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ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - NGUYỄN THỊ LAN MOTIVATION SOLUSION FOR LABORERS AT HAI HA KOTOBUKI LIMITED LIABILITY COMPANY GIẢI PHÁP TẠO ĐỘNG LỰC CHO LAO ĐỘNG TRỰC TIẾP TẠI CÔNG TY TNHH HẢI HÀ - KOTOBUKI LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH HÀ NỘI - 2018 ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - NGUYỄN THỊ LAN MOTIVATION SOLUSION FOR LABORERS AT HAI HA KOTOBUKI LIMITED LIABILITY COMPANY GIẢI PHÁP TẠO ĐỘNG LỰC CHO LAO ĐỘNG TRỰC TIẾP TẠI CÔNG TY TNHH HẢI HÀ - KOTOBUKI 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: PGS.TS LÊ ANH TUẤN HÀ NỘI - 2018 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 Management, and the laws for above-mentioned declaration Date………………………… i ACKNOWLEDGEMENT First of all, the author would like to express her deepest sense of gratitude to , who offered his continuous advice and encouragement throughout the course of this thesis Besides, the author would like to express her very sincere grattitude to lecturers from Hanoi National University for great efforts they put into training her in this field She also acknowledges her gratitude to the Board of Directors, Departments and Individuals of Hai Ha - Kotobuki Limited Company for the absolute support to make this thesis possible Nguyen Thi Lan ii TABLE OF CONTENT DECLARATION i ACKNOWLEDGEMENT ii TABLE OF CONTENT iii LIST OF ABBREVIATIONS vi LIST OF DIAGRAMS AND FIGURES vii LIST OF TABLES AND GRAPHS viii Chapter 1: AN OVERVIEW OF RESEARCH 1.1 The necessity of the thesis 1.2 Overview of research situation 1.2.1 Overview of domestic research 1.2.2 Overview of the research in the world 1.3 Thesis aims and missions 1.4 The research subjects, scope and limitations 1.4.1 The research subjects 1.4.2 Research scope 1.4.3 Research limitations 1.5 Research methodology 1.5.1 Data collection methods 1.5.2 Data processing and analysis method 1.6 Novel contribution of the thesis 1.7 Thesis structure Chapter 2: SOME BASIC THEORIES ON EMPLOYEE MOTIVATION 2.1 Basic concepts 2.1.1 Work motivations 2.1.2 Needs 11 2.1.3 Benefits 11 2.1.4 Relations between motivation, needs and benefits 12 iii 2.1.5 Generate work motivation 12 2.2 Role, aims and meaning of work motivation 13 2.3 Theories related to work motivation 16 2.3.1 Maslow's needs hierarchy 16 2.3.2 Two factor theory of Frederick Herzberg 18 2.3.3 Goal-setting theory of Edwin 19 2.3.4 Equity theory of John Stacey Adams 20 2.3.5 Positive reinforcement theory of Skinner 20 2.3.6 Theory X and Theory Y of Douglas McGregor 21 2.3.7 Three need theory of McClelland 22 2.3.8 Expectancy theory of Victor Vroom 23 2.4 Factors affecting work motivation 23 2.4.1 Employee 23 2.4.2 Work 25 2.4.3 Organizations 25 2.4.4 Other factors 26 2.5 Forms of generating work motivation 27 2.5.1 Financial instruments 27 2.5.2 Non-financial instruments 30 2.5.3 The necessity of using properly motivating tools 34 Chapter 3: EMPLOYEE MOTIVATION IN HAI HA- KOTOBUKI LIMITED COMPANY 36 3.1 Introduction of Ha Ha – Kotobuki Limited Company 36 3.1.1 Establishment and development 36 3.1.2 Organizational structure of the company 42 3.1.3 Characteristics of direct labor in the company 44 3.2 The reality of direct employee motivation in Hai Ha – Kotobuki 49 3.2.1 Generating motivation through financial tools 50 3.2.2 Non-financial instruments 67 iv 3.3 Evaluation of direct employee motivation in Hai Ha – Kotobuki Limited Company 77 3.3.1 Achievements 77 3.3.2 Limitations 79 3.3.3 Causes of limitations 87 Chapter 4: SOME SOLUTIONS TO IMPROVE DIRECT EMPLOYEE MOTIVATION IN HAI HA – KOTOBUKI LIMITED COMPANY 90 4.1 Development orientation of Hai Ha – Kotobuki limited company in the coming years 90 4.1.1 Development Strategies of Hai Ha – Kotobuki company for 20182020 90 4.1.2 Orientation of generating work motivation for direct employees in Hai Ha – Kotobuki Limited Company 90 4.2 Some solutions to improve the direct employee motivation in Hai Ha – Kotobuki limited company 91 4.2.1 Improve employee evaluation 91 4.2.2 Improve bonus policy 92 4.2.3 Improve the assessment of employees 93 4.2.4 Improve and diversify welfare policies and services 96 4.2.5 Improve the human resource development and training in the company 98 4.2.6 Extensive propaganda to workers about the role of labor discipline in work 98 REFERENCES 102 APPENDIX v LIST OF ABBREVIATIONS Abbreviations Meaning FS Food safety UI Unemployment insurance SI Social insurance MI Medical insurance C Cost E Enterprises IZ Industrial zone UF Union fund E Employee PFP Prevention and fire protection Ltd Limited vi LIST OF DIAGRAMS AND FIGURES I LIST OF DIAGRAMS No Diagram Diagram 2.1 Diagram 3.1 Content Motivation process Management mechanism of Hai Ha – Kotobuki Limited Company Page 13 42 II LIST OF FIGURES No Figure Figure 2.1 Nội dung Maslow’s need hierarchy Trang 17 Error! Figure 2.2 Equity theory of John Stacey Adams Bookmark not defined vii LIST OF TABLES AND GRAPHS I LIST OF TABLES No 10 11 Table Table 2.1 Table 2.2 Table 2.3 Table 2.4 Table 3.1 Table 3.2 Table 3.3 Table 3.4 Table 3.5 Table 3.6 Table 3.7 Content Maintenance and Motivation Factors of F.Herzberg Influences of maintenance and motivation factors according to F.Herzberg Differences between X and Y theory Influences of internal factors from employees on developing motivation Capital structure of Hai Ha - Kotobuki Limited Company List of products of Hai Ha - Kotobuki Limited Company Statistics of direct labor of the Company in the period between 2015 and 2017 Statistics of direct workers based on qualifications in the period between 2014 and 2016 Statistics of direct workers based on contracts in the period between 2014 and 2016 Statistics of direct workers based on age in the period between 2014 and 2016 Statistics of direct workers based on female in the period between 2014 and 2016 viii Page 18 19 21 24 37 39 44 46 47 48 49 - Create conditions for learning and developing working skills of laborers To better meet the learning needs of the employees by properly organizing the training courses based on actual needs; - Improve the working environment, the relationship between the members of the company on the basis of cooperation, development together, solidarity 4.2 Some solutions to improve the direct employee motivation in Hai Ha – Kotobuki limited company 4.2.1 Improve employee evaluation As analyzed in the current situation, the salary of the company has not been considered as a motivating force for the company's employees Firstly, the new salary is considered quite good compared to other companies in the same industry Second: Employees not understand what the company is paying for them Salaries are the main income of the staff, so it affects the lives of officials and employees As wages become a factor that motivates employees, the company needs to improve payroll Specifically: - Build up the salary calculation for each production unit, which is related to the nature of work The company needs to adjust the salary of employees in the Company to suit the current market salary Based on the market survey of wages in companies in the same region, companies in the same industry to consider the company's salary is competitive with other companies in the same sector, industry From that, develop a salary scale suitable for the company - Conduct propaganda to the staff so that they can understand the salary is suitable for their job, in accordance with working time and working conditions - With a direct labor scale of over 1,000 employees, apply modern payroll software to help managers have high accuracy in salary calculation such as: HRM 2.5 HR software, Payroll software, - Consider raising wages for workers with excellent performance such as experienced laborers, active workers, excellent at work, young staff who have 91 made many positive contributions in work, continuous improvement benefit the Company Regarding the income structure of employees, wages are still the main source of income Therefore, when the company improves the salary policy and raises the salary of employees at a reasonable level, this can ensure the competitiveness with companies in the same industry and same region There are specific policies to encourage workers The salary is the motivation for the employees to stay with the company in a long term, which can contribute to the development of the company To this, the Board of Directors must be aware of the important role of salary policy in motivational instruments for workers, considering the correlation between increasing salary by lowering product prices, creating competitive price of products on the market to develop appropriate salary policy 4.2.2 Improve bonus policy High bonuses contribute to increased income for employees Payment publicity, transparency and fairness has a great encouraging effect on laborers Employees whose efforts are highly appriciated will be likely to have the longterm attachment with the company As a result, they will desire to devote for the development of the Company Applying the reward system at right time, right people and right work does not only contribute to motivation to work for staff, but also help the company limit brain drain It is a effective instrument to record achievements, retain employees, and increase their efficiency Basically, the Company has applied diversified forms of reward, not only material but also mental reward However, the material reward level of the company is still very low Bonus distribution is still subjective of the management The basis for year-end bonuses is currently based on performance appraisal at the end of the year, but not yet elaborated in detail in each case Therefore, finalizing the bonus payment is very important for the Company to encourage and motivate employees to contribute to the Company The company 92 can enrich the rewards in each specific case, with each of them having different desires For example: can be personalized on the company's information channels Setting specific, reasonable reward criteria is very important in reward work Make the awardees and those who have not been rewarded, submit to each decision of the company management Fairness matters a lot to the psychology of rewarded people Based on the analysis of the actual situation of reward work at the Company, the Company only commended the seasonal bonuses, at the end of the year, have not considered the recurrent nature such as considering the monthly reward for employees This greatly limits the positive meaning of bonuses to motivation for employees in the Company The Company should develop regular bonus schemes for ollective Bonus, individual production workers in excess of the norms; personal awards of laborers and excellent labor collectives according to the selection of teams and factories in the company on a quarterly basis; Individuals who are laborers, laborers who produce raw materials, individual laborers or employees of the labor force continuously not violate the labor discipline, not violate the standard of safety and hygiene Products, Regarding the form of reward, the form of reward material, combined with incentive measures as encouragement The recruitment of many criteria, many such forms have a great effect in creating motivation for employees, creating exciting labor emulation in the company The material bonus contributes to the increase in employee income, but also increases the cost of the company Therefore, the Board of Directors should consider in the bonus policy of the Company to both encourage employees both material and spiritual, while ensuring the target price reduction of the company In order to this, the company should promote the saving of raw materials, increase productivity 4.2.3 Improve the assessment of employees The assessment of employees' work is based on two sources of information: direct supervisors and personal assessment not guarantee a 93 comprehensive and objective When evaluating the work performance as the basis for the implementation of the emulation and reward regime, the company should use many sources as the basis for assessing the work of the employees, namely: the immediate superior peers, colleagues, self-evaluation, people from lower level The part of the assessment work is clearer and more accurate For example, develop an evaluation form as shown in Table 4.1 Each worker will then be assessed and scored on the following scale: Table 4.2 Assessment and classification of employee No Total score Category 18-21 A 15-18 B < 15 C (Source: Author’s survey, 2017) This classification is the basis for the calculation of wages and bonuses of employees Based on this classification, the Company develops salary and bonus policies corresponding to grades A, B and C Employees rated Level A are fully paid by the Company, combining incentives both physical and material morale; The employee is assessed at level B paid by the Company; Employees rated C to consider salary deductions in accordance with the Company's regulations Develop performance assessment for direct labor 94 Table 4.1 Performance evaluation form for direct labor Assessment criteria 1.Accomplish task Product quality Requirements Level the Complete 100% by deadline Level A: Complete more than 90% Level B: Complete more than 80% Level C: Reach >=100% of requirement Level A: Reach from 70% to < 100% of Level B: requirement Reach from 50% to

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