HOW TO MOTIVATE EMPLOYEES AT ATLAS COPCO VIETNAM COMPANY In Partial Fulfillment of the Requirements of the Degree of MASTER OF BUSINESS ADMINISTRATION In Marketing By Ms. TRAN THI QUY LOC ID: MBA03018 International University - Vietnam National University HCMC February 2013 HOW TO MOTIVATE EMPLOYEES AT ATLAS COPCO VIETNAM COMPANY In Partial Fulfillment of the Requirements of the Degree of MASTER OF BUSINESS ADMINISTRATION In Marketing by Ms. TRAN THI QUY LOC ID: MBA03018 International University - Vietnam National University HCMC February 2013 Under the guidance and approval of the committee, and approved by all its members, this thesis has been accepted in partial fulfillment of the requirements for the degree. Approved: ---------------------------------------------Chairperson --------------------------------------------Committee member ---------------------------------------------Committee member --------------------------------------------Committee member ---------------------------------------------Committee member --------------------------------------------Committee member Acknowledge I would like to thank my supervisor, Dr. Le Thanh Long, for his constant support and guidance. His friendly encouragement has been greatly appreciated. I should also like to thank my parent; husband and friends who have always helped ensure that this thesis is completed. Finally, I would like to thank all the colleagues that took the time to give me more information’s relate to this research. -i- Plagiarism Statements I would like to declare that, apart from the acknowledged references, this thesis either does not use language, ideas, or other original material from anyone; or has not been previously submitted to any other educational and research programs or institutions. I fully understand that any writings in this thesis contradicted to the above statement will automatically lead to the rejection from the MBA program at the International University – Vietnam National University Hochiminh City. - ii - Copyright Statement This copy of the thesis has been supplied on condition that anyone who consults it is understood to recognize that its copyright rests with its author and that no quotation from the thesis and no information derived from it may be published without the author’s prior consent. © Tran Thi Quy Loc/ ID.MBA03018/2010-2012 - iii - Table of Contents CHAPTER I: INTRODUCTION .......................................................................................1 I.1. Introduction .....................................................................................................................1 I.2. Statement of problem....................................................................................................... 1 I.2.1. The Atlas Copco’s background ............................................................................ 1 I.2.2. The problem at Atlas Copco Vietnam ..................................................................4 I.3. Research objectives ......................................................................................................... 5 I.4. Rationale for the study..................................................................................................... 5 I.5. Scope and limitation of the study .................................................................................... 6 I.6. Research structure............................................................................................................ 6 CHAPTER II: LITURATURE REVIEW ......................................................................... 8 II.1. The concepts of motivation ............................................................................................ 8 II.1.1. Motivation ........................................................................................................... 8 II.1.2. The work motivation ......................................................................................... 10 II.2. The Motivation Theory ................................................................................................ 13 II.2.1. Content theories .................................................................................................14 II.2.2. Process theories ................................................................................................. 19 II.3. The effects of motivation on employees ......................................................................23 II.4. The motivation factors .................................................................................................26 II.4.1. The monetary factors......................................................................................... 29 II.4.2. The non-monetary factors ................................................................................. 31 II.5. Research model ............................................................................................................ 36 CHAPTER III: RESEARCH METHODOLOGY.......................................................... 37 III.1. Research approach ......................................................................................................37 III.2. Research strategy ........................................................................................................ 37 III.3. Process of procedure ...................................................................................................38 III.4. Data collection ............................................................................................................39 III.4.1. Sample size ......................................................................................................40 III.4.2. The tools of data collection.............................................................................. 41 - iv - III.5. Data analysis ...............................................................................................................43 III.6. Validity and reliability ................................................................................................45 III.7. Research process .........................................................................................................46 CHAPTER IV: DATA ANALYSES AND FINDING ....................................................49 IV.1. The Finding..................................................................................................................49 IV.2. RQ1: Which factors impact to motivation? .................................................................51 IV.3. RQ2: What do factors affect to motivation like? ........................................................56 IV.4. RQ3: How to have effective motivation at company?.................................................61 CHAPTER V: CONCLUSION AND RECOMMENDATION ......................................65 V.1. Conclusion ....................................................................................................................65 V.2. Recommendation ..........................................................................................................67 V.2.1. Recommendation for organization.....................................................................67 V.2.2. Recommendation for future research.................................................................68 REFERENCE......................................................................................................................69 APPENDIX A: Interview Guide - Question Guide for Employees ................................74 APPENDIX B: Interview Guide - Questions Guide for Leaders ...................................75 LIST OF FIGURES AND TABLE Figure 1: Atlas Copco Organization Chart ............................................................................ 3 Figure 2: Maslow’s hierarchy of needs................................................................................ 14 Figure 3: Herzberg’s theory – factors affecting job attitudes .............................................. 18 Figure 4: Adam’s Equity Theory – job motivation...............................................................21 Figure 5: The Research Model of Motivation Employees at Atlas Coco Vietnam ............. 36 Figure 6: The Research Process Model ................................................................................48 Figure 7: The New Model of Motivation Employees at Atlas Copco Vietnam ...................49 -v- Abstract Motivation seems to be one of the most important tools of Human Resource Management. Organizations design motivation systems to encourage employees to perform in the most effective way to attract and keep potential candidates. The key to create the efficient motivation system is an answer to the question what really motivates employees. The purpose of this study is to provide a better understanding of the employee motivation issues in the company. Beside that, it is also find out which motivation factors are seen as the most important to encourage and keep employee’s loyal and commitment. The aim is to analyze findings in the light of existing motivation theories. From that, organization will have well-motivated employees as well as good managers with the possibility to motivate others. A qualitative, case study methodology was used to interview two groups: subordinate group and leader group, at Atlas Copco Vietnam Company. The findings showed that motivation is very important and managers have to have a hard task motivating their employees. The knowledge from the theoretical part of this paper combine with results of the research can be useful for managers who have interaction directly to their employees become more perfect. Key words: Employee motivation, Motivation factors. - vi - - vii - CHAPTER I: INTRODUCTION I.1. Introduction Business all over the world today is very challenging. Internal and external operating environment factors continue to challenge corporate performance and revenue growth. To stay profitable in the highly challenging and competitive global market economy, all the factor of production - men, machine and materials – should be wisely managed. Among the factors of production the human resource constitutes the biggest challenge because it require about skills of thoughts, feelings and emotions to secure highest productivity. Employee motivation delivers long-term benefits in the form of high productivity. A motivated employee is a valuable asset, which delivers immense value to the organization in maintaining and strengthening its business and revenue growth. Employee motivation is a major factor in the success or failure for any organization. Therefore, competitive organizations must invest in effective strategies to motivate the staff. Different factors motivate individuals and teams differently. Some people are motivated by money, others by the opportunity for professional development, flexible schedules, or a sense of accomplishment. So, from line managers to top executives, understanding what factors motivate their employees is key to gaining the human resource advantage that leads success in challenging marketplace. Motivated employees are willing to devote time to certain level of commitment for a particular objective in an organization. The motivation process is significant enough to affect the levels of trust and commitment necessary of employees, who will perform well the work requirements of organization. I.2. Statement of Problem I.2.1. The Atlas Copco’s background: Atlas Copco is an industrial group with world-leading positions in compressors, expanders and air treatment systems, construction and mining equipment, power tools and assembly systems. With innovative products and services, Atlas Copco delivers solutions for sustainable productivity. The company was founded in 1873, is based in 1 Stockholm, Sweden, and has a global reach spanning more than 170 countries. In 2011, Atlas Copco had 37500 employees. Atlas Copco has been operating in Vietnam from 1994 through some distribution companies. But, to 2004, Atlas Copco Vietnam has founded with 100% wholly ownership by Atlas Copco Group. Atlas Copco Vietnam’s operation, all have to base on principles of the Group, as follow: * Vision The vision of the Group is to be “First in Mind – First in Choice” of its customers, business partners, stakeholders, as well as employees. The vision is also the driving force of the corporate responsibility strategy in order to achieve sustainable results. * Strategies To reach the vision, First in Mind—First in Choice, the Group has three overall strategic directions: - Organic and acquired growth - Strengthened aftermarket - Innovations and continuous improvements * Core values The Group's core values of interaction, commitment, and innovation formed our past, created our present, and will guide our future. Our core values represent a competitive advantage to the Group and help us to maintain our leadership position, even in a changing environment. * Organization The Atlas Copco is organized in separate, focused but still integrated business areas, each operating through divisions. The role of the business area is to develop, implement, and follow up the objectives and strategy within its business. The divisions are separate operational units, each responsible to deliver growth and profit in line with strategies and objectives set by the business area. The divisions generally conduct business through customer centers, distribution centers, and product companies. Common service providers – internal or external – have been established with the 2 mission to provide services faster, to a higher quality, and at a lower cost, thus allowing the divisions to focus on their core businesses. Figure 1: Atlas Copco Organization Chart * Relationships - Society and the environment: being a good and reliable corporate citizen, observing the spirit as well as the letter of the laws of the countries in which we operate. - Employees: being the preferred employer of both current and potential employees. Our aim is to attract, develop, and keep qualified and motivated people in a professional environment. - Customers: being the preferred supplier to current and potential customers and end-users, which means that we should achieve the highest possible customer and market share? 3 - Business partners: being the best associate for our business partners, such as suppliers, subcontractors, joint venture partners and agents, and to be the one that they prioritize. - Shareholders: being the preferred company for shareholders to invest in, and we aim to create, and continually increase, shareholder value. I.2.2. The problem at Atlas Copco Vietnam The Atlas Copco is known with many good policies and practices to develop long-term not only for customers, shareholders and partners, but also for their employees. However, in the recent period at Atlas Copco Vietnam, unfortunately, the phenomenon of brain drain and employee replacement frequency have been occurred and created many troubles for operation of Atlas Copco Vietnam’s business and management and leadership at there also. Many employees were replaced continuously in the short time, especially in 2010 until now. Almost of them have leaved the Atlas Copco Vietnam, then they become new competitors or work for competitors of Atlas Copco on the market soon. Staying employees almost felt unhappy and didn’t trust their leaders. This perspective is very serious and are forecasted is the unsustainable leadership. The fact of connecting between employees with Atlas Copco Vietnam is not enough durable. Because employees feel that they have not had motivation from leaders, that reason why the senior employees have gone away and found out new opportunities and some of remaining others have became lack of dynamism, creativity and innovation; cumbersome and indifferent attitude or lack of responsibility, etc. lead to stagnation mode of operation. There are many phenomena of lack of active labor and the departure of employees. Firstly, remuneration, salary is not adequate for the work and effort of employees. Secondly, assessment of work capacity is not specific, relevant and no opportunity for advancement. Notably, the decline in prestige of leadership, management, the weak management capacity, the decline of morality is also a cause affect positive labor of employees. 4 Happy employees are loyal employees. Happy employees are devoted employees. However, the creation of "happiness" for employees is still problematic for many companies and leaders. According to me, this is the problem of managing people, and the key for case is how to motivate employees at Atlas Copco Vietnam? I.3. Research Objectives The main objectives of this study are: - Identifying the factors impact to employee motivation. - Proposing recommendations about the ways to motivate employees at Atlas Copco Vietnam Company From research objective, we have three research questions as follow: - RQ1: Which factors impact to motivation? - RQ2: What do factors affect to motivation like? - RQ3: How to have effective motivation at company? I.4. Rationale for the study The study focuses to find out factors motivate employees in working environment. Identifying the factors that promote positive motivational behavior among employees. This will help leaders recognize and resolve negatives in employee’s behavior to keep loyal and devoted employees always beside. Helping manage effective time and people management in organization. From that, increasing competitive, productivity abilities on market. The rationale of this study is reflected very clearly through the case at Atlas Copco Vietnam Company, so the study benefits two primary groups. The first group it benefits is managers in the company. With the knowledge of what motivates employees, managers can better determine what drives employees to do their best work. They can use this information to get more value out of the people they hire and already employ by using effective motivational strategies other than monetary incentives. Managers need to know what drives their subordinates and peers in order to be effective leaders in the work place. The recommendations in this research will enable managers to get the best 5 performance out of their employees and increase productivity in their departments. The second group this study benefits is the employees. Employees can use this information to determine what helps to motivate them as well as understand what motivates their peers. If there is a greater level of understanding and cohesion between employees and managers, the company as a whole will prosper. I.5. Scope and limitation of the study This study was completed using the input of former and present employees of the Atlas Copco Vietnam Company in all different departments. These employees were surveyed for the purpose of discovering what is most motivating to them in the workplace. Employee motivation is defined as the eagerness or drive in an employee that directly influences their level of involvement or performance in the workplace. Motivating factors are reasons for employee motivation, and in order to best evaluate and describe which of these factors are most and least critical to employees, we have split this study up into the following criteria: monetary factors and non-monetary factors. The study was limited to employees working in the company of Atlas Copco Vietnam at Binh Duong province. All employees were surveyed live in Ho Chi Minh city area. The main questions in the survey asked about employees’ expectations of factors that motivate for them in their job. It is possible that an experience in a real work environment will change in individuals’ opinions towards motivating factors. I.6. Research structure This thesis will be divided into 5 main chapters. The significant contents of each part will be illustrated as follow: – Chapter 1: Introduction: In this chapter an introduction will be presented on the topic of motivation. The background lays the foundation for problem discussion where we will discuss the problem we discovered in the research area. This will direct us to overall purpose and 6 research questions including delimitation. Finally, it will present an overview of the entire thesis. – Chapter 2: Literature Review: This chapter will present an outline of previous research done in the area of managerial perspective on motivation. We will review existing research on what managers can do to motivate their employees, the factors of motivation and frameworks. – Chapter 3: Research Methodology: It will be began by explaining the research method that we use in this study. An explanation of the strategy and how we collected data as well as a sample selection will be explained. Finally, we will discuss problems that appeared throughout this thesis and how we managed to overcome them. – Chapter 4: Analyses and Findings: The data collected for this study through personal interviews. The interview guide used for collecting data on the Atlas Copco Vietnam Company can be found in Appendix A and Appendix B. This chapter contains the analysis of the data collected and findings on motivation. This chapter will answer the stated research questions in chapter one. – Chapter 5: Conclusions and Recommendations: The final chapter contains the conclusions and recommendations. The conclusion states a foundation for possible implications on how to continue with this study. We will provide implications for theory followed by implications for practitioners and finally, implication for future research. 7 CHAPTER II: LITERATURE REVIEW II.1. The concepts of motivation II.1.1. Motivation Motivating is the work managers perform to inspire, encourage and impel people to take action (Louis Allen, 1986, citation from Michal Kirstein, 2010). Motivation efforts must be directed towards improving organization operations. To be effective, however they must also be designed to show benefits to the employee. In fact, motivation can best be accomplished when workers are able to merge their personal ambitions with those of the organization. According to Robin and DeCenzo (1995) motivation is defined thus “the willingness to exert high level of effort to reach organizational goals, conditioned by the effort’s ability to satisfy some individual need”. Campbell and Pritchard (1976, according to Michal Kirtein 2010) in defines motivation as a set of independents and dependant relationships that explains the direction, amplitude and persistence of an individual’s behavior holding constant the effects of aptitude, skills, understanding of a task and the constraints operating in the work environment. Schrader (1972, according to Darren, 2008) linked construction worker need to motivation and it was subsequently concluded by Thomas et al. (1990) that there is evidence supporting the existence of a linkage between an employee’s motivational level and their individual performance. Atkinson (1964, according to Michal 2010) defines it as the contemporary immediate influence on the direction, vigor and persistence of action. The relationship between the employer and employee must be one of understanding in order for the employee to identify himself with his work and with the business he is working for. Lack of motivation in return affects productivity. A number of symptoms may point to low morale: declining productivity, high employee turnover, increasing number of grievances, higher incidence of absenteeism and tardiness, increasing number of defective products, higher number of accidents or a higher level of waste materials and scrap (William Day, 1998). A motivated employee is a loyal employee and to be loyal implies that the employee supports the actions and objectives of the firm. The appearance of the job as a whole has, in fact a bearing on the willingness 8 and quality of an employee’s performance (Martin Bruce, 1962, citation from Martin & Anders, 2004). According to McClelland (1961, citation from Michal 2010) individuals tend to develop certain motivational drives on the cultural environment in which they live and these drives affect the way people view their jobs. McClelland suggests that achievement, affiliation, competence and power are four types of motivational drives that are found in individuals that are self-motivated and this may be the case for many construction workers. Motivation plays a part in enhancing construction labor productivity (Smithers and Walker, 2000) and forms the basis for identification of the work environment factors. For example, Laufer and Moore (1983) advocated the use of financial incentive programs to improve construction labor productivity, reinforcing Maloney’s (1982) thesis of driving forces that led to productivity improvements. Autonomy and comradeship of Edwards and Eckblad (1984) are also, found to be important aspects that add to the way construction workers are self-motivated about their work. However, much work in linking motivation and productivity relied on Hertaberg’s sample involving mainly whitecollar professionals (Mullins, 1996). Furthermore, Hofstede (1998) decried such motivational theories as merely point made about the ad nauseam emphasis on the managerial perspective in the quest to improve productivity. John Borcherding and Clarkson Ogelsby (1974, accoding to Michale 2010) discovered that productive job creates high job satisfaction while non-productive job (one which fall behind schedule) produce dissatisfaction at all levels of the management/worker chain. The relationship is believed to be due to the very nature of construction, thus different from the one found in an office or factory setting which states that high job satisfaction leads to greater productivity. In construction, a worker, through his own efforts produces a highly visible, physical structure in which great satisfaction comes from completion. Therefore, jobs that are well-planned and run smoothly produce great satisfaction while jobs with poor management (with scheduling and planning problems) create dissatisfaction. This illustrates the relationship between job satisfaction and productivity since; well-managed jobs are generally more productive. A close review of all theories of human motivation reveal a common driving principle that people do what they are rewarded for doing. In general, the theories on 9 motivation can be classified as: employee needs motivation through goal setting, employee reward, incentives and reinforcement. Marusarz’s comment echoes Frederick Herzberg’s theory of motivation, which states that the factors, which motivate people at work are different, and not necessarily the opposite of the factors, which cause dissatisfaction. Herzberg claimed that positive hygiene factors such as work conditions and salary simply satisfy basic employee needs, whereas motivators (e.g. achievement and recognition) encourage employees to work above and beyond the minimum requirements. In 2006, the HR Daily Advisor reported that 89% of employers think their people leave for more money, while only 12% of employees actually do leave for that reason. "Compensation alone is not enough to keep the highly skilled motivated and experienced workforce your business needs to excel" (Greenburg, 2008). In a four years analysis of more than 100,000 employees worldwide, the Corporate Leadership Council discovered that while workers join companies for rational motives (better compensation, benefits and career opportunities), they are and work hard for emotional ones. (Jean Martin and Lawler, 2008). Furthermore, according to W.Stanton Smith (2008), a new generation of workers, the Millennials, is entering the workforce with a desire for long-term employer relationships on their own terms. This new group is shaking up the workforce and demanding more from their employer than simply financial compensation for their work and ability to be ‘on-call’ at all times thanks to communication technologies. According to Towers Perrin (2007), employees are more interested in ‘talent friendly’ organizations that offer a good work-life balance than those offer high salaries. II.1.2. The Work Motivation The term motive usually is explained as desires, needs, emotions or impulses that make someone do something. Following this definition, motivation is the state of being incited to action. When we take into consideration work environment it becomes clear that work motivation refers to motivation within a work setting. Typically, it refers to employees’ motivation to perform, stay and commit in a company, cooperate, lead or support a leader, help customers and so forth. Obviously, this definition from 10 International Encyclopedia of Organizational Studies (ed. Bailey & Clegg, 2008) is just an example from a mass of work motivation definitions, which can be found in almost every paper about this topic. Some authors define what motivation is by explaining where it comes from. In this approach work motivation has been defined as “a psychological process resulting from the reciprocal interaction between the individual and the environment that affects a person’s choices, effort, and persistence” (Latham & Ernst, 2006). In other definitions work motivation is associated with the goal attainment. People are motivated to do something if they believe it is likely that it will bring desired result. People who are well motivated take action that they expect will achieve their clearly defined goals (Armstrong, 2007). Kanfer (1990, as cited in Bjorklund, 2001) stressed that motivation is a phenomenon, which cannot be directly observed. The only way to infer motivational processes is to analyze streams of behavior caused by environmental or inherited factors, which can be observed through their effects on abilities, beliefs, knowledge and personality. There are probably as many definitions of motivation as researchers working on this topic. However, there are some features of motivation that are common for most definitions. It can be observed from the examples presented above that when authors describe motivation they mention an action or behavior that is directed and sustained as a result of motivation. In other words motivation is usually described as an invisible force that pushes people to behave in a certain way. For the purpose of this thesis definition by Pinder (1998) will be used, as it seems to define motivation both in a comprehensive and explicit way. Pinder used work of Jones (1995), Locke, Shaw, Saari, and Latham (1981), Steers and Porter (1979), and Vroom (1964) to formulate following definition (1998, p.11): “Work motivation is a set of energetic forces that originate both within as beyond an individual’s being, to initiate work-related behavior, and to determine its form, direction, intensity, and duration”. Pinder (1998) believes that presented definition has some features that make it better than others. Firstly, it is not general as many other definitions, it presents motivation in a close relation to work and careers. His definition is intended to apply behavior such as joining or leaving company, being punctual, respecting or not supervisor’s orders, inventing better ways to performing a job and accepting relocation to 11 another place. According to Pinder one of the key elements that are important in defining motivation is a concept of force. It not only makes the definition consistent with other authors work but also allows motivation level to be weak or strong depending on circumstances. The idea of force suggests that motivation is related to an effort. Pinder believes that effort is a consequence and indicator of motivation rather than the same phenomena. He points out that his definition does not present hedonism as a primary force in work motivation. However, it does not exclude it either. There are three more important elements of Pinder’s work motivation definition: intensity, direction and duration. Author describes the intensity dimension using two terms created by Brehm and Self (1989) – potential motivation and potential arousal. The first of those two terms is created by expectations that performance of behavior will affect final outcome. The second term is dependent on magnitude of potential motivation and occurs only to the extent that particular behavior is difficult. In Pinder’s opinion intensity is not affected by the potential available and is defined as the transient size of motivational arousal in a particular point of time. The direction can be understood by considering towards which goals the energy of motivation is directed. Finally, the duration suggests that goal achieving might be a possible outcome of on job behavior. As the last but also very important feature of the definition Pinder mentions the fact that motivation is presented as a hypothetical construct which cannot be measured or seen directly but is treated as an existing psychological process. Ray William (2010) illustrated “Ask workers what makes them unhappy at work, and you'll hear them talk about insufficient pay or an uncomfortable work environment, or "stupid" regulations and policies that are restraining or the lack of job flexibility and freedom.” It turns out that people are motivated by interesting work, challenge, and increasing responsibility, they are intrinsic factors. Moreover, people have a deep-seated need for growth and achievement. What do we mean by motivation? It's been defined as a predisposition to behave in a purposeful manner to achieve specific, unmet needs and the will to achieve, and the inner force that drives individuals to accomplish personal and organizational goals. And why do we need motivated employees? The answer is survival. Motivated employees are 12 needed in our rapidly changing workplaces, and to be effective, managers need to understand that and do something about it. II.2. The Motivation Theory The subject of motivation has been present in the literature from the early beginning of 20th Century. Although, many theories have been developed and a plenty of research has been conducted, factors that motivates people to perform well at work are still a controversial topic. Many researchers as a starting point for their work in the field of motivation used the most known theories and models of motivation. Armstrong (2007) in his book about employee reward management summarized those theories in a clear and useful way. According to him, Taylor’s theory of motivation to work is related to rewards and penalties, which are directly connected to performance. Maslow’s concept of hierarchy of needs is less instrumental approach. It defines motivation as a result of peoples unsatisfied needs. Herzberg focused on a distinction between extrinsic and intrinsic motivators. Those “old” theories are definitely important, however they are not perfect. Analysis showed that they are characterized by some significant weaknesses. Armstrong presents modern, process theories, which approach motivation from different perspective. As an example, Vroom’s expectancy theory explains that motivation exists only when relationship between performance and outcome is clear and usable. Goal theory emphasizes the role of a feedback and setting goals in relation to motivation and performance. Finally, Equity theory says that people are more motivated if they are treated equally. In the previous part of this paper a number of motivation definitions have been presented. Each of existing definitions has some strengths and weaknesses. Exactly the same can be said about motivational theories. As one can observe from the short overview presented above there are many different theoretical approaches to the topic of motivation. Motivation for a group of authors is strictly related to human needs, while point of view of other authors is much more focused on cognitive processes that influence peoples’ behavior. In the literature of the subject those differences between theories resulted in a division in two categories: content and process theories. In the next 13 part of this paper the most important theories from each category will be presented and analyzed. II.2.1. Content theories The content theories are characterized by emphasis on what motivates people. They concern with individual goals and needs, which are said to be the same for every person. Although, they assume that all people posses a similar set of needs, the differ in defining what those needs are. The most well-known and very often cited author of motivational theory is Maslow with his hierarchy of human needs (Fincham and Rhodes, 2005). In Maslow’s point of view human behavior is driven by the existence of unsatisfied needs. His hierarchy starts from psychological needs and lead through security needs, social needs, self-esteem needs and self-actualization needs on the top position (see figure 1) Figure 2: Maslow’s hierarchy of needs Source: Mazlow's Hierarchy of Needs.svg 14 According to Maslow, higher needs are not felt until lower needs are not fulfilled. Additionally, when the need is satisfied it does not influence human behavior anymore and as a result the focus is moved into a need, which is higher in the hierarchy. Maslow divided needs into two categories: deficiency needs and high-order needs. Deficiency needs include basic needs such as hunger or thirst and a need for shelter and protection. When these needs are satisfied people become motivated by high order needs such as the need for supportive and satisfactory relationships with others, needs for freedom, independence, recognition and achievement and finally the need to develop one’s potential. The self-actualization, which is the highest step in Maslow’s pyramid, can be described as the ending point of gradual psychological maturation process. This final level is achieved by few people and unlike other needs is never fully satisfied (Fincham & Rhodes, 2005). Maslow’s work on the theory of needs has been followed by other authors who took an attempt to improve it. One of modifications was presented in 1973 by Alderfer, who developed and tested model with fewer needs levels (Pinder, 1998). His study, unlike Maslow’s, was based on empirical research in organizational settings. The theory suggests three general categories of human needs, which are partly based on Maslow’s model but are not the same. Alderfer’s model is named ERG and consists of existence needs, relatedness needs and growth needs. The first group is closely related to Maslow’s physiological needs and partly to security needs (only physical security). Existence needs are concrete in nature and are usually limited. A good example of them in organization setting is a salary. If money has to be divided between two groups - the more money receives one group, the less gets the other group. Relatedness needs basically consist of the interpersonal security needs, the need for prestige and esteem from others. Satisfying relatedness needs requires development of relations and interactions with other people. The last group of needs in Alderfer’s theory contains growth needs. Although, growth needs are corresponding to Maslow’s self esteem and self-actualization needs there are some major differences in a point of view of those two authors. Maslow suggested that self-actualization consist of a fulfillment of unique, innate potential, whereas Alderfer’s growth needs contain desire to interact with environment by 15 investigating, exploring and mastering it. In Alderfer’s model growth needs change if one’s environment changes (Pinder, 1998). The next important contributor to the field of content theories is McClelland whose model became a starting point for many other authors’ research. McClelland’s theory focuses on three motives that are relevant in an organizational context (Miner, 2006). Maslow differentiated between any certain transitions among the needs, whereas McClelland indicates that some people have higher needs than others. Moreover, needs in McClelland’s point of view change over a life as they are shaped by peoples’ experience. That is why in some sources his theory is called “acquired needs theory”. McClelland (1990) suggested that most of acquired needs can be classified to one of three groups: achievement needs, power needs or affiliation needs. In his opinion some people have a strong need for achievement others for power and finally there is a group that desire affiliation. High achievers tend to perform better for the intrinsic satisfaction for doing something better or just to show that they are more capable of doing something. They prefer to work with tasks, which are moderately challenging and they actually perform better with those kinds of tasks. In one of their papers McClelland’s and Burnham (1976) deliberate on what makes people good managers. They suggest that high achievement is an important factor that leads to the personal success but it does not necessarily make someone a good manager. High achievers work on their own success by doing everything personally and by receiving feedback that is crucial for them. Managers are not able to do everything by themselves so they have to put some responsibility on others. As well as that, the feedback that they receive comes with a delay, so they are not able to find out immediately how well they performed. Regarding those facts McClelland’s and Burnham stated opinion that the factor that has a great influence on being a successful manager is something else than a need for achievement. They suggested that it is the need for power that is characterized by a desire to influence people. McClelland (1990) found that people who desire to have some serious influence on other have some special traits. The high need for power usually comes with features such as competitiveness, assertiveness and aggressiveness, which result in a negative self-image. The socially acceptable way to fulfill the need for power is the search for prestige by collecting symbols of power. People characterized by a high need for power tend to act in a way that makes them 16 recognized in a group. Finally, they are more willing to take a risk. The last group of needs described by McClelland’s model is the group of needs for affiliation. The term affiliation was described by Atkinson, Hens, & Verify (1954), as “the concern over establishing, maintaining, or restoring a positive, affective relationship with another person or persons” (as cited in McClelland, 1990, p.347). People with a strong need for affiliation perform well in tasks which are related to incentives. In other words, they prefer if their work require maintaining contacts with other people. High affiliated individuals avoid conflict and prefer to solve problems by cooperative and confirmative behavior. The reason for that is the fear for rejection. McClelland’s findings suggested that the need for affiliation is not a factor that supports management. Managers high in affiliation try to spend more time with employees and make good relations with them, but it is not a crucial part of being a manager, who sometimes has to make hard decisions (McClelland, 1990). The last content theory that will be presented in this chapter is Herzberg’s twofactor theory. The theory brought a lot of interest from academics and from managers who were looking for ways of motivating their employees. The reason for so much interest in Herzberg’s results comes from a dual character of his work. His theory not only describes employees’ needs but also goes further and presents how to enrich jobs and make workforce more motivated (Fincham & Rhodes, 2005). Herzberg indicates that job satisfaction and job dissatisfaction are not opposite phenomena (Herzberg, 1968). According to him the opposite of satisfaction is rather no satisfaction and the opposite of dissatisfaction is no dissatisfaction. Herzberg suggests that satisfaction and dissatisfaction are produced by different factors. People are satisfied at their work by factors related to content of that work. Those factors are called intrinsic motivators and contain achievement, recognition, interesting work, responsibility, advancement and growth. Factors that make people unhappy with their work are called dissatisfiers or hygiene factors. Herzberg found following dissatisfiers: company policy, supervision, working conditions, interpersonal relationships, salary, status, and security. What makes them different from motivators is the fact that they are not related to the content of the work but to the context of the job (Herzberg, 1974). Figure 2 presents a frequency of each 17 factor in Herzberg’s research and their division into hygiene factors and intrinsic motivators. Figure 3: Herzberg’s theory – factors affecting job attitudes Source: Herzberg, F. (1974). One more time: How do you motivate employees? Harvard Business Review. Jan2003, Vol. 81 Issue 1, p90. In Herzberg’s research the most frequently chosen factors which led to satisfaction were achievement and recognition, while the most frequently chosen factors which led to dissatisfaction were company policy and administration and good relations with supervisor. Each of presented here content theories has some strengths and weaknesses. It might have happened that authors of those theories focused strongly on a one side of the 18 problem but they missed other important side. Motivation of employees is really important topic, so every research in this subject is observed and evaluated by other researchers. As a result some researchers agree with and support original theories and others disagree and criticize them. In other words, the most well known theories in motivation bring some serious controversies. As an example, Maslow theory became popular despite a little evidence for its validity. As well as that, very often it seems to be presented in an oversimplified way (Pinder, 1998). Moreover, Maslow’s originally did not intend to create a theory that will be used to explain organizational behavior. Finally, his hierarchy does not appear in some circumstances, so it cannot be generalized to the whole population (Fincham & Rhodes, 2005). The validity was taken in consideration in evaluation of Alderfer’s theory. Also McClelland’s theory was followed by many others researchers who tried to check if author was right (Rauch & Freese, 2000; Aditya, House & Kerr, 2000; Shane, Locke, & Collins, 2003; Vecchio, 2003; as cited in Miner, 2005). In fact their results were not always completely supportive for McClelland’s model. Herzberg’s two-factor theory was criticized for biases caused by selection of just two occupational groups. Another reason for skepticism is the fact that people tend to explain their success by internal factors and their failure by external reasons. That could influence their choices of intrinsic motivators in relation to satisfaction and of external, organizational factors in relation to dissatisfaction (Fincham & Rhodes, 2005). Herzberg results were also attacked because he did not try to measure relationship between performance and satisfaction (Armstrong, 2007). As can be seen from this short overview of controversies and overlaps on content theories not every theory managed to defend it during decades. However most of them influenced the growth of interest in the topic of work motivation. In the next part of this paper more recently developed theories will be described and analyzed. II.2.2. Process theories Process theories are characterized by a dynamic character, not static as content theories. The main concern is not what motivates people but how motivation occurs. Process theories try to explain how and why peoples’ behavior is directed to certain choices. The focus of all process theories is put on “the role of individual’s 19 cognitive processes in determining his or her level of motivation” (Fincham & Rhodes, 2005, p.202). The process theory which seems to be the core one is the Expectancy Theory. This model was originally presented by Vroom (1968), however many other later researchers tried to adapt and develop it. Vrom’s Expectancy theory compromises three factors: valence, instrumentality and expectancy. Vroom describes valence in a relation to peoples’ affecting preferences toward particular outcomes. The valence of outcome is positive if a person prefers attaining it instead of not attaining. Oppositely, the negative valence of outcomes characterize situation when a person prefers not attaining it instead of attaining. The third possibility is zero valence of outcome, which means that a person is indifferent between attaining outcome or not. The instrumentality is a belief that one action lead to another. Finally, the expectancy is defined as a belief about likelihood that a particular behavior will be followed by a particular outcome (Vroom, 1964). Values of those three factors can be used to calculate the motivational force of the job. Summarizing, Vroom’s theory suggests that a job is motivating for employees when they can see a relation between performance and outcome, if they have abilities to do the job and if they see outcome as satisfying their needs. Vroom’s theory can be a suggestion for managers to focus on main aspects of their subordinate perceptions. As well as that, it is helpful in explaining occupational choices and in predicting tasks that people will work most and least hard at (Fincham & Rhodes, 2005). Another group of process theories - equity theories, are related to the distribution of resources. There are three main aspects that are common for all equity theories. Firstly, they suggest that employee perceive a fair return for his contribution at work. Secondly, they imply that employees compare the return they received to the return received by other for the same job. Finally, they assume that employees who are in inequitable position comparing to others will try to do something to reduce the difference (Carrell & Dittrich, 1978). The most influential and often cited in the literature of motivation is the Equity Theory, which was put forward in 1963 by Adams. The theory distinguishes between employee’s inputs and outputs. Inputs are understood as the number and value of contributions that person make to his or her work. Outputs are described as the nature and quantity of received rewards for doing the job (Pinder, 1998). Examples of inputs and outputs are presented in Figure 3. 20 Figure 4: Adam’s Equity Theory – job motivation Source: JS Adam’s Equity Theory (1963). Material is at www.businessballs.com According to Adam’s theory different employees stress different inputs and outcomes as the most important for them. However, all people evaluate their outcomes in a relation to their inputs and judge a fairness of this relation. What is suggested by the theory is the fact that people not only evaluate the equity by comparing the amount of their inputs and outputs but additionally they make social comparisons with other people. They feel that they are not treated fairly if other people receive better outputs for the same job. As was stated before, employees who encounter inequity try to do something to reduce it. The equity theory presents the most common consequences of perceived inequity. The first and the most common behavior is changing employee’s own effort to increase or reduce performance. If it is not possible to solve the problem of unfairness by changing effort then employee try to cognitively reevaluate outcomes and inputs. That 21 means for example reconsideration of own credentials or effort in a comparison to credentials or effort of a person who was chosen as a referent. The inequity may lead to some dysfunctional reactions such as stealing from employer. Finally, employee may simply decide to withdraw from a company (Pinder, 1998). Any chapter related to the process theories of motivation would not be complete without mentioning results of Locke and Latham’s work. Those authors introduced the goal setting motivation technique, which, according to them, is not only more effective than other methods, but also can be treated as a support for them (Locke & Latham, 1979). In their approach a goal is defined as an object or aim of an action that is attained in a specific limit of time. The one of their core findings is that the highest level of performance and effort are produced when the difficulty level of attaining goals is also very high. The only limit here is an ability of a person who tries to attain a goal. Authors found that people perform better if a specific difficult goal is set than if they are asked to perform as well as they can (Locke & Latham, 2002). What was surprising in Locke and Latham (1990) results was that performance does not differ regardless goals are assigned to people or if people participate in choosing their own goals. Authors explain it by the fact that usually superior that assigns the goal is treated like an authority. Moreover, the act of assigning a goal means that superior believes that subordinate has ability to fulfill that goal. In a result people became motivated to prove their competences. Finally, the assigned goals are helpful with defining peoples’ standards used to attain their selfsatisfaction from performance (Bandura, 1988, as cited in Locke & Latham, 1990). If there is an influence of setting goals on peoples’ performance there must be some mechanism that explains it. In fact, Locke and Latham (2002) basing on their own research and other researchers results (LaPorte & Nath, 1976; Wood & Locke, 1990), distinguished even four of them. First, goals direct effort and attention toward all activities that are related to achieving them. Difficult goals lead to more effort than easy goals, so it can be said that goals in general have energizing function. Moreover, they prolong effort, so they affect persistence. The forth mechanism is an indirect action caused by goals that lead to the discovery, arousal or to use of task-relevant strategies and knowledge. The influence of goals on performance can be stronger in some circumstances. The one of them is a situation where an employee is committed to his goal, 22 which occurs when the attainment of a goal is important for him and he believes that he is able to achieve it. Another important factor that was mentioned by authors is a feedback that helps people to adjust a level of effort needed to attain the goal (Locke & Latham, 2002). II.3. The effects of motivation on employees The authors of theories presented in previous parts of this study tried to explain what motivate people to work. The answer to this question is important because it is obviously good to understand what influence people behavior. However, it is not the only reason for a great interest in the topic of motivation. Managers might look for ways to motivate employees because they assume that motivation can lead to some positive outcomes for a company. The question that can be stated is if motivation really has influence on peoples’ performance at work. Researches show that indeed there is a relation between motivation and performance (Deci & Gagne, 2005). However, motivation and performance cannot be treated as equivalent phenomena. The distinction between them was noted by Vroom (1964). He suggested that effective accomplishment of a task is not only related to motivation but also to other factor. The picture that emerged from his studies suggested that even if people are motivated they cannot perform well if they do not posses abilities to fulfill the task. In Vroom’s point of view motivation and abilities are equally important. In his opinion more is to be gained by increasing ability from people who are highly motivated to accomplish the task than from those who are not motivated. Vroom used indication from existing data and described relationship between motivation and performance. In other words performance is not constantly increasing when level motivation is rising. Vroom (1964) cited an early study of Yerkes and Dodson (1998), which showed that that highest level of motivation does not lead to the highest performance, especially when the task is difficult. In fact, extremely high levels of motivation lead to lower performance than moderate levels. This relation is explained in two ways. First assumes that high levels of motivation narrow the cognitive field. Second suggests that highly motivated people are afraid of failure and that results in a lower performance. Other authors mentioned several factors that might limit employees’ performance such as 23 restricted practices of their superiors, limits of company policies and physical work environment – lightening, temperature, noise or availability of materials (Hall, 1994; Baron, 1994, as cited in Pinder, 1998). Limitations of peoples’ performance are an important subject. However, it seems that there are more studies that search for the answer to the question what can positively influence performance of employees. Companies often use incentives to motivate their employees. Meta-analysis on the effects of incentives on workplace performance conducted by Condly, Clark and Stolovitch (2008), shows some interesting findings. The authors found that average effect of all incentive programs in all work settings lead to 22% gain in performance. It means that incentives can significantly increase performance but, as authors claim, they have to be carefully implemented. Results of this study indicated that some settings are better than others to increase performance. For example, if we take into consideration incentive programs it comes up that they lead to better performance of employees if a mechanism of the program includes competition between employees to earn a bonus. Another important feature of incentives programs is their length. Long programs increase performance more significantly that short programs. One of the greatest differences between levels of performance in authors’ analysis was between incentives offered to teams and individuals. Team directed incentives have much stronger effect on performance than individual directed incentives. Finally, incentives have less significant impact if they are used to get people do something than to get people do the job in a smarter way or to be more persistent at job that people already started. The last important finding of the study was a relation between a type of incentives and performance. Studies indicated that monetary incentives resulted in a higher performance than non- monetary incentives (Condly, Clark, & Stolovitch, 2008). Frey and Osterloch (2002) in their book about successful management by motivation stressed an important fact that can explain relation between performance and motivation. They suggested that different people have different goals in their life. Therefore, particular motivators influence performance of individuals differently. There are employees who are motivated extrinsically. Authors divided them into two types: Income maximizers and Status seekers. Income maximizers are only interested in 24 earning money for consumption goods and they find work an unpleasant duty. Status seekers search for social comparisons. Work for them is a tool to gain “positional goods” that shows their high status. Employees can be also motivated intrinsically. There are three groups of them characterized by specific features. Loyalists identify personally with the goals of company they work for. Formalists are focused on procedures and rules existing in a company, while Autonomists pursuit for own ideology. Defining those types of employees helps to predict which kind of motivators are effective in increasing individuals’ performance. As an example, performance-related pay increases performance of Income maximizers, especially when it is paid out as money rather than fringe benefits. The condition that has to be met is that employees see clear relationship between compensation and performance. Status seekers can also be motivated by wages as long as they let them distinguish themselves from other people. In their case compensation does not have to be in a form of money. They would rather prefer other benefits that directly show their status. Performance-related pay can also reduce performance. Loyalist may understand this kind of rewarding as a signal that their work is considered by company as inadequate. Formalists also may feel that company tries to change the way they work. Finally, Autonomists would lose their intrinsic motivation because their self- fulfilling work concept is put on doubt. Not-financial rewards also need to be matched with employees’ types. For example praise would be desired by Status seekers but would be not motivating at all for Income maximizers who cannot buy anything for it. Autonomist may feel that management try to absorb them into the organization and Formalists may not appreciate praise as they “just do their job”. Another way to increase performance is implementing commands and sanctions. This way would be effective for Formalists who understand them as a guide. On the other hand, it can dramatically reduce performance of other types of employees. Income maximizers, Status seekers, Loyalist and Autonomist see commands as restrictions, what result in crowdingout their intrinsic motivation to work. Participation can be helpful tool that positively affect performance of Autonomist but it would be treated as waste of time by Income maximizers and Status Seekers as they are not interested in the work itself. Finally, autonomy understood as possibility to make own decision is crucial for Loyalist and would definitely increase their performance. For other types of employees autonomy 25 would not be an effective way of increasing their efforts. The characteristics of employees’ types presented here suggest that people have different expectations and desires at work. Some rewards can be really rewarding for them but others are rather seen as factors that negatively influence their performance (Frey & Osterloch, 2002). II.4. The Motivation Factors Employee motivation can be investigated in many different ways. The one of approaches to research on employee motivation is looking for factors that are most often chosen by employees when they are asked to decide what motivates them at work. The most common method to collect data in this kind of studies is a survey. It usually consists of a number of motivating factors that are supposed to be ranked or assessed. There is a long history of research on motivating factors. Sonawane (2008) in her paper about rewards mentioned the most important studies on this topic. As she suggests one of the first survey about motivating factors was conducted by Lindhal (1949). The result of those studies indicated “full appreciation of work done”, “feeling of being in on things” and “interesting work” as the most important motivators for employees. Another mentioned author who through questionnaires distinguished the most important factors was Herzberg (1968). He suggested that the order for crucial factors is following: Security, Interesting work, Opportunity for advancement, Appreciation, Company and management, Intrinsic aspects of the job. Another example comes from Keller’s (1965) research. In his research ranking was opened by Job satisfaction on the first position and was followed by Pride in organization, Relation with fellow workers, Relation with superiors, Treatment by management, Opportunity to use ideas, Opportunity to offer suggestions at work and Appreciation of one’s effort. Sonawane (2008) cited Jurgensen (1978) as his studies showed interesting differences between subgroups of respondents. The study was conducted on a sample of fifty-seven thousands job applicants. It showed significant difference between male and female choices regarding motivating factors. Males indicated Security, Advancement, Opportunity and Type of work while females chose Type of work, Company and Security as the most important factors. Another cited study was conducted by Sharma (1989) in 51 organizations in India. Author found that Safety, Security and Monetary benefits were recognized as the 26 most important by Indian workers. As was suggested in a previous chapter of this paper leadership style plays important role in motivating employees. This suggestion is confirmed by results of the survey that asked people to rank factors taken into consideration when they decide whether take the job or not. Respondents’ choices included Open communication, Effects on personal/family life, Nature of work, Management quality (Nelson, 2001, as cited in Sonawane, 2008). Job design factors such as Advancement opportunities, Flexible work schedules and Opportunities to learn new skills were chosen in a survey by Watson Wyatt in 2006 (as cited in Sonawane, 2008). Kinnear and Sutherland (2000) focused on knowledge workers and factors that motivated that occupational group. They found that Financial reward and recognition was the motivator ranked at first place. Knowledge workers were also strongly motivated by Freedom to act independently, Developmental opportunities and Access to new technologies. A comparison of this study with other studies leads to the conclusion that specific occupational groups may be motivated by other factors than other groups. The difference between groups of respondents was also noticed by Kovach (1980, 1987, 1995). His studies seem to cover many important areas from previous research on motivational factors mentioned in this short overview. Moreover, he was followed by other researchers who replicated or modified his researches to find out more about the topic. All these features make Kovach’s work interesting and therefore will be a subject of more detailed analysis. Kovach has been doing research and practically work on employees’ motivation for over 20 years. He conducted survey in 25 organizations and had responses from 1000 participants. Respondents were asked to rank factors on the list that contained: 1. Interesting work, 2. Full appreciation of work done, 3. Feeling of being in on things, 4.Job security, 5. Good wages, 6.Promotion and growth in the organization, 7.Good working conditions, 8. Personal loyalty to employees, 9. Tactful discipline, 10.Sympatetic help with personal problems. Presented order of factors is the actual order that came out from Kovach’s (1980,1995) results. The three most important factors in respondents’ opinion were Interesting job, Full appreciation of work done and Feeling of being on things. Kovach compared those findings with findings from similar surveys from 1946 and 1980. The comparison showed the difference between answers from 1946 27 and both later surveys. Workers in the middle of the century on the first position placed full appreciation of work done. Interesting work was placed on the sixth position and sympathetic help with personal problems was on the third position - much higher than in later studies. Those differences could be caused by economic growth and changes in standard of living. The difference between employees’ choices in the different points of time is interesting but it was not the main finding of Kovach’s studies. The crucial part of Kovach’s research was comparison of responses given by employees and supervisors who were asked to rank factors that motivate their subordinates. It became clear that supervisors have very inaccurate perceptions about their employees needs. The most important factors for employees according to managers were: 1.Good wages, 2.Job security, 3.Promotion and growth in the organization. Supervisors’ answers were the same in different points of time. Kovach (1987, 1995) suggests possible reasons for such significant differences. Employees might give more socially desired answers, but on the other hand they may be simply better witnesses of own motivation that their supervisors. Supervisors may choose factors that they are not directly responsible for, such as wages. Finally, managers might be motivated by other factors than employees. Possibly, by taking themselves as a reference point they rank factors in a different way than people on lower positions. Another step that Kovach (1995) took was comparing subgroups. He indicated that there was no statistically significant difference between males and females. However, it could be noticed in the ranking that women chose Full appreciation of work done on the first position while man chose Interesting work. The comparison between different age groups showed that employees who were under 30’s were characterized by similar answers as supervisors. Differences were also observed between groups with lowest income and lowest position in the organization and groups with high income and position. Kovach’s studies were replicated by other authors. Linder’s research (1998) indicated Interesting work and Good wages as the most important motivators for university workers. Results from a survey conducted by Harpaz (1990) on a representative sample of employees in seven countries showed the same two factors as the most important motivators. Fischer and Yuan’s research (1998) also compared employees from various countries. They indicated that Chinese employees ranked Good wages, Good working conditions and Personal loyalty of boss as the most important 28 factors. Their findings showed that Chinese managers, oppositely to US managers, were able to provide appropriate answers to the question what motivate their employees. To summarize, there are several factors such as Good wages, Interesting work, Job security and Promotion and growth that were ranked highly in a majority of studies. However, presented results suggest that employees’ choices may differ according to respondents’ culture, occupation, gender, position in the organization and salary. This means that organizations which want to focus on motivating particular group of employees need to be aware of the fact that some factors that motivated one group could not work well with other group. II.4.1. The Monetary Factors Basically, employees work because of money and they desire to receive fair wages and salaries for their contributions. Whereas employers want their workers to feel that is what they are getting and at the same time wish to maximize firm value. Hence, it is rational that employees and employers perceive money as the basic incentive for satisfactory job performance. These factors will focus on individual monetary incentive systems for two reasons. First, they are currently one of the two most prevalent types of variable pay systems in business and industry. Second, they provide the tightest link between performance and pay; a factor that compensation specialists have historically cited as the most important one when the goal of the pay plan is to increase employee productivity (Conrad, 1994; Kopelman, 1983; Lawler, 1990; McAdams & Hawk, 1992; McNally,1988; Opsahl & Dunnette, 1966; Taylor, 1911). The tight link between performance and pay or, in Lawler’s (1990, 1992) terms the clear “line of sight,” results from four characteristics of individual incentive systems: First, incentives are based only on the employee’s own performance; second, incentives are based on clearly specified behaviors or outputs; third, incentives are certain (that is, if the targeted performance occurs, the employee will receive the extra compensation); and fourth, incentives are paid as soon after the performance as possible as part of the employee’s paycheck. Not only have compensation specialists identified these char- acteristics as important, but these same characteristics have been identi- fied by behavior analysts as features of effective 29 employee rewards and consequences (Braksick, 2000; Brown, 1982; Daniels, 1989; O’Brien & Dickinson, 1982). Campling, Poole, Wiesner and Schermerhorn (2006) suggest that the use of monetary incentives in the classic ‘work performance paradigm’ is based mainly on the ‘Reinforcement Theory.’ Under this theory, managers must concentrate on the relationship between target behavior (job performance) and its consequences (pay), as well as emphasized on the principles and techniques of organizational behavior modification. Campling et al. (2006, p.398) define organizational behavior modification as ‘the application of operant conditioning to influence human behavior at work.’ Employee productivity, however, is only one reason that organizations adopt variable pay plans. Different pay plans yield different results, and organizations adopt them for different reasons (Lawler, 1990, 1992; Ledford & Hawk, 2000; McAdams & Hawk, 1992; O’Dell & McAdams,1987). For example, O’Dell and McAdams (1987), based on a large-scale survey, stated that profit sharing increases employee commitment and reduces turnover but does not affect productivity, quality, or cost reduction as much as other plans, whereas individual incentives increase productivity and information sharing but do not alter employee involvement or employment security. The effectiveness of individual monetary incentive systems can be attributed to the fact that when employees are offered individual incentives, with or without guaranteed base pay, the amount they earn in incentive pay is dependent upon the number of units of work they complete. According to Ballentine, McKenzie, Wysocki and Kepner (2003), monetary incentives include salary increases, profit sharing plans, stock options, warrants, individual and small-group rewards, merit pay, project bonuses, and additional paid vacation time. The purpose of such incentives is to reward employees for outstanding job performance through money. Monetary Factors Including: - Salaries or wages: Salaries or wages is one of the most important motivational factors. Reasonable salaries must be paid on time. 30 - Bonus: It refers to extra payment to employee over and above salary given as an incentive. The employees must be given adequate rate of bonus. - Incentives: The organization may also provide additional incentives such as medical allowance, educational allowance, etc. - Special individual incentives: The company may provide special individual incentives. Such incentives are to be given to deserving employees for giving valuable suggestions. II.4.2. The Non-Monetary Factors Non-monetary incentives are the tangible rewards, social practices or job related factors that are used in an organization to motivate employees without direct payment of cash. Social non-monetary incentives are related with superior-subordinate relationships and the social activities within the organization. Superiors being sincere and caring in communicating with the subordinates and valuing their opinions, the degree of informal or formal recognition for a good job, various social activities in which employees of the same organization get together in an informal way for celebrating something or just to release the stress of the work etc. all contribute to the creation of a working atmosphere that employees feel themselves valuable as part of an entity. This in turn has the potential to motivate employees without offering monetary incentives. Job related non-monetary incentives have the potential to motivate employees intrinsically. Jobs with variety of tasks, responsibilities, autonomy, flexible working hours, participation in decision making, development opportunities etc. are very important in satisfying employees certain needs and they may lead to a feeling that the job itself is worth exerting more effort without need to any external incentive. The importance of non-monetary incentives in motivating the employees is supported by various studies and mentioned in writings of many authors. Janet Wiscombe 31 (2002) argued that what people really want is to be recognized for making contribution to the job, thus, recognition and praise are among strong motivators. In her opinion, noncash incentives can not only be cost effective, but also can contribute a lot to raising morale, increasing productivity, improving quality, safety standard and customer service. Non-monetary incentive is the answer that Wiscombe gives to the question of how to maintain and improve worker morale while retaining the costs. Bob Nelson (2001) also supports the view that there is a strong link between non-cash incentives and improved job motivation. He thinks that non- cash incentives lower stress, absenteeism, and turnover and raise morale, productivity, competitiveness, revenue and profit. According to his study, which was conducted from 1999 to 2000, in 34 organizations of U.S. ranging from Universal Studios to the U.S. Postal Service, 90.5% of the managers agreed on the idea that recognizing employees helps them better motivate their employees and 84.4% of the managers responded that providing nonmonetary recognition to the employees when they do good work helps to increase their motivation and performance. On the employees’ side, the research revealed the fact that for the 77.6% of the employees, it was very or extremely important to be recognized by their managers when they do good work. These findings have further confirmed the importance and effectiveness of non-monetary incentives in the motivation of personnel. In addition to these, Nelson pointed out that cash incentives might have some definite drawbacks. The money employees paid for the job is compensation. He argues that in time, monetary incentives as well are begun to be regarded as rights rather than incentives and the increasing demand for material rewards rapidly is destroying their usefulness as incentives and managerial tools. Another drawback is considered to be related with the decrease in teamwork as employees concentrated primarily on individual cash gains. According to Sarah Gale (2002), non-monetary incentives evaluated as more valuable incentives than monetary incentives. In her article, she emphasizes that when you pay people for doing a good job, it becomes part of their salary expectations; a nonmonetary incentive, however -whether it's a trip or a coffee mug- is a luxury separate from compensation that shows respect and commends accomplishment. In comparing the cash incentives with non-monetary incentives, Dean R. Spitzer 32 (1998) notes that the correlation between the monetary value of rewards and motivation is not very high and in most jobs the best performers are not necessarily the highest-paid ones. He emphasizes that money, as an incentive tends to create “money motivation” rather than “good-work motivation” in the sense that when people struggle for monetary incentives, they may sacrifice quality to take the shortest and fastest way to maximize their monetary gain. Moreover, it is likely that the employees will soon become “habituated” to monetary rewards and start to see them as entitlements. According to Bob Urichuck (2003) recognition and praise reinforces the employees’ beliefs about themselves and helps make them think they are better than they thought they were. That is, it helps to build self-esteem. Employees with enhanced selfesteem can develop feelings of self-confidence, strength, making difference to the organization and being a valued member. Seeking and using employees’ ideas is another type of social non-monetary incentive for the employees. In organizations, there should be mechanisms such as suggestion boxes or weekly meetings that encourage employees to express their ideas and suggestions and focus on the problems of the organization. Also, discussion meetings with the employees may be helpful. With these kinds of incentives, employees know what is going on and how they fit into the overall picture. It makes them feel important and they gain the opportunity to reach their supervisors to voice their concerns or ideas. In turn, it helps them to associate their interests with the organizational objectives. Organizations can benefit from the ideas and solutions offered by the employees. Employees can have progressive ideas for the efficiency of the work they perform. According to one study conducted by the Brooks consulting firm, of 12 companies in six different fields of work in United States, 64% of the workers believed they could contribute to reduce the costs of production if they were asked (Nelson, 2001). Consequently, if organizations seek their ideas, employees could come up with various useful ideas and in turn they would recognize their value to the organization by seeing how his/her efforts contribute to the overall success. More importantly, as it is mentioned in Equity Theory, failing to differentiate a job well-done from an average performance leads to a tension that can motivate individuals to bring equity into balance through altering effort, altering outcomes, 33 changing how people think about inputs or outcomes and leaving the job. A public employee may think that he/she is performing well above the expectations but being treated the same as other employees who are just satisfying the expectations. Then, he or she may stop working hard to make things fair in his/her mind. Thus, recognition helps to bring equity to public organization work settings. As an example of recognition from private sector, Fine Host Corporation, a US food service company in Greenwich, Connecticut, regularly gives quality awards and posts workers’ names in company buildings to recognize their good work. Also, employees receive framed certificates when they complete training courses. As it is emphasized in theories of motivation, job characteristics model by Hackman and Oldham (1980) supports the motivating potential of job enlargement and job enrichment. They argued that jobs with high score in terms of a combination of five job characteristics (task variety, task identity, task significance, autonomy and feedback) lead to higher job satisfaction and motivation. Job enlargement focuses on the variety, task identity and task significance dimensions by widening the range of activities maintained by the employee. Job enrichment promotes autonomy and feedback by giving the employee a sense of personal responsibility for his output and allowing him to evaluate his own performance. To sum up, if job-related non-monetary incentives can be utilized in public sector organizations in adequate levels, it may be expected that they can satisfy many higher level needs of the employees such as esteem and growth. Even if monetary incentives may satisfy many needs of employees, employees would still have some psychological needs such as a meaningful work in which various skills can be used, autonomy over work, development opportunities, prestige. Non-Monetary Factors Including: - Status or job title: By providing a higher status or designations the employee must be motivated. Employees prefer and proud of higher designations. 34 - Appreciation and recognition: Employees must be appreciated for their services. The praise should not come from immediate superior but also from higher authorities. - Delegation of authority: Delegation of authority motivates a subordinate to perform the tasks with dedication and commitment. When authority is delegated, the subordinate knows that his superior has placed faith and trust in him. - Working conditions: Provision for better working conditions such as air-conditioned rooms, proper plant layout, proper sanitation, equipment, machines etc, motivates the employees. - Job security: Guarantee of job security or lack of fear dismissal, etc can also be a good way to motivate the employees. Employees who are kept temporarily for a long time may be frustrated and may leave the organization. - Job enrichment: Job enrichment involves more challenging tasks and responsibilities. For instance an executive who is involved in preparing and presenting reports of performance, may also asked to frame plans. - Workers participation: Inviting the employee to be a member of quality circle, or a committee, or some other form of employee participation can also motivate the work force. - Cordial relations: Good and healthy relations must exist throughout the organization. This would definitely motivate the employees. 35 - Good superiors: Subordinates want their superiors to be intelligent, experienced, matured, and having a good personality. In fact, the superior needs to have superior knowledge and skills than that of his subordinates. The very presence of superiors can motivate the subordinates. II.5. Research Model - Salary - Bonus - Allowances - Special individual incentives - Status of job title - Appreciation and recognition - Delegation of authority - Working conditions - Good superior - Job security - Job enrichment - Worker participation - Cordial relations - Good superiors Monetary Factors EMPLOYEE MOTIVATION Nonmonetary Factors Figure 5: The Research Model of Motivation Employees at Atlas Coco Vietnam 36 CHAPTER III: RESEARCH METHODOLOY III.1. Research Approach To reach the purpose of this study, the qualitative approach have been chosen, which according to Denscombe (2000) is used as a mark for the kind of study performed by researcher. Qualitative research is based on transforming observations to written words instead of numbers and is better used for description, because of the focus on detailed explanations of people or events. This research is connected to small-scale studies since it is easier to gain a deeper understanding of the researched area with few units. Qualitative research is also associated with having a holistic perspective, interference from the researcher and an open research design. When conducting a qualitative content analysis the major emphasis is to capture the meaning, emphasis and themes of the message (Marsh & White, 2000). A contact with the case in question is established, the role of the researcher is to gain an overall view over the case. Qualitative data is a form of words that are based on observation, interviews or documents and occur in a local setting for a period of time. The accessibility of this data needs to be proceeded before any conclusion can be drawn. The focus on this kind of research approach is on events that occur naturally such as ordinary events in natural settings to gain a picture of how “real” life is. Only one case is investigated, but since it is done over a period of time a deeper understanding of the context may be gained. (Miles & Huberman, 1994) A key instrument in qualitative research is the personality trait of the researcher (Gummesson, 2000) III.2. Research strategy According to Denscombe (2000) in order to achieve good research the researcher has to consider different alternative and also take strategic decisions regarding the choices he or she is about to do. Every choice includes assumptions of what is going to be conducted and also results in both pros and cons. Since certain strategies are better suited for specific problems good research is a question of having the right object at the right 37 place and where strategies are chosen based on their suitability for specific research aspects. These strategy decisions are often taken before the research initiates. According to Yin (2003b) case study research is used when the topic is to be explained broadly and not narrowly, to research multiply variables and not isolate one and when the researcher has evidence that comes from multiple sources. Explanation case study builds the ground for more precise questions or testable hypotheses (Gummesson, 2000). Exploratory case study are looked at with different views, before deciding research questions and hypotheses, fieldwork and data collection is undertaken and the aim is to discover theory by observing “real” life examples. Explanatory case studies on the other hand are better used when designing and doing casual case studies since the more complex this process is better for this kind of theory. Descriptive case studies have been overlooked, but the idea is that theory builds the base for data collection and that the case has to be limited to not look at all variables in the theory. (Yin, 2003b) (Denscombe, 2000) states that a case study is appropriate when using small-scale studies, since it is only focused on one or few research units and therefore results in deep and detailed information. A case study is also characterized by emphasizing the importance of the special rather than the general, relations or processes rather then results, a holistic viewpoint rather than individual factors, natural rather than artificial environments and finally it uses multiple sources rather than one research method. One pro with a case study as a research strategy is that it makes it possible to use different methods depending on the circumstances surrounding the situation. The most critical con is that the researcher has to show the similarity with other cases to avoid the accusations regarding the reliability in the results. III.3. Process of Procedure I began with a description of the project and informed the subjects that I was looking for as many realistic examples as I could of instances where employees were not motivated by the company, that reasons lead into their negative behaviors. At the beginning of the interviews, I told that this study use details that participants provide for me to do making clear my theory about motivation. 38 Each participant spent about from a half hour to one hour for an interview. All of them were recorded fully. I tried to reduce the likelihood in their respondents that could be biased by my questions of interview. That the reason why I was in control of the questions and checked my interview guide for biased questions, then rephrase them or remove them. As in a biased question influence respondents’ answers. “Leading Questions Bias: -Leading questions suggest what answers should be. - Putting words in respondents’ mouths slants their answers.” (Instant Focus Group Questions, by Hendrik Hoets). Moreover, frame the question neutrally was used to encourage participants can describe or explain what they thought, what they felt and what they did at Atlas Copco Vietnam. The questions for the interviews could be quite similar, but regarding each participant, there would be more differences in question and answers, because these employees came from different divisions, statuses and departments. The best way conducted for the interviews is using a semi-structured way. It was conducted at some suitable places, where had convenience for participants to spread maximum their thinking and opinions. For examples: at home of participants, at coffee shop. In the interview, I always posted the question as a request: “Could you please tell me about the time you work at Atlas Copco Vietnam? Your position? And how do you feel about your job and company?” (The Guidelines for Interviews. Attached File). Furthermore, I used multiple prompts to gather data, including information about organizational influences, policies and the factor of motivation. I also asked them about training, supervisor comments, and colleague discussion, etc at the company. The interview was stopped when I see that the repeat many times about a word or a phrase in answers of respondents and the research was stopped when it reached the point of saturation. III.4. Data Collection The key to qualitative research and, in particular, grounded theory is to generate enough data so that the illuminate patterns, concepts, categories, properties, and dimensions of the given phenomena can emerge (Glaser & Strauss, 1967; Strauss & 39 Corbin, 1998). Therefore, it is essential to obtain an appropriate sample size that will generate sufficient data (Auerbach & Silverstein, 2003). Unlike the data collection through the questions and answers in quantitative research is “On-face data”. The data have to been collected in qualitative research is “insight data” of research subjects. These data can not be collected through the usual interview techniques but through the discussed techniques. III.4.1. Sample Size The qualitative research project was conducted with a person or a small group of research subject. So, sample is not selected by probability method, which is selected according to the purpose of building theory (purposeful sampling), is called theoretical sampling (Coyne 1997, Strauss & Corbin 1998). This method is best used when the research focuses on theory and concept development and the research team's goal is to develop theory and concepts that are connect to, grounded in or emergent from real life events and circumstances. The sample size of this study is 18 employees from several departments in Atlas Copco Vietnam Company. Including 10 persons had leaved off work and 8 have been working at there, at least they must have one year of working experience. Participants were selected through snowballing, which is a non-probability sampling technique that is used by researchers to identify potential subjects in studies where subjects are hard to locate. The process of snowball sampling is much like asking your subjects to nominate another person with the same trait as your next subject. The researcher then observes the nominated subjects and continues in the same way until the obtaining sufficient number of subjects. The quality of data can affect the sample size hence theoretical sampling is recommended when using grounded theory. The theoretical sampling procedure dictates that the researcher chooses participants who have experienced or are experiencing the phenomenon under study. By doing so the researcher has chosen ‘experts’ in the phenomenon and thus able to provide the best data (Corbin & Strauss, 1998; Glaser & Strauss, 1967). However, the process of selecting participants is also an evolving process 40 based on the arising patterns, categories and dimensions emerging from the data. Researchers seek out participants that might be able to provide deeper understanding of the emerging patterns, categories and dimensions. Thus, if the participants are predetermined the researcher might find that an increase in samples size is required in order to follow emerging themes. “Theoretical sampling is cumulative” (Strauss & Corbin, 1998, p. 203). Each interview provides the researcher a selection of data on which he or she can build. Iterative analysis of the collected interviews carried out through the data collection process allows the researcher to visualize the emerging patterns, categories and dimensions (Kwortnik, 2003; Strauss & Corbin, 1998). Iterative analysis is a process in which the researcher moves back and forth through the data in order to find, compare, and verify the patterns, concepts, categories, properties and dimensions of the phenomena (Kwortnik, 2003). Having gained an insight of what the emerging patterns, categories and dimensions are the ensuing interviews can be focused on filling out those patterns, categories and dimensions to the point of saturation. Therefore, sampling is also aimed at the same end result of iterative analysis and might necessitate interviewing participants who are more versed in the phenomena thus providing higher quality data (Glaser & Strauss, 1967; Strauss & Corbin, 1998). The flexibility of theoretical sampling allows the researcher to follow directions indicated by the data; hence, a reduction in sample size is possible by choosing appropriate participants (Glaser & Strauss, 1967; Strauss & Corbin, 1998). III.4.2. The Tools Of Data Collection To collect quantitative data, we will use discussion guideline instead of details of questionnaires. Regarding qualitative research, the data collection tools don’t have closely structure and often use open-ended questions aimed at guiding discussion. In the course of discussion, the researchers begin with general questions, then gradually narrow and deep to explore issues. From that, data will be collected through techniques as follows: 41 * Observations: One of the most common methods for qualitative data collection, participant observation is also one of the most demanding. It requires that the researcher become a participant in the culture or context being observed. The literature on participant observation discusses how to enter the context, the role of the researcher as a participant, the collection and storage of field notes, and the analysis of field data. Participant observation often requires months or years of intensive work because the researcher needs to become accepted as a natural part of the culture in order to assure that the observations are of the natural phenomenon. Direct observation is distinguished from participant observation in a number of ways. First, a direct observer doesn't typically try to become a participant in the context. However, the direct observer does strive to be as unobtrusive as possible so as not to bias the observations. Second, direct observation suggests a more detached perspective. The researcher is watching rather than taking part. Consequently, technology can be a useful part of direct observation. Third, direct observation tends to be more focused than participant observation. The researcher is observing certain sampled situations or people rather than trying to become immersed in the entire context. Finally, direct observation tends not to take as long as participant observation. * In-depth Interviews: In-depth, qualitative interviews are excellent tools to use in planning and evaluating extension programs because they use an open-ended, discovery-oriented method, which allows the interviewer to deeply explore the respondent’s feelings and perspectives on a subject. This results in rich background information that can shape further questions relevant to the topic. The key characteristics of in-depth interviews are the following: - Open-ended Questions: Questions need to be worded so that respondents expound on the topic, not just answer “yes” or “no.” Many open-ended questions begin with “why” or “how,” which gives respondents freedom to answer the questions using their own words. 42 - Semi-structured Format. Although it is important to pre-plan the key questions, the interview should also be conversational, with questions flowing from previous responses when possible. For example, if an interviewee remarks that “There are many people leaving their job at here ,” an appropriate response would be, “How do you feel about this phenomenon?” - Seek Understanding and Interpretation. It is important to use active listening skills to reflect upon what the speaker is saying. The interviewer should try to interpret what is being said and should seek clarity and understanding throughout the interview. - Recording Responses. The responses are typically audio-recorded and complemented with written notes (example: field notes) by the interviewer. Written notes include observations of both verbal and non-verbal behaviors as they occur, and immediate personal reflections about the interview. III.5. Data Analysis The core of qualitative analysis lies on three related processes: describing phenomena, classifying it and seeing how the concepts interconnect. Dey (1993) draws these as a circular process to show that they interconnect each other. But because qualitative analysis is iterative process, he also represents them by iterative spiral. The first step in qualitative analysis is to develop thorough and comprehensive description of the phenomenon under study. Geerz (1973) and Denzin (1978) call this as ‘thick’ description. If ‘thin’ description merely states ‘facts’, a ‘thick’ description includes information about the context of an act, the intentions and meanings that organize action, and its subsequent evolution (Denzin, 1978). Thus description encompasses the contexts of action, the intentions of actor, and the process in which action is embedded. Classification is the second process in qualitative data analysis. Without classifying the data, no way of knowing what we are analyzing. Moreover, without it, meaningful comparisons between different bits of data is impossible. So, classifying the data is an integral part of the analysis. Moreover, the conceptual foundations upon which interpretation and explanation are based lay on it. 43 Alvin Toffler (Coveney and Highfield, 1991) said that, we are so good at dissecting data that we often forget how to put the pieces back together again. This problem will not arise if description and classification are not ends in themselves but must serve an overriding purpose, which is to produce an account for analysis. For that purpose, making connections among building block of concepts of the analysis is an indispensable job. * Phenomenon Description The first job of qualitative analysis is to describe the phenomenon being studied. Description used to interpret and communicate what has been studied. Data always contain the factors of research. Hence, the process of data describing helps us explore the factors of the study. From that, we have a basis in the process of developing concepts and theories. Necessary condition for a high-quality research is researchers, who direct collect and analyze data. The reason is the meaning of qualitative data depends on the specific context (context dependent) and is not always expressed in words. They are series of gestures, facial expressions, rhythm of the words from the studied subjects, and so on. In the course of discussion, the researcher must follow in order to understand an’{d describe the meaning about the statement of the research object. For this reason, in many cases, we need support tools such as a recorder to be able to .track back in the process of data analysis. Collected data contain studied factors. In the process describes the phenomenon we will get the factors contained in the data. Strauss & Corbin (1998) referred that the process of phenomenon description is the process of open analyzing (open coding). This process includes the development of concepts, attributes (properties) as well as the level (dimension) of them. To do this, researchers often consider to the following issues in the process of data analysis: - What do the data tell us? - What (problem) happened? Who is involved? - What do they see or define the problem like? - What meaning to them? 44 - What do involved people do? - The problems occur the same or different for them? - Their results: the same or different? * Phenomenon Classification After describing the phenomenon, researchers shall classify phenomena. Sorting data into groups of concepts based on the properties and limits of them. Sort and classify the phenomenon into each group have the same general characteristics to form the concept and its components and to compare them with each other. So, if the data is not sorted in a systematic way, we will not know what we're analyzing and it is difficult to discover the concepts, which are contained in the data. Strauss & Corbin (1998) referred the process of phenomenon classification is the process of focus analyzing(axial coding), including the development of the studied concept and the child concept of them. Followed by connecting key concepts with the child concepts together. * Concept Connection After the description and classification of data, we need to link research concepts together. We recall a theory is a set of concepts related to each other to form a system to explain and predict studied phenomena. Therefore, the data connection process is the process of connecting concepts into a logical system to explain and predict phenomena studied. Strauss & Corbin (1998) referred to this process is the process of selective analysis (selective coding), including the synthesis (integrating) and selection (Refining) the concept to form a theory. In the course of this analysis, researchers need to pay attention to the relationship between phenomena (concepts) together and variability of them. III.6. Validity and Reliability In the study, the trust (trustworthiness) plays an important role to evaluate the theory building. Theory is built believed to explain and predict studied phenomena. 45 Traditionally, basing on objective perception or realization, specially is in experimentation, when evaluate the research, researchers often rely on internal validity (accuracy of the study), external validity (general results for real market), reliability (consistency results when repeated many times), and objectivity (independent with researcher). In qualitative research, basing on a subjective perception or interpretation, the researchers based on the criteria of reliability, including credibility, transferability, dependability and confirmability to assess the value and reliability of theoretical research. There are three criteria for this qualitative research are: communicability, coherence, and transparency. I carefully try to attain the criteria with reliable tools in the interviews in order to get the most accurate research results. Regarding to evaluation criteria in qualitative, the concepts of this research are clear and sense. Research concepts linked together to form research story. Especially, other researchers can capture steps to lead to theory building. To ensure reliability in qualitative research, I directly involved in the research environment to collect multiform data and had internal and external testing with peer debriefing and member checks concurrently. I always describe in detail the concepts, elements of research problems and check the process of collecting, managing and analyzing data frequently. The research have been very meticulous in the process of observation and details in the process of interview helped this research has been more reliable. After conducting the interview, I have made a summary of the answers of respondents. Beside that, interviewees have confirmed the empirical data. An advantage of me is I were also a employee at Atlas Copco Vietnam Company, so I can be a participant to join the interviews easily, who have more relationship so have more information create validity for this thesis. III.7. Research Process The goal of this research is to identify factors motivate employees. The chosen research approach has a form of theoretical analysis with a subsequent empirical illustration, which has been carried out on the basis of a survey conducted among employees in Atlas Copco Vietnam Company. The method of investigation that has been 46 chosen is a deductive approach. The investigation starts from the most important is general motivation theories and then they are narrowed down to the specific subject factors that motivate employees. Applying a qualitative research came from the fact that the list of motivating factors could be developed from theories. There were many ways of research on that topic, but the qualitative approach would be more appropriate way to gather data. As initial understanding of an issue has been already developed, the qualitative interviewing is chosen. The numerical character of data provides opportunities to point the most important of motivating factors. As well as, it allows generalizing results and characterizing a particular group of people. Moreover, it provides possibility to compare results with previous findings and to see if there is a consensus on that particular issue. The in-depth personals interviews are conducted with total of 17 persons in many divisions such as General Manager, Business Controller, Human Resource, Supervisor, Administrator, some former employees and new employees at Atlas Copco Vietnam. The interviews were placed at workplace, at coffee shop and at home of the interviewees. Interviewees of this studying were divided into two groups: leader group and employee group with the questionnaire of each group (Appendix A and appendix B). However, employee group was more focused for finding reasons of existed problems at Atlas Copco Vietnam. During the interview, observation is good tool so that I can have the insight and meaning in words, phrases of answers from interviewees. Furthermore, checking process of the data collection, management and analysis has been realized to estimate reliability of data frequently. I have made a summary of the answers from the interviewees. The empirical data have been confirmed and recorded. Then, the coding of data leaded to results of findings, and keywords were found to use for solving research questions. After having the research finding, I compare results with literature review, research model. I realized that not all of motivation factors impact to employees of Atlas Copco. They just focus to some of them. From that I had have new model of motivation employee (Figure 7 at Chapter IV). Finally, new model was checked to examine how it is accordance with the research process. 47 With below model of research process will help us have overview about the way to accomplish this research. It shows each step, processes and the results that it can be had. (Figure 6) Figure 6: Research process model 48 CHAPTER IV: DATA ANALYSIS AND FINDING IV.1. The Findings With the permission of participants, interviews were recorded and transcribed. Transcription was manually coded and analyzed to identify the various factors of employee motivation at Atlas Copco Vietnam. Beside that, I took note evidences, which they did or did not conform to the theoretical model. In the process of data coding, I identified that data which are nearly fit with original research model, but they just focus about some specially factors as salary, bonus, appreciation and recognition, delegation of authority, cordial relations, good superior and job security that have actually impacted to employee of Atlas Copco Vietnam. Therefore, we have new research model of motivation employee at Atlas Copco Vietnam as follow. - Salary - Bonus Monetary Factors EMPLOYEE MOTIVATION - Appreciation and recognition - Delegation of authority - Cordial relations - Good superior - Job security Nonmonetary Factors Figure 7: A New Model of Motivation Employees at Atlas Copco Vietnam After accomplishing all of the interviews. I listened and read the recording and transcribing back to decode the text into various categories. Finally, examining the coded data that might shed light on the research questions (RQ). 49 - RQ1: Which factors impact to motivation? - RQ2: What do factors affect to motivation like? - RQ3: How to have effective motivation at company? The findings reveal that Atlas Copco Vietnam Company thought and tried in different ways to motivate employee. Managers have known very clearly about phenomena and they have been finding good ways to correct, but phenomena of employee replacement and lack of responsibility still continued and become worse. Actually, at Atlas Copco Vietnam Company, employees have felt that their job is very stimulated with good working environment and they have always like breaking time for tea and cake, however they are not enough to keep them by the most basic reason is salary. Furthermore, the reason they stop working here as they feel that they have less of other motivation factors for individually. Although managers recognized that there are existences of other need factors, they have still not given attention to these factors as the dominating factors. This is reason lead to troubles about human for company. Below are mentions from the leaders. They have revealed that leaders did not really want to find out the main causes of phenomena. “Manager is also a man, that man is still not perfect and many shortcoming.” (Comment from Mr. Noel Alvila, General Manager at Atlas Copco Vietnam). “I also like you, being employee of Atlas Copco. All of us in the same company are the same. The level of salaries is paid by qualitative and quantitative of work. I get paid for my position with the requires higher level of work and more responsibility." (Comment from Mr. Noel Alvila, General Manager at Atlas Copco Vietnam). “As you know the difficult economic situation has been impacting not only for our business matter. Beside that, we have pressure from reporting about revenues and profits. I think this time is opportunity for measurement about the loyal and commitment.” (Comment from Mrs. Thuy, Business Controller at Atlas Copco Vietnam). “Can not meet all the needs, wants and demands of everyone. The departure is their desires. The company can not do anything more.” (Comment from Ms. Lan. HR at Atlas Copco Vietnam). 50 “That's principal of company, we have to follow it.” (Comment from Ms. Lan. HR at Atlas Copco Vietnam). The problems of this study has been become clearly as we go into the finding of each research question as follow: IV.2. RQ1: Which factors impact to motivation? * Monetary Factors: The most of participants who claimed to have “somewhat motivated” was higher than level at the present, as they saw that "Percentages of low-income employees normally are unmotivated or very unmotivated”. Basically, employees work because of money and they desire to receive fair wages and salaries for their contributions. Whereas employers want their workers to feel that is what they are getting and at the same time wish to maximize firm value. Hence, it is rational that employees and employers perceive money as the basic incentive for satisfactory job performance. “You are urban person. You don’t know about people come from another province. I have to pay money for hiring the house, for electric, for water and for living, etc. So, I became more worries when prices of everything are raised day after day, while the level of income is still not changed” (Comment from Ms. Thanh. A former accountant at Finance Department). From the in-dept interviews, respondents indicated that salary and bonus are important points to motivate employees. - Salary “With my time of working, position, experience and responsibility at company, my salary is just increased about from 2% to 10% per year. It’s 1 time for 1 year. How do you feel about that?” (Comment from Mrs. Diep. A Senior Administrator at Service Department). “More over 1 year already, my salary has not changed without any reasons.” (Comment from Mrs. Tien. A Support Sale at Sale Service Department). “The first thing I desire when I go to the office is salary. It is enough for my life, now and future.” (Comment from Ms. Thanh. A former accountant at Finance Department) 51 “I have compared my salary with some friends at some other companies in this industrial field. Their level of salary is higher than me. And one thing specially, they have the salary statement very clearly.” (Comment from Mr. Chuong. An Engineer at After Sale Service Department). “I'm looking forward the 13th month salary to prepare for "Tet", then I get the notice that this year there is no 13th month salary because of the difficult economic situation. Spirit of working is fallen immediately. You know that, only me feel this.” (Comment from Mrs. Vinh. The former and senior employee at Service Department). - Bonus “Excepting salary, I do not have any other bonus, or funds.” (Comment from Ms. Tien. A Senior Administrator at Service Department). “Further more work but no further money” (Comment from Mrs. Vinh. The former and senior employee at Service Department) Monetary incentives are extremely attractive to employees, particularly those working at lower levels as they get the benefit quickly and in concrete terms. Workers prefer monetary incentives as compared to non-monetary incentives. * Non-monetary Factors: If job-related non-monetary incentives can be utilized in public sector organizations in adequate levels, it may be expected that they can satisfy many higher level needs of the employees such as esteem and growth. Even if monetary incentives may satisfy many needs of employees, employees would still have some psychological needs such as a meaningful work in which various skills can be used, autonomy over work, development opportunities, prestige. - Appreciation and recognition In Literature Review at Chapter II, Janet Wiscombe (2002) argued that what people really want is to be recognized for making contribution to the job, thus, recognition and praise are among strong motivators. In her opinion, non-cash incentives can not only be cost effective, but also can contribute a lot to raising 52 morale, increasing productivity, improving quality, safety standard and customer service. Non-monetary incentive is the answer that Wiscombe gives to the question of how to maintain and improve worker morale while retaining the costs. Appreciation and recognition is basic demand. As humans we need it. We crave it. Almost participants in interviews answered like this. Research shows that 79 percent of people who quit their jobs cite lack of appreciation as the main reason, and recent focus groups on appreciation found employees become disappointed their company when they don’t feel appreciated. “I attempt to work not only for the money. I like to assert myself and desire to show my skills and abilities in working.” (Comment from Mr. Phat. An Admin at Official Department.) “I finished up the good my work. Besides, I also help my boss completed many projects, however I were not considered to raise pay or no reward at all, even no any praise. That is just my obligation” (Comment from Mr. Truc. An Engineer at After Sale Service Department) “I have worked very hard for Atlas Copco Vietnam over 10 years but they removed my name out the list of senior persons in celebration for employees having 10 years of experience, then they just sorry me with reason of forgetting.” (Comment from Mrs. Diep. A Former Senior Administrator at After Sale Service Department). Hence, Employees must be appreciated for their effort. This factor is very necessary. The praise should not come from immediate superior but also from higher authorities. - Delegation of authority Due to delegation of authority, a subordinate employee feels that superior has faith in him and also in his ability to use authority in a proper manner. Employees get mental satisfaction when authority is given to them. They take interest and initiative in the work and try to prove that they are competent to work at the higher levels. 53 “My manager like do or handle anything by herself. She is afraid delegation in the more important projects because obligation of trouble will be still belong to her.” (From Ms Ha. A warehouse Controller at Logistic Department) "The sharing of work and job information always stimulated and creates favorable conditions about what I do. Even better I always liked my works will have feedbacks from superiors so that I can know about my working ability" (from Ms. Thanh. A former Accountant at Finance Department) Employees in my interviews always want to be a representative of the department and company, because from that way they feel they are confident in the ability and capacity as well as they feel happy when companies rely on their ability to work. A manager alone cannot perform all the tasks assigned to him. In order to meet the targets, the manager should delegate authority. For delegation to work, the survey indicated employees must have a clear understanding of their responsibilities, the extent of their authority, and the results that they are expected to produce. - Cordial relation Good relation in the workplace is a strong motivating factor in many cases, because in this study, the good-but-imperfect overall view about cordial relation effectiveness in the company can be found to impact employees’ motivation levels in their respective jobs. Employees at Atlas Copco Vietnam have thinking about questions: how much they felt managers cared about them personally, and how much effort they felt managers were making to instill a solid level of motivation in their departments. And almost their answer is "No". "No any care and interest to their staffs. Also no effort to instill inspiration or encourage everyone." (From Mrs. Diep. The senior Administrator at After Service Department). “Just yes for Human Resource Department to find out the way how to manage the against their components” (From Mrs. Vinh. A Former Senior Administrator at After Sale Service Department) In the interviews, participants were also mention about connection between them with superior 54 “Principle are often used in my superior’s sentences” (from Mr. Chuong. An Engineer at After Sale Service Department) “Conversation just have based on arising work, my manager only talks to us when it is necessary or when problems arise.” (From Mr. Truc. An Engineer at After Sale Service Department) "The work environment at Atlas Copco is very good within colleagues together. But regarding the managers, we are always have distance" (from Ms. Trinh Mai. A Customer Service at Logistic Department) Good and healthy relations must exist throughout the organization. It makes the work environment more dynamic and flexible so that productivity of employees has been increased in a natural way. - Good superior: Subordinates want their superiors to be intelligent, experienced, matured, and having a good personality. In fact, the superior needs to have superior knowledge and skills than that of his subordinates. The very presence of superiors can motivate the subordinates. At Atlas Copco Vietnam, subordinates mentioned as follow: “Many managers without any experience of technique were recruited for position of leader instead of senior persons” (Comment from Mr. Hoa. An Executive Sale at After Sale Service Department) “My new manager is person has many experience about logistic”. (Mr. Chuong. An Engineer at After Sale Service Department) The survey indicated the most of staff always look for and want to work with a leader has highly professional capabilities and experience. Moreover, this leader should also have expertise in leadership, in which psychological factors are very necessary to motivate them through understanding their desire feelings and aspirations. - Job security: In these tough economic times, job security is a major concern for workers in general and employees at Atlas Copco Vietnam particular. Job security play an 55 important role in employees’ social and working life because it helps individual don’t worry about their future. "Private companies or foreign companies are exploit companies the labor thoroughly, then they are ready to kick anyone whenever possible." (From Mr. Phat. IT Department) "The young labor force are more creative and their wages are low. To save costs for the company, HR always hires new young workers to replace you or others". (From Mrs. Vinh. A Former Senior Administrator at After Sale Service Department) “Within one year, there are many employee leaf off in the company, including two managers at After Sale Service”. (Mr. Chau. A former senior Engineer at After Sale Service Department) "People who work for long time at company, most of them in the same way leave off company, this matter made my psychological become change." (From Mrs. Phuong. A Customer Service at Logistic Department) Job security is very useful for the motivation of employees. Such security keeps the employee away from the tension of becoming unemployed. Job enrichment provides an opportunity for greater recognition and advancement. IV.3. RQ2: What do factors affect to motivation like? Monetary Factors: - Salary : According to the study, most of the staff at Atlas Copco Vietnam felt their salary is not satisfactory, so they became more pressing and dissatisfaction with the company. "The reason for stopping work here is no change in the level of salary for me" (From Ms. Thanh. At former Accountant at Finance Department.) “The employees of Atlas Copco Vietnam always have higher wages after leaving here and work for a new company.” (From Mr Tai. A Former Sale Line Manager at Sale Department) 56 "I will not receipt to do other people's works or support for new employees if the level of wage is still not increased or without any allowance." (From Mrs. Vinh. A Senior Administrator at After Sale Service Department) Wages have an impact on the war for talent. Therefore, to be competitive, an organization must be able to match wages. It does ensure that an organization can keep human labor long-term and their employees to be happy. - Bonus: Employees become less enthusiastic in work, they are not active and not work in a positive way because bonus policy is not clear. “A person has just left and I must handle double, even triple job without any bonus, any rewards and extra charges, even an incentive saying. I feel very tired and unhappy.” (From Mrs. Diep. The Senior Administrator at After Service department) "I just follow the job description in the labor contract if there aren't any further more bonus." (From Mr. Binh. IT Department) From the data, we identify that bonus not only give benefits to employees but also to organization. Non-monetary Factors: - Appreciation and recognition: In today’s economy, employees are working longer hours, often for less pay and fewer perks. But, leaders of Atlas Copco Vietnam Company didn't let them know that their employees have been recognized and appreciated. So this main thing affects the spirit of working and employee's level of engagement, as well as the loyalty of them. “I did give them many suggestion in the meeting to overcome troubles at present, but nothing has been changed… Now I can not more enthusiastic for my work... A dispirited feeling for my long working process at here.” (From Mrs. Diep Thuy. A Senior Administrator at After Sale Service Department) “You work hard for what when no one understands its value.” (From Mrs. Vinh. A Former Senior Administrator at After Sale Service Department) 57 “I work very hard and achieve high efficiency in repair machines for customer. Saving the cost of fuel for company. However, my manager did not realize my abilities… I suddenly did not have the spirit to work.” (Comment from Mr. Hoa. An Executive Sale at After Sale Service Department) “I will devote more my own abilities if manager appreciate the effort that I did for the company.” (From Ms. Trinh Duong. A former Sale Executive at Sale Department) It’s human nature to respond well when treated well, a fact that can contribute to maintaining a positive and productive in work environment every day. Loyal, happy employees are those who feel appreciated. It's important to make employees feel valued. Make employees feel appreciated, and they will work harder and be more loyal. - Delegation of authority: Supervisors are limited in both time and abilities. However, don’t know why, at here, they don't dare to let go of tasks that can be done more efficiently by others. “Many times when my work was delayed because I have to lose the time waiting for permission and approval of manager and leaders.” (From Ms.Thanh. A former Accountant at Finance Department) “Sometimes my superiors became stressful as she has to handle the large volumes of work in the short time. Our position is only allowed to work with the system in a limit range, so we can not help her.” (From Mrs. Phuong. Customer Service at Logistic Department) With this factor, employees tend to be more satisfied and committed in jobs that involve certain characteristics. The ability to use a variety of skills, having autonomy at work, receiving feedback on the job, and performing a significant task are some job characteristics that are related to satisfaction and commitment. - Cordial relation: Research also shows that relationship between colleagues is very good however relationship of employee with leaders is really not good. 58 “I almost can not discuss any ideas and comment with superiors.” (From Ms. Trinh Mai. A Customer Service at Logistic Department) "During the working time. No conversation. Feeling nervous. Terrible!" (From Mrs. Tien. A Sale Supporter at After Sale Service Department) "The principles create dry communication and relationships. It seems so difficult to exchange information together." (From Mrs. Phuong. An Admin at After Sale Service Department) "I am a new employee. I do not know who to talk to about the job in the company" (From Mr. Nhan. A new Support Sale Contract at Sale Department) The strong sentiment of employees at work and commitment to the company are relationships with coworkers and managers. How friendly they have with colleague. Employees are treated with respect are important to happiness at work. - Good superior: According to opinion of participants in interviews, they look forward their manager has many of the same qualities of good teachers. They are empathic, genuine, open, and flexible. They respect their employees and lead employee to achievement. "I've always liked and wanted work long-term with a manager, who have the strategic direction and goals for intelligent operation and we can help together accomplish that goal. Actually, the wages here are lower than Atlas Copco, but I still feel willing and pleased to accept it." (From Ms. Trinh Duong. A former Sale Executive at Sale Department) “I am absolutely unhappy with manager, we have already finished their work. The remaining free time, my manager just wants us to sit and wait hours to back home.” (From Mrs. Phuong. Customer Serive at Logistic Department) "I quit Atlas Copco not because of salary, because I do not agree with opinion of my sale manager. He wants to develop sales in the form of each individual. But according to I, we should develop sale with mutual-help groups, it’s better for salesman." (From Ms. Trinh Duong. A former Sale Executive at Sale Department) 59 “My manager is not psychological, he approach my desk, he look at my computer screen closely. I'm not happy about it.” (From Mrs. Phuong. An Admin at After Sale Service Department) Good superiors, who will make for employees aspire to work long-term and stability. The trust level of employee to superiors will make them self-confidence and peace of mind to develop their full potential, their ability in work. - Job security: In these tough economic times, job security is a major concern for employees. Therefore, replacement of employee frequently make employees at Atlas Copco Vietnam are very worried and nervous. Instability in internal environment of company, this cause lead to employees will want to find new opportunity of other company. “I always think that I would never work for a long time in any company. With the nature of my work and the changes of economic situation, in my opinion, no any private company can guarantee absolute safety for our long-term benefits because they can bankrupt any time.” (From Mr. Phat. An IT Executive at Offical Department) "Employees have been changed continuously, I wonder when turn to me." (From Mrs. Phuong. A Customer Service at Logistic Department). "Nothing better that we are own boss. We will not be fired for any reason." (From Mr. Tai. A Former Sale Line Manager at Sale Department) "I'm always looking for new opportunities as soon as possible." (From Mrs. Tien. A Sale Supporter Sale Service Department) "If I have new job, I will leave here soon." (Mr. Chuong. An Engineer at After Sale Service Department) "I had set up a separate company. It's just you, just as opponents of Atlas Copco Vietnam. Do you want to work for my company? Many benefits for you." (From Mr. Tai. A Former Sale Line Manager at Sale Department) 60 Job security is the probability that an individual will keep their job. A job with a high level of job security will ensure spirit of working. Therefore, they can work with the best ability. IV.4. RQ3: How to have effective motivation at company? Monetary Factors: - Salary “Salaries are now and forever the most important drivers for people." (Mr. Chuong. An Engineer at After Sale Service Department) “I stopped working at here as I need a better level of salary”. (From Ms. Thanh. A former Accountant at Finance Department) “I am very excited and happy when I’m received my salary on time without reminding”. (From Mr. Loi. A Officer Executive at Logistic Department) Companies should use a variety of pay structures in an effort to use it as a motivator. Salary should be paid straight to employee on time with manifesting clearly information of payment. This event will obviously bring meaning of necessary. - Bonus “For the majority of employees at here, the bonuses are solutions to resolve the current problems." (From Mrs. Phuong. An Admin at After Sale Service Department) The bonus always is a considerable factor in organization where employees would expect to find a more liberal cash incentive, especially for engineers at Atlas Copco Vietnam, they usually work overtime outside so they care about bonus more than salary for motivating them. Using bonuses to attract skilled persons or to hold good staff as a long-term incentive. Non-monetary Factors: - Appreciation and recognition: “I don't care about salary so much if my working result is recognized” (Comment from Ms. Trinh Duong. A former Sale Executive at Sale Department) 61 “I have to do more than my normal work. If I were recognized and appreciated about this, I would feel more pleasing.” (From Mrs. Vinh. A former Administrator at After-sale Service Department.) Appreciation and recognition should be set in concert with employees, to ensure they will maintain the process of operation from the outset. Employers should know saying, "Thank You" to their employees. Moreover, trying to structure rewards as feedback or appreciation for their hard working. A gift of appreciation and recognition to demonstrate of the employee's value will make employees so proud and happy. - Delegation of authority: "You will have more responsible with your job, when you are authorized from your manager." (From Mr. Tai. A Former Sale Line Manager at Sale Department) “I always prefer that my supervisor will give me the latitude to use my own abilities and to take the initiative in working.” (From Ms. Trinh Mai. A Customer Service at Logistic Department) The feeling of contributing to the overall vision and progression of a company can be a great motivator for employees. By delegating of authority from manager, employees feel that they are shared in the success or failure of the business, from that they will have more obligation and responsibility with their work and they may develop a stronger interest with the company, and ultimately they can promote productivity for company. - Cordial relations: "The work environment at Atlas Copco is very good within colleagues together. But regarding the managers, we are always have distance" (from Ms. Trinh Mai. A Customer Service at Logistic Department) "The principle created dry relationships. It seems so difficult to exchange information." (From Mrs. Phuong. An Admin at After Sale Service Department) Ensure effective communication to motivate employee, leaders should avoid using angry or unendurable expressions. Listening always is effectively tool in 62 conversation. It makes employees want to work long-term with company and employee will easily sympathize with the difficulties of the company. - Good superior: "Managers need action as coaches and cheerleaders, helping employees maintain the focus and loyal, even when everything have been impacted from the worst situation of economic.” (From Mr. Hoa. A former senior Engineer at After Sale Service Department) "Managers must help the employee build confidence, establish routines, and set realistic and difficult goals." (From Ms. Trinh Duong, A former Sale Executive at Sale Department) The managers themselves can create a favorable work environment through positive reinforcement. This factor gives many benefits to employee with the spirit values that sometime they need more than monetary incentives. - Job security: “I'm always looking for long-term and stability work where I have peace of mind to develop myself. I think setting up my owner business is the best.'' (From Mr. Phat. An IT Executive at Offical Department) This factor is main selection by employees. Almost of them desire to have engagement long-term from the side of organization. They are afraid as seeing and hearing the scene of replacement employees frequently from workforce reductions of the company. Organization should have preferential policies, personal development policies to senior employees; especially the best trying create balance and stability in psychology of employee. From clarifying the research question above, the finding is there are several factors such as good wages, sensible bonus, interesting work, job security and promotion and growth that were important ranks in this research. However, results suggest that employees’ choices may differ according to respondents’ culture, occupation, gender, and position in the organization. Hence, this means that organizations should focus on 63 motivating to each particular group of employees according with private characteristic of each group. At last, the brief of finding in the ways to have effective motivation for employee at Atlas Copco Vietnam Company as follow: - Give the rational policies about salary and bonus. - Make employees feel they are doing something meaningful. - Effectively communicate and share information. - Give employees clear job descriptions and accountability. - Give and receive ongoing performance feedback. - Listen to, focus on, and respect your employees’ needs. - Provide recognition to worthy employees. - Provide fair compensation and pay for the performance you seek. - Manage, but don’t micromanage. - Modify your management approach for different types of employees. - Give employees opportunities for personal growth. 64 CHAPTER V: CONCLUSIONS & RECOMMENDATION V.1. Conclusion Through the problem of Atlas Copco Vietnam, we can see clearly that there are many causes of lack of active labor and the leaving of employees. Firstly, remuneration, salary is not adequate for the work and effort of employees. Secondly, assessment of work capacity is not specific, relevant and no opportunity for advancement. Notably, the decline in prestige of leadership, management, the weak management capacity, the decline of morality is also a cause affect positive labor of employees. The objective of this study is to find out motivation factors are considered as the most important to motivate employees especially in Atlas Copco Vietnam. The theoretical part of the thesis showed that a nature of motivation is very complex and there are no simple answers to the question what motivate employees. The results of the research conducted in order to find and analyze factors that motivate employees of Atlas Copco Vietnam. Those findings suggest that managers and HR professionals who deal with their employees should not base only on money as a primary motivation tool. On the other hand, although non-monetary motivators are definitely powerful, they are not likely to lead to the optimal performance if they are the only source of motivation. The results of this research suggest that the most appropriate motivation and reward system should try to satisfy a variety of needs from more than one category. The perfect job for future businessperson should be interesting and well paid. Moreover, the work environment should create the feeling of involvement, appreciation and safety. Perhaps there should be also a great chance for promotion. The described job definitely would motivate employees to perform very well. Although, it might be hard to offer a position that satisfies all those needs, organizations should be aware of their existence. Companies can meet the challenge of attracting, motivating and retaining employees by being prepared for a variety of the expectations they have. The information gained from this study might be a good starting point for creating motivation systems for new and senior employees as well as for planning recruitment campaigns focused on professional staffs. 65 Furthermore, less supervision as a factor of motivation has a role to play in motivating employees for increased performance. This is because according to the research most of the employees in the company noticed that less supervision had a negative effect on performance of work. This is an area, which the company needs to have an appropriate way by conducting routine checks on employees to know if workers are doing the work right or wrong, as this needs a proper feedback on employee monitoring and performance. Also, it can be concluded from the research conducted that employees in the company are of the opinion that management's ability to involve employees in decisionmaking helps the level of motivation among workers. From the study it was realized that employees were in favor of management involving employees in decision-making. This aspect of motivation needs some attention and that if employees are given the opportunity to be part of the decision-making process in the organization has a potential to affecting the company positively. Similarly, the survey conducted recognized that empowering employees is a necessary tool for motivating workers. When employees are empowered it helps them to take responsibility from the outcome of work and allows workers to serve clients at the level of the organization where the customer interface exists, as it will benefit the organization and the employee as an individual. This is an important point, which the company has to make provision for in the future because the benefits are not only for the employee but also to achieving organizational objectives. It is clear from the study, we indentified the employee motivation has direct impact on productive and growth. A highly motivated employee invests their best efforts in carrying out each and every element of their duties and responsibilities. Enhanced job performances of the employee will add value to the organization itself and to the employee’s productivity. The empirical results of this study show that the motivation of the employee has advantages to the employee and the organization and the organization will keep the loyalty of the employee at the high peak. Also, the employee will trust their organization, supervisor and top management. Form these observations of facts it is very clear that business organizations can survive and grow by taking care of their employees. 66 In the free market economy under today's globalization only organizations which pursue high-performance focused on their employees can survive and growth rapidly and safely. The study help not only find a more appropriate way of motivating its workforce for high performance, but also policy or decision-makers to factor the relevant issues about motivation into major policies or decisions for increased productivity. The work will help in facilitating further studies by researchers on the objectives, by preventing indifferent attitudes of employees towards work and increase productivity. Again, it will also assist managers in organizations and employees obtain a more comprehensive knowledge on motivation at work. V.2. Recommendation V.2.1. Recommendation for organization Building a good relationship will increase productivity as a relationship becomes good where there is a reciprocal value among management and employees. Managing employee relationships will improve the level of productivity by bettering employee morale, communication and loyalty in the organization. The study also seeks to recommend that a proper salary policy should be put in place for all employees. It can be recalled from the goal theory that involving employees in the development of any recent salary system and consulting workers about problems they may anticipate will help in designing a good salary system. Pay is a theme that holds the attention of most workers in many organizations and a scheme that includes changing the reward system may be used as a tool for alleviating other changes in an organization. It will also be recommended that management develop ways of engaging employees in the decision-making process of the organization so that employees will be able to meaningfully contribute to the course of the organization. The implications for managers in organizations are significant. Leaders today must be not just cognizant of the latest research on motivation, but take action to make those organizational changes to take advantage of this study. Because this research can be useful for managers in supporting their employees become persons have more good performances. 67 Furthermore, the study also gives not only me, but also staffs at any companies. We have many chances to develop skills to apply what I have learned in realistic practice, and help us improve about researching, understanding and working abilities in organization. V.2.2. Recommendation for future research Being a survey research, this study is most provoke some other studies as a follow up in a bid to establish the likely effect of motivation on performance. It is necessary to expand the scope in terms of sample size and the selection strategy. Research on larger sample size would allow generalizing the findings to the whole population of employees in our country. Future research could also consider other factors that might be motivating for employees, such as a good atmosphere at work, fringe benefits, fit of personal values and company values. Finally, a longitude study that compare pre-employment attitudes toward motivation factors with actual attitudes of the same respondents after a few years of employment would show how the expectations about own motivation turn into a real behavior and evolve during a career. 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Indian Journal of Industrial Relations, Oct2008, Vol.44 Issue 2, 256-271. 73 THE INTERVIEW GUIDE A * Question Guides for Employees: - Are you happy with your job and position at the present? - How do you feel about the company? - According to you, why have many employees become lack of dynamism, creativity and innovation or cumbersome and indifferent attitude or lack of responsibility? - What obstacles have stopped your performance to the best effect? - Do you feel about empowerment? - Do you think this phenomenon will be still continued in the future? Why? - Do you think that you will always be loyal and committed with Atlas Copco Vietnam? Why? - Have this phenomenon impacted to your perceptual perspective in working? How? - According to you, what factors can motivate your working ability and make you feel love and commitment with company? 74 THE INTERVIEW GUIDE B * Question Guide for Leaders: - Do you know what your employees feel about the Atlas Coco Vietnam? - Do you have good communication with employees? How? - What do you think about the current state change of employees at our company? - According to you, why have many employees become lack of dynamism, creativity and innovation or cumbersome and indifferent attitude or lack of responsibility? - Do you think this phenomenon is very serious and forecast unsustainable productivity while our slogan always is sustainable productivity? - How have this phenomenon impacted to the company? - Do you think your employee’s hoping was so much about Atlas Copco Vietnam's opportunities, hence they felt unhappy when their leader couldn’t satisfy them in a certain aspect? - What are you doing to change and prevent this phenomenon? - How to make this phenomenon become better? What really motivates your staff? - Are there any recent changes in the company that might have affected motivation? 75 [...]... the factors impact to employee motivation - Proposing recommendations about the ways to motivate employees at Atlas Copco Vietnam Company From research objective, we have three research questions as follow: - RQ1: Which factors impact to motivation? - RQ2: What do factors affect to motivation like? - RQ3: How to have effective motivation at company? I.4 Rationale for the study The study focuses to find...Stockholm, Sweden, and has a global reach spanning more than 170 countries In 2011, Atlas Copco had 37500 employees Atlas Copco has been operating in Vietnam from 1994 through some distribution companies But, to 2004, Atlas Copco Vietnam has founded with 100% wholly ownership by Atlas Copco Group Atlas Copco Vietnam s operation, all have to base on principles of the Group,... tried to explain what motivate people to work The answer to this question is important because it is obviously good to understand what influence people behavior However, it is not the only reason for a great interest in the topic of motivation Managers might look for ways to motivate employees because they assume that motivation can lead to some positive outcomes for a company The question that can... morality is also a cause affect positive labor of employees 4 Happy employees are loyal employees Happy employees are devoted employees However, the creation of "happiness" for employees is still problematic for many companies and leaders According to me, this is the problem of managing people, and the key for case is how to motivate employees at Atlas Copco Vietnam? I.3 Research Objectives The main objectives... recent period at Atlas Copco Vietnam, unfortunately, the phenomenon of brain drain and employee replacement frequency have been occurred and created many troubles for operation of Atlas Copco Vietnam s business and management and leadership at there also Many employees were replaced continuously in the short time, especially in 2010 until now Almost of them have leaved the Atlas Copco Vietnam, then... through the case at Atlas Copco Vietnam Company, so the study benefits two primary groups The first group it benefits is managers in the company With the knowledge of what motivates employees, managers can better determine what drives employees to do their best work They can use this information to get more value out of the people they hire and already employ by using effective motivational strategies other... into the following criteria: monetary factors and non-monetary factors The study was limited to employees working in the company of Atlas Copco Vietnam at Binh Duong province All employees were surveyed live in Ho Chi Minh city area The main questions in the survey asked about employees’ expectations of factors that motivate for them in their job It is possible that an experience in a real work environment... agents, and to be the one that they prioritize - Shareholders: being the preferred company for shareholders to invest in, and we aim to create, and continually increase, shareholder value I.2.2 The problem at Atlas Copco Vietnam The Atlas Copco is known with many good policies and practices to develop long-term not only for customers, shareholders and partners, but also for their employees However, in... dissatisfaction are produced by different factors People are satisfied at their work by factors related to content of that work Those factors are called intrinsic motivators and contain achievement, recognition, interesting work, responsibility, advancement and growth Factors that make people unhappy with their work are called dissatisfiers or hygiene factors Herzberg found following dissatisfiers: company. .. describes employees’ needs but also goes further and presents how to enrich jobs and make workforce more motivated (Fincham & Rhodes, 2005) Herzberg indicates that job satisfaction and job dissatisfaction are not opposite phenomena (Herzberg, 1968) According to him the opposite of satisfaction is rather no satisfaction and the opposite of dissatisfaction is no dissatisfaction Herzberg suggests that satisfaction ... possibility to motivate others A qualitative, case study methodology was used to interview two groups: subordinate group and leader group, at Atlas Copco Vietnam Company The findings showed that motivation... this study are: - Identifying the factors impact to employee motivation - Proposing recommendations about the ways to motivate employees at Atlas Copco Vietnam Company From research objective, we... factors impact to motivation? - RQ2: What factors affect to motivation like? - RQ3: How to have effective motivation at company? I.4 Rationale for the study The study focuses to find out factors