BACHELOR THESIS Major Enterprise Management Topic INFLUENCES OF REWARDS AND RECOGNITION ON EMPLOYEE PERFORMANCE AT HIEN LONG FASHION LIMITED COMPANY TABLE OF CONTENTS ACKNOWLEDGEMENTS i TABLE OF CONTE.
BACHELOR THESIS Major: Enterprise Management Topic: INFLUENCES OF REWARDS AND RECOGNITION ON EMPLOYEE PERFORMANCE AT HIEN LONG FASHION LIMITED COMPANY TABLE OF CONTENTS ACKNOWLEDGEMENTS .i TABLE OF CONTENTS ii STATUTORY DECLARATION .iv ABBREVIATIONS v LIST OF FINGERS vi LIST OF TABLES vii EXCUSIVE SUMMARY .viii CHAPTER 1: INTRODUCTION 1.1 Rational .1 1.2 Objectives of the study .2 1.3 The Subject and scope of research 1.4 Research methodology .3 1.5 Thesis structure CHAPTER 2: LITERATURE REVIEW AND HYPOTHESIS DEVELOPMENT .4 2.1 Reward and recognition 2.1.1 Definition of rewards 2.1.2 Definition of recognition .5 2.1.3 Difference of rewards and recognition 2.2 Employee performance 2.2.1 Definition of job performance .8 2.2.2 Measure employee performance 2.3 Relationship between Employee Recognition and Job Performance 10 2.4 Relationship between rewards and job performance 10 2.5 Previous research of Influences of rewards and recognition on employee performance 10 CHAPTER RESEARCH METHOD 13 3.1 Research framework 13 3.2 Data collection 13 3.3 Data Analysis Method 14 CHAPTER 4: FINDINGS .16 4.1 Overview of Hien Long Fashion Limited company .16 4.1.1 History of formation and development 16 4.1.2 Fields of operation .17 4.1.3 Products and markets 18 4.1.4 Organizational Structure 20 4.1.5 Business Activities .22 4.1.6 Hien Long Fashion Co Ltd.'s direction in the coming years .24 4.2 Results .25 4.2.1 Demographic information of respondents 25 4.2.2 Descriptive analysis 28 4.2.3 Regression analysis 29 4.2.4 Coefficient Determination (r2) 31 4.3 The status of rewards and recognition at Hien Long Fashion Limited Company .32 4.3.1 According to the recognition and reward factor 32 4.3.2 Evaluation of positive side results .33 4.3.3 Limited aspects 33 CHAPTER CONCLUSION AND RECOMMENDATIONS 35 5.1 Conclusion 35 5.2 Recommendations 35 5.2.1 Solutions for reward issues 35 5.2.2 Developing for evaluating clear job performance .36 5.2.3 Recommendations for Human resource management 36 5.2.4 Conditions for implementing solutions 37 5.3 Limitations and suggestion for future researchs 38 REFERENCES 39 APPENDIXES 42 STATUTORY DECLARATION I herewith formally declare that I myself have written the submitted Barchelor Thesis independently I did not use any outside support except for the quoted literature and other sources mentioned at the end of this paper I clearly marked and separately listed all the literature and all other sources which I employed producing this academic work, either literally or in content Hanoi, ./ / 2022 Signature LIST OF FINGERS Figure 3.1 Conceptual Framework 13 Figure 4.1 Organizational structure of Hien Long Fashion Co Ltd 20 Figure 4.2 Diagram shows revenue and profit after taxes of Hien Long Fashion Co Ltd from 2018 to 2021 .23 LIST OF TABLES Table 4.1 Income Statements of Hien Long Fashion Co Ltd 22 Table 4.2 Structure of employees by gender .24 Table 4.3 Human Resource Structure according to Educational Level in 2021 24 Table 4.4 Showing human resource structure according to functions in 2021 24 Table 4.5 Demographic presentations of the respondents 27 Table 4.6 The results of the employees' evaluation of the rewards 28 Table 4.7 The results of the employees' evaluation of the recognition .29 Table 4.8 The results of the employees' evaluation of employee performance 29 Table 4.9 Correlations 30 Table 4.10 Reliability Statistics for Reward (X1) .31 Table 4.11 Reliability Statistics for Recognition (X2) 31 Table 4.12 Reliability Statistics Employee performance (Y) 31 Table 4.13 Regression Analysis .32 Table 4.14 Coefficient Correlation 32 EXCUSIVE SUMMARY Among all of an organization's resources, human resources are the most significant It is critical for an organization's overall effectiveness to maintain an efficient and experienced workforce Rewards are advantages received because of completing a task, providing a service, or carrying out a duty One of the most significant strategies for motivating people in the workplace is rewards The goal of the reward system is to deliver positive results Verbal appreciation for an employee's performance is referred to as recognition This sort of reward can be official, such as a meeting, or informal, such as a "pat on the back," in order to increase employees' self-esteem and pleasure, resulting in more contributing efforts This is a critical aspect in determining an employee's motivation The term "recognition" refers to how an employee's performance is judged and how much admiration he receives from his employer It also describes how an organization rewards and elevates its employees based on their efforts and accomplishments The purpose of this study is to determine the influence of reward on employee performance at Hien Long Fashion Co Ltd and to identify suitable recommendations to make the reward and recognition system more effective A quantitative research approach was used to conduct the project's experimental part The sample size was 50 people The information was gathered through questionnaires distributed to Hien Long Fashion Co Ltd employees Employees are rewarded for completing the questionnaire, which has three variables The research employed frequency tables and graphs based on descriptive statistics to offer information on the population's variables The primary data comprises of the data which was collected through books, journals, articles, magazines, and websites And it is collected from internal sources: (1) HLF manual policy, (2) HLF HR reports The findings indicated that both Reward and Recognition have a significant impact on employee performance at Hien Long Fashion Co Ltd There are some solutions for reward issues and evaluating clear job performance Hien Long Fashion Co Ltd have to become aware of the importance of applying all elements of rewards to improve employee performance which will result in improved enterprise performance Keywords: reward, recognition, employee performance CHAPTER 1: INTRODUCTION 1.1 Rational In today's competitive business environment, more entrepreneurs are seeking for ways to increase quality while lowering expenses A strong economy, on the other hand, has resulted in a tight labor market As a result, while small firms require more from their employees, their employees want more from them Employee reward and recognition programs are one way to encourage workers to modify their work habits and critical behaviors for the benefit of the company Different organizations require different methods and approaches to please their employees in order to obtain the most work in today's society As a result, organizations will require some rules and standards to this For this reason, several call centers may utilize the findings of our study to enhance their rewards, recognition, and stress elements in order to encourage staff and achieve success Many individuals are unaware of how people behave in organizations, why they behave the way they do, and what we can to forecast and govern their behavior Human Resources Management (HRM) and Organizational Behavior (OB) are the foundational skills required to accomplish all of these goals Nowadays, it is essential for businesses to be able to obtain a long-term competitive advantage via people, as well as to address key employee concerns such as managing a diverse workforce, respecting employee rights, and adapting to new work attitudes We all have a thousand different attitudes, but OB concentrates on a small set of work-related attitudes This draws into employees' favorable or negative evaluation about many aspects of their workplace Employee job performance has always been a major challenge in organizational management, and the fundamental goal of any business organization is to find effective strategies to inspire people to attain and provide greater job performance while also increasing organizational competitiveness [ CITATION Ogb11 \l 1033 ] suggested that “the deteriorating level of employee performance in Nigerian tertiary institutions is fast becoming a serious threat to the survival of universities in Nigeria which needs to be addressed urgently It is therefore believed that employee performance is instrumental to organizational growth and profitability The employees are regarded as the major business resources that facilitate the daily activities and operations of an organization.” Similarly, Oluwafemi (2010) asserted that organizational effectiveness and efficiency depend on how effective and efficient the employees in the organization are Employers’ ability to comprehend employee satisfaction as it relates to schedules and daily responsibilities will impact greatly on employee productivity and performance According to Howard (2009), job satisfaction is a combination of likable and unlikable emotions or behavior of an individual working on their work schedule, stating that while someone is employed, they may have needs, wants, and expectations that determine their reason for being there Job satisfaction exemplifies the magnitude with which optimism is matched with tangible rewards and benefits According to [ CITATION Mow13 \l 1033 ], “most employees of today have a high degree of job dissatisfaction which creates attitudes that are undesirable on the job and in turn degenerate their performance ability and their working place as well” Organizations cannot survive if their employees not perform well on the job It is critical for businesses to prioritize it as their primary goal As a result, they must look after their employees and recognize their contributions in order for them to perform effectively in their positions The researcher is interested in whether call center job performance is improving or declining What causes their increases and decreases? The author would like to pick the topic "The effects of incentives and recognition on employee performance" to meet these practical requirements Empirical evidence from Hien Long Fashion Company Limited" is used in her thesis to address this human resource challenge 1.2 Objectives of the study Based on the research problems, the objectives of this research are: To know the influence of reward on employee performance at Hien Long Fashion Co Ltd To know the influence of recognition on employee performance at Hien Long Fashion Co Ltd To identify suitable recommendations to make the reward and recognition system more effective 1.3 The Subject and scope of research This study is only limited to Hien Long Fashion Co Ltd workers This is due to a time limitation that prevents the study from being conducted in other organizations or over a greater geographic area For this study, the researcher only focused on respondents who were in low-level management or below The company's statistics from 2018 to 2021, as well as information gathered from workers, are used to determine the present state of HLF's incentive and recognition programs The total number of people that took part in this study is 50 1.4 Research methodology I conducted a survey on employees of Hien Long Fashion Co Ltd The hypothesis was investigated using regression analysis and descriptive analysis after several scales were constructed to measure the variables 1.5 Thesis structure The thesis will be divided into chapters: Chapter 1: Introduction Chapter 2: Literature Review and hypothesis development Chapter 3: Research Methodology Chapter 4: Findings Chapter 5: Conclusion and recommendations company will suffer poor performance as a result This research results are similar to the findings of several earlier Hence studies, which found that employees are more productive in the workplace when they perceive a higher quantity of rewards and acknowledgment for their job performances According to Maslach et al (2001), while a lack of rewards and recognition can contribute to burnout, proper recognition and reward is critical for success The overall result of this study is that reward and recognition factors can have a significant impact on employee performance at Hien Long Fashion Co Ltd 4.3 The status of rewards and recognition at Hien Long Fashion Limited Company 4.3.1 According to the recognition and reward factor In order to improve the performance as well as the motivation of the workers, besides salary, bonuses also play an important role Aware of this, throughout its formation and development process, Hien Long Fashion Limited Company always attaches great importance to the bonus policy of employees In addition to the basic salary received monthly, the company's employees will receive bonuses in the following opportunities at the following time: - Reward initiative: apply to departments, excellent individuals with new ideas and ideas that can be applied, implemented in the company or have good solutions to the problems the company encounters, are also rewarded immediately after that event - Year-end bonus: at the end of the year, after determining the revenue and cost of production of business and finance, Hien Long Fashion Limited Company employees will receive a bonus based on their total salary and the bonus coefficient m The year-end bonus formula for Hien Long Fashion Co Ltd employees is: Year-end bonus = 1-year salary x m (%) m: is the variable determined by the profit fund left by HLF or by the company's production and business situation If the profit fund leaves a lot, m is huge, and if it leaves a little, m is small There is no calculation or written rule for the value of the variable m; it is determined by the board of directors and the accounting department - In addition, on special occasions, the HLF corporation pays incentives to its staff For example, on International Labor Day in 2021, each HLF employee would be received 500,000 dong; following the Tet holiday, each employee would be received 200,000 dong; and after the New Year, each employee would be received 500,000 dong - In addition to monetary rewards, company leaders may use additional methods such as awarding certificates of merit, congratulating employees' efforts in front of the whole company, posting employee achievements on the firm's message board, and so on On the one hand, these types of compensation demonstrate the company's appreciation for workers' accomplishments and contributions; on the other hand, they serve as a lever to motivate people to work more passionately As a result, the company's reward programs not only help to increase employee imports, but they also help to improve the working capacity and efficiency of all employees Employees will become more engaged to their work and give more to the organization if they receive the proper attention and reward from management 4.3.2 Evaluation of positive side results Going through the journey of formation and development full of fraud and challenges, by using many forms of motivational variety, from salary, bonuses, allowances, etc., the company has provided its employees with abundant working capacity, Enthusiastic at work, especially there are times when employees have to work overtime in a stressful state, but their work ethic has not declined, they still devote themselves to the cause of the company, determined to complete the assigned work Besides, with deep attention to the lives of employees and their family members with some financial and spiritual encouragement, the amount of money is not much but also showing the heart of the management of Hien Long Fashion Limited Company In addition, the sports greetings, arts, fun for the group launched by the company have helped the employees closer together, unite unanimously and work closely together to complete the assigned work Material incentives as well as spiritual incentives have helped the company retain good workers, long-term working and solid skills Clear and transparent rewards and reward policies have made employees feel secure when striving to achieve rewards worthy of their efforts to get the job done 4.3.3 Limited aspects In addition to the advantages of improving work efficiency, there are some limitations: - One is that the compensation regime, inadequate income, not satisfied employees compared to their contributions and contributions The salary of the company's employees compared to the general premises of the same companies is only at the same level - Secondly, Employees at Hien Long Fashion Limited Company are dissatisfied with the process of evaluating their work performance This represents the reality at the Company, where the system of measuring employee's performance is still based on the leader's sentiments and lacks precise criteria CHAPTER CONCLUSION AND RECOMMENDATIONS 5.1 Conclusion Employees place a high value on various rewards provided by their companies, which has a considerable influence on their performance The reward is more vital for the benefit of the employee's performance in any type of business, organization, or institution It is a common occurrence that human performance is tied to motivation, and motivation can be related to rewards According to the findings, greater rewards and recognition might boost motivation and satisfaction, which increases the performance As a result, reward systems are crucial in improving the value provided to employees The mean values of money, advancement, perks, and recognition demonstrate that employees are less motivated with those characteristics Hence, rewards and recognition plans given to the employees of Hien Long Fashion have to be revised, in such a way that it has to motivate and satisfy them The organizations need to develop a strategic reward system to increase employee performance An effective pay for performance program can be a powerful tool with which to attract, retain and motivate a high-quality workforce 5.2 Recommendations 5.2.1 Solutions for reward issues The company needs to apply an annual salary increase of 10-15% of the current salary for employees with more than year of working experience Salary and bonuses are important factors affecting the performance of employees, so building a competitive, fair salary and bonus regime, commensurate with the level and level of dedication plays an extremely important role In terms of bonuses, the company needs to take the form of material and immaterial rewards The bonus level may be based on the company's half-year and end-of-year business results, if it exceeds the plan, it will deduct a portion of profits exceeding that plan as a bonus fund; or it can also be based on initiatives to improve the quality and efficiency of work, save real costs for the company, extract a portion from the money saved to reward individuals for giving initiatives The form of material reward can be in money, the form of non-material reward can be for traveling at home, abroad or a course to improve expertise, qualifications This has just confirmed to the company's employees that the company is developing well so that they can work with peace of mind and also a form of recognition of their efforts and efforts, promoting their motivation to work 5.2.2 Developing for evaluating clear job performance The evaluation of work results (KPIs) plays a very important role, it will be a balance to consider salary increases, bonuses, promotions and create a fair, equal work ethic among all employees, so the company needs to pay special attention to this issue In order to be able to evaluate the results of the work clearly, it is necessary to proceed to develop a job description for each position, each title This description should clearly state the role of each individual in the work and department, what are the specific responsibilities, this is the basis for forming the criteria for measuring the results of work In order to develop an effective and accurate job description, the company needs to put senior, experienced employees into the same advice, because it is they who understand better than anyone in that position what to and what responsibility for the job Next is the need to build a system to evaluate the results of the work Since the evaluation of the results of the work is extremely important, this system needs to be designed scientifically, accurately reflecting the results of the work The human resources department of the company should clearly and specifically inform all employees who understand the purpose of the evaluation, thereby consciously implementing it seriously In fact, since its operation, the company has not built a specific work results assessment program, all of which is only emotional, the reason is that the company's management has not determined the need for this evaluation system, that’s why the work of salary, bonuses, promotion has many inadequacies, unclear, fair, suppressing the efforts and motivation of employees Therefore, the system of evaluating the results of this work needs to reflect the performance of employees, and at the same time must link the results of that assessment with the pay and bonuses to ensure fairness and motivate them to work 5.2.3 Recommendations for Human resource management - Employee performance may be enhanced if both the management and the employee are aware of where they are, where they need to go, and how they will get there The entire team should be encouraged to discuss everything from progress, deadlines, expectations, and resources, in addition to the management and employee having open communication This makes it easy for the team to navigate a goal from start to finish It allows for more collaboration and can help everyone enhance their performance - Employees will be more willing to give their creative ideas and hard work to a company that values them Employees who understand how their job contributes to the company's success are more motivated to give it their all Talk to them and hear their opinions - Provide adequate training to all new staff from the beginning Make sure that those employees understand what they must perform and how to it most efficiently They'll be able to offer their unique ideas and be effective at getting things done once the methods for getting the work done are normal - Recognize your employees' unique efforts and successes if you want to enhance their morale and push them to their best If you lavish praise on your employees, you'll discover that they'll become more inventive and enthusiastic to work - An effective reward system provides ethical incentives that may be paired with nearly certain levels of performance to differentiate exceptional individuals based on their performance as a means of improving employee performance 5.2.4 Conditions for implementing solutions * For the company - The board of directors of the company should be aware of the role of the motivation of employees in the company, thereby having the appropriate attention, making appropriate policies - There is the participation of all levels of leaders throughout the evaluation process so that it is done objectively, fairly and closely to reality In particular, leaders must always be the leading guide, encourage employees in the process of carrying out the work through regular face-to-face exchanges, must build a positive working atmosphere to listen and solve problems together so that they can understand the problems, the difficulty of the work from which there are timely and timely support measures - To build a fund for motivational activities, extracted from business revenues to implement training and welfare policies - Propagate so that employees can see their benefits are tied to the company's business and vice versa * For company employees - Maintain a demanding mindset and a constant desire to learn new things - Recognize the organization's worth and the job you do, and establish your responsibilities inside the company - Willing to take on new challenges and collaborate with others to accomplish collaborative projects 5.3 Limitations and suggestion for future researchs Because of a shortage of time and funding, workers were interviewed In order to acquire valid results, future study should increase the number of respondents The data was gathered on a cross-sectional basis; longitudinal data may have shown different conclusions because employees' job performance varies with time and with experience Future research should concentrate on gathering data from various managerial levels, such as top, medium, and low management, in order to provide a complete picture of what influences employee performance at various managerial levels The number of male respondents in our study is less; also, the sample size selected for the study is not representative of whole of the company Rather of utilizing subjective self-reported perceptual measures to grade the 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Human Resource Sales Finance and Accounting Another department What is the highest degree or level of school you have completed? High school graduate Vocational training Bachelor’s degree Master’s degree How long have you worked at the company? Up to year 1-3 years 3-5 years years and above Section II: Survey Statement Strongl y Disagre e Strongl y Agree Agree 5 5 Neutra Disagre l e Rewards 1.The rewards are distributed rightfully (Phần thưởng phân chia cách hợp lí) The rewards match my work effort (Phần thưởng phù hợp với nỗ lực làm việc tôi) I am satisfied with the quality/quantity of the rewards (Tơi hài lịng chất lượng/ số lượng phần thưởng) I am ready to increase my work efforts in order to gain rewards (Tôi sẵn sàng nỗ lực làm việc để đạt phần thưởng) The rewards have a positive effect on the work atmosphere (Phần thưởng có tác động tích cực đến khơng khí làm việc) The rewards motivate me to perform well in my job (Phần thưởng thúc đẩy tơi hồn thành tốt công việc) 5 5 5 Recognition I am praised regularly for my work (Tơi thường xun khen ngợi cơng việc mình) I receive constructive criticism about my work (Tơi nhận lời trich mang tính xây dựng cơng việc mình) I am told that I am making progress (Tơi góp ý tiến bộ) Employee Performance 10 The method of evaluating the company's performance is reasonable and convincing (Phương pháp đánh giá kết làm việc công ty hợp lý thuyết phục.) 11 The benefits that I receive at this company meet my needs (Những lợi ích tơi nhận đáp ứng nhu cầu tôi) 12 The company provides fair compensation and benefits in return for my contributions in it (Công ty cung cấp lương lợi ích cơng để đổi lấy đóng góp tơi) 13 Gives positive recognition for good performance (những cơng nhận tích cực tốt cho hiệu suất làm việc) 14 Overall, I am satisfied with my opportunities for promotion, raises, and bonuses (Nhìn chung, tơi hài lịng với hội thăng tiến, tăng lương phần thưởng mình) 5 5 Additional Comments (Bình luận bổ sung): ... influence on employee performance at Hien Long Fashion Co Ltd H2 = recognition has an influence on employee performance at Hien Long Fashion Co Ltd 3.2 Data collection Secondary data: It comprises of. .. of this study is that reward and recognition factors can have a significant impact on employee performance at Hien Long Fashion Co Ltd 4.3 The status of rewards and recognition at Hien Long Fashion. .. influence of reward on employee performance at Hien Long Fashion Co Ltd To know the influence of recognition on employee performance at Hien Long Fashion Co Ltd To identify suitable recommendations