ĐẠI HỌC QUỐC GIA HÀ NỘI
KHOA QUẢN TRỊ VÀ KINH DOANH
---------------------

PHẠM THU ANH

JOB SATISFACTION OF UNDERWRITING
MANAGEMENT EMPLOYEES AT BAOVIET INSURANCE

ĐO LƯỜNG MỨC ĐỘ HÀI LÒNG TRONG CÔNG VIỆC
CỦA CÁN BỘ TRỤ SỞ CHÍNH - TỔNG CÔNG TY
BẢO HIỂM BẢO VIỆT

LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH

Hà Nội - 2017


ĐẠI HỌC QUỐC GIA HÀ NỘI
KHOA QUẢN TRỊ VÀ KINH DOANH
---------------------

PHẠM THU ANH

JOB SATISFACTION OF UNDERWRITING
MANAGEMENT EMPLOYEES AT BAOVIET INSURANCE

ĐO LƯỜNG MỨC ĐỘ HÀI LÒNG TRONG CÔNG VIỆC
CỦA CÁN BỘ TRỤ SỞ CHÍNH - TỔNG CÔNG TY
BẢO HIỂM BẢO VIỆT
Chuyên ngành: Quản trị kinh doanh

Thirdly, I am very thankful to the senior management team and my colleagues in
Underwriting Management departments at BaoViet Insurance for their kind cooperation
and support to let me interview them and also gave me very useful information as well as
valuable experiences.
Last but not least, I would like to say many thanks to my family and friends for
giving me encouragement and supports during my studying time and completion of this
thesis.
Hanoi, October 2017

PHAM THU ANH

ii


TABLE OF CONTENT

ACKNOWLEDGEMENT .......................................................................................... i
ABBREVIATION ..................................................................................................... vi
LIST OF TABLES .................................................................................................. viii
LIST OF FIGURES.................................................................................................. vii
INTRODUCTION .......................................................................................................1
CHAPTER 1THEORETICAL FRAMEWORK ON JOB SATISFACTION OF
EMPLOYEES IN ORGANIZATION ........................................................................7
1.1.Definition job satisfaction ..................................................................................7
1.1.1. Definition of job satisfaction ......................................................................7
1.1.2. The role of job satisfaction ........................................................................8
1.2.Job descriptive index to measure job satisfaction ............................................10
CHAPTER 2 JOB SATISFACTION OF UNDERWRITING MANAGMENT
EMPLOYEES AT BAOVIET INSURANCE ..........................................................14
2.1. Overview of BaoViet Insurance Corporation and Underwriting Management


resources

development

strategy

of

the

Underwriting

Management division at BVI ..............................................................................46
3.1.2. Employees’ job satisfaction improvement goal.......................................47
3.2.Solutions to improve underwriting management employees’ job satisfaction at
BVI .........................................................................................................................49
3.2.1. Implementing training programs and expanding the promotion
opportunities to develop underwriting management employees’ capabilities and
skills. .................................................................................................................49

iv


3.2.2. Improving the working environment positively ......................................52
3.2.3. Improving policies on Salary and Welfare ..............................................56
3.2.4. Improving the factor of manager: ............................................................58
3.2.5. Improving activities to connect “Colleagues” .........................................60
3.3.Recommendations for the solutions .................................................................61
3.3.1. Recommendations for the Company .......................................................61

6. UM:

Underwriting Management

vi


LIST OF FIGURES
Figure 1.1: Research process ................................................................................................. 4
Figure 3.1: Revenue of BaoViet Insurance from 2009 – 2013 ............................................ 15
Figure 3.2: Market share of BaoViet Insurance ................................................................... 16
Figure 3.3: Organization Chart of BaoViet Insurance ......................................................... 17
Figure 3.4: Organization Chart of Underwriting Management Division ................................ 18
Figure 3.5: AJDI model studying employees’ job satisfaction ............................................ 20
Figure 3.6: Structure of surveyed sample according to “Age” ............................................ 23
Figure 3.7: Structure of surveyed sample according to “Qualification”.............................. 23
Figure 3.8: Structure of surveyed sample according to “Seniority” .................................... 24
Figure 3.9: Adjusted research model ................................................................................... 25

vii


LIST OF TABLES
Table 3.1: Dimensions of job satisfaction ........................................................................... 20
Table 3.2: The sample description ....................................................................................... 22
Table 3.3: The result of Exploration factor analysis ............................................................ 25
Table 3.4: The result of the scale reliability ........................................................................ 26
Table 3.5: Satisfaction with“Salary and Welfare” ............................................................... 27
Table 3.6: Satisfaction with“Work itself and Working environment” ................................ 28
Table 3.7: Satisfaction with“Training, promotion and Decision-making right” ................. 30

competitiveness of salary, working conditions, preferential regime between the enterprises
is happening commonly, theskilled and well trained staff retention and stable staffing
situation are now becoming the main problem that the business owners are interested. The
previous studies in the past suppose one of the most important factors that make employees
staying longer with company is the job satisfaction.
Being the first insurance company, BaoViet Insurance Corporation (BVI) has a
long heritage in Vietnam. With strong financial capability and an extensive network of 67
subsidiaries in 65 provinces of Vietnam, BVI has given local expertise in offering a
diversified range of non – life insurance products and services that meet the changes of
customers’ demand. By that way, the company has already maintained his leading position
in the insurance market with many significant achievements in terms of revenue, profit,
products and services quality.

1


The underwriting management (UM) division is one of the functional divisions of
BaoViet Insurance, with 40% labor force. It plays an important role to help the system
operate fluently, increase the competitiveness in the exploiting the insurance business and
ensure the effectiveness of BVI performance. The labor productivity and job efficiency of
Underwriting Management employees will also affect to the business performance of each
branches in particular and BVI in general. However, in recent years, the number and
frequency of resignation or work transfer of Underwriting Management employees tend to
be increasing. In order to get more insights into the workplace scenario and evaluateif
employees are actually satisfied with the work they do, it will be necessary to study of
Underwriting Management employee’s job satisfaction atBVI.The job satisfaction of
employees will make their work more interesting, reduce their stress, progressively
increase their confidence in their own competence and enhance commitment with the
company. It also decides the sustainable development of the organization. It helps the
companies avoid the big fluctuation of HR, and establish the HR management policies and

Management employee’s job satisfaction BVI.
In order to archive the above objectives, the research is to answer the following
questions:

2




What are the dimensions to measure employee’s job satisfaction?



How is the current job satisfaction of UM employees in BVI?



How to improve the job satisfaction of UM employees in BVI?

3. Objects of this research
The thesis focuses on job satisfaction of Underwriting Management employees in BVI.
4. Research scope
- Geographical Scope: The survey conducted in Underwriting Management
Division – BVI in Hanoi including employees of 6 departments: Fire & Engineering, Hull
& Cargo, Health &Personal Accident, Motors, Reinsurance, and Claim Department.
- Timing:
• Primary data: collected within 2 months April – May 2016
• Secondary data: collected from the company HR documents, reports and related
analysis in the period 2012 –2016



a. Data collection
i. Secondary data
Secondary datacollected from the below:
The data from textbooks and the internet provided the author with theories and
basic dimension to measure job satisfaction in the enterprises in general.

4


BVI reports, regulations, policies, Underwriting Management employees’ job
description: provided the author with information on the company’s turnover, market
share, the function and duties of UM Division, and HR policies applying currently in BVI.
ii. Primary data
Primary data collected from 2 methods:
a. Interview:
• Carried out the in-depth interview of 01 Deputy CEO and 05managers of UM division
with the open questions as below:
- The role and effect of Underwriting Management employees to the
humanresource of division
- The managers’ evaluation of the labor quality and working attitude of
Underwriting Management employees
- The interest of managers for employee’s satisfaction
- Orientation of HR development of the UM division in the future
• Carried out the direct interview of 6 UMemployees with the open questions as below:
- The working environment and pressure in the current job
- Current salary is paid in comparisonwith other insurance companies
- Opinion of welfare facilities in BaoViet Insurance
- Training and promotion opportunities of BaoViet Insurance for all the employees.
- The satisfaction level of delegation in the current job

delivering the preliminary questionnaires via email to be sure that it’s easyfor
15 employees to understand andtake part in this. Then, the results will be
collected to set up the formalquestionnaires.

+Official surveywas conducted with110UM employees in BVI by
-

delivering the formal questionnaires via email. 105 revoked with 100 full
required information, accounting for 90.9%of the sample.
b. Data analysis:

- Regarding the survey data, Microsoft Excelsoftware and the Mean method are
used to analyze the collected information. The inspection of scale, theriotical model and
hypothesis was carried out by the Crobach’s Alpha reliablity coefficient, Exploration factor
analysis, regression modelthrough SPSS software.
6. Research structure
The thesis is divided into three chapters as follows:
Chapter 1: Theoretical Framework on Job satisfaction of employee in organization
Chapter 2: Status of job satisfaction of Underwriting Management employees at
BVI.
Chapter 3: Solutions to improve the job satisfaction of Underwriting Management
employees in BaoViet Insurance.

6


CHAPTER 1
THEORETICAL FRAMEWORK ON JOB SATISFACTION OF EMPLOYEES IN
ORGANIZATION
1.1. Definition job satisfaction

The Job Descriptive Index was chosen as the standard measure but at the same time
another section was added to measure the importance of the various dimensions to the
employees.
The Job Descriptive Index (JDI) (Smith, Kendall & Hulin, 1969) is the most widely
used measure of job satisfaction in existence today. JDI was designed to measure job
satisfaction through 5 aspects of a job: the work itself, salary, training / promotion
opportunities, manager and colleagues.
• The work itself: job specification such as projects, responsibilities. It relates to the
job challenges, the opportunities for applying personal abilities, an interesting feels
performing the tasks. The job satisfaction depends on the satisfaction with the work
components, such as the nature of job. The relevance of the work to workers is expressed
through many aspects of the nature of work: use of different skills, employees'

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understanding the work process, and certain importance of the work for the organization.
In addition, the work must be in accordance with workers' capacity.
• Salary: relate to the employees awareness about thefair in paying the salary of the
company. A worker's level of job satisfaction can impact his/her job performance. The
performing employees feel satisfied with their job because of high-level or increased pay.
• Trainning / Promotion opportunities (i.e., job enlargement, more prestigious title):
relate to the employees awareness about the chances of trainning, individual ability
development and promotion in the organization.Advancement opportunities are believed to
have a positive influence job satisfaction. Kreitner and Kinicki (2001) supposed that
positive relationships between development opportunities and job satisfaction depend on
fairness perceptions of employees. Promotion opportunities have positive impact on job
satisfaction. In some studies in Vietnam (such as Tran Kim Dung, 2005; Ha Nam Khanh
Giao, 2011), the factor “promotion opportunities” is considered in aspects such as: Fully
professional trained, opportunities to improve the professional skills, create opportunities

“supervisors” and job satisfaction.

11


• Colleagues: interaction and work relationship with co-workers relate to the
behaviors, co-workers relationship at working place.Colleagues are people working
together in the organization or the people working in the same department. Friendly coworker relation will increase the satisfaction with job of employees (Johns, 1996; Kreitner
& Kinicki in 2001). The factor “colleague” is considered good is in the organization,
employees are always willing to help each other, work together effectively, treat well,
working environment is friendly, and employees have reliable relations.
Besides that, in order to be suitable for the Vietnamese culture and society, basing
on the demand theory of Maslow and JDI of Smith, also the job characteristics of
departments in the UM division, the research will carry out the measurement of employees
job satisfaction and pointed out more 2 dimensions:
• Welfare: affect to the job satisfaction of employees. It covers both monetary and
nonmonetary fringe benefits. It includes benefit comparison with other organization. The
enterprises have a good wel-fare facilities that make the employees have higher level of job
satisfaction. Each company has different welfare facilities that are suitable for its structure
aparting from the common practices stipulated by the Goverment. That policies has been
implenmented well or badly depending on the activities of Trade union in that
organization. Therefore, it’s neccessary to create the combination of all functional
department smoothly to get the best results and increase the job satisfaction
• Working environment: employees can express their dissatisfaction or try to escape
the unpleasant aspects that they can meet. Employees will aware clearly the balance of job
dimensions in the working place with the time and pleasant. The employees will feel
satisfied working, consider the company as the second home and perform their task more
effectively.
The research will carry out the measurement of job satisfaction with 7 dimensions:



Overview of BaoViet Insurance Corporation and Underwriting Management

Division
2.1.1. Introduction of BaoViet
BaoViet Insurance Corporation (BVI), being established in 1965, is a whollyowned subsidiary of BaoViet Holdings. The charter capital of BVI increased to VND2,000
billion in 2013 from VND1,800 billion in 2012; and reached VND 4,420 billion in early
2015. This increase of capital has made BVI being the non-life insurance company with
the largest chartered capital in the market, improved business performance, and driven
further developments in the future.
BVI has main product lines: medical, marine hull and cargo, motor, fire&
engineering insurance, aviation, and pilot agriculture insurance. Each business line
contributes 15% – 20% to total revenue and has a positive growth rate every year.
With over 50 years of establishment, BVI has grown dramatically: from a small
general insurance company first entering the Vietnam market in 1965 into one of the
largest insurance companies in the country with a network of 67 branches and nearly 300
customer support offices, employing more than 3,000 employees and 15,000 agents. BVI
is proud to be the first non-life insurer in Vietnam, and to be presented with many
prestigious awards by the State. BVI has played an increasingly important role in the
national economy and society:
• For customers, BVI has always stood from customers’ perspectives to serve their
increasingly sophisticated needs by providing comprehensive insurance products and
services. With the strong financial capacity, effective business management and claim
settlement, BVI enable to meet all insurance needs and handle claims of customers in a
prompt, timely and professional manner.
• For employees, BVI has built a performance-based culture, linked to a world class
performance management system and a competitive rewards structure, and continually
improved our recruitment, people training and development.

14

2015

2016

Figure 3.1: Revenue of BaoViet Insurance from 2012 – 2016
(Source: BaoViet’s annual report 2015-2016)
• Maintaining the leading position in non-life insurance market in Vietnam by
market share: around 24%

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