Phân tích tình huống về tạo động lực cho người lao động e

MOTIVATING EMPLOYEES! According to a survey of Navigos Grroup, every employee consider remuneration (understood here is: money!) is the leading factor in job satisfaction Basing on this fact, you design a profit sharing program to motivate employees That program should reward them and make the profit pie bigger, so a small percentage of stock of these owners will turn into considerable bigger profits Analyze the company below and outlined the program MAIN CONTENTS: I Some theoretical issues about motivating employees: The concept of motivation and motivating employees: - Motivation is the desire and inspire that directs and encourages a person to work harder voluntarily to towards organization’s goals - Creating motivation is one of the activities of human resource management, in which management uses incentives to increase employees’ performance - The nature of motivation stems from the needs and human’s needs satisfaction Between the needs and needs satisfaction is a certain distance and there are always rooms for shortening that distance by motivation The need to motivate employees: In an enterprise, employee motivation derived from the goal of motivating employee to work harder Incentives make employees to work harder, commit themselves to the company and stay with the company in a long term The existence and development of the company depends significantly on its employees’ effort, dedication with their wisdom to devote themselves to the company No company can survive and grow with people who work only on a superficial way; always suffer from depression and get bored with their job Therefore every company needs to motivate its workers Employees motivating not only encourage employees to work but also increase their efficiency, leading to higher overall enterprise’s efficiency, building a professional staff, increasing company’s competitiveness in the market etc Forms to motivate employees: 3.1 Motivating through material incentives: it is a form of motivation through monetary rewards such as wages, bonuses, allowances, benefits, stock etc - Salary: For workers, salary is a leading concern It is the main source of income to maintain and improve their living standards At a certain level, salary is evidence to show a laborer’s value and prestige in our society If salary or wage is commensurate with a worker’s performance, it will be the greatest motivation for him to improve their work efficiency - Bonus: The money paid by enterprises to employees for their achievements and contributions, which is in excess of a specified level given by the enterprise Bonuses and salaries make up the most of workers’ monetary compensation Therefore, bonuses also contribute to satisfy material and spiritual needs of a worker and his family, leading to a higher level of satisfaction In that way, bonus is another monetary tool to promote worker’s efficiency There are many types of bonus and in fact businesses often pay bonus for some achievement such high productivity, raw materials saving, early work completion, and technical innovations - In addition to salary and bonus , worker shall also be entitled to some other financial compensation such as grants, allowances, company’s shares and welfare 3.2 Motivating through nonmaterial incentives: A labor not only works for their livings and he stills has other demand that need to be satisfied by some tools other than monetary one In other words they also pursue other intangible value at work So in order to be able to exploit the full potential of employees, managers need to incorporate both material and nonmaterial incentives The nature of nonmaterial incentive is the process of taking care of workers’ spiritual life through a tool other than monetary one A worker’s spiritual needs are much diversified and there is a hierarchy of needs such as: fun at work, excitement, passion to work, fair treatment, and respect.etc Motivating through nonmaterial incentives consists of two main types: Motivating through the job itself and through the work environment In other words, enterprises need to create a enjoyable and comfortable working environment in such aspects as internal customers, enterprise’s culture and policies II Analysis of Bubba Gump company Shump Conpany: Some of the company’s characteristics: Bubba Gump Shrimp Company is an American owned business in Vietnam Their business is to buy Shrimp, building brand name and sell them to the U.S market The company has 50 employees; including 25 direct sales (phone sales) to sell the goods to the U.S market and the rest’s job involve supporting office work out of 50 workers take over the work of buying shrimp The company earned revenue of U.S $ 30 million per year and after tax profit margin of 15% This level is ranked high in the industry Methods of income distribution and income of workers in the company : a Income distribution methods: Income is paid basing on job title (position): a sales person earns a monthly income of 900 USD; supporting staff earn 600 USD per month The workers’ income is fixed with no variability and no difference within a same position Income distribution does not depend on workload, work quality, efficiency and the value each worker’s contribution to the company b Advantages of the method of income distribution in Bubba Gump Shrimp Company : - For employees: They have a stable income, regardless of their work quality Workers in the same position are entitled to equal income and therefore the company can limit jealousy, rivalry among colleague - For companies: Labor cost is stable Without paying bonus, the company can save this additional cost c Disadvantages of income distribution methods in Bubba Gump Shrimp : The company paid workers basing on a simple job-based program , not by labor efficiency, not commensurate with workers’ contribution and dedication causing them have no motivation to work: Because employees receive fixed monthly salaries regardless of their performance (each salesperson earns 900 USD per month regardless of how much they sell), the company not pay in accordance with their contributions so workers lose motivation, especially for the one who are lack of responsible; not care about survival or development of the company and only care about their stable job with stable income These people are the first not to work hard That the company pays such undedicated workers the same as the other will create some problems as bellows: + Create jealousy among active workers with inactive worker + Employees who work hard and enthusiastically and contribute much to the company will gradually lose the enthusiasm to work because they just receive compensation the same as inactive employees As a result, these active workers may not want to work with their full capacity and not want to devote themselves to the company - Employees have no motivation to work so they feel bored and not utilize their full capabilities, resulting in low productivity and low quality work (they get bored with their work and sometimes just make 10 calls per day while they can make up to 90 calls) That workers not work up to their maximum capabilities and labor productivity is low has great impact to the company’s revenue because the sales people made only 10 phone calls per day while they can make 90 calls , accordingly, the company just realize 1/9 its chance of finding new customers and earning revenue - The failure to create incentives for workers to utilize their full capacity is waste of resources of workers, the company and the whole society - Because employees have no motivation to work, they not only not work with dedication but also use their working time for private purposes and for useless work such as computer games, private emails which incur office expenses like electricity cost etc In that way, the company pays their employees but they not work and use working time for private purposes at the company’s cost - Lax discipline: the employees use hours for their lunch (while in other enterprises, lunch time lasts one hour only), after lunch they take a nap and miss some job related goals This not only affects the company brand name but also its revenue - The turn over rate of the company is very high at the rate of 40% per year This is because they company pay its employees basing on a simple job based program and not provide incentives for those who work hard and contribute much to the company therefore some of these have quit their jobs for jobs at other companies with better compensation policy, leading to big damage to the company such as : + Labor force is not stable Especially the company lost its experienced and dedicated workers who wanted to their best in work and committed themselves to the company if the company has had better compensation programs + With their wage policy, the company has made their best workers (worker with high level of experience and wish to devote to the enterprise) leave for other employers including Bubba Gump Shrimp Company’s competitors (the workers have experience, to be more devoted to the enterprise ) + Recruiting more employees: In order to replace the labor of workers that has leaved their jobs, the company must recruit new workers and train them This is not only time consuming but also costing the enterprise huge cost (the recruitment cost, testing, screening and training cost is about 5,500 USD in total) Conclusion: Human resources management of Bubba Guamp Shrimp Company in general and its compensation program in particular have cause its employees lose their motivation to work and lose their commitment to the company The turn over rate is high , productivity is low and the workforce not utilize their full capacity and even not complete their tasks, which seriously causes bad effect on the brand name and company’s business To improve the company’s performance, there should be some changes in human resource management policy, which first of all should focus on changing the compensation policy and motivating employees III Some measures to motivate employees: The need to complete a employee motivation program at Bubba Gump Shrimp Company: For individuals: Every worker having a truly wishes to work and devote themselves to an organization Once a motivation program is fully designed and applied, workers will be energized and be satisfied with the company compensation program As a result, employees will have a great commitment to the company in a long term For business: The employee motivating process has huge effect in encouraging employees to work hard However, business owner often care more about profit and want to minimize all costs However, if a company can have a complete employee motivation program, it can attract high experienced workers in the competitive labor market Energized employees will create high labor productivity and will devote themselves to the best working environment In addition, employee motivation program help create corporate culture and build good relationship between employees and employers On one hand, if the company increases employees’ salary, operating cost will increase and the company’s profit will be lowered by the corresponding amount On the other hand, a suitable wage distribution program will motivate employees to work with energy, improving productivity and finding more customer and finally increasing revenue The extra revenue earned will exceed the increased salary cost, therefore, boot the company’s profit Thus a reasonable compensation program will benefit both employers and employees Some basic solutions to motivate employees at Bubba Gump Shrimp Company: To motivate employees to devote himself for the enterprise, Bubba Gump Shrimp Company need to implement comprehensive solutions as bellows: 2.1 Motivate through salary: The payment must be linked to employees’ work performance of employees to motivate them Salaries and wages of itself is not a motivation Salaries and wages which are too low will not enough for the workers to reproduce the labor power and to care for their children therefore not motivating them to work Or if salaries and wages are just based on simple job based policy, workers will not feel motivated as well, in fact, it may cause rebellion Salary policy creates motivation only when wages can meet workers’ material needs, not cause them to worry about their income Salary payment should be linked to a worker’s job performance, i.e an employee with better contribution should earn more and in accordance with his performance Employees who not complete their jobs or violating labor discipline should get a salary deduction 2.2 Create incentives through bonuses: Policy bonuses: Bonuses are payment in addition to salary and wages to further encourage employees on the aspect that salary or wages can not Bonus is a type of financial incentives that should be given periodically at the end of each quarter or each fiscal year and also for unexpected rewards to recognizes a worker’s outstanding achievements such as completion of an important project, saving material cost or major initiatives 2.3 Motivate through allowances, benefits and services: - The allowance is an amount that businesses pay for workers for their additional responsibilities or because they have to work in unstable or abnormal conditions Allowance has two main effects: +) improving worker’s income: allowance will improve worker’s income as a compensation for a heavier responsibility that they have to take In addition, allowances also help provide employees nonmaterial incentives because they feel that business owners recognize their work’s difficulties and show empathy for their job Therefore, they believe in their employer +) Allowances also help to create equality between workers The laborers working in hazardous complex and dangerous environments should get allowance as additional income to protect themselves from the risks they facing - Welfare and free of charge service are indirect compensation paid in the form of life support for workers: health care, periodic health check, offered lunch which not only ensure workers’ health but also avoiding the situation that worker spend too much time for lunch and affect their work accordingly The provision of welfare activities and services has important implications for both workers and businesses: +) Guarantee workers’ life through improving incomes, supporting medical fees, free health check etc +) Enhance credibility of enterprises on the market and enhance enterprises’ competitiveness in attracting talented and skilled workers +) Improving worker’s material and spiritual life +) Create trust, build trust among employees and enterprises 2.4 Create nonmaterial incentives: A labor not only works for his livings and he stills has other needs that need to be satisfied by some tools other than monetary one In other words they also pursue other intangible value at work So in order to be able to exploit the full potential of employees, managers need to incorporate both material and nonmaterial incentives The nature of nonmaterial incentive is the process of taking care of workers’ spiritual life through a tool other than monetary one A worker’s spiritual needs are much diversified and there is a hierarchy of needs such as: fun at work, excitement, passion to work, fair treatment, and respect.etc Motivating through nonmaterial incentives consists of two main types: Motivating through the job itself and through the work environment - Motivating through job design and accurate job assessment: Tasks that the employee must in their job are very important because workers associate their tasks at work with their goals and their motivation The nature, characteristics, content and working standards are factors that strongly affect job performance of employees If an employee is assigned an important task that meets his qualifications, skills, characteristic and their interests, he will be interested in the job and work with responsibility And if this worker is assigned a more important task which requires a higher level of qualifications and experience; offers higher compensation compared to the current work, he will be satisfied because not only 10 the basic needs are not satisfied but also the other need in the need hierarchy is met Work evaluation is a corporate recognition for its employees’ working process Therefore, it has a direct impact on employees’ compensation, training and development, promotion, discipline.etc An accurate work evaluation of the results stimulates employees to work with energy, strengthen workers’ confidence in their employers, therefore, motivate employees and improve their productivity, efficiency of employees, and commitment to enterprises - Motivating through rational tasks assignment, labor allocation and improving working conditions: The allocation of labor need to be made to ensure that right person is assigned right job and that worker’s strengths are utilized, encouraging them to strengthen their strengths and realize their potentials to devote themselves to the company Besides, labor allocation should help to create a good working environment to promote employees’ capabilities, which will bring higher labor efficiency for the enterprise 2.5 Motivating through training and promotion: The company should select active employees with potentials to train them for advancement and promotion This policy will not only create motivation for the selected employees but also for other staff That the company provides training to employees with good performance and achievements and give these employees opportunities of higher promotion will not only benefit the company itself but also help create great motivation for its workers The more clearly stated and attractive the training and promotion policy is the greater motivation workers will have so that they will work more efficiently to try to improve their productive Therefore, to effectively motivate employees, enterprises have to use 11 comprehensive motivators including training, promotion together with other material incentives Just in that way, employees’ need hierarchy can be satisfied level by level 2.6 Motivating through working environment and building corporate culture: If there are frequent conflict between members in an organization, working productivity will surely not high Normally, a worker spent one forth of their life span at working place Therefore, workplace atmosphere has enormous influential to workers’ spiritual life and their work productivity Motivating employees through the work atmosphere is a very important measure in the system of nonmaterial motivators If a corporate can maintains a friendly working environment where colleagues show respect for each other, provide mutual support, good relationship between managers and subordinate, professional work style and etc, it will undoubtedly provide feeling of comfort to the employees in work As a result, each employee always strives constantly and always maintains an enjoyable and friendly working atmosphere, facilitating to enhance work efficiency 2.7 Motivating through the company’s shares: The company can transfer part of existing owners ‘s shares to its employees through such forms as selling a proportion of existing share to its workers, issuing more shares for its employees at a discount price and pay bonus for employees in form of share In that way, employees are owners of the company as well therefore motivating them to work for their own benefit: have higher responsibility and effort in work, higher commitment to the company This is because workers not only earn a livings for themselves and their family , have learning opportunities and career develop in their jobs.etc but also they own part 12 of the company and therefore need to care for their property by trying to maximum the company’s profitability The general conclusion: The issue of motivating employees in enterprises in general and at Bubba Gump Shrimp Company in particular is very important to the survival and growth of every business Employee motivating ensures the mutual benefit of both employers and employees Just a short sighted view will show that in order to motivate workers, an enterprise need to incur certain expenses to care for its employees (productivity and work quality based salary; bonus for employees with high achievement, welfare policy to take care of workers’ material and spiritual life , professional training for workers and etc) Employers may think that these expenses will lower operating profits and reducing owners’ interest but actually thanks to the above motivators, the employee has been energized to work harder As a result, higher labor productivity is achieved, costs are saved, product quality is improved, more customers search is done and more products are sold In that way, workers will generate more profits./ 13