Improving employee motivation at NTT DATA vietnam

ABBREVIATIONS APAC Asia - Pacific CEO Chief Executive Officer EIT Enterprise Information Technology FDI Foreign Direct Investment IDE Integrated/Interactive Development Environment JICA

NATIONAL ECONOMICS UNIVERSITY

NATIONAL ECONOMICS UNIVERSITY

BUSINESS SCHOOL

DO NHU VY

IMPROVING EMPLOYEE MOTIVATION

AT NTT DATA VIETNAM

MASTER OF BUSINESS ADMINISTRATION THESIS

SUPERVISOR: ASSOC PROF DR NGUYEN VAN THANG

HANOI - 2018

I would like to express my gratitude to Assoc Prof Dr Le Lan Huong - Director

of Business school at Vietnam’s National Economics University She is the manager of

my school where I study MBA course, also is my enthusiastic instructor in subject

“Business research methodology” She equips me with a theoretical foundation, helped

me creating a solid knowledge base in business researching

In research proposal reviewing process, I received many constructive comments, valued recommendations, suggestions from research-proposal-reviewing sub-committee: Assoc Prof Dr Dao Thi Thanh Lam (also is my instructor in subject

“Managing Human Resources”), Assoc Prof Dr Vu Thanh Hung (also my instructor

in subject “Business Strategic management”), Assoc Prof Dr Bui Duc Tuan (also Deputy Director of Business school at Vietnam’s National Economics University)

I would like to thank many other teachers, officers at Vietnam’s National Economics University who I cannot mention, list out fully

I thank to NTT DATA Vietnam Limited company’s officers, employees because they facilitate me about time, suitable workload, help me in work - life - study balance

in the thesis research conduction time

Of course, I would like to thank my family members: parents, brothers, and sisters who supported me in the time of thesis writing, also in other aspects of my life They facilitate me good conditions support my working, studying, and researching

Hanoi, December 2018

Do Nhu Vy

TABLE OF CONTENTS

ABBREVIATIONS 3

LIST OF TABLES 4

LIST OF FIGURES 5

GLOSSARY 6

EXECUTIVE SUMMARY 7

CHAPTER I INTRODUCTION 9

1.1 Rationale of the research 9

1.2 Research objectives 10

1.3 Research questions 11

1.4 Research methodology 11

1.4.1 Research process 11

1.4.2 Data collection 13

1.4.3 Data analysis 13

1.5 Scope of research 13

1.6 Thesis structure 14

CHAPTER II THEORETICAL BACKGROUND ON EMPLOYEE MOTIVATION 15

2.1 Term “motivation” 15

2.2 Literature review 15

2.3 Theoretical framework on analyzing employee motivation 20

2.4 Attributes for employee motivation analysis 21

CHAPTER III RESEARCH DESIGN 24

3.1 Overview of research design 24

3.2 Research secondary data at desk 25

3.3 Qualitative research 25

3.4 Quantitative research 26

3.4.1 Questionnaire designing 26

3.4.2 Sampling 27

3.4.3 Data entry 28

3.5 Suggestion for executives for improving employee motivation 28

CHAPTER IV RESULT AND DISCUSSION 29

4.1 Secondary data collection 29

4.2 Overview information about NTT DATA Vietnam 29

4.3 Managing human resources at NTT DATA Vietnam 30

4.3.1 Hierarchical structure 30

4.3.2 Job titles 35

4.3.3 Career paths 36

4.3.4 Performance evaluation and salary 41

4.3.5 Reward 43

4.3.6 Training 43

4.4 In-depth interview result 43

4.5 Current situation of employee motivation 48

4.6 Survey analyzing 48

4.6.1 Coding observed variables 48

4.6.2 Evaluate scale measurement reliability 51

4.6.3 Result of Descriptive statistics analysis 53

CHAPTER V CONCLUSION 66

5.1 Contribution of theoretical framework 66

5.2 Suggestion for improving employee motivation at NTT DATA Vietnam 66

5.2.1 Pay attention to the factors that affect employee motivation 66

5.2.2 Re-examine result after improving factors 69

5.3 Limitation of the research 69

REFERENCE 69

APPENDICES 73

APPENDIX I IN-DEPTH INTERVIEW 73

APPENDIX II QUESTIONAIRE 75

APPENDIX III SUPPLEMENT STEPS IN DATA ANALYSIS 79

ABBREVIATIONS

APAC Asia - Pacific

CEO Chief Executive Officer

EIT Enterprise Information Technology

FDI Foreign Direct Investment

IDE Integrated(/Interactive) Development Environment JICA Japan International Cooperation Agency

MBA Master of Business Administration

N/A Not answer

NDVN NTT DATA Vietnam

HR Human resources

PIF Public Information Infrastructure

USD United State Dollar

SDK Software Development Kit

LIST OF TABLES

Table 1 Four referent comparisons in Adam's Equity theory 18

Table 2 Human resources are organized in horizontal structure 34

Table 3 Job titles 36

Table 4 Fiscal year, Luna New Year in Vietnam, and Evaluation session 42

Table 5 Employee performance ranking 42

Table 6 Types of rewarding 43

Table 7 Major result of opinion about motivation from interviewees 45

Table 8 Major result of opinion about factor impact to employee motivation in ordering 47

Table 9 Scale reliability analysis of observed variables belong to independence variable “Corporate culture” 51

Table 10 Cronbach's alpha of independency variable "Stability" 52

Table 11 Scale reliability analysis of observed variables belong to independence variable “Stability” 52

Table 12 Scale reliability analysis of independence variables 53

Table 13 Scale reliability analysis of dependence variable 53

Table 14 Descriptive statistics analysis for independence variables 55

Table 15 Ordering from best to worse in factors impact to employee motivation 56

Table 16 Leadership behavior observed variables 59

Table 17 Observed variables in group "Advancement" 60

Table 18 Observed variables of group "Corporate culture" 61

Table 19 Observed variables of "Working condition" 62

Table 20 Descriptive statistics for observed variable "Motivation at work" 63

Table 21 Descriptive statistics of observed variables of motivation 64

LIST OF FIGURES

Figure 1 Process of scientific research 12

Figure 2 Research process for study employee motivation 13

Figure 3 Maslow’s Hierarchy of needs 20

Figure 4 Research model for this thesis 21

Figure 5 Major subsidiaries of NTT Group 31

Figure 6 Major sectors of NTT DATA Corporation 31

Figure 7 Vertical structure of managing human resources 32

Figure 8 Branch structure of NDVN 32

Figure 9 Departments structure of NDVN 33

Figure 10 Career path for software specialist in EIT Business Unit 36

Figure 11 Career path for software specialist in PIF Business Unit 37

Figure 12 Career path for software tester in EIT Business Unit 37

Figure 13 Career path for software tester in PIF Business Unit 37

Figure 14 Coding titles for software specialist 38

Figure 15 Career path for communicator in EIT Business unit 38

Figure 16 Career path (type 1) for communicator in PIF Business unit 38

Figure 17 Career path (type 2) for communicator in PIF Business unit 39

Figure 18 Career path (type 3) for communicator in PIF Business unit 39

Figure 19 Career path for accounting staffs 39

Figure 20 Career path for administration, human resources staffs 40

Figure 21 Career path for employee in Sales department in EIT Business Unit 40

Figure 22 Career path for employee in Sales department in PIF Business Unit 41

Figure 23 Ladder levels when calculating salary 41

Figure 24 Distribution by seniority years of respondents 54

Figure 25 Distribution of genders of respondents 55

Figure 26 Factors affect to employee motivation 56

Figure 27 Salary and welfare observed variables 58

Figure 28 Chart of "Working condition" observed variables 62

Figure 29 Chart of attributes of employee motivation 64

GLOSSARY

APAC Asia - Pacific market region of the NTT DATA corporation, regional

headquarter is NTT DATA Asia Pacific Pte Ltd company at Singapore

SDK

Software Development Kit is typically a set of software development tools that allows the creation of applications for a certain software package, software framework, hardware platform, computer system, video game console, operating system, or similar development platform (Wikipedia)

Employee motivation of knowledge workers of high technology fields even became more important In software industry, at the present, Vietnam is in the process

of international corporation and integration with many developing also many developed countries in the world, skilled labor demand for software development, information system integration is very high NTT DATA Vietnam (NDVN) is FDI company, the subsidiary of NTT DATA Corporation, and NTT DATA Corporation is the subsidiary

of Nippon Telegraph and Telephone - a company ranked 50th in Fortune 2017 Global500 list However, high employee’s turnover rate and low morale at NDVN impact to business operating of NDVN, it is risky for its quality of production and services, also long-term development strategy In few recent years, many NDVN’s employees has left job after short-time working due diverse reasons; A large percentage

of employees who left job are experienced specialists Recruiting alternative staffs cannot fill the shortage left by employees who have left work In a long-term development strategy of the company, high turnover rate of employees is risk for business opportunities and maintaining quality of products, services at NDVN

Many labor issues need attention from managers at NDVN Based on that premise, research objectives of the study include:

+ Current employee motivation at NTT DATA Vietnam

+ Identify factors affect to employee motivation at NTT DATA Vietnam

+ Suggest solution to improve employee motivation at NTT DATA Vietnam Study of employee motivation plays an important role in attracting and retaining talents for the company This thesis used quantitative research also qualitative research methodology Presence of quantitative research methodology is in-depth interview, then the author detects most influence factors to employee motivation through analyzing

interview transcripts Presence of qualitative research methodology is sample choosing, questionnaire designing, analyze survey raw data by statistics methods

The author conducts in-depth interviews with 3 ex-employees, 3 current managers and 3 current employees, the results obtained from surveying for 150 current employees working at NDVN (Hanoi, Danang, Hochiminh city branch office)

In general, the research’s result points out employee motivation at NDVN did not met board of director’s expecting, which makes employees at NDVN become to dissatisfied, for example: low salary for junior level staffs, new technology is not applied, ineffective training, bias in position appointment, etc

Based on the result of study, the researcher has finding that employee motivation

at NDVN affected by many factors: Salary and welfare, Leadership behavior, Working condition, Advancement, Autonomy at work, Corporate culture, and Colleagues relationship In order to improve employee motivation, NTT DATA corporation in general and NDVN, in particularly should improve incentive through salary and welfare; concretizing and implementation wage and welfare policy exactly as prescribed Give employee chances applying new technologies in software production for improving factor “Advancement”

CHAPTER I INTRODUCTION 1.1 Rationale of the research

Motivation function includes activities in human resources manager concerned how to help employees exert themselves at high energy, working with high effort The motivation function is one of the most important yet probably the least understood aspects of the human resources management process Human behavior is always complex Looking for what motivate employees at work is a long-time concern of management, human resources researchers

Labor’s motivation plays an important role at any organization because it gains organization’s operating performance To achieve the organization’s goal, the organization must have many resources: capital, technology, good business macro-environment, favorable geographical location, especially, human resources (sometimes

it called “human capital” because this factor is too important, equivalent to financial capital) Containing high motivation inside employees, that cause employees work actively, progressive, meticulous, carefully Ensuring organization utilize human resources fully In software industry, information system integration field, Vietnam is

in the process of multi-national cooperation and global integration with almost other countries, skilled labor demand in software industry become very high, knowledge workers must work with high motivation for finishing many challenging works

Therefore, improving employee motivation has been becoming an urgent demand for many organizations and companies in Vietnam, including NTT DATA Vietnam (NDVN) NTT DATA Vietnam limited company was founded and officially went into operation on 10/2/2008, According to Mr Wantanabe, General director, NDVN’s employees have skills, knowledge enough to development sophisticated, complex information system and/or software for big enterprise also public sector

In this study, the atuhor just focus on issues of employee motivation at NTT DATA Vietnam due two reasons The first reason is that issues of employee motivation

at NDVN are seriously concerned by management In fact, NDVN faces low working morale from its employees, reflected in high employee turnover rate and un-enthusiasm

in working: Turnover percentage is 25% in fiscal year 2017 (Hanoi branch 25%, Danang branch 20%, Hochiminh city 35%) As estimated, 5 managers and 30 staffs in

three areas stopped working in 2017, because they didn’t feel satisfy with NDVN’s incentive policy Employees join work with low commitment They don’t want to participate in activities what organized by the company, or they are ready to quit if they can seek for another job which is nearer or with higher salary, etc Shorter seniority years, lower working performance, lower loyalty due to lacking motivation cause low-quality products and information system services So NDVN has many problems in managing human resources that affect to performance of the company directly Next reason, this research topic is feasibility for the author in collecting data manner, the author can delivery survey and author can receive feedback with high returned survey percentage, because the researcher is also an employee who worked at NDVN

At the present, many issues of employee motivation at NTT DATA Vietnam

need solving in a systematic approach Therefore, I decide to take the topic: “Improving

employee motivation at NTT DATA Vietnam” for my MBA thesis The research will

give the company’s leaders/managers some important insights into employee motivation at the company

The thesis is a science research, also an applied project Author’s idea is basing

on many previous employee motivation researches (literature review), has a list of popular factors impact to employee motivation at NDVN, through in-depth interview a small number of typical cases (a small number of employees), deciding factors impact

to employee motivation in theoretical framework, decide questionnaire survey, then analyze survey data, hypothesis testing, make suggestion for manager The research uses qualitative research method (in-depth interview) also quantitative research method (analyze statistic data from survey result) The research is combination of human resources managing, statistic, labor psychology, etc based on existing achievement from previous researches then develop research ideas on reality at NDVN

1.2 Research objectives

- Determining current employee motivation

- Identify factors affect to employee motivation at NTT DATA Vietnam

- Suggest solution to improve employee motivation at NTT DATA Vietnam

1.3 Research questions

The research has a root intention, started from manager’s dilemma In these near years, employee turnover rate is very high (from 20% - near 35% in per head office, branch offices) Expenditure for recruiting new employee is very high After recruiting, newcomers need probationary process, they maybe pass or fail, even if newcomer fails, the company lost more expenditure for looking for other candidates, for training, etc

By determining factors affect to employee’s loyalty, motivation, employee performance, reducing employee turnover rate, manager hopes the organization operating effectively, especially in human resources ensuring in also quality and quantity manner When determining factors impact to employee motivation ((In also 3 areas: Hanoi branch, Danang branch, Hochiminh city branch)?), ordering factors from highest to lowest impacting is important for suggestion solution for managers

Research questions are

- How is current employee motivation?

- What are factors affect to employee motivation at NTT DATA Vietnam?

- What are solutions for improving employee motivation at NTT DATA Vietnam?

• Collect and analyzing data

• Write research report and publication

(Source: Thang, N.V., 2017, pp 21)

The author of this thesis inheritances above process, add more detail, tailoring a little in specific context of the company (Because the thesis written does not intent for publication on science journal, therefore purpose “publication” is not necessary) Conducting in-depth interview before designing questionnaire, for assuring choosing factors impacts to employee motivation better As an applied research, section

“executive summary” added

Overview of research

Research question

Theoretical framework

(Source: author)

1.4.2 Data collection

The author used two types of data include primary data and secondary data Primary data collected through in-depth interview with 9 people (6 current employees and 3 ex-employees) and questionnaire Secondary data collected from both internal and external resources External sources include Internet resources, news paper, articles, agency related to employee motivation Internal resources include business report, regulations of the company to get according information about employee motivation, career paths, welfare policy, company’s history, and so on

Research question

Design & conduct In-depth interview

Qualitative data analysis

Questionnaire design

Theoretical framework

Collect and analyzing quantitative data

Write research report & Executive summary Comment & Suggestion

Figure 2 Research process for study employee motivation

left-job employees (in period 1 year or less than from the day he/she left job from NDVN)

1.6 Thesis structure

Chapter I: Introduction

Chapter II: Theoretical background on employee motivation

Chapter III: Research design

Chapter IV: Result and discussion

Chapter V: Suggestion for improving employee motivation

And supplement documents are In-depth interview sheet, Questionnaire for survey, intermediate data analysis result

CHAPTER II THEORETICAL BACKGROUND ON

EMPLOYEE MOTIVATION 2.1 Term “motivation”

Motivation is an important topic in managing human resources In book

“Organizational Behavior” of Kreitner and Kinicki (1998), the term “motivation” is derived from Latin word “movere” what means “move” Motivation is “those psychological process that cause the arousal, direction, and persistence of voluntary actions that are goal oriented” (Mitchell, T R 1982, pp 81) Motivation defined as

“The processes that account for an individual’s intensity, direction, and persistence of

effort toward attaining a goal.” (Robbins, S 2001, pp 156)

In Oxford Leaner’s Dictionaries, “motivation” is a noun, it means “the reason why somebody does something or behaves in a particular way” or “the feeling of wanting to do something, especially something that involves hard work and effort” In this definition of the dictionary, “motivation” stood at a larger context (it is motivation

in all tasks, all types of jobs, not just in company environment) when comparing with the research’s context (at work at NDVN)

Motivation is giving interest, enthusiasm, reasons, motivation or cause a certain behavior or specific action The presence of motivation in all official survival as simple

as drinking behavior is motivated by thirsty Even, motivation can be something from reward for coercion School admission is motivated by a desire to obtain knowledge

2.2 Literature review

Employee motivation has formed and presences in two directions, there are employee motivation from inside himself/herself and outside Intrinsic motivation is something inside of employees, such as money, physical body, talent, desire, passion, dreaming External motivation comes from external factors what are incentive policy, forcing, jealousy from colleagues, challenge, and so on In material perspective, money-earning purpose, social rewarding or avoiding punishment are few examples of external motivation Evaluating personal characteristics is important in studying employee motivation Few people have specific characteristics, but others haven’t these

In book “Contemporary Management”, Gareth R Jones & Jenifer M George defined motivation as “psychological forces that determine a person’s behavior in an

organization, the qualification of a person efforts, and the extent of a patient.” (Jones, G.R and George, J.M., Hill, C.W.L 2003)

Daschler & Ninemeier (1984) written “Motives are a valid state or within an individual that makes the actions of employees a way designed to achieve several goals Taking this broad sense and put it into the context of supervision of hotel operations,

we can say that the motive is what supervisors do not encourage and influence others

to take necessary actions Motivation is, in fact, an internal driving force in the creation

or personal scope provides incentive for the employee to take action.”

In 1990, Drummond has been written “Motivation is for individuals and help explain behavior Motivation is a complex process inside with three components: What make individuals behave in certain ways, what is driving behavior, and what maintains behavior To meet the needs of the employees is very difficult because each employee has different charactistics that affect behavior These factors must be related organizations the mind is self concept, values, attitudes, interest, emotions, personality, and life experiences They must encourage employees through a positive organizational climate that is motivating.”

In the study, author uses combination of those above definitions that “Employee motivation can be explained as the driving force that energinzes, directs and sustains employees toward attaining an organizational goal.” Motivation become to important toward society (country, economics), organization (company), and an individual (employees, staffs, workers)

Creating motivation in per person makes labor productivity higher, when employees have motivation, employees love his/her job and they willing to work hard, then good result is personal productivity improved significantly Therfore, employees’ productivity increased than wage will raise At another perspective, creativity is often promoted if people are comfortable, volunteer when doing certain job More engagement with work and the present company: When labors feel their job are exciting works, they form inside their commitment to the organization An additional benefit for employees, when the work was coordinated, they will see their own efforts to benefit and achieve work outcome effectively The good result of work contributes back to

improve employee themselves as a round-trip cycle

Motivation toward to organization: Human resources in the organization will be using the most efficient and can optimally exploit the capabilities of employees and improve business efficiency Form a valueable asset of the organization is a team of skilled employees, with passion, with commitment, engaged with the organization and attract more talented people to work for the organization Creating an atmosphere work

of work hard, comfortable, contributing to building company culture helps ehancing

brand-name value and good image of company

Motivation impacts to society, employee motivation supports per person accomplish goals, his/her purpose, spiritual life of each person will become plentiful, live in wealthy, then forming new values to society indirectly Indirect labour motivation to build more and more prosperous society more based on enterprise development When their needs are met, society members have a comprehensive living

and they become happier, better learning conditions, better health care

In 1946, Foreman Facts at Labor Relations Institute of New York has been created a survey based on questionnaire, then show model factors impact to employee motivation on industrial workers This research model then become popular, many researchers, institutions applied in many different industries such as:

Research of Kennett S.Kovach (1987) add supplement and given 10 factors motivate employees such as: (1) Joyful job; (2) Fully appreciated finished works; (3) Autonomy in work; (4) Stability job; (5) High salary; (6) Promotion and advancement

in career; (7) Good working conditions; (8) Engagement between line-manager and employees; (9) Disciplining in clever, subtle ways; (10) Supporting from superior to resolve personal issues of employee (Kovach, K.A 1995)

Follow these above researches, many applied researches such as Bob Nelsson, Balanchard Training & development (1991), Colin P Silverthorne (1992), Charles & Mashal (1992), Simons & Enz (1995), Wong, Siu, Tsang (1999) conduct research in this direction

The author of this thesis based on existing research and integrated with in-depth interview process at company, then decide choosing follow factors

(1) Autonomy in work: Follow research “Motivation through the design of work: Test

of a theory” (1976) by JR Hackman and GR Oldham, determine methodologies of working how to make employees motivated from inside of job Employee should

understand working process from start to finish, and they should play a specific important in job, this fact allow employees feel their responsibilities about their works Lastly, doing task must assured has feedback from superior, recognize employee’s achievement, also suggestion, constructing criticism help employee work better at latter tasks Therefore, employee know the real last result of their works

(2) Salary and welfare: Researcher J Stacy Adams given negative state of tension

provides the motivation to do something for correcting it The referent an employee selects adds to the complexity of “equity theory” There are four referent comparisons: Self-inside An employee’s experiences in a different position inside

employee’s current organization Self-outside An employee’s experiences in a situation or position outside

employee’s current organization Other-inside Another individual and/or group of individuals inside employee’s

organization Other-outside Another individual and/or group of individuals outside

organization

Table 1 Four referent comparisons in Adam's Equity theory

(Source: synthesis from Adams, J.S 1963)

Employee maybe compare he/she to colleagues, friends, neighbors, or mates in same/other organizations; or even compare their current job to past jobs There are 4 moderating variables include level in organization, gender, amount of education

team-or professionalism, and length of tenure

)* represents the employee; and value (

)+ reprensents relevant others Salary and welfare also affect to physical needs (eating, housing, dressing, etc.)

of employees directly in Maslow’s Hierarchy of needs (Maslow, A.H 1943) They are most important factors in research of Tony Simons and Cathy Enz (1995) at United States, Canada and research of Kwame R Charles & Lincoln H Marshall (1992) at Caribbean According to Benjamin Artz’s research “Firm size, performance pay and job satisfaction” (2008), welfare play an important role in determine level of job satisfaction In Herzberg’s Two-factor theory, salary belong to hygiene factors group

(3) Advancement: In Herzberg’s Two-factor theory, training and advancement

opportunity belong to hygiene factor group In research of Wong, Siu, Tsang (1999), training and advancement is the most important factor in hotel staffs in Hong Kong

(4) Corporate culture: According to Stephen Overell, 2009, five key factors of

incentive and motivating: Develop corporate’s brand name from inside, communication values of organization, Good leadership, creating joyful and challenge working environment, administration in working result and constant reach excellent The research of N Tavassoli (2008) in article “Branding from the inside out” points out

“Conducting brand-name communication and make it become to lively through human resources make higher profound in employees, feeling better about common target of organization and higher motivation level”

(5) Colleagues relationship: Employees need supporting from colleagues when they

need, looking for comfortable, friendly when working together (Hill, Charles W.L & Jones, Gareth R 2008) Bellingham, 2004 points out, employees must have the devoting for work at colleagues in order to reach best working result Ralph Chami and C Fullenkamp 2002 in research paper “Trust and efficiency” point out, colleagues must

be reliable persons

(6) Leadership behavior: In research “The influence of human resource management

practices on the retention of core employees of Australian organisations: An empirical

study” by Janet Cheng Lian Chew in 2004, employee’s motivation depends on leader’s behaviors, working relationship, corporate culture and structure, working environment The result from research “2012 Global Workforce Study” of Towers Watson, enforcement opinions about direct superior has strong impact to the cement of employee with his/her job, company and willingness to contribute to the success of his/her company

(7) Stability: Follow Maslow’s Hierarchy of needs, people always looking for safety,

and employees are also Stability and safety share almost same characteristics

(Source: Maslow)

(8) Working conditions: Safety, clean, fully facilities office help employees have more

motivation to finish work, according to the research of Kennett S Kovach in 1987

2.3 Theoretical framework on analyzing employee motivation

Based on literature review and in-depth interview at a specific context, the author

of thesis decides these below factors for the research

Safety

Physiological

Love / belonging Esteem

actualization

Self-Figure 3 Maslow’s Hierarchy of needs

(Source: author)

2.4 Attributes for employee motivation analysis

Before deciding factors affect to employee motivation, the author conducted interview with 6 current employees and 3 ex-employees in near time The content of questionnaire for in-depth interview at the appendix

For specifying the above theoretical points in business reality, I use many attributes to evaluate per factor Use a five-level Likert item for measurement:

- Independence variable: Working conditions

+ Company supply working facilities (PC, laptop, internet connection, Wi-Fi, dual-screen for programming, licensed software, development tools, SDK, etc.) fully

+ Working room is clean, silence, enough large, non-toxic factors

Advancement

Working conditions

Autonomy at work

Figure 4 Research model for this thesis

- Independence variable: Stability

+ Employees don’t worry about losing their jobs

+ The company operates stably and effectively

- Independence variable: Advancement

+ The company often has suitable training courses

+ Learn new technology from applying new technology in new software project + Employee has chance to learn from talent colleagues

+ The company has clear career paths and employee feel satisfaction with evaluation to next ladder on the path

- Independence variable: Corporate culture

+ Employees are proud of the company brand

+ Employees recognize that the entire customer partner values the company's brand

+ Employees like corporate culture

+ The company has a sustainable development strategy

+ Employees feel the company’s vision and values is suitable

+ The company always product high quality products also services

- Independence variable: Colleagues relationship

+ Colleagues are reliable and honest

+ Teamwork operate effectively

+ Colleagues often share, support experience in work also in life

+ Colleague are comfortable, joyful and sociable

- Independence variable: Salary and welfare

+ Wages paid are worth the effort the employees spend

+ Wages can guarantee the life of staffs and families

+ Reward policies are timely, clear and transparent

+ Welfare regime is complete and correct employee group is entitled

+ Staffs are satisfied with the welfare policy of the company

+ Welfare, wages, bonuses paid timely and satisfactory yet?

+ Policy salary, bonus, welfare regime has really care about employees or not?

- Independence variable: Autonomy at work

+ Take risks by creativity and innovation

+ Employee are asked about number of jobs that fit their capacity

+ Be involved in production planning

+ Division of labor is reasonable

+ Employees are involved in decisions that affect their work

- Independence variable: Leadership behavior

+ Leaders evaluate employee achievement in terms of equity and recognition + Leaders help and support staff to complete the work assigned

+ Leaders provide feedback to help employees improve job performance + Leaders protects the rights of employees

+ Leaders believe the ability of employees

+ Leaders is subtle when criticized

- Dependence variable: Employee motivation

+ Employees are interested in the current job

+ The staff's attitude is always good, cheerful and optimistic

+ Staff willing to working with his/her best performance

+ Employees appreciate the incentive policies of the company

CHAPTER III RESEARCH DESIGN 3.1 Overview of research design

Three components constitutive a research project include idea, designing, and instruments Idea proposed goal and meaning of the research Research designing points out evidence are need collecting for proving or rejecting proposed idea Research instruments are tools, specific processes to implement idea (Thang N.V., 2017, pp 5)

In this research project that appears in the thesis, the author has idea of transforming the manager’s dilemma to research question The manager’s dilemma is how to retain employees (reduce staff turnover rate) with manager level and also normal employee level, with high seniority years employees and also new or low seniority years employees; because at the moment, staff turnover rate is too high (average of staff turnover rate of overall company is about 25% per year, if calculating for per branch office, staff turnover rate about 20 to 35% per year) Expenditure for recruiting a new employee, training them to an official staff position is very high Even, the company paid $400 for success referring (after job probationary period) a new staff-level employee, paid $600 for success referring (after job probationary period) a new manager-level employee; the number of success referring is still low It is an example shows that recruiting new employee is hard, retaining existing employees is better solution

So, the management question has been established, the author try to convert these questions to research questions What cause staff turnover rate high (two-number staff turnover rate!) and why employee working with boring and leaking enthusiasm situation? The author has idea about factors affect to employee motivation, try to prove the relationship between factors and employee motivation, if the relationship is existing, the author goes to further, how much affecting in specific value are?

After the appearing of research’s idea, the author designs the research follow a quite popular “motif” from literature reviewing (studies in same topic in foreign countries also in Vietnam), point out knowledge lacking, based on research question to conduct qualitative research based on in-depth interview and quantitative research based on survey methodology

Research instruments are descriptive statistics and inferential statistics Descriptive statistics use mean, standard deviation value of sample of observed variables to conclude about characteristics of overall from observed sample set Inferential statistics use Exploration Factor Analysis (Measurement scale reliability, Rotated components matrix), forming multi-variances regression equation, accepting or rejecting research hypothesis, then lead to research summary

Then from research summary lead to recommendation for managers, it is an open suggestion to resolve management questions, help removing manager’s dilemma in the company

3.2 Research secondary data at desk

NDVN is a company belong to NTT DATA Corporation NTT DATA Corporation is a public corporation listed on Tokyo stock exchange, the author utilizes public information source as secondary information source for research Some news related to NDVN also be helpful for assert it business activities Research at desk use document form many reliable sources: NDVN’s regulation documents, NDVN’s human resources’ reports, Annual report from NTT DATA Corporation at end of fiscal year, news, website of NTT DATA Corporation, website of NDVN, many existing researches

on topic employee motivation in Vietnam and in foreign countries, textbooks, research papers on topics Business research methodology

Based on previous theoretical background section, major context must be done

in interview sessions are descripted likes below:

+ Age

+ Status: Current employee or Ex-employee

+ Seniority years at NDVN

+ Number of working years in all companies with all majors

+ Number of working years in all companies with the major what used at NDVN + Branch office (Hanoi head office, Danang branch office, or Hochiminh city branch office)

+ Qualification

+ Position (job title)

+ How is his/her feeling about motivating at work

+ What factors make he/she feel motivated at work? Ordering factors from what is most impacting factor to what is lowest impacting factors

+ What are the factors make he/she feel boring, depressed at work? Ordering factors from what is most impacting factor to what is lowest impacting factor

And the author tries asking open questions like these:

+ Complaint about what NDVN policies and practices affect to employee motivation + Suggestion to improving employee motivation

3.4 Quantitative research

Qualitative research is most important in the research, based on survey data through statistics method To ensure reliability, the author based on number of independence variables, number of observed variables inside per variable group, decide the size of sample enough for statistics signification

Data analysis are descriptive statistics, referential statistics (Explore Factor Analysis, Regression equation)

3.4.1 Questionnaire designing

Based on literature review, theoretical framework, in-depth interview, the author creates questionnaire what cover all factor (in theoretical framework) with its attributes for surveying The questionnaire has one dependence variable is “Employee motivation”, this center variable has four attributes (Interest with current job; Feel good,

cheerful, optimistic; Willing to work with best performance, and Appreciate incentive policies)

The questionnaire covers eight independence variables/factors, these are Working condition (4 observed variables), Stability (2 observed variables), Advancement opportunities (4 observed variables), Corporate culture (6 observed variables), Colleague relationship (4 observed variables), Salary and welfare (7 observed variables), Autonomy at work (5 observed variables), and Leadership behavior (6 observed variables)

The author adds more meaningless questions for checking respondents read question carefully or random fill in answers:

How many company trips in a year?

1 time 2 times 3 times

If respondent chosen (2 times) or (3 times), his/her questionnaire form become invalid, and need removing

Working time is

08:00 - 12:00 and 13:45 - 18:00 from Monday to Friday (a)

08:00 - 12:00 and 13:00 - 17:00 from Monday to Friday (b)

08:00 - 12:00 and 13:00 - 17:00 from Monday to Friday, and 08:00 - 12:00 Saturday (c)

If respondent chosen (a) or (c), his/her questionnaire form become invalid, and need removing

3.4.2 Sampling

Picking surveying objects in sampling process conducted carefully All employees in employee list has chance to chosen equally Sample is assured balancing between employee ratio between three branch offices (geographical area), age, seniority years, genders, departments, nationality, qualification Author used list of NDVN’s employees (nearly 200 employees), use random function in software to generate order number of employees are picked in sample

3.4.3 Data entry

Not all returned questionnaires are valid, researcher remove invalid answer sheets Researcher enter data two times to two different data files, comparing two raw data files for assuring the data entry is correct When catching unclear answers, researcher ask respondent to make the answers is clear

3.5 Suggestion for executives for improving employee motivation

This thesis is an applied research, suggestion is one part of it, after so much effort

to determine most affecting factor cause the changing in employee motivation Suggestion based on positive methods therefore it is objectivity, helpful and meaningful

CHAPTER IV RESULT AND DISCUSSION 4.1 Secondary data collection

Secondary data collected in 6 months from early of May 01st, 2018 to November

30th, 2018 from many sources, main sources include:

- Report of NTT DATA Corporation as a public company, a listing company on Tokyo stock exchange These documents include Annual report, Corporate social responsibility report, Audited annual/quarterly finance report, Disclosure statement, website

- Information about NTT DATA Vietnam on its website, and business newspapers

The author collects reliability document (audited), from reliable sources, then extracting useful information for the research, especially information about human resources Secondary data collection process done at desk via internet searching, then extracting useful information

4.2 Overview information about NTT DATA Vietnam

NTT DATA Vietnam supplies management information system development for two main sectors: Enterprise sector and Public (government) sector About enterprise sector, the company almost only deliveries management information system development services for FDI enterprises from Japan (other FDI enterprises from other countries, such as from Korea, U.S., Australia, etc or 100% capital from Vietnamese entrepreneurs are not prominent customers of NTT DATA Vietnam) NTT DATA Vietnam has close relationship with presences of big Japan corporations in Vietnam (Sumitomo Corporation Vietnam LLC, Obayashi Vietnam Corporation, Taisei Vietnam, AceCook Vietnam Joint Stock Company, Honda Vietnam, etc.) About public (government) sector, the company only supplies management information system development services for projects what received funding from Japanese government to Vietnam, almost these projects goes through JICA Vietnam NTT DATA Vietnam often keeps close relationship with Japanese government agencies at Vietnam (JICA Vietnam, Embassy of Japan in Vietnam) It is also an easy-to-understand fact, because NTT DATA is a subsidiary of NTT Group (old name: Nippon Telegraph and Telephone) what is a Japan state-owned company group These facts also clarify the

business culture of Japan, which is reflected in the international business environment and, of course, in the business environment of Vietnam The symbiotic relationship, cohesive good hold Japanese enterprises together, Japanese enterprises with Japanese government agencies in the country firmly

Major product lines of the company include Warehousing management system, Business workflow software, Production management software, OCR (Optical Character Recognition) software, Digitalization document for public libraries

4.3 Managing human resources at NTT DATA Vietnam

4.3.1 Hierarchical structure

The author collected general information of NDVN from desk-based research NDVN The helpful information at here is secondary data NTT DATA split from Nippon telegraph and telephone public corporation (NTT Group, at now) to become an independent company in 1988 NTT DATA has engaged in building numerous ultra-large-scale systems Its philosophy is using information technology for creating new values and new paradigms, which help contribute to a more harmonious and affluent society At the current, NTT DATA had been changing its business structure At fiscal year 2017, net sales have continued to grow for 28 consecutive years and its sales outside Japan (NDVN contributed a little part) have expanded to more than 40%, compared with just 1% when NTT DATA first ventured out into global market NTT DATA used three values for employees working orientation and communication with customers, partners: “Client first”, “Foresight”, “Teamwork” (Website NTT DATA) NDVN is a subsidiary company of NTT DATA Corporation, therefore it also followed three values The thesis focus on employee motivation, therefore, the value

“Teamwork” needed more attention In thesis’ theoretical framework, “Colleague relationship” depended much the value “Teamwork”

Major subsidiaries of NTT Group

Figure 5 Major subsidiaries of NTT Group

NDVN was established in 2008, charter capital is 2 million USD, it is subsidiary

of NTT DATA Corporation The Chief executive officer is Mr Akira Watanabe (Japanese citizen) The head office is No 239 Xuan Thuy street, Cau Giay district, Hanoi city, Vietnam The company also has 2 branches at Da Nang city and Hochiminh city

Based on hierarchical structure of companies, human resources department also has vertical managing structure from Human resources management department of Headquarters (at Japan) to Human resources management department of China and Asia-Pacific sector (at Singapore), to Human resources management department of NTT DATA Vietnam (at Hanoi, Vietnam)

NTT Group

NTT East NTT

West

NTT Communications

Dimension Data

NTT Docomo

NTT DATA

NTT DATA Vietnam

Figure 7 Vertical structure of managing human resources

Branch structure of NDVN

Figure 8 Branch structure of NDVN

(Source: NTT DATA Vietnam)

Departments structure of NDVN (vertical organization structure)

Human resources department

-Headquarters

Human resources

department of Europe and

Middle East & Latin

America sector

Human resources department of North America sector

Human resources department of China

& Asia-Pacific sector

Human resources department of NTT DATA

Vietnam

NTT DATA Vietnam

Hanoi head office Danang branch office Hochiminh city branch

office

Figure 9 Departments structure of NDVN

(Source: author)

Human resources are organized in also horizontal structure and vertical structure Horizontal structure: In three branch offices has human resources staffs, administration staffs, software engineers, salespersons

Hanoi head office Danang branch

office

Hochiminh city branch office Board of

directors

Has General Director/ Director of Hanoi head office concurrently

Director of Danang branch

Director of Hochiminh city branch office

Accounting

department

Has chief accountant, accountants

Has HR staff Has HR staff

General Director

Accounting DepartmentHuman resources DepartmentAdministration DepartmentEIT development

Sales EIT

PIF development

Sales PIF

Administration

department

Has Head of Administration department, Telephone teller, Purchasing staff, Administration staff

Has reception/administration staff

Has reception/administrati

Vietnamese) Communicator staffs

Has software programmers, System analysis specialists, (English - Japanese

- Vietnamese) Communicator staffs

Has software programmers, System analysis specialists, (English – Japanese – Vietnamese)

Communicator staffs

Sales EIT Has Head of Sale

EIT, Sale executives

Has Sales executives

Has Sales executives

Vietnamese) Communicator staffs

Has Software programmers, System analysis specialists, (English - Japanese

- Vietnamese) Communicator staffs

Has Software programmers, System analysis specialists, (English - Japanese - Vietnamese)

Communicator staffs

Sales PIF Has Head of Sales

PIF, Sale Executives

Has Sale executives

Has Sale executives

Table 2 Human resources are organized in horizontal structure

The company has career path for many types of employee, these are chances for employee’s advancement Notice: All PIF’s employees need Japanese skills (N1, N2, N3, N4 or N5 Japanese certificate), and working much with Japanese partners EIT means Enterprise Information Technology, EIT’s employees mainly work in management information system for enterprise customers

10 Senior system analyst

11 Senior software programmer (EIT)

12 Software programmer (EIT)

13 Senior software tester (EIT)

14 Senior software programmer (PIF)

15 Software programmer (PIF)

16 Software tester (PIF)

17 Senior software tester (PIF)

23 Communicator

24 Senior communicator

Table 3 Job titles

(Source: author)

Job titles bring the pride to employee, make them confidence when

communicating with customers, suppliers, partners, and colleagues Job titles also

implies specialist of a field, level/rank of employee in organization, and position in

organization Job titles also implies who are line-manager of others

4.3.3 Career paths

NTT DATA has a long-history in business operating, NDVN inheritance career

path designing from NTT DATA NDVN has a comprehension set of career paths for

all type of employees The below result obtained by extracting and synthesis from

common practices at NDVN’s human resources department

Career path for software specialist (4 paths)

Figure 10 Career path for software specialist in EIT Business Unit

System Analyst (EIT)

Senior System Analysis (EIT)

Deputy manager

Manager

Senior manager

Figure 11 Career path for software specialist in PIF Business Unit

System Analyst (PIF)

Senior System Analysis (PIF)

Deputy manager

Manager

Senior manager

Tester

(EIT)

Senior Tester (EIT)

System Analyst (EIT)

Senior System Analysis (EIT)

Deputy manager

Manager

Senior manager

Tester

(PIF)

Senior Tester (PIF)

System Analyst (PIF)

Senior System Analysi

s (PIF)

Deputy manager

Manager

Senior manager