SATISFACTION LEVEL OF EMPLOYEES IN THAI NGUYEN IRON
AND STEEL JOINT STOCK CORPORATION

A DISSERTATION PAPER
Presented to
the Faculty of the Graduate Program
of the College of Business and Accountancy
Central Philippine University, Philippines
In Collaboration with
Thai Nguyen University, Vietnam

By
NGUYEN THI LAN HUONG

DECEMBER 2016


i
ACKNOWLEDGEMENT

In order to complete this thesis, I would like to specially express my sincere thank to
Assoc. Prof. Dr Hoang Thi Thu, who has been giving me a great support and guidance my
during my study as well as the thesis accomplishing process.
I thank the lecturing employee of the CPU and TUEBA, whose tutelage over the more
three years provided me with the necessary background skills to undertake and complete this
study.
I extend sincere appreciation to the managers and employees in Thai Nguyen Iron and
Steel Joint Stock Corporation.
To my Co-worker without whose interest and co-operation I could not have produced
this study. I wish to thank them for supporting this initiative and affording me their time and
sharing their experiences.

2.2. Empirical related studies ................................................................................................ 20
Job satisfaction statistics ........................................................................................................ 23
CHAPTER III ......................................................................................................................... 27
RESEARCH METHODOLOGY .......................................................................................... 27
3.1. Research design ............................................................................................................. 27
3.2. Population, sample size and sampling technique........................................................... 27
3.3. Research instruments ..................................................................................................... 30
3.4. Ethical consideration ...................................................................................................... 32
3.5. Data gathering procedures ............................................................................................. 32
3.6. Data processing and data analysis ................................................................................. 35
CHAPTER IV ......................................................................................................................... 37
DATA PRESENTATION, ANALYSIS AND INTERPRETATION ................................ 37
4.1 Thai Nguyen Iron and Steel Joint Stock Corporation introduction ................................ 37
4.1.1 General informations ................................................................................................ 37
4.1.2 Organizational structure ........................................................................................... 39


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4.1.3 Business Situation of TISCO ................................................................................... 41
4.2. Situation of human resources of TISCO ........................................................................ 43
4.2.1 The structure of human resources ............................................................................ 43
4.2.1.1 Structure by sex workers ....................................................................................... 43
4.2.1.2 Employees structure by age group ........................................................................ 43
4.2.1.3 Employees structure by level ................................................................................ 44
4.2.1.4 Employees structure according to the nature of work ........................................... 45
4.2.2 Salaries, bonuses and Welfare of employees ........................................................... 45
4.2.3 Working condition of employee ............................................................................... 45
4.2.4 Opportunity for advancement................................................................................... 45
4.2.5 Persional relationships ............................................................................................. 45
4.3 Evaluating the results of the employee satisfaction of TISCO ....................................... 46

APPENDICES....................................................................................................................... 100


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LIST OF TABLES

Table 3. 1 Sample of member in TISCO Thai Nguyen ............................................................ 29
Table 3. 2 The 5- Likert scale ................................................................................................... 30
Table 3. 3 Questionnaire design ............................................................................................... 30
Table 3. 4 Sample of member in TISCO Thai Nguyen by kind employees ............................. 34
Table 3. 5 Cronbach alpha coefficient scale ............................................................................. 35
Table 4. 1 Balance company audit results ................................................................................ 41
Table 4. 2 Report on business results of the Company ............................................................ 42
Table 4.3 Structure by sex ........................................................................................................ 43
Table 4.4 Employees structure by age group ........................................................................... 43
Table 4. 5 Employees structure by level................................................................................... 44
Table 4.6 Descriptive Statistics of general employees ............................................................. 48
Table 4. 7 Descriptive Statistics of Indirect employees ........................................................... 48
Table 4. 8 Descriptive Statistics of direct employees ............................................................... 49
Table 4.9 Descriptive statistics of “Supervisors”factor ............................................................ 50
Table 4. 10 Descriptive statistics of “Co-worker” factor ......................................................... 50
Table 4. 11 Descriptive statistics of “Working conditions” factor. .......................................... 51
Table 4. 12 Descriptive statistics of “Financial reward” factor. ............................................... 51
Table 4. 13 Descriptive statistics of “Opportunity for advancement” factor ........................... 52
Table 4. 14 Descriptive statistics of “Salary” factor ................................................................ 52
Table 4. 15 Descriptive statistics of “Nature of work” factor .................................................. 52
Table 4. 16 Cronbach Alpha of Nature of work ....................................................................... 53
Table 4. 17 Cronbach‟s alpha of salary .................................................................................... 54
Table 4. 18 Cronbach‟s alpha of Opportunity for advancement .............................................. 54
Table 4. 19 Cronbach‟s alpha of Supervisors ........................................................................... 55

Table 4. 47 Result of Bonferroni test of “education” ............................................................... 83
Table 5. 1 Coefficients three multiple regression ..................................................................... 86


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LIST OF FIGURES
Figure 1. 1 Abraham Maslow‟s need hierarchy theory .............................................................. 5
Figure 1. 2 Maslow‟s hierarchy of needs and application in the workplace .............................. 5
Figure 1. 3 Herzberg‟s two factors theory .................................................................................. 8
Figure 1. 4 Summarizing the need theories ................................................................................ 9
Figure 1. 5 Theoretical framework ........................................................................................... 11
Figure 1. 6 Conceptual framework ........................................................................................... 12
Figure 2. 1 Measure job satisfaction by faces .......................................................................... 20
Figure 4. 1 Organizations Structure Diagram of TISCO .......................................................... 40
Figure 4. 2 Research framwork: Adjusted model ..................................................................... 62
Figure 4. 3 Homoscedasticity ................................................................................................... 69
Figure 4. 4 Histogram chart ...................................................................................................... 70
Figure 4. 5 P-P plot chart .......................................................................................................... 70


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ABSTRACT

Studies on job satisfaction have been conducted and applied including both
theoretical and practical aspects. In context of needing to improving quality of work
performance in manufacturing enterprises, surveying on employee‟s job satisfaction has been
done in previous researches. However, there have not been separate studies on employee‟s
satisfaction at administrative area toward their job (direct-employee) as well as employee‟s
satisfaction production area toward their job (indirect-employee).
Based on the literature of general job satisfaction of employee with different sectors,

1.1. Background and rationale of the study
There are many factors influencing human resource management, of which job
satisfaction is the most important issue among many factors of human resource management
that every manager needs to give much attention.
The term “job satisfaction” is derived from the humanities, psychology and
sociology. In the field of psychology, it is a state where an employee has an emotional
perception of his situation and reacts with feelings of pleasure or pain. In sociology, it is
considered a variable in different categories related to how each employee evaluates and
thinks about his work (Sypniewska, 2013). Job satisfaction can be defined as an individual‟s
total feeling about their job and the attitudes they have towards various aspects or facets of
their job, as well as an attitude and perception that could consequently influence the degree of
fit between the individual and the organization (R. Karthik, S. Saratha, & M. Sowmiya, 2012;
Spector 1997).
For a few decades, many researchers have been carried out about job satisfaction
and its components. Many researchers and administrators have noticed the importance of job
satisfaction on a variety of organizational variables. In particular, it was know that dissatisfied
employees are likely to leave their jobs (E.J. Lumley, et al, 2011). Job satisfaction among
employees is an indicator of organizational effectiveness (R. Karthik, S. Saratha, & M.
Sowmiya, 2012). the study conducted by Harter et al. (2002) found positive and substantive
correlations between employee satisfaction-engagement and the business unit outcomes of
productivity, profit, employee turnover, employee accidents, and customer satisfaction.
Freeman, (2005) shows that businesses that excel in employee satisfaction issues reduce
turnover by 50% from the norms, increase customer satisfaction to an average of 95 % and
lower employee cost by 12%. Carpitella (2003) indicated that the more satisfied an employee
is, the less turnover and absenteeism occurs (Maloney, & McFillen, 1986).
Added to that, Job satisfaction plays an important role for an employee in doing their
job performance. Research examining the relationship between job satisfaction and job
performance has been conducted since at least as early as 1945 (Davar, 2012). The idea that
job satisfaction leads to better performance is supported by Vroom's. The study relating to the
relationship between job satisfaction and job performance has now become a research

Established in 1959, Thai Nguyen Iron and Steel joint stock Corporation (TISCO),
the cradle of the metallurgical industry of Vietnam is the first an unique metallurgical zone in
Vietnam with an integrated production line from exploiting iron ore to making cast iron, steel
billet and rolling steel. Like the other companies, TISCO have been facing the challenges of
recruiting, and retaining quality workers. The problem is unlike the past years, in conditions
of economic slowdown, the role of human resource professionals has become an integral part
of the organization‟s success. For the TISCO, these challenges are even more complex. So the
question is how to satisfy employees and how to retain them is most concerned question of
the different levels of management. These studies have been focused mainly on private
sectors. Seldom has been conducted on relationship between job satisfaction and
organizational and individual factors, especially no case of Thai Nguyen, there is no research


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on this topic. Thus, the research in evaluating the job satisfaction and determining the factors
influencing job satisfaction is needed.
With the above purposes, we conduct a research on “Satisfaction of employees in
Thai Nguyen Iron and Steel Joint Stock Corporation”.
Research questions
i)

What is the level of job satisfaction among TISCO‟s employees?

ii)

Is there a difference between level of job satisfaction of directal employee and
indirectal employee?

iii)


theory put forth by psychologist Abraham Maslow. Maslow (1954) saw human needs in the
form of a hierarchy, ascending from the lowest to the highest, and he concluded that when one
set of needs is satisfied, this kind of need ceases to be a motivator. Maslow‟s theory states that
people have a pyramide hierarchy of needs that they will satisfy from bottom to top. There are
deficiency needs, that will stifle any other movement if they‟re not satisfied, and growth
needs, that can be progressively satisfied once the basics have been covered (Argyris, 1957).
Physiological needs: These are important needs for sustaining the human life. Food,
water, warmth, shelter, sleep, medicine and education are the basic physiological needs which
fall in the primary list of need satisfaction. Maslow was of an opinion that until these needs
were satisfied to a degree to maintain life, no other motivating factors can work.
Security or Safety needs: These are the needs to be free of physical danger and of
the fear of losing a job, property, food or shelter. It also includes protection against any
emotional harm.
Social needs: Since people are social beings, they need to belong and be accepted by
others. People try to satisfy their need for affection, acceptance and friendship.
Esteem needs: According to Maslow, once people begin to satisfy their need to
belong, they tend to want to be held in esteem both by themselves and by others. This kind of
need produces such satisfaction as power, prestige status and self-confidence. It includes both
internal esteem factors like self-respect, autonomy and achievements and external esteem
factors such as states, recognition and attention.
Need for self-actualization: Maslow regards this as the highest need in his hierarchy.
It is the drive to become what one is capable of becoming, it includes growth, achieving one‟s
potential and self-fulfillment. It is to maximize one‟s potential and to accomplish something.


5

Figure 1. 1 Abraham Maslow’s need hierarchy theory
Maslow‟s hierarchy of needs applied to work situations implies that managers have
the responsibility, firstly, to make sure their people‟s deficiency needs are met. This means, in

Physical:

Working conditions
Heating and ventilation
Rest periods

Belonging

Encourage social interaction
Create team spirit
Facilitate outside social activities
Use periodic praise
Allow participation

Self-esteem

Design challenging jobs
Use praise and awards
Delegate responsibilities
Give training
Encourage participation

Self-actualization

Give training
Provide challenges
Encourage creativity

(2) McClelland’s achievement motivation theory (need based theory)
McCelland‟s theory of needs focuses on just three needs: achievement, power and

manager's objectivity, because of their need to be liked, and that this affects a manager's
decision-making capability. A strong“n-pow” authority-motivation will produce a determined
work ethicand commitment to the organization, and while “n-pow” people are attractedto the
Supervisorsship role, they may notpossess the required flexibility and people-centred skills.
McClelland argues that “n-ach” people with strong achievement motivation make the best
Supervisorss, although there can be a tendency to demand too much of their employee in the
belief that they are all similarly and highly achievement-focused and results driven, which of
course most people are not.
McClelland‟s needs are found to varying degrees in all workers and managers, and
their mix of motivational needs characterizes a person's or manager's style and behavior. Both
in terms of being motivated and in the management and motivation others. People with
different needs are motivated differently.
High need for achievement – High achievers should be given challenging projects
with reachable goals. They should be provided frequent feedback, while the money is not an
important motivator in itself. Rather, it is an effective form of feedback.
High need for affiliation – Employees with a high affiliation need perform best in
a cooperative environment.


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High need for power – Management should provide power seekers the
opportunity to manage others.
(3) Herzberg’s two factors theory (need based theory)
Herzberg‟s theory is one of the most empirical and compelling theories about
motivation. It‟s the only theory that splits out de-motivating factors from motivating factors; it
introduces the concept of movement and motivation. And it “has produced more replications
than any other research in the history of industrial and organizational psychology. The TwoFactor Theory, or Motivation and Hygiene Theory, purports to differentiate between intrinsic
and extrinsic aspects of the job. The authors referred to the intrinsic factors as content or
motivators, and they include: achievement, advancement, the work itself, responsibility, and
recognition. The extrinsic factors were referred to as hygienes and included: company policy

The work itself
Responsibility
Advancement and growth

Satisfaction

No satisfaction

Supervisors
Working conditions
Interpersonal relations
Pay and security
Company policies and administration

Dissatisfaction

Figure 1. 3 Herzberg’s two factors theory

No Dissatisfaction


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Summarizing the need based theories
Despite the obvious differences between the need theories discussed in this Section,
there are several points at which the theories intersect. Figure 4 illustrates the similarities
among the three theories examined. All need-based theories, however, share an inherent
weakness in that “they do an adequate job of describing the factors that motivate behavior, but
they tell us very little about the actual processes of motivation” (Moorhead & Griffin, 1995).
Process based motivation theories provide a better understanding of the ways in which
motivation occurs.

probability of improvement is 1 (PareekUdai, 2004).
Relationship between Performance and Rewards/Work Outcomes: This relationship
is called Instrumentality (I). The instrumentality is the perception of an employee of the
probability that performance will lead to organizational rewards or outcomes like superior
salary, bonuses, promotion etc. The value of instrumentality is also between 0 and 1.
According to Fred Luthans, another major input into the valence is the instrumentality of the
first level outcome in obtaining a desired second level outcome. For example an employee
would be motivated towards achieving better results or superior performance because of
desire of getting higher bonuses. The better results or superior performance or the first level
outcome will therefore be instrumental in getting higher bonuses or a second level outcome
(Luthans Fred, 1998).
Relationship between Rewards/Work Outcomes and Personal goals: This is known
as Valence (V). The valence measures the attractiveness, preference, value or the liking of the
rewards or work outcomes for the employee. Its value can be from -1 to +1. The Valence of
an outcome to a person is a monotonically increasing function of the algebraic sum of the


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products of the valences of all other outcomes and his conceptions of its instrumentality for
the attainment of these other outcomes. (Vroom, 1964) Work outcomes can be stress or
fatigue. But they can also be pay raise or promotion. Stress or fatigue can have somewhat
negative valences but pay raise or promotion can have strongly positive valences. But for
motivation it is important that sum total of valences must be positive (Miner John, 2006). The
Valence may vary from one person to another person. Therefore, the expectancy theory says
that:
Effort/motivation = V x E x I (Motivation = Valence x Expectancy x Instrumentality)
Based on the literature review, theoretical frame work is proposed as below:
Work factors

Individual factor


Working time



Working condition



Position

Employees’ demands


Improvement of
individual capacity



Future expectation

Job satisfaction of employee
Figure 1. 5 Theoretical framework

1.4. Conceptual framework
After studying literature review on job satisfaction conducted by domestic and
international researchers, the author of this thesis to input – process – output model to develop
researcher‟s study on evaluation of job satisfaction of employees working in TISCO, as
below.


Figure 1. 6 Conceptual framework

Based on specific condition of working in TISCO, the study propose hypothesis as
below:
Hypotheis 1. There are no significant differences in the job satisfaction among
employees in TISCO according to their personal characteristics like age, gender, education,
marital status…;
Hypothesis 2. There are no significant relationship between employee‟s perceptions of
components of job like nature of work, salary, supervisor, co-worker, opportunity for
advancement, working condition, financial reward and the employee‟s job satisfaction in
TISCO.

1.5. The operational definitions
The operational definitions of variables in present study are defined as follows:
Job satisfaction: Job satisfaction can be defined as an employee‟s total a happy or pleased
feeling about their job and the attitudes they have towards various aspects or facets of their
job. Job satisfaction is measured by the perception of respondents with the following criteria:
1. You understand clearly current job.
2. Your current job is simple or easy
3. Your current job is creative
4. Your current job is challenge.


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5. You may decide to work some issues in their abilities
6. You can use a lot of different skills at work.
7. The work that you are doing matches with your capabilities
8. The work that you are doing is appropriate
The nature of work (work itself): The nature of the employee‟s work is best defined as the
type of work that they do. This can refer to the basic daily tasks that he carries out as part of


14
Supervisor: Supervisor is a person whose job is to supervise employees or their works.
The surpervisor is measured by the perception of respondents with the following criteria:
1. Supervisor cares about you
2. Supervisor listen to your opinions
3. Supervisor gives good suggestions
4. You easily communicate and interface with your supervisor
5. You receive equally treatment from supervisor
6. Supervisor is capable of executive
Co-worker: Co-worker is a person working with another employee, especially as a partner or
helper. The co-worker is measured by the perception of respondents with the following
criteria:
1. Co-worker is willing to help you
2. Co-worker is friendly and generous
3. You may learn experiences from your co-workers
4. Co-worker coordinates with you well
5. Your co-worker is reliable
Financial reward: financial is the money or something given in exchange for good behavior
or good work, extra work of employees. The financial is measured by the perception of
respondents with the following criteria:
1. Companies implements all of insurances for employees
2. Trade union always cares and support you when you face with some problems
3. Welfare of company is clear and adequate
4. Welfare policy of the company expressed the consideration of company to
employees
Working condition: refers to the working environment and all existing circumstances
affecting employee in the workplace, including job hours, physical aspects, legal rights and
responsibilities. The working condition is measured by the perception of respondents with the
following criteria:

1. Single
2. Married
Length of employment: the observing, encountering, or undergoing of things generally as
they occur in the course of time. In this case, experiences refer the year that employees work
in TISCO. The length of employment is measured by the perception of respondents with the
following criteria:
1. Less than 5 years
2. From 6 to 10 years
3. From 11 to 16 years
3. More than 16 years

1.6. Significance of the study
Finding of this study will provide administrator or managers an inside knowledge on
job satisfaction, work performance and work motivation. The author and other research can
realize specific level of job of job satisfaction of employee working at TISCO. Therefore, this


16
finding is used as a recommendation to CEO of TISCO to improve the level of satisfaction
and motivation of work. Organizations will be oriented towards treating workers fairly and
with respect.
Result of this study also will provide the basic knowledge about the factor
influencing job satisfaction. In the other hand, this study will provide management with a
greater understanding of the importance of factors which influence job satisfaction. It is very
useful for us to examine how many factor affect to job satisfaction and which factor influence
job satisfaction most. The result of this study also support for the administrator and manager
to select correct factors and get a priority setting for conducting an intervention. Hence, it
improves job satisfaction directy and increases the work motivation, work performance and
productivity. Include other factor which will be Financial rewarded by the study.