Tài liệu Enhancing employee motivation at anphanam international co., ltd

ACKNOWLEDGEMENT Firstly, I would like to express my gratitude to my supervisor, Associate Professor Dr. Tran Thi Thu who provided me with quality and friendly advisory especially and encourage me to finalize this thesis. I also want to express my special thanks to all professors, doctors, lecturers, tutors at Business School, National Economics University (BSNEU) who conveyed me a lot of knowledge, experience in EMBA program, intake 9. I sincerely thank to all managers and all my colleagues at Anphanam International Co., Ltd who help me a lot to fulfill the questionnaires and survey, give me valuable information, advices for implementing my thesis. Lastly, My sincere thanking goes to my classmates, my parents, my husband and all my family for their suffering, support, encouragement while studying in the National Economics University since 2010 and throughout until graduation. TABLES OF CONTENTS ACKNOWLEDGEMENT TABLES OF CONTENTS ABBREVIATION.................................................................................................... LIST OF TABLES................................................................................................... LIST OF FIGURES................................................................................................. EXECUTIVE SUMMARY...................................................................................... CHAPTER 1: INTRODUCTION........................................................................... 1.1 Rationale............................................................................................................. 1.2 Research Objectives........................................................................................... 1.3 Research questions............................................................................................. 1.4 Research methodology....................................................................................... 1.4.1 Research process:......................................................................................... 1.4.2 Data collection............................................................................................. 1.4.3 Data Analysis............................................................................................. 1.5 Research Scope................................................................................................. 1.6 Thesis Structure............................................................................................... CHAPTER 2: THEORETICAL FRAMEWORK ON EMPLOYEE MOTIVATION..... 2.1 Definitions and roles of employee motivation................................................ 2.1.1 Definition of employee motivation............................................................ 2.1.2 Roles of employee motivation.................................................................... 2.2 Main theories on employee motivation........................................................... 2.2.1 Maslow’s hierarchy of Needs..................................................................... 2.2.2 Herzberg’s Two factor Theory................................................................... 2.2.3 Adam’s Equity Theory............................................................................... CHAPTER 3: CURRENT SITUATION OF EMPLOYEE MOTIVATION AT ANPHANAM INTERNATIONAL CO., LTD............................................... 3.1 Overview of APNI and its characteristic affecting employee motivation ................................................................................................................................. 3.1.1 Establishment of APNI.............................................................................. 3.1.2 Main business fields and development....................................................... 3.1.3 Organizational Structure............................................................................ 3.1.4 Human Resource Structure......................................................................... 3.2 Analyzing hygiene and motivation factors influencing on employee motivation at APNI................................................................................................ 3.2.1 Employees’ assessment about the important of hygiene and motivation factors................................................................................................................. 3.2.2 Analyzing the Hygiene factors on employee motivation at Anphanam International Co., Ltd......................................................................................... 3.2.3 Analyzing the motivation factors on Employee motivation at Anphanam International Co., Ltd......................................................................................... 3.3 Summary of findings of the research on employee motivation at Anphanam International Co., Ltd........................................................................ 3.3.1 The motivation factors............................................................................... 3.3.2 The de-motivation factors and reasons....................................................... CHAPTER 4: SOLUTIONS AND RECOMMENDATIONS TO ENHANCE EMPLOYEE MOTIVATION AT ANPHANAM INTERNATIONAL CO., LTD ................................................................................................................................. 4.1 Orientation for human resource management of APNI................................ 4.2 Solutions and recommendations for APNI to enhance employee motivation....... 4.2.1 Improving working conditions in APNI..................................................... 4.2.2 Adjusting in salary policy.......................................................................... 4.2.3 Set up a standard and comprehensive recruitment procedure..................... 4.2.4 Improving the interesting and challenging work........................................ 4.2.5 Establishing effective feedback system for managing at APNI.................. 4.2.6 Establishing standard performance appraisal system to ensure equity............... 4.2.7 Improving insurance and health policy...................................................... 4.2.8 Improving welfare, other benefit and reward policy and recognition program ........................................................................................................................... CONCLUSION...................................................................................................... REFERENCES....................................................................................................... APPENDIX ............................................................................................................ 1 ABBREVIATION APNI : Anphanam International Co., Ltd HRM : Human Resource Management PA : Performance appraisal PO : Purchase Order S&B : Salary and benefit 2 LIST OF TABLES Table 1.1: Data collecting methods....................................................................... Table 2.1: Combination of three theories.............................................................. Table 3.1: APNI’s Human resources structure by sex.......................................... Table 3.2: Human Resource structure by age....................................................... Table 3.3: Human resource structure by qualification.......................................... Table 3.4: The important level of Hygiene and Motivation factors...................... Table 3.5: Employees’ satisfaction on working condition.................................... Table 3.6: Employees’ satisfaction on salary and other welfare internal equity ............................................................................................................. Table 3.7: Employees’ satisfaction level on salary and other welfare external equity................................................................................................... Table 3.8: Salary in comparison with other companies........................................ Table 3.9: Employees’ satisfaction level on salary and other welfare with their contribution.......................................................................................... Table 3.10: Employees’ satisfaction level on company policy............................... Table 3.11: Employees’ satisfaction level on supervisor........................................ Table 3.12: Employees’ satisfaction level on the fairness of supervisor in treating with employees....................................................................... Table 3.13: Employees’ satisfaction level on interpersonal relation....................... Table 3.14: Employees’ satisfaction level on recognition....................................... Table 3.15: Employees’ satisfaction level on performance appraisal..................... Table 3.16: Employees’ satisfaction level on work itself........................................ Table 3.17: Employees’ satisfaction level on challenging, interesting of work...... Table 3.18: Employees’ satisfaction level on autonomy of work........................... Table 3.19: Employees’ satisfaction level on responsibility................................... Table 3.20: Employees’ assessment about responsibility of employees and managers when working in group........................................................ Table 3.21: Employees’ satisfied level on advancement......................................... 3 Table 3.22: Employees’ satisfied level on personal growth.................................... LIST OF FIGURES Figure 1.1: Research Process................................................................................... Figure 2.1: The needs – Desires – Satisfy Chain.................................................... Figure 2.2: Maslow’s Hierarchy of needs.............................................................. Figure 2.3: Two factors of Needs........................................................................... Figure 2.4: The Interrelation between Needs and Motivation Factors................... Figure 2.5: Adam’s Equity Theory diagram – job motivation............................... Figure 3.1: APNI organization structure................................................................ Figure 3.2: APNI’s human resource structure by sex............................................. Figure 3.3: APNI’s human resource structure by ages........................................... Figure 3.4: Human resource structure by qualification.......................................... Figure 3.5: The average score of employees’ satisfaction level on working condition ............................................................................................................. Figure 3.6: The average score of employees’ satisfaction on salary and benefit internal equity...................................................................................... Figure 3.7: The average score of employees’ satisfaction level on salary and other welfare external equity............................................................... Figure 3.8: The average score of employees’ satisfaction level on salary and other welfare with their contribution................................................... Figure 3.9: The average score of employee’s satisfaction level on company policy ............................................................................................................. Figure 3.10: Employees’ satisfaction level on the fairness of supervisor in treating with employees....................................................................... Figure 3.11: The average score of employees’ satisfaction level on interpersonal relation................................................................................................. Figure 3.12: The average score of employees’ satisfaction level on recognition..... Figure 3.13: The average score of employees’ satisfaction level on performance appraisal.............................................................................................. 4 Figure 3.14: Employees’ satisfaction level on work itself....................................... Figure 3.15: Employees’ satisfaction level on responsibility................................... 5 EXECUTIVE SUMMARY Man is one of the three basic elements to carry out the working process, so employee motivation plays an important role for the success of a company. Especially, in today’s competitive environment, to survive and develop, organizations need to attract talent candidates, reduce labor turnover and increase productivity by enhancing the motivation of employees. APNI is a medium company, operating in the fields of trading, import – export and services and gets so much achievement after 5 years of establishment. However, the employee motivation at APNI is not good, led to dissatisfaction of employees and low productivity, even though many of them want to quit job. There were 83% employees joined the survey, and the result about their satisfaction level is under satisfied level. From these above reasons, the author has decided to implement the research on “Enhancing Employee motivation at Anphanam International Co., Ltd” So, the objectives of the thesis are: - To synthesize relevant theories on employee motivation with APNI. - To analyze current situation and find out the main factors motivating as well as de-motivating employee at APNI. - To give solutions and recommendations to enhance employee motivation at APNI. During the research process, the author conducted in-depth interviews with 9 peoples (in which: 5 employees, 2 managers and 2 ex-employees) and survey 50 respondents at APNI about the relevant issues about enhancing employee motivation. The result of the survey shows that the employee motivation at APNI is not rather good. At APNI, some hygiene factors are not ensured and some motivation factors are not concentrated on. Salary policy is not good in current salary, salary 6 increasing policy, reward policy. Some working conditions are not good. Welfare and other benefit policy are lower than many others company. Recruitment policy and human resource policy is still ineffective and inappropriate. The recognition is rather bad and unfair. Some time, the work is not really interesting and challenging. PA policy is not specific and ineffective. Lastly, there are few opportunities for employees to get promotion in working process at APNI. Besides, some motivation factors are really good such as office location, business transportation, security in working place, training program, relationship between employees as well as employees and managers. From the finding, the thesis recommended some solutions for APNI to enhance employee motivation as follows: - Improving working condition at APNI - Adjusting in salary policy - Set up a standard and comprehensive recruitment procedure - Improving the interesting and challenging work - Establishing effective feedback system for managing at APNI - Establishing standard performance appraisal system to ensure equity - Improving insurance and health policy - Improving welfare, other benefit and reward policy and recognition program The author expects that the research will contribute to the APNI’s human resource policy and help the manager to recognize and consider more about the important of “enhancing employee motivation” in developing process of the company. 7 CHAPTER 1: INTRODUCTION 1.1 Rationale Human Resources Management always plays an important role in any organizations. Each organization can only obtain their objects when they have the employees working enthusiastically, efficiently and creatively. The more motivations the employees get from the organizations, the more effort they try to contribution to the organizations. So, employee motivation is one of the most priority issues of any organization all over the world as well as Viet Nam. But in fact, many organizations appreciate employee motivation and gain much more success in implementing all objectives, while the others do not realize and pay attention on employee motivation in building up the organization’s overall strategy. Anphanam International Co., Ltd (abbreviated as APNI) was established in 2007, with headquarters at No. 20, Bo De Street, Long Bien district, Hanoi. APNI is a small trading company, operating in the field of industrial equipments. The company specializes in the import of comprehensive industrial machinery and equipments, industrial consumable materials, industrial chemicals to serve large factories in industrial zones. Although in the initial establishment, the company faced many difficulties, but with the efforts of the board of directors and all staffs, the company has been gradually going up and achieved significant results. Revenue is growing and the company has become the stable supplier, trusted by many large customers such as Honda Viet Nam Co., Ltd, Viet Nam Auto Part Co., Ltd, Goshi Thang Long Auto Part Co., Ltd , Machino Auto Part Co., Ltd, Chinfon Cement Co., Ltd, Yamaha Thang Long Co., Ltd, Elentic Viet Nam Co., Ltd and so on. However, in recent years, it is seem to be the fact that all employee activities were not really effective. The working atmosphere was very sluggish, tired, and very passive. There were some employees tried to keep up on the fingerprint mark timekeeper, after that, they go out for breakfast, café, or do some thing relevant to 8 their self without the consideration about their works. They tried to go to the company in time just to not be deducted from their salary, not for working purpose. When encountering difficulties in their work, instead of trying their best to solve problems, they often relied on the managers. It seems they did not have any motivation to promote them to work harder, better and more efficiently. The situation became more alarming, as recently the number employee leaving job was higher and frequent. On the other hand, the leader of APNI also have not yet considered about what factors affecting to employee working behavior at the company. The leaders focused on business strategy of the company but have forgotten a factor playing a key role in the successful implementation of the strategy, it is the employees. There fore, to find out what employees think, need, and what factors can motivate them to work hard, which is an essential requirements for this period. However, there is no research conducted in APNI to solve the problems. The author, as an import and export employee has worked at the company over four years, with my enthusiasm and dedication, would like to study factors influencing employees’ working behavior and find out the main factors supporting them work harder and more effectively. By the research “Enhancing employee motivation at Anphanam International Co., Ltd” the author showed out the real picture of employee motivation in APNI and clarified how the motivation factors affects on the working behavior of the employee and based on that, the author gave out some solutions to enhance Anphanam’s employee motivation. 1.2 Research Objectives  To synthesize relevant theories on employee motivation with APNI.  To analyze current situation and find out the main factors motivating as well as de-motivating employee at APNI.  To give solutions and recommendations to enhance employee motivation at APNI. 9 1.3 Research questions  What are suitable theoretical frameworks on employee motivation at APNI?  What are the factors motivating as well as de-motivating employees at APNI?  How to enhance employee motivation at APNI? 1.4 Research methodology 1.4.1 Research process: Research Theoretical Objectives Back ground Secondary data (2009 - 2011) Data Collection Primary data In-depth interview ( 9 ) Survey ( 50 ) Real situation of Recommendations Employee motivation Figure 1.1: Research Process Source: Author’s information 10 1.4.2 Data collection The data was collected from two sources: secondary data and primary data as details as follows: Secondary data was collected from: + Textbooks, journals, magazines and news papers, published researches, internet, etc. + Relevant documents, reports from Accounting Department, Human Resource Department of the company from 2008 to 2011 such as: quarter report, year report, Financial Statement, Income Statement. Primary data was collected by: + Qualitative method (In-depth interview): Carried out in-dept interview with 9 employees: 2 managers, 5 employees and 2 ex-employees. + Quantitative method (Survey): The survey was conducted with all employees and managers in 5 departments. The sample size was 50 and approximate 83% of the population. The author sent the questionnaires directly to the respondents and waited for them to receive the results. Types of questions were close–ended question. Regarding to the survey, the author designed the questionnaires based on hygiene and motivation factors and clarified in to five levels, in which: At level 1: Very dissatisfied At level 2: Dissatisfied At level 3: Normal At level 4: Satisfied At level 5: Very satisfied 11 Table 1.1: Data collecting methods Methodology Respondents 5 employees managers In-depth interviews 2 Factors influencing employee motivation in APNI - The main reasons of leaving APNI 2 ex-employees Survey (questionnaires) and Purpose 50 employees managers Comments or suggestions about APNI’ Human Resource policies. - The real situation of employee motivation at and APNI Assessment about policies and current motivation at APNI Source: Author’s information 1.4.3 Data Analysis By all the data collected, the author used the quantitative and qualitative methodologies and illustrated with charts, tables to describe and analyze the findings and results. The author used Excel to process the data. 1.5 Research Scope Research Object: Focus on enhancing employee motivation of all employees at APNI (including all employees and managers of 6 departments). There were 50 employees and managers in 6 departments joined the survey, approximate 83% total 12 population of the company. There were 9 employees (including 2 managers, 5 employees and 2 ex-employees) joined the in-depth interview. Location: APNI head office – No. 20 Bo De Street, Long Bien Dist, Ha Noi, Viet Nam. 1.6 Thesis Structure Chapter 1: Introduction Chapter 2: Theoretical Framework on employee motivation Chapter 3: Current Situation of employee motivation at Anphanam International Co., Ltd Chapter 4: Solutions and recommendations to enhance employee motivation at Anphanam International Co., Ltd 13 CHAPTER 2: THEORETICAL FRAMEWORK ON EMPLOYEE MOTIVATION 2.1 Definitions and roles of employee motivation 2.1.1 Definition of employee motivation Motivation What is motivation? Motivation is difficult to explain and even harder to “turn on” in people. Many people said that motivation as an act or process of motivating; the condition of being; a force, stimulus, or influence: incentive or drive? There are many definitions of motivation, each of them to description as a side of the issue such as: "Motivation”, in psychology, is the intention of achieving a goal, leading to goal-directed behavior. Some human activity seems to be best explained by postulating an inner directing drive. While a drive is often considered to be an innate biological mechanism that determines the organism's activity (see instinct), a motive is defined as an innate mechanism modified by learning." (Source: Motivation, Columbia Electronic Encyclopedia - Columbia University Press November 08, 2007). “Motivation is defined as the desire or aspiration of people for achieving a goals combined with the effort to work towards the organization goals”. (Source: Dr. Nguyen Van Diem and Dr. Nguyen Ngoc Quan – Human Resource Management – National Economics University – 2007). But according to the Business Edge (2005), Work motivation , Ho Chi Minh said “Motivation is positive process that implied conscious and unconscious actions make a person take action and simulate him to reap his achievements”. There are two basic types of Motivation: intrinsic and extrinsic motivation 14 Intrinsic motivation: reflects the desire to do something because it is enjoyable. If we are intrinsically motivated, we would not be worried about external rewards such as praise or awards. If we are intrinsically motivated, the enjoyment we experience would be sufficient for us to want to perform the activity in the future. Extrinsic motivation reflects the desire to do something because of external rewards such as awards, money, and praise. People who are extrinsically motivated may not enjoy certain activities. They may only wish to engage in certain activities because they wish to receive some external reward. Motivating employees: According to Mr Nguyen Khac Vien (1995), psychology dictionary, World edition, Ha Noi: “Motivating is positive processes that implied conscious and unconscious actions make a person take action and stimulate him to reap his achievements”. Besides, many people think that motivating means stimulating somebody to tack action by putting his desirable goals. Motivating like a mean that urges and encourages somebody to work harder and more effectively. So, for every leader, understanding employee’ feeling is very important. Standing on the point view of managers, some people think that they can encourage their employees and make them more concerned and more involved in achieving the goals of his organization. But some ideas insist that if the manager pays the employee more money, they are motivated and committed themselves and working harder. This way of thinking maybe right but sometime it may be wrong on account of the difference needs and desires between different employees. In general, managers should understand their employee’s need and feelings. They have to identify which ones will be motivation for their employees. But in 15 fact, needs and desires will be changed overtime and environment. So, in addition to understanding employees’ needs and desires, managers should timely satisfy them. 2.1.2 Roles of employee motivation The definition of needs is very different with different people, and needs was clarified into many levels. The lowest level of needs is physical survival needs or basic need such as water, food, sleep, health, exercises,...and the higher levels are needs for safety and security, social needs and belonging, need for self esteem and the highest level is need for self actualization. The fact that, every body tends to reach needs form lowest level to highest level. As the result, their behaviors will be changed because of the desire of satisfying those needs, and further more they will try to work harder and more effectively. The needs of people never stop, and always change from lowest level to highest level. When one of the needs is satisfied, other higher need will exist. At this time, a satisfied need is not a motivator, new demand will be appear. So, the needs are quite huge in life. According to Harold Koontz, Cyril Odonell, Heinz Weihrich (1994), the needs- desires – satisfy chain was described as follows: Needs Desires Stress Actions Satisfy Figure 2.1: The needs – Desires – Satisfy Chain (Source: Harold Koontz, Cyril Odonell, Hein Weihrich (1994), Core Issues of Management, Science and Technology Publishing House, Ha Noi) The needs of each person is very different, because they live in different environments, different characteristics and circumstances in which the environment is one important factor that affects directly. When one person works in a large organization, professional working environment, but full of competition, at high position, the environment will affect him so much. It gives 16 him a lot of challenge, and motivates him to try to complete all the tasks involved, and also encourage others in the organization. So, the need is the cause and effect of behavior systems because satisfying the need will be the motivation for another need and event to another person. - With employees: As you know, jobs play an important role in our life, and of course we spend a lot of time for jobs. Every one has their own objectives for life and they will set up the plan to achieve their own objectives. If people work in a good condition, have motivation from managers, colleagues, workers, they will get a very good result. Further more, an employee always try to achieve goals, means get success. And then, the success will be the motivation help them overcome all difficulties and obstacles if life. - With the organization: Firstly, employee motivation puts human resources into action. Every concern requires physical, financial and human resources to accomplish the goals. It is through motivation that the human resources can be utilized by making full use of it. This can be done by building willingness in employees to work. This will help the enterprise in securing best possible utilization of resources. Secondly, employee motivation improves level of efficiency of employees. The level of a subordinate or an employee does not only depend upon his qualifications and abilities. For getting best of his work performance, the gap between ability and willingness has to filled which helps in improving the level of performance of subordinate, it will help the organization to increase in productivity, reduce cost of operating and improve overall efficiency. Thirdly, employee motivation leads to achievement of organizational goals. It brings to the organization some issue such as: the best possible utilization of resources, co-operative work environment, the employees are goal – directed and