NATIONAL ECONOMIC UNIVERSITY BUSINESS SCHOOL E BBA PROGRAM ENHANCING LABOR MOTIVATION IN BAO QUANG COMPANY Bachelor of Business Administration in English (E BBA) Thesis Supervisor Mcs Nguyen Tuan Minh[.]
NATIONAL ECONOMIC UNIVERSITY BUSINESS SCHOOL E-BBA PROGRAM ENHANCING LABOR MOTIVATION IN BAO QUANG COMPANY Bachelor of Business Administration in English (E-BBA) Thesis Supervisor : Mcs Nguyen Tuan Minh Student : Nguyen Quang Hung Class : E-BBA 7A HANOI, 2019 ACKNOWLEDGEMENT First of all, I want to show my appreciation as well as deepest gratitude to everybody who helps me made this study possible My special thank go to Mr Nguyen Tuan Minh, a devoted teacher who supports me most of the time I have to say that his guide and instruction have a big impact on inspiring me to make this thesis more logical and smooth Besides, I would like to thank Mrs Minh and Mr Dat, who is the General Directors and Mrs Nhung, who is General Accountant of Bao Quang Company because of their enthusiastic support and precious data that they provided Also, I want to express my gratitude to NEU, BSNEU and their teachers, staffs for generating an ideal studying environment, giving me a lot of knowledge and experience over the course Finally, I wish to thank all my friends who helped and supported me throughout 3-year period Student Quang Hung TABLE OF CONTENTS ACKNOWLEDGEMENT ABBREVIATION .4 EXECUTIVE SUMMARY CHAPTER – INTRODUCTION 1.1 Rationale .6 1.2 Research Objectives 1.3 Research Questions .7 1.4 Research Methodology 1.4.1 Research process 1.4.2 Data collection 1.4.3 Data Processing .9 1.5 Thesis structure 10 CHAPTER – THEORETICAL FRAMEWORK OF EMPLOYEE MOTIVATION 11 2.1 Definition 11 2.1.1 Concept of labor motivation 11 2.1.2 Creating labor motivation 12 2.2 Theories of motivation .14 2.2.1 Maslow’s Hierarchy of Needs 15 2.2.2 The Herzberg’s Two-Factor Theory 17 2.3 Theoretical model of labor motivation .20 2.3.1 Theoretical model 20 2.3.2 Hygiene factors 22 2.3.3 Motivator factors 26 CHAPTER – THE CURRENT SITUATION OF MOTIVATION IN LABORS AT BAOQUANG LIMITED COMPANY 28 3.1 Introduction of company 28 3.1.1 Formation and Development 28 3.1.2 The company structure 28 3.1.3 The features of Human Resource in BQC 30 3.2 The current motivations in BQC 32 3.2.1 Sample description 32 3.2.2 Hygiene factors 32 3.2.3 Motivator factors 39 3.3 Evaluating the motivations in BQC 43 3.3.1 Strengths .43 3.3.2 Weakness and causes 43 CHAPTER – RECOMMENDATION TO IMPROVE THE MOTIVATION IN BQC 46 4.1 The current orientation of BQC 46 4.2 The point of view of the author 46 4.3 Recommendations for improving 46 4.3.1 Hygiene factors 46 4.3.2 Motivator factors 48 CONCLUSION 50 REFERENCES 51 APPENDIX A - QUESTIONNAIRE 53 APPENDIX B 56 ABBREVIATION BQC HR HRM VND Bao Quang Company Human Resource Human Resource Management Vietnam Dong LIST OF TABLE Table 3.1 Labor structure according to age 32 Table 3.2 Labor structure according to gender 33 Table 3.3 Labor structure according to management decentralization .33 Table 3.4 Labors’ assessment of work conditions in BQC 34 Table 3.4 Labors’ assessment of Relationship in BQC 35 Table 3.5 Minimum wage according to position in BQC in 2018 .37 Table 3.6 Allowance per month of BQC in 2018 .38 Table 3.7 Labors’ assessment of salary in BQC 39 Table 3.8 Labors’ assessment of welfare in BQC 40 Table 3.8 Labors’ assessment of welfare in BQC 41 Table 3.9 Labors’ assessment of bonus in BQC 42 Table 3.10 Labors’ assessment of training program in BQC .43 LIST OF FIGURE Figure 1.1 Research process for factors affecting labor motivation in Bao Quang Company .9 Figure 2.1: Monroe’s motivated sequence 15 Figure 2.2 Maslow’s Hierarchy of Needs 18 Figure 2.3 Herzberg’s two-factor theory 19 Figure 2.4 Relationship between Maslow’s Hierarchy needs and Herzberg’s theory 23 Figure 2.5 Theoretical model of labor motivation 24 Figure 3.1 Organizational Structure of Baoquang Limited Company 31 EXECUTIVE SUMMARY Nowadays, a variety of companies have to face the challenges stemming from fierce competition as well as the instability of the economic environment in Vietnam and Bao Quang Company is not an exception In order to survive and develop in such a competitive environment, it is necessary for every company to optimize their HR Management Bao Quang Company is a firm has 5-year period of forming and developing The company mainly produces high-quality ceramics Until now, the firm has two factories and nearly 400 employees During the period I was an intern at this firm, I had realized that in recent years, there are some problems in terms of creating motivation To be more specific, some of the methods that BQC applied to inspire their employees are out-dated and inappropriate to the majority of labors Base on the results of the research, we can determine the current situation of motivation in BQC By using Herzberg’s two-factor theory, the author had assessed factors which influence labors’ motivation: Work conditions, Relationship, Salary, Welfare, Bonus, Training Program and Promotion After using excel and mean value to analyze the results, we have concluded that the firm has several strengths in this field which are needed to maintain such as work conditions, salary, performance appraisal and bonus Besides, there are still some weaknesses in the aspects of relationship between labors, welfare, training program and promotion From the result, the author also proposes some recommendation for the firm to improve the motivation as well as inspire labors to work harder and more efficiently CHAPTER – INTRODUCTION 1.1 Rationale For every country, people are always the most important and fundamental resource that decides the existence, development as well as creating the position of that country in the world For businesses, human resources is a key factor to create strength for businesses Human resources have a tremendous influence on the economic and social development of a country and the competitiveness of an enterprise Human resources management is considered as a basic element to meet the strategic objectives of enterprises In the current stage of development, in the trend of global economic integration, businesses to achieve high efficiency in the production and business process must recognize the role of human resource management However, to effectively use human resources is not a simple matter, it requires leaders and managers to have a clear view and to grasp the nature, content of the problem as well as doctrines, management models to be able to find an organization that fits their characteristics and conditions From there, it is possible to develop all its human resources and potentials Therefore, to lead their employees successfully, want to give them peace of mind to work, managers must know how to motivate them Wages must be fair and scientific as the biggest encouragement for employees in the current period But in the long term, it is the immaterial stimulation such as the work itself and the environment of the working which would be a great source of encouragement It also helps employees feel comfortable, proud and enthusiastic Therefore, the issue of creating motivation in the current period needs to be concerned and invested in a proper and timely manner Bao Quang Company, a company has five years of forming and developing, has invested a lot of attempts to have two production workshops As a production company, the firm’s production quality has been affected considerably by the effectiveness of its human resources, especially labors motivation in workplace In recent years, the company has made great efforts in creating motivation However, the company’s motivation still exist many shortcomings and it is still an issue that needs to be solved and solved for the company management More specifically, the current job satisfaction of the employees is quite low Depending on the knowledge that I have learned at National Economics University, especially EBBA program as well as the responsibility of an intern who has worked in the firm for nearly months, the author had decided to choose the research topic; “Enhancing labor motivation in Bao Quang Company” as the thesis of graduation 1.2 Research Objectives Identifying factors which have an impact on generating motivation in BQC Analyzing the current situation of the factors above Suggesting solutions which are practical and possible for BQC to improve the motivation 1.3 Research Questions In order to achieve the objectives above, there are several questions which have to be answered: What are the key factors influencing the motivation in BQC? What is the current situation of these factors? How the company can improve these factors to generate more motivation in BQC? 1.4 Research Methodology 1.4.1 Research process The research process is illustrated as below: Figure 1.1 Research process for factors affecting labor motivation in Bao Quang Company ... resources, especially labors motivation in workplace In recent years, the company has made great efforts in creating motivation However, the company? ??s motivation still exist many shortcomings and it is... invested in a proper and timely manner Bao Quang Company, a company has five years of forming and developing, has invested a lot of attempts to have two production workshops As a production company, ... the responsibility of an intern who has worked in the firm for nearly months, the author had decided to choose the research topic; ? ?Enhancing labor motivation in Bao Quang Company? ?? as the thesis