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CHAPTER II: LITERATURE REVIEW

2.3. The factors affect the employee’s satisfaction

Factors affecting job satisfaction of employees include: The nature of work, opportunities for development, leadership, colleagues, salary / income and other benefits.

2.3.1. The Working condition

The job satisfaction of employee’s dependent on the satisfaction with the composition of work, the nature of works (Loke and King 1995).

The compatibility of work with workers is expressed through many

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aspects of the nature of work, such as job matching and professional capacity of the employees or not; employees have a clear understanding of what you do or do not, work can provide the impetus dedication and creativity of the employees or not; work can promote the ability of individual workers or not.

The employee will be very pleased if the organization has a reasonable division of labor, their participation conditional on the job is, they are independent in their work, workload and working time of physical. In addition, other conditions such as meaningful work, the job requires high capability...

would increase the satisfaction of employees 2.3.2. Promotion opportunities

Promotion opportunities affecting job satisfaction of employees. In Vietnam, the study by Tran (2005)suggests that opportunities for promotion have a positive impact on job satisfaction. In these studies, “opportunities for promotion factors to be considered under the aspects such as professional training, with personal development opportunities, there are opportunities for those who have the ability, fairness HR policy development, create opportunities to improve the professional skills of workers”.

2.3.3. Leadership

“Leadership brings satisfaction to the workers through the creation of fair treatment, expressed an interest in their subordinates, have the capacity, visibility and operating capabilities as well as support staff work” as mentioned by Robins et al, (2007).

Leadership plays an important role between job satisfaction of employee’s work comes from the support and guidance of the commander with the related tasks of the employees. The attitude and behavior of staff leaders may also be a factor affecting the behavior of cooperation or cooperation of the workers.

The level of the leadership team decided to the satisfaction of the employees. If the organization has a team of human resource management, the poor quality of human resource development will be difficult from the beginning. Poor administrators will plan unreasonable human resources; hiring

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the wrong person or inaccurate assessment. Conversely charge of a team of qualified personnel, the leaders have democratic style, creating much sympathy from the employees can promote their work and reduce disagreements at work.

2.3.4. Colleague

Colleague relations and co-workers support will contribute to increasing job satisfaction of employees (Johns, 1996; Kreitner & Luddy tutorial Kinicki 2001, 2005).

In an organization, often the work will be closely related to each other, so the workers in the organization will need to come into contact with each other.

On the other hand, due to communication needs of people, certainly in the organization colleagues will have a relationship with each other. This relationship affects job satisfaction in two opposite directions. If an organization in which employees in the same position next to the corner of each other, causing a lot of pressure to another person, the job satisfaction of employees will decrease.

Conversely, satisfaction of employees will increase as colleagues within the organization ready to help each other, to work together effectively, the relationship is not strained, and friendly working environment and interpersonal relations is trustworthy.

2.3.5. Salaries and other benefits

Some studies suggest that “there is little empirical evidence shows that wages can affect job satisfaction. The employee can enter the high-income, but they still do not feel satisfied when a job does not match or can not integrate into the job” (Luddy, 2005). But in reality, wages are still factors affect the satisfaction of employees.

Wages are factors to consider aspects such as: the fit between wages at the employee's contribution, the employee can live with the current level of income, other than income, such as salary bonuses and allowances are reasonable division. Also consider relational aspects compares with earnings of other entities.

12 2.4. Research model and hypotheses

Base on the theory and related studies, this research come out with the independent variable that affects the satisfaction of employees include:

- Salaries

From the independent variables and the dependent variable model research above is developed as Figure 2.3:

Figure 2.1 Research model The research hypothesis includes:

Salaries factor in this study was reviewed under the aspects of mismatch between salaries with contributions from employees or compare with salaries of that same rank in other companies. Although some studies show that salaries have little impact on job satisfaction. However, with a developing country, the salaries remain a key factor.

H1: Salaries have a positive relationship on job satisfaction

Factor of "working conditions" reflects the relevance of the nature of

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employees get a reasonable working arrangements, creating conditions to promote all employee’s abilities. Lady (2005) and Duong (2014), examined the relationship between working conditions and the overall satisfaction and show a positive relationship. So this study suggests:

H2: Working conditions have a positive relationshipon employee satisfaction

In Vietnam, the empirical study of Ha and Vo (2011) showed a positive relationship of colleagues and job satisfaction. So this research hypothesis as follows:

H3: Relationship of colleagues and employee satisfaction

Leadership here is understood as the direct supervisor of the employee.

Duong (2014) have confirmed an editable that by creating equal treatment, showing interest in their subordinates, as well as the support to staff, leaders can bring satisfaction for employees. So this study suggests the following:

H4: The decision of the company leader has a positive relationship on employee satisfaction

Besides salaries, welfare also affects the job satisfaction of employees.

The welfare here might be form of bonuses, benefits in terms of health, leisure services, housing services and transport. Research suggests:

H5: Welfare policies have a positive relationship on employees' satisfaction

Promotion opportunities are the opportunities to develop and weigh up to a higher position in the organization or not. Herzberg's theory shows opportunities for promotion are factors motivate employees.

H6: Training and promotion have a positiverelationship on employee satisfaction.

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