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Would Better Earning, Work Environment, and Promotion Opportunities Increase Employee Performance? An Investigation in State and Other Sectors in Vietnam

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  • Phong Nguyen
  • Chuong Dang
  • Lam Nguyen

Abstract

In today’s competitive and globalized economy, there has been constant emphasis on creating and maintaining a high performance work system (Arthur, 1994 ; Becker and Gerthart, 1996 ; Delery and Doty, 1996 ; Huselid, 1995 , Pfeffer, 1998 , Dessler, 2012 ). High employee performance is what managers at all levels aim for. In addition to ability, motivation has certain impact on employee performance (Wright, Kacmar, McMahan, & Deleeuw, 1995 ; Ivancevich & Matteson, 1987 ). This study examines the impact of earning, work environment, and promotion opportunities on employee performance. It also compares these impacts between employees who work in the state sector and those who work in other sectors. A survey was conducted involving 205 employees working in both state and other sectors in Ho Chi Minh City using multiple regression analyses. The results showed that earning, work environment and promotion opportunities positively influence employee performance. A comparison of the relative strengths of the effects reveals that in both state and other sectors earning has the strongest effect on employee performance, and that the effect is stronger in state sector than in other sectors. Promotion opportunities have stronger effect on employee performance in state sector than in other sectors. Finally, work environment has a stronger effect on employee performance in other sectors than in state sector. In this paper, managerial implications, limitations and recommendations are discussed. Copyright Springer Science+Business Media New York 2015

Suggested Citation

  • Phong Nguyen & Chuong Dang & Lam Nguyen, 2015. "Would Better Earning, Work Environment, and Promotion Opportunities Increase Employee Performance? An Investigation in State and Other Sectors in Vietnam," Public Organization Review, Springer, vol. 15(4), pages 565-579, December.
    • Handle: RePEc:kap:porgrv:v:15:y:2015:i:4:p:565-579
    DOI: 10.1007/s11115-014-0289-4
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    References listed on IDEAS

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    1. Steven E. Phelan & Zhiang Lin, 2001. "Promotion Systems and Organizational Performance: A Contingency Model," Computational and Mathematical Organization Theory, Springer, vol. 7(3), pages 207-232, October.
    2. Anne Gielen & Marcel Kerkhofs & Jan Ours, 2010. "How performance related pay affects productivity and employment," Journal of Population Economics, Springer;European Society for Population Economics, vol. 23(1), pages 291-301, January.
    3. Michael J. Seiler & David M. Harrison & Pim Van Vliet & Kit Ching Yeung, 2005. "Return Characteristics of State‐Owned and Non‐State‐Owned Chinese A Shares," The Financial Review, Eastern Finance Association, vol. 40(4), pages 533-548, November.
    4. Booth, Alison L & Frank, Jeff, 1999. "Earnings, Productivity, and Performance-Related Pay," Journal of Labor Economics, University of Chicago Press, vol. 17(3), pages 447-463, July.
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    Cited by:

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    3. Sadia Afrin & Muhammad Asyraf Bin Mohd Kassim & Mohd Faizal Yusof & Md. Sharif Hassan & Md. Aminul Islam & Khairun Nisa Binti Khairuddin, 2023. "Investigating the Determinants of Employee Performance for Sustainability: A Study on the Bangladesh Insurance Industry," Sustainability, MDPI, vol. 15(7), pages 1-16, March.
    4. Migheli, Matteo, 2019. "Competing for promotion: Are “THE BEST” always the best?," Research in Economics, Elsevier, vol. 73(2), pages 149-161.
    5. Abdallah Mohammad Ashour & Zuraida Hassan & Jamal Mohammed Esmail Alekam, 2018. "A Conceptual Framework for Upgrading Safety Performance by Influence Safety Training, Management Commitment to Safety and Work Environment: Jordanian Hospitals," International Journal of Business and Social Research, LAR Center Press, vol. 8(7), pages 25-35, July.
    6. Abdallah Ashour & Zuraida Hassan, 2019. "Nursing Involvement and Safety Participation among Secondary Health Care Nurses in Jordan: The Mediating Effect of Work Environment," International Review of Management and Marketing, Econjournals, vol. 9(5), pages 104-113.
    7. Erick P. Massami & Malima M. Manyasi, 2021. "Analysis of determinants of work performance for seafarers based on fuzzy Electre model," Journal of Shipping and Trade, Springer, vol. 6(1), pages 1-20, December.

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