A study job satisfaction of highlands coffee s employees

RESEARCH PROJECT
(BMBR5103)

A STUDY ON
JOB SATISFACTION OF
HIGHLANDS COFFEE JSC’S
EMPLOYEES

STUDENT’S FULL NAME

:

VO THI KIM HOA

STUDENT ID

:

CGS00019895

INTAKE

:

SEPTEMBER 2015

ADVISOR’S NAME & TITLE :

NGUYEN THE KHAI (DBA)

March 2017

Advisor’s assessment
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Advisor’s signature

Nguyen The Khai (DBA)

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ACKNOWLEDGEMENTS
First of all I would first like to thank my thesis advisor DBA. Nguyen The Khai for
his whole-hearted guidance, his valued comments and quick responses throughout my
dissertation. He always opened to share his knowledge and advised me the best
solution whenever I ran into a trouble spot or had a question about my research or
writing. He consistently allowed this paper to be my own work, but steered me in the

right the direction whenever he thought I needed it. I am really happy and fortunate to
carry out this study under his guidance and supervision.
Having this research completed, I do appreciate great encouragement from Mr. Le
Thai Anh and his team throughout my learning and research time. I have been helped
during the survey from respondents. I would like to extent my thanks to all of them
who arranged their time to reply the questionnaire. Without their passionate
participation and input, the validation survey could not have been successfully
conducted.
Finally, I must express my very profound gratitude to my parents and to my husband
for providing me with unfailing support, continuous encouragement and best
inspiration throughout my years of study, particularly thanks to my colleagues and my
subordinates who take time to talk and discuss any relevant issues with me and support
me the time through the process of researching and writing this thesis. This
accomplishment would not have been possible without them. Last but not least are my
lovely thanks to my two children who give me the strength and determination to
complete this research.
Vo Thi Kim Hoa

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Table of Contents
ABSTRACT

1

PART 1: INTRODUCTION:

2

History:

2

Scope of business:

3

Organization Structure:

4

Corporate level strategies:

4

Highlands Coffee Business Unit Structure:

6

Vision, Mission and Core Values:

6

Legal Entity:

7

Brand Identity Standards:

7

Research problem statement

8

Research objectives:

9

Scope of Research:

10

Significances of research

10

PART TWO: LITERATURE REVIEW
Definition of construct:

10
11

Job Satisfaction:

11

Theories of job satisfaction

13

Content theories of job satisfaction

13

Maslow’s hierarchy of needs

14

Herzberg's Two-factor or Motivational-Hygiene Theory:

15

Process or expectancy theories of job satisfaction

16

Variables influencing job satisfaction

17

Dimensions of job satisfaction:

18

Work – Related Expectancies

25

Perceived Person - Organization Fit:

27

Performance Appraisal System Knowledge

28

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Work-related Depression, Anxiety and Irritation:

29

Chapter summary:

30

Hypotheses:

30

Research Model:

31

PART THREE: METHODS
Data collection:
Design template

31
31
31

Data collection progress

35

Schedule for the research running:

36

Data analysis tools:

36

PART FOUR: RESULTS
Cronbach’s Alpha

37
37

Cronbach’s Alpha standard applied

37

Cronbach’s Alpha of constructs:

37

Descriptive information:

39

Descriptive Statistics:

39

Correlation Statistics:

40

Hypothesis Testing Result:

42

PART FIVE: CONCLUSION AND RECOMMENDATION

44

Main findings:

44

Recommendation:

45

Limitation of the research:

47

REFERENCE:

48

APPENDIX

50

Appendix 01: Questionnaire

50

Appendix 02: Presentation of Final Thesis

55

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FIGURE:
Figure 1:Mr. David Thai Phi - Chairman, Founder & Group Chief Executive

2

Figure 2: Business Structure of Viet Thai International JSC.

3

Figure 3: Milestones of Viet Thai International

3

Figure 4: Organization chart of Viet Thai International JSC

4

Figure 5: Organization Chart of Highlands Coffee

6

Figure 6: Maslow's (1954) Need Hierarchy Theory

15

Figure 7: Herzberg's (1957) hypothesis

16

Figure 8: A translation of Vroom's VIE theory

17

Figure 9: Research model of Job Satisfaction

31

TABLE
Table 1: Job Satisfaction Scale

32

Table 2: Work - Related Expectancies

33

Table 3: Perceived Person - Organization Fit

34

Table 4: Work-Related Depression, Anxiety and Irritation

34

Table 5: Performance Appraisal System Knowledge

35

Table 6: Milestone of the survey running and data collecting

36

Table 7: Cronbach's Alpha - Internal Consistency

37

Table 8: Cronbach's Alpha of Job Satisfaction

37

Table 9: Cronbach's Alpha of Work - Related Expectancies

38

Table 10: Cronbach’s Alpha of Perceived Person - Organization Fit

38

Table 11: Cronbach’s Alpha of Performance Appraisal System Knowledge

38

Table 12: Cronbach's Alpha of Work-Related Depression, Anxiety and Irritation

39

Table 13: Descriptive Statistics

39

Table 14: Correlation Statistics

40

Table 15: Correlation Statistics

41

Table 16: Model Summary and Coefficient

43

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ABSTRACT
The research was carried out to determine the factors of job satisfaction of employees
working in Highlands Coffee JSC., The Company is operating in the services, retails
and hospitalization.
The Job Satisfaction Survey (JSS) questionnaire has been used in this research where
it consists of 27 statements from 06 facets of job satisfaction. Questionnaire sheets
distributed be mail and email to participants. 256 respondents from employees were
used for database of SPSS outcomes.
The main purpose of this study is to study the satisfaction of Highlands Coffee’s
employees to find out the satisfaction level and critical factors influencing job
satisfaction toward their current job. This will help the companies to adapt policies and
strategies to address the realities of employees’ nature and needs. By managing
properly these steps, it will help the companies managing their resources efficiently

which will make the companies improve business performance, productivity, turn over
and cost efficiently.
Key words in this research: Work - Related Expectancies, Perceived Person Organization Fit, Performance Appraisal System Knowledge and to define whether
any Work-Related Depression, Anxiety and Irritation.

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PART 1: INTRODUCTION:
History:
Figure 1:Mr. David Thai Phi - Chairman, Founder & Group
Chief Executive

Viet Thai International Joint Stock Company
owns and operates coffee shops, stores, and cafes in
Vietnam. The company also offers export and
private labeling services. It offers its products
through outlets, hotels, and supermarkets. The
company was founded in 1998 and is based in
Hanoi, Vietnam then Company's initial registration
marked the first time as the private company as a
joint stock company. Highlands Coffee was born
out of this vision and in 2000 commenced business
with premium roast & ground packaged coffee with “Highlands Coffee”
brands, to be sold through supermarkets, hotels, restaurants, and cafés. It was four
years later, in 2002, that the first Highlands Coffee shop was established, across

from Notre-Dame Cathedral in Ho Chi Minh City. With Highlands as the platform
of growth, VTI Company is now reaching more than 200 retail outlets across its
portfolio of brands across Vietnam: Hanoi, Ho Chi Minh, Hai Phong, Da Nang,
Vung Tau, Can Tho, Binh Duong, Quang Ninh, Dong Nai and Hue. After past
decades, VTI has been instrumental in shaping the country’s modern retail and
branding environment. This is through a portfolio of Company-owned brands and
leading international brands.

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Scope of business:
VTI business is separated into 03 main business industries Super Food, Super Retails
and Distribution. Highlands Coffee JSC. is one of the biggest business unit of Supper
food line as follows:

Figure 2: Business Structure of Viet Thai International JSC.

In order to have full picture of business growth and expansion of VTI, I summarized
the business’ milestones of VTI as follows:

Figure 3: Milestones of Viet Thai International

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Organization Structure:
Corporate Structure:

Figure 4: Organization chart of Viet Thai International JSC

Corporate level strategies:
The Board of Directors focus on operational and on immediate financial metrics rather
than the wider economic environment that is now starting to affect the company, they
think of using careful planning and forecasting to anticipate the challenges ahead.
They made bargain acquisitions to build up the company core business by selling its
shares in Highlands Coffee to the Filipino investor after a short time they sold nearly
half of Pho 24 to this partner. Particularly, Jollibee paid $25 million to buy 49 percent
of Viet Thai International’s business in Vietnam and 60 percent of business in Hong
Kong (China). Jollibee Group had also agreed to loan Viet Thai International $35
million with interest rate of only 5 percent to ―invest in the future‖.
This approach is to deliver the Joint Venture strategies not only to survive but also to
succeed in a recession as besides continuing to develop this coffee chain in Vietnam,
Jollibee will add products of Highlands Coffee in the other systems of the Jollibee
restaurants in Asia. This will be a significant added value for Highlands Coffee in
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international market. Jollibee affirmed to add Highlands Coffee products in the other
systems of Jollibee restaurants across Asia. This was true, but apparently that’s not
their greatest goal of this investor. On the contrary, Jollibee seems to rely on
Highlands brand to penetrate deep into the Vietnam market.
In consideration of this affair, both Jollibee and VTI were benefit to strengthen their
brand name in the market and maximize their capital resource to grow the business
into international market in the near future Highlands Coffee has taken big steps in the
Philippines recently by mixing Integration Strategy and Intensive Strategies. After
opening a new shop at Eton Emerald Lofts in Ortigas, more Highlands Coffee shops
will soon be put into operation at Timog and Katipunan Avenues in Quezon City and
Pioneer Road, Shaw Boulevard in Mandaluyong and expected to have 100 Highlands
Coffee shops in the Philippines in three years. Beside that, Highlands Coffee also build
up the franchise system with effective policies, such as low prices, free wi-fi service,
diverse food, music and spaces and the most special thing being coffee beans from
Vietnam. In the Philippines, Highlands Coffee uses Vietnamese and confirmed to use
Vietnamese coffee beans then it is considered a Vietnamese brand in international
market.
With these strategies, Viet Thai are successfully to bring Highlands Coffee brand
name to the world and introduce their current products and service into new market,
new geographic and grow better. It is potential to Viet Thai to move up in new chapter.

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Highlands Coffee Business Unit Structure:

Figure 5: Organization Chart of Highlands Coffee

Vision, Mission and Core Values:
Vision:
To become Vietnam favorite cafe & coffee and proudly share this with the world
Mission:
Highlands Coffee’s Mission is to champion deliciously affordable modern
Vietnamese coffee and cafe lifestyle experience. Everywhere, everyday
Core values:
-

Customer Focus: If we don’t take care our customer, someone else will

-

Respect and Integrity: If people respect you respect them back, if they disrespect
you respect them back. They represent their ideology you represent yours

-

Commitment: Motivation is what gets you started, Commitment is what keeps
you going.

-

Proudly Vietnamese and Community: We proud to serve Vietnam by superior
Vietnamese Coffee Quality in a modern and comfortable environment that
reflects the appeal of modern Vietnamese life.

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-

Teamwork and Collaboration: Teamwork divides the task and multiplies the
success.

Legal Entity:
HIGHLANDS COFFEE JOINT STOCK COMPANY
Head office: 135/37/50 Nguyen Huu Canh Street, Ward 22,
Binh Thanh District, Ho Chi Minh City
Telephone: (84-8) 3512-7355
Website:

Fax: (84-8) 3512-7356

www.highlandscoffee.com.vn

Brand Identity Standards:
Connect to land and nature

Connect to the streets and our neighborhoods

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Define the “modern Vietnamese” café experience

Research problem statement
Highlands Coffee is 100% Vietnamese company however it has foreign capital
ratio very high proportion in its capital structure since Highlands had the big
support from Jollibee. Highlands Coffee has changed into lot of human resource
management strategy to improve the management level of their cash flow and
working capital. The two areas that the company took action were reduced
staffing level and reduced overhead cost then improve the quality of service and
product to lead by the Cost Leadership Strategies with the pick point Good value
for money. The company also took action in restructuring the organization to
minimize labor resources. Highlands Coffee implemented 3G café model – Self
Serve café model then Highlands Coffee achieves cost savings in service
employees, employees do not take much to run the table, not waiting for
customer management, and increase the initiative to customers, enhance business
efficiency and profitability for the business. Parallel with Self –Serve model
transformation, Highlands Coffee also apply Part-time labor ratio in Highlands
Coffee system with 60:40 (Fulltime: Part-time ratio). This has enabled to
Highlands Coffee to achieve cost efficiency and people productivity in a
sustainable way. Highlands Coffee invested in multi-task training to all staffs
level to help them work in any station of Café process. This make employees
working their matters. This also encourage the employees to see the impact that
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they are creating, not just be a small piece in a big machine. Each employees can
do multi-tasking to have freedom and creativity to try new ways of doing things,
not just localize global procedures and follow already established processes, but
rather work towards improving them and building new ones. Employees required
to teamwork in a store to make the process of their store designed run well and
they felt proud of where their work is valued.
Based on what the meaningful job the management would bring to each of
employee who is treated as valuable asset of the company. Therefore, developing
and retaining talents, improving job satisfaction of employees during
transformation period are crucial for the company management’s consideration. It
would seem that if people feel good about their jobs, their happiness would be
reflected in the quality of their work and may have a positive feedback from their
customers and this will contribute to organizational success.
The management team of Highlands Coffee is passionate to study on Job
Satisfaction of employees to help the company operate more efficient, suitable
and reasonable in the trend of changes. In which, we need focusing on some
factors such as Work - Related Expectancies, Perceived Person - Organization
Fit, Work-Related Depression, Anxiety and Irritation and Performance Appraisal
System Knowledge are the problems for human resource management at the
moment.
Research objectives:
The main purpose of this research is to identify the factors influencing
employee’s Job Satisfaction in Highlands Coffee through conducting the research
to analyze the relationship among Job Satisfaction with Work - Related
Expectancies, Perceived Person - Organization Fit, Performance Appraisal
System Knowledge and to define whether any Work-Related Depression, Anxiety
and Irritation impact on Job satisfaction in Highlands Coffee. This will be

conducted as follows:

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 Step 1: Studying related information and to identify the level of job
satisfaction in Highlands Coffee
 Step 2: Proposing the research model and test related factors to analyze the
influence of variables on job satisfaction
 Step 3: Discussing and providing recommendations to improve Job
satisfaction of Highlands Coffee employees.
Scope of Research:
The research identified the Job Satisfaction of Highlands Coffee employees,
includes: Operations and Café Support full time staffs, management level from
Shift Sup to Area Manager, Middle Manager, Operations Director who has
passed probation. This study does not include BU Head, Chairman, Board of
Directors, Shareholders and employee who is under maternity leave.
This survey is conducted online within territory of Vietnam through web link
www.surveymonkey.com with separate account sent to employee’s email. This
has been sent to more than 500 email address of employees in Highlands Coffee.
The research’s content is only including factors impact to Job Satisfaction, it does
not have intention of re-structuring, changing, laying off or replacing the
employees.
This survey has been conducted from 01 Feb 2017 to 28 Feb 2017.
Significances of research
The research is also aim to help the management team of Highlands Coffee have

further insight into understanding job satisfaction of Highlands Coffee employees
then this can bring these their attention to issues of employee job satisfaction to
support the organizations in prioritizing the company focuses and resource to
improve these factors to achieve long term sustainable objectives in Human
Resource management.
PART TWO: LITERATURE REVIEW
This chapter reviews the literature overall factors on job satisfaction. In
particular, the review concentrates on the factors concerning job satisfaction, with
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the aim of providing a foundation for answering the research concerns of what is
the relationship of Work - Related Expectancies, Perceived Person Organization Fit, Performance Appraisal System Knowledge and Work-Related
Depression, Anxiety and Irritation to the Job Satisfaction. The literature review
covers the factors of motivation leading to Job satisfaction such as pay,
promotion, fringe benefits, rewards, operating procedure, supervision, co-worker,
nature of job and communication. These factors are suggested and addressed by
Spector (1997) who carried out a Job Satisfaction Survey (JSS) with a
questionnaire used to evaluate nine dimensions of job satisfaction related to
overall job satisfaction. Although the primary aim of the JSS was for use in
human service organizations, it can be applied to all organizations. The norms
provided on JSS include a wide range of organization types in all private, public
and MNC sector.
Definition of construct:
Job Satisfaction:
There exists a variety of definitions of job satisfaction. According to Rinehart and

Short (1993), job satisfaction is essentially any combination of psychological and
environmental circumstances that cause a person to produce a statement, ―I am
satisfied with my job‖. Job satisfaction can also be defined as the extent to which
a person derives pleasure from a job. These pleasures are not only about salary
but also can include factors such as how employees are treated and valued by
management and their input is taken into account by the company.
Social experts, scientists and managers are very interested in understanding
clearly job satisfaction because they can realize and highly appreciate the
significance of a job in an entire life of an employee. However, Mitchell and
Larson (1987) conducted over 3,000 studies on job satisfaction over the past 60
years and concluded that there is no universal definition of job satisfaction. Job
satisfaction has been found to be associated with organizational trust (Rich, 1997)
and helps increase employee performance (Arnett et al., 2002). Job satisfaction
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also serves as a significant predictor in organizational commitment and retention
(Hartman and Yrle, 1996; Kim et al., 2004; LaLopa, 1997). It is the frame of job
and positive attitudes of individuals towards working environment (Robbins,
1993) and can be measured as an overall or global concept or a specific or facet
concept where the components that make up the individual's work experiences
influence satisfaction levels (Rice et al, 1991; Locke, 1976).
According to Spector (1997, p.2) job satisfaction was ―simply how people feel
about their jobs and different aspects of their jobs‖; In other words, job
satisfaction is the way people feel satisfied or dissatisfied with their job. Job
satisfaction can be generally viewed as an overall feeling toward the job or as a

collection of attitudes toward various aspects of the job. Facets of a job that are
frequently

assessed

include

pay,

co-workers,

supervisors,

promotion

opportunities, the nature of the work, communication, the organization’s policies
and procedures and the organization itself (Spector, 1997). In 1976, Locke put
forward a generally accepted definition of job satisfaction as ―the pleasurable
emotional state resulting from perception of one’s job as fulfilling or allowing of
one’s important job values‖ (p.1342). Based on his review of empirical studies on
job satisfaction, Locke concluded that there are seven work issues typically
associated with job satisfaction. They are: mentally challenging work, personal
interest in the specific job, not too physically tiring work, perceived equitable
rewards, appropriate working conditions, employee self-esteem, management
assistance in managing the workplace by minimizing conflicts and ensuring that
work is interesting and good pay/promotions are available.
Generally speaking, job satisfaction can be defined as ―an effective response by
an employee concerning his or her particular job and results from the employee’s
comparison of actual outcomes with those of which are expected, needed, wanted
or perceived to be fair or just‖ (Cranny, Smith & Stone, 1992; Spector, 1996).

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Theories of job satisfaction
Motivation is considered as an important factor for both managers and their
employees. According to Campbell and Pritchard, motivation is defined as ―a
psychological force that affects (a) the choice of initiate effort on a certain task
(b) choice to extend a certain amount of effort and (c) propensity to persist in
expending effort over a period of time‖ (1976:65).
The definition sets out the direction, amplitude and persistence of an individual’s
work, behavior on a given task, while mentioning the effects of aptitude, skill, job
knowledge and situational limitations in the working environment.
The concept of motivation is closely connected with job satisfaction and theories
of motivation have often formed the grassroots foundation of models and
measures of job satisfaction (Mullins 1996). Although job satisfaction is not
totally similar with motivation, it could, for example, be understood in the way
managers and employees enjoy the feeling of achievement. Motivation is viewed
as a potential key to job satisfaction at the workplace... It is advisable to study the
core motivation through the way people feel and think about their work, working
environment, achievement and assessment from higher positions. This approach
is called cognitive process. Different cognitive processes or theories of
motivation are usually divided into two contrasting approaches: content theories
and processes theories (Dunford 1992, Ivancevich and Matteson 1993, Vecchio et
al. 1992).
Content theories of job satisfaction

Theories of job satisfaction mainly deal with motivation, workers’ demands,
strength and expectation of work appreciation. Major content theories are
thorough and famous work and study by Maslow with hierarchy of needs,
McGregor with Theory X and Theory Y, Alderfer with (ERG) modified need
hierarchy model, Herzberg with two factor theory, and McCelland with
achievement theory. Content theory approaches to motivation work mainly on
fundamental motives which affect behavior. This approach has been under
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criticism because it does not fully mention the process aspect of motivation. That
is why the content models do not succeed in figuring out the core process of
motivation and appropriate links between needs and behavior.
Maslow’s hierarchy of needs
According to Maslow’s content theory, people in general try to meet their basic
physiological needs first before steer their behavior to attempt higher level needs.
Higher level needs are those that are satisfied internally, including social esteem
and self - actualization needs. Mullins (1996) conducted a series of studies to find
that managers of higher command in companies put greater emphasis of self actualization and autonomy than managers lower in the organization. Regarding
to Maslow’s theory of hierarchical needs, a framework has been created to
identify what people need and expect and what kinds of motivations might be
applicable at different levels.
However, Maslow’s theory has some disadvantages to explain job satisfaction.
First, the ultimate purpose of the theory is not for studies of job satisfaction, but
many researchers have applied it to that purpose. Second, researches following
the model tests of Maslow's theory have produced mixed results. In Betz (1982)

studying of the need fulfillment in the female workers’ career advancement
(1982), it is clearly noted that that the ambition of job promotion really burns
within them only when their lower – level needs are basically satisfied.
Nevertheless, the findings by Williams and Page (1989) show that some people
try to meet higher-level needs even when the lower ones in the hierarchy have not
been satisfied. "So the idea that needs arise and are satisfied in a particular order
has not been confirmed" (Baron, 1998, p.387).

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Figure 6: Maslow's (1954) Need Hierarchy Theory

Herzberg's Two-factor or Motivational-Hygiene Theory:
The theory of Herzberg et al (1959) is also a well-known theory on job
satisfaction which intensively investigated job satisfaction affecting elements. His
theory worked on 2 main factors namely motivators and hygiene, which was so
called Herzberg’s Two-factor Theory of Job Satisfaction explaining achievement,
responsibility or even the work itself as the core source of satisfaction. However,
in 1997, Oshagbemi suggested that other context – related factors such as pay
security, working conditions could also lead to job satisfaction. The motivationhygiene theory proposes that work must be enriched to successfully utilize, or
motivate, personnel. Job enrichment provides the opportunity for growth. Job
enrichment must be vertical job loading and not horizontal job loading.
Horizontal loading consists of challenging the employee to increase production
amounts or adding another meaningless task to the existing one. Vertical job
loading could be removing controls while keeping accountability and introducing

new and more challenging tasks not previously handled. Job enrichment needs to
be a continuous management function according to Herzberg. Herzberg disputes
the ideas shared by managers that money and benefits motivate employees.
Instead, Herzberg believes continuous job enrichment will motivate employees.
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He provides ten steps at the end of the article that managers should follow to
implement his motivation-hygiene theory.

Figure 7: Herzberg's (1957) hypothesis

Process or expectancy theories of job satisfaction
Process theories aim at the actual process of motivation. These theories deal with
relationships among the dynamic variables which create motivation and with the
way in which behavior is formed, shaped and performed. According to Vroom’s
expectancy theory in 1964, both situational and personality variables played an
important role in job satisfaction. Expectancy theory argues that a tendency to
behavior or an action depends on very much expected outcomes of that kind of
behavior or action; in other words, the longing for final achievement will
determine the cause of the action in the workplace. Although Vroom’s theory
reckons the complexity of work motivation, it is rather hard to understand and
apply because people rarely sit down and list their expected outcomes for a
contemplated behavior. In short, the Vroom model seems perfectly theoretical in
explaining the complexity of motivation, but it does not provide managers much
practical assistance in solving their motivational problem according to Luthans’

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study in 1981. The Vroom model (Figure 2.3) is founded on the concepts of
valence, instrumentality, and expectancy, and is commonly called the VIE theory.

Figure 8: A translation of Vroom's VIE theory

Variables influencing job satisfaction
There remain arguments between researchers over the causes of job satisfaction
and dissatisfaction. A wide range of theories have been developed, presented and
then supported or criticized by other researchers in the field. It is because each
case studied is unique and the findings thus obtained would lend support to a
particular theoretical framework. A grounded theory approach seems to be a great
choice if improving an individual's job satisfaction serves a purpose of the
research.
A review of empirical studies by Savery in 1989 illuminated that there are seven
working conditions or variables of job satisfaction for a majority of people. These
conditions include interesting and challenging work, a feeling of achievement, a
relationship with intermediate supervisor and other professionals, opportunities
for friendship, advancement, security of employment, and recognition. Most of
these conditions or variables have been considered as intrinsic motivators, and
meeting these expectations is very important to achieve high levels of job
satisfaction for an individual, or at least to prevent dissatisfaction. In a study by
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Mottaz in 1985, extrinsic organizational rewards could be an important
determinant but only mattered in lower occupations. He also argued that there is a
strong relationship between job satisfaction and intrinsic reward (such as
achievement, recognition advancement etc.) regardless of occupational levels.
The value of intrinsic motivators to job satisfaction is welcomed among
organization researchers.
After thorough study of above arguments regarding the connections between
content theories of motivation and job satisfaction, and process theories of
motivation and job satisfaction, it can be concluded that content theories are more
commonly used in terms of job satisfaction than process theories. In particular,
Herzberg’s two factor theory is essentially a theory of job satisfaction and
Herzberg has applied the content theory of motivation in his approach.
Herzberg’s belief is that job enrichment should give people the opportunity to
well perform their talents and abilities, and to exercise more self- control over
their job. Self - knowledge and good chances of promotion should be coupled
with the job performance. This provides the direct link between motivation and
job satisfaction. The content theories of motivation also assume a direct
relationship between job satisfactions and improve performance (Mullins 1996,
p.520). In contrast, the process theories of motivation emphasizes the
relationships among the variables. For instance, expectancy theories of
motivation recognize the complexity of work motivation and consider in more
detail the relationship between motivation, satisfaction and performance. Thus,
the process theories provide a more indirect and weaker link to job satisfaction.
Dimensions of job satisfaction:
Pay:

Money is generally viewed as the instrument of commerce and the measure of
value. According to Lazear (1998), money is not everything, but it is the best
metric. The true meaning of money is ―in the eye of the beholder‖ and can be
perceived as their ―frame of reference‖ in which they examine their everyday
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lives (Tang et al., 2000a, p.217). It has been recommended by researchers like
Lawler (1973) that money is a motivator. Meanwhile, Cameron and Pierce (1994)
argue that money is not a motivator; it is just a hygiene factor. According to
Gupta and Shaw (1998), money does improve performance quantity and does not
de-motivate intrinsic elements. On the one hand, it is possible to simply pay
higher wages and lower benefits to satisfy employees’ needs. Equity theory
admits that perceptions of equitable pay play an important role in forming
attitudes and behaviors concerning employment because individuals attempt to
equate their balance between outcome and inputs. Johnson and Johnson (1991),
after reviewing other previous studies, found that worker’ perceptions of equal
pay were a primary motivation to their level of organizational commitment. Some
researchers like Deci and Ryan (2000) suggest that external reward may
undermine intrinsic motivation on a task. Money may motivate people to work
harder to a certain extent. Beyond that point, money may work as a hygiene
factor. As Chiu, Luk and Tang (2002), people do want to become the managers of
money rather than the slaves of money.
Promotion:
Previous studies suggest that both pay and promotion chances are key
determinants of commitment. For example, Mottaz (1988) has shown that both

opportunities for advancement and pay have a positive effect on organizational
commitment. In Quarles’ study of commitment of internal auditors in 1994, the
importance of promotion opportunities is identified as a significant determinant
of organizational commitment. That how much strong the organizational
commitment becomes is one of the principle determining factors of propensity to
stay. A series of studies have shown that external rewards such as pay and
promotion opportunities and internal rewards in form of career development are
closely related to the job satisfaction

BUSINESS RESEARCH METHODS

VO THI KIM HOA