(Luận văn) low intrinsic motivation–problem of esnetworks vietnam co , ltd

t to UNIVERSITY OF ECONOMICS HO CHI MINH CITY ng hi International School of Business ep w n lo ad ju y th yi Nguyen Huu Quynh Phuong pl n ua al n va ll fu m oi LOW INTRINSIC MOTIVATION– PROBLEM OF at nh z z k jm ht vb ESNETWORKS VIETNAM CO., LTD om l.c gm MASTER OF BUSINESS ADMINISTRATION n a Lu n va Ho Chi Minh City – Year 2018 y te re th t to ng UNIVERSITY OF ECONOMICS HO CHI MINH CITY hi ep International School of Business w n lo ad ju y th yi pl Nguyen Huu Quynh Phuong n ua al n va fu ll LOW INTRINSIC MOTIVATION– PROBLEM OF oi m at nh z ESNETWORKS VIETNAM CO., LTD z k jm ht vb gm MASTER OF BUSINESS ADMINISTRATION om l.c n a Lu SUPERVISOR: TRAN HA MINH QUAN PhD n va y te re th Ho Chi Minh City – Year 2018 t to Executive summary ng hi Vietnam has recently been regarded as a prospective destination of foreign investment ep presented with its high-speed development In which Japan is the leading economic partner w n of Vietnam, the leader in ODA, the second largest foreign investor, the third largest tourism lo ad destination and the forth major trading partner of Vietnam As one of the leading However, y th ju there are potentially existing problems in the company which may reduce the competition yi pl edge of organization and harm to its culture This research was commissioned to examine al n ua what problem in Esnetworks Vietnam Co., Ltd., the causes leading to problem are and to n va suggest the validated solutions to deal with problem, which are in line with company’s policy ll fu and resources m oi Method of the analysis is combination between theory-informed and validated data, nh at collected through interview and survey to identify and confirm existence of the problem as z z well as causes and alternative solutions ht vb k jm From the general diagnosis of potential problem at Esnetworks Vietnam Co., Ltd., gm findings suggest the existence of low intrinsic motivation as the main problem The study om l.c examines 03 main Departments within the Company especially Business Avisory Department Low intrinsic motivation is analyzed in terms of its existence, antecedents, a Lu n consequences, and solutions are proposed to tackle such a problem Finally, this report n va indicates organization of actions to deal with problem in the lead time of one year and limited te re budget approved by the company y th t to Recommendations discussed focus on two main causes of low intrinsic motivation ng hi within the Company, which are job characteristic and Compensation and Benefits The report ep also investigated three accordant solutions: w n - Conduct clear job description lo Provide ideal working environment - Complete the system of compensation and benefits ad - ju y th yi pl Total estimated cost to implement these solutions is approximately 253 mil VND, al n ua which is in line with company’s approved budget of 255 mil VND while benefit brought is n va 453 mil VND fu ll Since there is limitation of time and resources constrain as well as research exist such as the m oi current company conditions data did not provide enough information and only sample of nh at interviews are performed However, the report provides diversified and validated data in z z conjunction with theory to propose meaningful suggestion for Esnetworks Vietnam Co., Ltd ht vb k jm to strengthen its personnel resources and organization behaviors om l.c gm n a Lu n va y te re th t to I INTRODUCTION ng hi The Company background ep Firstly established in Vietnam in 2008 with initial name is Flagship, Es Networks w Vietnam Co., Ltd (herein after referred as “Es Networks VN” or “The Company”) is 100% n lo ad directly invested by Es Networks Japan Co., Ltd As described in the Figure 1, the Company y th ju focuses on three segments: market entry, accounting/tax/labor, M&A and other services yi pl With an aim of establishment, Es Networks Vietnam’s main vision is to provide professional al n ua consulting services such as accounting, investment and Human Resource services for n va Japanese clients who have investment activities in Vietnam The Company provides fu ll consulting service for all procedures and problems from establishment to termination the oi m operation of the clients at nh z z k jm ht vb om l.c gm n a Lu n va y te re th t to ng hi Figure Business lines of Es Network Vietnam ep Currently, Es Networks VN has two offices in Ho Chi Minh City and Ha Noi City w n with around 56 employees Given the short history of operation from establishment, Es lo ad Networks VN owns the qualified employees who committed to provide the completed y th ju services, the Company gains clients’ belief, therefore, its clients portfolio is expanded by yi pl days Even that the market of consulting companies is became more competitive nowadays, al n ua the board of management and all of employees are building Es Networks VN’s position more n va and more stable especially in Japanese segment fu ll Today, due to the investment stipulating policy of Vietnamese government, Vietnam m oi becomes more and more attractive investment destination for foreign investors, in which nh at Japanese investors are not exception In advance of thinking about operation and generating z z profit, those investors have to carry out procedures in compliance with the Vietnamese law, ht vb k jm tax regulations and other administrative procedures For which, many consulting firms are gm launched Particularly, in segment of consulting firms that serving for Japanese investors, om l.c except the leading position of companies from Big group (PWC, Ernst and Young, Deloitte and KPMG), there are a big competition from second tier companies, in which the big rivals a Lu n of Es Networks VN are KT accounting Vietnam, AGS Vietnam and I-Glocal Co., Ltd In n te re va which, I-Glocal Co., Ltd is considered as the biggest rival The Company structure y th t to ng hi ep w n lo ad ju y th yi pl n ua al n va ll fu oi m Figure Organization chart of Es Network Vietnam at nh As mentioned above, Es Networks VN currently provides consulting services, the z company consists of three departments: Business Advisory Department (hereinafter referred z jm ht vb to as “BA Dept.”), Accounting Department (hereinafter referred to as “AC Dept.”) and Administration Department (hereinafter referred to as “AD Dept.”) accordingly Each k gm Department has its own function The AC Dept specializes in providing the accounting l.c om services such as: tax compliance, tax advisory, booking accounting books and financing n a Lu advisory BA Dept.’s main duties are seeking and directly accessing the clients, the y directly for Japanese clients Furthermore, BA Dept also providing Human Resource te re language excellently always play the role of listening, explaining and providing alternatives n va department with Japanese experts and other Vietnamese experts that can use Japanese th services including applying for visa, work permit, calculating payroll and declaration of t to personal income tax for Japanese clients Finally, AD Dept comprises director, manager, ng hi human resource team and internal accounting team that is in charge of maintaining the ep relationship with clients, authorities, internal human resources, financing, and further general w n management lo ad ju y th yi pl n ua al n va ll fu Table The Profit and Loss Summary of Es Network Vietnam oi m In 2015, Es Networks VN generated profit of 4,714 billion VND which is counted nh about 57.28% of Sales From 2015 to 2016 the operating profit increased 1.202 times while at z z the increase of that from 2016 to 2017 is up to 2.654 times In general, the Company is steady vb jm ht growth but it is still not reach its target over the years However, the different amount of k profit between actual and target is insignificant Moreover, the target amount of sale and gm profit increases rapidly over the years This means the Company is trying to expand its l.c om market, hence, the number of clients are raised by years However, the staffs of the Company a Lu just raise a little bit and the current staffs are now facing with the problem of overload n PROBLEM SYMPTOMS n va II th of 03 departments The detail of these initial interview is displayed in Appendix Due to y conducted the initial interviews with 02 staffs of BA Dept and AC Dept and 03 managers te re In order to have an overview about the backlog issues within the company, we t to the nature of work, AC Dept undertakes the accounting job for clients which is considered ng hi as the specialized job Therefore, they may have precise idea and judgment AD Dept is the ep non- profit department which is responsible for the internal operations and support other w n departments hence, they can stand on the management point of view to provide unbiased lo ad judgments in the general way In addition, the BA Dept is the department that generates the y th ju highest profit for the Company The jobs in BA Dept are also much more distinctive with yi pl the others while its job content changes depend on the request of the clients As the most al n ua important Departments of the Company which has to communicate with other teams while n va working, the manager and staff here can provide multidimensional outlook about the ll fu Company The study applies qualitative questions to investigate the interviewee’s point of m oi view about the problems existing in the Company nh at The turnover rate status z z ht vb From the interview with HR managers of the Company, the most prominent k jm symptoms that mentioned by many interviewers that currently the Company has high gm turnover rate In general, the turnover rates fluctuated over time In 2017, the turnover rate om l.c was 27% while in year 2016, such amount reached 20% The table is collected base on a Lu criteria by gender, age and departments of the Company According to the table, there is no n significant upward or downward trend of gender in turnover rate is apparent This means y te re essentially the same as that for men The table below shows the turnover rate from 2015 to n va turnover rates in the Company does not depend on the gender, the one rate for women was th 2017: t to ng hi 2015 2016 2017 45 55 47 53 49 51 70 30 75 25 80 20 20 20 60 15 25 20 55 20 25 15 60 27 ep Gender (%) Male Female Age (%) Under the age of 32 32 and above the age of 32 Department (%) Administration Department Accounting Department Business Advisory Department Turnover rates (%) w n lo ad ju y th yi pl ua al n Table Turnover rate of Es Network Vietnam from 2015 to 2017 va n As stated in the above table, younger employees had higher turnover The HR ll fu oi m manager believes that the younger ones are willing to take risk and challenge in their job, at nh from which they can gain more knowledge and experience for their future career, hence, they z quite easy to move and out the Company On the other hand, middle-aged employees who z vb jm ht are from 32 year olds and above had lower turnover, probably because the middle-aged k employees has the tendency to stick with stable job, they conceive the important of their job gm Moreover, they afraid to change the working environment as starting the interview and make om l.c acquaintance of new job, new colleague and new working style at their age a Lu Finally, those with different job characteristic suffer higher turnover For example, in n va year 2017, the turnover rate for those with Administration Department was 25%; for those n y te re with Accounting Department was 15%; while such rates of Business Advisory Department Advisory Department requires that employees must to take the time to research and update 10 th was up to 60% This pattern may arise because of job characteristic The specific of Business t to However, I think the Company does not have the adequate benefit and allowance policy ng hi Besides the 13th month bonus, we not receive any benefits to encourage the spirit of work ep Actually, everyone go to work for the main purpose is salary Comparing with other w n companies in the same industry, the salary of our company cannot be considered as high lo ad segment While we serve the high class of clients with almost 1,5-2 times service fee In y th ju order to that, the employees have to spend most of their effort to provide better services yi pl Therefore, I think we desert the higher salary and more benefits from the Company so that al n ua we could become loyal and willing to dedicate more for the Company n va Interviewer: Thank you so much for your time I hope you and your colleagues will greatly ll oi m Interviewee: You are welcome fu handle your jobs at nh z Transcript 3: The interview of Ms Dang Tran Bich Van, manager of Administration z vb Department: jm ht Interviewer: Good morning, currently I’m doing the thesis for my MBA course The course k gm requires to clarify the existing problems in our company and figure out the solution for them l.c om I need to know your point of view about our company Hence, is it possible for you to answer y Interviewee: I’m manager of Administration team Actually, I’m the only one who is te re Interviewer: Currently, what is your position in the Company? n va Interviewee: Yes, of course I can share with you things i know n a Lu some questions? th responsible for human resource in the Company I all the stuffs related to labor, insurance, 45 t to PIT of the employess In addition I also the one who listen the complaint of the employees ng hi regarding to the management method of the Company These complaints are not really ep official, because it arises from daily conversation when we have lunch or go out for coffee w n Interviewer: So accourding to these conversations and your daily job, you realize any lo ad significant HR problem in our company? y th ju Interviewee: Actually, in the end of 2017, our mother company- Es Networks Japan prepared yi pl to become Initial Public Offering (IPO) In order to that its company profile as well as al n ua their company profile of its subsidiary have to make up in the most sufficient way They n va asked us to a survey regarding to level of job satisfaction, job engagement, agility, fu ll commitment, alignment in order to have suitable plan for management By this survey we m oi found that the level of job commitment in Business Advisory Department is very low at 38% nh at while it is 43% and 48% for Accounting Department and Administration Department z z alternately The other criteria reach acceptable ratio from 50% to 70% ht vb k jm Interviewer: What can this result show us? gm Interviewee: Compared to our subsidiary in Singapore and Thailand, this result is significant action plan to clarify the reasons and solution for those problems n a Lu Interviewer: Can you give me the result of this report? om l.c different It is specific in Vietnamese office, therefore, the management need to have the va n Interviewee: Ok, no problem y te re Interviewer: Anything else that you think our company is facing with? the suitable candidate to fill the blank position 46 th Interviewee: Ah, currently, many employees resign And the Company gets headache to find t to Interviewer: In your opinion, what is the main reasons of this situation? ng hi Interviewee: I think that some of them cannot stand for the pressure anymore; they probably ep find another suitable job Many staffs who have family cannot stand in our company for a w n long time They need time to take care their small family therefore, it is not rare when lo ad employees give up after the probation Currently, most of our staffs are young and single y th ju The first reason is for the new staffs who have just graduated from the university, they have yi pl enough energy and passion to dedicate for the company I had several conversations with my al n ua colleagues, most of them think that the company is an ideal environment for accumulating n va the experience When they have enough ability to find a better job in another company, they fu ll will quit their job As a consultant, we have chances to face with many different fields, m oi challenge yourself with different questions from clients and our knowledge and experience nh at can improve day by day For the new staffs who already have experience in consulting field, z z when entering the company, they realize that even if they try to work and dedicate for the ht vb k jm company in a long time, they still cannot have chance to develop their position in the gm company Each department has only 01 manager, above the manager, there is 01 Japanese company has 03 managers and it is really hard to replace that position om l.c General Director Generally, respectively with the number of the department, the whole a Lu n Interviewer: Ok, thank you for your support va n Interviewee: You’re welcome y te re 47 th Transcript 4: The interview of Mrs Chi, a manager from Accounting Department: t to Interviewer: Hi Mrs Chi, I got an small research at school that including the problem that ng hi staffs are now facing at the company Would you please kindly spend around 15 minutes to ep answer few questions about it? w n Interviewee: Yes, of course lo ad Interviewer: How long have you worked here? y th ju Interviewee: I have worked here for more than years yi pl Interviewer: Oh, It’s a quite long time Have you ever received any complaint from your n ua al employee about their job? n va Interviewee: Oh, not much, I rarely receive responses, complains or something like that when fu ll I ask them They not seem interested in giving ideas even that new policy of The Company m oi affects to their rights The employee may just concentrate on their work and are afraid they nh at have to face with complexity if they take comment or make requirement for getting z z promotion to The Company ht vb k jm Interviewer: What is the common thought that you find at your subordinate? gm Interviewee: During long time working with them, I realize that the employee wants to which may cause a risks and difficult challenge om l.c maintain their stable job They just want to keep current tasks and not want to take change n a Lu Interviewer: Is there any problem that you think our company may face with recently? y te re same department They no really cooperate with other department activelly while n va Interviewee: I think that the employees tend to communicate with their colleagues in the 48 th working It’s can be understand that they want to protect their benefit, not want to receive t to more sub tasks because they have enough jobs to And it’s hard to change their thinking ng hi and behavior And of course, this may partly affect the working efficiency ep Interviewer: Ok Thank you for your time w n lo ad Transcript 5: The interview of Mr Hoa, a senior from Accounting Department: y th ju Interviewer: Hi Mr Hoa, I got a small research at school that including the problem that yi pl staffs are now facing at the company Would you please kindly spend around 15 minutes to al n ua answer few questions about it? n va Interviewee: Yes, of course fu ll Interviewer: How long have you worked here? m oi Interviewee: I have worked here for more than year nh at Interviewer: What is your main duty at the Company and what are your daily jobs? z z Interviewee: I am responsible for accounting of the clients Currently, I have five (05) clients, ht vb k jm I’m collecting their documents, booking for their accounting book, calculation and gm declaration of their monthly, quarterly and annually finance reports and tax returns I have om l.c to ensure an accurate and timely monthly, quarterly and year end close, processing of positive pay transactions a Lu n Interviewer: During time working here, what are the good and not good things which is va n existing at your Company? y te re Interviewee: I am satisfied with my current tasks It is a stable job so that I can arrange my I also participate in teaching accounting course So with stable job, I have time to improve 49 th time to my private hobbies and maintain my teaching Actually, besides my working here, t to and develop myself And I think this is the good thing of working here However, I find the ng hi bad thing is that salary and other benefit are low The employee must work overload in peak ep season but not received much from the Company This is an important reason which makes w n employee want to leave Employee not get any promotion, so they feel disappointed and lo ad intend to leave for finding out the new chance y th ju Interviewer: I think the salary is depend on job characteristic And you intend to leave the yi pl job or take some change in your task to get your promotion? al n ua Interviewee: Oh no Currently, I have not yet had plan for change new job Because I’m only n va good at accounting and just feel confident when working in this field Maybe in the future, fu ll when I feel so boring this position at the Company I may consider to find new environment oi m for my development nh at Interviewer: It’s enough for today Thank you so much for your support z z vb I Appendix 2: In-dept interview jm ht k Transcript 1: The interview of Ms Lan Anh, the manager of BA Dept.: gm Interviewer: Last time we have performed a small interview on the problem that staff are l.c om now facing at the company And you have told me there are some problem occurring in your a Lu company The staff are on work overload due to increase of clients while the number of n n va employee is unchanged So, in your opinions, what is the main issues? th 50 y of expanding operating scale of the Company The number of clients is growing up lead to te re Interviewee: I and my subordinates are working under high pressure especially in duration t to development of service providing We have to multitask, make a research in variety fields ng hi to catch up with the pace of market ep Interviewer: Would you mind explaining that again, please? w n Interviewee: As I mentioned, I am the only manager of Business Advisory Department My lo ad responsibilities includes review and check all information and result before reporting to the y th ju clients I also take responsible for every acts from my subordinates That means I have to yi pl wait for my subordinates to complete their tasks for review and check However, each staff al n ua is charge of some clients, follow and support them from initial establishment until n va development process and operating termination The staff have to work under tight deadline fu ll and ensure the punctual This schedule is also applied for me m oi Interviewer: You may be not satisfied with your job due to work overload and high pressure? nh at So, you think you can balance personal life and work? z z Interviewee: That’s right! It’s difficult for me to balance personal life and work I don’t have ht vb k jm much time to take care my children because in some period I have to leave my home in the gm early morning and come back home in the late evening I almost spend my time at the office om l.c and even lack of sleep which impacts my health I think I can work for long time if this situation is repeated again and again n a Lu Interviewer: Is there any issue beside above mentioned problem? y te re promotion and reasonable benefit for my efforts This makes me feel dissatisfied with n va Interviewee: The more important one is not full recognition I have not yet received th commitment for the company 51 t to Interviewer: Oh, this means you are facing with the problem of low extrinsic motivation ng hi You feel disagreed with the company policy and the treatment of company also ep Interviewee: I have compared and found out I don’t know why the company did not pay w n attention to this matter lo ad Interviewer: Thank you for your share I think it is the valuable problem need to be ju y th investigate more yi pl al n ua Transcript 2: The interview of Ms Truc, the staff of BA Dept.: n va Interviewer: Good afternoon, I have collected some ideas of our colleague in our Company fu ll and figure out some common symptoms Could you give me some idea about these point of oi m view? nh at Interviewee: Ok What is that problem? z z Interviewer: Do you remember that in the end of last year, we did a survey regarding to the ht vb k jm job satisfaction, …? gm Interviewee: Yes, I om l.c Interviewer: The result indicated that the Company is facing with the problem of low job commitment That means the employees not have the intension to work for the Company n a Lu in long-term What you think about this situation? y te re employees cannot handle for a long time Most of employees, especially young employees n va Interviewee: As I mentioned in the last interview, as large amount of workload, the 52 th who want to gain experience and knowledge, they accept to take hard job for the first time t to After or working years, they tend to quit their job and find another chance in other ng hi companies with higher salary ep w n Transcript 3: The interview of Mr Nhut, the staff of Accounting Department lo ad Interviewer: Last time we have performed a small interview on the problem that staff are y th ju now facing at the company And you have mentioned to work overload due to unreasonable yi pl distribution of work So, what does this mean? al n ua Interviewee: During working time here, I realize that the distribution of work is unsuitable n va An old staff must many tasks or even work overtime while other one may have nothing ll fu to m oi Interviewer: Could you describe it in more detail? nh at Interviewee: In my opinion, almost new staffs are not be trained carefully Because of the z z working overload, the experience staffs not have time for training new staffs Therefore, ht vb k jm they have to spend too much time in order to acquaint with job Besides that, at the first stage gm of working, it takes new staffs a lot of time to find the information of clients because there om l.c are no any regulation and instruction about save information, classify and arrange data We're all busy, but sometimes we go through periods where the work piles up and it seems like it n a Lu might never end You might have so much work that it's too intimidating to even start n va Interviewer: Have you ever offered to supervisor or person in authority for rearrangement of te re work? y th 53 t to Interviewee: Sometime I make a complaint to my manager, she has promised to improve this ng hi situation, but until now I have not yet received any changes Obviously, if this status keeps ep repeating, it can also put me into a continual cycle of low motivation w n Interviewer: Yes, I got it As you talked, unreasonable distribution of work is one of the main lo ad problem cause low intrinsic motivation So, thank you again for your idea y th ju Appendix 2: Internal survey of the Company in 2017 yi Không đồng ý pl Rất không đồng ý Đồng ý Rất đồng ý n ua al Không ý kiến va n Tơi u thích hài lịng với công việc ll fu oi m Tôi hỗ trợ đầy đủ phương tiện nguồn lực để hồn thành tốt cơng việc om l.c gm n a Lu n va y te re th 54 k 10 Công việc thú vị có nhiều thách thức jm Tơi ln góp ý thẳng thắn phạm lỗi công việc ht Cấp lấy ý kiến công việc yêu cầu đề xuất có vb Cấp hỏi ý kiến tơi có vấn đề liên quan đến cơng việc tơi phụ trách z Cấp tạo hội công việc để phát huy tốt lực thân z Tôi hiểu rõ phạm vi công việc trách nhiệm cơng ty at Những nỗ lực công việc ghi nhận xứng đáng nh Tôi làm công việc theo chuyên môn đào tạo t to 11 Cơng việc khơng địi hỏi thường xun phải làm việc ngồi ng hi ep 12 Lượng cơng việc phân bổ phù hợp với số lượng nhân công ty w 13 Tôi cảm thấy khuyến khích để tìm cách làm tốt n lo ad 14 Công việc có đổi ngày tơi có mục tiêu công việc rõ ràng y th ju 15 Công ty hoạt động có hiệu cao yi pl 16 Mức lương công ty cạnh tranh so với những công ty khác lĩnh vực n ua al n va 17 Tơi sống hồn tồn dựa vào thu nhập từ cơng ty fu ll 18 Tôi tôn trọng tin cậy công việc oi m at nh 19 Công ty tạo cho nhiều hội thăng tiến z z 20 Cơng ty có chế độ phúc lợi tốt om n a Lu n va y te re th 55 l.c 26 Đồng nghiệp sẵn sàng hỗ trợ, phối hợp để xử lý công việc gm 25 Tôi phổ biến hiểu rõ mục tiêu sách phúc lợi cơng ty k 24 Cơng ty có tiêu chí đánh giá lực nhân viên để xét tăng lương hợp lý jm 23 Tiền lương tương xứng với kết làm việc ht 22 Công việc ổn định, không lo lắng vấn đề việc làm vb 21 Tôi phổ biến hiểu rõ cấu tổ chức, điều kiện thăng tiến công việc t to 27 Đồng nghiệp thân thiện thường giúp đỡ lẫn ng hi ep 28 Đồng nghiệp quan tâm, chia sẻ khó khăn cơng việc sống w 29 Tôi đồng nghiệp phối hợp hồn thành tốt cơng việc n lo ad 30 Tôi làm việc lâu dài công ty ju y th yi Thông tin cá nhân pl Q Anh/Chị vui lịng cho biết: n ua Giới tính al n Đang ll fu Nữ va Nam oi nh Thuộc Bộ phận at Quản lý m Nhân viên z z Business Advisory Team ht vb k jm Accounting Team Tuổi: ……………………………………… Đã làm việc Es Networks thời gian (năm): ………………………………… om l.c gm Internal Team n a Lu n va y te re th 56 t to REFERENCES ng hi Ariani, D W Why am I burnout and engaged? 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