Research about job satisfaction at sepzone linh trung (vietnam)

MASTER OF BUSINESS ADMINISTRATION
INTERNATIONAL PROGRAM

RESEARCH PROJECT
(BMBR5103)

RESEARCH ABOUT JOB SATISFACTION
AT SEPZONE – LINH TRUNG (VIETNAM)

STUDENT’S FULL NAME

: NGUYEN THE HUNG

STUDENT ID

: CGS00019367

INTAKE

: MARCH 2015

ADVISOR’S NAME & TITLE : NGUYEN THE KHAI (DBA)

July, 2016


ADVISOR’S ASSESSMENT

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ADVISOR’S SIGNATURE
(July 2016)

NGUYEN THE KHAI (DBA)


ACKNOWLEDGMENTS
I have deep gratitude for the people who have helped me complete my thesis. The
efforts of many people are needed to develop and improve this research.
Most of all, I would like to say a very big thank you to my thesis instructor NGUYEN
THE KHAI (DBA), a talented and passionate lecturer, for all the supports and
experiences he gave me.
I would like to thank all the people who contributed in some way to the work
described in this thesis and Sepzone – Linh Trung Company for permission the
employees answer the questions in the survey and support too much information
related to my research.
Finally, I would also like to say a heartfelt thank you to my Mum, Dad and my wife
for always believing in me and encouraging me to follow my dreams, for helping in
whatever way they could during this MBA course.
Once again, thanks for everything that helped me get to this day.
Nguyen The Hung Student

Kindest Regards,
Ho Chi Minh City, July 2016


CONTENTS

PART ONE

PART TWO

ABSTRACT

1

INTRODUCTION

2

Introduction of Sepzone – Linh Trung (Vietnam)

2

Vision, missions and core values

7

Vision

7

Missions

8

Core values

9

Organizational Structure

10

Research Introduction

11

Research problem statement

11

Research objectives

12

Research scope

13

Significance of research

13

LITERATURE REVIEW

14

Definition of Constructs

14

Overall Job Satisfaction

14

Job Role Discretion

14

Work Related Expectancies

15

Fairness in Skill-based Pay

16

Value Attainment

17

Some Theories of The Constructs

18

Maslow’s theory

18

Self-argument

19

Alderfer’s ERG Motivation Theory

19

Self-argument

20

Vroom’s Expectancy Theory

21

Self-argument

23


PART THREE

PART FOUR

PART FIVE

APPENDIX

Hypotheses

24

Research model

25

RESEARCH METHODS

25

Design template scale

25

Overall Job Satisfaction

25

Job Role Discrestion

26

Work-Related Expectancies

28

Fairness in Skill-based Pay

29

Value Attainment

30

Data collection progress

32

RESULTS

33

Cronbach’s Alpha standard

33

Cronbach’s Alpha of constructs

34

Statistics information

35

Descriptive statistics

35

Correlation statistics

36

Hypotheses testing Result

37

Hypothesis 1 proposed

38

Hypothesis 2 proposed

39

Hypothesis 3 proposed

40

Hypothesis 4 proposed

41

CONCLUSIONS

42

Limitation of research

42

Discussion and recommendations

42

REFERENCES

45

Appendix 1: Survey

48

Appendix 2: Presentation

55


FIGURE & TABLE
FIGURE
Figure 1

Maslow's Hierarchy of Needs

18

Figure 2

Alderfer’s ERG theory

20

Figure 3

Vroom-Yetton theory Model

21

Figure 4

Research model of Overall Job Satisfaction

25

Table 1

Overall Job Satisfaction Scale

26

Table 2

Job Role Discretion

27

Table 3

Work-Related Expectancies

28-29

Table 4

Fairness in Skill-Based Pay

30

Table 5

Value Attainment

31-32

Table 6

Data collection progress time table

32-33

Table 7

Cronbach’s Alpha - Internal Consistency

33

Table 8

Cronbach’s Alpha of Overall Job Satisfaction

34

Table 9

Cronbach’s Alpha of Job Role Discretion

34

Table 10

Cronbach’s Alpha of Work-Related Expectancies

34

Table 11

Cronbach’s Alpha of Fairness in Skill-Based Pay

35

Table 12

Cronbach’s Alpha of Value Attainment

35

Table 13

Descriptive statistics

36

Table 14

Correlation statistics

37

Table 15

Model summary of Hypothesis 1

38

Table 16

Coefficients of Hypothesis 1

38

Table 17

Model summary of Hypothesis 2

39

Table 18

Coefficients of Hypothesis 2

39

Table 19

Model summary of Hypothesis 3

40

Table 20

Coefficients of Hypothesis 3

40

Table 21

Model summary of Hypothesis 4

41

Table 22

Coefficients of Hypothesis 4

41

TABLE


Business Research Methods

Page 1
ABSTRACT

This purpose of this research is way to find the factors influence to the Overall Job
Satisfaction of employees working at Sepzone – Linh Trung.
This research project use Business Research Methods to determine Overall Job
Satisfaction and what other main factors that it influence job satisfaction. And this
research also was conducted by quantitative method with source data is surveys that it
issued by hand to hand to 375 employees of Sepzone – Linh Trung to collect the ideas
and comments of employees about overall job satisfaction.
The result of these surveys will be statistically analyzed by software SPSS version 20
(copyright of IBM). Hypotheses used this research includes five constructs: one
dependent construct (Overall Job Satisfaction) and four independent constructs (WorkRelated Expectancies, Job Role Discretion, Fairness in Skill-Based Pay, and Value
Attainment).
The results of this research can help the Executive Board of Sepzone – Linh Trung
improve effectiveness of human resource management and increase quality resource
based on overall job satisfaction of employees. Besides, it can help extend efficiency
and competitiveness of the field of infrastructure development of industrial zones.
Key words in this research: Overall Job Satisfaction, Work-Related Expectancies, Job
Role Discretion, Fairness in Skill-Based Pay, and Value Attainment and Sepzone –
Linh Trung.

Student: Nguyen The Hung (ID: CGS00019367)


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PART ONE: INTRODUCTION
1. INTRODUCTION OF SEPZONE – LINH TRUNG (VIETNAM)
Sai Gon - Linh Trung Export Processing Zone (Sai Gon EPZ) Management and
Development Joint Venture Company (for short as Sepzone – Linh Trung Joint
Venture Company) was established following License No.412/GP by the State
Committee for Cooperation and Investment (Now Ministry of Planning and
Investment) on August 31, 1992.

The Vietnamese partner is Sai Gon EPZ (now Saigon Industrial Park Development
One-Member Corporation Limited), the foreign partner is Strategic Development
International Corp. – SDIC (Hong Kong) and Velox Industries (H.K) Corporation
Limited (Hong Kong). Sepzone – Linh Trung JVC specializes in development and

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management infrastructure of Sai Gon - Linh Trung EPZ (now Linh Trung EPZ I) with
60 hectares of land in Linh Trung Ward, Thu Duc District, Ho Chi Minh City. Total

investment capital of the company is US$14 million; each party holds 50% share of
US$6 million legal capital.
On December 12, 1994, State Committee for Cooperation and Investment issued the
adjusted investment license No.412/GPDC and China United Electric Import And
Export Corp. (Beijing, China) (now is China National Electric Import And Export
Corp.) became the new foreign partner replaced for the old one.
Since 1995, in a land of rubber plantation, Sepzone-Linh Trung JVC carried out land
clearance, compensation and began the construction work of Sai Gon - Linh Trung
EPZ. Construction work of Sai Gon - Linh Trung EPZ infrastructure was finished in
2000 including internal road system with water discharge sewers, waste water
pipelines, water pipelines, electricity line, waste water treatment plant, water plant,
office building, customs office, landscaping etc. and leased out 100% of industrial land
area.
At present, there are 32 investors in the zone with total investment capital of US$ 248
million manufacturing the products of electric appliances and electronics, precision
machinery, footwear, garment, furniture etc. for export and local consumption. In
2011, total import export value reached US$1.3 billion and has created jobs for 49,000
labors.

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Linh Trung Export Processing Zone and Industrial Park (Linh Trung EPZ&IP)
consists of Zone I, Zone II and Zone III with total land area of 326.37 hectares. Total
investment capital of the project is USD 55,500,000.

Linh Trung EPZ&IP I is located in Linh Trung Ward, Thu Duc District, HCMC with
area of 62 hectares. It is 16 km from the center of Ho Chi Minh City, about 2km from
the railway station, 11 km from the ports, 20 km from Tan Son Nhat International Air
Port and adjacent to the National Highway (Trans-Asia Highway). It is an ideal land
for industry as the EPZ sits on a solid hill with strong soil, and an altitude of 19-20
meters. Linh Trung EPZ&IP consists of 2 parts: EPZ (52 hectares) and IP (10
hectares). From 1995 to 2000, upon the completion of site-clearance tasks, Sepzone –
Linh Trung (Linh Trung EPZ&IP owner) had carried out marketing activities
simultaneously with the pace of the construction of infrastructure and public facilities.
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Investors mainly come from Taiwan, Hong Kong, Korea, Japan in production of light
industry, export processing and machinery.
With construction of Linh Trung EPZ&IP I having basically completed, the JointVenture Corporation commenced the development for Linh Trung EPZ&IP II in May,
2000. Zone II, also located in Thu Duc district, has land area of 61.7 hectares; one half
the zone is reserved for export processing zone and the other for industrial park.
Construction of infrastructure commenced in November 2000 and by now has
basically completed. Currently, the occupancy reaches 85%, with 39 investors and
total investment capital of USD 74.9 million. There are 37 investors granted with
investment licenses, 30 enterprises in operations, and 5 enterprises under construction.
The year 2015 saw the export volume of USD 350 million, and over 35,000 jobs
offered to local laborers.

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Having experienced the smooth and successful operations of Zone I and Zone II, the
Management Board of the Joint-Venture Corporation has decided to develop Zone III
in the attempt to create favorable condition for the investment of Chinese enterprises
in Vietnam as well as to meet the demands of other foreign investors. After a period of
location studies, the Management Board has come to the resolution to sub-lease 203.8
hectares of land in the Trang Bang Industrial Park in Tay Ninh Province for the site of
Linh Trung EPZ&IP III. Zone III is on the border between Tay Ninh Province and the
Northwest region of Ho Chi Minh City. It is 37 km from Tan Son Nhat International
Airport, 42 km from Sai Gon Port. Zone III is ideal for industry with flat and even
terrain, an altitude of 5-8 meters, convenient road system.

The Vietnamese

Government has officially approved this project on 27 December, 2002. Currently, the
detailed design has been passed. The groundbreaking ceremony for the construction of
infrastructure took place on May 12, 2003; and it is planned to complete within 5
years. Zone III project with total investment capital of USD 29 million will compose
of EPZ&IP. Essential supporting services will be available for enterprises namely
dormitory, commercial center, health care, vocational school, park, sport club, etc…
Linh Trung EPZ&IP is considered to be one of the most successful industrial parks in
Vietnam; and it also enjoys a good reputation among the Asian investor community.
Export values in 2015 make up over 2% of total national export value; the jobs created
10% of the job opportunities in the foreign-invested section. Among 74 export
processing zones and industrial parks in Vietnam, Linh Trung EPZ&IP also leads in

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the rate of investors, export volume, export processing products and the number of
jobs created per hectare.
2. VISION, MISSIONS AND CORE VALUES
Vision

Become one of the most successful export processing zones of Vietnam.
Sepzone – Linh Trung has its relative vision, mandates, values, advantages
and disadvantages. When making strategic decisions about the company's
direction and scope, managers need to examine the organizational purpose,
vision and expectation for the future. Managers have to make sure that
commercial company should be high accountable to the owners first, then
that

conflicts

and

different

expectations

from

government

and

organizational are properly responded. I think company should use the
power/interest approach and tool for mapping and analysis of its strategy.
Understanding the managerial environment, managers will need to evaluate
the current context and trends of general environment for the company
strategic planning and operating, it includes the evaluation of local, regional
political stability, government' commitment to business, main economic
indexes, labor force, technological development and availability, legal
documents and finally environmental issues affecting business. With the
results of general environment analysis, managers are able to identify main
impact and challenges of Sepzone – Linh Trung.
Missions For society: creating jobs for the people, construction and development of
residential communities surrounding industrial zone. Import-export

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turnover of enterprises in Linh Trung industrial zone reached US $ billions
per year.
For employees: ensure stable incomes for employees, take care of life for
employees,

thence

employees

wholeheartedly

contribute

to

the

development of the company.
Infrastructure development: generally complete technical correction, have
some international standards especially roads, warehouses, electricity,
water, transport information, communication and financial service
providers, banks. Requirements for electricity, water, telephone, internet,
wastewater treatment system, roads in the area, internal lighting systems in
parks, fire protection systems and security protection always respond well
to investors. Construction of infrastructure projects in and outside Linh
Trung EPZ&IP concerned to ensure the construction and put into operation
according to the process synchronization. Industrial land situation for
investors are limited, lease costs are higher compared to other provinces in
the country, from the lessons of some neighboring countries: Thailand,
Taiwan, China… To build a high-rise building with many flours, it can be
hired by many enterprises, or save lands for investors. The more investors
lease areas, the more they make cheap products. Moreover, they can reduce
costs, enhance competitiveness, both conditions force companies to attract
infrastructure investment projects "clean and light".

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Core values
Contribute to society and demonstrate company social responsibility.
Take good care of enterprises and customers in Linh Trung export
processing zone (Foreign Direct Investment) with slogan ”we supply your
success”
Delivering Customer Value and Managing Marketing Performance. Sepzone - Linh
Trung need an appropriate targeting strategy due to different needs of Foreign
Investors. Appropriate promotions with segmentation' approach help Foreign Investors
not only to save costs, but also to provide desirable services and enjoyable prices. A
good understanding of existing and potential markets through assessing current and
potential market attractiveness, evaluating company and competitors' current in
Vietnam and potential strengths and weaknesses in serving a particular market, allow
the company to take competitive advantages. Company' brands are built from
knowledge, esteem, relevance and differentiation, expertise enhancing, attitude
improving for differentiation and success. Focus on developing workers' technical
skills as well as advanced skills based on strengthening the links between educational
institutions and enterprises to transform the current competitive advantage from lowskill/low-cost labor into a competitive advantage based on high-tech workers, at
appropriate cost. Company provides many utility services to attract workers, such as:
organize a full range of services to serve businesses and production processes of
investors as well as for accommodation and living of workers, dormitory area, medical
center, center for cultural activities of workers. Participate in the development of

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infrastructure projects outside Linh Trung EPZ&IP and residential relation serve
workers in industrial zones; recommended to build a service commercial building to
serve for employees in Linh Trung EPZ&IP and residential development around.
Labor supply, training, industrial supply food rations, supply of materials and raw
materials for production, purchase and sale of goods and supply warehouses, built
factories for rent, wake agency, providing transportation…
Organizational Structure

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Contact:

Linh Trung EPZ I
Linh Trung ward, Thu Duc district, Hochiminh city, Vietnam.
Tel: 84-8-3896 2356; Fax: 84-8-3896 2350
Linh Trung EPZ & IP II
Binh Chieu ward, Thu Duc district, Hochiminh city, Vietnam.
Tel: 84-8-3729 1287 – 3729 1283; Fax: 84-8-3729 1289
Linh Trung EPZ & IP III
An Tinh Commune, Trang Bang district, Tay Ninh province, Viet Nam

Tel: 84.66.3896 392; Fax: 84.66.3896 391
Website: www.linhtrungepz.com
3. RESEARCH INTRODUCTION
Research problem statement
The variety of service provision and utilities of Linh Trung EPZ&IP are criteria that
we are geared to meet the needs for expansion of existing investors. The recent

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economic downturn affects the attraction of foreign investors in Vietnam and the
increase of the establishment of industrial parks in the Ho Chi Minh City in recent
times led to fierce competition between the industrial parks together. Many industrial
parks cannot lease availability land, because the infrastructure system is not complete
as well, and it will certainly reduce competition with other places. Sepzone - Linh
Trung has many management staff, operation mechanism apparatus as well as the
technical facilities to serve management activities. Appropriate management will save
costs and attract quality investors and thereby improve financial efficiency to ensure
the initiative of capital. Experience in the construction and operation of industrial
parks, thereby ensuring the quality of the infrastructure are attractive enough to
investors.
In developing process, Sepzone – Linh Trung is facing many problems of human
resources management, and it isn’t suitable for company at present since policies and
regulations of company was promulgated in over ten years ago. A main problem that
Executive Board concerns is How to promote creativeness, enthusiasm of staffs, and
also retain key managers and key staffs.

Research objectives
This purpose of this research is way to find the factors influence to the Overall Job
Satisfaction of employees working at Sepzone – Linh Trung.
My research focus on retaining good employees and improve staff abilities are the
problem Executive Board trends to make sure staffs’ satisfaction to company in long
strategy goals with new project Commercial Building Services is building in Linh

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Trung Export Processing Zone. In addition to build high-rise workshop services for
foreign firms expanding production. So, this research goal determines the interaction
of factors: Job Role Discretion, Work-Related Expectancies, Fairness in Skill-Based
Pay, and Value Attainment on Overall Job Satisfaction in Sepzone – Linh Trung.
Whereby, it contributes to support Executive Board has suitable policies to make sure
stable activities and increases business scale of company in the future.
Research scope
The scope of this research is for the employees are working at Sepzone – Linh Trung,
includes: managers, supervisors, assistant, office staffs and all employees of
departments; not includes Board of Directors and Executive Board.
The scope of the survey is the entire 375 employees are working at three zones of
Sepzone – Linh Trung. This survey was conducted from 01 May 2016 to 31 May
2016.
Significance of research
This research will help Executive Board realize effects of how staffs’ satisfaction is. In
there, Executive Board will bring out policies, appropriate systems to create suitable

environment for each department as well as employees and also improving staffs’
abilities in company.

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PART TWO: LITERATURE REVIEW
1.

DEFINITION OF CONSTRUCTS

Overall Job Satisfaction
Cammann, Fichman, Jenkins, and Klesh (1983) developed this measure as part of the
Michigan Organizational Assessment Questionnaire (OAQ). In this measure three
items are used to describe an employee’s subjective response to working in the
specific job and organization. This is a global indication of worker satisfaction with a
job.
Due the popularity of job satisfaction within the field of occupational and
organizational psychology, various researchers and practitioners have provided their
own definitions of what job satisfaction is. However, the two most common definitions
describe job satisfaction as:
Job satisfaction has been an important focal point for organizational and industrial
psychology. In defining job satisfaction the reference is often made to Locke’s (1976)
description of job satisfaction as a “pleasurable or positive emotional state resulting
from the appraisal of one’s job or job experiences” (Jex 2002 p.116).
And “the extent to which people like (satisfaction) or dislike (dissatisfaction) their

jobs”
Job Role Discretion
It was developed by Gregersen and Black (1992), assesses the extent to which
employees believe their job role gives them discretion to make choices about how and
when things are done.
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The notion of discretion occurs when someone has the freedom and authority to take
action and is aware of this freedom (Finkelstein et al., 2009, p. 26; Hackman &
Oldham, 1975). A definition on discretion in the English Dictionary for Advanced
Learners (2001, p. 435) is: “if someone in a position of authority uses their discretion
or has the discretion to do something in a particular situation, they have the freedom
and authority to decide what to do”. It may occur in different forms like employee, job
or managerial discretion that all are used in the literature. This study takes the main
focus on job discretion that is involved with the extent of discretion that belongs to a
certain job. Job discretion can be seen as an extension of the concept of managerial
discretion. Furthermore, job discretion is closely related to the concept of job
autonomy. Both managerial discretion and job autonomy are discussed to provide
insights on the differences and similarities, resulting in better understanding of job
discretion.
Work Related Expectancies
One of the most widely accepted theories of employee motivation was developed by
Victor Vroom in 1964. Expectancy theory is based on the premise that a person will be
motivated to put forth a higher level of effort if they believe their efforts will result in
higher performance and thus better rewards. If we break down this definition, we can

see three key components, which include expectancy, performance and reward. Yale
University professor Victor Vroom is credited with developing the expectancy theory,
which is based on valence, expectancy and instrumentality. Valence refers to the level
of confidence an employee has to expect a desirable outcome for his/her actions and

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behavior. Expectancy is the outcome an employee anticipates in response to his/her
actions or behavior.
Expectancy theory proposes an individual will behave or act in a certain way because
they are motivated to select a specific behavior over other behaviors due to what they
expect the result of that selected behavior will be. In essence, the motivation of the
behavior selection is determined by the desirability of the outcome. However, at the
core of the theory is the cognitive process of how an individual processes the different
motivational elements. This is done before making the ultimate choice. The outcome is
not the sole determining factor in making the decision of how to behave.
Expectancy theory is about the mental processes regarding choice, or choosing. It
explains the processes that an individual undergoes to make choices.
"This theory emphasizes the needs for organizations to relate rewards directly to
performance and to ensure that the rewards provided are those rewards deserved and
wanted by the recipients."
Fairness in Skill-based Pay
This measure, developed by Lee, Law, and Bobko (1998), assesses perceived fairness
in a skill-based pay program. Skill-based pay systems pay employees for the range,
depth, and types of skills applied on jobs. Employees perceptions of the skill-based

pay program are likely to by influenced by their perceptions that certification
procedures are objective and consistent across people, times, and skills; include
opportunities for employees to ask questions about the decisions made; and
incorporate the use of accurate information.

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Value Attainment
It was originally developed by Rokeach (1973). The original measure was designed to
assess the importance ranking that a person assigned to terminal values and
instrumental values.
Values refer to stable life goals that people have, reflecting what is most important to
them. Values are established throughout one’s life as a result of the accumulating life
experiences and tend to be relatively stable. The values that are important to people
tend to affect the types of decisions they make, how they perceive their environment,
and their actual behaviors. Moreover, people are more likely to accept job offers when
the company possesses the values people care about. Value attainment is one reason
why people stay in a company, and when an organization does not help them attain
their values, they are more likely to decide to leave if they are dissatisfied with the job
itself.
The values a person holds will affect his or her employment. For example, someone
who has an orientation toward strong stimulation may pursue extreme sports and select
an occupation that involves fast action and high risk, such as fire fighter, police
officer, or emergency medical doctor. Someone who has a drive for achievement may
more readily act as an entrepreneur. Moreover, whether individuals will be satisfied at

a given job may depend on whether the job provides a way to satisfy their dominant
values. Therefore, understanding employees at work requires understanding the value
orientations of employees.

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2. SOME THEORIES OF THE CONSTRUCTS
Maslow’s theory
The Maslow’s theory is given by Abraham Maslow, who has explained the strength of
certain needs at the different point of time.

Figure 1: Maslow’s Hierarchy of Needs
Humanist psychologist Abraham Maslow theorized that all humans had certain needs
both physical and emotional that must be met in order to achieve self-actualization, a
state in which an individual can act at his or her full potential. His theory, known as
“Maslow’s Hierarchy of Needs” suggests that humans are self-motivated to meet
different levels of needs, focusing on higher, more complex levels of needs only after
satisfying each lower, more basic level. While Maslow’s theory can be criticized for

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its over-generalizations, Maslow makes an interesting point relevant to today’s
problems of poverty and hunger – a lack of basic needs such as food or shelter can
affect an individual’s personal growth and stability, and ultimately his or her ability to
get out of poverty.
According to Introduction to the History of Psychology by B.R. Hergenhahn, the
hierarchy is often visually represented by a pyramid with five levels, starting at the
base level, survival needs, moving upward through safety needs, belonging and love
needs, self-esteem needs, and finally the need for self-actualization.
Self-argument
Based on Maslow’s theory, I think when people satisfy their basic needs, they began to
think of other higher expectations, it will have a main impact on factors: Job Role
Discretion, Work-Related Expectancies, Fairness in Skill-Based Pay, Value
Attainment and Overall Job Satisfaction.
Alderfer’s ERG Motivation Theory (1969)
Clayton Paul Alderfer (was born on September 1, 1940 in Sellersville, Pennsylvania)
is an American psychologist who further developed Maslow's hierarchy of needs by
categorizing the hierarchy into his ERG theory.
This is a theory similar to the theory of Maslow's needs hierarchy, but there are some
differences:
-

The number of needs are reduced to three instead of five, which is the existing
needs (Existence need), solidarity needs (relatedness need) and development needs
(growth need);

Student: Nguyen The Hung (ID: CGS00019367)