LUẬN văn THẠC sĩ creating work motivation for sales staffs at truong hai automobile joint stock company

THEORY FRAMEWORK ON WORK MOTIVATION,

Concepts on work motivation

Nguyen Van Diem, M.A and Assoc.Prof.Dr Nguyen Ngoc Quan shared that

“Work motivation is defined as the worker’s desire and willingness to improve the efforts to fulfill the organization’s objectives.”

PhD Bui Anh Tuan from the National Economics University unveiled that:

“Work motivation is known as internal factors, motivating the persons to actively work in the allowable context to generate high performance and effectiveness.” Motivation is demonstrated by willingness, efforts and work passion to fulfill the objectives of organization and individual”

Although a series of concepts on work motivation are available, the personal internal factors are recognized as the key motivation It includes the motivated activities to impact the employee demand to facilitate their behavior changes towards the objectives that are oriented by the enterprise The work may be still completed even when the employee is not motivated However if the employee is demotivated or not motivated, he shall loss his work performance capacity and tend to far away from the organization

In fact, how the motivation is created by which way is depended on specific application regulation as a factor for the society development If motivation is created by benefits, it shall be impacted, excited and enhanced with effective work performance, expertise or specific functions.

Concept on work motivation

Work motivation refers to activities, (policies, measures, methods, etc.) applied to the employee to motivate them to engage and implement the assigned tasks with the highest performance to bring benefits for themselves and the organization and enterprise (Nguyen Van Diem, Nguyen Ngoc Quan, 2015)

Assoc.Prof.Dr Le Thanh Ha unveiled that: “Work motivating is defined as a collection of measures and behaviors of organization and manager to create the great desire and willingness for the employees to make them pay more efforts and strive to fulfill the objectives set by the organization Possible measures include financial and non-financial levers and the organization’s behavior demonstrated in such organization and how the employee is treated”

Therefore, work motivation may refer to the manager’s application of a set of management policies, measures and methods, affecting the employees to drive them in the work and obtain a higher job satisfaction and wish to make more contributions to the organizations and enterprises

Work motivation is not inherent in each person It is regularly varied At this point of time, the work motivation is high but relatively or surely unavailable in the employee sometimes In different status and circumstances, the work motivation shall be differently developed For this reason, the manager can intervene and impact the employees to successfully drive their work efforts.

Necessity of motivating employees

Motivating employees is attached with extremely significant role and recognized with high efficiency for the concerned employees, each enterprise and the social benefits

Motivating helps the employees to perfect themselves and have more work initiatives When the employees are motivated, they shall make more efforts to study and draw lesson to improve the knowledge Motivating helps the employees to work enthusiastically and devoted to their work, then they shall be more associated, whole-hearted and devoted to the enterprise, offering more added values and personal development opportunities

Motivating improves the organization’s productivity, business performance, cost effectiveness and facilitates the corporate development Moreover, motivating creates the engagement between the employees and enterprise, retains and attracts the talents, enhancing the enterprise’s competitiveness

Work motivation is known as a pre-requisite to successfully improve the personal productivity and organizational business performance, facilitating the economy growth, civilized social development and political stability

In short, work motivation for employees is put on the top priority for each manager It is not only a task but also obligation towards their employees.

Work motivation-related theories

The psychologist Abraham Maslow revealed that: The employees are characterized by a trapezoid hierarchy of needs, concretely: physiological needs, safety needs, love and belongingness needs, esteem needs and self-actualization needs

Figure 1.1: Maslow’s hierarchy of needs

(Source: Human resources management course books (2012) - Assoc.Prf Le Thanh

Ha - Labor and Social Publisher) Among five needs mentioned above, physiological needs are the most basic needs of the human beings The physiological needs include the most basic and essential needs for the human survival It includes needs of: eating, clothing, accommodation, traveling and others

Next is safety needs which are stable and reliable Persons wish to be protected against uncertainty or self-protection

Love and belongingness needs are one of the senior needs of the human beings It includes communication and talking with other persons to demonstrate and accept the feelings, caring, needs of sharing the love, etc

The higher hierarchy is esteem needs In addition to the needs to communicate and talk with other person, the persons also wish to be respected and recognized with their social standing

The highest hierarchy is self-actualization needs, self-development and self- affirmation needs The persons wish to realize their personal potential They always wish to be more perfect

Maslow unveiled that: In principles, whenever needs among such needs are satisfied, then the next needs shall become the most important one Personal need satisfaction is originated from the lowest needs The top needs only appear when the bottom needs are successfully satisfied Need satisfaction is characterized by bottom-to-top hierarchy Although no needs are fully satisfied in practice, the basically satisfied needs shall not motivate the person any more That is why the manager wants to motivate their employees Firstly, the manager is required to thoroughly understand where such employees stand in the hierarchy of needs, then orient towards their need satisfaction so that the highest result may be obtained by the motivation policy

Herzberg assumed that a personal relation with the job is the basic factor and the job success may be decided by the personal attitude towards the job Herzberg thoroughly reviewed the question “What do you want from your job?” Satisfaction and dissatisfaction factors were divided into two groups by Herzberg through his study, concretely:

Group 1: Motivational factors include the key factors for job motivation and satisfaction such as: recognition, sense of achievement, job nature, job responsibility and promotion When such factors are absent, the employees shall demonstrate their dissatisfaction, laziness and ineffective working Herzberg assumed that such are “satisfactory factors” for the motivational factors When such factors are successfully satisfied, motivation shall be created, i.e., job satisfaction

Second group: Hygiene factors include the external factors beyond the job, required to maintain the effective working status and prevent the unexpected outcomes incurred by the employees such as: Enterprise’s management policies and regulations, job supervision, salary, interpersonal relationship, working condition, position and stable job There is a thing to be noted that even when such factors are highly satisfied, no motivation can be made However, when the hygiene factors are not assured, the employees shall be bored, dissatisfied, and demotivated to work It is so-called as “dissatisfaction factors” that cannot release any job motivation as what referred to by Herzberg

(Source: (Nguyen Van Diem, Nguyen Ngoc Quan, 2015)

Such theory helps the manager to know which factors causing dissatisfaction for the employee and how to eliminate such factors However when the dissatisfaction factors are removed, it does not mean that the employees are satisfied If it is required to motivate and satisfy the employees, the manager shall focus on hygiene factors such as success, recognition and duty assignment

Therefore, the satisfaction reasons are originated from the job contents while the dissatisfaction factors are derived from the working environment That is why in order to drive each employee; both working environment and job must be impacted by the manager

Employees are dissatisfied and demotivated

Employees are satisfied and motivated

Ma in ten an ce fact o r En cou ra ge m en t factor

Employees are not dissatisfied and still demotivated

1.4.3 Skinner's Reinforcement Theory of Motivation

Skinner assumed that the bonus or punitive tools are used to enhance or restrict the personal behaviors Concretely:

 Inherited behaviors tend to be repeated while the non-bonus or punitive behaviors shall be gradually eliminated

 The closer the interval between the behavior and bonus and punishment behavior is, the higher the behavior change impact shall be

 Punishment restricts the managers’ unexpected behaviors and possibly causes negative enforcement (such as reaction of employees, etc.), hence, it is less effective than the bonus

Managers should apply various methods to award the employees Criticism must be personalized, constructive and integrated with praise or award

It is found that in order to motivate the employees, the employees’ awareness must be improved so that they may see that their personal efforts shall offer the expected bonus In order to do so, in addition to interwoven reward and punishment, the manager must create a good working environment, making the employees to satisfy with the current working status, satisfying with the support from the leaders and colleagues, etc Then, the employees shall be more trusted into their efforts, managers and enthusiastic to work with high performance

1.4.4 John Stacey Adams' equity theory

Adams’ theory assumed that the employees compare what they have spent on a task (input) against those they have received from such task (output) (so-called as personal equity) and then their input-output rate against input-output rate of other persons (so-called as social equity) If their rate is equal to that of other persons, equity status shall be available If such rate is not equal, inequitable status shall be found When the inequitable conditions exist, the employees shall make great efforts to correct it

According to this theory, if the equity is created in the organization, the interpersonal relationship shall be much more cemented to the organization, the employees shall be motivated and satisfied, and then they shall be much more loyal and strongly attached to the organization Vice versa, when each individual feels that what he contributes is bigger than that he receives; he is no longer enthusiastic and devoted to the work Then, each individual shall compare and evaluate his contribution and devotion against his received treatment and bonus Three cases may be occurred as follows:

- First: If the employees assume that they are not well treated and the bonus is not deserved with their efforts, they shall be dissatisfied, resulting in the fact that they shall not work with their highest capacity In the serious case, they may disturb or leave to find a new job

- Second: If the employees believe that they are well treated, the bonus and treatment are deserved to their efforts, they shall maintain their productivity as before

- Third: If the employees recognize that the bonus and treatment are higher than their expected things, they shall work in a a harder and more active manner In this case, however, they tend to reduce the bonus value, disregard the bonus and such bonus shall be meaningless for the long run

Factors affecting the employees’ work motivation

How do employees feel when they receive unexpected job? Vice versa, how do they feel when an offered job is suitable with their capacity and hobbies? The employees’ labor productivity and performance shall be significantly affected by such issues When a suitable job to be well matched with the employees’ capacity and strength is offered, the employees shall maximize the job even in the most normal status Challenging jobs shall be a good opportunity for the employees The employees shall be more satisfied and contented when the corporate policies such as salary, bonus, allowances and benefits are suitable with their demand However, the material demand is found in every employee Some employees like money, but other loves job freedom and traveling to many places, etc Therefore, personal characteristics must be considered to design the most feasible jobs for the employees

Training: refers to studying activities to help the employees to successfully fulfill their assigned functions and missions Such studying makes the employees to master their assigned tasks It includes the studying activities to improve the employee qualification and skills to help them work in a more effective manner

Promotion: refers to the movement to the important position or work in a company Promotion facilitates the personal development, enhances the prestige and power of employees Promotion policy means personal self-actualization Promoted employees mean that they hit a new progress in work, their capacity is improved and their power and remuneration are also increased

Training is grouped with promotion because the training ultimately aims to promotion or improvement of employees’ working capacity and performance

Satisfaction of employees’ training and development demand shall motivate the employees to outperform, obtain better achievements and wish to be assigned with more challenging tasks with higher promotion opportunities Therefore, training is considered to be the basic factor to satisfy the organization’s strategic objectives

The employee quality becomes one of the enterprises’ competitive advantages

Therefore, training and promotion policies should be paid with special attention to enhance the personal development

When salary is satisfied with the basic physical demand, other spiritual demands are often required It includes the friendly intrapersonal communication

Employees working for an enterprise not only work alone but in a group That is why, the job relationships are the big factor, significantly affecting the employees Good colleague relationship releases a good group spirit, creating a friendly atmosphere and the company members may help each other to work and others Accordingly, labor productivity is improved Communication demand is often embedded with a part of self-respect Then, it must be externally satisfied by the managers and the self-respect demand is most demonstrated when the employees exist in an organization Hence, they wish to become a member of some social groups, either official or unofficial such as some people work to remarkably facilitate the friend and social relationship demand satisfaction

Income refers to an amount of money obtained from a work done for an enterprise or organization Such income excludes incomes when other works are involved (regardless of enterprise or employer) Accordingly, such income includes basic salary, allowances (if any), bonus, including periodic or unexpected bonus, commission (if any) and other cash-based benefits directly originated from the main current tasks

Labor remuneration is one of the most challenging issues for the managers of any enterprises Enterprises are often characterized by various viewpoints and objectives when the payroll system is designed Generally, four basic objectives are aimed by the enterprises, including:

Employee acquisition: Salary recommended by the enterprise is one of the most basic factors for candidates to decide whether the employment is taken or not

The higher the salary is, the better opportunity of acquiring talent shall be

Talent retaining: In order to successfully retain the talents for the enterprises, high salary is insufficient but the internal equity must be required When it is found that the salary is not equally paid by the enterprise, the employees shall feel discomfort, stress and bored, even leave the enterprise behind

Employee motivation and encouragement: If corporate management policies and activities are taken that the concerned employees recognize that their efforts, hardworking and outperformance are not well treated; they shall not make any efforts, gradually becoming inactivity and passiveness in any tasks launched by the enterprise

Responsiveness to legal requirements: The basic legal issues related to salary in the enterprises focus on following pillars: Regulations on basic salary, working time and conditions, regulations on child labor, salary-embedded allowances, and regulations on social welfare such as social insurance, illness, materiality, labor accident

How should we do to make salary and bonus become great drive for employees? Some employee motivation measures are recommended as follows:

Salary must be qualified to reproduce the labor It means that salary must be sufficient for the employees to nurture themselves and their family in the basic level

This is the most basic feature to be covered by the employer Then, the basic conditions may be qualified to help the employees to be more motivated in working

Salary must be accounted for 70%-80% of total income of employees Salary must be closely cemented with work volume and quality offered by the employees

Then, the equity in social product distribution may be assured As a result, the great trust and effort from employees may be generated because they find that what they are receiving is deserved with what they contribute to the enterprise

Bonus must be accounted for 20%-80% of total income of employees If such principle is satisfied by bonus, the employees shall be closely associated with the labor production If the bonus is too high, it shall lead to the fact that the employees follow the bonus, reducing salary motivation in the enterprises

Bonus volume must be meaningful to the life It must satisfy some expectation of employees The higher the expectation is, the bigger the bonus motivation shall be

Salary and bonus are one of physical factors for the employees Successful application of such policy is one of the key factors to effective employee motivation

Welfare refers to the benefits obtained from the enterprise in addition to salary monthly received by the employees Welfare is assigned with great significance in determining the job satisfaction Firstly, welfare is a constituent of remuneration payable to employees Job satisfaction is largely affected by such remuneration

Secondly, welfare sometimes replaces the salary In Vietnam, welfare mostly concerned by the employees includes social insurance, health insurance, severance insurance, legal leave, sick leave and leave for personal affairs upon demand, legal benefit protection by trade union, annual traveling, long-term stable employment in the company (without fear of job loss), support for house purchase, company’s share acquisition rights with preference price, etc

Welfare demonstrates the enterprise’s concern to the employees’ life, enhancing the employees’ loyalty and involvement to the enterprise Corporate welfare includes: Social insurance and health insurance; retirement; paid leave, public holiday; lunch paid by enterprise; allowance to employees with many children or difficulties; corporate gift for employees on the occasion of birthday and wedding

Some enterprises’ experience in work motivation and lesson for Truong

1.6.1 Experience of Sai Gon Mechanical Electrical Joint Stock Company

Nguyen Thi Minh Phương (2015), “Work motivation of office staffs in IshigakiVietnam”, Master thesis, University of Social labor As a player with not too long history of development, over 8 years of operation is also a great effort and success of the company In order to do so, the company has also focused on developing human resources and HR motivation, concretely:

Salary: Salary is designed by the assigned tasks and work performance implemented by the employees Semi-annual work performance is reviewed to use as the basis for salary increase through comments and evaluation of the direct managers

Salary for fulfillment of assigned tasks is 100% Percent (%) of received salary is depended on % task fulfillment according to the evaluation on personal performance at the end of each month In addition to salary, the satisfactory bonus policies are also applied to motivate its employees Bonus for public holidays and New Year Festivals applied for each employee is VND 200,000/employee and work performance bonus varies within the range of VND 500,000 - VND 1,000,000/task fulfillment As being listed in the stock exchange, the share-based bonus policy is applied and the talent is allowed to acquire the corporate shares with preference price Particularly, the acquisition level reduces 30% - 50% of the Company’s share value as of bonus date

After one year of operation, the employee motivation review is held to draw out the conclusions on fulfillment and perfecting the weakness in work motivation in terms of working environment and benefits of the Company

The Company's motivation success obtained in 2013 was described as follows:

Average income increased 1.4 times against that in 2012

Average monthly income of 2012 was VND 3,500,000/person/month

Up to 2013, the average income of employees was VND 5,000,000/person/month

The attachment percent (%) of employees also increased higher than that in

2012 Number of retired employees reduced for a half 2012 was recorded with 20 retired employees (due to salary lower than that of new job position) AT the end of

2013, number of retired employees was only 5 persons

Such achievement was successfully obtained by launching the salary-based motivation policies and price deflation of market price that was timely balance with the basic salary to retain the employees, reducing the salary competition offered by the competitors

Moreover, two specific benefits were released by the share-based bonus policies, concretely: Increasing shareholdings, increasing working financial resources of the Company, creating the Company’s benefits in close attachment with benefits of each person holding the Company's shares, etc This was the new and creative point barely initiated by the Company, resulting in certain successes This is a way recommended for the enterprises to find how to successfully motivate the employees

1.6.2 Experience of Coca-Cola Beverages Vietnam Limited

Nguyen Thi Minh Phương (2015), “Work motivation of office staffs in IshigakiVietnam”, Master thesis, University of Social labor Coca-Cola Beverages Vietnam Limited is known as a 100% investment capital company from Coca-Cola Group, one of the world leading multinational groups As one of big beverages producers with big market share, the employees are also characterized by various age and background The Company is recorded with a young, enthusiastic and dynamic staff, working in the professional environment, being facilitated and offered with the best conditions for the personal development, resulting in high work performance In order to obtain such sustainable development, Coca-Cola Group in general and Coca- Cola Beverages Vietnam Limited in particular extremely outperform the work motivation in the concerned fields, concretely:

Proper duty assignment: Staff is often rotated to various positions to find out the most suitable field for them to retain the talent This helps the Company to be more facilitated during labor arrangement and obtain the competitive advantages in terms of human resources as well as product quality and selling price

Development of diversified and talent staff: The enterprise pursuits the objectives: creating the good working enterprise where diversified and talent staff is successfully acquired, development and retained Each individual is encouraged to develop the expertise and strength, help any users to enhance their creativeness and enthusiastic in the business activities

Fair working environment: Coca-Cola extremely prohibits child labor in business activities and those launched by the suppliers The fair working environment is always offered to any members Everyone is provided with the promotion opportunities if his capacity is affirmed

Employee acquisition: When the corporate structure is changed, they strive to openly communicate with employees about what they are doing, why and how it affects The Company also looks for feedback and respond to any questions

A greater concern is paid to the working attitude and feedback from employees Coca-Cola employees may show their viewpoint through various channels

Claim handling process is always available for all employees by general contract agreements

Results obtained by Coca-Cola include coverage cover 200 countries, revenue of US$ 48 billion in 2012, equivalent to a 70 th economy in the world, next to Slovenia and Costa Rica In the territory of Vietnam, number of employees working for Coca- Cola Vietnam is over 16,000 persons HR employment and training of Coca-Cola Vietnam are recognized as the precious lesson for the categories to learn and draw out the precious lessons

1.6.3 Lesson for Truong Hai Automobile Joint Stock Company

Motivation experiences from some companies unveiled partial effectiveness of work motivation The lessons are drawn out for Truong Hai Automobile Joint Stock Company, concretely:

In order to create the high quality and stable human resources, the work motivation must be actively launched by the Company

In order to successfully retain the talent, the suitable and standardized salary, bonus and treatment policies must be designed and developed, ensuring the fully physical conditions for the employees, motivating them to work, inspiring the work so that the employees may optimize any working possibilities to obtain the highest performance

Moreover, the close attachment must be created between the employees and company, both physically and spiritually: such as employee benefit must be closely linked with the Company’s business performance The Company’s objectives must be widely disseminated and supported by specific benefits offered to the employees when such objectives are successfully fulfilled It is required to develop the proper award and encouragement system to facilitate the employees to be more creative in working, releasing the reformation initiatives, improving the work performance and product quality

Employees are encouraged to contribute viewpoints and recommend the solutions to develop enterprise, renovate the work and their benefit-related issues, ensuring the democracy in the Company

Summary of Chapter 1: Chapter 1 presents the panorama of literature review on concepts, factors affecting the work motivation and its related contents

Through the theories on job satisfaction of employees released by the Vietnamese and international authors, it is used as the reliable background to analyze the existing status and launch the onsite survey to recommend the work motivation solutions for sales staff in Truong Hai Automobile Joint Stock Company to facilitate the corporate development.

RESEARCH METHODOLOGY

Research methodology

Phỏng vấn thử Tham khảo ý kiến Điều chỉnh bảng hỏi

Figure 2.1: Survey and investigation procedure

Questionnaire is designed through steps:

Step 1: Design the questionnaire in accordance with the factors affecting the work motivation, job satisfaction of sale staff

Step 2: Before survey, consult the management, HR department and conduct trial interview with 10 sales staff from Sales Department to verify whether the the questionnaire contents are suitable

Step 3: Correct the questionnaire contents properly before the survey is launched

Conduct trial interview Consult the viewpoint

Prepare the list of sale staff 150 questionnaires were delivered to respondents

Re-collect the responded questionnaires and check whether the questions in the questionnaire are left and the questionnaires are valid

Collect the primary data sources: Questionnaire, interview questions Collect the secondary data sources: the Company's financial statements, regulations, by-laws, review report, treatment policies, welfare regulations, HR report, HR change analysis

Data collection period: From 2015 to 2018 Summarize the results in the questionnaire as analysis and evaluation basis

Interview was conducted for 2 subjects, namely retired and ongoing sale staff of the Company to further clarify the items fully uncovered by the questionnaire as the basis to explain and prove the quantitative data obtained by the study

Collected data was summarized, classified and analyzed; analysis - comparison was conducted to summarize the results.

Research process

Step 1: Study assumption Step 2: Literature review of the study Step 3: Draft scale

Step 4: Primary interview and consultation Step 5: Scale adjustment

Step 6: Official scale Step 7: Survey and investigation Step 8: Data collection and analysis Step 9: Preparation of study report

Study assumption

This study is based on Job Descriptive Index (JDI) scale, including: Job attractiveness, promotion and training, working relationship, income, welfare, reward and recognition policies, working environment, brand and corporate culture, leadership style to measure the employees’ job satisfaction

Figure 2.2: Factors affecting the employees’ work motivation

- What are factors affecting the employees’ work motivation?

- How does each factor affect?

- The employees’ work motivation is improved by which way?

Scale design

Scale used in the questionnaire is mainly 5-point Likert scale, varying from

“Very dissatisfied” to “Very satisfied” The 5-point Likert scale is used to measure the observation variables of independent and dependent variables One of 5 points is selected by the respondent, concretely:

Job attractiveness Income, welfare Leadership style

Work relationship Brand, corporate culture

5 Very satisfied Moreover, the nominal scale is applied in the questionnaire to measure the personal data variables related to the employees such as: full name, gender, age, qualification, service length

Table 2.1: Personal data PERSONAL DATA

The scale is used to measure the employees’ work motivation:

1 The job is suitable with your personality and capacity 1-2-3-4-5

2 The job inspires the great passion and interest 1-2-3-4-5

3 Your job is extremely challenging 1-2-3-4-5

4 Your job helps to discover your personal capacity 1-2-3-4-5

5 Proper duty assignment is applied 1-2-3-4-5

Table 2.3: Promotion opportunities and training scale

6 Specific development and promotion road map is applied by the

7 Promotion opportunities are always offered to the qualified persons 1-2-3-4-5

8 The promotion opportunities are clear, public and transparent 1-2-3-4-5

9 Training is fully organized to outperform the job and develop the expertise 1-2-3-4-5

10 Training are characterized by proper learners, qualification and contents 1-2-3-4-5

11 Training courses help you to successfully improve the expertise, confidence and smart communication in work handling 1-2-3-4-5

12 The job helps you to enhance the relationships with various friends, colleagues and partners 1-2-3-4-5

13 The job helps you to enhance the relationships with various entrepreneurs, agencies and industries 1-2-3-4-5

14 The job helps you to successfully develop the sustainable relations with friends, colleagues and mutual support in the job and life 1-2-3-4-5

Table 2.5: Income and welfare scale

15 Current salary is suitable with your capacity and contributions to the Company 1-2-3-4-5

16 The Company’s business bonus policies are clear, fair and deserved to your achievements 1-2-3-4-5

17 Traveling allowances ensure the actual spending 1-2-3-4-5

18 Treatment policies focus on health, spirit and living demand of the employees 1-2-3-4-5

19 Welfare policies demonstrate the Company’s great concern on its officials and employees 1-2-3-4-5

20 Welfare policies encourage the employee’s long-time attachment to the Company 1-2-3-4-5

Table 2.6: Award and recognition policy scale

21 Award policy is deserved with the employee’s work performance, achievement and contributions 1-2-3-4-5

22 Award policy is public, clear, transparent and timely 1-2-3-4-5

23 The employee’s working capacity and performance are properly recognized by the leaders 1-2-3-4-5

24 The award and recognition policies are consistently applied by the

25 The Company’s bonus level is suitable with the premise in the automobile business market 1-2-3-4-5

26 Working equipment and tools are fully provided by the Company 1-2-3-4-5

27 The colleagues are easy-going, open-hearted and reliable 1-2-3-4-5

28 The colleagues are available to share experience and support to outperform the assigned tasks 1-2-3-4-5

29 The working style is professional and friendly 1-2-3-4-5

30 The employee’s initiatives are attentively listened and recognized to renovate the work 1-2-3-4-5

Table 2.8: Brand and corporate culture scale

31 You are proud about the Company’s brand 1-2-3-4-5

32 You are proud to be a member of the Company 1-2-3-4-5

33 Sustainable business development strategy is applied by the

34 Premium products and services are always offered to the highest satisfaction of the customer and the society 1-2-3-4-5

35 You loves and takes pride about the corporate culture 1-2-3-4-5

36 You are happy to realize that the corporate culture is highly appreciated by the customers and partners 1-2-3-4-5

37 Employee’s contributions and devotion are always recognized by the managers 1-2-3-4-5

38 The managers respect and treat employees, fairly 1-2-3-4-5

39 The managers train, instruct, consult and support the employees to outperform the assigned tasks 1-2-3-4-5

40 The managers always listen and recognize the employee’s comments 1-2-3-4-5

41 The managers are always smart and sophisticated when criticism is made 1-2-3-4-5

42 The managers inspire and motivate the employees to outperform the assigned tasks 1-2-3-4-5

43 The managers always protect the legitimate benefits of employees 1-2-3-4-5

44 Any questions may be openly exchanged and shared with your managers 1-2-3-4-5

 Work motivation and working attitude of employees

Table 2.10: Employees’ work motivation scale

45 You always make the greatest effort to outperform the assigned tasks in any circumstances 1-2-3-4-5

46 You are available to take far business trip when the superior’s rotation order is approved to move to other internal entity to work 1-2-3-4-5

47 You are active to learn and willing to join the in-depth training courses to improve the qualification 1-2-3-4-5

You are always aware of strictly adhering to the Company's regulations, by-laws and well integrating with the corporate culture

49 You always prepare the specific working schedule and objectives 1-2-3-4-5

Please, arrange the factors affecting employee’s work motivation from top-to-bottom priority (from 1 to 8):

Summary of Chapter 2: This Chapter describes the research methodology and procedures, including: scale design, survey and investigation, interview and data analysis methods after the results are collected.

EXISTING STATUS OF MOTIVATING SALE STAFF IN

Introduce of Truong Hai Auto Corporation

3.1.1 Overview of Truong Hai Auto Corporation

Coporate name: Truong Hai Auto Corporation (THACO)

Charter capital: USD 750 millions Market capitalization: USD 6 millions Headquarter: 10 Mai Chi Tho, An Loi Dong Ward, District 2,

Employees: 18,000 persons Founder – Chairman: Mr Tran Ba Duong Logo:

Slogan: Improve new – To Future the Future

 1997: Established as an Automotive Trading & Services Company Ltd

 2004: Started assembling trucks in the new factory (Thaco Truck) in Chu Lai Industrial Park

 2007: Established KIA Assembling Factory (Thaco KIA)

 2007: Equitized to Truong Hai Auto Corporation

 2008: Established Infrastructure Development Company (Thaco IZD)

 2011: Established Bus Manufacturing Factory (Thaco Bus) and Mazda

 2012: Established Port Operations Company and acquired Special Vehicles

Manufacturing Company (SMT in Korea)

 2017: Established Mazda Assembling Factory Mazda largest in Southeast Asia

Multi–industry corporation automobile and mechanics as core bussiness Develop complementary professions including: investment and construction, logistics, agricul ture, commerce and service

Delivering values to customers and society and making substantial contribution to the economy

Having good mind and mature:

 Our responsibility is to create a good mind Company in contributing to the social development and improving the living quality of the employees and communities Furthermore, it is required to raise the Mature to become the regional leading universal industrial group (which automobile manufacturing and its supporting industries are the reliable background) with high and sustainable growth rate, orienting towards the regional leading position; involving in contributing the human resources and materials to the socio-economic and cultural development of Vietnam and Vietnamese automobile engineering industry

 The Company-labeled culture is developed with great Mind and Mature

Accordingly, Mind is the internal cultural force and Mature illustrates the culture via product

DEDICATION: Work wholeheartedly and responsibly with everyone and the company Be responsible for yourself, your family, colleagues, companies and products

HONESTY: Be honest with yourself; Take responsibility for any mistake or failure to get the tasks done; Being truthful and ready to defend what is right

INTELLIGENCE: Learn to improve your knowledge, think and act independently; Be creative in your respective fields; Practice the behavior culture

CONFIDENCE: Act confidently for the company development; Be self- confidence in work and communication

RESPECT: Prioritize company interests over the personal interests; respect the collective, customers, supervisors and colleagues through daily behaviors

PRESTIGE Be loyal to the company; keep promise with colleagues and customers;

ENTHUSIASM: Listen patiently to the opinions of supervisors, colleagues, and customers; Be dedicated to work and company’s development; Be kind and loyal to everyone;

CONVENIENCE: Cultivate a favorable and effective collaboration with colleagues in the company; Be friendly to facilitate mutual communication

3.1.9 Business performance results Thaco’s Sales performance

Existing status on work motivation of sale staff

3.2.1 Salary and salary-based allowances

Salary of sale staff is paid in accordance with the title hierarchy, including positions: Apprentice, sales advisor, sales team leader, Deputy Sales Manager, Sales Manager

Deputy Sales Manager Main official

Sale staff except for the manager, i.e., Deputy Sales Manager, Sales Manager shall be assigned with the alternative sales duty schedule at Automobile Showroom after finishing the working hours from 17.00 o’clock to 18.00 o’clock and Sundays

Employees to be on duty on Sunday shall not be paid but enjoyed with a day-off for compensation on other working days

Annual HR review is conducted to evaluate the work performance obtained in the year, determine the training programs, development schedule for each person and act as the basis to increase the salary scale

Salary = Salary scale by manday + Leave payroll + Salary in the public holidays and New Year Festivals + Allowances

 Manday-based salary scale: calculated by number of actual working days in the month

 Leave payroll: Annual leave is paid right in the concerned month when the annual leave is applied by the employees The payment is 70% of salary scale Number of unused leave days shall be settled and paid in accordance with the actual salary scale at the end of the year

Every further 5 years of service is added with 1 paid leave day

 Payroll in public holidays and New Year Festival:

+ Employees with salary scale less than VND 11 million shall be enjoyed with 50% of salary scale

+ Employees with salary scale over VND 11 million shall be enjoyed with 100% of salary scale

+ Duty allowance: 10%- 20% of salary scale as the case may be

+ Allowance for service length: 5% and 10% of salary scale for

5 -10 years and over 10 years, respectively + Petrol allowance: 25 liters of petrol/month applied for the employees with over 20km distance from home to the Company

Bonus salary is comprised of: 13 th monthly salary bonus and bonus by sale performance

 13 th monthly salary bonus: The bonus shall be applied, corresponding to the ratings in accordance with the annual ratings (Excellent, Good,

Fairy Good, Fairy Average and Average)

+ Applied for positions of: apprentice, sales advisor, sales team leader + Not applied for positions of Sales Manager and Deputy Sales Manager

+ Bonus for Sales Department Bonus is divided to each individual by contribution

Bonus fund = (Bonus norm * Vehicle sales) – Income salary fund

Bonus division to individual = Bonus fund * contribution percent (%)

+ Bonus norm: sales commission per vehicle Such norm is monthly designed by market factor in accordance with the income premise of sales staff from other companies

+ Vehicle sales: it refers to vehicles sold to the customer and liabilities are successfully collected

+ Income salary fund: It refers to total salary actually working by man-day of all sale employees in accordance with the bonus policy

+ Contribution percent (%): It is based on KPI of each individual, including criteria: Fulfillment of sales criteria, customer satisfaction percent, product knowledge, training, working attitude, compliance to the Company’s regulations and rules

Regulations on social insurance, health insurance, severance insurance and maternal treatment are fully complied as prescribed by the State

Annual health examination is organized for all staff and employees

Lunch is offered to ensure the food safety and hygiene and lunch time for the employees

Gifts are delivered on the occasions of the international Women’ Day (8 March) and the Universal Children's Day (1 June)

Entertainment, recreation, tourism and sport activities are not launched by the Company

Compliments are offered to the illness, funeral and wedding occasion as follows:

Cash In kind Cash In kind

Deadth of official and employee

VND 5,000,000 (Payment for last respects to the deceased)

VND 2,000,000 (Payment for last respects to the deceased)

Death of family relative (parents, parents in-law, wife/husband, children)

VND 1,000,000 (Payment for last respects to the deceased)

Support treatment for unexpected difficulties:

Allowances for unexpected difficulties Trade union member Employee

The employee is contracted with fatal disease or disaster, risks, resulting in economic difficulties

The employee's family (wife/husband, natural children, natural parents directly nurtured by the employee) is difficult, risky and contracted with disease, resulting in economic difficulties

Annual award is offered to children of Trade union members and employees with excellent work performance in study and life The award level is VND 1 million/child

The Company applies the funeral support regulations in accordance with the group-based mutual support (deducted to salary of the Company’s employees) and the Company’s supporting regulations, namely parents, parents in-law, natural children, official wife/husband, adopted parents, adopted child (recognized by the laws) Accordingly:

Less than VND 8 million VND 5,000 million/time

From VND 8 million to less than VND 25 million VND 10,000 million/time

From VND 25 million to less than VND

VND 45 million or more VND 40,000 million/time

 Death of parents, parents in-law, natural children:

Support level = Income salary scale * KPI * Service length coefficient * 70%

Support level = Income salary scale * Service length coefficient * 100%

KPI: Rated by HR evaluation

Service length coefficient: Calculated by the time since date of adhesion to the Company

The background training is held for the new employees, including:

 Training course on working environment integration

 Training course on working regulations and rules

 Knowledge about automobile products and rivals

 Knowledge about sales and delivery procedure

 Sales software use skills and reporting

 Sales skills, negotiation skills and problem-solving skills The ongoing employees are often offered with training and examination on new product knowledge, marketing and sales soft skills The Sales Manager and Deputy Sales Managers are provided with in-depth training courses on HR management skills, sales skills and issued with certificate by the professional training institutions

The employees assigned to overseas study must sign the employment commitment with the Company at least 2 years since the date of course adhesion If

2 year service is not assured, the employees shall compensate for all expenses of the join training course

Moreover, the annual training and issuance of certificate on labor safety and fire safety for all officials and employees by the Company

The officials and employees are clearly planned with the development and promotion road map from very early days The sales staff shall be developed from the position of Sales Advisor  Sales team leader  Deputy Sales Manager  Sales Manager  Sales Director  Branch Director

The annual HR evaluation and staffing are conducted in accordance with the Company’s organizational structure to be well matched with the actual business conditions Through that, it is assumed to plan the managerial levels and give out the promotion road map, required training courses to successfully satisfy the Company’s development requirements

3.2.6 Working environment and corporate culture

The discipline is emphasized in fulfilling the Company’s regulations and rules, including: working hours, uniform, entering and exiting of the Company during working hours (officials and employees including sale staff must prepare the

“Delivery Note” confirmed by the managers, specifying the reasons and time for going out), working attitude, operating attitude and 5S Violations repeated for over

3 consecutive times shall be disciplined in writing in front of the Company If it is still repeated, the highest discipline, i.e., dismissal, shall be applied

Main findings

Employees are fully provided with working equipment, tools and instruments

The working space is well ventilated, comfort and clean

The work performance aims to the overall benefits of the team and group, hence, the working competitiveness and individualization are restricted

As the work contacts with various customers with different personalities, the employees are facilitated to expand the relationship with friends and partners, offering a series of benefits in working and the life as well However, it requires the smart and good communication skills to obtain the great success

The colleagues are friendly, open-hearted, and mutual respected and sharing

This is considered as the Company’s strengths when the collective and united corporate culture

Figure 3.1: Labor structure by gender of sale staff

(Source: Statistics at Thaco in Ha Noi area)

The Company’s gender-based labor structure unveiled that the number of male sale staff makes up the majority against total sale staff, fulfilling 72%

For the automobile business sector, the Company's gender-based labor structure is completely proper

Figure 3.2: Labor structure by age of sale staff

(Source: Statistics at Thaco in Ha Noi area)

Most of the Company's sale staff is under young working age, mainly 25-35 years old The age of 25-30 years old makes up the highest percent (%) with 52%, the second is 31-35 years old, accounting for 30%, the third is over 35 years old, accounting for 14% and the fourth is less than 25 years old, accounting for 5%

Figure 3.3: Labor structure by qualification

(Source: Statistics at Thaco in Ha Noi area)

Sale staff qualification is characterized by mainly university, accounting for 82%, next is the postgraduates, accounting for 10% and the colleges accounting for 8%

Figure 3.4: Labor structure by service length

(Source: Statistics at Thaco in Ha Noi area)

Service length of sale staff is mainly 1-3 years, accounting for 48%, next is less than 1 year, accounting for 37% This corresponds to the working age of sales staff who are mainly young It also unveils that their strong attachment to the Company is not really high

Figure 3.5: Labor structure by income

(Source: Statistics at Thaco in Ha Noi area)

Sale staff’s income mainly varies within the range of VND 16 million - VND

20 million, accounting for 41%, next is the group fo VND 11 million - VND 15 million, accounting for 30% The highest income within the range of VND 26 million - VND 30 million makes up a small proportion, only 3%

3.3.6 Statistics of factors affecting the work motivation

150 questionnaires were delivered by the author After screening, 120 valid questionnaires were collected with statistic results as follows:

Table 3.1: Sale staff’s evaluation on job attractiveness Content

1 The job is suitable with your personality and capacity 0.5% 8.3% 29.2% 62.0% 0.0%

2 The job inspires the great passion and interest 0.0% 1.7% 48.3% 50.0% 0.0%

3 Your job is extremely challenging 1.5% 2.5% 20.8% 70.2% 5.0%

4 Your job helps to discover your personal capacity 0.0% 0.8% 40.0% 49.2% 10.0%

5 Proper duty assignment is applied 2.0% 5.2% 30.8% 55.0% 7.0%

(Source: 2018 survey findings of the author)

Most of sale staff was satisfied with the current job However, approximately 50% of total respondents evaluated that they were not really inspired by the job

This was one of important factor to be concerned to contribute to improve the work motivation for the employees

Table 3.2: Sale staff’s evaluation on promotion opportunities and training

Content Very dissatisfied Dissatisfied Unsure Satisfied Very satisfied

Specific development and promotion road map is applied by the Company

Promotion opportunities are always offered to the qualified persons

The promotion opportunities are clear, public and transparent

Training is fully organized to outperform the job and develop the expertise

Training are characterized by proper learners, qualification and contents

Training courses help you to successfully improve the expertise, confidence and smart communication in work handling

(Source: 2018 survey findings of the author)

The highest satisfaction was recorded in the factor that the training is fully, properly organized, accounting for the percent (%) of 53% - 56%

The highest dissatisfaction was recorded for the promotion opportunities, making up nearly 32%

Therefore, the Company should maintain and further improve the training and renovate the management policies to create more promotion opportunities for the employees

Table 3.3: Sale staff’s evaluation on work relationship

Content Very dissatisfied Dissatisfied Unsure Satisfied Very satisfied

The job helps you to enhance the relationships with various friends, colleagues and partners

The job helps you to enhance the relationships with various entrepreneurs, agencies and industries

The job helps you to successfully develop the sustainable relations with friends, colleagues and mutual support in the job and life

(Source: 2018 survey findings of the author)

Most of respondents were satisfied with the relationship set up during working, making up over 70% Number of dissatisfied employees through survey was small, less than 2% This unveiled that the sale staff has the significant work relationship because they communicated with various customers from different industries Such relationship was completely depended on themselves and their smart communication skills

Table 3.4: Sale staff’s evaluation on income and welfare

Content Very dissatisfied Dissatisfied Unsure Satisfied Very satisfied

Current salary is suitable with your capacity and contributions to the Company

The Company’s business bonus policies are clear, fair and deserved to your achievements

Traveling allowances ensure the actual spending

Treatment policies focus on health, spirit and living demand of the employees

Welfare policies demonstrate the Company’s great concern on its officials and employees

Welfare policies encourage the employee’s long-time attachment to the Company

(Source: 2018 survey findings of the author)

Most of sale staff who was from very dissatisfied to dissatisfied with the Company's bonus, treatment and welfare policies made up 70%

The interview and further exchange with the sale staff revealed that the root causes are the Company’s unclear bonus policies, the ever-changing sales bonus norm not to be announced right from the beginning when the vehicles sales were assigned, delay approval on bonus payment and the method of calculating bonus applied by the sales department was not proper, resulting in the fact that the sale staff cannot calculate the concerned bonus and total income after sales Moreover, the Company’s welfare and treatment policies were clear but not meaningful in terms of physical and spiritual value

The life of employees was not fully concerned More team-building activities were expected to cement the solidarity of the employees as well as relax to effectively reproduce the productivity Furthermore, the sport exchanges, summer and spring tourism, birthday gift and bonus for the public holidays should be launched These were the premise for the author to put forward the recommendations on bonus policies and treatment policies to the employees

Table 3.5: Sale staff’s evaluation on award and recognition policy

Content Very dissatisfied Dissatisfied Unsure Satisfied Very satisfied

Award policy is deserved with the employee’s work performance, achievement and contributions

Award policy is public, clear, transparent and timely

The employee’s working capacity and performance are properly recognized by the leaders

The award and recognition policies are consistently applied by the Company

The Company’s bonus level is suitable with the premise in the automobile business market

(Source: 2018 survey findings of the author)

The survey findings on award and recognition factors in the Company were nearly the same with the findings on income and welfare factors Most of respondents were dissatisfied However, one thing to be concerned was that although the Company’s policies are not satisfied, the direct manager releases the actual, fair and true evaluation and recognition of the employee's work performance as evaluated by the respondents This unveiled that the Company should actively develop, change and renovate the award, bonus and income policies to further motivate the employees and help them to create more added values to the Company's sustainable development

Table 3.6: Sale staff’s evaluation on working environment

Content Very dissatisfied Dissatisfied Unsure Satisfied Very satisfied

Working equipment and tools are fully provided by the Company

The colleagues are easy- going, open-hearted and reliable

The colleagues are available to share experience and support to outperform the assigned tasks

29 The working style is professional and friendly 0.0% 5.8% 20.8% 62.2% 11.2%

The employee’s initiatives are attentively listened and recognized to renovate the work

(Source: 2018 survey findings of the author)

Most of respondents were satisfied with the working environment The highest satisfaction percent (%) was recorded for the fact that working equipment is fully provided and the colleagues are easy-going, open-hearted and reliable The item that the employee’s initiatives are attentively listened and recognized to renovate the work was much lower than others in the working environment factor group Therefore, this issue must be improved in the coming time

Table 3.7: Sale staff’s evaluation on brand and corporate culture

Content Very dissatisfied Dissatisfied Unsure Satisfied Very satisfied

31 You are proud about the

32 You are proud to be a member of the Company 0.0% 4.2% 29.2% 60.2% 6.4%

Sustainable business development strategy is applied by the Company

Premium products and services are always offered to the highest satisfaction of the customer and the society

You loves and takes pride about the corporate culture

You are happy to realize that the corporate culture is highly appreciated by the customers and partners

(Source: 2018 survey findings of the author)

Most of respondents highly appreciated the Company’s business development strategy, making up 80% The dissatisfied item was not too high, mainly in the corporate culture Some employees felt that the working hours and going out of the Company’s campus were extremely managed They wished the Company should be more flexible for the sale staff who should be managed by work performance and fulfillment of the assigned tasks The author realized that this issue was not material in terms of system management, especially for the powerful company scale like Thaco The expectation of some respondents may be emphasized because under some perspectives, they fail to thoroughly understand the meaning and necessity of management policies for the big HR scale of over 18,000 members

Table 3.8: Sale staff’s evaluation on leadership style

Content Very dissatisfied Dissatisfied Unsure Satisfied Very satisfied

Employee’s contributions and devotion are always recognized by the managers

38 The managers respect and treat employees, fairly 1.8% 7.5% 23.3% 61.0% 6.4%

The managers train, instruct, consult and support the employees to outperform the assigned tasks

The managers always listen and recognize the employee’s comments

The managers are always smart and sophisticated when criticism is made

The managers inspire and motivate the employees to outperform the assigned tasks

The managers always protect the legitimate benefits of employees

Any questions may be openly exchanged and shared with your managers

(Source: 2018 survey findings of the author)

Most of sale staff involving in the survey and further interview were satisfied with the direct managers and wished the manager may conduct more training and release more instructions about the tasks, exchanging the experience in problem solving, customer claim processing, sharing information, updating the Company’s policies and political viewpoint in the business Accordingly, the gap between the subordinate and superior may be successfully narrowed down

3.3.6.9 Work motivation and working attitude of employees

Table 3.9: Work motivation and working attitude of employees

You always make the greatest effort to outperform the assigned tasks in any circumstances

You are available to take far business trip when the superior’s rotation order is approved to move to other internal entity to work

You are active to learn and willing to join the in-depth training courses to improve the qualification

You are always aware of strictly adhering to the Company's regulations, by-laws and well integrating with the corporate culture

49 You always prepare the specific working schedule and objectives 0.0% 7.5% 31.7% 42.5% 18.3%

Please, arrange the factors affecting employee’s work motivation from top-to- bottom priority (from 1 to 8):

(Source: 2018 survey findings of the author)

The survey unveiled that 88% of respondent give out the level affecting their work motivation with the top-to-bottom priority, namely:

8 Brand and corporate culture Among which, the affecting factors on the top priority is income, welfare and award

The questionnaires specified that the employees’ work motivation, working attitude were not really high against the Company’s operation scale The outstanding point among such factors was that the employees are always available to successfully fulfill the assigned tasks, hitting over 70% This was regarded as a very positive and important factor to enhance the Company to perfect and renovate its salary policies and regulations, treatment regulations to further motivate the employees in the coming time.

Contributions of the study

Literature on motivation and motivating for the employees in enterprise is systematized

The study clarifies a series of difference in motivation and motivating factors, focusing on the main factors to motivate the employees, including: Income and welfare; bonus and award policy; job attractiveness; working environment; promotion opportunities and training; leadership style; work relationship; brand and corporate culture

It is affirmed that the Company’s current bonus and award policies and welfare policies fail to motivate the employees This is one of root causes, resulting in the fact that the employees fail to determine or determine not to be loyal to the Company, leading to decrease in employee group with service length of over 3 years and increase in employees working less than 1 year

Feasible solutions are successfully designed and developed to enhance the work motivation for Thaco’s sale staff

Summary of Chapter 3: This Chapter overview the business situation, history of development of Thaco, existing status on the Company’s work motivation and presents the employees’ evaluation on factors affecting the work motivation through questionnaires.

Income and welfare

Most of automaker in automobile market applies the clear salary, bonus and commission policies per each vehicles sold by the sale staff They self-determine their expected income after deducting the expenses to sell a vehicle The Company's current bonus policy is completely different from that in the automobile market in general Bonus is given by the Sales Department when the bonus fund (bonus coefficient of each vehicle model * vehicle sales) is higher than salary costs of all employees in the Department Accordingly, the sale staff is confused because they do not know how much they earn after selling vehicles as it is depended on salary statistics of the Department members Moreover, for the employees with good sales, the expected income is not obtained and relatively lowers than the general premise of the market due to setoff with difference from those who cannot sell the vehicles or their low sales cannot be sufficient to setoff for their salary They are mainly new members who may not be effective in sales Thence, the brain drain occurs and talents with good experience and sales skills cannot be successfully retained This is clearly demonstrated by the employee’s age structure and service length table

Employees with service length of less than 1 year are relatively high and the working age is relatively young Many of them are graduates

It is expected that the sale staff should be further motivated to work and be more loyal to the Company by applying some solutions as follows:

 Release the bonus coefficient by each vehicle model with monthly sales assignment schedule This improves the transparency and clearness of the bonus policy Monthly bonus coefficient shall be adjusted to be well matched with the business situation such as strengthening the sales volume for the hard-to-sell vehicle models, enhancing turnover of inventories for working capital turnover

 Adjust the bonus calculation method to further motivate the sales task forces:

KPI refers to the ratings of sales management criteria of each sale staff, including:

Table 4.1: KPI for evaluating sales activities

Update customer information 7% Conduct data entry as prescribed

Initiate car demo 5% 100% customer is invited to car demo when they visit the showroom

Working Attitude 7% Dedicated, responsible, enthusiastic, obeyed Customer satisfaction index 7% 0% customer claims at employee faults

Full and active involvement into the training courses

Self-training for self-actualization Products knowledge/skills

Working time 6% Adherence to the Company’s regulations and rules Performance bonus = Vehicle sales * Bonus coefficient per vehicle model * KPI KPI = Evaluation criteria coefficient * Fulfillment of each criteria

 Responsibilities are specified for each division and individual in calculating and submitting the bonus results and payout time

 Employees to be on duty on Sunday are paid instead of enjoying a day-off for compensation on other working days

Although welfare contribution was not significantly recorded for the employee's income, it affects their working psychology and spirit and partially affect the decision on loyalty to the Company The Company’s current welfare policies are very clear and transparent; however, it should be more focused on the employee’s spirit and life such as:

 Organize the sport clubs such as football, badminton, table tennis, etc., sport exchanges between the clubs twice per year

 Apply the Summer vacation for employees to cement the team- building spirit, relax and reproduce the productivity

 Offer the full-moon festival gifts to the employees’ children

 Deliver the birthday gifts and wishes to the employees

 Organize the meeting with the employees’ families on annual family festival

 Offer cash bonus on public holidays and New Year Festivals: 30 April, 1 May, National Day 2 September, Calendar New Year Festival

 Offer the annual health insurance package for the managerial levels from Manager or higher

 Provide preference shares to the employees with service length of over 3 years

Award and recognition policy

 Design and promulgate the award policy applied for the employees with excellent performance and renovation contributions to offer the high work performance

 Offer the “hot” bonus to the outstanding sale staff

 Deliver the certificate of merits, organize the award ceremony for the outstanding sales members or departments

 Prioritize the outperformer to involve in the domestic and overseas in- depth training courses

Job attractiveness

The findings unveiled that many employees feel not inspired and interest in working Therefore, the Company should focus on:

 Recruiting and conducting proper duty assignment to be well matched with each employee's personality, capacity and strengths

 Conduct the duty assignment with gradual difficulty and complexity to challenge in the work to further develop and inspire the skills and potentials of each employee

 Clearly decentralize the authorities and responsibilities for handling job and provide the cross-check tools to enhance the activeness in working of each employee

Promotion opportunities and training

The employees are fully trained about the expertise and sales skills

However, the promotion opportunities to further develop to the managerial positions are relatively restricted and challenging The author recommends to:

 Regularly provide recruitment disclosure for manager position and appeal the internal candidates to apply

 Plan the manager levels every HR evaluation period; then, design and develop the training road map and release the training commitment to each employee to successfully satisfy the requirement on upgrading to managerial level

 In addition to the annual professional development training courses, it is recommended to concentrate on training for outstanding employees with good capacity in terms of management qualification to facilitate them to higher position.

Leadership style

In order to narrow down the gap between managers and subordinates that makes the employees feel more convenient and comfort to share and exchange the work, the managers and leaders should:

 In addition to expertise, pay more attention to their employees out of the workplace, join the activities with them to create the association and make them feel that their career is concerned by the leaders and it is strongly believed that they shall be successful in near future

 When the mistake is made or the expected results are not obtained by the employees, the leaders should not criticize seriously and curse at the employees Instead, the leaders should keep calm to explain and point out the development opportunities and potentials for success

Then, the employees shall be further motivated and inspired to determine to fulfill the assigned tasks

Summary of Chapter 4: Through Chapter 2 on existing status of work motivation and Chapter 3 on main findings, the possible recommendations and solutions in this Chapter are suggested to successfully improve the work motivation for Thaco Sales Staff

CONCLUSIONS Conclusions of the study

Although certain objectives are pursued by each organization and enterprise in general and each financial institution in particular, they aim to ceaselessly develop and obtain the sustainable development The most valuable part of the company is the people; they are also the solid partners of the Company to hit the final destination Therefore, improving the work performance by motivation is an optimal solution

By literature review and existing status of work motivation for Thaco employees, 8 factors affecting the sales staff’ work motivation are designed and studied, including: job attractiveness, promotion and training, income and welfare, award and recognition, leadership style, working environment, work relationship, brand and corporate culture The study was launched by qualitative method to 150 sale staff through questionnaire, survey and interview The findings unveiled that 8 above factors are characterized by various impacts and influence on work motivation, in which, the strongest affecting factor is income, welfare, award and recognition policy

According to the findings, some solutions are proposed to improve the work motivation for sale staff as follows:

Adjust the sales commission bonus policy Further promulgate the treatment policies orienting towards the employees' spirit and life

Timely apply the award policy to the outperformer Offer more chances to the employees to promote to the manager level Conduct active engagement of leaders and enhance organizing the teambuilding activities with employees

Each organization and enterprise are characterized by its own business model, financial resources, and human resources, etc., however, the most difference is the staff Therefore, motivation for employees must be emphasized by manager because investment into the people is to investment for the company’s future long- time survival and development

This study is still recorded with certain restrictions, concretely:

This study is only launched for Thaco sale staff in Hanoi City Hence, its practical implications are only recognized for the companies in the surveyed site

The results may be different for other areas If this study is launched nationwide, scales shall be summarized, analyzed and compared to release a better motivation system and orientation for the employees

The respondents are mainly male employees This partially affects the answer reliability

Some respondents failed to spend more time for the survey, hence, the honesty and accuracy of some questionnaires may not be high

The sale staff’s motivation is largely affected by a series of factors, however, only 8 factors are studied hereof due to time restriction of this study

The factors affecting the work motivation of Thaco sale staff have been successfully identified after study, concretely: job attractiveness, promotion and training, income and welfare, award and recognition, leadership style, working environment, work relationship, brand and corporate culture

By investigating the existing status of factors affecting the work motivation, in combination with the data collected from employee survey and interview, the influence of such factors on work motivation has been analyzed by the study The findings further provide information for the Thaco leaders to master its work motivation, employee's expectations Accordingly, the Company may obtain more basis and orientation to change or amend or supplement the salary, bonus and welfare policies for the employees to help them be loyal, enthusiastic and devoted to offer the high work performance

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(2012), HRM, publish University of Social Labor

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14 Abraham F Maslow, 1943 A Theory of Human Motivation

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18 Huỳnh Minh Translated from Empoyer-Employee, What motivates employees to work, http://kynangsong.xitrum.net/

19 Dale Carnegie Vietnam (2013) Why many employees are completely unrelated to their work? Website Vietnam E-Commerce Association Quote from http://www.vecom.vn/index.php/tintuc-sukien/743-visao-nhiu-nhan-vien-hoan-toan- khong-gn-kt-vi-cong-vic-ca-minh

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LIST OF TABLES Table 1: Survey questionnaire

Dear: Staff of Truong Hai Automobile Joint Stock Company

My name is: Ngo Thi Hien – HSB MBA student, Currently I am implementing the project "Creating work motivation for Sales staffs at Truong Hai Automobile Joint stock company "

For the purpose of surveying, assessing the situation and offering solutions to improve the motivation of business staff at Truong Hai Automobile Joint stock company We hope you can take the time to answer the questionnaire below Your information, answers provided are very important and valuable in improving the quality of human resources at the company, and also contribute to the success of my research Thank you for your cooperation and support

3 Working time of you at Truong Hai Automobile Joint Stock Company:

5 What is your current income level:

Please answer by circling a number on each line Meaning of numbers:

Very unsatisfied unsatisfied Normal satisfied Very satisfied

I The attractiveness of the job Mark

1 Work is suitable for your personality and ability 1 2 3 4 5

2 Work motivates you passion, interest 1 2 3 4 5

3 Your work has many challenges 1 2 3 4 5

4 Work helps you discover your own abilities 1 2 3 4 5

II Ability to promote and train Mark

6 The company has a specific development and promotion roadmap 1 2 3 4 5

7 The company always creates promotion opportunities for capable people 1 2 3 4 5

8 Opportunities for clear, public and transparent promotion 1 2 3 4 5

9 The company fully trained to perform well the work and professional development 1 2 3 4 5

10 The training of the right people, the right expertise, appropriate content 1 2 3 4 5

11 Training courses help you improve your professional knowledge, confidence and skill in solving work 1 2 3 4 5

III Relationship at work Mark

12 The work helps you to expand relationships with many friends, colleagues, partners 1 2 3 4 5

13 The work helps you to expand relationships with business organizations and industry agencies 1 2 3 4 5

14 The work helps you to build a strong relationship with your peers, share and help each other in work and life 1 2 3 4 5

IV Income and benefits Mark

15 The current salary is consistent with your capacity and contribution to the Company 1 2 3 4 5

16 The Company's business reward policy is clear, fair and commensurate with your contribution 1 2 3 4 5

17 The Company's working allowances have ensured actual spending 1 2 3 4 5

18 The remuneration regime focuses on the needs of health, spirit and life of employees 1 2 3 4 5

19 Welfare policy expresses the Company's concern to employees 1 2 3 4 5

20 Welfare policy encourages employees to stick with the company for a long time 1 2 3 4 5

V Reward and recognition policies Mark

21 The policy of fair reward commensurate with the results of work and contributions of employees 1 2 3 4 5

22 Commendation policies are transparent, clear, transparent and timely 1 2 3 4 5

23 Leaders recognize proper working capacity and work results of employees 1 2 3 4 5

24 The company consistently enforces reward policies and acknowledges the contribution of employees 1 2 3 4 5

25 The bonus level of the Company is in line with the common ground of the automotive business market 1 2 3 4 5

26 The company provides a full range of equipment and working tools 1 2 3 4 5

28 Colleagues are willing to share experiences, good support to complete the work 1 2 3 4 5

30 The company listens to and recognizes staff initiatives to improve work 1 2 3 4 5

VII Brand and company culture Mark

31 You are proud of the company brand 1 2 3 4 5

32 You are proud to be an employee of the Company 1 2 3 4 5

33 The company has a sustainable business development strategy 1 2 3 4 5

34 The company always creates good products and service quality towards the needs of customers and society 1 2 3 4 5

35 You love and take pride in the culture of the Company 1 2 3 4 5

36 You are happy to see customers and partners appreciate the company's culture 1 2 3 4 5

37 Management always acknowledges the contribution and dedication of employees to the Company 1 2 3 4 5

38 Manage respect and fair treatment of employees 1 2 3 4 5

39 Manage training guides, advice, help staff to complete the work effectively 1 2 3 4 5

40 Management always listens, acknowledges employees' comments 1 2 3 4 5

41 Management is always clever and delicate when criticizing 1 2 3 4 5

42 Manage passionate fire transmission, create motivation for employees to strive to complete the job well 1 2 3 4 5

43 Management always protects legal rights for employees 1 2 3 4 5

44 Any problems you can also exchange, share with management 1 2 3 4 5

IX Measure work motivation, working attitude of employees Mark

45 You always try your best despite all difficult circumstances to complete the assigned work 1 2 3 4 5

You are willing to accept work away from home when receiving a transfer order from a higher level to another work unit within the same system of the Company

47 You actively learn and voluntarily participate in intensive training courses to improve your qualifications 1 2 3 4 5

48 You are always aware of complying well with the rules, regulations and integrating into the culture of the Company 1 2 3 4 5

49 You always have specific plans and objectives 1 2 3 4 5

50 Please arrange the factors affecting the employee motivation below in order of priority from high to low (from 1 to 8):

You have comments or additional comments on motivational factors of business staff at Truong Hai Automobile Joint Stock Company

Gentle Number of HR Density

Table 4: Characteristics of education level

Table 5: Characteristics of working seniority

Wor king time Number Proportion

Table 6: Characteristics of income level

I The attractiveness of the job

Very unsatisfi ed unsatisfi ed Normal satisfied Very satisfied

1 Work is suitable for your personality and ability 0.5% 8.3% 29.2% 62.0% 0.0%

2 Work motivates you passion, interest 0.0% 1.7% 48.3% 50.0% 0.0%

3 Your work has many challenges 1.5% 2.5% 20.8% 70.2% 5.0%

4 Work helps you discover your own abilities 0.0% 0.8% 40.0% 49.2% 10.0%

II Ability to advance into training

Very unsatisfi ed unsatisfi ed Normal satisfied Very satisfied

6 The company has a specific development and promotion roadmap 5.2% 9.5% 26.7% 53.0% 5.6%

7 The company always creates promotion opportunities for capable people 9.5% 21.2% 37.5% 27.3% 4.5%

8 Opportunities for clear, public and transparent promotion 0.0% 31.7% 30.8% 37.5% 0.0%

9 The company fully trained to perform well the work and professional development 0.0% 1.7% 29.2% 66.0% 3.1%

10 The training of the right people, the right expertise, appropriate content 0.0% 4.2% 37.0% 56.2% 2.6%

Training courses help you improve your professional knowledge, confidence and skill in solving work

Very unsatisfi ed unsatisfi ed Normal satisfied Very satisfied

The work helps you to expand relationships with many friends, colleagues, partners

The work helps you to expand relationships with business organizations and industry agencies

The work helps you to build a strong relationship with your peers, share and help each other in work and life

Very unsatisfi ed unsatisfi ed Normal satisfied Very satisfied

15 The current salary is consistent with your capacity and contribution to the Company 15.8% 47.3% 31.7% 5.2% 0.0%

The Company's business reward policy is clear, fair and commensurate with your contribution

17 The Company's working allowances have ensured actual spending 12.6% 52.6% 33.3% 1.5% 0.0%

The remuneration regime focuses on the needs of health, spirit and life of employees

19 Welfare policy expresses the Company's concern to employees 16.8% 59.1% 20.8% 3.3% 0.0%

20 Welfare policy encourages employees to stick with the company for a long time 35.7% 41.8% 20.0% 2.5% 0.0%

Very unsatisfi ed unsatisfi ed Normal satisfied Very satisfied

21 The policy of fair reward commensurate with the results of work and contributions 45.3% 39.9% 12.6% 2.2% 0.0% of employees

22 Commendation policies are transparent, clear, transparent and timely 56.3% 32.0% 10.2% 1.5% 0.0%

23 Leaders recognize proper working capacity and work results of employees 0.0% 9.6% 21.8% 20.3% 48.3%

The company consistently enforces reward policies and acknowledges the contribution of employees

The bonus level of the Company is in line with the common ground of the automotive business market

Very unsatisfi ed unsatisfi ed Normal satisfied Very satisfied

26 The company provides a full range of equipment and working tools 0.0% 2.5% 15.0% 74.2% 8.3%

Colleagues are willing to share experiences, good support to complete the work

30 The company listens to and recognizes staff initiatives to improve work 0.0% 14.2% 39.6% 46.2% 0.0%

VII Brand and company culture

Very unsatisfi ed unsatisfi ed Normal satisfied Very satisfied

31 You are proud of the company brand 0.0% 1.7% 18.6% 71.3% 8.4%

32 You are proud to be an employee of the

33 The company has a sustainable business development strategy 0.0% 0.0% 19.4% 68.3% 12.3%

The company always creates good products and service quality towards the needs of customers and society

35 You love and take pride in the culture of the Company 5.9% 6.7% 43.1% 42.0% 2.3%

36 You are happy to see customers and partners appreciate the company's culture 0.0% 0.0% 12.5% 79.7% 7.8%

Very unsatisfi ed unsatisfi ed Normal satisfied Very satisfied

Management always acknowledges the contribution and dedication of employees to the Company

38 Manage respect and fair treatment of employees 1.8% 7.5% 23.3% 61.0% 6.4%

39 Manage training guides, advice, help staff to complete the work effectively 1.2% 10.2% 28.3% 56.6% 3.7%

40 Management always listens, acknowledges employees' comments 0.0% 6.7% 20.8% 68.4% 4.1%

41 Management is always clever and delicate when criticizing 0.4% 5.1% 17.5% 71.2% 5.8%

Manage passionate fire transmission, create motivation for employees to strive to complete the job well

43 Management always protects legal rights for employees 0.5% 2.1% 42.6% 52.3% 2.5%

44 Any problems you can also exchange, share with management

IX Work motivation, working attitude of employees

Very unsatisfi ed unsatisfi ed Normal satisfied Very satisfied

You always try your best despite all difficult circumstances to complete the assigned work

You are willing to accept work away from home when receiving a transfer order from a higher level to another work unit within the same system of the Company

You actively learn and voluntarily participate in intensive training courses to improve your qualifications

You are always aware of complying well with the rules, regulations and integrating into the culture of the Company

49 You always have specific plans and objectives 0.0% 7.5% 31.7% 42.5% 18.3%

Please arrange the factors affecting the employee motivation below in order of priority from high to low (from 1 to 8):

• The attractiveness of the job

• Ability to improve and train

5 Ability to improve and train

8 Brands and culture of the Company