THEORY FRAMEWORK ON WORK MOTIVATION,
Concepts on work motivation
Nguyen Van Diem, M.A and Assoc.Prof.Dr Nguyen Ngoc Quan shared that
“Work motivation is defined as the worker’s desire and willingness to improve the efforts to fulfill the organization’s objectives.”
PhD Bui Anh Tuan from the National Economics University unveiled that:
Work motivation refers to the internal factors that drive individuals to engage actively in their tasks, leading to enhanced performance and effectiveness It is characterized by a strong willingness, dedicated effort, and a passion for work, all aimed at achieving both organizational and personal goals.
Personal internal factors play a crucial role in work motivation, significantly influencing employee behavior and aligning it with organizational goals While tasks can still be accomplished without motivation, a lack of motivation or demotivation can severely diminish an employee's performance and lead to disengagement from the organization.
Motivation plays a crucial role in societal development, and its creation is influenced by specific application regulations When motivation is driven by tangible benefits, it significantly enhances work performance, expertise, and the effectiveness of specific functions.
Concept on work motivation
Work motivation encompasses various activities, policies, and methods designed to inspire employees to engage fully in their assigned tasks By fostering a motivated workforce, organizations can enhance performance, benefiting both the employees and the enterprise as a whole.
According to Assoc Prof Dr Le Thanh Ha, work motivation encompasses a range of strategies and actions taken by organizations and managers to inspire employees to increase their efforts and achieve organizational goals These strategies can include both financial and non-financial incentives, as well as the overall treatment of employees within the organization.
Work motivation encompasses the strategies and management policies implemented by leaders to inspire employees, enhancing their job satisfaction and encouraging them to contribute more significantly to their organizations.
Work motivation is not a fixed trait; it fluctuates among individuals and can vary based on different circumstances While an employee may exhibit high motivation at one moment, it may diminish at another Therefore, managers play a crucial role in influencing and enhancing employee motivation, enabling them to effectively channel their efforts towards achieving work goals.
Necessity of motivating employees
Motivating employees is attached with extremely significant role and recognized with high efficiency for the concerned employees, each enterprise and the social benefits
Motivation plays a crucial role in enhancing employee performance and initiative When employees are motivated, they are more likely to invest effort in learning and self-improvement, leading to increased knowledge and skills A motivated workforce works with enthusiasm and commitment, fostering a strong connection to the organization This dedication not only contributes to the company's success but also creates opportunities for personal development and added value for both employees and the enterprise.
Motivation plays a crucial role in enhancing organizational productivity and business performance while also improving cost-effectiveness and fostering corporate development By fostering motivation, companies can strengthen employee engagement, attract and retain top talent, and ultimately boost their competitiveness in the market.
Work motivation is known as a pre-requisite to successfully improve the personal productivity and organizational business performance, facilitating the economy growth, civilized social development and political stability
In short, work motivation for employees is put on the top priority for each manager It is not only a task but also obligation towards their employees.
Work motivation-related theories
Psychologist Abraham Maslow identified a trapezoidal hierarchy of employee needs, which includes five key levels: physiological needs, safety needs, love and belongingness needs, esteem needs, and self-actualization needs.
Figure 1.1: Maslow’s hierarchy of needs
(Source: Human resources management course books (2012) - Assoc.Prf Le Thanh
Physiological needs represent the fundamental requirements for human survival, encompassing essentials such as food, clothing, shelter, and transportation These basic needs are crucial for maintaining life and well-being.
Next is safety needs which are stable and reliable Persons wish to be protected against uncertainty or self-protection
Love and belongingness are fundamental human needs that emphasize the importance of communication and connection with others These needs involve expressing and accepting feelings, demonstrating care, and sharing love and support within relationships.
Esteem needs represent a crucial aspect of human motivation, encompassing the desire for respect and recognition within social contexts, alongside the fundamental need for communication and interaction with others.
The highest hierarchy is self-actualization needs, self-development and self- affirmation needs The persons wish to realize their personal potential They always wish to be more perfect
Maslow's hierarchy of needs suggests that individuals prioritize their needs in a specific order, starting from the most basic Once lower-level needs are satisfied, higher-level needs become the focus Although complete satisfaction of needs is rarely achieved, once basic needs are met, they no longer serve as motivators Therefore, managers must understand their employees' positions within this hierarchy to effectively motivate them and achieve optimal results through targeted motivation strategies.
Herzberg posited that an individual's relationship with their job is a fundamental factor influencing job success, as personal attitudes play a crucial role Through his extensive research, he explored the question, “What do you want from your job?” and identified two distinct categories of factors affecting job satisfaction and dissatisfaction.
Group 1: Motivational factors include the key factors for job motivation and satisfaction such as: recognition, sense of achievement, job nature, job responsibility and promotion When such factors are absent, the employees shall demonstrate their dissatisfaction, laziness and ineffective working Herzberg assumed that such are “satisfactory factors” for the motivational factors When such factors are successfully satisfied, motivation shall be created, i.e., job satisfaction
Hygiene factors are external elements essential for maintaining effective job performance and preventing negative outcomes for employees These include management policies, job supervision, salary, interpersonal relationships, working conditions, job security, and position stability While high satisfaction with these factors does not inherently motivate employees, their absence can lead to boredom, dissatisfaction, and a lack of motivation According to Herzberg, these are known as "dissatisfaction factors," which fail to inspire job motivation.
(Source: (Nguyen Van Diem, Nguyen Ngoc Quan, 2015)
Understanding the factors that lead to employee dissatisfaction is crucial for managers aiming to enhance workplace morale While removing dissatisfaction factors can improve conditions, it doesn't guarantee employee satisfaction To truly motivate and satisfy employees, managers should concentrate on hygiene factors such as recognition, achievement, and appropriate task assignment Satisfaction stems from job content, whereas dissatisfaction arises from the work environment Therefore, to effectively engage each employee, managers must address both the working environment and the nature of the job itself.
Employees are dissatisfied and demotivated
Employees are satisfied and motivated
Ma in ten an ce fact o r En cou ra ge m en t factor
Employees are not dissatisfied and still demotivated
1.4.3 Skinner's Reinforcement Theory of Motivation
Skinner assumed that the bonus or punitive tools are used to enhance or restrict the personal behaviors Concretely:
Inherited behaviors tend to be repeated while the non-bonus or punitive behaviors shall be gradually eliminated
The closer the interval between the behavior and bonus and punishment behavior is, the higher the behavior change impact shall be
Punishment restricts the managers’ unexpected behaviors and possibly causes negative enforcement (such as reaction of employees, etc.), hence, it is less effective than the bonus
Managers should apply various methods to award the employees Criticism must be personalized, constructive and integrated with praise or award
To effectively motivate employees, it is crucial to enhance their awareness of how their individual contributions lead to anticipated rewards This can be achieved through a balanced approach of rewards and consequences, alongside fostering a positive work environment By ensuring employees feel satisfied with their current roles and the support they receive from both leaders and colleagues, they are more likely to trust in their own efforts and remain enthusiastic about achieving high performance in their work.
1.4.4 John Stacey Adams' equity theory
Adams' theory posits that employees evaluate their personal equity by comparing their inputs, or efforts, against the outputs, or rewards, they receive from their tasks They also assess their input-output ratio in relation to that of their peers, referred to as social equity When their ratios align with those of others, a state of equity is achieved; however, if discrepancies arise, an inequitable situation is perceived In response to perceived inequity, employees are motivated to take significant actions to restore balance.
According to this theory, fostering equity within an organization strengthens interpersonal relationships, leading to increased employee motivation and satisfaction, ultimately enhancing loyalty and attachment to the organization Conversely, when individuals perceive that their contributions outweigh their rewards, their enthusiasm and commitment diminish This creates a scenario where employees assess their efforts against the treatment and benefits they receive, potentially leading to three distinct outcomes.
When employees feel undervalued and believe their bonuses do not reflect their efforts, it leads to dissatisfaction and decreased productivity In severe cases, this discontent may drive them to disrupt the workplace or seek new employment opportunities.
- Second: If the employees believe that they are well treated, the bonus and treatment are deserved to their efforts, they shall maintain their productivity as before
When employees perceive that bonuses and benefits exceed their expectations, they are likely to increase their productivity and engagement However, if these rewards are consistently reduced or overlooked, the significance of the bonuses diminishes over time, ultimately leading to a lack of motivation and effectiveness in the long run.
To foster equity within an organization, leaders and managers must assess the balance between each individual's contributions and their corresponding outcomes By identifying and implementing measures to achieve this balance, employees will be more motivated to align their efforts with the organization's overall objectives.
Equity theory requires the balance between giving and receiving The
Factors affecting the employees’ work motivation
Employees experience varying emotions when faced with unexpected job offers versus those that align with their skills and interests The alignment of a job with an employee's strengths significantly enhances their productivity and performance, allowing them to excel even in routine tasks Challenging roles can serve as valuable opportunities for growth and satisfaction Additionally, employees feel more content when corporate policies, including salary, bonuses, and benefits, meet their needs While some prioritize financial rewards, others value job flexibility and travel opportunities Therefore, it is essential to consider individual characteristics when designing optimal job roles for employees.
Training involves educational activities designed to equip employees with the skills and knowledge necessary to effectively perform their roles This process enhances their ability to master assigned tasks and improves overall job performance, ultimately leading to greater efficiency in the workplace.
Promotion within a company signifies an advancement to a more significant role, contributing to personal development while enhancing employees' prestige and authority A well-defined promotion policy fosters self-actualization, reflecting an employee's progress in their career Those who are promoted experience improved capabilities, increased responsibilities, and higher compensation, marking a significant milestone in their professional journey.
Training is grouped with promotion because the training ultimately aims to promotion or improvement of employees’ working capacity and performance
Meeting employees' training and development needs drives motivation, leading to improved performance and a desire for more challenging tasks and promotion opportunities Consequently, training is essential for achieving the organization's strategic goals High-quality employees serve as a competitive advantage for businesses, making it crucial to prioritize training and promotion policies that foster personal development.
When employees' basic physical needs are met, they often seek fulfillment of their social and spiritual demands, particularly through positive interpersonal communication Since employees work both individually and as part of a team, the quality of job relationships plays a crucial role in their overall satisfaction and productivity Strong colleague relationships foster a collaborative spirit and a supportive work environment, leading to improved labor productivity Additionally, the need for self-respect is intertwined with communication, requiring acknowledgment from management Employees strive to belong to social groups, whether formal or informal, as they seek to enhance their social connections and fulfill their relational needs within the organization.
Income is the money earned from work performed for an enterprise or organization, excluding earnings from other jobs It encompasses basic salary, allowances, bonuses (both regular and unexpected), commissions, and other cash-based benefits directly related to primary job responsibilities.
Labor remuneration poses significant challenges for enterprise managers, as diverse viewpoints and objectives influence payroll system design Typically, enterprises focus on four primary objectives when establishing their compensation structures.
Employee acquisition heavily relies on the salary offered by a company, as it is a fundamental factor influencing candidates' decisions about job acceptance A higher salary not only attracts more talent but also enhances the chances of securing skilled employees.
To effectively retain talent, companies must prioritize internal equity alongside competitive salaries When employees perceive salary discrepancies within the organization, it can lead to feelings of discomfort, stress, and disengagement, ultimately driving them to seek opportunities elsewhere.
Employee motivation is crucial for maintaining productivity and engagement in the workplace When corporate management fails to recognize and reward the hard work and exceptional performance of employees, it can lead to a decline in motivation As a result, employees may become disengaged and inactive, ultimately impacting the overall effectiveness of the organization.
Compliance with legal requirements regarding employee salaries is essential for enterprises Key areas of focus include regulations governing basic salary, working hours, and conditions, as well as laws addressing child labor Additionally, companies must adhere to guidelines related to salary-embedded allowances and social welfare regulations, which encompass social insurance, illness benefits, material support, and labor accident compensation.
How should we do to make salary and bonus become great drive for employees? Some employee motivation measures are recommended as follows:
A fair salary should adequately support employees and their families at a basic living level, ensuring their fundamental needs are met This essential requirement is a primary responsibility of employers, as it lays the groundwork for fostering a motivated and productive workforce.
Salary should represent 70%-80% of an employee's total income, closely aligned with their work volume and quality This alignment ensures equitable distribution of social products, fostering trust and motivation among employees who feel their compensation reflects their contributions to the organization.
Bonuses should constitute 20% to 80% of an employee's total income to effectively engage them in labor production When bonuses are appropriately balanced, employees are motivated to enhance productivity However, excessively high bonuses can shift focus away from salary, diminishing overall motivation within the organization.
Bonus volume must be meaningful to the life It must satisfy some expectation of employees The higher the expectation is, the bigger the bonus motivation shall be
Salary and bonus are one of physical factors for the employees Successful application of such policy is one of the key factors to effective employee motivation
Welfare encompasses the benefits employees receive beyond their monthly salary, playing a crucial role in job satisfaction It is a key component of overall remuneration, significantly influencing employees' contentment with their jobs In Vietnam, employees prioritize various welfare benefits, including social insurance, health insurance, severance pay, legal leave, sick leave, and personal leave Additional welfare offerings may include legal protection from trade unions, annual travel opportunities, job security, support for home purchases, and preferential rights for company shares.
Some enterprises’ experience in work motivation and lesson for Truong
1.6.1 Experience of Sai Gon Mechanical Electrical Joint Stock Company
Nguyen Thi Minh Phương's 2015 master thesis, "Work Motivation of Office Staffs in Ishigaki Vietnam," highlights the significant achievements of the company over its 8 years of operation The company's success is attributed to its dedicated efforts in developing human resources and enhancing employee motivation.
The salary structure is based on assigned tasks and employee performance, with semi-annual reviews conducted by direct managers to determine potential salary increases Employees receive 100% of their salary for fully meeting their tasks, while the percentage of salary received varies according to monthly performance evaluations To further motivate employees, a satisfactory bonus policy is in place, offering a public holiday and New Year bonus of VND 200,000 per employee, along with performance bonuses ranging from VND 500,000 to VND 1,000,000 based on task fulfillment As a publicly listed company, employees can also benefit from a share-based bonus policy, allowing them to purchase corporate shares at a 30% to 50% discount on the share value at the time of the bonus Additionally, an employee motivation review is conducted annually to assess performance and identify areas for improvement in the work environment and benefits provided by the company.
The Company's motivation success obtained in 2013 was described as follows: Average income increased 1.4 times against that in 2012
Average monthly income of 2012 was VND 3,500,000/person/month
Up to 2013, the average income of employees was VND 5,000,000/person/month
The attachment percent (%) of employees also increased higher than that in
2012 Number of retired employees reduced for a half 2012 was recorded with 20 retired employees (due to salary lower than that of new job position) AT the end of
2013, number of retired employees was only 5 persons
The successful achievement was realized through the implementation of salary-based motivation policies and timely price deflation, which effectively balanced with the basic salary to retain employees and minimized salary competition from competitors.
Share-based bonus policies offer two key benefits: they enhance shareholdings and boost the company's financial resources, aligning the interests of shareholders with those of employees This innovative approach, recently adopted by the company, has led to notable successes and serves as a recommended strategy for businesses seeking effective employee motivation.
1.6.2 Experience of Coca-Cola Beverages Vietnam Limited
Nguyen Thi Minh Phương's 2015 master's thesis, "Work Motivation of Office Staffs in Ishigaki, Vietnam," highlights Coca-Cola Beverages Vietnam Limited as a wholly-owned subsidiary of the Coca-Cola Group, a leading multinational corporation The company boasts a diverse workforce characterized by youthful enthusiasm and dynamism, fostering a professional environment that promotes personal development and high performance To achieve sustainable growth, both Coca-Cola Group and Coca-Cola Beverages Vietnam prioritize enhancing work motivation across various sectors.
Effective duty assignment involves rotating staff through different positions to identify their best-fit roles, ultimately retaining talent This strategy enhances labor organization within the company and provides a competitive edge in human resources, product quality, and pricing.
The enterprise aims to foster a vibrant workplace by attracting, developing, and retaining a diverse and talented workforce It encourages each individual to enhance their skills and strengths while supporting users in boosting their creativity and enthusiasm in business activities.
Coca-Cola strictly prohibits child labor in all business operations and among its suppliers, ensuring a fair working environment for all employees The company is committed to providing equal opportunities for promotion based on individual capabilities, fostering a culture of growth and development.
Effective employee acquisition involves transparent communication during corporate restructuring, ensuring that employees understand the reasons and implications of changes The company actively seeks feedback and addresses any inquiries, fostering an open dialogue to enhance trust and engagement.
Coca-Cola prioritizes employee feedback and attitudes, allowing staff to express their opinions through multiple channels The company ensures a transparent claim handling process accessible to all employees, as outlined in general contract agreements.
Coca-Cola operates in over 200 countries and generated revenue of $48 billion in 2012, ranking it as the 70th largest economy globally, alongside Slovenia and Costa Rica In Vietnam, Coca-Cola employs more than 16,000 individuals, and its human resources employment and training practices are regarded as valuable lessons for other companies to learn from.
1.6.3 Lesson for Truong Hai Automobile Joint Stock Company
Motivation experiences from some companies unveiled partial effectiveness of work motivation The lessons are drawn out for Truong Hai Automobile Joint Stock Company, concretely:
In order to create the high quality and stable human resources, the work motivation must be actively launched by the Company
To effectively retain talent, it is essential to establish well-structured salary, bonus, and benefits policies that meet industry standards Providing optimal working conditions will motivate employees and inspire them to maximize their performance, ultimately enhancing overall productivity.
To foster a strong bond between employees and the company, it is essential to align employee benefits with business performance The company's objectives should be clearly communicated and incentivized through specific rewards when these goals are achieved Implementing an effective recognition and encouragement system will empower employees to enhance creativity, drive innovation, and improve both work performance and product quality.
Employees are encouraged to contribute viewpoints and recommend the solutions to develop enterprise, renovate the work and their benefit-related issues, ensuring the democracy in the Company
Chapter 1 provides a comprehensive literature review on work motivation concepts and factors influencing employee motivation, drawing from Vietnamese and international authors' theories on job satisfaction This theoretical foundation serves as a reliable basis for analyzing the current state of work motivation and informing an onsite survey to develop targeted solutions for enhancing sales staff motivation at Truong Hai Automobile Joint Stock Company, ultimately supporting corporate growth and development.
RESEARCH METHODOLOGY
Research methodology
Phỏng vấn thử Tham khảo ý kiến Điều chỉnh bảng hỏi
Figure 2.1: Survey and investigation procedure
Questionnaire is designed through steps:
Step 1: Design the questionnaire in accordance with the factors affecting the work motivation, job satisfaction of sale staff
Step 2: Before survey, consult the management, HR department and conduct trial interview with 10 sales staff from Sales Department to verify whether the the questionnaire contents are suitable
Step 3: Correct the questionnaire contents properly before the survey is launched
Conduct trial interview Consult the viewpoint
Prepare the list of sale staff 150 questionnaires were delivered to respondents
Re-collect the responded questionnaires and check whether the questions in the questionnaire are left and the questionnaires are valid
Collect the primary data sources: Questionnaire, interview questions
Collect the secondary data sources: the Company's financial statements, regulations, by-laws, review report, treatment policies, welfare regulations, HR report, HR change analysis
Data collection period: From 2015 to 2018
Summarize the results in the questionnaire as analysis and evaluation basis
Interviews were conducted with both retired and current sales staff of the company to clarify aspects not fully addressed by the questionnaire, thereby providing a comprehensive understanding of the quantitative data gathered in the study.
Collected data was summarized, classified and analyzed; analysis - comparison was conducted to summarize the results.
Research process
Step 2: Literature review of the study
Step 4: Primary interview and consultation
Step 8: Data collection and analysis
Step 9: Preparation of study report
Study assumption
This study utilizes the Job Descriptive Index (JDI) scale to assess employee job satisfaction, focusing on key factors such as job attractiveness, opportunities for promotion and training, quality of working relationships, income and welfare benefits, reward and recognition policies, the working environment, corporate brand and culture, and leadership style.
Figure 2.2: Factors affecting the employees’ work motivation
- What are factors affecting the employees’ work motivation?
- How does each factor affect?
- The employees’ work motivation is improved by which way?
Scale design
Scale used in the questionnaire is mainly 5-point Likert scale, varying from
The 5-point Likert scale is utilized to assess the observation variables of both independent and dependent variables, allowing respondents to express their level of satisfaction ranging from "Very dissatisfied" to "Very satisfied."
Job attractiveness Income, welfare Leadership style
Work relationship Brand, corporate culture
5 Very satisfied Moreover, the nominal scale is applied in the questionnaire to measure the personal data variables related to the employees such as: full name, gender, age, qualification, service length
Table 2.1: Personal data PERSONAL DATA
The scale is used to measure the employees’ work motivation:
1 The job is suitable with your personality and capacity 1-2-3-4-5
2 The job inspires the great passion and interest 1-2-3-4-5
3 Your job is extremely challenging 1-2-3-4-5
4 Your job helps to discover your personal capacity 1-2-3-4-5
5 Proper duty assignment is applied 1-2-3-4-5
Table 2.3: Promotion opportunities and training scale
6 Specific development and promotion road map is applied by the
7 Promotion opportunities are always offered to the qualified persons 1-2-3-4-5
8 The promotion opportunities are clear, public and transparent 1-2-3-4-5
9 Training is fully organized to outperform the job and develop the expertise 1-2-3-4-5
10 Training are characterized by proper learners, qualification and contents 1-2-3-4-5
11 Training courses help you to successfully improve the expertise, confidence and smart communication in work handling 1-2-3-4-5
12 The job helps you to enhance the relationships with various friends, colleagues and partners 1-2-3-4-5
13 The job helps you to enhance the relationships with various entrepreneurs, agencies and industries 1-2-3-4-5
14 The job helps you to successfully develop the sustainable relations with friends, colleagues and mutual support in the job and life 1-2-3-4-5
Table 2.5: Income and welfare scale
15 Current salary is suitable with your capacity and contributions to the Company 1-2-3-4-5
16 The Company’s business bonus policies are clear, fair and deserved to your achievements 1-2-3-4-5
17 Traveling allowances ensure the actual spending 1-2-3-4-5
18 Treatment policies focus on health, spirit and living demand of the employees 1-2-3-4-5
19 Welfare policies demonstrate the Company’s great concern on its officials and employees 1-2-3-4-5
20 Welfare policies encourage the employee’s long-time attachment to the Company 1-2-3-4-5
Table 2.6: Award and recognition policy scale
21 Award policy is deserved with the employee’s work performance, achievement and contributions 1-2-3-4-5
22 Award policy is public, clear, transparent and timely 1-2-3-4-5
23 The employee’s working capacity and performance are properly recognized by the leaders 1-2-3-4-5
24 The award and recognition policies are consistently applied by the
25 The Company’s bonus level is suitable with the premise in the automobile business market 1-2-3-4-5
26 Working equipment and tools are fully provided by the Company 1-2-3-4-5
27 The colleagues are easy-going, open-hearted and reliable 1-2-3-4-5
28 The colleagues are available to share experience and support to outperform the assigned tasks 1-2-3-4-5
29 The working style is professional and friendly 1-2-3-4-5
30 The employee’s initiatives are attentively listened and recognized to renovate the work 1-2-3-4-5
Table 2.8: Brand and corporate culture scale
31 You are proud about the Company’s brand 1-2-3-4-5
32 You are proud to be a member of the Company 1-2-3-4-5
33 Sustainable business development strategy is applied by the
34 Premium products and services are always offered to the highest satisfaction of the customer and the society 1-2-3-4-5
35 You loves and takes pride about the corporate culture 1-2-3-4-5
36 You are happy to realize that the corporate culture is highly appreciated by the customers and partners 1-2-3-4-5
37 Employee’s contributions and devotion are always recognized by the managers 1-2-3-4-5
38 The managers respect and treat employees, fairly 1-2-3-4-5
39 The managers train, instruct, consult and support the employees to outperform the assigned tasks 1-2-3-4-5
40 The managers always listen and recognize the employee’s comments 1-2-3-4-5
41 The managers are always smart and sophisticated when criticism is made 1-2-3-4-5
42 The managers inspire and motivate the employees to outperform the assigned tasks 1-2-3-4-5
43 The managers always protect the legitimate benefits of employees 1-2-3-4-5
44 Any questions may be openly exchanged and shared with your managers 1-2-3-4-5
Work motivation and working attitude of employees
Table 2.10: Employees’ work motivation scale
45 You always make the greatest effort to outperform the assigned tasks in any circumstances 1-2-3-4-5
46 You are available to take far business trip when the superior’s rotation order is approved to move to other internal entity to work 1-2-3-4-5
47 You are active to learn and willing to join the in-depth training courses to improve the qualification 1-2-3-4-5
You are always aware of strictly adhering to the Company's regulations, by-laws and well integrating with the corporate culture
49 You always prepare the specific working schedule and objectives 1-2-3-4-5
Please, arrange the factors affecting employee’s work motivation from top-to-bottom priority (from 1 to 8):
Summary of Chapter 2: This Chapter describes the research methodology and procedures, including: scale design, survey and investigation, interview and data analysis methods after the results are collected.
EXISTING STATUS OF MOTIVATING SALE STAFF IN
Introduce of Truong Hai Auto Corporation
3.1.1 Overview of Truong Hai Auto Corporation
Coporate name: Truong Hai Auto Corporation (THACO)
Headquarter: 10 Mai Chi Tho, An Loi Dong Ward, District 2,
Founder – Chairman: Mr Tran Ba Duong
Slogan: Improve new – To Future the Future
1997: Established as an Automotive Trading & Services Company Ltd
2004: Started assembling trucks in the new factory (Thaco Truck) in Chu Lai Industrial Park
2007: Established KIA Assembling Factory (Thaco KIA)
2007: Equitized to Truong Hai Auto Corporation
2008: Established Infrastructure Development Company (Thaco IZD)
2011: Established Bus Manufacturing Factory (Thaco Bus) and Mazda
2012: Established Port Operations Company and acquired Special Vehicles
Manufacturing Company (SMT in Korea)
2017: Established Mazda Assembling Factory Mazda largest in Southeast Asia
Multi–industry corporation automobile and mechanics as core bussiness
Develop complementary professions including: investment and construction, logistics, agricul ture, commerce and service
Delivering values to customers and society and making substantial contribution to the economy
Having good mind and mature:
Our commitment is to foster a responsible company that enhances social development and improves the quality of life for employees and communities We aim to evolve into a leading regional industrial group, particularly in automobile manufacturing and its supporting industries, with a focus on sustainable growth Our goal is to significantly contribute to the socio-economic and cultural advancement of Vietnam, particularly in the realm of Vietnamese automobile engineering.
The Company-labeled culture is developed with great Mind and Mature Accordingly, Mind is the internal cultural force and Mature illustrates the culture via product
DEDICATION: Work wholeheartedly and responsibly with everyone and the company Be responsible for yourself, your family, colleagues, companies and products
HONESTY: Be honest with yourself; Take responsibility for any mistake or failure to get the tasks done; Being truthful and ready to defend what is right
INTELLIGENCE: Learn to improve your knowledge, think and act independently; Be creative in your respective fields; Practice the behavior culture
CONFIDENCE: Act confidently for the company development; Be self- confidence in work and communication
RESPECT: Prioritize company interests over the personal interests; respect the collective, customers, supervisors and colleagues through daily behaviors
PRESTIGE Be loyal to the company; keep promise with colleagues and customers;
ENTHUSIASM: Listen patiently to the opinions of supervisors, colleagues, and customers; Be dedicated to work and company’s development; Be kind and loyal to everyone;
CONVENIENCE: Cultivate a favorable and effective collaboration with colleagues in the company; Be friendly to facilitate mutual communication
Existing status on work motivation of sale staff
3.2.1 Salary and salary-based allowances
Salary of sale staff is paid in accordance with the title hierarchy, including positions: Apprentice, sales advisor, sales team leader, Deputy Sales Manager, Sales Manager
Deputy Sales Manager Main official
Sales staff, excluding the manager and Deputy Sales Manager, will follow an alternative sales duty schedule at the Automobile Showroom after regular hours, from 5:00 PM to 6:00 PM, as well as on Sundays Employees scheduled to work on Sundays will not receive additional pay but will be compensated with a day off on other working days.
The annual HR review assesses employee performance over the past year, identifies necessary training programs, outlines individual development schedules, and serves as a foundation for salary adjustments.
Salary = Salary scale by manday + Leave payroll + Salary in the public holidays and New Year Festivals + Allowances
Manday-based salary scale: calculated by number of actual working days in the month
Employees receive their annual leave payment in the month it is applied, amounting to 70% of their salary scale Unused leave days are compensated at the end of the year based on the actual salary scale Additionally, for every five years of service, employees earn an extra paid leave day.
Payroll in public holidays and New Year Festival:
+ Employees with salary scale less than VND 11 million shall be enjoyed with 50% of salary scale
+ Employees with salary scale over VND 11 million shall be enjoyed with 100% of salary scale
+ Duty allowance: 10%- 20% of salary scale as the case may be
+ Allowance for service length: 5% and 10% of salary scale for
5 -10 years and over 10 years, respectively + Petrol allowance: 25 liters of petrol/month applied for the employees with over 20km distance from home to the Company
Bonus salary is comprised of: 13 th monthly salary bonus and bonus by sale performance
13 th monthly salary bonus: The bonus shall be applied, corresponding to the ratings in accordance with the annual ratings (Excellent, Good,
Fairy Good, Fairy Average and Average)
+ Applied for positions of: apprentice, sales advisor, sales team leader + Not applied for positions of Sales Manager and Deputy Sales Manager
+ Bonus for Sales Department Bonus is divided to each individual by contribution
Bonus fund = (Bonus norm * Vehicle sales) – Income salary fund
Bonus division to individual = Bonus fund * contribution percent (%)
+ Bonus norm: sales commission per vehicle Such norm is monthly designed by market factor in accordance with the income premise of sales staff from other companies
+ Vehicle sales: it refers to vehicles sold to the customer and liabilities are successfully collected
+ Income salary fund: It refers to total salary actually working by man-day of all sale employees in accordance with the bonus policy
The contribution percentage (%) is determined by evaluating individual Key Performance Indicators (KPIs), which include factors such as sales achievement, customer satisfaction rates, product knowledge, training participation, work attitude, and adherence to company regulations and policies.
Regulations on social insurance, health insurance, severance insurance and maternal treatment are fully complied as prescribed by the State
Annual health examination is organized for all staff and employees
Lunch is offered to ensure the food safety and hygiene and lunch time for the employees
Gifts are delivered on the occasions of the international Women’ Day (8 March) and the Universal Children's Day (1 June)
Entertainment, recreation, tourism and sport activities are not launched by the Company
Compliments are offered to the illness, funeral and wedding occasion as follows:
Cash In kind Cash In kind
Deadth of official and employee
VND 5,000,000 (Payment for last respects to the deceased)
VND 2,000,000 (Payment for last respects to the deceased)
(parents, parents in-law, wife/husband, children)
VND 1,000,000 (Payment for last respects to the deceased)
Support treatment for unexpected difficulties:
Allowances for unexpected difficulties Trade union member Employee
The employee is contracted with fatal disease or disaster, risks, resulting in economic difficulties
The employee's family (wife/husband, natural children, natural parents directly nurtured by the employee) is difficult, risky and contracted with disease, resulting in economic difficulties
Annual award is offered to children of Trade union members and employees with excellent work performance in study and life The award level is VND 1 million/child
The Company adheres to funeral support regulations aligned with group-based mutual support, which is deducted from employee salaries This support extends to parents, parents-in-law, biological children, legal spouses, adopted parents, and legally recognized adopted children, in accordance with the Company's established guidelines.
Less than VND 8 million VND 5,000 million/time
From VND 8 million to less than VND 25 million VND 10,000 million/time
From VND 25 million to less than VND
VND 45 million or more VND 40,000 million/time
Death of parents, parents in-law, natural children:
Support level = Income salary scale * KPI * Service length coefficient * 70%
Support level = Income salary scale * Service length coefficient * 100%
KPI: Rated by HR evaluation
Service length coefficient: Calculated by the time since date of adhesion to the Company
The background training is held for the new employees, including:
Training course on working environment integration
Training course on working regulations and rules
Knowledge about automobile products and rivals
Knowledge about sales and delivery procedure
Sales software use skills and reporting
Employees frequently receive training and assessments on new product knowledge, marketing, and essential sales soft skills Sales Managers and Deputy Sales Managers undergo comprehensive training programs focused on HR management and advanced sales skills, culminating in certification from recognized professional training institutions.
The employees assigned to overseas study must sign the employment commitment with the Company at least 2 years since the date of course adhesion If
2 year service is not assured, the employees shall compensate for all expenses of the join training course
Moreover, the annual training and issuance of certificate on labor safety and fire safety for all officials and employees by the Company
The development and promotion roadmap for officials and employees has been strategically outlined from the outset Sales staff will progress through a clearly defined hierarchy, advancing from Sales Advisor to Sales Team Leader, then to Deputy Sales Manager, Sales Manager, Sales Director, and ultimately to Branch Director.
The annual HR evaluation and staffing are conducted in accordance with the
To ensure alignment with current business conditions, a company's organizational structure must be effectively tailored This approach facilitates the planning of managerial levels and establishes a clear promotion roadmap, along with identifying necessary training courses to achieve success.
3.2.6 Working environment and corporate culture
Discipline is crucial in adhering to the Company's regulations, which encompass working hours, uniform standards, and the protocols for entering and exiting the premises All officials and employees, including sales staff, are required to comply with these guidelines to maintain a professional environment.
“Delivery Note” confirmed by the managers, specifying the reasons and time for going out), working attitude, operating attitude and 5S Violations repeated for over
3 consecutive times shall be disciplined in writing in front of the Company If it is still repeated, the highest discipline, i.e., dismissal, shall be applied
Main findings
Employees are fully provided with working equipment, tools and instruments The working space is well ventilated, comfort and clean
The work performance aims to the overall benefits of the team and group, hence, the working competitiveness and individualization are restricted
Interacting with diverse customers allows employees to build valuable relationships with friends and partners, enhancing both their professional and personal lives However, achieving success in these interactions necessitates strong communication skills and strategic thinking.
The colleagues are friendly, open-hearted, and mutual respected and sharing This is considered as the Company’s strengths when the collective and united corporate culture
Figure 3.1: Labor structure by gender of sale staff
(Source: Statistics at Thaco in Ha Noi area)
The Company’s gender-based labor structure unveiled that the number of male sale staff makes up the majority against total sale staff, fulfilling 72%
For the automobile business sector, the Company's gender-based labor structure is completely proper
Figure 3.2: Labor structure by age of sale staff
(Source: Statistics at Thaco in Ha Noi area)
The majority of the company's sales staff is comprised of young professionals aged 25 to 35, with the largest group, 52%, falling within the 25-30 age range Those aged 31-35 represent 30% of the workforce, while employees over 35 account for 14% Additionally, individuals under 25 make up 5% of the sales team.
Figure 3.3: Labor structure by qualification
(Source: Statistics at Thaco in Ha Noi area)
Sale staff qualification is characterized by mainly university, accounting for 82%, next is the postgraduates, accounting for 10% and the colleges accounting for 8%
Figure 3.4: Labor structure by service length
(Source: Statistics at Thaco in Ha Noi area)
The majority of sales staff have a service length of 1-3 years, comprising 48%, while 37% have been with the company for less than one year This trend indicates that the sales team is predominantly young and suggests a relatively low level of attachment to the company among employees.
Figure 3.5: Labor structure by income
(Source: Statistics at Thaco in Ha Noi area)
Sale staff’s income mainly varies within the range of VND 16 million - VND
In a recent analysis of income distribution, 20 million people, representing 41%, fall within the income bracket of VND 20 million Following this, 30% of the population earns between VND 11 million and VND 15 million Notably, the highest income range of VND 26 million to VND 30 million constitutes a mere 3% of the total population.
3.3.6 Statistics of factors affecting the work motivation
150 questionnaires were delivered by the author After screening, 120 valid questionnaires were collected with statistic results as follows:
Table 3.1: Sale staff’s evaluation on job attractiveness Content
1 The job is suitable with your personality and capacity 0.5% 8.3% 29.2% 62.0% 0.0%
2 The job inspires the great passion and interest 0.0% 1.7% 48.3% 50.0% 0.0%
3 Your job is extremely challenging 1.5% 2.5% 20.8% 70.2% 5.0%
4 Your job helps to discover your personal capacity 0.0% 0.8% 40.0% 49.2% 10.0%
5 Proper duty assignment is applied 2.0% 5.2% 30.8% 55.0% 7.0%
(Source: 2018 survey findings of the author)
While most sales staff expressed satisfaction with their current roles, around 50% of respondents indicated a lack of inspiration in their jobs This insight highlights a crucial area for improvement, as enhancing employee motivation is essential for fostering a more engaged and productive workforce.
Table 3.2: Sale staff’s evaluation on promotion opportunities and training
Content Very dissatisfied Dissatisfied Unsure Satisfied Very satisfied
Specific development and promotion road map is applied by the
Promotion opportunities are always offered to the qualified persons
The promotion opportunities are clear, public and transparent
Training is fully organized to outperform the job and develop the expertise
Training are characterized by proper learners, qualification and contents
Training courses help you to successfully improve the expertise, confidence and smart communication in work handling
(Source: 2018 survey findings of the author)
The highest satisfaction was recorded in the factor that the training is fully, properly organized, accounting for the percent (%) of 53% - 56%
The highest dissatisfaction was recorded for the promotion opportunities, making up nearly 32%
Therefore, the Company should maintain and further improve the training and renovate the management policies to create more promotion opportunities for the employees
Table 3.3: Sale staff’s evaluation on work relationship
Content Very dissatisfied Dissatisfied Unsure Satisfied Very satisfied
The job helps you to enhance the relationships with various friends, colleagues and partners
The job helps you to enhance the relationships with various entrepreneurs, agencies and industries
The job helps you to successfully develop the sustainable relations with friends, colleagues and mutual support in the job and life
(Source: 2018 survey findings of the author)
Over 70% of respondents expressed satisfaction with their work relationships, while less than 2% reported dissatisfaction, indicating strong interpersonal dynamics among the sales staff This positive outcome highlights the importance of effective communication skills, as employees engage with a diverse range of customers across various industries, fostering significant professional connections.
Table 3.4: Sale staff’s evaluation on income and welfare
Content Very dissatisfied Dissatisfied Unsure Satisfied Very satisfied
Current salary is suitable with your capacity and contributions to the
The Company’s business bonus policies are clear, fair and deserved to your achievements
Traveling allowances ensure the actual spending
Treatment policies focus on health, spirit and living demand of the employees
Company’s great concern on its officials and employees
Welfare policies encourage the employee’s long-time attachment to the
(Source: 2018 survey findings of the author)
Most of sale staff who was from very dissatisfied to dissatisfied with the Company's bonus, treatment and welfare policies made up 70%
The interview with the sales staff highlighted key issues such as unclear bonus policies, inconsistent sales bonus norms, delayed bonus approvals, and improper calculation methods, which hindered the sales team’s ability to determine their total income accurately Additionally, while the Company's welfare and treatment policies were outlined, they lacked meaningful impact on employees' physical and mental well-being To enhance employee satisfaction and productivity, more team-building activities, sports exchanges, seasonal trips, and birthday gifts should be introduced These insights form the basis for recommending improvements to the bonus and treatment policies for employees.
Table 3.5: Sale staff’s evaluation on award and recognition policy
Content Very dissatisfied Dissatisfied Unsure Satisfied Very satisfied
Award policy is deserved with the employee’s work performance, achievement and contributions
Award policy is public, clear, transparent and timely
The employee’s working capacity and performance are properly recognized by the leaders
The award and recognition policies are consistently applied by the Company
The Company’s bonus level is suitable with the premise in the automobile business market
(Source: 2018 survey findings of the author)
The survey results revealed that employee dissatisfaction regarding awards and recognition closely mirrored their feelings about income and welfare factors Despite this dissatisfaction with company policies, respondents acknowledged that direct managers provide fair evaluations and recognition of their work performance This highlights the need for the Company to actively revise and enhance its award, bonus, and income policies to better motivate employees and foster their contributions to the Company's sustainable development.
Table 3.6: Sale staff’s evaluation on working environment
Content Very dissatisfied Dissatisfied Unsure Satisfied Very satisfied
Working equipment and tools are fully provided by the Company
The colleagues are easy- going, open-hearted and reliable
The colleagues are available to share experience and support to outperform the assigned tasks
29 The working style is professional and friendly 0.0% 5.8% 20.8% 62.2% 11.2%
The employee’s initiatives are attentively listened and recognized to renovate the work
(Source: 2018 survey findings of the author)
The majority of respondents expressed satisfaction with their working environment, particularly appreciating the availability of necessary equipment and the supportive nature of their colleagues However, the recognition of employee initiatives for workplace improvements received notably lower satisfaction ratings, indicating a need for enhancement in this area moving forward.
Table 3.7: Sale staff’s evaluation on brand and corporate culture
Content Very dissatisfied Dissatisfied Unsure Satisfied Very satisfied
31 You are proud about the
32 You are proud to be a member of the Company 0.0% 4.2% 29.2% 60.2% 6.4%
Sustainable business development strategy is applied by the Company
Premium products and services are always offered to the highest satisfaction of the customer and the society
You loves and takes pride about the corporate culture
You are happy to realize that the corporate culture is highly appreciated by the customers and partners
(Source: 2018 survey findings of the author)
A significant 80% of respondents expressed strong appreciation for the Company's business development strategy, while dissatisfaction primarily stemmed from concerns about corporate culture Some employees felt that strict management of working hours and campus access was overly restrictive, advocating for greater flexibility for sales staff based on performance and task fulfillment However, the author noted that these concerns are not critical to system management, especially for a large-scale company like Thaco, where expectations may arise from a lack of understanding of the necessary management policies that support a workforce of over 18,000 members.
Table 3.8: Sale staff’s evaluation on leadership style
Content Very dissatisfied Dissatisfied Unsure Satisfied Very satisfied
Employee’s contributions and devotion are always recognized by the managers
38 The managers respect and treat employees, fairly 1.8% 7.5% 23.3% 61.0% 6.4%
The managers train, instruct, consult and support the employees to outperform the assigned tasks
The managers always listen and recognize the employee’s comments
The managers are always smart and sophisticated when criticism is made
The managers inspire and motivate the employees to outperform the assigned tasks
The managers always protect the legitimate benefits of employees
Any questions may be openly exchanged and shared with your managers
(Source: 2018 survey findings of the author)
Sales staff involved in the survey expressed satisfaction with their direct managers but requested more training and clearer instructions on tasks They emphasized the need for experience sharing in problem-solving and customer claim processing, as well as updates on company policies and business perspectives By addressing these areas, the gap between subordinates and superiors can be effectively reduced.
3.3.6.9 Work motivation and working attitude of employees
Table 3.9: Work motivation and working attitude of employees
You always make the greatest effort to outperform the assigned tasks in any circumstances
You are available to take far business trip when the superior’s rotation order is approved to move to other internal entity to work
You are active to learn and willing to join the in-depth training courses to improve the qualification
You are always aware of strictly adhering to the Company's regulations, by-laws and well integrating with the corporate culture
49 You always prepare the specific working schedule and objectives 0.0% 7.5% 31.7% 42.5% 18.3%
Please, arrange the factors affecting employee’s work motivation from top-to- bottom priority (from 1 to 8):
(Source: 2018 survey findings of the author)
The survey unveiled that 88% of respondent give out the level affecting their work motivation with the top-to-bottom priority, namely:
8 Brand and corporate culture Among which, the affecting factors on the top priority is income, welfare and award
The employee questionnaires revealed that motivation and work attitudes were not particularly strong in relation to the Company's operational scale However, a notable finding was that over 70% of employees were consistently available to complete their assigned tasks This positive aspect highlights the need for the Company to refine and innovate its salary and treatment policies to better motivate employees in the future.
Contributions of the study
Literature on motivation and motivating for the employees in enterprise is systematized
The study highlights key motivational factors that drive employee engagement, including income and welfare, bonus and award policies, job attractiveness, and the working environment Additionally, it emphasizes the importance of promotion opportunities, training, leadership style, work relationships, as well as brand and corporate culture in fostering motivation among employees.
The company's existing bonus and award policies, along with its welfare initiatives, are ineffective in motivating employees This lack of motivation contributes to a decline in employee loyalty, as evidenced by a decrease in staff with over three years of service and a rise in employees with less than one year of tenure.
Feasible solutions are successfully designed and developed to enhance the work motivation for Thaco’s sale staff
Chapter 3 provides an overview of Thaco's business situation and its historical development, examining the current state of employee motivation within the company It also presents an analysis of factors influencing work motivation, as evaluated by employees through questionnaires.
