National Economics University National Economics University Faculty of International Education Enhancing staff motivation at Vinh Xuan Company Conducted by Group 29 Huynh The Loi Tran Nguyen Hoang Qua[.]
Group 29 [NATIONAL ECONOMICS UNIVERSITY] National Economics University Faculty of International Education Enhancing staff motivation at Vinh Xuan Company Conducted by: Group 29 Huynh The Loi Tran Nguyen Hoang Quan Pham Thi Trang Vu Hoang Hai Nguyen Minh Tung Supervisors: Mr Daniel Van Houtte Ms Trinh Thu Giang Hanoi, 2012 0|Page ACKNOWLEDGEMENT First of all, I would like to express my deep gratitude to my advisers Mr Daniel Van Houtte and Ms Trinh Thu Giang whose guidance and encouragement have been vital for us to complete this research study Secondly, I would like to send my thanks to a large number of Vinh Xuan company’s staffs, my friends who helped me a lot in fulfilling questionnaires, supplying needed information, giving advices There is too much to say in too few words but without each and every one of you, this could never have been accomplished I truly appreciate you all! 1|Page TABLE OF CONTENT ACKNOWLEDGEMENT .1 EXECUTIVE SUMMARY INTRODUCTION Rationale Research objective Research questions Scope of research 10 Methodology .10 5.1 Data Collection Method 10 5.2 Data Collection Result 10 CHAPTER I: LITERATURE REVIEW 12 I Definition of Staffs motivation .12 Definition of motivation: 12 Definition of Staff motivation 12 The role of staff motivation .12 II Theoretical motivation 13 Maslow’s hierarchy of Needs 13 The Two-Factor Theory Herzberg 14 The equity theory of J Stacey 16 CHATER II: AN OVERVIEW ABOUT VINH XUAN COMPANY 17 I General introduction about Vinh Xuan Company 17 Key milestone: 17 II Vision-Mission, Core values, Company culture: 19 Vision – Mission: .19 Core values: Vinh Xuan Company commits to build customer’s belief through providing quality IT product 19 Company culture: .19 VXC’s staff structure .20 2|Page CHAPTER 4: MAIN FINDING 22 I Analyzing current situation of staff motivation at VXC 22 High current level of staff satisfaction 22 General opinion of staff on motivation 23 Analyzing VXC staff motivation based on Maslow’s hierarchy of needs .25 Analyzing of VXC staff motivation based on Herzberg’s two factor theory 26 4.1 Analyzing hygiene factors on employee motivation at VXC 26 4.2 Analyzing motivation factors on employee motivation at VXC .32 4.3 Summary of findings and reasons for staff de-motivation .35 4.4 The motivation factors for staff 36 CHAPTER 5: RECOMMENDATIONS FOR ENHANCING STAFF MOTIVATION AT VXC COMPANY .38 I Recommendations for enhancing staff motivation at VXC 38 Improving working conditions 38 Modifying Compensation and Benefits system .38 Designing an Effective Reward and Recognition Program .40 Building a standard recruitment procedure and diversifying labor resource in recruitment .41 Creating chances and good conditions for staff to achieve four needs levels as Maslow recommended .42 CONCLUSION 43 REFERENCE .44 APPENDIX 45 3|Page LIST OF FIGURE Figure 1: The Maslow’s hierarchy of need Source (BBP professional, 2005) .12 Figure The two-factor theory of motivation .14 Figure 3: VXC’s revenue from 1997 to 2011 (billion VND) .17 Figure 4: The VXC’s staff structure categorized by Sex .19 Figure 5: Age profile of the employees 20 Figure 6: VXC staffs’ satisfied level with current job 21 Figure 7: VXC staffs’ opinion about important level of each hygiene factors 22 Figure 8: VXC staffs’ opinion about important level of each motivation factors 23 Figure 9: VXC staffs’ opinion about important level of each motivation factors 24 Figure 10: VXC staffs’ satisfied level about the internal fairness in C&B 29 Figure 11 VXC’s staffs’ satisfied level of recognition of Supervisor 32 Figure 12: VXC staffs’ satisfied level about promotion opportunities 34 4|Page EXECUTIVE SUMMARY In the context of global economic integration, competition in computer market is becoming more and more aggressive, especially from domestic companies such as FPT, Tran Anh This causes increasingly intellectual blooding among companies Moreover, the current human resource shortage in the computer market threatens the quality and stability of computer companies The rate of intellectual blooding has increased year by year To attract talent people, companies have applied different solutions to meet their demand of human resource This flow of staffs among computers is one of the important forms of social and enterprises’ human resource deployment As a result, Vinh Xuan Company has been facing a tough difficulty in human resource for years A lot of qualify staffs have moved to the competitor companies, and following big customers has left with them This affects so much on business operation of the company So how enhance staff motivation to have their commitment with the company? It is considered as a sensitive and compulsory task in human resource department Actually, not all organizations recognize the importance of it For Vinh Xuan Company, it is time to find out the reason why there have had a lot of people leaving the company From this, the company will have effective solutions to retain staff because staffs just only contribute their best effort to the company when they have motivation at work This research is divided into four chapters as following: Chapter I- Literature Review: Three authors will be applied: The two-factor theory of Frederick Herzberg, The Maslow’s hierarchy of needs theory, the equity theory of J Stacey to analyze the problems Chapter II- Methodology: The methodology part includes data collection method, data analysis method and the date collection results after survey The research has been done mostly at Vinh Xuan Company Head Office in Hanoi with participant of 41 staffs in the company Most data were derived for the period from 2008 to March 2012 in relation to motivating elements such as working conditions, compensation and benefits, reward & recognition, promotion opportunities, recruitment Chapter III- An overview about Vinh Xuan Company 5|Page Chapter IV- Main Finding: The main finding from survey questionnaires with representative from the current situation of staff motivation in trade department to analysis and assessment about staff satisfaction and motivation at work as well as factors effect on motivation employee Chapter V- Recommendation: Finally, our report will contain some recommendation to develop solutions for enhancing staff motivation at work 6|Page INTRODUCTION Rationale In the late 80s, Human Resources Management became a popular term and gradually replaced the old term Personnel Management It is the signal of widespread acknowledgement of the public over increasing importance of this special resource to any organization and the appearance of a new management style focusing on employees Many big companies consider human resource as a long-term strategy for the development However, Vinh Xuan Company has to face many problems in human resource that is a constraint for the development of VX Company The first problem in Vinh xuan Company is that the number of employees does not meet a need of development Currently, the number of employees in the company is 81 employees while company needs 100 people to meet its development It is illustrated by the fact that there is an overload problem in Vinh Xuan Company especially in sales department According to the statistics, each salesperson has to deal with about 20 customers per day which may lead to overload problem Consequently, the quality of services is not good enough to satisfy the demand of customers The second problem Vinh Xuan Company has to face is brain drain Currently, Vinh xuan Company is standing at a challenge of high rate of staff turnover, affecting the company’s operation Many key staffs are looking for more appealing opportunities outside the company with very competitive remuneration package Most of them have left the company for pursuing the new goals of their career path in a new environment From 2008 to 20011, the number of employees at Vinh Xuan Company was significantly changed Occasionally, four or five staff resigned the work in a year Compare to other companies in the same industry, Vinh Xuan Company has a higher level of staff turnover FPT Company has an average of two employees per year which have left the company while this rate in TranAnh is a little higher with average of people More importantly, the staff turnover not only shows in the numbers of staff turnover but also the importance of the positions which have left the company It is illustrated by the fact that from 2009 to 2012, there are two times that the manager of sales department has left the company while there is no key staff in FPT company and TranAnh company occurred this problem There are many causes which lead to this situation In the side of staff, some thought that Vinh Xuan Company’s working environment was boring, treat policy was unsatisfactory Some claimed that the salary was low and Information System was unqualified and did not 7|Page support for their work, they were always overloaded and worked over-time day by day The others left because they were not highly appreciated, etc… In general, the company has coped with the difficulties in motivating employees The current economic situation is tough, minimizing cost and trying to make it less effect on running business is a big problem for many business owners Before, companies usually “downsizing” the staff and adjust the remuneration for labor, and employees have to the work of left-people Nowadays, that kind of solution cannot bring anything good for the company, but minimizing cost However, the price they pay is even more horrific: along with a number of staff that has to leave, the image of company will also be affected The owners have to think about more solutions, make employees work for them with all their hearts and control the salary For each level of employees, each department, each specializing in different sectors should adopt incentives and other compensation that make sense Last but not least, when apply incentive and preferential treatment for employees; the employers should put them into that position and answer honestly “with this treatment, can I work more efficient or not?” Research objective With so many above mentioned problems, the author decided to the research on “Enhancing staff motivation at Vinh Xuan Company” The objectives of this research are: - Analyzing current situation of staff motivation at Vinh Xuan Company - Finding out motivation factors and de-motivation factors at Vinh Xuan Company - Proposing recommendations to enhance staff motivation at Vinh Xuan Company Research questions This research is designed to answer the following questions: - What are the current situations of human resource on development and motivation perspective in Vinh Xuan Company? - What are the factors which affect the development and motivation in Vinh Xuan Company? - What are the solutions to develop Vinh Xuan Company’s human resource? 8|Page Scope of research - The research was carried out in Hanoi, where Vinh Xuan Company’s head office is located VX has branch in other provinces However, due to the limitation of long distance and time constraint, the author could not come to these offices to conduct research - The research concentrated on enhancing motivation of employee at staff-level because in VX Company, approximate 90% employees are at staff level - Company’s data was collected from 2008 to June to 2012 - Timing for primary data: February, 2012 Methodology 5.1 Data Collection Method In order to accomplish the end objectives for which this research is being conducted, both qualitative and quantitative techniques will be used Data collection, both primary and secondary has been divided into two phases Phase constitutes exploratory research aiming to look for secondary data from different sources as well as qualitative method to gather primary data necessary for the next step Phase accompanies quantitative techniques in the form of survey to gather finalized results to be analyzed Phase 1: Firstly, secondary data analysis like books, internet, magazines, newspapers and journals was also used to provide additional information Phase 2: The survey questionnaires were used as the basic research design Data were collected by self-administered questionnaires, from sample respondents Structured questionnaires that were designed were utilized to collect data Responses were measured by five levels ranging from very dissatisfied to very satisfied category The sample group consists of 41 persons coming from trade department 5.2 Data Collection Result a Survey results The number of surveys that were complete was 88 in total of 100 Respondents participated in the survey; selected demographic characteristics of the sample in the table 1: 9|Page