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Research Model on the Decision to Quit


- Need for achievement: Aim for outstanding results, achieve standards and strive for success.

- Need for power: Is the desire to have influence or the ability to influence others.

- Need for affiliation: Is the desire to have friendly and close relationships with others.


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1.1.3.4 Herzberg's two-factor theory

Herzberg proposed a two-factor model, which includes:

Research Model on the Decision to Quit

- Demotivate factor: Is the cause of employee dissatisfaction at work in an organization, which can be due to:

Organizational policies and regulations.

Inadequate supervision at work.

Working conditions do not meet employee expectations.

Wages and remuneration are not appropriate or contain many unfair elements.

Poor relationship with colleagues.

Relationships with all levels (superiors, subordinates) are not satisfactory.

- Motivator factor:

Achieve desired results.

Recognition from the organization, leaders and colleagues.

Responsibility.

Career advancement.

Desired growth.

Satisfaction factors are considered as motivational factors, dissatisfaction factors are considered as maintenance factors. Accordingly, Herzberg believes that only motivational factors can bring satisfaction to employees and if maintenance factors are not done well, it will lead to employee dissatisfaction.


Disgruntled and unmotivated employees

Factor

maintain

Employees are not dissatisfied but unmotivated

Factor


mobilize

Satisfied and motivated employees


Figure 1.3 Herzberg's two-factor model

http://www.valuebasedmanagement.net/methods_herzberg_two_factor_theory.html


1.1.3.5 Adams's Theory of Equity

Adams’s (1963) theory suggests that people tend to expect rewards that are commensurate with the effort or contribution they make. If an individual perceives that he or she is underpaid, he or she will reduce his or her effort to maintain “equilibrium”. If he or she believes that he or she is overpaid, he or she will work harder. Equity is also considered as the ratio of an employee’s contribution and the results received to other employees. In case of perceived inequity, they may demand an increase or decrease in their effort to achieve “equilibrium”.

1.1.3.6 Vroom's Expectancy Theory

V. Vroom's (1964) expectancy theory argues that human behavior and motivation are not necessarily determined by reality but by people's perceptions of their expectations in the future. This theory is built according to the formula:

Reward x Expectancy x Means = Motivation


Reward = attraction for a certain goal (What is the reward for me?).

Expectancy (performance) = employee's belief that if they work hard, the task will be completed (How hard do I have to work to achieve the goal).


Instrumentality (belief) = employees' belief that they will be rewarded for completing tasks (will people notice and appreciate my efforts?).

The result of these three elements is motivation. This is the source of power that leaders can use to steer the group to achieve the set goals. When an employee wants to be promoted at work, that promotion will be like a high reward for that employee. If an employee believes that when he works well, on schedule, ... he will be highly appreciated by everyone, it means that this employee has a high level of expectation. However, if that employee knows that the company will recruit people from outside sources to fill vacant positions or put them in management positions instead of promoting people from the company from the lower levels, that employee will have a low level of means and it will be difficult to encourage this employee to work better.


1.2 Research model on the decision to quit

1.2.1 Previous research models on the decision to quit


According to Janet Cheng Lian Chew's study on "the impact of human resource management practices on the retention of key employees in Australian organizations" (2004), the main factors affecting employees' intention to leave include: Fit (fit between individual and organization and fit between individual and job); Salary, rewards and recognition of employee achievements; Training and career development; Job challenges, leadership behavior; Workplace relations; Company policies; Working environment.


According to the research of Tran Thi Truc Linh, Master's thesis "Factors affecting the decision to quit at TMA IT company", University of Science - VNU HCM, (July 2007), the decision to quit of employees depends on factors such as pressure, working environment, salary, promotion/training/development, company brand, workplace relations, bonuses and benefits.


According to the research model in the banking sector in Pakistan by Hunjra et al. (2010), the factors affecting employee satisfaction include only 3 main factors: Autonomy, leadership behavior and team spirit.


According to a study by a group of students at Bryn Mawr College in the US on job changes. This group of students interviewed 97 female employees in many different fields in society such as: Textile, Hotel, Telecommunications, Banking and other domestic service industries,.. gave many reasons why employees decided to quit their jobs. The level of impact of these factors also varies for different industries on female respondents. Accordingly, the 8 reasons considered the most important are given:

Salary and working hours at the agency;

Layoffs, downsizing;

Dissatisfied with the company's management style

Dissatisfaction with the company's operations and processes

Training and coaching

Improvement of sanitation and health care

Promotion

Disease


1.2.2 Proposed research model


From the models mentioned in the theoretical basis section, the proposed research model is based on the research model of Janet Cheng Lian Chew. Reasons for choosing this model:

Janet Cheng Lian Chew's model gathers quite a lot of factors affecting the decision to quit a job that other studies have mentioned.

The research results of Janet Cheng Lian Chew showed that the impact of factors is quite large on the turnover variable.


The study was conducted in the Australian market, a dynamic and highly developed financial center, in line with the future development trend of the Vietnamese financial market.

The proposed research model has added the factor "Pressure at work" according to the opinions of the survey subjects in the preliminary interviews and of some experts in the group discussions. The reason is largely that with the rapid development of the financial market in general and the banking industry in particular, the business targets set for business departments are very high, and at the same time, employees, regardless of which department of financial institutions, are mostly a team of employees who will work in a multi-skilled team. This creates a culture of sharing ideas and knowledge across the international market and business units. Operating in a fiercely competitive field, financial institutions often have to provide complex financial services. The factor that ensures their success is human resources that are always ready to solve any difficulties. You may face professional challenges in a very large business or a myriad of problems that require analytical skills and the impact of what you are doing will be very wide and long-lasting. Therefore, the pressure and requirements of the job are often very high. And it is also one of the reasons why employees decide to quit and move to another working environment.


Suitability

Income

Training

and career development

Challenges at work

Decision to quit job

Relationship with leaders

Relationship with colleagues

Pressure at work


Figure 1.4 Proposed research model


1.2.3 Factors in the research model

1.2.3.1 Suitability

Includes person-job fit and person-organization fit.

- Person-job fit: Emphasizes the fit between person and job based on the perspective of the individual's awareness, skills or abilities with the job that the individual undertakes (Edwards, 1991). This fit


including the need for perfect provision and the need for perfect ability. In which, the need for perfect provision is the personal desires, wishes and the characteristics and nature of the job that satisfy those desires. Accordingly, personal desires include: Personal goals (Locke, Shaw, Saari and Latham, 1981), psychological needs (Dawis and Lofquist, 1984), Interest (Campbell and Hansen, 1981) and received value (Locke, 1976). The need for perfect ability means the job requirements for each individual to complete the job tasks well and the individual's ability to meet the requirements of the job undertaken, job requirements include knowledge, skills, qualifications, experience and attitudes (Caldwell and O'Reilly, 1990).

- Individual-organization fit: Defined as the similarity between an individual and an organization. It is the similarity between an individual's beliefs and the organization's or an individual's goals and the organization's goals (Kristof, 1996). According to Barnard (1938), individual-organization fit is defined as the individual's willingness to commit to an organization because the individual's desires and goals are consistent with the company's policies, guidelines, and culture.


Thus, people who are not well suited to their current job and organization tend to quit more than those who have a good fit between the individual and the job and the individual and the organization. Therefore, the hypothesis about the relationship between the fit variable and the decision to quit of employees in the Banking industry in Ho Chi Minh City is as follows:

H1 : The lower the perception of individual-organization fit and individual-job fit, the higher the decision to quit.


1.2.3.2 Income

Income is the amount of money that an individual, organization, region, country, etc. gets from work, investment or business, etc. In this study, the term income is the amount of money that an individual gets from working for a business or organization. This income does not include income from other jobs (not


related to the business or organization they are working for). Accordingly, which income will include basic salary, allowances (if any), bonuses including regular and irregular bonuses, commissions (if any) and other monetary benefits arising directly from the employee's current job. This income does not include benefits from the company (social insurance, health insurance, other types of insurance, etc.).

Wages: According to the International Labor Organization ILO, wages are remuneration or income expressed in money and determined by agreement between the employer and the employee. In a market economy, labor is considered a commodity, so wages are considered the price of labor, formed through an agreement between the employer and the employee, agreed upon by both parties in the labor contract and paid according to productivity, quality and efficiency of work. As for employees, wages are income from their labor process, the main part of income that directly affects the living standards of the majority of employees. Therefore, striving to increase wages is the goal and motivation for employees to develop their qualifications and working capacity.

Bonus: Essentially, it is an additional amount of money to the salary to better implement the principle of distribution according to labor and improve the efficiency of production and business of enterprises. Bonus is considered one of the material incentives for employees during the working process. It has a very positive effect on them to strive to do their work better, thereby improving labor productivity, product quality, and shortening time.

According to Willis (2000, p. 20), compensation is the most important issue when it comes to attracting and retaining talent. A fair salary is the foundation of agreements between employees and employers, with the assumption that money can influence their behavior (Parker and Wright 2001). A company's compensation system affects recruitment, retention

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