EMPLOYEE SATISFACTION IN KOREAN CONSTRUCTION FIRM MAKE A DREAM OF ACTUALITY (M.D.A)

FOREIGN TRADE UNIVERSITY FACULTY OF BUSINESS ADMINISTRATION -*** INTERNSHIP REPORT MAJOR: INTERNATIONAL BUSINESS ADMINISTRATION EMPLOYEE SATISFACTION IN KOREAN CONSTRUCTION FIRM MAKE A DREAM OF ACTUALITY (M.D.A) Class: A15 – Advanced Program Cohort: K50 Instructor: Pham Thi My Dung Hanoi, 4th August 2014 TABLE OF CONTENTS INTRODUCTION - CHAPTER 1: LITERATURE REVIEW - 1.1 Definition of Employee Satisfaction .- - 1.2 Importance of Employee Satisfaction - - 1.3 Factors determining Employee Satisfaction - - 1.4 Measurement of Employee Satisfaction - - CHAPTER 2: CURRENT SITUATION IN CONSTRUCTION FIRM M.D.A - 11 2.1 Introduction of the company: - 11 - 2.2 Analysis of M.D.A case - 13 - 2.2.1 Application of determining factors in M.D.A - 13 - 2.2.2 Herzberg’s Theory application in the case of M.D.A .- 17 - 2.2.3 An SWOT evaluation of Employee Satisfaction in M.D.A: - 20 - CHAPTER 3: RECOMMENDATION - 23 3.1 HR Policy .- 23 - 3.2 Corporate Culture - 24 - 3.3 Herzberg Motivator-Hygiene Factors - 24 - SUMMARY - 26 REFERENCES - 27 - INTRODUCTION This report purpose is to fulfill the internship requirement for the Advance Business Administration Program in Foreign Trade University Moreover, it is also a research paper to show how the student understands of the practical business world In particular, the main focus of this report will be about employee satisfaction study in one actual Korean enterprise; therefore, to create a firm background for later dissertation purpose The content of the report covers the student’s five-week observation of M.D.A Employee Satisfaction in relation with the firm Human Resource (HR) practices and corporate culture The internship happened from July 16 th to July 22nd 2014 During the time, the student has observed and decided to choose Employee Satisfaction as the main topic that she wishes to discuss in her report Since the number of Korean enterprises doing business in Vietnam is increasing, the need to understand both culture and how to implement HR practice effectively in order to achieve the optimal is essential for each company to realize Being aware of the situation, the student has taken advantage of the internship opportunity to gain more insight knowledge and later, to build her foundation in human resource learning Due to the large number of branches that M.D.A Group owns, only M.D.A E&C branch will be considered in this report In order to gain a closer look on what is the situation of employee satisfaction in the construction firm M.D.A, the student decided to research on the two main factors which are the company HR policy and the cultural mixture of Korean and Vietnamese in the firm Among popular methods which are commonly used to evaluate job satisfaction such as Theory X & Theory Y, McChelland’s Theory of Needs, Two Theory Factors, etc… Only Herzberg Motivator- Hygiene Theory will be take priority in this report CHAPTER 1: LITERATURE REVIEW As the economy gains momentum and businesses begin expanding once again, employers are recognizing the increasing importance of retaining their talents who are highly performers in the corporation as well as the opportunities that each employee hold in create prospective outcome in productivity and profitability The key to keeping and raising these valued and potential employees is to maintain a high level of job satisfaction Therefore, HR professionals play an integral role in ensuring the appeal of the firm working environment The practices, policies and the programs that the company establishes are the foundation for efforts throughout the organization to maintain high morale and retain, develop staffs Most people not leave their employers for one single reason alone A combination of what happens in the office normally shapes an individual’s perceptions about their status in particular and about the company in general Therefore, the need to identify what is employee satisfaction and gradually advance their HR practice is the most unpleasant challenge that each HR professional has to face in today international business 1.1 Definition of Employee Satisfaction In 1976, Locke defines Employee Satisfaction or Job Satisfaction or Employee Attitude as a pleasurable or positive emotional state resulting from the appraisal of one’s job or job experiences However, Schneider and Snyder back in 1975 defined Employee Satisfaction as a personal evaluation of conditions present in the job, or outcomes that arise as a result of having a job On the other hand, Dressler in 2007 referred that Employee Satisfaction is a positive feeling each employee have towards their jobs resulting from a valuation of its characteristics A person with high level of job satisfaction holds positive feelings about their jobs, while a person with low level holds negative feelings Employee Satisfaction thus, has to with an individual’s perception and evaluation of one’s job, and this perception is influenced by the person’s unique circumstances like needs, values and expectations Those common facets commonly are the nature of work, supervisions, present pay, promotion opportunities and the relationship within the organization People will evaluate their jobs on the basic of factors, which they regard as being important to them 1.2 Importance of Employee Satisfaction In today business world, employees contribute to the uniqueness and originality of each company, which helps them to distinguish themselves to other competitors Obviously, Employee Satisfaction implies higher quality of service; furthermore, in other industrial fields or construction, Employee Satisfaction assures higher performance which leads to more effectiveness and efficiency in production and operation Employee Satisfaction can have impacts on various aspects of HRM such as Job Performance, Customer Satisfaction, Absenteeism and Turnover Despite the fact that there are some researchers who are in doubt of the relationship between Employee Satisfaction and Job Performance, most of them are convinced that happier workers are more productive workers In the case of service industry, the relationship between Employee Satisfaction and Customer Satisfaction is almost impossible to ignore since the service provided by the staffs themselves reflects the outcome in consumers’ emotion In other non-service industry, the relationship is harder to notice; however, none of the managers can deny its existence since positive attitude at the office does increase the productivity and competencies of the employees Moreover, Employee Satisfaction plays vital part in drawing and preserving consumer satisfaction and loyalty Employees are encouraged to “create fun and a little weirdness” and are given unusual discretion in making customer satisfied; they are encouraged to use their imagination, including sending flowers to disgruntled customers (Robins & Judge, 2013) There is a negative relationship between employee satisfaction and absenteeism It is more than obvious that dissatisfied employees are expected to have high absence rate, which is not ideal for company operation They are more likely to miss work or poorly perform tasks or assignments; not to mention, dissatisfied employees absence can also bring out negative impact on other dedicated workers Lastly, the relationship that job satisfaction having with the company turnover rate is much stronger than that of absenteeism Exclusively, when employees have high “human capital” (high education, high ability), job dissatisfaction is more likely to translate into turnover because they have, or perceive, many available alternatives (Robins & Judge, 2013) 1.3 Factors determining Employee Satisfaction Organizations represent the most complex social structures known today because of their dynamic nature Employees are one of the role players in the organization, and it is through their involvement and commitment that organization becomes competitive The relationship between the organization and people is however interdependent in nature (Boeyens, 1985; Kerego & Mthupa, 1997), and both parties may impact on one another’ ability to achieve positive outcomes Organizational climate, which is the HR policy and Organizational culture can be promoted as the main factors to facilitate the achievement of Job Satisfaction in accordance with the organization optimal goals Each elements contributing the organizational climate as well as culture can serve the starting point in diagnosing and influencing such change within the firm (1) HR Policy Each company who wishes to gain promising and sustainable growth must at first serves its internal customers – the employee- as they play a crucial role in income guarantee In another words, Human Resource Policy can be considered as internal marketing tools for managers as well as the overall scale for them in order to increase Employee Satisfaction Human resource management (HRM) refers to the policies and practices involved in carrying out the ‘human resource’ aspects of a management position including human resource planning, job analysis, recruitment, selection, orientation, compensation, performance appraisal, training and development, and labor relations (Dressler, 2007) Due to Employee Difference in personalities, gender, abilities, knowledge and needs, they tend to judge the same corporate HRM practice in distinctive attitudes Depending on the workers’ perception of the actual HR policy, their reaction will differ, which may lead to satisfaction or dissatisfaction This result is also referred as “the black box problem” The total four part of HR policy which includes Recruitment, Placement & Talent Management, Training & Development, Compensation and Employee Relation can affect employee emotion and perception towards the corporate in different way during specific period of time - Employee recruitment, Placement & Talent Management: Any process for which an organization seeks applicants and attracts potential employee is called recruitment; selection refer to the process by which an organization identifies those applicants with the knowledge, skills, abilities, and other characteristics that will help it achieve its goals (De Cieri & Kramar, 2008, - p.30) Employee Training & Development: Training is a means of arming employees with the skills they need to perform their jobs: it is also often deemed to be representative of an employer’s commitment to their workforce (Storey & Sisson, 1993) Furthermore, Training & Development is also considered as a value added creation to employee at the present time, which promise a huge - boost in employee motivation and engagement towards their jobs Compensation: Pay Structure, Incentives and Benefits: Pay or Salary plays a crucial part in determining employee attitudes The way people are paid affects the quality of their work, their attitude towards customers, and their willingness to be flexible and learn new skills (Milkovich, Gerhart, & - Hannon, 1991) Employee Relations: The general approach to relations with employees can strongly affect a company’s potential to gain a competitive advantage (De Cieri & Kramar, 2008, p.63) Clarke also found that employees are more inclined to stay when they have strong relationships with their work colleagues (2001) In another words, strengthen relationships in workplace can enhance employees’ feelings of belongings, which ensure their commitments and wants to remain longer than they planned In addition, solid network within the corporation can help nurture the organizational culture and help build the company unique brand recognition as well as its service or customer experience (2) Corporate Culture Corporate Culture is described as a pattern of shared basic assumptions, invented, discovered or developed by a given group, as it learns to cope with its problems of external adaptation and internal integration, that has worked well enough to be considered valid, and therefore, is to be taught to new members of the group as the correct way to perceive, think and feel in relation to those problems (Schien, 1985, p86) In addition, the attitudes each employees have towards the culture of their organization has a direct influence on both their level of motivation and the degree of job satisfaction that they would experience Even though globalization has nearly standardized working conditions in each corporation, in Asian business world, original country culture is still the dominant factors shaping Corporate Culture, especially in Confucius countries such as South Korea or Japan There are some characteristics which can be identified in most of Korean enterprises, as the following: - Kibun, Emotion or Mood In Korea, “Kibun”-the mood is very important since they emphasize constant stability in “Kibun” and also keeping good “Kibun” - of others Inhwa, Harmony Following collectivism, Korean people focus on maintaining harmony They perceive that a person has duty to show total loyalty to parents and authority figures, leaders, elders etc… Korean employees are expected to show respect and obedience towards their - employers, managers and supervisors Power Distance & Hierarchy Koreans are collectivists, which mostly refer to high power distance & hierarchy In addition, the high level in power distance also hindrance the reporting system especially when Koreans follow centralized structure, which makes decision-making process less active and - effective Importance of Family Ties and Blood-Based Succession Family control in Korean corporates is one of the essential characteristics in Korean organizational culture High-raking positions in the company are mainly hold by the family members If the company is doing business outside of the country and there is no family member currently working in that branch, those - high-ranking positions will be taken by Korean mostly Gender Inequality Heavily influenced by Confucianism, women are likely to be underestimated in the society As Koreans perceive the women’s main obligations is to take care of the family, Korean women in particular or female foreigners working in Korean firms can hardly to climb up in the power hierarchy 1.4 Measurement of Employee Satisfaction First introduced publicly in 1959, Herzberg new works on “The motivation to work” offered new perspectives of measuring Employee Satisfaction In his research paper released at that moment, Herzberg has created the two factor theory including principles of job attitudes, which are commonly known as Hygiene and Motivator factors He believed that job satisfaction and job dissatisfaction is not the obverse of each other, rather they are best viewed as two separate and parallel continua As a result, the opposite of job satisfaction is not job satisfaction is NO job satisfaction; the opposite of job dissatisfaction is NO job dissatisfaction (1) Hygiene Factors The dissatisfiers serve to provide for the animal side of man’s nature which needs to avoid unpleasant environments This is an intrinsic property of all organisms, which is dictated by the laws of biological evolution Being more capable, however, will not make man less hungry or thirsty or less concerned on status, money, interpersonal relationships, and hygienic working conditions The dissatisfiers are called “hygiene” factors, because primarily they serve to prevent dissatisfaction and they relate to the environment These factors include: Company Policy and Administration: Policies and Administrative practices suggest that the kind of organization policies and practices of administering the people should be the one that can encourage them to perform well This practice must consist of all elements as mentioned above in the HR policy section Supervision: The provision of adequate supervision to workers that will encourage them to be more committed and well aware of their job in the organization Working Conditions: Working conditions requires an organization to provide a work environment that is conductive for workers to perform well In that environment, workers can maintain their most basic needs such as safety, survival, clean or even healthy conditions and comfort to work Salary: Provide salaries and other financial benefits to the workers that will encourage them to be committed to the work in the company Since money plays an 13 2.2.1 Application of determining factors in M.D.A (1) HR Policy Recruitment, Placement & Talent Management: At the present, M.D.A only focuses on recruiting engineers and translators During the internship period, M.D.A E&C was looking for vacancies for translators and vacancy for engineers The most challenging problem that all Korean firms in Vietnam have to face is the lack in qualified translators Currently finding a candidate specialized in Korean language is difficult since most of them are new graduates or intermediate learners who not have enough experience in translating and interpreting in construction field M.D.A currently has interpreters but the workload cannot be met by only three of them since there are ongoing projects, all of which require on-site interpreters for the managers and staffs there Furthermore, the company mostly use external source to get in touch with potential candidates, which customarily are Facebook employment groups or employment websites However, this approach appeared to be less effective and limited in resources due to lack of needed information Like many other Korean enterprises, employment information posts are poorly conducted, which only includes the details and salary or working conditions of the job vacancy but fails to give job seekers the exhaustive data on the company itself Meanwhile, nowadays, candidates are well aware of the company they would apply and work for Moreover, the company provides no Talent Management scheme in order to retain and nurture their talent Especially as the company grows and expands the numbers of ongoing and incoming projects are increasing rapidly, the need to manage and organize human resources to reach their best potential is crucial Training & Development: M.D.A E&C provides no internal training for employees including both supporting department and engineering department For new comers of the company, the first thing they need to learn is the basic routine of the office, which are mainly about how to clean the office, how to serve customers or guests with coffee and tea, how to make a photocopy or a scanned paper for others 14 etc… Later, new comers will be instructed on their routine works by colleagues who share the same position or status as them There is one basic rule that is not to ask detailed job or assignment procedure directly from the boss, which could be perceived as rude in Korean manners In order for further growth in career, each person needs to train and learn specialized knowledge and techniques themselves Compensation: Pay Structure, Incentives and Benefit Figure2.2 M.D.A E&C Pay Structure Deparment Position - Experience Supporting Dept Staff Company Drivers Team Leader Engineer Dept Freshmen Staff (1-3 year experience) Staff (3-5 year experience) Team Leader Salary ( thousandVND) 6,800 ~ 10,000 5,000 ~ 8,000 15,000 ~ 22,000 3,000 9,000 ~ 13,000 15,000 16,000 ~ 30,000 Source: M.D.A E&C (updated in June 2014) Besides abiding to Vietnam Labor Law, M.D.A also provides other incentives for its employees In terms of bonus and incentives, the company provides bonus on overtime work as well as project offer signed In addition, the company offers additional days off for employees on holidays such as Tet, Mid-Autumn or Summer Break Particularly, Korean staffs are given more 15 days in vacation for home returning Finally, the firm also pays for employees’ lunch money, which is 25,000 VND per day for office workers and 75,000 VND per day for site workers Employee Relation: Having the advantages of small and medium company size, M.D.A E&C has warm and friendly relationship between Korean managers and the staffs In addition, despite of the power distance, the age difference between Vietnamese staffs and Korean employers are small, which helps all of them to create more understanding and respectful atmosphere among others Furthermore, the young 15 Korean managers often joke around their employees, creating positive and relaxing environment for workers to be in (2) Corporate Culture “Kibun”, Emotion or Mood: Korean managers most of the time manage to keep positive mood in the workplace Korean team leaders are often found energetic and active in their workplace Some daily routines are found in Korean workers are coming to work early, having coffee in early morning meetings, etc… However, the routines work differently in the case of Vietnamese employee Most of Vietnamese workers come to work on time, cleaning the office and making coffee for their managers while preparing for the morning work Few of them pay attention to maintain good “kibun” or active energy in the workplace Therefore, in the time while there is no Korean manager in the office, people often fall in silence and passive working state However, if there is any existence of Korean managers, they tend to make rather noisy but active working atmosphere, which keeps people more awake and focused on their jobs Inhwa, Harmony: Harmony is not strong in M.D.A E&C workplace Unlike Korean people who emphasize mostly on loyalty and respect towards others, Vietnamese staffs tend to evaluate this issue less seriously There was a case in the Accounting Department when an employee changed the transferring bank account with customers at her own court, which caused lots of catastrophe among the company In Korean manner this action was totally unreasonable, showing ignorance of the company ethics In addition, there are numerous confusions occurring due to the managers’ incorrect assignments while giving specialized tasks for non-engineer employees These events somewhat imply lack of harmony in the current office environment Power Distance and Hierarchy: Since the company is a medium sized firm; therefore, the power distance is not emphasized mostly in the workplace However, 16 there is still certain power distance between the firm chairman and other ordinary staffs The reporting order still follows the centralized management style, where all employees must submit their request to their team leaders in order to get the leaders and the chairman’s approvals Importance of Family Ties and Blood-Based Succession: All the Korean managers in the firm are not in family ties with the chairman, except for the accounting head manager who is the chairman wife’s brother However, in the company organization chart, all of the manager and leader positions are hold by Korean people, which somehow indicates the importance in Korean blood-based ties like the same case in Japanese enterprises Likewise, every morning M.D.A E&C Korean team leader, department heads and the chairman often have a meeting together, which mostly not welcome Vietnamese employees to join Gender Inequality: In construction firm, the discrimination should not be the main subject since it is a common knowledge that most engineers are male It can be noted that in M.D.A E&C office in particular, most of male workers are engineers while all female are working in the supporting department such as planning, HR or accounting 2.2.2 Herzberg’s Theory application in the case of M.D.A (1) Hygiene Factors: Company Policy and Administration: In M.D.A E&C, managers pay considerable attention towards the company policy and administration The company emphasizes mostly on their employees’ punctuality and task complements Besides, the HR managers will take care of other legal and personal issues regarding the company staffs However, there is not policy written or even a code of conduct which is essential for each workers to remember The administration in the office could be easy since the 17 company head office only covers two floors in the building Conversely, to the engineers who are working at the construction sites, administrative practice could be challenging Supervision: Due to the lack of human resource and its small size of office, the company provides less in supervision on their workers, which means all the employees are responsible for their own works while the team leaders pay an eye on the work process consistently Since the office room is small, both employees and managers sit together side by side, which help supervisor to keep record of their employees’ work as well as adjust if problems happens Working Conditions: For workers who are required to work in the construction site, the company offers its private drivers to take them to and from the sites M.D.A also offers great deal in food and drink supply to those workers since working outside the office take much energy and stamina On the other hand, employees who work in the office, mostly in supporting and designing department, receive different treats on working conditions In its office, the company uses some part of its space to build a kitchen and eating table for employees Other appliances such as air-conditioning or heating system are also provided to maintain the most comfortable environment for the staffs to work in Lastly, the company offers free coffee, tea and noodle in order to assist their employees to remain at the best state to contribute Salary: In comparison with other Vietnamese medium firms, the salary offered for M.D.A staffs can be considered higher but nearly the same as other Korea invested firms within Vietnam Personal life of employees is respected and the firm also offers some special days off for employees to take cares of their family when in need Work-Life Balance: In order to support their employees in gain balancing between the time in and off office The firm offers many opportunities for them to take days off, which could take up to one moths off with full salary Family-Friendly benefits are also included in the firm’s HR policy The company provides from 12 to 24 weeks of unpaid leave to all workers employed by the companies for the birth of a child, adoption of a child, or care of a seriously ill child, spouse, or family member, 18 with a guarantee of the worker’s old job or equivalent job upon return However, in order to avoid workers’ abuse of the policy, leaves of absence is associated with fewer promotions and small salary increases Status: The firm supports little in helping the employees to feel their status The employees usually find no comfort or meaning in doing their job They also perceive it as a must-done task to in exchange for the salary they receive Interpersonal relationship with other: The relationship between Vietnamese workers is good and well harmonized Despite being a company mixed by both Korean and Vietnamese, M.D.A still can remain good harmony among employers and employees The managers of the company, who mostly are Korean, are funny and talkative They wonder around the office in every free time chatting and joking in order to understand their workers better In return, the Vietnamese staffs are friendly and open to their supervisors; therefore, the company can always retain its good and comfortable atmosphere within the office Most of the employees working in the office, except for freshmen, have at least two or three year working in the company They know mostly the inside out of the company and create good relationship with managers Since approximately two third of the employees are still in their 20s, 30s and single, the atmosphere in the workplace is quite young and cheerful, which is help in creating positive working conditions for workers The team leaders often show friendliness and care towards their employees except for some occasion the stress was high, driving Korean manager temper short Moreover, the staff interpersonal relationship with their superiors is also good while they can usually express their desire and demand with their leaders under proper manner Having culture mixed working environment, both superiors and subordinates are carefully with their reaction in order to avoid conflicts Job security: Correspondingly, the company post great level of job security Adopting the life-time job from Japanese corporate culture, the company provides high certainty in employee’s remaining in the company In order to keep good workers 19 staying for a long time, the salary policy is also planned to encourage employees with increased number of contribution years in the firm (2) Motivator Factors: Task achievement: The employees confirmed that they have no inspiration from task achievement Under their perspective, completing the task is a must and have no value added in their life Recognition of task achievement: For task achievements, the workers are not usually appraised for their dedicated work but be taken for granted as Koreans perceive that good performance is the show of their employee loyalty and commitment towards to the company Intrinsic interest in the task: The employees not pose much interest in their works Most supporting staffs in the planning department complains that they are always assigned with non-specialties works without any explanation or further instruction or mentoring from others, which causes frustration as well as confusion In long-term basic, this action can cause dissatisfaction and rebel against the manager in particular and the firm in general Since the work of engineers is overloaded, often other supporting staffs need to assist in more specialized works However, due to employee’s lack of knowledge in construction and manager’s ambiguous order, the assignments are confusing and time-consuming to complete; not to mention, the possibility in having disqualified or incorrect results Increased task responsibility: Yet, employees are given more task responsibility in their work, which lead them to work more productively and efficiently Advancement or occupational growth: The company does not emphasize much in employee’s occupational growth and advancement NO training or mentoring program is provided for employees to nurture their talent Not to mention, the firm also has no intention in improving their employees’ language skills in order to enhance effectiveness; therefore, the staffs still have to struggle every time they communicate 20 with their managers Meanwhile, the firm’s translators or interpreters have to suffer from great workload due to the miscommunication as well as paper works The possibility of occupational growth: As mentioned above, the firm provides very few offers in personal growth; therefore, there is a little chance that employees can receive opportunities in occupational growth However, they still can take charge of their own promotion by seeking learning opportunities in specialties and other relevant skills outside the job 2.2.3 An SWOT evaluation of Employee Satisfaction in M.D.A: (1) Strengths: Like other Korean enterprises, especially construction and manufacturing ones, the company has the main competitive advantages of high salary offerings in accordance with an assurance of long lasting jobs Although Korean companies have stopped adopting Japanese lifetime hiring; however, they still emphasize on employees’ commitment to work in the firm for certain period of time in minimum, which is usually to years of working Also, the high level off pay and benefit relative to that of competitors can ensure M.D.A attractiveness and its high quality under employee’s perception The well-designed employee benefit packages, which are bonus and vacations in particular is an effective tool for motivating and retaining employees In addition, the harmony of the firm, which inhere refers as the relationship among subordinates and superiors is great in M.D.A case which encourage workers to be more inclined to stay in the firm In another word, strengthened relationships in workplace can enhance employee’s feelings of belongings, which ensure their commitments and wants to remain longer than they intended One of the possible reasons for this harmonized atmosphere is the company decline in power hierarchy (2) Weaknesses: 21 One of the biggest disadvantages that M.D.A owns is its lacking of welldesigned job description Meanwhile, the job seekers rely on certain data, which certainly comes mostly from company policy in recruiting and job posting If there is any misunderstanding occurred after the job is offered, it would likely lead to great Employee Dissatisfaction and the chance of turnover could also increase In addition, M.D.A HR policies make no room for each employee’s personal growth or promotion for workers who are non-Korean This action in long term could cause great disappointment among employee since this value added creation promises a huge boost in job motivation and engagement (3) Opportunities: It could be nowadays trend is that more and more people are capable of Korean language thanks to the domination of Hallyu trends worldwide In addition, with the incoming one trade area policy applied for ASEAN countries, the possibly that higher qualified workers from other nations will come to Vietnam and be seeking for a job which could be the potential one that M.D.A has to offer Especially, with its high wage and satisfactory working conditions, M.D.A can ensure its attractiveness towards promising labor forces which are coming (4) Threats: However, the company’s promising opportunities are also its threats Since not only more qualified workers will come to Vietnam but also other enterprises who find opportunities in the countries will also enter the market Therefore, the business for construction firms in particular will be more competitive As a result, the company has to come up with better ideas to keep both their customers and employees staying in the same place Especially, with the company’s low level of motivator factors, their likelihood to maintain employee engagement and performance will not be as easy as the day they were 22 In conclusion, the firm poses more threats that it may face than expected Its competitive advantages in gaining talents thanks to salary policy could be no longer effective With its position at the moment, the company has no doubt in attracting talents as well as retaining them However, as the business competition goes tougher; especially when globalization and one trade zone of ASEAN starts to expand, the strengths that the firm holds will be a basic competency only Therefore, the firm itself needs to adopt new policy in HR practices in order to retaining and making use of its own labor resources CHAPTER 3: RECOMMENDATION 3.1 HR Policy Recruitment, Placement & Talent Management: It is recommended that the company should pay more at attention to investing in its recruitment channels in order to get access to higher qualified talent pool In addition, the company could participate in university career fairs that allow them to build talent data base and get more networks Last but not least, the firm could make sure of their internal referral to earn more talented job seekers who are hard to search outside Employee Training & Development: Offering mentoring programs could be a solution for the firm’s lack of training at the present However, providing annual 23 training program could be more affordable and easy for implementation Especially for employees who are willing to pursue higher career path but not be ready for it, training programs are crucial for them to growth By delivering appreciation and care towards individual needs on growth in each worker, the company can expect more in performance and productivity without spending too much on sourcing talents outside Furthermore, the company can offer more opportunities for its staffs to take part in international conference on the field for more insight knowledge of the whole business or help them to develop their own career paths Compensation: Pay Structure, Incentives and Benefits: In comparison to other criteria in HR policy, Compensation was thoughtfully created However, the company can offer more attractive benefits regarding medical coverage Especially to highperformers, the company should show more consideration such as rewards, appraisals or off-site activities Employee Relation: In order to strengthen the bonding between team leaders and employees, M.D.A can offer more parties off work Through that get-together, the company can help employees understand more of its corporate culture and enhance their networks inside the company and maybe outside the company 3.2 Corporate Culture Along with combining both Korean and Vietnamese culture into organizational one, the firm should focus more on identifying and building its own version of corporate culture since the current one is dominated by the crowd’s culture without careful selection Therefore, many disadvantages can be brought along in the combination process that HR managers are not aware of 24 3.3 Herzberg Motivator-Hygiene Factors Hygiene Factor: According to Herzberg (1987) managers need to eliminate the dissatisfaction by doing some of the following: - Fix poor and obstructive company policies Provide effective, supportive and non-intrusive supervision Create and support the culture of respect and dignity for all team members Ensure that wages and salaries are competitive Provide job security Build job status by providing meaningful work for all positions Above all the actions, the firm should focus more on building well detailed policies and higher job security since Vietnamese people mostly emphasized on stability and well paid salary Motivator Factor: Herzberg (1987) added that job enrichment should be considered in motivating people to reach their best job performance The followings are some recommendation that Herzberg offered to managers: - Providing opportunities for achievement Recognizing workers contributions Creating work that is rewarding and that matches the skills and abilities of the - employees Giving as much responsibility to each team member as possible Providing opportunities to advance in the company through internal - promotions Offering training and development opportunities so that people can pursue the positions they want within the company However, the situation is more likely dependable on the nature workforce in each company M.D.A E&C HR managers should consider more whether the employees are more financially motivated or personal growth motivated in order to offer them the most optimal package Since Vietnamese workers are highly perceptive of job security and work-life balance, Korean managers should focus more on the 25 financial motivators in order for the workers to pull out their greatest effort In addition, there small parts in the firm are young workers who also emphasize more on personal growth and achievements In that case, more trainings and developments or career opportunities are more suitable options for them SUMMARY In generally, this report has pointed out crucial factors and measurements which have influence on Employee Satisfaction By applying those factors into the case of construction firm M.D.A, the student can gain a more insight view on how actual company deals with HR policies and practices, especially in Korean enterprises However, the main mistake that M.D.A makes when motivating its people can be found not only in other small and medium companies but also in large organizations The importance of “motivator factors” are mostly ignored which in the short term could bring no harm towards the company; however, there is no guarantee that the same situation can happen in the far future Therefore, in order to getting ahead of the game, each firm needs to be aware of internal improvement, starting from their own personnels 26 REFERENCES Chaney, L H., and Martin, J S., 2011, Intercultural business Communication, 5th 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and Timothu A.Judge, 2013, Organizational Behavior, 15 th Edition, worldwide: Pearson ... challenge that each HR professional has to face in today international business 1.1 Definition of Employee Satisfaction In 1976, Locke defines Employee Satisfaction or Job Satisfaction or Employee. .. challenging problem that all Korean firms in Vietnam have to face is the lack in qualified translators Currently finding a candidate specialized in Korean language is difficult since most of. .. which causes frustration as well as confusion In long-term basic, this action can cause dissatisfaction and rebel against the manager in particular and the firm in general Since the work of engineers