enhancing employee motivation at anphanam international co., ltd

ACKNOWLEDGEMENT Firstly, I would like to express my gratitude to my supervisor, Associate Professor Dr. Tran Thi Thu who provided me with quality and friendly advisory especially and encourage me to finalize this thesis. I also want to express my special thanks to all professors, doctors, lecturers, tutors at Business School, National Economics University (BSNEU) who conveyed me a lot of knowledge, experience in EMBA program, intake 9. I sincerely thank to all managers and all my colleagues at Anphanam International Co., Ltd who help me a lot to fulfill the questionnaires and survey, give me valuable information, advices for implementing my thesis. Lastly, My sincere thanking goes to my classmates, my parents, my husband and all my family for their suffering, support, encouragement while studying in the National Economics University since 2010 and throughout until graduation. TABLES OF CONTENTS 1.1 RATIONALE 7 1.2 RESEARCH OBJECTIVES 8 1.3 RESEARCH QUESTIONS 9 1.4 RESEARCH METHODOLOGY 9 1.4.1 Research process: 9 Figure 1.1: Research Process 9 1.4.2 Data collection 10 1.4.3 Data Analysis 11 1.5 RESEARCH SCOPE 11 1.6 THESIS STRUCTURE 12 2.1 DEFINITIONS AND ROLES OF EMPLOYEE MOTIVATION 13 2.1.1 Definition of employee motivation 13 2.1.2 Roles of employee motivation 15 Figure 2.1: The needs – Desires – Satisfy Chain 15 2.2 MAIN THEORIES ON EMPLOYEE MOTIVATION 17 2.2.1 Maslow’s hierarchy of Needs 17 Figure 2.2: Maslow’s Hierarchy of needs 18 2.2.2 Herzberg’s Two factor Theory 19 Figure 2.3: Two factors of Needs 21 Figure 2.4: The Interrelation between Needs and Motivation Factors 22 2.2.3 Adam’s Equity Theory 22 Figure 2.5: Adam’s Equity Theory diagram – job motivation 23 3.1 OVERVIEW OF APNI AND ITS CHARACTERISTIC AFFECTING EMPLOYEE MOTIVATION 26 3.1.1 Establishment of APNI 26 3.1.2 Main business fields and development 26 3.1.3 Organizational structure 29 3.1.4 Human resource structure 32 Figure 3.2: APNI’s human resource structure by sex 33 Figure 3.3: APNI’s human resource structure by ages 34 Figure 3.4: Human resource structure by qualification 36 3.2 ANALYZING HYGIENE AND MOTIVATION FACTORS INFLUENCING ON EMPLOYEE MOTIVATION AT APNI 36 3.2.1 Employees’ assessment about the important of hygiene and motivation factors 36 3.2.2 Analyzing the Hygiene factors on employee motivation at Anphanam International Co., Ltd 38 Figure 3.5: The average score of employees’ satisfaction level on working condition 39 44 Figure 3.6: The average score of employees’ satisfaction level on salary and benefit internal equity 44 Figure 3.7: The average score of employees’ satisfaction level on salary and other welfare external equity 45 Figure 3.8: The average score of employees’ satisfaction level on salary and other welfare with their contribution 48 Figure 3.9: The average score of employee’s satisfaction level on company policy 52 Table 3.11: Employees’ satisfaction level on supervisor 52 Figure 3.10: Employees’ satisfaction level on the fairness of supervisor in treating with employees 54 Figure 3.11: The average score of employees’ satisfaction level on interpersonal relation 56 3.2.3 Analyzing the motivation factors on Employee motivation at Anphanam International Co., Ltd 56 Figure 3.12: The average score of employees’ satisfaction level on recognition 58 Figure 3.13: The average score of employees’ satisfaction level on performance appraisal 59 Figure 3.14: Employees’ satisfaction level on work itself 62 Figure 3.15: The average score of employees’ satisfaction level on responsibility 65 3.3 SUMMARY OF FINDINGS OF THE RESEARCH ON EMPLOYEE MOTIVATION AT ANPHANAM INTERNATIONAL CO., LTD 67 3.3.1 The motivation factors 68 3.3.2 The de-motivation factors and reasons 68 4.1 ORIENTATION FOR HUMAN RESOURCE MANAGEMENT OF APNI 72 4. 2 SOLUTIONS AND RECOMMENDATIONS FOR APNI TO ENHANCE EMPLOYEE MOTIVATION 72 4.2.1 Improving working conditions in APNI 72 4.2.2 Adjusting in salary policy 74 4.2.3 Set up a standard and comprehensive recruitment procedure 76 4.2.4 Improving the interesting and challenging work 77 4.2.5 Establishing effective feedback system for managing at APNI 78 4.2.6 Establishing standard performance appraisal system to ensure equity 78 4.2.7 Improving insurance and health policy 79 4.2.8 Improving welfare, other benefit and reward policy and recognition program 80 ABBREVIATION APNI : Anphanam International Co., Ltd HRM : Human Resource Management PA : Performance appraisal PO : Purchase Order S&B : Salary and benefit 1 LIST OF TABLES Table 1.1: Data collecting methods Error: Reference source not found Table 2.1: Combination of three theories Error: Reference source not found Table 3.1: APNI’s Human resources structure by sex Error: Reference source not found Table 3.2: Human Resource structure by age Error: Reference source not found Table 3.3: Human resource structure by qualification Error: Reference source not found Table 3.4: The important level of Hygiene and Motivation factors Error: Reference source not found Table 3.5: Employees’ satisfaction on working condition Error: Reference source not found Table 3.6: Employees’ satisfaction on salary and other welfare internal equity Error: Reference source not found Table 3.7: Employees’ satisfaction level on salary and other welfare external equity Error: Reference source not found Table 3.8: Salary in comparison with other companies. Error: Reference source not found Table 3.9: Employees’ satisfaction level on salary and other welfare with their contribution Error: Reference source not found Table 3.10: Employees’ satisfaction level on company policy Error: Reference source not found Table 3.11: Employees’ satisfaction level on supervisor.Error: Reference source not found Table 3.12: Employees’ satisfaction level on the fairness of supervisor in treating with employees Error: Reference source not found Table 3.13: Employees’ satisfaction level on interpersonal relation Error: Reference source not found Table 3.14: Employees’ satisfaction level on recognition Error: Reference 2 source not found Table 3.15: Employees’ satisfaction level on performance appraisal Error: Reference source not found Table 3.16: Employees’ satisfaction level on work itself Error: Reference source not found Table 3.17: Employees’ satisfaction level on challenging, interesting of work Error: Reference source not found Table 3.18: Employees’ satisfaction level on autonomy of work Error: Reference source not found Table 3.19: Employees’ satisfaction level on responsibility Error: Reference source not found Table 3.20: Employees’ assessment about responsibility of employees and managers when working in group Error: Reference source not found Table 3.21: Employees’ satisfied level on advancement. Error: Reference source not found Table 3.22: Employees’ satisfied level on personal growth Error: Reference source not found LIST OF FIGURES Figure 1.1: Research Process 8 Figure 2.1: The needs – Desires – Satisfy Chain 14 Figure 2.2: Maslow’s Hierarchy of needs 17 Figure 2.3: Two factors of Needs 20 Figure 2.4: The Interrelation between Needs and Motivation Factors 21 Figure 2.5: Adam’s Equity Theory diagram – job motivation 22 Figure 3.1: APNI organization structure 28 Figure 3.2: APNI’s human resource structure by sex 32 Figure 3.3: APNI’s human resource structure by ages 33 Figure 3.4: Human resource structure by qualification 35 Figure 3.5: The average score of employees’ satisfaction level on working condition 3 38 Figure 3.6: The average score of employees’ satisfaction on salary and benefit internal equity 43 Figure 3.7: The average score of employees’ satisfaction level on salary and other welfare external equity 44 Figure 3.8: The average score of employees’ satisfaction level on salary and other welfare with their contribution 47 Figure 3.9: The average score of employee’s satisfaction level on company policy 51 Figure 3.10: Employees’ satisfaction level on the fairness of supervisor in treating with employees 53 Figure 3.11: The average score of employees’ satisfaction level on interpersonal relation 55 Figure 3.12: The average score of employees’ satisfaction level on recognition57 Figure 3.13: The average score of employees’ satisfaction level on performance appraisal 58 Figure 3.14: Employees’ satisfaction level on work itself 61 Figure 3.15: Employees’ satisfaction level on responsibility 64 4 EXECUTIVE SUMMARY Man is one of the three basic elements to carry out the working process, so employee motivation plays an important role for the success of a company. Especially, in today’s competitive environment, to survive and develop, organizations need to attract talent candidates, reduce labor turnover and increase productivity by enhancing the motivation of employees. APNI is a medium company, operating in the fields of trading, import – export and services and gets so much achievement after 5 years of establishment. However, the employee motivation at APNI is not good, led to dissatisfaction of employees and low productivity, even though many of them want to quit job. There were 83% employees joined the survey, and the result about their satisfaction level is under satisfied level. From these above reasons, the author has decided to implement the research on “Enhancing Employee motivation at Anphanam International Co., Ltd” So, the objectives of the thesis are: - To synthesize relevant theories on employee motivation with APNI. - To analyze current situation and find out the main factors motivating as well as de-motivating employee at APNI. - To give solutions and recommendations to enhance employee motivation at APNI. During the research process, the author conducted in-depth interviews with 9 peoples (in which: 5 employees, 2 managers and 2 ex-employees) and survey 50 respondents at APNI about the relevant issues about enhancing employee motivation. The result of the survey shows that the employee motivation at APNI is not rather good. At APNI, some hygiene factors are not ensured and some motivation factors are not concentrated on. Salary policy is not good in current salary, salary 5 increasing policy, reward policy. Some working conditions are not good. Welfare and other benefit policy are lower than many others company. Recruitment policy and human resource policy is still ineffective and inappropriate. The recognition is rather bad and unfair. Some time, the work is not really interesting and challenging. PA policy is not specific and ineffective. Lastly, there are few opportunities for employees to get promotion in working process at APNI. Besides, some motivation factors are really good such as office location, business transportation, security in working place, training program, relationship between employees as well as employees and managers. From the finding, the thesis recommended some solutions for APNI to enhance employee motivation as follows: - Improving working condition at APNI - Adjusting in salary policy - Set up a standard and comprehensive recruitment procedure - Improving the interesting and challenging work - Establishing effective feedback system for managing at APNI - Establishing standard performance appraisal system to ensure equity - Improving insurance and health policy - Improving welfare, other benefit and reward policy and recognition program The author expects that the research will contribute to the APNI’s human resource policy and help the manager to recognize and consider more about the important of “enhancing employee motivation” in developing process of the company. 6 CHAPTER 1: INTRODUCTION 1.1 Rationale Human Resources Management always plays an important role in any organizations. Each organization can only obtain their objects when they have the employees working enthusiastically, efficiently and creatively. The more motivations the employees get from the organizations, the more effort they try to contribution to the organizations. So, employee motivation is one of the most priority issues of any organization all over the world as well as Viet Nam. But in fact, many organizations appreciate employee motivation and gain much more success in implementing all objectives, while the others do not realize and pay attention on employee motivation in building up the organization’s overall strategy. Anphanam International Co., Ltd (abbreviated as APNI) was established in 2007, with headquarters at No. 20, Bo De Street, Long Bien district, Hanoi. APNI is a small trading company, operating in the field of industrial equipments. The company specializes in the import of comprehensive industrial machinery and equipments, industrial consumable materials, industrial chemicals to serve large factories in industrial zones. Although in the initial establishment, the company faced many difficulties, but with the efforts of the board of directors and all staffs, the company has been gradually going up and achieved significant results. Revenue is growing and the company has become the stable supplier, trusted by many large customers such as Honda Viet Nam Co., Ltd, Viet Nam Auto Part Co., Ltd, Goshi Thang Long Auto Part Co., Ltd , Machino Auto Part Co., Ltd, Chinfon Cement Co., Ltd, Yamaha Thang Long Co., Ltd, Elentic Viet Nam Co., Ltd and so on. However, in recent years, it is seem to be the fact that all employee activities were not really effective. The working atmosphere was very sluggish, tired, and very passive. There were some employees tried to keep up on the fingerprint mark timekeeper, after that, they go out for breakfast, café, or do some thing relevant to 7 [...]... on employee motivation Chapter 3: Current Situation of employee motivation at Anphanam International Co., Ltd Chapter 4: Solutions and recommendations to enhance employee motivation at Anphanam International Co., Ltd CHAPTER 2: THEORETICAL FRAMEWORK ON EMPLOYEE MOTIVATION 13 2.1 Definitions and roles of employee motivation 2.1.1 Definition of employee motivation Motivation What is motivation? Motivation. .. current situation and find out the main factors motivating as well as de-motivating employee at APNI  To give solutions and recommendations to enhance employee motivation at APNI 9 1.3 Research questions  What are suitable theoretical frameworks on employee motivation at APNI?  What are the factors motivating as well as de-motivating employees at APNI?  How to enhance employee motivation at APNI?... research Enhancing employee motivation at Anphanam International Co., Ltd the author showed out the real picture of employee motivation in APNI and clarified how the motivation factors affects on the working behavior of the employee and based on that, the author gave out some solutions to enhance Anphanam s employee motivation 1.2 Research Objectives  To synthesize relevant theories on employee motivation. .. Physiological Salary Fair-unfair Source: Author’s information CHAPTER 3: CURRENT SITUATION OF EMPLOYEE MOTIVATION AT ANPHANAM INTERNATIONAL CO., LTD 26 3.1 Overview of APNI and its characteristic affecting employee motivation 3.1.1 Establishment of APNI The main name of the company is Anphanam International Co., Ltd (abbreviated as APNI Co., Ltd) APNI was established on 15 th March 2007 with business... Ltd - Sumidenso Viet Nam Co., Ltd - Panasonic Viet Nam Co., Ltd - Sakura Viet Nam Co., Ltd - Hamaden Viet Nam Co, Ltd - Fujis Vietnam Co., Ltd - Yamaha Thang Long Co., Ltd - Toto Co., Ltd - Vmep Co., Ltd - Sumitomo Bakelite Vietnam - Denso Vietnam Co., Ltd 29 3.1.3 Organizational structure In general, APNI has a relative simple organizational structure with the chart of organization as follows: BOARD... services So at this moment, APNI was specially trusted by many stable customers as following: 28 - Ha Long Ship Yard Co., Ltd - Pha Rung Ship Yard Co., Ltd - Ben Kien Ship Yard Co., Ltd - IHI-Jurong Joint-venture Co., Ltd - Chinfon Cement Corporation - Honda Vietnam Co., Ltd - Goshi Thang Long Auto Part Co., Ltd - Vietnam Auto Part Co., Ltd - Machino Auto Part Co., Ltd - Volex Vietnam Co., Ltd - Sumidenso... hygiene and motivation factors and clarified in to five levels, in which: At level 1: Very dissatisfied At level 2: Dissatisfied At level 3: Normal At level 4: Satisfied At level 5: Very satisfied 11 Table 1.1: Data collecting methods Methodology In-depth interviews Respondents 5 employees managers and Purpose 2 Factors influencing employee motivation in APNI - The main reasons of leaving APNI 2 ex-employees... ex-employees Survey (questionnaires) 50 employees managers Comments or suggestions about APNI’ Human Resource policies - The real situation of employee motivation at and APNI Assessment about policies and current motivation at APNI Source: Author’s information 1.4.3 Data Analysis By all the data collected, the author used the quantitative and qualitative methodologies and illustrated with charts, tables to describe... the data 1.5 Research Scope Research Object: Focus on enhancing employee motivation of all employees at APNI (including all employees and managers of 6 departments) There were 50 employees and managers in 6 departments joined the survey, approximate 83% total population of the company There were 9 employees (including 2 managers, 5 12 employees and 2 ex-employees) joined the in-depth interview Location:... Theoretical Objectives Back ground Secondary data (2009 - 2011) Data Collection Primary data In-depth interview ( 9 ) Survey ( 50 ) Real situation of Recommendations Employee motivation Figure 1.1: Research Process Source: Author’s information 10 1.4.2 Data collection The data was collected from two sources: secondary data and primary data as details as follows: Secondary data was collected from: + Textbooks, . at Anphanam International Co. , Ltd Chapter 4: Solutions and recommendations to enhance employee motivation at Anphanam International Co. , Ltd CHAPTER 2: THEORETICAL FRAMEWORK ON EMPLOYEE MOTIVATION 12 2.1. Machino Auto Part Co. , Ltd, Chinfon Cement Co. , Ltd, Yamaha Thang Long Co. , Ltd, Elentic Viet Nam Co. , Ltd and so on. However, in recent years, it is seem to be the fact that all employee activities. interpersonal relation 56 3.2.3 Analyzing the motivation factors on Employee motivation at Anphanam International Co. , Ltd 56 Figure 3.12: The average score of employees’ satisfaction level on recognition