Research about job satisfaction at vinamilk

RESEARCH PROJECT
(BMBR5103)

RESEARCH ABOUT JOB SATISFACTION
AT VINAMILK

STUDENT’S FULL NAME

: DUONG TRAN TRUNG HIEU

STUDENT ID

: CGS00019893

INTAKE

: SEPTEMBER 2015

ADVISOR’S NAME & TITLE

: NGUYEN THE KHAI (DBA)

MARCH 2017


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ADVISOR’S ASSESSMENT

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ADVISOR’S SIGNATURE
(March 2017)

NGUYEN THE KHAI (DBA)


ACKNOWLEDGMENTS

In my search for knowledge and experience in life, I am reminded more and
more just how lucky I have been. This paper in particular and my degree in general
would not have been possible if not for the reassurance and help I got along the way.
I would like to express my sincere gratitude to Nguyen The Khai (DBA) for his
helpful guidance throughout the course of this thesis. He showed me that learning
any subject is possible. With the attitude he possesses as an instructor, students
cannot lose. I will always be reminded of that.

Besides this, I also send many thanks to the board of managers and all
employees of Vinamilk for their precious time and efforts to collect data for this
thesis.
I also would like to thank my fellow classmates for unselfishly sharing useful
information and references to help successfully finish this thesis.

Duong Tran Trung Hieu Student


CONTENTS
ABSTRACT
PART ONE: INTRODUCTION
I. VINAMILK INTRODUCION

01
01

1. History

01

2. Principal business activities

03

3. Development Stategy

04

4. Vision, Mission, Core Values, Business Philosophy and Quality

05

Policy
5. Corporate Governance

07

6. Contact

09

7. Distribution Channels

09

8. Employees

10

II. ABOUT RESEARCH

11

1. Research problem statement

11

2. Research objective

12

3. Research question

13

4. Research scope

14

5. Significances of Research

14

6. Limitation of research

14

PART TWO: LITERATURE REVIEW

15

I. DEFINITION OF CONTRUCTS

15

1. Job Satisfaction

15

2. Satisfaction with My Supervisor

17

3. Work-Related Expectancies

17

4. Person - Organization Fit

19

5. Satisfaction with work schedule flexibility

20


II. THEORIES

21

1. Affect theory

21

2. Dispositional approach

22

3. Equity theory

22

4. Discrepancy theory

23

5. Two - factor theory (motivator-hygiene theory)

24

6. Job characteristics model

25

III. INFLUENCING FACTORS

25

1. Environmental factors

25

2. Individual factors

28

3. Hypotheses

34

4. Research model

34

PART THREE: METHODS

35

I. Data collection

35

1. Job Satisfaction

35

2. Satisfaction with My Supervisor

36

3. Person - Organization Fit Scale

36

4. Work-Related Expectancies

37

5. Satisfaction with work schedule flexibility

38

II. Data collection progress

39

PART FOUR: RESULTS

41

I. Cronbach’s Alpha

41

1. Cronbach’s Alpha standard applied

41

2. Cronbach’s Alpha contructs

41

II. Statistics information

44

1. Descriptive statistics

44

2. Correlation statistics

45

III. Hypotheses testing

45


PART FIVE: CONCLUSION

48

REFERENCES

49

APPENDIX A

51

APPENDIX B

57


FIGURE & TABLE
FIGURE
Figure 01:

Ms. Mai Kieu Lien – Chairwoman Chief Excutive Officer

01

Figure 02:

Model of Development Strategy

04

Figure 03:

Vinamilk Organization structure

07

Figure 04:

Vinamilk Leadership

08

Figure 05:

Vinamilk Distribution Channels

09

Figure 06:

Strengths and Weaknesses of Expectancy Theory

19

Figure 07:

Research model of Job Satisfaction

34

Table 01:

Job Satisfaction

35

Table 02:

Satisfaction with My Supervisor

36

Table 03:

Person - Organization Fit Scale

37

Table 04:

Work-Related Expectancies

38

Table 05:

Satisfaction with work schedule flexibility

39

Table 06:

Time table for data collection progress

40

Table 07:

Cronbach’s Alpha – Internal Consistency

41

Table 08:

Cronbach’s Alpha of Job Satisfaction

41

Table 09:

Cronbach’s Alpha of Satisfaction with My supervisor

42

Table 10:

Cronbach’s Alpha of Work - Related expectancies

42

Table 11:

Cronbach’s Alpha of Person - Organization Fit Scale

42

Table 12:

Cronbach’s Alpha of Satisfaction with work schedule flexibility

43

Table 13:

Summary Cronbach’s Alpha

43

Table 14:

Descriptive Statistics

44

Table 15:

Correlation Statistics

45

Table 16:

Model Summary

46

Table 17:

Coefficients

46

Table 18:

Summary Hypotheses Testing

47

TABLE

ABSTRACT
The purpose of this research is to determine the relationship between variables in the model
such as Work-Related Expectancies, Satisfaction with My supervisor, Person-Organization Fit
Scale and Satisfaction with work schedule flexibility with Overall Job Satisfaction. The
research result was conducted in Vinamilk with 470 employees.
And SPSS software version 22 (copyright of IBM) is a tool that is used to analysis data in this
research. The collected data were analyzed through factor analysis, Cronbach’s alpha,
descriptive statistics, correlation, and multiple regression analysis. The research showed that
there are four factors influencing overall job satisfaction are Work-Related Expectancies,
Satisfaction with My supervisor, Person-Organization Fit Scale and Satisfaction with work
schedule flexibility. Moreover, the research provides some recommendations implications for
managers to raise the level of satisfaction with work of the employees.


PART ONE: INTRODUCTION
I. VINAMILK INTRODUCTION

Figure 1: Ms. Mai Kieu Lien – Chairwoman Chief Excutive Officer
(Source: Vinamilk Annual Report 2015)

1. History
Subsidy period (from 1976 to 1986)
1976

Vinamilk was founded under the name of Southern Coffee-Dairy Company, a

subsidiary of the Food General Directorate and had two factories in operation, namely Thong
Nhat Dairy Factory and Truong Tho Dairy Factory.

1978

The Company was transferred to the Ministry of Food Industry and the Company

was renamed United Enterprises of Milk Coffee Cookies and Candies I. The Company had
more factories:
+ Bich Chi Powder Factory,
+ Lubico Cake Factory
+ Bien Hoa Coffee Factory.
Innovate period (from 1986 to 2003)

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1991

The “white revolution” started the development of fresh milk. The first time we

launched UHT milk products and yoghurt to the Vietnam market.
1992

The United Enterprises of Milk Coffee Cookies and Candies I was formally

renamed Vietnam Dairy Company and came under the direct management of the Ministry of
Light Industry. In the expansion plan to meet the market demand in the North, the Company
built the Hanoi Dairy Factory. On October 7th 1994, the sales office was opened and
responsible for sales activities in the North provinces.
1996

Binh Dinh Dairy Joint Venture Enterprise was founded as the result of our Joint

Venture with Quy Nhon Frozen Joint Stock Company. Ha Noi Dairy Factory came into
operation. In May 1996, Da Nang sales office was opened and responsible for sales activities
in the Central provinces.
1998

Can Tho sales office was opened in order to develop sales activities in the Mekong

delta provinces. Since 2000, Can Tho Dairy Factory was inaugurated and put into operation in
the Mekong Delta.
Equitization period (From 2003 to nowaday)
2003

The Company was formally transformed into a Joint Stock Company in November

2003 and renamed as Vietnam Dairy Products Joint Stock Co., to reflect its change in legal
status.
2004

Acquired Saigon Milk Joint Stock Company and increased share capital of the

Company to VND1,590 billion.
2005

Bought our Joint Venture partner’s remaining equity in Binh Dinh Dairy Products

Company Ltd and inaugurated Nghe An Dairy Factory on 30 June 2005.
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2006

Vinamilk was listed on Hochiminh Stock Exchange (HOSE) on 19 January 2006.

In June, An Khang Clinic was opened in Ho Chi Minh City.
2007

Vinamilk acquired a controlling stake of 55% in Lam Son Milk Company Ltd. and

changed its name into Lam Son Milk Joint Stock Company.
2009

The cow farm in Nghe An was opened. This is the most modern farm in Vietnam

with its designed size of 3,000 cows.
2010

The Company started its strategy of investment overseas by contributing nearly

USD10 million (equivalent to 19.3% of the project’s share capital) in a powdered milk project
in New Zealand.
2013

Vinamilk regarding the acquisition of a controlling stake (70%) of Driftwood

Dairy Holdings Corporation, California, USA.

2014

Vinamilk for its contribution of 51% capital with a foreign partner in order to build

the Joint Venture named Angkor Dairy Products Co., Ltd. in Cambodia.
2. Principal business activities
The principal activities generating revenue and profit for the Company include:
 Processing, producing and trading of fresh milk, packed milk, powdered milk, nutrition
powder, yogurt, condensed milk, soy milk, beverages and other dairy products.
 Raising cattle: Growing dairy cows. Raising cattle is for the main purpose of supplying
fresh milk as raw material to manufacture the Company’s dairy products.

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3. Development Stategy
The long-term development strategy of Vinamilk is to achieve the target revenue of USD 3
billion and become one of the 50 biggest dairy companies in the world in the period of 20122017.
Within this period, there are 3 important areas that create the driving forces to help Vinamilk
achieve its mission:

Figure 2: Model of Development Strategy
(Source: />
 Developing strategic human resource management
 Maintaining and managing activities towards sustainable development
 Planning and implementing Knowledge, Innovation, and Change management.
Vinamilk’s strategic priorities are:
Assets investment plan:

 To achieve the target revenue of USD 3 billion in the period of 2012-2017.
 To maintain dividend payments to shareholders with an annual dividend rate of at least
30% on par value.
Customers:
 To be an enterprise with high customer satisfaction on product quality, affordable
prices, and the leading distribution system in Vietnam
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Corporate governance:
 To be an enterprise with accredited professional management and structure
 To be an enterprise where the working environment enables employees to make out
their best capabilities and contribution to the common goals, thus being one of the best
working places for employees.
4. Vision, Mission, Core Values, Business Philosophy and Quality Policy:
Vision

To become a world grade brand in food and beverage industry, where people put
all their trust in nutrient and health products.

Mission

To deliver the most valuable nutrition to community with our respect, love and
responsibility.

Core value
Integrity: Integrity and transparency in actions and transactions.
Respect: To have self-respect, to respect colleagues. To respect the Company and

partners. To cooperate with respect.
Fairness: To be fair with employees, customers, suppliers and other parties.
Compliance: To comply with legal regulations, the Company’s Code of Conduct
and the Company’s procedures and policies.
Ethics: To respect the established ethical standards and act accordingly.
Business Philosophy
Vinamilk desires to become one of the most favourite brands in every region and
territory. Therefore, we keep in our mind and our heart that the quality and innovation are

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always our most important companions. We act with customer-centered approach and commit
to respond to all their needs.
Quality Policy
Always satisfy and be responsible for consumers’ needs by diversifying products
and services, assuring quality, food safety with competitive price, respecting the business
ethics and complying with laws.

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5. Corporate Governance
Organization chart
The organization Chart of Vinamilk is shown in a professional manner in which departments
are divided systematically and reasonably with specific hierarchy of responsibility for each

member and function in the company. This structure helps the company to operate in the most
effective way and fosters the collaboration among departments, thus making a strong
Vinamilk.

Figure 3: Vinamilk Organization structure
(Source: Vinamilk Annual Report 2015)

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Leadership
Vinamilk’s strong and successful development over almost 40 years is the outcome of
devotion and contribution of all members of the company under the outstanding leadership
and direction of our key personnel who are not only talented, courageous but also
wholehearted for the company’s achievements.

Figure 4: Vinamilk Leadership
(Source: />
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6. Contact

Logo name:
Headquarters: No. 10, Tan Trao Street, Tan Phu Ward, District 7, Ho Chi Minh City.
Phone: + 08 54 155 555

Fax: + 08 54 161 226
Website:
7. Distribution Channels

Figure 5: Vinamilk Distribution Channels
(Source: Vinamilk Annual Report 2015)

Distributors
As at December 2016, the Company has 243 exclusive distributors nationwide. They
serve directly to more than 215,000 retailers. Vinamilk has wide distribution system
through 63/63 provinces Vietnam. The product was distributed by 4 main distributors
in Ha Noi, Ho Chi Minh, Da Nang and Can Tho.

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Supermarkets and convenient stores
Vinamilk products are present in 1,609 small and big supermarkets and more than 575
convenient stores throughout the country.
Export
Export sales contribute about 13% of the total consolidated revenue. At the end of
2016, the Company has exported to more than 40 nations and regions. In 2015, the
Company maintains exports to its traditional markets in Middle East and South

East

Asia and explores to potential markets in Africa and especially high-end markets like
Japan, Canada.

8. Employees
The Company upholds all its commitments relating to working conditions and healthcare
while striving to develop a diverse, discrimination-free environment where everyone has an
opportunity to growth, where their differences are respected, their rights protected and
contributions recognized. 2015 was the second year Vinamilk ranked among the Top of “The
best places to work”.
According to the people who took the survey, an ideal place to work is where that offers
employees with opportunities career development along with a diversity and equality in the
working environment. Salaries, bonuses and other financial compensations are also important
but not the top criteria for selecting a place to work.
At Vinamilk, we not only offer the best policies to our employees but also ensure that the
people working for our partners in the supply chain receive the benefits they deserve in a
contracted manner.
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In late 2015, with the success in the implementation of the PAS 99 Integrated Management
System, Vinamilk launched for the first time the Internal Occupational Safety - Health Environment Assessment Program in all factories. The focus of the program is to guarantee a
safe environment for Vinamilk’s factory workers and to raise individuals’ awareness of
occupational safety and health and environment protection.
Employee development
Many programs performed in 2015 such as Management Skill for High - ranking Managers,
Six Styles of Leadership, Self - management, Responsible Life Culture, etc. provided the
management team of Vinamilk valuable knowledge and skills in constructing a dynamic
corporate culture for sustainable development.
II. ABOUT RESEARCH
1. Research problem statement
Vinamilk is aggressively developing and growing human resource, especially in the selection

of right people for the company. However, recruiting right people is not enough and they are
embarrassing to know how to keep talent employees, retain talents, especially how to retain
their key staff who plays a key role in the company. With the shortage of human capital as
today, retention good people are becoming big issue of Vinamilk.
Vinamilk has focused on its HRM by providing a lot of activities to strengthen its human
resource training and development such as coordinating with universities in HCM city and
Hanoi city to recruit potential candidates, conducting variety of internal training programs.
Besides, Vinamilk also provide many HR management policies to retain and develop its
workforce such as salary and reward systems.
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However, as stated in its annual human resource reports, the number of employees quit jobs
gets increasing year over year. That may lead the company to critical impact of leaking its
skilled and well trained workforce. Not only that, it will take huge invisible cost for the
company if these well trained and qualified employees run out of the company and come to
work for the competitors.
With the above real situation and also for the long term strategic human resource management,
it is critical to examine and analyze the diversified relationships of job satisfaction among
Vinamilk workforce.
Vinamilk realized Job Satisfaction of employees is important factor for Vinamilk develop
sustainably their human resource to help organization to operate more efficient, produce
quality of products and services, build brand awareness, customer trust and loyalty… But,
some factors such Satisfaction with my supervisor, Work-Related Expectancies, Person Organization Fit Scale and Satisfaction with work scheduele flexibility are problems for
human resource management at Vinamilk.
2. Research objective
The purpose of this research is to examine and approach whether items in terms of Satisfaction
with my supervisor, Work-Related Expectancies, Person - Organization Fit Scale and

Satisfaction with work scheduele flexibility will have any influence on the Job Satisfaction of
Vinamilk employees.
My research will focus on 3 main factors:
 Fisrtly: Search related information and try to define what meaning Job Satisfaction is
of employees at Vinamilk.
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 Secondly: Design research model and related factors to check influence between
factors to access strong / weak level of each factor in infuence progress.
 Thirdly: Discussing and proposing recommendation to improve the effectiveness and
forecast the human resources management at Vinamilk in the next time.
3. Research question
The groups' interviews were conducted by an experienced moderator using opened-ended
structured protocols that lasted an hour. The questionnaire forms are arranged and send to
them for preceding this survey. Also, some interviews were recorded, transcribed into a
written format, and coded so that the emerging themes could be identified and summarized.
In particular, the people that are interviewed seem to help finding out some results of many
issues related to determinants affecting Job Satisfaction of employees in Vinamilk. Thus, the
questionnaire is revolved in certain problems as:
 How are the impacts of Satisfaction with my supervisor on Vinamilk employee Job
Satisfaction?
 How are the impacts of Work-Related Expectancies on Vinamilk employee Job
Satisfaction?
 How are the impacts of Person - Organization Fit Scale on Vinamilk employee Job
Satisfaction?
 How are the impacts of Satisfaction with work schedule flexibility on Vinamilk
employee Job Satisfaction?

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4. Research scope
The scope of research is for the entire employees at Vinamilk, includes: leadership team,
employees and direct supervisors in different departments include commercial & Marketing,
Business Development, Finance accounting and Information Technology, and design.
A series of formed questionnaire was distributed to each employee with clear instructions and
guidelines for fulfillment. The survey scope is within the territory of Vietnam, which includes
470 employees of Vinamilk.
Contents of this research are only including factors influencing to Job Satisfaction at Vinamik;
it does not have intention of re-structuring, changing and replacing the employees.
5. Significances of Research
This research will help CEO, Directors; managers understand and are more aware of the
importance of Job Satisfaction. That is the most important factor to show the effectiveness of
the policy, the organization operating concept in human matters.
Besides significant management, it also improves employee loyalty to the organization and
further, employees will be loyal to the shareholders of the company, contributed to the
financial strength of the companies increasingly stronger in the future.
6. Limitation of research
This research will have some limitations because it only focuses on the related content at
Vinamilk.
The survey conducted in a short timeand also number of responsents (n = 278) is not
significant large. This survey was conducted on a small scale, such as subsidiaries, was not
conducted Vinamik Group.
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PART TWO: LITERATURE REVIEW
I. Definition of Contructs
1. Job Satisfaction
It was was developed by Taylor and Bowers (1974), it includes 7 items.
The measure assesses job satisfaction by combining employee responses to single items that
describe the degree ofemployee satisfaction with the work, co-workers, supervision,
promotionalopportunities, pay, progress, and the organization to assess overall job satisfaction.
The assessment of job satisfaction through employee anonymous surveys became
commonplace in the 1930s. Although prior to that time there was the beginning of interest in
employee attitudes, there were only a handful of studies published. Latham and Budworth
note that Uhrbrock in 1934 was one of the first psychologists to use the newly developed
attitude measurement techniques to assess factory worker attitudes. They also note that in
1935 Hoppock conducted a study that focused explicitly on job satisfaction that is affected by
both the nature of the job and relationships with coworkers and supervisors.
The concept of job satisfaction has been developed in many ways by many different
researchers and practitioners. One of the most widely used definitions in organizational
research is that of Locke (1976), who defines job satisfaction as "a pleasurable or positive
emotional state resulting from the appraisal of one's job or job experiences". Others have
defined it as simply how content an individual is with his or her job; whether he or she likes
the job or not. It is assessed at both the global level (whether or not the individual is satisfied
with the job overall), or at the facet level (whether or not the individual is satisfied with
different aspects of the job).
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A more recent definition of the concept of job satisfaction is from Hulin and Judge (2003),
who have noted that job satisfaction includes multidimensional psychological responses to an
individual's job, and that these personal responses have cognitive (evaluative), affective (or
emotional), and behavioral components. Job satisfaction scales vary in the extent to which
they assess the affective feelings about the job or the cognitive assessment of the job.
Affective job satisfaction is a subjective construct representing an emotional feeling
individuals have about their job. Hence, affective job satisfaction for individuals reflects the
degree of pleasure or happiness their job in general induces. Cognitive job satisfaction is a
more objective and logical evaluation of various facets of a job. Cognitive job satisfaction can
be unidimensional if it comprises evaluation of just one facet of a job, such as pay or maternity
leave, or multidimensional if two or more facets of a job are simultaneously evaluated.
Cognitive job satisfaction does not assess the degree of pleasure or happiness that arises from
specific job facets, but rather gauges the extent to which those job facets are judged by the job
holder to be satisfactory in comparison with objectives they themselves set or with other jobs.
While cognitive job satisfaction might help to bring about affective job satisfaction, the two
constructs are distinct, not necessarily directly related, and have different antecedents and
consequences.
Job satisfaction can also be seen within the broader context of the range of issues which affect
an individual's experience of work, or their quality of working life. Job satisfaction can be
understood in terms of its relationships with other key factors, such as general well-being,
stress at work, control at work, home-work interface, and working conditions.

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2. Satisfaction with My Supervisor
This measure, developed by Scarpello and Vandenberg (1987), describes an employee’s
satisfaction with his or her immediate supervisor. It includes 8 items.

The Satisfaction with My Supervisor is intended to measure the construct of satisfaction as it
relates to supervision rather than other conditions or agents in the work situation. The
definition of supervision used in this research was first proposed by Mann (1965). He
suggested that supervision is an organizational role whose effective enactment entails ability
to reconcile and cordinate the needs and goals of the work group’s members with
organizational requirement: Moreover, supervisory ability consists of three distinct but
interrelated types of skills:


Technical: Dealing knowledgeably with task related issues



Human relations: Getting the work done with and through people



Administrative: coordinating activities and acting in terms of the system within which

one operates.
Man (1965) viewed all three skills as necessary for supervisory effectiveness in achieving
performance goals and obtainning subordinate satisfaction.
3. Work-Related Expectancies

This measure was developedby Eisenberger, Fasolo, and Davis-LaMastro (1990), it includes 9
items.
It describes the extent to which employees believe that higher levels of job performance will
be rewarded. The measure assesses employee expectancies about the relationship of better
performance with increased pay, promotions, and job security. It also assesses employee
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