ESSAY subject management LABOR MOTIVATION ENHANCEMENT AT THAI TUAN JOINT STOCK COMPANY

ANALYSIS OF LABOR MOTIVATION ENHANCEMENT AT THAI TUAN JOINT STOCK COMPANY...13... LABOR MOTIVATION ENHANCEMENT SOLUTIONS AT THAI TUAN JOINT STOCK COMPANY.... Labor motivation directions

HO CHI MINH CITY CAMPUS

-*** -ESSAY

Subject: Management

LABOR MOTIVATION ENHANCEMENT

AT THAI TUAN JOINT STOCK COMPANY

Authors: Nguyen Ngoc Quynh Anh - 1913316009

Dang Thu Hang - 1913316054 Nguyen Huynh Phuong Nga - 1913345508 Dinh Hanh Nguyen – 1913345510 Nguyen Cuc Quy - 1913316138 Class: K58CLC2

Ho Chi Minh City, October 2020

TABLE OF CONTENTS

TABLE OF CONTENTS 1

TABLE OF FIGURES 3

TABLE OF TABLES 3

INTRODUCTION 4

Chapter 1 OVERVIEW OF THE THEORY OF LABOR MOTIVATION IN ENTERPRISES 7

1.1 Definition of motivation 7

1.2 Theories about work motivation 7

1.2.1 Maslow’s Hierarchy of Needs 7

1.2.1.1 Content of Maslow’s Hierarchy of Needs 7

1.2.1.2 Application of Maslow’s Hierarchy of Needs in motivation 9

1.2.2 McGregor’s Theory X and Y 9

1.2.2.1 Content of McGregor's Theory X and Y 9

1.2.2.2 Application of McGregor's Theory X and Y in motivation 10

It is not sufficient to establish strict rules and close monitoring The lazy or non-motivated staff should be given equal tasks as that of Theory Y Place them in the same environment (office, room, workspace, etc.), the Theory X person is likely to observe how the Theory Y person is working 10

1.2.3 Herzberg’s Two-Factor Theory 10

1.2.3.1 Content of Herzberg’s Two-Factor Theory 10

1.2.3.2 Application of Herzberg’s Two-Factor Theory in motivation 11

Chapter 2 ANALYSIS OF LABOR MOTIVATION ENHANCEMENT AT THAI TUAN JOINT STOCK COMPANY 13

2.1.1 Formation and development progress 13

2.1.2 Company mission 14

2.1.3 Company results 14

2.2 Company labor overview 15

2.2.1 Organizational human resource structure 15

2.2.2 Labor force characteristics: 16

2.3 Analysis of employees’ motivation in Thai Tuan Corporation 18

2.3.1 Motivating employees through monetary incentives 18

2.3.1.1 Basic salary 18

2.3.1.2 Bonus and other welfare policies 19

2.3.2 Motivating employees through non-monetary incentives 22

2.3.2.1 Division of labor and improvement of working conditions: 22

2.3.2.2 Human resource training 23

2.3.2.3 Business environment and cultures: 24

2.3.3 General evaluation: 24

2.3.3.1 The advantages 25

2.3.3.2 The limitations 25

Chapter 3 LABOR MOTIVATION ENHANCEMENT SOLUTIONS AT THAI TUAN JOINT STOCK COMPANY 26

3.1 Labor motivation directions at Thai Tuan Joint Stock Company 26

3.1.1 Development directions of the company 26

3.1.2 Labor motivation directions at Thai Tuan Joint Stock Company 26

3.2 Solutions to motivate Thai Tuan Corporation’s employees 27

3.2.1 Determine the needs of employees in the Company 27

3.2.2 Meet employees' monetary needs 28

3.2.3 Meet the non-monetary needs of employees 30

3.2.4 Applying Management by Objectives (MBO) 31

CONCLUSION 33

REFERENCES 34 APPENDIX 35

TABLE OF FIGURES

Figure 1.1 Process of motivation 7

Figure 1.2 Maslow’s Hierarchy of Needs 8

Figure 1.3 McGregor’s Theory X and Y 9

Figure 1.4 Herzberg’s Two-Factor Theory 10

Figure 2.1 Thai Tuan’s board of director structure 16

Figure 2.2 Percentage of labor based on gender, 2019 16

Figure 2.3 Labor age distribution 2019 17

Figure 2.4 Labor academic level in 2019 17

Figure 3.1 MBO Process 32

TABLE OF TABLES Table 2.1 Salary Scale in 2020 18

Table 2.2 Average Salary in the period 2018 - 2020 19

Table 2.3 Monthly appraisal criteria for Thai Tuan’s grassroots employees in 2019 20 Table 2.4 Monthly Bonus Rate associated with Employees’ Classification 20

Table 2.5 December Bonus Rate associated with Employees’ Year Classification 21 Table 2.6 Fridge allowance in 2020 22

Table 2.7 Labor division by trained profession in HCM Headquarter 12/2019 22

Table 2.8 Human resource training results the period of 2018-2019 24

Table 3.1 Recommended Bonus Amount for Overcompleted Employees 29

1 The reason for implementing the topic

In the modern economy, many businesses realize their company’s values inthe human resources they have, not in production machines or high buildings.Therefore, compensation is one of the important functions of Human Resourcemanagement, because an enterprise with a reasonable remuneration policy will bringgreat effects in promoting, using and developing human resources effectively,contributing to the success of the business On the contrary, when employees are notmotivated to work or lose motivation, they will have no responsibility at work,ineffectively work even cheating at work, causing the business not to achieve its setgoals

Work motivation is an essential tool to improve labor productivity Whenemployees satisfy their most essential needs, they will have the desire to satisfy moreother needs such as asserting themselves, being respected, developed,… Creatinggood motivation will reduce operating costs and increase profits for businesses.Therefore, companies must pay attention to Human Resource management andincrease the work motivation for employees

Thai Tuan Corporation has made many efforts in motivating employees.However, there are still many shortcomings in motivating the company's employeesand there is no adequate policy on using, motivating and exploiting the full potential

of employees

From the above reasons, our group chose the topic “Labor motivation

enhancement at Thai Tuan Fashion Group” to make an essay for its Management

subject, with the desire that through researching, it can come up with specificsolutions to improve motivation and solve shortcomings’ problems of employees inthe Company

2 Objectives of the research

Proposing solutions and recommendations aimed at creating a driving force todevelop production and improve labor efficiency at Thai Tuan Corporation Specific

Outline of theoretical basis on labor motivation in enterprises.

Analysis of the current situation and labor motivation policies at Thai Tuan Corporation

Proposing some solutions to improve motivational policies for employees at Thai Tuan Corporation

3 Subject and scope of the study

3.1 Subject of the study

Focus on researching the working motivation of employees at Thai Tuan Corporation in period of 2019 - 2020

3.2 Scope of the study

Place: Thai Tuan Fashion Group Corporation – 1/14B, Nguyen Van Qua Street, Dong Hung Thuan Ward, District 12, Ho Chi Minh City

Regarding data collection, data sources for the topic are collected by source:Primary information: academic documents as well as some data from books, newspapers, websites, …

Secondary information: documents, reports of the Human Resourcesdepartment and other departments on Human Resource management policies

Chapter 2: ANALYSIS OF LABOR MOTIVATION ENHANCEMENT AT

THAI TUAN JOINT STOCK COMPANY

Chapter 3: LABOR MOTIVATION ENHANCEMENT SOLUTIONS AT

THAI TUAN JOINT STOCK COMPANY

Due to limitations in knowledge and references, the essay may exist some inevitable shortcomings Therefore, we look forward to the teachers' feedback to make the article more complete

Chapter 1 OVERVIEW OF THE THEORY OF LABOR MOTIVATION IN ENTERPRISES

1.1 Definition of motivation

Motivation is the process by which a person’s efforts are energized, directed,and sustained toward attaining a goal This definition has three key elements: energy,direction, and persistence

Energy: a measure of intensity, drive, and vigor The quality of the effort must be considered as well as its intensity

Direction: effort directed toward and consistent with organizational goals

Persistence: employees persist in putting forth effort to achieve those goals

Figure 1.1 Process of motivation

How employees are motivated depends on several factors, including their age,socioeconomic and academic level, national culture, and the availability of workelsewhere

1.2 Theories about work motivation

1.2.1 Maslow’s Hierarchy of Needs

1.2.1.1 Content of Maslow’s Hierarchy of Needs

Maslow's needs theory was widely recognized during the 1960s and 1970s,especially among practicing managers, probably because it was intuitively logicaland easy to understand

Maslow’s hierarchy of needs is a theory of human motivation that suggestspeople are driven to engage in behaviors by a hierarchy of increasingly complexneeds The hierarchy is usually depicted as a pyramid, with basic needs making upthe base and complex needs found at the peak.

Figure 1.2 Maslow’s Hierarchy of Needs

Physiological needs: A person’s needs for food, drink, shelter, sex, and other physical requirements

Safety needs: A person’s needs for security and protection from physicaland emotional harm as well as assurance that physical needs will continue to be met

Social needs: A person’s needs for affection, belongingness, acceptance, and friendship

Esteem needs: A person’s needs for internal esteem factors such as respect, autonomy, and achievement and external esteem factors such as status,recognition, and attention

self-Self-actualization needs: A person’s needs for growth, achieving one’spotential, and self-fulfillment; the drive to become what one is capable of becoming

Maslow argued that each level in the needs hierarchy must be substantiallysatisfied before the next need becomes dominant.

1.2.1.2 Application of Maslow’s Hierarchy of Needs in motivation

Determining the needs of employees is the first key to finding the motivation

in each business environment Managers using Maslow's hierarchy to motivateemployees do things to satisfy employees' needs But the theory also says that once aneed is substantially satisfied, an individual is no longer motivated to satisfy thatneed Therefore, to motivate someone, managers need to understand what level thatperson is on in the hierarchy and focus on satisfying needs at or above that level

Motivation in the business will help employees to map out their ownMaslow’s Hierarchy of Needs and businesses will have measures and policies tooperate in the best way for employees

1.2.2 McGregor’s Theory X and Y

1.2.2.1 Content of McGregor's Theory X and Y

The Theory X and Theory Y are the theories of motivation given by Douglas

McGregor in 1960’s These theories are based on the premise that management has

to assemble all the factors of production, including human beings, to get the workdone

Figure 1.3 McGregor’s Theory X and Y

Theory X is a negative view of people that assumes workers have little ambition, dislike work, want to avoid responsibility, and need to be closely controlled to work effectively.

Theory Y is a positive view that assumes employees enjoy work, seek out and accept responsibility, and exercise self-direction.

1.2.2.2 Application of McGregor's Theory X and Y in motivation

It is not sufficient to establish strict rules and close monitoring The lazy ornon-motivated staff should be given equal tasks as that of Theory Y Place them inthe same environment (office, room, workspace, etc.), the Theory X person is likely

to observe how the Theory Y person is working

Reward people openly for their great achievements This encourages otherstaff to take up the challenge with the hope of getting the same

1.2.3 Herzberg’s Two-Factor Theory

1.2.3.1 Content of Herzberg’s Two-Factor Theory

Frederick Herzberg’s two-factor theory (also called motivation-hygienetheory) proposes that intrinsic factors are related to job satisfaction, while extrinsicfactors are associated with job dissatisfaction

Figure 1.4 Herzberg’s Two-Factor Theory

The hygiene factors are also referred to as the maintenance factors and

comprise of the physiological, safety and love needs from Maslow’s hierarchy ofneeds They are factors that are not directly related to the job but the conditions thatsurround doing the job These factors include: company policy and administration,technical supervision, interpersonal relations with supervisor, interpersonal relationswith peers and subordinates, salary, job security, personal life, work conditions andstatus Herzberg called these hygiene factors, since they are necessary to maintain areasonable level of satisfaction and can also cause dissatisfaction The hygienefactors are not direct motivators but are necessary to prevent dissatisfaction and atthe same time serve as a starting point for motivation However, removingdissatisfying characteristics from a job would not necessarily make that job moresatisfying (or motivating)

The motivator factors are intrinsic to the job itself and do not result from

“carrot and stick incentives” They comprise the physiological need for growth andrecognition The absence of these factors does not prove highly dissatisfying butwhen present, they build strong levels of motivation that result in good jobperformance They are therefore called satisfiers or motivators These factorsinclude: achievement, recognition, advancement, the work itself, the possibility ofpersonal growth and responsibility

Combining the hygiene and motivator factors can result in some scenariosnamely:

High hygiene and high motivation, the ideal situation where employees are highly motivated and have few complaints

High hygiene and low motivation: Employees have few complaints but are not highly motivated The job is then perceived as a paycheck

Low hygiene and high motivation: employees are motivated but have a lot ofcomplaints A situation where the job is exciting and challenging but salaries andwork conditions are not

Low hygiene and low motivation: the worse situation unmotivated employees with lots of complaints

This theory sought to encourage managers not to be one-sided in consideringfactors to motivate employees but rather consider all the two factors in order tooptimally motivate and satisfy employees to get the best out of them.

1.2.3.2 Application of Herzberg’s Two-Factor Theory in motivation How

to eliminate job dissatisfaction? According to Herzberg, managers need

to eliminate the dissatisfaction by doing 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 The aboveactions help in eliminating job dissatisfaction in organizations and there is no pointtrying to motivate people or employees until these issues are addressed It is crucial

in the work environment to identify conditions for job satisfaction

How to create conditions for job satisfaction? Herzberg’s premise was thatevery job should be examined to determine how it could be made better and moresatisfying to the person doing it Hence, managers need to consider and include:Providing opportunities for achievement;

Recognizing workers’ contributions;

Creating work that is rewarding and that matches the skills and abilities of theemployee;

Giving as much responsibility to each team member as possible;

Providing opportunities to advance in the company through internal

In seeking to motivate people, first management in organizations mustidentify and address things that make workers unhappy about the workplaceenvironment Furthermore, management has a responsibility to ensure that workersare treated fairly and with respect including helping workers to grow within theirjobs and giving them opportunities for achievement.

Chapter 2 ANALYSIS OF LABOR MOTIVATION ENHANCEMENT AT THAI TUAN JOINT STOCK COMPANY

2.1 An overview of company

2.1.1 Formation and development progress

"Thai Tuan - Foundation for the flourish"

Thai Tuan Fashion Group Corporation is one of the garment enterprisesproviding leading fashion products and services in Vietnam Established onDecember 22nd, 1993 and officially represented by Mr Thai Tuan Chi, Thai Tuanbrand has been trusted by domestic and foreign consumers as one of the textilebrands providing fabric products and fashion services with much of Vietnameseculture features Currently its head office is located at 1/148 Nguyen Van Qua St.,District 12, Ho Chi Minh city

In 2018, Vietnamese garment and textile industry ranked in the top 5 of theworld's largest garment manufacturing and exporting countries Many companiescontinue to maintain steady growth through contractual agreements with currentcustomers and attract new customers However, in recent years, a large amount ofgoods has been continuously poured into the domestic market, creating a hugenumber of concerns for the textile industry

Technically in this industry, products, chemicals, and durability have met theincreasing demand of consumers Therefore, a number of companies are not onlylooking for products, but also expecting a steady growth in revenue and profit,improving their prestige, building trust etc All above were the factors contributing

to Thai Tuan’s establishment

In the end of 1993, Thai Tuan was established with the primary goal ofsupplying to the domestic market, as well as thrifting foreign return for the country

It operated under the philosophy of “making domestic market the foundation,international markets flourishment”.

According to Mr Thai Tuan Chi - the founder, also the Chairman of theBoard of Directors, Thai Tuan has focused on building a brand recognition at a veryearly stage In 1998, when firstly participating in the Consumers' Fair in Can Tho,Thai Tuan already printed the company's logo on the border with the aim ofaffirming the quality to customers

Over the past 25 years of establishment and development, Thai Tuan hasbecome a familiar name to domestic and foreign consumers The company alwaysprides itself on supplying dress-codes when there are international occasions inVietnam, such as Sea Games 22, APEC 14 Conference, minister dress-shirts,ASEAN 17…

Thai Tuan specializes in producing Jacquard fabric, floral digital printingfabric, monochrome fabric, multicolored fabric from polyester, spandex, viscoyarn with advanced technology transferred from Japan and Europe Up to now, ithas 3 branches, 8 showrooms, more than 300 agents and 3,500 distributorsnationwide

2.1.2 Company mission

Being one of the garment and textile companies in Vietnam with the slogan

"Thai Tuan – Foundation for the flourish", Thai Tuan strives to become an

"International brand offering globally fashionable clothing” In order to have suchachievement, Thai Tuan has been continuously investing, developing and using thefirst and most advanced technologies for production

At the moment, the company is building a breakthrough strategy, takingadvantages of The 4.0 Industrial revolution to invest in modern machines, smartfacilities to pioneer in specially distinguished products: absorbent, anti-UV, scentedtextile It committed to add new values to meet the increasing demand ofconsumers

Although having the ambition to reach global recognition, Thai Tuan is loyal

contributing to building national symbol”, by bringing Vietnam culture & tradition into their products.

2.1.3 Company results

Over the past 27 years of establishment and development, Thai Tuan hascontinuously strived for its highest potential, claiming many achievements in terms

of finances and activities

In terms of financial efficiency, in the past few years, the Company has beenwitnessing impressive increase in both revenue and profit In 2017, the revenue wasapproximately 1000 billion VND, of which the export proportion is about 50%,consistent with the notion "making domestic market the foundation, internationalmarkets flourishment " In 2018, revenue increased by 15% and expected to increaserapidly within the next 5 years In terms of market share, Thai Tuan currentlyaccounts for about 25% of the total domestic market volume and is in the process ofexpanding to Asia and Middle East

Thai Tuan is honored for many prestigious awards: "High quality Vietnamesegoods" by consumers for successively 10 years, "Vietnam Gold Star" by TheAssociation of Young Enterprises, In addition, Thai Tuan received the Second andThird Order Labor Medals for “Outstanding achievements in business productionand charity work” by the President

2.2 Company labor overview

2.2.1 Organizational human resource structure

Alongside with strategies to develop the business, human resources is one ofthe goals that Thai Tuan focuses on According to inside information, Thai Tuan nowhas nearly 1,200 employees Organizational system of the Company includes:headquarter at District 12, business center in district 5, one branch in Northern HaNoi, one branch in central of Da Nang, and one branch in Western Can Tho, withmore than 300 agents and 3000 distributors nationwide

The Board of Directors of the Company comprises the Chairman of the Board

of Directors – also General Director, 5 Deputy General Directors of the Company:Domestic Business, International Business, Internal Affairs, Finance and

Operational Performance It is based on a functional model, specialized in each

department and branch, in order to improve the operational efficiency and quality of

the above superintendent supervision

General Director

Figure 2.5 Thai Tuan’s board of director structure

Therein, Deputy General Directors below is directly responsible for these

departments:

- Deputy General Directors of Domestic Business: Domestic Business department

- Deputy General Directors of International Business: International Business

department

- Deputy General Directors of Internal Affairs: Human Resources department,Information Technology department, Supply chain department, Administrator department

- Deputy General Directors of Finance: Finance department

- Deputy General Directors of Operational Performance: Weaving Factory, Dying Factory, R&D Center, Qualitative Management Center, Sewing Factory

2.2.2 Labor force characteristics:

37.00%

Figure 2.6 Percentage of labor based on gender, 2019

From the above chart, it can be inferred that there is a big difference in thelabor structure by gender when the proportion of male workers accounts for 63%,double the rate of female workers This comes from the characteristics of thebusiness line - Textile, the workforce of which direct production will mainly operatetextile machines, printers, etc

10.00%

32.00%

58.00%

Under 30 From 30-45 Above 45

From the above chart, we can see that in Thai Tuan, workers aged 30-Figure 2.7

Labor age distribution 2019

45 are the majority with 58%, followed by workers over 45 years old with

32% Over the past 25 years, along with continuous efforts in raising the brand notonly in the domestic market but also in the international arena, Thai Tuan also builds

an environment work professionally, thus retaining skilled senior employees, therebyhelping to reduce the costs of labor training for company