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International Journal of Trend in Scientific Research and Development (IJTSRD) Volume 5 Issue 6, September-October 2021 Available Online: www.ijtsrd.com e-ISSN: 2456 – 6470 @ IJTSRD | Unique Paper ID – IJTSRD47529 | Volume – 5 | Issue – 6 | Sep-Oct 2021 Page 1174 Factors Affecting Work Motivation of Official Credit Staff in Ham Thuan Bac District, Binh Thuan Province Nguyen Truong Thuan 1 , Nguyen Quoc Nghi 2 , Dinh Hoang Anh Tuan 1 1Phan Thiet University, Phan Thiet, Vietnam 2Can Tho University, Can Tho, Vietnam ABSTRACT This study inherits and develops the Kovach model (1987), also references researches related to employee motivation to find out factors affecting the work motivation of staff working at official credit institutions in Ham Thuan Bac district, Binh Thuan province. Research data are collected from 176 employees working at official credit institutions by convenient sampling. Applying exploratory factor analysis and multivariate linear regression, the study has demonstrated impacting factors to employee motivation. They include learning and promotion opportunities, income and benefit, care and recognition, working environment, leadership style, nature of work, workplace relationship, empowerment, and job stability. Especially, the factor of learning and promotion opportunities has the most influence on the working motivation of official credit employees in Ham Thuan Bac district, Binh Thuan province. KEYWORDS: work motivation, credit organization, employee How to cite this paper: Nguyen Truong Thuan | Nguyen Quoc Nghi | Dinh Hoang Anh Tuan "Factors Affecting Work Motivation of Official Credit Staff in Ham Thuan Bac District, Binh Thuan Province" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-6, October 2021, pp.1174-1179, URL: www.ijtsrd.com/papers/ijtsrd47529.pdf Copyright © 2021 by author (s) and International Journal of Trend in Scientific Research and Development Journal. This is an Open Access article distributed under the terms of the Creative Commons Attribution License (CC BY 4.0) (http://creativecommons.org/licenses/by/4.0) 1. PROBLEM STATEMENT In the era of industry 4.0, most businesses consider human resource quality as their priority. The market is moving towards digital transformation and enterprises are concerned about investing in technology as well as service quality. However, if the quality of human resources does not meet certain demands, the investment in technology or service quality is not meaningful. How to properly exploit the available human resources to develop the business is an urgent issue for human resource managers. Work motivation is one of the most significant factors. Self-conscious workers with strong motivation have the strength to overcome obstacles and complete the assigned tasks. This helps improve work efficiency and contributes to the success of the organization. Therefore, work motivation and factors affecting the work motivation need to be focused on, thereby building an appropriate management model which brings higher efficiency to the enterprise. Human resource quality reflects the stability, development, and safety of the whole banking system. Motivating employee plays an essential role in improving the bank's performance in the fierce competition context. Therefore, researching the factors affecting employee motivation in banks is necessary. It is because this will be the basis for managers to arouse and maintain the motivation for employees, above all retain top talents. Hence, the study of factors affecting the work motivation of employees at official credit institutions in Ham Thuan Bac district, Binh Thuan province was implemented. 2. THEORETICAL FRAMEWORK AND RESEARCH HYPOTHESES According to Herzberg (1959), work motivation is a psychological process arising from the excitement, direction, and perseverance to achieve individual and organizational goals. Work motivation is the voluntary, desire, and effort to work which helps employees achieve personal goals, thereby acquiring IJTSRD47529 International Journal of Trend in Scientific Research and Development @ www.ijtsrd.com eISSN: 2456-6470 @ IJTSRD | Unique Paper ID – IJTSRD47529 | Volume – 5 | Issue – 6 | Sep-Oct 2021 Page 1175 the organization’s objectives (Bedeian 1993). Motivation is an internal impulse, based on the basic conscious and unconscious needs of an individual which forces them to work towards the goals (Carr, 2005). In a study in 2007, Quan and Diem stated that work motivation is the desire and willingness of employees to increase efforts to achievecollective goals. Pinder (2014) argued that work motivation is a combination of powerful energies originating both internally and externally that performs work-related behaviors, determines the direction, intensity, and duration of the work. Based on the theoretical basis and research models related to the motivation of employees (Kovach, 1987; Herzberg, 1959; Vroom, 1964; McClelland (1987), the study proposes a model of factors influencing the work motivation of employees at official credit institutions in Ham Thuan Bac district, Binh Thuan province. The model includes ten factors: income and benefit, nature of work, learning and promotion opportunity, leadership style, workplace relationship, working environment, job stability, care and recognition, empowerment, work-life balance. The authors use group discussions (qualitative research) with experts and staff working at official credit institutions in Ham Thuan Bac district to collect data. The discussion result creates research hypotheses and appropriate scales for the research model, so the model is established as follows: Figure 1: Proposed research model Table 1: Interpretation of observed variables in the research model Factor Observed variables Sign Reference resources Income and benefit Salary and welfare policies are decentralized. IB1 Khan et al. (2017), Dung (2020) The current salary is commensurate with employees’ ability. IB2 Rewards are commensurate with their contributions and dedication. IB3 Insurance and working allowance are reasonable. IB4 Good policies of sick leave, maternity leave, annual leave, etc. IB5 Work nature Work is arranged appropriately with the employees’ capacity and strengths. WN1 Akhtar et al. (2014) Employees understand the work they are responsible for. WN2 Employees have the right to make decisions about their work issues. WN3 The job requires employees to make good use of their abilities. WN4 The job requires employees to learn and improve skills to ensure effective work. WN5 Learning and promotion opportunity Employees participate in training programs to enhance their professional skills. LP1 Dung (2020) Employees participate in other training programs. LP2 Top employees have promotion opportunities. LP3 Employees have opportunities for career development. LP4 The bank provides good conditions to improve professional qualifications for employees (exchange programs, knowledge improvement activities, etc) LP5 Income and benefit Work nature Learning and promotion opportunity Leadership style Working environment Job stability Work-life balance Work motivation Workplace relationship Care and recognition Empowerment International Journal of Trend in Scientific Research and Development @ www.ijtsrd.com eISSN: 2456-6470 @ IJTSRD | Unique Paper ID – IJTSRD47529 | Volume – 5 | Issue – 6 | Sep-Oct 2021 Page 1176 Leadership style Managers always respect and trust their employees. LS1 Akhtar et al. (2014) Managers always treat employees fairly without discrimination. LS2 Employees easily communicate with their managers. LS3 Managers always acknowledge the employees’ contributions. LS4 Managers have high ability, strategic vision, and executive skills. LS5 Workplace relationship Colleagues always share knowledge and experience at work. WR1 Barzokiet al.(2012) Colleagues are friendly and open. WR2 Coordination and cooperation between employees take place in a positive and effective direction. WR3 Colleagues always support each other. WR4 The staff is willing to cooperate working as a team. WR5 Working environment Office and outside working time is arranged reasonably and scientifically. WE1 Khan et al. (2017), Dung (2020) Full working facilities and equipment. WE2 The workplace is safe and secure. WE3 Employees are supported to travel to work (vehicle, travel expenses) WE4 The performance evaluation criteria are clear and public. WE5 Job stability The staff finds their current job is stable. JS1 Dung (2020) The staff is not worried about unemployment. JS2 The bank guarantees the number of working hours for employees according to the current regulations. JS3 Employees have clear labor contracts with the bank. JS4 The bank issues the job guarantee policy for employees. JS5 Care and recognition Managers recognize staff's achievements at work. CR Akhtar et al. (2014) Managers timely reward employees with high performance. CR2 Managers fairly evaluate employees’ performance. CR3 Managers use performance appraisals as a mechanism to control employees’ performance. CR4 Managers always encourage employees at work. CR5 Empowerment The bank allows employees to make decisions related to their work. EM1 Akhtar et al. (2014), Khan et al. (2017), Managers encourage employees to make decisions related to the bank’s operation. EM2 Employees can give ideas to develop the bank. EM3 The bank listens to employees before making decisions. EM4 The bank collects feedback from employees regularly. EM5 Work-life balance The working schedules can be arranged flexibly. WL1 Barzokiet al.(2012) Employees have time for their families. WL2 Employees have time for personal-care activities. WL3 Employees are not worried about family-related issues when they come to work. WL4 Work motivation Employees feel excited doing their current job. WM1 Akhtar et al. (2014), Khan et al. (2017), Dung (2020) Employees usually work in the best mood. WM2 Employees feel motivated with their job duties. WM3 Employees want to spend more time at work. WM4 The work in charge means a lot to employees. WM5 Source: Authors’ proposal, 2021 International Journal of Trend in Scientific Research and Development @ www.ijtsrd.com eISSN: 2456-6470 @ IJTSRD | Unique Paper ID – IJTSRD47529 | Volume – 5 | Issue – 6 | Sep-Oct 2021 Page 1177 3. RESEARCH METHODOLOGY 3.1. Analytical method The study uses convenient sampling to survey 176 employees working at official credit organizations in Ham Thuan Bac district, Binh Thuan province. According to Hair et al. (1998), to meet the requirement of the EFA, the observations/measurement variable proportion needs to be 5/1 which means one measurement variable requires five observations in minimum. Tabachnick and Fidell (2007) showed the suitable sample size for regression analysis should be N ≥ 50 + 5*m (m is the number of independent variables). To conclude, the sample size of the study meets the requirements for the research hypothesis test. 3.2. Data collection method The analytical methods used to test the research hypotheses include testing the reliability of the scales by Cronbach's alpha coefficient, êxploratory factor analysis, and multivariate linear regression. The analysis is carried out in the following three-step sequence. Step 1: Use Cronbach's alpha coefficient to test the correlation between observed variables. Step 2: Use exploratory factor analysis (EFA) to test the convergent and discriminant validity of variables. Step 3: Use multivariate linear regression to test the research hypotheses. 4. RESEARCH RESULTS AND DISCUSSION 4.1. Test the reliability of scales The scale reliability is evaluated by Cronbach's alpha coefficient. Cronbach's alpha coefficient helps eliminate "trash" variables. Those with item-total correlation values less than 0.3 are excluded (Nunnally, 1978; Peterson, 1994; Slater, 1995) and the scale is selected if its Cronbach's alpha coefficient is greater than 0.6 (Nunnally & Bernstein, 1994). The analysis results in table 2 show that all scales have high reliability (α ≥ 0.7). Also, all observed variables item-total correlation higher than 0.5. Therefore, all scales can be used in the exploratory factor analysis (EFA). Table 2: Reliability test of scales Factor Number of observed variables Min item-total correlation Cronbach's alpha Income and benefit 5 0.617 0.857 Work nature 5 0.688 0.884 Learning and promotion opportunity 5 0.551 0.808 Leadership style 5 0.611 0.850 Workplace relationship 5 0.528 0.853 Working environment 5 0.609 0.856 Job stability 5 0.641 0.860 Care and recognition 5 0.590 0.869 Empowerment 5 0.587 0.898 Work-life balance 4 0.742 0.774 Work motivation 5 0.679 0.887 Source: Survey data, 2021 4.2. Exploratory factor analysis (EFA) For independent variables, the EFA is implemented twice that achieving these results: (1) Reliability of observed variables (Factor loading > 0.5). (2) Test the suitability of the model (0.5 < KMO = 0.752 < 1.0). (3) Bartlett's test on correlation of observed variables (Sig. = 0.00 < 0.05). (4) Cumulative variance test achieves 66.63% > 50% (Anderson and Gerbing, 1988). The variable LP3 (with factor loading < 0.5) is excluded from the model because it does not meet the significance requirement (Hair et al., 1998). The results have formed ten factors with Eigenvalue = 1.5 and there is no variable disturbance between factors, so the names of the factors remain the same. Similarly, the results of EFA for the dependent variable give satisfactory results: The significance level of the model (Sig) is less than 0.05, KMO value = 0.874 in the range from 0 to 1, factor loading of variables are all greater than 0.5. The total variance explained reaches 68.8% > 50%. This confirms that the study data are consistent (Anderson and Gerbing, 1988). As a result, the analysis forms one factor, which is work motivation. All factors are shown in the table below. International Journal of Trend in Scientific Research and Development @ www.ijtsrd.com eISSN: 2456-6470 @ IJTSRD | Unique Paper ID – IJTSRD47529 | Volume – 5 | Issue – 6 | Sep-Oct 2021 Page 1178 Table 3: Factors formed from the EFA result Sign Observed variables Factor IB 5 variables Income and benefit WN 5 variables Work nature LP 4 variables Learning and promotion opportunities LS 5 variables Leadership style WR 5 variables Workplace relationship WE 5 variables Working environment JS 5 variables Job stability CR 5 variables Care and recognition EM 5 variables Empowerment WL 4 variables Work-life balance WM 5 variables Work motivation Source: Survey data, 2021 4.3. Multivariate linear regression According to the result in table 4, the significance level (Sig.F = 0.00) is much smaller than the α = 5% level, so the regression model is set up appropriately. The adjusted R2value is 66.1%, which proves that the independent variables explain the variation of work motivation at a high level. The Durbin-Watson test has a value of 2.039 meaning that the model does not have autocorrelation (Trong and Ngoc, 2008). Besides, the variance inflation factor (VIF) of the variables are all less than 10, so the multicollinearity is not significant (Nam, 2008). Table 4: Multivariate linear regression result Factor Standardized coefficient Significance level(Sig.) Variance inflation factor VIF Hypothesis Income and benefit 0.267 0.000 1.589 H1: accepted Work nature 0.119 0.004 1.251 H2: accepted Learning and promotion opportunities 0.292 0.000 1.390 H3: accepted Leadership style 0.130 0.003 1.351 H4: accepted Workplace relationship 0.110 0.016 1.510 H5: accepted Working environment 0.136 0.001 1.268 H6: accepted Job stability 0.090 0.042 1.437 H7: accepted Care and recognition 0.164 0.000 1.111 H8: accepted Empowerment 0.095 0.017 1.135 H9: accepted Work-life balance 0.079 0.051 1.179 H10: rejected (Sig.F)= 0.000; Adjusted R2= 0.661; Durbin-Watson = 2.039 Source: Survey data, 2021 Based on the result table, there are nine accepted research hypotheses. This means the work motivation of employees at credit organizations is influenced by the following factors: income and benefit, nature of work, learning and promotion opportunity, leadership style, workplace relationship, working environment, job stability, care and recognition, and empowerment. All nine factors have positive impacts on the work motivation of credit staff. In particular, the learning and promotion opportunity factor has the most impact on their work motivation. The actual survey shows that employees at credit institutions are concerned about training programs to improve their professional qualifications and develop their careers. Therefore, managers of credit institutions shouldfocus on the learning and promotion opportunities to better motivate employees. 5. CONCLUSION In general, the study has achieved the set goal which is to identify the factors affecting the work motivation of employees at credit institutions in Ham Thuan Bac District. The study has found out nine positive affecting factors to employee motivation at credit institutions, including income and benefit, nature of work, opportunities for learning and promotion, leadership style, workplace relationship, working environment, job stability, care and recognition, and empowerment. In which, the factor of learning and promotion opportunities has the strongest influence on credit employees. The research results are a helpful scientific basis to help managers at credit institutions develop action programs to improve employees’ motivation in the future. References [1] Akhtar, N., Aziz, S., Hussain, Z., Ali, S., & Salman, M. (2014). Factors affecting employee International Journal of Trend in Scientific Research and Development @ www.ijtsrd.com eISSN: 2456-6470 @ IJTSRD | Unique Paper ID – IJTSRD47529 | Volume – 5 | Issue – 6 | Sep-Oct 2021 Page 1179 motivation in the banking sector of Pakistan. Journal of Asian Business Strategy, 4(10), 125- 133. [2] Anderson, J. C., & Gerbing, D. W. (1988). Structural Equation Modeling in Practice: A Review and Recommended Two-Step Approach. Psychological Bulletin, 103(3), 411- 423. [3] Barzoki, A. A., Attafar, A., & Jannati, A. R. (2012). 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