The employee motivation activites at an hoi vitexco company, ltd

I ~ i , • HO CHI MINH UNIVERSITY OF FOREIGN LANGUAGE AND INFORMATION TECHNOLOGY DEPARTMENT OF INTERNATIONAL BUSINESS ADMINISTRATION GRADUATION PAPER ~m~ I I I _ TOPIC: , I THE EMPLOYEE MOTIVATION ACTIVITES AT AN HOI- VITEXCO COMPANY Student's name: Nguy~n Thj T6 Duyen Class: KD0306 Advisor: Hoang HWln, MBA ! ~.-ooo-: -o~=.:= -o~ =-==o~ ':=:::-'::Q~=:::::::o~::;-==-o~=.-o~::::::::=:::o~: _.-o~===-o~ =::-=o~ :::::::::.::o~;:." o~:::::::::'-::Q~::::::::::::o~ ::::::::::::-o~::.==-o~ ===-o~:.:=.-o~.:::::::-::=o~=:=:.:::.::o~=::::::-:0]1 il 00 0° II 10 ( [l Il Il Il Administration Il conditions and an opportunity to write this Graduation paper 00 JI ACKNOWLEDGEMENT I would like to thank HUFLIT University and its International Department's o~ Business 00 oil II lecturers and staff who have given me good r I would like to express my gratitude to Mr Hoang Huan whose stimulating Il suggestions, invaluable advice and criticisms helped me during all the time of Il JI research and writing this Graduation Paper I have, furthermore, to thank his TI Il reviewing and correcting thoughtfully and patiently from times to times the JI completion of this paper which would have been impossible to materialize without TI 10 Il ~oo 00 'o~ his help, contribution, direction and encouragement .0 II 10 I" I ) Il Il I would also express special thanks to the Board of Directors of An Hoi 01 VITEXCO Manufacturing, Trading Services, Garment Company, Ltd for having TI given me the permission to the necessary research work and to use the TI departmental data that relate to my topic Especially, many thanks are conveyed to o~ ~~ Ms Luu Thi My Hanh from The Human Resource Department of An Hoi 0 11 Vitexco for all her help, support, interest and valuable hints o °0 oil ~ ~~ encouraging and all the things they have done for me during the time I stayed at ,0 the university It is affirmed that without their encouragement and help, I could not JOI have gone to the end of the way Oil 11 Il ~o [ [ [ II o Il fl go 10 I ,0 With my deep gratefulness, I would like to thank my parents for supporting, ~o • 1, o ~o II • Finally, I am deeply indebted to all friends for their stimulating support and TI JI great help in difficult times ] ] ] W ~ ~ ~ W ~ ~ L~_Oo~:::::::.?g ~ ==== 0:==-.-::: ===.~g ===.::: :=:=::"_og=!: ===.r:: ==:.?: :; og ==== ,!g===-?: -::::::=:.?:====!:: ====!!: ===- ::: ===3: ==.:::::: =::==!!: ====!!: ===-~g=== ~o_d.l rr:o()o-==o~ :-.=.7::0~=:=:::O~ ==::::-O~::=.= o~===oc:, ,:::::,-"O~ :=:=-Q~=-":=D~====o~:::::: =;;~::=::.::::. O~ ::::::::::,-,O~:::::::::.:.-O~:::::::::::-O~==-O~ ::::::"-Oc:,:=:::::::o~ -O~ ====o~===o~ -_.- W )1I '0 • :0-]1 It It Although in general the school (HUFLIT) considers its students' research il It papers a form of upgraded essay or just a compendium of what they have read and iOI W then collected, I find that there is a great strive on the part of the students involved 71 o [ o 'r rl It 11 Il ~o ADVISOR'S ASSESSMENT for their elaborate work of research By strive, I mean that they carry out the °o~ Oil works - their research papers - in a very hard way for the fact that they have to jl work in a very difficult situation: the school's humble library, both in size and in TI space, and their being busy (almost all HUFLIT's students are rather busy - o~ fulfilling their studies as well as making their living at the same time) and jl therefore preparing their papers in haste o~ Il From such an understanding, I not see any reason to make the students i,lo work harder for a better paper In order words, striving in such a difficult situation W~~ they cannot avoid any shortcomings and limitations And, this literary work of JOI o i • Nguyen Thi To Duyen, the writer of the paper you are reading, makes no '0 Ir exceptions In my eyes, her work should be graded as 'good' for the reasons 00 So, please read To Duyen's go II ~~ already mentioned here above Il ~gil Oil ~o 11 00 iOI work and think of her strive in an jl 11 ~ II understanding manner instead of her being required to have a perfect research Oil ~ II study Anyhow, hers is a work of order, diligence, patience, and dedication, which ~~ I feel admiration for g~ ~ ~ r ~ ~ ~ it ~ it Hoang Huan, MBA JI 11 10 Lecturer Oil I • W ~ o '0 ~I I W ~ ~ ~o°-==.?:=::= ~:===!!: _0: ==::=.C:: ===.:!:===.~g::::::=.!!: =-0:====.:!: ~.!!: ==::::: ~g _0: ===:=:::~:~: _0: =:::::::-.!:: -.::::.-og ===:=:::===!!: _ ~ ~o-:dJ I COMMENTATOR'S • • ASSESSMENT • , t III ABSTRACT • Human resource is always a mathematical problem from which every business wants to find the right answer for its existence for the fact that employees playa vital role in deciding the success or failure of their company For such a success, managers need to understand how to bring their employees together, instill them into the interest of working, etc In the graduation paper, the author would like to analyze An Hoi - Vitexco company in terms of compensation (consisting of direct financial compensation, indirect financial compensation, non- financial compensation), training and development The results of this research show that although Vitexco's business has been going well so far through its statistical bottom line of the years 20002006, it still lacks some zealous employees needed in order to help the company reach the highest productivity as it could During her probation period, the author also had a closer look on what the employees really needed and wanted The author then would like to suggest some appropriate plans on how to improve those problems so that the company may apply them effectively and efficiently , • IV TABLE OF CONTENTS i A CKN WLEDG EMENT AD VISO R' S ASSESSMENT COMMENTATOR'S ii iii ASSESSMENT AB STRA CT iv v TABLE OF CONTE NTS viii LIST OF TABLES AND FIGURES INTR D U CTI N 1 Research paper objectives Scope of the research Research method Contents , • CHAPTER • 1: LITERATURE REVIEW AND OVERVIEW OF MAN A G EMENT SCIENCE 1.1 Review of the previous researchers' works 1.2 Overview of motivation theories 1.2.1 Definition 1.2.2 Maslow's hierarchy of needs 1.2.3 Herzberg 1.2.4 Victor Vroom: CHAPTER 2: COMPANY 14 PROFILE 17 v 2.1 Company profile 2.2 18 2.1.1 The establishment process 19 2.1.2 Function and duty 22 Organizational structure of VITEXCO 23 2.2.1 Organizational structure diagram 23 2.2.2 Departments' functions and duties at An Hoi - Vitexco 26 2.3 VITEXCO's business products 29 2.4 VITEXCO's markets and trade partners 30 CHAPTER 3: ANALYZING MOTIVATION POLICY AT VITEXCO 3.1 3.2 3.3 3.4 31 Direct Financial Compensation 32 3.1.1 The office workers 32 3.1.2 The factory workers 34 Indirect Financial Compensation 35 3.2.1 Allowance 35 3.2.2 Benefit 36 3.2.3 Paid vacation 37 Non - financial Compensation 37 3.3.1 Physical facilities 38 3.3.2 Communication Policies 40 Training and development 41 3.4.1 Detemine Training and Development Needs 43 3.4.2 The purposes and the objects needed to be trained 43 vi CHAPTER 3.4.3 Training methods 43 3.4.4 Check and evaluate training program 44 3.4.5 Human Resource development 44 4: SOME SUGGESTION FOR MOTIVATION POLICIES AT VITE XC 46 4.1 Direct financial compensation 47 4.2 Indirect financial compensation 49 4.3 Non - financial compensation 50 4.3 I Working environment 50 4.3.2 Communication policies 52 4.3.3 Training and development 54 CO N CL U SI N APPENDICIES: 55 SOME FORMS PRESENTLY USED AT VITEXCO APPENDIX A (Written Proposal) 56 APPENDIX B (After- training Report) 57 APPENDIX C (Report on the Six-month Training) 58 APPENDIX D (Report on Training Needs) 59 APPENDIX E (Comprehensive Ideas/ Opinions from Reality Surveys) 60 RE FE RE N CE 66 Vll LIST OF TABLES AND FIGURES Figure 1.1: Maslow's hierarchy of needs Figure 1.2: Frederick Herzberg's motivation-hygiene theory 11 Figure 1.3: The two-factor theory of work Motivation 13 Figure 1.4: Victor Vroom's Expectancy Theory 16 Figure 2.1: Organizational structure ofVitexco 26 Figure 2.2: Vitexco Men's shirt 29 Figure 2.3: Vitexco' s Jacket 30 Figure 3.1: The Training Process ofVitexco 42 Figure 4.1: Salary satisfaction ratio 47 Figure 4.2: Benefit satisfaction ratio 49 Figure 4.3: Working condition satisfaction ratio 50 Figure 4.4: Good relationship with peers 52 Figure 4.5: Good relationship with supervisors 53 Figure 4.6 : Effectiveness of T&D 54 Table 2.1: Labor Degree Collection in 2006 24 Vlll Introduction INTRODUCTION Research paper objectives Human force is always needed for a company despite of what kind of the industry that company is in, such service, manufacture, etc But the working people in different phases have different positions In the past, when the people lived from hand to mouth, earning money for living was the most important thing which they considered They tried to apply for a proper job with the salary which can meet their basic needs At that time, the working people were on the defensive Therefore, the employers could choose which applicants whose competitive edges over others, such high- level skills and abilities with low asked- salary The employees tried to be retained by employers for surviving! But nowadays, although people still live in the money- motivated world, the earnings are not the first and foremost thing they consider because the process of life is dominated by higher-level needs So they seek for a company with a lure motivation policy, such an attractive salary level, a good working environment and promotion opportunities In addition, today, more and more companies appear, this leads to the demand of the labor force increases So at this time, the working people are on the offensive Thus, they have the right to choose which company whose motivation policy is more competent than others The employers now try to retain competent employees for surviving! In this case, the attractive motivation policy seems to be a crux key for the company to survive These chapters therefore are aimed to achieve objectives: • First, the author would like to make a deep thought about motivation theories through reviewing some points of some well-known theorists Chapter 4: Some suggestions for motivation policies at Vitexco 4.3.2 Communication policies Good relationship with peers No Figure 4.4: Good relationship with peers A few of the employees think that they still not have good relationship with their peers, because of the sole reason: they feel that it is not fair about the company's unit- produced price policy It is a common case in almost all manufacturing companies, because each line specializes in each kind of product, so the price of unit- produced is certainly different The solution to this conflict is job rotation: the workers of each line can be transferred to another for a period of time In that way, the workers may feel that they are treated fairly 52 Chapter 4: Some suggestions for motivation policies at Vitexco Good relationship with supemors 80"10 70"10 60"10 50% 40"10 No Figure 4.5: Good relationship with supervisors Sometimes the workers have conflicts with their supervisors about their wages It is sometimes caused by the mistake made when counting working days or unit- produced for wages But sometimes it does occur because the supervisors lack information about the skills of the workers Supervisors thus distribute the tasks unreasonably For solving this case, the supervisors must collect enough information of the workers in order to give adequate tasks to them 53 Chapter 4: Some suggestions for motivation policies at Vitexco 4.3.3 Training and development Effectiveness of T&D /1 Not support I ID I Supportive but not enough II I!l I m Effuctively II 1/ 0% / 10% 20% 30% 40% 50% 60% 70% Figure 4.6: Effectiveness ofT&D Most of the thoughts of the employees in the company show that the Training and Development programs of the company are very effective These programs give them appropriate skills for working But some of them want to learn more, but the rest think that it is still not supportive The company therefore should have a strategy to discover why the employees still are not satisfied with such programs in terms of the way of training; they may not suit the workers' desires Also, the company should create opportunities through which knowledge derived from training can be applicable to the job performance, etc SUMMARY In conclusion, effective reward and motivation programs must combine with each other - monetary, non-monetary, and intrinsic motivation Humans are complex beings and what motivates one employee will not work for another Therefore, having a multifaceted program will increase manager's chances to meet some motivational needs of each employee Overall, operating an organization that respects its employees, fairly compensating them, and acknowledging their accomplishments will lead to a positive 54 outcome for the organization Conclusion CONCLUSION As having seen throughout, the present research paper, it intends to study the way Vitexco has motivated its employees In order to master the insights into human resource management, the author presents some concepts of motivation in the first chapter Next, the profile of the company - and its way of management is introduced in chapter two Then, the current motivation activities are analyzed in the third chapter Some proposals to improve and diversify some shortcomings are suggested to the company in the last Chapter Through the research paper, I have had a chance to understand more about the Human Resource functions, especially motivation I admit that my study is not anything great, for it does not help any other researchers much in solving a big problem in human resource management However, to some extent, it first help the company under investigation - An Hoi Vitexco - solve some problems mentioned in my research so that it may become a better business company Next, it did help me put my insights acquired at school into practice, and I hope that this will help me more with the research work in the future 55 APPENDIX A xi NGHI.E:P VITEXCO GIAYDENGHJ Nai nh?n: H6i dap: B