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IMPROVING JOBSATISFACTION : A CASE
STUDY OF EUROWINDOW COMPANY
Maastricht School of Management
BY : MAI HOANG NGUYEN (VIETNAM)
COACH : Dr. LE THANH LONG
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Contents
INTRODUCTION1
LITERATURE REVIEW2
RESEARCH METHODOLOGY3
DATA ANALYSIS AND FINDINGS4
2
CONCLUSIONS AND RECOMMENDATIONS3
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INTRODUCTION1
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1.Introduction of Eurowindow
Eurowindow (European Plastics Window CompanyLtd..) was established on 29th August 2002 underthe Vietnamese Law on Foreign Investment.
The company’s range of products consists of:windows, doors, balconies, high-quality uPVCpartitions; aluminum doors and curtain walls of European quality; room-through doors in boardedwood, solid timber and MDF; Products of glass:safety glass, tempered glass, glass boxes,patterned glass.
All the factories of Eurowindow are equipped withlatest technology and synchronous production lineimported from Germany, Italy, Finland and Spain.
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2. Problem statement
Eurowindow has had a problem of increasinglyhigh turnover rate which become a leadingchallenge and a big concern especially in BinhDuong Province and Ho Chi Minh city – the mostdynamic areas.
The reasons of employee’s leaving their jobs havebeen related to job satisfaction, like lack of promotion, low salary, high - salary offered jobsfrom other companies, boring jobs etc…
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2. Problem statement
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18%
24%
27%29%
32%
0%
5%
10%
15%
20%
25%
30%
35%
2005 2006 2007 2008 2009
Turnover rate
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2. Problem statement
Therefore, Eurowindow Company needs to improve job satisfaction to retain the competent employeesto ensure operation of the organization and in thefrontline to avoid losing the customers as well asto attract the new customers.
Research all factors effect to retain worker isnecessary not only in adds an insight into the issueof humane resource management in EurowindowCompany but also responding to this situation in
the long run.
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3. Research objectives
i. To determine the major job satisfaction factors foremployees within in Eurowindow Company inVietnam.
ii.To determine whether the dimensions of job
satisfaction will statistically explain the variance intotal job satisfaction experienced by employees.
iii.To quantitatively determine antecedent factorseffecting to job satisfaction and this study
investigated relationship between the level of satisfaction of each of facets of job satisfaction.
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4. Scope and Limitations
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Given the limited of
sources and time, the
research only focuses
on the production
workers, and the
office employees and
a survey will be takenplace at Eurowindow
in Ho Chi Minh city.
Only work-related
factors will be
investigated in this
study. Other possible
factors (e.g. social
and cultural factor)
are beyond the scopeof this study.
Scope andLimitations
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LITERATURE REVIEW2
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1. Job satisfaction
Facet Satisfaction
The various aspectsor facets of the job
Overall Satisfaction :focuses on thegeneral internal
state of satisfactionor dissatisfaction
within theindividual.
Jobsatisfaction
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2. Job satisfaction and antecedent factors
Job Descriptive Index (JDI):
(1) pay(2) promotions
(3) supervision(4) co-workers(5) work itself
Smith et al (1969)
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2. Job satisfaction and antecedent factors
Adjusted Job Descriptive Index (AJDI):
(1) payment(2) promotions(3) supervision(4) co-workers(5) work itself (6) benefit(7) work enviroment
Tran Kim Dung (2005)
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3. The model research proposed
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JOB
SATISFATION
Work itself
Payment
Benefit
Work enviroment
Co-worker
Supervisor
Promotion
H 1
H 3
H 4
H 5
H 6
H 7
H 2
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RESEARCH METHODOLOGY3
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Data analysis
Data collectoin
- Cronbach alpha, EFA- Regression,T-Test
N= 202
- Problem statement - Literature review (AJDI)
Recommendation
the original scale of ADJI
Questionnaire - Group discussion with
eight expertsQualitativeresearch
Quantitative
research
Conclusion and
Hypothesis testing
1. Research design
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1. Research design
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(1)Qualitativeresearch :
Qualitative researchwas conducted bygroup discussionwith eight expertsfrom the draft toreview the originalscale of ADJI
Researchprocedure
(2) Quantitativeresearch:
+ Data collection
+ Data analysis and
hypothesis testing.
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2. Measuring instrument
Job Descriptive Index (JDI) : (1) work itself (5 items)
(2) promotion (5 items)
(3) Supervisor (6 items)
(4) Payment (5 items)
(5) Co-worker (3 items)
(6) Work environmnet (4 items)
(7) Benefits (4 items)
Tran (2005)
Job satisfaction (JS) : (3 items)
Tran (2005)
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2. Measuring instrument
Job satisfaction (JS) : (3 items) Tran (2005)
The survey questions by using 5 points Likert
scale:1 = ‘strongly disagree’
2 = ‘disagree’
3 = ‘either disagree or agree’
4 = ‘agree’ 5 = ‘strongly agree’
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3. Sampling
Exploratory Factor Analysis (EFA) : the number of samples to be 5 times the number changesobserved;
Regression analysis to achieve best results, thesample size to satisfy the formula: n ≥ 8k + 50
(n is the sample size and k is the number of independent variables of the model).
=>This research conducted with sample sizes of
about 200 is considered appropriate.
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DATA ANALYSIS AND FINDINGS4
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1. Cronbach's Alpha test results
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Construct ItemCronbach
Alpha
Correcteditem-total
correlation
WORK ITSELF 5 0.781 0.509
PAYMENT 4 0.888 0.709
BENEFIT 4 0.736 0.439
WORK ENVIROMENT 4 0.564 0.285
CO-WORKER 3 0.837 0.648
SUPERVISOR 6 0.855 0.544
PROMOTION 6 0.914 0.721
JOB SATISFATION 3 0.845 0.686
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2. Exploratory Factor Analysis (EFA)
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Job Descriptive Index (JDI) :
Factor loading of each of the 27 items vary from0.559 to 0.846.
In this testing, rotation method: Varimax withKaiser Normalization was applied providing betterreliability. There are 1 item of component’s benefit
to moved component’s pay (ben4).
KMO = 0.903; Chi-square = 3154.682, df = 351,Sig = .000
Job satisfaction (JS) : Factor loading of the 3 items vary from 0.858 to
0.896 .
KMO = 0.721; Chi-square = 253.390, df = 3, Sig= .000
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3. Summary results of testing scales
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Factors Items CronbachAlpha % of Variance Assessment
Working enviroment 4 0.564 is eliminated
Promotion 5 0.914
67.885 satisfied
Payment 5 0.888
Supervisor 6 0.855
Work itself 5 0.781
Co-worker 3 0.837
Benefit 3 0.736
Job Satisfaction 3 0.845 76.443 satisfied
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4. Revising the research model
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Construct Measurement scale
1 Promotion (PRO) pro1, pro2, pro3, pro4, pro5
2 Pay (PAY) pay1, pay2, pay3, pay4, ben4
3 Supervisor (SUP) sup1, sup2, sup3, sup4, sup5, sup6
4 Work itself (WORK) work1, work2, work3, work4, work5
5 Co-worker (COW) cow1, cow2, cow3
6 Benefit (BEN) ben1, ben2, ben3
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4. Revising the research model
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JOB
SATISFATION
Work itself
Payment
Benefit
Co-worker
Supervisor
Promotion
H 1
H 3
H 4
H 5
H 6
H 2
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5. Testing model
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Model
Unstandardized
Coefficients
Standardized
Coefficientst Sig.
Collinearity
Statistics
B Std. Error BetaToleran
ceVIF
1
(Constant) .210 .293 .717 .474
Promotion .143 .071 .149 2.003 .047 .484 2.065Pay .222 .061 .253 3.662 .000 .560 1.785
Supervisor .227 .094 .195 2.431 .016 .414 2.417
Work itself .289 .066 .256 4.383 .000 .780 1.282
Co-worker .102 .063 .101 1.628 .105 .695 1.439
Benefit -.023 .064 -.024 -.366 .715 .608 1.646
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5. Testing model
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An regressions equation with standardized coefficientsis established as follows:
JS = 0.149F1 + 0.253F2 + 0.195F3 + 0.256F4
In which: JS : Job satisfaction (JS);
F1 : Promotion (PRO);
F2 : Payment (PAY);
F3 : Supervisor (SUP);F4: Work itself (WORK);
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5. Testing hypotheses
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Hypotheses Relationship
Standardized
coefficient
Beta
Sig. Testing
hypotheses
H1 WORK ------------- JS 0.256 0.000 is supported
H2 PAY ----------------JS 0.253 0.000 is supported
H3 BEN ----------------JS -0.024 0.715 is rejected
H4 COW -------------- JS 0.101 0.105 is rejected
H5 SUP ----------------JS 0.195 0.016 is supported
H6 PRO ---------------JS 0.149 0.047 is supported
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Regression coefficients of model
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JOB
SATISFATION
Work itself
Payment
Benefit
Co-worker
Supervisor
Promotion
Beta = 0.256, (sig. = 0.00)
Beta = -0.024, (sig. = 0.715)is rejected
Beta = 0.101,(sig. = 0.105)is rejected
Beta = 0.195, (sig. = 0.016)
Beta = 0.149, (sig. = 0.047)
Beta = 0.253,(sig. = 0.000)
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5. Findings
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Variable Standardizedcoefficient Beta
Level of importance (the more larger, the
more important)
Promotion (PRO) 0.149 1
Supervisor (SUP) 0.195 2
Pay (PAY) 0.253 3
Work itself (WORK) 0.256 4
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CONCLUSIONS AND
RECOMMENDATIONS5
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1. Conclusion
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This study aimed to find out the factors affecting job satisfaction of employees, which set out waysto make more satisfied employees and reduce thethe turnover that is increasingly in the company.
Work itself, Payment, Supervisor and Promotionrespectively have positive impacts on Jobsatisfaction of employees at the Eurowindowcompany.
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2. Recommendations
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Work itself + Building a skillful team
+ Designing job levels
Promotion
+ Building a training system
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2. Recommendations
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Payment+ Building a skill matrix system and skill-basesalary increase
+ Building a reward & recognition system
Supervisor
+ Monthly performance feedback
+ Building organization culture
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3. Limitations
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Other variety, beyond the above-mentioned, havenot been considered. The research has not beenconsidered the impact of the workers’ behavioralresponse, organizational culture, social factors,work-life balance, economic crisis and marketconditions influencing the impact of the predictorsupon the outcome variety.
Furthermore, this study is limited in itsgeneralization, it suggests that particular
demographic characteristics can affect a person’slevel of satisfaction with a furniture operation
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