3.2 Organization structure...183.2.1 LG Electronics Vietnam Hai Phong structure...18 3.2.2 Ha Noi office of LG Electronics Vietnam Haiphong...19 3.3 Employee structure of LG Electronics
Introduction
Rationale of the thesis
Human resources which directly involve in production process and create products is a very important element in succe6ss of a company In the current competitive market economy, to survive and develop, top management of organizations need to know the ways to use up their human resources effectively In order to do that, they need to research physical and mental benefit demand of employees to stimulate employees’ spiritual interests and get their full dedication.
LG Electronics, Inc is the world's leading brand in manufacturing consumer electronics, mobile communications and home appliances, with more than 84,000 employees working in 120 branches and representative offices all over the world. Founded in 1947 in Korea, LG Electronics is a pioneer company in technology and innovation with modern technology products dominated the market and customer trust LG Electronics has entered Viet Nam market since 1995 In 2013, LG Electronics officially invested $ 1.5 billion to build its factory in the industrial zone Trang Due, Hai Phong that is considered the largest foreign investment in Hai Phong until now On 27 Mar, 2015, Hai Phong factory is officially inaugurated and
LG Electronics Vietnam changed the name to LG Electronics Viet Nam Haiphong.
It is 100% foreign capital company, operating in fields of manufacturing and selling electronics products LG electronics products in Viet Nam are divided to four divisions Home Entertainment, Home Appliance, Air Condition, Mobile Communication Ha Noi office is sale representative of LG Electronics Vietnam Haiphong, including 16 departments with total 174 employees…
Ha Noi office of LG Electronics Vietnam Haiphong has very good facilities and favorable working condition, however, the staff motivation in Ha Noi office is not good enough to keep talent and experienced employees A lot of skilled and experienced staffs leaf LG Electronics Haiphong recently In six months, from Oct,
2014 to Mar, 2015, 8 employees left LG in which there are 3 members from Sales, 2 members from Marketing, 1 member from Demand Planning, 1 member from Business Planning and 1 member from Legal Department What is root cause of personnel changes?
With all above reasons, I have chosen the topic “Improving motivation for staffs in Ha Noi Office of LG Electronics Vietnam Haiphong” for the research.
Research objectives
This research has three main purposes as below:
- To clarify dimensions to measure employee motivation
- To analyze current situation of staff motivation in Ha Noi office of LG Electronics Vietnam Haiphong.
- To propose recommendations to improve staffs motivation in Ha Noi office of LG Electronics Vietnam Haiphong.
Research questions
Basing on three main purposes above, this research is to answer three following question:
What are dimensions to measure employee motivation?
How is current situation of staff motivation in Ha Noi office of LG Electronics Vietnam Haiphong?
How to improve staffs motivation in Ha Noi office of LG ElectronicsVietnam Haiphong?
Research Methodology
Theoretical background of nature motivation
LG Overview, its human resources, its strategy
Criteria to measure staff motivation in HN office
Interview leaders and staffs about motivation goals and motivation
Current situation of staff motivation in
Survey of current staffs’ motivation
Cause of de- motivation Recommendation
Collecting data for theoretical background from text book, internet, newspaper…
Collecting data about LG Electronics Vietnam Haiphong such as organization chart, salary, bonuses and incentive policy, regulations….
Interviewee Number of sent request
Number of respondent Data content
Managers were interviewed about their assessment on relationship with employees, LG’s personal policy and strategic objectives.
Staffs were asked about their assessment on current HR management policy, working environment, their expectation.
(questionnaire will be send via email )
Current staffs were asked about their assessment about attitude in working, current motivation and their commitment in LG.
Ex-staffs were questioned about the reasons for their leaving and their comment and recommendation for LG
Sample size: The sample size is 97 staffs (that accounted for 55.7% of the population) to ensure the representation sample of this survey.
The survey includes 1 questionnaire for LG Electronics Vietnam Haiphong staffs and LG Electronics Vietnam Haiphong ex-staffs These questionnaires was designed under multiple choices, yes/no and open questions Question content has 4 parts: individual information; their comment/ idea about importance of Hygiene and Motivation factors; their evaluating the hygiene and motivation factors and additional section for ex-staffs.
In depth interview is mentioned about Human Resource management policy and staff’s assessment about current motivation.
The research used both quantitative and qualitative methods to analyze the current situation of staff motivation in Ha Noi office of LG Electronics Vietnam Haiphong The author used statistical tools such as Microsoft Excel to analyze the data.
Scope of research
Research object: staff motivation in Ha Noi office of LG Electronics Vietnam Haiphong
Location: all staffs in Ha Noi office of of LG Electronics Vietnam Haiphong Timing:
- Secondary data: from 2010 to now
- Primary data: will be implemented from Apr to July, 2015
Research Structure
The Thesis included four chapters:
Chapter II: Theoretical background of Staff Motivation
Chapter III: Current situation of staff motivation in Ha Noi Office of LGElectronics Vietnam Haiphong
Chapter IV: Recommendations to improve motivation for staff in Ha NoiOffice of LG Electronics Vietnam Haiphong
Theoretical background of Staff Motivation
Nature of Motivation
According to Webster’s New Collegiate Dictionary, a motive is “something a need or desire that causes a person to act” “Motivate, in turn, means “to provide with a motive,” and motivation is defined as “the act or process of motivating”. Consequently, motivation is the performance or procedure of presenting an intention that origin a person to capture some accomplishment (Shanks.N.H.). According to Latham G.(2011), motivation is defined as a psychosomatic process that directs a person to behave and react in a way that helps them to satiate certain unfulfilled needs.
Bartol and Martin (1998) describe motivation as a power that strengthens behavior, gives route to behavior, and triggers the tendency to continue (Farhad et al,
2011) This explanation identifies that in order to attain assured targets; individuals must be satisfactorily energetic and be clear about their destinations In view ofBedeian, (1993) it is an internal drives to satisfy an unsatisfied need and the will to accomplish Motivation is a procedure that initiates through a physiological or psychological want that stimulates a performance that is intended at an objective It is the concluding product of interface among personality behavior and organizational distinctiveness It symbolizes those psychological procedures that foundations the stimulation, route, and determination of deliberate actions that are target oriented(Farhad et al, 2011) Also motivation is a progression of moving and supporting goal- directed behavior (Chowdhury.M.S, 2007) It is an internal strength that drives individuals to pull off personal and organizational goals (Reena et al, 2009)
Motivation is a set of courses concerned with a kid of strength that boosts performance and directs towards accomplishing some definite targets (Kalimullah et al, 2010) According to Barron (1983), it is an accrual of diverse routes which manipulate and express our activities to attain some particular ambitions (Rizwan et al, 2010) Porter and miles (1974) proved that the motivation boosts expresses and continues conduct (Khadim et al) The motivation of an individual envelops all the motives for which he selects to operate in a definite approach (Lefter et al) In fact motivation is “inside another person’s head and heart” (Khadim et al)
There are many different definitions of staff motivation According to Simons & Enz (1995), staff motivation is based on a force that pushes people to make a particular job choice, remain at the job, and put in effort Based on Ramlall
(2004), motivational need theorists derive that a need can evolve from physiological or psychological deficiencies that arouse behavior According to Ramlall (2004) employee motivation need theories are defined by as “internal factors that energize behavior.” Another definition of employee motivation is defined by Robbins (1993) (as cited in Ramlall, 2004) as: “the willingness to exert high levels of effort toward organizational goals, conditioned by the effort’s ability to satisfy some individual need.” Therefore to engage in the practice of motivating employees, employers must understand the unsatisfied needs of the employee groups Unsatisfied needs can be defined as “tension that stimulates drives within the individual,” (Ramlall,
2004) In this context this type of tension presents a goal for the worker because the worker carries out ‘search’ behavior to satisfy the deficient need, thereby reducing the perceived tension (Ramlall, 2004)
Among financial, economic and human resources, the latest are more essential and have the capability to endow a company with competitive edge as compared to others (Rizwan et al, 2010) Employee Performance fundamentally depend on many factors like performance appraisals, employee motivation,Employee satisfaction, compensation, Training and development, job security,
Organizational structure and other, but the area of study is focused only on employee motivation as this factor highly influence the performance of employees
Employee motivation is one of the policies of managers to increase effectual job management amongst employees in organizations (Shadare et al, 2009) A motivated employee is responsive of the definite goals and objectives he/she must achieve, therefore he/she directs its efforts in that direction Rutherford (1990) reported that motivation formulates an organization more successful because provoked employees are constantly looking for improved practices to do a work, so it is essential for organizations to persuade motivation of their employees (Kalimullah et al, 2010)
Getting employees to do their best work even in strenuous circumstances, is one of the employees most stable and greasy challenges and this can be made possible through motivating them.
Models of staff motivation
According to Maslow (1943) human needs can be arranged in a hierarchical manner with lower level needs being a prerequisite of higher order needs The bottom tier consists of physiological needs, i.e.: food and shelter After an individual has accomplished gratification of the physiological needs, the next tier progresses to needs consisting of: safety and security needs Needs for love, affection, and belongingness exist in the tier above safety and security, and begins to start higher level needs as the two bottom tiers were physical needs This next tier above social needs consists of ego and esteem needs After these needs are met the final tier consists of the need for self-actualization, to be completely developed as a person (Maslow, 1943) According to Maslow, (as cited by Tesone, 2005) self- actualization or ego needs could never be fully satisfied
Champagne and McAfee in their book, Motivating Strategies for Performance and Productivity: A Guide to Human Resource Development, (as cited in Ramlall, 2004), provided a list of employee needs based on Maslow’s hierarchy.
However, depending on the worker and organization, these needs can vary (Ramlall, 2004)
Figure 2.1: The Maslow’s hierarchy of needs
Prior work conducted by Steers and Porter (as cited by Ramlall, 2004) stated that managers have the responsibility to create proper climate so that employees may develop to their full potential This need for self-actualization could possibly be achieved in a ‘healthy’ work environment (Schrage, 2000) However, Maslow states that although the workplace may offer opportunities to become self- actualized, many humans do not (Schrage, 2000).Employee motivation need theories imply that humans have an intrinsic need to, “grow or evolve on personal levels,” (Tesone, 2005) There is a premise that employees that are happier will be more productive In the same thought there is debate that happy employees are not productive (Saari & Judge, 2004).
Herzberg began research on factors that affect job motivation in the mid 1950’s (Ramlall, 2004) Herzberg (1959) developed his two factor theory derived from work of Mayo and Coch & French (as cited by Herzberg, 1959) Mayo (as cited by Herzberg, 1959) discovered that relationships between workers and their supervisors had more of an effect on worker output than any kind of manipulation of environmental conditions
Mayo also found that informal associations of a group of men can influence productivity levels (as cited in Herzberg, 1959) Coch & French ( as cited by Herzberg, 1959) stated that the employees that are given the prospect to set goals and make decisions that affect their work are employees that will accept change more readily than those employees that are not given those opportunities
Herzberg (1959) took three approaches to measure job attitudes: 1.) by demographic variables, using demographics such as gender, age, education level, social class, and occupation type to evaluate similarities and differences, 2.) to used scaled inventories of worker morale and job attitudes, and 3.) observation, where the researcher observes the behavior of workers Herzberg (1959) was seeking to answer the question, “what does a worker want from their job?” to develop this answer, three methods could be used: a list of factors for the workers to rank and rate in order of desirability, another method was to question workers spontaneously about their likes and dislikes of the job, and creating an inventory or questionnaire. While developing these factors Herzberg (1959) found that some factors were
“satisfying” and others were “dissatisfying.” These factors became integral to the theory and became known as “motivators” that bring job satisfaction and “hygiene” factors that brought job dissatisfaction (Herzberg, 1959)
Job motivators tended to be intrinsic to the matter of the job These motivators consisted of: achievement, recognition, the job itself, responsibility, job advancement, and growth (Ramlall, 2004)
Achievement also included its opposite, failure and the absence of achievement This category included the following: successful completion of a job or aspect of it, having a good idea or solutions to problems, made money for the company, vindication and seeing or not seeing the result of one’s work (Frederick Herzberg, 2008, p.45).
The major criterion for this category is some act of recognition to the employee The source could be almost anyone: supervisor, some other individual in management, and management as an impersonal force, a client, a peer, a professional colleague, or the general public The evidence of recognition are: work praise with or without reward given; work noticed – no praise; work not noticed, ideas accepted or not accepted by the company, inadequate work blamed or criticized with or without punishment given, credit for work taken by supervisor or other (Frederick Herberg, 2008, p.44, p.143)
This category mentioned about feeling of the employees about the job Thus job can be routine or carried, creative or stultifying, overly easy or overly difficult. (Frederick Herzberg, 2008, p.48).
This category included those sequences of events in which the employee derived or lost satisfaction from being given responsibility for his own work or for the work of others or being given new responsibility In case, however, there was wide gap between a person’s authority and the authority he needed to carry out his job responsibilities, the factor identified was “company policy and administration”. (Frederick Herzberg, 2008, p.47).
Advancement was an actual change in the status or position of the person in the company In situation in which an individual transferred from on part of the company to another without any change in status but increased opportunities for responsible work, the change was considered an increased responsibility, but not formally advancement (Frederick Herzberg, 2008, p.46).
This motivation factor includes the chance one might have for advancement within the company This could also include the opportunity to learn a new skill or trade When the possibility/opportunity for growth is lacking or if the employee has reached the peak or glass ceiling, as it is sometimes referred to, this could have a negative effect on the satisfaction the employee feels with their job and position.
Job dissatisfaction is the result of extrinsic non-job-related factors labeled as hygiene factors Steers (as cited by Ramlall, 2004) defined this list of hygiene factors: company policies, salary, relationship, and supervisory styles, working condition Hygiene theory states that the removal of job dissatisfied does not result in a state of job satisfaction
Company policy is factor affecting firstly and directly to employees The policies, rules and regulations issued by the company for employees to follow and implement Thus, the better policies are, the more benefits employees have.
This includes the amount of money, received unexpected wage or not received expected increase, received wage, increase less or later than expected, wage compare favorable or unfavorable with others doing the same or similar job. (Frederick Herberg, 2008, p.144).
This is those relationships one engages in with their supervisors, peers, and subordinates How someone feels about the interaction and discussions that take place within the work environment can also effect dissatisfaction
Current situation of staff motivation in Ha Noi Office of LG
Overview of LG Electronics Vietnam Hai Phong
LG Electronics, Inc (LG) is the world's leading brand in manufacturing consumer electronics, mobile communications and home appliances, with more than 84,000 employees working in 120 branches and representative offices all over the world Founded in 1947 in Korea, LG Electronics is a pioneer company in technology and innovation with modern technology products dominated the market and customer trust.
LG Electronics has entered Viet Nam market since 1995
LG Electronics Viet Nam (LGEVN) was established from 07/29/1995 with total investment of 13 million USD LGEVN owned one factory located in Nhu Quynh, Van Lam district, Hung Yen province and three offices in Ha Noi, Ho Chi Minh, Da Nang With modern production line, Hung yen factory could produce 550.000 products/ year 7/2003, LGEVN added two production lines of DVD and Monitor with a capacity of 450.000 products / year The major products of LGEVN are Monitors, TV, projectors, DVD players, CD drive, DVD recorder, Mobile that had a warranty policy applied perfectly in 64 provinces nationwide The annual growth rate of LG is 32% To the end of 2003, total revenue reached 236 million USD (exports accounted for 23%) and market share reached 25% With steady growth and higher revenue, from 10/1996 to 6/2003, LGEVN contributed 300 billion VND to the State Budget.
LG MECA was a joint venture company which was combined of two companies LG Electronics, the world's leading brand in manufacturing consumer electronics, mobile communications, home appliances… and Mecanimex, under theMinistry of Industry of Vietnam, a leading company in importing and exporting mechanical products LG MECA had investment license No 1918 / GP on31/05/1997 with total investment capital of 7.700.000 USD and legal capital of
2.600.000 USD in which Mecanimex contributed 30% and LG Electronics contributed 70% After 2 years constructing the factory, LG MECA officially put into operation from April, 1999 The factory was located in Dai Ban, An Duong, Hai Phong with total area of over 30,000 m2 Hai Phong factory was designed in standard way with advanced production lines Main products of LG MECA were air conditioner, washing machine, refrigerator, microwave, vacuum cleaner
On 25/8/2005, the Ministry of Planning and Investment officially passed investment license 1336A / GPDC2 that allowed merging two leading companies in the field of manufacturing and trading of electronic products (LG Electronics Vietnam) and refrigeration products, electrical appliances (LG-MECA Electronics Haiphong Inc.,) into LG Electronics Viet Nam After the merger, LG Electronics Vietnam became 100% foreign capital enterprise, with registered capital of 20.2 million USD and authorized capital of 6.6 million USD.
In 2013, LG Electronics officially invested $ 1.5 billion to build its factory in the industrial zone Trang Due, Hai Phong that was considered the largest foreign investment in Hai Phong until now On 27 Mar, 2015, Hai Phong factory was officially inaugurated and LG Electronics Vietnam changed the name to LGElectronics Viet Nam Haiphong.
Organization structure
3.2.1 LG Electronics Vietnam Hai Phong structure
Headquarter of LG Electronics Vietnam Hai Phong is Hai Phong factory. The company has five sale representative offices in five big provinces Ha Noi, HCM, Da Nang, Nha Trang, Can Tho in which Ha Noi office is head office of sale representative The company also has hundreds of service centers and brand shops nationwide.
CEO of LG Electronics Hai Phong
CEO of Sale Representative Office
Figure 3.1: LG Electronics Vietnam Haiphong organization structure
Source: HR Department 3.2.2 Ha Noi office of LG Electronics Vietnam Haiphong
There are total 174 employees in Ha Noi office divided into 16 departments as below:
Ha Noi Office is head office of sale representative of LG Electronics Hai Phong Hanoi office operates independently with Hai Phong factory and it also has separate management system Hai Phong factory specializes in producing, exporting while Hanoi office specializes in business operations in domestic market.
CEO of Sale Representative Offices
AE Sale Dept Administration Dept
CM Dept B2B Dept Legal Dept
Sale Admin Dept Finance & Accounting Dept Business Planning Dept Service Dept SCM Dept
Figure 3.2: Organization Structure in Ha Noi Office of LG Electronics Vietnam
Employee structure of LG Electronics Vietnam Hai Phong
Table 3.1: Human resource structure by sex of LG Electronics Vietnam Hai Phong in Ha
Figure 3.3: Employees structure by gender
The above table and chart show that in Ha Noi office, the male rate is a little higher than the female rate The male rate accounts for 58% and female rate accounts for 42% In Sale Departments which need employees who work directly with customers and are ready to go for business trip frequently, male rate is 100% while in supporting departments, female make up the majority However, in Top
Management, male rate is 90% In Ha Noi office, the key positions are mainly appointed for male.
Table 3.2: Human resource structure by age of LG Electronics Vietnam Hai Phong in
Figure 3.4: Employee structure by age
The data in table and chart above proved that Human Resource in Ha NoiOffice of LG Electronics Vietnam Haiphong is quite young 93% population of Ha Noi office is under 40 years, in which 47% is under 30 years and 46% from 30 years to 39 years The young generation of Ha Noi office mainly works as staffs, experts,specialists There is only 7% is over 40 years and almost of them are in key positions.
Turnover rate in Ha Noi office is quite high, especially in young generation On the contrary, the middle-aged group works quite stably The key positions will be rotated once/4 years that will be appointed by Head Quarter in Korea.
Analyzing current situation of staff motivation in Ha Noi Office of LG
3.4.1 The survey result of importance level of hygiene and motivational factors
To get the best overview of Ha Noi Office of LG Electronics Vietnam Haiphong employees’ attitudes on motivation, the author has conducted a survey about importance of hygiene and motivation factors The survey was sent for all employees in Ha Noi office and the author received total 97 feedbacks The employees were asked to arrange the hygiene and motivation factors below from level 1 (the most unimportant level) to level 5 (the most important level)
Table 3.3:The survey result of hygiene factors’ importance level for Ha Noi staffs of
Hygiene factors Qt 1 2 3 4 5 Mea n y % Qt y % Qt y % Qt y % Qt y %
Figure 3.5: Importance level of Hygiene factors
For the Hygiene factor, the survey’s result showed that Salary and Relationship are the most important In 97 respondents, 38% considered Salary and 33% consideredRelationship as the key hygiene factor LG Electronics Vietnam Haiphong is 100% foreign capital company with the very rigorous and fair recruitment process Therefore it can be said employees were recruited in LG Electronics Vietnam Haiphong be well qualified employees, which are competitive in the market Thus the first element for them to stick with the company is salary Besides, Relationships factor is also necessary for them Good relationship at work will help them to be happier, be more excited to work The most unimportant hygiene factor is Supervisor Styles.
Table 3.4: The survey result of motivational factors influence for Ha Noi staffs of LG
Qty % Qty % Qty % Qty % Qty % Qty % Mean
Figure 3.5: Importance level of Motivational factors
For the Motivation factors, almost employees chose Recognitions and Job itself as the most important factors Due to almost Ha Noi office members are young, that they want their devotion recognized and want to find suitable job with their capability is very logical The most unimportant motivation factor for Ha Noi office members is Responsibility.
In summary, for employees in Ha Noi office of LG Electronics Vietnam Haiphong, Salary and Relationship are the most important of Hygiene factors and Recognitions and Job itself are the most important of Motivation factors By doing this survey, the author could know which the root of motivation for Ha Noi office members is and find solution to engage Ha Noi members in such a way they give their very best performance However, each member has his or her own point about the important level of hygiene and motivation factors Therefore, we have to consider carefully building suitable policy to adapt employees’ demand.
3.4.2 Analyzing employee satisfaction level about the Hygiene factors in
Ha Noi Office of LG Electronics Vietnam Haiphong
To analyze about hygiene and motivation factors affecting to staff motivation, the author sent questionnaire to current and ex-staffs of Ha Noi office of
LG Electronics Vietnam Haiphong The tables below show the survey’s result To access correctly about satisfaction level of each factor in staff opinion, the author calculated the average point for each factor by formula: level 1 = 1 point, level 2 = 2 points, level 3 = 3 points, level 4= 4 points, level 5 = 5 points And mean ((Quantity level 1 * 1) + (Quantity level 2 * 2) + (Quantity level 3 * 3) + (Quantity level 4 * 4) + (Quantity level 5 * 5))/97.
Table 3.5: The survey result of current employee satisfaction level about company policies
Qty % Qty % Qty % Qty % Qty %
Human resource policy includes recruitment policy, training policy, layoff policy, overtime policy, promotion policy, incentive policy, attendance policy, long term service policy… In general, human resource policy was at normal level with37% staffs feel satisfy, 34% staffs feel normal, 14% staffs feel dissatisfy and 13% staffs feel strongly dissatisfy.
LG Electronics Vietnam Haiphong always maintains quantity of employees properly with workload Therefore, the company had vacancy only when restructuring the organization chart, creating new departments or somebody leaves his/her job Regarding recruitment process, LG Electronics Vietnam Haiphong is quite fair to all candidates Recruitment process for staff positions is normally including the following steps: posting recruitment announcement through recruitment networks or informing employees about vacancies to inform their relatives, collecting and screening candidates’ resumes, doing Toeic & IQ tests, interviewing (how many times depending on the position), making recruitment decisions, processing probation for 2 months, signing a labor contract For high- level positions, companies will have headhunting company to support to find suitable candidates.
Due to having a fair recruitment process, LG Electronics Vietnam Haiphong new employees were very high qualified and be the most suitable person for the vacancy New employees have opportunity to fulfill their capabilities at work. Therefore, most of staffs were satisfied with recruitment policy of the company. Mean of recruitment policy was 3.5, higher than normal level.
Training is organized regularly in Ha Noi office of LG Electronics Vietnam Haiphong However, training is not much effective Only short-term courses could attract employees For long-term courses which lasting several months such as English, Korean courses, the number of employees attending could not remain for long time One of the reasons was that LG staffs were very busy with their works, they could not arrange their jobs for a long time to follow the long-term courses.
Moreover, training courses were not evenly distributed among departments.Sale and Marketing staffs had many chances to join different training courses while staffs in supporting departments such as Administration, IT rarely enter the training courses Oversea training courses were also usually held for some departments.
That was the reason why mean of this policy was under normal level Only 15% chose satisfy with this policy.
It is the policy of the Company to fill vacancies by promotion from within with candidates who meet or exceed the qualifications whenever possible
Promotion decisions will be based upon individuals’ qualifications (training, TOEIC score), experience, prior contribution and demonstrated capacity to perform at higher or improved levels of performance
Mean of this policy was only 2.6, dissatisfy level.
LG employees must comply with the working time in the company from 8:00 am to 17:30 pm Employees must be willing to work at the start of working hours and complete tasks at the end of working time to ensure the success of the company All employees are required to work on time and check in, check out in fingerprint attendance system LG employees are not allowed to be late more than 2 times per month If employees come to work late or leave more than 2 times per, they have to join HRC meeting and be received one notice If employees received more than 3 notices per year, they will be fired
This policy is very strict but it is very effective This policy helped to improve employee discipline Almost Ha Noi office members were familiar and be satisfy with this policy, 14% feel strongly satisfy, 28% feel satisfy and 41% feel normal.
Basing on urgency level of work completion, the company can request employees to work overtime, or working in the holidays Employees have the responsibility to comply this policy unless giving legitimate reasons.
Before doing overtime, LG employees must register on the payroll system and be approved by the leaders And they also have to record working overtime on fingerprint attendance system In case of employees doing overtime outside the office, instead of checking fingerprint on system, they need to make report on total overtime period and be approved by leaders.
The overtime paying is 150% of regular working hours paying Overtime on Sunday is paid at 200% of the compensation for regular working hours Overtime on public holidays are paid 300% by the remuneration for normal working hours. And working in the night shift are paid 130% of the compensation for regular working hours.
Overtime wages are calculated as follows:
Salary * overtime hours * overtime rate
Overtime wages are paid at minimum of 0.5 hours.
Summary of findings
Assessing and analyzing the current situation of staff motivation in Ha Noi office of LG Electronics Vietnam Haiphong brought some positive results that had a positive impact on the psychology and the ability of employees, as well as improving the efficiency of production and business of the company.
In the opinion of the LG employees, hygiene factors had a huge impact on them due to these factors were directly related to their working environment. Among these factors, salary was the most important, however, this factor were evaluated below normal level That was the main reason why in the past two years, a lot of qualified employees had left the company to work for competitors They felt their contributions were not recognized worthy The remaining hygiene factors were assessed fairly satisfied that were considered as motivation for staffs.
At LG Electronics Vietnam Haiphong, among the motivating factors, achievement factor was the highest rating This was understandable because most of
LG employees were young and qualified staffs The other motivation factors were rated quite low, particularly recognitions and job advancement & personal growth.Job advancement & personal growth was also an important factor that had huge impact on motivation of staff, especially the senior staffs Each employee desired to be recognized of achievement that could be by financial or professional development opportunities When they were received these recognitions, they would feel their efforts had been recognized and would continue continuously striving to achieve the larger ladder in their careers.
Benefit factors in LG Electronics Vietnam Haiphong were highly appreciated by the employees The company always cares for employees personal LG always supported and motivated employees both mentally and physically in case of the special days such as marriage, birthday or family member’s funeral Social insurance, health insurance, unemployment insurance were paid by the company on time as regulation of Labor Code Besides, LG Electronics Vietnam Haiphong paid workman insurance for employees to guarantee safety in working time for its staffs.
The relationships in the company were rated very well The relationships between interpersonal – superior, interpersonal– subordinate, interpersonal– peers were very comfortable that made outgoing atmosphere in working, improving the company unite and making people more confidence to work.
Working conditions were also partly meet LG employees’ requirements and expectations The company was gradually modernizing software systems, equipments and infrastructures to improve motivation for staffs and quality of service for customers.
The job itself was also one factor created motivation for LG Employees The employees in Ha Noi office of LG Electronics Vietnam Haiphong were very young, therefore they preferred to have challenging and interesting jobs to get new knowledge and work under high pressure.
Moreover, LG employees were satisfied with supervisor styles They were treated in fair way and satisfied with supervisor's job allocation The supervisor always supported their employees to complete their job, developed their career and cared for their concerns.
Compared with employees’ dedication and contribution, salary and bonuses were not satisfactory Current salary of LG Electronics Vietnam Haiphong compared with companies in the same industry or competitors was assessed relatively low Through interviews with employees who had retired, this was the most important factor for them to make decision to leave the company They felt that their efforts were not recognized and adequately compensated.
Financial policy particular in business trip expenses was too low Staffs that often went for business trip had to spend their own money for it.
The evaluation of job performance was unclear That made the employees feel that they did not need to try hard, just fulfilled their duties was enough, because their attempts to give initiatives to reduce costs or increase revenue was not evaluated in their performance This would suppress the creativity and enthusiasm of the majority of employees
Opportunities for advancement and promotion of staff were hardly achieved. The majority of high positions were hired outside This situation would result depression at work, especially for employees who had experience, seniority, sticking with the company since the beginning.
Through the implementation of the survey and interview with LG employees to analyze the current situation of staff motivation, the author could see that the hygiene factors in the company were not really good, although these factors were partially meet the basic needs of the employees For the motivation factors, most of them did not meet the satisfaction of employees that de-motivate them to work and creativity.
De-motivation causes from the company
The strategy of the company in each stage was unclear The company focused too much on expansion while not guarantee its human resources That led to loss of control and affected the development plans and objectives of the company.
Policies on salary were not competitive compared to other companies in the same field in the market that did not bring satisfaction to employees.
De-motivation causes from employees
Not all employees had a common goal of the company Some people were too focused on their individual goals of their own If they were not satisfied, they would have discontent attitude, affecting to the general atmosphere of the company.
Dissatisfaction in income and the difference of opinion led to a lack of cooperation of some staff in common work.