Improving employee motivation at NTT DATA vietnam

NATIONAL ECONOMICS UNIVERSITY BUSINESS SCHOOL DO NHU VY IMPROVING EMPLOYEE MOTIVATION AT NTT DATA VIETNAM MASTER OF BUSINESS ADMINISTRATION THESIS HANOI - 2018 NATIONAL ECONOMICS UNIVERSITY BUSINESS SCHOOL DO NHU VY IMPROVING EMPLOYEE MOTIVATION AT NTT DATA VIETNAM MASTER OF BUSINESS ADMINISTRATION THESIS SUPERVISOR: ASSOC PROF DR NGUYEN VAN THANG HANOI - 2018 ACKNOWLEDGEMENT Firstly, I would like to thank Assoc Prof Dr Nguyen Van Thang - Director of Asia - Pacific Institute of management at Vietnam’s National Economics University He is seasoned, international experienced researcher in business and management, the advisor of this thesis He instructed me how to revise important points briefly, concisely, help enhancing the quality of research I would like to express my gratitude to Assoc Prof Dr Le Lan Huong - Director of Business school at Vietnam’s National Economics University She is the manager of my school where I study MBA course, also is my enthusiastic instructor in subject “Business research methodology” She equips me with a theoretical foundation, helped me creating a solid knowledge base in business researching In research proposal reviewing process, I received many constructive comments, valued recommendations, suggestions from research-proposal-reviewing sub- committee: Assoc Prof Dr Dao Thi Thanh Lam (also is my instructor in subject “Managing Human Resources”), Assoc Prof Dr Vu Thanh Hung (also my instructor in subject “Business Strategic management”), Assoc Prof Dr Bui Duc Tuan (also Deputy Director of Business school at Vietnam’s National Economics University) I would like to thank many other teachers, officers at Vietnam’s National Economics University who I cannot mention, list out fully I thank to NTT DATA Vietnam Limited company’s officers, employees because they facilitate me about time, suitable workload, help me in work - life - study balance in the thesis research conduction time Of course, I would like to thank my family members: parents, brothers, and sisters who supported me in the time of thesis writing, also in other aspects of my life They facilitate me good conditions support my working, studying, and researching Hanoi, December 2018 Do Nhu Vy TABLE OF CONTENTS ABBREVIATIONS LIST OF TABLES LIST OF FIGURES GLOSSARY EXECUTIVE SUMMARY CHAPTER I INTRODUCTION 1.1 Rationale of the research 1.2 Research objectives 10 1.3 Research questions 11 1.4 Research methodology 11 1.4.1 Research process 11 1.4.2 Data collection 13 1.4.3 Data analysis 13 1.5 Scope of research 13 1.6 Thesis structure 14 CHAPTER II THEORETICAL BACKGROUND ON EMPLOYEE MOTIVATION 15 2.1 Term “motivation” 15 2.2 Literature review 15 2.3 Theoretical framework on analyzing employee motivation 20 2.4 Attributes for employee motivation analysis 21 CHAPTER III RESEARCH DESIGN 24 3.1 Overview of research design 24 3.2 Research secondary data at desk 25 3.3 Qualitative research 25 3.4 Quantitative research 26 3.4.1 Questionnaire designing 26 3.4.2 Sampling 27 3.4.3 Data entry 28 3.5 Suggestion for executives for improving employee motivation 28 CHAPTER IV RESULT AND DISCUSSION 29 4.1 Secondary data collection 29 4.2 Overview information about NTT DATA Vietnam 29 4.3 Managing human resources at NTT DATA Vietnam 30 4.3.1 Hierarchical structure 30 4.3.2 Job titles 35 4.3.3 Career paths 36 4.3.4 Performance evaluation and salary 41 4.3.5 Reward 43 4.3.6 Training 43 4.4 In-depth interview result 43 4.5 Current situation of employee motivation 48 4.6 Survey analyzing 48 4.6.1 Coding observed variables 48 4.6.2 Evaluate scale measurement reliability 51 4.6.3 Result of Descriptive statistics analysis 53 CHAPTER V CONCLUSION 66 5.1 Contribution of theoretical framework 66 5.2 Suggestion for improving employee motivation at NTT DATA Vietnam 66 5.2.1 Pay attention to the factors that affect employee motivation 66 5.2.2 Re-examine result after improving factors 69 5.3 Limitation of the research 69 REFERENCE 69 APPENDICES 73 APPENDIX I IN-DEPTH INTERVIEW 73 APPENDIX II QUESTIONAIRE 75 APPENDIX III SUPPLEMENT STEPS IN DATA ANALYSIS 79 ABBREVIATIONS APAC Asia - Pacific CEO Chief Executive Officer EIT Enterprise Information Technology FDI Foreign Direct Investment IDE Integrated(/Interactive) Development Environment JICA Japan International Cooperation Agency MBA Master of Business Administration N/A Not answer NDVN NTT DATA Vietnam HR Human resources PIF Public Information Infrastructure USD United State Dollar SDK Software Development Kit LIST OF TABLES Table Four referent comparisons in Adam's Equity theory 18 Table Human resources are organized in horizontal structure 34 Table Job titles 36 Table Fiscal year, Luna New Year in Vietnam, and Evaluation session 42 Table Employee performance ranking 42 Table Types of rewarding 43 Table Major result of opinion about motivation from interviewees 45 Table Major result of opinion about factor impact to employee motivation in ordering 47 Table Scale reliability analysis of observed variables belong to independence variable “Corporate culture” 51 Table 10 Cronbach's alpha of independency variable "Stability" 52 Table 11 Scale reliability analysis of observed variables belong to independence variable “Stability” 52 Table 12 Scale reliability analysis of independence variables 53 Table 13 Scale reliability analysis of dependence variable 53 Table 14 Descriptive statistics analysis for independence variables 55 Table 15 Ordering from best to worse in factors impact to employee motivation 56 Table 16 Leadership behavior observed variables 59 Table 17 Observed variables in group "Advancement" 60 Table 18 Observed variables of group "Corporate culture" 61 Table 19 Observed variables of "Working condition" 62 Table 20 Descriptive statistics for observed variable "Motivation at work" 63 Table 21 Descriptive statistics of observed variables of motivation 64 LIST OF FIGURES Figure Process of scientific research 12 Figure Research process for study employee motivation 13 Figure Maslow’s Hierarchy of needs 20 Figure Research model for this thesis 21 Figure Major subsidiaries of NTT Group 31 Figure Major sectors of NTT DATA Corporation 31 Figure Vertical structure of managing human resources 32 Figure Branch structure of NDVN 32 Figure Departments structure of NDVN 33 Figure 10 Career path for software specialist in EIT Business Unit 36 Figure 11 Career path for software specialist in PIF Business Unit 37 Figure 12 Career path for software tester in EIT Business Unit 37 Figure 13 Career path for software tester in PIF Business Unit 37 Figure 14 Coding titles for software specialist 38 Figure 15 Career path for communicator in EIT Business unit 38 Figure 16 Career path (type 1) for communicator in PIF Business unit 38 Figure 17 Career path (type 2) for communicator in PIF Business unit 39 Figure 18 Career path (type 3) for communicator in PIF Business unit 39 Figure 19 Career path for accounting staffs 39 Figure 20 Career path for administration, human resources staffs 40 Figure 21 Career path for employee in Sales department in EIT Business Unit 40 Figure 22 Career path for employee in Sales department in PIF Business Unit 41 Figure 23 Ladder levels when calculating salary 41 Figure 24 Distribution by seniority years of respondents 54 Figure 25 Distribution of genders of respondents 55 Figure 26 Factors affect to employee motivation 56 Figure 27 Salary and welfare observed variables 58 Figure 28 Chart of "Working condition" observed variables 62 Figure 29 Chart of attributes of employee motivation 64 GLOSSARY APAC Asia - Pacific market region of the NTT DATA corporation, regional headquarter is NTT DATA Asia Pacific Pte Ltd company at Singapore Software Development Kit is typically a set of software development tools that allows the creation of applications for a certain software SDK package, software framework, hardware platform, computer system, video game console, operating system, or similar development platform (Wikipedia) EXECUTIVE SUMMARY To accomplish organization’s goal, the organization must have human resource, finance resources, facilities, technology, brand name’s reputation, and so on In all type of organization’s resources, human resource is the most important factor A good human resource must have motivated labors Motivation is very important for any organization, especially in enterprise environment, because it allows management to meet the organization’s goals, operating in efficient way Based on good motivation, employees perform their tasks by their best effort, best performance Employee motivation of knowledge workers of high technology fields even became more important In software industry, at the present, Vietnam is in the process of international corporation and integration with many developing also many developed countries in the world, skilled labor demand for software development, information system integration is very high NTT DATA Vietnam (NDVN) is FDI company, the subsidiary of NTT DATA Corporation, and NTT DATA Corporation is the subsidiary of Nippon Telegraph and Telephone - a company ranked 50th in Fortune 2017 Global500 list However, high employee’s turnover rate and low morale at NDVN impact to business operating of NDVN, it is risky for its quality of production and services, also long-term development strategy In few recent years, many NDVN’s employees has left job after short-time working due diverse reasons; A large percentage of employees who left job are experienced specialists Recruiting alternative staffs cannot fill the shortage left by employees who have left work In a long-term development strategy of the company, high turnover rate of employees is risk for business opportunities and maintaining quality of products, services at NDVN Many labor issues need attention from managers at NDVN Based on that premise, research objectives of the study include: + Current employee motivation at NTT DATA Vietnam + Identify factors affect to employee motivation at NTT DATA Vietnam + Suggest solution to improve employee motivation at NTT DATA Vietnam Study of employee motivation plays an important role in attracting and retaining talents for the company This thesis used quantitative research also qualitative research methodology Presence of quantitative research methodology is in-depth interview, then the author detects most influence factors to employee motivation through analyzing Detail information Please tell us your views on the following aspects Mark x in your selection (each close question has only one answer) Your level of agreement is rated from to 5: = “Strong disagree” = “Disagree” = “Normal” = “Agree” = “Strongly agree” Level Factor Attribute Company supply working facilities (PC, laptop, internet connection, Wi-Fi, dual-screen for programming, licensed software, development tools, SDK, etc.) fully Working Working room is clean, silence, enough large, non- conditions toxic factors No work over-time I feel comfortable with ancillary services (motor parking, car parking, lunch restaurant, building staff) I don’t worry about losing their jobs Stability The company operates stably and effectively The company often has suitable training courses Learn new technology from applying new Advancement opportunities technology in new software project I have chance to learn from talent colleagues The company has clear career paths and employee feel satisfaction with evaluation to next ladder on the path 76 I proud of the company brand I recognize that the entire customer partner values the company's brand Corporate culture I appreciate corporate culture The company has a sustainable development strategy I feel the company’s vision and values is suitable The company always product high quality products also services My colleagues are reliable and honest Colleagues relationship Teamwork operate effectively My colleagues often share, support experience in work also in life My colleagues are comfortable, joyful and sociable Wages paid are worth the effort the employees spend Wages can guarantee the life of staffs and families Reward policies are timely, clear and transparent Salary and welfare Welfare regimes are diverse, complete and correct employee group is entitled I satisfied with the welfare policy of the company Welfare, wages, bonuses paid timely and satisfactory yet? Policy salary, bonus, welfare regime has really care about employees or not? Take risks by creativity and innovation Autonomy at You are asked about number of jobs that fit your work capacity Be involved in production planning 77 Division of labor is reasonable Employees are involved in decisions that affect their work Leaders evaluate employee achievement in terms of equity and recognition Leaders help and support staff to complete the work assigned Leadership Leaders provide feedback to help employees behavior improve job performance Leaders protect the rights of employees Leaders believe the ability of employees Leaders are subtle when criticized I interested with current job Motivation I feel good, cheerful and optimistic at work I am willing to working with my best performance I appreciate the incentive policies of the company Thank you for your cooperation! 78 APPENDIX III SUPPLEMENT STEPS IN DATA ANALYSIS Independence variable “Working condition” 1.1 Case Processing Summary Case Processing Summary N Cases % Valid 127 97.7 3.1 130 100.0 Excludeda Total a Listwise deletion based on all variables in the procedure 1.2 Reliability statistics Reliability Statistics Cronbach's Alpha Cronbach's Alpha Based on Standardized Items 830 N of Items 833 1.3 Item statistics Item Statistics Mean Std Deviation N WO1 4.20 735 127 WO2 4.34 748 127 WO3 4.64 698 127 WO4 4.24 784 127 1.4 Summary Item statistics Summary Item Statistics Minimu Maximu Mean Item Means Item Variances Maximum Varian Range / Minimum m m 4.354 4.197 4.638 441 1.105 039 550 487 615 128 1.262 003 79 ce N of Items Inter-Item Covariances Inter-Item Correlations 303 266 354 088 1.330 001 554 454 678 224 1.495 007 1.5 Item-Total statistics Item-Total Statistics Scale Corrected Squared Cronbach's Scale Mean if Variance if Item-Total Multiple Alpha if Item Item Deleted Item Deleted Correlation Correlation Deleted WO1 13.22 3.570 620 391 802 WO2 13.08 3.486 640 475 794 WO3 12.78 3.364 774 610 736 WO4 13.17 3.446 609 403 810 1.6 Scale Statistics Scale Statistics Mean Variance 17.42 Std Deviation 5.832 N of Items 2.415 Independence variable “Advancement” 2.1 Case Processing Summary Case Processing Summary N Cases Valid Excludeda Total % 130 100.0 0 130 100.0 a Listwise deletion based on all variables in the procedure 2.2 Reliability statistics Reliability Statistics 80 Cronbach's Alpha Cronbach's Alpha Based on Standardized Items 816 N of Items 817 2.3 Item statistics Item Statistics Mean Std Deviation N AD1 3.15 636 130 AD2 2.87 719 130 AD3 2.71 616 130 AD4 2.94 668 130 2.4 Inter-item correlation matrix Inter-Item Correlation Matrix AD1 AD2 AD3 AD4 AD1 1.000 601 466 514 AD2 601 1.000 526 483 AD3 466 526 1.000 578 AD4 514 483 578 1.000 2.5 Summary item statistics Summary Item Statistics Minimu Maximu m m 2.915 2.708 3.146 438 1.162 033 528 466 601 135 1.289 003 Mean Item Means Inter-Item Correlations Maximum / Range 2.6 Item-total statistics Item-Total Statistics 81 Minimum N of Variance Items Corrected Squared Cronbach's Scale Mean if Scale Variance Item-Total Multiple Alpha if Item Item Deleted if Item Deleted Correlation Correlation Deleted AD1 8.52 2.748 641 432 767 AD2 8.79 2.507 650 446 764 AD3 8.95 2.820 632 419 772 AD4 8.72 2.682 629 419 772 2.7 Scale statistics Scale Statistics Mean Variance 11.66 Std Deviation 4.505 N of Items 2.122 Independence variable “Colleague relationship” 3.1 Case processing summary Case Processing Summary N Cases Valid Excludeda Total % 129 99.2 130 100.0 a Listwise deletion based on all variables in the procedure 3.2 Reliability statistics Reliability Statistics Cronbach's Alpha Based on Standardized Cronbach's Alpha Items 716 N of Items 717 3.3 Inter-item correlation matrix 82 Inter-Item Correlation Matrix CR1 CR2 CR3 CR4 CR1 1.000 385 352 404 CR2 385 1.000 356 427 CR3 352 356 1.000 402 CR4 404 427 402 1.000 3.4 Summary item statistics Summary Item Statistics Minimu Maximu m m 3.227 3.132 3.411 279 1.089 016 388 352 427 075 1.213 001 Mean Item Means Inter-Item Correlations Maximum / Range N of Minimum Variance 3.5 Item-total statistics Item-Total Statistics Scale Cronbach's Scale Mean Variance if Corrected Squared Alpha if if Item Item Item-Total Multiple Item Deleted Deleted Correlation Correlation Deleted CR1 9.69 2.575 492 244 662 CR2 9.78 2.676 506 259 653 CR3 9.76 2.684 476 229 671 CR4 9.50 2.549 541 294 632 3.6 Scale statistics Scale Statistics Mean 12.91 Variance Std Deviation 4.257 2.063 Independence variable “Salary and welfare” 83 N of Items Items 4.1 Case processing summary Case Processing Summary N Cases Valid % 129 98.5 1.5 131 100.0 Excludeda Total a Listwise deletion based on all variables in the procedure 4.2 Reliability statistics Reliability Statistics Cronbach's Alpha Cronbach's Alpha Based on Standardized Items 845 N of Items 852 4.3 Item statistics Item Statistics Mean Std Deviation N SA1 3.24 705 129 SA2 4.29 840 129 SA3 4.62 877 129 SA4 3.12 608 129 SA5 3.09 531 129 SA6 3.17 547 129 SA7 3.09 516 129 4.4 Inter-item correlation matrix Inter-Item Correlation Matrix SA1 SA2 SA3 SA4 SA5 SA6 SA7 SA1 1.000 292 465 427 363 380 330 SA2 292 1.000 764 363 505 420 412 SA3 465 764 1.000 465 523 495 504 SA4 427 363 465 1.000 453 434 417 84 SA5 363 505 523 453 1.000 542 430 SA6 380 420 495 434 542 1.000 502 SA7 330 412 504 417 430 502 1.000 4.5 Summary item statistics Summary Item Statistics Minimu Maximu m m 3.515 3.085 4.620 1.535 1.497 423 452 292 764 472 2.619 009 Mean Item Means Inter-Item Correlations Maximum / Range Minimum N of Variance Items 4.6 Item-total statistics Item-Total Statistics Scale Corrected Squared Cronbach's Scale Mean if Variance if Item-Total Multiple Alpha if Item Item Deleted Item Deleted Correlation Correlation Deleted SA1 21.36 8.968 495 302 840 SA2 20.32 7.812 646 608 819 SA3 19.98 7.172 769 682 795 SA4 21.49 9.111 565 346 829 SA5 21.52 9.220 636 431 822 SA6 21.43 9.216 614 422 824 SA7 21.52 9.455 578 361 829 4.7 Scale Statistics Scale Statistics Mean 24.60 Variance Std Deviation N of Items 11.553 3.399 85 Independence variable “Autonomy at work” 5.1 Case processing summary Case Processing Summary N Cases % Valid Excludeda Total 130 99.2 131 100.0 a Listwise deletion based on all variables in the procedure 5.2 Reliability statistics Reliability Statistics Cronbach's Alpha Cronbach's Alpha Based on Standardized Items 752 755 5.3 Item statistics Item Statistics Mean Std Deviation N AU1 2.56 726 130 AU2 2.69 595 130 AU3 3.45 898 130 AU4 3.15 772 130 AU5 2.38 761 130 5.4 Inter-item correlation matrix Inter-Item Correlation Matrix AU1 AU2 AU3 AU4 AU5 AU1 1.000 331 362 370 223 AU2 331 1.000 505 492 297 AU3 362 505 1.000 682 291 AU4 370 492 682 1.000 255 86 N of Items AU5 223 297 291 255 1.000 5.5 Summary item statistics Summary Item Statistics Minimu Maximu m m 2.848 2.385 3.446 1.062 1.445 193 381 223 682 459 3.056 019 Mean Item Means Inter-Item Correlations Maximum / Range N of Minimum Variance 5.6 Item-total statistics Item-Total Statistics Scale Cronbach's Scale Mean Variance if Corrected Squared Alpha if if Item Item Item-Total Multiple Item Deleted Deleted Correlation Correlation Deleted AU1 11.68 5.244 427 186 739 AU2 11.55 5.289 566 328 700 AU3 10.79 4.026 654 516 652 AU4 11.08 4.481 646 506 658 AU5 11.85 5.397 343 125 769 5.7 Scale statistics Scale Statistics Mean Variance 14.24 Std Deviation 7.191 2.682 Independence variable “Leadership style” 6.1 Case processing summary Case Processing Summary 87 N of Items Items N Cases % Valid 130 99.2 131 100.0 Excludeda Total a Listwise deletion based on all variables in the procedure 6.2 Reliability statistics Reliability Statistics Cronbach's Alpha Cronbach's Alpha Based on Standardized Items 829 N of Items 828 6.3 Item statistics Item Statistics Mean Std Deviation N LS1 3.05 533 130 LS2 3.69 657 130 LS3 3.64 647 130 LS4 3.20 548 130 LS5 3.05 526 130 LS6 3.59 655 130 6.4 Inter-item correlation matrix Inter-Item Correlation Matrix LS1 LS2 LS3 LS4 LS5 LS6 LS1 1.000 468 349 493 295 241 LS2 468 1.000 612 538 400 517 LS3 349 612 1.000 446 391 564 LS4 493 538 446 1.000 478 509 LS5 295 400 391 478 1.000 370 LS6 241 517 564 509 370 1.000 88 6.5 Scale statistics Scale Statistics Mean Variance 20.22 Std Deviation 6.919 N of Items 2.630 Dependence variable “Motivation” 7.1 Case processing summary Case Processing Summary N Cases Valid Excludeda Total % 130 99.2 131 100.0 a Listwise deletion based on all variables in the procedure 7.2 Reliability statistics Reliability Statistics Cronbach's Alpha Cronbach's Alpha Based on Standardized Items 850 859 7.3 Item statistics Item Statistics Mean Std Deviation N MO1 3.15 683 130 MO2 3.27 745 130 MO3 2.86 921 130 MO4 3.15 738 130 7.4 Summary item statistics Summary Item Statistics 89 N of Items Minimu Maximu m m 3.106 2.862 3.269 408 1.142 030 604 495 680 185 1.373 004 Mean Item Means Inter-Item Correlations Maximum / Range Minimum N of Variance Items 7.5 Item-total statistics Item-Total Statistics Corrected Squared Cronbach's Scale Mean if Scale Variance Item-Total Multiple Alpha if Item Item Deleted Correlation Correlation Deleted if Item Deleted MO1 9.28 4.155 733 560 797 MO2 9.15 4.069 679 498 814 MO3 9.56 3.612 629 413 850 MO4 9.28 3.907 759 581 782 7.6 Scale statistics Scale Statistics Mean Variance 12.42 Std Deviation 6.665 2.582 90 N of Items ... - How is current employee motivation? - What are factors affect to employee motivation at NTT DATA Vietnam? - What are solutions for improving employee motivation at NTT DATA Vietnam? 1.4 Research... factors affect to employee motivation at NTT DATA Vietnam + Suggest solution to improve employee motivation at NTT DATA Vietnam Study of employee motivation plays an important role in attracting and... Determining current employee motivation - Identify factors affect to employee motivation at NTT DATA Vietnam - Suggest solution to improve employee motivation at NTT DATA Vietnam 10 1.3 Research