EXECUTIVE SUMMARY Today, in the process of innovation and development, human resources are recognized as the most important factor, decisive factor to success, failure, prestige, status, ability to develop sustainably of the organization. Therefore, all countries place people at the center of development and formulate policies and strategies for human development to serve the needs of the present and the future. The Viet Nam Bank for social policies (VBSP) has officially started its operations since March 11th, 2003, based upon the, re-organization of the Vietnam Bank for the Poor and separation, from Vietnam Bank for, Agriculture & Rural Development (VBARD) for the, purpose of separating the preferential credit from the commercial credit in commercial banks. VBSP acts as a non-profit credit institution with a compulsory reserve ratio of 0% and its solvency is, guaranteed by the Government. It is, exempted, from deposit insurance, taxes. VBSP is a State-owned credit, institution that is currently in charge of providing policy credit to the poor and, other policy beneficiaries. VBSP implements such basic operations of a bank as: capital mobilization (from international and domestic individuals and organizations; receiving capitals from the, government and People’s Committee, etc.); extending loans to the poor and other policy beneficiaries and payment services. Implementing the information technology development strategy plan in VBSP''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''s Strategic Development Plan for the, period of 2011-2020, applying modern technology as per the operation of VBSP to improve labor productivity, increase the efficiency of professional handling in the, VBSP. ITC has successfully implemented the Upgrading and Informatics modernization project and continues to invest in many IT infrastructure, projects to develop, software and apply more deeply information technology into business activities towards a professional and modern VBSP. In the context of limited resources (financial and human), ITC is determined to play a key strategic role in the next stage of VBSP. What is required to do ITC''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''s operation to achieve the highest efficiency. How to improve employee motivation at ITC. Therefore, the author would like to choose the topic “Employee motivation at the Information technology center of Viet Nam bank for social policies”. The objectives of the research are to: (1) Find and choose the most suitable the theoretical background related to employee motivation; (2) Analyze the current employee motivation at the Information technology center of VBSP. Assess the strengths and weaknesses of employee motivation at this center; (3) Propose recommendations to enhance employee motivation at the Information technology center of VBSP. The researcher used secondary data and primary data to implement the research. Primary data were collected by indepth interviews with 3 managers of ITC-VBSP and survey (70 employees who was working in ITC-VBSP). The reseacher used qualitative method to analyze secondary data collected. For primary data, the researcher used quantitative method over some statistical techniques consist of: Cronbach’s Alpha, EFA, regression analysis and descriptive analysis by means and standard diviation. The survey results show that Pay has the strongest impact on employee motivation at ITC, then Recognition, Relation with other and Responsibility repectively. The ITC has some achievements in employee emotioning, such as Salary temporarily ensures the living standard for employees to help them feel secure in their work; The result performance of the tasks are assessed at the end of the month; have very close relationship within their department… The researcher also gave out some solution to improve employee motivation at ITC such as enhancing and supplementing the salary payment mechanism; Focusing to assign responsibility to Employees which are allowed to do jobs that are suitable for their forte ability; Renovate the rewarding work through periodic increase in commendation every month or quarter so that the reward is timely… Due to limited time and knowledge, the researcher still can not takes a deeper analyze of employee motivation at ITC-VBSP. However, the thesis can be used as a reference and base for more intensive study on employee motivation in particular in branch or district transaction offficer in VBSP system.
E MBA17 A NATIONAL ECONOMICS UNIVERSITY NEU BUSINESS SCHOOL -o0o - NGUYE N VIET BAC NGUYEN VIET BAC HANOI - 2020 EMPLOYEE MOTIVATION AT THE INFORMATION TECHNOLOGY CENTER OF VIET NAM BANK FOR SOCIAL POLICIES MASTER OF BUSINESS ADMINISTRATION THESIS HANOI – 2020 NATIONAL ECONOMICS UNIVERSITY NEU BUSINESS SCHOOL -o0o - NGUYEN VIET BAC EMPLOYEE MOTIVATION AT THE INFORMATION TECHNOLOGY CENTER OF VIET NAM BANK FOR SOCIAL POLICIES MASTER OF BUSINESS ADMINISTRATION THESIS SUPERVISOR: PH.D TRAN THI MINH HUONG HANOI – 2020 ACKNOWLEGMENT First and foremost, I am deeply grateful to the Business School, National Economics University (BSNEU) with all the members, lecturers and assistants for the knowledge and experience that has been shared through many lectures, discussions and exams during EMBA program Next, I would like to express my sincere gratitude to my supervisor, Ph D Tran Thi Minh Huong for your patience, motivation, enthusiasm, and immense knowledge, guidance helped me in all the time of research and writing of this thesis I would like to sincerely thank the Board of Directors and co-workers at Information Technology Center – The Viet Nam bank for social policies for their supporting in collecting information as well as data related to the research topic and create the best conditions for me to complete this graduation thesis Last but not the least, I also thanks to my family, without their encouragement, support and understanding, it would be impossible for me to finish this work Although I have made many efforts to complete the thesis with all my enthusiasm and abilities, but can not avoid the, imperfections, I look forward to receiving valuable contributions from supervisor, teachers, lectures of BSNEU and all member of ITC-VBSP Hanoi, October 2020 Viet Bac Nguyen TABLE OF CONTENTS ACKNOWLEGMENT ABBREVIATIONS LIST OF FIGURES LIST OF TABLES EXECUTIVE SUMMARY - CHAPTER 1: INTRODUCTION -3 1.1 Rationale 1.2 Research objectives 1.3 Research questions - 1.4 Research methodology - 1.4.1 Research process 1.4.2 Data collection method -5 1.4.3 Data analysis - 1.5 Research Scope - 1.6 Research Structure -6 CHAPTER 2: THEORETICAL BACKGROUND OF EMPLOYEE MOTIVATION IN THE ORGANIZATIONS -8 2.1 Definitions on motivation and employee motivation 2.1.1 Definitions of motivation -8 2.1.2 Employee motivation definition -8 2.2 Motivation theories - 2.2.1 Maslow’s Hierarchy of Needs -9 2.2.2 Victor Vroom’s Expectancy Theory 11 2.2.3 The Two-Factor Theory (Herzberg) -15 2.3 Proposed research model applied in the thesis 16 CHAPTER 3: ANALYSIS OF THE CURRENT EMPLOYEE MOTIVATION - 21 3.1 Overview of ITC and Viet Nam Bank for social policies. -21 3.1.1 Foundation and development of Information Technology Center and VBSP -21 3.1.2 Organizational structure of Information Technology Center. -26 3.1.3 Performance result in 2019 -27 3.1.4 Human resources at Information Technology Center. -29 3.2 Data analysis - 34 3.2.1 Reliability of measurement scales (Cronbach’s Alpha) -34 3.2.2 Exploratory Factor Analysis 37 3.2.3 Regression Analysis and Hypothesis Testing -40 3.3 Analyzing employee motivation based on Herzberg theory at Information Technology Center - 44 3.3.1 Pay - 44 3.3.2 Recognition - 45 3.3.3 Relation with others -46 3.3.4 Responsibility 47 3.4 Assessment on employee motivation of Information Technology Center 48 3.4.1 Achievements - 48 3.4.2 Shortcomings - 49 3.4.3 Causes of shortcomings -50 CHAPTER 4: SOLUTIONS TO IMPROVE EMPLOYEE MOTIVATION AT INFORMATION TECHNOLOGY CENTER -52 4.1 Business orientation and executive resolution agenda for 2020 and up to 2025 -52 4.2 Solutions to improve employee motivation in Information Technology Center -56 CONCLUSION - 59 REFERENCES APPENDIX Appendix EMPLOYEES MOTIVATION QUESTIONAIRE Appendix 2: INTERVIEW QUESTION FOR MANAGER Appendix 3: SURVEY RESULTS ABBREVIATIONS BOD HRM HO IT ITC SMS SPSS VBSP Board of Directors Human Resource Management Head Office Information Technology Information Technology Center Short Message Service Statistical Product and Services Solutions Viet Nam Bank for Social Policies LIST OF FIGURES Figure 1.1 Research process. Figure 2.1 Maslow’s Hierarchy of needs 11 Figure 2.2 Victor Vroom’s Expectancy Theory -12 Figure 2.3 Two-Factor Theory 17 Figure 2.4 Model applied in the thesis -18 Figure 3.1 The Organization Structure of VBSP -27 Figure 3.2 The Organization structure of Information Technology Center 30 Figure 3.3 Gender of employees -33 Figure 3.4 Year of working of employees -33 Figure 3.5 Educational qualification of employees 34 LIST OF TABLES Table 2.1 Employees motivation dimention 21 Table 3.1: Cronbach’s alpha summary -38 Table 3.2: Cronbach’s alpha summary after removed RO3 (Relation with others)- 39 Table 3.3: Cronbach’s alpha summary after removed QS1 (Quality of supervision) 39 Table 3.4 Reliability test of factor “Employee Motivation” -39 Table 3.5 KMO and Bartlett's Test -40 Table 3.6 Total variance explained -40 Table 3.7: Rotated Component Matrix -41 Table 3.8: KMO and Bartlett's Test for Dependent variable -43 Table 3.9 Model Summary 43 Table 3.10 ANOVA 44 Table 3.11 Coefficients 44 Table 3.12 Model Summary 45 Table 3.13 ANOVA 45 Table 3.14 Coefficient Correlations 46 Table 3.15 Coefficients 46 Table 3.16 Assessment towards Pay factor 47 Table 3.17 The respondents towards Pay factor 48 Table 3.18 Assessment towards Recognition factor 49 Table 3.19 Assessment towards Relation with others factor 50 Table 3.20 Assessment towards Responsibility factor -50 Table 3.21 Assessment towards Employee motivation factor -51 EXECUTIVE SUMMARY Today, in the process of innovation and development, human resources are recognized as the most important factor, decisive factor to success, failure, prestige, status, ability to develop sustainably of the organization Therefore, all countries place people at the center of development and formulate policies and strategies for human development to serve the needs of the present and the future The Viet Nam Bank for social policies (VBSP) has officially started its operations since March 11th, 2003, based upon the, re-organization of the Vietnam Bank for the Poor and separation, from Vietnam Bank for, Agriculture & Rural Development (VBARD) for the, purpose of separating the preferential credit from the commercial credit in commercial banks VBSP acts as a non-profit credit institution with a compulsory reserve ratio of 0% and its solvency is, guaranteed by the Government It is, exempted, from deposit insurance, taxes VBSP is a Stateowned credit, institution that is currently in charge of providing policy credit to the poor and, other policy beneficiaries VBSP implements such basic operations of a bank as: capital mobilization (from international and domestic individuals and organizations; receiving capitals from the, government and People’s Committee, etc.); extending loans to the poor and other policy beneficiaries and payment services Implementing the information technology development strategy plan in VBSP's Strategic Development Plan for the, period of 2011-2020, applying modern technology as per the operation of VBSP to improve labor productivity, increase the efficiency of professional handling in the, VBSP ITC has successfully implemented the Upgrading and Informatics modernization project and continues to invest in many IT infrastructure, projects to develop, software and apply more deeply information technology into business activities towards a professional and modern VBSP In the context of limited resources (financial and human), ITC is determined productivity One cannot everything on his own Responsibilities must be divided among team members to accomplish the assigned tasks within the stipulated time frame If employee alway connecting with their colleague via a good working platform, then he will receive many more supporting with his assignments making employee work easier At the same time, strengthen training through rotation between departments to understand the tasks clearly, thereby sharing and cooperating better in performing the tasks Increase extracurricular activities to make connections 62 CONCLUSION Today, motivation, is a very important, not only helping the employees themselves but also an important for employers, agencies and organizations in implementing the set, goals For businesses, the motivation, for employees to work well, engatement and dedicate themselves is a huge decisive factor in the existence and development of enterprises No company can, existing for a long time and develop without the contribution of effort and wisdom of dedicated people Motivation is creating the connection between labor with the organization, attracting and retaining good employees, reducing the rate of resignation; increase the level of satisfaction, trust, attachment and dedication of employees in the enterprise Therefore, businesses can save, time, recruitment costs and train new employees To create motivation in the enterprise to be used effectively will optimize the ability of employees, employees, and improve the efficiency of production and business of enterprises, which is the, foundation to increase sales and, improve profits Motivation helps staff constantly strive to improve themselves When there is motivation staff makes more effort to work, learn, summarize work experience, improve knowledge and qualifications When employees are motivated to work, they will create the ability to improve labor productivity and work efficiency Motivated staff and employees will work more passionately, try to explore, creatively, research to improve machines and equipment to bring better labor efficiency, improve life, both in material and spirit for staff Since then, it also helps staff, employees engagement together more closely, achieve the goals of the organization, increase the reputation of the business In chapters and 2, the thesis explored the fundamental theoretical basis of motivation and work efficiency: motivational theories, among which, Herzberg's theory of motivation was selected as the basis for analyzing the factors affecting staff motivation at ITC-VBSP In order to deploy this thesis, survey questionnaires were delivered to 70 current IT staff at ITC-VBSP (70 valid responses were used for the analysis) 63 In chapter 3, the thesis has executed real research and analysis about the work motivation status of the IT staff in ITC-VBSP highlighting two groups of factors: hygiene factors and motivation factors Since then, the author has pointed out the achievements, shortcomings, the reasons of these shortcomings On the basis of the limitations and reasons indicated, in Chapter 4, the author, based on the development orientation of ITC-VBSP, proposed measures and a number of solutions to improve employees’s motivation at ITC such as building the Coefficient of work complexity, improving income distribution mechanism and employee motivation mechanism to contribute to increase employee productivity, leading to increase in overall labor productivity of ITC-VBSP; Focusing to assign responsibility to Employees; Deploying multi-departmental engagement work management platforms… With the help of teachers, colleagues, and his own personal efforts, the researcher has achieved this paper’s objectives However, due to the limitation in time, shortcoming professional skills, professional experience and deep understanding of Human Resources Management, identifiable limitations are unavoidable for this work For the best evaluation, the researcher would like to receive any comments and assessments from the supervisor, lectures of BSNEU as well as feedback from colleagues and managers of ITC-VBSP to supplement and complete this thesis 64 REFERENCES A H Maslow (1943), A Theory of Human Motivation, Psychological Review, 50, 370-396 McShane,VonGlino.(2002) Organizational Behaviour, Second Edition, London: McGraw-Hill Pink,D.(2009) Drive: The Surprising Truth About What Motivates Us, Riverhead Books Armstrong,M (2001) A Handbook of Human resource Management Practice, (8th Edition), London: Kogan Page Stephen J Skripak (2016) Fundamentals of Business, Virginia Tech Blacksburg, Virginia Herzberg F., Mausner B., Synderman B (1959) The motivation to work NY: Wiley Kanfer, R (1990) Motivation theory and industrial and organizational psychology In M D Dunnette & L M Hough (Eds.), Handbook of industrial and organizational psychology (Vol 1, pp 75–170) Palo Alto, CA: Consulting Psychologists Press Gawel, Joseph E (1996) Herzberg's Theory of Motivation and Maslow's Hierarchy of Needs, Practical Assessment, Research, and Evaluation: Vol , Article 11 Hoàng Trọng-Chu Nguyễn Mộng Ngọc (2008), Phân tích liệu nghiên cứu với SPSS, Nhà xuất Hồng Đức 10 Nguyễn Đình Thọ (2013), Giáo trình Phương pháp nghiên cứu khoa học kinh doanh, Nhà xuất tài APPENDIX Appendix EMPLOYEES MOTIVATION QUESTIONAIRE First of all, I would like to thank for your cooperation to complete this questionare Your information is very useful for me to understand about ITC-VBSP current staff motivation I commit that this questionnaire is only used for the objective research not for any beneficial purpose All these answers are not right or wrong They only express your ideas, your feelings You are not request to provide the name or other personal information You can skip any question if you not feel comfortable to answer General information: Age: Education: Vacation School College University MA, MBA, Ph D Years of working: < year 1-3 years 3-5 years 5.10 years >10 years What concerns you most when working at ITC-VBSP? Please number from to 5, ranking from 1= the least importance to 5= the most importance Income Stability Working condition and environment Promotion and development opportunities Position and reputation Question correspond with satisfaction level You can put the signal “” at the level you chose to answer the question Each level will express your ideas as bellows: No Question Level Strongly Motivation Disagre e I Recognition I feel appreciated when RC1 I achieve or complete a task My manager RC2 always thanks me for a job well done I receive adequate RC3 recognition for doing II my job well Achievement I am proud to work in AC1 this organization because it recognizes my achievements I feel satisfied with my AC2 job because it gives me feeling of accomplishment I feel I have contributed AC3 towards my company III in a positive manner Responsibility I am often assigned RE1 important RE2 RE3 responsibilities I am empowered enough to my job I satisfied with the responsibilities I am Disagree Uncertai n Agree Strongly Agree IV PO1 charge for Promotion Opportunities I am satisfied with my opportunity to get a better job level in this company My job allows me to PO2 learn new skills for carreer advancement In general, promotions PO3 V OP1 are handled fairly at my company Opportunities for personal growth I am proud to work in ITC-VBSP because I feel I have grown as a person My job allows me to OP2 grow and develop as a person My job allows me to OP3 I improve my experience, skills and performance Hygiene Pay I am encouraged to PA1 work harder because of PA2 my salary I believe my salary is fair The pay I receive is PA3 PA4 II JS1 JS2 JS3 III CP1 appropriate for the work I I am satisfied with my pay Job security I believe safe working at my workplace I believe my job is secure My workplace located in where an I is area feel comfortable Company Policies The attitude of the administration is very accommodative in my company I am proud to work for this company because CP2 the company policy is favorable workers I CP3 for its completely understand the mission of my company I excited about the CP4 training and orientation CP5 program when I started I understand the procedures, policies, and responsibilities that IV RO1 RO2 RO3 V QS1 are part of my job Relation with others It is easy to get along with my colleagues My colleagues are helpful and friendly Colleagues are important to me Quality of supervision I feel my performance has improved because of the support from my supervisor I feel satisfied at work QS2 because of relationship with my supervisors My supervisors QS3 VI WC1 my are strong and trustworthy leaders Physical working conditions I feel satisfied because of the comfort I am provided at work I am proud to work for WC2 my company because of the pleasant working conditions The workplaces WC3 equipment are modern and well-maintained Employee Motivation I am happy and pride EM1 EM2 EM3 because I am member of ITC-VBSP? I am always enthusiastic at work I will continue to work at ITC-VBSP THANH YOU FOR COMPLETING THIS QUESTIONNAIRE Appendix 2: INTERVIEW QUESTION FOR MANAGER Among these factors, what the factors are importance for your employees motivation? - Motivation factors (Recognition, Achievement, Responsibility, Promotion Opportunities, Opportunities for personal growth) - Hygiene factors (Pay, Job security, Company Policies, Relation with others, Quality of supervision, Physical working conditions) Can you estimate about your staff satisfy level? Do you think that the performancr evaluation in your company is fair? What you think about the salary increasing policy? Do you think that the relation with your staff is good? Do you support and throw them a line when they need? What are the factors that your staffs dissatisfy? What you to enhance the staff motivation at your company? The employees should be offered health care plans benefits for the family members What you think?: the work itself should be meaningful interesting and challenging for the employee 10 Do you usually create work that is rewarding and that matches employees's skills and abilities? Thank you for your cooperation Appendix 3: SURVEY RESULTS Survey results No Question Strongly Motivation I RC1 RC2 Disagree Recognition I feel appreciated when I achieve or complete a task My manager always thanks me for a job well done I receive adequate RC3 recognition for doing my II job well Achievement I am proud to work in this AC1 organization because recognizes it my Disagree Level Uncertai n Agree Strongly Agree 0 15 35 20 0 14 19 37 0 14 29 27 0 18 22 30 0 15 24 31 0 21 27 22 0 18 26 26 0 10 29 31 achievements I feel satisfied with my job AC2 because it gives me feeling of accomplishment I feel I have contributed AC3 towards my company in a III positive manner Responsibility I am often RE1 RE2 assigned important responsibilities I am empowered enough to my job I satisfied with the RE3 responsibilities I am charge 0 13 33 24 IV PO1 for Promotion Opportunities I am satisfied with my 0 17 26 27 opportunity to get a better job level in this company My job allows me to learn PO2 new skills for carreer 0 12 24 34 0 16 23 31 0 17 28 25 0 14 25 31 0 16 24 30 advancement In general, promotions are PO3 V OP1 OP2 OP3 I handled fairly at my company Opportunities for personal growth I am proud to work in ITCVBSP because I feel I have grown as a person My job allows me to grow and develop as a person My job allows me to improve my experience, skills and performance Hygiene Pay I am encouraged to work PA1 harder my 0 16 33 21 PA2 salary I believe my salary is fair The pay I receive is 0 16 26 28 PA3 appropriate for the work I 0 15 22 33 PA4 II I am satisfied with my pay Job security I believe safe working at 0 18 28 24 0 27 35 0 0 15 14 21 25 34 31 JS1 JS2 JS3 because of my workplace I believe my job is secure My workplace is located in an area where I feel III CP1 comfortable Company Policies The attitude of administration is accommodative in the very my 0 11 27 32 0 15 23 32 0 11 30 29 0 12 32 26 0 18 24 28 0 11 32 27 0 12 30 28 0 14 32 24 0 14 33 23 0 20 20 30 company I am proud to work for this CP2 CP3 CP4 company because the company policy is favorable for its workers I completely understand the mission of my company I excited about the training and orientation program when I started I understand CP5 IV RO1 RO2 RO3 the procedures, policies, and responsibilities that are part of my job Relation with others It is easy to get along with my colleagues My colleagues are helpful and friendly Colleagues are important to V me Quality of supervision I feel my performance has QS1 improved because of the support from my supervisor I feel satisfied at work QS2 because of my relationship with my supervisors QS3 VI WC1 My supervisors are strong and trustworthy leaders Physical working 0 10 27 33 0 35 22 0 26 19 23 0 28 16 22 0 44 18 0 37 25 0 35 28 conditions I feel satisfied because of the comfort I am provided at work I am proud to work for my WC2 company because of the pleasant working conditions The workplaces equipment WC3 are modern and well- maintained Employee Motivation I am happy and pride EM1 EM2 EM3 because I am member of ITC-VBSP? I am always enthusiastic at work I will continue to work at ITC-VBSP ... ? ?Employee motivation at the Information technology center of Viet Nam bank for social policies? ?? Research objectives Synthesize the theoretical background related to employee motivation; Analyze the. .. employee motivation in the organization Chapter 3: Analysis of employee motivation at the Information Technology Center Chapter 4: Solutions to improve employee motivation at Information Technology Center. .. co-workers at Information Technology Center – The Viet Nam bank for social policies for their supporting in collecting information as well as data related to the research topic and create the best