Factors affecting employee performance through a mediation of job satisfaction. An empirical study of Hospitality Industry in Ho Chi Minh city, VietNam
Journal of Science Ho Chi Minh City Open University – VOL. 2 (18) 2016 – June/2016 49
FACTORS AFFECTING EMPLOYEE PERFORMANCE THROUGH
A MEDIATION OF JOB SATISFACTION.
AN EMPIRICAL STUDY OF HOSPITALITY INDUSTRY IN HO
CHI MINH CITY, VIETNAM
Mai Ngoc Khuong1,*, Nguyen Tran Nguyen Khai2,
Pham Thanh Huyen3, Nguyen Vo Hoai Thuong4, Nguyen Thi Minh Phuong5
1,2,3,4,5International University, Vietnam National University HCMC.
*Email: mnkhuong@hcmiu.edu.vn
(Received: December 24, 2015; Revised: January 07, 2016; Accepted: May 17, 2016)
ABSTRACT
The research was conducted to explore the relationships between the factors of career
development, team spirit, relationship at work, compensation and benefit, working environment,
job stress and the factor of employee performance through a mediation of job satisfaction in
Hospitality Industry in Ho Chi Minh City, Vietnam. Based on previous theoretical and empirical
studies, the research conceptual framework and hypotheses were constructed. The primary data
was collected from a questionnaire survey with 711 respondents. Multiple regression and Path
analyses were conducted to test the research hypotheses, the results showed that career
development, team spirit, relationship at work, compensation and benefit, working environment,
and employee job satisfaction positively and directly impacted on employee performance. In
addition, all factors indirectly influenced employee performance through job satisfaction. Hence,
organizations operating in hospitality industry in Ho Chi Minh City should understand better
employee expectations to efficiently and effectively improve and manage their human resources.
Keywords: Job satisfaction; employee performance; career development; team spirit;
relationship at work; compensation and benefit; working environment; job stress.
achievements. Furthermore, it contributes
positively to the region’s economic development
because of the increase in the number of total
revenue in whole industry through many years.
1. Introduction
Concerned by the Party and the State in Ho
Chi Minh City, Hospitality Industry develops and
gains many considerable successfulness and
Table 1. The revenue of hospitality industry in Ho Chi Minh city
(currency: billion VND)
2012 2013 2014
Year
2008
2009
2010
2011
Total
27,177 31,399 40,014 46,168 56,951 68,738 67,834
Revenue
Source: Statistical Office in Ho Chi Minh City – 2014.
50 Factors affecting employee performance through a mediation of job satisfaction...
In addition, the more increasing the
economy develops, the higher the workforce
demands, because employees play an
important role in any organization’s successful
performance. However, the reality shows the
human resources in hospitality industry in
Ho Chi Minh City are in a state of "no lack of
the manpower, but lack of the qualified
human". It is reflected through a lack of
serving professionalism to satisfy customers.
Therefore, establishing the workforce with
good job performance becomes very urgent
and important with the key factors to create
good employee performances, such as:
career development, team spirit, relationship
at work, compensation and benefit, working
environment, job stress and job satisfaction
(Judge et al., 2001; Swarnalatha and
Sureshkrishna, 2014).
The objective of this research was to
identify which important factors and how
these factors affect job performance of
employees working in hospitality industry
in Ho Chi Minh City. Then, this study
provided the practical evidences about these
causal relationships and suggested some
constructively specific recommendations for
hospitality industry in Ho Chi Minh City to
improve the higher job satisfaction and to lead
the better employee performance.
their current company. Its level can be
evaluated from “strongly satisfied” to
“strongly dissatisfied” by employees in
various impacts by their work characteristics,
their supervisors and co-workers, their
compensation and benefit as well as other
internal and external factors.
When discussing about the elements of
job satisfaction, it should be considered
whether these elements can also cause job
dissatisfaction. Hence, they can become two
opposite and excludable phenomena and can
cause a lot of no consensus among authors. To
solve this problem, there is a theory to be
recognized as the most solution, because it
presents a main idea that employees are
affected by the factors that cause both job
satisfaction and job dissatisfaction in the
workplace. Moreover, this theory separates
the factors leading to job satisfaction
(motivators) and the other factors leading to
job
(Herzberg, 1976).
2.2. Employee Performance
dissatisfaction
(hygiene
factors)
Employee performance is really essential
for any organization, because an organization’s
successfulness is dependent on creativity,
innovation, satisfaction and commitment
shown by its employees (Ramlall, 2008).
Furthermore, good employee performances and
productivity growth are important to stabilize
the economy; to improve the better living
standards, to grow up the higher wages, and to
increase the available goods for consumption.
Therefore, the general researches about
individual employee’s performance are
important to social community (Griffin et al.,
1981).
To explain further, some previous
researchers clarified clearly the meanings of
employee performance when they explained
that some observable behaviors, which are
done by employees in their jobs, are relevant
to the target of an organization and are also
known as job performance (Campbell et al.,
2. Literature review
2.1. Job Satisfaction
One of most popular “job satisfaction”
definitions said that job satisfaction is an
association between three factors of
psychology, physiology and environment
together to create an employee to say
truthfully that “I am satisfied with my current
job.” It means that job satisfaction presents a
set of factors that cause a feeling of
satisfaction (Hoppock, 1935). In addition,
George and Jones (2008) stated that job
satisfaction is an overall collection of
emotions and beliefs that people can feel
themselves during the period of working in
Journal of Science Ho Chi Minh City Open University – VOL. 2 (18) 2016 – June/2016
51
1990). Other researchers also stated that job
performance is not the consequence of
behaviors that is an inclusion of all behaviors
of employees that can be observed when they
actually engage (Campbell et al., 1993).
Moreover, job performance is also defined as
how work is important to employees, how
employees master the important skills in their
jobs and whether employees have the rights to
determine the way his or her work (Hussin,
2011).
elements to be taken place and the team spirit
to be behaved by team members. The second
one consists of cooperation and interaction
of team members to complete the task
performances well and to gain the set targets
specifically. With regard to the final phrase of
team outputs, it shows the results as well as
the
productivities
are
achieved
by
performances of team members.
2.5. Relationship at Work
In the workplace, the relationship
between employees and their employers is
considered as an associating perception
between their supervisor’s management and
their overall working attitudes in their
organization. In fact, management style is
usually one of the most important problems to
be concerned, because it can directly or
indirectly affect employee performance as
well as productivity and reputation of an
organization.
There are many considerable components
to build a good relationship at work. Firstly,
the relationship with immediate supervisor,
employees can be responded more effectively
about their needs and problems by their
2.3. Career Development
Career development provides the
beneficial opportunities for employees joining
in job training and other types of professional
development in order to achieve the better
new advanced skills, to take greater
responsibility at work, to improve their status,
to earn higher income, all of which is aimed to
promote their career. Organizations will
become more effective and efficient if they
have their professional employees know how
to use skills and abilities in workplace to
handle tasks well and complete their roles
successfully so as to develop to their
organizations (SHRM, 2013).
immediate
supervisor.
Secondly,
the
2.4. Team Spirit
Teamwork is also known as Team Spirit,
is described as an organizational cooperation,
is performed contemporaneously by all
members in a team (Ingram and Desombre,
1999). It becomes an essential role for
success and survival of an organization
(Becton et al., 2002). To explain more
specific, teamwork is understood as the
collaboration between people in a group
together, who gain certain specialization in
capacities, abilities, knowledge and skills to
perform task, are also responsible for the
outcomes at the same time that their tasks are
conducted (Manzoor et al., 2011).
communication between employees and
senior management, this issue is also essential
because effective communication from senior
management can provide the workforce with
direction. The third component is autonomy
and independence, it means that organizations
give their employees freedom and flexibility
to decide how and when they complete
projects because they can improve employee
satisfaction and engagement; moreover, it also
make their employees be responsible for their
work outcomes as well as motivate them to
produce better results. Finally, management’s
recognition of employee job performance
through praise (private or public), awards
and incentives is a cost-effective way to
increase employee morale, productivity and
competitiveness (SHRM, 2013).
Organizations usually use three primary
phrases to develop their teamwork models.
The first phrase comprises the task
characteristics to be performed, the contextual
52 Factors affecting employee performance through a mediation of job satisfaction...
affecting the working environment factor,
including: job security; organization’s
financial stability; the work itself; feeling safe
in the work environment; overall corporate
culture; relationships with co-workers;
meaningfulness of the job; contribution of
work to the organization’s business goals;
variety of work; organization’s commitment
to corporate social responsibility; to a diverse
and inclusive workforce and to a “green”
workplace (SHRM, 2013).
2.6. Compensation and Benefit
Compensation and benefit refers to all
forms of financial returns, tangible services
and benefits that all employees are received as
an important and essential part in the
employment relationship. Pay may be
received directly in the form of cash (wages,
merit increases, incentives, cost of living
adjustments…) or indirectly through some
benefits and services (pensions, health
insurance, paid time off…) (Milkovich and
Newman, et al., 2008).
2.8. Job Stress
In addition, compensation is mentioned
including four main components such as
being paid competitively with the local
market; base rate of pay; opportunities for
variable pay (bonuses, commissions, other
variable pay; monetary rewards for ideas or
suggestions) and stock options. With regard to
benefit, there are six specific aspects of
benefit evaluated by job satisfaction of
employees, which consist of health
care/medical benefits; paid time off;
flexibility to balance life and work issues;
defined contribution plans; defined benefit
pension plans; family-friendly benefits
(SHRM, 2013).
The term of stress is defined as a
deviation from normal psychological or
physiological functioning activities caused by
urgent demands or immediate variations that
individuals in organizations are suffered. It
can be explained further that job stress is a
particular awareness or feeling of each person
about personal dysfunction as a result of
perceived conditions or happenings in the
workplace of any type of organization, where
employees are demanded to change from
normal or self-desired functioning due to
opportunities or difficulties, or requirements
relating to potentially important work-related
outcomes (Cooper and Marshall, 1976; Beehr
and Newman, 1978; Katz and Kahn, 1978;
Ivancevich and Matteson, 1980; Schuler,
1980).
2.7. Working Environment
Working environment is known as
physical
geographical
locations
and
surroundings in the workplaces. Working
environment and employee job performance is
interrelated (Hameed and Amjad, 2009;
Akinyel, 2010). It means that employees are
hard-working to improve the more effective
performance and to increase the higher
profitability and competitiveness in their
organizations if they are provided a good
working environment.
Therefore, organizations believe that their
workforce will increase job satisfaction, raise
productivity and performance if they really
feel enjoyable and comfortable in their
convenient working environment. There are
many various components differently
Besides that, job stress can occur when
there are too many different organizational
aspects; when the working time lasts
continuously; when employees are not
received any supports and changes from their
organizations or any supports and directions
from their supervisors and colleagues; finally,
when there are too many conflicts with
demands and pressures from their jobs.
Consequently, job performance of employees
declines under stressful situations. Moreover,
the stressful problems from employees will
decrease the quality productivity as well as
organizational survival. Hence, stress at
workplace becomes an essential concern to
Journal of Science Ho Chi Minh City Open University – VOL. 2 (18) 2016 – June/2016
53
organization administrators (Deckard et al.,
1988).
link of online questionnaire was sent to
respondents through email and Facebook.
After completing data collection, there were
711 valid respondents in total.
Previously, there were many researchers
to prove both the direct and indirect impacts
as well as the causal relationships among all
factors mentioned in this study (Judge et al.,
2001; Swarnalatha and Sureshkrishna, 2014).
This study hypothized as follows:
H1: Factors of career development, team
spirit, relationship at work, compensation and
benefit, working environment and job stress
positively and directly affect Job Satisfaction.
H2: Factors of career development, team
spirit, relationship at work, compensation and
benefit, working environment, job stress and
job satisfaction positively and directly affect
Employee Performance.
3.2. Data Analysis
SPSS software (Statistical Package for
the Social Science) was used to analyze the
data. Firstly, to explore the correlations of
independent and dependent variables and to
examine the reliability and validity of them,
the study conducted Exploratory Factor
Analysis (EFA) and Reliability Test.
Secondly, Multiple Regression and Path
Analysis were applied to find out the causal
relationships between independent variables
and dependent variable. Finally, basing on the
analyzed results, the researcher could
conclude the hypotheses in the study.
H3: Factors of career development, team
spirit, relationship at work, compensation and
benefit, working environment and job stress
positively and indirectly affect Employee
Performance through Job Satisfaction.
3. Methodology
4. Research findings
4.1. Profile of the Sample
Nearly half of respondents are
receptionists or waiters/waitresses working in
hotels or restaurants. This position occupies
46.1% of total with 328 respondents. The
position of low level manager accounts for
36.3% of total with 258 respondents. And the
rest is middle level and high ranked manager
position, including 125 managers with 17.6%
of total respondents.
In term of gender, number of male
employees and a number of female employees
working in hospitality industry in Ho Chi
Minh City are nearly equal. There are 342
male respondents with the proportion of
48.1% and 369 female respondents with the
proportion of 51.9%.
There are 487 single employees working in
hotels and restaurants in Ho Chi Minh City
while there are only 224 employees enjoying
the married life. Employees who experience
their jobs in hospitality industry less than 1 year:
128 people (18.0%), from 1 - 3 years: 274
people (38.5%), from 4 - 6 years: 206 people
(29.0%), from 7 - 10 years: 73 people (10.3%)
and from over 10 years: 30 people (4.2%).
3.1. Questionnaire Design and Data
Collection
To test the proposed model and the given
hypotheses, quantitative approach was mainly
applied and a questionnaire survey was used
to collect data. All items in the questionnaire
were set with the Likert Scale’s statement,
basing on the five-point ranging from scale 1
to scale 5, equivalent to “strongly disagree” to
“strongly agree”. The target population of this
study was employees working in hospitality
industry in Ho Chi Minh City.
The researcher conducted the Pilot Test
with N=30 to calculate the reliability and find
out potential problems of measurement in the
questionnaire in order to revise immediately
and prevent the research result from Halo
Effect.
This study applied convenient sampling
technique. The data were collected by two
ways: (1) questionnaires were delivered
directly to the target respondents and (2) the
54 Factors affecting employee performance through a mediation of job satisfaction...
As regards age, the age group from 23 –
30 years old has the highest proportion
(53.0%) with 377 respondents. The second
and third portion is the group from 18 – 22
years old and from 31 – 45 years old with the
ratio of 25.2% (equivalent to 179 respondents)
and 16.9% (equivalent to 120 respondents).
The rest of three groups contributes very
small percentages in result total of the study,
including 11 employees under 18 years old
(1.5%), 22 employees from 46 – 65 years old
(3.1%) and only 2 employees over 65 years
old (.3%).
The ratio of educational levels,
employees who belong to two groups of
college and university, have the two most
proportions (274 people graduating from
college and 263 people graduating from
university). Their proportions are nearly
equal, 38.5% and 37.0%, respectively. Next
group is vocational school with 98 employees,
equivalently to 13.8%. The group of post
university has 40 respondents with the rate of
5.6%. The final group consists of 36
employees graduating from high school with
the smallest ratio in total (only 5.1%).
4.2. Factor Analysis and Reliability
Table 2. Summary of independent variables
Variables
No. of Items
Cronbach’s
Alpha
(N = 711)
JOB STRESS (JOSTRES)
9
7
6
6
3
3
.877
.867
.861
.841
.728
.747
TEAM SPIRIT (TEASPIRI)
COMPENSATION & BENEFIT (COMBEN)
CAREER DEVELOPMENT (CARDEV)
RELATIONSHIP AT WORK (RELAWOR)
WORKING ENVIRONMENT (WORENVI)
There are two exploratory factor analyses
(EFA) were conducted with Kaiser-Meyer-
Olkin and Barltlett’s test of sphericity and
Varimax Rotation of 64 items of independent
variables and 17 items of dependent variables.
The research collected the results of the
KMO measure of sampling adequacy for
both independent variables (KMO=.930)
and dependent variables (KMO=.882). They
were higher than the minimum value for a
good factor analysis .60 [34]. Furthermore,
Barltlett’s test of sphericity was significant
(Sig.=.000), demonstrating the sufficient
correlation between the variables.
different components, including JOSTRES,
TEASPIRI, COMBEN, CARDEV, RELAWOR
and WORENVI. Factor loadings of remained
items were from .467 to .755, all of which
were acceptable because of being higher than
the level of minimum requirement at .40 (Hair
et al., 2006). In addition, Cronbach’s
coefficient alpha value above .60 was proved
to be acceptable by Pallant (2007), as a result,
Cronbach’s coefficient alpha values in the
research were accepted because of their values
greater than .70.
With the regard to factor loadings of
remained items of dependent variables in the
table 3, they were separated 2 groups of
EMJOSA and EMJOPER with their ranges
From the result shown in table 2, all
independent variables were divided into 6
Journal of Science Ho Chi Minh City Open University – VOL. 2 (18) 2016 – June/2016
55
from .536 to .777 and with their Cronbach’s
respectively.
coefficient alpha values were .850 and .789,
Table 3. Summary of dependent variables
Variables
No. of Items
Cronbach’s
Alpha
(N = 711)
JOB SATISFACTION (EMJOSA)
9
4
.850
.789
EMPLOYEE PERFORMANCE (EMJOPER)
dependent variable of EMJOPER. It means
that if employees had the higher job
satisfaction of career development, working
environment, relationship at work and team
spirit; they would perform their jobs with the
higher level. On the other hand, because of
some current compensation and benefit
problems happened, this factor might not
become the component impact dramatically
on job performances; additionally, job stress
suffered from employees could lowly affect
the level of job performance.
4.3. Factors affecting Job Satisfaction
and Employee Performance
The research applied Pearson’s Correlation
Analysis and Linear Regression Analysis to
explore the relationships between independent
and dependent variables.
Table
4
showed that while four
independent variables of CARDEV, TEASPIRI,
RELAWOR and WORENVI and the mediate
variable of EMJOSA had the highly positive
correlations; COMBEN and JOSTRES had
the lowly positive correlations with the
Table 4. Correlations between variables
EMJOPER
.449
(1)
1
(2)
(3)
(4)
(5)
(6)
(1) CARDEV
(2) TEASPIRI
(3) RELAWOR
(4) COMBEN
(5) WORENVI
(6) JOSTRES
(7) EMJOSA
Mean
.460
.616
1
.456
.524
.648
.567
.148
.642
3.64
.665
.556
1
.373
.613
.595
.142
.588
3.62
.667
.557
1
.433
.530
.111
.509
3.69
.699
.598
1
.151
.154
.227
.632
3.54
.719
1
.195
.519
.568
3.69
.703
3.91
3.42
.717
Std. Deviation
.649
Basing on the data’s result, it showed
all six independent variables are positively
and directly correlated with EMJOSA. The
vast majority of independent variables had
the strong relationships with EMJOSA:
CARDEV (r=.642, p<.001), COMBEN
(r=.632, p<.001), TEASPIRI (r=.588, p<.001),
WORENVI (r=.568, p<.001), RELAWOR
(r=.509, p<.001); by contrast, JOSTRES
(r=.195, p<.001) had only the low relationship
with EMJOSA.
In addition, the results of multiple
56 Factors affecting employee performance through a mediation of job satisfaction...
regression showed that these factors had
the positively and directly significant effects
on EMJOSA with the explanation of 53.6%
the variation of EMJOSA (R2=.536).
Furthermore, each independent variable had
each different level of the regression
coefficient, following: CARDEV (β=.252,
sig.=.000), COMBEN (β=.183, sig.=.000),
TEASPIRI (β=.129, sig.= .000), WORENVI
(β=.118, sig.= .000), RELAWOR (β=.066,
sig.=.022) and JOSTRES (β=.044, sig.= .045).
According to the result, EMJOPER was
very highly correlated with EMJOSA (r=.519,
p<.001); next, highly correlated with
CARDEV (r=.449, p<.001), TEASPIRI
(r=.460, p<.001), RELAWOR (r=.456,
p<.001) and WORENVI (r=.433, p<.001);
medium strongly correlated with COMBEN (r
= .373, p<.001); finally, very lowly correlated
with JOSTRES (r=.154, p<.001).
(β =-.132, sig.=.002); WORENVI (β=.092,
sig.=.019); EMJOSA (β=.328, sig.=.000);
whereas, JOSTRES was failed to achieve
statistical significance affecting EMJOPER
because of its significance sig.=.067 >.05.
Moreover, with the value of R-Square was
.350, it means that the model explained 35.0%
of the variance in EMJOPER.
4.4. Indirect Effects of Employee
Performance
The indirect effect index of each
independent variable on EMJOPER through
EMJOSA was calculated by calculating the
total effect of each independent variable on
EMJOSA and EMJOSA on EMJOPER
(Preacher and Hayes, 2008).
The effects of CARDEV, TEASPIRI,
RELAWOR, COMBEN, WORENVI and
JOSTRES on EMJOSA with β=.252, β=.129,
β=.066, β=.183, β=.118 and β=.044,
respectively; and the effect of EMJOSA on
EMJOPER with β=.328; hence, the indirect
effects of these independent variables on
EMJOPER through EMJOSA were equivalent
to .083, .042, .022, .060, .039 and .014.
On the other hand, there were six of
seven factors to have the direct effects on
EMJOPER, including: CARDEV (β=.097,
sig.=.029); TEASPIRI (β=.130, sig.=.003);
RELAWOR (β =.185, sig.=.000); COMBEN
4.5. Significance of the Indirect Effects
Table 5. Direct, indirect, total causal effects
Causal Effects
Indirect
.083
LL
UL
Variables
CARDEV
Direct
.097
.130
.185
-.132
.092
---
Total
.180
.172
.207
-.072
.131
.014
.328
.960
.0564
.0228
.0059
.0382
.0209
.0022
.1108
.0642
.0384
.0834
.0587
.0271
TEASPIRI
RELAWOR
COMBEN
WORENVI
JOSTRES
EMJOSA
.042
.022
.060
.039
.014
.328
.700
---
Total
.260
Journal of Science Ho Chi Minh City Open University – VOL. 2 (18) 2016 – June/2016 57
The results of the bootstrapping method
recommended by Preacher and Hayes (2008)
to test the significance of indirect effects or
mediation were shown in above table 5. It
provided the bootstrapped confidence intervals
at 95%. If there was a zero (0) to lie within the
interval range between the lower boundary
(LL) and the upper boundary (UL), there was
no mediation or indirect effect with 95%
confidence in the research. However, if a zero
(0) did not appear between the LL and the UL,
the research could conclude that the mediation
or indirect effects were significant with 95%
confidence (Preacher and Hayes, 2004).
From table 5, all indirect effects of six
independent variables on EMJOPER through
the mediation of EMJOSA were significant
because there was not any zero (0) occurring
between the LL and the UL. It could be
explained further at 95% confidence,
CARDEV with .0564 (LL) and .1108 (UL);
TEASPIRI .0228 (LL) and .0642 (UL);
RELAWOR with .0059 (LL) and .0384 (UL);
COMBEN with .0382 (LL) and .0834 (UL);
WORENVI with .0209 (LL) and .0587 (UL);
JOSTRES with .0022 (LL) and .0271 (UL).
4.6. The Causal Effects of Employee
Performance
Basing on the total effects of independent
variables on dependent variable, both direct
and indirect effects, and mediate variables
summarized in table 5, EMJOSA had the
strongest impact on EMJOPER (β=.328),
followed by RELAWOR (β=.207), CARDEV
(β=.180), TEASPIRI (β=.172), WORENVI
(β=.131) and JOSTRES (β=.014). In contrast,
COMBEN provided the negative impacts on
EMJOPER with β=-.072. In short, the total
effect of the factors affecting employee job
performance was .960.
Figure 1. Path coefficients of the structural equation for hypothesis testing
in Hospitality Industry in Ho Chi Minh City,
Vietnam. The research findings illustrated that
the factors of career development (total β =
.180, p < .05), team spirit (total β = .172, p <
.05), relationship at work (total β = .207, p <
.05), compensation and benefit (total β = -
.072, p < .05), and working environment (total
5. Discussions and recommendations
5.1. Discussions
The research with its empirical results
provided the positive explanation for the
proposed model of conceptual framework and
the appropriate prediction for current
circumstances in human resources management
58 Factors affecting employee performance through a mediation of job satisfaction...
β = .131, p < .05) directly and indirectly
affected employee performance through job
satisfaction. However, job stress did not
directly affect performance but provided
indirect effect ( β = .014, p < .05) to employee
performance through job satisfaction. It means
that employees working in Hospitality
Industry in Ho Chi Minh City will perform
the higher job productivity if they are more
satisfied with the demands and expectations
from their organizations.
This result was supported by some
previous researches’ demonstrations (Judge et
al., 2001; Parker and Decotiis, 1983; Mansoor
et al., 2011; SHRM, 2013; Manzoor et al.
2011; Musriha, 2013; Hussin, 2011; Parvin
and Kabir 2011; Chei et al. 2014). These
studies approved that the effects of six
independent variables towards employee job
satisfaction are significant and obvious.
Moreover, the positive relationship between
job satisfaction and employee performance
was identified clearly. Furthermore, four
factors of career development, team spirit,
relationship at work and working environment
were found to have the positive significance
with job performances of employees.
However, there were some significant
differences of the compensation and benefit
factors and the job stress factor to be explored
between the previous results and the result of
this study. To explain furthermore, while
compensation and benefit was found out to
have the negative significance with employee
job performance in this research findings, it
was considered to have the positive
relationship with employee job performance
by Vrinda and Nisha (2015). Additionally,
the previous studies of Bashir and Ramay
(2010); Swalhah et al. (2013); Swarnalatha
and Sureshkrishna (2014) showed that job
stress has a negative relationship with job
performance, because when stress occurs, it
negatively affects the job performance of
employees and if stress is lower, it will
increase employee job performance. In
contrast, in this research, the factor of job
stress was discovered to have the positive
relationship with employee performance, but
its effect was not considerably significant.
In conclusion, the causal relationships
between the factors of career development,
team spirit, relationship at work, compensation
and benefit, working environment and job
stress and job satisfaction and employee
performance are tested and confirmed. Almost
research hypotheses were accepted, but only
one (job stress) was not accepted. Hence, this
research conceptual framework provided the
empirical evidences to current situations of
Hospitality Industry in Ho Chi Minh City.
5.2. Recommendations for Hospitality
Industry in Ho Chi Minh City
From the research findings, the study
contributes some proposed constructive
recommendations to organizations and their
managers working in hospitality industry in
Ho Chi Minh City.
This empirical study provides the
practical proof on the causal relationships
between the factors of career development,
team spirit, relationship at work, compensation
and benefit, working environment, job stress
and employee job satisfaction as well as
employee job performance to raise up the
awareness of business organizations operating
in hospitality industry in Ho Chi Minh City
about the order level of these factors impacting
on their employees’ job satisfaction and job
performance.
Organizations should be seriously
interested in elements creating their employees’
job satisfaction: to satisfy with current job
when workload and work assignment is divided
appropriately, to receive salary and benefits
fairly, to satisfy with management and
supervision style at work, to have many
promotion opportunities, to feel safe and secure
in working environment. This study proves that
employees will perform their job at higher level
Journal of Science Ho Chi Minh City Open University – VOL. 2 (18) 2016 – June/2016 59
when they feel really satisfied with their jobs in
current organizations.
performance. Hence, this problem should be
more improved by organization so that job
performance of employees can be grown up
substantially. Managers should say that
To explain further, by recognizing and
understanding reasons why employees are
satisfied with their careers, organizations can
access closer to their target of increasing
employee job performance. Firstly, to build
relationships at work becomes better when
employees can communicate effectively with
their co-workers, immediate supervisors and
also feel easier and more convenient with
management style at work. Secondly, to
provide job specific training courses, to help
in advancing in employees’ career, to create
opportunities in using skills and abilities in
recognition
of
good
employee
job
performance is essential with specific actions
such as to pay salary competitively with local
market, to pay fair amount for the work, to
create opportunities for reasonably variable
pays and rewards (for example: bonuses,
monetary or non-monetary rewards for
creative ideas or new suggestions or effective
contributions).
In conclusion, all above proposed
recommendations and suggestions may be
suitable for some business organizations in
hospitality industry in Ho Chi Minh City to
improve and develop their better human
resources management. Increasing at the rate
of employee job performance means that the
service quality and productivity of
organizations will also increase in achieving
the higher total of annually profit and revenue.
6. Conclusion
learning
and
growing
professional
specialization, all of which make employees
satisfy with their company’s policies of career
development. Thirdly, with team spirit that
never gives up in difficult challenges and
pressures, always try to adapt crisis situations,
look out the problems and deal well with the
best solutions together, it will become the
strong cohesion in the cooperating
relationship between team members in group
together. Next, working environment is built
sustainably by mounting the social
responsibility, (including in balancing
financial performance with contributions to
the quality of life of employees, to local
community and society at large); as a result, it
will also increase employee job satisfaction.
In short, when almost above elements are
implemented by organization to meet the
demands of employees, it is believed that the
rate of job dissatisfaction will decrease and
the rate of job performance will increase
higher and higher in that organization.
This study is conducted in order to
identify and
investigate
the
causal
relationships between the six factors of career
development, team spirit, relationship at work,
compensation
and
benefit,
working
environment, job stress and the factor of
employee performance through the mediate
factor of job satisfaction, all of which are
surveyed by employees working in hospitality
industry in Ho Chi Minh City. Basing on the
previous theoretical as well as empirical
studies, the research constructs its conceptual
framework and hypotheses, which are
acceptable after the analysis of collected data.
From the research findings, the study shows
both of the significantly positive effects and
the significantly negative effects of
In addition, with the regard to
compensation and benefit, it seems not to be
concerned and focused by organizations
working in hospitality industry in Ho Chi
Minh City because this empirical research
shows that the compensation and benefit
independent
variables
on
employee
performance through job satisfaction, because
these factors become the effective tools to
predict, explore and explain job satisfaction
factor
negatively
affects
employee
60 Factors affecting employee performance through a mediation of job satisfaction...
and job performance of employees working in
hotels/restaurants in Ho Chi Minh City.
managing the workforce is essentially important
for any organization to maintain and to develop
the organization’s sustainable survival. With the
worthwhile and accurate and meticulous
information, this result will help organizations
and their managers to change and implement the
better improving strategies and plans to manage
and develop their human resources in the nearly
developing projects in future.
Hence, business organizations in hospitality
industry in Ho Chi Minh can apply the
empirical result of this research into their
organization and management systems to
understand deeply and then to meet exactly the
requirements as well as the expectations from
their employees. Always, operating and
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