NATIONAL ECONOMICS UNIVERSITY NEU BUSINESS SCHOOL NGUYỄN ĐĂNG TRƯỜNG IMPROVING STAFF MOTIVATION AT G BI INTERNATIONAL KNOWLEDGE MANAGEMENT JOINT STOCK COMPANY MASTER OF BUSINESS ADMINISTRATION THESIS[.]
INTRODUCTION
Rationale of the thesis
Effective human resource management is essential for enterprises to adapt to the rapidly changing business environment and maintain competitive advantage To transform human resources into a powerful asset, organizations must focus on optimizing both the quantity and quality of their workforce while retaining flexibility for growth and adaptation Leaders and managers need a clear understanding of management theories and models to develop suitable strategies that maximize human potential Maintaining high employee motivation is crucial; fair and scientific compensation policies serve as immediate incentives, while non-physical stimuli such as a positive work environment foster long-term engagement, pride, and enthusiasm Ultimately, prioritizing motivation and workforce development is vital for sustainable business success.
Declining employee motivation poses a significant risk of job hopping and reduced productivity, raising concerns among HR managers and business leaders about workforce retention Recognizing this challenge, G-BI International Knowledge Management Joint Stock Company has dedicated efforts to enhance staff motivation in recent years Despite these initiatives, several ongoing issues hinder the effectiveness of motivation strategies within the company In response to these challenges, the author conducts this research titled “Improving Staff Motivation at G-BI International Knowledge Management Joint Stock Company,” aiming to identify solutions tailored to both theoretical and practical requirements.
" with the primary objective of finding practical and applicable solutions to improve job motivation in this company.
Rearch objectives
The main rearch objectives are:
To summarize and apply theories about motivation staff in company
To analyse the current motivation staff in G-BI international knowledge management joint stock company to find solutions to improve motivation staff in G-
To propose solutions to improve motivation staff in G-BI international knowledge management joint stock company
Rearch methodology
Analyse current situation of staff motivation in G-BI international knowledge management joint stock company
Secondary data is collected from 2 main sources: internal and external source:
Statistic in company about: staff agreement, salary policy, HR management policies This data is important to providing detailed informations about factor that affect staff and motivation on GB-I company
Company website, policy, vision, core value, mission, annual report This data show the overview on GB-I company.
- External source: previous report, book, thesis, internet…
Primary data were collected through a questionnaire survey, with 72 questionnaires distributed within the company The survey was designed based on Maslow’s hierarchy of needs and Herzberg’s motivation-hygiene theory, incorporating both multiple-choice questions, including yes/no responses, and open-ended questions.
In other hand, a lot of interview will be conducted to support the rearch.
I used Analysis ToolPak in Microsoft excel, SPSS.
Rearch questions
The thesis tries to find out answers for questions:
- What indicators should be used to measure the staff motivation?
- How is current staff motivation in GB-I company
- What should GB-I company does to enhance its staff motivation?
Scope of rearch
The research is narrowed down to investigate the informations help to improve motivation staff at headoffice in G-BI company.
- Location: Number 31 210/41 Đội Cấn, Ba Đình, Hà Nội, Việt Nam
Rearch structure
The thesis includes four chapters:
Chapter 2: Theoretical framework on staff motivation
Chapter 3: Analysing current situation of staff motivation in GB-I company Chapter 4: Recommendation for improving staff motivation at G-BI international knowledge management joint stock company
THEORETICAL FRAMEWORK ON STAFF MOTIVATION
Nature of staff motivation
Motivation is the fundamental driving force behind all human actions, serving as an intrinsic state that energizes and guides individuals toward purposeful behaviors Rooted in emotions, motivation is primarily influenced by both positive feelings and negative emotional experiences, such as the urge to avoid discomfort Understanding the emotional basis of motivation is essential for comprehending why people engage in specific behaviors and how they stay motivated to achieve their goals.
Human resources are vital to an organization's success, serving as a decisive factor in achieving business goals Employee motivation in the workplace is a crucial aspect of human resource management, as it encourages staff to work diligently and enhances overall productivity Effective motivation strategies can significantly contribute to improved performance and organizational growth.
There are many different perspectives on motivation in staff but all have the most basic commonality.
According to MSc Nguyen Van Diem and Associate Prof Dr Nguyen Ngoc Quan (2014), staff motivation is defined as the employees' aspiration and willingness to enhance their efforts toward achieving organizational goals This motivation drives employees to increase their effort levels, ultimately contributing to improved performance and productivity Understanding staff motivation is essential for fostering a productive work environment and ensuring organizational success.
According to the organizational behavioral curriculum of Dr Bui Anh Tuan,
Staff motivation is a crucial internal factor that drives employees to work actively, fostering productivity and high efficiency It manifests through their willingness, effort, and passion to achieve organizational goals while also fulfilling personal objectives Effective staff motivation enhances overall organizational performance by encouraging dedication and proactive engagement from employees.
Employee motivation is driven by individual effort, which is essential for achieving organizational goals Managers aim to inspire and foster motivation among employees to ensure they work with maximum efficiency Creating a motivating work environment is key to enhancing overall productivity and success.
From the point of view of motivation in labor above, we can see that labor motives have the following characteristics.
Labor motivation varies among employees, as it is reflected through their specific roles and individual engagement within the organization Each worker's motivation is unique and influenced by their particular job, work environment, and organizational setting Understanding these differences is essential for fostering effective motivation strategies tailored to diverse employee needs.
Labor motivation is influenced by more than just individual personality traits; it can fluctuate based on objective job-related factors Even a highly motivated worker may experience periods of reduced motivation, highlighting its dynamic nature Understanding this variability is essential for optimizing employee engagement and productivity.
Voluntary motivation among workers is primarily driven by their own initiative, leading to higher levels of engagement when they experience no external pressure or coercion When employees choose to work voluntarily, they tend to perform at their best, maximizing productivity and overall job satisfaction Fostering an environment that encourages voluntary effort can significantly enhance workplace efficiency and motivation.
Labor motivation is a crucial factor in boosting labor productivity, especially when other input conditions remain constant As an intrinsic, invisible force, motivated employees are driven to work more actively and efficiently However, simply having a skilled labor force is not enough; the effectiveness of labor productivity also depends on the employees' skill levels and their understanding of production technologies Therefore, enhancing labor motivation and investing in employee training are essential strategies for increasing overall labor productivity.
Nên có thêm các trích dẫn của các tác giả khác, nước ngoài, viết bằng tiếng anh- có thể tham khảo các luận văn khác đã viết
2.1.2 The role of staff motivation
Enhancing personal labor productivity is key to motivating workers, leading them to enjoy their work and put in greater effort As a result, increased productivity not only boosts individual performance but also contributes to higher wages and improved income for employees.
Promoting creativity: Creativity is often promoted when people feel comfortable, willing to do something.
Increased engagement with work and the company at the moment: Having loved and appreciated the excitement at work, will form within them a bond with the present organization.
Enhancing workflow efficiency boosts employee motivation by making their efforts feel purposeful and impactful When work is executed smoothly, workers experience a sense of accomplishment and importance, leading to increased job satisfaction This positive environment encourages continuous self-improvement and professional growth.
Human resources in the organization will be utilized most effectively and can optimize the capabilities of workers and improve production and business efficiency.
Formed a valuable asset of the organization is good workforce, enthusiastic, stick with the organization and attract many talented people to work for the organization.
Creating an atmosphere of enthusiasm and comfort, contributing to building corporate culture, enhancing the prestige and image of the Company.
Labor motivation drives individuals to achieve their goals, enriching their spiritual lives and fostering the creation of new societal values When people's needs are met, they become more fully developed and happier, contributing positively to social well-being Additionally, a motivated workforce indirectly paves the way for a more prosperous society by supporting the growth and development of enterprises.
Theories on staff motivation
Maslow's (1943, 1954) hierarchy of needs is a motivational theory in psychology comprising a five tier model of human needs, often depicted as hierarchical levels within a pyramid.
Maslow's hierarchy of needs explains that humans have multiple desires arranged in a specific order, and each need must be satisfied before progressing to the next According to Maslow, there are five core needs that must be met sequentially, with the importance of each increasing as the previous one is fulfilled Once a need is satisfied, it no longer motivates behavior, emphasizing that motivation is driven by unmet needs within the hierarchy Understanding this hierarchy is essential for managers to effectively motivate their employees and foster a productive work environment.
The original hierarchy of needsfive-stage model
This theory suggests that individual behavior is reinforced when it receives positive evaluations from leaders or managers, leading to its repetition Conversely, if employees do not receive positive feedback, they are less likely to repeat the behavior To effectively reinforce desired behaviors, leaders and managers must actively assess employees' contributions, ensure evaluations are appropriate and constructive, and focus on promoting positive thoughts and actions to motivate continued performance.
According to B.F Skinner (1904-1990), there are three types of reinforcement that leaders and managers can do:
- Employee Reward (positive reinforcement): The leader, manager encourages the employee to do what he did well before Rewards can be commendatory, monetary or rewarding.
Effective leadership involves the strategic use of punishment, or negative reinforcement, where managers address employee shortcomings through constructive criticism By clearly identifying what employees are not doing correctly, leaders provide specific guidance on the necessary improvements, fostering accountability and promoting performance growth Implementing targeted feedback helps employees understand areas for development, ultimately enhancing overall team productivity while maintaining a positive work environment.
Ignoring employee misconduct may be appropriate when management believes the wrongdoing is temporary and not severe enough to warrant punishment Leaders should be cautious, as overlooking serious issues can undermine authority and organizational integrity However, in cases of minor or fleeting errors, a non-punitive approach can foster trust and allow employees to correct their behavior without escalation Effective management involves discerning when to ignore minor offenses and when to address more serious misconduct to maintain a productive work environment.
B.F Skinner recommends that, in an organization, the leader or manager should not focus too much on the shortcomings of employees, instead use rewarding measures, help them improve and improve work efficiency Leaders, managers need to use a variety of methods to publicly praise employees Critics must be constructive, critical, not critical Critique needs to go along with extolling, limiting the maximum number of employee criticisms vis-à-vis the collective.
The doctrine of equality emphasizes that workers assess the fairness of their jobs by comparing their input-to-output ratio with that of others When employees perceive their input-output balance aligns with their colleagues, they see it as fair; however, if there’s a discrepancy, they view the situation as unjust In cases of perceived inequality, employees are motivated to work towards correcting these unfair conditions to restore balance.
The doctrine of equality implies that when employees visualize injustice, they may have one or more of the following five options:
- Distorts the inputs or outputs of oneself or others.
- Behave in some way to make other people change their inputs or outputs.
- Behave in a way that changes their own inputs or outputs.
- Choose another collating criterion for comparison.
The doctrine of fairness emphasizes that individuals evaluate not only their absolute rewards but also the relationship between their inputs and outputs, such as effort, experience, education, talent, and compensation When employees perceive a disparity in their input-output ratio compared to others, it creates tension, which serves as a motivation for them to seek fair and satisfactory rewards Understanding this balance is essential for fostering motivation and maintaining workplace harmony.
Staff motivation is driven by both relative and absolute rewards, impacting overall performance and satisfaction When employees perceive unfair treatment or injustice, they tend to take corrective actions, which can lead to fluctuations in productivity, quality, and attendance Such perceptions may result in higher or lower yields, improved or diminished product quality, increased absenteeism, or voluntary resignation, highlighting the importance of fair recognition and reward systems in maintaining a motivated workforce.
The doctrine of justice in the workplace remains unclear on several key issues, such as how employees can select appropriate comparison others, determine relevant inputs and outputs, and compare their work contributions effectively Additionally, questions arise about when and how these factors change over time, influencing perceptions of fairness Fairness and injustice are inherently subjective, relying on individual perceptions and specific relationships within groups and organizations Despite these uncertainties, equitable theory is widely supported by research and offers valuable insights into labor motivation and workplace fairness.
Content of staff motivation
2.3.1 Improving staff motivation by using ficancial tools
Wage is the amount of money the employer pays to the employee in order to complete the work according to the prescribed function and duty
Wages are a crucial factor in motivating employees and enhancing their productivity Higher salaries lead to increased job satisfaction, reduced time wastage, and greater dedication to the organization This strong attachment to the company can boost individual performance, improve work quality, and increase the overall efficiency of business operations.
An effective wage regime must be implemented both internally and externally to ensure fairness and motivate employees Fair compensation enhances job satisfaction, leading to improved organizational performance Achieving organizational goals can subsequently boost employees' material and spiritual well-being, fostering greater motivation Therefore, managers must recognize the vital role of fair wages and their strong influence on employee motivation and overall organizational success.
Bonuses are a form of financial incentive paid to pay for the performance of an employee's work.
To reward workers for their best efforts while doing their work, boosting their labor productivity and motivating them to do better than the standard.
To be able to promote and enhance the effectiveness of incentive incentives, managers must pay attention to the following issues:
Determine the correct and reasonable payment issues
Welfare benefits are indirect forms of remuneration provided to employees, including living allowances, health insurance, social security, pensions, and payments for public holidays These benefits may also encompass entertainment programs, housing support, transportation allowances, and other perks linked to employment or organizational membership Implementing comprehensive welfare packages enhances employee satisfaction and promotes a positive work environment Optimizing welfare benefits is crucial for attracting and retaining talented staff, ultimately supporting organizational growth and stability.
There are two types of employee benefits:
Compulsory benefits: These are the minimum benefits that organizations must make as required by law It can be assorted types of insurance, social insurance, unemployment benefits, health insurance.
Voluntary Benefits: The benefits that an organization offers depend on their economic ability and the interest of the leader there It includes the following categories:
Insurance benefits: health insurance, life insurance, insurances.
Guaranteed benefits: guaranteed income, guaranteed retirement
Pay for non-working time: due to an agreement beyond the legal limits such as leave, break, travel.
Benefits due to flexible schedules
The provision of the following welfare benefits:
Welfare plays an important role in ensuring the lives of workers, such as housing assistance, vehicle purchase, medical expenses, etc.
Enhancing business credibility in the market attracts high-quality talent, making it easier to recruit and retain top professionals Additionally, investing in the material and spiritual well-being of workers promotes greater job satisfaction and boosts labor productivity These benefits collectively strengthen the company's competitive edge and support sustainable growth.
In particular, it also helps to reduce the burden of the society in taking care of workers such as social insurance, health insurance.
2.3.2 Improving staff motivation by using non - ficancial tools
Work is the fundamental organizational unit within a company, playing a crucial role in achieving overall business objectives Job performance enables employees to contribute effectively to organizational goals, while work serves as the foundation for human resource management activities like job placement, labor planning, performance appraisal, and training Additionally, work significantly influences individual employees' roles, positions, salaries, and attitudes toward their job, impacting both personal motivation and organizational success.
The work is scientifically designed to balance physical and intellectual demands, creating an environment that promotes high productivity and efficient use of resources By optimizing working hours and ensuring tasks are engaging and challenging, the organization aims to boost employee motivation Additionally, fostering a strong corporate culture is essential for enhancing employee satisfaction and long-term success.
Corporate culture encompasses holistic management philosophies, business goals, personnel management policies, and collective labor psychology It shapes work practices and interpersonal relationships within the organization, fostering effective communication and collaboration between upper and lower levels, as well as among colleagues.
A strong corporate culture significantly influences individual behavior in the workplace by shaping how employees meet their personal needs To motivate team members to wholeheartedly commit to collective goals, businesses must establish a clear and robust organizational culture This involves defining key aspects such as the main tasks, overall objectives, and strategies for achieving them When employees understand these aspects, they can clearly see their responsibilities and feel empowered to contribute effectively toward shared success.
Effective teamwork is achieved when members collaborate within a shared environment and clearly understand each other's roles and responsibilities This collective understanding ensures the successful completion of team tasks and helps meet the individual interests of each member Promoting cooperation and clarity among team members enhances overall productivity and contributes to a cohesive work environment.
A strong hierarchical relationship enhances seamless communication and encourages subordinates to contribute innovative ideas, fostering creativity and effective management decisions This environment promotes higher engagement, loyalty, and commitment among team members, leading to improved cooperation and a more cohesive organizational culture.
Building a strong organizational culture boosts employee motivation and encourages creativity, leading to increased productivity A positive culture also reduces labor turnover, helping companies maintain stability By fostering a cohesive work environment, businesses can consistently achieve their strategic goals while adapting effectively to evolving market conditions for long-term growth and sustainability.
Introduction of GB-I company
Vietnam has significant potential to foster successful business growth through expansion, attracting highly skilled talent, and retaining top personnel Participating in expert training, adopting exemplary management practices, and accessing professional advice and consultancy services can enable enterprises to thrive However, many Vietnamese businesses lack the necessary skills and resources to achieve success easily Global Business Intelligence (G-BI) plays a vital role by providing essential resources, including personnel support, consulting, recruitment and retention strategies, training and development programs, market solutions, foreign office representation, and event and media management, empowering businesses to grow and prosper.
G-BI is a knowledge-based company headquartered in Vietnam with global contacts and connections It is developing an effective organizational structure and model that leverage innovative facilities, ISO 9001:2008 standards, a corporate identity system, and ERP software to enhance business management and coordination Starting October 2010, G-BI will implement a Blue Ocean strategy focused on quality, service, learning, and socialization, emphasizing practical knowledge networks and innovation for sustainable growth.
Our vision is to establish G-BI as Vietnam's premier specialized consultancy and outsourcing firm, distinguished for its expertise and innovative solutions We aim to become the first global Vietnamese online management school that seamlessly integrates business practices, academic insights, and social responsibility Committed to organizational and personal development, G-BI strives to deliver outstanding training and consulting services that foster growth and excellence.
Our mission is to deliver exceptional client services through innovative solutions, guided by our core values of putting clients first, prioritizing quality, and maintaining a high level of professionalism We are committed to being an innovative company that fosters community involvement and adopts a long-term approach to success We believe teamwork, knowledge sharing, and a positive work environment are essential for growth, emphasizing the importance of fun, continuous learning, and ongoing improvement to achieve excellence.
Business Philosophy: Bringing fresh new ideas and professionalism to business community.
1 Corporate Name: Global knowledge management JSC
2 (thành lập ở VN năm nào)
2 Type of Company: Foreign invested enterprise
3 Legal Capital: 6 billion VND (US$ 330,000.00)
4 Five Core Businesses: Five core business sections
- Global Business Resource Solutions (corporate/social services consultancy and outsourcing);
- Global Intellectual Capital (executive and technical recruitment);
- Global Management and Executive Development (training and academic education);
- Global Market and Investment Solutions; and
- Global Events and Publicity Solutions (events and media).
5 Location: G-BI is located in an eight storey building in the center of Hanoi City and will have branches and offices in other locations as needed in the future
3.1.2 Organizational structure and characteristics of human resources
Organizational Chart (Please see below)
Accounting Head GBR GIS GMED GMIS
Board of Shareholders: Vietnamese and expatriates
Board of Senior Management: Honorable Chairman (Expatriate), Executive Vice Chairman (Vietnamese), two Vietnamese member and three expatriate members.
Board of Directors: CEO and two assistant CEOs
Total Staff: 30 full-time (65 % will have a completed a Masters or Doctoral degree) and 500 online or part-time experts and lecturers worldwide (90 % will have a completed a Masters or Doctoral degree)
Our comprehensive business services are divided into five key sections: Global Business Resource Solutions (GBRS), providing strategic resources for international growth; Global Intellectual Capital Solutions (GICS), focusing on leveraging intellectual assets to drive innovation; Global Society for Management and Executive Development (GSMED), dedicated to leadership training and executive development; Global Market and Investment Solutions (GMIS), offering insights and strategies for global market investments; and Global Events and Publicity Solutions (GEPS), specializing in organizing impactful events and boosting public relations efforts.
1 Global Business Resource Solutions (GBRS)
GBRS will function to provide corporate and social services consulting by industry/sector and outsourcing
Successful CEOs aim to build sustainable businesses that deliver value to clients while meeting employee needs and generating profit In a highly competitive global marketplace, continuous improvement, innovation, and decisive decision-making are essential for growth GBRS offers comprehensive solutions to optimize operations, help achieve organizational targets, and foster success By providing access to skilled managers, researchers, and industry experts from both local and global markets, GBRS equips businesses with the professional support needed to overcome challenges and thrive.
Following is a list of corporate and social consulting services provided online or offline:
1.1 Corporate & management systems consulting services
Social projects, research projects, and survey services
1.3 Corporate/supplier credit assessment reporting services
Board of Management secretarial service and management position outsourcing
Editing, writing, proof-reading and publishing business reports, journals, corporate policies and procedures, and other documents
Online library and reading room service
Global Intellectual Capital Solutions (GICS)
GICS serves as a comprehensive executive, technical, and expert staff recruitment partner both within Vietnam and internationally, recognizing that effective recruitment and staff retention are crucial for organizational success The company is equipped to identify, evaluate, and hire individuals, teams, and groups tailored to the needs of public and private sector organizations GICS manages all pre-employment processes, including testing, screening, panel interviews, group discussions, and presentations, ensuring a thorough evaluation of potential candidates Additionally, it conducts background checks and contact references to verify qualifications To attract top talent, GICS organizes university job fairs, online recruitment events, and general hiring fairs, providing a wide range of services to support organizations in building strong, capable teams.
Supplying leaders/middle management/experts/temps to labor markets of Vietnam and abroad
Employer reference and background check services
3 Global Society for Management and Executive Development (GSMED)
GSMED offers tailored in-house training and educational programs designed for diverse industries and public-private sectors, providing innovative short and medium-term learning opportunities Our training services cater to recent graduates, experienced employees seeking new skills, executives from both sectors, expatriates, retirees, and trainees We utilize a flexible mix of online, blended, and face-to-face training methodologies to meet varying needs GSMED’s comprehensive services include a wide range of professional development solutions aimed at enhancing workforce skills and fostering industry growth.
3.1 Academic, corporate and public administration Training programs, especially specilization sector training (online and offline)
3.2 International residential seminars for hot topics and best-seller books Postgraduate, graduate and undergraduate tutorial
3.4 Overall orientation and logistic services for new foreign comers to Vietnam and for Vietnamese trainees studying abroad
Testing Centre and enrolment agent
4 Global Market and Investment Solutions (GMIS)
Vietnam's open economic system enhances GMIS's ability to connect investment opportunities, markets, and foreign office representatives, thereby boosting investor confidence and encouraging both inbound and outbound investments GMIS will facilitate numerous investment opportunities and host seminars to connect investors with business representatives, fostering business growth and collaboration The services offered include, but are not limited to, providing comprehensive support to streamline investment processes and promote Vietnam’s competitive advantages in the global market.
Export promotion and general import & export of products
Foreign office representation services and Contact offices and Virtual offices for lease
Real estate broker and Tenant representation
Investment brokerage and advisory services
5 Global Events and Publicity Solutions (GEPS)
GEPS specializes in planning, developing, and executing international events both within Vietnam and abroad, catering to the expatriate and Vietnamese business communities We host exclusive galas to promote marketing, media, and networking opportunities, helping corporate brands enhance their reputation on an international stage Our events invite public and private entrepreneurs from diverse sectors to showcase their business activities and achievements in a professional setting designed to facilitate networking, communication, and business connections Key services offered by GEPS include event management, branding solutions, media promotion, and tailored networking platforms, all aimed at maximizing visibility and creating valuable partnerships within the global business ecosystem.
5.3 Corporate Identity designing and decoration service
Public relations and legal lobbying services
(Đến đây cần có một mục nói về nhân sự, có bản số liệu theo cơ cấu nhân sự theo các tiêu chí khác nhau)
GB-I staff structure categorized by qualifi- cation
Graduate Post-Graduate College and high-school
Most college graduates come from prestigious universities such as National Economic University, Foreign Trade University, and Hanoi University Many postgraduate students have gained international training experience abroad Meanwhile, the majority of the remaining workforce is employed in driving, administrative roles, or manual labor, highlighting diverse career pathways among graduates.
Staff structure in term of gender
The Chart above show that gender rate in GB-I company is quite balance This is a good figure of the company.
Staff structure in term of age
Staff structure in term of age
The chart indicates that over 60% of the workforce is under 30, highlighting a young and energetic talent pool Employees aged 30 to 40 make up 20% of the staff, reflecting the presence of experienced professionals within the company Additionally, 15% of the total staff are over 40 years old, holding key leadership positions that are vital to the company's success.
Analysing current situation of staff motivation in GB-I company
3.2.1 Analyzing of GB-I company staff motivation based on Maslow’s hierarchy of needs
GBI has yet to formally identify its employees' needs, which hampers targeted motivation efforts Employees mainly express their desires through self-suggestions, direct management feedback, or weekly briefings, indicating a lack of a structured system to assess labor demands Consequently, the company's motivation strategies remain general rather than tailored to specific groups, leading to broad rather than focused employee motivation While GBI attempts to meet some employee needs, the absence of a systematic approach to identifying these needs limits its understanding and effectiveness.
To accurately assess staff needs, a survey was conducted using 72 questionnaires to analyze the demand system within the company The results, summarized in the "System Needs of Staff" table, provide valuable insights into the specific requirements and areas for development among employees.
Based on the data, employees' most critical needs are their physiological requirements Maslow's theory highlights that these needs can be satisfied through fair compensation, free meals, attractive benefits, and bonuses Therefore, physical incentives play a vital role in motivating employees and enhancing their productivity within the company.
Table: Needs of staff System
(Survey by author There is a large difference in demand:
Senior managers prioritize higher-level needs such as self-improvement, respect, and societal contribution, placing less emphasis on safety and physiological needs They are driven by the desire for personal development, creativity, and realizing their potential, along with achieving income stability and career advancement To motivate this group, companies should focus on mental stimulation through fair assessments, effective HR policies, ongoing human resources development, and clear opportunities for career progression.
Middle managers prioritize belongingness and love needs as their highest demands, alongside other essential needs In organizational hierarchies, mid-level managers in business, finance, and accounting tend to focus on higher-level needs, reflecting their evolved motivations Conversely, technical services and human resources administrators exhibit more diverse needs, indicating varying demands based on their roles Income levels among these management components also differ notably, highlighting the importance of tailored motivation strategies To enhance overall performance, companies should emphasize both material and spiritual encouragement tailored to the specific needs of middle management.
In a typical organizational hierarchy, lower-level needs such as physiological and safety requirements take precedence among team members and staff, highlighting the importance of addressing their basic needs first Physiological needs are the most in-demand, followed by safety needs, while higher-order desires like self-improvement and respect tend to be less noticeable due to employees’ limited income and unmet fundamental needs To motivate this group effectively, companies should provide material incentives and establish favorable working conditions, ensuring their basic needs are satisfied to foster motivation and engagement.
To implement effective labor motivation strategies, companies must focus on building and maintaining a strong team while addressing the specific needs of different employee groups Tailoring labor inducement measures to meet the unique requirements of each target group can enhance employee motivation, engagement, and productivity Creating a cohesive team environment alongside personalized incentives is essential for sustainable workforce motivation.
3.2.2 Improving staff motivation by using ficancial tools
Employee salaries are calculated as follows:
Total salary = LCB + LKDCĐ + PC – KGT
The basic salary, as outlined in the employment contract or official agreements, is the core remuneration assigned to each employee based on their position rank within the company This salary serves as the foundation for calculating social insurance, health insurance, and unemployment insurance contributions, ensuring compliance with state regulations Implemented within the company's payroll system, the basic salary reflects each employee's role and is officially reported to relevant government agencies for proper social security management.
The LKDCĐ fixed business salary refers to the predetermined monthly wage of employees, established based on a fixed business wage scale that includes 50 positions, each with 7 salary levels Since 2010, this wage scale has been revised three times, reflecting the company's ongoing efforts to adjust employee income levels in response to market conditions.
- Gasoline allowance: Every month, every official employee is in the specific position or contact with customers, regular partners, support 350,000 VND / person / month.
- Telephone allowance: Most of the employees are provided monthly phone allowance This money is paid by phone card on the 26 th of every month
Sales Manager / Manager: 400.000VND / month
Board of Directors: 1.500.000VNĐ / month
Over half of respondents believe the allowance is reasonable, indicating its positive role in motivating the labor force within the company While a nearly equal number of participants expressed neutral or disagreeing opinions, the allowances have generally contributed to increased staff engagement However, a small segment remains unsatisfied, suggesting that the company should review and adjust the allowance policy to achieve a better balance and enhance overall employee satisfaction.
Table: List of salary deductions
Personal income tax According to regulations of the Law
7 Other deductions of the individual In fact ?
According to company policies, employee wages are reviewed twice annually, in March and September, based on performance assessments and achievements Salary adjustments are primarily determined by these evaluations, ensuring fair compensation aligned with individual contributions Additionally, the board and management have the discretion to make additional salary decisions or adjustments as needed for special cases, accommodating the company's actual needs.
Recently, the company has implemented a one-time salary increase for staff members, with exceptional cases receiving up to four increases per year Salary adjustments are based on full-time employees with over six months of service and satisfactory recent performance The process involves direct managers proposing salary increases, which are then reviewed and approved by the human resources department before final approval by the board.
The proposed salary increase depends on:
- The result of evaluation of the completion of work of the employees
- The salary of the position of the job
In these criteria, the criteria for evaluating personnel is an important criterion that directly affects wage adjustment.
Bảng đánh giá nhân sự
Họ và tên: Mã nhân viên:
Vị trí công tác: Phòng/Ban/Chi nhánh:
STT Chỉ tiêu được giao Thực hiện % thực hiện Đánh giá của CBQL trực tiếp:
……… Đánh giá của ngưới có thẩm quyền phê duyệt cuối cùng:
Người phê duyệt CBQL trực tiếp Nhân viên
(Ký tên và đóng dấu) (Ký tên) (Ký tên)
Employees independently assess their performance against specific indicators, followed by a re-evaluation conducted by management to ensure accuracy The final performance ratings and recommendations, such as salary adjustments or promotions, are determined once approval is obtained from both the direct manager and the relevant authority during a joint review session This structured evaluation process promotes transparency and informed decision-making in employee development.
Despite the shortened payroll adjustment period for staff, salary increases remain significantly lower compared to the annual CPI Typically, salary raises range from 5% to 10% per adjustment cycle, with only a few employees experiencing increases of 15% to 30% Higher pay hikes are generally awarded to key managers to retain top talent and reduce turnover to competitors.
Table: Statistics about current salry
Staff Leader Middle manager Senior manager Result
Amount Percent Amount Percent Amount Percent Amount Percent Amount Percent
Based on the statistics above:
Employees earning less than $5 million annually comprise only 3% of the workforce, totaling just two individuals who serve as couriers and company secretaries Despite their lower earnings, these employees report feeling satisfied with their income as they gain experience and advance in their roles.
Assessment of staff motivation at GBI
To evaluate the motivational results at the company, the research period from
2012 to 2016, can be evaluated based on the criteria mentioned above.
3.3.1 Impact of staff motivation on performance
Productivity, quality and efficiency at the company can be calculated using the following formula:
Labor productivity = total turnover / number of employees
Year Total number of employees
The table indicates a steady increase in annual average productivity at constant values over the years, demonstrating employees' efforts to excel in their assigned tasks This upward trend reflects the effectiveness of the company's motivational strategies.
To evaluate a company's discipline, it is essential to analyze motivation levels through key statistics such as absenteeism rates and the number of labor violations These metrics provide valuable insights into overall employee engagement and compliance with workplace standards Monitoring absenteeism helps identify potential issues affecting productivity, while tracking labor violations ensures adherence to regulatory guidelines, ultimately reflecting the company's commitment to maintaining a disciplined and motivated workforce.
Table: Statistic about Conscious discipline
2015 2016 Tot al The number of people left the company without reason
The number of people violated labor discipline
Between 2011 and 2016, the company experienced a consistently low number of violations, demonstrating a strong commitment to labor discipline Notably, in 2015, only one employee left the company without reason, and over the six-year period, there were only three cases of labor discipline violations This high level of compliance indicates that the company's motivational strategies effectively support employee adherence to workplace rules, fostering a positive and disciplined work environment.
Percentage of employees left the company
Employee turnover rate is a crucial indicator for evaluating talent motivation and retention, reflecting both workforce stability and organizational health High resignation figures can signal underlying issues with employee satisfaction or engagement, impacting overall human resource quality To analyze this, the author presents a comprehensive table detailing the number of employee resignations, providing valuable insights for strategic HR improvements and talent management.
Table: Statistic about the number of staff left the company in 2011 -
T otal Staff quit their job without reason
Staff quit their job with right reason
Staffs were encouraged to quit
Between 2011 and 2016, GB-I experienced over 10% employee resignations, primarily among valuable personnel, indicating limited motivation within the company The company’s policies favored high-income increases of up to 150%, often welcoming partners or competitors, which further affected employee loyalty Notably, only four employees took six-year leaves, a rare occurrence driven by workers’ unmet needs and company challenges, ultimately leading to forced休休休.
Evalution about satisfaction with work
Historically, HR departments have relied on peer reviews, opinion leaders, listener feedback, and employee sharing to gauge job satisfaction, lacking precise assessment tools To address this gap, a survey was conducted using 72 questionnaires, providing valuable insights into employee satisfaction levels and helping organizations better understand their workforce's needs.
Table: Evalution about satisfaction with work
(Source: Servey by the author)
Employee satisfaction remains high, with a rate of 70.9%, particularly among managers, key personnel, and those with strong qualifications who play vital roles in team performance These employees are generally satisfied with their income, recognize their capacity and competence in work evaluations, and value career development opportunities within the company The variation in individual needs highlights the company's focus on creating personalized motivation strategies to enhance overall employee engagement and satisfaction.
Approximately 19.4% of staff are dissatisfied with their work, while 9.7% remain unsure about their level of job satisfaction, highlighting concerns critical to management Job dissatisfaction and unclear feelings about work can negatively impact labor productivity, especially among employees with lower incomes who perceive limited opportunities for career advancement and are dissatisfied with direct management Addressing these issues by understanding and meeting the legitimate needs of this key group is essential for fostering a more motivated workforce and supporting overall organizational development.
3.3.2 Evaluation of strengths and limitations
Clear clarity of position scales, which helps staff understand and understand monthly salary details, creating clarity and clarity in payroll.
The salary and bonus assessment is based on individual performance and contributions, ensuring fairness and transparency This evaluation helps staff recognize their achievements and feel motivated While no system is perfect, this approach represents a significant improvement over previous departmental assessment methods, fostering a more objective and motivating work environment.
Company leadership consistently provides timely material and spiritual support to employees, celebrating holidays and birthdays while offering assistance during illnesses Human resources policies and results are tailored to meet the specific needs of both the company and its staff, ensuring a supportive and responsive work environment.
- Human resources are always timely support to new employees easy to integrate with the company, old employees are assured of work.
Negative impact comes from low wages resulting in the survey 46% of respondents said that their wages were still lower than the average.
- The work of emulation and commendation is still small, the reward level is only formal, not really improving, improving the lives of workers.
Many performance evaluation criteria remain overly general and complex, leading to issues in accurately assessing employee performance According to survey results, over 60% of respondents believe that the current assessment methods do not effectively reflect their actual results Additionally, overly ambitious criteria make it challenging for employees to achieve desired outcomes, potentially impacting motivation and fairness in the evaluation process.
-The results of capacity assessment have not influenced the decisions on appointment, promotion or salary increase
- Overtime is not attractive enough to motivate workers
-The process of building corporate culture is still not standardized At units, the cultural environment is still governed by the personality and attitude of managers and management.
In today's challenging economic environment, market competition is intense, and GB-I, a small to medium enterprise with limited financial resources, faces difficulties in maintaining liquid salaries and bonuses Employee trust issues stem from unclear job descriptions that do not reflect actual responsibilities, leading to employees struggling despite their efforts Additionally, the lack of clear personnel evaluation criteria further impacts staff motivation and performance.
Limited career advancement for employees often results from companies prioritizing cost savings and minimizing disruption by recruiting new high-level talent instead of promoting existing staff This approach leverages employees' current work experience but reduces opportunities for innovation and career growth, making promotions rare for current employees.
RECOMMENDATION FOR IMPROVING STAFF MOTIVATION
Motivational orientation at GB-I company
4.1.1 General orientation target of GB-I company
Vietnam has significant potential to foster successful business growth through expansion, attracting highly skilled talent, and retaining top performers Participation in expert-led training, exemplary management practices, and access to professional consulting are key factors that can help businesses thrive Despite this potential, many Vietnamese enterprises lack the necessary skills and access to resources required for success GB-I Company aims to bridge this gap by providing comprehensive support in personnel management, consulting, recruitment, training, market solutions, foreign office representation, and event and media management.
GB-I Company, a knowledge-based organization headquartered in Vietnam with global contacts, is currently enhancing its organizational structure by integrating innovative facilities, ISO 9001:2008 standards, a strong corporate identity system, and enterprise resource planning (ERP) software to improve business efficiency Starting in October 2010, G-BI will implement a Blue Ocean strategy focused on delivering high-quality services, fostering continuous learning, and promoting socialization through practical knowledge networks and innovation.
G-BI aims to become Vietnam's premier specialized consultancy and outsourcing firm, leveraging expertise to deliver innovative solutions Our vision includes establishing the first global Vietnamese online school of management, seamlessly integrating business practices, academic knowledge, and social insights We are committed to providing exceptional organizational and personal development solutions that foster growth and excellence.
Mission: Provision of excellent client services through innovative solutions
Our company is built on core values that prioritize the client first, with quality always coming foremost in everything we do We uphold a high level of professionalism and are committed to being an innovative organization that continuously evolves We actively engage with the community through meaningful involvement and adopt a long-term approach to sustainable growth Teamwork is essential to our success, and we emphasize knowledge sharing to foster collaboration We believe in creating a positive work environment by highlighting the importance of fun, while also dedicating ourselves to continual upgrading and improvement to meet and exceed industry standards.
Business Philosophy: Bringing fresh new ideas and professionalism to business community
4.1.2 Human resource management ‘s target vision of GB-I company
-Recuit the staff and keep them
Recognizing staff as valuable contributors to the company's growth fosters a positive work environment Encouraging creativity and supporting employees' development and promotion drives innovation and boosts morale Cultivating a company culture that combines international business practices with traditional Vietnamese values—such as health, solidarity, and high employee income—promotes a cohesive and prosperous organization.
-Support the growth and development of each individual
-All policies are concentrated in creating a working environment in GB-I’s staff feel most comfortable, stable, the biggest opportunity to develop.
-All staff have right to express opinions, fully their tallents in an open and friendly working environment.
- Build a harmonious working relationship between managers and employees.
Do not let strikes happen
Recommendation for improving staff motivation at GB-I company
4.2.1 Determine the needs and wants of the target staff
Currently, the company lacks a formal system for collecting employee needs, which hampers effective motivation strategies Recognizing that individual needs vary based on factors like qualifications, job position, gender, and age highlights the importance of identifying specific demands within each target group According to expert A Maslow's hierarchy of needs, implementing this theory allows companies to accurately assess and address workers' priorities Utilizing Maslow's framework offers several advantages, making it a valuable tool for developing targeted employee motivation measures.
It is based on the view of A Maslow to develop a sociological survey questionnaire. Conducting this method needs to do some of the following:
Step 1: Design survey form (including contents related to determination of labor demand such as food, accommodation, safety ).
Step 2: Set up questions regarding Maslow's system Each type of demand presents the corresponding questions for each of the demand factors, such as the physiological needs, the design of five content questions about eating, accommodation, transportation, education and child custody Each question poses four levels of employee satisfaction in hierarchical order: satisfactory, satisfied, dissatisfied, and without clear feedback.
Step 3: Disseminate and implement with all employees to know their feelings and aspirations for the company.
Step 4: Investigate each department, department to understand the needs, and drill down into the survey of employees to take measures appropriate to their needs. Step 5: Collect the questionnaire, analyze and process the questionnaire in order to produce results according to 4 levels of satisfaction Thereby, considering the urgent need to meet immediately and the important but not urgent need, the measures will be completed later.
Effective internal communication is essential for understanding employee needs and fostering a positive work environment The human resources department, acting as a bridge between staff and management, should facilitate open dialogue and ensure regular support and feedback exchanges Promoting labor dialogue and providing platforms such as internal email systems and comment boxes create a space for employees to express their aspirations, enhancing overall employee engagement and satisfaction.
The HR department needs to be strengthened to effectively manage its core functions and reduce additional tasks Currently, the company's HR team is overburdened, juggling full-time responsibilities alongside supplementary duties Despite a small team size, the workload remains high, which hampers their ability to focus solely on human resource management and employee motivation Enhancing the HR department will improve workforce efficiency and overall labor relations.
Middle and senior managers play a crucial role in motivating employees by actively listening to their opinions during task assignments Employees often communicate their needs for enhanced knowledge, skills, or flexible working hours directly to managers or via the HR department to meet work demands Therefore, managers must clearly define their roles in motivating staff within their departments and collaborate with the HR department to develop effective motivational policies that drive positive change.
Implementing pay-for-performance can be an effective strategy, but employee satisfaction hinges on ensuring fairness To address this, organizations should establish transparent evaluation criteria and consistent measurement methods Clear communication of performance metrics helps employees understand how rewards are determined, fostering trust and motivation Regularly reviewing and adjusting compensation policies ensures fairness and maintains employee engagement By combining these fundamental tools and measures, companies can create a motivating pay-for-performance system that is perceived as just and equitable.
Begin by developing a clear job description for each position, then regularly administer performance tests to employees to assess their understanding of assigned tasks and self-management skills Consistently tracking employee progress ensures effective monitoring of their work, enabling managers to evaluate performance accurately and provide targeted support This approach enhances overall productivity and accountability within the team.
To ensure effective understanding, implement measures that help staff directly grasp the specific responsibilities and expectations outlined in their job descriptions, tailored to their current positions Additionally, facilitate awareness of the work performed by both their immediate superiors and subordinates to foster better coordination and clarity within the organizational hierarchy.
- For the recruitment process, applicants have to understand the job description table about the position they are applying for.
New employees should participate in integration training to facilitate their onboarding process During their initial period at the unit, the immediate supervisor is responsible for providing additional training and conducting evaluations to ensure smooth adaptation and performance This approach helps new staff quickly become effective contributors to the team.
- For employees who have worked at GB-I for a long time, this content should be checked quarterly or half yearly.
All job assignments should be grounded in clear job descriptions, ensuring performance evaluations are directly aligned with each employee's responsibilities Regular monthly reviews of employee performance must be conducted based on these job descriptions, which should be updated promptly to reflect any changes in job requirements Maintaining accurate and current job descriptions is essential for effective performance management and aligning employee efforts with organizational goals.
Effective communication about salary adjustments is essential; leaders should clearly explain any changes and seek consensus from their subordinates to ensure transparency and mutual understanding When aligning salary calculations with the completion of set targets, it is important for management to assess the level of achievement accurately If deviations occur, leaders must provide clear explanations and collaborate with employees to reach a shared agreement, fostering trust and motivation within the team.
- There should also be consistency in the assessment of personnel and based on the job descriptions to evaluate the performance of the duties associated with each specific position.
The third is GB-I will base on the results of monthly work to determine the salary that employees received in that month.
According to J Adam's theory of fairness, companies can boost labor motivation by implementing fair and equitable wage distribution Ensuring that employees are assessed objectively and rewarded fairly for the same quality of work fosters a sense of equity This approach not only enhances employee satisfaction but also creates a positive psychological environment, ultimately increasing motivation and productivity.
To motivate employees and boost work efficiency, the company should implement regular, fair performance reviews This approach ensures that employees are recognized and rewarded appropriately, leading to increased motivation and higher income for those who excel Consistent evaluations promote a fair work environment and encourage continuous improvement, ultimately enhancing overall productivity and company success.
Evaluation based on job description table
(A): comments of direct management and concurrent opinions based on feedback from colleagues at the periodical activities, feedback of customers in the month (if applicable)
>% of work 75%- 90% of work 50%-74% of work