Chuyên đề thực tập tốt nghiệp: A study on labor motivation of employees at danh viet informatics telecommunication trading company limited

NATIONAL ECONOMICS UNIVERSITYFACULTY OF FOREIGN LANGUAGESENGLISH FOR BUSINESS DEPARTMENT NGUYEN PHUONG LINH A STUDY ON LABOR MOTIVATION OF EMPLOYEES AT DANH VIET INFORMATICS TELECOMMUNIC

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NATIONAL ECONOMICS UNIVERSITY

FACULTY OF FOREIGN LANGUAGESENGLISH FOR BUSINESS DEPARTMENT

NGUYEN PHUONG LINH

A STUDY ON LABOR MOTIVATION OF EMPLOYEES AT DANH VIET

INFORMATICS TELECOMMUNICATION TRADING COMPANY

LIMITED

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NATIONAL ECONOMICS UNIVERSITY

FACULTY OF FOREIGN LANGUAGESENGLISH FOR BUSINESS DEPARTMENT

NGUYEN PHUONG LINH

A STUDY ON LABOR MOTIVATION OF EMPLOYEES AT DANH VIET

INFORMATICS TELECOMMUNICATION TRADING COMPANY

LIMITED

Hanoi, April 2023

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Nguyễn Phương Linh — 11182779 — Business English 60B

in the course university is not only the foundation for the research and reportingprocess, but also a valuable preparation for my future

I sincerely thank Danh Viet Informatics Telecommunications Trading CompanyLimited for allowing and creating favorable conditions for me to practice at the

company.

Finally, I wish the teachers and lecturers good health and success in your noblecareers, aS well as the aunts, uncles, brothers, and sisters in Danh Viet InformaticsTelecommunications Trading Company Limited always have good health and achievemany good successes in work

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EXECUTIVE SUMMARY

Motivating employees is a matter of concern in the field of human resourcesmanagement It is defined as a system of certain policies and measures to stimulateemployees to work voluntarily, enthusiastically, and more effectively at work Theseare all activities and measures taken by organizations and enterprises for theiremployees to make them motivated at work

The research is conducted based on quantitative data collected from the onlinequestionnaire which was sent to employees at DVIT Co., LTD, observation, and datafrom Administration — Human Resources Department

The research indicated that DVIT Co., LTD performed quite well in labor motivationactivities in salary, bonus, welfare, working conditions, and environment, workingand resting time, and creating a good relationship among employees and a goodcompany culture On the other hand, some activities that the company shouldimprove are job performance assessment, paying more attention to employees’opinions, work assignment and organization, training, fostering, and human resources

development

The author suggested some recommendations for the limitations in labor motivation

activities at DVIT Co., LTD, which are conducting surveys to identify the employees’needs, analyzing work regularly and effectively, improving the job performanceassessment to reflect accurately the employees’ work, building an appropriate rewardand welfare system, and completing the training, fostering, and development ofhuman resources

Due to limited time, the survey questionnaire was not participated by all employees

at DVIT Co., LTD, and the information and data author could access and collect were

also limited Besides, the analysis and assessment are partly based on the author’s

personal opinions Therefore, the research might reflect a part of the present situation

of labor motivation activities at DVIT Co., LTD

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LIST OF ABBREVIATIONSCEO: Chief Executive Officer

COGS: Cost of goods sold

DVIT Co., LTD: Danh Viet Informatics Telecommunications Trading CompanyLimited

HR: Human Resource

P&L: Profit and Loss

ii

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Comparison of average labor productivity in 2022 43

Level of job satisfaction by posifion - SH, 44

1H

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LIST OF FIGURES

Figure 1 The management organizational structure ‹ s5 ++<+++: 5

Figure 2 Hierarchy needs leVeÌS - Gà 1n HH hưu 13Figure 3 Herzberg’s Motivation-Hygiene Facfors c cà 15Figure 4 Vroom’s expectancy theory - - HH hư 17Figure 5 Equity Theory - - G Ăn TH ng ngư 18Figure 6 McClelland’s Acquired Needs Theor\y - - -ScS-SSs+creeeresee 20

Figure 7 Survey parfÏCÏpanIfS - 211 1S HH HH 11 1x gu 24Figure 8 The main reason for working at DVIT Co., LTD 25

Figure 9 Level of satisfaction of employees with salary system at DVIT Co., LTD3D 26Figure 10 Level of satisfaction of employees with allowances at DVIT Co., LTD

M 27Figure 11 Level of satisfaction of employees with allowances at DVIT Co., LTD

¬— 28Figure 12 Level of satisfaction of employees with allowances at DVIT Co., LTDDU 31

Figure 13 Level of satisfaction of employees with working conditions and

environment at DVIT Co., LTD - - - 5G G 122211112 11111 1111821111821 1118211 1g set 33

Figure 14 Level of satisfaction of employees with working and resting time at)À 2006.105050) 01 34Figure 15 Level of satisfaction of employees with relationships and culture atDVIT 00.1600) 01 35Figure 16 Level of satisfaction of employees with emulation and rewardactivities at DVIT Co., LTTD G11 1221111 2211111 TH HH ng ớt 36

Figure 17 Level of satisfaction of employees with job performance assessment at)À 2006.1600) 01 37

Figure 18 Level of satisfaction of employees with allowances at DVIT Co., LTD

¬ 39

Figure 19 Level of satisfaction of employees with training, fostering, and humanresource development at DVIT Co., LÏTD - 5 53+ xssEEeeersrersrsrreses 41Figure 20 Level of satisfaction of employees with work at DVIT Co., LTD 43

iv

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Figure 21 Frequency of the employees’ thinking of quitting job at DVIT Co.,I0) — 45

Figure 22 Issues DVIT Co., LTD needed to be improved according to employees’

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TABLE OF CONTENTS

EXECUTIVE SUMMAIRY 0G G9 ọ HH TT 0000060060800886 806 iLIST OF ABBREVIA TIONS 6G SG s9 99 HH 2 000 068896880806 iiLIST OF TABLES s5 5< 5< 5< Họ II TH H000 86 iii

LIST OF FIGURES o- <5 <5 << 5 9 0 0900100006890 ivINTRODUCTIONN 5-5 <5 <0 50 1

CHAPTER 1 - INTRODUCTION OF DVIT CO., LTD 5-< 5 << «< 4

2.1.1 International literature T€VÏ€WV < 5< << se sseeseeseee 10

2.1.2 Domestic literature T€VÏ€TWU o- << 5= << << KÝ 1 me re Il2.1.3 NesedrCÏ gđpD - < SH nen, 122.2 Theoretical Íram€WOFFK << 5< 99 Hi 0010000008 12

2.2.1 Definition Of laDOr ItOfÏVAfHOHH co G5 S5 S530 93159 59159 59% 122.2.2 Some theories of labor IIOfÏVAfÍOH co GSĂ S019 1195 595 5e 132.2.3 Definition of motivating €IHDÏO€€S o- << 5< SSSsesesseeseee 202.2.4 Criteria for evaluating the effectiveness of labor motivation at DVIT

CO., LTD wieesessssssssssesssssssssccsnssscssccsecsscssscsscssasscssacsscssaesscesacssceseesecsscesecsecesseesees 21CHAPTER 3: FINDINGS AND ANALYSIS SG S2 991 9e 24

3.1 Survey participants ccccscccscscsssscccssscscscsssesscssesssssessessssesesssesseees 24

3.2 Present situation of labor motivation at DVIT CO., LTD 25

3.2.1 BASIC H€@(ÌS S sọ cọ vớ 253.2.2 Psychological H€@(ÌS <5 << Họ ke 35

S02), 58 393.3 Assess the effectiveness of the present situation labor motivation at DVIT

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3.4 Limitations of labor motivation at DVIT Co., LTD <s« 46

3.4.1 LITHIÍQHOHS c SG HH ng 463.4.2 N@QSOTS HT TH HH TH chế 47

CHAPTER 4: SOME RECOMMENDATIONS TO MOTIVATE EMPLOYEESFOR DVIT CCO , IL”TTÏD, - 6 << 5< << 9 9.9 0.00000000600686 896 49

4.1 Accurately identifying employee needs and the prioritized level of needs

= 494.2 Analyzing work regularly and effectively s <5 55s ssss se se 52

4.3 Improving the job performance assessment to accurately reflect thework performance Of ©ITDÌOVS << 6 5s <9 %9 9 994 98995 99969989955985.95696 89 54

4.4 Building an appropriate reward and welfare sys(em os« 57

4.5 Completing the training, fostering, and development of human resources

CONCLUSION ccsssssssssssssssssssscsscsscsscsssssssesssssessssccscescsscsscsssssssessssscesessscscesesses 61REFERENCES

APPENDIX

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INTRODUCTIONBackground

In the twenty-first century, human resources are crucial to helping businesses adapt to

a market condition that is changing quickly and to the increased demand for qualifiedworkers The HR department is relied upon by businesses to develop a connectionbetween employers and their employees They implement policies that encourageemployees to stay By managing the company's most valuable asset—its employees—

an effective HR management department could contribute to organizational structureand the capacity to meet business needs

Hiring highly qualified and effective employees is one of the most challenging issuesfor organizations in a developing market economy with increasingly toughcompetition No matter the scale of the company, the HR department is a crucial part

of the operation It aids in the company's efforts to find, evaluate, recruit, and trainjob candidates As one of the key elements in determining a company's success, it alsohelps to boost employee engagement in addition to productivity and qualifications

Companies must therefore establish appropriate human resource management

strategies for not only recruitment but also for raising employees' motivation and

loyalty if they want to grow, work effectively, and become more competitive

Labor motivation is one of the important issues businesses should give the utmostattention to because it is the source of promoting labor productivity and improvingthe quality of human resources Motivating employees will help motivate employees

to keep their minds on work and make long-term dedication, which is also a decisivefactor for the sustainable development of an enterprise Therefore, most companies

now have measures to motivate employees through motivational tools, that is,material incentives such as salary, bonuses, and other benefits incentives Non-

material things such as working conditions, working environment, training,promotion, job arrangement, etc Creating excellent motivation will greatly benefitthe organization, but if done poorly, it will reduce labor productivity, even thedeparture of workers

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Rationale

Through the process of working at DVIT Co., LTD, the author has had the opportunity

to learn about the working environment, production, and business situation as well ashuman resource management activities of the company In general, the aspects arerelatively well taken care of, the work of improving the motivation of employees hasbeen and is being concerned by the company's leadership, in addition to the achievedresults, there are some problems causing many concerns to the management as

employees have not worked at their full capacity, labor productivity is not high.Because of the above reasons, the author decided to choose the topic “4 study on

labor motivation of employees at Danh Viet Informatics Telecommunication

Company Limited”

Research purposes

The research is conducted to investigate the present situation of activities that

motivate employees at DVIT Co., LTD Through finding and analyzing the present

situation as well as the level satisfaction of employees, the main limitations of

motivation activities are given Therefore, some appropriate and feasible

recommendations are proposed for motivating employees at DVIT Co., LTD

Scope of the research

The research will only focus on the present situation of motivation activities at DVITCo., LTD from 2020 to 2022 Additionally, the research is carried out to make ananalysis and assessment of the internal factors of the business and give somerecommendations to DVIT Co., LTD in motivating employees

Research questions

For the research, the following questions are addressed:

What is the present situation of labor motivation at DVIT Co., LTD?

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What is the employee’s level of satisfaction with motivational activities at DVIT Co.,

Research structure

The research structure consists of four main parts:

Chapter 1 — Introduction of DVIT Co., LTD

Chapter 2 — Literature review - gives a review of some relative research andtheoretical background about labor motivation and other perspectives involved

Chapter 3 — Findings and Analysis - includes analyzing the present situation, andassess the effectiveness and limitations of labor motivation activities at DVIT Co.,

LTD

Chapter 4 — Some recommendations to improve labor motivation for DVIT Co., LTD

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CHAPTER 1 - INTRODUCTION OF DVIT CO., LTD

The chapter provides some information about DVIT Co., LTD, especially informationabout the HR department and workforce structure at DVIT Co., LTD, which gives anoverview of the author’s internship company

1.1 Overview

Danh Viet Informatics Telecommunications Trading Company Limited was

established on 18th May 2006, during the period of economic renovation that

developed a socialist orientation The opinions and thoughts about the economicrenovation of the Vietnamese Communist Party have contributed greatly to locatingand promoting the potential of businesses that have not ever been aroused Since then,Danh Viet has progressively made its mark in the construction and developmentprocess on the path of integration

Danh Viet is a company operating and developing intensively in thetelecommunications service industry with core industries: supply, distribution,construction, and installation of telecommunication equipment such as securityequipment systems, internal switchboards, etc

The employees of Danh Viet have many experiences serving over 1000 customers

throughout the country: from the guest house and office of the National Assembly toministries such as the Ministry of Health, the Ministry of Finance, the Ministry ofHome Affairs, etc.; the branches of banks like VP Bank, VIB Bank, MB Bank, etc.;the securities firms; the domestic and foreign entrepreneurs and individuals

1.2 The management organizational structure

DVIT Co., LTD is arranged with a compact and reasonable organizational structure

with the current market mechanism The arrangement of the Company's personnel inaccordance with the qualifications and professional capacity of each person in theproduction and business process might contribute to creating high economicefficiency

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Figure 1 The management organizational structure

Sales Department Dewan

The Board of Director are the people who have the right to decide on all activities of

the company and are directly responsible for the production and business activities of

the company in front of the state and the Ministry of Commerce They promulgate the

internal management regulations of the company, set the regulations for each

department, and organize business plans for the company

Administration - Human resources department develops regulations, and rules onreward, labor discipline, and salary plans, as well as manages the salary paymentprocess, and set labor norms, etc The department manages personnel records ofemployees in the company; recruits and arranges employees in accordance with thequalifications and capabilities of each person; maintains labor discipline and unity inthe company; creates emulation and commendation work, preferential policies foremployees; and advises the director on the process of organization, training,recruitment, and administrative management regimes

The accounting department is the department that advises the director on the financial

- accounting work of the company; ensures accurate, timely, and honest reflection ofarising economic transactions Through the purchase of equipment and the situation

of product consumption, it determines the business results of the company, and

monitors the allocation of wages to employees in the company In addition, the

accounting department also helps the director in analyzing business activities inside

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and outside the company on a regular and continuous basis, exploits and useseffectively capital to bring the highest economic efficiency to the company

The sales department has main functions such as finding customers, signing economiccontracts, investigating the market, determining the number of goods to be imported,and developing business plans and contract implementation measures

The engineering department performs technical services, handles poor quality goods,

checks, and handles technical and economic arguments, conducts maintenance, and

repairs with goods sold to customers

1.3 Administration - Human resource department

1.3.1 Functions

Administration - HR department carries out recruitment to make quality assurance

according to the requirements and strategies of the company; organizes and

coordinates with other units to perform human resource management, training, and

fostering; organizes the management personnel of the whole company; develops

regulations on salary and bonus; measures to encourage and stimulate employees towork; implements employee regimes; observes and organizes the implementation ofguidelines and rules of the Board of Directors; studies, drafts and approves regulationsapplied in the company

Administration - HR department builds the company's organizational structure,divisions, and implementation organizations; serves administrative activities so thatthe board of directors is convenient in directing and administering so that otherdepartments have good operating conditions; manages the use and protection of assets

of the company; and ensures security, order, and work safety

Administration - HR department ensures occupational hygiene and fire preventionactivities in the company; advises and proposes to the Board of Directors to handleproblems in the administrative and human resources organization; supports other

departments in Human resource management; and is the bridge between the board ofdirectors and employees in the company

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1.3.2 Missions

Administration - HR department makes annual and monthly recruitment plans at the

request of the company and related departments; makes a recruitment program foreach recruitment; organizes the implementation and recruitment according to the

approved schedule; organizes the signing of probationary labor contracts for

employees; manages records and resumes of employees throughout the company;performs personnel management; and monitors the number of employees

Administration - HR department evaluates and analyzes the quality situation of the

number of employees; makes periodic and extraordinary reports at the specific request

of the Board of Directors; acts as a bridge between the company's leaders and theemployee collective; sets up a training program every month; organizes training in thecompany; evaluates training results; and directly participates in training for newemployees in the company

Administration - HR department develops professional development programs forcompany employees; mobilizes personnel according to the requirements of thecompany Besides, it makes decisions on appointments; abolishes the regularmanagement regime; manages leave of employees; develops policies for promotionand replacement of personnel; sets up a budget human resource policy, and humanresource planning to serve the company's business and strategy well; settlescomplaints about the discipline of company employees; legally protects the interests

of the company and employees; develops and implements policies and regimes foremployees; and participates in researching and organizing the implementation ofmethods of payment of salary, bonus, and allowance

Administration - HR department monitors the implementation of the regimes foremployees by regulations; monitors employees' leave; deals with state agencies toimplement holiday regimes; monitors approved plans; and reports fully, timely, andhonestly the situation and work results when performing assigned tasks

Administration - HR department monitor the implementation of the regimes foremployees by regulations, monitor personal leave, deal with state agencies to

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implement holiday regimes, monitor approved plans, and report fully and timely, and

honestly the situation and work results when performing assigned tasks

22 10.73 27 11.95 23 8.08graduate

Total employment 205 100 226 100 256 100

(Source: Administration- HR department)

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Regarding the structure of workforce by sex: The difference and variation in quantitybetween male and female workers were large, and the proportion of male and femaleemployees was much different The number of male employees accounted for morethan 60% of employees in the company and was on an increasing trend, from 128people in 2020 to 174 people by 2022 With the company's characteristics beingmechanical, male workers had a larger number so that they could promote their bestworking efficiency

In terms of age structure, most of the company's human resources were in the age

from 18 to 30 years old, which had increased over the years, accounting for more than70%

Regarding the qualifications of workers, most of the workers have high schooleducation, registering more than 60% Besides, approximately 20% belonged toemployees with intermediate or college education Lastly, the number of people with

university degrees was the smallest, specifically more or less 10%

Chapter I provided an overview of the internship company of the author, supportedfor the next chapters Before an analysis of the topic, it is necessary to provide relativetheories, which form the basis for the entire study

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CHAPTER 2: LITERATURE REVIEW

The chapter gives a review of some literature both international and domestic, thenfinds out the research gap to conduct this research Besides, it provides basic theoriesabout labor motivation, as well as relative theories

2.1 Literature review

2.1.1 International literature review

Internationally, there have been numerous reports researching the field of humanresources, as well as labor motivation Until now, I have identified some of them thatinvestigate a similar topic to my paper

Tamosaitis & Schwenker (2002) found that external factors themselves have asignificant impact on workers' transference and job and can produce job satisfaction

And, that external factors may be considered factors in worker retention

Nicholson (2003) recommends that managers can provide a motivational environmentfor their employees Managers who fully understand the needs and desires of theiremployees can do that They are the managers who involve their employees in theaffairs of the company

Schoroder (2008) used the two-factor theory as a theoretical framework to conduct

research on 835 university workers It aims to examine the influence of human factors

on job satisfaction His findings contrasted with those of Herzberg, as he wanted to

examine the impact of human factors on job satisfaction His findings contrasted with

Herzberg's, as he found that job satisfaction was dependent on age and education leveland that intrinsic and extrinsic satisfaction were the same for workgroups different.Survival is the masons' only need; they do not dream of developing their personalityand are unable to understand the motivating factors

Hafiza et al (2011) pointed out that several factors can influence employee

performance, such as training and development opportunities, job security, working

conditions, employee-employer relationships, working conditions, and all employee

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reward policies and procedures of the company Among the factors affectingemployee performance, motivation comes with rewards as the top priority

Although various studies discuss this field, these were conducted at different times,places, and subjects in certain regions of the world Therefore, the studies conducted

in Vietnam will be more suitable for the context of enterprises operating in Vietnam.2.1.2 Domestic literature review

In Vietnam, the issues surrounding human resources management are also topics oforganizations’ and businesses’ interest So, there are abundant papers investigatingthis field I found some of them, which are mentioned below

Nguyen Van Hiep & Nguyen Thi Quynh (2014) identified 6 factors affectingemployee work motivation in descending importance, including leadership and careeradvancement, skillful discipline, income, conditions of work, support from

colleagues, and interesting work

According to Bui Thi Minh Thu & Le Nguyen Doan Khoi (2014), in businessactivities in Lilama, there are many factors involved in the management system such

as material, economic, cultural, and information but people are still the main factor.The study analyzed the results collected from observations, tested the reliability of thescale, and analyzed the factors After analyzing the correlation, the study discovered

07 factors affecting the motivation to do the work of employees directly producingLilama, including corporate culture, work, training opportunities and development,working conditions, salary and benefits, relationship with colleagues, and relationshipwith leadership In which, salary and welfare regime with corporate culture is the most

influential factor.

Le Thai Phong (2015) indicated that employee satisfaction is a combination of four

factors including job characteristics, salary and benefits, training and promotion, andwork relationship

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2.1.3 Research gap

Those studies were conducted based on the situation at their businesses But eachbusiness has different characteristics, different ways of building a business, andespecially in a different development environment, so employees working at thecompany also have their own characteristics The research scope of this thesis focuses

on the subjects who are working at DVIT Co., LTD Research outline to find

recommendations that can be applied in practice at the company The thesis inherits

the research achievements that have been achieved and combined with some changes

to be appropriate for the company, then deeply solves the problem of motivatingemployees at DVIT Co., LTD

2.2 Theoretical framework

2.2.1 Definition of labor motivation

According to MSc.Nguyen Van Diem and Assoc.Prof.Dr Nguyen Ngoc Quan (2016),labor motivation is the desire and voluntariness of employees to increase effortstoward a certain goal or result

According to Dr Bui Anh Tuan (2003), labor motivation is the internal factors thatstimulate people to actively work in conditions that allow for creating highproductivity and efficiency; the manifestation of motivation is the willingness, effort,and passion to work to achieve the goals of the organization as well as the employees

themselves.

Lawler (1973) pointed out that work motivation is the desire and willingness to work

of each individual Kreitner (1995) defined labor motivation as a psychological

process that orients individuals toward certain goals Higgins (1994) mentioned theconcept of motivation as an internal push from an individual to satisfy unmet needs

There are many different conceptions of motivation at work, but they all have the mostbasic commonalities Motivation, generally understood, is all that motivates people,

and acts on people to motivate people to act Different individuals will have different

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motivations and when motivated they will make every effort to achieve their desiresand goals

2.2.2 Some theories of labor motivation

2.2.2.1 Maslow's hierarchy of needs

Maslow (1943) has researched and claimed that human behavior stems from theirneeds Human needs are diverse and abundant and are arranged in order from lowest

willing to seek others on their own.

Safety needs: These are the need for stability, safety, and protection from harm toproperty, work, health, life, and family When a person's physiological needs are

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met, their safety needs, the second level of Maslow's theory, will take precedence andcontrol behavior If a person feels unsafe in an environment, they will seek securitybefore attempting to achieve a higher level of survival

Love and belonging needs: These are the needs of social communication, the need for

expression and acceptance of affection, care, and cooperation After physiological

and safety needs are met, the third level of human needs is social and involves a sense

of belonging To avoid desolation, depression and anxiety, it is essential for everyone

to feel beloved and accepted by others According to Maslow, people have an actual

need for a sense of acceptance and belonging among social groups, whether the groups

are large or small; Being part of a group is extremely important, whether it's for jobs,

sports, friends or families Belonging is “being comfortable with and connection to

others that results from receiving acceptance, respect, and love.” (Dodge, et al., 2002,

p.2-3)

Esteem needs: Most people need stable self-esteem, that is, self-esteem based onactual abilities or achievements Self-esteem comes from everyday experiences,

which provide learning opportunities that allow us to discover ourselves Maslow

noted two versions of the need for esteem The "lower" version of self-esteem is theneed to be respected by others and can include the need for position, recognition,fame, reputation, and attention The "higher" version of self-esteem can include theneed for power, capacity, mastery, confidence, independence, and freedom Self-esteem and subsequent levels are not completely separate; instead, the levels areintertwined People who are able to satisfy their need for esteem by achieving greatself-esteem and being recognized by others tend to be confident in their abilities.Conversely, people who lack self-esteem and respect from others may establishfeelings of inferiority

Self-actualization needs: These are the needs for truth, goodness, beauty, self-control,creativity, and desire for comprehensive development of physical and intellectual The highest need in Maslow's theory is self-actualization This level of need refers torealizing one's full potential According to Maslow, successful people find theirmotivation in improvement and opportunity rather than trying to achieve somethingthey lack They identify things that they can achieve and they pursue them whether it

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brings external rewards or not Maslow describes it as the ambition to achieveeverything possible, to be as good as possible To understand self-actualization needs,

a person has not only to succeed at previous needs, but also master them People whoare motivated to pursue this objective investigate and explain how their demands,relationships, and self-esteem are expressed through their behavior

According to Maslow, lower-order needs must be met before higher-order needs are

to have motivational value, although no need is completely satisfied, a basicallysatisfied need is no longer available motivational value

The application of the theory shows that workers have many different needs and atthe same time they may have different levels of needs The theory also reveals theimpacts of the personal needs system affects people's labor motivation and way ofwork Therefore, in order to motivate employees, the manager needs to understandwhere the employees are in the hierarchy of needs and aim to satisfy that need at that

level on the basis of goals and the permission of the organization

2.2.2.2 Herzberg s Motivation-Hygiene Theory: Two-Factor

Herzberg (1959) divides employee motivational factors into two categories: hygiene

factors - belonging to extrinsic needs and motivators - intrinsic needs

Figure 3 Herzberg’s Motivation-Hygiene Factors

Achievement Salary

Interest in the work Working Conditions

Responsibility Policies & Supervision

Advancement Relationships

(Source: techjockey.com)

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The first group only works to maintain the normal working state Hygiene factors do

not contribute to job satisfaction but must be present to prevent job dissatisfaction.All employees want to receive a salary commensurate with their efforts, for thecompany to be managed properly, and for their working conditions to be comfortable.When these factors are satisfied, they sometimes take it for granted But without them,they will become disgruntled and less productive The second set of factors is the realmotivating factors, related to the nature of the work Motivational factors enable

employees to be satisfied with their jobs and promote growth In the absence of these

factors, workers will display dissatisfaction, laziness, and lack of interest in work,which lead to ineffective and unproductive performance

According to Herzberg, although the absence of hygiene factors causes dissatisfactionamong workers, their presence does not ensure satisfaction completely Therefore,managers should increase motivating factors if they want to have a positive employee

response.

2.2.2.3 Vroom's expectancy theory

Unlike Maslow and Herzberg, Vroom (1964) did not focus much on needs, but mainly

on results Maslow's and Herzberg's studies were based on the relationship betweenintrinsic needs and efforts to produce results to satisfy that intrinsic need, whileVroom separated effort (derived from motivation), action, and effectiveness Hesupposed that human behavior and motivation to work were not necessarilydetermined by reality, but it was determined by people's perception of theirexpectations in the future

The theory includes three components: Expectancy, Instrumentality, and Valence

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Figure 4 Vroom’s expectancy theory

The expectation is the desire to receive something after completing a job or a certaintask If we know the desires of employees, it will stimulate them to work harder,thereby creating higher achievements If the stimulus is appropriate, it will createbenefits for both the employees and the company The efforts of employees are based

on the reward after completing the work brought to them If the rewards are positive,such as a high salary, and promotion opportunities then they will try and work hard.But if the reward brings negative things such as fatigue, boredom, and high pressure then they can also try but that is not motivation but compulsion, if under too much

pressure they can leave the organization

This theory emphasizes the work of paying and rewarding employees This is a verysensitive issue and has a great impact on employees Employees want to maximizethe satisfaction of their expectations, and managers must pay attention to the level ofwages and bonuses to ensure that the costs do not exceed the results of the employees,but still, ensure attractiveness to them

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The theory of Victor H Vroom can be applied in the management of employees inagencies and enterprises, according to which managers should plan human resourcemanagement policies so that these policies must be reflected clearly the relationshipbetween effort and achievement, between achievement - result and reward, and at thesame time create the attractiveness of reward results for employees, when doing thesethings, their labor motivation will create

2.2.2.4 Adams' Equity Theory

Adams (1963) that people always want to be treated fairly Employees tend to judgefairness by comparing their work with what they get, as well as comparing their ratio

to that of their colleagues in the company

Figure 5 Equity Theory

exists If the ratio is unequal, an unfair situation exists

If what they receive exceeds their expectations, they will tend to increase their efforts

at work Conversely, when unjust conditions exist, employees will work to correct

them Equity theory implies that when employees visualize injustice, they may have one or more of the following five options: Distort their own inputs or outputs or of

others; Behave in a way that causes others to change their inputs or outputs; Behave

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in a way that alters their own inputs or outputs; Choose another comparison criterion

for comparison; Quit work.

Equity theory believes that individuals are concerned not only with the amount ofreward they receive for their effort but also with the relationship between that amountand what others receive Inputs, such as effort, experience, education, and talent arecompared with outputs such as salary, raise, recognition, and other factors Whenpeople perceive there is a disparity in their input-output ratio compared to others, there

is bound to be tension This tension forms the basis of motivation, as people strive for

what they consider fair and satisfactory

2.2.2.5 Skinner's Reinforcement Theory

The theory refers to the role of rewards and punishments for employees’ behavior.Skinner (1957) indicated that rewarded behaviors will tend to be repeated, andunrewarded (or punished) behaviors will tend not to be repeated At the same time,

the shorter the time between when the behavior occurs and the reward or punishment,

the more effective it is to change the behavior Although punishment has the effect of

eliminating unintended behaviors of employees, it could have negative consequences

and is less effective than rewards

Therefore, managers need to be concerned with good achievements and reward them

timely and properly, which could make employees feel cared for and recognized.

2.2.2.6 McClellands Acquired Needs Theory

In the early 1940s, Maslow created a theory of needs that identifies basic human needs

in order of importance; physiological needs, safety needs, social needs, and socialneeds self-esteem and self-actualization needs

McClelland later formulated a similar theory in his own 1961 work: “The Achieving

Society.” He identified three motivations that he believed we all have: the need forachievement, the need for affiliation, and the need for power

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Figure 6 McClelland’s Acquired Needs Theory

The Need for The Need for The Need for

Power Affiliation Achievement

whatever the rest of

* Enjoys competition and

the group wants to do

winning

* Likes to receive regular

feedback on their

* Prefers collaboration progress and

* Enjoys status and ~~ =

over competition achievements

recognition

* Doesnt like highriskor » Likes to work alone uncertainty

(Source: sketchbubble.com)

Each person will have different characteristics depending on the needs at each time

Regardless of gender, culture, or age, we all have three motivators, McClelland saidthat one of them will be the primary driving force behind us that depends largely on

culture and life experience

2.2.3 Definition of motivating employees

Motivating employees is a system of certain policies, measures, and tricks to stimulate

employees to work voluntarily, enthusiastically, and more effectively at work Theseare all activities and measures taken by organizations and enterprises towards theiremployees in order to make them motivated at work (Nguyen Van Diem & NguyenNgoc Quan, 2016)

From definitions as well as theories of motivations, motivating employees, to beunderstood, is the creation of attractiveness in work, work performances, salary,

bonuses, working conditions, relationships in the workplace, etc and since then, the

employees will be enthusiastic, excited, and work voluntarily, actively, and creatively

Motivating employees is both a goal and a responsibility of managers Whenemployees are motivated to work, they will create possibilities and potentials toimprove labor productivity and increase work efficiency Thence, it contributes tobusiness's survival and thriving

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2.2.4 Criteria for evaluating the effectiveness of labor motivation at DVIT Co.,

LTD

2.2.4.1 Labor productivity

Productivity is usually defined as the rate between output amount and input amount

In other words, it measures how efficiently factors of production, such as labor and

capital, are used in an economy to produce a given level of output Productivity is

considered an essential source of economic growth and competitiveness, and thusconstitutes the basic statistical information for many international comparisons andassessments of the performance of countries (OECD Manual, 2002)

According to Mai Quoc Chanh (2012), labor productivity is the efficiency of usefulhuman activities in a unit of time, it is expressed by the number of products produced

in a unit of time or the waste to produce a product

Labor motivation has a great influence on the morale and working attitude ofemployees which affects the quality and efficiency of the work With goodmotivation, employees will have positive behavior in all activities of the organization

Labor productivity is determined by many factors such as the proficiency level ofworkers, the level of scientific development and technology adoption, socialintegration of production processes, scale, the efficiency of the means of production,the natural conditions If other factors do not change, the increase or decrease in labor

productivity reflects the current situation that motivates employees in that

organization.

2.2.4.2 Employee satisfaction with work

According to Vroom (1964), job satisfaction is defined that employees having a cleareffective orientation toward work in the organization

According to Smith, et al (1969), satisfaction with components or aspects of the job

is the influencing attitude and recognition of employees on different aspects of the job

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(the nature of the job, the opportunities for their training and promotion, leadership,co-workers, salary)

According to Spector (1997), job satisfaction is simply how people feel about theirjobs and aspects of their work

The level of employee satisfaction with the job is also an actual evaluation criterionand reflects almost exactly the level of employee management of the enterprise The

measurement of employee job satisfaction can be conducted through active activities

such as interviews, and surveys, or passive activities such as collecting opinions ofemployees in some specific cases or policy regimes, taking on administrativesituations for employees so that workers can decide for themselves and give their

personal opinions.

Collecting information on employee job satisfaction will help managers mostaccurately assess the strengths that need to be maintained and the limitations andshortcomings that need to be overcome to combine with the set goals developmentgoals in general and the company's policies and regulations in particular to providerecommendations the most appropriate method to achieve the two goals; the first is to

recognize employees' contributions, making them feel heard and respected; the second

is recommendations that satisfy the needs of employees, stimulate them to devote with

the highest efficiency to work and be loyal to the business.

2.2.4.3 Employee loyalty

Neihoff, et al (2001) argued that loyalty is an active expression of pride and

commitment to the organization The specific manifestation of loyalty is resisting

criticism of the organization, limiting complaints about the organization, and

emphasizing the positive aspects of an organization

According to Chen (2009), employee loyalty is the willingness to work on behalf ofthe organization, for its goals and values to align with the organization, and the desire

to remain a member of the organization

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Employee loyalty, general understanding, is demonstrated when they are committed

to the success of the business and believe that working for this business is their bestchoice; as well as shown through the number of people who have been attached to andwant to work with the organization for a long time Good motivation will encourageemployees to work more diligently, have fewer thoughts of quitting, and commit to along-term commitment to the organization

Research on labor motivation in enterprises is very important to assess the currentsituation and potential of human resources in enterprises Chapter 2 has summarizedsome research investigating a similar topic to this study It shows the differencebetween this study and others Additionally, it focuses on systematizing theoreticalissues related to labor motivation and the contents of motivation Although there aremany views on labor motivation, within the scope of the topic, the concept used is:motivating employees is a system of certain policies and measures to stimulateemployees to work voluntarily, enthusiastically, and more effectively at work Theseare all activities and measures taken by organizations and enterprises for theiremployees to make them motivated at work Besides, the chapter is the basis for theanalysis and findings as well as for the recommendation chapter

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CHAPTER 3: FINDINGS AND ANALYSIS

The chapter is the combination of the collected data and the previous chapter toanalyze the present situation of labor motivation activities at DVIT Co., LTD, and

evaluate the effectiveness and limitations of these activities

company’s total employees, combined with other data, the survey results still partly

assess the current situation of labor motivation activities at DVIT Co., LTD

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Figure 8 The main reason for working at DVIT Co., LTD

Most employees worked at DVIT Co., LTD because of a stable job and high-income,

covering respectively 37% and 30% While less more than half of them, specifically13%, survey participants chose promotion opportunities as the most important reason

It was followed closely by both the reasons for experience accumulation and development and good working conditions and environment, which individuallyregistered 9% and 8% respectively Lastly, only 3% of employees worked at thecompany because the main reason was good relationships with colleagues andsuperiors

self-3.2 Present situation of labor motivation at DVIT CO., LTD

The author used Maslow's hierarchy of needs combined with the characteristics of the

company to analyze the current situation of labor motivation activities at DVIT Co.,LTD Additionally, the author divided the needs of Maslow’s theory into three groups,including basic needs, psychological needs, and self-fulfillment needs

3.2.1 Basic needs

3.2.1.1 Salary system

In terms of the salary system, the total number of employees feeling very satisfied and

satisfied occupied the most considerable number of 71% of the chart Twenty-eightpercent was generated by people who were neutral Only 1% was dissatisfied, whichmeans that nobody was very dissatisfied with the salary system of DVIT Co., LTD

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li Very sastisfied Satisfied

Neutral

I Disssatisfied

I Very dissatisfied

The payment method of DVIT Co., LTD paid great attention to fair pay, suitable for

different jobs The salary was closely based on the quantity and quality that employeesdevote, paying salary according to each type of work, quality, and performance ofeach employee In the formula for calculating salary for employees, there was theparticipation of the job completion coefficient, the actual working day, the point ofresponsibility and the complexity of indirect labor, and the score for assessing the

level of indirect labor and direct worker contributions Besides, the employee's salarywas always received on the Sth of the following month, and the company never owedsalaries or paid salaries not on time to employees, which contributed to creating trust

and effort for employees because what they received was commensurate with theircontributions

Table 2 Comparison of average salary in 2021 and 2022

Average salary at DVIT Average salary at FDI

Year Co., LTD enterprises in Hanoi

2021 7.700.000 7.150.000

2022 8.100.000 7.400.000

(Source: Hanoi Department of Labor, War invalids and Social Affairs)

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The average salary that employees at the company receive was always higher than theaverage salary of FDI enterprises in Hanoi, specifically 1,077 times and 1.095 times

in 2021 and 2022 respectively Obviously, the company had a flexible adjustment toalways be higher than the salary in the market, which was one of the policies of thecompany's leadership to retain talents, and partly created motivation for employees.3.2.1.2 Allowance

Figure 10 Level of satisfaction of employees with allowances at DVIT Co., LTD

@ Very satisfied l# Satisfied

The company's allowance system included 3 types: night work allowance, overtimeallowance, and travel allowance All allowances were included in the salary forpayment The company had a system of allowances for employees, to increase

employees’ income, compensate for the loss of energy and spirit when employeesmust work overtime and must work at night through night work allowance andovertime allowance; support their travel expenses through a travel allowance

Overtime and night work allowances were paid according to the State's regulations asfollows:

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Night work allowance: 30%

Allowance for overtime on weekdays: 150%

Allowance for overtime on holidays: 200%

Allowance for overtime on public holidays: 300%

These allowances encouraged employees to be more responsible for their work.Employees would be more secure in receiving wages equivalent to their work Thecompany had completely complied with the current provisions of the law onallowances for employees However, the level of budget that the company appliedwas not much different from other companies, industries, and local ones Besides,these allowances were still quite modest, they did not support much of the employees'work, so they did not fully promote their role

of 1%

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Tiêu đề	A Study on Labor Motivation of Employees at Danh Viet Informatics Telecommunication Trading Company Limited
Tác giả	Nguyen Phuong Linh
Người hướng dẫn	Pham Thi Quynh Hoa
Trường học	National Economics University
Chuyên ngành	Business English
Thể loại	Graduation Report
Năm xuất bản	2023
Thành phố	Hanoi

Định dạng
Số trang	77
Dung lượng	16,24 MB