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Employee job satisfaction in vietnam banking industry the moderating role of ownership structure

UNIVERSITY OF ECONOMICS HO CHI MINH CITY
International School of Business
------------------------------

Pham Ngoc Truong

EMPLOYEE JOB SATISFACTION
IN VIETNAM BANKING INDUSTRY:
THE MODERATING ROLE OF
OWNERSHIP STRUCTURE

MASTER OF BUSINESS ADMINISTRATION

Ho Chi Minh City – Year 2018

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UNIVERSITY OF ECONOMICS HO CHI MINH CITY
International School of Business
------------------------------


Pham Ngoc Truong

EMPLOYEE JOB SATISFACTION
IN VIETNAM BANKING INDUSTRY:
THE MODERATING ROLE OF OWNERSHIP STRUCTURE

MASTER OF BUSINESS (HONOURS)

SUPERVISOR: DR. DOAN ANH TUAN
Ho Chi Minh City – Year 2018


Contents
List of figures .......................................................................................................................................3
List of tables .........................................................................................................................................4
List of abbreviations .............................................................................................................................5
ACKNOWLEDGEMENT .................................................................................................................6
ABSTRACT ........................................................................................................................................7
1. Introduction ......................................................................................................................................8
2. Literature review and hypotheses development .............................................................................13
2.1 Vietnamese banking system and ownership structure .............................................................13
2.2 Definition and determinants of job satisfaction .......................................................................14
2.3 Theories and analytical models ...............................................................................................17
2.3.1 Maslow's Theory of Needs (1943)........................................................................................17
2.3.2 Motivator/Hygiene Theory (Two-Factor Theory) ................................................................19
2.3.4 Need theory (McClelland) ....................................................................................................20
2.4 Hypotheses and research model...............................................................................................21
2.4.1 Nature of work ......................................................................................................................22
2.4.2 Salaries and benefits .............................................................................................................23
2.4.3 Recognition and motivation..................................................................................................23
2.4.4 Work relationship .................................................................................................................24
2.4.5 Development opportunities ...................................................................................................25
2.4.6 Job satisfaction of bank employees in state-own banks and private banks ..........................26
3. Research methodology ...................................................................................................................29
3.1. Research process.....................................................................................................................29
3.2. Data collection ........................................................................................................................34
3.3. Data analysis methods ............................................................................................................35
4. Results ............................................................................................................................................37
4.1. Sample description .................................................................................................................37


4.2. Cronbach’s Alpha and Exploratory factor analysis ................................................................38
4.3. Pearson correlation .................................................................................................................42
4.4 Multiple regression analysis ....................................................................................................43
4.5 Multiple group analysis ...........................................................................................................46
5. Discussion, Implications, Limitations and Conclusions .................................................................54
5.1 Discussion................................................................................................................................54
5.2 Managerial implications ..........................................................................................................56
5.3 Limitations ...............................................................................................................................57
5.4 Conclusion ...............................................................................................................................58
REFERENCES ...................................................................................................................................59
APPENDIX ........................................................................................................................................67

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List of figures
Figure 1: Maslow's hierarchy of needs
Figure 2: Conceptual model
Figure 3: Research process
Figure 4: CFA result
Figure 5: SEM result
Figure 6: SEM – multiple group result

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List of tables
Table 1: State-owned banks in Vietnam
Table 2: Measurement scale of construct
Table 3: Sample description
Table 4: Scale analysis result
Table 5: Rotated Component Matrix
Table 6: Summary of defined factors
Table 7: Pearson correlations result
Table 8: Multiple regression model summary
Table 9: Multiple regression analysis result
Table 10: Regression analysis result (SEM)
Table 11: Multiple group global test
Table 12: Multiple group local test

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List of abbreviations
CFA: Confirm Factor Analysis
EFA: Exploratory Factor Analysis
JDI: Job Descriptive Index
KMO: Kaiser - Mayer – Olkin statistics
SBV: State bank of Vietnam
SEM: Structural Equation Modeling

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ACKNOWLEDGEMENT
Employee job satisfaction in Vietnam banking industry – The moderating role of
ownership structure is the topic that I chose to study and do graduation thesis after two
years studying master’s program at International School of Business, University of
Economics Ho Chi Minh City.
To complete the dissertation, firstly, I would like to extend my deepest thanks to Dr.
Doan Anh Tuan who has guided me directly throughout the process. His ideas and
support are valuable contributions to the thesis that are completed on schedule and
demonstrate the perspective of the researcher.
Secondly, I would like to thank to my colleagues at Sacombank, my sister, my friends
of colleagues and my colleagues of friends who helped me speed up the data
collection process.
Thirdly, I would like to thank the proposal defense committee (Dr. Tran Ha Minh
Quan, Dr. Tran Phuong Thao, Dr. Nguyen Phong Nguyen) for evaluating and
contributing ideas to the thesis; Dr Nguyen Thi Mai Trang, Dr. Dinh Thai Hoang who
guided me research design and data analysis courses. This knowledge related directly
to the implementation of the thesis.
Finally, I would like to thank my parents for giving me the best conditions to complete
the dissertation. Thanks to my relatives and friends who have always been with me,
encouraged me to complete this program and this study.
Sincerely thank you!
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ABSTRACT
Research on employee satisfaction is very necessary in human resource management
and the result is applied in practice to improve personal well-being and organizational
effectiveness. This study aims to identify the factors contributing towards the job
satisfaction of employees in Vietnam banking industry and explore the difference in
level of employee satisfaction between state-owned banks and private-owned banks in
Vietnam. This research has found out four determinants of employee job satisfaction
including salaries and benefits, development opportunities, nature of work. This study
also shows in general that job satisfaction differs among bank employees in stateowned and private-owned banks. Multiple regression analysis was used to test five
main hypotheses while multiple group analysis was applied to examine the
moderating effects of ownership structure on job satisfaction. Based on the results, the
study suggests some managerial implications for improving the business efficiency.
Comparative results provide theoretical evidence for the banking industry in general
and managers in particular

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1. Introduction
For years, organizations have begun to focus on the concept of talent management
with the goal of finding, identifying, developing, and maintaining high quality human
resources for the business (Bratton & Gold, 2003). However, the detection and
selection of external resources is so difficult that labor market must call it the "war"
for talent selection. For this reason, many businesses have chosen a path, a new theory
aimed at a resource that is ready for future growth as well as for ensuring current
productivity. The understanding of "employees' minds and aspirations" is considered
as an important step in the talent management plan as well as building a working
environment in line with the development strategy of the enterprise (Devi & Nagini,
2013).
Furthermore, it is no difficult to recognize that organizations cannot achieve their
goals without quality personnel. According to Kalleberg and Mastekaasa (2001), most
companies have made great efforts in selecting applicants, however when these
applicant become full time employee, few enterprises have sufficient resources to
understand, sharing problems or aspirations of employees. This leads to the decrease
of performance and increase of turnover rate. Various studies also state that employee
satisfaction plays a vital role in work performance and employee engagement, such as
Spector (1997), Saari and Judge (2004), Luddy (2005) and Judge, Thoresen, Bono,
and Patton (2001). To solve these problems, we need to improve the level of job
satisfaction through increase the quality of some factors which directly impact. This is
the reason why it is essential and important to measure and research the job
satisfaction through factors influencing motivation among employees. This

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contributes positively to the planning of human resource management at working
place and brings more job satisfaction to employees, families and society.
According to Allen and Gale (2000) and Levine (2005), the banking system plays a
huge role in the economic development and macroeconomic stability of any country.
If a weak bank exists, it will lead to potential risk for all system. And human resources
are always a prerequisite in operating and developing the banking system to serve the
economy. Kelley (1990) states employees in banking sector have lower level of
satisfaction and empowerment than other industries. The repetitive job, unreasonable
salary and promotion, non-empowerment, stressful working environment directly
affects productivity. Moreover, banks desire to have excellent warriors to operate
business activities, decrease cost, increase revenue and profit. Bank employee
dissatisfaction have negative in poor job performance (Koh & El'Fred, 2001). Yee,
Yeung, and Cheng (2008) also prove that low level of employee satisfaction has a
negative relationship with customer’s satisfaction. In brief, employee satisfaction
evaluation is really a key element in improving bank performance and customer
satisfaction and the quality of banking system
Sinha and Shukla (2013) argue that private and public sector background is a
significant element in determining the work style and culture of an organization, job
satisfaction is influenced by private – public sector differences. While the foundation
which forms work culture for state-owned banks has been based on a concept towards
social-economy aspect, private sector banks aim mostly for profitability of its business
activities. In other words, the banks, which adopt different organizational structure,
have a tendency to craft different business objectives. According to Hart, Shleifer, and

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Vishny (1997), bank strategies and performance vary due to the variety of customer
penchants, targeted purchaser, scale, value chain, human resources which could be
driven by bank ownership structure. This leads to the differences in working style
between those banks and the result of George (2015) show that there are differences in
job satisfaction between employees in state-owned banks and private-owned banks.
Various studies have been conducted on employee satisfaction, however there are
fewer studies focusing on the differences of employee satisfaction between private
and public sector (Islam & Islam, 2014). In Vietnam, there is an outstanding research
relate job satisfaction by Tran (2005) who measures employee satisfaction using the
JDI scale and demand theory of Maslow (1943) and there are some researches which
concentrate on banking sector as Phan (2015), Mai and Bui (2013). They investigate
key factors affecting job satisfaction and examine the relationship between job
satisfaction and employee loyalty of commercial banks in Ho Chi Minh city.
Moreover, Nguyen, Mai, and Nguyen (2014) examine the factors influencing
organizational loyalty of banking employee in Ho Chi Minh city and Phan (2011)
studied elements create positive value for employee commercials banks in Hue. There
are few studies emphasized the differences of employee satisfaction between public
and private banks in Vietnam. The research of Phan (2015) has mentioned differences
in the level of employee satisfaction between foreign banks and domestic banks (not
Vietnam state-owned and private-owned banks). Thus, I expect to provide new
insights significant gap with the moderating role of ownership structure on employee
satisfaction in Vietnam banking industry.

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The purpose of this study is to identify factors contributing towards the job
satisfaction in banking industry and explore the difference in level of job satisfaction
between state-owned banks and private-owned banks in Vietnam. This study will help
candidates who are intending or are making the decision in choosing which banks to
work have an overall picture of working environment and job satisfaction. This
research also provides suggestions for banks' management adjust the personnel policy
to retain talent and increase operational efficiency. The comparative results provide
theoretical evidence for the banking industry in general and managers in particular.
To achieve the research objectives, this study will answer the following questions: (1),
What are factors affecting employee job satisfaction in Vietnam banking industry? (2),
Whether job satisfaction may be different for private-owned banks and state-owned
banks employees in Vietnam?
This thesis contributes to the literature in several ways. First, this research is related in
spirit to the approach of Phan (2015) and Nguyen et al. (2014) which provide an
overall and detail picture of human resources management and job satisfaction of
employees in banking industry and examine the relationship between job satisfaction
and employee engagement. Second, unlike these studies, which concentrate on the
level of job satisfaction of employee in a specific bank or in banking industry in
general, the research contributes to the literature exploring the difference in level of
job satisfaction between two banking groups (state-owned banks and private-owned
banks) in Vietnam. Since some related studies investigate deeply the factors affecting
job satisfaction as Bui (2013) and Phan (2015), this thesis further examine the
moderating effect of ownership to contribute to the board of director of thanks in

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planning operational strategy, maintaining and developing excellent employees,
making employees more satisfied, attracting talents, and limiting the "brain drain"
from rival banks. Different from the recent studies in which general ownership
concentration is used to test ownership involvement, this paper mainly compares the
smoothing behavior of government-controlled shareholders with that of their nongovernment counterparts. This study also supports to applicants in depth view of the
working environment, welfare, job satisfaction of employees in two banking groups to
make the best choice for their workplace.
This research is conducted in five stages and divided in five sections. Section 1 Introduction, gives the overall picture the study, introduces the research background,
research problem, research objectives, research questions and the research
contribution. Section 2 - Literature review, presents earlier studies about the topic and
related research. Based on that, the author proposes a research model. Section 3 Research methodology covers the development of scales, sample selection, data
collection tools, how the data collection process is conducted, and statistical data
analysis techniques used in the research. Section 4 - Results analyzes and interprets
the results of data analysis in section 3. Section 5 – Discussion, Conclusions,
Implications and Limitations concludes main findings of the research, discuss
limitations of the study and recommend some management strategies.

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2. Literature review and hypotheses development
2.1 Vietnamese banking system and ownership structure
National Bank of Vietnam was officially established under Decree No. 15 / SL dated 6
May 1951 by President Ho Chi Minh. Over the past six decades, the banking system
of Vietnam has been continuously developing and making important contributions to
the process of protecting, building and developing the country. Currently, National
Bank of Vietnam has changed the name to State bank of Vietnam (SBV) which is the
central bank under the Government of Vietnam. This is the main financial regulatory
agency which is responsible for monetary issues and management, advising on
monetary policies to the Government of Viet Nam such as exchange rate policy,
interest rate policy, foreign currency reserve management, composing laws on
banking business and credit institutions, approving the establishment of banks and
credit institutions, management of state-owned commercial banks.
The State bank of Vietnam oversees the operations of 04 state-owned commercial
banks, 01 public policy bank, 31 joint-stock (private) commercial banks, 04 jointventure banks, 96 representative offices and branches of foreign banks, 27 financial
and leasing companies, and 9 wholly-owned foreign banks.
The 4 state-owned banks include Bank for Agriculture and Rural Development
(Agribank), Industrial and commercial Bank of Vietnam (Vietinbank), Bank for
Investment and Development of Vietnam (BIDV), Bank for Foreign Trade of Vietnam
(Vietcombank) are state-owned banks with more than 50%.

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Table 1: State-owned banks in Vietnam
Bank

Type

Main share holder

1

Agribank

Unlisted

SBV (100%)

2

BIDV

Listed

SBV (95.8%)

3

Vietinbank

Listed

SBV (64.5%)

4

Vietcombank

Listed

SBV (91.0%)

(Source: State bank of Vietnam)

There are 31 private-owned banks in the whole system, however in this research we
only focus on 6 biggest private-owned banks in term of total asset and charter capital
which are: Sai Gon Thuong Tin joint stock commercial bank (Sacombank), Asia
Commercial bank (ACB), Millitary Commercial joint stock commercial bank (MB),
Vietnam prosperity joint stock commercial bank (VPB), Vietnam technological and
commercial joint stock bank (TCB), Sai Gon commercial bank (SCB).
2.2 Definition and determinants of job satisfaction
A number of researchers have argued that an employee is considered to be satisfied in
the workplace when he or she is fully happy with material and mental factors at work
such as

Graham (1982), Uddin, Luva, and Hossain (2012), Spector (1997) and

Robbins (1993). Further, Vroom (1964) points out that "job satisfaction is a feeling in
which employees are clearly oriented towards work in the organization and truly
enjoying the job." According to Locke and Dunnette (1976) satisfaction is attitude
which is expressed by feeling and trust, and Spector (1997) states that job satisfaction
is the attitude to job preferences in general and to aspects of work in particular. In

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addition, Kreitner and Kinicki (2007) define job satisfaction as emotional responses to
different aspects of the work. According to Robbins (1993), job satisfaction is a
positive state from a job evaluation or a work experiences. Küskü (2003) argues that
job satisfaction reflects the needs and desires of individuals to be responsive and the
level of employee perception about their work. This meaning is derived from Maslow
(1943) demand scale theory that workers are satisfied when they meet demand from
low to high. Wright and Kim (2004) also point out that job satisfaction is a match
between what employees want from work and what they feel from work. In brief, job
satisfaction can be defined as the positive level of emotion or attitudes that individuals
have toward their job. When one says that he has high level of job satisfaction, it
means he really likes his job, feels good about it and appreciates his work.
According to Smith, Kendall, and Hulin (1969), the level of satisfaction with the
components or aspects of work is recognition of contributions during the work
process. Luddy (2005) emphasizes the elements that affect job satisfaction, including
job position, supervisory level, relationship with colleagues, job content, treatment
and the policies containing promotion, material conditions of the work environment,
organizational structure. Unsatisfactory employees will lead to low labor productivity,
both physically and mentally. Employees with job satisfaction will have less job
change and less job retrenchment. Abadi, Jalilvand, Sharif, Salimi, and Khanzadeh
(2011) find that working place, expectation, intrinsic value impact much on job
satisfaction while Al-Hussami (2008) believes job satisfaction comes from both the
nature of work and other values that make life more comfortable. According to
Mulinge and Mueller (1998), Schaufeli, Bakker, and Van Rhenen (2009), minor

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convenience costs, reward of spiritual and material value create engagement between
employees and activities. Reward, gratitude, allowances are used to evaluate the level
of employee job satisfaction (Zobal, 1998). James and Mathew (2012) find that
employees are happy with their co-workers, resources and administration. Chen,
Ployhart, Thomas, Anderson, and Bliese (2011) study that there were relationships
between job satisfaction and future work expectations. Herzberg, Mausner, and
Snyderman (1978) suggest that two groups of factors related to job satisfaction were
motivation factors and maintenance factors. Motivation factors include achievement,
recognition, challenging work, progress, maturity in work. Maintenance factors
include company policy and corporate governance, superiors' supervision, salaries,
interpersonal relationships, working conditions, personal life, assurance for work. If
corporates maintain well motivation and maintenance factors, it will give employees
more inspiration and energy. This will lead to increased productivity, increased job
performance and job satisfaction. Job characteristics model of Hackman and Oldham
(1974) has five core characteristics: skill diversity, job insight, meaningful work, work
autonomy, and feedback. This core features have influence on three psychological
states: understanding the meaning of work, having responsibility for work results, and
perception of work result. From those states of psychology, the quality of job result
will perform. Hulin and Smith (1967) also find similar results, he argues that there are
five factors that affect job satisfaction: satisfaction with nature of work, satisfaction
with supervision, satisfaction with job prospects, satisfaction with promotion and
satisfaction with colleagues.

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Two years later, Descriptive Index Job Descriptive Index (JDI) by Smith et al. (1969)
measured one’s satisfaction in five facets: coworkers, the work itself, salary,
opportunities for promotion and supervision. The value and reliability of JDI are high
valued both in practice and in theory (Mayer & Schoorman, 1992). In Vietnam, Tran
(2005) conducted a study to measure job satisfaction using the JDI scale and demand
theory of Maslow (1943). The main objective of this study was to test the validity of
the JDI scales as well as to determine the factors that affect job satisfaction of
employees in Vietnam. The result had two new factors: welfare and working
conditions.
There are numerous definitions of job satisfaction and the impact factors of job
satisfaction. In general, job satisfaction is an employee's assessment of the issues
involved in the performance of their work.
2.3 Theories and analytical models
There are many different studies on job satisfaction. Research on job satisfaction or
work motivation is a research that study methods to please employees in many
aspects. This can be built from theories of motivation and job satisfaction. The
characteristics of these theories have many determinants that affect employee
satisfaction therefore these are used to refer to the research model.
2.3.1 Maslow's Theory of Needs (1943)
Maslow's hierarchy of needs was introduced in 1943 and the theory is based on his
observation of human instincts. This theory has assisted us to understand more
logically regarding fundamental human needs as in the hierarchy of needs.
Specifically, he has classified various needs and arranged systematically into five
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distinctive categories, based on the levels of necessity from the lowest to the highest
in a tower. The structure of the tower has five layers (figure 1), in which human needs
are listed in a pyramid-like hierarchical order. The basic needs at the bottom of the
hierarchy must be satisfied before thinking of higher demands. Higher demands will
arise when all basic needs below (bottom of the tower) are met. Five layers in
Maslow's hierarchy of needs are: Physiological, Safety, Love / Belonging, Esteem and
Self – actualization.
From that we can conclude that, the difference in human needs will create the
difference in job satisfaction and employee behaviors. Therefore, to help employees
get satisfaction at work, managers need to understand where employees stand in this
hierarchy and behave in accordance with the specific characteristics of that level of
hierarchy. Some factors affecting job satisfaction nowadays stand at the top three level
of hierarchy: salaries and benefits, the compliance with the nature of work, the work
relationship, the recognition & motivation, the development opportunities.
Figure 1:

Self actualization
Esteem
Love/Belonging
Safety
Physiological

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2.3.2 Motivator/Hygiene Theory (Two-Factor Theory)
Two-Factor Theory or Herzberg's Boby Motivation-Hygiene Theory was published by
Frederick Herzberg, a psychologist. This theory is based primarily on the results of
investigative and analytical surveys conducted in Pittsburgh, Pennsylvania.
Herzberg's studies provided data for him to propose a two-factor model:
 Demotivate factor: the factor of employee dissatisfaction at work in any
organization, which may be due to: (i) The regime and policies of that
organization, (ii) Inappropriate supervision, (iii) Conditions of employment do
not meet the expectations of the employee, (iv) Wages and remuneration are
unsuitable or contain many unfair elements, (v) Relationship with co-workers
"problematic", (vi) Relations with all levels (superiors, subordinates) do not
achieve satisfaction.
 Motivator factor: the agent of job satisfaction: (i) Achievement, (ii) The
recognition of organizations, leaders, and colleagues, (iii) Responsibility, (iv)
Advancement, (v) Growth.
Most of the factors affecting job satisfaction are support motivate factors and against
demotivate factors such as salaries and benefits, the compliance with the nature of
work, the work relationship, the recognition & motivation, the development
opportunities.

2.3.3 The Equity Theory, John Stacey Adams (1963)
Adams' Equity Theory was originally developed in the 1960s, was named after the
Behavioral psychologist John Stacey Adams. Specifically, one of the most important
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arguments to be identified in Adams' theory is that, there have been undoubtedly
various subconscious factors exist inside an employee's mind to evaluate and address
the relationship with his current job and employers. As such, this theory was mainly
crafted on the belief that employees might feel slightly agitated when the perceived
"input" workflow and the corresponding "output" result are somewhat imbalanced. As
a result, they would likely to loosen their effort, become discouraged or in other worse
cases, cause disturbance within the workplace.

Equity theory suggests that there should be a somewhat reasonable balance between
such "input" and "output", for instance, an employee who could manage difficult tasks
well, is highly seasoned in the field and express tolerance, enthusiasm should be
rewarded with higher wages, welfare or even a psychologically intangible asset as
recognition from the managers. From then, it would fundamentally foster a strong and
healthy bonding between the company and its employees, and overall, they will feel
significantly contented and motivated towards organizational tasks. Employees who
make a positive contribution to the development of the bank, they deserve to receive
worthy “output” include high salaries and benefits, the compliance with the nature of
work, the warm work relationship, the recognition & motivation, the development
opportunities.
2.3.4 Need theory (McClelland)
David McClelland is an American psychologist. In 1960 he argued that people are
motivated by the three main components: achievement, affiliation and power.

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 Need for achievement: People who have need for achievement are eager to
accomplish challenging goals with their own efforts. They like to be successful
in the competition and need to get clear feedback about their performance.
 Need for power: people who have need for power often want to influence and
control resources, people if they are beneficial to them.
 Need for affiliation: people in this group often desire to have a close and
friendly relationship with the people around. The need for alliances makes
people strive for friendship, preferring cooperation rather than competition, the
desire to build relationships based on mutual understanding.
The need for achievement, power and affiliation is also expressed through factors
affecting job satisfaction such as salaries and benefits, the compliance with the nature
of work, the work relationship, the recognition & motivation, the development
opportunities.
2.4 Hypotheses and research model
Based on the results of previous studies on job satisfaction and the actual situation
through survey in banking industry, this study selected the factors that affect job
satisfaction as follows: the nature of work, salaries and benefits, recognition and
motivation, work relationship, development opportunities. Job satisfaction is the
dependent variable that is impacted by the five independent variables mentioned
above by employees of state own banks and private banks. The change of these factors
in a positive or negative way will increase or decrease the level of job satisfaction of
employees in banking industry.

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2.4.1 Nature of work
The nature of work is one of the leading factors affecting the employee satisfaction
(Hackman & Lawler, 1971). The characteristic of job such as the creativity, the
repetition, the innovation will suit different group of employees. Compliance with
different job characteristics will help employees feel more comfortable and nurturing
work for a long time. Hackman and Oldham (1976) argue that every job can be broken
down into five characteristics, including the skill variety: (i), Task identity Employees will feel a higher level of meaning in their work when they are fully
engaged in a task and understand it. (ii), Task significance - Work is more meaningful
if it not only provides certain value to the person performing the task but also affects
people outside the organization, including their family or friends. (iii), Autonomy Employees are able to determine success or failure when doing the job. (iv), Feedback
- When getting the feedback, employees will understand what they need to do to
improve performance in the future. In Vietnam, Phan (2015) also shows that the role
of nature of work to the motivation of banking employees in Ho Chi Minh City. The
nature of work shows diversity, creativity, challenge, opportunity to promote personal
skills. When performing a job that requires a variety of skills, especially those skills
that are relevant to the level and understanding of the worker, they will also find their
work meaningful, making them more satisfied in the workplace. This study testes the
hypothesis H1:
H1: The more suitable nature of work, the higher level of job satisfaction

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2.4.2 Salaries and benefits
The salaries and benefits are shown in the needs of physiology and safety in Maslow's
theory of need (1943). This is the most important factor for staff in the studies of
Simons and Enz (1995) in the United States and Charles and Marshall (1992) in the
Caribbean. Welfare plays a vital role in determining the level of job satisfaction. A
good income and benefits policy must be demonstrated at the salary level which is
consistent to the capacity and level of contribution.

Diversified welfare policy

demonstrates the interest of the management for employees that makes employees feel
satisfied, contributing and valued. According to Tran (2005), welfare expresses the
interest of enterprises to the life of workers that stimulates employees to work hard
and stick with the business. From the above arguments, this study tests the hypothesis
H2:
H2: There is a positive relationship between salaries and benefits and job satisfaction
2.4.3 Recognition and motivation
According to Maurer (2001), motivation and recognition through rewards are one of
the fifteen main determinants influencing employee well-being. The lack of factors
will seriously reduce the level of dedication of the staff to organizations. Locke and
Dunnette (1976) found that the recognition is the feedback for employees’
competence and that it is the reward of the employees’ performances. Through these
forms, employees can fix mistakes in the past as well as improve performances and set
higher goals in daily demonstrations. Recognition influences job satisfaction as it
responds to growth expectations in psychology, equity and income. The study of Mai
and Bui (2013) also shows the similar result, the level of employee satisfaction is high
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when they receive recognition and motivation from colleagues and superiors. Based
on these arguments, this study tests the hypothesis H3:
H3: There is a positive relationship between recognition and motivation and job
satisfaction
2.4.4 Work relationship
Motivation is often spontaneous when employees have a good leader who they
respect. A company may have a good working environment, salary, welfare or
remuneration policy for employees, but a poor leader can mitigate these advantages
and lose the motivation of the subordinates. According to Grant (2007), the motivation
of an employee depends a lot on what the leader does. Each of their actions has a
direct or indirect impact on the motivation of employees on both the positive or
negative side and it depends on the seniority of management and leadership. WillisShattuck et al. (2008) state that poor communication between management and staff
reduces motivation. When employees feel lack of trust or lack of connection from the
leader, they will be able to lose motivation and effort in the workplace.
The relationship with colleagues is also very important in the level of job satisfaction.
A working environment in which colleagues are open, friendly, willing to help, share
experiences affect the motivation of employees and vice versa (Nguyen, 2010).
Similar to relationship with superiors, staff should have the support from co-worker in
daily work or in emergency, feel comfortable when interacting with colleagues.
Dedicated and trustworthy colleagues create value and satisfaction in the workplace.
From the above arguments, this study tests the hypothesis H4:
H4: There is a positive relationship between work relationships and job satisfaction
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