ENHANCING EMPLOYEES’ JOB SATISFACTION AT CONSTRUCTION AND PROJECT MANAGEMENT NO 1. JSC

NATIONAL ECONOMIC UNIVERSITY
NEU BUSINESS SCHOOL

NGUYEN DUY CUONG

ENHANCING EMPLOYEES’ JOB SATISFACTION AT
CONSTRUCTION AND PROJECT MANAGEMENT NO 1. JSC

MASTER OF BUSINESS ADMINISTRATION THESIS

HA NOI – 2022


NATIONAL ECONOMIC UNIVERSITY
NEU BUSINESS SCHOOL

NGUYEN DUY CUONG

ENHANCING EMPLOYEES’ JOB SATISFACTION AT
CONSTRUCTION AND PROJECT MANAGEMENT NO 1. JSC

Major: Business Adminnistration

MASTER OF BUSINESS ADMINISTRATION THESIS
Supervisor: DR. NGUYEN QUOC DUY

HA NOI – 2022


ACKNOWLEDGEMENT
My sincerely thank to my supervisor – Dr. Nguyen Quoc Duy for his

support and guidance do that I could be highly effective throughout carrying this
thesis.
My deepest thank to all professors and teachers at the NEU Business
School for teaching and imparting me valuable business administration
knowledge. Being a student at the E-MBA Program is my pleasure.
My warmest thank to all member and the executive Board of PCM1
company, who have helped and facilitated me completing the study.
My thank to my family and friends for their support and encouragement
while doing this thesis.
Hanoi, August 20, 2022

Nguyễn Duy Cương


CONTENTS
ACKNOWLEDGEMENT......................................................................................3
LIST OF FIRGUES.................................................................................................6
LIST OF ChART.....................................................................................................7
LIST OF TABLES...................................................................................................8
EXECUTIVE SUMMARY.....................................................................................9
Chapter 1: INTRODUCTION...............................................................................1
1.1 Rationale.....................................................................................................1
1.2 Research objective......................................................................................2
1.3 Research questions.....................................................................................2
1.4 Research methodology...............................................................................2
1.5 Research scope............................................................................................6
1.6 Research structure.....................................................................................6
Chapter 2:
THEORETICAL BACKGROUND ON JOB’S
SATISFACTION......................................................................................................7

2.1 Definition of job satisfaction......................................................................7
2.2 Theories of job satisfaction........................................................................9
2.3 Importance of job satisfaction.................................................................19
2.4 Determinants of job satisfaction..............................................................22
2.4.1 Salary and Welfare................................................................................23
2.4.2 Promotion..............................................................................................25
2.4.3 Reward and Recognition......................................................................26
2.4.4 Leadership.............................................................................................27
2.4.5 Working Conditions..............................................................................28
2.5 Research Model and Scale.......................................................................30
2.5.1 Factors affecting employee‘s satisfaction............................................30
2.5.2 Hypotheses about the relationship between the independent variable
and the dependent variable............................................................................30
2.5.3 Measurement scale of variables...........................................................31
Chapter 3: ANALYSING PCM1 EMPLOYEES’ JOB SATISFACTION.........33
3.1 Introduction of Eurowindow Holding and Construction and project
management No 1 JSC.......................................................................................33
3.1.1 Introduction about Eurowindow Holding JSC and Construction and
Project Management No 1 JSC......................................................................33


3.1.2 Organizational chart.............................................................................36
3.1.3 Current policies and management practices of PCM1 related to
employee job satisfaction................................................................................36
3.2 Respondents' profile....................................................................................38
3.3 Scale verification..........................................................................................42
3.4 Exploratory Factor Analysis.......................................................................44
3.4.1 Factor analysis with the independent variables..................................44
3.4.2 Factor analysis with the dependent variables.....................................46
3.5 Regression analysis......................................................................................46

3.6 Influential factor analysis...........................................................................50
3.6.1 Analysis of Overall job satisfaction......................................................50
3.6.2 Analysis of Promotion...........................................................................51
3.6.3 Analysis of Reward and Recognition...................................................51
3.6.4 Analysis of Leadership..........................................................................52
3.6.5 Analysis of Working Condition............................................................52
3.7 Sumary of findings......................................................................................53
3.7.1 Analytical synthesis diagram................................................................53
3.7.2 Achievements.........................................................................................53
3.7.3 Shoricomings:........................................................................................54
3.7.4 Cause of Shortcomings..........................................................................56
Chapter 4: SOLUTIONS TO ENHANCE PCM1 EMPLOYEES’ JOB
SATISFACTION....................................................................................................58
4.1 Development orientation of PCM1.............................................................58
4.2 Solutions to enhance PCM1 employees’ job satisfaction..........................59
4.2.1 Solutions to enhance Leadership.........................................................59
4.2.2 Solutions to enhance Reward and Recognition...................................60
4.2.3 Solutions to enhance Promotion...........................................................60
4.2.4 Solutions to enhance Working Condition............................................62
References..............................................................................................................65
APPENDIX 1: SURVEY OF EMPLOYEE'S JOB SATISFACTION AT
PCM1...................................................................................................................... 68


LIST OF FIRGUES
Figure 1.1: Research Process.....................................................................................3
Figure 2.1: Abraham Maslow's Hierarchy of Needs (1943).......................................9
Figure 2.2: ERG theory of Alderfer (1969)..............................................................11
Figure 2.3: Herzberg's two-factor theory (1959)......................................................13
Figure 2.4: Theory X and Theory Y by Douglas McGregor (the 1960s).................15

Figure 2.5: Factors affecting employee‘s satisfaction..............................................30
Figure 3.1: Factors affecting employee‘s satisfaction..............................................53


LIST OF CHART
Chart 3.1: Organization Chart..................................................................................36
Chart 3.2: Statistics on Gender................................................................................38
Chart 3.3: Statistics on Age.....................................................................................39
Chart 3.4: Statistics on Qualification.......................................................................39
Chart 3.5: Statistics on Position...............................................................................40
Chart 3.6: Statistics on Department.........................................................................40
Chart 3.7: Statistics on Seniority.............................................................................41
Chart 3.8: Statistics on Income................................................................................41


LIST OF TABLES
Table 2.1: Attributes of "Salary and Welfare" factor................................................24
Table 2.2: Attributes of "Promotion" factor.............................................................26
Table 2.3: Attributes of "Reward and Recognition" factor.......................................27
Table 2.4: Attributes of "Leadership" factor............................................................28
Table 2.5: Attributes of "Working condition" factor................................................29
Table 2.6: Relationship between the independent variable and the dependent
variable.................................................................................................................... 30
Table 2.7: Measurement scale of variables..............................................................31
Table 3.1: Scale verification....................................................................................42
Table 3.2: Model summary of regression analysis...................................................47
Table 3.3: ANOVA of regression analysis...............................................................47
Table 3.4: Coefficients of regression analysis..........................................................48
Table 3.5: Analysis of Overall job satisfaction........................................................50
Table 3.6: Analysis of Promotion............................................................................51

Table 3.7: Analysis of Reward and Recognition......................................................51
Table 3.8: Analysis of Leadership............................................................................52
Table 3.9: Analysis of Working condition................................................................52


EXECUTIVE SUMMARY
Nowadays, Human resources are an important factor for a business's success,
because according to experts, competitors can "copy" strategies, business methods,
products and services, but talent cannot "copy" it. However, the current economic
downturn has led to a decline in revenue, a shrinking market, resulting in many
problems in human resources, such as: (1) Due to the impact of the covid 19
epidemic, the company must arrange for employees to take rotational leave or
unpaid leave; (2) Although KPIs are applied in job performance evaluation, a scale
suitable for each job position has not been built; (3) New leaders of some
departments usually only stick with the business for 3-6 months; (4) New
employees usually stick with the company for 6-12 months. Above problems reflect
the level of dissatisfaction of employees with their current job, the causes of them
can stem from factors such as: “Salary and Welfare”, “Promotion”, “Reward and
Recognition”, “Leadership” and “Working Conditions”.
According to the leader of the Human Resources Department: "PCM1's
leadership has also identified the problem and evaluated the causes to come up with
appropriate solutions.". The goal is to improve job satisfaction and increase work
motivation for current employees. In addition, new and improved policies attract
more talents joining the organization to contribute to the development of the
business. The company encourages employees who have the ability to conduct
evaluation studies and propose solutions to the management to solve the current
problems of the business. Besides, this is also a way for the management to collect
opinions and needs of employees. Based on the theoretical basis, combined with the
employee's resignation and lack of enthusiasm, are deeply rooted in dissatisfaction
with the job. Therefore, the author evaluates that the study of job satisfaction is the

key to helping businesses solve current problems at PCM1 which is urgent and has
practical significance.
The study was conducted to evaluate and identify factors affecting employees'


job satisfaction applicable for Construction and Project Management No 1. JSC.
Based on the analysis of the results, recommendations and solutions to improve
employee job satisfaction will be made. Around the world, there are many scientists
who have researched and evaluated the level of employee satisfaction proven the
relationship to influencing factors. Combined with the actual status of the
enterprise, the author proposes a research model on the impact of factors on
motivation on job satisfaction of PCM1 employees.
The study collects secondary and primary data from PCM1’s internal
information sources. Secondary data are the company's current policies on human
resource management, company records related to human resources such as training
courses, etc. Primary data includes survey by questionnaire, in-depth interviews
with each employee. The study carried out 200 questionnaires distributed to all
departments of PCM1 Company and obtained 191 questionnaires. Collected data is
processed by SPSS 20.0 software with reliability test, EFA test and multiple
regression model to analyze the impact of factors affecting job satisfaction of PCM1
employees.
The research results show that employees’ satisfaction is at medium level with
2.8 point at Linkert 5 level. The factors tested in the proposed model all have a
relative impact on the employee's work motivation, but there are 4 of them affecting
significantly job satisfaction. In which, “Leadership” is the greatest influence,
“Working Condition” is the lowest effect, “Reward and Recognition” &
“Promotion” have medium impact and the factor is “Salary and Welfare” need to be
considered and investigated further in other studies. There are four reasons leading
to this situation, including (1) Management has not really paid attention to the level
of employee satisfaction, (2) The company has not developed a recruitment and

training policy for core personnel in the long term, (3) Remuneration policies and
working environment at the company are still inadequate during the implementation
process, (4) The leadership style is still conservative and mechanical. These are the
central point that businesses need to address to overcome the current problems of


the business.
Based on all the above results, the author propose some recommendations to
improve job satisfaction of PCM1 employees. Firstly, improving the relationship
between employees and employers. Secondly, Improving issues so that policies can
be applied in practice and implementation Thirdly, making detailed annual training
plans and regularly organizing training courses for employees with relevant
knowledge about business and application software at work. Finally listening
employees' opinions to continue to improve the safe and better working
environment. By applying these solutions, PCM1 can increase employee
motivation, attract high-quality human resources, and improve labor productivity
and efficiency.


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CHAPTER 1: INTRODUCTION
1.1 Rationale
In the current period, the perception of business managers towards employees in
the enterprise has had a great change. Human resources are an important factor for
the success of an enterprise, because according to experts, competitors can "copy"
strategies, business methods, products, services, but talented people. cannot be
"copy". This is an extremely valuable asset and resource that determines the success
or failure of a business.
First of all, in the past 100 years, there have been a lot of research works carried

out with different scales and research methods worldwide on the relationship
between job satisfaction and efficiency. activities of the organization and most of
those studies show a positive relationship between the two factors. Among them are
the research groups of De Dreu & Beersma in 1997; Baard & Dect 2004,… with the
method of data collection by questionnaire and data processing by SPSS software.
Or the 2004 study by Saari & Judge by the method of factor analysis, correlation
analysis and regression analysis and the study by Indermun & SaheedBayat in 2013
with the analytical method using the 0-order correlation and Hierarchical regression
analysis gave similar results.
The results of studies taking place in different time points, places and extremely
diverse research methods are testament to the interrelationship between job
satisfaction and performance.
In addition, the Construction and Project Management Joint Stock Company No.
1 (PCM1) also encountered a number of situations such as employees only sticking
with the company for a short time (under 02 years), some departments were always
in poor condition. staff shortage or continuous recruitment of new personnel.
Especially in the two years from 2020 to now, due to the impact of the COVID-19
epidemic, which has adversely affected income, remuneration and workload, the
shortage of personnel has become even more serious. According to internal statistics
of the Human Resources Department, the number of human resources before the


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pandemic occurred met about 80% of the needs of the entire organization. And this
number at the present time (March 2022) is only 70%. At the same time, the lack of
commitment to the business comes from both middle management and ordinary
employees. The above issues have partly shown dissatisfaction from employees
with the company's policies and human resource management.
PCM1 is a growing business, seeking and asserting its position in the market.

Along with the requirements of future business strategy orientation, the company
needs to pay more attention to human resource management, which is still revealing
many weaknesses. The study of the job satisfaction level of PCM1 employees is
practical and necessary to provide solutions in line with the goals of maintaining
and developing current human resources, and attracting more quality employees.
contribution to building the organization.
1.2 Research objective
Research achievements of the article should achieved the following:
- Review literature to identify factors affecting employees' job satisfaction
applicable for the Construction and Project Management No 1. JSC.
- Analyse PCM1 employees' job satisfaction.
- Suggest solutions to enhance PCM1 employees' job satisfaction.
1.3 Research questions
In order to achieve the above achievements, the author needs to provide answers
to the following questions
- What are possible factors affecting PCM1 employees’ job satisfaction?
- How is the job satisfaction of PCM1 staff and affected by what factors??
- What solutions are offered to improve the job satisfaction of employees at
PCM1??
1.4 Research methodology
1.4.1 Research process


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Building a questionnaire
Testing investigation
Asking an expert

Research O bjectives

Theoritical
Background

Adjusting the questionnaire

Data collection

Collecting prim ary data
Collecting secondary data
Cronbach alpha, EFA
Data analysis

M ultivariate regression test

Conclusion and
Suggested solutions

Figure 1.1: Research Process
Source: The author’s consumption
1.4.2 Data collection method
This thesis combined both of Qualitative research method and Quantitative
research method to collect and analyze survey data, as well as test the proposed
model. Both of Qualitative research method and Quantitative research method were
implemented through analysing the collection of Secondary data and Primary data.
Specifically, the research process was conducted according to the following
steps:
Secondary data collection
Collecting data from external sources of journal articles and review articles
about the construction industry and company in Internet. Additionally, Internal
sources are taken from documents, statistics and internal information of PCM1

JSC, such as: Regulations on emulation and commendation (843/2021/EWH –
promulgating:

06/08/2021),

Training

Regulations

(665/2020/EWH

–


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promulgating: 05/11/2020), Labor regulations (374/2020/EWH – promulgating:
13/08/2020)
Primary data collection
Primary data used for this study were collected from:
In-depth interview
Qualitative research methods not only answer the what, where, and when
questions but also the why and how questions. Therefore, in this study, the
qualitative method is carried out through in-depth interviews with 04
employees including the Director of Human Resources, the HR specialist, the
Director of the Project Management Department and the staff member.
Progress

monitoring

department

of

the

Construction

and

Project

Management No. 1 Joint Stock Company.
The purpose of in-depth interviews is to determine the characteristics and
work characteristics of each department and find out attributes to measure
job satisfaction. Through the interview, the author has approached with their
subjective opinions on the current situation, the causes of dissatisfaction,
orientation with human resource policies and views on the solutions offered
in the research.
The data collected from the questionnaire only represents the state at a
point in time without specifying the specific context to interpret the meaning
of the survey results. Therefore, in-depth interviews were carried out to
understand more deeply the influencing factors and the suitability to the
company's working environment.
Questionnaire survey
Releasing 200 questionaires in online and offline method to the
employees of PCM1. The traditional method of distributing questionnaires at
the company's office to employees are the main method applied for almost
samples in this survey. Besides, survey participants are contacted by phone,
email to fill the questionnaires as short interview or answered by google

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form observation in online.
Survey participants: Employees currently working at PCM1
Survey objective: Assess the current status of employee satisfaction and
determine the factors affecting it at the Construction and Project Management
Joint Stock Company No. 1..
Sample size and sampling method: The study conducted a stratified
sampling method to select 200 people including ordinary employees and leaders
from all departments in the company.
Survey format: The author released 200 online and offline questionnaires for
the staff of PCM1. The traditional method of distributing questionnaires at the
company's office to employees was the main method applied to most of the
samples in this survey. In addition, survey participants were contacted by phone
or email to fill out the questionnaire in the form of a short interview or answer
by observing the form on online google.
Questionnaire design: The initial questionnaire was designed based on the
results of a number of previous scientific studies to determine the factors that
can affect the employee's satisfaction with the job. The mentioned factors
include: “salary and bonus”; “working conditions” (Kumar, 2014), “reward and
recognition” (Greek & Usman, 2010), “Leadership style” (Becker & Gerhart,
1996) and “promotion opportunities” (Markos & Sridevi, 2010)
After conducting a trial survey with a group of 20 people representing the
survey sample and testing the model using SPSS 20.0 software, the author
found that factors such as “Salary and Welfare”, “Working conditions”,
“Reward and Recognition”, “Leadership” and “Promotion”

had impact on

employee satisfaction. Combined with the in-depth interviews, the interviewees
all agreed that factors had an impact on their job satisfaction.
The answers to the questions are designed according to the Linkert scale of 5
increasing levels as follows: Strongly Disagree (1 point); Disagree (2 points);
Neutral (3 points); Agree (4 points) and Strongly agree (5 points)


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1.4.3 Data analysis
Using the Cronbach’s Alpha coefficient, Explore factor analysis method
(EFA. method), Regression Analysis to verify the level of the affecting
factors in Job Satisfaction.
The survey results were descriptive statistics using Excel software.
Collected data will be analyzed by SPSS 20.0 software for the purpose of
checking Cronbach alpha coefficient, total variable correlation and
eliminating variables with small weight. At the same time, the multivariable
regression equation testing method is also used to test the appropriateness of
the model as well as the theoretical correlation value.
1.5 Research scope
Research object: Job satisfaction and the factor affecting to job satisfaction of
employees of PCM1 Company's management departments.
Tíming: Secondary data was collected from 2019 to 2022.
Primary data was collected from 1st October 2020 to 15th March 2021.
Location: The research was implemented at 2 Ton That Tung, Dong Da district,
Ha Noi, Viet Nam.
Content: Enhancing satisfaction with job of PCM1’s employee.
1.6 Research structure
The thesis consists of four Chapters:

 Chapter 1: Introduction
 Chapter 2: Theoretical background on job’s satisfaction
 Chapter 3: Analysing PCM1 employees’ job satisfaction
 Chapter 4: Solutions to enhance PCM1 employees’ job satisfaction


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CHAPTER 2: THEORETICAL BACKGROUND ON JOB’S
SATISFACTION
2.1 Definition of job satisfaction
Prior to the 1990s, it was believed that the organization mainly depended on
external sources to generate profits. But high quality products and right
requirements cannot meet the needs of customers without human resources
dedicated to the job. And employee satisfaction is one of the factors that support the
organization to enjoy profits. So what is called job satisfaction? In the past, many
researchers have given their views on this concept.
One of the first and most cited job satisfaction definitions is Robert Hoppock
(1935, cited by Scott et al., 1960). Hoppock said that measuring job satisfaction in
two ways:
(a) measure job satisfaction in general.
(b) measure job satisfaction in various job related aspects.
He also said that job satisfaction in general is not merely the sum of the
satisfaction of different aspects, but job satisfaction in general can be considered as
a separate variable.
The overall satisfaction level at work:
Victor Vroom of the Yale School of Management in 1964 stated that Job
satisfaction is an orientation of the emotions that employees have towards the
role they are performing in the workplace. In other words, job satisfaction refers
to “how well results meet or exceed employee expectations”. He also believes

that it is an essential ingredient to motivate and motivate employees towards
better performance.
Weiss (1967) defines that job satisfaction is an attitude of work expressed by
feelings, beliefs and behaviors of workers.
Hackman và Oldham (1975), employee satisfaction is a value chain of
awareness and experience that incorporates core job characteristics such as job


8

skills, job nature, job importance, decision making and countermeasures.
Regenerating work motivation.
Locke (1976) argues that job satisfaction is understood as an employee
'enjoyment of their job.
Quibb and Staines (1979) suggest that job satisfaction is a positive response
to work.
Spector (1997) job satisfaction is simply how people like their work and the
aspects of their work. Because it is a general judgment, it is an attitude variable.
Ellickson and Logsdon (2002), job satisfaction is generally defined as the
degree to which employees like their jobs, which are attitudes based on
employees' perceptions (positive or negative) about their job or working
conditions. To put it more simply, the more the working condition meets the
needs, values and character of the employee, the higher the job satisfaction.
Kreitner and Kinicki (2007) job satisfaction primarily reflects the degree to
which an individual enjoys his or her job. That is the emotion or emotion of that
employee for his or her job.
Satisfaction level with the work components:
Smith, Kendal and Hulin (1969), the level of satisfaction with the
components or aspects of a job is the attitude that influences and acknowledges
employees' different aspects of work (nature of work; training and advancement;

their superiors; colleagues; salary).
Schemerhon (1993, cited by Luddy, 2005) defines job satisfaction as an
emotional and emotional response to different aspects of an employee's job.
Thus, it can be seen that many definitions of the concept of "job satisfaction"
have been given by researchers, however, within the scope of this thesis, the author
thinks that job satisfaction is the like the nature of the work assigned and the feeling
of satisfaction when the workplace expectations of employees are met. These
desires can be salary and welfare; the possibility of career advancement or
recognition from colleagues, leaders, working condition, etc. Satisfaction stems


9

from three possibilities: from the difference between what the job provides and
what the individual expects; from the extent to which a job fulfills an individual
need; and from the extent to which other individual values are met.
2.2 Theories of job satisfaction
Maslow's Hierarchy Theory (1943)
Psychologist Abraham Maslow (1908-1970) is considered one of the pioneers
of the school of humanistic psychology, this school is considered the third force
when the world At that time, the world was aware of two main schools of
psychology: Psychoanalysis and Behaviorism.
In 1943, he developed one of the theories whose influence is widely
recognized and used in many different fields, which is the "hierarchical theory of
human needs". Maslow's hierarchy of needs theory can be summarized as
follows: (1) Human beings have wants and desires which, when unsatisfied, may
influence behavior, (2) Differing levels of to human life are recorded in a
hierarchical structure of needs, (3) Needs at higher levels in the hierarchy are
held in abeyance until lower levels needs are at least minimally satisfied and (4)
Needs at higher levels of the hierarchy are associated with individuality,

humanness and said health. His research suggests that in order for higher-level
needs to appear, lower-level needs must be satisfied first.


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Figure 2.1: Abraham Maslow's Hierarchy of Needs (1943)
Source: Maslow's Hierarchy Theory in 1943
Maslow's hierarchical demand theory is applied in meeting employee
satisfaction: Biological and safety needs are expressed through income and
welfare. Social needs and respect are expressed through the relationship between
superiors and colleagues. And the need to express yourself is expressed through
the element of autonomy at work
Although Maslow's hierarchical scale was built in 1943, its application in
management is still highly appreciated by managers around the world in
improving and satisfying employee satisfaction. Business leaders can apply
flexibly to suit the conditions of the business. Maslow's hierarchy of needs
theory has shown that, in order to motivate employees, managers must
understand what level of need they are at. From there, managers must come up
with appropriate solutions to satisfy the needs of employees and at the same time
ensure organizational goals are achieved. Therefore, managers must constantly
examine what urgent needs will motivate employees and how to motivate them.
When Maslow's hierarchy of needs is applied to employees' job needs,
biological and safety needs are expressed through income and benefits. In order
for employees to further develop their abilities, the company must first satisfy
their basic needs such as: Salary, reasonable remuneration, etc. Social needs and
respect are shown. through the relationship between superiors and colleagues.
And the need for self-expression is expressed through rewards and recognition.
Specifically applied in corporate governance: The employee's income needs to
be done and provided enough for employees to work with peace of mind; For

the 3rd and 4th floors, the company should create and apply human resource
management policies between all levels of employees as well as build
relationships between members in the business. In today's businesses, they often
organize their employees to participate in team building activities, travel, etc. to
satisfy the needs at this level and build a spirit of solidarity among employees.


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pellets together. For the last tier requires proper recognition and reward for each
employee's contribution.
ERG theory of Alderfer (1969)
ERG theory is a theory in psychology proposed by Clayton Alderfer. Clayton
Alderfer developed Maslow's Hierarchy of Needs into a three-factor motivation
model known as the ERG model. In this model, the letters E, R, and G each
represent a different human need: to exist, to relate, and to grow. The ERG
model is a content theory of motivation.

Figure 2.2: ERG theory of Alderfer (1969)
Source: ERG theory of Alderfer in 1969
In Maslow's model, individuals remain at a fixed level of need until they
satisfy that need. This means that individuals in the workplace should aim to
satisfy their current needs and that leaders and managers should focus on
helping their team members achieve a certain level of need. specific demand at a
time.
However, Alderfer's ERG Theory of Motivation drives this thinking.
According to Alderfer's model, the needs of workers can also occur at all three


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levels at the same time, and one need can be compensated for by the other if it is
not satisfied by the worker or the high need is not met. satisfied, the desire to
satisfy a lower level of need will increase. For example, an employee is not
satisfied with the level of difficulty of the job they are doing but on the contrary
they are compensated when receiving commensurate salary and benefits. Its
suitability even if the high-level needs are not satisfied, the job still ensures the
low-level physiological needs, the individual will focus on these needs.
Therefore, individuals should not focus on one level of need at a time. Instead,
they may want to balance their momentum across levels. Similarly, leaders
should not focus on helping their team members satisfy one level of need at a
time. Instead, they should be aware of the mix of needs that people might have
and help their team members progress in relation to the mix of needs, which will
change change over time.
Thus, Alderfer's ERG theory is different from Maslow's theory of needs, three
needs are considered on three aspects and all appear at the same time and are
applied to measure employee satisfaction.
Herzberg's two-factor theory (1959)
This theory was proposed by Frederick Herzberg - a psychologist interested
in the correlation between employee attitudes and work motivation and is one of
the most important theories related to motivation and satisfaction. at work (Dion,
2006). This theory has been and is being widely applied by business managers.
To develop the two-factor theory, Herzberg interviewed 203 mathematicians and
engineers, mainly based on survey results and investigative analysis conducted
in Pittsburgh, Pennsylvania, USA. The selection of the above two subjects for
interview is explained by the importance of these occupations in business
activities in the US. Herzberg's discovery came as a big surprise because it
upended conventional wisdom. Managers often think that the opposite of
satisfaction is dissatisfaction. But Herzbeg argues that the opposite of
dissatisfaction is not satisfaction but not dissatisfaction and the opposite of

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satisfaction is not dissatisfaction but dissatisfaction. Factors related to job
satisfaction are called motivators - internal factors. Factors related to
dissatisfaction are called Hygien Factors - extrinsic factors.

Figure 2.3: Herzberg's two-factor theory (1959)
Source: Herzberg's two-factor theory in 1959
Maintenance factors are factors that cause dissatisfaction in the workplace.
They are factors external to or independent of the work; and is related to things
like wages, job stability (ability of employees to keep their jobs, not get fired),
corporate policies, working conditions, leadership competence and relationships
between supervisors, subordinates and co-workers. According to Herzberg, these
factors do not motivate employees. However, when they are flawed or
incomplete, retention factors can make employees very unhappy.
The second group is motivational factors. They are tied to employee
motivation and arise from the intrinsic conditions of the job, which depend on
the job itself. Factors of motivation include responsibility, job satisfaction,
recognition, achievement, growth and promotion opportunities.
Managers must ensure that they provide enough of the factors that maintain
and build employee satisfaction or motivation. In essence, retention factors are
necessary to ensure subordinates are not disgruntled, and motivation is necessary


14

to push employees to work towards higher levels of performance.
In fact, many groups choose two-factor models to conduct research and test.

Although the results are not exactly the same as Herzberg's due to differences in
occupational characteristics, research subjects and labor intensity, the above
theory is still a valuable and widely accepted reference model.
Research of Foreman Facts (1946)
Research on employee satisfaction includes 10 motivating factors as follows:
Appropriate regulations: Define clear responsibilities, fair and consistent
discipline throughout the organization, discipline implemented in a way that
motivates workers rather than frustrating them.
Empathy with the individual problems workers: The superiors realize that
employees are having problems and ready to help.
Interesting work: Challenging work, creating opportunities for employees
to learn and develop.
Participate and share in the work: Workers can exchange, debate, solve
problems, plan, share information, ideas, work experience. Workers want to
be connected, feel involved, shared by their superiors whether they are
feeling frustrated or excited about the project they are doing, participating in
making decisions related to themselves, being shared. ideas and be cared for
by others.
Stable job: (the position of the employee) is important for the
organization, the operation of the organization is stable, the financial situation
is good.
Working conditions: Safe working environment, adequate tools to work,
reasonable working hours, happy and well-organized workplace.
Salary: The compensation is at least worthy of the results of work, the
salary is high compared to the general level of the market.
Recognized: Employees are rewarded for part-time jobs, collective
recognition for what they can do.