Research on job satisfaction at Tuong An vegetable oil JSC VietNam

MASTER OF BUSINESS ADMINISTRATION
INTERNATIONAL PROGRAMME
___________
RESEARCH PROJECT
(BMBR5103)

RESEARCH ON JOB SATISFACTION
AT TUONG AN VEGETABLE OIL JSC (VIETNAM)

STUDENT’S NAME:

DANG HOANG GIANG

STUDENT’S ID:

CGSVN00004201

INTAKE:

MARCH 2016

ADVISOR’S NAME AND TITLE:

NGUYEN THE KHAI (DBA)

Ho Chi Minh city, Vietnam - July 2016


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ADVISOR’S ASSESSMENT

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ADVISOR’S SIGNATURE

NGUYEN THE KHAI (DBA)
Date:

Student: Dang Hoang Giang (ID: CGSVN00004201)

July 2016


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ACKNOWLEDGEMENTS

First and foremost, I would like to express my special thanks of gratitude to my respected
lecturer, Dr Nguyen The Khai, who gave me a golden opportunity to do this wonderful project
on Job Satisfaction.
It has been very honour to be his student. Despite the short time of learning, he taught and shared
his precious academic and practical experiences to our class. We highly appreciate all his
contributions of time, ideas, sense of humour to make our master learning experience become
more productive and stimulating.
I am especially grateful for my co-advisors, class mates who helped me a lot in getting this thesis
more clearly and finalizing this project within the limited time frame.
I would like to send the profound thanks to my old friends at Tuong An Vegetable Oil Joint
Stock Company who helped me a lot to send and collect the research surveys.
Lastly, I would like to thank my family, my parents, my wife and my son for all their love,
encouragements and supports.
Student: Dang Hoang Giang

Student: Dang Hoang Giang (ID: CGSVN00004201)


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TABLE OF CONTENTS

Contents
ADVISOR’S ASSESSMENT .....................................................................................................1
ACKNOWLEDGEMENTS.........................................................................................................2
TABLE OF CONTENTS ............................................................................................................3

LIST OF FIGURES ....................................................................................................................5
LIST OF TABLES ......................................................................................................................6
ABSTRACTS .............................................................................................................................8
PART 1: INTRODUCTION........................................................................................................9
1. About Tuong An ................................................................................................................. 9
1.1. History ......................................................................................................................... 9
1.2. Scope of Business ...................................................................................................... 11
1.3. Development Strategy and Investment ........................................................................ 12
1.4. Vision, Mission, Core Value, Business Philosophy, Quality Policy ............................ 12
1.5. Contacts ..................................................................................................................... 14
1.6. Organization Structure................................................................................................ 15
2. About the Research ........................................................................................................... 15
2.1. Research Problem Statement ...................................................................................... 15
2.2. Research Objectives ................................................................................................... 16
2.3. Significance of Research ............................................................................................ 16
2.4. Scope of the Research ................................................................................................ 17
PART 2: LITERATURE REVIEW ........................................................................................... 18
1. Definition of Constructs.................................................................................................... 18
1.1. Job Satisfaction .......................................................................................................... 18
1.2. Work Schedule Flexibility .......................................................................................... 19
1.3. Job Stress ................................................................................................................... 19
1.4. Fairness in Skill Based Pay......................................................................................... 20
1.5. Job Overload .............................................................................................................. 21
2. Argument for the Relationship among the Constructs ....................................................... 21
3. Hypotheses and Research Model....................................................................................... 30

Student: Dang Hoang Giang (ID: CGSVN00004201)


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PART 3: METHODOLOGY ..................................................................................................... 31
1. Data Collection ................................................................................................................. 31
1.1. Design Template Scale ............................................................................................... 31
1.2. Data Collection Progress ............................................................................................ 33
1.3. Time Table for Sending, Receiving and Checking Survey: ......................................... 33
2. Data Analysis ................................................................................................................... 34
PART 4: RESULTS .................................................................................................................. 35
1. Cronbach’s Alpha ............................................................................................................. 35
1.1. Cronbach’s Alpha Standard applied ............................................................................ 35
1.2. Cronbach’s Alpha of Constructs ................................................................................. 35
1.3. Statistics Information ................................................................................................. 36
2. Hypotheses Testing ........................................................................................................... 39
PART 5: CONCLUSIONS ........................................................................................................ 44
1. Discussion ........................................................................................................................ 44
2. Limitation of Research...................................................................................................... 44
3. Forecasts and Recommendations ...................................................................................... 45
BIBLIOGRAPHY ..................................................................................................................... 46
APPENDIX 1: SURVEY/ QUESTIONNAIRES ....................................................................... 49
APPENDIX 2: PRESENTATION/ SLIDES .............................................................................. 52

Student: Dang Hoang Giang (ID: CGSVN00004201)


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LIST OF FIGURES

Figure 1: Tuong An’s Core Values ........................................................................................... 13
Figure 2: Tuong An’s Organizational Structure ....................................................................... 15
Figure 3: Mc.Gregor’s X Theory and Y Theory ........................................................................ 22
Figure 4: Maslow's Hierarchy of Needs ................................................................................... 24
Figure 5: Alderfer’s ERG Theory ............................................................................................. 25
Figure 6: McClelland’s Theory ................................................................................................ 26
Figure 7: Herzberg’s Two-factor Theory .................................................................................. 28
Figure 8: Hackman and Oldham's Job Characteristics............................................................. 29
Figure 9: Research model of Job Satisfaction........................................................................... 30

Student: Dang Hoang Giang (ID: CGSVN00004201)


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LIST OF TABLES
Table 1: Research Scale of Constructs ..................................................................................... 18
Table 2: Job Satisfaction Scale................................................................................................. 31
Table 3: Job Flexibility Scale ................................................................................................... 31
Table 4: Job Stress Scale.......................................................................................................... 32
Table 5: Fairness in Skill Based Pay Scale ............................................................................... 32
Table 6: Job Overload Scale .................................................................................................... 33
Table 7: Time table for Collecting Progress ............................................................................. 33
Table 8: Cronbach’s Alpha – Internal Constency ..................................................................... 35
Table 9: Cronbach’s Alpha of Job Satisfaction (JSA) ............................................................... 35
Table 10: Cronbach’s Alpha of Work schedule flexibility (WSF) .............................................. 35

Table 11: Cronbach’s Alpha of Job stress (JST) ....................................................................... 36
Table 12: Cronbach’s Alpha of Fairness in skill-based pay (FSB) ............................................ 36
Table 13: Cronbach’s Alpha of Job Overload (JOL) ................................................................ 36
Table 14: Descriptive statistics of Job Satisfaction (JSA) ......................................................... 37
Table 15: Descriptive statistics of Work Schedule Flexibility (WSF) ......................................... 37
Table 16: Descriptive statistics of Job Stress (JST)................................................................... 37
Table 17: Descriptive statistics of Fairness in Skill-Based Pay (FSB)....................................... 38
Table 18: Descriptive statistics of Job Overload (JOL) ............................................................ 38
Table 19: Correlation Statistics................................................................................................ 39
Table 20: Model Summary of H1 .............................................................................................. 40
Table 21: Cooefficients of H1 ................................................................................................... 40
Table 22: Model Summary of H2 .............................................................................................. 41
Table 23: Cooefficients of H2 ................................................................................................... 41
Table 24: Model Summary of H3 .............................................................................................. 41
Table 25: Cooefficients of H3 ................................................................................................... 42
Student: Dang Hoang Giang (ID: CGSVN00004201)


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Table 26: Model Summary of H4 .............................................................................................. 42
Table 27: Cooefficients of H4 ................................................................................................... 42
Table 28: Overall Hypotheses Testing Results .......................................................................... 43

Student: Dang Hoang Giang (ID: CGSVN00004201)


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ABSTRACTS

This thesis analyses some key factors which influence on the Job Satisfaction of employees
working at Tuong An Vegetable Oil Joint Stock Company (hereinafter referred as “Tuong An”
or abbreviated as “TAC”).
This research project uses Business Research Methods to determine Job Satisfaction and other
major factors that may influence on Job Satisfaction. This research is also conducted by both
qualitative and quantitative methods, in which the source data surveyed from 278 in total of
more than 500 employees of Tuong An aimed at collecting their ideas and comments on Job
Satisfaction. After that, the survey results are statistically analyzed by IBM’s software SPSS
version 22.
The hypotheses used in this research includes five constructs including one dependent construct
(Job Satisfaction) and four independent constructs (Work Schedule Flexibility, Job Stress,
Fairness in Skill Based Pay and Job Overload).
I do hope that the results of this research will assist the management and HR Department of
Tuong An to have some good references in human resource management. So that they could find
out their keys to improve and increase their quality human resource based on Job Satisfaction.
Besides, being as a researcher, I will have a clearer perception of that job satisfaction of
employees will impact on working effectiveness and competitiveness power of every
stakeholder in the Vietnam vegetable oil market.
______________________

Student: Dang Hoang Giang (ID: CGSVN00004201)


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PART 1: INTRODUCTION
1. About Tuong An
1.1. History
Founded in 1977, Tuong An Vegetable Oil Joint Stock Company (abbreviated as “Tuong An” or
“TAC”) is one of Vietnam’s leading vegetable oil companies. It was formerly a State owned
enterprise named as “Tuong An Vegetable Oil Public Administration Enterprise”. On the 20th of
November 1977, the Ministry of Foods & Foodstuffs (being known as the Ministry of
Agriculture & Rural Development) issued the Decision No. 3008/LTTP-TC to re-structure and
transformed Tuong An Vegetable Oil Public Administration Enterprise into the “National
Industries Enterprise” under the management of the Southern Vegetable Oil Corporation.
In July of 1984, the State terminated the Naitonal System on Budget Subsidies and handed over
the rights of doing business and production to all people. Tuong An Vegetable Oil Factory was
also changed and became a member of the Vietnam Union of Vegetable Oil Factories.
Accordingly, Tuong An has a legal independent status and its own accounting regime which can
actively be engaged in every registered fields of production and business.
During this period, Tuong An mainly manufactured some traditional products including
Vegetable Shortening, Margarine and Soap Cakes. At that time, it was the golden age of the
Shortening products. Tuong An’s equipment was operated at full capacity but could not meet
enough buying demands of various instant noodle processing factories.
In field of exports, Tuong An mainly exported refined coconut oil - a traditional famous produce
of Vietnam, which its volume was just accounted for 32% of the total output. Since Tuong An
tried its best to improve its product quality and diversification, its brands began to be more
popular and reputable in the market.
From 1991 until October 2004, Tuong An tried to boost its production capacity and expanded its
distribution channels aimed at preparing for entering the era of global economic integration. At
that time, the State started its economic open policy to create more favourable conditions for
import and export industries. Some imported vegetable oil products began to appear in the
Vietnamese market together with some local vegetable oil processing small and medium size

enterprises (SMEs) were established. The competition was very tough. The vegetable oil market
in Vietnam was becoming hotter and harder.
In 1991, in view of the above-said economic context, various oils and fats products of Tuong An
had to fiercely defend against imported oils and fats products, especially Shortening products.
Student: Dang Hoang Giang (ID: CGSVN00004201)


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Under these circumstances, Tuong An had to re-define its product strategies that maintaining its
Margarine and Shortening as the company’s traditional items for loyal consumers; on the other
hand, Tuong An invested in improvement of packaging designs combining with sending healthy
messages to local consumers on using vegetable oil in stead for animal fats. Tuong An boosted
its production of liquid refined vegetable oil and expanded its domestic consumption market.
Tuong An’s trump card “Tuong An Cooking Oil” has been introduced in the market since
October 1991. Until now, Tuong An was still one of Vietnam leading cooking oil processors.
The company positively propagated local consumers to daily use vegetable oil in stead for
animal fat in order to prevent cardiovascular diseases.
The Cooking oil consumption volume was increased rapidly within several years later on. In
1992, the consumption volume is 215% higher than the one in 1991. In 1993, it was 172%
higher than the one in 1992. Tuong An Cooking Oil has been favoured by local consumers and
has become the flagship of Tuong An ever since.
In the trend of regional and international economic integration, Tuong An has continuously
innovated its manufacturing technology, equipment and setting up a modern production line
from input of crude oils to output of finished products. Tuong An carried out some investment
projects aimed at renovating technology, boosting production capacity, diversifying product
ranges, improving product quality and lowering production costs towards domestic
consumptions and exports.

Since the 01st of October 2004, Tuong An has been transformed from a State-owned enterprise
into a Joint Stock company. This was an important turning point for Tuong An. The company’s
organizational structure and scale of operation have been improved more and more to meet the
needs of developments.
On the 26th of December 2006, Tuong An’s stocks (TAC) was listed in the Ho Chi Minh Stock
Exchange (HOSE) which has opened a new era of developments for Tuong An.
In 2016, Tuong An has more than 500 employees and contributed much to the social economic
development of the nation.
Tuong An is currently being recognized as one of the most powerful, dynamic and sustainable
enterprises in the vegetable oil industry of Vietnam with high potential for international
integration.

Student: Dang Hoang Giang (ID: CGSVN00004201)


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1.2. Scope of business


Manufacturing, buying – selling, import - export of vegetable oil products and by-products,

oily seeds, tree nuts and coconut.


Manufacturing, buying – selling all types of packaging.



Buying – selling, import – export of machinery, equipment, raw materials for

manufacturing and processing of vegetable oil products.


Office, warehouse, house rental.



Manufacturing, buying – selling all types of spices for food industries; sauces (non-

processed at the head quarter).


Manufacturing, buying – selling all types of instant noodles and instant rice.



Service agency for buying – selling, goods depositing.



Amusement services (non-performed at the head quarter).



Cultural and social activities (meeting, outdoor and indoor activities).



Read estate business (building houses for rent or for sales).

Key products of Tuong An

Cooking oil

Luxury oil

Nutrition oil

Fats & condensed oils

Industrial oils & fats

Vitamin supplement oil

Student: Dang Hoang Giang (ID: CGSVN00004201)


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1.3. Development strategy and investment


In 1994, the first PET bottle blowing line in Vietnam “made in Japan” was invested by

Tuong An in the vegetable oil industry.



In 1997, an Automatic filling line “made in Germany” with capacity of 5,000 1-litre-bottle

poured and filled per hour.


In 1998, Tuong An’s lands and premises were extended up to 22,000 m2; building a 1,000

KVA power transformer; installation of 4,300 m3 tanks.


In 2000, Tuong An installed an automatic oil refining line “Technology in Europe” with

capacity of 150 tons per day. Thanks to this investment, the total production capacity of Tuong
An was increased up to 240 tonnes per day.


In 2002, beyond its capacity, Tuong An acquired Nghe An Vegetable Oil Company and re-

structure it to increase its production capacity from 30 tons per day up to 60 tons per day. This
unit is currently named as Vinh Vegetable Oil Factory.


In 2004, Tuong An started its investment project “Phu My Vegetable Oil Factory” with

production capacity of 600 tons per day at Phu My Industrial Zone No. I, Ba Ria - Vung Tau
province of Vietnam with a total investment value of more than VND 330 billion.


In 2005, Tuong An installed 2 more bottle filling lines “Technology in Europe”, bringing

the total capacity of oil pouring and filling up to 22,500 liters per hour, 4.5 times higher than the
previous period.


Besides, Tuong An’s investment project “Phu My Vegetable Oil Factory” in Phu My

Industrial Zone I, Ba Ria - Vung Tau province of Vietnam continued to be accelerated to finish
before the end of 2006. This was a positive preparation of Tuong An in the participatory process
of regional and international economic integration.
1.4. Vision, Mission, Core value, Business Philosophy, Quality policy


Vision

To become a world leading reputed brand in vegetable oil and fat industry, where people put all
their trust in nutrient and health products.


Mission

To deliver the best quality of vegetable oil and fat products to community with the company’s
respect, love and responsibility.
Student: Dang Hoang Giang (ID: CGSVN00004201)


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

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Core value

6 core values of Tuong An including: LEADERSHIP - INTEGRITY - COOPERATION INNOVATION - QUALITY – PEOPLE are considered the complete set of values and guideline
for all activities and works of each Tuong An’s “veg-oil-people”.
By thoroughly understanding the content of values and applying them flexibly, correctly, fully in
daily works, each staff has shown his responsibility in conserving, preserving and developing the
standard ideology, culture or working spirit of Tuong An. This is a solid foundation, great
motivation that helps Tuong An overcome all difficulties, develop sustainably onto the next
levels.
LEADERSHIP: Always leader
in perfecting oneself to be the
best in the field, always be
proactive in taking new tasks.
INTEGRITY: Always fulfill all
commitments with partners,
customers and colleagues.
Always be transparent and earn
one’s trust.

PEOPLE: The key element
that is always valued,
nurtured and developed at
Tuong An Vietnam.
TUONG
AN’S
CORE
VALUES

QUALITY: Always commit
to ensure quality of work
since the beginning show
professionalism of Tuong
An “veg-oil-people”.

COOPERATION: Always
understand and cooperate well
with partners, customers and
colleagues to bring highest
efficiency in work.

INNOVATION: Always think, explore
and develop new breakthrough,
practical ideas, bring high efficiency
in work and business production
activity.

Figure 1: Tuong An’s Core Values


Business Philosophy

Tuong An desires to become one of the most favourite brands of oils and fats industries in every
region and territory. Therefore, Tuong An always keeps in its mind and its heart that the quality
and innovation are always our most important companions. Tuong An acts with customercentered approach and commit to respond to all their needs.


Quality Policy

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Tuong An always satisfies 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.
In April 2013, Tuong An was issued certificate ISO 9001:2008 and GMP - HACCP certified by
QUACERT at Phu My Vegetable Oil Factory.
1.5. Contacts

Head quarter: 48/5 Phan Huy Ich, Ward 15, Tan Binh District, Ho Chi Minh city, Vietnam
Telephone:

(84.08) 38 153 972

Fax:

(84.08) 38 153 649

E-mail:



Website:

Office/ Branches/ Factories:


Phu My Vegetable Oil Factory in Ba Ria – Vung Tau province – Vietnam.



Vinh Vegetable Oil Factory in Vinh city, Nghe An of Vietnam.



Northern branch in Hung Yen province, Vietnam.



Representative office in Hanoi city, Da Nang city, Can Tho city of Vietnam.

Distribution channels:


More than 200 distributors and sales agents, 100 loyal industrial customers and 400 super
markets, restaurants, food shops, school, kindergartens, etc in 64 provinces and city
around Vietnam.



Sales agents and buyers in Japan, Middle East, East Europe, Hong Kong, China, etc.

Student: Dang Hoang Giang (ID: CGSVN00004201)

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1.6. Organization structure

Figure 2: Tuong An’s Organizational Structure
2. About the Research
The research project is about Job Satisfaction at Tuong An Joint Stock Company where I had
one year co-partnering with them from 2005 to 2006 as an expert for VOCARIMEX – Vietnam.
I still have some good friends in this company who helped me a lot to complete this research.
2.1. Research Problem Statement
Obviously, the vegetable oil business environment is always changed and having much pressure
because of the State’s macro policies and the international economic integration process via
various FTAs nowadays.
Tuong An is currently developing fast and requires much on improvement of human resource.
Besides recruiting right people, Tuong An has to keep loyal employees and talents for the
company. Because of human shortage and “head-hunting” competition in the vegetable oil
industry in the era of global integration, the retention of good employees are becoming a big
issue for Tuong An. Tuong An’s Management always realizes Job Satisfaction of employees as
one of the most important factors for Tuong An towards its sustainable development.

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Actually, Tuong An JSC is a good place to work but still someone resign their works, especially
newly recruited employees. Before my research, there were not any research about Job
Satisfaction for this company. That is why I hope to do this research to know more about how
the employees of every departments in Tuong An feel satisfy about their role and job or not. And
to help the Management and HR Director of Tuong An to find out the best solutions to control
and revise the HR policies, especially with the new recruited persons.
In my experience and consulted by my friends in Tuong An, we focus on 4 key factors including
Work schedule flexibility, Fairness in skill-based pay, Job stress and Job overload which may
play the most important role to the Job Satisfaction at Tuong An Company. I need to find out
what are the positive and negative hypotheses and its relationships to the Job Satisfaction at
Tuong An.
2.2. Research Objectives
The purpose of this research is to find out key factors influencing on Job Satisfaction of
employees working at Tuong An. My research focus on 3 main factors:


Firstly, searching related information and trying to define what meaning of Job
Satisfaction of employees at Tuong An.



Secondly, designing a research model and test related factors to check influences
between the factors and accessing strong and weak level of each factor in influence
progress.



Thirdly, discussing and proposing recommendations to improve the effectiveness and
forecast the human resources management at Tuong An in the future.

2.3. Significance of research
This research will assist the Management and HR Director of Tuong An to do understand and be
aware of importance of Job Satisfaction which is the most important factor to express the HR
policy’s effectiveness and corporate concept towards human resources.
Hence, it may improve the employee’s LEADERSHIP - INTEGRITY - COOPERATION INNOVATION - QUALITY – PEOPLE. Thanks to this, Tuong An company will continue
developing stronger in the future.

Student: Dang Hoang Giang (ID: CGSVN00004201)


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2.4. Scope of the Research
The scope of research is for the entire employees at Tuong An JSC. It does not include the
Management and employees are under probation period or in maturity leave. The survey scope is
within the territory of Vietnam, This is a very hard research to make survey to 300 in total of
over 500 company’s employees. I am very happy to get back 278 fully completed surveys.
Contents of this research are only including factors influencing to Job Satisfaction at Tuong An.
It does not have intention of re-structuring, changing and replacing the employees. This survey
was conducted from the 1st of June to the 30th of June 2016.
__________________

Student: Dang Hoang Giang (ID: CGSVN00004201)


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PART 2: LITERATURE REVIEW
1. Definition of Constructs
S/n
1

2

3

Type

Name

Author

Year

Items

Dependent

Job Satisfaction

Cammann, C., Fichman, M.,

1983

3

Variable (DV)

(JSA)

Jenkins, D., & Klesh, J.

Independent

Work

Rothausen, T.J.

1994

3

Variable (IV1)

flexibility (WSF)

Independent

Job stress (JST)

Parker, D. F., & Decotiis,

1983

3

Lee, C., Law, K.S., Bobko, P.

1998

3

Caplan,

1980

3

schedule

Variable (IV2)
4

5

T.A.

Independent

Fairness in skill-

Variable (IV3)

based pay (FSB)

Independent

Job

Variable (IV4)

(JOL)

overload

R.D.,

Cobb,

S.,

French, J.K.P., Van Harrison,
R., & Pinneau, S.R.

Table 1: Research Scale of Constructs
1.1. Job Satisfaction
This concept of Job Satisfaction was developed by Cammann, C., Fichman, M., Jenkins, D., &
Klesh, J. (1983). It includes three items that describe an employee’s subjective response to
working in his or her job and company. This is a global indication of job satisfaction of
employees.
Before that, Job Satisfaction has been developed in different ways by some different researchers
and practitioners. One of the most widely used definitions in organizational research is that of
Edwin A. Locke (1976), who defines the 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 the indications of whether employees likes their job or not and it is

assessed at both the global level or at the facet level. Job satisfaction can also be seen within the
broader context of issues which affect an individual's working experiences, or their working life
quality. Job Satisfaction can be understood in terms of its relationships with other key factors
including Work Schedule Flexibility, Job Stress, Fairness in skill based pay and Job Overload.

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1.2. Work Schedule Flexibility
The concept of Work Schedule Flexibility was developed by Rothausen, T.J. (1994) which
describes how important of the role of flexibility and rewards to Job Satisfaction. It includes 3
items.
The Work Schedule Flexibility was firstly introduced in 1970 and since then this concept has
continued to be the interest of most researching papers. It is supposed as one of the main factors
which contributes to the growth of Job Satisfaction.
Some studies were conducted to reflect the relation between Work Schedule Flexibility and
other variables. According to Lambert, A.D., Marler, J.H. & Gueutal, H.G. (2008), the Work
Schedule Flexibility as a factor which can both prevent and create opportunities.
The findings revealed by Kelliher, C. & Anderson, D. in 2008 that generally positive
relationship between Work Schedule Flexibility and perceptions of job quality in term of worklife balance and helping to improve and control autonomy particularly for remote workers, but
some factors such as opportunities for advancement will be negatively affected due to the
variations on different dimensions of job quality.
1.3. Job Stress
The concept of Job stress was developed by Parker, D. F., & Decotiis, T.A. (1983) who
describes the organizational eterminants of job stress. It includes 3 items.
The Job stress is a stress related to the employee’s job, which often originates from unexpected

responsibilities and pressures that do not align with their knowledge, skills or expectations. It
can be increased when employees feel not being supported by their upper managers or
colleagues, or they feel as if they have very little control over work processes.
Accodring to the National Institute for Occupational Safety and Health of the United Sates
(NIOSH, 1999), the Job Stress comes from various interactions of the worker and the
environment of the work they perform their duties, in which Location, gender, environment, and
many other factors may contribute to the build-up of stress.
According to Colligan, Thomas W; Colligan MSW; Higgins M. (2006), main sources of job
stress originate from: A toxic work environment, Negative workload, Isolation, Types of hours
worked, Role conflict and role ambiguity, Lack of autonomy, career development barriers,
Difficult relationships with administrators and/ or coworkers, Managerial bullying, Towing to
the wrong gates, Harassment and Organizational climate.

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According to Bittel, Lester R. (1984), an Organization can prevent Job Stress by applying the
some methods including: Ensuring that the workload is in line with workers' capabilities and
resources. Designing jobs to provide meaning, stimulation, and opportunities for workers to use
their skills. Clearly defining workers' roles and responsibilities. In order to reduce workplace
stress, managers may monitor the workload given out to the employees. Also while they are
being trained the managers should let employees understand and be notified of stress awareness.
Giving workers opportunities to participate in decisions and actions affecting their jobs.
Improving communications-reduce uncertainty about career development

and future

employment prospects. Providing opportunities for social interaction among workers.
Establishing work schedules that are compatible with demands and responsibilities outside the
job. Combating workplace discrimination (based on race, gender, national origin, religion or
language). Bringing in an objective outsider such as a consultant to suggest a fresh approach to
persistent problems. Introducing a participative leadership style to involve as many subordinates
as possible to resolve stress-producing problems. Encouraging work-life balance through
family-friendly benefits and policies.
1.4. Fairness in Skill Based Pay
The concept of Fairness in Skill Based Pay was developed by Lee, C., Law, K.S., Bobko, P.
(1998), describing the importance of the justice perceptions on pay effectiveness to the Job
Satisfaction. It includes 3 items.
According to the BusinessDictionary.com (2016), Skill Based Pay is defined as a
remuneration system in which the employees will be paid wages on the basis of number
of job skills they have acquired. Many employers today are using this evaluation system of Skill
based pay for evaluating employees’ skills and for setting fair wages and salaries. The Fairness
in Skill Based Pay system plays an important role to the Job Satisfaction of employees.
Some evidences indicated that Skill Based Pay leads to the opposite of the desired outcomes
when it is applied to any work involving cognitive rather than physical skill.
The Fairness in Skill Based Pay is similar to the achievement-based pay, of which a research
study made by Schuler and Rogovsky (1998) pointed out that there are cultural differences
which affect the kind of remuneration and reward systems that are in use. There is a good
connection among status-based reward systems (as opposed to achievement-based) and high
uncertainty avoidance, individual performance based systems and individualism, systems
incorporating extensive social benefits and femininity and employee ownership plans with
individualism, low uncertainty avoidance and low power distance.
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1.5. Job Overload
This concept Job Overload was developed by Caplan, R.D., Cobb, S., French, J.K.P., Van
Harrison, R., & Pinneau, S.R. (1980), describing job demands and worker health (Job overload).
It includes 3 items.
The findings from the above researches show that the various forms of job overload produced at
nine different kinds of psychological physiological strain in the individual and employee, in
which four of these including job dissatisfaction, elevated cholesterol, elevated heart rate and
smoking are the risk factors in heart disease. It is reasonable to predict that reducing job
overload may reduce heart diseases on the employees.
According to Dictionary.Cambridge.Org (2016), job overload is the situation in which someone
has too much job or work to do.
According to the European Agency for Safety and Health at Work of EU (EU-OSHA, 2007), the
Job overload is one of the first psychosocial risk factors to be researched that may be divided
into qualitative workload (referring to the difficulty of the task) and quantitative workload
(referring to the amount of work that has to be completed within limited time).
Actually the working environment and manners have been significantly changed and Job
overload becomes a common problem today. The job overload can lead to the excessive stress at
the place of working. According to Rica Bhattacharyya (2012), there are 5 ways to manage the
job overload including: Farming out work, Managing working time, Balancing Work and Life,
Prioritising Tasks and Enjoying Work.
2. Argument for the relationship among the constructs
a) The X Theory and Y Theory
Contents
The X Theory and Y Theory are the theories of human motivation which were created,
developed and implemented by Douglas McGregor at the MIT Sloan School of Management in
the 1960s. The theories describe two contrasting models of manpower motivation being used in
human resource management, organizational behavior, organizational communication and

organizational development. The X theory and Y theory emphasize manager’s management and
leadership styles are influenced by his or her perceptions.

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Figure 3: McGregor’s X theory and Y Theory
X theory:
According to this theory, X type individuals are considered to be inherently lazy and not fond of
their jobs. As a result, an authoritative management style is required to ensure that individuals
fulfill their objectives. Employees who are managed according to this way need to be closely
supervised, and some comprehensive systems of control need to be developed. A hierarchical
structure is needed with narrow span of control at each and every level.
In view of this theory, the employees will show little ambition without an enticing incentive
program and may avoid responsibility when they can. If the organizational goals are actually
met, X theory managers must heavily rely on the threats of punishment to gain compliance of
employees. Upon being practiced, this theory can lead to mistrust, highly restrictive supervision
and a punitive atmosphere. The X theory manager tends to believe that all actions can be traced
back and the individual who are responsible for them needs to be directly rewarded or
reprimanded depending on the action's results.
This managerial style is more effective when it is used for motivating a workforce that is not
inherently motivated to perform. It is usually exercised in professions where promotion is
infrequent, unlikely or even impossible and where the workers often tend to perform repetitive
tasks in their jobs. One major flaw of this management style relates to limits of the potential of
the employees under it and discourages out of the box thinking.
Y Theory:

In this theory, the management assumes employees can be ambitious, self-motivated and
exercise self-control enough. It is believed that employees enjoy their mental and physical
working duties. According to them, working is as natural as playing. They possess the ability for
creating and solving problems but their talents are underused in most organizations. Y theory
managers believe that if proper conditions are given, the employees will learn how to seek out
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and accept responsibility, exercise self-control and self-direction in accomplishing objectives to
which they are committed. The Y theory manager believes that if the right conditions are given,
most of people may want to do well at work. They believe that the satisfaction of doing a good
job is a very strong motivation. Many people interpret Y theory as a positive series of believes
about employees in a workplace.
A close reading of The Human Side of Enterprise reveals that Mc. Gregor simply argues for the
managers who are open to a more positive view of workers and the possibilities that this creates.
He thinks that the Y theory managers are more likely than the X theory managers to develop a
climate of trust with employees and required for employee development. This would include
managers openly communicating with subordinates, minimizing the difference between superior
subordinate relationships, creating a comfortable environment in which subordinates can
develop and use their abilities well. This environment would include decision making sharing so
that subordinates have a good saying and comments in decisions that influence on them.
The X theory and Y theory combined:
X theory and Y theory are not different and opposite ends of the same continuum but rather two
different continua in themselves. McGregor has identified the X theory and Y theory differently.
The X theory assume that individuals dislike their careers, the X theory people have to be
supervised by the management.

The Y theory assumptions are that individuals like their careers and are willing to take part in
responsibility. The Y theory people do not need any supervision and they can be expected to
work productively.
Previous research
Sahin,

F.

(2012).

“The

mediating

effect

of

leader-member

exchange

on

the

relationship between X and Y theory management styles and effective commitment: A
multilevel analysis”. Journal of Management and Organization, 18 (2), 159-174.
Self-argument
Personally, I think theory X and theory Y will have a strongly impact to Work schedule

flexibility and Fairness in skill based pay because it creates clear perception of justice in
organizations; obvioursly it affects on Job Satisfaction.

Student: Dang Hoang Giang (ID: CGSVN00004201)


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b) Maslow’s Theory
Contents
The Maslow's Hierarchy of needs is a famous theory in psychology proposed by Abraham
Maslow in his paper “A Theory of Human Motivation" in Psychological Review” (1943).
Maslow subsequently extended the idea that including his observations of humans' innate
curiosities. His theories parallel many other theories of human developmental psychology, some
of which focus on describing the growth stages of humans. Maslow used the terms of
Physiological, Safety, Belongingness and Love, Esteem, Self-actualization and Selftranscendence to describe the pattern that human motivations generally go through. Maslow
studied what he called exemplary people including Albert Einstein, Jane Addams, Eleanor
Roosevelt, and Frederick Douglass rather than mentally ill or neurotic people, writing that the
study of crippled, stunted, immature, and unhealthy specimens can yield only a cripple
psychology and a cripple philosophy. Maslow studied the healthiest 1.0% of the college student
population. Maslow's theory was fully expressed in his 1954 book Motivation and Personality.
The hierarchy remains a very popular framework in sociology research, management training
and secondary and higher psychology instruction.

Figure 4: Maslow's hierarchy of needs
Previous research
Tang, T. L.; Ibrahim, A. H.; West, W. B. (2002). “Effects of war-related stress on the
satisfaction of human needs: The United States and the Middle East”. International Journal of

Management Theory and Practices 3 (1): 35-53.
Cianci, R.; et al (2003). “Maslow's hierarchy of needs: Does it apply in a collectivist culture”.
Journal of Applied Management and Entrepreneurship 8 (2): 143-161.

Student: Dang Hoang Giang (ID: CGSVN00004201)