Thesis. - Mai Tuan Linh (18.6.2013) Ver Eng - Official

CHAPTER I
INTRODUCTION
1.1. Justification
In the period of the economic development in Vietnam recently there has been a big
change in awareness of business management on workers in the enterprise. Businesses
increasingly emphasis on building human resources issues, especially in selecting and retaining
top talents who hold a key role in the company.
The employees used to be considered as the input costs, but now a day employees are viewed
as assets, valuable resources who decide the success or failure of a business. Personel stability
will help businesses save time and costs (recruitment, training, etc..), reduce errors (caused by
new employees who are not familiar with the new job), creat trust and solidarity in the enterprise.
From which staff will consider the business as an ideal place for them to promote their
capabilities as well as long-term commitment, the most important thing is that the stability will
help businesses work more effectively, create the trust from customers in quality products and
service business. So, in order to have a strong team work, business owners do not mind rough up
the terms of attractive remuneration, willing to spend large investments in creating the best and
most comfortable work space,..., but many people still feel less satisfied with their work. Many
people feel the pressure is too big, boss and co-workers are pinched, unfair competition, there is
no place to maximize their abilities and eventually they will leave the company for other better
work environment company, a more scientific environment, in which there is fair competition
they are not under pressure from the boss or co-workers and from which they can freely promote
their talent.
A survey conducted by CareerBuilder - a leading employment website that has shown that job
dissatisfaction of workers is increasing: every four people feel dissatisfied with their jobs, and
the rate of some people who are not satisfied with their work increase an average of 20% in the
last two years; every ten respondents, six people are intending to leave the current job to find
another job within the next two years.
In fact many of them only focused on working and earning money they do not care about
other issues even they are suffering much oppression, they are pinched from colleagues,
superiors, they dare not and doom to struggle for a peaceful work; however, the people who want
a comfortable work environment, not stress, not under pressure from colleagues and superiors.
Then they worked with enthusiasm and fervor.
Therefore, the employers are always interested in how to help employees achieve maximum
satisfaction in the job because only the satisfaction can help them work enthusiasticaly
fervorandly and effectively, so that they will associate with businesses.
In recent years, enterprises in the country are always difficult in recruiting personnel. Pho Yen
Mechanical Joint Stock Company (FOMECO) is not an exception. Last year the company had to
settle for a lot of cases to resign for various reasons, mostly for termination of the contract to
move to another company. This makes the board worried; they think that there is no job
satisfaction for those who resign. Company leaders understand that "bleeding" talents is a very
dangerous thing for the company if there is no remedy. Therefore, this study was conducted to
"measure the job satisfaction of employees in the Pho Yen Mechanical Joint Stock Company
(FOMECO)". Research findings will help the company better understand the factors that can
bring in job satisfaction for employees, thereby making appropriate policies and know how to
use the most effective labor.
1.2. Research objectives
1.2.1. The general objective
The project is made for the purpose of determining the best factor that affects the satisfaction
level of employees for Pho Yen Mechanical joint-stock company.
1.2.2. Specific objectives
Research objectives of the project include:
- The systematization of the theoretical model on the satisfaction level of employees for
businesses to build up the model to study and assess the satisfaction level of employees for the
company.
- Identify the factors that are important in assessing the impact on the satisfaction level of
employees for the company.
- Suggest some solutions for the company to improve the level of employee satisfaction and
work efficiency.
1.3. Research scope

1.3.1. Research objects
Object of study is the level of satisfaction with the job perceived by the workers, from
workers/employees to the deputy chiefs (except for the Board) at Pho Yen Mechanical joint-stock
company.
1.3.2. Scope of study
- Time: This study uses descriptive statistics for the period from January 14 th to April 10th, 2013;
the main tool to collect data is questions and questionnaire samples
- Place: The study was conducted at Pho Yen mechanical joint-stock company.
- Content: satisfaction with the job perceived by the workers.
1.4. Contributions
Research results will help the company leadership have an overview of the job satisfaction in
many factors, different aspects and job satisfaction in general workers' shareholding at Pho Yen
mechanical joint-stock company. At the same time aware the scale used to measure job
satisfaction and factors affecting the job satisfaction of employees, from which to find
appropriate solutions to improve customer satisfaction of employees in the company.
CHAPTER 2
LITERATURE REVIEW
2.1. Theoretical foundation
2.1.1. The concept of job satisfaction level of employees
There are many definitions of the job satisfaction level. Job satisfaction can be measured at a
general level; can also measure satisfaction with each component of the work.
2.1.1.1. The concept of the general job satisfaction level
According to Kotler (2001), the degree of a person's state of feeling derived from the
comparison of the results obtained from the product with his or her expectations.
Locke (1976) defined that job satisfaction is understood that workers are really excited for
their work.
Weiss (1967) argued that the job satisfaction is an attitude about work represented by feelings,
beliefs and behaviors of employees.
According to Spector (1997) Job satisfaction is simply the way people like their work and
other aspects of their work. This is the level where people satisfy or do not satisfy with their
work.
2.1.1.2. The concept of satisfaction for each job components
According to Smith, Kendal and Hulin (1969), the satisfaction level with the components or
aspects of the work is the influence attitudes and recognition of staff on different aspects of the
job (salary, work nature, training and promotion opportunities, support from colleagues and
superiors, welfare) of them.
Thus, for this research the author will use the concept of satisfaction for each work component to
measure job satisfaction level of employees working at Pho Yen mechanical JSC.
2.1.2. Some theories on job satisfaction level of employees
2.1.2.1. Maslows Hierarchy of needs (1943)
Hierarchy of needs built by Maslow is one of the most widely used models in the study of
personal motives. Needs of individuals are very rich and diverse, so meeting the needs is also
complicated. According to Maslow the human needs are divided into five levels: physiological,
safety, social, self-esteem and self-actualization.
Figure 2.1 Maslows hierarchy of needs model

5
4
3
5. Self-actualization
4. Self-Esteem
3. Beloing and Love
2. Safety
1. Physiological
(Source: Internet)
According to this theory, human needs appear in order from low to high. When the low
demand is met the higher demand will appear. So, managers must know to create motivation for
employees to work better, help them secure more work by satisfying their current needs. But it is
important for administrators to implement the motto "feeding when hungry, water when thirsty ",
that is to find out if your employees are at which demand level, to give suitable solutions.
2.1.2.2. Two-factor theory of Frederic Herzberg (1959)
This theory is based on the motivation view as a result of the interaction of many factors
including the elements that make up the satisfaction and dissatisfaction. Each element itself
consists of those both sides depending on how it is implemented, how it is met to see clearly the
nature of the elements. This theory is divided into two factor groups:
+ Promoting factor group: These are factors that create satisfaction, achievement, recognition of
achievement, the nature of work, job responsibilities and promotions. This is the basic needs of
the workers participating in working. The character of this is, if not fulfilled, leading to
dissatisfaction, if satisfied, there will be motivation.
+ Maintains factor group: including the elements of the work environment of employees, level of
supervision, salary, job guidance, relationships with people, the working conditions. If these
factors are well-organized, it can prevent the effects that are not satisfied with the work of the
employees.
2.1.2.3. McClellands theory of need for achievement

Theory of McClelland launched three human needs, namely:
+ Achievement demand: the effort, the effort to achieve success, what they want to achieve
the best results.
+ Demand for power: is the need to dominate, control, lord others as the way they want.
+ Demand for connection: social communication needs, desire for intimate relationships, and
intimacy with others towards their goals.
McClelland's achievement needs are presented in this study in the form of job characteristics.
Jobs should be designed so that employees can "achieve" what they desire. Human alliance needs
is reflected in relationships with superiors and colleagues. Finally, the demand for power is also
done in the promotion opportunity.
2.1.2.4. Adams' equity theory (1963)
J. Stacey Adams said that employees tend to evaluate fairness by comparing their effort to
what they get and then compare their rates with the proportion of colleagues within the company.
If the result of the comparison is equal, they will continue efforting to work. If remuneration
received exceeds their expectations, they will tend to increase their effort at work, whereas if
they receive lower remuneration than their contributions, they will tend to reduce their effort to
find other solutions or absent or termination during working hours.
This theory can also be considered in the perspective of the subject of this thesis. An
employee can not get satisfaction if they realize that they are being treated unfairly in the wages,
advancement opportunities and training support from superiors.
2.1.2.5. Job Description Index JDI by Smith, Kendall and Hulin (1969)
Smith, Kendall, Hulin of Cornell University have developed a job description index (Job
Descriptive Index) and they are highly appreciated in theory and practice, their work is expressed
through 5 scale factors as follows: (a) The nature of work, (b) Payment of wages, (c) Promotion,
(d) monitoring, (e) Co-workers.
There are also a number of other theories present issues that is related to the level of satisfaction
in the work of Vroom (1964), Hackman and Oldham (1975) ...
2.1.3. The factors affecting the job satisfaction of employees in the enterprise
2.1.3.1. Income
When mentioning the jobs and the quality of the job, majority of people always evaluate,
measure the income it brings. Income is considered as a measure for the job as well as the
success of the employee at work. Therefore, paying a properly suited salary to the capacity of
workers has always been a challenging problem for managers in all businesses. Higher income
will make employees more satisfied materially, they can live with the wages they earn, so that
they can dedicate to work, they work feverishly to prove their value.
Income impacts greatly on the morale of the workers. When workers are paid as worthy as
their dedication, they will be excited and enthusiastic about the job, they would not thought to
leave the company to find another job, they will be fine mental and higher responsible for the
assigned work.
2.1.3.2. Relationships with colleagues
Work production gains most effectively when there is coordination and mutual assistance
between the members of the company. Satisfaction of employees with colleagues in the company
appears only when colleagues are friendly, happy and comfortable with each other and are
willing to help each other in the job and in life. These factors have a great influence on job
satisfaction of employees.
2.1.3.3. Support from superiors
To create the job satisfaction of employees, leaders need to know to treat fairly the
employees; the leader should give the emergency support and encouragement to motivate staff to
complete their work most effectively.
2.1.3.4. Training and promotion opportunities
People never satisfy with what they have, they always strive to achieve what they want. At
work the staff always wants to strive to be promoted, when their position is deputy they want to
strive to head position, and so in my mind they always have higher ambitions. As Maslow said
human needs appear in order from low to high. When low demand is satisfed the higher demand
will appear. To satisfy the employees, managers must know to make fair competition policy, and
facilitate personal development opportunities for employees. And just when promotion
opportunities are shared among all the new workers the motivation to strive and they do not to
leave the company that will help yield higher efficiency. Administrators should also open
training courses and seminars to improve knowledge and skills for workers.
2.1.3.5. Work factors
To avoid pressure on the employees, the managers must know how to distribute the work
properly to the right people with the right jobs. A good manager always knows how to use
talents. In a business not everyone is good; every person has their own strengths and weaknesses.
So, to be successful, managers must know the right people, the right people in the right place,
know their own ability. So new workers can promote the best ability and help achieve the highest
performance.
In fact, a lot of people get bored with their current job. The repetition at work, no innovation that
creates uninspired. There are those who prefer to work in groups, there are those who prefer to
work independently to express creativity and self-determination, some people prefer to work
under the seniors command... But in general, employees want to do a job that suits to their right
forte, their capacity, the work gives them the opportunity to use the skills trained at school and
they can work freely. These factors will help to avoid boredom for workers and bring about job
satisfaction which helps employees to work with enthusiasm and dedication to the business.
2.1.3.6. Working conditions
To let workers can work safely; managers must fully meet the rising demand for machinery
and equipment, sanitation, safety equipment, labor, appropriate working time and break time,
corporate culture and welfare policies for employees. Building a working environment in which
all members of the company are able to promote all conditions and demonstrate their unique
capabilities. Workers want to work in a clean and modern environment, where employees feel
respected with scientific style at work and they do not like working in dangerous conditions,
disadvantages that is inconvenient for them. Good working environment does not cause
depression at work; employees will no longer feel comfortable and enjoy their job that affecs
labor productivity. Therefore, managers must focus on improving the working conditions for
employees, creating a working environment where employees feel comfortable, excited to work
and develop their full potential, his forte in order to achieve the highest labor productivity.
2.1.3.7. Welfare
Welfare is the benefits that people get from his company in addition to the money that he
earned.
Administrators must ensure the rights and modes as well as allowances for employees that make
a new push to encourage employees to work. When welfare is guaranteed, the employee will be
willing to work, and do not intend to leave the company for other company to search a better
remuneration.
There are also a number of other factors affecting the job satisfaction of employees, such as job
autonomy, job stability, job performance evaluation, communication...
2.2. Related empirical studies
Here are some of the results of research on job satisfaction level of employees.
2.2.1. Andrews study (2002)
Andrew's survey in 2002 gave the results of research on job satisfaction in one of the
following countries:
In the United States, 49% of employees surveyed said they felt satisfied with their jobs and only
a few replied not satisfied. The other researchs showed that employees are very satisfied with the
current job 62% In Denmark and respectively 30% in Japan.
According to the above results of the study, the women's job satisfaction level is higher than
men's and the satisfaction with age is U-shaped curve.
The study identified the factors that raise the level of job satisfaction include:
- Safety at work.
- Small workplace.
- High income.
- Colleague Relationship.
- Less moving time.
- Monitoring problem.
- Public Relations.
- The opportunity to improve their learning.
According to the study results also showed that satisfaction level of female is higher than the
level of job satisfaction of male with U-shaped curve age, the issue of job safty is the most
important.
2.2.2. Luddy's study (2005)
Luddy used JDI to learn the job satisfaction of employees in the Institute of Public Health in the
Western Cape, South Africa. Luddy had the satisfaction survey in five aspects of job satisfaction,
such as income, promotion, supervision from their superiors, colleagues and the nature of the
job. The results show that workers at the Institute of Public Health in the Western Cape satisfied
mostly with their colleagues, followed by the nature of work and the supervision. Promotion
opportunities and salary are two the factors that workers feel discontent. In addition,
occupational category, race, gender, education level, seniority, age, and income and position
influenced significantly job satisfaction.
Although this Luddy study's results said that all 5 factors as the nature of work, the treatment, the
supervision, promotion and co-workers are related to the job satisfaction of employees (the
number is 203 samples), he said that future studies need to be further done to confirm this
relationship. A notable feature of this study is that Luddy he had tried dividing factors affecting
job satisfaction factors into two groups. The first group is the factors and marital status. The
second group called institutional factors including the nature of work, the compensation / salary,
superior supervision, promotion opportunities, and position.
2.2.3. Boeve's study (2007)
Boeve (2007) conducted a study of job satisfaction of lecturers in the faculty of doctor
assistant training in medical schools in the United States based on using two-factor theories of
Herberg and work description index of Smith, Kendall & Hulin. Accordingly, the job satisfaction
factors are divided in to two categories: intrinsic factors including the nature of work and
promotion opportunities and outside factor group including salary, superior support and
colleague relationship. The purpose of this study was to test the validity of both theories. In this
Boeves study, the quantitative statistics were applied as Cronbach's alpha coefficient, Spearman
correlation coefficient and linear regression.
The results of the correlation analysis of the JDI factor for job satisfaction showed general nature
of the work factor, colleague relationship and development opportunities are most strongly
correlated with the job satisfaction, while superior support and wage have a weak correlation
10
with job satisfaction of these lecturers. Regression analysis showed that in addition to the four
factors are the nature of work, relationship with colleagues, opportunities for development and
support from their superiors, working period at the faculty also affects the satisfaction of the
lecturers (The longer they work the more satisfied they are). This also explains the job
satisfaction in this study is greater than the satisfaction of each of the JDI factors. It is clear that
in addition to the factors mentioned in the JDI other factors also affect the job satisfaction at
work and the working duration is a factor. Duration of work that affects job satisfaction in this
case is due to the particular nature of scientific work in this teaching job. Among the influencing
factors to be considered in this study, the nature of the job is the most influential factor on the
overall job satisfaction. Through his research, Boeve also tested the correctness of the theory of
Herzberg and JDI.
2.2.4. The study of Tran Kim Dung et al
The study of Tran Kim Dung et al (2005) surveys about 500 employees who are working full
time showed that the wage satisfaction level has a negative relationship with the level of effort,
of the members. This paradox is explained by the lack of business knowledge and skills about the
market wage system, employers do not know how to design payroll system in a scientific way;
payment is often fraught with emotional, arbitrary and not clearly defined policy. As a result, the
more they effort to contribute to the organization the more they dissatisfied with the current wage
policy.
2.2.5. Study of Smith, Kendall v Hulin (1969)
Job Descriptive Index (JDI) by Smith, Kendall and Hulin (1969), use 72 items to measure the
working satisfaction level of employees in five aspects (the nature of work, payment, promotion,
co-workers, and the supervision of their superiors. Validity and reliability of the JDI is highly
appreciated in both practical and theory with more than 50% of all published studies is JDI used.
Boeve recently (2007) added the factor working time in the organization." downside of JDI is
that there is no measuring ladder overall satisfaction level.
2.3. Theoretical framework
2.3.1. Study Model
From a theoretical and practical basis, based on research by Smith, Kendall and Hulin of JDI,
the thesis conducted linear modeling with the dependent variable (Y) is the job satisfaction, and
11
seven independent variables (X) are: (1) income, (2) colleagues relationship, (3) conditions and
working environment, (4) training and promotion opportunity, (5) the support from superiors, (6)
job characteristics, (7) welfare.
Diagram:
Figure 2.2. Linear model Chart
Income
Colleague Relationship
Working environment
Training and promotion
Opportunities
Support from superiors
Job Satisfaction
Level
Individual factors
+ Age
+ Gender
+ Qualifications
+ Income
+ Job position
Job characteristics
Welfare
3.1.5. The hypothesis for the study model

On the basis of the research results on the influence factors to the overall satisfaction of
employees in the company there is hypothesis for the research models as follows:
H1: When employees are satisfied with the salary they get, they are more satisfied with the work.
H2: When employees are satisfied with the support and the help of colleagues, they are more
satisfied with the work.
H3: When employees are satisfied with the working conditions and environment of the company,
they are more satisfied with the work.
H4: When employees are satisfied with the training and promotion opportunities of the company,
they are more satisfied with the work.
H5: When employees are satisfied with the support and help from superiors, they are more
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H6: When employees are satisfied with social welfare policies of the company, they are more
H7: When employees are satisfied with the job characteristics, they are more satisfied with the
work.
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CHAPTER 3
RESEARCH METHODOLOGY
3.1. Analytical framework
3.1.1. Analytical model
Model: Input - Process - Output.
Input: shows the profile of the asked person about age, gender, education level, working
seniority and general information on business related to research problems. It also includes the
respondent's perception of the level of job satisfaction of employees.
Process: shows the data collection, assessment through questionnaire analysis, checklists and
the data explaination.
Output: Shows that companys consideration on the level of job satisfaction of employees.
Figure 3.1. The model of measuring the satisfaction level of the employees working at
FOMECO
Input
RESPONDENTS
PROFILE
- Age
- Gender
- Work seniority
- Education attainment
- Job position
RESPONDENTS JOB
SATISFACTION
- Income
- Relationships with
colleague
- Improving the job
satisfaction level of
employees in the
companyes
- Working conditions
- Training and
promotion opportunities
- Support from superiors
- Work factors
- Welfare
Process
ANALYSIS AND
EVALUATION
- Data collection
- Data processing
- Data Analysis
Output
MESUARING THE
JOB
SATISFACTION
LEVEL OF THE
EMPLOYEES AT
THE PHO YEN
MECHANICAL JSC
- Solution
- Recommendations
- Improving the job
satisfaction level of
employees in the
company
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3.1.2. Research questions

The thesis has been made to answer the following questions:
- Why the satisfaction level of the employees should be measured at work in the Pho Yen
mechanical Joint Stock Company?
- Which factors can affect job satisfaction of employees in the Pho Yen mechanical Joint
Stock Company?
- Are workers in Pho Yen mechanical joint stock company really pleased with their work or
not?
- What is the result after implementing the survey, rating the job satisfaction level of
employees in Pho Yen mechanical joint stock company?
- What is the solution to improve the job satisfaction level of employees in Pho Yen
mechanical joint stock company?
3.1.3. Explaining variables
Independent variable X (also known as explanatory variables): Reflects the causes that lead to
results.
The dependent variable Y (or explanatory variables): Reflects an aspect, an attribute of the
research issues that will be changed when impact variables change, in other words: It is the
response to the effects of independent variables.
In addition, the thesis also studies the characteristics and needs of workers, such as gender,
education level, working time, average income, the improvement need in the business, and the
current difficulties of workers.
3.2. Data collection
3.2.1. Primary data
Purpose of collecting information is to assess the work and the job satisfaction level and job
performance of each employee at Pho Yen mechanical jont stock company. Then point out that at
which rate the job satisfaction level of employees is, and compare it with the criteria and policies
that the company has launched to meet the needs and satisfaction of employees.
To gather data, in the research, the questionnaire survey for interviewing directly and indirectly
the employees. The content of the questions in the questionnaire are presented in the appendix.
15
3.2.2. Secondary data

Secondary information collected through the reports on the situation, results of the business
operations of the company, financial report, analysis and evaluation report on the labor
productivity, and the report on the labor safety... to understand the general situation of the
company.
- Sampling and sample size
In order to collect reliable informations the researcher has to determine the sample size and the
use of reasonable scale.
Due to the huge number of employees in the Pho Yen mechanical company so author selected
about 50% of the company's employees to investigate and interview. 100% Number of
management staff of the company will be selected for inclusion in the calculation of sample size.
We have the formula of Slovin sampling:
n=
In which:
N
1 N .e 2
n: the number of people who was interviewed

N: the number of people at the same level
e = 0,05 (%)
Figure 3.2: Table of sampling number.
Level
Managers
Employees
Total
N
35
324
683
n
32
179
211
(Source: Statistical results)
So the sample size (total number of respondents) is 211, of which 179 are workers, employees at
the company, 32 are managers in the company.
- The content of the questionnaire
The questionnaire paper consists of three main sections:
- Guide to answer the question.
- Questionnaire survey.
- Personal information of those surveyed.
(See Appendix 1, page 69. Form employee survey)
- The survey process:
16
Step 1: Combining random sample and choosing sample according to the introduction with
the number of sample is 211.
Step 2: Developing a survey to 211 people available at Pho Yen mechanical joint-stock
company.
Step 3: Gathering the survey and collecting information then aggregate results.
Step 4: Drawing Conclusions.
3.3. Data analysis
3.3.1. Method of aggregating data
- For secondary information
After collecting the secondary data, I classify, organize information in order to prioritize the
importance of information.
- For primary information
To assess the level of job satisfaction of the employees who were asked to rate the 5 level
Likert scale as follows:
Figure 3.3. 5 level Likert scale
Scale
5
4
3
2
1
Range
4.01 5.00
3.01 4.00
2.01 3.00
1.01 2.00
0.01 1.00
Verbal explanation
Completely satisfied
Satisfied
Temporarily satisfied
Dissatisfied
Very dissatisfied
(Source: Internet)
Questionnaires after completion will be checked and typed into the computer using Excel
software to perform aggregate and process data.
Synthetic Methodology: Based on survey results to synthesize the comments on the contents
need asking.
Handling: Synthesize feedback results in scale on Excel software.
3.3.2. Methods of analyzing data
17
- Methods of descriptive statistics: are used to describe the basic properties of data collected
from experimental studies on various forms.
Descriptive statistics: the process of gathering, synthesizing and processing data to transform
data into information.
The method used to represent the data:
+ Table
+ Graphs
+ Number
- Methods of comparison
Comparison method is the method of reviewing analysis criteria by relying on the comparison
with a target data base (the original target). The criteria for comparison are: Plan target of a
business period, the implementation of the previous business period, typical enterprise target in
the same branch.
Conditions for comparison are: The comparison target must be consistent with the elements of
space, time, and the same content of economic, units of measurement and calculation methods.
Method of comparing has two forms: absolute and relative comparison. Absolute comparison is
based on the difference of the two comparison criteria which are analysis and base targets. The
relative comparison is the proportion (%) of the analysis target compared with the original target
to show the completed degree or the ratio of the absolute difference with the original targets to
express growth speed.
With this method we can compare the data, reports, labor productivity, production and
business activity results in the previous quarters, years to assess, identify changes to take
measures to adjust accordingly.
- Deviding method
The thesis is devided according to two criterias: the managers and workers and employees
are working in FOMECO.
CHAPTER 4
RESEARCH FINDINGS
18
4.1. Overview of Pho Yen Mechanical JSC

4.1.1. The formation and development process of the company
4.1.1.1. Legal status and formation history
- PHO YEN MECHANICAL JOINT STOCK COMPANY - FOMECO, formerly known as
Pho Yen bearings factory was established by establishment decision dated on 10.19.1974Decision No: 283/QD/TCNSDT Minister of Heavy Industry (the Ministry of Industry and
Trade).
- 1996 the Company was renamed as Pho Yen Mechanical Corporation under Vietnam Engine
and Agricultural Machinery Corporation (VEAM) Decision No.: 40/QD-TCCB on 01/06/1996
by the Ministry of Industry.
- May 04/2002, the company changed its name as Pho Yen mechanics:
+ Pursuant to Decree 74-CP of November 1 st, 1995 of the Government on the functions, tasks,
powers and organizational structure of the Ministry of Industry;
+ Pursuant to Decree 50-CP of August 28th, 1996 of the Government on the establishment,
reorganization, dissolution Bankruptcy and State Decree No.38 of April 28 th, 1997 on amending
and supplementing a number of articles of Decree No. 50-CP;
+ At the request of the Vietnam Engine and Agricultural Machinery Corporation on document
No. 80 / MDL-NN / VP March 12th, 2002 on renaming the Pho Yen Machanical Corporation;
+ At the request of the head of Organization - Personnel Department.
- In 2003 the company converted to Pho yen Machinery Corporation under the Decision No:
12/12/2003 215/2003/QD-BCN of the Ministry of industry.
4.1.1.2. Head office for operation and transaction
- Name: Pho Yen Mechanical Joint Stock Company
- Abbreviation: FOMECO
- Address: Bai Bong Town - Pho Yen - Thai Nguyen Province.
- Tel: 02803 863083
Fax: 02803 863118
- Email: fomeco@vnn.vn
Web: http://www.fomeco.vn
- Trading Account No.: 102010000442491 VietinBank - Vietnam Joint Stock Commercial Bank
for Industry and trade- Song Cong- Thai Nguyen branch.
- Initial capital: capital: 5.467 billion.
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4.1.1.3. The development process of the company and the achievements

+ From formation period to before 2000:
The company was firstly put into operation so there are many difficulties, the production
technology is still backward, has no experience in production, quality of products is not high, is
difficult to search a stable market. However, by the time the country situation remained difficult,
the subsidy period, the company had achieved the set targets. In 1982, the company was awarded
the national Medal of employees first class, second class and merits by the province.
Stage after 2000:
The company has produced steady, focus on improving product quality, technological
innovation, and market expansion across the country.
Currently, the company's products are reputed in the market, gaining the respect from customers.
All products of the company are quality management standard ISO 900:2000.
4.1.2. Functions and duties of the company
4.1.2.1. Function
Designing, manufacturing, selling and purchasing materials, parts, equipment, bearings,
tools, manufacturing and saling automotive parts, agricultural machinery, motorcycle, roberval
balance, overhead track scale, installing industrial machinery, tractors, cars and other mechanical
products.
4.1.2.2. Duties
The main task of the Pho Yen Machinery Corporation is as producing engineering products such
as bearings, gearboxes, bevel, automotive parts, motorcycles to meet the increasing demands of
the domestic and abroad market in terms of quantity and quality. In addition, the company also
ensures officers and employees living, implements the state obligation to contribute to the
development of national economy.
4.1.3 The company's management structure

Organizational structure of the company is arranged according to the following principles:
20
+ Indirect compact organizational struture, reducing the focal task, ensuring fast resolution of
the management.
+ Using effective utilization and building capacity, accountability of leaders.
+ Organizing the production in line with business plan of the company.
+ The Company applies market mechanisms, flexible employers to ensure and encourage
skilled workers
Chart 4.1: Organizational Chart of FOMECO.
21
Stockholder Board
Supervisory
Board
Management Board
Equi
pmen
t
repai
ring
facto
ry
Heat
treat
ment
facto
ry
Beari
ngs
prod
ucing
facto
ry
Produc-ing factori-es
Desi
gn
Tech
nolog
y
Cent
er
Finan
ce
and
Acco
untin
g
Cent
er
Research and
Develo
-pment
Center
(R&D)
Prod
ucing
mang
erme
nt
cente
r
Mark
et
busin
ess
cente
r
The functi-ons
center
Ener
gy
engin
eerin
g
equip
ment
Cent
er
Engi
neeri
ng
facto
ry 1
Engi
neeri
ng
facto
ry 2
Prod
uctio
n
plan
moni
torin
g
Centr
e
Board of directors
(Source: Human resource department-FOMECO)

Trade Promotion
Center
+ Stokeholder Board: is the highest management department, have full right to represent the
company to decide all matters relating to the rights and obligations of the company.
22
+ Board of Directors: The board is elected by Stoke holder Board, is directly responsible in
charge of all business operations.
+ Board of Supervisors: is elected by Stoke holder Board whose duty is to supervise and control
and investigate all activities of the Managerment Board and the Board of Directors to ensure the
rights of the members in the company.
+ The function centers:
- Prodution Management and Executive Center: managing, organizing labor, arranging internal
labor...
- Business market center: introducing and consuming.
- Finance and accounting center: There are accounting tasks, ensuring financial accurately,
transparently, supervising business activities; assisting the director control production, the
company's business, financial statement preparation.
- Design Technology Center: Preparing production plan by month, quarter or year in the
company, planning short and long term production. In charge of the technical issues, product
manufacturing technology, researching, improving technology, organizing, managing, and
assessing initiatives.
- Energy Technical device Center: Responsible for repairing machinery, equipment and power
supply for the entire company.
- Production plan monitoring Centre: supervising the companys business as planned.
- Trade Promotion Centre: supporting the product policy, pricing and distribution policy of the
company.
- Research and Development Center: Market Research, capture market demand, researching,
improving product design.
+ The manufacturing factories:
- Bearings producing factory
- Bearings producing factory: Specializing in manufacturing all kinds of bearings for machine
tools.
- Heat treatment factory: heating specialist items in the company and orders outside the
company.
- Equipment repairing factory: Responsible for repairing machinery and equipment.
- Engineering factory 1: Specializing in producing parts, tools of molds, jigs for the other factory
in the company, processing and producing mechanical items such as rollers, conveyor for units
and coal mining, cement factories.
- Engineering factory 2: Producing the goods for Honda Vietnam Company as: cone, pot, bowl,
nut, and scooter.
23
4.1.4. The situation in terms of capital, labor and technical infrastructure of the company
4.1.4.1. The capital situation
FOMECO is now 51% owned shares under Vietnam Engine and Agricultural Machinery
Corporation (VEAM) so the capital is previously granted by the state. After equitization, the state
capital declines, the capital and loans increase.
4.1.4.2. The labor situation
With large-scale production, Pho Yen Mechanical Joint Stock Company has qualified and
skillful staffs with large number. To develop, the labor factor is essential, management and
employers will effectively promote business activities smoothly and effectively.
Table 4.2: The situation of workers at FOMECO 2012
Criterion
Total number of employees
2012
Rate (%)
683
1. According to the nature of labor

-
Total direct labor
504
73.8%
- Total indirect labor

2. According to qualified labor
179
26.2%
- University and college
101
14.78%
- Intermediate, technical workers
466
68.22%
- Other
3. According to gender
116
17%
- Male
557
81.55%
- Female
4. According to age.
126
18.45%
Under 30 years old
324
47.44%
From 30 to 45 years old
232
34%
- Over 45 years old.

5. According to working duration
127
18.56%
The indefinite working contract
401
58.71%
Working contracts 1 to 3 years
46
6.73%
Working contracts under 1 year
115
16.84%
Not subject to contract
121
24
The above table shows, the number of employees is relatively big. The number of qualified
employees accounts for a large proportion. For the company produces technical items so most
labors are male.
To meet the needs of employers with increasingly levels, the company has training programs,
fostering employees skill such as applicating job training forms, at workplace organizing
workshops, conferences, seminars, worker level training and retraining to create a new political
theory training, training on occupational safety...
+ Strong point: workforce with an average age of 32 is enthusiastic determined young force. The
company always creates an environment for employees to develop expertise and professional
organizations to improve their skills in school, additional knowledge. The company has the
human resources policies to attract young workers who have good morals in particular. Working
Policy is reasonable for 8 hours / day, the company has diet shifts for workers in public holidays,
allowed under provisions of the Labor Code, workers are equipped and in labor safety mode, ful
social insurance. In addition, the company also has preferential regimes such as tourism
organizations every year, employee incentives, organizing holiday activities such as 8/3,
birthdays for staff and employees...
+ Limit: bulky staff management doesnt promote the efficient management, discipline is not
strict. Teams of inexperienced young workers, self-discipline consciousness make it difficult to
manage labor.
4.1.4.3. The situation of technical facilities
Pho Yen Machinary Corporation is mechanical production company specializing in parts,
molding fittings, bearings, auto parts motorcycle ... requires high precision devices equipped
with the modern advanced epuiptment. Technical facilities ensure good manufacturing, always
equipped with appropriate and innovative work requirements and improve labor productivity.
Machinery imported with high value and high accuracy.
4.1.5. Summary results of the company's business in the years from 2010 to 2012
In recent years, the domestic and foreign economy meets difficulties. Inflation economic
crisis increases so the factories face difficulties in production and consumption. However, the
Pho Yen Machinary Corporation still completed the plan, sales remained strong.
25
Table 4.3: Status of the business results of the company.

No
Quota
Unit
2011
2012
Disparity
Price
Sales providing
goods and services
VN
42.806.830.819
51.181.781.818
8.374.950.999
119.5%
2
3
Cost of goods sold

Cost of sales
VN
VN
36.229.534.685
2.284.719.379
46.032.278.020
419.329.238
9.802.743.335
-1.865.390.141
127.06%
18.35%
Business
administration cost
VN
3.351.037.549
3.318.483.193
-32.554.356
99.03%
Financial cost
Other incomes
Other costs
Profit before
Tax
VN
VN
VN
917.357.303
205.797.167
167.007.532
1.399.388.104
88.163.662
51.856.765
481.980.801
-117.633.505
-115.150.767
152.54%
42.84%
31.05%
VN
80.107.883
63.105.060
-17.002.823
78.77%
Business income Tax
VN
20.026.971
15.776.265
-4.250.706
78.77%
10
Profit after tax
VN
60.080.912
47.328.795
-12.752.117
78.77%
5
6
7
8
(Source: Finacial report -FOMECO)

The current economy is tough, but sales of the company had increased. In 2012, revenue
increased 19% compared to 2011. However, profits fell due to the cost of inputs increases,
reducing profitability.
4.1.6. The survey results through data stored in Pho Yen Mechanical Joint Stock Company
office
Through the process of collecting historical data, statistical data on welfare policies, labor
safety, and worker support in 2010-2012, the thesis obtained the following results:
4.1.6.1. The propaganda of safety, occupational health, fire
The propaganda and guidance on safety, occupational health, fire in the recent years there
have been many advances. Production Management Center has developed the promotional
activities such as organizing training courses, hanging banners, slogans around the company and
launching the legal contests on safety, occupational hygiene, and fire. Specified as follows:
Table 4.4. Dissemination results on safety, occupational health, fire.
26
No
Contents
2010
2011
2012
Open training courses on safety, occupational
health, fire protection (class)

Check the safety, occupational health, fire
periodically (times)
Organize contests on safety, occupational
health, fire (times)

(Source: Safty activity report FOMECO)
In 2012 the company opened three training courses on labor safety and hygiene, fire safety for
workers, safety inspections and occupational health, fire periodically every 3 months. The
company has also organized 2 competitions and improved work safety and fire protection in
productive labor.
4.1.6.2. Worker support
Working mode support, welfare policies, personal insurance equipment, professional
refresher training is done and fully implemented. The result is done in the following table:
Table 4.5. The the worker support results through the years
No
1
2
3
4
Contents
Replace personal protective equipment
(times)
The birthday celebration for staff (times)
Periodic health examination (times)
Open training courses and professional
2010
1
2011
1
2012
2
0
1
4
12
2
7
12
2
11
training courses
Two years ago, though there were economic fluctuations, but the company always strived to
ensure that any support, welfare policy and replace protective equipment for workers. Number of
replacement equipment and personal protective periodic health examination is every 6 months.
The birthday celebration for staff and workers is 12 times / year and in 2012 the company has
organized 11 training courses and professional training for employees.
4.1.7. Salary and allowances situation for employees
+ For managers and office staffs who are not directly related to production will be paid
according to the actual working time.
27
+ For labors who directly produce will be paid by product

In addition, employees also receive salary allowances such as night work, overtime, position
allowances or regional allowances (when traveling), toxic compensation, year-end bonuses,
lunch support, wedding gifts, birthday gifts, the sick leave interest...
The non-salary allowances such as travel, picnics, gifts for individuals who have children
with outstanding academic achievement, holidays and insurance coverage such as health
insurance, social insurance, body insurance, and unemployment insurance.
4.1.8. Other activities
- Sports and cultural activities: with the aim of ensuring the employees to have a stable
health and strong team spirit, solidarity, enthusiasm productive labor, quarterly and annual public
the company organizes cultural programs to encourage sports enthusiasm and responsibility of
the member as the football, workshops, inter-company football, the table tennis, badminton,
tournament between departments, cooking fairs, cultural shows New Year, Christmas, birthday
party, sightseeing schedule for officers and employees of the company.
- Emulation activity: Company holds annual competition by rewarding employees with
innovative ideas to improve organizational structure, work style, improve product, production
process and certified by the Director to create excitement for each employee, to promote
creativity in the implementation of company-wide goals, distributes emulation for excellent
production, the movement labor, work, the environment in the factories, building a strong and
clean working environment in the whole company.
- Training courses: the company regularly organizes training courses for the staff for the
development needs of the company or of the State trend: the protective cover safety strengthens
propaganda and raises the awareness of the safety for each employee group. Regular training
plan, advanced training and professional qualifications for staff and improves the skills of
workers, organizes wage increasing performance annually for workers.
4.2. The research results on the satisfaction level of the employees at the Pho Yen
Mechanical JSC - FOMECO
4.2.1. Statistical sample surveys and research
28
Surveyees are managers (excluding board members) and employees, workers at FOMECO
Votes sent are 211 votes, received 193 votes. The response rate is 91%.
Table 4.6. The number of questionnaires sent and received
The number of
Sent
questionnaires
Manager
Staff
Received
(forms)
32
179
Response rate (%)
(form)
32
100
161
90
(Source: Investigated results)
At the shift briefings, the total emitted survey has 211 votes, individual leadership of the
company's receipt of 100%, while the number of employees feedback is only 90%.
4.2.1.1. For the investigated objects who are managers
Results: Forms sent are 32 votes, received 32 votes. The response rate was 100%.
Table 4.7. The number of sent and received questionnaires (for managers)
The number of questionnaires
Sent
(forms)
24
8
Office Manager
Factory Manager
Received
Response rate
(form)
(%)
24
100
8
100
(Source: Investigated results )
- Information on the respondents (managers)

Table 4.8. The survey results on the staffs qualifications, seniority.
Average
Qualification
Bachelor
Associate
Criterion
age
Male
45
28
Female
Total
36
4
32
1-7
Work seniority
8-14
15-20
Bachelor
0
years
0
years
6
years
14
Over 20
years
8
3
0
1
9
14
9
The survey results showed that the company's management board has college degrees; proportion
of men is higher than women, working in the industry for 15-20 years (accounted for 43.75%).
29
- The income structure of managers working in FOMECO

Table 4.9. The income structure
Income
Under 3 Million
From 3 -5 Million
From 6-10 Million
Over 10 Million
Total
Sequence
Rate (%)
23
9
32
72
28
100
In general, the salary of managers in Pho Yen Machinery Corporation is not high
compared to the current average income. Salary which is over 10 million for department
heads and managers accounts for 28%. Salary is under 10 million for managers in the lower
position.
4.2.1.2. For the respondents who are laborers
Investigated Objects are the company's employees working in the department and in
factories.
Results: The questionnaires sent are 179 votes, received 161 votes. The response rate was
90%.
Table 4.10. The number of sent and received questionnaires (for employees).
The number of questionnaires
Office staff
Factory staff
Total
Sent
Received
Response rate
(forms)
60
119
(form)
54
107
(%)
90
90
179
161
- Information of the respondents (employees)

+ Qualification
Table 4.11. The survey results on qualified workers in FOMECO.
Gender
Male
Female
Total
Bachelor
23
5
28
Qualification
Associate
Intermediate
10
2
12
level
30
7
37
General
workers
75
9
84
Total
138
23
161
30

The table above shows that the education level of workers in FOMECO is not uniform, the
number of general workers is quite high (52%). On the intermediate level and general workers
accounted for 121 of the 161 total in survey data (75%).
+ Work seniority
Table 4.12. The survey results seniority of employees.
Average
Criterion
age
Male
32
Female
Total
29
1-7
Work seniority
8-14
15-20
Over 20
Total
years
79
years
32
years
19
years
8
138
16
94
4
36
1
20
2
10
23
161

The survey results on average age and seniority of the employees working at FOMECO show the
rather young average age.
This is a producing company so the majority of workers were men (86%), women accounts for
14%.
Staffs with 1-7 years seniority are 94 people accounted for 58% proportion, Staffs with 8-14
years seniority are 36 people accounted for 22%, Staffs with 15-20 years seniority are 20 people
from 15-20 years accounted for 12%, Staffs with 20 years or older seniority accounted for about
6%.
4.2.2. Survey results on overall satisfaction and satisfaction in each factors group for the
managers at FOMECO
4.2.2.1. General satisfaction of management staffs at the company
Table 4.13. General satisfaction of management staff at FOMECO.
Criterion
1. Working conditions and environment
2. Welfare
3. Training and promotion Opportunities
General Satisfaction according to

scale
4.1
4.1
3.4
31
4. Support from superiors

5. Income
6. Job characteristics
7. Relationship with colleagues
4.2
3.6
4.1
3.7
The above table shows general satisfaction level in two criterias that are the opportunity for
training and promotion, and income of managers in the company is quite low. Most of the
managers are only temporary consent of income and promotion opportunities, particularly in this
difficult economic period, the salary can not meet the expectations of managers that will exert
adverse impacts on the level of job satisfaction that leads to bad consequences to production
activities of the company.
32
4.2.2.2. Survey results on satisfaction in each factors group for the managers at FOMECO
a, Satisfaction level of managers with the working condition and environment of the company
Table 4.14. Assess the satisfaction level of managers with working environmental and condition at the company
Absolutely do not
Evaluation results on the
working condition and
environment
Clean environment
Labor safty
Working presure
Equipments for the work
Do not satisfy
satisfy
Number
Rate
Number
Rate
of votes
of votes
19
Temporarily
Satisfy
Absolutely
satisfy
Number
Rate
Number
Rate
of votes
of votes
12
26
30
18
19
81
94
56
59
satisfy
Number
Rate
of votes
6
2
4
13
%
19
6
12
41
Summary of feedback
results according to the
scale
4.2
4.1
3.6
4.4
b, The satisfaction level of managers with welfare schemes and policies of the company
33
Table 4.15. Assess the satisfaction level of managers with welfare schemes and policies at the company.
Absolutely do
Evaluation results on welfare
schemes and policies of
Do not satisfy
not satisfy
Number
Rate
Number
Rate
of votes
of votes
Temporarily
Satisfy
Absolutely
satisfy
Number
Rate
Number
Rate
of votes
of votes
satisfy
Number
Rate
of votes
Summary of feedback
results according to
the company
Personal support
(transportation, lunch,
illness,etc.)
Periodic health examination
Annual travels
Social insurance
the scale
3
25
78
13
4.0
78
40
38
22
59
25
13
12
19
4.2
3.4
4.6
20
63
c, Satisfaction level of managers with training and promotion opportunities

Table 4.16. Assess the satisfaction level of managers with training and promotion opportunities at the company.
34
Absolutely do
Evaluation results on training and
Do not satisfy
Temporarily
not satisfy
Satisfy
Absolutely
satisfy
satisfy
Summary of feedback
Number
Rate
Number
Rate
Number
Rate
Number
Rate
Number
Rate
of votes
of votes
of votes
of votes
of votes
The companies create more
28
14
44
28
the scale
3.0
opportunities for personal development

You are given training and career
22
22
69
3.6
development opportunities
Clear and fair promotion policy
You are engaged in promotion
5
2
16
6
9
11
28
34
18
19
56
59
3.4
3.5
d, The satisfaction level of managers with their leadership at FOMECO

Table 4.17. Assess the satisfaction level of managers with their leadership at the company.
Absolutely do
Evaluation results on the
not satisfy
Do not satisfy
Temporarily
satisfy
Satisfy
Absolutely
satisfy
Summary of feedback
35
Number
Rate
Number
Rate
Number
Rate
Number
Rate
Number
Rate
of votes
of votes
of votes
of votes
of votes
Leaders with ability, good vision and
13
11
34
17
53
the scale
4.4
the ability to run the company

Workers who receive much attention
22
14
44
11
34
4.1
from the seniors

Leaders listen to the views and
10
31
18
56
13
3.8
thoughts of employees
Leaders who value the talents and
15
47
15
47
4.4
leadership at the company
contributions
e, The satisfaction level of managerment staff with income level

Table 4.18. Assess the satisfaction level of managers with income.
Absolutely do
Evaluation results on the income
not satisfy
Do not satisfy
Temprorarily
satisfy
Satisfy
Absolutely
satisfy
Summary of feedback
36
Number
Rate
Number
Rate
Number
Rate
Number
Rate
Number
Rate
of votes
of votes
of votes
of votes
of votes
The salary is commensurate with the
19
22
16
50
the scale
3.5
results of work
Fair and reasonable policy
The salary are paid completely and on
25
14
17
44
53
7
15
22
47
3.8
3.5
11
34
18
56
time
You can afford your living based on the
3.5
salary
f, The satisfaction level of managers with job characteristics

Table 4.19. Assess the satisfaction level of managers with job characteristics.
Absolutely do
Evaluation results on
job characteristics
Do not satisfy
not satisfy
Temprorarily
Satisfy
Absolutely satisfy
satisfy
Summary of feedback results
Number
Rate
Number
Rate
Number
Rate
Number
Rate
Number
Rate
of votes
of votes
of votes
of votes
of votes
according to the scale
37
Very interesting job

Many challenge job
Moderate workload
The work requires
8
5
3
25
16
9
23
72
28
4.3
15
26
20
47
81
63
9
1
9
28
3
28
4.0
3.9
4.2
creativity
g, The overall satisfaction level of managers

Table 4.20. Assess the overall satisfaction of company managers.
Absolutely do
Evaluation results on overall
satisfaction level
Do not satisfy
not satisfy
Temporarily
Satisfy
Absolutely
satisfy
satisfy
Summary of feedback
Number
Rate
Number
Rate
Number
Rate
Number
Rate
Number
Rate
of votes
of votes
of votes
of votes
of votes
the scale
38
In general, I feel that working

conditions, policies, welfare of the
16
50
10
31
3.4
company is very good.

I want to work long-term in the
11
34
12
38
22
3.8
company.
Everyone in the company is very
12
25
15
47
16
3.7
friendly
39
Comment:
* The survey results on measuring the job satisfaction level of the managers at
FOMECO:
- On the working conditions and environment:
Assessments on working condition and environment (Table 4.14): 32 respondents were
satisfied with working conditions and environment of the company. For the working pressure,
there are 6 people dissatisfied (19%).
- Welfare schemes and policies of the company:
Assessment on welfare regime and the policy of the company (Table 4:15): 32 respondents
were satisfied with personal support (transportation, lunch, visiting ...) periodic health
examination and company pays health insurance, social insurance for managers. For annual
traveling regulation, there are 19 people temporarily happy (not really satisfied) accounted
for 59%.
- Training and promotion opportunities:
Evaluation results on training and promotion opportunities (Table 4:16): 32 people were
asked and 9 respondents are not satisfied with the development opportunities (28%), 3
respondents are not satisfied with the training and professional development policy (9%), 5
respondents are not satisfied with promotion policy (16%), 2 respondents are not satisfied
with the criteria to participate in promotion (6%).
- The company's leadership:
The assessment on the company's leadership (Table 4:17): In general, all managers are
satisfied with the company's leadership.
- Income:
The assessment on income of managers in the company (Table 4.18): 32 people were asked 6
respondents are not satisfied with wages (accounted for 19%) and 3 respondents are not
satisfied with compensation policy of the company (accounted for 9%). There are 3 people
who are not satisfied with the living standard (9%).
- Job characteristics:
The assessment on job characteristics (Table 4:19): In general, most people are satisfied with
their job characteristics.
Overall, we can see that the managers of the company are satisfied with the above criteria
except for two criteria as wages and promotion opportunities. They want long-term
commitment to the company. They said that their colleagues are friendly.
40
4.2.3. Survey results on overall satisfaction and satisfaction in each factors group for the
workers/employees at FOMECO
4.2.3.1. Overall satisfaction level of workers/employees in the company
Table 4.21. The satisfaction level of general manager at FOMECO.
Criterion
2. Welfare
5. Income
General satisfaction according to

scale
4.1
3.8
3.4
3.7
3.3
3.7
3.7
Most employees in the FOMECO are satisfied with the above criteria, but the scale of income
and promotion opportunities remain low and may affect the job satisfaction level of workers.
41
4.2.3.2. Survey results on satisfaction in each factors group for the workers/employees at FOMECO
a, The satisfaction level of employee with the working environment at the company
Table 4.22. Assess the satisfaction level of employees with working conditions and environment in the company.
Absolutely do
Evaluation results on
working environment
Clean environment
Labor safty
Working presure
Do not satisfy
not satisfy
Temporarily
Satisfy
Absolutely
satisfy
satisfy
Summary of feedback results according
Number
Rate
Number
Rate
Number
Rate
Number
Rate
Number
Rate
of votes
of votes
of votes
of votes
of votes
to the scale
27
17
44
27
122
135
99
88
76
84
61
55
12
26
18
73
7
16
11
45
3.9
4.2
3.8
4.5
b, The satisfaction level of employee with welfare schemes and policies of the company
42
Table 4.23. Assess the satisfaction level of employee with welfare schemes and policies of the company.
Absolutely do
Evaluation results on welfare
schemes and policies of

the company
Personal support (transportation,
lunch, illness,etc.)
Annual travels
Social insurance
Do not satisfy
not satisfy
Temporarily
Satisfy
Absolutely
satisfy
satisfy
Number
Rate
Number
Rate
Number
Rate
Number
Rate
Number
Rate
of votes
of votes
of votes
of votes
of votes
Summary of feedback
the scale
24
15
57
35
80
50
40
25
63
39
89
58
93
55
36
58
3.3
72
68
45
42
4.4
3.1
4.4
c, Satisfaction level of employee with training and promotion opportunities at FOMECO
43
Table 4.24. Assess the satisfaction level of employee with training and promotion opportunities at the company.
Absolutely do
Evaluation results training and
Do not satisfy
Temporarily
not satisfy
Number
of votes
Rate
%
Satisfy
Absolutely
satisfy
Number
of votes
Rate
%
Number
of votes
satisfy
Rate
%
Number
of votes
Rate
%
Number
of votes
Summary of feedback
Rate
The companies create more
35
22
53
33
66
41
the scale
3.3
opportunities for personal development

You are given training and career
19
12
51
32
83
52
3.5
development opportunities
37
36
23
22
64
34
40
21
32
73
20
45
28
18
17
11
3.3
3.5
d, The satisfaction level of employees with their leadership at FOMECO
Table 4.25. Assess the satisfaction level of employee with their leadership at the company.
Absolutely do
Evaluation results on leaders
not satisfy
Do not satisfy
Temporarily
satisfy
Satisfy
Absolutely
satisfy
Summary of feedback
44
Number
Rate
Number
Rate
Number
Rate
Number
Rate
Number
Rate
of votes
of votes
of votes
of votes
of votes
127
79
34
21
scale
4.2
Leaders have ability, good vision and the

ability to run the company
Workers receive much attention from the
25
16
51
32
55
34
30
19
3.6
seniors
Leaders listen to the views and thoughts
40
25
44
27
54
34
23
14
3.4
of employees
Leaders value the talents and
47
29
37
23
44
27
33
20
3.4
contributions
e, The satisfaction level of employee with income
Table 4.26. Assess the satisfaction level of employee with income.

Absolutely do
Evaluation results on income
not satisfy
Do not satisfy
Temporarily
satisfy
Satisfy
Absolutely
satisfy
Summary of feedback
45
Number
Rate
Number
Rate
Number
Rate
Number
Rate
Number
Rate
of votes
of votes
of votes
of votes
of votes
The salary is commensurate with the
66
41
52
32
33
20
10
the scale
2.9
results of work
The salary are paid completely and
42
26
59
34
37
21
38
88
24
55
22
39
14
24
3.2
4.0
24
15
85
53
40
24
12
3.2
on time
You can afford your living based on
the salary
f, The satisfaction level of employee with their job characteristics at FOMECO
Table 4.27. Assess the satisfaction level of employee with their job characteristics at the company.
Absolutely do
Evaluation results on job
characteristics
Do not satisfy
not satisfy
Temporarily
Satisfy
Absolutely
satisfy
satisfy
Summary of feedback results
Number
Rate
Number
Rate
Number
Rate
Number
Rate
Number
Rate
of votes
of votes
of votes
of votes
of votes
according to the scale
46
23
14
39
24
79
49
20
12
3.6
Many challenge job

Moderate workload
The work requires creativity
26
19
30
16
12
19
37
18
18
23
11
11
65
115
96
40
71
60
33
9
17
20
6
10
3.7
3.9
3.6
g,The overall satisfaction level of workers at FOMECO
Table 4.28. Assess overall satisfaction level of the employees at the company.
Absolutely do
Evaluation results on overall satisfaction
Do not satisfy
not satisfy
Temporarily
Satisfy
Absolutely
satisfy
satisfy
Summary of feedback
Number
Rate
Number
Rate
Number
Rate
Number
Rate
Number
Rate
of votes
of votes
of votes
of votes
of votes

scale
47
In general, I feel that working conditions,

policies, welfare of the company is very good
38
24
43
27
68
42
12
3.3
I want to work long-term in the company
63
39
51
32
38
24
3.7
Everyone in the company is very friendly
25
16
36
22
66
41
34
21
3.7
48
Comment:
* The survey results on assessing the job satisfaction level of employees at FOMECO:
- The working condition and environment:
+ Assessment results on working condition and environment (Table 4.22): 161 employees who
were asked are satisfied with the working condition and environment of the company. For the
working pressure and environmental hygiene, there are 71 people who are not really satisfied
(44%).
- Welfare schemes and policies of the company:
+Assessment results on welfare and the policy of the company (Table 4:23): in 161
respondents, 24 are not satisfied with the personal support (transportation, lunch, visiting ...), 40
are not satisfied with the travelling (25%).
- Training and promotion opportunities:
+ Evaluation results on training and promotion opportunities (Table 4.24): With 161
respondents, there are 35 are not satisfied with the promotion opportunities (22%), 19 are not
satisfied with the training policy and professional development (12%), 37 are not satisfied with
promotion policy (23%), and 36 are not satisfied with the criteria to participate in promotions
(22%).
- The company's leadership:
+ Evaluation results on the company's leadership (Table 4:25): There are 75 people who are
not satisfied with the concerns of leadership (41%), 47 people who are not satisfied with the
talent and contribution criteria (29%).
- Income:
+ Evaluation results on income of workers in the company (Table 4:26): With 161
respondents, there are 66 people are not satisfied with the salary (41%), 42 people are not
satisfied with the bonus policy (26%) and 24 people who are not satisfied with the living
standards (15%).
- Job characteristics:
+ Evaluation results on job characteristics (Table 4:27): With 161 respondents, there are 98
people who are not satisfied with the job characteristics (61%), and 79 people are completely
satisfied with the job characteristics (48%).
49
In general, we find that there are many people working at the company FOMECO who are
not really satisfied or not satisfied with their work. But for some reason, they still have the desire
to work and commit to the company.
4.2.4. Comparing survey results on measuring the job satisfaction among staff and
management at FOMECO
Table 4.29. Integrating survey results on job satisfaction.
The overall assessment
2. Welfare
5. Income
Managers
Employees
4.1
4.1
4.1
3.8
3.4
3.4
4.2
3.7
3.6
3.3
4.1
3.7
3.7
3.7
Summary of responses according to the scale of overall assessment of the job satisfaction
level of managers and employees at FOMECO shows that the satisfaction level among managers
and employees has significant differences, especially in terms of wage policy. The results show
that the qualifications and seniority between managers and employees in the company are not
homologous so evaluating the awareness and the same problem will have certain influence, the
comparison is quit not suitable.
4.2.4.1. Achivements
With a view to respect labor as a key component of the company, the company is not waiting
passively for labor to reflect difficulties, whether they are not satisfied with, do not agree with
the views and policies of company leadership so the company actively surveys, captures the
needs of the employees to give an appropriate policy to support the aspirations, the needs for
work, the best conditions to work.
For welfare regime, the company always meets the minimum requirements for workers to
meet the individual support, such as transportation, lunch, sick visits, and meeting, traveling,
birthdays, Christmas, and cultural and sports activities... create conditions for employees and
company leaders to meet and exchange more intimate closeness, and encourage workers.
For wages, generally meet consuming activitie needs of the majority of workers.
50
For working condition and environment, the company has met the full equipment of labor
protection, a clean environment and good working conditions for employees.
The company also regularly organizes professional training courses for officers and employees in
the company, and advocacy seminars on safety, occupational health, and fire prevention to ensure
fire safety for workers, willing to work hard. Avoid the unfortunate accident to workers.
4.2.4.2. Cause and limits
+ The income:
- Workers find themselves underpaid, wages are not commensurate with the results of work,
salary is not guaranteed for the life of their needs. The payment is based on the basic salary and
the salary level of each person creates a situation that employees are not willing to work at their
best. There are people who do simple jobs that do not require high qualifications, but they still
get high-wage because of seniority. There are people who do jobs that require high
qualifications, work pressure ... but they get low salary just because of less seniority. So the
wages do not ensure fairness between workers.
- In recent years, economy is unstable, the cost of living rising simultaneously and continuously,
but the company has not made timely adjustments to increase wages for workers. Now, the
average income of employees is 3-4 millions, in which food accounts for 30-40% of the income,
and because of the lack of housing for employees, many of them have to rent houses.
- FOMECO was formerly known as Pho Yen 1 state business that has equitized be the state still
holds over 50% of shares so the implementation of wage policy is still not flexible. The company
is not forceful to pay people who really contribute to the company but pay in average so do not
create incentives to stimulate workers, causing the unequal pay between the workers.
+ The promotion policy:
- The company was spun off as a joint stock company, but the state still holds over 50% of all
shares so there is no innovation in the operation of the company. All staff positions are directed
by leaders; they are qualified, capable but have a not very well relation with the personality of
the boss so they are not used as an important staff. Thus, causing psychologically discomfort to
workers, workers are no longer enthusiastic and satisfied with your current job position.
51
CHAPTER 5
CONCLUSION AND POLICY IMPLICATION
5.1. Conclusions
From these findings and investigations on the job satisfaction level of employees in FOMECO,
Thai Nguyen, I have some following comments:
The study was conducted to determine how the relationship between job satisfactions affects
the work performance of employees at FOMECO. empirical research results has identified seven
factors that affect job satisfaction of employees as: (1) income, (2) working condition and
environment, (3) welfare policy, (4) training promotion and opportunities, (5) relationships with
colleagues, (6) support from superiors, (7) job characteristics. However, after the surveying and
processing data there are two factors that can affect significantly on the job satisfaction level of
employees at FOMECO as: (1) income, (2) opportunities for promotion
In which promotion opportunity factor mostly influences job satisfaction level of employees
(with 23% of the employees who are not satisfied with the promotion policy of the company).
In general, employees at the company are quite satisfied with their job. They are most
satisfied with "welfare policy factor. A small number of workers are not satisfied with income
and promotion opportunities.
Finally the research presents solutions based on direct analysis of factors affecting job
performance of employees, thus helping the company measure to improve the work performance
of employees.
The study has the following limitations: because the study were conducted in Pho Yen
Machinery Corporation so the result in this study is not representative for all other companies in
the same industry. The reason for this restriction is limitation of time and cost so I have to
minimize the scope of the study to achieve a consistent and reliable result.
Further research: I need to expand the scope of research for other companies to be able to
compare, have overall assessment results on businesses in Vietnam and the effects of job
satisfaction on the employee's job.
52
5.2. Policy implications

The company has set the development direction in the next year: continue innovating regulation,
structure and production management direction, marketing, enhancing, searching capabilities
joint ventures, diversifying traditional products to exploit all the available capacity of the
company, gradually upgrading and renewing equipment and machinery, applying the latest
technological achievements in accordance with company production line, improving product
design quality, accounting client trust, thereby increasing the volume of product sales, expanding
domestic and foreign markets.
5.2.1. Production development
Company regular guides and inspects and monitors stringent design and quality standards in
accordance with the regulations and the company's commitment to customers, deliveries are
always on time and quantity is right.
Reserving materials reasonably is to minimize the impact of with rising prices of raw materials
that affects the production and business activities.
The company continues researching effective management of products, manufacturing
products in accordance with ISO standards of quality management systems, improving product
quality to meet customer needs.
5.2.2. Business expansion, market development
Maintaining a reasonable policy with traditional customers and constantly looking for new
clients. Promoting the development of agent networks, expanding sales network rapidly in
domestic and worldwide market.
Maintaining traditional markets, Continue strengthening and improving distribution channels,
completing the price mechanism in consistent with the market to improve competitiveness and
expand market.
Join in the stock market to raise financial position, image, and enhance understanding and
interest of investors and customers for the Company's products and the company, creat a positive
image of the company in society and investors.
5.2.3. The development of human resources
+ The development of the human resource:
- Forming the labor system, organizing the high-level structure of the logical structure and
industry level to each sector, each business unit or operating management responsibility to
53
clarify ... each employee. Each person working in each location has to ensure adequate standards
prescribed by labor positions. Remove untrained labor status.
- Investigating officials and employees in the unit under the criteria of age, professional
qualifications, competence, excellence, and health for training and retraining suitable labor plans.
- Increasing, constructing and consolidating staff capablity and political quality for
professional technical high level staff.
- Caring the staffs life.
5.2.2. Solutions to improve the satisfaction level of employees at FOMECO
5.2.2.1. Solution for factor improvement "promotion at work"
- Promotion policies: Survey results show that 23% of workers are not satisfied with the
promotion policies in the company. Fair promotion and incentive policies will be attractive to
staffs efforts, commitment and they will contribute to the sustainable development of the
company.
- The company's leaders need to build lots of professional development for each job. With
this schedule, each employee will know which level they are in so that they are aware of what
knowledge, skills to be improved and developed, powered and then they can advance to higher
positions. With each position there will be suitable proportionate salary, bonus, allowances, and
incentives.
5.2.2.2. Solution for "income" factor improvement
a, Payment and income distribution
- To pay salary for the employees well, the unit needs to improve the evaluation system to
accurately determine the stage of completion of work, thereby determining the exact number of
complex systems work by performance of individual employees, as a basis for calculation of
reasonably and accurate salaries, bonuses. For example:
+ Complete assessment conducted to determine the exact extent of the system done by the
efficiency of individual workers, as the basis for the calculation of salary and bonus.
+ Focus on doing work and assigned plan.
+ After completing the assessment, the exchange of salaries and bonuses for teams and
individuals is needed making based on the results of performance evaluation of team and
54
individual. Labor management department is indirectly paid according to the quality and results
of the completion of assigned tasks.
b, rewarding and, encouraging employees
- Encouraging and prioritizing new ideas, new innovations that can bring practical results for the
unit in production and business operations, enabling ideas in empirical conditional units.
- Generating competition across units and in each group, implementing new ideas to create
multi-faceted competition.
- There are parts to receive directly comments of employees in the company to constantly
complete services, process rules.
Although there have been many attempts by myself, but due to time and access to the
documents is limited, thesis may not advoid shortcomings. I hope to get more valuable
suggestions from teachers so that I can improve my knowledge, experiences for my future work.
By the way I am so honor to give my sincere thanks to Dr. Hoang Thi Thu who was so
enthusiastic when guiding me to complete this thesis.
55
APPENDICE
SURVEY QUESTIONNAIRE
I am Mai Tuan Linh, I am a student at Thai Nguyen University of Economics and Business
Administration, I am now practicing in Pho Yen Mechanical Joint Stock Company. With the
permission of the Management Board of the company, I would like to do a survey to assess the
job satisfaction of employees in the company to serve the research topics of my graduation
thesis, as well as to give the solution suggestion to the company. Please fill up the survey given
below. Please note that no answer is right or wrong. All answers are equally valuable and your
opinions are kept secret.
I hope you facilitate to help me complete this research.
Full Name: Gender: Male / Femal
Tel:.
Position:Office:.
I. Answer guide
Please mark X in the box of your choice. Values from 1 to 5 on each question corresponding
the level of increasing agreement or satisfaction. The meaning of the option value as follows:
1
Absolutely do not agree
Absolutely do not satisfy
2
Do not agree
Do not satisfy
3
Temporarily agree
Temporarily satisfy
4
Agree
Satisfy
5
Absolutely agree
Absolutely satisfy
II.The questionnaire survey

1. Do you satisfy with the working condition and environment?
No
Criterion
Clean environment
Labor safty
Working presure
2. Do you satisfy with the welfare and policy of the company?

No
Criterion
Personal support (transportation, lunch, illness,etc.)
56
Annual travels
Social insurance
3. Do you satisfy with the training and promotion opportunities?

No
Criterion
The companies create more opportunities for personal
development
You are given training and career development
opportunities
4. Do you satisfy with the employers?

No
Criterion
Leaders have ability, good vision and the ability to run
the company
Workers receive much attention from the seniors
Leaders listen to the views and thoughts of employees
Leaders value the talents and contributions
5. Do you satisfy with the income?

No
Criterion
The salary is commensurate with the results of work
The salary are paid completely and on time
You can afford your living based on the salary
6. Do you satisfy with the job characteristic?

No
Criterion
Many challenge job
57
Moderate workload
The work requires creativity
7. The general satisfaction level

No
Criterion
In general, I feel that working conditions, policies,
welfare of the company is very good.

I want to work long-term in the company.
Everyone in the company is very friendly
III. Personal Information

1. Which is your age group?
1. Under 25:
2. From 25 to 34:
3. From 35 to 44:
4. 45 or more:
2. Level of education, professional qualifications:

1. Common workers:
2. Engineer:
4. College:
3. Midle-ranking:
5. University or higher:
3. You work at:

1. Office:
2. Manufactory:
3. Service:
4. other
4. Income:
1. Under 3 milion:
2. 3 milion - 5tr:
3. 6 milion - 10 milion:
4. Over 10 milion:
Many thanks and hope you have an effective working day!
58
REFERENCES
Vietnamese References
1. Chu Vn Ton (2009), cc nhn t nh hng n s tha mn cng vic ca nhn vin khi
vn phng thnh ph H Ch Minh, Lun vn thc s.
2. Nguyn Trn Thanh Bnh (2009), o lng mc tha mn ca ngi lao ng ti cng ty
c phn c kh ch to my Long An, Lun vn thc s.
3. Nguyn Kim nh (2010), o lng mc tha mn trong cng vic ca ngi lao ng ti
cng ty c phn Fresenius Kabi Bidiphar, Lun vn thc s.
3. Trn Kim Dung (2007), Qun tr ngun nhn lc. NXB Thng K;
English References
1. Adam (1963), Equity Theory;
2. Edwin Locke (1967), The nature and cause of job satisfaction. In M.D.Dunnette (Ed).
Handbook of Industraial and Organizational Psychology (p.1297-1349). Chicago: Rand McNally
College Publishing Company;
3. Kendall, L. M., Smith, P. C., Hulin, C. L., & Locke, E. A. (1963). The relative validity of the
Job Descriptive Index and other methods of measurement of job satisfaction.(Cornell Studies of
Job Satisfaction: IV). Ithaca, NY: Cornell University, Industrial and Labor Relations.
4. Herzberg, F., Mausner, B., & Snyderman, B. B. (1959). The Motivation to Work, 2n ed. New
York.
5. Herzberg, F. (1966). Work and the nature of man. New York: World Publishing.
6. Luddy, Nezaam (2005), Job Satisfaction amongst Employees at a Public Health Institution in
the Western Cape, University of Western Cape, South Africa.
7. Maslow, A.H. (1943), A Theory of Human Motivation, Psychological
Review, 50, pp. 370-396.
8. Weiss, D. J., Davis, R. V., England, G. W., & Lofquist, L. H. (1967). Manual for the Minnesota
Satisfaction Questionnaire. Minneapolis, MN: The University of Minnesota Press.
9. Spector, P.E., Job satisfaction: Application, assessment, causes, and consequences, Sage,
London, 1997.
10. Boeve, W.D (2007), A National Study of Job Satisfaction factors among faculty in physician
assistant education, Eastern Michigan University.
59
INTERNET SOURCE
1. http://my.opera.com/qtdn/blog/quan-tri-nhan-su-ly-thuyet-nhu-cau
2.
http://www.cmard2.edu.vn/index.php?option=com_content&view=article&id=844%3Anhu-
cu&catid=127%3An&Itemid=331&lang=vi
4. http://vi.wikipedia.org
60

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CHAPTER I

1.3. Research scope

Figure 2.1 Maslows hierarchy of needs model

2.1.2.3. McClellands theory of need for achievement

3.1.5. The hypothesis for the study model

3.1.2. Research questions

3.2.2. Secondary data

n: the number of people who was interviewed

4.1. Overview of Pho Yen Mechanical JSC

Fax: 02803 863118

4.1.1.3. The development process of the company and the achievements

4.1.3 The company's management structure

Chart 4.1: Organizational Chart of FOMECO.

(Source: Human resource department-FOMECO)

1. According to the nature of labor

Total direct labor

- Total indirect labor

- University and college

- Intermediate, technical workers

Under 30 years old

From 30 to 45 years old

- Over 45 years old.

The indefinite working contract

Working contracts 1 to 3 years

Working contracts under 1 year

Not subject to contract

Table 4.3: Status of the business results of the company.

Cost of goods sold

Business income Tax

Profit after tax

(Source: Finacial report -FOMECO)

Open training courses on safety, occupational

health, fire protection (class)

health, fire (times)

+ For labors who directly produce will be paid by product

Response rate (%)

- Information on the respondents (managers)

- The income structure of managers working in FOMECO

- Information of the respondents (employees)

(Source: Investigated results)

(Source: Investigated results)

General Satisfaction according to

4. Support from superiors

(Source: Investigated results)

(Source: Investigated results)

c, Satisfaction level of managers with training and promotion opportunities

The companies create more

opportunities for personal development

(Source: Investigated results)

d, The satisfaction level of managers with their leadership at FOMECO

Leaders with ability, good vision and

the ability to run the company

from the seniors

leadership at the company

(Source: Investigated results)

e, The satisfaction level of managerment staff with income level

The salary is commensurate with the

(Source: Investigated results)

f, The satisfaction level of managers with job characteristics

Summary of feedback results

according to the scale

Very interesting job