WORKING MOTIVATION OF BACK-OFFICE STAFFS IN PETROLIMEX AVIATION FUEL JSC

NATIONAL ECONOMICS UNIVERSITY BUSINESS SCHOOL DAO DUY KHANH WORKING MOTIVATION OF BACK-OFFICE STAFFS IN PETROLIMEX AVIATION FUEL JSC MASTER OF BUSINESS ADMINISTRATION THESIS HANOI – 2021 NATIONAL ECONOMICS UNIVERSITY BUSINESS SCHOOL DAO DUY KHANH WORKING MOTIVATION OF BACK-OFFICE STAFFS IN PETROLIMEX AVIATION FUEL JSC MASTER OF BUSINESS ADMINISTRATION THESIS Supervisor: Dr Tran Thi Van Hoa HANOI – 2021 ACKNOWLEDGMENT First of all, 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 deep and sincere gratitude to my supervisor, Professor Tran Thi Van Hoa, National Economics University Her wide knowledge and logical way of thinking has been of great value to me She gave me much encouragement and many personal instructions which helped me a lot in doing this thesis and provided me with a good basis for the presence of the thesis During this work, I collaborated with many people from Petrolimex Aviation Fuel Joint Stock Company (Petrolimex Aviation), who gave me kind support in data collection and contact making I would like to send my special thanks to the ones who helped me a lot in collecting data and information from Petrolimex Aviation I owe my loving thanks to my beloved family, without their encouragement, support and understanding, it would be impossible for me to finish this work Hanoi, October 2021 Dao Duy Khanh TABLE OF CONTENTS ABBREVIATIONS LIST OF TABLES LIST OF FIGURES EXECUTIVE SUMMARY CHAPTER 1: INTRODUCTION 1.1 Rationale 1.2 Research objectives 1.3 Research questions 1.4 Research methodology 1.4.1 Research process .3 1.4.2 Data collection method 1.4.3 Data analysis .5 1.5 Research scope .5 1.6 Research structure CHAPTER 2: THEORETICAL BACKGROUND ON MOTIVATING EMPLOYEE 2.1 Motivation and staff motivation .6 2.1.1 Defining motivation 2.1.2 Staff motivation 2.2 Motivation theories 2.2.1 Maslow’s hierarchy of needs theory 2.2.2 Herzberg’s two-factor theory of motivation .11 2.2.3 Adam’s Equity Theory of Motivation 17 2.3 Research model and measurement scales for motivating employees 21 2.3.1 Previous studies on motivating employees 21 2.3.2 Two-factor theory as research model .24 2.3.3 Measurement scales for motivating employees .25 CHAPTER 3: ANALYZE CURRENT BACK-OFFICE STAFF MOTIVATION AT PETROLIMEX AVIATION 30 3.1 Overview of Petrolimex Aviation 30 3.1.1 General introduction 30 3.1.2 Organizational structure 31 3.1.3 Main competitor of Petrolimex Aviation 32 3.2 Analyzing back-office staff motivation at Petrolimex Aviation 32 3.2.1 Respondents’ profile 32 3.2.2 Hygiene factors .35 3.2.3 Motivation factors 59 3.3 Summary of findings 73 3.3.1 Factors motivating employees 73 3.3.2 Factors demotivating employees .74 3.3.3 Reasons for factors demotivating employees demotivating employees 75 CHAPTER 4: RECOMMENDATIONS TO ENHANCE BACK-OFFICE STAFF MOTIVATION AT PETROLIMEX AVIATION 77 4.1 Petrolimex Aviation’s orientation for human resources management 77 4.2 Recommendations for Petrolimex Aviation 77 4.2.1 Establishing a back-office staff feedback system 77 4.2.2 Improving the performance appraisal system 80 4.2.3 Creating more interesting and challenging work .82 4.2.4 Diversifying the labor resources in recruitment .84 4.2.5 Making a more effective reward and recognition 85 4.2.6 Improving working conditions in Petrolimex Aviation 86 4.3 Recommendations for other stakeholders .87 4.3.1 Recommendations for employees 87 4.3.2 Recommendations for the State .87 CONCLUSION 89 LIST OF REFERENCES 91 APENDIX 1: BACK-OFFICE STAFF MOTIVATION QUESTIONNAIRE .93 APENDIX 2: QUESTIONNAIRE’S RESULTS ON BACK-OFFICE STAFFS’ DEMOGRAPHIC INFORMATION 99 APPENDIX 3: QUESTIONNAIRE’S RESULTS ON PETROLIMEX AVIATION BACK-OFFICE STAFFS’ MOTIVATIONAL STATUS ABBREVIATIONS BSNEU CIT EMBA HR HRD JD LPG PA Petrolimex Aviation US$ Vinapco VND Business School, National Economics University Critical Incident Technique English Master for Business Administration Human Resources Human Resources Department Job Description Liquefied Petroleum Gas Performance Appraisal Petrolimex Aviation Fuel Joint Stock Company United States Dollar Vietnam Air Petrol Company Vietnam Dong LIST OF TABLES Table 1.1: In-depth interview Table 2.1: Attributes to measure staff motivation 25 Table 3.1: Petrolimex Aviation back-office staff qualification .35 Table 3.2: Petrolimex Aviation back-office staff satisfaction with working conditions 35 Table 3.3: Petrolimex Aviation back-office staff satisfaction with current salary 41 Table 3.4: Petrolimex Aviation back-office staff satisfaction with payment policy 43 Table 3.5: Petrolimex Aviation back-office staff satisfaction with salary increasing policy 46 Table 3.6: Petrolimex Aviation back-office staff satisfaction with current welfare 47 Table 3.7: Petrolimex Aviation back-office staff satisfaction with quality of supervision 51 Table 3.8: Petrolimex Aviation back-office staff satisfaction with company policy and administration 53 Table 3.9: Petrolimex Aviation back-office staff satisfaction with interpersonal relations 57 Table 3.10: Petrolimex Aviation back-office staff satisfaction with achievement and recognition 60 Table 3.11: Awarding expenditure 61 Table 3.12: Petrolimex Aviation back-office staff satisfaction with responsibility & work itself 65 Table 3.13: Petrolimex Aviation back-office staff satisfaction with advancement 68 Table 3.14: Petrolimex Aviation back-office staff satisfaction with career training & development 70 LIST OF FIGURE Figure 1.1: Research process Figure 2.1: Maslow’s hierarchy of needs Figure 2.2: Herzberg’s scenarios of staff motivation .16 Figure 2.3: Adam’s equity theory of motivation 18 Figure 2.4: Research model 25 Figure 3.1: Organizational structure of Petrolimex Aviation 31 Figure 3.2: Petrolimex Aviation back-office staff age 33 Figure 3.3: Petrolimex Aviation back-office staff gender 34 Figure 3.4: Average score for back-office staff satisfaction with working conditions 37 Figure 3.5: Average score of back-office staff satisfaction with current salary 41 Figure 3.6: Average score of back-office staff satisfaction with payment policy 43 Figure 3.7: Current average score of back-office staff satisfaction with salary increasing policy 46 Figure 3.8: Average score of back-office staff satisfaction with welfare and benefit 49 Figure 3.9: Supervisor fairness and unfairness in back-office staff treatment .52 Figure 3.10: Average score of current back-office staff satisfaction with company policy and administration 53 Figure 3.11: Back-office staff satisfaction level on clear delegation 66 Figure 3.12: Back-office staff satisfaction over trainee choosing 71 Figure 3.13: Back-office staff satisfaction over time duration .72 Figure 3.14: Back-office staff satisfaction over effectiveness of training courses 72 APPENDIX QUESTIONNAIRE’S RESULTS ON PETROLIMEX AVIATION BACK-OFFICE STAFFS’ MOTIVATIONAL STATUS Strongly disagree Statement Disagree (2) (1) f Working conditions The general Somewha t agree at (4) (3) % f % f % 0 0 64 64 7 12 12 38 38 0 9 51 51 7 11 11 61 61 working conditions Agree Petrolimex Strongly agree (5) f % 3 6 3 9 3 3 1 8 Mea n f % 0 3.36 4 3.21 7 3.38 3 2.99 Aviation is good Petrolimex Aviation is equipped with full office equipment (computer, printer, photocopy machine, telephone, etc.) The stationery at Petrolimex Aviation is fully equipped Transportation to work at Strongly disagree Statement Disagree (2) (1) Somewha t agree Agree (4) (3) Strongly agree (5) Mea n f % f % f % f % f % 9 27 27 51 51 7 6 2.74 0 8 11 11 7 5 6 3.79 9 12 12 64 64 1 2 3 2.88 0 8 54 54 3 6 3.36 2 Petrolimex Aviation is good You feel comfortable the in working room of Petrolimex Aviation (area, temperature, noise) The security in the working place is good Salary You feel satisfied with your current salary in comparison with other back-office staffs in your corporation You satisfy with your current welfare compared to other back-office staffs’ in your Strongly disagree Statement Disagree (2) (1) Somewha t agree Agree (4) (3) f % f % f % 5 10 10 64 64 8 15 15 54 54 13 13 14 14 61 17 17 16 16 62 Strongly agree (5) f % 1 2 1 9 61 62 Mea n f % 9 3.10 4 2.96 4 2.76 0 2.55 corporation You feel satisfied with salary increasing policy in comparison with other backoffice staffs in your corporation You feel satisfied with payment policy in comparison with other back-office staffs in your corporation You feel satisfied with reward policy in comparison with other back-office staffs in your corporation You feel satisfied with your current salary in comparison with other back-office Strongly disagree Statement Disagree (2) (1) staffs in Somewha t agree Agree (4) (3) f % f % f % 0 9 56 56 12 12 10 10 65 65 15 15 12 12 57 57 15 15 9 57 57 Strongly agree (5) f % 3 0 9 1 2 1 2 Mea n f % 5 3.31 4 2.83 4 2.78 7 2.87 other companies You feel satisfied with your current welfare in comparison with other back-office staffs in other companies You feel satisfied with salary increasing policy in comparison with other backoffice staffs in other companies You feel satisfied with payment policy in comparison with other back-office staffs in other companies You feel satisfied with policy reward in comparison with Strongly disagree Statement Disagree (2) (1) Somewha t agree Agree (4) (3) f % f % f % 10 10 10 10 66 66 0 7 58 58 6 6 69 69 with 10 10 13 13 61 61 achievement You feel that 12 12 9 57 57 Strongly agree (5) f % 1 4 2 8 1 2 1 6 1 5 Mea n f % 0 2.84 7 3.35 7 3.08 0 2.83 7 2.96 other back-office staffs in other companies You feel your that current salary is suitable with your achievement You feel that your current welfare is suitable with your achievement You feel that salary increasing policy is suitable with your achievement You feel that payment policy is suitable your reward policy is suitable with Strongly disagree Statement Disagree (2) (1) f Somewha t agree Agree (4) (3) % f % f % 7 10 10 13 13 4 9 10 10 6 19 19 32 32 Strongly agree (5) f % 6 0 6 2 3 4 Mea n f % 10 10 3.49 15 15 3.75 9 3.15 your achievement Quality of supervision Your supervisor assigns task without caring about back-office staffs’ capability, education and experience, just depending on personal relationship Your supervisor assigns task without caring about back-office staffs’ capability, education and experience Your supervisor assigns task based on backoffice staffs’ capability, education experience and Strongly disagree Statement Disagree (2) (1) Your Somewha t agree Agree (4) (3) f % f % f % 5 8 17 17 11 11 14 14 26 26 Strongly agree (5) f % 5 4 4 6 Mea n f % 16 16 3.68 3 3.05 supervisor assigns task based on backoffice staffs’ capability, education and experience, assigns other back-office staffs to help and support back- office staffs’ work or adjust back-office staffs’ duty when necessary Your supervisor assigns task effectively, gives back-office staff a chance to improve capability, encourages backoffice staff to new tasks, and Strongly Statement disagree Disagree (2) (1) assigns Somewha t agree Agree (4) (3) f % f % f % 9 10 10 36 36 Strongly agree (5) f % 4 0 0 4 8 7 Mea n f % 5 3.22 0 2.55 0 3.40 0 2.71 other back-office staffs to help and support back- office staffs’ work or adjust back-office staffs’ duty when necessary Your superior is fair in treating back-office staff Company policy and administration Petrolimex Aviation recruitment policy is good Petrolimex Aviation health and social 11 11 23 23 66 66 0 8 44 44 7 22 22 64 64 insurance policy is effective Petrolimex Aviation promotion policy makes back- office staffs Strongly disagree Statement Disagree (2) (1) Somewha t agree (4) (3) f % f % f % 10 10 10 10 49 49 0 10 10 28 28 0 7 10 10 6 15 15 25 25 15 15 21 21 12 12 satisfied Petrolimex Aviation training Agree policy is good Petrolimex Strongly agree (5) f % 3 1 4 3 7 3 3 8 3 4 Mea n f % 0 3.01 19 19 3.71 10 10 3.86 16 16 3.43 18 18 3.19 Aviation organization structure is suitable and should be maintained Petrolimex Aviation financial policy is good Interpersonal relations In your department, people are trying to push responsibility, they are just in enthusiastic operation on cobased personal relationships In your department, some Strongly disagree Statement Disagree (2) (1) Somewha t agree Agree (4) (3) f % f % f % 12 12 25 25 23 23 12 12 27 27 21 21 Strongly agree (5) f % 2 6 2 8 Mea n f % 14 14 3.05 12 12 3.01 back-office staffs cooperate, some are not, or just try to push responsibility In your department, people all only cooperate within their scope of their duty, they not care about your working completion In your department, all people cooperate within scope their of their duty They will guide you to other departments if it is out of their duty, helping you complete your 10 Strongly disagree Statement Disagree (2) (1) job In Somewha t agree Agree (4) (3) f % f % f % 8 23 23 28 28 19 19 4 54 54 14 14 12 12 42 42 24 24 21 21 32 32 Strongly agree (5) f % 3 0 1 4 2 4 2 3 Mea n f % 11 11 3.13 9 2.90 8 3.00 0 2.54 your department, everybody is enthusiastic in helping your complete your work well In other departments, people are trying to push responsibility, they are just in enthusiastic operation on cobased personal relationships In other departments, some back-office staffs cooperate, some are not, or just try to push responsibility In other departments, all 11 Strongly disagree Statement Disagree (2) (1) people Somewha t agree Agree (4) (3) f % f % f % 16 16 13 13 43 43 14 14 15 15 43 43 Strongly agree (5) f % 2 1 2 2 Mea n f % 7 2.90 6 2.91 only cooperate within their scope of their duty, they not care about your working completion In other departments, all people cooperate within scope their of their duty They will guide you to other departments if it is out of their duty, helping you complete your job In other departments, people enthusiastic are in helping your complete your 12 Strongly disagree Statement Disagree (2) (1) Somewha t agree % f % recognizes 7 9 57 57 7 10 10 46 46 9 15 15 60 60 0 0 41 41 7 43 43 43 43 0 8 50 50 0 7 58 58 working effort The colleagues recognize your working effort The performance appraisal system (4) (3) f % f work well Achievement and recognition The supervisor your Agree Strongly agree (5) f % 1 8 3 7 9 4 4 7 4 2 2 8 Mea n f % 9 3.13 0 3.13 7 2.90 15 15 3.74 0 2.50 0 3.34 7 3.35 is effective Responsibility You understand the job description content You understand the standard performance content You understand the job specification content You feel satisfied with your clear responsibility when being assigned tasks 13 Strongly disagree Statement Disagree (2) (1) Somewha t agree Agree (4) (3) f % f % f % 0 11 11 50 50 0 0 41 41 Strongly agree (5) f % 3 9 4 4 3 7 1 8 1 0 2 7 Mea n f % 0 3.28 15 15 3.74 25 25 3.80 14 14 3.37 4 3.00 27 27 3.77 Work itself Your current work is interesting and challenging Advancement You have promotion opportunities when working at Petrolimex Aviation 10 Career training and development You feel acceptable the with professional 0 7 31 31 2 5 61 61 0 18 18 68 68 1 2 43 43 improvement opportunity The trainees are selected suitably The time duration of training is suitable The training course content is very effective and helpful 14 ... 1.1: In- depth interview In- depth interviewee Number Ex back-office staffs of Petrolimex Aviation Current back-office staffs of Petrolimex Aviation Information collected Ex back-office staffs? ?? assessment... results of 131 back-office staffs at Petrolimex Aviation and in- depth interviews with ex -back-office staffs and current back-office staffs, the thesis found that in generally, back-office staff motivation. ..NATIONAL ECONOMICS UNIVERSITY BUSINESS SCHOOL DAO DUY KHANH WORKING MOTIVATION OF BACK-OFFICE STAFFS IN PETROLIMEX AVIATION FUEL JSC MASTER OF BUSINESS ADMINISTRATION THESIS Supervisor: Dr Tran