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Ho Chi Minh City 5/1 /20222

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<b>ACKNOWLEDGEMENT </b>

I would like to thank my thesis committee for their guidance and assistance throughout the program. Each member contributed significantly to my education. First, I would like to thank my major instructor M. Tran Thi Tuyet for her tireless efforts, patience, guidance, encouragement not only for this thesis proposal but her time, directions helping me prepare for my study.

I would like to thank my friends Mr. Nguyen Tran Hieu Bao, Mr. Nguyen Duy Thang, and Mr. Vo Nhat Hoang for their encouragements, directions, and insightful suggestions on this research.

Words cannot express how much I thank my parents for supporting me with unconditional love and prayers and teaching me the purpose of my life. I want to thank my family members who always beside me with their affections and prayers.

Ho Chi Minh City, December 2022 Dinh Hai Thanh Binh

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<b>ABSTRACT </b>

This paper presents a systematic and operational approach to Job Satisfaction and Organizational Commitment of Vietnamese Generation Z by using the attraction-selection-attrition (ASA) theory and self-determination theory (SDT). This paper examines 8 variables which are Flexible work practices, Reward and recognition, Compensation and benefits, Career development, Feedback-seeking behavior, Volunteering work, Digital innovation, and Digital orientation. Moreover, the influencing of Job Satisfaction towards Organizational Commitment is also considered. The implications of these findings for theory and practice, as well as its limitations and future directions, conclude the paper.

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1.2 Objective of the study ... 3

1.3 Scope of the study ... 3

1.4 Proposed structure of the Study ... 3

CHAPTER 2. LITERATURE REVIEW ... 5

2.2.2 Attraction, selection, and attrition theory (ASA) ... 8

2.2.3 The Self-determination theory (SDT) ... 9

2.3 Hypothesis development ... 11

2.3.1 Compensation and benefit ... 11

2.3.2 Flexible work practices ... 12

2.3.3 Rewards and recognition ... 12

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3.4.3 Cronbach’s Alpha analysis ... 28

3.4.4 Exploratory Factor Analysis ... 29

3.4.5 Pearson Correlation ... 30

3.4.6 Regression Analysis ... 31

3.4.7 ANOVA ... 32

REFERENCES ... 34

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<b>ABBREVIATION </b>

ASA - Attraction, selection, and attrition theory SDT - The Self-determination theory EFA – Explanatory Factor Analysis ANOVA – Analysis of Variance KMO – Kaiser Meyer – – Olkin

SPSS – Statistical Package for the Social Science

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<b>CHAPTER 1. INTRODUCTION </b>

<b>1.1 Problem Statement </b>

According to Oxford Advance Learners ’Dictionary, a generation refers to all of people who were born at the same period in history, society, and chronology. The Generation Z made its debut in 1995. Each generation grows up in a different economic and cultural context, thus this young new generation cohort entered college in 2013 with an entirely different set of goals, views, and expectations (Nargundkar, Nafees, & Kushal, 2020). Until now, Gen Z is the most open-minded generation, they were born with the smartphones in their hands, and they are used to Google everything which is unknown to them and could not imagine a life without likes and reposts online. Men, women, and transgender people should all be treated equally, same-sex couples should be allowed to be married, and everyone should have the opportunity to express themselves nonviolently. These are the views of Generation Z. Their research showed that having positive relationships with family and friends, engaging in leisure activities, and having enough money to live comfortably all contribute to people's overall happiness. Another well-known characteristic of Generation Z is its vehement opposition to racial and religious prejudice. Numerous social, economic, political, and technological changes have taken place in them. They have also seen constant, quick change, infinite opportunity, social networking, and interdependence on a global scale. They tend to value experience more than expectations and have high expectations.

Post-millennials will account for approximately 30% of the global workforce by 2050, and as a generational group that was born into the digital age, they will have no trouble keeping up with the expansion of the digital market. Forecasts indicate that the Gen Z generation will work a total of 18 jobs over six careers and move around in 15 houses, Mccrindle (as cited in Josifovska, M., 2022, June 11). According to statistics on Generation Z schooling, up to four out of ten members of this generation were raised by parents who had a college degree, compared to 33% of Millennials who had the same opportunity. According to a survey by Pew Research Center, this generation is likely to have the highest level of education yet. And it's not just because slightly more than half

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of those aged 18 to 21 are now enrolled in college; it's also because over half of them live with parents who have a bachelor's degree or higher (as cited in Josifovska, M., 2022, June 11). Those mean that the young human resource is not only abundant but also knowledgeable, and this workforce will be valuable for many companies in the future. Not except Vietnam, large amount of workforce comes from Gen Z will have a significant impact on human resources. Based on General Statistics Office of Vietnam (Loan H., 2021, May 19), about 13 million Gen Zers from 15 to 24 years old are in the working age demographic in 2019. By 2025, Gen Z is expected to contribute to one-third of the working-age workforce in Vietnam and will have a great influence on the domestic labor market. With the breakthrough, creativity, and multi-dimensional view of things, Generation Z is absolutely a breakthrough factor for the development of your business. However, Gen Z is still a breath of fresh air with many differences that businesses and human resource managers need time to learn to work together. As mentioned above, each generation grows up in a different economic and cultural context, so as well as Gen Z, they have many aspects different from other Generation. In term of work, Gen Z also has some expectations, values, and requirements when accepting a job. They love to work in the high technology environment, a whopping 91% of the Gen Z population agree that when choosing a profession, technology would be a decisive factor by Dell (as cited in Josifovska, M., 2022, June 11). Working with cutting-edge technology is important to this young generation to the point where, as Gen Z statistics show, a staggering 80% of them wish to do so exclusively. Over 80% of this age firmly feel that automation and technology open the door to a more equal workplace. In order to attract this age group, utilize a "tech-first" strategy when recruiting the best of the best. Not only Millennials, but young people from Gen Z also appreciate flexibility in working policies. Because Gen Z is a generation that prioritizes work-life balance quite high. Therefore, businesses need to really care about the balancing needs of Gen Z. Implementing a flexible working hours policy, along with promoting remote work, and respecting personal time are key things which Gen Z needs when working in a business (Lighthuman). Furthermore, reward and recognition are also the primary factors. Recognition for Gen Z is not only recognition of the results and efforts they have created, but also the listening of the business. Although this is a

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young human resource, Gen Z can fully take the initiative in promoting the company's development because of its modern and globalized thinking (Lighthuman). One of the ways to boost morale and retain Gen Z is to make them feel respected for their ideas and contributions in their role. Encouraging and appreciating the insights of Gen Z when they are coming up with solutions for the company are also another way to make them feel cherished. However, there will be more ambitions and expectations of Gen Z which affect their job satisfaction. Therefore, to prepare for employee recruitment and retention in the future because a lot of Gen Z has joined and worked for many companies around the world, and soon more of them will enter bring about a drastic change in the upcoming workforce. The companies have to find out which factors affecting job satisfaction and organizational commitment of Generation Z in order to attract and retain them, so that the development of human resources in particular and the companies in general in the future can be ensured.

<b>1.2 Objective of the study </b>

The goal of this study is to identify factors affecting Vietnamese Gen Z’s job satisfaction and their organizational commitment.

The exact goals of this study are as follows:

1. Identify factors relating to organization job policies and personal characteristics affecting employee job satisfaction among Gen Z employees.

2. Measure the impact of these factors on job satisfaction and the relationship between job satisfaction among Gen Z employees.

3. Propose managerial implications for managers to satisfy and retain their gen Z employees.

<b>1.3 Scope of the study </b>

• Study sample (respondent): Vietnamese Generation Z who have been or are currently office workers.

• Research duration: January May 2023 –• Area: Viet Nam

<b>1.4 Proposed structure of the Study </b>

• Chapter 1: Introduction

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o Problem statement o Thesis objective o Thesis significance o Thesis scope

o Thesis methods of implementation • Chapter 2: Literature review

o Concept overview

o Attraction, selection, and attrition theory (ASA) o The Self-determination theory (SDT)

o Hypothesis development • Chapter 3: Methodology

o Research procedure o Research design o Data collection o Analysis method • Chapter4: Data Analysis

• Chapter 5: Conclusion and recommendations

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As Generation Z continues to enter the workforce, what do they expect at their job according to those traits? Of course, each person will have different job expectations and work values from others. However, if that group of people are born in the same generation, they will have things in common, because of growing and developing in the same culture and economy context. As well as Gen Zers, there will be a lot of factors affecting their job satisfaction, but some are major and appear more frequently. The report reveals that Gen Z employees demand more wages. 69% of the 32,000 respondents thought their earnings were fair. Even though Gen Z respondents make up

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the majority, their level of pay satisfaction is seven points lower than that of other generations (Freedman, M., 2022 November 16). Gen Zers choose businesses that put their employees' overall well-being above their own productivity. Gen Z is the generation that is the most stressed out, according to the American Psychological Association. By enabling employees to take mental health days, instituting four-day workweeks, and offering hybrid remote/in-person schedules, workplaces have changed to support Gen Zers. It's crucial for us to strike a balance between our personal and professional lives (Adam, E., 2022, November). Employers who are flexible and respect these boundaries are more likely to draw in and keep Gen Z talent. They might even adopt the same perspective and alter their own work practices. Gen Zers want to work for a company that upholds the values of innovation and entrepreneurship even if they aren't employed by a startup. They desire to shift away from fixed jobs and obligations and toward picking up new talents and donning several hats. Many of them are just entering the workforce and are still identifying their individual skill sets and interests, so they are looking for companies who value diversity, trying new things, and a hands-on approach. They seek out employers who will let them express their interests and provide them with opportunities that fit if they want to feel like they have some control over their employment (Fung, H., 2022, July12 ).

<b>2.1.2 Concept of Job Satisfaction </b>

Job satisfaction, employee satisfaction or work satisfaction is a measure of a worker's contentment with their job, whether they like the job or specific features or facets of occupations, such as the nature of the labor or supervision (Spector, P., 1997) Job satisfaction can be measured in cognitive (evaluative), affective (or emotional), and behavioral components (Hulin, C. L., & Judge, T. A., 2003). The extent to which different job satisfaction metrics capture feelings about the job has also been highlighted by researchers (affective job satisfaction) or cognitions about the job (cognitive job satisfaction) Thompson, E.R.; Phua F.T.T., 2012). (Moorman, R.H., 1993). It's critical to keep in mind that each employee experiences job satisfaction differently. The elements that make one employee feel good about their employment might not apply to another employee in the same workplace under the same

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circumstances. With job satisfaction surveys becoming commonplace at most workplaces, leading firms are now attempting to quantify this experience.

<b>2.2 Theorical review 2.2.1 What is HRM? </b>

The practice of recruiting, hiring, assigning, and managing employees is known as human resource management (HRM). Frequently, HRM is referred to as just "human resources" (HR). The HR department of a business or organization is often in charge of developing, implementing, and monitoring the firm's policies regarding employees and its interaction with them. The phrase "human resources" was initially used to refer to all of the employees of a business in the early 1900s, and it became more popular in the 1960s.

The purpose of HRM procedures is to manage the workforce so that the organization may fulfill its mission and uphold its culture. HR managers can, when done successfully, assist in the hiring of new employees with the qualifications needed to advance business objectives as well as assist in the training and development of current staff members to achieve goals.

The HR department is made up of several different disciplines, and human resources managers employed by smaller businesses might handle more than one of the five primary responsibilities of talent management, employee compensation and benefits, training and development (Dessler, G., 2017).

• Talent Management: The HR department's talent management staff has a wide range of responsibilities. Previously separate divisions of the department have been consolidated under a single heading. The team in charge of talent management is in charge of hiring, developing, and keeping personnel. • Compensation and Benefits: One or two human resources specialists can

frequently supervise the salary and benefits positions in smaller businesses, but in organizations with a bigger workforce, the responsibilities are typically divided up. Examining rivals' pay policies and creating the compensation structure are two HR tasks related to compensation. Along with department

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managers, the compensation department is also in charge of writing job descriptions and collaborating with talent management on succession planning. • Training and Development: Every business wants to see its workers flourish, so

it must give them all the resources they require. These tools can include new employee orientation, leadership training programs, personal and professional development, and managerial training; they don't always have to be tangible like computers, work-related software, or instruments for a certain trade. The HR team includes training and development, sometimes known as learning and development. The development of instructional programs that directly impact the achievement of the firm's goals may fall under the purview of the training team, depending on the type of employee position played at the organization. Degrees in training and development are now widely available from colleges and universities; a degree in instructional design would also be useful in this position.

<b>2.2.2 Attraction, selection, and attrition theory (ASA) </b>

The Attraction-Selection-Attrition model, also known as the ASA model, was first proposed in “The People Make the Place” an article published in 1987 by Benjamin Schneider. The ASA propose that organizations are functions of the people who are within the group, and the people within that group are functions of its model (Schneider, 1987). Three stages covered by this model are attraction, selection, and attrition. It is a cycle that demonstrates why people become attracted to a company, why they are chosen for the company, and how, over time, they may quit if they feel the company no longer meets their own needs. Moreover, according to Schaubroeck, J., Ganster, D.C., & Jones, J.R. 1998, Schneider has noted that the characteristics which are most relevant to the ASA model are personality, values, and attitudes. There are three steps in the Attraction-Selection-Attrition theory. Together, they define the kinds of individuals who would be part of a company. After that, the nature of the group which is in terms of structure, processes, and culture, will be defined by choosing the people who will be a part of the organization.

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Tơi sẽ rất vui khi dành phần cịn lại của sự nghiệp của mình cho tổ chức này.

Tơi thích thảo luận về tổ chức của mình với những người bên ngồi tổ chức đó.

I really feel as if this

organization's problems are my own.

Tôi thực sự cảm thấy như thể vấn đề của tổ chức này là của riêng tôi.

I think that I could easily become as attached to another organization as I am to this one.

Tơi nghĩ rằng tơi có thể dễ dàng trở nên gắn bó với một tổ chức khác như tơi với tổ chức này. I do not feel like “part of the

family” at my organization.

Tôi không cảm thấy mình là "một phần của gia đình" tại tổ chức của mình.

I do not feel emotionally attached' to this organization.

Tơi khơng cảm thấy gắn bó về mặt cảm xúc với tổ chức này. This organization has great deal

of personal meaning for me.

Tổ chức này có rất nhiều ý nghĩa cá nhân đối với tôi.

I do not feel a strong sense of belong to my organization.

Tôi không cảm thấy một cảm giác mạnh mẽ thuộc về tổ chức của tôi.

Source: Synthesized by author, 2022 Table 3.1 Research proposed measurement scale

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