Chapter 3. LABOR MOTIVATION ENHANCEMENT SOLUTIONS AT THAI TUAN JOINT STOCK COMPANY
3.1. Labor motivation directions at Thai Tuan Joint Stock Company
The board of directors has set a goal for Thai Tuan joint-stock corporation being one of the leading textile and garment companies in Vietnam, on the basis of ensuring the living condition, workplace environment and capability development of each and every worker.
For an enterprise, quality is always a top criteria to attract more customers and skilled workers, create more jobs, improve labor policies, enhance the position and affirm the brand’s value. In 2018 - 2019, the company has gained some remarkable achievements: sales volume increased sharply in the luxury segment and silk ao dai, while there was a certain growth of 7.8% of high-end pajamas. To ensure the safe and continuous operation of the production line, directions of the company in coming years are:
- Executing projects on developing fashion products for men, children and export purpose on schedule.
- Continuing to expand branches in 3 regions and open more agents at a rate of 18% per year.
- Renovating distribution channels, complementing private distribution channels and franchising.
1.4.5. Labor motivation directions at Thai Tuan Joint Stock Company Motivation must involve improving the material and spiritual life of workers, ensuring workers’ loyalty to the company and enhancing the labor quality and efficiency. Motivation must create a friendly work environment, mutual trust and respect, equal relationships and collaboration among employees in the company.
In terms of labor motivation directions, Thai Tuan company has determined to build a highly - qualified workforce with the ability in strategic planning, management and long-term commitment to the company. Therefore, it concentrates on improving sustainable policies, transparent assessment, thorough management, deserving remuneration, talented worker attraction, combining with company culture to improve labor efficiency, promote employees' potential, fairness in labor and enjoyment. These mechanisms are followed by the below points of view:
- Motivation is necessary. Motivation policies should not focus on encouraging only some and a few employees, but must be in response to the overall situation of the company to allow fairness.
- Motivation must be practiced regularly in the workplace.
- Employee benefits must be a priority, with the equality in evaluation and treatment well-maintained
- Motivation requires coordination between the Board and the employees themselves to satisfy their own physical and psychological needs, while creating company values as well as saving costs. The applicable methods are periodical or irregular tests, surveys, together with the implementation of specific policies on salaries and the expansion of opportunities for job advancement; constantly innovating the environmental development policies; giving comfortable and enjoyable working conditions, financial supports and worker protection mechanisms.
1.5. Solutions to motivate Thai Tuan Corporation’s employees
With the current employee performance rating situation at Thai Tuan Group Joint Stock Company and the problems this process is facing, there are some solutions that could be considered to enhance labor motivation for employees at the company:
1.5.1. Determine the needs of employees in the Company
To determine the needs of employees, the company can conduct surveys and investigations to complete the labor policy based on the following recommended steps:
- Step 1: Participants propose a survey with the main contents based on Maslow’s theory or use questions to identify what employees want in terms of:
1. Time to work
2. Location when starting work
3. Evaluate yourself when you start working 4. Evaluate yourself after working in the Company
5. Personal development trends and plans in the future
- Step 2: Select subjects and conduct the investigation by each department and department. Besides the investigation according to the subjects of leaders, managers, employees, it is also possible to divide by salary level; by age; according to qualifications; according to seniority, ... the division according to many different criteria will help discover the exact need for each subject.
- Step 3: Processing collected information and organize the level of demand categories. Based on the collected results to serve as a basis for labor motivation measures in the company. In the next survey, the Company can compare and compare the results of 2 surveys to assess the level of the motivational measures.
1.5.2. Meet employees' monetary needs
The first and foremost need of employees in the Company is the financial need, including: salary, bonus and other allowances.
- Regarding salary: Currently, like most joint stock companies in Vietnam today, Thai Tuan still pays salaries for employees according to job titles. That is, people with the same title will be paid equal pay, which could inadvertently cause some negativity in the business such as:
Employees who work less effectively will depend on and not have the spirit of trying.
Employees who work more effectively will lose motivation to work (due to how efficient they are, their monthly salary will be equal to those of less efficient people).
Therefore, the author would like to suggest how to calculate the employee's monthly salary. Accordingly, every month, the salary of employees in Thai Tuan will be received by the sum of the following: basic salary, salary for production results of the whole enterprise, bonus for achievement, which is shown by the formula:
Employee salary = Basic salary + General Bonus + Individual bonus
Basic salary is the salary used to apply different types of social insurance, unemployment insurance, ..., normally agreed upon in the labor contract.
- Regarding bonuses: Based on the financial situation of the Company to decide on bonus mechanism. Currently, the Company has a general bonus scheme at the end of the lunar year which is also the time of awarding most Vietnamese companies with an average bonus of 1 month salary. However, the one-time bonus payment based on the company's completion of the plan at the end of the year should be switched to the bonus scheme every 6 months (ie. twice a year: New Year's Eve and July every year) to increase loyalty. as well as time spent with the business. Performance bonuses are determined based on the employee's monthly assessment to encourage and motivate employees.
The authors also recommend the Company to build bonuses for performance-overcompleted employees who work directly at factories and sales representatives at showrooms to reward contributions and encourage the others to increase productivity.
Table 3.9. Recommended Bonus Amount for Overcompleted Employees
Overcompletion Rate Bonus Amount
5% - 10% 200,000 VND
10% - 20% 300,000 VND
20% - 30% 500,000 VND
- Regarding allowances: The current allowances are mainly work allowances; travel allowance ... The trainee proposed more, with the employees working in 3 branches of Thai Tuan company that do not have production activities so there is no harmful allowance, however the company should consider to allow allowances for night work or overtime allowances for projects due to business characteristics.
1.5.3. Meet the non-monetary needs of employees
Employees at the Company have demands for a working environment and promotion opportunities. Participants propose measures to enhance the employee's ability to meet the environmental needs and promotion as follows:
- About working environment:
Students propose to the Company to change the working environment decoration every 3 months, depending on the business theme of each period. For example: the 27th anniversary of the establishment of Thai Tuan Group Joint Stock Company; celebrates the establishment of the branch ... to reduce the boredom of the working environment.
Replace old facilities (tables, chairs, computers, air conditioners ...) to provide employees with effective working tools.
Create friendly competitiveness among departments and individuals:
Maybe a few employees in a team will complete their job well but in contrast a few employees will not, this more or less leads to the overall results of the team.
Therefore, the method suggested by the author is that the managers should apply the evaluation of emulation among departments and divisions in order to promote teamwork spirit and pay more attention to the final results of the department instead. Only interested in individual results.
- About the employees’ need for promotion
Trainees determine this is a completely legitimate need of the employee and should be properly cared for. The measures the Company can take are to give annual promotion projects to departments. The company requires departments and divisions to give out annual personnel plans and promotions. For example:
Marketing Department has 1 Head and 2 deputy departments; 4 permanent employees (working over 5 years) and 2 employees working less than 2 years. In the fiscal year of 2018, the Head of the Marketing Department proposes a plan of the Marketing Department to promote a long-term employee and a new employee, the Head of the Department must report to the Company for consideration. The company can rely on the overall performance of the Marketing department in 2017 to evaluate, agree to the department's promotion plan or only agree to a promotion plan for 1 employee because the performance of the Marketing department in 2017 is not good, the projects have not been completed.
Requirements for employees: Employees with a KPI score of 4/5 in the previous fiscal year can propose a promotion to their direct management.
Employees who apply for promotion include: KPI of the most recent fiscal year;
work plan and work summary for the year; propose and work development orientation in the next year (if promoted). The Board of Directors will assess directly and draw conclusions in the next quarter of the fiscal year. The time to review the employee's application for promotion is April (the end of the first quarter) and the promotion results should be announced in July (early third quarter).
1.5.4. Applying Management by Objectives (MBO)
Currently, big companies in the world such as Google, Apple, Microsoft…. is pursuing a modern model of performance assessment - MBO (stands for Management By Objectives). With the advantages that this method brings, it will overcome the shortcomings of the quantitative analysis method that Thai Tuan is applying to evaluate the work efficiency of employees. In fact, this approach consists of four basic elements:
- The commitment of the participant.
- Commitment among members towards building common goals.
- The self-awareness of members in the process of implementing common goals.
- Control the implementation of the plan periodically.
Accordingly, the goal of the whole company will be the involvement of managers and employees. This makes the final goals realistic and closer to the business development goals.
The biggest benefit of a corporate governance approach lies in encouraging employees to be creative in the process of defining goals, setting performance standards, or evaluating their performance. Staff. Moreover, the MBO method helps managers keep track of business performance, especially for senior managers.
Figure 3.9. MBO Process
The summary of Chapter 3
Labor motivation at Thai Tuan Joint Stock Company has been built and demonstrated through many policies. Notwithstanding, the assumption that the motivation in the company is gathered and unified into a mechanism, a business rule is not really clear. Chapter 3 of this essay does not only provide constructive options to stimulate the spirit and the labor force of the employees, but also gives opinions on the assessment of employees besides KPI. In the process of establishing a career path, careful analysis and proactiveness are on the part of employees, but the opportunity to expand career and improve qualifications, as well as recognition of contributions and giving details of the job are on the company's side. This is a codependent relationship, mutually supporting and developing only when both sides orient and contribute together. In order to the company's imposing objective, scientific and self-transparent policies, employees ought to make every effort to develop themselves and achieve success at work.
CONCLUSION
The essay "Labor motivation at Thai Tuan Group Joint Stock Company"
clarified the importance of people in the enterprise. Human resources are the factor
that make up the organization, operate the organization and decide the success or failure of each organization. The essay investigates, surveys, and assesses the current status of labor motivation in the company. According to development directions of the company until 2023, the thesis has proposed a number of solutions to perfect the labor motivation policies at Thai Tuan Group Joint Stock Company which are practical applications such as: salary, bonus, apparent financial allowance; an annual salary increase regime based on labor assessment; Tet bonus and unexpected bonus policies; motivational programs by non-financial measures that impact directly on employees including annual holidays, namely Tet or Children's Day, Mid-autumn festival and many other measures to meet the requirements of workers, thereby improving labor productivity.
With the essay "Labor motivation at Thai Tuan Group Joint Stock Company", the group of authors would like to contribute to providing more motivational methods. The good exploitation of human resources will become the company’s advantage in the market, especially in the current fierce competition environment.
Finally, the authors would like to thank sincerely to Mr. Tran Quoc Trung – Instructor of Management subject and Ms. Nguyen Thi Thy - Deputy Director of Human Resource in Thai Tuan Fashion Group Corporation for sending warm- hearted support in order for us to complete this essay.
REFERENCES
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3. General Statistic Organization, 2020, Vietnam textile industry report 3/2020 4. Nicole Gravagna, 2018, Six Fundamental Human Needs We Need To Meet To Live Our Best Lives, Forbes
5. Official website of Thai Tuan Fashion Group Corporation, 15/10/2020 updated, https://www.thaituanfashion.com/
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7. Peter F. Drucker, 1954, Practice of Management, Academy of Management 8. Stephen P. Robbins Mary Coulter, 2016, Management, Pearson Education Limited
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