Motivating employees at bank for investment and development of vietnam JSC (BIDV)

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - NGUYỄN HỒNG HẠNH MOTIVATING EMPLOYEES AT BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM JSC (BIDV) TẠO ĐỘNG LỰC CHO NGƯỜI LAO ĐỘNG TẠI NGÂN HÀNG THƯƠNG MẠI CỔ PHẦN ĐẦU TƯ VÀ PHÁT TRIỂN VIỆT NAM (BIDV) LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH HÀ NỘI - 2019 ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - NGUYỄN HỒNG HẠNH MOTIVATING EMPLOYEES AT BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM JSC (BIDV) TẠO ĐỘNG LỰC CHO NGƯỜI LAO ĐỘNG TẠI NGÂN HÀNG THƯƠNG MẠI CỔ PHẦN ĐẦU TƯ VÀ PHÁT TRIỂN VIỆT NAM (BIDV) Chuyên ngành: Quản trị kinh doanh Mã số: 60 34 01 02 LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH NGƯỜI HƯỚNG DẪN KHOA HỌC: TS TRẦN KIM HÀO HÀ NỘI - 2019 DECLARATION The author confirms that the research outcome in the thesis is the result of author‘s independent work during study and research period and it is not yet published in other‘s research and article The other‘s research result and documentation (extraction, table, figure, formula, and other document) used in the thesis are cited properly and the permission (if required) is given The author is responsible in front of the Thesis Assessment Committee, Hanoi School of Business, and the laws for above-mentioned declaration Date………………………… ACKNOWLEDGEMENT First and fore most I offer my sincerest gratitude to all Professors of Hanoi School of Business, Vietnam National University (HSB, VNU) for giving me knowledge that is used as basement for my thesis I am heartily thankful to my supervisor, Dr Tran Kim Hao whose precious patience, valuable guidance and support from the initial to the final level enabled me to develop an understanding of the subject, thereby applying knowledge into real cases throughout my thesis Without his encouragement and effort, this thesis would not have been completed or written One simply could not wish for a better or friendlier supervisor During the implementation process, due to limitations of experience and research time, my thesis has unavoidable mistakes I would like to receive the comments of the professionals, and friends to complete thesis better TABLE OF CONTENT ABBREVIATIONS i LIST OF TABLES ii LIST OF FINGERS .iii INTRODUCTION CHAPTER 1: THEORY BACKGROUND ON EMPLOYEE MOTIVATION .8 1.1 Overview of motivation 1.1.1 Motivation and employee motivation 1.1.2 Role of employee motivation 1.1.3 Types of motivation 10 1.1.4 Motivation process 10 1.2 Motivation theories 11 1.2.1 Maslow's hierarchy of needs theory 12 1.2.2 Two-factor theory of Herzberg 14 1.2.3 McClelland‘s Achievement Theory 17 1.2.4 Adams‘s Equity Theory 19 1.3 Research model for analyzing employee motivation 21 1.4 Experience about motivating employees of some organizations 23 CHAPTER 2: CURRENT SITUATION OF EMPLOYEE MOTIVATION AT BIDV 26 2.1 Overview of BIDV 26 2.1.1 General information 26 2.1.2 Organizational structure 27 2.1.3 Business line 28 2.1.4 Financial status: 28 2.1.5 Labor force structure 29 2.1.6 Summary of policies and changes to policies for employees 32 2.2 Analyze and evaluate current situation of employee motivation at BIDV – head office 36 2.2.1 Respondent‘s profile 36 2.2.2 Analyzing the situation of motivate employees at BIDV 37 Achievement is an important factor to motivate for employees to work better and contribute for the success of the company Achievement shows successful completion of work, having a good idea or solutions to problems, made revenue for the company… Achievement is at the fourth level in Maslow hierarchy of need, after the physical, safety, and social needs, but it is internal esteem need So, it is necessary for all company to makes their employees get achievement in working progress 46 2.2.3 Evaluate the employee motivation at BIDV 51 CHAPTER 3: RECOMMENDATIONS FOR IMPROVING EMPLOYEE MOTIVATION AT BIDV 55 3.1 Development of BIDV toward 2020 55 3.2 Solutions and recommendations to enhance employee‘s motivation 57 3.2.1.Determining the needs of employees 57 3.2.2 Improving and completing the Key Performance Indicators (KPI) 57 3.2.3 Adjusting the daily workload 59 3.2.4 Set up the suitable training course and training policy to improve knowledge and skill for employee 62 3.2.5 Providing promotion opportunities to employees‖ 64 3.2.6 Setting up the encouragement culture in internal bank itself 70 3.2.7 Encouraging the employees to motivate themselves 72 3.2.8 Maintaining and continuously developing BIDV‘s strengths in motivation 73 CONCLUSION 74 LIST OF REFERENCE 75 APPENDIX 78 APPENDIX 79 APPENDIX 83 BIDV Bank for Inve HR : Human Reso HRM : Human Reso HSB : Hanoi Schoo KPI : Key Perform KPIs : Key Perform MBA : Master of Bu i LIST OF TABLES Table 2.1: Financial performance of BIDV from 2015 to 2017 28 Table 2.2: List of Board of Directors and Management of BIDV 31 Table 2.3: BIDV's employee structure in gender 36 Table 2.4: BIDV's employee structure in age 36 Table 2.5: BIDV's employee structure in qualification 37 ii LIST OF FINGERS Figure 0.1: Research process Figure 1.1: Motivation process 11 Figure 1.2: Maslow's Hierarchy of Needs 12 Figure 1.3: Two factor - theory 14 Figure 1.4: Research model 23 Figure 2.1: Organizational structure of BIDV 27 Figure 2.2: Labor structure of BIDV 30 Figure 2.6: Employee's assessment about BIDV‘s working conditions 38 Figure 2.7: Employee's assessment about BIDV‘s supervision 39 Figure 2.8: Employee‘s assessment about BIDV‘s salary .40 Figure 2.9: Comparison of average income of banks during the first months of the year 2018 41 Figure 2.10: Employees‘ assessment towards BIDV‘s Policy and administration .42 Figure 2.11: Employees‘ assessment towards BIDV‘s interpersonal relations 44 Figure 2.12: Employee's assessment towards BIDV‘s job security .45 Figure 2.13: Employee's assessment toward BIDV‘s achievement .46 Figure 2.14: Employees‘ assessment towards BIDV‘s recognition .47 Figure 2.15: Employees‘ assessment towards BIDVs advancement .48 Figure 2.16: Employees‘ assessment towards BIDV‘s work itself 49 Figure 2.17: Employees‘ assessment towards BIDV‘s personal growth .50 Figure 2.18: Overall employees‘ motivation at BIDV 51 iii INTRODUCTION Rationale Currently, Human Resource Management is becoming more important because employees and their knowledge are the most important aspect affecting productivity of the organization To maintain and develop the human resource and attract the talented employees, motivation is one of the most important tools of Human Resource Management A reality of Vietnam‘s job market is that not many companies can develop clear strategies and plans to motivate the talented, so after working for a period of time at the company and having obtained certain knowledge, experience and relationships, they‘re willing to quit the current job to apply for another job that offers better welfare and career prospect Unfortunately, when enterprises lose the talent, they not only lose employees but also other investments such as training cost, time, customers and even opportunity cost, etc Thus, the enterprises also need to design motivation systems in order to encourage employees to perform as well as to attract and retain potential candidates BIDV was established on 26 April 1957 as Bank for Construction of Vietnam, under the Ministry of Finance At 01 May 2012, BIDV has successfully equitized, converting into Joint Stock Commercial Bank for Investment and Development of Vietnam During the years operating in Vietnam, the bank had a lot of achievements and breakthroughs At the present, BIDV is one of the biggest and strongest banks in Vietnam In the recent years, affected by many factors both in outside such as unstable economy, increasing inflation and difficult stock market, BIDV‘s policies just focused on keeping the stable status for both of employees and the bank but not on boosting the employees‘ motivation and morale And inside, that the bank has some internal problems such as risk in career and human policies has led to the decreasing of many employees both at staff and managers According to the bank's quarterly financial report for the fourth quarter of 2017 at nearly 20 banks including both private and state-owned banks, three banks saw a sharp drop in the number of employees last year, including BIDV, NCB and SHB Remarkably, BIDV last year increased the staff expense from 24.8 million dongs per month to 28.6 million APPENDIX LIST OF QUESTIONS FOR IN-DEPTH INTERVIEWS I) LIST OF QUESTIONS FOR EMPLOYEES Generally, what you think about the current motivation of the company? Individually, what are the reasons make you stay at BIDV for present job? What are the factors make you motivated the most? Why? What are the factors that you think the most important for you? Why? What are the training courses which you are joined? When and where? What you think about your managers and supervisors? What you think about advancement policy of the company? When you achieve a goal, how your managers and co-workers compliment you? What you think about job security and your relationship with peers, managers in company? 10 If you had the right, what would you to motivate the company? II) LIST OF QUESTIONS FOR HUMAN RESOURCES MANAGER Generally, what you think about the current motivation of the company? What are the company‘s motivation policies which impact positively and negatively to employees‘ motivation? Why? What is the payroll calculation method which applied in company? Why does the company apply it? What are the training courses that company provides to employees? When and where are they organized? Personally, what will you to solve the problem? What is the company‘s HR developing trend in the future? 78 APPENDIX EMPLOYEE MOTIATION QUESTIONAIRE First of all, I would like to thank you for your consideration to complete this questionnaire Your provided information is highly useful for me to have full understanding of BIDV‘s employee motivation, which mostly helps to give productive recommendations to enhance employee motivation and performance at BIDV in general You are not requested to provide your name and relevant personal information Any questions making you uncomfortable to answer could be definitely skipped It is committed that all of your information is only used for the research objectives without any other beneficiary or commercial purposes PART A: GENERAL INFORMATION Please indicate your choice by marking the appropriate block with an (X) Gender:   ― Male‖ Age:  ― 22 – 30‖ Qualification:  ― Female‖  ― 31 – 40‖  ― College‖ ― Bachelor‖ Years of experience:  ― < years‖  ― – years‖ 79  ― > 40‖  ― Master‖  ― > years‖ PART B: SURVEY QUESTIONAIRE  Please rate your satisfaction level (from to 5) of these following factors by circle ( ), in which Level represents Totally disagree, Level – Disagree, Level – Neutral, Level – Agree, Level – Totally agree “No.” I Working conditions The working environment at my workpl convenient (location, transportation), factors to health The provided fully My workload is reasonable and working The bank continuously finds way to imp conditions.‖ II Supervision” My rights are always protected by my d My performance is evaluated quite fairl I feel free to ask for advice/support from III My direct supervisor work.‖ Salary” My contribution in work My salary and other monetary benefits 10 applied reasonable for the real sit responsibilities 11 The payroll calculation method is suitab IV Policy and administration” 80 “No.” 12 The bank‘s reward policy is fairly, appro 13 I feel motivated with the bank‘s wage p 14 15 V 16 17 18 Welfare and other policies (insurance, tr etc.) in the bank are suitable and reason My efficient and smooth.‖ Interpersonal relations” My c sociable.‖ My colleagues have mutual respect in w My colleagues often communicate and s the whole bank 19 I feel satisfied with my relationships wi VI Job security” 20 I feel optimistic about the future and sta 21 The policy and allowance for firing is re 22 I have signed long-term labor contract w VII Achievement” 23 24 VIII 25 26 My boss and colleagues recognize my c and appropriate I usually complete my tasks on time wit Recognition” My boss gives me compliments when m done.‖ I get respected and admired from my co I feel appreciated when I achieve or com 27 task.‖ IX Advancement” 81 “No.” 28 29 30 I can see promotion opportunities when working at the bank.‖ I will choose monetary incentives advancement rather than career.‖ Promotion opportunities are given fairly to all employees at the bank.‖ X Work itself” 31 I feel interested in my current job 32 33 XI 34 35 My job requires me to apply specialized know expertise.‖ I need to be creative and dynamic to perfectly.‖ Personal growth” I have chance to improve specialized and knowledge.‖ I have chance to enhance working skills (com skills, teamwork skills, etc.), experience and XII Overall employee motivation” 36 I feel motivated with my current job.‖ 37 I have clearly established my career path in t 38 The longer I work at BIDV, the better I and th be.‖ “PART C: ADDITIONAL QUESTION” Please give some recommendations to improve employee motivation at your bank 82 APPENDIX SURVEY RESULT No I Statement Working conditions The working environment at my workplace are safe, not have harmful factors health II III The bank‘s equipment and facilities equipped and provided fully My workload is reasonable and working time is flexible.‖ The bank continuously finds way to improve its working conditions.‖ Supervision My rights are always protected by my direct supervision My performance is evaluated quite fairly I feel free to ask for advice/support from my superiors.‖ My direct supervisor gives me regular feedback for my work.‖ Salary My current salary is suitable with my talents and contribution in work My salary and other monetary benefits are 10 fair and are applied reasonable for the real situation and my responsibilities 11 IV The payroll calculation method is suitable and effective.‖ Policy and administration The bank‘s reward policy is fairly, 12 appropriate and public 83 No 13 I feel policy.‖ Welfare and other policies (insurance, travel, 14 annual and reasonable 15 V My bank‘s administration procedure is efficient and smooth.‖ Interpersonal relations 16 17 18 19 VI My colleagues at the bank are friendly, helpful and sociable.‖ My colleagues have mutual respect in work My colleagues often communicate and share experiences in the whole bank I feel satisfied with my relationships with managers.‖ Job security I feel optimistic about the future and stability 20 of the bank.‖ 21 I have no fear about the risks in my work I have signed long-term labor contract with 22 the bank.‖ VII 23 24 VIII 25 Recognition My boss and colleagues recognize my contribution fairly and appropriate I usually complete my tasks on time with excellent results.‖ Achievement My boss gives me compliments when my works are well done.‖ 26 I get respected and admired from my 84 No Statement colleagues.‖ 27 I feel appreciated when I achieve or complete an important task.‖ IX Advancement 28 29 30 I can see working at the bank.‖ I will advancement rather than career.‖ Promotion opportunities are given fairly to all employees at the bank.‖ X Work itself 31 I feel interested in my current job 32 33 XI My job requires me to apply knowledge and expertise.‖ I need to be creative and dynamic to finish my work perfectly.‖ Personal growth I have chance to improve specialized and 34 language knowledge.‖ I have chance to enhance working skills 35 (communication skills, teamwork skills, etc.), experience and expertise.‖ XII Overall employee motivation 36 I feel motivated with my current job.‖ 37 38 I have clearly established my career path in this bank.‖ The longer I work at BIDV, the better I and the bank will be.‖ 85 ... motivation for employees at BIDV Objects of research The research‘s object is studying motivating employees at Bank for Investment and Development of Vietnam JSC (BIDV) and giving recommendations... initial name of Bank for Construction of Vietnam, then renamed Bank for Investment and Construction of Vietnam (1981 - 1990), Bank for Investment and Development of Vietnam (1990 2012), and Joint... motivation Therefore, through the topic: ? ?Motivating employees at Bank for Investment and Development of Vietnam JSC? ??, the researcher focuses on studying current motivation situation of the bank,