OVERVIEW OF THE THEORY OF LABOR MOTIVATION IN ENTERPRISES
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.
How employees are motivated depends on several factors, including their age, socioeconomic and academic level, national culture, and the availability of work elsewhere.
Theories about work motivation
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 logical and easy to understand
Maslow’s hierarchy of needs is a motivational theory that illustrates how human behaviors are influenced by a structured progression of needs This model is commonly represented as a pyramid, where fundamental needs form the foundation, and more complex needs are situated at the top.
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 physical and 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 self- respect, autonomy, and achievement and external esteem factors such as status, recognition, and attention
Self-actualization needs: A person’s needs for growth, achieving one’s potential, and self-fulfillment; the drive to become what one is capable of becoming.
Maslow argued that each level in the needs hierarchy must be substantially satisfied before the next need becomes dominant
1.2.1.2 Application of Maslow’s Hierarchy of Needs in motivation
Understanding employee needs is essential for motivation in any business environment Managers can utilize Maslow's hierarchy of needs to effectively motivate their teams by addressing and satisfying these needs However, it's important to recognize that once a need is adequately fulfilled, individuals may lose motivation to pursue it further Therefore, managers must identify each employee's current level within the hierarchy and focus on meeting needs at or above that level By fostering motivation, businesses can empower employees to navigate their own Maslow’s Hierarchy of Needs, leading to the implementation of policies that optimize the workplace for everyone.
1.2.2.1 Content of McGregor's Theory X and Y
Douglas McGregor's Theory X and Theory Y, developed in the 1960s, focus on motivation in the workplace These theories emphasize that effective management must integrate all factors of production, including human resources, to achieve optimal results.
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
Establishing strict rules and close monitoring alone is not enough; it is essential to assign the same tasks to unmotivated staff as those in a Theory Y environment By placing them in the same workspace as motivated individuals, Theory X employees can observe and learn from the work ethic and productivity of their Theory Y counterparts.
Reward people openly for their great achievements This encourages other staff to take up the challenge with the hope of getting the same.
1.2.3.1 Content of Herzberg’s Two-Factor Theory
Frederick Herzberg’s two-factor theory (also called motivation-hygiene theory) proposes that intrinsic factors are related to job satisfaction, while extrinsic factors are associated with job dissatisfaction.
Figure 1.4 Herzberg’s Two-Factor Theory
Hygiene factors, also known as maintenance factors, encompass the physiological, safety, and love needs outlined in Maslow’s hierarchy of needs These elements, which include company policies, technical supervision, interpersonal relationships with supervisors and peers, salary, job security, personal life, work conditions, and status, are not directly tied to job performance but rather to the environment in which the job is performed Herzberg identified these factors as essential for maintaining a baseline level of satisfaction, as they can lead to dissatisfaction if inadequate While hygiene factors do not serve as direct motivators, they are crucial for preventing dissatisfaction and can lay the groundwork for motivation However, simply eliminating negative aspects of a job does not guarantee increased satisfaction or motivation.
The motivator factors are intrinsic to the job itself and do not result from
Carrot and stick incentives highlight the physiological needs for growth and recognition in the workplace While the lack of these factors may not lead to significant dissatisfaction, their presence fosters high motivation and enhances job performance Known as satisfiers or motivators, these elements include achievement, recognition, opportunities for advancement, the nature of the work itself, personal growth potential, and the sense of responsibility.
Combining the hygiene and motivator factors can result in some scenarios namely:
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 of complaints A situation where the job is exciting and challenging but salaries and work conditions are not.
Low hygiene and low motivation: the worse situation unmotivated employees with lots of complaints
This theory emphasizes the importance of a balanced approach for managers in motivating employees, urging them to consider both intrinsic and extrinsic factors By addressing these dual aspects, managers can effectively enhance employee satisfaction and performance, ultimately leading to optimal outcomes for the organization.
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;
Enhancing job satisfaction involves ensuring meaningful work across all positions, as this directly addresses job dissatisfaction within organizations Before attempting to motivate employees, it is essential to resolve underlying issues that contribute to their discontent Identifying the key conditions for job satisfaction is vital in fostering a positive work environment.
To foster job satisfaction, it's essential to evaluate each role to identify opportunities for improvement, as proposed by Herzberg Managers should focus on enhancing the work environment and addressing employee needs to create a more fulfilling experience By prioritizing these aspects, organizations can boost motivation and overall job satisfaction among their workforce.
Creating work that is rewarding and that matches the skills and abilities of the employee;
Giving as much responsibility to each team member as possible;
Providing opportunities to advance in the company through internal promotions;
Offering training and development opportunities so that people can pursue the positions they want within the company.
To effectively motivate employees, management must first recognize and tackle the factors contributing to workplace dissatisfaction Additionally, it is essential for management to ensure fair treatment and respect for all workers, while also facilitating their professional growth and providing opportunities for achievement.
ANALYSIS OF LABOR MOTIVATION ENHANCEMENT AT
An overview of company
"Thai Tuan - Foundation for the flourish"
Thai Tuan Fashion Group Corporation, established on December 22, 1993, is a leading garment enterprise in Vietnam, recognized for its high-quality fashion products and services Under the leadership of Mr Thai Tuan Chi, the brand has gained the trust of both domestic and international consumers, offering textile products that embody rich Vietnamese cultural features The company's head office is situated at 1/148 Nguyen Van Qua Street, District 12, Ho Chi Minh City.
In 2018, Vietnam's garment and textile industry emerged as one of the top five largest manufacturers and exporters globally Many companies have sustained steady growth by securing contractual agreements with existing clients while also attracting new customers However, the influx of goods into the domestic market in recent years has raised significant concerns for the textile sector.
In response to the rising consumer demand for quality products and durable chemicals, numerous companies are focused on enhancing their revenue and profits while building trust and prestige These factors played a significant role in the establishment of Thai Tuan.
In the end of 1993, Thai Tuan was established with the primary goal of supplying 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”.
Mr Thai Tuan Chi, the founder and Chairman of Thai Tuan, emphasized the importance of brand recognition from the outset In 1998, during its inaugural participation in the Consumers' Fair in Can Tho, the company showcased its logo prominently to assure customers of its quality.
Over the last 25 years, Thai Tuan has established itself as a trusted brand among both domestic and international consumers The company takes pride in providing official dress codes for significant international events in Vietnam, including Sea Games 22, APEC 14 Conference, ministerial dress shirts, and ASEAN 17.
Thai Tuan is a leading manufacturer of Jacquard fabric, floral digital printing fabric, monochrome fabric, and multicolored fabric, utilizing high-quality materials such as polyester, spandex, and visco yarn The company employs advanced technology sourced from Japan and Europe to ensure superior product quality Currently, Thai Tuan operates three branches, eight showrooms, and boasts a network of over 300 agents and 3,500 distributors across the country.
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 such achievement, Thai Tuan has been continuously investing, developing and using the first and most advanced technologies for production
The company is currently developing an innovative strategy that leverages the 4.0 Industrial Revolution by investing in advanced machinery and smart facilities This initiative aims to lead the market with uniquely distinguished products such as absorbent, anti-UV, and scented textiles Committed to enhancing consumer value, the company seeks to meet the growing demands of its customers.
Thai Tuan remains dedicated to its core mission of celebrating femininity through stylish clothing, while striving for global recognition The brand emphasizes the integration of Vietnamese culture and traditions into its products, contributing to the creation of a national symbol.
Over the past 27 years of establishment and development, Thai Tuan has continuously strived for its highest potential, claiming many achievements in terms of finances and activities.
In recent years, the Company has demonstrated significant financial efficiency, with impressive growth in both revenue and profit In 2017, revenue reached approximately 1,000 billion VND, with exports making up about 50%, aligning with the strategy of strengthening the domestic market while expanding internationally By 2018, revenue increased by 15%, and rapid growth is anticipated over the next five years Currently, Thai Tuan holds a 25% share of the domestic market and is actively expanding into Asian and Middle Eastern markets.
Thai Tuan has been recognized with numerous prestigious awards, including the "High Quality Vietnamese Goods" title, awarded by consumers for ten consecutive years, and the "Vietnam Gold Star" from The Association of Young Enterprises Additionally, the company has received the Second and Third Order Labor Medals from the President in acknowledgment of its outstanding achievements in business production and charitable efforts.
Company labor overview
Thai Tuan prioritizes human resources as a key component of its business development strategy, currently employing nearly 1,200 staff members The company's organizational structure features its headquarters in District 12, a business center in District 5, and branches located in Northern Hanoi, Central Da Nang, and Western Can Tho Additionally, Thai Tuan boasts a robust network of over 300 agents and 3,000 distributors across the nation.
The Company's Board of Directors is led by the Chairman, who also serves as the General Director, and includes five Deputy General Directors overseeing Domestic Business, International Business, Internal Affairs, and Finance.
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.
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.
Figure 2.5 Thai Tuan’s board of director structure
The labor structure in the textile industry shows a significant gender disparity, with male workers making up 63% of the workforce, which is double the percentage of female workers This imbalance is largely attributed to the nature of the industry, where direct production roles primarily involve operating textile machines and printers.
From the above chart, we can see that in Thai Tuan, workers aged 30-
With 58% of the workforce aged 45 and above, Thai Tuan has successfully cultivated a professional work environment over the past 25 years This commitment to brand development in both domestic and international markets has not only attracted skilled senior employees but also significantly reduced labor training costs for the company.
Figure 2.6 Percentage of labor based on gender, 2019
Figure 2.8 Labor academic level in 2019
Post-graduateUniversityCollegeCommon labor
At Thai Tuan, the workforce primarily consists of senior staff from garment and textile factories, with unskilled workers representing 42% of the total employees University graduates make up 28% of the staff, while postgraduate employees account for 18%, primarily in office roles The smallest segment includes college and intermediate level workers, comprising 12% of the workforce.
Analysis of employees’ motivation in Thai Tuan Corporation
2.3.1 Motivating employees through monetary incentives
Thai Tuan Company, like many corporations in Vietnam, implements a salary system that aligns with job nature and responsibility levels, ensuring equal pay for employees holding the same job title The corporation's salary policy and that of its affiliated units reflect this fundamental approach.
H: Pay rate associated with job titles M: Minimum wage (M=4.420.000VND) n: Real workdays of the employee N: Standard workdays in a month
Outlet Salesman, Operating Support Executive (Driver, Receptionist, Security, )
Table 2.2 Average Salary in the period 2018 - 2020
According to the data, the average income of the total 1126 employees in
In 2020, the company's revenue reached approximately 5,351 million VND, reflecting a 5.4 percent increase from 2019, making it a competitive figure among non-FDI enterprises in Vietnam, particularly in the challenging textile sector Additionally, the company implements an annual salary promotion policy to enhance employee engagement and motivation.
2.3.1.2 Bonus and other welfare policies
Thai Tuan Corporation not only offers competitive wages but also implements a transparent bonus rewards system designed to motivate employees to exceed performance expectations while demonstrating the Executive Board's commitment to addressing workers' daily needs The bonus structure consists of two primary forms.
The general achievement bonus is determined by the overall performance of the firm, calculated based on the planned targets set at the beginning of the year and the level of goals achieved by year-end.
The individual achievement bonus at Thai Tuan is linked to personal performance appraisals and is categorized into two types: a monthly bonus and a December bonus The rates for these bonuses are determined by employee classifications, as detailed in the accompanying tables.
Table 2.3 Monthly appraisal criteria for Thai Tuan’s grassroots employees in 2019
Complete assigned work on/before schedule 35
Comply well with company’s regulations 10
Hardworking, dedicated and cooperative attitude 10
Contribute creative suggestions to work efficiency 10
Table 2.4 Monthly Bonus Rate associated with Employees’ Classification
Point Classification Monthly Bonus Rate
Table 2.5 December Bonus Rate associated with Employees’ Year Classification
- No more than 1 month classified as B A - Very Good 1.2
- No more than 2 months classified as
- Other cases not classified as A,B and
- Be discipline at company level
- More than 4 months classified as C
Thai Tuan Corporation prioritizes employee welfare to enhance motivation, adhering strictly to Vietnamese labor laws The company ensures that all mandatory benefits, including social insurance, health insurance, sickness and maternity schemes, death benefits, and pensions, are fully provided to its workforce Additionally, Thai Tuan Corporation offers extra fridge allowances to further support its employees.
Fridge allowance Amount of Money
Other allowances (petrol, telephone, ) 100,000 VND/month
1.4.2 Motivating employees through non-monetary incentives
1.4.2.1 Division of labor and improvement of working conditions:
The Company board has recently emphasized the importance of effectively arranging and utilizing employees by introducing a comprehensive set of standards for each job title This document aims to clearly outline the responsibilities and authority associated with various roles, preventing overlaps in functions and duties across departments By providing clarity on what employees need to do, why their tasks are important, and how to execute them, the standards facilitate better performance and enhance collaboration among teams.
In 2019, data revealed that the Company still had several inappropriate and unnecessary positions, particularly in office areas where some employees were not assigned to roles aligned with their training To enhance organizational efficiency, the Company must prioritize suitable labor division by ensuring that individuals are placed in roles that match their expertise, preferences, strengths, and technical skills.
Table 2.7 Labor division by trained profession in HCM Headquarter 12/2019
Department Total number of employees
Employees working in the inappropriate expertise
Human resource training and development significantly enhance employee productivity by addressing their self-fulfillment needs, as outlined in Maslow’s Hierarchy of Needs In the past two years, Thai Tuan Corporation has prioritized training programs aimed at improving the quality of its workforce and enhancing professional skills to meet job requirements effectively.
There are two types of training:
Internal training is essential for direct workers, including technical staff in factories and sales personnel in showrooms, focusing on enhancing soft skills relevant to their roles The Administrative Organization Department will collaborate with relevant units to effectively organize and implement these internal training courses.
Outsourcing off-site training primarily targets managers seeking short-term or long-term courses at external business centers, focusing on enhancing perceptual, leadership, and professional skills, including roles like chief accountant and tax professional Division heads are responsible for identifying employees who require training, and the company fully funds courses for designated individuals Additionally, employees who proactively request professional development courses receive a 50% cost subsidy Importantly, training days that coincide with regular workdays are considered as workdays.
Table 2.8 Human resource training results the period of 2018-2019
Total number of internally trained employees 544 512
Total number of externally trained employees 24 26
Thai Tuan Corporation believes that fostering a workplace environment characterized by strict discipline, fair treatment, and a multi-faceted communication system is crucial for motivating skilled employees This approach enhances their engagement, encourages retention, and boosts overall performance within the organization.
Thai Tuan's culture is deeply rooted in a strong team spirit, with the Chairman and directors emphasizing that employees are the corporation's greatest asset The company actively encourages participation in collective activities such as sports competitions, group outings, and annual vacations, fostering a warm and cohesive atmosphere This approach not only enhances motivation among employees but also positively impacts the company's image in their eyes.
Through analysis of the current situation at Thai Tuan Corporation, I believe that the Company has both pros and cons in the process of motivating employees. Details are as follows:
Thai Tuan Corporation has established a comprehensive policy for wages, bonuses, and welfare, offering competitive and stable salaries that enable employees to meet their basic needs and enhance their living standards The Corporation ensures that all employees receive full benefits in line with social welfare regulations.
Enhancing workplace facilities and organizing extracurricular activities, outings, and vacations can significantly boost positive work energy while fulfilling employees' needs for communication and social interaction.
LABOR MOTIVATION ENHANCEMENT SOLUTIONS AT THAI
Labor motivation directions at Thai Tuan Joint Stock Company
1.4.4 Development directions of the company
The board of directors aims for Thai Tuan Joint-Stock Corporation to become a leading textile and garment company in Vietnam, prioritizing the well-being, workplace environment, and professional development of all employees.
For enterprises, maintaining high quality is essential for attracting customers and skilled workers, creating jobs, and enhancing brand value Between 2018 and 2019, the company experienced significant achievements, including a sharp increase in sales within the luxury segment and silk ao dai, alongside a 7.8% growth in high-end pajamas To ensure the safe and continuous operation of its production line, the company has outlined strategic directions for the coming years.
- 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
Effective motivation is essential for enhancing both the material and spiritual well-being of employees, fostering loyalty to the organization while improving the quality and efficiency of labor It should cultivate a supportive work atmosphere characterized by mutual trust, respect, and equitable relationships, promoting collaboration among all team members.
Thai Tuan Company is committed to cultivating a highly qualified workforce skilled in strategic planning and management, ensuring long-term dedication to the organization To achieve this, the company focuses on sustainable policies, transparent evaluations, comprehensive management practices, and fair compensation Additionally, it aims to attract talented individuals while fostering a strong company culture that enhances labor efficiency, promotes employee potential, and ensures fairness and job satisfaction.
Motivation is essential for organizational success, and motivation policies should be designed to support all employees rather than just a select few By addressing the overall needs of the company, these policies can promote fairness and inclusivity in the workplace.
- Motivation must be practiced regularly in the workplace.
- Employee benefits must be a priority, with the equality in evaluation and treatment well-maintained
Effective motivation hinges on the collaboration between the Board and employees to meet their physical and psychological needs while fostering company values and reducing costs This can be achieved through regular assessments and surveys, alongside targeted salary policies and enhanced job advancement opportunities Additionally, continuous innovation in environmental development, the provision of comfortable working conditions, financial support, and robust worker protection mechanisms are essential for a motivated workforce.
1.5 Solutions to motivate Thai Tuan Corporation’s employees
The current employee performance rating system at Thai Tuan Group Joint Stock Company is facing several challenges, prompting the need for effective solutions to boost employee motivation By addressing these issues, the company can implement strategies that enhance labor engagement and overall productivity.
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:
3 Evaluate yourself when you start working
4 Evaluate yourself after working in the Company
5 Personal development trends and plans in the future
In Step 2, it is essential to select subjects and conduct thorough investigations within each department This process should include assessments of leaders, managers, and employees, while also considering additional criteria such as salary levels, age, qualifications, and seniority By utilizing various classification methods, organizations can accurately identify the specific needs of each group.
Step 3 involves processing the collected information and categorizing it according to demand levels This analysis serves as a foundation for implementing labor motivation strategies within the company In future surveys, the company can compare the results of both surveys to evaluate the effectiveness of these motivational measures.
The first and foremost need of employees in the Company is the financial need, including: salary, bonus and other allowances.
Thai Tuan, like many joint stock companies in Vietnam, currently adheres to a salary structure based on job titles, resulting in equal pay for employees holding the same position This approach may unintentionally foster negativity within the organization.
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).
To calculate an employee's monthly salary at Thai Tuan, the total compensation is derived from the sum of the basic salary, the production results salary for the entire enterprise, and performance bonuses.
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.
The Company determines its bonus mechanism based on its financial situation, currently offering a general bonus scheme at the end of the lunar year, aligning with the average practice of Vietnamese companies, which typically award a bonus equivalent to one month's salary To enhance employee loyalty and retention, it is proposed to transition from a one-time annual bonus to a biannual bonus scheme, distributing bonuses in July and at New Year's Eve Additionally, performance bonuses will be linked to monthly assessments of employees, aimed at encouraging and motivating staff.
The authors suggest that the Company implement performance-based bonuses for factory employees and showroom sales representatives to recognize their contributions and motivate others to enhance productivity.
Table 3.9 Recommended Bonus Amount for Overcompleted Employees
The current allowances at Thai Tuan Company primarily consist of work and travel allowances However, trainees have suggested expanding these benefits, particularly for employees in three branches where production activities are absent, resulting in a lack of harmful allowances The company should consider implementing night work and overtime allowances for projects, reflecting the unique demands of its business operations.
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:
Students suggest that the company refresh its workplace decor every three months to align with seasonal business themes, such as celebrating the 27th anniversary of Thai Tuan Group Joint Stock Company or the opening of new branches This initiative aims to alleviate monotony and enhance the working environment.
Replace old facilities (tables, chairs, computers, air conditioners ) to provide employees with effective working tools.