RESEARCH PROJECT
(BMBR5103)

THE FACTORS AFFECT ON
EMPLOYEE’S JOB SATISFACTION IN BIDV

STUDENT’S FULL NAME:

NGUYEN MINH DANG

STUDENT ID:

CGS00018528

INTAKE:

SEPTEMBER 2014

ADVISOR’S NAME AND TITLE: DR. NGUYEN THE KHAI

December, 2015


ADVISOR’S ASSESSMENT
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Advisor’s signature

NGUYEN THE KHAI

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Company Introduction ................................................................................................... 9
Handbook Of BIDV Brand Identity ............................................................................. 9
History Of BIDV ........................................................................................................... 10
Fields Of Operations ..................................................................................................... 11
Human Resources ......................................................................................................... 12
Network ......................................................................................................................... 12
Customers ...................................................................................................................... 12
Technology..................................................................................................................... 13
Commitment .................................................................................................................. 13
Business Reputation Of BIDV ...................................................................................... 13
BIDV Overview ............................................................................................................. 14
RESEARCH INTRODUCTION ................................................................................. 17
Statement of the Problem ............................................................................................. 17
RESEARCH OBJECTIVES ....................................................................................... 17
RESEARCH QUESTIONS ......................................................................................... 18
Scope Of The Study....................................................................................................... 18
Research Design ............................................................................................................ 18
Value of Research ......................................................................................................... 19
CHAPTER 2: LITERATURE REVIEW .................................................................... 20
JOB SATISFACTION .................................................................................................. 20
ORGANIZATIONAL JUSTICE ................................................................................ 24
WORK - FAMILY CONFLICT ................................................................................. 25
PERSON - ORGANIZATION FIT ............................................................................. 27

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WORKPLACE VALUES ............................................................................................ 29


Figure 1: Proposed Research Model of Employee’s Job Satisfaction in BIDV
Figure2: A summary of demographic characteristics of the respondents

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LIST OF TABLES
Table 1: Summary of Hypotheses
Table 2: Cronbach's Alpha- Internal consistency
Table 3: Summary of Cronbach’s Alpha of the variables
Table 4: Descriptive Statistics
Table 5: Correlations among Variables
Table 6: Model Summary of all hypotheses
Table 7: Coefficients of all hypotheses
Table 8: Hypotheses Statistic Results

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ABBREVIATIONS
Joint stock commercial bank for investment and
BIDV
development of Vietnam
HRM


VA

Workplace values

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ABSTRACT
Job Satisfaction can be defined as the level of positive emotions or attitudes
that individuals have toward their work. When an employee says he has a high job
satisfaction, which means that he really liked his work, felt good about it and the
dignity of his work. Job satisfaction is an important technique used to motivate
employees to work harder.
This study purposely head to recognize the factors that affect the jo b
satisfaction among the employees working at BIDV. The study’s results indicated
three factors (variables) which clearly laid effects on the employee ’s Job
Satisfaction in BIDV named particularly the following terms: Organizational Justice,
P e r s o n - Organizational fit and Workplace Values.
Data analysis revealed that there is a positive relationship between the each
factor of employee’s Job Satisfaction and the following factors: Organizational
Justice, Work – Family conflict, P e r s o n - Organizational fit, Workplace Values.
Furthermore, relevant recommendations for improving the employee satisfaction are
proposed.

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- Founded on 26th April 1957 under the name Bank for Construction of
Vietnam.
- From 1981 to 1989: Under the name Bank for Investment and Construction of
Vietnam.
- From 1990 to 27/04/2012: Under the name Bank for Investment and
Development of Vietnam (BIDV).
- From 27/04/2012 to now: Under the name Joint Stock Commercial Bank for
Investment and Development of Vietnam (BIDV).
History of construction and development of BIDV is a difficult and trial but
very proud path associating with historic period against invaders and country
construction of Vietnam people.
Along with country development, Joint Stock Commercial Bank for Investment
and Development of Vietnam contributed to postwar economic rehabilitation and
implementation of the first five-year plan (1957-1965). Vietnam must carry out two
strategic duties for building socialism. They are to be against sabotage of America
toward the North and to reinforce the South for national unity (1965-1975),
construction and development of national economy (1975-1989) and implementation
of the reform in banking activity serving country’s modernization (1990-now). In any
circumstances, BIDV personnel always accomplish their mission- to be a solider of
the Party on monetary financial front and investment and development of country…
Acknowledge the contribution of BIDV through the periods, the Party and the
Socialist Republic of Vietnam have given to BIDV a lot of noble titles and rewards
including First-Rate Independence Medal and Third-Rate Independence Medal; FirstRate, Third- Rate Labor Medal, recognize as hero of Labor in renovation period, Ho
Chi Minh Medal, etc.
Fields Of Operations

and Financial Investment in Laos, Russia and especially in the Cambodian market
(Investment and Development Company of Cambodia – IDCC, Investment Banking
and Development of Cambodia – Cambodian BIDC, Insurance Company – CVI.
- Joint venture Bank: Co-operates more effectively with international partners
such as Bank VID-Public Venture (partner Malaysia), Bank of the Lao-Vietnamese
joint venture (with partner Laos), Vietnam Russia Joint Venture Bank – VRB (with
partners Russian), BIDV Tower Joint Venture Company (Singapore partner), and
venture investment management BIDV – Vietnam Partners (U.S. partner), etc.
Customers
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BIDV trades with:
- Enterprises: corporations, big corporations, small and medium enterprises
- Financial institutions: BIDV is the reliable choice for a number of Financial
institutions such as unilateral and multilateral World Bank, ADB, JBIC, NIB …
- Individuals: Millions of individuals have used the services of BIDV. It has
continuously tried to reach the goal of becoming a retail bank of high standards.
Technology
- BIDV always has innovations and technology applications serving effectively
for the management and development of advanced banking services, developing the
most advanced information technology systems such as ATM, POS, Contact Center,
to consolidate and develop all infrastructure systems such as monitoring of network
resources, network-oriented services (SONA), access control workstation; enhance
information processing service, banking executive management MIS; CRM.
- Since 2007, BIDV has occupied the leading position in the top list of
Vietnam ICT Index (index available for application development and information
technology) and in the typical Top 10 CIO (Information Technology Leadership) in

consensus and efforts of the business community, banking sector and the people,
Vietnam’s economy made positive changes, opening positive economic outlook for
2015. Given the above positive developments, BIDV as one of the leading financial
institutions outperformed business targets set for 2014 by the General Shareholders’
Meeting. The Bank had improved credit rating and achieved positive results in
implementing the restructuring scheme of the period 2013-2015.
- As of 31 December 2014, BIDV’s total assets stood at VND650 trillion
(~USD31 billion), up 18.6% year-on-year. Outstanding loans reached VND460
trillion (~USD21 billion), up 18.9% year-on-year. NPL ratio was well controlled at
2.03%. Total fund mobilization hit over VND501 trillion (~VND24 billion), up
20.4%. Profit before tax amounted to VND6,297 billion (up 20%). BIDV’s financial
ratios were all within safe limits, with CAR at over 9%, ROA at 0.83% and ROE at
15.27%.
- Notably, in 2014, for the first time in three years the retail credit growth
reached nearly 36%, retail deposit growth at 25%, individual customer base at nearly
7 million. This success proved the Bank’s growing capability and market position in
its business operations.
- In 2014, Moody's upgraded BIDV’s rating by one notch, up to B1. Moody’s

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assessed that BIDV had an extensive network and the best payment system in
Vietnam. Standard & Poor’s held steady their ratings of BIDV, showing the BIDV’s
stable operation as well as increasing international trust in the Bank.
- In addition to the credit rating upgrading, BIDV also won prestigious
domestic and international awards such as “Best Commercial Bank in Vietnam 2014”
(awarded by International Banker), “Best Retail Bank in Vietnam” (by Asian Banker),

Russian Federation, Europe, Northeast Asia. BIDV also made important steps in
entering and connecting Japan – Vietnam markets; partnered with US-based MetLife
Inc. to establish a joint venture named BIDV MetLife in Vietnam.
- In 2014, BIDV focused on institutional development under the model of a
modern commercial bank, improving risk management capacity under Basel II
standards, promoting the implementation of the restructuring scheme, and enhancing
corporate governance to meet the international standards and practices.
- Corporate Social Responsibility (CSR) programs continued to be a focus of
BIDV through various activities to support the national target programs on healthcare,
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education, national disaster rescue, and East Sea protection. As the focal point, BIDV
made significant contribution to the success of the Rural Finance Project III – the
project assessed to have “an outstanding performance among Vietnam’s ODA
projects”, significantly contributing to the economy, society and environment.
- BIDV completed the year 2014 with positive results, satisfying the
governance requirements for a large and modern commercial bank. The Bank operated
securely and stably, ensuring employees’ income and shareholders’ benefits. BIDV is
also friendly and responsible to the community, enhancing and developing its brand
locally and abroad.
- In 2015, with stable and positive outlook for the economy, especially when
Vietnam makes deep international integration, notably the participation in ASEAN
Economic Community (AEC) and the Trans-Pacific Partnership (TPP), BIDV
continues to make strong innovation, preparing resources to support enterprises and
customers across all sectors, promoting production and trade, as well as improving
competitiveness for sustainable development and integration.
- For BIDV, 2015 is also the final year of the period 2011-2015 and the ending

lives (Lease, 1998). Job satisfaction of employees is a very important branch to operate
the businesses successfully.
Furthermore, enhance the Job Satisfaction level of the employees will maintain
the stability of the workforce, reduce operating costs and increase business
productivity. Raising the level of employee satisfaction not merely increase. There are
many simple methods, inexpensive ways to help managers improve satisfaction and
increase the level of commitment as well as the job satisfaction of staff.
Last but not least, this is the transparent period when Housing Bank of Mekong
delta (MHB) was merged into BIDV. So the most important action for the managers
of BIDV is to maintain the current system and training the staff from MHB to keep up
with the current staff of BIDV. One of the most essential factor is to master the job
satisfaction of the employees right in this period.
As a result in this study, I focused only on identifying and analyzing the
impacts of these factors on job satisfaction of employees of BIDV based on survey
data of 400 employees in the bank.
RESEARCH OBJECTIVES
This study will need to find out which factors affect the employees' satisfaction
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and how to improve it. To achieve this terminal goal, we need to achieve these
specific objectives:
- Organizational Justice (OJ).
- Work – Family conflict (WFC)
- Person – Organization fit (POF)
- Workplace values (VA)
RESEARCH QUESTIONS
Depending on the statement above, and to fulfill the objectives of this study,

This is the role of any managers to take into account the general well being of
their staff. This is crucial in order to create an environment that is both conducive
and harmonious for every role player of an organization. In order to accomplish this
role, managers must have indications of what exactly contributes to the areas of job
satisfaction. The value of this study is to investigate and embrace the levels of job
satisfaction at BIDV. Therefore the researcher will make some recommendations
and suggestions on how to improve on Job Satisfaction at the BIDV.

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CHAPTER 2: LITERATURE REVIEW
JOB SATISFACTION
Employee’s Job Satisfaction is the most crucial success factor for all
organizations. Employee’s Jobsatisfactions have been recognized to have a huge
effect on many economic and social phenomena, e.g. economic growth and
higher standards of living. Enterprises must continuously maintain employee
satisfaction in order to stay profitable. Marcson (1960) stated a debate and findings
suggesting that one of the best methods to improve productivity in any
organizations is to provide employees with jobs that are more demanding and
challenging. Herzberg's (1968) theory effectively delineates the reasons of job
satisfaction. According to his two-factor theory, there are motivational and
hygiene factors present in one's job. Rewards and benefits are hygiene factors, so if
they are not present, they will bring dissatisfaction, but their presence will not
necessarily bring job satisfaction. Pritchard, Dunnette, and Jorgenson (1972)
indicate that feelings of underpayment lead to decreased performance and low
productivity. (Hackman & Oldham


environment and its affect on health and employees satisfaction. Witt & Nye
(1992), individuals who perceive their promotion decisions are made in a fair and
just manner are likely to experience satisfaction with their jobs. The satisfaction of
employee is analyzed actually by the output that the individual produces and it is
related to office environment. Brown & McIntosh (1998) have found evidence
that the correlation between wage and job satisfaction is particularly close in the
case of low levels of monetary compensation, both within the sector and among
sectors. Lease (1998) employees who have higher job satisfaction are usually less
absent, less likely to leave, more

productive,

more

likely

to

display

organizational commitment, and more likely to be satisfied with their lives. Wagner
and Hollenbeck (1998) job satisfaction, on the other hand, can be defined as a
pleasurable feeling that results from the perception that one’s job fulfils or allows
for the fulfillment of one’s important job values. Blanchflower & Oswald (1999)
job insecurity, work intensity, greater stress, and dissatisfaction with working
hours have increased in the US and in Germany, and they significantly explain the
decline of job satisfaction. Clark (1999) shows that changes in workers’ pay over
time positively influence their well- being, whereas the current level of pay does
not impact on job satisfaction. Leontaridi & Sloane (2001) show that low- pay
workers report higher job satisfaction than do other workers. Borzaga & Depedri

employee's perception of job satisfaction. Green & Heywood (2008) performancerelated pay allows opportunities for worker optimization and does not crowd out
intrinsic motivation, thus increasing overall satisfaction, satisfaction with pay, and
satisfaction with job security. Sharma and Kumari (2004) found that public sector
employees are in a position in terms of their job satisfaction than the employees of
private sector organisations. Top management employees are more satisfied than
the middle and lower level employees. It was also revealed that the public sector
employees are more dissatisfied with their working conditions and incentives than
the employees of the private sector. In a study on employee attitude and job
satisfaction, Saari and Judge (2004) found that job dissatisfaction appears to be
related to

other

withdrawal

behaviours

including

lateness,

unionization,

grievances, drug abuse and decision to retire. Wayne, Musisca and Fleeson (2004)
found that work to family conflict was negatively related to job satisfaction,
while work family facilitation was positively related to job satisfaction. Srivastava
(2005) found from his study involving senior and middle managers in two public
sector companies that the changes in work and service conditions are largely
positive, resulting in greater job satisfaction than before.
Judge, Heller and Klingir (2008) indicated that the traits from all three

of

job performance

relationship, as well as the importance of matching predictors and criteria in
terms of their levels of specificity. Clark and Tamara (2008) have revealed that
there

was strong correlation between opportunities for promotions and job

satisfaction. The results indicate that external needs, opportunities for promotions,
and pay contribute to job satisfaction and reduction of turnover among employees
within insurance organizations. The problem with job satisfaction and turnover is
a concern within insurance industry. Jain (2010) analysed the impact of
liberalization on HRM practices in public sector banks over a period of almost
two decades. Variables were measured and conclusions were drawn striking a
blend between micro level changes and their consequent impact on banking
operations. Majority of the respondents agreed that the primary reasons for
improved productivity post liberalization were use of IT, Infrastructure,
competition in the market place and outsourcing back office functions. Chopra
and Khan (2010) states that job satisfaction is a complex and multifaceted
concept, which can mean different things to different people. The Link between
job satisfaction and performance may prove to be a spurious relationship, instead,
both satisfaction and performance

are

the result of personality. Hence the

behavioural aspect of HRM has to be kept in mind by the organizational decision

(Folger & Cropanzano, 1998; Greenberg, 1990a). Employees generally desire the
process to be open and fair, regardless of the outcome. Distributive justice deals with
perceptions of the ends and procedural justice deals with perceptions of the means
In this study, I use the Distributive and Procedural Justice method (not fully
approved because of the limitation of time) developed by Sweeney and McFarlin
(1994). The procedural justice subscale uses 8 items to assess the fairness of
procedures within an organization, including procedures relevant to assessing and
comunicating performance feedback, solving work – related problems, and promotion
processes. Eight items describe employee perceptions of an organization’s fairness in
distributing rewards such as raises, promotions, performance ratings, and general
recognition.

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