Case study of motivating for HRM

Case study of Motivating! According to a survey of Navigos Group, all employees assess remuneration (hereinafter referred as Money!) as the leading factor in job satisfaction Basing on this fact, you should design a profit sharing program to motivate employees That program should reward them and make a "bigger" pie, so the percentage of smaller shares of the owner will change to the larger profit Analyze following company and outlined such program Bubba Gump Shrimp Company Bubba Gump Shrimp is a Vietnam-based American Company Its business activities are to buy shrimp, create brands and sell them to the US market Here are facts of this company: • 50 employees, including 25 conducting phone sales to the United States and the rest supporting office work 5/50 employees taking charge of buying shrimp for sale • Each sale staff earns U.S $ 900/month whether they sell more or less They have been feeling "bored" because of work and sometimes they just make 10 calls/day, while you know they have the ability to make 90 calls every day • Office staff of help desk complains that they "have nothing to do" and they use that time to play games on computers and get access to personal email They often spend hours for lunch and they need some time to come far to find a place selling a lunch costs 20,000 VND After lunch, they sleep and miss some of the targets These staff can earn $ 600/month • Turnover of the company is U.S $ 30 million/year and profit margin is 15% after tax, which is high compared to the industry • You want your company to increase revenue by $ 50 million/year, but the manager seems to fail to motivate the employees to sell more products He submits for approval of hiring more 25 people This manager said that hiring more staff will bring higher revenues • The company is willing to list shares on the counter market and it has only three owners of the whole shares • Human resource manager is complaining that the company is losing its employees at rate of 40%/ year and costs for recruitment, testing, screening and training each new employee is $ 5,500 Answer: Social human resource in general and labour management in particular are the most important asset of every country, determine the growth of economic, cultural, social, ethnic positioned in the international arena In every enterprise human is the most important input, the decision process of combining resources in an effective manner to create products and services to meet customer requirements, the existence and development decisions of the business Each employee has different reasons at work because she can achieve what they need from work What we need to affect the spirit, motivation and quality of life of each one of us Whatever the reason, the purpose of most of the people work for the money, including salaries, wages, bonuses, benefits Underestimate the importance of wages and benefits to employees is a mistake The key to creating a dynamic work environment that is trying to solve things which are the employees need and what they want are reasonable We analyze the situation of the Bubba Gump Shrimp Company to better understand the importance of this factor Bubba Gump Shrimp is a Vietnam-based American Company Its business activities are to buy shrimp, create brands and sell them to the US market There are 50 employees in the company, including 25 conducting phone sales to the United States, employees taking charge of buying shrimp and 20 employees are supporting office work.Summary of the overall situation of employees in the company is that they get bored by too little work, the ability to their job is not maximized Annual revenue of $ 30 million / year, 15% after-tax profit margin Companies want the revenue increased $ 50 million / year, and hired an additional of 25 people to bring revenue to be achieved Besides, the company is ready to list shares on the counter market and only owners of the whole shares And the company is losing employees at 40% / year while the cost of recruitment and training of each employee is $ 5,500 / person Through the summary information of the Bubba company, the problem that the company needs to solve is to build an evaluation program of compensation to employees includes: wages, other forms of motivation to employees to work effectively as well as program to issue shares for employee incentives to retain talent and bring better benefits to the company 1.Salary, Bonus and Remuneration: For employees, the salary is the main income of the system of remuneration that employees receive These salaries and wages will help workers to reproduce their labour capacity; it has a direct impact on the lives of workers as well as the lives of their families If salaries and wages worthy it would be the greatest source of motivation to help employees improve their own work For enterprises the salaries and wages are the cost of business But enterprises need to know how to make the most of the functions of wages and salaries in order to create the most powerful motivation for employees in the organization Salaries and wages of itself is not the driving force Wages, the salary was too low for the labour re-production, not enough for them to take care for their children then wages and salaries cannot become a driving force for employees, even it works reverse Wages only become a driving force when it meets the physical needs for workers, giving them peace of mind about their income, the payment of wages must also ensure that the principle in wage payment: - Ensure that the principle of equal pay for equal labour - Ensure the principle of the growth rate of labour productivity faster than wage growth - Ensure a reasonable relationship of wages between different workers in the economic Thus to build a wage regime applicable to workers then we need to base on the following steps: a Job analysis: is the process of gathering materials and evaluate systematically the important information related to the specific job within the organization in order to clarify the nature of each job Job analysis has great significance and motivates employees Thanks to the analysis is that the manager can determine your expectations for the job Thanks to the clear job analysis that employees can understand the duties, obligations and responsibilities of his/her work Job analysis has a huge impact on the labour force Clear job analysis and details will help enterprise hire the right people, assess the job correctly, it would be basis for evaluating reward and discipline For workers, the clear analysis and detailed work will help employees clearly understand their job; they know what activities to follow Based on the analysis of the work they know when they are fined, they are rewarded As detailed job analysis as accurate performance appraisal made thus it is creating trust with employees In summary, an enterprise needs to have an analysis for each specific job Analysis more clearly, more closely, the more powerful motivation for employees to work a Performance Evaluation: is understood as the formal and systematic assessment of the work implementation of the employees in the relation compared to the standards were developed and discussed about the assessment for workers To make the evaluation of performance becoming a motivational tool for employees working in the enterprise, Enterprises need to build its own a performance appraisal system officially and publicly; Assessment System need to be clear and in a scientific way The evaluator must be qualified expertise and has professional ethics Work performance appraisal system should have clear standards, specific and must be disseminated to each employee From which employees may know the results of their work, based on which certain criteria the enterprise evaluates the results of their work so that they take measures to adjust the process of their work in order to achieve highest performance To apply any system of work performance appraisal in your enterprises, you must also study the nature of the job should be assessed, the job need to be designed and analyze the job clearly we cannot get a job evaluation system made of a job to apply for other jobs or use the rating system make this enterprises work for the application of machinery in their enterprises be we cannot get a job evaluation system made of a job to apply for other jobs or use the rating system made for this enterprises to apply other enterprises Performance appraisal system has been built formally, scientific identified, clearly and openly to each employee but how does it work? It is the task of the evaluator Perform the assessment process often greatly influenced by subjective factors of evaluation So, who the job assessment must first be qualified, honest, professional ethics, work transference thus we can eliminate common errors in the job performance appraisal process Since the performance evaluation results demonstrating enterprise recognition for the work of the employee, therefore, it has a direct impact on workers in the payment of remuneration, training and development, promotion, detention The results of work performance evaluation as accurately as stimulate employees to work, increase the confidence of workers increase the labour productivity and work efficiency of employees, increase employee engagement with enterprises Motivating through arrange, rational use of labour and improve working conditions Current situation of Bubba Company, each sales staff earns U.S $ 900 / month regardless of whether they sell more or less; this is an issue that needs to be considered This policy is simple and easy to understand, but poorly Staff will work without any interest and the rate of staff turnover is very large They work with fully productivity and only a part of the work and enough time to enjoy monthly wage To be able to motivate employees Bubba can determine the current salary for sales staff and support staff is receiving as a monthly basic salary To take full advantage of the labour productivity of employees the enterprises need to evaluate the work of employees and a bonus can be added to the salary calculated on the outstanding labour productivity and it is calculated bonuses on the number of contracts that employees bring to the company business when revenue exceeded the target And additional amount to salary and wages is the amount encouraged that workers salaries and wages not The company can implement this reward at the end of each quarter or the end of the financial year The company may also pay an unexpected bonus in recognition of the outstanding achievements of employees when they complete the important work projects or initiatives of great value Thus we can see the basic salary as income to recreate their labour productivity and the bonus is leveraged to create incentives for employees to improve their own labour productivity For enterprises, the compensation is also is cost of the company hence the enterprises need to build a payroll system, employee bonus calculation correctly and making good motivational work will ease unnecessary stress, enhance the attractiveness of salary, bonus Workers eager to work, stick with the organization, ready to give their best for the organization In addition to creating a fair wage and to establish a system to suit the company should have the participation and agreement of staff and a number of their representatives in the design of payment systems Need to give employees the opportunity to participate and comment on the wage system Motivate the employee to make them work dynamically and effectively • Through training : The selection of employees for training to increase chances of promotion not only affects the motivation of the employees, but also a very large impact on the labour force of the other labourers If enterprises choose the right people who have the ability, achievements deserved to send for training to increase their ability for job promotion not only bring great benefit to the company, but also giving it a great job motivation Not only will these other workers also endeavour to imitate them in order to achieve better labour outcomes Training and promotion policies as clear, as attractive as stimulating employees to work effectively and improve labour productivity Thus to effectively motivate employees most enterprises have to combine creating motivation through training and other forms of promotion Only then can combine stimulating demand satisfaction in all aspects for employees • Motivate through working environment : In an organization often having conflicts, conflicts between members then effective work of the organization will not be high Often employees have to spend about a quarter of the time during the day for work Normally employees have won about a quarter of the time of day to work Thus, working environment has enormous influence the psychology of employees and their work efficiency Motivate employees through the working environment is an important measure of system measures to motivate employees through mental stimulation In the enterprises always maintain a friendly working environment, people respect each other, help each other frequently, the relationship between superiors and subordinates are not too stressful, professional working style certainly creating psychologically comfortable working for employees, each employee is always striving constantly and always maintain a fun atmosphere, friendly during work, create conditions to improve effective work • Create a safe and healthy workplace : All enterprises have a legal responsibility to ensure the safety and health of employees and others affected by the operation of your business, such as customers or suppliers They are also obliged to comply with the legal requirements to protect the environment Using this method will also benefit you The training to provide safety, health and good environment will also bring good results We also help you to improve your reputation with customers, the local community and your employees Your reputation is an important asset, which helps you attract and retain customers This also helps to recruit new employees easier as well as can improve the promotion of staff It also encourages suppliers to work with you Some businesses, with a poor environmental systems, suffered result are customers, local communities and even their own employees had turned against them It is important for the reputation of your business is not just a commitment to the environment, but also for customers, employees and the local community aware of • Recognize contributions of the staff: through the evaluation of job performance on a regular basis and feedback authenticity, presented the business objectives and recognize the contributions of employees Propose a worthy reward • Respect staff: request feedbacks, either personal opinion or through the employee survey about whether they understand how their role, the support that they have and the improvements for enterprises Allocation of rights and responsibilities to employees so they can have autonomy and promote the full potential of the internal forces • Regular exchange between leaders and members of the company: often creates the opportunity to mingle with colleagues at events Through the above method to increase staff‘s motivation, Bubba company need: Create training opportunities for employees to improve performance at work and evaluate work performance in due time given employees the opportunity to stand for election themselves to higher positions Create a comfortable working atmosphere and friendly as well as safe and healthy through regular communication and equality between superior and subordinate employees may find that they work for themselves and not employed And with a good working environment will arise many more innovative ideas Recognize the achievements of workers through the job performance evaluation as apply the bonus to employees when signed contracts exceed the proposed target For example: a sales staff can make 90 calls per day equivalent to times of the revenue brought back to company than usual If the company‘s target is 50 contract per month, if exceeded they can get bonus due from such contracts That's business activities to promote the likelihood of working at actually achieving a profit many times over Give employees the opportunity to take advantage of their full potential and their capacity While the supporting office have a little job to but the number of them are 20 They not feel have enough work to do; they waste their time for nothing Hence, refer to their opinion and give the right policy and if they can bring signed contracts then they can also receive bonus as sales staff Irrespective of the departments, making concrete decisions about the bonus so that they feel motivated, while increasing their income then surely they will have to think more on the transformation of the workplace When you take advantage of this human resource is redundant, Bubba will save the cost of hiring an additional of 25 people, and the cost of training new employees Organize meeting, training opportunities to create the contact between the leaders and members to improve coherence in the company makes employees feel that they are an integral part, and they are important to the development and such strong growth of the companies Motivation to work is an important part in the management of staff performance Employees are the most valuable asset of the company, if you want a staff of high productivity, success, companies need to ensure they are motivated and committed to the company While some employees may work full capacity without incentives, others sometimes need a little push If you this, productivity will increase significantly and at the same time the spirit of your employees will also improve 3.Offer insurance of stock to employee to retain talents : Any company will want to retain talent and human resource used in their company in many different ways such as cash bonuses, products, welfare, training and advancement opportunities But recent years many companies have been quite successful when applied to model stock bonus to employees In integration trend ESOP will be an effective tool to increase competitive advantage and promote the efforts of the staff for the development of the companies Through some research, both applied ESOP and with the participation of the members of the company in making important decisions have faster growth rate of - 10% compared to other companies not apply ESOP Employee stock ownership (Employee Stock Ownership Plan - ESOP) is a powerful tool that many foreign companies have applied for a long time to attract talent Why should apply ESOP because the company can attract more qualified personnel, because the ESOP gives employees the opportunity to make more money if the firm succeeds in creating value shares ESOP impacts fairly large on the growth of the company and this has been conducted a research in 1987 by Michael Qurreay and Corey Rosen on a 45 scale application of ESOP companies and compare each company with respective companies in the field of business, scale not apply ESOP The results showed that the companies applied ESOP faster growth than the company not applies ESOP (about 3.6% / year) In addition, the companies has applied both ESOP and having active involvement of employees in management decisions as well as other important decisions, the growth rate of 8-11%, faster than the companies not apply to ESOP Also ESOP make the rate of return on assets (ROA) is higher for the Company Results from a survey of 105 companies by researchers - Douglas Kruse, Joseph Blasi, Jim Sesil and Maya Krumova of Rutgers University in 2000 showed that, in the same period of 10 years from 1985 to 1995, the Companies applied program options to purchase shares extend generate higher ROA from - 2.5% compared with the same companies not apply this program ESOP is increasingly widely applied in the world for business earned above gold benefits In Vietnam, the competitive pressure of the integration period, especially the race talent searched, ESOP is more useful for enterprises Thus, ESOP is understood and how it is applied in the enterprise? Through the analysis above, Bubba Company should offer specific solutions for the issuance of preferred stock program to retain talent Only three owners of the entire number of shares when the company is ready to list shares on the counter market So Bubba Company should base on the assessment of the work to be able to consider the condition to make decision of which employees chosen to purchase ESOP Bubba Company can build systems to evaluate the performance of the employees selected purchase ESOP according to the following criteria: • For senior management team must complete its tasks and achieve business targets of revenue, profits of 80% or more Besides, each member must mention -3 “the DO” matter to improve and enhance business processes • For sales managers are required to reach 80% or more of the criteria for revenue, contracts, debt collection, in the year they must mention two problems which need to improve in business operations of the department After you have selected the employee that meets the requirements, the company supports employees to perform ESOP Suppose the stock price of Bubba is 10USD/company shares on 1/8/2012 and they sold to employees at a price of 12USD / share (higher than market 2USD) and options to purchase shares takes effect within one year Such employees who have been selected to purchase shares can be purchased at a price of 12USD at any time within one year If the stock price rises to $ 30, employees can buy shares at $ 20 / share and sold at the right price (or at a different price on the market) to make a profit margin of 10 USD / share The company's profit sharing with employees contributes significant achievement is a process that requires a great effort from both sides Bubba should have three key elements mentioned above in profit sharing The final destination where employees want to achieve is the result of the work they have put effort, recorded and is also a shareholder in the company So they have a motivation to develop the work, they can bring 10 times revenue for businesses, directions to their destination further, not only is rewarded according to the number of contracts but the main shareholders in company, has the right and voice to make decisions Thus the percentage of shares of smaller owners will turn into bigger profits entirely From the aspects of a manager - When Bubba makes policy, spending in unplanned bonus Just planning a general way we have the followings: - Sales Staff call up to 90 customers / day - Office support staff calls up to 40 customers / day Only count on total revenue that the company entirely brought by the sales staff when having no motivation: 10 conversations / day * 25 people * 256 days / year = 64,000 sales calls that brought about 30 million /year So just briefly with motivation: (90 * 25 people) + (40 * 20people) * 256 days = 780,800 calls, approximately 700,000 calls succeed hence the revenue that they bring beyond the expectation is about 328 million / year So Bubba does not need to hire more employees, Bubba needs to care of this measure is to motivate employees so that they promote all their abilities They can keep talent; bring great revenues without having additional cost to hire and other expenses For employees, plan to develop wages and specific level of bonus: - For sales staff, plan the revenue brought in the month, when exceeded a specific implementation review on each contract to make a reasonable bonus Annually, or more than months, review on the staff with excellent performance, depending on the extent to preferential issue of shares to employees Company would be willing to share the profits of the company for employees to own shares From there they would be interested in long-term profitability of the company as shareholders - For the remaining support staff, if they are capable of working on sales, let them try and give a reasonable bonus They will also receive stock if they bring profit to the company achieved the maximum level It will have a significant impact on longterm work in the company Not only in working people really need the motivation but even in human daily life should be motivated to live An unmotivated living will not exist Natural selection is the driving force of life for every human being Not only humans but also animals and plants as well, in order to maintain their existence they have to change the shape, colour it’s so easy to adapt to changing living conditions In the economic, motivation plays a huge role, the state wants to attract foreign investors by creating open investment environment, it is also one of the driving forces to attract foreign investment In companies the motivation comes from the goals of creating motivation Motivation making labourer to work harder and devote fully themselves to the company, and commit to company The exist and development of the company depends on the working efforts of all members, dedication, contribution, wisdom of human spirit, dedicated to the company No company can survive and grow with superficial people working, psychology always depressed, bored at work Therefore, any company should also motivate employees to employees Motivating employees for employee’s not working psychological stimulation for workers, but also increase labour efficiency, business efficiency of the company, building professional staff, increase their competitiveness in the market ... quality of life of each one of us Whatever the reason, the purpose of most of the people work for the money, including salaries, wages, bonuses, benefits Underestimate the importance of wages... driving force for employees, even it works reverse Wages only become a driving force when it meets the physical needs for workers, giving them peace of mind about their income, the payment of wages... : The selection of employees for training to increase chances of promotion not only affects the motivation of the employees, but also a very large impact on the labour force of the other labourers