ESSAY subject management LABOR MOTIVATION ENHANCEMENT AT THAI TUAN JOINT STOCK COMPANY

FOREIGN TRADE UNIVERSITY HO CHI MINH CITY CAMPUS -*** ESSAY Subject: Management LABOR MOTIVATION ENHANCEMENT AT THAI TUAN JOINT STOCK COMPANY Authors: Nguyen Ngoc Quynh Anh - 1913316009 Dang Thu Hang - 1913316054 Nguyen Huynh Phuong Nga - 1913345508 Dinh Hanh Nguyen – 1913345510 Nguyen Cuc Quy - 1913316138 Class: K58CLC2 Ho Chi Minh City, October 2020 TABLE OF CONTENTS TABLE OF CONTENTS .1 TABLE OF FIGURES TABLE OF TABLES .3 INTRODUCTION Chapter OVERVIEW OF THE THEORY OF LABOR MOTIVATION IN ENTERPRISES 1.1 Definition of motivation 1.2 Theories about work motivation .7 1.2.1 Maslow’s Hierarchy of Needs 1.2.1.1 Content of Maslow’s Hierarchy of Needs 1.2.1.2 Application of Maslow’s Hierarchy of Needs in motivation 1.2.2 McGregor’s Theory X and Y 1.2.2.1 Content of McGregor's Theory X and Y 1.2.2.2 Application of McGregor's Theory X and Y in motivation 10 It is not sufficient to establish strict rules and close monitoring The lazy or non-motivated staff should be given equal tasks as that of Theory Y Place them in the same environment (office, room, workspace, etc.), the Theory X person is likely to observe how the Theory Y person is working 10 1.2.3 Herzberg’s Two-Factor Theory 10 1.2.3.1 Content of Herzberg’s Two-Factor Theory .10 1.2.3.2 Application of Herzberg’s Two-Factor Theory in motivation 11 Chapter ANALYSIS OF LABOR MOTIVATION ENHANCEMENT AT THAI TUAN JOINT STOCK COMPANY 13 2.1 An overview of company 13 2.1.1 Formation and development progress 13 2.1.2 Company mission 14 2.1.3 Company results 14 2.2 Company labor overview 15 2.2.1 Organizational human resource structure 15 2.2.2 Labor force characteristics: 16 2.3 Analysis of employees’ motivation in Thai Tuan Corporation 18 2.3.1 Motivating employees through monetary incentives 18 2.3.1.1 Basic salary 18 2.3.1.2 Bonus and other welfare policies 19 2.3.2 Motivating employees through non-monetary incentives 22 2.3.2.1 Division of labor and improvement of working conditions: 22 2.3.2.2 Human resource training 23 2.3.2.3 Business environment and cultures: .24 2.3.3 General evaluation: .24 2.3.3.1 The advantages .25 2.3.3.2 The limitations 25 Chapter LABOR MOTIVATION ENHANCEMENT SOLUTIONS AT THAI TUAN JOINT STOCK COMPANY 26 3.1 Labor motivation directions at Thai Tuan Joint Stock Company 26 3.1.1 Development directions of the company 26 3.1.2 Labor motivation directions at Thai Tuan Joint Stock Company .26 3.2 Solutions to motivate Thai Tuan Corporation’s employees 27 3.2.1 Determine the needs of employees in the Company 27 3.2.2 Meet employees' monetary needs 28 3.2.3 Meet the non-monetary needs of employees 30 3.2.4 Applying Management by Objectives (MBO) 31 CONCLUSION 33 REFERENCES 34 APPENDIX 35 TABLE OF FIGURES Figure 1.1 Process of motivation Figure 1.2 Maslow’s Hierarchy of Needs .8 Figure 1.3 McGregor’s Theory X and Y Figure 1.4 Herzberg’s Two-Factor Theory 10 Figure 2.1 Thai Tuan’s board of director structure 16 Figure 2.2 Percentage of labor based on gender, 2019 16 Figure 2.3 Labor age distribution 2019 17 Figure 2.4 Labor academic level in 2019 17 Figure 3.1 MBO Process 32 TABLE OF TABLES Table 2.1 Salary Scale in 2020 18 Table 2.2 Average Salary in the period 2018 - 2020 .19 Table 2.3 Monthly appraisal criteria for Thai Tuan’s grassroots employees in 2019 20 Table 2.4 Monthly Bonus Rate associated with Employees’ Classification 20 Table 2.5 December Bonus Rate associated with Employees’ Year Classification 21 Table 2.6 Fridge allowance in 2020 22 Table 2.7 Labor division by trained profession in HCM Headquarter 12/2019 22 Table 2.8 Human resource training results the period of 2018-2019 24 Table 3.1 Recommended Bonus Amount for Overcompleted Employees 29 INTRODUCTION The reason for implementing the topic In the modern economy, many businesses realize their company’s values in the human resources they have, not in production machines or high buildings Therefore, compensation is one of the important functions of Human Resource management, because an enterprise with a reasonable remuneration policy will bring great effects in promoting, using and developing human resources effectively, contributing to the success of the business On the contrary, when employees are not motivated to work or lose motivation, they will have no responsibility at work, ineffectively work even cheating at work, causing the business not to achieve its set goals Work motivation is an essential tool to improve labor productivity When employees satisfy their most essential needs, they will have the desire to satisfy more other needs such as asserting themselves, being respected, developed,… Creating good motivation will reduce operating costs and increase profits for businesses Therefore, companies must pay attention to Human Resource management and increase the work motivation for employees Thai Tuan Corporation has made many efforts in motivating employees However, there are still many shortcomings in motivating the company's employees and there is no adequate policy on using, motivating and exploiting the full potential of employees From the above reasons, our group chose the topic “Labor motivation enhancement at Thai Tuan Fashion Group” to make an essay for its Management subject, with the desire that through researching, it can come up with specific solutions to improve motivation and solve shortcomings’ problems of employees in the Company Objectives of the research Proposing solutions and recommendations aimed at creating a driving force to develop production and improve labor efficiency at Thai Tuan Corporation Specific goals are:  Outline of theoretical basis on labor motivation in enterprises  Analysis of the current situation and labor motivation policies at Thai Tuan Corporation  Proposing some solutions to improve motivational policies for employees at Thai Tuan Corporation Subject and scope of the study 3.1 Subject of the study Focus on researching the working motivation of employees at Thai Tuan Corporation in period of 2019 - 2020 3.2 Scope of the study  Place: Thai Tuan Fashion Group Corporation – 1/14B, Nguyen Van Qua Street, Dong Hung Thuan Ward, District 12, Ho Chi Minh City  Time: 10/10/2020 – 20/10/2020  Content: researching the working motivation of employees at Thai Tuan Corporation Research Methodology With the purpose of achieving objectives of the study initially, the applied method includes learning, analyzing and synthesizing evaluation of employee motivation policy at Thai Tuan Corporation Regarding data collection, data sources for the topic are collected by source:  Primary information: academic documents as well as some data from books, newspapers, websites, …  Secondary information: documents, reports of the Human Resources department and other departments on Human Resource management policies Topic structure Besides, the introduction, conclusion, appendices and references, research topics include the following chapters: Chapter 1: OVERVIEW OF THE THEORY OF LABOR MOTIVATION IN ENTERPRISES Chapter 2: ANALYSIS OF LABOR MOTIVATION ENHANCEMENT AT THAI TUAN JOINT STOCK COMPANY Chapter 3: LABOR MOTIVATION ENHANCEMENT SOLUTIONS AT THAI TUAN JOINT STOCK COMPANY Due to limitations in knowledge and references, the essay may exist some inevitable shortcomings Therefore, we look forward to the teachers' feedback to make the article more complete Chapter OVERVIEW OF THE THEORY OF LABOR MOTIVATION IN ENTERPRISES 1.1 Definition of motivation Motivation is the process by which a person’s efforts are energized, directed, and sustained toward attaining a goal This definition has three key elements: energy, direction, and persistence  Energy: a measure of intensity, drive, and vigor The quality of the effort must be considered as well as its intensity  Direction: effort directed toward and consistent with organizational goals  Persistence: employees persist in putting forth effort to achieve those goals Figure 1.1 Process of motivation How employees are motivated depends on several factors, including their age, socioeconomic and academic level, national culture, and the availability of work elsewhere 1.2 Theories about work motivation 1.2.1 Maslow’s Hierarchy of Needs 1.2.1.1 Content of Maslow’s Hierarchy of Needs Maslow's needs theory was widely recognized during the 1960s and 1970s, especially among practicing managers, probably because it was intuitively logical and easy to understand Maslow’s hierarchy of needs is a theory of human motivation that suggests people are driven to engage in behaviors by a hierarchy of increasingly complex needs The hierarchy is usually depicted as a pyramid, with basic needs making up the base and complex needs found at the peak Figure 1.2 Maslow’s Hierarchy of Needs  Physiological needs: A person’s needs for food, drink, shelter, sex, and other physical requirements  Safety needs: A person’s needs for security and protection from physical and emotional harm as well as assurance that physical needs will continue to be met  Social needs: A person’s needs for affection, belongingness, acceptance, and friendship  Esteem needs: A person’s needs for internal esteem factors such as selfrespect, autonomy, and achievement and external esteem factors such as status, recognition, and attention  Self-actualization needs: A person’s needs for growth, achieving one’s potential, and self-fulfillment; the drive to become what one is capable of becoming 22 80