Rationale
In the market economy, businesses if wishing to survive and develop, in addition to the infrastructure is fully equipped with modern and advanced ones, need to maximize human resources because people are the most important factor for business success
Having a team of loyal and dedicated people for business is thing any leaders want to achieve
However, in fact, there is now common phenomenon is that employees often move another job, they do no longer work with the business After a period of inadequate sense, they will find new job This considerably influences the organizational structure as well as the company’s direction of business development There are many reasons leading to this situation, one of the important reasons is that the company has not satisfactorily fulfilled the compensation, working conditions which cannot stimulate and create motivation to work for them
Finance - Banking is a key area in the economy Therefore, employees in such industry are passionate, creative, dynamic and always have to adapt to change Over the years, Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) always strives to maintain its leading position, of which the bank is considerably contributed by the staffs Banking sector is one of the particular sectors since the quality of products and services depends mainly on suppliers and staffs directly serving for customers
More than 60 years of establishment and development, up to now, BIDV is one of the three biggest joint stock banks in Vietnam BIDV is not only famous for its great development in technology, successfully rapid growth, a large number of customers, it also possesses more than 24,000 officials and staffs in more than 180 branches and over 800 transaction offices Transaction center is one of the Top biggest branches of BIDV Of which, position of tellers in BIDV in particular and in banks in Vietnam in general is very necessary and important Every day, they have to contact with customers to receive requests, handle transactions and record all transactions related to cash transactions, checks, savings, transfer, foreign currency exchange, account opening arising at the counter Every teller has the role of a salesman and introduces a cross-service, while also creating an image, brand and excellent service quality of a bank; thereby helping banks raise capital and interests However, nowadays rate employee turnover in teller position in BIDV in general and in this branch in particular is quite high, approximately 22% Most of tellers must work hard within more than 8 hours per day (usually before 8 a.m until about 7 p.m); meanwhile their income is much lower than other positions in the bank and they seem not to be given the appropriate promotion and development opportunities These are the main reasons of demotivating at work of employees
For many above reasons, the author decided to choose the topic “Improving
Teller’s motivation in BIDV – Transaction Center 1” with an aim of analyzing the current situation of BIDV’s tellers at the Transaction Center 1 and then recommending solutions for improving their motivation at work and reducing intention turnover in teller position.
Literature review
Studying about employee motivation in the banks in Vietnam and in the world, there have been many researches conducted with the aim of helping the bank improve their employee motivation We can mention some following researches:
The article “The 1977 quality of employment” supposed, when people spend much time for work, their understanding about factors influencing on their working motive and motivation in their work is very important for improvement
According to Andrew Oswald, in his 2001 book, "Are you happy at work," the working motivation of people is the degree to which employees enjoy their work and the attitude based on the perception of the employees (positive or negative) about their job or working environment Simply, the better the working environment meets demands, desires, values and characters of employees, the higher employees get working motive and motivation
In 2007, Boeve studied about “Factor creating motivation for teachers in faculty of assistant doctors in medical schools in the US” on basis of Herzberg theory and job description indicator of Smith, Keendall & Hulin He divided motivation factors into two group such as internal factors: nature of work and opportunities training and promotion and external factors: salary, support of senior managers and relationship
In June, 2010, Quang Truong, Beatrice JIM and Chris Rowley showed their viewpoint and research results on human government in Vietnam in the research
“Globalization, competition and human government in transition economy: The Case of
Vietnam” According to the article, companies in Vietnam generally only have a General
Administration Office in charge of administration and personnel management Typically, this department focuses solely on paperwork or human resource management but not on major human resources decisions such as planning, recruiting, training and developing and retaining qualified employees
Bui Thi Minh Hong (2015) studied about “Improving employee motivation in
Vietnam Technological and Commercial Joint Stock bank – Thang Long Branch” The research focused on clarifying general theoretical framework on employee motivation, analyzing current employee motivation in Thang Long Branch through studying personnel documents of the Branch and questionnaires; thereby proposing solutions to improve the employee motivation for the employees in the whole Branch
Nguyen Si Hung (2016) studied about “Creating employee motivation in Joint
Stock Commercial Bank for Foreign Trade of Vietnam – Vietcombank Kon Tum” In this research, the author clarified basic theoretical framework about working motivation and theoretical models; analyzing and assessing current working motivation of employees and recommending possible solutions for enhancing working motivation of employees
Research by Nguyen Khac Toan (2010) of "Factors influencing the employee motivation in Asian Commercial Bank, Hue Branch”, there are 5 factors impacting on employees' motivation such as: Working environment, wages and welfare, nature of work; excitement in work; and development prospects Most of the sales staffs are satisfied with these factors of the Bank The research results also show some shortcomings in human resource management that the bank needs to address
In general, the above researches only mentioned to the motivation for employees or laborers in the bank and there has been no studies about motivation of teller in bank, especially in BIDV – Transaction Center 1 Therefore, the author decides to choose this topic as my research topic as necessity and distinction.
Aims of research
For the above research rationale, there are some main objectives the thesis should cover as follows:
- To clarify the theories of motivation, then propose the most appropriate motivation model
- To analyze and find out strengths and weaknesses of tellers’ motivation at BIDV – Transaction Center 1
- To propose recommendations for improving motivation for tellers at BIDV – Transaction Center 1.
Objects of research
Research object: Thesis focuses on identifying all factors related to improving motivation for Teller at BIDV – Transaction Center 1
Object: 240 tellers in BIDV – Transaction Center 1.
Scope of research
- Time: Secondary data: was collected from 2016 to 2018 Primary data: 2019
- Location: BIDV – Transaction Center 1, Vincom Tower, No 191 Ba Trieu Street,
Le Dai Hanh Ward, Hai Ba Trung District, Hanoi City.
Research methodology
The thesis uses collection methods of secondary data and primary data
+ For collection methods of secondary data, it will be collected from both internal and external sources Of which, external sources consisted of the Internet resources, newspaper, articles and agency related to employee motivation; meanwhile, internal sources include annual reports of BIDV (2016, 2017 and 2018) to collect the relevant information about employee motivation; employee effective survey 2019
+ For collection methods of primary data, the author uses two methods namely qualitative and quantitative method For qualitative method, the author will conduct the following in-depth interviews with 02 people including Director of Human Resource of BIDV – Transaction Center 1 and Chief accountant of BIDV – Transaction Center 1 The contents of the interviews with Director shall focus on getting his viewpoints about the staff motivation at BIDV – Transaction Center 1 in particular, how the staffs think about the branch’s motivation and motivation plans for improving working satisfaction for staffs at BIDV – Transaction Center 1 The contents of the interview with chief account will concentrate on her opinions about salary policy of the bank for the staffs, especially tellers at BIDV – Transaction Center 1
In term of quantitative method, primary shall be collected through structured questionnaire survey: the survey shall be conducted via structured questionnaires The designed questionnaires aim at collecting employee assessment on conditions, work environment, personal goals and organizational goals when working at teller position at BIDV – Transaction Center 1
- Respondents: Tellers who are working at BIDV – Transaction Center 1
- Sample size: At the Transaction Center 1 has over 240 tellers, and with the purpose of reaching the objectivity of the survey data, I would like to use random sampling method and sample size chosen is all 240 people
- Questionnaire design: the questionnaire covers motivation factors on Herzberg’s two-factor theory The author applies the measurement scale of Linkert, 5-point ranking from 1: Strongly disagree, 2: Disagree, 3: Neither agree or disagree, 4: Agree, and 5:
Research results are as follows:
2,61-3,40: Neither agree or disagree 3,41-4,20: Agree
4,21-5,00: Strongly agree Qualitative data will be analyzed by using qualitative data analysis techniques such as critical incident technique, content analysis, Quantitative surveyed data will be analyzed using descriptive statistics such as percentage (%), frequency (f) and mean
+ Data processing method: The data was pre-processed by using the Microsoft Excel for Microsoft Professional Windows XP and SPSS package for frequencies, reliability analysis and correlation analysis Such SPSS package helped the author illustrate her study by many useful and effective charts, diagrams and pies
Besides introduction, conclusion, references and appendix, the research includes three main parts as follows:
Chapter 1: Theoretical background on employee motivation Chapter 2: Assessing the situation of teller’s motivation at BIDV – Transaction Center 1
Chapter 3: Proposal on solution for improving teller’s motivation at BIDV – Transaction Center 1
THEORETICAL BACKGROUND ON EMPLOYEE MOTIVATION
Overview of employee motivation
There are many definitions of motivation defined by many authors and writers in the world In English, the word “motivation” is derived from the word “motive” which refers to demands, expectations, desires, wants or drives of an individual The motivation is factors inside that influence action of people Think of “motive” as the thing that moves your actions and changes your behaviors
According to Drummond (1990) “Motivation is in the individual and helps to explain behavior Motivation is an intricate inside process with three components: what drives the individual to behave in certain ways, what steers the behavior, and what maintains the behavior To satisfy the employees’ need is very difficult because each employee has different characteristics that affect behavior The factors that organizations have to be concerned with are self-concept, attitudes, values, interests, feelings, personality, and life experiences They have to encourage employees through a positive organizational climate that is motivating”
Bagraim, Cunningham, Potgieter and Viedge (2007) defined motivation as the internal force of person that arouses, directs and sustains our behavior It means motivating employees is not only a process but also the methods and art Organizations or managers make employees understand the goals, personal responsibility and associated personal’s goals with the organization's goals and then creating intrinsic motivation of employees towards completion of organizational objectives
Ebrahimi and Wachtel (1995) supposed motivation is a basic psychological process Luthan (1998) reckoned motivation as "a process that starts with a physiological deficiency or need that activates a behavior or a drive that is aimed at a goal incentive" He asserted motivation is the process that arouses, energizes, directs, and sustains behaviors and performance That is, it is the process of stimulating people to action and to achieve a desired task Then one way of stimulating people is to employ effective motivation, which makes workers more satisfied with and committed to their jobs Money is not the only motivator There are other incentives which can also serve as motivators
There are some definitions of motivation, in my opinion, brief, the definition of motivation refers to the internal force of person that arouses, directs and sustains our behaviors It helps to explain behaviors, and actioners
The definitions of the authors give us different perspectives on motivation and how motivation affects human behavior According to my personal opinion, when considered in terms of motivation include internal factors, external factors and the factors affecting the dynamics will help us to have the perspective to evaluate and promote work motivation Therefore, within the framework of this article the author used the definition of Drummond (1990) “Motivation is in the individual and helps to explain behavior
Motivation is an intricate inside process with three components: what drives the individual to behave in certain ways, what steers the behavior, and what maintains the behavior To satisfy the employees’ need is very difficult because each employee has different characteristics that affect behavior The factors that organizations have to be concerned with are self-concept, attitudes, values, interests, feelings, personality, and life experiences
They have to encourage employees through a positive organizational climate that is motivating”
When individuals are intrinsically motivated, the drive comes from internal desires or needs Individuals usually have feelings of personal satisfaction or gratification after completing a task successfully Extrinsically driven motivation is determined by monetary or tangible rewards that one receives for completing a task When an individual is extrinsically motivated, they tend to look at what they will receive for completing a certain task such as money or anything that is of value to the individual And improving work motivation is to lead employees to achieve the goals set for the largest effort
Nguyen Van Diem and Nguyen Ngoc Quan in “Human Resource Administration”
(2003) defined employee motivation is the aspiration and voluntary of employees towards achieving organizational goals
According to the textbook of organizational behavioral of Bui Anh Tuan in
“Textbook of Organizational behavior” (2003), employee motivation is the intrinsic factors to motivate people to work in conditions that enable productivity and high efficiency
Expression of motivation is the willingness, efforts and passion to work with an aim of achieving the organizational goals as well as the employees themselves
Ho Ba Tham in “Motivation and Creating motivation for society development”
(2004) supposed employee motivation is the desires and willingness of the employees to increase their efforts towards achieving the organizational goals Personal motivation is the result of many resources working simultaneously in human beings, in human living and working environments
Any emloyees going to work are expected to assert themselves, be successful, and want to earn high income for their personal lives When people are in different positions with different psychological characteristics, they will be different desires Managers need to have different effects on each employee Strong motivation will stimulatepeople to act positively and effectively and vice versa
Motivation is a system of measures, policies and organizational behaviors affecting workers to make themmore satisfied with their works and to strive to achieve the personal and organizational goals Thus, employee motivation is understood as encouraging and motivating activities that affect the employees’ needs to create a change in their behaviors towards the organization’s hopes and goals Creating motivation helps to motivate in every business Managers in the organizations who want to grow their businesses must use appropriate policies, measures, and management tools that affect employees in order to help them work with enthusiasm, create creativeness in the work process to contribute to the organization The important issue of employee motivation is to understand the employees’ needs and then recommend solutions to stimulate, create motivation for employees to work enthusiastically in the workplace
Employee motivation is always associated with a job, an organization, a specific working environment and a specific individual This means that there is no general motivation, as with each individual being different, with each job they perform differently, with different working conditions and different attitudes that workers themselves will be different work efforts
Employee motivation is not inherent in every human being and it is constantly changing At this point, employee motivation is high, but at times labor force is low or it does not necessarily exist in the workers themselves In different conditions and circumstances, employee motivation will be promoted differently Thanks to this feature managers can intervene and impact on employees so that they can promote employees' work efforts
Employee motivation is voluntary Each employee will personally feel the effort to work depending on the time they feel comfortable and interested Human nature is to like to be proactive in everything, not passive Of course, in an organization the initiative of the individual must be within the framework And the manager must know this feature in order to promote the best labor motivation and it must have the art to enhance the voluntariness of workers
Employee motivation is an important factor leading to an increase in individual labor productivity and effective production in the context of other factors unchanged
Employee motivation is like an invisible force from within that motivates them to work harder, strive harder, work tirelessly However it is important to understand that motivation is a factor, not a source, that leads to an increase in individual labor productivity and business productivity because this depends a lot on the qualifications, skills of workers, and facilities, equipment and machinery
Theories on employee motivation
F Herzberg introduced two-factor theory of job satisfaction and motivation He divided the elements of job satisfaction and dissatisfaction into two groups:
- Group 1: includes the key elements of motivation and job satisfaction such as achievement, recognition of achievement, work itself (intrinsic nature of the job), responsibility and promotion These are the factors of work and workers When these needs are met, it creates motivation and job satisfaction
Figure 1.1: Herzbergs Two-Factor Theory of Motivation
Source: Motivation to Work, Herzberg 1959
- Group 2: consists of elements of the organizational environment such as company policy/ administration, direct supervision, income, interpersonal relations and working conditions According to Herzberg, if these factors are positive, they will help prevent job dissatisfaction However, if only their presence, they are insufficient to create motivation and job satisfaction
According to Herzberg, the factors that lead to job satisfaction are separate and unrelated to the factors that create dissatisfaction in the job Therefore, managers seeking to eliminate the elements that create dissatisfaction can bring stability but are unlikely to give motivation to work Hence, characteristics such as company policy and mechanism, supervision, interpesonal relations, working conditions and salary are attributed to the characteristics of the conditions When guaranteed, people will not be dissatisfied and they will not be satisfied In his opinion, if we want to motivate them, we should emphasize on achievement, work itself, responsibility and promotion
He also said that the hygiene factors need to be first and then the motivators will be contributive The uniqueness of his theory lies in the fact that he distinguishes factors that lead to satisfaction and the factors that lose satisfaction Managers need to encourage people through motivators Hygiene factors need to be reached to some extent first to ensure that motivation is not diminished, but then to focus on motivators According to him, many managers have tried to use motivators to encourage, which is wrong and ineffective
Herzberg’s theory has both advantages and disadvantages as follows:
- Advantages: the theory is demonstrated through considerable empirical data
Moreover, the theory is also included in other research which is assistant for the original hypothesis The theory provides practical solutions for corporations as well as organizations In addition, this theory is applied at every level of an organization and section
- Disadvantages: Research methodology is criticized Moreover, the theory does not consider individual personalities relating to motivator factors or hygiene factors The theory does not provide a motivational value for each motivator The research which was conducted by Herzberg only focused much on satisfaction and ignored productivity The reliability of theory is uncertain
Many authors have applied Herzberg’s theory to analyze the current situation about satisfaction and motivation According to Business case studies, it showed the subject about “Motivational theory in practice at Tesco: A Tesco case study” The study applied Herzberg’s theory to analyze the employee motivation Through applying the theory, Tesco indicated that Tesco staff can even be affected by restaurant menus
Employees thus become motivated in making choices that will increase their use of the restaurants
Abraham Maslow's Hierarchy of Needs is one of the most widely used models when studying about personal motivation He argues that in every individual, there always exists a complex system of five need groups, from low to high Of which:
- Physiological needs: are at the lowest position in the system These are the needs that people are always trying to satisfy first, like air to breathe, sleep, and drinking These needs are basic and people are always thinking first
- Safety needs: After satisfying the mentioned above physiological needs, this need will appear At this level of demand, people will respond to signs of danger that threaten themselves, and workers do not like to work in dangerous conditions that prefer to work in the safer conditions
Figure 1.2: Maslow's Hierarchy of Needs
- Love/ belonging needs or social needs: When meeting these two needs, social or emotional needs will become important It is the needs to be loved, to have a friendship and to be part of a community
- Esteemed needs: include the needs or desires to obtain the high value of automation or stimulation and respect of others Maslow has divided into two categories: the categories of desires for power, achievement and faith for all, for independence and freedom
- Self-actualization needs: He supposed “although all the above needs are met, we still feel new dissatisfaction and anxiety will arise, since individual needs are being fulfilled that suits to them Obviously, these needs will appear when there is satisfaction of lower needs than those Not at the same time, everyone has the same needs, but at different times, different people have different needs However, in principle, the lower needs are satisfied before being encouraged to meet higher-level needs
+ Each individual worker has a system of different needs and it is satisfied in different ways and means
+ In principle, people need to be satisfied with the needs at a lower level before being encouraged to meet higher level needs
+ Managers need to pay attention to the needs of employees From there, there are measures to satisfy that need properly
Therefore, in principle, managers need to know how their employees are on the demand ladder so that they know how to work to create the highest motivation
Maslow's theory shows both strengths and weaknesses as follows:
- The theory’s advantage is that it stimulates individuals to change fundamental needs for higher needs, providing the clear information for personal growth
- In contrast, the theory fails to clarify why people prefer to ignore lesser needs in searching process of higher ones
There are many authors applying Maslow’s theory to their study Cathy H.C Hsu and Songshan Huang studied about “Travel motivation: a critical review of the concept's development” In this study, these authors applied Maslow’s theory to travel motivation theory and indicated the development of travel motivation concept in many years
Moreover, the study also argued other concepts which influence in travel motivation As Hsu and Huang said (2008), this theory can be used to study the theoretical of many tourism researches
Employee motivation in banking sector
In this research, considering the work nature of tellers in banking sector and according to opinion from in-depth interview with the Director of Human Resource at BIDV - Transaction Center 1 (he shared that currently, the bank has applied some motivation policies such as sending good staffs to training for developing their working competency, giving promotion for the better ones, recruitment always depends on clear job description for each position and so on Moreover, according to specific nature of tellers, the bank only focuses on some factors which directly influence on their interests and benefits such as income, promotion, training and development, working conditions, nature of work and supervision and so on He also shared that for tellers, the factors with most influential levels are work itself, income, working conditions, promotion, training and development and direct supervision Moreover in 2017-2018, BIDV - Transaction Center 1 has planned to carry out the goals of “human resource development” so in 2018, most of staffs’ income shall be increased considerably), the author did think that theories of Maslow and Herzberg are the most suitale to measure employee motivation for tellers at BIDV - Transaction Center 1 Therefore, in this research, the author conducted to analyze
06 key factors including work itself, income, working conditions, promotion, training and development and direct supervision and 01 factor of overall satisfaction
Figure 1.3: Proposed model of employee motivation for tellers at BIDV -
- Work itself/ Nature of work: This factor reflects the appropriateness levels of the
“work itself” with employees’ capacity and desirability Proper placement explores the potential of employees, thereby helping the enterprises increase productivity and make workers more satisfied with the job they are assigned if the job is appropriate to their ability The work suitability with the workers is reflected in many aspects of “work itself” such as whether the work is consistent with the capacity and expertise of the employee or not, whether the work is proper to their working competency and professional, whether they clearly understand about their on-going job, whether the current job brings them motivation, dedication or creativeness for employees, whether the job brings them challenges or prove employees’ individual capacity and whether the current job brings them stability and safety
In banking sector, motivation of work itself could be follows:
The society shall be proud and respect their job
Banking staff must apply more professional knowledge
Their current job influences much on other individual in the bank
The current job is challenging and interesting
Banking staff must be creative for meeting job’s requirements
- Income: Income is the employee's remuneration derived from his or her job
Refering to Maslow's need theory, the demand for income is the basic needs and physiological needs In general, at the same job, the employees shall certainly feel more satisfied with the higher income In addition, the fair income is also appreciated by the workers The "income" factor is considered at some aspects such as suitability between income and employees’ contributions, workers can live on the current salary, other allowances are equally distributed
In banking industry, income could involve the following:
Income is paid properly for their contribution
They can have a good life for current income
Salary is paid fully and timely
They are given the appropriate allowance
The bank always has the regime for bonus giving at Tet, holidays, etc
Income is competitive comparing with other banks
- Working conditions: This factor reflects the working condition of the worker, including factors such as working time, workplace safety, protective equipment for workers' work, etc The workers who are created the good working condition will make a good assessment of their work On the contrary, they will feel dissatisfied with working conditions, work in anxiety, fear psychology and performance will certainly not be high
In banking industry, working conditions could be:
Staff work in the modern and safe working environment
The bank’s corporate culture is clear and friendly
The Bank has suitable regime for the staffs’ working and relaxing time
The Bank equips me with full and suitable facilities at work
- Promotion: Promotion reflects the organization always gives the fair and full development and career growth opportunities for all workers In Herzberg's theory, promotion refers to a motivational or stimulating factor for employees Promotion is associated with fairness and policies of HR development, creating opportunities to improve the professionals and skills of workers
Promotion in banking sector could be involved:
Banking staff are given many promotion and development opportunities
The bank always depends on employees’ capacity, seniority and contributions to work to give promotion
The bank always give the right promotion opportunities for right position and right duty
The bank’s promotion policy is clear enough
- Training: According to Wetland (2003), "training is seen as aninvestmentform of individuals or organizations for human resource." For any positions in any organizations, training for new employees as soon as recruiting is necessary for enhancing knowledge, skills and attitude For old ones, training shall help them supplement the lack knowledge
This factor can be considered under some aspects namely professional training, opportunities to develop individuals, opportunities for proficient people Development refers the bank provides suitable development opportunities for all staff
Traning and developmet could be:
Training courses are helpful for employees’ daily work
When attending training courses, I am funded
Training knowledge can be applied effectively for my daily job
For meeting current job requirements, staff are supported with favorable conditions to enhance their qualifications
- Direct supervision: Supervision of leadership can bring satisfaction to the workers by fair treatment, respect for their subordinate and willingness for supporting them They must be the skilled and talented persons to be able to direct their subordinate The supervision can directly influence on employees’ motivation because the employees’ satisfaction is increased when their leadersare knowledgeable and friendly and they shall be dissatisfied and demotivated in case their supervisors don’t support and direct them when they face with difficulites They cannot accomplish their job, which considerably impacts on performance
Superiors always encourage and motivate their subordinate
Managers always listen and respect employees’ opinions
When facing with difficulties, the subordinate are always directed and instructed by their direct superiors
Staff feel satisfied with their superiors’ leadership and management style
Employee motivation experience in some banks
1.4.1 Employee motivation experience of Technology and Commercial Joint Stock Bank
Technology and Commercial Joint Stock Bank (Techcombank) is a multi-purpose urban commercial bank providing comprehensive, diverse and highly competitive financial products and services to residents and businesses for the purpose of satisfying customers and creating added value for shareholders, benefits and development for employees, contributing to the development of the community Techcombank is one of the largest and growing banks in Vietnam, established on September 27, 1993
Technology and Commercial Joint Stock Bank is a large-scale enterprise, so the bank has developed its own payroll policy based on the regulations of the state In fact, the branch makes timekeeping every day of the month for each employee At the end of the month, the timekeeper summarizes the days of work, the number of day-off for each employee, and then sends it to the accounting department to Payroll
Wages are paid in accordance with to the agreement between the Bank and employees, ensuring the interests of the Bank and employees in accordance with the provisions of law
Salary and allowances for employees are determined based on the scope of responsibilities, roles, capabilities and achievements of the employees themselves as well as the business results, policies and strategies of the Bank
Wages and allowances of employees are ensured to be fair in internal terms and competitive with the labor market in order to attract, motivate and retain truly qualified and long-term employees with the Bank
Bonuses aside from meeting material needs also have a great spiritual meaning
When employees are rewarded, their achievements are commended They will be excited when working, which is a good form of motivation
At Techcombank, the bonus payment for employees is based on the year-end bonus fund, which means that the Bank will deduct 2.5% of added value to create a year-end reward fund On the basis of the year-end reward fund, the Board of Directors rewards the members of the Board of Management The General Director proposes the Board of Directors to approve the award of bonuses to other managers and employees of the Bank with good performance on the basis of the Bank's performance evaluation system
The bank divides allowances into various types such as seniority allowances, hazardous allowances, expensive allowances, capacity allowances, mobile allowances For each type of allowance, there is some support for employees, acknowledging their contributions to the organization such as recognition of employee loyalty and commitment, or assisting employees in taking care of employees Working in hazardous environment such as cashier, cashier, vault keeper This is a good task in motivating the Bank
- Creating motivation through benefits and services
In recent years, the Bank has paid attention to welfare and services as this is one of the motivations for employees that directly affect the business performance of the business
Officers and employees are allowed to attend tourism and entertainment activities organized by the bank when conditions permit (usually held on weekends or on holidays, anniversaries of the Bank or establishment of the branch,…)
1.4.2 LienViet Post Joint Stock Commercial Bank (LienVietPostBank)
LienVietPostBank with modern technology base, strong financial potential and professional, experienced and enthusiastic staff is on the way to become a Leading Commercial Bank and aiming to develop into a strong financial and banking group in Vietnam
LienVietPostBank always considers human resources as the core element and valuable asset of the Bank Therefore, the HR policy here is built with the purpose of turning human resources into a leading competitive advantage of LienVietPostBank
LienVietPostBank's personnel policy is to put the relationship between the Bank and its employees at the center of the policy, with the highest goal of the development of LienVietPostBank which always accompanies the satisfaction of employees’ work and interests
LienVietPostBank's employment policy creates fair and reasonable opportunities for all employees of the Bank, depending on the capabilities of each person in every aspect: recruitment, training, appointment, salary review, and reward consideration
Salary at LienVietPostBank is paid on the principle of fairness, reasonableness, suitable to the qualifications, capabilities, performance, work quality, spirit, attitude and responsibility assigned tasks of each employee
In addition to salary, when working at LienVietPostBank, employees also enjoy many different allowances depending on the characteristics of each job position such as:
Attractive allowance, Expensive allowance, Toxic allowance and the money to support the cost of gasoline, phone, lunch In the allowance regime, LienVietPostBank applies the Senior Allowance regime to recognize loyalty and long-term commitment to dedication of staff for the Bank
In addition to the salary and allowances policy, LienVietPostBank also applies a bonus policy to motivate and encourage employees throughout the system to make every effort and dedication in all positions to build LienVietPostBank more and more developing and growing These collectives and individuals with outstanding achievements will be evaluated and rewarded worthily and promptly in accordance with uniform, fair and public regulations, combining spiritual rewards and material rewards
LienVietPostBank's training courses include both domestic and foreign training, especially LienVietPostBank focusing on training children of the Bank’s shareholders and employees
Through training, employees will be improved knowledge, professional qualifications and other skills, thereby creating the greatest value for themselves and the Bank At the same time, through the training process, the staff also identifies their own development goals in line with the Bank's development goals
ASSESSING THE SITUATION OF TELLER’S MOTIVATION AT BIDV – TRANSACTION CENTER 1
Introduction of BIDV - Transaction Center 1
2.1.1 History and development of BIDV - Transaction Center 1
Transaction Center 1, formerly known as Transaction Center 1 (abbreviated as SGD1), was established on March 28, 1991 in accordance with the Decision No 76 QD/TCCB of the General Director of Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), with the duty of being a direct business unit of the Head Office, effectively implementing the strategic tasks of the Joint Stock Commercial Bank for Investment and Development of Vietnam In addition to the tradition of allocating capital and serving capital needs in the field of capital construction investment, the Transaction Center 1 step by step becomes a key unit in the system of Joint Stock Commercial Bank for Investment and Development of Vietnam in terms of scale and turnover Transaction Center 1 is a place to experiment with new products, perform special customer care tasks, and an environment to train managers and professional staff for the Joint Stock Commercial Bank for Investment and Development of Vietnam At the same time, Transaction Center 1 is also a pioneer in successfully deploying a new technology system, a plan to modernize the bank and a payment system, a new management model in the direction of a modern bank
Since its inception, Transaction Center 1 has undergone many stages, including some of the following development milestones:
- On the 10 th anniversary of its founding - in March 2001, the Transaction Center reached the scale of total assets of VND 9,900 billion, outstanding loans reached VND 4,846 billion, collected service fees of tens of billion and the service structure accounted for 16.27% of profit before tax It can be said that the results in the inception phase have created a solid foundation for the next development step
- From 2008 - May 1, 2012: this is a period of drastic change in both BIDV system and the Transaction Center 1 BIDV has changed its operating model to TA2, accordingly credit activities were organized in a number of steps, clearly defining the functions and tasks of each department on the principle of limiting risks to the Bank On November 1,
2009, implementing the State Bank's decision that each commercial bank was allowed to operate only one transaction office, Transaction Center 1 was renamed Branch of Transaction Center 1 with a model organization does not change At the same time, during this period, the branch of Transaction Center 1 has completed the separation of 01 member unit of level I branch under BIDV, namely Hoan Kiem Branch and established 03 additional transaction offices such as Transaction Center 8, Transaction Center 9, Transaction Center 10
- From May 1, 2012 - now: This is an important milestone for the whole BIDV system in general and the branch of Transaction Center 1 in particular when BIDV officially transformed the organizational model from 100 % of State capital into joint-stock enterprises, entering the stage of comprehensive renovation of organization and operation after conversion into Joint Stock Commercial Bank for Investment and Development of Vietnam Accordingly, on May 1, 2012, the Board of Directors issued Decision No
30/QD-HĐQT establishing the branch of Transaction Center 1 - under BIDV
With great efforts and successes of the Transaction Office 1 h, the branch has been awarded the First-class Labor Medal awarded by the President in the 2006-2010 period, the Second-class Labor Medal in 2001- 2005, Third-class Labor Medal for the period 1997-
2001, Title of Labor Hero for the period 1997-2006 and many other noble awards These are encouraging results, the pride and honor of all employees of the Transaction Office 1
* Organizational structure of Transaction Center 1
The Board of Directors currently consists of 01 Director and 07 Deputy Directors
The organizational model is rearranged according to TA2 model Accordingly, the model of the Transaction Center 1 is arranged into 5 blocks: Customer Relationship (including corporate and individual management departments), Risk Management (including credit risk management and internal control department), Operations division, Internal management division and Subsidiary units (Transaction offices, savings funds)
Figure 2.1: Organizational structure of Transaction Center 1
2.1.2 Human resources of BIDV - Transaction Centehr 1
Up to now, BIDV - Transaction Center 1 has 08 transaction offices under with 240 staffs, including 20 management staffs, 45 Relationship Business offices (RBO), 29 Relationship managements corporations, 118 tellers, 7 international payment specialists, 21 Cash Vaults
111 Risk Management 2 Credit Management Intern Payment Depart
Market Planning Depart Financial Accounting
Table 2.1: Staff’s qualification at BIDV - Transaction Center 1
As you can see on the table, the bank tends to require of staffs having the Bachelor, and Associate Bachelor However, the percent of Bachelor at the bank are higher than the one of the Associate Bachelor BIDV - Transaction Center 1 has had recruitment method for staffs equipped perfect skills which are related to their work and are suitable with their work demands
Table 2.2: Staff’s gender at BIDV - Transaction Center 1
BIDV - Transaction Center 1 has the rate of female staff (73%), higher than the rate of male staff (27%) Although the bank has the disparity between male and female, they don’t have sex discrimination, and tend to spare no efforts to supply good training quality for all staff
Table 2.3: Staff’s age at BIDV - Transaction Center 1
As mentioned at the table, the rate of staff’s age at 26-35 accounts 57% They are young and have many experiences to meet the need of the bank as well as the customers
22 – 25 is the age accounting for 30% Although most of them just graduated, the bank has recruited them and trained them to be suitable with the work requirement
Table 2.4: Staff’s seniority at BIDV - Transaction Center 1
Currently, most of customers tend to desire that staffs have full of experience within 3 – 5 years Staffs with more than 3-year-seniority will have good behavior, warm welcome… As a result, BIDV - Transaction Center 1 are always equipped staffs with knowledge, meeting the high demands of customers Moreover, 16% of staffs having seniority are >5 years, 1 – 3 years account for 12%,