What factors affect to employee’s motivation and performance in GICC

RESEARCH PROJECT (BMBR5103) WHAT FACTORS AFFECT TO EMPLOYEEÕS MOTIVATION AND PERFORMANCE IN GICC? STUDENT FULL NAME : TRUONG CHI THANH STUDENT ID : CGSVN00032701 INTAKE : 2016 ADVISORÕS NAME : Dr BUI PHI HUNG Ho Chi Minh City, August 2017 What factors affect to employeeÕs motivation & performance in GICC? Truong Chi Thanh Ð CGSVN00032701 AdvisorÕs assessment AdvisorÕs signature Page of 56 What factors affect to employeeÕs motivation & performance in GICC? Truong Chi Thanh Ð CGSVN00032701 Executive Summary Human Resource Management is getting more important in the business nowadays, it seem to become a serious problem because people and their knowledge are the most important aspects affecting the productivity of the company One of the main aspects of Human Resource Management is the factors affect employeeÕs motivation and measurement of employee satisfaction with company where they work for Companies have to make sure that employee satisfaction is high among the officers, which is a precondition for increasing productivity, responsiveness, quality, and customer service This will determine the survival and success of the business This dissertation is divided in six chapters; the first chapter is an introduction to the problem, the second chapter is about employee motivation, third chapter is about employee performance and chapter four, five analysis and result about how both types of employee motivation have an effect on performance At last, in chapter six, the conclusion is presented, together with a discussion and managerial implications The research presented will discuss the research and theories of motivation, then prove there is a need for motivation in all workplaces and explain the most effective ways of motivating employees The final question is: What factors affect to employeeÕs motivation and performance in GICC? Page of 56 What factors affect to employeeÕs motivation & performance in GICC? Truong Chi Thanh Ð CGSVN00032701 Abstract The aim of this dissertation is to analyze the level of employee satisfaction and work motivation in Global Investment Consultants Company Limited (GICC) It also deals with the effect the work environment has on employee satisfaction The theoretical framework of this dissertation includes such concepts as leadership, job satisfaction, motivation, rewards and cultural differences The empirical part of the dissertation and the questionnaire were created according to the mentioned concepts The questionnaire also included parts where the questions about expectations of the employee, work environment, incomes, line manager and job organization were asked Based on the research it can be said that the level of employee satisfaction in GICC is high, although there is still a room for improvements One of the biggest strength of the organization is the relationship and communication between the employees and the managers The biggest improvement is needed in the field of the financial rewards, because most of the employees are not showing high satisfaction with it In order to collect data, interview has been done for people from seven different operational as well technical divisions in the organization Focus about to 10 people have been chosen from each group Then a meeting request has been sent to every employee for answer questionnaires with six part about under 40 open questions The conclusions made regarding the research are only valid for GICC and cannot be generalized for other organizations Page of 56 What factors affect to employeeÕs motivation & performance in GICC? Truong Chi Thanh Ð CGSVN00032701 Acknowledgement I would like to thank my supervisor, Dr Bui Phi Hung, for his constant support and guidance I should also like to thank my co-founder, classmates and friends who have also helped ensure that this dissertation was completed Finally, I would like to thank all the employeesÕ GICC company that took the time to complete the questionnaires and participate in this research Page of 56 What factors affect to employeeÕs motivation & performance in GICC? Truong Chi Thanh Ð CGSVN00032701 Table of Contents EXECUTIVE SUMMARY ABSTRACT ACKNOWLEDGEMENT CHAPTER I: 8 INTRODUCTION AND RESEARCH AIMS 1.1 INTRODUCTION 1.2 RESEARCH AIM AND OBJECTIVES 1.3 PROBLEM STATEMENT 10 1.4 RESEARCH PATTERNS 10 CHAPTER II 13 LITERATURE REVIEW 13 2.1 WHY TO MOTIVATE EMPLOYEES 13 2.1 MOTIVATION THEORIES 21 2.1.1 2.1.2 2.1.3 2.1.4 Abraham Maslow’s Theory 21 ERG Theory 24 Two-Factor Theory of Fredrick Herzberg 26 David McClelland’s Theory 27 CHAPTER III 31 RESEARCH METHODOLOGY 31 3.1 TARGET ORGANIZATION 31 3.2 CONCEPTUAL FRAMEWORK 31 3.3 RESEARCH APPROACH 32 3.4 RESEARCH STRATEGY 32 3.5 DESIGN OF INTERVIEW QUESTIONS 33 3.6 INTERVIEW QUESTIONS 33 CHAPTER IV 35 RESULTS AND PRSENTATION OF DATA 35 4.1.1 Gender 35 4.1.2 Age 35 4.1.3 Full-time/Part-time/Contract 36 4.1.4 Work experience 36 4.2 JOB ORGANIZATION 37 4.3 WORKING CONDITIONS 38 4.4 COMPANY INFORMATION 40 4.5 LEADERSHIP 41 4.6 INCOME 42 Page of 56 What factors affect to employeeÕs motivation & performance in GICC? Truong Chi Thanh Ð CGSVN00032701 CHAPTER V 45 DATA ANALYSIS AND FINDINGS DISCUSSION 45 5.1 DATA ANALYSIS 45 5.2 FINDINGS AND DISCUSSION 45 CHAPTER VI 48 CONCLUSION AND RECOMMENDATIONS 48 6.1 CONCLUSION 48 6.2 RECOMMENDATIONS 48 6.3 SUGGESTED FUTURE RESEARCH TOPICS 50 REFERENCE LIST 51 APPENDIX 53 Page of 56 What factors affect to employeeÕs motivation & performance in GICC? Truong Chi Thanh Ð CGSVN00032701 Chapter I: INTRODUCTION AND RESEARCH AIMS 1.1.! Introduction ÒEmployee motivation is the level of energy, commitment, and creativity that a company's workers bring to their jobs Whether the economy is growing or shrinking, finding ways to motivate employees is always a management concern Competing theories stress either incentives or employee involvement (empowerment) Employee motivation can sometimes be particularly problematic for small businesses The owner has often spent years building a company hands-on and therefore finds it difficult to delegate meaningful responsibilities to others But entrepreneurs should be mindful of such pitfalls: the effects of low employee motivation on small businesses can be harmful Such problems include complacency, disinterest, even widespread discouragement Such attitudes can cumulate into crisesÓ (Employee motivation, 2017) Increasing the importance of finding, training talented employees and motivating them to work in companies in recent years is a matter of great concern to businesses Many market research companies have been set up to find the efficiency in their work and motivation to achieve the highest levels of performance for the company This dissertation will investigate and collect the actual results of objective judgment of employees in GICC Then the company management will provide the best solution to create conditions for the staff and the company to achieve the highest consensus The questions focused on the issues most concerned about employees: work environment, wage-related policies, bonuses, promotion opportunities, and management behaviors To find the research results, questionnaires were sent to employees in the office The purpose of this type of research is to find out what factors can be improved in the target company, how to develop the image of the company and how to make the employees enjoy their day-to-day work In this study, it was explained what factors influenced employee Page of 56 What factors affect to employeeÕs motivation & performance in GICC? Truong Chi Thanh Ð CGSVN00032701 satisfaction and which made job dissatisfaction For example, the power of money as motivation will be discussed The characteristics of the GICC work environment will also be analyzed and will evaluate the effectiveness of employee satisfaction This essay will also discuss the importance of understanding different cultures and their effects on job satisfaction General characteristics of the GICC and their effect on motivation will be studied The research question is: are you confidently introducing GICC to those around you and are proud to work in environments like the GICC? What are the values that affect employee satisfaction? What factors affect motivation to work? The main purpose is to find the level of employee satisfaction in the GICC, and to find out which aspects can be improved The analysis of research results is based on different theories in the field of Human Resource Management Different motivations, leadership, and theories of employee motivation are used in explaining and analyzing results 1.2.! Research Aim and Objectives The main purpose of this dissertation was to understand the relationship between employee motivation and performance for timely and reasonable remedies The study also analyzes the main motivational theories and methods used and followed Knowing this approach will allow the organization to decide on how motivational approaches are used effectively In order to so, the following objectives should be achieved: §! How you motivate people? §! Why is it important motivate your employees? §! Investigate the commonly used motivation theories and approaches §! Examine the impact of different approaches of motivation on employeesÕ performance in the workplace and the effect of performance on business productivity §! Investigate the influence of current practices to motivate staff in the GICC company on their employeeÕs performance Page of 56 What factors affect to employeeÕs motivation & performance in GICC? Truong Chi Thanh Ð CGSVN00032701 1.3.! Problem Statement Real estate investment combined with settlement is relatively new to Vietnam These areas are very popular in Southeast Asian countries, especially China Investment in real estate abroad through which, investors receive second citizenship and the possibility of settlement is very high This suits the needs of today's market There is a huge demand for families with children who have, and have plans for their children to study abroad They want their children to have access to the best education and the best future for modern life As the demand for quality of life grows, these organizations should work with the highest possible development potential with high quality and no risk to satisfy the public as it is their main customer And generate high sales and profits In order to achieve high quality, quick payback times and no risky accomplishments, employees must be motivated and satisfied GICC focused on staff motivation as well as the process of building a strong team in the organization They did surveys, analyzed the findings and they came up with solutions and actions for the survey questions But the studies did not get the expected results However, they believe that money is an important motivation for all employees and they are beginning to consider issues of salary increases, bonuses and other payments related to gifts, travel, etc But they did not get the results they wanted from the staff From the analysis of the survey, they found that only about 30% of employees were happy about bonuses and pay raises, but most of them did not Because salary increases only happen once a year and the results stop there They are not aware of the importance of motivation to employees and how this will affect their performance So this study will look at the most used motivation theories, the factors that influence motivation and increase business productivity 1.4.! Research Patterns This research comprises of six chapters which helps in addressing the defined objectives of it There are: Chapter Ð Introduction: Page 10 of 56 What factors affect to employeeÕs motivation & performance in GICC? Truong Chi Thanh Ð CGSVN00032701 50 40 30 20 10 Strongly Disagree Disagree Neither Disagree or agree Agree Strongly Agree On the basis of the questionnaire and the results, it is possible to analyze the situation in the target organization It is very important both for the manager of the company as well as the employees that the relationship between them is good and open In GICC it is obvious that the employees find the relationship with their direct manager very good The relationship between the manager and the employee is very essential when thinking of the job satisfaction and work motivation The employees in GICC also think that it is very easy to communicate with the manager and that the manager shows attention towards the work they get In the work place where communication is easy, the power distance is usually smaller and also employees feel appreciated at work This is also true if the manager is interested in the ideas and thoughts the employees have, and based on the results of the questionnaire, GICC has a very satisfying situation 4.6.! Income Section V: Please think back to the time that you were first hired by this organization until now Please check (x) one scale from to in each case Page 42 of 56 What factors affect to employeeÕs motivation & performance in GICC? Truong Chi Thanh Ð CGSVN00032701 Strongly Disagree (1) 17 18 19 20 Neither Disagree Disagree Agree or agree (2) (3) (4) Strongly Agree (5) You are Satisfaction with your work-life balance You are satisfied with your salary You are satisfied with your benefits package Overall, you are satisfaction with your job at present 30 25 20 15 10 Strongly Disagree Disagree Neither Disagree or agree Agree Strongly Agree Most respondents very interesting with GICCÕs income, 50%, 30 respondents, 23 respondents, 38% agree with their income and 12%, respondent choice no answer Benefits are the other aspect of the rewards systems It is important for the company to have some sets of benefits, because it is one of the motivating factors for the employees It might add satisfaction if the salary is not so high Otherwise, employees of the company Page 43 of 56 What factors affect to employeeÕs motivation & performance in GICC? Truong Chi Thanh Ð CGSVN00032701 show very high satisfaction in the health benefits provided They are also very satisfied with the type of benefits that the company provides It is important that the company designs their benefit options in a structured and understandable way so that the employees will not have any difficulty understanding these options The employees of GICC state to understand the companyÕs benefit options very well It is a very favorable position of the company, since it might reduce the chance of the employee resignation It means that the company provides them in a good way and they are available to almost all employees Page 44 of 56 What factors affect to employeeÕs motivation & performance in GICC? Truong Chi Thanh Ð CGSVN00032701 Chapter V DATA ANALYSIS AND FINDINGS DISCUSSION 5.1.! Data Analysis Interview questions consist of six parts The first part is about the organization The points below this part were there to check how much employees are familiar with GICC family, satisfied with the culture and values that GICC are getting and committed to corporate social responsibility the most The second part was about working area condition, with new design and new environment we hope all employees feel satisfy when they working in The third part was about information of the company, all information about program, products and all process of company must be clear and transparent The four part was about manager task The most important of a company to have a great manager who is interested in the benefits of the employee A good manager who pays attention to developing employeeÕs skills and helping them grow up The five part was about satisfaction with work-life balance and income This is the main part that most interesting Because the result was quite difference The questions were pointing to if the employees feel that their work is recognized and in which way and also if the work recognition affects their motivation or no The last part was about demographics A few information about gender, age and year of working 5.2.! Findings and Discussion An analysis was made for the interviews conducted for the 65 employees in the organization and the fact that 60 employees were interviewed Based on some of the results collected, will be discussed in the following paragraphs Page 45 of 56 What factors affect to employeeÕs motivation & performance in GICC? Truong Chi Thanh Ð CGSVN00032701 Interviews show that most of the participants are satisfied with the benefits the company offers them They are very happy about innovation with the new design creating a completely modern working space that creates a friendly feel Also, rely on them saying that the financial aspects really affect their performance for the job but mostly, say no From the above findings we can say that it is not something that anyone in financial satisfaction with whatever they get from the company will affect their work in a positive way pole As most of them are financially satisfied but they find it does not affect their performance either positively or negatively Therefore, it is not a motivating factor in the company Most of the participants feel satisfied and motivated when they get extra duties and responsibilities So, assigning new roles to people is a good factor to motivate them According to that, the findings shows that more than half of employees sometimes get feedbacks from their management about their work and again big number of them replied that their work is recognized and appreciated by their managers Following up with employees and their feeling that they are encouraged toward the work and they are trusted to the work is a big motivation factor Giving employees bonus and salary increments every year doesnÕt really work in motivating employees As researchers entitled, there are factors and criteriaÕs management should consider before selecting and deciding on the motivation approach for their employees So, employees are not in good condition regarding the appreciation and praise aspects and approaches Back to the literature review, almost all researchers agrees that for managers to be motivators, they have to be leaders As, appreciation, recognition and support is main characteristics of a leader, so leaders will be more motivating their employees than managers (Holly, Buttner and Dorothy, 1997) The literature review examined the relationship between employee motivation, performance and business performance and productivity which showed that there is a positive relationship between them If employees are motivated, they will be performing with rate which will highly positively affect business productivity and performance Page 46 of 56 What factors affect to employeeÕs motivation & performance in GICC? Truong Chi Thanh Ð CGSVN00032701 The organization case shows that employees are not motivated enough to perform with high rate as it affecting the business productivity The main focus of motivation on employees is money approaches It is considering money and wages is the motivator for their employees By doing this they are not getting the desired outcome and people are demotivated The data analysis showed that it is obvious that employees are not financially and money wise satisfied but it is not the only approach they need Most of the employees are satisfied with allowances like housing and leave entitlements Employees also see that the main factor influencing them is the management communication style and appreciation which motivates them the most So, management should keep in mind that the way of communication is fatal for choosing the motivating approach Page 47 of 56 What factors affect to employeeÕs motivation & performance in GICC? Truong Chi Thanh Ð CGSVN00032701 Chapter VI CONCLUSION AND RECOMMENDATIONS 6.1.! Conclusion Motivation is a complex concept and depends on whether the organization uses it effectively Motivate employee is an effective tool to contribute to the success of the business thanks to the solidarity of all employees in the company If a manager takes time to understand the needs of his or her employees, recognition can be very helpful Managers are the resources for employees and they should make sure that their work environment is pleasant and desirable This will help the productivity and improvement of their employees If the above suggestions are implemented properly, managers will have a fully motivated team 6.2.! Recommendations Based on the literature review, interviews and analysis done and the discussion it is clear that if employees did not motivate and hence are not performing well which affecting business performance and productivity The data analysis showed that human resource management will not consider any criteria and factors when choosing the motivation approach for their employees The best way to approach of motivation is income But, unfortunately it is not affecting employeeÕs performance positively and they are demotivated Organizations need to be aware that money and financial allowances and facets can motivate their employees to some degree, but let them motivate and satisfy and influence productivity Of the business in a positive way The social reality is that finances are the number one priority in most businesses today but it is not all Therefore, other motivational Page 48 of 56 What factors affect to employeeÕs motivation & performance in GICC? Truong Chi Thanh Ð CGSVN00032701 approaches and elements such as appreciation, support, etc., should be considered, bringing about more humanitarian effects Furthermore, managers should at the beginning choose the most suitable motivation theory for their company and they move to the approaches step For the organization the best motivation theory is Maslow Hierarchy of Needs will be useful as almost every employee has different needs than the other And by being aware and following a motivation theory will make the roadmap and the process clear in front of the company and division departments So, whoever is motivated financially and other need by other motivates way Company requires motivating they by depending on the second step in the pyramid which is safety needs and when they are satisfied on this, they need to move to the upper level of the pyramid This at the end will give the human resource management output and outcomes that really will help them a lot to move to the next processes Also, employees will be motivated and will perform highly toward the work which will increase business performance and productivity However, implementing the motivation employees in the organization is a high positive output process, it has to be done with high concentration and care from the decision makers It also needs to be done with a high priority task and awareness should be there for employees The recommended solution in the GICC will definitely lead it toward high motivated people and employees with high rate of performance and hence enhance business performance and productivity Start with the most accomplished performers in a year, so they can see that their contributions are worthy and worthy of respect This is also an example for other members to strive and follow Moreover, those recommendations are widely investigated in the literature review as good practices to achieve the high motivated and performance employees Not only motivated people will enhance the business productivity, but also employees will be more innovative and creative which might find other beneficial ways of doing the work with considering cost saving and high quality Page 49 of 56 What factors affect to employeeÕs motivation & performance in GICC? Truong Chi Thanh Ð CGSVN00032701 6.3.! Suggested Future Research Topics As most of the researches have been done on motivation theories and the effect of it on the business and employee performance, researches on motivation approaches and the techniques to be followed to motivate employees in an organization can be done On the other hand, future researches can be done on how to get individual needs and requirements Tools or interviews can be used to get the information required on individual needs In addition, research on motives can be done on the social and community side For example, anything that affect employee productivity before social networking habits like using face book during business hours or other things Therefore, a future study of different motivational approaches and based on current social trends is needed and it will again be of real value Page 50 of 56 What factors affect to employeeÕs motivation & performance in GICC? Truong Chi Thanh Ð CGSVN00032701 5.3.! Reference List 2017, Employee motivation, Inc, retrieved on 30 July, 2017, 2017, Chris Witt, How to motivate and inspire your people in difficult times, Reliable Plant, retrieved on 30 July, 2017, 2017, Recruiting Specialist, The Importance of Employee Motivation, America's Job Exchange, retrieved on 22 July, 2017, 2017, Research Methodology, Study Skills, University of Manchester, retrieved on 22 July, 2017, < www.humanities.manchester.ac.uk/studyskills/assessment /methodology.html> 2011, Increasing Employee Productivity: The Strategic Role That HR Essentially Ignores, retrieved 02 August, 2017, Patty Mulder, 2014, ERG Theory, ERG theory of motivation Explained, retrieved 01 August, 2017, 2017, Making the Most of the Management Theory of David McClelland, business.com, retrieved 28 July, 2017, 2015, Rod Baxter, Principal, Value Generation Partners, retrieved 01 August, 2017, 2012, Ryan, R., and Edward L Deci "Intrinsic and Extrinsic Motivations: Classic Definitions and New Directions." Contemporary Educational Psychology, retrieved 03 August, 2017, Page 51 of 56 What factors affect to employeeÕs motivation & performance in GICC? Truong Chi Thanh Ð CGSVN00032701 2017, Extrinsic Motivation, Changing Minds, retrieved 15 July, 2017, 2012, Four Motivations, Changing Minds, retrieved 22 July, 2017, 2012, Job Satisfaction Statistics, Career Vision: Career Counseling, Guidance, Planning, and Assessments, retrieved 22 July, 2017, 2017, Motivation, Hodder Education, retrieved 02 August, 2017, Page 52 of 56 What factors affect to employeeÕs motivation & performance in GICC? Truong Chi Thanh Ð CGSVN00032701 Appendix 5.4.! Interview Questionnaires I am the student from Open University of Malaysia, this is a part of my dissertation I am doing a survey about ÒWhat factors affect to employeeÕs motivation & performance in GICC?Ó I appreciate your contribution and thank you very much! Section I: Please read each statement about your organization and indicate how strongly you agree or disagree with it Please check one (x) scale from to in each case Strongly Disagree (1) You are encouraged to take initiative You like GICCÕ culture and values GICC is really committed to corporate social responsibility You are proud to work at GICC Page 53 of 56 Neither Disagree Disagree Agree or agree (2) (3) (4) Strongly Agree (5) What factors affect to employeeÕs motivation & performance in GICC? Truong Chi Thanh Ð CGSVN00032701 Section II: Please read each statement about working conditions and indicate how strongly you agree or disagree with it (Check (x) one scale from to in each case) Strongly Disagree (1) Neither Disagree Disagree Agree or agree (2) (3) (4) Strongly Agree (5) You are satisfaction with the physical working conditions You feel involved in decisions that affect you in your work Overall, your department operates efficiently Section III: Please read each statement about information of your company and indicate how strongly you are satisfied or dissatisfied with it Please check (x) one scale from to in each case Strongly Disagree (1) 10 You are aware of the job opportunities within GICC You are satisfied with career opportunities How would you rate the service your department gives to its clients? Page 54 of 56 Neither Disagree Disagree Agree or agree (2) (3) (4) Strongly Agree (5) What factors affect to employeeÕs motivation & performance in GICC? Truong Chi Thanh Ð CGSVN00032701 Section IV: How willing are you to the following with your manager? Please check (x) one scale from to in each case Strongly Disagree (1) 11 Neither Disagree Disagree Agree or agree (2) (3) (4) Strongly Agree (5) Your manager communicates well with the team Your manager builds collaboration and 12 effective relationships with other GICC units/department 13 14 15 16 You are satisfied with the recognition of your performance Your manager organizes the work of the team well Your manager pays attention to developing your skills and helping you grow Your manager gives you regular feedback on your performance Section V: Please think back to the time that you were first hired by this organization until now Please check (x) one scale from to in each case Strongly Disagree (1) 17 You are Satisfaction with your work-life balance 18 You are satisfied with your salary 19 You are satisfied with your benefits Page 55 of 56 Neither Disagree Disagree Agree or agree (2) (3) (4) Strongly Agree (5) What factors affect to employeeÕs motivation & performance in GICC? Truong Chi Thanh Ð CGSVN00032701 package 20 Overall, you are satisfaction with your job Section VI: Demographics Please provide the following demographic information by checking the appropriate boxes Gender Male Female Status Full-time Part-time Contract 20 to 29 years 30 to 39 years 40 to 49 years 50 to 59 years 60 years and over Age How long have you been in your current organization? ÉÉÉYear ÉÉÉmonth Thank you! Page 56 of 56 ... motivating employees The final question is: What factors affect to employeeÕs motivation and performance in GICC? Page of 56 What factors affect to employeeÕs motivation & performance in GICC? ... problem being investigated, and to explain any new understanding or insights about the problem after you''ve taken the findings into consideration.Ó (RV Labaree, 2009) Page 11 of 56 What factors affect. .. research into what drives high performance organizations He said that: ÒIÕve identified the following 22 factors, Page 15 of 56 What factors affect to employeeÕs motivation & performance in GICC?