Nghiên cứu sản xuất chất màu thực phẩm từ hoa giấy

MEIHO UNIVERSITY
Graduate Institute of Business and Management

MASTERS THESIS

The Effectiveness of HRM
in an Import Export Joint Stock Company
in HCMC – Cosimex

In partial fulfillment of the requirements for the degree of
Masters of Business Administration

Advisor: Dr. Ching-Wen Mo
Co-advisor: Dr. Nguyen Minh Tuan
Graduate Student: Vu Quoc Thang

December, 2010




ACKNOWLEDGMENTS
Today, especially from 2006, when Vietnam becomes WTO membership; the
biggest problem that it has to face is How to successfully assimilate into worldwide
economy; in which, the factor of human resource management is one of the most
important.
The study on the personnel work below is a case one. I receive knowledge and
training from the Master of Business Administration (MBA) Program of Meiho
University (MU) and Hochiminh City University of Industry (HUI). Then I apply them
into the reality of human resource management of my company. Finally, I analyze,
recognize my own problems and go to conclusions and recommendations for my own

company.
I am very grateful for the dedication, and enthusiasm that I receive from MU and
HUI professors, who spend a lot of time and effort to teach and guide me, among them is
my Advisor, Dr. Ching-wen Mo.
I also appreciate directors, managers, and employees of my company for their
tightly cooperation to help me fulfill this subject.

I


The Effectiveness of HRM in an Import Export
Joint Stock Company in HCMC – Cosimex
ABSTRACT
Con Son Import Export Joint Stock Company (Cosimex) was founded on January
18th 2008. Previously, it was a state company, established in 1993, named Con Son
Import Export Company (Cosimex), and began the process of privatization from 2005.
From that time, Cosimex has to rearrange, to plan, to try to survive without any help from
the government. From that time, Cosimex has to learn the real lesson about sustainable
development; in which, one of the most important key is human resource management.
Besides, the domestic economy has to be rearranged quickly to assimilate into
worldwide economy. It requires managers and employees to have non-stop renovation, to
apply new scientific ways in management, to have proper business strategy, especially in
human resource strategy. The right human resource strategy that satisfies and encourages
employees will repair the company errors that exist, will turn company challenges into
opportunities, will make the company sustainably develop.
With knowledge through courses, through the accumulation and research, I would
like to do the research about employees satisfaction to Con Son Import Export Joint Stock
Company; in order to help all directors and managers can recognize the reality of
Cosimex human resource management; then can establish a strategy to improve the
human resource management as well as the company competitiveness in the world

markets.
In this study, I recommend suggestions to apply to my company PersonnelAdministrative Department, including: good resolution to internal relationships,
implementation a fairness in treatment about discipline and income policies, create an
comfortable working environment, set regulations to promote opportunities for employees
advancement, including training affairs.
Keywords: Vietnam, Hochiminh, MU, HUI, Cosimex.

II


The Effectiveness of HRM in an Import Export
Joint Stock Company in HCMC – Cosimex
Contents
ACKNOWLEDGMENTS ......................................................................................................... I
ABSTRACT..............................................................................................................................II
Contents .................................................................................................................................. III
Tables....................................................................................................................................... V
Figures..................................................................................................................................... VI
Chapter1 Introduction ............................................................................................................... 1
1.1 Background and Motivation ........................................................................................... 1
1.1.1 Company structure. .................................................................................................. 1
1.1.2 Labor structure......................................................................................................... 2
1.1.3 Motivation................................................................................................................ 4
1.2 Research Objectives........................................................................................................ 5
1.3 Research Scope and Limitations..................................................................................... 5
1.4 Research Method ............................................................................................................ 5
Chapter2 Literature Review...................................................................................................... 6
2.1 Overview of Human Resource Management.................................................................. 6
2.1.1 Definition. ................................................................................................................ 6
2.1.2 The goal of personnel management in enterprises................................................... 6

2.1.3 Personnel management roles. .................................................................................. 7
2.1.4 Trends and issues affect personnel management. .................................................... 8
2.1.5 Administration to meet workers requirement. ......................................................... 8
2.2 Theories of Human Satisfaction ..................................................................................... 9
2.2.1 Maslow’s theory. ..................................................................................................... 9
2.2.2 Alderfer’s theory.................................................................................................... 10
2.2.3 Herzberg’s theory. ................................................................................................. 11
2.2.4 McClelland’s theory. ............................................................................................. 13
2.2.5 Summary................................................................................................................ 13
2.3 Related Studies on Human needs and Motivation ........................................................ 15
2.3.1 Theory of hierarchy needs (Abraham Maslow). .................................................... 15
2.3.2 Expectations theory (Victor Vroom). .................................................................... 16

III


2.3.3 Two factors theory (F. Hertzberg). ........................................................................ 16
2.3.4 Theory of fair (The most important)...................................................................... 17
2.3.5 Related studies on motivation................................................................................ 18
2.4 Summary....................................................................................................................... 23
Chapter3 Research Methodology............................................................................................ 24
3.1 Research Process........................................................................................................... 24
3.2 Research Methods......................................................................................................... 24
3.2.1 Research on the qualitative one. ............................................................................ 24
3.2.2 Research on quantitative one. ................................................................................ 25
3.3 Research Framework .................................................................................................... 26
3.4 Sampling ....................................................................................................................... 27
3.5 Instrument Design......................................................................................................... 27
3.5.1 Building the measurement. .................................................................................... 27
3.5.2 Test validity and reliability. ................................................................................... 31

Chapter4 Research Results and Analysis................................................................................ 35
4.1 Analyzing Data ............................................................................................................. 35
4.1.1 Basic information analysis results. ........................................................................ 35
4.1.2 The correlations of variables.................................................................................. 36
4.1.3 Descriptive statistics on the factors affecting the employee’s satisfaction to the
company................................................................................................................ 38
4.1.4 Exploratory factor analysis (EFA). ........................................................................ 38
4.1.5 Linear Regression. ................................................................................................. 44
4.2 Findings and Empirical Results .................................................................................... 46
4.2.1 Factors that are the most influential to the employee satisfaction. ........................ 46
4.2.2 Factors that do not influence on employee satisfaction. ........................................ 46
4.2.3 Empirical results. ................................................................................................... 46
Chapter5 Conclusions and Recommendations........................................................................ 48
5.1 Conclusions................................................................................................................... 48
5.2 Recommendations......................................................................................................... 49
5.3 Limitation of the Study ................................................................................................. 51
References............................................................................................................................... 52
APPENDIX............................................................................................................................. 54
Attachment Verification Reliability Cronbach's Alpha .......................................................... 59

IV


Tables
Table 1-1 Qualification of Professional Staffs.....................................................................3
Table 1-2 Structure of Labor by the Senior Employees ......................................................4
Table 2-1 Comparison of the Theories ..............................................................................14
Table 2-2 Listed the Factors that Encourage Adapted by F. Herzberg (1966) ..................17
Table 2-3 The Changes in the People’s Individuality Adapted by Argyris (1995) ...........20
Table 2-4 The Motive Sanitation Adapted by Herzberg (1987) ........................................21

Table 3-1 Measurement of Salary and Policies .................................................................27
Table 3-2 Measurement of Working Environment............................................................27
Table 3-3 Measurement of Employees Awareness about Company .................................28
Table 3-4 Measurement of Employees Representation Oneself........................................28
Table 3-5 Measurement of Promotion Opportunities ........................................................28
Table 3-6 Fairness in Treatment Measurement .................................................................29
Table 3-7 Measurement of Working Evaluation ...............................................................29
Table 3-8 Measurement of the Individual Related to Work ..............................................29
Table 3-9 Relationship among Colleagues, Senior and Subordinate Measurement..........30
Table 3-10 Training Affair Measurement..........................................................................30
Table 3-11 Measurement of Employees Satisfaction to the Company..............................31
Table 3-12 Expert Comments to Questionnaire Adjustment.............................................32
Table 3-13 Reliability Questions .......................................................................................33
Table 4-1 Analysis Results Describing Information about Gender, Age, Education,
Current Job And Seniority ...................................................................................35
Table 4-3 Descriptive Statistics on the Factors Affecting the Employee’S Satisfaction to
the Company ........................................................................................................38
Table 4-4 Exploratory Factor Analysis Results of the Independent Variables..................39
Table 4-5 Results of Exploratory Factor Analysis the Dependent Variable......................42
Table 4-6 Summary Results of Regression........................................................................44

V


Figures
Figure 1-1 Cosimex Organization Structure ........................................................................2
Figure 3-1 Research Process..............................................................................................24
Figure 3-2 Research Framework........................................................................................26
Figure 4-1 Adjustment Model............................................................................................44

VI


The Effectiveness of HRM in an Import
Export Joint Stock Company in HCMC –
Cosimex
Chapter1 Introduction
1.1 Background and Motivation
1.1.1 Company structure.
Con Son Import Export Joint Stock Company (Cosimex) was founded on January
18th 2008. Previously, it was a state company, established in 1993, named Con Son
Import Export Company (Cosimex), and began the process of privatization from 2005.

Company Logo:
Company functions:
9 Import: Household goods, shoes, consumer products;
9 Export: Pottery product.
Cosimex is a small company (its share capital is only 700,000 US dollars) with a
small labor (only 142 employees). But, the activities through 17 years give the company a
well-trained group of employees. After privatization, Cosimex faces many problems and
challenges derived from the changes of ownership and the influence of globalization
when Vietnam becomes the WTO membership. It demands the staff to work out an
appropriate strategy to grow the company, include human resource management.
Organization Structure:
The Board of Directors: 3 persons;

1


General

Director

DeputyGeneral
Director-CFO

Sales Department

Hochiminh City
Branch

DeputyGeneral
Director-CEO

Accounting
Department

Vungtau Province
Branch

PersonnelAdministrative Depart.

Tayninh Province
Branch

Figure 1-1 Cosimex Organization Structure
1.1.2 Labor structure.
The structure of labor is divided as follows:
Female employees: 66 staffs (occupy 46.48% / total workforce).
Male employees: 76 staffs (occupy 53.52% / total workforce).
Long-Term Labor contract: 89 staffs.

Short-Term Labor contract: 53 staffs.
The average age of employees: 35 years old.
The Structure of labor by level:
University graduate: 58 staffs.
College graduate: 75 staffs.
Qualification for high school level: 7 staffs.
Qualification for secondary level: 2 staffs.

2


Table 1-1 Qualification of Professional Staffs
Order
Number

Name

Total
Staffs

Qualification of Professional
University
graduate

College
graduate

High
school level

Secondary
level

1

Directors of the Board

3

2

1

2

Sales Department

18

18

3

Accounting Department

8

6

2

4

Personnel - Administrative
Department

6

3

3

5

Hochiminh City Branch

40

14

25

1

6

Vungtau Province Branch

40

10

26

3

1

7

Tayninh Province Branch

30

7

19

3

1

TOTAL

145

60

75

8

2

To tell the truth, the Directors of the Boards just have enough skills to handle pretty
well the company to the near future only. In another hand, Cosimex still lack of
professional sales manager, marketing agent. The reason is that of the period when it was
a state company with non competitiveness in all kinds of its activities. Employees have
been trained not to match the reality. Almost All the department managers have good
skills in management, but mainly rely on experience than on knowledge from studying.
About the structure of labor by title and age:
The average age of employees in the whole company is 35 years old. Including:
Management group: 49 years old.
Direct business group: 35 years old.
Agent group: 30 years old.
According to the statistical data, the average age of all groups above is adequate.
Members of the Board of Directors are the oldest (49 years old), but still have abilities
and health to work for the company at least 10 more years.
About the structure of labor by the senior employees:

3


Table 1-2 Structure of Labor by the Senior Employees
Seniority
Under 2 years
From 2 to 5 years
From 5 to 10 years
From 10 to 15 years
Over 15 years

Quality of work
Simple
38
11
1
7
12

Professional
15
22
5
9
22

The employees have the seniority under 5 years are almost salesclerk (simple work).
Meanwhile, the rate of senior employees (more than 5 years) with professional work is
quite high. They have enough experience to handle well their work. They are precious
resources of the company.
1.1.3 Motivation.
In the current global market, three of the factors that form a successful company are:
worldwide accepted trade name, applied in reality Research and Development, and highgrade employees. Therefore, the managers must establish an effective human resource
management strategy.
Before 2006, when Cosimex was still a state company, most of the employees did
not have a spirit to work, and there was no working relationship among them as well. As
a result, working style was not really directed toward the customer.
After privatization, Cosimex has to carry out new policies in employee’s
management to encourage them, to promote them working with the most effective, and
also to attract talented agent.

However, The Staff of Personnel Administrative Department, who absorbs the old
knowledge and training, do not really appropriate to handle the new situation. It causes
many difficulties for the rearrange Cosimex organizational structure.
Therefore, the company must have an itinerary for its human resource management,
and rearrange the organizational structure to build an employees team with good
behaviors at work, flexible, be able to solve the tasks assigned, has ability to cooperate
with colleagues in performing company targets, has a will to advance, the ability to
quickly adapt to changes in tasks, work environment, and new technologies.
To settle theses problems, I would like to follow the research named “The
Effectiveness of Human resource Management in an Import Export Joint Stock Company
in Hochiminh City (Cosimex)” and hope it can provide my company a complete
4


suggestion to renovate the human resource management methods, to really recognize that
personnel belonging to the company is “great assets”, the most important factor for the
company to sustainably develop.

1.2 Research Objectives
Based on the theory of satisfaction of employees to the company and the study
results from the company before and after privatization, this thesis would evaluate the
effectiveness of human resource management of Cosimex Company after privatization:
X To identify the major factors affecting employee satisfaction to the company;
Y To measure the satisfaction level of employees to the company;
Z To detect mistakes in treatment policies in order to make them more appropriate;
[ To improve internal relationships and to help managers better understand their staffs so
they can act the best treatment to employees.

1.3 Research Scope and Limitations
9 This Study measures the satisfaction level of Cosimex Employees only;

9 Results on the same research in other Trading Companies may differ. It is required to
enlarge the Research to obtain the Popular Scientific Results.

1.4 Research Method
Combine qualitative and quantitative research:
We use the qualitative research methods to discuss the evaluation of satisfaction
of staff, included: The Directors of the Board, Directors and Managers of Cosimex Units.
At the meeting, we discuss, collect opinion, comment, evaluate to have adjustment
methods and additional variables; and measurement concepts research (using SPSS 14.0
software);
Quantitative research was done by directly interview with the staff by
questionnaires. This table is built on the basis of the qualitative research; the goal is to
measure the factors that affect satisfaction of employees; on the other hand, testing the
theoretical model set (using SPSS 14.0 software).

5


Chapter2 Literature Review
2.1 Overview of Human Resource Management
2.1.1 Definition.
French W.L. (1987) presented that human resource management is a general
activities plan, recruit, select, maintain, develop, encourage and create facilitate personnel
resources through organizations to achieve strategic goals and the future of the
organization. Sally Eastoe & Heather Russell (2008) explained that human resource
management is the process of managing people in organizations that considers the goals
of both organizations and individuals. It is related to using effecting levels and the ability
of people to achieve success for organizations, individuals and society.
Human resources including all individuals participating in any activities of
organization, regardless

of

the

role

they

do.

Organizations

can

be

manufacturers, companies, state agencies, universities, etc. They can be big or
small, simple or complex. Nowadays, organizations could also be a political
organization. Therefore, personnel management associates with every organization, no
matter it has administration department or not. Personnel management is one of the most
important functions of governance, spreading throughout the organization.

2.1.2 The goal of personnel management in enterprises.
Stakeholder model (also known as pyramid model) which is Stanford Research
Institute said that personnel management objectives are not only benefit toward an
individual group in the company, but also the harmonization and optimization among four
groups receiving benefits: Customers, Staff, Shareholders, and Environment (social and
ecological).
Personnel management has to be interested in three important issues as follows:

X Personnel management should focus on strategic vision (rather than response
and management).
Y The employee should be considered as resources (rather than cost factor).
Z Personnel function should be considered as senior manager task (rather than
expert advice).
Managers must help employees achieve personal goals. Otherwise, labor
productivity, quality of complete work would be reduced, employees may leave the

6


organization. Each individual has a goal itself, but for an organization, this goal is
measured by the satisfaction of the job (job satisfaction), it means the level of an
individual feeling positively or negatively to their work. This shows the level of their
attachment to the organization and active in work or not. Strongly attachment to the
organization makes someone feel himself a part of it. Active in work is a willing to work
hard and make efforts to exceed the average. To make staffs feel satisfy with jobs, an
organization must provide them with good work and working environment, and stimulate
them as well.
Above factors are issued as quality of work life (thereafter, QWL), that indicates
the quality of the overall experience of people in the workplace. QWL concepts tell
aspects of important social responsibility, because what happens to them in the workplace
also affects their individual lives outside and vice versa. Poor personnel management in
the workplace can reduce their comprehensive quality of life.

2.1.3 Personnel management roles.
The definition above presents the functions of personnel management. Now, we
explain its roles.
X Policy: Personnel department has a main role to propose policies related to
human resources in the organization and to ensure that policies will be enforced. These

policies must have ability to resolve differences, problems and help organization to
implement its objectives. Today, personnel department inclines to set up personnel
management policies or advice for senior manager.
Y Counseling: Personnel department has a role to counsel managers, employees
and labor union on solution to labor problems and dispute, such as: annual leave, leavebreaker, employees complaint against decisions, labor safety etc.
Z Services: The role personnel department to provide services to other departments
such as: employee recruitment, training, welfare etc.
Personnel department supports other departments in recruitment, training programs
based on the needs of each department or business objectives. Personnel department also
manages salary policy, the benefits as pension, insurance, labor safety, keeps and saves
staff records.
[ Inspecting: Personnel department has a role to inspect other departments in
achieving policies, programs about employees, and to study about the needs implement
the policy.
7


2.1.4 Trends and issues affect personnel management.
X Employee ability: in the global economy, education level, knowledge of staff is
constantly improving. Workers who are lack of skills and knowledge will be eliminated
or difficult to get jobs. In work, it affects the participation of workers to the management
task, affects satisfaction with their work as well as the expected rewards and treatment
from the organization.Unluckyly, in Vietnam, most of the youth labor forces are in this
case.
Y Workers quality of life: workers now consider work is only a part of overall
lifestyle. So according to them, salary is not only to maintain their life, but to complete
other life objectives or purposes. Today, the development of science and technology with
auto production lines easily makes workers feel bored at work. Labor efficiency will be
reduced without any deep concern about working condition at the factory.
Z Work stress: Hard working, noisy working,more than ten hours per day

working anxiety over job stability, etc cause work stress. This is an important aspect of
QWL. So far, there are many industrial attempts to change the layout, the work assigned
by plentiful jobs in order to reduce hard work. That means arranged and re-arranged work
to build the elements of movement in the job. For example, in Japan, workers will be
arranged from this department to other department within two to three years. This is
called diversification of work.
[ Company responsibility for society: Beside responsibility for the health, safety
of employees, companies are still responsible for the consumer in after-sales care,
righteous advertising, causing environmental pollution etc.
2.1.5 Administration to meet workers requirement.
The need to understand workers requirement will help to form a new basis for
recruiting, training, encouraging and promoting.
X In general, employees need following elements in work: security, respect
manner in treatment, chance to express their skills, appropriate working condition and
environment, stable working hour policy and recruitment.
Y About benefit and wage, workers require the followings: be paid adequately by
their contribution to the company, fair salary system, no bias policies about special
privileges or advantages, reasonable welfare paying; be managed by authority that has
ability to co-ordinate workers, to makes them feel their complete work is important and
necessary and expected, to be ready to listen to their opinions.

8


Z About promotion opportunities, workers need the followings: opportunity to
learn new skills, opportunity to be promoted and rewarded fairly, opportunity to have
training programs to advance, facilitation to recognize their perfomance, opportunity to
participate in setting up company objectives, opportunity to improve their living standards,
and opportunity to better their work in the future.

2.2 Theories of Human Satisfaction
According to McShane & Von Glinow (2003), satisfaction theories fall into two
main categories: content theories. Content theories explain the dynamics of employee
needs, such as why people have different needs at different times. By understanding
employee needs, we can discover the conditions that motivate that person. Process
theories describe the processes through which needs are translated into behavior. They
help us understand, predict, and influence employee performance, attendance, etc. In the
scope of the study, only content theories were used due to their relationship with the study
objective (identifying factors that influence College teachers’ job satisfaction.) The four
following theories are considered dominating content theories of satisfaction and are
written in the viewpoint of McShane & Von Glinow (2003).
2.2.1 Maslow’s theory.
One of the earliest and best well-known theories is needs hierarchy theory.
Developed by psychologist Abraham Maslow (1970), this theory condenses the numerous
needs that scholars have identified into a hierarchy of five basic categories. At the bottom
are physiological needs, which include the need to satisfy biological requirements for
food, air, water, and shelter. Next come safety needs – the need for a secure and stable
environment and the absence of pain, threat, or illness. Belongingness includes the need
for love, affection, and interaction with other people. Esteem includes self – esteem
through personal achievement as well as social esteem through recognition and respect
from others. At the top of the hierarchy it – actualization, which represents the need for
self – fulfillment – a sense that the person’s potential has been realized.
Maslow recognized that employee behavior is motivated simultaneously by several
need levels, but behavior is motivated mostly by the lowest unsatisfied need at the time.
As the person satisfies a lower – level need, the next higher need in the hierarchy
becomes the primary motivator. This concept is known as the satisfaction – progression
process. Even if a person is unable to satisfy a higher need, he or she will be motivated by
it until it is eventually satisfied. Physiological needs are initially the most important, and
9

people are motivated to satisfy them first. As they become gratified, safety needs emerge
as the strongest motivator. As safety needs are satisfied, belongingness needs become
most important, and so forth. The exception to the satisfaction – progression process is
self – actualization; as people experience self – actualization, they desire more rather than
less of this need.
Although Maslow’s needs hierarchy is one of the best-known behavior theories, the
model is much too rigid to explain the dynamic and unstable characteristics or employee
needs. Researchers have found that individual needs do not cluster neatly around the five
categories described in the model. Moreover, gratification of one need level does not
necessarily lead to increased motivation to satisfy the next higher need level. Although
Maslow’s model January not predict employee needs expected, it provides an important
introduction to employee needs and has laid the foundation for Alderfer’s ERG theory,
which has better research support.
2.2.2 Alderfer’s theory.
ERG theory was developed by organizational behavior scholar Clayton Alderfer
(2000) to overcome the problems with Maslow’s needs hierarchy theory. ERG theory
groups human needs into three broad categories: existence, relatedness, and growth (the
theory’s name is based on the first letter of each need). Existence need correspond to
Maslow’s belongingness needs. Growth needs correspond to Maslow’s esteem and self –
actualization needs.
Existence needs include a person’s physiological and physically related safety
needs, such as the need for food, shelter, and safe working conditions. Relatedness needs
include a person’s need to interact with other people, receive public recognition, and feel
secure around people (i.e. interpersonal safety). Growth needs consist of a person’s self –
esteem through personal achievement as well as the concept of self – actualization
presented in Maslow’s model.
ERG theory states that employee behavior is motivated simultaneously by more
than one need level. Thus, you might try to satisfy your growth needs (such as competing
an assignment exceptionally well) even though your relatedness needs are not completely

satisfied. ERG theory applies the satisfaction – progression process described in
Maslow’s needs hierarchy model, so one need level dominates a person’s motivation
more than others. As existence needs are satisfied, for example, relatedness needs become
more important.

10


Unlike Maslow’s model, however, ERG theory includes a frustration – regression
process whereby those who are unable to satisfy a higher need become frustrated and
regress to the next lower need level. For example, if existence and relatedness needs have
been satisfied, but growth need fulfillment has been blocked, the individual will become
frustrated and relatedness needs will again emerge as the dominant source of motivation.
Although not fully tested, ERG theory seems to explain the dynamics of human
needs in organizations reasonably well. It provides a less rigid explanation of employee
needs than Maslow’s hierarchy. Human needs cluster more neatly around the three
categories proposed by Alderfer than the five categories in Maslow’s hierarchy. The
combined processes of satisfaction – progression and frustration – regression also provide
a more accurate explanation of why employee needs change over time. Overall, it seems
to come closest to explaining why employees have particular needs at various times.
2.2.3 Herzberg’s theory.
Motivator – hygiene theory differs from Maslow’s and Alderfer’s needs hierarchy
models because it does not suggest that people change their needs over time. Developed
by scholar Frederick Herzberg (1987), this theory proposes that employees are motivated
primarily by growth and esteem needs, such as recognition, responsibility, advancement,
achievement, and personal growth. These factors are called motivators because
employees experience job satisfaction when the factors are received and are therefore
motivated to obtain them. Factor extrinsic to the work, called hygiene, affect the extent to
which employees feel job dissatisfaction. Hygiene includes job security, working
conditions, company policies, co-worker relations, and supervisor relations. Improving

hygiene will reduce job dissatisfaction, but hygiene will have almost no effect on job
satisfaction or employee motivation.
A unique characteristic of motivator – hygiene theory is that it does not view job
satisfaction and dissatisfaction as opposites. Improving motivation increases job
satisfaction, but it does not decrease job dissatisfaction. Improving hygiene reduces job
dissatisfaction, but it does not increase job satisfaction. Job satisfaction is produced by
growth fulfillment and other work content outcomes, whereas job satisfaction is produced
by the work context. Thus, Herberg’s theory differs from Maslow’s and Alderfer’s
hierarchy models by suggesting that growth needs represent the only source of motivation.
In more colloquial terms, a job with good hygiene factors like an air-conditioned
office, cushy benefits, and a lenient vacation policy will make employee show up for
work. However, employees will be unlikely to burn the midnight oil and think about their
11


work on the weekends unless the position also offers opportunities for intellectual and
professional growth. (This might be described as the difference between a “job” and a
“career”).
How does a manager create motivating factors and then employee satisfaction?
Three practices based on the motivation-hygiene theory are job enlargement, job
enrichment, and job rotation.
Job enlargement (also known as horizontal job loading) combines tasks into one job.
This approach might involve combining two or more complete jobs into one, or just
adding one or two more tasks to an existing job. Either way, the job’s skill variety has
increased because there are more tasks to perform.
However, job enlargement often fails to achieve the desired results. In too many
cases, job enlargement simply makes employee “busier” without making the job itself
more interesting or rewarding.
Job rotation is a systematic process of shifting workers from one specialized job to
another. The idea is to prevent boredom by periodically giving each employee a new set

of responsibilities. Job rotation is used by many organizations.
Job rotation can alleviate the “ruts” which inevitably occur when employee
performs the same set of tasks for years on end. However, this is not the only benefit of
the practice. Another advantage of job rotation is cross training. Employee who works in
multiple functional areas adds to his or her skills portfolio. This benefits the organization
as well as employee. An organization that has a large number of cross-trained employees
can flexibly respond to changes in its internal and external environment, shifting workers
to the areas in which they are needed most at a given time. The worker, meanwhile,
builds a resume that contains multiple areas of expertise – or at least multiple areas of
experience.
Job rotation is not, however, a panacea by itself. If the jobs in an organization are
intrinsically boring, then the enthusiasm that employee feels at the beginning of each new
assignment will quickly dissipate. Job rotation also decreases efficiency. When employee
begins a new assignment, it will take some time for him to master unfamiliar tasks.
Therefore, an organization that uses job rotation must take steps to ensure proper
employee training in each functional area.
Although more complex, job enrichment is considered to be superior to both job
enlargement and job rotation. Job enrichment uses vertical loading to expand employee
control over his work while simultaneously increase his range of responsibility. Job
12


enrichment can therefore be a source of motivational factors. Employee who is more in
control will have a greater chance of experiencing professional growth, recognition, and
achievement and the satisfaction that follows.
2.2.4 McClelland’s theory.
The motivation models described so far look at the individual’s primary or
instinctive needs and their relative importance in life. However, people also have
secondary needs or drives that are learned and reinforced through childhood learning,
parental styles, and social norms. Several learned needs can motivate us at the same time.

Psychologist David McClelland (2001) devoted his career to studying three secondary
needs that he considered particularly important sources of motivation: need for
achievement, need for affiliation, and need for power.
Need for Achievement (nAch). People with a high nAch want to accomplish
reasonably goals through their own efforts. They prefer working alone rather than in
teams and choose tasks with a moderate degree of risk (i.e. neither too easy nor
impossible to complete). High nAch people also desire unambiguous feedback and
recognition for their success. Money is a weak motivator, except when it provides
feedback and recognition. In contrast, employees with a low nAch have higher motivation
when money is used as a financial incentive.
Need for Power (nPow) refers to a desire to control one’s environment, including
people and material resources. People with a high nPow want to exercise control over
others and are concerned about maintaining their leadership position. They rely on
persuasive communication, make more suggestions in meetings, and tend to publicly
evaluate situations more frequently. Some people have a high need for personalized
power. They enjoy their power for its own sake and use it to advance their career and
other personal interests. It is a symbol of status and a tool to fulfill personal needs more
than a delicate instrument to serve stakeholders. Others mainly have a high need for
socialized power. They want power as a means to help others, such as improving society
or increasing organizational effectiveness.
2.2.5 Summary.
Suggested by Maslow’s satisfaction – progression process whereby people become
increasingly motivated to fulfill a higher need as a lower need is gratified, satisfaction is
best perceived when people get to the top of the hierarchy, which is esteem and self –
actualization; correspond to Alderfer’s growth needs and Heerberg’s motivators.

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Alderfer’s frustration – regression process whereby people progress to the next

higher need when a lower one is fulfilled, and regress to a lower need if unable to fulfill a
higher one proposes that different people have different needs at different times. Some
employees are ready to fulfill growth needs, whereas others at different times. Some
employees are ready to fulfill growth needs, whereas others are still struggling to satisfy
their minimum existence needs. Needs also change when people enter new stages of their
life, and rewards that motivated people at one time become less motivational.
Herberg’s motivator – hygiene theory indicates that financial rewards are not a
good source of or employee motivation. There are potentially powerful sources of
motivation, such as challenging assignments, learning opportunities, and praise from
colleagues and supervisors.
Table 2-1 Comparison of the Theories
Maslow’s needs
theory hierarchy
Self –
actualization

Alderfer’s ERG
theory
Growth

Herzberg’s motivator –
hygiene theory

McClelland’s theory
of learned needs

Motivators

Need for
achievement

Esteem

Need for power

Belongingness

Relatedness

Safety

Existence

Hygienes

Need for affiliation

Motivators (job
content, recognition)
motivate and satisfy,
whereas hygiene
factors (work relations,
work environment) can
create or reduce
dissatisfaction but do
not motivate

Some needs are
learned rather than
instinctive, and more

than one need can
motivate at the same
time.

Physiological
People try to
satisfy a higher
need when a
lower need is
fulfilled
(satisfaction –
progression)

Satisfaction –
progression ( see
above); also,
people focus on a
lower need if
unable to satisfy a
higher need
( frustration –
regression)

Source: McShane & Von Glinow (2003)
All four theories are well known; however, each has its own shortcomings and
strong points. Therefore, in the study, all four theories were used in order to supplement
and overcome each other’s shortcomings.

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In a short conclusion, the researcher wanted to have more viewpoints from different
theories so that the researcher can be helped to get more backgrounds for the factors that
will influence on the main factors that will be used for the whole study.

2.3 Related Studies on Human needs and Motivation
2.3.1 Theory of hierarchy needs (Abraham Maslow).
According to Abraham Maslow, “A Theory of Human Motivation”, human needs
are organized into five levels as following:
X Physical needs: the basic needs of human such as eating, wearing, and living...
have the highest strength to meet;
Y Safety needs: when the needs of the physical meet, the demand for security will
be outstanding;
Z Communication needs (social): demand will appear and become outstanding
when two requirements above are achieved, people will try to have good relations with
others;
[ Respected needs (feeling confident, prestige, power): people feel self-helpful
and influence of the environment surroundings, thus appear needs to be respected.
\ Self-assertion needs: when the respect beginning to be satisfied, the demand
self-assertion will become stronger, it is the highest demands level to increase the
maximum potential of human.
Five basic needs divided on two levels: a low-level is the physical needs, security
(safety); a high-level is the communication needs, the respected needs and self-assertion
needs. Hereby, the difference is the low-level needed to be meeting from outside, while
high-level needed is satisfy mainly by the inside of human.
Here, self-assertion is a desire to do something that people can achieve and also the
highest level in the needs level of people, especially in the context of social development
at the present. Everyone also wants others to recognize and acknowledge the effort of one.
For managers, employees of the striving ambition for the promotion opportunity is
motivating to be utterly dedicated to one’s work and the administrator need to note this

point, thus maintaining the excellent employees and long-term attachment and
wholeheartedly with their business.
As the same time, hierarchy needs theory of Maslow also pointed out that managers
must understand employee needs at any level if they want to encourage employees,

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thence have appropriate solutions to meet needs of employees and guarantee to achieve
the goal of the organization at once.
2.3.2 Expectations theory (Victor Vroom).
About expectations theory, Wayne & Noc., (1990) had brought out an approach to
try to answer the question: What factors affect the strength of demand? We have
confirmed previously that the demand is perceived to create acts of man. Promoting
created behavior in work increasing if a person aware of the relationship between efforts
and performs. Behavior was motivated continue to increased if there is correlation
between the good implementation of the work and results, or special awards if results or
prizes are highly evaluated.
Therefore, managers need to understand that towards their employees, if they work
well they may have early promotion, following is higher pay. If this happens the workers
will work more actively, on the contrary the motivating, the voluntary and trust will be
reduced.
Motivated by the personal towards the goal is the aspiration of the environment.
High prospects, the motivation will increase; the availability of purpose in the
environment may affect the power of the certain motivation. Besides, individuals behave
as promoting behaviors situations become new material received and become experienced
as the same time. If the material introduce early the impact of behavior for later is
growing. Behavior as long as it follows that will be bold definition, difficult to change.
This is the feature that the managers should take notice, because if it is understood
manager will not anxious about why young employees change personality easily than old

people? So, should invest and how much investment to old people? While, for the young
people, the investment not only less costly but results will be faster.
2.3.3 Two factors theory (F. Hertzberg).
Work and The Nature of Man (1966) pointed out Frederick Hertzberg developed
the theory of encouragement himself by proposed experts who working in industrial
enterprises listed the factors as they satisfy and the factors that make them are highly
encouraged. At the same time, ask them to list factors that they are not encouraged and
dissatisfied. Detection of F. Herzberg creates a big surprise because it upset common
awareness of us. We believe that the opposite of satisfied is dissatisfied and vice versa (i.e.
two states satisfied or dissatisfied).
From information gathered, F. Herzberg found that opposite with satisfied is
unsatisfied and opposite with dissatisfied is not dissatisfied. Factors related to satisfaction
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