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THESIS IMPROVING THE MOTIVATIONS OF WORK FOR INDIRECT LABORS AT SONGDA JOINT STOCK COMPANY TABLE OF CONTENTS LIST OF ACRONYMS Acronyms CN Meaning : Branch CB,CNV : Staff CBGT : Indirect labor Song Da : Song Da Joint Stock Company TCT Song Da : Song Da Corporation LIST OF TABLES Table 2.1: Statement of profits and loss of Song Da Joint Stock Company for the period from 2008-2012 Table 2.2: Analysis of financial indicators of Song Da Joint Stock Company Table 2.3: Structure of human resources in Song Da Joint Stock Company Table 2.4 – Criteria for performance appraisal Table 2.5 - Total number of survey participants Table 2.6 - Salary level for indirect labors Table 2.7 - Assessment of the satisfaction level on current salary Table 2.8 - Satisfaction of salary corresponding to each department Table 2.9 - Summary of the average bonus in 2012 Table 2.10 - Level of satisfaction on safety needs Table 2.11 - Level of satisfaction on safety needs according to working years Bang 2:12 - Assessment of the level of satisfaction on working conditions Table 2:13 Evaluation of leaders on employee motivation Table 2:14 - Evaluation of support at work Table 2.15 - Assessment of the collective activities within the company Table 2:16 - Survey results on understanding the vision - mission - core values of the company Table 2:17 - Review the job description for each position Table 2.18 - Evaluation of the powers given based on work position Table 2.19 - Survey on choice of training programs Table 2.20- Evaluation on performance review policy according to working position Table 2.21 - Need for power LIST OF FIGURES Figure 1-1: Maslow’s hirerchy of needs Figure 2-1: Organization structure of Song Da Joint Stock Company INTRODUCTION I Urgency of the topic: Human resources are the greatest asset of any organization, especially for Vietnamese enterprises in coming to the international integration period Good human resources management, especially the creation of effective work force will bring added value, greater economic and sustainable competitive advantage for businesses With a cadre of staff working in management, administration and professional department (referred to indirect labor force), work motivation plays a decisive role in the quality of work and their contribution to the business Therefore, one of the most important tasks of every management team is to understand the employees motivation that will result to policies and actions needed to create, maintain and develop employees working motivation in order to ensure sustainable development of the organization Song Da Joint Stock Company, formerly known as the Water Corpoation under the Song Da Construction which was established in 1983 with its core competency is building hydropower projects However, this traditional trades is more and more shrinking its market In order to ensure a sustainable development, the company has developed the strategic direction of the business sector to engage in new markets such as civil construction works, Thermal Power, Nuclear Power and Railways urban With the company’s development requirements, the author found that the company's human resources is still lacking in terms of both quantity and quality in professional staff and manager positions One of the reason for insufficient human resources that author mentioned above is the incompleted human resources management of the company There are also some shortcomings remained, such as recruitment, training, remuneration and especially the building of effective work motivation for employees To implement the company's strategy in 2020, especially in the process of integration with the world, it requires managers - and the executive officers of the company must have a qualified management skills, appropriate professional qualifications which meet the needs, development spirit, dedication responsibility for the company's overall objectives Hence a deep research on the motivation of the staff and management of the professional staff of the company to develop solutions that encourage and promote effective motivation strategies to meet the company's development is really essential II Research purpose and tasks: 1, Research purpose Thesis products is used for the personal work of the author at his Company with the aim to help Song Da Joint Stock Company’s leader to have more clear understanding about the reality of its work force including management team and professional employees (hereinafter referred to: indirect labor force) As a result, the Company can build and develop an effective human resources management policy to ensure the Company’s objectives strategy upto 2020 will be successfully implemented 2, Research tasks - To systemize the theoretical basis for motivation in the organization; - To analyse the current work motivation status of the indirect workforce in Song Da Joint Stock Company, from which to find out the causes and - limitations; Based on the company's strategy and the study of human resource management that the company has, to propose solutions to improve the efficiency of the indirect work force 3, Research object and scope: i, Research object: Motivation of indirect labor Song Da Joint Stock Company ii, Reseach scope: This topic focuses on some basic details, including: Systemizing theory basis and work motivation theory; Current status of motivation of indirect labor in Song Da Joint Stock Company and the influencing factors; Solutions to improve work incentives 4) Research methodology: Research methodology: Mainly used descriptive statistical methods, statistical analysis, comparative analysis and synthesis combined with survey methods Data Source: Using both primary and secondary data 5) Expected contribution of the thesis: This paper aims to provide managers at all levels of the Song Da Joint Stock Company the necessary understanding of motivation, practical information about the motivation of the indirect officers and employees at the present and the provide possible solutions to improve the motivation of indirect labor in Song Da Joint Stock Company II/ Structure of the thesis: This thesis consists of 03 chapters, namely: Chapter I: Theriotical basis of work motivation Chapter II: Current status of indirect labors’ work motivation in Song Da Joint Stock Company Chapter III: Advanced solution motivation for indirect labor of Song Da Joint Stock Company CHAPTER I: THEORETICAL BASIS OF WORK MOTIVATION 1.1.Some common issues relating to motivation and motivation creation In the current situation, human resources of the organization plays an important role in determining the success or failure of an organization Creating motivation in the labor force is one of the important topics of the human resource management in a business, it help staffs be eager to work and improve their labor productivity 1.1.1 What is motivation? There are many different ideas about the motivation creation in the labor force but they have the most basic things According to Human Resources Management curriculum of Nguyen Ngoc Quan: Work motivation is the desire and willingness of workers to strengthen efforts towards a certain target or outcomes According to Organizational Behavior textbook of Bui Anh Tuan: Work motivation is the inside factor that stimulates the human resource to actively work in the conditions enabling the high productivity and efficiency Expression of work motivation is the willingness, effort, passion to work to achieve the goals of the organization as well as the employees themselves In summary, motivation of the labor force is their effort that comes from themselves Thus the goal of the manager is supposed to is creating incentives for employees to contribute their most effective results for the organization 1.1.2 What is motivation creation? This is an issue in each business management body In order to build and develop the business more and more successfully, the manager team must take all methods to stimulate employee enthusiasm to work and promote creativity in the work process This is the issue of motivation creation for employees in a business So, employee motivation is understood that all of the management measures applicable to the employees in order to create an incentive for employees such as: setting realistic and achievable goals which are consistent employees’ goals, using both physical and spiritual incentives The essential attributor of motivation is goal But in order to set goals that are appropriate to the needs and aspirations of the employees, giving them the enthusiasm, effort during work, managers must identify the employees’ purpose of working Estimating and controlling employee actions can be done entirely through identifying their purpose and needs Management team has to use all of their incentives and creating favorable conditions for their employees to finish work in the best way if they want their staff try all their effort to bring success for the company Both physical and spiritual promotion will create an atmosphere of competition in the workforce which is extremely important for the development of enterprises 1.1.3 Why work motivation should be created? Each individual is a separated world They bring in their own personalities, needs, ambitions and potential difference Their working purpose is different Moreover, their individual needs at different times are not the same Therefore, the task of management team is to gather all different ones towards the common objectives of the organization According to Maslow, human needs are always changing; it leads to their work motivation also changes over time Hence in the working process, there will be a time when the initial needs are not attractive enough; the staff will fall into depression and dissatisfaction that lead to ineffective work and leaving from the organization Therefore, the human resource management team must be flexible and correctly identify the highest demands of workers 10 Nguyen Minh Tuan - IeMBA - B03 run stablly, difficulty in geographical distance and time have been overcomed Training through online system from headquarter to its unit will help the company to quickly equip knowledge to workers and employees in the unit in a comprehensive and effective manner At the same time, it reduces training costs by saving money from travelling and accommodation cost for trainees 3.2.2.6 Motivation enhancement through promotion opportunity: Most people go to work not only for income, but also for other needs such as communication or being recognized , one that demands is high position When the enterprise creates opportunities for them to be advanced, they will work all their best to achieve that position So creating promotion opportunities is one form of work motivation for employees In the environment of Song Da 6, the author found that to enhance motivation through advancement opportunities, company leaders need to consider to implement the followings: - Developing and publicizing the promotion roadmap of indirect labor, release information to each department or individual - Developing common standards and requirements for each position, for example, to be appointed as Head of Technical Department of the company which certification should be get?; Which job position had been undergone?; - Annually review and edit the staff promotions at all levels within the company, to publicize to each department Seriously implement the appointment plan 3.2.2.7 Motivation enhancement through collective activities: The collective activities have spiritual meaning that is very important for all staff of the company in general and for indirect forces in particular With 91 Nguyen Minh Tuan - IeMBA - B03 the character of mostly young staff, the demand for cultural – sport activities and communication needs are great As discussed above, the collective Unions in Song Da is interested but has not met the requirements The survey results showed that most staff wish to be caring and the activities must be organized more professional, to make yearly, quarterly, monthly plan available to each unit, avoid passive inform and only run all the programs of Song Da Corporation At the same time, it should define the purpose, requirements and stakeholders and outline specific and detail activities to release widely people to understand and participate 3.2.3 Role of management team: Through many research and documents on motivation as well as through many years working experience in operations and management of the author, he argues that, ultimately, it is difficult to require employees to work in accordance with the requirements of leadership Hence, what managers can to ensure work assignments are completed is actively prepare eligible and favorable condition relating to work to provide for employee Therefore, managers need to perform the following tasks: 3.2.3.1 What managers need to do: - Create the proper environment - Provide remuneration or discipline when necessary - Increase the real work’s value - Update information for employees - Equitably assign work - Make the job became more interesting rather than stressful - Pay attention to the working conditions of employees, create opportunities for staff development - Avoid the threat of job stability - Indicate the objectives and tasks 92 Nguyen Minh Tuan - IeMBA - B03 3.2.3.2 Motivation enhancement through difficult situation From the fact that for many years, the most difficult period for the units of Song Da is the time when the work was completed and handover preparation Even there is not much work under construction in this time, but for indirect workforce, this is the most difficult time and many work need to be done It is due to they have to process the existing problems in the construction process which lasts several years prior to handing over the project Meanwhile, salary and other costs are being cut due to it no longer generate income Experience shows that this is the time for many indirect officers to leave the company Leaving their organizations does not only force the company to lose qualified professional staff who has get a long term training but also creates a huge workload for those who stay there to complete all the field work that they not keep track or in charge Thus, in this period, the manager's role in creating motivation for employees to retain them is particularly important Faced with this situation, in the view of the author, Managers need to take action to stabilize the mentality of officials and employees, help them to figure out a stable future, in particular: - Try to find information and give a picture of the branch as clear as possible, minimize all the suspicion, wondering - Try to plan for the future - Assign meaningful work for employees - Proactively share with them and create a friendly atmosphere 93 Nguyen Minh Tuan - IeMBA - B03 CONCLUSION From these above analysis, the author draws some following conclusions: Even working in the same organization, the indirect work force’s motivation in each departments, units and branches of the Song Da have different characteristics due to different operating environment, nature of work, facilities Therefore, it is neccesary for leaders at all levels to prepare the research methods to motivate employees to work that are appropriate with specific conditions of individual and units, avoid to apply same method for the entire company Leaders at all level of Song Da have generally identified the importance of creating incentives for employees to work The psychological needs (compensation, policy, health ) of workers are basically guaranteed Spiritual needs are taken into care, but there are some existing weaknesses need to be improved Song Da Joint Stock Company has started constructiing the foundation of a scientific and advance management process and had some early success, especially in the work direction through promotion planning, job description and performance appraisal However, these activities are currently in a period of newly applying that needs regular review and take correct acction to match with the actual conditions of business In overall, indirect labor of Song Da are in good motivation, enthusiasm and dedication conscious to build the enterprise Basically, all the staffs are comfortable and satisfied with the existing physical conditions and desire to work permanently in Song Da Therefore, it is neccessary for the company to satisfy their emotional needs and facilitate their learning, create opportunity to assert themselves It is the responsibility of leaders at all levels of Song Da in the process of building high-quality human resources to serve the company’s development goals Regarding solutions: As suggested in Chapter III, in addition to forms of physical motivation, the effective solution to motivate indirect labor of Song 94 Nguyen Minh Tuan - IeMBA - B03 Da is spiritual encouragement The effective implemention method is to facilitate employee to deeper participate into governance activities: job design, self-determination, self-determination of implementing method, and participate in professional management team Responsibilities of leaders in motivating activities basically focus on organizing activities, management, targeting and especially important is task orientation and fairness ensuring between employees Limitations of the thesis: Research on work motivation for employees is not a new topic in human resource management There were so many topics in this area With a desire to contribute a useful material for Human Resource and Administration Department of Song Da 6, the author focused very much on finding literature research, survey and analysis combined with personal experience to prepare this thesis However, due to extensive research subjects that related to indirect labor force of the whole company, the deadline to complete this thesis is very hard and the limited knowledge and understanding of the author, this thesis content just stops in the analysis of the current situation of indirect labor force motivation in Song Da and propose possible short term solutions rather than building a highly academic model to help leaders at all levels of Song Da to actively perform in its human resource management activities This thesis has not proposed the long -term solutions to enhance work motivation for the company’s indirect labor yet This is a limitation of the thesis and the author wishes to clarify in the next thesis 95 Nguyen Minh Tuan - IeMBA - B03 REFERENCES Dang Quoc Bao (2013), "The solution to improve the effectiveness of human resource management of Song Da Joint Stock Company", the Song Da Joint Stock Company, Hanoi Nguyen Thanh Hoi (2007), " Work Motivation", Ho Chi Minh City University of Economics, Ho Chi Minh City Nguyen Ngoc Quan (2007), Humance Resource Textbook, Publisher of University of National Economics Bui Anh Tuan (2011), Organizational Behavior, Publisher of National Economics University Nguyen Van Tung (2013), Company Strategy of Song Da Joint Stock Company for the period from 2013 to 2015 and vision to 2020 Song Da Joint Stock Company Businessballs.com (2007), Adams Equity Theory, http://www.businessballs.com Businessballs.com, David Clarence McClelland's Motivational needs Theory, http://www.businessballs.com Linda A Hill (2013), Becoming a Manager, Youth Publishing House, Hanoi Rechard Koch (2013), The 80/20 Individual, Youth Publishing 10 House, Hanoi Abhijit Naik (2013), 20-questions-to-ask-someone-to-get-to- 11 know-them, http://www.buzzle.com/, 31/10/2012 Hersey Paul, Hard Ken Blanc (2011), "Organizational Behavior 12 Management", Statistics Publisher, Hanoi Projects4mba.com (2011), five-motivational-factors-everyemployee-wants-from-work-place, 13 http://www.projects4mba.com/ Anna Salanova, Sanni Kirmanen (2010), “ Employee satisfaction and work motivation , research in Prisma Mikkeli”, Mikkeli University of Applied Sciences 96 Nguyen Minh Tuan - IeMBA - B03 97 Nguyen Minh Tuan - IeMBA - B03 APPENDIX OPEN LETTER 18 September 2013 Dear my colleagues, I am Nguyen Minh Tuan - Head of Economic Planning and Investment Department of Song Da Joint Stock Company In order to prepare the thesis, with the purpose to provide a practical research for my company, I have chosen the topic "Improving the motivations of work for indirect labors at Song Da Joint Stock Company” Hence, I hope that all my colleagues will give me the support and cooperation to successfully complete this survey This survey takes approximately 15 minutes to complete, so I look forward to receiving your support to carry out the project Please complete all questions honestly as possible and return it to my business email (Excel, PDF, or Scan file will have equal value) Your provided information is only used for research purposes, so it is not necessary to sign on the questionnaire My topic will be submitted to the company leadership for comments and evaluation Therefore, the useful information provided by you is not only help me to complete thesis but also help my company management team to build reasonable policies to maintain, develop and improve the quality of indirect workforce precious assets - to serve the my company’s development goals If you need further information, please feel free to contact me at the following address: Nguyen Minh Tuan - Economic Planning and Investment Department; Tel: 04 222 533 66; Mobile: 0913 050 923; E_mail: nguyenminhtuan.sd@gmail.com Your sincere, 98 Nguyen Minh Tuan - IeMBA - B03 QUESTIONNAIRE Suggest that you should mark (highlight or circle) in the selected answers NO CONTENT A GENERAL INFORMATION Q1 Q2 Q3 B Q4 SELECTED ANSWER How long have you been working for Song Da 6? - year - years - years > years What is your current position? Manager / Head of the Department Deputy Manager / Deputy Head of the Department Staff Staff Staff Staffn Intern - Probation employees 4 What is the compatibility between your professional training and your current job? Matched Partially related Unrelated CURRENT LEVEL OF SATISFACTION OF RELATING FACTORS TO WORK MOTIVATION In your opinion, have your direct supervisors been interested in their employees motivation? Very interested Reasonably interested 99 Nguyen Minh Tuan - IeMBA - B03 Q5 Q6 Q7 Q8 Q9 Q1 Disregard Completely unawared What is your assessment relating to current company's physical working conditions such as pantry, accommodation, equipment, working tools; car, ? Ensured Satisfied Not good, need improving In your opinion, does the current company's policy meet your demands for work? Satisfied Partially satisfied Unsatisfied How is your assessment on the employees' health regime (site medicine cabinet / insurance / periodically medical examination ) Very happy Satisfied Unsatisfied In your opinion, does your Leader (General Manager, Branch Manager) where you are working know about the work you are doing? Yes No How often you receive an effective assistance of your colleagues at work? Very often Sometime Never In your point of view, the job you are doing is relevant with your existing 100 Nguyen Minh Tuan - IeMBA - B03 knowledge and ability? Pretty simple Relevant Too difficult/complicated Q1 Q1 Q1 Q1 Q1 In your opinion, which of the following factors is the biggest reason to let you to complete assigned work? Economic Benefits Job Responsibilities Motivations, encouragement to be recognized must be completed because it is assigned 3 Do your leaders request you to decide how to perform tasks to complete assigned work by yourselves? Very often Sometime Never How often you are given full powers to complete the assigned work? Very often Sometime Never What you think about the collective activity, interaction between departments and units within and outside the company? Good Normal Just for formal aspect What you think about the company's policy that facilitates the creation, encourages study and improves officers and employees themselves? 101 Nguyen Minh Tuan - IeMBA - B03 Good Unsatisfied Ineffective Q1 Q1 Q1 C Q1 Q2 How you think about the company's currently indirect salary policy? Fair and appropriate Acceptable Unfair and unrealistic There should be a differentiation between different departments How you think about the company's current performance review? Fair and appropriate Acceptable but need some criteria adjustments Inappropriate with company's circumstances In your opinion, how often the performance review of indirect employees is appropriate? As current ( twice per year) One per year One per quarter SOLUTIONS TO PROMOTE WORK MOTIVATIONS In order to get a comprehensive view, could you please evaluate your level of satisfaction with the your current job? Very happy Satisfied Unsatisfied Totally disappointed Among the following reasons, what is your biggest problem when working at Song Da 6? 102 3 3 Nguyen Minh Tuan - IeMBA - B03 Unassured physical conditions (salary, working equipment, computers, vehicles ) Not clearly understand the working requirements and order Can not balance between work and family Working environment (relationships with colleagues ) does not match seft-realized that there is no promotion opportunity in the company Q2 Q2 Q2 Q2 Q2 What is your expected position after 03 years working in the company? Company/Branch manager Department/Branch manager Highest position staff Maintain current position In order too achieve the expected position, what support you need from the company? Give a chance to take additional training on management - business management / professional / soft skills Need more assigned tasks, powers and opportunities to assert my abilities Nothing Do you know how many affiliates (branches and subsidiaries) that Song Da Joint Stock Company currently have and their office address? Yes No Do you know about the data published on the company's Web site about its business plan for the year 2013? Yes No Do you know the "Vision - Mission Core Values" of Song Da Joint Stock Company? 103 2 Nguyen Minh Tuan - IeMBA - B03 Q2 Q2 Q2 Q2 Q2 Yes No In your opinion, which of the following is the most effective method that should apply for your Department? Comply with priority given by leaders Discuss with leader to seek for the most efficient order The leader set deadline and expected output, employees themselves search and implement the work Do you get a clear understanding on the job description that was build by your Department? Yes No Don’t care Which position in the job description of your Department you think that you can take? Can work effectively in all position Except for leader position Current position only How long you intend to work in Song Da 6? Indefinite At least 03 years Under 03 years Immediately leave if another job was found Which is the best appropriate form of training to enhance your skills in your opinion? Medium and long term training courses An available training course (tendering, quality control, audit ) is at the training facilities (schools, centers) 104 2 3 3 Nguyen Minh Tuan - IeMBA - B03 Q3 Q3 The company should organize shortterm management and professional training course which consistent with actual situation of Song Da given by the company's leaders and outside experts What you think about the effectiveness of current company's activities (art, culture, sports, ) Don't care Lacked in number Unqualified organization; unclear plans, objectives and content; less efficient activities Satisfied In your opinion, how these solutions can improve the efficiency of the company's social activities(cultural activities, arts, sports, communist labor ) Must build detailed plans for each month, quarter or year Must outline the specific goals and requirements for each campaign and give more detail information for participants Get more attention from the Company's leaders Special thanks for your on-going supports and cooperations 105 ... social entity People have different levels of needs, while the lower-level needs are satisfied, the higher one will become the driving force Once a existing need is met, another need will appear... from other countries (foreign language teachers) At the same time, they also help to develop a sense of community and team spirit 1.3.1.4 Esteem needs The next level is the need to be respected and... contrast, the majority of older employees prefer a peaceful and safe working place Moreover, employee in the same age may have adventures in different degree 1.2.2.5 Level of mental power consumption:
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