Promotion, Supervision, Fringe, Benefit, Contingent Reward, Operating Procedures,
Coworker, Nature of Work and Communication.
Page 24 of 72
Figure 2.4 Research model proposals

Companys Vision
Job Security
Opportunity for Growth
Supervision
Organizational
Commitment
Pay & Benefits
Job Satisfaction
Working Conditions
Opportunities for
Promotions
Reward & Recognition
Co-workers relation
Page 25 of 72
2.9 HR practice in Tran Duc group

2.9.1 Regulations and Policy
Regulations
Besides common regulations applied at most companies such as: working hours (8 hours/day
and 6 days/week), annual leave (12 days/year), wearing uniform while working, punishment of
violating rules and regulations, labor contract will co-sign if worker pass temporary contract
Insurance Policy
All human resources policies conform to the Vietnamese law. The company offers to all
workers who working in risk areas a health insurance 24/24 and pay full wage, allowances and
medicine cost if there are any safety incident happen.
2.9.2 Job description
There are no official systems or working instruction designs for each department or each
variance, all based on working experience. There are five difference departments in the
manufacturing process, those are cutting and planning, shaping and drilling, assembling and
sanding, painting and oiling, and packing. The tasks are very complex however they are
assigned in verbal by team leader to worker. Production is following process, each department
carries about fifteen steps of the process. Therefore, job description for each worker is complex,
each worker carries some tasks. Worker who has high skills is assigned to do complicated steps.
However, the worker was not officially recognized their skill level. There is not a job ladder or
skill level to distinguish worker qualifications officially.
2.9.3 Recruitment process
Recruitment process of workers as below: Request from manufacturing department Factory
manager approval HR department Select candidates Pre-interview by HR Final
interview by request department Employment
Selected workers must be graduated from secondary school at least. However, in the recent
years, due to shortage of labor source have reduced selection standard to obtain enough the
quantity of personnel in need. Then, workers graduated from primary school are acceptable.
Therefore the quality of workers has decreased in talent as well as morals.
2.9.4 Training
Page 26 of 72
There isnt official process for training new workers, after a half-day regulation training
conducted by HR, they starting working. Production team leader and supervisor will coach them
from simple tasks to complicated task.
Almost team leaders promoted from worker as well as supervisors were promoted from line
leader therefore they were very good in technical skills but not in management. There were no
training courses of management for these supervisors before taking over the positions.
2.9.5 Skill evaluation
There are no systems to measure the skill of workers. Each supervisor sets up by themselves an
evaluation standard based on standard time, assiduity, attitude of worker And it is quite
different from supervisor to supervisor. The skill of worker is evaluated qualitatively by
supervisor. No test or exam to ensure that there is not bias in evaluation. The skill of worker is
just recognized by the supervisor and it is not official to the company.
2.9.6 Pay, allowance, benefits and bonus
No skill-based pay structure is employed. All workers, who have no specific skills start at the
minimum level of salary. The salary for worker in probation time is 75% of 1,030,000 VND. If
they can pass probation, they can be offered at the minimum salary level of contractual staffs.
The salary for contractual worker is 1,030,000 VND.
Company pay allowance for housing, transportation, attendant, health care maximum 300,000
VND
Salary is reviewed based on performance standard designed by department heads or supervisors
based on their skill increasing. The company review salary manually, increase rate base on
business result.
Workers received one month salary bonus on end of year and 200,000 VND for each year of
seniority
In addition, workers are offered a lunch and a dinner if they work over time.
Page 27 of 72
CHAPTER III
RESEARCH METHODOLOGY
In order to test the model and hypotheses stated in previous chapter, this research adopts
quantitative approach in which the data were by means of questionnaire survey.
3.1 Proposal research model
This research model is depicted in Figure 2.4; Studies of job satisfaction and organizational
commitment have a common purpose that is to increase understanding of personnel retention
and productivity. Defining factors leading to worker turnover should be done through defining
factors that impact on employee satisfaction and commitment. A model of turnover predictors
with assumption of worker turnover related to the level of job satisfaction and organizational
commitment was developed for this study. This model was developed based on the
HERZBERGs two-factor theory and adopting the works of Meyer et al, 1991, Price, Mueller,
and colleagues (Kim et al. 1996; Mueller & Price 1990).
3.2 Instruments
A survey instrument is designed to measure and identify demographic characteristics, levels of
job satisfaction and organizational commitment among worker of Tran Duc Group. A cover
letter briefly explained the purpose of the study and further explanations are given when
requested. The respondents received and answered the questionnaires at their work place.
Participation is voluntary. The questionnaire consisted of three sections as follow:
Section 1 - Job satisfaction scale: A self-developed, combined and refined job satisfaction
questionnaires are adapted from John H. McConnell, 2003, Kim et al 1996, Hilb 2003 and Paul
E. Spector 1994. The nine most common job satisfaction domains are chosen for inclusion in the
questionnaire. These included: Company policy, job security, opportunity for growth,
supervision, pay & benefit, working condition, opportunity for promotion, reward &
recognition, co-worker relation. A further some questions are also included in the questionnaire:
worker asked about their overall job satisfaction and intention to leave the organization if they
received a good offer from other companies. The questionnaire utilizes a Likert type scale with
five response alternatives ranging from Strongly disagree (weighted 1) to Strongly agree
(weight 5).
Page 28 of 72
Section 2 Organizational commitment scale: This variable is measured using the

questionnaires developed by Mowday, Steers and Porter. Ratings are completed on a five point
scale from Strongly disagree (weighted 1) to Strongly agree (weight 5).
Section 3 Demographics: The questionnaire gathered data related to participants (a) gender;
(b) Marital status; (c) age; (d) year of experience; (e) education level; (f) monthly salary
3.3 Participation
The population of the study will be the total number of the worker at Tran Duc Group up to
May. 31th, 2009, respondents are 333 workers. Refer to the sample size defined in the webpage
http://www.surveysystem.com/ . The researcher expected about 70% respondent. Thus, 475
questionnaires are issued and they equal to 20% of population. (Total workers of the Tran Duc
Group are 1,500).
N = Z2 * p * (1-p) / C2
Where: Z = 1.96 for 95% confidence level
p = 0.5 percentage picking a choice, expressed as decimal
c = 5 confidence interval, expressed as decimal
3.4 Translation and pre-test reliability of questionnaire
The questionnaire was adapted and developed in English. However, the target respondents were
Vietnamese workers. Therefore, the questionnaire should be translated into Vietnamese as
understandable as possible.
A pilot study is undertaken to test the relevance and clarity of the questions and to refine them
as needed to avoid misunderstand. A small sample of 45 workers were randomly selected, who
are not included in the sample, received the questionnaire. Pilot test result found that
questionnaires need to modified or new developed to avoid confuse by workers who have low
education level
Page 29 of 72
3.5 Research hypotheses

The research model consists of nine independent variables (Company vision , Job security,
Opportunity for Growth, Supervision, Pay & benefits, Working condition, Opportunity for
Promotion , Reward & recognition and co-worker relation) and two dependent ones (job
satisfaction and organizational commitment). Therefore, nine pairs of hypotheses were
developed as follow:
1. Company vision: The competency is designed to survey feelings toward company vision. A
good vision is one that arranges the activities of the enterprise in such a way that they contribute
to the goals of the organization. Specifically, this topic investigates whether employees clearly
understand about future of company
H1: There is a positive impact of company vision on job satisfaction and/or organizational
commitment.
2. Job security: This competency is designed to measure how employees view their job security
within organization. In todays often volatile or contingent labor market, its crucial to
understand the level of security employees feel about their jobs. Studies show that employees
who do not feel secure in their jobs are less likely to be committed to best assisting customers.
This competency can be especially useful if your organization has suffered recent layoffs or
firings.
H2: There is a positive impact of job security on job satisfaction and/or organizational
commitment.
3. Opportunity for growth: This competency explores issues such as internal growth
opportunities, potential for advancement, career development importance, and the relationship
between job performance and career advancement. The question set examines whether
employees believe they have a chance to grow within the organization. Studies show that lack of
career opportunity is one of the top reasons employees leave an organization. Also, continually
hiring open positions from outside the organization can be detrimental to morale when a
qualified candidate is available internally. Topics covered in this competency are perceived
opportunity for advancement, existence of a career development plan, and organizational
commitment to staff development.
Page 30 of 72
H3: There is a positive impact of opportunity for growth on job satisfaction and/or
4. Supervision: This competency is designed to reflect employees feelings regarding their
direct manager or supervisor. The manager/supervisor competency covers topics such as clarity
of goals, manager support, coaching and feedback, and regular reviews of performance. The old
adage People leave their managers, not organizations is often true. Of all the workplace
stressors, a bad immediate manager is one of the worst and can directly affect the emotional
health, productivity, and retention of an employee. This organizational topic can be especially
insightful if organization is losing quality employees while compensation and benefit packages
are equivalent with industry standards.
H4: There is a positive of supervision on job satisfaction and/or organizational commitment.
5. Pay & benefits: This competency focuses in detail on how employees feel regarding their
compensation and benefits packages. The questions included in this organizational topic can
help organization determine whether employees feel they are fairly paid for the work they
perform when compared to a similar job at a different company. This competency also queries
their feelings regarding the adequacy and quality of their benefits package. A fair and attractive
compensation package is critical for hiring and retaining quality employees. A high satisfaction
level in this competency requires that your compensation structure and benefits package be fair,
balanced, and understood by present employees.
H5: There is a positive impact of pay & benefits on job satisfaction and/or organizational
commitment.
6. Working condition: This competency is designed to measure how employees feel about their
physical and environmental working conditions, the quality of their equipment and tools, and
overall attention to safety within the workplace. Every organization is responsible for ensuring
the health and safety of its employees. An unsafe working environment can lead to accidents,
lawsuits, and missed work. Such incidents can result in significant costs to organization. The
questions included in this organizational topic investigate whether your employees are satisfied
with the organizations facilities, whether they believe business is being conducted in a safe
manner, and whether the tools and equipment provided are adequate to successfully and safely
complete their jobs.
H6: There is a positive impact of working condition on job satisfaction and/or organizational
commitment.
7. Opportunity for promotion:
Page 31 of 72
H7: There is a positive impact of opportunity for promotion on job satisfaction and/or
8. Reward & recognition: This competency examines whether employees believe they are
properly and fairly recognized for their efforts. This organizational topic also explores what type
of behavior is appreciated and rewarded within organization. Studies show that employees who
receive regular recognition and praise are more likely to raise their individual productivity
levels, increase engagement with their colleagues, and stay longer at the organization. This
organizational topic can be especially insightful if organization is experiencing low productivity
levels or ineffective teamwork
H8: There is a positive impact of reward & recognition on job satisfaction and/or organizational
commitment.
9. Co-workers: This competency is designed to examine issues surrounding effective
cooperation, collaboration, and communication among the workers in organization. Whereas the
Team Dynamics competency focuses on relationships within a single group, this competency is
written to target coworker topics spanning the entire organization over multiple work units. This
organizational topic investigates team members ability to successfully partner on projects with
one another and between groups to reach the common goals of the organization. This
competency also examines whether employees feel they are treated fairly and equally in relation
to other workers and sections of the organization.
H9: There is a positive impact of co-workers on job satisfaction and/or organizational
commitment.
3.6 Research methodology
Questionnaire survey is designed to collect information of workers opinion. Exploratory study
will help to discover the level of workers commitment and satisfaction. Respondents will be
asked to disagree or agree with Likert scale anchored by 1 strongly disagree to 5 strongly
agree.
Face-to-face interviews help to explore the employers view of HR practices are currently
deployed in the organization.
In-depth interviews with managers will help to collect their view about certain things which
would be important factors led their worker commitment.
Page 32 of 72
In-depth interviews with left workers help to explore reasons of their leave and what they expect
or obtain from the new place. This data need to support references for analysis.
3.7 Data collection
I will use both primary and secondary data for all the analytical methods.
3.7.1 Primary data
Questionnaire survey was designed to collect information of workers opinion. Exploratory
study was used to discover factors having impact on the level of workers commitment and
satisfaction. The questionnaire included three sections:
Questionnaire Design: included 3 sections
1. Survey about job satisfaction factors

2. Survey about organizational commitment factors.
3. Survey about Personal background information

3.7.2 Secondary data
Secondary data is collected from Human Resource Department. Also, it is gathered from
Consulting reports, Economics News and Journal of Management Study.
3.8 Method of analysis.
Computer Statistic Package for Social Science (SPSS) version 11.5 will be used as the main tool
for analysis of the quantitative data. Descriptive statistical analyses: percentage, median, means,
standard deviation, Cronbach alpha, EFA and correlation coefficient. Multiple regression
analysis is used to study the correlation and to test the research model. The analysis process is
implemented as follow
3.8.1 Assessment of measurement of scale
The multi item scale developed above have to be evaluated for their reliability,
unidimensionality and validity. Cronbach alpha is the most commonly use approach test
reliability. Cronbach alpha will be high if the scale is highly correlative (Hair et al., 1998).
Unidimensionality is defined as the existence of one construct of underlying a set of items
Page 33 of 72
(Garver and Mentzer, 1999). Unidimensionality should be test before doing reliability tests
because reliability such as Cronbach alpha does not ensure unidimensionality but instead
assumes it exists (Hair et al., 1998). In the current research, the main assessment method is
exploratory factor analysis (EFA). There are two methods used to extracting factors in EFA,
common factor analysis and principal component factor analysis. While principal component
factor analysis is used mainly for item reduction and test unidimensionality, reliability, common
factor analysis is for exploring the latent dimensions represented in the original variables
(Conway and Huffcutt, 2003) and test convergent validity, discriminant validity. The analyses
were implemented through two respective steps:
The first step, EFA with principal component, eigenvalue >= 1 and VARIMAX rotation was
applied to 9 constructs under investigation (Conway and Huffcutt, 2003). The main purpose of
this step is to see whether the scale for each constructs under investigation is unidimensional or
multidimensional. For a scale to be empirically unidimensional, the factor analysis must result
in only one factor extracted. Moreover, item with low factor loading < 0.40 were eliminated
because they do not converge properly with the latent construct they were designed to measure
(Hair et al., 1998). Then, reliability analysis was applied to each set of items to assess and refine
the measurement item. Items having low Cronbach alpha < = 0.60 item to total correlation
coefficient <= 0.35 were eliminated.
The second step, a joint EFA with the same setting was performed. All items of all constructs
putted together to assess unidimensionality, convergent and discriminated validity (Kline,
1998). Given result of step 1 where each item loads highly on the factor representing its
underlying construct, this joint EFA allow all items correlate with every factor without being
constrained to correlate only with its underlying factor (Kline, 1998). Consequently, it allows
the investigation of the general correlation pattern of the measurement items (Fabrigar et al.
1999). The second step of factor analysis was conducted to provide evidence for the validity
(discriminant and convergence) of the measures. A joint EFA (principal axis factoring) with
rotation method (EQUAMAX, eigenvalue 1) was performed on all items of all constructs put
together to have a assessment of convergent and discriminant validity.
3.9 Measurement scales of the questionnaire
Basing on theories and researches were mentioned in the previous chapter together with
information collected from preliminary interviews, the measurement scales of the questionnaire
was adapted and developed as the below table. 3.1
Page 34 of 72
3.10 Source of measurement scales

(1) Company vision: Questionnaires were developed by the author basing on web-side
(2) Job security: This construct consisted of five items. Question no. 5 & 6 were developed by
Oldham 1986 and adapted by Deery et al. 1994. Question no. 7, 8, 9 was designed by the author
base on we-side
(3) Opportunity for growth: This scale was measured by four variables, question no. 10, 11,
12, 13 was modified from web-side
(4) Supervision: This construct was measured by four variables, Q14, Q15, Q16 were
developed from John H. McConnell 2003.
(5) Pay & benefits: Salary and benefits were measured by four items from question Q18 to
Q21. These scale were developed from sample questionnaires by John H. McConnell 2003 and
survey questionnaires by Paul E Spector 1994
(6) Working condition: This construct consisted of 4 items, from item Q22 to Q25 adapted
from Kim et al. 1996
(7) Opportunity for promotion: Opportunity for promotion questionnaires from item Q26 to
Q29 were developed by the author based on web-side
(8) Reward & recognition: Four items, Q30 to Q33 were developed by the author based on
web-side
(9) Co-worker relation: Three items, Q34, Q36 were developed from sample questionnaires
by John H. McConnell 2003, Q37 from survey questionnaires by Paul E Spector 1994
(10) Job satisfaction: The construct of satisfaction in this research was measured by 5 scales.
The content of questions was adapted from facet-free job satisfaction of Quinnn Saines 1979
(page 476, Handbook of organizational measurement).
(11) Commitment: The scales of commitment in this research included 10 items that were
applied from the 15 items of organizational commitment questionnaire (OCQ) of Mowday,
Porter and Steers, 1974
Page 35 of 72
Table 3.1 Measurement scales of Job dissatisfaction and organizational commitment

CON
CODE
ITEM
VISI1
Q1
VISI2
Q2
VISI3
Q3
VISI4
Q4
SECU1
Q5
SECU2
Q6
SECU3
Q7
SECU4
Opportunity for
Promotion
Working
condition
Pay & Benefits
Supervision
Opportunity for
Growth
Job Security
Companys Vision
STRUCT
ITEMS OF MEASUREMENT SCALES
SOURCE
I am optimistic about the future of the company.
Modified
I am optimistic about my future success with the

company
The company is a leader in the industry in important
ways
The company is a strong competitor in key growth
areas.
I am confident that I will be able to work for this
company as long as I do a good job.
Modified
Modified
Modified
Oldham 1986
My job is a secure one.
Oldham 1986
Modified
Q8
I feel that working for the company will lead to the

kind of future I want.
I am confident that the company growth will bring us
the security of job.
SECU5
Q9
I feel that the company cares about its people
Modified
GROW1
Q10
I am encouraged to learn from my mistakes
Modified
GROW2
Q11
My work is challenging and stimulating
Modified
GROW3
Q12
I receive the training I need to do my job well
GROW4
Q13
SUPE1
Q14
SUPE2
Q15
My manager treats all employees fairly.
SUPE3
Q16
My manager always treats me with respect.
SUPE4
Q17
PAY1
Q18
PAY2
Q19
PAY3
Q20
PAY4
Q21
COND1
Q22
COND2
My manager encourages and supports my

development.
Employee performance evaluations are fair and
appropriate.
My manager gives me praise and recognition when I

do a good job
The benefits we receive are as good as most other
organization offer.
The salary I receive compare well to my co-worker
basing on skill, efficiency and responsibility.
Modified
Modified
Modified
John H. McConnell
2003
John H. McConnell
2003
John H. McConnell
2003
John H. McConnell
2003
Paul E Spector 1994
John H. McConnell
2003
I feel I am being paid a fair amount for the work I do
Paul E Spector 1994
My salary is competitive with similar jobs I might

find elsewhere
My workplace is a physically comfortable place to
work
John H. McConnell
2003
Q23
I have the resources I need to do my job well.
Kim et al. 1996
COND3
Q24
I have adequate protecting equipment to do my job.
Kim et al. 1996
COND4
Q25
My workplace is safe
Kim et al. 1996
PROM1
Q26
Company is frequency evaluate workers skill
PROM2
Q27
PROM3
Q28
PROM4
Q29
The procedures used to determine salary increases

are base on workers skill.
I am satisfied with my skill evaluated by the
company
My salary is adequate to my skill
Kim et al. 1996
Modified
Modified
Modified
Modified
Page 36 of 72
Reward &
Recognition
Co-workers
Job satisfaction
Organizational Commitment
Demography
REWA1
Q30
Company rewards workers who did the good job.
Modified
REWA2
Q31
Company rewords workers who did improvements

with benefic
Modified
REWA3
Q32
The rewards I receive are adequate to my

contribution
Modified
REWA4
Q33
Modified
COWO1
Q34
When I do good job, I receive the recognition for it

that I should.
I like people I work with
COWO2
Q35
My co-workers are friendly.
COWO3
Q36
I receive supporting from my co-workers
COWO4
Q37
The employees in my department work well as a

team.
John H. McConnell
2003
John H. McConnell
2003
John H. McConnell
2003
SATI1
Q38
Company is good place for you to work
Hilb 2003
SATI2
Q39
I like to work with company
Hilb 2003
SATI3
Q40
I want to built company prestige
Hilb 2003
SATI4
Q41
I trying to fulfill company work well
Hilb 2003
SATI5
Q42
I satisfy with my current job
Hilb 2003
COMM1
Q43
COMM2
Q44
COMM3
Q45
COMM4
Q46
COMM5
Q47
COMM6
Q48
COMM7
Q49
COMM8
Q50
COMM9
Q51
COMM10
Q52
1
2
3
4
5
6
I am willing to put in a great deal of effort beyond

that normally expected in order to help this
organization be successful.
I would accept almost any type of job assignment in
order to keep working for this organization
I feel very much loyalty to this organization
I am proud to tell others I am part of this
organization
I could just as well be working for a difference
organization as long as the type of work is similar
It would take very little change in my present
circumstances to cause me to leave this organization
I am extremely glad that I chose this organization to
work for over others I was considering at the time I
jointed
For me this is the best of all possible organizations
for which to work
I feel more committed to a career with the company
this year than I did a year ago.
I really care about the fate of this organization
Gender
Marital status
Salary
Year of experience
Age
Educational level
Paul E Spector 1994
Mowday, Steers,
Porter 1974
Mowday, Steers,
Porter 1974
Mowday, Steers,
Porter 1974
Mowday, Steers,
Porter 1974
Mowday, Steers,
Porter 1974
Mowday, Steers,
Porter 1974
Mowday, Steers,
Porter 1974
Mowday, Steers,
Porter 1974
Mowday, Steers,
Porter 1974
Mowday, Steers,
Porter 1974
Page 37 of 72
CHAPTER IV
RESEARCH FINDINGS
This chapter presents sample characteristics, the assessment, and refinement of the measurement
scale based on the data of set 350 cases, the results from the statistical estimation, the discuss
and managerial implications.
4.1 Sample characteristics
4.1.1 Sample
The data collected from 475 questionnaires delivered through directly contact, the total numbers
of the collected questionnaires were 405, respond rate is 85%. After filtering, the number of
questionnaires were eliminated is 55 due to many missing. As a result, 350 questionnaires were
officially used in the data analysis.
4.1.2 Gender
60.3% respondents were female and 39.7% were male. This ratio is the same as the ratio of
gender population in the factories.
Table 4.1 Sample distribution by gender
Valid
male
female
Total
Frequency
139
211
350
Percent
39.7
60.3
100.0
Valid Percent
39.7
60.3
100.0
Cumulative Percent
39.7
100.0
4.1.3 Age
Most age of workers were from 20 to 25 years. There were 14% under 20 years of age, 44.9% in
the range of 20 to 25 years of age, 27.4% in the range of 26 to 30 years of age, and 13.7% above
30 years of age
Table 4.2: Sample distribution by age
Frequency
Valid
Percent
Valid Percent
Cumulative
Percent
under
20
20-25
26-30
over 30
49
14.0
14.0
14.0
157
44.9
44.9
58.9
96
48
27.4
13.7
27.4
13.7
86.3
100.0
Total
350
100.0
100.0
4.1.4 Marital status

44.3% respondents had got married meanwhile 54.3% single, the rest 1.4% divorced.
Page 38 of 72
Table 4.3 Sample distribution by marital status
Valid
married
single
divorce
Frequency
155
190
Percent
44.3
54.3
Valid Percent
44.3
54.3
Cumulative Percent
44.3
98.6
5
350
1.4
100.0
1.4
100.0
100.0
Total
4.1.5 Education level

13.1% respondents have not yet passed primary school, 47.4% respondents graduated from
secondary school, 38.6% respondents graduated from high school, there was only 0.9%
graduated from college.
Table 4.4 Sample distribution by education level
Valid
Primary
Secondary
high
college
Total
Frequency
46
166
135
3
350
Percent
13.1
47.4
38.6
.9
100.0
Valid Percent
13.1
47.4
38.6
.9
100.0
Cumulative Percent
13.1
60.6
99.1
100.0
4.1.6 Year of experience

Most tenure of workers was from 1 to 3 years. 11.7% respondents were under 6 months, 35.4%
from 7 to 12 months, 39.1% from 1 year to 3 years, 10.9% from 3 years to 5 years and 2.9%
over 5 years.
Table 4.5 Sample distribution by year of experience
Valid
under 6 months
from 7 to 12
months
from 1 to 3 years
from 3 to 5 years
over 5 years
Total
Frequency
41
Percent
11.7
Valid Percent
11.7
Cumulative Percent
11.7
124
35.4
35.4
47.1
137
38
39.1
10.9
39.1
10.9
86.3
97.1
10
2.9
2.9
100.0
350
100.0
100.0
4.1.7 Salary
Most workers take home 1.5 to 2 million VND per month (75.1%), 15.7% workers received 1 to
1.5 million VND per month, 8% workers received over 2 million VND per month, the rest 1.1%
received minimum level of salary under 1 million VND per month.
Page 39 of 72
Table 4.6 Sample distribution by salary

Frequency
Valid
under 1 million VND

1-1.5 million VND
1.5-2 million VND
over 2 million VND
Total
4
55
Percent
1.1
15.7
Valid Percent
1.1
15.7
Cumulative Percent
1.1
16.9
263
28
75.1
8.0
75.1
8.0
92.0
100.0
350
100.0
100.0
4.2 Assessment of measurement scale

As mentioned in Chapter 3, each model comprises nine independent varieties and one dependent
variety. To assess internal consistency and unidimentionality of each construct, reliability test
and a factor analysis of single construct are employed. Reliability test may be done if an
assumption of unidimentionality was justified (Hair et al., 1998). Therefore, before testing the
reliability of measurement scale, a test for unidimensionality of a measurement scale may be
undertaken.
The process of assessment and refinement of measurement scale are implemented through two
steps using SPSS 11.5 software. The first step is EFA and Cronbach alpha to assess
unidimentionality and reliability. The second step is EFA with all scales together in order to
assess convergent validity and discriminant validity. In this process, the items dont meet
evaluating criteria are eliminated. After refinement, reliability of scale is re-assessed by
Cronbach alpha. Criteria of refinement of item included factor loading > 0.40, item-total
correlation > 0.35, Cronbach alpha > 0.60, % of variance (Hair et al., 1998).
4.2.1 EFA for scale of factors
Following the procedure and criteria described above, the EFA results show that all of the scales
were loading for only one factor and immediately acceptable
Page 40 of 72
Table 4-7 Unidimentionality and reliability test results
Construct /
Items
Item
Description
Company' vision
(Alpha = .8658;
Eigenvalue =
2.858)
Q1
I am optimistic about the future of the

company.
I am optimistic about my future success with the
company
The company is a leader in the industry in
important ways
The company is a strong competitor in key
growth areas.
I am confident that I will be able to work for this
company as long as I do a good job.
I feel that working for the company will lead to
the kind of future I want.
I am confident that the company growth will
bring us the security of job.
Q2
Q3
Q4
Job Security
(Alpha = .8769;
Eigenvalue =
3.313)
Q5
Q6
Q7
Q8
Opportunity for
Growth
(Alpha = .8665 ;
Eigenvalue =
2.874)
Supervision
(Alpha = .8605 ;
Eigenvalue =
2.822)
.7173
.859
.7341
.863
.7441
.812
.6698
.771
67.458
.6458
.862
.7623
.837
.7341
.849
.7500
.6638
782
Q10
.827
Q11
.871
.7531
Q12

development.
appropriate.
.871
.8125
.820
.6846
.858
7343

My manager gives me praise and recognition
when I do a good job
The benefits we receive are as good as most
other organizations offer.
The salary I receive is compared well to my coworker based on skill, efficiency and
responsibility.
I feel I am being paid a fair amount for the work
I do
My salary is competitive with similar jobs I
might find elsewhere
My workplace is a physically comfortable place
to work
.854
4246
.841
7089
Q13
Q14
Q15
Q16
Q18
Q19
Q21
Opportunity for
Promotion
(Alpha = .8843 ;
Eigenvalue =
2.973)
Corrected
item-total
correlation
Q20
Working
condition
(Alpha = .8491 ;
Eigenvalue =
2.759)
.846
% of
total
variance
71.441
Q9
Q17
Pay & benefits
(Alpha = .8420;
Eigenvalue =
2.724)
Factor
loading
Q22
Q23
.806
.827
71.843
70.546
68.098
.6912
.6596
.6805
.855
.7195
.823
.6956
.782
.6205
.791
68.967
.6339
.871
.7466
Q24
I have adequate protecting equipment to do my

job.
.871
.7504
Q25
.784
.6279
Q26
Company frequently evaluate workers skills

The procedures used to determine the salary
increased based on workers skills.
company
.839
Q27
Q28
Q29
74.326
.7153
.837
.7130
.889
.7905
.882
.7782
Page 41 of 72
Construct /
Items
Reward &
Recognition
(Alpha = .8707 ;
Eigenvalue =
2.904)
Item
Q30
Job Satisfaction
(Alpha = .8918 ;
Eigenvalue =
3.502)
Commitment
(Alpha = .9200 ;
Eigenvalue =
5.842)
Factor
loading
% of
total
variance
72.588
Corrected
item-total
correlation
Q34
Company rewards workers who did the good

job.
Company rewords workers who did
improvements with benefit
The rewards I receive are adequate to my
contribution
When I do a good job, I receive the recognition
for it that I should.
I like people I work with
Q35
.898
7919
Q36
I receive support from my co-workers
.861
.7373
Q37
.759
.6048
Q38
The employees in my department work well as a

team.
Company is a good place for you to work
0.8358
Q39
I like to work for company
0.8724
.7848
Q40
I want to built company prestige
0.8500
.7578
Q41
I try to fulfill company work well
0.8052
.6974
Q42
I am satisfied with my current job

I am willing to put in a great deal of effort
beyond that normally expected in order to help
this organization be successful.
I would accept almost any type of job
assignment in order to keep working for this
organization
I feel very much loyalty to this organization
I am proud to tell others I am part of this
organization
I could just as well be working for a difference
organization as long as the type of work is
similar
It would take very little change in my present
circumstances to cause me to leave this
organization
I am extremely glad that I chose this
organization to work for over others I was
considering at the time I joined
For me this is the best of all possible
organizations for which to work
I feel more committed to a career with the
company this year than I did a year ago.
0.8190
Q31
Q32
Q33
Co-workers
(Alpha = .8625 ;
Eigenvalue =
2.850)
Description
Q43
Q44
Q45
Q46
Q47
Q48
Q49
Q50
Q51
Q52
I really care about the fate of this organization
.851
.7242
.876
.7555
.883
.7805
.796
.6548
.852
71.240
70.030
.7207
.7354
.7134
58.421
0.7427
.6757
0.8078
.7472
0.8107
.7540
0.7395
.6751
0.6819
.6124
0.7600
.6965
0.8209
.7625
0.7795
.7175
0.7583
.6949
0.7313
.6633
4.2.2 EFA for all scale of factors together

After establishing the unidimensionality and reliability of each scale, all 37 items were jointly
subjected to a common factor analysis. This approach allows all items to correlate with every
factor without being constrained to correlate only with its underlying factor (Kline, 1998). In
this procedure, Item loaded highly on more than two factors were eliminated, loading of items
smaller threshold value of 0.40 are eliminated. The result of this procedure was shown in table
Page 42 of 72
4.10. In which 9 factors consist 37 items were retained which together explain 69.012% of the
total variance. Factor loading of each of the 37 items vary from 0.657 to 0.871 which are higher
than 0.40 (table 4.9). In this testing, rotation method: Equamax with Kaiser Normalization was
applied providing better reliability. There are two pairs of sets of items loaded highly on one
factor, so I re-named they were Leadership support (Opportunity for growth & Supervision) and
Workplace (Working condition & Opportunity for promotion). The result of Bartletts Test of
Sphericity and KMO measure indicated that the degree of inter-correlation among the items
were suitable for EFA procedure as table 4.8 (Chi-square = 8193, df = 666, Sig = .000)
Table 4.8 KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling
Adequacy.
Bartlett's Test of
Sphericity
Approx. Chi-Square
df
Sig.
.901
8193.062
666
.000
Table 4.9 Total Variance Explained

Component
Initial Eigenvalues
% of
Cumulative
Total
Variance
%
1
8.522
23.033
23.033
2
6.278
16.968
40.000
3
3.934
10.633
50.633
4
2.284
6.174
56.807
5
1.982
5.356
62.164
6
1.480
4.001
66.165
7
1.053
2.847
69.012
Extraction Method: Principal Component Analysis.
Extraction Sums of Squared

Loadings
Total
8.522
6.278
3.934
2.284
1.982
1.480
1.053
% of
Variance
23.033
16.968
10.633
6.174
5.356
4.001
2.847
Cumulative
%
23.033
40.000
50.633
56.807
62.164
66.165
69.012
Rotation Sums of Squared

Loadings
Total
5.035
4.844
3.490
3.151
3.141
3.022
2.849
% of
Variance
13.609
13.093
9.434
8.518
8.490
8.168
7.701
Cumulative
%
13.609
26.702
36.135
44.653
53.143
61.311
69.012
After two steps for individual and scale and all scales together, nine constructions consist of 37
items were retained. In conclusion, unidimensionality, reliability, convergent validity, and
discriminant validity of the nine scales of factors have been assessed by the data set. The 37
items for the nine scales are accepted for further analysis.
Page 43 of 72
Table 4.10 Result of joint factor analysis for 7 scales

Component
1
.821
I am optimistic about my future success with the company
.834
The company is a leader in the industry in important ways
.823
The company is a strong competitor in key growth areas.
.766
I am confident that I will be able to work for this company as long

as I do a good job.
.749

I feel that working for the company will lead to the kind of future I
want.
.827
.764
I am confident that the company growth will bring us the security of

job.
.745
.608

.688
.748
My manager encourages and supports my development.
.767
.800
Employee performance evaluations are fair and appropriate.
.748

My manager gives me praise and recognition when I do a good job
.756
.795
.779
The benefits we receive are as good as most other organization

offer.
.657
The salary I receive compare well to my co-worker basing on skill,

efficiency and responsibility.
.734
I feel I am being paid a fair amount for the work I do

My salary is competitive with similar jobs I might find elsewhere
.763
.714
My workplace is a physically comfortable place to work
.688

I have adequate protecting equipment to do my job.
.679
.703
.652
Company is frequency evaluate worker's skill
.809
The procedures used to determine salary increases are base on

worker's skill.
.782
I am satisfied with my skill evaluated by the company
.837

Company rewards workers who did the good job.
Company rewords workers who did improvements with benefic
.840
.777
.798
The rewards I receive are adequate to my contribution

When I do good job, I receive the recognition for it that I should.
I like the people I work with
I receive supporting from my co-workers
The employees in my department work well as a team.
.821
.813
.787
.871
.852
.754
Extraction Method: Principal Component Analysis. Rotation Method: Equamax with Kaiser Normalization.
a Rotation converged in 7 iterations.
Page 44 of 72
Table 4.11 Revised undimentionality and reliability for 2 new factors

Construct /
Items
Leadership
support
(Alpha = .9233;
Eigenvalue =
5.233)
Item
Factor
loading
% of
total
variance
65.290
Corrected
item-total
correlation
.7000
Q12
0.7729
Q13
0.8368
.7744
Q14
0.8248
.7609
Q15
0.8143
.7517
0.7499
.6771
Q17

development.
appropriate.
0.7871
.7205
Q18
0.8360
.7764
Q19
My manager gives me praise and recognition

when I do a good job
My workplace is a physically comfortable place
to work
0.8376
.7775
Q16
Workplace
(Alpha = .9154;
Eigenvalue =
5.040)
Description
Q22
Q23
0.7684
62.990
.6919
0.7947
.7221
0.8010
.7312
Q25
I have adequate protecting equipment to do my

job.
0.7292
.6494
Q26
Company is frequency evaluate worker's skill
0.7953
.7243
Q27
The procedures used to determine salary

increases are base on worker's skill.
company
0.7677
.6925
0.8556
.7996
0.8310
.7682
Q24
Q28
Q29
4.3 Testing model and hypotheses

4.3.1 Revising the research model
After the exploratory factor analysis, the measurement scales were recoded and included:
Construct
Measurement scale
Company vision (VISI)
Q1, Q2, Q3, Q4
Job security (SECU)
Q5, Q6, Q7, Q8, Q9
Leadership support (LEAD)
Q10, Q11, Q12, Q13, Q14, Q15, Q16, Q17
Pay & Benefits (PAY)
Q18, Q19, Q20, Q21
Workplace (WORK)
Q22, Q23, Q24, Q25, Q26, Q27, Q28, Q29
Reward & Recognition (REWARD)
Q30, Q31, Q32, Q33
Co-worker relation (COWO)
Q34, Q35, Q36, Q37
In order to explore factors influenced significantly job satisfaction and organizational

commitment and define the influenced level of these factors, two sets of hypotheses were
developed in association with two respective models.
Page 45 of 72
Model 1:
H1: There is a positive impact of company vision on job satisfaction
H2: There is a positive impact of job security on job satisfaction
H3: There is a positive impact of leader support on job satisfaction
H4: There is a positive impact of pay & benefits on job satisfaction
H5: There is a positive impact of workplace on job satisfaction
H6: There is a positive impact of reward & recognition on job satisfaction
H7: There is a positive impact of co-workers on job satisfaction
Based on the revised model, the following function was established to present the relationship
between independent variables and job satisfaction.
JOBSAT = b0 + b1*visi + b2*secu + b3*lead + b4*pay + b5*work + b6*rewa + b7*cowo
Model 2:
H1: There is a positive impact of company vision on organizational commitment.
H2: There is a positive impact of job security on organizational commitment.
H3: There is a positive impact of leadership support on organizational commitment.
H4: There is a positive impact of pay & benefits on organizational commitment.
H5: There is a positive impact of workplace on organizational commitment.
H6: There is a positive impact of reward & recognition on organizational commitment.
H7: There is a positive impact of co-workers on organizational commitment.
Based on the revised model, the following function was established to present relationship
between independent variables and organizational commitment.
COMMIT = b0 + b1*visi + b2*secu + b3*lead + b4 *pay + b5*work + b6*rewa + b7*cowo
The hypotheses of dependent variables were developed in isolation from the impacts of other
factors than the selected independent variables. These factors were called covariates. Covariates
could be demographic characteristics of the workers such as age, marital status, gender, year of
experience, education level and salary. Regardless of these demographic characteristics could
lead to a biased interpretation of relationships between dependent and independent variables.
Page 46 of 72
Characteristics that appear to have an impact on a dependent variable should be included in the
proposed model.
The multiple regression was employed with Enter method to test the models.
Regression result - Model 1:
Table 4.12 Model Summary (b)
Adjusted R
Std. Error of the
Square
Estimate
.600(a)
.360
.347
.80824067
a Predictors: (Constant), Workplace, Pay & benefits, Co-worker, Company's vision, Reward & recognition,
Leadership support, Job security
b Dependent Variable: Job satisfaction
Model
1
R Square
Table 4.13: ANOVA (b)

Sum of
Squares
df
Mean Square
F
Sig.
Regression
125.587
7
17.941
27.464
.000(a)
Residual
223.413
342
.653
Total
349.000
349
b Dependent Variable: Job satisfaction
Model
1
Table 4.14 Coefficients (a)

Unstandardized
Coefficients
Model
(Constant)
Standardized
Coefficients
B
9.283E-17
Std. Error
.043
.163
.321
.162
.050
.057
.061
Company's vision
Job security
Sig.
Beta
.000
1.000
.163
.321
.162
3.263
5.612
2.639
.001
.000
.009
Pay & benefits

Reward &
recognition
Co-worker
.085
.054
.085
1.572
.117
-.219
.049
-.219
-4.485
.000
Leadership support
Workplace
.292
-.003
.054
.052
.292
-.003
5.434
-.066
.000
.948
a Dependent Variable: Job satisfaction
As shown in table 4.12 and 4.13 the result indicated that R square = 0.360, F value was 27.464,
sig.= 0.000. These demonstrated that the liner multiple regressions between factors and job
satisfaction are appropriate with data and able to be used. The Sig. of factors was shown that
five factors among seven factors have statistical significant impact on job satisfaction. They are
company vision, job security, pay & benefits, leadership support and co-worker with
standardized coefficients range from 0.162 to 0.321. Through value of R square, the explanatory
Page 47 of 72
level of the model is 36%. Its mean 36% of job satisfaction can be explained by the seven
independent varieties.
Based on the results shown in table 4.13, an equation is established as follows:
JOBSAT = 0.000 + 0.163*visi + 0.321*secu + 0.292*lead + 0.162*pay 0.219*cowo
Hypothesis 1: There is a positive impact of company vision on job satisfaction
The standardized regression coefficient of company vision on Job Satisfaction is 0.163 (sig. =
0.001< 0.05). This means that company vision is directly proportional to job satisfaction with
95% level of confidence. Therefore, the hypothesis 1 is supported.
Hypothesis 2: There is a positive impact of job security on job satisfaction.
The standardized regression coefficient of Job Security on job satisfaction is 0.321 (sig. =
0.000< 0.05). This means that job security is directly proportional to job satisfaction with 95%
level of confidence. Therefore, the hypothesis 2 is strongly supported.
Hypothesis 3: There is a positive impact of leadership support on job satisfaction.
The standardized regression coefficient of leadership support on job satisfaction is 0.292 (sig. =
0.000< 0.05). This means that leadership support is directly proportional to job satisfaction with
95% level of confidence. Therefore, the hypothesis 3 is strongly supported.
Hypothesis 4: There is a positive of pay & benefits on job satisfaction.
The standardized regression coefficient of pay & benefits job satisfaction is 0.162 (sig. = 0.09<
0.05). This means that pay & benefits is directly proportional to job satisfaction with 95% level
of confidence. Therefore, the hypothesis 4 is supported.
Hypothesis 5: There is a positive impact of workplace on job satisfaction.
The standardized regression coefficient of workplace on job satisfaction is -0.03 (sig. = 0.948>
0.05). This means at the level of confidence of 95%, workplace does not contribute to the
explanation of the level of job satisfaction. Therefore, the hypothesis 5 is rejected.
Hypothesis 6: There is a positive impact of reward & recognition on job satisfaction
The standardized regression coefficient of reward & recognition on job satisfaction is 0.085 (sig.
= 0.117> 0.05). This means at the level of confidence of 95%, reward & recognition does not
contribute to the explanation of the level of job satisfaction. Therefore, the hypothesis 6 is
rejected.
Hypothesis 7: There is a positive impact of co-workers on job satisfaction.
Page 48 of 72
The standardized regression coefficient of co-workers on job satisfaction is -0.219 (sig. =

0.000< 0.05). This means that co-worker is directly proportional to job satisfaction with 95%
level of confidence. Therefore, the hypothesis 7 is strongly supported.
Table 4.15: Levels of importance factors on Job Satisfaction
Variable
Standardized
Level of
coefficient beta
importance
Job security
0.321
Leadership support
0.292
Company vision
0.163
Pay & benefits
0.162
-0.219
Co-worker relation
Regression result - Model 2:

Table 4.16 Model Summary (b)
Adjusted R
Std. Error of
R
R Square
Square
the Estimate
.528(a)
.279
.264
.85770530
b Dependent Variable: Organizational commitment
Model
1
Table 4.17 ANOVA (b)
Model
1
Regression
Residual
Sum of
Squares
97.405
251.595
df
7
Mean Square
13.915
342
.736
F
18.915
Sig.
.000(a)
Total
349.000
349
b Dependent Variable: Organizational commitment
Page 49 of 72
Table 4.18 Coefficients (a)

Unstandardized
Coefficients
Model
(Constant)
Company's vision
Job security
Pay & benefits
Reward & recognition
Co-worker
Leadership support
B
6.516E
-17
.175
Std. Error
Standardized
Coefficients
Sig.
Beta
.046
.000
1.000
.053
.175
3.302
.001
.171
.177
-.039
.061
.065
.057
.171
.177
-.039
2.810
2.721
-.679
.005
.007
.497
.158
.052
.158
3.055
.002
.057
.055
.117
.095
2.045
1.739
.042
.083
.117
Workplace
.095
a Dependent Variable: Organizational commitment
As shown in table 4.16 and 4.17 the result indicated that R square = 0.279, F value was 18.915,
sig.= 0.000. These demonstrated that the liner multiple regressions between factors and
organizational commitment are appropriate with data and able to be used. The Sig. of factors
was shown that five factors among seven factors have statistical significant impact on job
satisfaction. They are company vision, job security, pay & benefits, leadership support and coworker with standardized coefficients range from 0.117 to 0.177. Through value of R square, the
explanatory level of the model is 27.9%. It means 27.9% of job satisfaction can be explained by
the seven independent variables.
Based on the results shown in table 4.16, an equation is established as follows:
COMMIT = 0.000 + 0.175*visi + 0.171*secu + 0.117*lead + 0.177*pay + 0.158*cowo
Hypothesis 1: There is a positive impact of company vision on organizational commitment.
The standardized regression coefficient of company vision on organizational commitment is
0.175 (sig. = 0.001< 0.05). This means that company vision is directly proportional to
organizational commitment with 95%level of confidence. Therefore, the hypothesis 1 is
supported.
Hypothesis 2: There is a positive impact of job security on organizational commitment.
The standardized regression coefficient of Job Security on organizational commitment is 0.171
(sig. = 0.005< 0.05). This means that job security is directly proportional to organizational
commitment with 95% level of confidence. Therefore, the hypothesis 2 is supported.
Hypothesis 3: There is a positive impact of leadership support on organizational commitment.
Page 50 of 72
The standardized regression coefficient of leadership support on organizational commitment is

0.117 (sig. = 0.042< 0.05). This means that leadership support is directly proportional to
organizational commitment with 95% level of confidence. Therefore, the hypothesis 3 is
supported.
Hypothesis 4: There is a positive impact of pay & benefits on organizational commitment.
The standardized regression coefficient of pay & benefits on organizational commitment is
0.117 (sig. = 0.007< 0.05). This means pay & benefits is directly proportional to organizational
Hypothesis 5: There is a positive impact of workplace on organizational commitment.
The standardized regression coefficient of workplace on organizational commitment is 0.095
(sig. = 0.083> 0.05). This means at the level of confidence of 95%, workplace does not
contribute to the explanation of the level of organizational commitment. Therefore, the
hypothesis 5 is rejected
Hypothesis 6: There is a positive impact of reward & recognition on organizational commitment
The standardized regression coefficient of reward & recognition on job satisfaction is -0.039
(sig. = 0.497> 0.05). This means at the level of confidence of 95%, reward & recognition does
not contribute to the explanation of the level of organizational commitment. Therefore, the
hypothesis 6 is rejected.
Hypothesis 7: There is a positive impact of co-workers on organizational commitment
The standardized regression coefficient of co-worker on organizational commitment is 0.158
(sig. = 0.002< 0.05). This means that co-worker is directly proportional to organizational
Table 4.19 Levels of importance factors on Organizational commitment
Variable
Standardized
Level of
coefficient beta
importance
Pay & benefits
0.177
Company vision
0.171
Job security
0.171
Co-worker relation
0.158
Leadership support
0.117
4.4. Regression relation between job satisfaction and organizational commitment

Page 51 of 72
The regression was implemented with entering method to consider relation between job
satisfaction and organizational commitment. The result was shown in tables below:
Table 4.20 R square value
Adjusted R
R
R Square
Square
.262(a)
.069
.066
a Predictors: (Constant), Job satisfaction
b Dependent Variety: Organizational commitment
Std. Error of
the Estimate
.96636596
Model
1
Table 4.21 Regression result between job satisfaction and organizational commitment
Unstandardized
Coefficients
Model
B
Std. Error
2.015E-17
.052
Job satisfaction
.262
.052
a Dependent Variety: Organizational commitment
1
Standardized
Coefficients
Sig.
Beta
(Constant)
.262
.000
5.071
1.000
.000
Table 4.22 F and Sig. value
Model
1
Regression
Residual
Sum of
Squares
24.016
df
1
324.984
348
349.000
349
a Predictors: (Constant), Job satisfaction
b Dependent Variety: Organizational commitment
Mean Square
24.016
F
25.716
Sig.
.000(a)
.934
Total
The regression results display R square coefficient is 0.069, F value was 25.716, sig.= 0.000.
These demonstrated that the liner multiple regressions between job satisfaction and
organizational commitment are appropriate with data and able to be used. Through value of R
square, the explanatory level of the model is 6.9%. It means that job satisfaction can be
explained 6.9% organizational commitment.
4.5 Finding
Chapter four presents the results of the empirical investigation. In overall, the regression results
supports previous researches and theories discussed in Chapter 2 on the factors affects job
satisfaction and organizational commitment, and relationships between Job Satisfaction and
Organizational Commitment.
The results of this study suggested that company vision, Job Security, leadership support, pay
& benefits, and co-worker related to Job Satisfaction and organizational commitment. However,
the research found insufficient evidence to suggest the relationship between reward and
recognition and workplace with job satisfaction and organizational commitment.
Page 52 of 72
This study also confirmed a positive relationship exiting between job satisfaction and
organizational commitment. Findings revealed that this is weak relationship.
Company vision: As regression result, company vision was positive impacted to both Job
Satisfaction and Organizational Commitment. Because Tran Duc Group is one of the best wood
furniture companies in southern of Vietnam, they are grew up quickly from year to year. Found
in 2000 with 200 workers then become key competitor in wood industry Vietnam market after
six years. A job is considered interesting when it matches with personal expectation and vision
of the future of company. Workers may obtain high job satisfaction and organizational
commitment if their income is matching with his/her, personality and desirability.
Job security: Job Security was positive impacted to both job satisfaction and organizational
commitment in the models of this study. An unstable job can not require a high organizational
commitment from workers. Worker feels their job unsecured when they were lay-off frequently
due to shortage production order or material to the slowdown of company growth. The worry of
jobless leads to searching for another job.
Pay & benefits: Pay & benefits was also positive impacted to both job satisfaction and
organizational commitment. It was suggested as the most predictor of Job Satisfaction and
Organizational Commitment. This result strongly supports the literature review mentioned in
previous chapter. To workers, total income is the most concern of job. They work to obtain
basic needs for physical survival, can take care of their families. Incentive and fair pay may
give workers the encouragement to stay in the organization and to enhance their contribution to
the organization. Also, benefits are also an effective tool used to motivate the workers for
reaching company goals and increasing loyalty to the organization. An effort of balancing
company interest and worker requirement should be made by the management to improve
worker standard of living, as well as job satisfaction and organizational commitment.
Workplace: Workplace has not statistical significant on job satisfaction and organizational
commitment. Because of Vietnam furniture industry characteristics, workers are rather
independence on work, they individual liable for their work base on their experience without
official training. The company was using wood processing machines made from Vietnam,
Taiwan or China which low standard of safety, so worker usually facing to safety problems on
their fingers, hand, arm. Working in hot and dirty and un-safety environment is reasons
explained why workplace does not significant impact on job satisfaction and organizational
commitment. In Tran Duc group, investments on dirt control system, ventilation system and
safety program has made a better working environment to work. The workers, they satisfy with
Page 53 of 72
working condition in Tran Duc factories, however, they always intent find another company or
industry with better condition to work.
Leadership support: Leadership support was suggested as the most predictor of Job
Satisfaction and organizational commitment. A job is considered interesting when it matches
with personal ability and characteristics or there are much challenges and new things to learn.
Worker may obtain high motivation, high-quality performance if their job is matching with
his/her ability, personality and desirability. The more suitability of job, the higher satisfaction
and commitment can be obtained. Besides the suitability of job, training support and facilitating
to learning opportunities can also be utilized to improve worker satisfaction. In Tran Duc group,
almost workers come from countryside or poor provinces, almost of them are peasants with low
education and skill. When they joint Tran Duc group, they received skills through coaching by
other skillful workers or supervisors. Moreover, Tran Duc group does not apply any compensate
policy to workers who made a mistake lead to loss. These factors contributed to increase
personal job satisfaction and organizational commitment.
Co-worker relation: Co-worker Relation had positive impact on Job Satisfaction and
organizational commitment. However, this is a special case at Tran Duc and other wood
companies, workers have more co-worker relation then least job satisfaction. Almost workers
have close relationship with other colleagues such as spouse, brothers, sisters, father / mother
and child, friends or fellow-countryman. They normally formed a peer group or associate
fellow-countryman so that can be support or take care of one another . However, more good coworker relation has least job satisfaction because the worker tried to find the ways to seek more
salary by neglecting their work or slowing down output capacity. The result of these was
overtime with 30% or 50% or 100% wage plus. Sometimes they organized un-legal strikes with
wage claims or allowances requirement.
Failure to have good relationship with colleagues may result in separation and alienation from
the workplace. Thus, co-worker relation is one of leaving reason from workplace found by many
researches. Positive worker interaction can provide support and reinforcement necessity for
adjustment and attachment to the work environment. Maintaining a peaceful work environment
is necessary to the management. However, in order to prevent un-legal strikes, management
should establish new regulations about employee relation
Reward & recognition: This factor was not statistical significant on both job satisfaction and
organizational commitment because the company hasnt yet had policy about performance
rewards. In company should establish management system and criteria assessment of work, so
that they can measure the level of fulfillment of workers, reward or penalty fairly or accurately
Page 54 of 72
Table 4.14 and Table 4.18 indicated the importance level of factors to Job Satisfaction and
Organizational Commitment. In general, Company vision, Job security, Pay & benefits,
leadership support and co-worker are impact on both Job Satisfaction and Organizational
commitment. Remain two factors dont impact on both were workplace and Reward &
recognition. The model was revised for implication to Tran Duc group as follow:
Page 55 of 72
Figure 4.1 Revised model
Companys Vision
+0.171
Job Security
+0.163
+0.171
+0.321
Leadership support
+0.292
+ 0.117
Co-workers
-0.219
+0.158
+0.177
Organizational
Commitment
Pay & Benefits
+0.162
Job Satisfaction
Page 56 of 72
4.6 Managerial implications

The results obtained from our study shows that there are five factors positive impact and
relationship between job satisfaction and organizational commitment. For an organization to be
successful, its managers must ensure that their employees have a high level of job satisfaction in
order to mutually have a high level of organizational commitment. However, almost factors
were low standardized regression coefficient beta, this means that low level of job satisfaction
and commitment. To address this problem, managers should focus on increasing the employees
job satisfaction in factors such as: the Pay, benefit programs, reward & recognition, workplace
(work conditions, and promotions). These can influence the way a person would feel and
perceive about their jobs. Indeed, managers may also apply job rotation so each employee will
have an opportunity to perform different tasks using various skills and talents. By using this
method, it may be able to further increase the interests the employees would have in their job.
Furthermore, as shown in table 4.4, there are about 39.5% employees education is at the high
school level. Therefore, offering courses and trainings to these groups of employees would be
able to enhance their skills, benefiting both the organization and employees themselves.
Managers might also decide to make use of a rewarding system to recognize those employees
who perform their job well. Indeed, one would feel highly satisfied when he or she obtains a
reward for their hard work and outstanding performance. Rewards can be of different forms,
such as: a higher wage, improvement of the work environment
As addressed through respective items in the survey, many workers reflected that their salary is
low compared to other colleagues in the same job level. They can not afford their family living
with such income. The subsequence result is that they always intent to find other company or
industry with higher pay & benefits to improve their income. To retain skill worker, increase
level of payment are necessary and important solution. Board of Management should be revise
current salaries policy which base on reality economic situation. The salary increase must be
high enough to improve standard of ling of worker. Beside that, company should reduce
overtime rate to help worker balance their living and recover their health. By rising worker
income, the level of job satisfaction and commitment would be improve.
Moreover, managers should motivate employees to be more helpful, considerate, friendly and
good-natured to their co-workers and supervisors, because this would increase the employees
job satisfaction and may motivate the urge to help out other co-workers. Indeed, providing
Page 57 of 72
sufficient opportunity for promotion to employees would significantly increase job satisfaction
because promotions reflect valued signals about a persons self-worth.
Worker in survey didnt satisfy with working condition and opportunity for promotion.
Company should be improves working environment and personal protection equipment more
comfortable and safety to protect worker health and workload. Productivity could increase if
worker satisfy with working condition.
Page 58 of 72
CHAPTER V
CONCLUSION, DISCUSSION AND RECOMMENDATIONS
Chapter V carries a summary of the four previous chapters, solutions or recommendations for
improving the situation in Tran Duc group. The limitations of study and a suggestion for further
research are also given in this chapter.
5.1 Conclusion
Understanding the workers concerns about and dedication to their job would enable the
employers to set up a right working policy and a fair human resource practices toward
productivity encouragement, job satisfaction and organizational commitment. Therefore, this
research was aimed at exploring the issue of HR practices and empirically examining the key
factors that impact significantly on job satisfaction and organizational commitment which, in
turn, are close predictors of turnover. Individuals job satisfaction and commitment affect his
retention attitudes (Mueller & Price 1990; Porter & Steers 1973). To achieve the objectives, the
research process was adopted as follows.
The methodology of the case study was outlined for designing the questionnaire and conducting
the survey. Data collected from 350 workers was analysed in quantitative approach. Then the
measurement scales were refined and tested unidimentionality, reliability and validity by
Cronbachs alpha and exploratory factor analysis. Multiple regression analysis was conducted to
find out the correlations and to test the research model and the hypotheses of the model. The
regression results suggested that Company vision, Job Security, Leadership support, Pay &
benefits and Co-worker relation respectively have positive impacts on Job satisfaction and
Organizational Commitment.
The improvement of job satisfaction and organizational commitment through the improvement
of the performance of human resources practices will bring benefits to all employees. Workers
may improve their quality of living, working environment and capture the opportunities for
future career development in responsiveness to their needs. An increase of worker satisfaction
and commitment will lead to an increase of productivity, reduce the hidden cost of turnover,
enhancement the advantages of competitiveness through workers motivation.
This study was undertaken because of the researchers interest in determining the factors effect
workers job satisfaction and commitment to that organization. It was also believed that
furniture managers need a more in-depth understanding of the relationships these independent
variety have with two dependents. Although this article is limited in its generalization, it
suggests that particular demographic characteristics can affect a persons level of satisfaction
Page 59 of 72
with a furniture operation. Further, particular dimensions of a furniture workers job satisfaction
can predict his or her commitment to that organization. It is suggested that more homogenous
demographic traits in participants should be identified that moderate this relationship and that a
larger sample of furniture operations be used.
The components of job satisfaction and organizational commitment should be re-evaluated.

Because this is the first time it was used to investigate level of job satisfaction and
organizational commitment of wood furniture worker developed and modified by researcher.
Further, perhaps a better questionnaire could be developed for the purposes of determining
commitment and job satisfaction. This study may also suffer from reverse causality and
common
method
variance
problems
that
sometimes
present
themselves
in
satisfaction/commitment studies. Both independent and dependent variables were obtained from
respondents and measured with surveys.
The findings also suggested that management might be able to increase the level of commitment
in the organization by increasing satisfaction with workplace and Reward & recognition. One
way of addressing this could be by increasing the interactions with worker in monthly meetings
and increasing guided discussions of topics related to these issues. Worker could be interviewed
to determine their perceptions of managements ability to address these issues. Changes in
organizational variables, such as pay scales, employee input in policy development, and work
environment could then be made in an effort to increase organizational commitment and
decrease subsequent turnover. It is plausible that when worker judge the organization to be
providing good supervision, positive feeling of well being will be created.
This study confirmed a positive relationship existing between job satisfaction and organizational
commitment. Findings revealed that workers who were more satisfied with their job had higher
levels of organizational commitment.
This study contributes a conceptual model graphically depicting the relationship between job
satisfaction and organizational commitment. It also identifies several variety that significantly
affect job satisfaction and organizational commitment in a small sample of participants
(company case study) and suggested others that might be found to be significant in other studies
(whole wood furniture industry). Future studies by the researchers or others interested in the
relationship of these two constructs can use this model to formulate new research or increase the
generalizability of this study in the wood furniture industry.
Page 60 of 72
5.2 Recommendations
The solution and recommendations which are aimed to raise level of job satisfaction and
organizational commitment, some recommendations can be infered from research findings as
follows:
5.2.1 Building a skillful team
Talented workers are precious asset, capital, long-term competitive advantages of wood
furniture companies. Specialty in wood furniture industry, there arent any technical schools or
universities teach furniture processing. Workers made core products by hand in almost different
steps in the manufacturing process, specialty in assembling step. Company must understand how
to concern, cultivate, keep and develop such human resources
5.2.2 Building a training system
Training system is the weak point of almost wood companies, training help to reduce loss and
quality claims due to human mistake or workmanship. Awareness of investing human resources
through training is still a strange thing to Vietnam wood companies. By implementing training,
organizations invest human resource for its future and concurrently increase job satisfaction and
5.2.3 Building a skill matrix system and skill-base salary increase
Company should develop a skill matrix system and clear critical factors for evaluation and
promotion. Salary increased through appraisal standard and procedure may bring positive
results. The company should build a skill rank structure including levels that can link all worker
skills of department in this structure. Then a compensation structure should be set up based on
skill level. The main component of compensation structure is skill-based salary increase.
5.2.4 Building a reward & recognition System
Reward & recognize the individual or team who is an outstanding example of working
effectively and productively together across boundaries to significantly in influence and achieve
desired organization results i.e. people development. In order to increase the power of reward to
workers performance as well as achieve financial objectives, the benchmark of efficiency
should be determined. Rewards should is given to individuals who are responsible for delivering
the outstanding performance to improve: Quality, safety, productivity, machine efficient,
delivery, material efficient using, improvement, Kaizen
5.2.5 Designing job levels.
Page 61 of 72
The company should design job levels and job description for each skill level. Skill structure is a
foundation to build a job ladder. Job levels can draw a future and a goal for worker to archive.
Job level is one of tool to motivate workers.
5.2.6 Building organization culture.
People view the organization as an extension of themselves, they feel good about what they
personally achieve through the organization and have exceptional Cooperation. Individual goals
are aligned with the goals of the organization and people will do what it takes to make things
happen. As a group, the organization is more like family providing personal fulfillment which
often transcends ego so people are consistently bringing out the best in each other. In this
culture, Leaders do not develop followers, but develop other leaders. Most everyone in this
culture is operating at the level of Organization.
5.2.7 Upgrade or invest high-tech processing machine
In order to prevent accidents, company should invest new machines with highly safety level to
help worker feel secure when they work with, increasing level of satisfaction. New machine also
help increasing productivity and offering workers more pay that should be done at the same
time. Lay-off may be considered to increase productivity and the salary of workers.
5.2.8 Monthly performance feedback
Every month, performance report should be provided to each worker. Weekly meeting between
supervisor and workers is necessary to enhance communication and relation.
5.3 Limitations
This study is aimed to quantitatively determine nine factors impacting job satisfaction and
organizational commitment and their relationship. However, some limitations of this study
should be noted. Other variety, beyond the above-mentioned, have not been considered.
The research has not been considered the impact of the workers behavioral response,
organizational culture, social factors, work-life balance, economic crisis and market conditions
influencing the impact of the predictors upon the outcome variety.
Page 62 of 72
REFERENCES LIST
1. Charles Glisson & Mark Durick, 1998. Predictor of Job Satisfaction and Organizational
Commitment in Human Service Organizations.
2. Clarke, K.F.(2001), What business are doing to attract and retain employee-becoming an
employer of choice. In Employee Benefits Journal, page 34-37.
3. Do Thi Thanh Thuy 2008. How to prevent turnover intention and strike. Thesis,
Maastricht School of Management
4. Leigh Branham with the cooperation of SaratogaInstitute, The Seven Hidden Reasons
Employees Leave
5. Kim, Sang-Wook, James L. Price, Charles W. Mueller and Thomas W. Watson. 1996.
6. Joseph G.Rosse Starcy L. Saturay, 2004. Individual Differences in Adaptation to Work
Dissatisfaction. University of Colorado at Boulder.
7. John H. McConnell, 2003 How to Design, Implement, and Interpret an Employee Survey.
8. Mowday, Richard T., Lyman W. Porter and Richard M. Steers. 1979. The Measurement of
Organizational Commitment. Journal of Vocational Behavior 14:224-247.
9. Porter, Lyman W., Richard M. Steers, Richard T.Mowday, and Paul V. Buolian 1974
10. Organizational commitment, job satisfaction, and turnover among psychiatric
technicians Journal of Applied Psychology, 59: 603-609.
11. Raymond A.Noe, John R. Hollenbeck, Barry Gerhart and Patrick M. Wright -Human
Resource Management ,2003 p. 427
12. Stephen P. Robbins Sixth Edition, Prentice Hall, Essentials of Organizational Behavior,
page 44.
13. Herzberg, Frederick, Bernard Mausner, and Barbara B. Snyderman, The Motivation to
Work, John Wiley & Sons (1959).
14. Herzberg, Frederick, "One More Time: How Do You Motivate Employees?" Harvard
Business Review, 46:1 (JanuaryFebruary 1968), pp. 53-62.
15. Luthans, F. 1992. Organizational Behavior. 2nd ed. McGraw-Hill Inc., New York.
16. Bozeman, D.B., & Perrewe, P.L. (2001). The effect of item content overlap on
Organisational Commitment Questionnaire--Turnover Cognitions Relationships. Journal of
Applied Psychology, 86(1), 16-25.
17. Cohen, A. (1991). Career stage as a moderator of the relationships between organizational
commitment and its outcomes: A meta-analysis. Journal of Occupational Psychology, 64, 253268.
18. Dunham, R.B., Grube, J.A., & Castaneda, M.B.(1994). Organizational commitment: the
utility of an integrative definition. Journal of Applied Psychology, 79, 370-380.
19. Finegan, J.E. (2000). The impact of person and organisational values on organisational
commitment. Journal of Occupational and Organizational Psychology, 73 (2), 149-154.
20. Williams, K. (1999). Rewards encourage loyalty and increase performance. Strategic
Finance, 81(6), 75-82.
Page 63 of 72
21. Meyer et al (1991). A three-component conceptualization of organizational commitment.

Human resource management review.
22. Mobley, William H. (1977). Intermediate Linkages in the Relationship Between Job
Satisfaction and Employee Turnover. Journal of Applied Psychology 62(2):237-240.
23. Mowday, Richard T., Lyman W. Porter and Richard M. Steers. (1979). The Measurement of
Organizational Commitment. Journal of Vocational Behavior 14:224-247.
24. Mueller, Charles W. and James L. Price. (1990). Economic, Psychological, and Sociological
Determinants of Voluntary Turnover. Journal of Behavioral Economics 19:321-335.
25. Porter, Lyman W., Richard M. Steers, Richard T.Mowday, and Paul V. Buolian (1974).
Organizational commitment, job satisfaction, and turnover among psychiatric technicians.
Journal of Applied Psychology, 59: 603-609.
26. Porter, L.W. and Steers, R.M. (1973). Organizational, work and personal factors in
employee turnover and absenteeism, Psychology Bulletin, Vol. 80, pp. 151-76.
27. Price, James L. (1977). The Study of Turnover. Ames, IA: The Iowa State University Press.
28. Price, James L. and Charles W. Mueller. (1986). Handbook of Organizational Measurement.
Marshfield, MA: Pitman Publishing Inc.
29. Raymond A.Noe, John R. Hollenbeck, Barry Gerhart and Patrick M. Wright (2003), Human
Resource Management, fourth edition, P. 427.
30. Rosse, J. (1983). Patterns of withdrawal behavior. Presented at the annual meeting of the
American Psychological Association, Anaheim, California, August.
31. Reichers A.E (1985), A review and Reconceptualisation of Organizational Commitment,
The acedemy of management review, 10, 465-476
32. Spector, P. E. (1985). Measurement of human service staff satisfaction: Development of the
Job Satisfaction Survey. American Journal of Community Psychology, 13, 693-713.
33.Spector, P. E. (1997). Job satisfaction: Application, assessment, causes, and consequences.
Thousand Oaks, CA.: Sage.
34. Walker (2001). Perspectives Human Resource Planning, March, page 6-10.
35. Hackman, J. R., & Oldham, G. R. (1976). Motivation through the design of work: Test of a
theory Organizational Behavior and Human Performance, 16, 250-279.
36. Locke, 1976 cited in Brief, A. P., & Weiss, H. M. (2001). Organizational behavior: affect in
the workplace. Annual Review of Psychology, 53, 279-307, p. 282
37. J. R. Hackman, G. R. Oldham (1976). "Motivation through design of work". Organizational
behaviour and human performance 16: 250279
38. Allen, N. J., & Meyer, J. P. (1990). The measurement and antecedents of affective,
continuance and normative commitment to the organization. Journal of Occupational

Psychology, 63(1), 1-18.
39. Angle, H., & Perry, J. (1981). An empirical assessment of organizational commitment and
organizational effectiveness. Administrative Science Quarterly, 26(1), 1-14.
40. Kovach, K. A. (1977). Organization size, job satisfaction, absenteeism and turnover.
Washington, D.C.:University Press of America.

Page 64 of 72
41. Locke, E. A. (1969). What is job satisfaction? Organizational Behavior and Human
Performance, 4,309-336.
42. Porter, L. W., & Smith, F. J. (1970). The etiology of organizational commitment.
Unpublished paper. University of California, Irvine.
43. Porter, L. W., Steers, R. M., Mowday, R. T., & Boulian, P. V. (1974). Organizational
commitment, job satisfaction, and turnover among psychiatric technicians. Journal of Applied
Psychology, 59,603-609.
44. A. H. Maslow (1943). A Theory of Human Motivation, Originally Published in
Psychological Review, 50, 370-396.
45. Meyer J P, Allen N J, Smith C A (1993). Commitment to organizations and occupations
46. Maidani, Ebrahim A., "Comparative Study of Herzberg's TwoFactor Theory of Job
Satisfaction among Public and Private Sectors," Public Personnel Management, 20:4 (Winter
1991), p, 441-448.
47. Porter, L, Steer, R., Mowday, R., Boulian, P. (1974). Organizational commitment, job
satisfaction, and turnover among psychiatric technicians. Journal of Applied Psychology,59,
603-609.
48.Angle, H. L., & Perry, J. L. (1981). An empirical assessment of organization commitment
and organizational effectiveness. Administrative Science Quarterly, 26, 1-13.
49.Angle, H.L. & Perry, J.L. (1983) Organizational commitment: Individual and organizational
influences. Work and Occupations, 10, 123-146.
50. Kalleberg, A. L. 1977. Work values and job rewards: A theory of job satisfaction. American
Sociological Review 42:12443.
51. Aven, F. F., B. Parker and G. M. McEvoy. 1993. "Gender and Attitudinal Commitment to
Organizations: A Meta-analysis." Journal of Business Research 26 (1) : 63-73.
52. Griffeth, R.W., Hom, P.W., Gaertner, S. (2000, May-June). A meta-analysis of antecedents
and correlates of employee turnover: update, moderator tests and research implications for the
next millennium. Journal of Management, 26 (3), 463-472.
53. Furnham, A. (2002). Work in 2020 Prognostications about the world of work 20 years into
the millennium. Journal of Managerial Psychology, 15 (3), 242-50.
54. Oakland, S., & Oakland, J.S. (2001, September). Current people management activities in
world-class organisations. Total Quality Management, 12(6), 773-779.
55. Ulrich, D. (1998). Intellectual capital equals competence x commitment. Sloan Management
Review, 39, 15-26.

Page 65 of 72
56. Wagar, T.H. (2003, February). Looking to retain management staff? Here's how HR makes a
difference. Canadian HR Reporter.
57. Bozeman, D.B., & Perrewe, P.L. (2001). The effect of item content overlap on Organisational
Commitment Questionnaire--Turnover Cognitions Relationships. Journal of Applied Psychology,
86(1), 16-25.
58. Cappelli, P. (2000). A market driven approach to retaining talent. Harvard Business Review,
78(1), 103-111.
59. Cronbach, L.H. (1951). Coefficient alpha and the internal structure of tests. Psychometrika,
16, 297-334.
60. Dunham, R.B., Grube, J.A., & Castaneda, M.B.(1994). Organizational commitment: the
utility of an integrative definition. Journal of Applied Psychology, 79, 370-380.
61. Fishbein, M., & Ajzen, I. (1975). Belief Attitude, Intention, Amid Behaviour. Reading, MA:
Addison, Wesley.
62. Mathieu, J., & Zajac, D. (1990). A review and meta-analysis of the antecedents, correlates,
and consequences of organisational commitment. Psychological Bulletin, 108, 171-194.
63. http://en.wikipedia.org/wiki/Job_satisfaction
64. http://www.alphameasure.com/employee_satisfaction_job_security.html
Page 66 of 72
APPENDICES
APPENDIX 1A: QUESTIONAIRE (English version)
WORKER SURVEY
Dear Sir/ Madam,
I am conducting a study on the factors effecting job satisfaction and organizational commitment
of workers. I would highly appreciate your cooperation in completing this questionnaire. There
is neither right nor wrong answer. All of your answers are useful for this research and company.
I am optimistic about my future success with the company
The company is a leader in the industry in important ways
The company is a strong competitor in key growth areas.
5
6
7
I am confident that I will be able to work for this company as long as I do a

1
good job.
1
Strongly Agree
Agree
Disagree
Neither agree or
disagree
Strongly Disagree
Please indicate the degree of your agreement on the following statements

by rounding (O) on the scoring frame
(1): "Strongly disagree"
(2): "Disagree"
(3): "Neither agree or disagree"
(4): "Agree"
(5): "Strongly agree"
I feel that working for the company will lead to the kind of future I want.
I am confident that the company growth will bring us the security of job.
10 I am encouraged to learn from my mistakes
11 My work is challenging and stimulating
12 I receive the training I need to do my job well
13 My manager encourages and supports my development.
14 Employee performance evaluations are fair and appropriate.
15 My manager treats all employees fairly.
16 My manager always treats me with respect.
17 My manager gives me praise and recognition when I do a good job
18 The benefits we receive are as good as most other organization offer.
8
9
Page 67 of 72
The salary I receive compare well to my co-worker basing on skill,

efficiency and responsibility.
20 I feel I am being paid a fair amount for the work I do
19
21 My salary is competitive with similar jobs I might find elsewhere
22 My workplace is a physically comfortable place to work
23 I have the resources I need to do my job well.
24 I have adequate protecting equipment to do my job.
25 My workplace is safe
26 Company is frequency evaluate workers skill

The procedures used to determine salary increases are base on workers
27
skill.
28 I am satisfied with my skill evaluated by the company
29 My salary is adequate to my skill
30 Company rewards workers who did the good job.
31 Company rewords workers who did improvements with benefic
32 The rewards I receive are adequate to my contribution
33 When I do good job, I receive the recognition for it that I should.
34 I like the people I work with
35 My co-workers are friendly.
36 I receive supporting from my co-workers
37 The employees in my department work well as a team.
38 Company is good place for you to work
39 I like to work with company
40 I want to built company prestige
41 I trying to fulfill company work well
41 I satisfy with my current job
I am willing to put in a great deal of effort beyond that normally expected

in order to help this organization be successful.
I would accept almost any type of job assignment in order to keep working
44
for this organization
45 I feel very much loyalty to this organization
43
46 I am proud to tell others I am part of this organization

I could just as well be working for a difference organization as long as the
47
type of work is similar
It would take very little change in my present circumstances to cause me to
48
leave this organization
49 I am extremely glad that I chose this organization to work for over others I was
Page 68 of 72
considering at the time I jointed
50 For me this is the best of all possible organizations for which to work
I feel more committed to a career with the company this year than I did a
51
year ago.
52 I really care about the fate of this organization
Personnel information: For research purposes only, please answer the following questions by
marking appropriate box.
1. Gender
Male (1)
Female (2)
2. Marital status
Married (1)
Single (2)
divorced (3)
20-25 (2)
26-30 (3)
3. Age
< 20 (1)
30 (4)
>
4. Year of experience
< 6 months (1)
> 5 years (5)
7-12 months (2)
1-3 years (3)
3-5 year (4)
5. Educational level
< primary school (1) secondary school (2) high school (3)
college (4)
6. Salary
< 1 million VND (1) 1-1,5 million VND (2) > 1,5 2 million VND (3)
million VND (4)
>2
Thank you very much for your cooperation!
Page 69 of 72
APPENDIX 1B: QUESTIONNAIRE (Vietnamese version)

PHIU THM D KIN CNG NHN
ng
Rt ng
1
1
1
1
2
2
2
2
3
3
3
3
4
4
4
4
5
5
5
5
1
1
2
2
3
3
4
4
5
5
10 Ti c khuyn khch hc tin b t chnh nhng sai st ca mnh
11 Cng vic m ti ang lm c nhiu th thch v hng th

Ti nhn c s hng dNn khi ti cn ti hon thnh tt cng vic
12
ca mnh
13 Ngi qun l ca ti lun khch l v h tr ti pht trin ngh nghip
14 Nng lc ca cng nhn c cng ty nh gi cng bng v xng ng
15 Ngi qun l ca ti i x cng bng vi tt c cng nhn
16 Ngi qun l ca ti i x vi ti mt cch tn trng
Ngi qun l ca ti lun tn thng v ghi nhn s ng gp ca ti mi
17
khi ti hon thnh tt cng vic ca mnh
1
1
1
1
2
2
2
2
3
3
3
3
4
4
4
4
5
5
5
5
1
2
3
4
5
6
7
8
9
(1): "Rt khng ng "

(2): "Khng ng "
(3): "Na ng , na khng ng "
(4): "ng "
(5): "Rt ng "
Ti lc quan v tng lai ca cng ty
Ti lc quan v tng lai ca ti s tt nh tng lai ca cng ty
Cng ty m ti ang lm l dNn u trong ngnh g
Cng ty ti ang pht trin mnh m trong ngnh g
Ti tin rng mnh s c lm vic di lu vi cng ty nu nh ti hon
thnh tt cng vic
Cng vic lm ca ti lun c cng ty m bo lu di
Ti cm thy rng tng lai ti c m bo khi lm vic cho cng ty
Ti tin rng nu cng ty pht trin tt th vic lm ca ti cng c m
bo
Ti thy rng cng ty lun quan tm n i sng cng nhn
Nhng phc li m ti nhn c t cng ty l tt hn hu ht cc cng ty

khc
Tin lng m ti nhn c tng t nh cc cng nhn khc trong cng
19
ty c cng tay ngh, hiu qu lm vic v trch nhim c giao
Ti thy hi lng vi tin lng m mnh nhn c tng xng vi vic
20
ti lm
21 Tin lng ng vi vic ti ang lm l ngang bng hoc hn cc cng ty
18
Khng ng
Na ng , na
khng
Xin vui lng cho bit mc ng ca cc bn v cc vn sau,

bng cch khoanh trn vo s:
Rt khng ng
Tha cc bn,
Ti ang nghin cu nhng yu t nh hng n s hi lng v cam kt lm vic lu di
ca cng nhn ti cc nh my g. Ti rt mong nhn c kin ca cc bn cho nhng vn
trong bn cu hi di y. Khng c cu tr li ng hay sai. Tt c kin ng gp
ca cc bn u c gi tr hu ch cho kt qu kho st v cng ty
Page 70 of 72
khc
iu kin v mi trng lm vic cng ty l m bo cho sc khe cng
nhn
23 Ti c trang b y dng c lm vic
24 Ti c trang b y bo h lao ng khi lm vic ti cng ty
1
1
2
2
3
3
4
4
5
5
25 Ni lm vic ca ti c m bo an ton
26 Cng ty thng xuyn t chc nh gi tay ngh cng nhn
27 Tay ngh cng nhn l c s nh gi tng lng nh k
28 Ti hi lng vi vic nh gi ca cng ty v tay ngh ca ti
29 Tin lng ca ti ph hp vi tay ngh ca ti
30 Cng ty lun thng cho nhng cng nhn lm tt cng vic c giao
Cng ty lun thng cho nhng cng nhn c sng kin ci tin mang li
31
li ch
32 Phn thng m ti nhn c xng ng vi nhng ng gp ca ti
33 Khi ti lm vic tt cng vic ca mnh, ti c cng ty khen ngi
34 Ti thch nhng ngi bn ng nghip ang lm chung vi ti
35 Cc bn ng nghip ca ti rt thn thin
36 Ti lun c cc bn ng nghip gip trong cng vic hng ngy
37 Tt c cng nhn trong nhm ca ti u lm vic nhit tnh nh nhau
38 Cng ty l ni tt ng lm vic lu di
39 Ti thch c lm vic ti cng ty ny
40 Ti mun cng nhau xy dng uy tn cho cng ty ny
41 Ti c gng hon thnh tt cng vic m cng ty giao ph cho ti
42 Ti hi lng vi cng vic hin ti ca ti
49 Ti thc s hi lng khi quyt nh chn v lm vic ti cng ty ny
50 i vi ti, y l ni tt nht lm vic

Ti cm thy mun gn b vi cng ty nhiu hn so vi mt nm trc
51
y
52 Ti thc s quan tm n s tn ti ca cng ty ny
22
43
44
45
46
47
48
Ti sn sng lm vic chm ch hn gp phn cho s thnh cng ca

cng ty
Ti chp nhn bt c cng vic no c giao min l c lm vic cho
cng ty
Ti mun c lm vic lu di vi cng ty ny
Ti t ho mi khi ni chuyn vi ngi khc ti l cng nhn ca cng ty
ny
Ti ch c th lm vic tt v lu di cho mt cng ty khc nu cng vic
tng t nh cng vic ti ang lm ti cng ty ny
Khng c l do g khin ti phi ngh vic cng ty ny
Page 71 of 72
Thng tin c nhn: Xin nh du X vo tng ng vi cu tr li ca cc bn.

1. Gii tnh
Nam (1)
N (2)
2. Tnh trng hn nhn
kt hn (1)
Cha kt hn (2)
Ly hn (3)
3. Tui
< 20 tui (1)
20-25 tui (2)
26-30 tui (3)
> 30 tui (4)

4. Thm nin lm vic
< 6 thng (1)
7-12 thng (2)
1-3 nm (3)
3-5 nm (4)
> 5 nm (5)
5. Trnh hc vn
< lp 5 (1)
lp 6-9 (2)
lp 10-12 (3)
trung cp ngh (4)
6. Mc thu nhp hin ti
< 1 triu ng (1)
> 2 triu ng (4)
1-1,5 triu ng (2)
> 1,5 2 triu ng (3)
Cm n kin ng gp ca cc bn!
Page 72 of 72

Thesis Submit&#39;s Truong Quoc Viet

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Thesis Submit&#39;s Truong Quoc Viet

Uploaded by

Copyright:

Available Formats

Maastricht MBA

FACTORS EFFECT JOB SATISFACTION AND

A CASE STUDY OF TRAN DUC GROUP

Maastricht School of Management

Review of literature ................................................................................... 15

2.9.5 Skill evaluation ............................................................................ 28

Research Methodology: ................................................................................. 29

4.4 Finding and discussion .......................................................................... 51

Volume (US mil)

1.3. Statement of the problem

Source: Tran Duc HR department

Figure 2.1: Job Satisfaction Model (Justin Field 2008)

2.2 Factors affecting to job satisfaction

2.5. Organizational commitment

through relatively unconscious associations with positive work experiences (classical

Reason #6: Stress from overwork and work-life imbalance.

2.8 Importance of job satisfaction and organizational commitment

Figure 2.4 Research model proposals

Opportunity for Growth

Pay & Benefits

Reward & Recognition

2.9 HR practice in Tran Duc group

Section 2 Organizational commitment scale: This variable is measured using the

3.5 Research hypotheses

1. Survey about job satisfaction factors

3. Survey about Personal background information

3.10 Source of measurement scales

Table 3.1 Measurement scales of Job dissatisfaction and organizational commitment

Pay & Benefits

ITEMS OF MEASUREMENT SCALES

I am optimistic about the future of the company.

I am optimistic about my future success with the

My job is a secure one.

I feel that working for the company will lead to the

I feel that the company cares about its people

I am encouraged to learn from my mistakes

My work is challenging and stimulating

I receive the training I need to do my job well

My manager treats all employees fairly.

My manager always treats me with respect.

My manager encourages and supports my

My manager gives me praise and recognition when I

I feel I am being paid a fair amount for the work I do

Paul E Spector 1994

My salary is competitive with similar jobs I might

I have the resources I need to do my job well.

Kim et al. 1996

I have adequate protecting equipment to do my job.

Kim et al. 1996

Kim et al. 1996

Company is frequency evaluate workers skill

The procedures used to determine salary increases

Kim et al. 1996

Company rewards workers who did the good job.

Company rewords workers who did improvements

The rewards I receive are adequate to my

When I do good job, I receive the recognition for it

My co-workers are friendly.

I receive supporting from my co-workers

The employees in my department work well as a

Company is good place for you to work

I like to work with company

I want to built company prestige

I trying to fulfill company work well

Thesis Submit's Truong Quoc Viet

Thesis Submit's Truong Quoc Viet