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CHAPTER 1: INTRODUCTION
1.1 RESEARCH BACKGROUND
The recently financial crisis is one of the most pressing challenges facing
countries and businesses in today's global business environment. It is required most
countries in the world to make suitable changes to improve and overcome this
difficult period.
Vietnam is in the case of developing country, globalization poses distinct
challenges to governments, the private sector and organized labor. These
challenges, which must be addressed through a strategic approach to human
resource management, include (1) Partnership in economic recovery especially in
Vietnam (2) Dealing with the large foreign companies (3) Concerns over possibility
of fraud in E-commerce (such as issues of confidence and trust) and (4)
Implementing prescriptions for recovery and growth taking in to consideration the
development agenda and unique circumstances of individual area.
At present, senior executives in Vietnamese companies have become more
strategic in their thinking about the human capital. Human capital is becoming a
main power for the success of any organizations. Unfortunately, the competiveness
and the quality of the human resources of Vietnamese companies are in low position
in comparing with other countries. The report of Labor and Social trends in Viet
Nam stated that:
Despite some advantages, the labor force of Viet Nam remains mostly
unskilled as nearly two-third did not have any technical education. The
country’s productivity of Viet Nam remains low in absolute terms and was
equal to only 61.4% of the average of Asia countries. Viet Nam has to
increase the labor productivity and enhance competitiveness of labor force

services of banks. (See more information about Vietnamese Banking Industry in
Appendix A) 3
Among many industries, banking industry is one of the most industry has the
fastest growth in the human resources in both quantity and quality. Banking
industry has the highest attraction with job- seekers during the last ten years. The
average growth in human resources of banking industry during the period 2000-
2010 was about 10% each year (Nguyen, 2012). Unfortunately, the demand of
banking employees is forecasted to be in the down –trend in the next few years.
According to the point of view of specialists in banking industry, many banks will
cut off the employees in the next time (at the-end of 2012 and next year 2013)
because of the difficulties of macroeconomic as well as the decrease in the profit of
almost banks. However, the banks will take much caution to increase the quality of
labor force for banking industry. There will be some adjustments in the human
resources policies, especially in training and recruiting human resources. It means
that there will be a called for qualified employees who can help to enhance the
performance of banking industry.
The employee takes a key factor to the bank’s performancce. In order to
enhance the productivity and profitability of the bank, the performance of employee
should be strongly considered. It is important for bank’s managers to understand
and to investigate whether their employees are satisfied with their job or not. Only if
they are satisfied, they will work with strong commitment, with high effort and
perform their best. By this way, employees will project a positive image of the
organization as well as improve their performance and the bank’s performance.
As forementionded reasons, it is necessary for bank’s managers to

1.3 RESEARCH OBJECTIVES
According to Zikmund (1997, p.89), a research objective is the researcher’s
version of a business problem. Objectives explain the purpose of the research in
measurable terms and define standards of what the research should accomplish. In
solving the research problem mentioned previously, this study has the following
objectives:
• Identify factors that affect job performance of employees in the Vietnamese
banking industry, specify to factors that belong to psychological capital and quality
of working life. 5
• Determine the degree of the impact of each factor to job performance of
employees in the Vietnamese banking industry.
Research Questions
Research questions involve the research translation of “problem” into the
need for inquiry. The research problems defined above leads to the following
research questions:
• What are factors that impact on job performance of the employees in the
Vietnamese banking industry?
• What are the effects of self – efficacy, hope, optimism, resiliency, survival
needs, belonging needs and knowledge needs on the job performance of employees
in the Vietnamese banking industry?
1.4 RESEARCH METHODOLOGY AND SCOPES
The object of this study is the employee of banks in Ho Chi Minh City. The
research is conducted in Ho Chi Minh City, one of the biggest economic centers of
Viet Nam. The result of the research in this city, in some level can represent for

Based on the research objectives and scopes, research methodology
concerning in chapter 1, and literature review and empirical model presented in
chapter 2, this chapter particularly presents the research design, research
methodology and reports the processes of doing the research.
Chapter 4: Data Analysis and Data Results
Chapter 4 presents the characteristics of research samples and presents the
result of the research after analyzing data. Based on the results, the author will make
deep analysis about each factor that impact on job performance. 7
Chapter 5: Conclusions, Implications and Limitations
Chapter 5 presents main conclusions and implications based on the results of
the previous chapters, as well as the limitations of this study.


Moreover, the author put more effort to explore the literature to four specific
factors: self – efficacy, optimism, hope, resilience.
“Positive psychology” revisits the ‘average person’ with an interest in
finding out what works, what is right, and what is improving (Sheldon & King,
2001, p.216). Following the lead of positive psychology, positive organizational
behavior has recently been strongly considered. Positive organizational behavior
has been defined as “the study and application of positively oriented human
resource strengths and psychological capacities that can be measured, developed, 9
and effectively managed for performance improvement” (Luthans, 2002b, p. 59;
also see Nelson & Cooper, 2007; Turner, Barling, & Zaharatos, 2002; Wright,
2003).
Drawing from positive psychology and positive organizational behavior and
in particular the notion of psychological capital, Luthans (2004) and collogues
suggest that “identifying and developing the positive psychological capacities of
individuals may lead to desirable performance outcomes”. We have a strong believe
that the positive psychological strengths might be especially relevant for
organizations competing in the dynamic and increasingly competitive banking
industry.
To date, the psychological capacities associated with positive organizational
behavior include hope, resilience, optimism, and self-efficacy, and when combined
together, represent for the higher order core factor for “Psychological Capital”.
(Luthans & Youssef, 2004; Luthans et al. 2007).
PysCap as a State-like Construct:
It is important to pay attention that PsyCap and its constructs as found in the

review of each facet should be deeply investigated.
Most previous studies on hope, resilience, optimism, and efficacy have
supported that they are in high considerable. Bandura (1997) has demonstrated
strategies to increase self-efficacy (also see Bandura, 2000), Snyder (2000) provides
evidence that hope is developable and published the state–hope scale (Snyder et al.,
1996). Carver and Scheier (2005) more recently discuss strategies to develop
optimism, and Shifren and Hooker (1995) have demonstrated its situational
measurement. Seligman (1998) features “learned optimism” in his widely
recognized book by this title and offers evidence to support its development. Masten
and Reed (2002) likewise discuss successful strategies for resilience-based
developmental interventions, and Wagnild and Young (1993) have developed a 11
state-like measure of it. Each of these contributions in the positive psychology
literature have supported that these four constructs can be developed.
2.1.1 Self-efficacy
There are several definitions about the term “Self–efficacy”: Self-efficacy
has been argued to best meet the inclusion criteria for PsyCap (Luthans, Youssef, &
Avolio, 2007). Self-efficacy represents a positive belief (not ability per se nor
outcome expectancy) and is defined for the workplace as:
The employee’s conviction or confidence about his or her abilities to
mobilize the motivation, cognitive resources or courses of action needed to
successfully execute a specific task within a given context.” In results from
a comprehensive meta-analysis, self- efficacy was found to have a strong
positive relationship with work-related performance. (Stajkovic & Luthans,
1998a; also see Bandura, 2000; Bandura & Locke, 2003).

pessimists to make the definition for optimism through optimists:
Optimists viewed bad events as external (not their fault), unstable
(temporary setback), and specific (a problem only in context) attributions.
In opposite side, pessimists access bad events in point of view of internal
(their own fault), stable (will last for a long time), and global (will
undermine everything they do). Optimists tend to remain positive about
future events while the pessimists tend to internalize the negative aspects of
their lives. (Seligman, 1998).
There also exits the definition of optimism as “the tendency to maintain a
positive outlook (Schneider 2001, 253). 13
In the aspect of positive organization behavior, it is important to make the
attention to “realistic optimism”, which does not take an extreme in internalizing
good events and externalizing negative ones (Seligman, 1998; Schneider, 2001).
Peterson (2006) has recently summarized that optimism has been linked to
“positive mood and good morale; to perseverance and effective problem solving; to
acedemic, atheletic, military, occupational, and political success; to popularity; to
good health; and even to long life and freedom from trauma.”
Both Seligman (1998) and Peterson (2006) have also emphasized that
optimism can be develop and have documented the positive impact it can have in a
variety of life domains. Besides, optimism also related to many desirable outcomes.
Many studies have proved that there is a strong linkage between optimism
and workplace performance. Schulman (1999) investigated the relationship between
optimism and sales personnel and their performance. The level of optimism of
Chinese factory workers and their rated performance and merit salary increase

Goals
Goals are the targets of mental action sequences, and they provide the
cognitive component that anchors hope theory (Snyder, 1994a, 1994c, 1998b;
Snyder, Cheavens & Sympson, 1997; Snyder, Sympson, Michael & Cheavens,
2000; Stotland, 1969). Goals are required to be sufficient value to occupy conscious
thought. However, goals can be in the point of view of short or long-term.
Moreover, goals must be attainable, but they also typically contain some degree of
uncertainty.
Pathways thinking
People must view themselves as being capable of generating workable routes
to reach their goals. This can be defined as “pathways thinking”, one’s perceived
capabilities at generating workable routes to desired goals. It means that in any
situation, pathways thinking involves thoughts of being able to generate at least one,
and often more, usable route to a desired goal. In addition, high –hope people 15
actually are very effective at producing alternative routes (Irving, Snyder &
Crowson, 1998; Snyder, Harris, et al., 1991). A hopeful individual’s propensity to
develop alternative, contingency, or back-up plans to accomplishing the same goal
constitutes what Snyder (1994, p.247) refer to as “fallibility insurance” where
people will remain hopefull in goal accomplishment as there will always be an
alternative route to pursue (Avey et al.,2008).
Agency Thinking
The motivational component in hope theory is agency – the perceived
capacity to use one’s pathways so as to reach desired goals. Agency thinking
reflects the self-referential thoughts about both starting to move along a pathway

It is meaningful to the banks if their employees are resilient employees. It
means that they can get over their problems quickly and contribute more to the
performance of the banks in any situations. The next hypothesis is proposed:
H4: Resilience is positively related to job performance

2.2 QUALITY OF WORKING LIFE
Today, the quality of working life is important for banks because it relates to
employee performance productivity. Many studies have indicated that the work
conditions of any organizations are required to meet the needs of employees. In case
the employees are supported, employees will add more attributions in improving
their job performance. In order to enhance the job performance, it is necessary to
investigate about what are factors of the quality of working life that have the impact
on job performance.
Up to date, there are different definitions about the concept “Quality of
working life”. 17
(Hackman & Oldhams, 1980) highlight the constructs of Quality of working
light in the relationship between work environment and personal needs. They argue
that the personal needs are satisfied when rewards from the organization such as:
compensation, promotion, recognition and development meet their expectations,
which lead to an excellent quality of life.
In different explanation, Davis (1993) has a general definition for Quality of
working life as “the quality of relationship between the need of employees and the
total working environment, with human dimensions considerations”.
According to Sirgy, M Joseph; Efraty, David; Siegel, Phillip; Dong-Jin, Lee

is not likely to get laid off); other family needs – which means that
the employees also have enough time from work to attend to family
needs)
• Satisfaction of social needs which content two main dimensions: The
employees have positive social interaction at work (Collegiality at
work). Second, the employees also have enough time from work to
relax and experience leisure.
• Satisfaction of esteem needs which involves the recognition and
appreciation of one’s work within the organization as well as the
outside of the organization such as the employees receive the
recognition an awards for doing a good job at work or the employees
receive the recognition an awards by local community/ professional
associations for well done in the organization or on behalf of their
organization.
• Satisfaction of actualization needs is the realization of one’s
potential within the organization as well as the realization of one’s
potential as a professional.
• Satisfaction of knowledge needs which involves the two dimensions:
The motivation for learning to enhance job skills and enhance
professional skills.
• Satisfaction of aesthetics needs which involves two dimensions: The
creativity at work and the personal creativity and general aesthetics.
Nguyen and Nguyen (2010) used the concept “Survival needs” to present
both the satisfaction of health and safety needs as well as satisfaction of economic 19


(1993) explain that performance is not the consequence of behaviors, but rather the
behaviors themselves. In other words, performance consists of the behaviors that
employees actually engage in which can be observed. So that, one further element
of performance is that the behaviors must be relevant to the goals of the
organization (Campbell et al., 1993).
Job performance refers to activities that are related to the employee’s formal
role requirement, that lead to the effort on performance to finish their job. In many
studies, the job performance includes two dimensions: Firstly, it is the effort made
by the employee within the organization in order to achieve a particular goal.
Secondly, the actual results that organization desire to obtain.
2.4 THE CONCEPTUAL MODEL AND HYPOTHESES OF THE
RESEARCH
As previously mentioned above, the author summarized the conceptual model and
the hypotheses for this research.

Figure 2.1 Conceptual Model
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There are seven hypotheses of this research:
H1: Self- efficacy is positively related to job performance
H2: Optimism is positively related to job performance
H3: Hope is positively related to job performance
H4: Resilience is positively related to job performance
H5: Survival needs is positively related to job performance

Measures of the constructs
The scale of the study was established based on the theory and was used the
scale that many researchers have used before in their studies. Mostly of the scale
was borrowed from the scale of Nguyen & Nguyen (2012). These two authors have
modified the scale which borrowed from other author to use for their research.
• Self- efficacy was measured by 4 items borrowed from scale of Parker
(1998):
I feel confident of analyzing a long-term problem to find a solution
I feel confident of presenting my work area in meetings with senior
management
I feel confident of contacting people outside the company
I feel confident of presenting information to a group of colleagues
• Hope was measured by 3 items borrowed from Snyder, Rand, and
Sigmon (2002) 23
At the present time, I am energetically pursuing my goals
There are a lot of ways around any problem that I am facing
I can think many ways to reach my current goals
• Optimism was measured by 3 items borrowed from Carver and
Scheier (2002):
In uncertain times, I usually expect the best
I always expect things go to my way
Overall, I expect more good things to happen to me than bad
• Resiliency was measured by 3 items borrowed from Block and
Kremen (1996):

to explore the opinion of the respondents. Below, the author provided the processes
were done to make the research.

Figure 3.1 Research processes 25
3.1.1 Qualitative research
Based on previous research about the impact of psychology capital and
quality of working life on job performance, the author established seven hypotheses
of the study (These hypotheses have been provided in the chapter 2). After that, the
author adjusted the model and provided the preliminary the scale for questionnaire
of the study.
After having the preliminary scale, the author made deeply interviews with
6-8 employees to investigate whether they understand clearly about the scale or not.
During the interview, the author also wanted to explore the suitability of the scale
for conducting the research in Viet Nam. Besides, the author expected to receive
some suggestions from the interviewees to make the improvement for the scale.
(See Appendix B)
Finally, the qualitative research gave the meaningful result that all scales
were clearly understood by the respondents. The respondents agreed that seven
factors in the research concerning with their job performance in banking career.
3.1.2 Quantitative research
Based on the preliminary research, the author adjusted the questionnaire
again to help the respondents understand questions easily. When the author believed
that the questionnaire was designed perfectly, the official research was conducted in
widely aspects.The processes of the quantitative research were taken as following: