The impact of job satisfaction on employee commitment to the organization at joint stock commercial banks in Ho Chi Minh City

CHAPTER 1: OVERVIEW OF THE TOPIC

1.1 Reasons for choosing the topic

Job satisfaction and employee commitment to the organization play a very important and decisive role in the success of the organization's development in a competitive environment. When employees are satisfied with their jobs, they will be more motivated to work, and will be more attached and loyal to the organization. This is also what businesses always want to achieve from their employees.

In recent years, the issue of employees quitting their jobs in banks has been mentioned quite a lot, but there has not been a specific direction and way to reduce the wave of resignations that is creeping into these organizations, especially in the banking industry. The success of banks now depends not on capital and technology but on human resources. Human resources are also assets, but they are very mobile assets, they can abandon their banks at any time, and this asset can even be "stolen" at any time if banks do not have appropriate policies. A fierce competition for high-quality human resources has been and is taking place among banks.

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How to make employees satisfied with their work and committed to the organization is always a difficult problem for organizational leaders. To answer the above question, many researchers in the world as well as in Vietnam have found the relationship between job satisfaction and commitment to the organization for each of their research fields, such as in the medical field (research by Mahmoud AL-Hussami, 2008), the hotel service field (Andrew Hale Feinstein), the tax field (Cemile Celik) ..., in Vietnam, there is a study by Tran Kim Dung (2005) on "Needs, employee satisfaction and commitment to the organization".

In particular, the banking sector in Vietnam has also had many related studies, but mainly studies in a specific bank such as Nguyen Thanh Phong's (2013) study on the impact of job satisfaction on employee engagement.

employee commitment to the Bank for Agriculture and Rural Development of Ben Tre. There has been no general study on the impact of job satisfaction on employee commitment in the banking industry in general; Vietnamese banks have not really paid attention to and invested properly in human resource management to improve job satisfaction and employee commitment. Based on the above requirements and the author's passion to contribute to the development of human resources at the Vietnam Joint Stock Commercial Bank for Industry and Trade - where the author is working, the thesis " The impact of job satisfaction on employee commitment to the organization at joint stock commercial banks (JSC) in Ho Chi Minh City (HCMC) " was conducted to specifically survey the impact of job satisfaction on employee commitment in joint stock commercial banks in HCMC. Hopefully, the results of this study will help Vietnamese banks in general and Vietnam Joint Stock Commercial Bank for Industry and Trade in particular to understand more precisely the factors affecting employee engagement in their organization, thereby having more appropriate policies in management leading to increased employee engagement.

1.2 Research objectives

The study aims to clarify the impact of job satisfaction on employee commitment in the organization for employees in commercial banks in Ho Chi Minh City. The topic sets out the following specific objectives:

- Identify the components of job satisfaction that affect employee commitment to the organization in commercial banks in Ho Chi Minh City.

- Measure the impact of job satisfaction components on employee commitment to the organization.

- Give some recommendations and suggestions from the research results

1.3 Research object and scope

Research object: The impact of job satisfaction on employee commitment in organizations at commercial banks in Ho Chi Minh City.

Scope of research: Research on the impact of job satisfaction components on employee engagement components in the organization including emotional engagement, maintenance engagement and moral engagement.

1.4 Research methods

The research was conducted in two main phases:

- Qualitative research: Based on theoretical foundations, previous research models in the world and Vietnam related to the research topic, combined with the opinions of experts with practical experience. Extract appropriate factors to apply in your research model, set up a preliminary survey table.

- Quantitative research: The author conducted group discussions and directly interviewed a number of friends and colleagues who were the survey subjects using a preliminary survey questionnaire based on the factors identified in phase 1. The survey results will be recorded, summarized and used as a basis for editing and issuing the official survey questionnaire and starting to interview the survey subjects. Collect the survey results and process the data collected after the survey.

1.5 Significance of the topic

Through the results of the study, banks will have information about employees' job satisfaction and their commitment to the organization at commercial banks in Ho Chi Minh City. The results of the study will be an objective scientific basis to help leaders in banks better understand their employees and come up with solutions that need to be focused on to improve job satisfaction and employee commitment to the organization.

1.6 Structure of the research topic

Chapter 1: Overview of the topic

Chapter 2: Theoretical basis and research model Chapter 3: Research method

Chapter 4: Analysis of research results Chapter 5: Conclusion and implications.

CHAPTER 2 : THEORETICAL BASIS AND RESEARCH MODEL

The introduction provides an overview of the research topic. Next, chapter 2 will present the basic contents of theories related to job satisfaction and employee commitment to the organization. The components of organizational commitment from the researchers' perspective are also presented in this chapter. From there, build a research model and state the hypotheses.

2.1. Theory of job satisfaction

2.1.1. Definition

There are many definitions of job satisfaction. According to James L Price (1997), job satisfaction is defined as the extent to which employees feel and have positive orientations towards working in the organization (James L Price, 1997, p.470).

Job satisfaction is also defined as the positive feelings that employees have towards the work they are doing (Schermerhorn, Hunt and Osborn, 1997:98); When an employee feels happy and joyful at work, we can say that he is satisfied with his job.

According to Schemerhon (1993) cited by Luddy (2005), job satisfaction is defined as the affective and emotional response to various aspects of an employee's job.

According to Spector (1997), job satisfaction is simply the extent to which employees enjoy their jobs, while according to Ellickson and Logsdon (2001), job satisfaction is defined as the extent to which employees enjoy their jobs, which is an attitude based on employees' perceptions (positive or negative) of their jobs or work environment.

There are many different definitions of employee job satisfaction as mentioned above, each researcher has a different perspective and explanation of job satisfaction to use in their research. In general, job satisfaction is understood as the feeling of liking and aiming for

job. Employee job satisfaction is defined and measured in two aspects: general satisfaction with the job and satisfaction with job components. General satisfaction represents the general feeling on all aspects of the job. The concept of general satisfaction is used in studies by Levy and William (1998), Currivan (1999), Cook and Wall (1980), Ellickson (2002), Gaertner (1999), Kacmar (1999), Ting (1997)….. Another perspective considers job satisfaction as the attitude that affects and records employees about different aspects of their jobs (Smith PC Kendal LM and Hulin C.L1969). The job dimension approach is used in studies by Stanton and Croaaley (2000), Schwepker (2001), Yoursef (2000). Both approaches are suitable for measuring employee job satisfaction (Price 1997). However, using the job component approach will help managers know more about the strengths and weaknesses in running the organization and which activities are most or least appreciated by employees (Deconinck and Stilwell CD, 2002).

2.1.2. Components of job satisfaction

In this study, the Job Descriptive Index (JDI) scale established by Smith et al (1969) is used, because JDI is highly appreciated in both research and practice. Price (1997) believes that JDI is the tool of choice for studies measuring employee satisfaction at work. In the last 20 years of the 20th century alone, JDI was used in more than 600 published studies (Ajmi 2001). The study uses Smith's 5 aspects of job satisfaction with the following main contents:

 Nature of work : related to the challenges of the job, the opportunities to use personal abilities and the feeling of enjoyment when doing the job. The following elements of the nature of work will be considered:

- The job allows good use of personal abilities.

- The job is very interesting.

- The job is challenging.

- Facilities and working means.

 Training and advancement opportunities: related to employees' perceptions of training opportunities, personal development and advancement opportunities within the organization. Factors regarding training and advancement opportunities considered include:

- The bank's training program is effective.

- The bank's promotion policy is fair.

- The bank regularly improves the qualifications of its staff.

- Personal development opportunities…….

 Leadership: involves the relationships between employees and immediate superiors; support from superiors; leadership style and the ability of leaders to perform the functions of management in the organization. Leadership factors considered include:

- Exemplary leaders.

- Officials have words and actions that go hand in hand.

- Trust in leadership

- Support from superiors when needed…..

 Colleagues: Are feelings related to behaviors, relationships with colleagues at work in the workplace, coordination and mutual assistance in work with colleagues. Factors about colleagues considered include:

- Comfortable and pleasant colleagues.

- Have team spirit

- Ready to help each other.

- There is high consensus

 Salary: salary satisfaction is related to employees' perception of fairness in pay. Salary satisfaction is measured based on the following criteria:

- Workers can live entirely on their income from the bank.

- Wages and income are paid fairly.

- Salary commensurate with work results.

- Employees are satisfied with the salary regime.

The validity and reliability of the JDI are highly regarded, however, even in developed industrial countries, the JDI has been criticized as being both “too complex” (Price 1997) and “limited to only five aspects of work and may have aspects that do not fully cover the elements of the job” (Buffum and Konick 1982).

Through preliminary research by group discussion with 8 office staff of Vietnam Joint Stock Commercial Bank for Industry and Trade, Branch 9, Ho Chi Minh City on the components of job satisfaction, the author was suggested to add 3 more aspects of job components to JDI to measure the level of satisfaction of employees in the banking industry in Ho Chi Minh City today, the 3 additional components are:

 Brand: related to employee pride in the organization's brand.

 Innovation: related to the way of innovating and improving working methods in the organization.

 Work pressure: related to the workload as well as the working pressure of employees in the organization.

In research topics in Vietnam, Tran Kim Dung added two more factors: Welfare and working conditions or pressure. The research results have proven that the above two factors in working conditions in Vietnam ensure the reliability and value of the scale (research on needs, employee satisfaction and the level of commitment to the organization - Tran Kim Dung, 07/2005). The three suggested factors were also added in the study on job satisfaction by Crossman and Bassem (2003).

Thus, the total job component aspects used to measure employee job satisfaction in the study include:

1. Nature of work