Luận văn improving employee motivation at the card services business department of vietcombank’s ngo quyen transaction centre

Lunghwa University of Science and Technology Approval Certificate of Master's Degree Examination Board This is to certify that the Master's Degree Examinations Board has approved the th

s Ae Lunghwa University of Science and Technology

Thesis for a Master’s Degree

Improving employee motivation at the

Card Services Business Department of

Lunghwa University of Science and Technology Approval Certificate of Master's Degree Examination Board

This is to certify that the Master's Degree Examinations Board has

approved the thesis improving employee motivation at the card services

business department _of Vietcombank’s Ngo Quyen transaction center published by Mr Nguyen Le Duc in the Master Program of Graduate

School of Department of Business Administration

Master’s Degree Examination Board

Mai Anh

Doan Thu Trang

Assoc Prof Fan, Kai - Tang

ABSTRACT

Thesis Tille + Improving employee motivation al the card sorvicos business doparhmcut

of Vietcombank’s Ngo Quyen transaction canter

Pages ! 6L University : Lunghwa University of Science and Technology

Graduate School : Department of Business Administration

Date + June, 2018 Tegree ¢ Master

Researcher : Neuyen Le Duc Advisor PhD Ngo Vi Dung

Assoc Prof Fan, Kai - Tang

Based on actual xoguirement, thcoretical basis, docunhts, preceding studies on the

issue about human reso management in general and.employee motivation in

particular, | have chosen topic| for my thesis: “Improving employee motivation at the

card scrvices business departracnl of Victcombank’s Ngo Quyen transaclion center” In

this thesis, 1 use secondary data Sourbes fiowi the documents, reports, policies of the

bank and primary data sourebs| tom in-depth interviews with employees and managers

on motivation of employees at the Card Services Business Department in the period 2014-2017 The author also points out the advantages, drawbacks al the Departinent affecting the employees and causes of these problems

‘The thesis concludes with the recommendations to improve employee motivation

‘Therefore ! betieve that my research will not only help the Center to realize its current situation but work out some good solutions for its hetier perforinamec as well

ACKNOWLEDGEMENT

Firstly, T would like to express my gratitude lo Ihe International School, Viz am National Universily TEmoi and Lamghwa University of Science and Technology with all members, lecturers and staff’ for their great guidance, constructive contributions and valuable advice during my study

Sccondly, 1 would also want lo express my sincere approciation to my supervisors, PhD Ngo Vi Dung and Assoc Prof Van, Kai - Tang for their patience, motivation, and immense knowledge Their guidance is invaluable for me to complete this MBA thesis

Besides my supervisors, I would like to thank to the help of many people working at the card services business department of Vietcombank’s Ngo Quyen transaction center, cspcoially the people who are fully occupicd in business but still be willing to provide me with a lot of useful information

Last but not the feast, 1 would like to thank my family, my beloved ones for supporting me spiritually throughout writing this thesis and my life in general

Nguyen Le Duc

2.1.2 Signilieaneo of omployoo mativaliort

2.2 Conceptual framework on analysis of employee motivation

3.3.1 Respondents’ profile by years of experience 28

3.3.4 Respondents’ profile by qualifieation ccccee ee 30 3.4 Analyzing employee motivation at the Card Services Business Department —

BUSINESS DEPARTMENT OF VIETCOMBANK’S NGO QUYEN

LIST OF FIGURES

Figure 1, Respondents’ profile by years of experience

Figure 2, Respondents’ profite by gender

Figure 3 Respondents’ profite by qualification

Figure 4, Employees’ evaluation towards Bank's policies and administration

Figure 5 Employees” evaluation towards Quality of supervision

Figure 6 Emgloy

Figure 7, Employees’ evaluation towards Salary

Vigure 8 Employees’ evaluation towards Achievement

Figure 9 Fruploy

Figure 10 Employees’ evaluation towards Advancement

Figure 11 Employees’ evaluation towards Growth

Figure 12 lu evaluation towards Overall emmployees* motivation

evaluation lowards Working conditions

valuation towards The work ilscl

LIST OF TABLES

‘Table 1 Data collecting method for in-depth interview

Table 2 Data collecting method for survey

Table 3 Herharg’s Two-factor Theory

Table 4, Organizational structure of Vietcombank

3

3

12

2d

‘Table 5 Measurement variables to analyze employee motivation at the Card Services

Business Department of VCB’s Ngo Quysn Transaction Conlre

Table 6 Respondents’ profile by age

‘Table 7 Vietcombank’s visit regimes and policies

ABBREVIATIONS

AGM Anmual General Meeting

ATM ‘Antomated Teller Machine

Joint Stock Commercial Rank for Investment and Development of

BOD Board of Directors

Bolt Board of Managers

CAR Capital Adequacy Ratio

CSB | Card services Business

EMBA English Mester fot Business Administration

ro Hilil Puhlie Offvig=—= ,

Ä+SC Joint Stock Commercial

MBA Master for Business Administration

NPL Non performing Loan

OECD Organization for Economie Co-operation and Developinent

ODA Official Development Assistance

PHCO Petrolimex Insurance Joint Stock Company

viit

Point of Sales

SBV Slale Bank of Vieumam

FCB Joint Stock Commercial Bank for Foreign Trade of Vietnam

Vietcombank | Joint Stock Commercial Bank for Pareign Trade of Vielnarn

Vietinbank — | Vietnam Joint Stock Commercial Bank for Industry and Trade

USD United States Dollar

1 INTRODUCTION 1.1 Rationale

‘An article fiom a popular entrepreneur magazine, Inc., defines employee motivation as, “the level of energy, commitment, and creativity that a company’s workers bring to their jobs” (“Employee motivation,” 2010) Whether the economy is growing or shrinking, finding ways to motivate employees is always a management concern Motivated employees can lead to increased productivity and allow an organization to achieve higher levels of output

Joint Stock Comunercial Bank for Foreign Trade of Vietnam was founded on April

1, 1963 as Bank for Foreign trade of Vietnam It was span off from the Foreign Exchange Bureaa of the Stale Bank of Vietnam to be an exclusive bank for foreign teade, In 1990, Vietoombank diversified its services fiom being exclusively focused on foreign trade to become a mass market commercial bank ope bank was then after listed

onthe Ho Chi Minti Stadt Frcluinge on Juns 30, 2009 afler a successful TPO that raised

US8652 million snaking it m biggest Vietnamese firnt to, ‘conduet an initial publie offering After more than a half-century) operating in the tre, Vietcombank currently hws more than 15,000 embloyces, shore jm 500 branch

representative office affiliates kòm rà Mietham and abroad With the aim at expanding the bank's larger scope, it is necessary for the’ Board off Managers (BoM) to develop an

Understanding the importance of amployee cncouragement in the bank, the researcher goes into the study “Improving employee motivation at the Card Services

Business Department of Vietcombank’s Ngo Ouyen Transaction Centre” By

anelysing the factors which have influence in employss’s low perfortoanec and

‘The main objectives ofrosearch include

- To clarify dimensions and attributes to measure employee motivation,

- To analyze and assess the current employee motivation situation at the Card Services Business Department of Vietcombank’s Ngo Quyen Transaction Centre,

- ‘To propose solutions to improve employee motivation at the Card Services

Business Dupartment of Vietcorlunk's Nga Ota 1 Transaction Contre

1

Based on the above objettives, the exeath answers three following questions

- What are factors to measure employes motivation? st re employ

= Tlow is the currerit, employee tmotivation situation al the Card Services

Business Departinent of Vieteombank’s Ngo Quyen Transaetion Centre?

- What are effective solutions for the Card Services Business Department of

Vieleombark’s Ngo Quyen Tramsaelion Contre lo improve employee

motivation?

1.4 Methodology

1.4.1 Research process

My thesis uses three methods

- Secondary data: Research papers, articles

- Reports of Vietcombank (Annual reports, other relevant reports)

- Survey (Questionaires)

1.4.2 Data collection

1 Secondary data

Through research papers/articles on the internet and other relevant reports of the

bank, I collected secondary data in order to identify the bank’s reality of employee motivation These sources included reports, documents, and salary policies over the period of 2014-now at Vietcombank, Ngo Quyen Transaction Centre and the Card Services Business Department

2 Primary data

In-depth Interview: it was carried out with both employees and managers of the Card Services Business Department to know about their mutual understanding, the

assess how the employees are motivated or not motivated in the workplace

Table 1 Data collecting method for in-depth interview

The survey was conducted to employees working for the bank

Table 2 Data collecting method for survey

(Questionnaires) the 76 employees at | Current situation of CSB | employee motivation at

Department of | Ngo Quyen

Ngo Quyen | Transaction Centre

There were 72 valid

answer sheets, reaching

ratio of 94.73%

Source: Researcher

1.4.3 Data analysis

Exeel sofware of Microsof Office was uscd to do slalistic secondary data and

process primary data,

fa |pteeee from the bank's reports and relevant documents

i over the period $f!

Chapter 2: Literature review and conceptual framework

Chapter 5: Current situation of employee motivation at the Card Services Business Department of Vietcombank’s Ngo Quyen Transaction Cenlre

Chapter 4: Recommendations for the Card Services Business Department of

‘Vietcombank’s Ngo Quyen Transaction Centre to improve employee motivation Chapter 5: Conclusion

2 LITERATURE REVIEW AND CONCEPTUAL

Golembiewski (1973p 597) refers lo motivalion as The, degree of readiness of an

organization to pure some designated goal and implies the deeitination ofthe nature and loeus

of the forces inducing the deghep of readiness `

To Kelly (1974, p 2

the direction, quality and ñữ5IãNỹ dỹ 'ehavior Aoeording:lo Hoy and Miskel (1987,

p.176), employee motivation ithe sanglet forces, drives, needs, tension states, or oller mechanisms thal start and moiintain voluntary activity directed towards: the

} Fhotivaion has to do with the Torees tha inaintained aller

achievement of personal goals

According to Butkus & Green (1999), motivation is derived ftom the word

“motivate”, means to move push or persuade to act for satisfying a need Baron (1983), defined motivation in his own right he says that “motivation is a sct of process concemed with a kid of force that energizes behaviour and directs it towards achieving some specific goals”

Many writers bave expressed motivation has a goal directed behaviour This

objective nature of motivation is also suggested by Kreitner and Kinicki (2001 p.162) pul forward that motivation reproscnis “those psychological procusses that cause the stimulation, persistence of voluntary actions that are goal directed” In another term, a motivated person has the awareness of specific goals that must be achieved in specific ways; therefore he/she directs its effort to achieve such goals (Nel et al 2001) Mullins (2006), indicates thal, 1 study of motivation is conccmed, basically, with why people

behave ina certain way ‘he basic underlying question is “why do people do what they

do?" In general Icrms, motivation cam be described as the direction and persistence of action It is concerned with why people choose a particular course of action in preference to others, and why they continne with a chosen action, offen over a long period, and in the Bive of diffeullics and problems, Motivation is onc of the key ingredicnts in cmployee performance aud productivity Even when people have olcar work objectives, the right skills, and a supportive work environment, they would not get the job done without sufficient motivation to achieve thse work objectives (Mullins, 2006) Motivation refers to the forces within a person that aifect his or her direction, intensity and persistence of voluntary behaviour He added that motivated employces are willing lo exerl a particular level of ffert (intensity), for a certain amount, of time (persistence), toward a particular goal or direction (Mullins, 2006)

Ifinedo (2003) demonstrates that a motivated worker is easy to spot by his or her silty, dedication, enthusiasm, focus, zeal, and general performance and contribution to organizational objectives and goals All organizations arg:Goticcrned with what should

be done to achieve suslailed high levels of performance through people This means

giving close attention To Hor ! indivicnals can best be motivated through such means as incentives, rewards, toad tip—and| ‘mppriantly, the ; work they do and the

organization’s context within ae they sỹ out that work ‘The aim is to develop

Tolivation processes and a work environment that will help to ensure [hat indivichuals

deliver results in accordance with the expectatioris of management

Denbardt et al, (2008) also define motivation as an untenal state tat causes people to behave ina particular way to accomplish particular goals and purpose, it is not possible to observe roolivation ilscIE il’s possible to obscrve the outward manifstaions of wotivation

Denhardt et al (2008) further stated that motivation is not the same as satistiction Satisfaction is past oriented, whereas motivation is 12 firture oriemted igalens & Roussel (1999)

on their pert also slated thal workers zmmy be very salisied by the compensation of their job; dere are countless instances where these workers are not entirely motivated fo continue doing what they wonld do, Motivation is certral to management becanse it explains why people behave the way they do in organizations Motivation may also be defined as the intemal process Ieading, to behaviour to satisfy needs, The process people go through to sufisfy their needs is nzed - motive - behaviour - satisfaction of dissatisfiction (Lussier, 2005)

Definition of motivation according to Society for [luman Resource Mamagement (2010),

tmolivation is generally defined us the psychological Rares that determine the dircotion of a persons level of effort, as well as a person's persistence in the fice of obstacles

Rajput (2011) defined motivation as “the individual’s desire to demonstrate the behavior and reflects willingness to expend effort” Motivation cm be divided into extrinsie and intrinsic motivation, “Exbinsic motivation is related to tangible rewards such as salary and fiinge benefits, security, promotion, contract of service, the work environment and conditions of service These are whel need to be done to or for people to motivate them They are oflen determined al the organisational level and may be largely outside the control of the individual managers Extrinsic motivators can have an immediate and powerfil cfct but will not necessarily last long (Mullins, 2005; Armstrong, 2006), Inrinsic motivation is related to psychological towards such as the opportunity to use one’s ability A sense of challenge and achievement, receiving appreciation, positive recognition, and being treated in a caring and considerate manner Psychological rewards are those that can ually be determined by the actions and behaviour of the individual managers (Mullins, 2005) ifinsic motivators are concemd with the quality of worklife, ac ily to have

a deoper and longet tem.effeot because they ate iriherent in individuals and not imposed fiom

ontside (Armstrong, 2008) ` | |

Motivation is the process of-stzofing a person's incr dfives and actions towards

i 2s to achieve these goals It involves a chain

inamolives which give rise 1a tension which

certain goals and committing his_énet

reaction starting with felt ne + resulli

census action towards goals Hf is the process of stimulating people to strive willingly

towards the achievement of otganizational goals Motivation is an integral part of management process

There are many definitions of employee iolivation; here are 3 definitions from Rick Pitino, Twyla Dell and Buel Lee wiks

Rick Pitinostated that the only way to get people to like warking hard is to motivate them Today, pcople must understand why they're working hard Every individual in an organization is motivated by something different

According to Twyla Dell, the heart of motivation is 1o give people what they really want most fiom work, The more you arc able to provide what they want, the more you should expect what you really want, namely: productivity, quality, and service

And Burrel Lee Wilks defined employee motivation as a reflection of the level of

crergy, commitment, and creativity (hal a company’s workers bring to their jobs

Employee motivation is thus the combination of fulfilling the employee's needs and expectations from work, and the workplace Gielors Wet cnable employee motivation —

or not It is considered as a force that drives the employees toward attaining specific goals and abjectives of the organization

2.1.2 Significance of employce motivation

‘There are several reasons why employee motivation is important Mainly because it allows management to meet the company’s goals Without a motivated workplace,

better emplovee performance helps the organization achieve higher productivity.”

Jonathan, Christine and Yvonne (2002), identified that “greater motivation will

hove a direct cfftct in improving productivity through grcater offixt and possibly

innovation ‘they also stated that rnotivation leads to a productive with high

performance employee who đozs the best al work, saves time and effort and also

volunteers to do more than what is required Such employee will be a preat resource to

the business and a great model to be followed by others.”

“employees are motivated and happy they will do lo the werk to the best of their ability instead of just doing it because they have to” (Ryan, & Deci, 2000)

Kimberly Schaufenbuel, program director at UNC Executive Development, says that ‘by understanding the reasoning behind employees? actions, and using those results

to motivate them, you can improve business performamec’ When employszs become

unmotivated, they become disengaged ftom their work and the company Employee engagement is incredibly important, as only highly engaged employces are invested in moving the company forward and producing their very best work By contrast, actively disengaged workers can not only damage company results but the quality of the product

and negatively affect the company culture as 2 whole

Tn “The Bes! of Gallup Management Journal 2001-2007", Jerry Krueger and Emily

Killham describe three types of employees:

Engaged employees work with passion, and they feel a profound connection to their company They drive innovation and move the organization Forward

Not-Engaged employees are essentially “checked out.” They're sleepwalking through their workday, puiting time — but not energy or passion — into their work

Actively discngaged cmployces arcn’'t jusl unhappy at work; theyre busy acting out their unhappiness Every day, thesc workers undermine what their engaged coworkers accomplish

As can be expected, actively disengaged employees do the most damage These employees are emotionally disconnected trom their companies and may actually be working against their employers’ interests; they are less productive are more likely to

sleal from their companiss, negalivcly influcnee their coworkers, miss workdays and dtive customers away Whereas, motivated employees can lead to increased productivity and allow an organization to achieve higher levels of output

Employee mbtivation is highly important for every company due to the benefits

that it brings to th: company Benefits include: :

Inereased employes conunitment: When employees are motivated to work, they will generally put theif est effort in the ‘asks that ar assigned to them

Improved employee satisfaction | Employee satisfaction is important for every

company because this can lead towards 2 positive growth for the company,

Ongoing employes development: Motivation can facitilats a worker reaching hisfher personal goals, and can iãoiitale the self development of an individual Once that worker meets some initial goals, they realize the elear link between effort and results, which will fisther motivate them to continue at a high level

Trnproved cmployce efficieney: An employe

efficiency level is not only based on their abilities or qualifications, For the company to get the very best results, an employee needs to have a good balance between the ability to perform the task given and willingness to want to perfonmn the task, THis bakanec can toad to an increase of productivity and an improvement in efficiency

Motivation is very important in an organization bacause it provides crucial tink between cmployce job satisfaction and cimployee performance Level of motivation in employees will determine organization profit and success Therefore, employee motivation is the core of management Employee motivation is an effective instrament

in the hands of the managsinent in inspiring the work forag Tis the major task of every

manager to motivate his subordinate or to create the will to work among the

subordinates Te should alsa be remembered dat the worker may be immensely capable

of doing some work, nothing can be achieved 1f he is not willing to work Creation of a will to work is motivation in simple but true sense of term L:mployee motivation is an

imporlant function which very manager performs for actuating the peuple to work for accomplishincnt of objectives of the organization Issuance of well-conczived

instructions and orders does not mean that they will be followed A manager has to anake appropriate use af motivation to enthuse the employees to follow them Tilective

motivation succeeds not only in having an order accepted but also in gaining a determination to see that it is executed efficiently and effectively

In order to motivate workers to work for the organizational geals, the managers must determine the motives or needs of the workers and provide an environment in which appropriate incentives are available for their satisfaction If the management is successful in oe so; it will also be successful in inoréasing the willingness of the

workers to work| This will increase efficiency and élfectiveness of the organization

There will be better sifitization of resources and workers’ abilities and capacities

2.2 Conceptual framewark on aitalysis of eniptayce motivation

‘you become more productive, your need to be productive may grow,

‘The two-factor theory (also known sslHerzbegs motivatonhygiene theory and dual-factor theory) stalcs that there are certain: factors in the workplace that

10

cause job satisfaction, while a separate sct of factors cause dissatisfaction It was developed by psychologist Frederick Hervburg, who theorized that job satisfaction and job dissatisfaction act independently of each other In his Two-Factor Theory of motivation, he argues that there are two types of factors involved in motivation: extrinsic and intrinsic,

The Two Factor Theory has had a considcrable amount of practical and as well as theoretical influences in the scope of this thesis, the author wants to refer to the most popular theory — tha is the Two Factor theary

2.2.1 Overview of theory

‘the ‘Iwo-Factory Theory was proposed by American psychologist Frederick Horvherg In 1959, Herzberg conducted a study with 200 engineers and aceouriants as the subjects They were asked to recollect their expatiences: and feelings (positive or negative) they hdd at work, and the reasons behind the may they felt Based on the subjective data front the tekpondents, Merzberg began to analyze their job attitudes

From the study he proposyd la two-fictor approach wlicn attempting te understand

motivation among employees, Regarding the folleotion process:

“Briefly, we asked ourregiondsi F†

were exceedingly happy and unhappy-with-their jobs Each respondent gave as many † ,

lo describe periods in their Tives when they

“sequences of events" as he could that met certain’criteria—including a marked change

in (eeting, a beginning and an end, and contained some substantive description alher than feelings and interpretations

The proposed hypothesis appears verified The factors on the right that led to satisfaction (achievement, intrinsic interest in the work, responsibility, and advancement) src mostly unipolar, thal is, they contribule very ills to jab dissatisfaction Conversely, the dis-satistiers (company policy and administrative

practices, supet

contuibute very little to job satisfaction.” - Hersbere, 1964

ision, interpersonal relationships, working conditions, and salary)

1

Table 3.Herzberg’s Two-factor Theory

Job satisfaction

b2

Rotter ins (motivation) factors

From a theoretical perspective, Herzberg's motivation theory can be perceived as

having similarities to Maslow’s Theory of Need with the exception that for Herzberg's

theory, the needs aren't placed in a progressive continuum, rather they are divided into

two independent factors In fact, Herzberg would argue that the opposite of satisfaction

is not dissatisfaction since different stimuli are involved in generating each of those

emotional states, reinforcing the fact that they are not on the same continuum

Remedying the causes of dissatisfaction will not create satisfaction Nor will adding the factors of job satisfaction eliminate job dissatisfaction If you have a hostile work

environment, giving someone a promotion will not make him or her satisfied If you

create a healthy work environment but do not provide members of your team with any

of the satisfaction factors, the work they're doing will still not be satisfying

According to Herzberg, the factors leading to job satisfaction are "separate and

distinct from those that lead to job dissatisfaction." Therefore, if you set about

eliminating dissatisfying job factors, you may create peace but not necessarily enhance performance This placates your workforce instead of actually motivating them to

improve performance

The characteristics associated with job dissatisfaction are called hygiene factors

When these have been adequately addressed, people will not be dissatisfied nor will

they be satisfied If you want to motivate your team, you then have to focus on satisfaction factors like achievement, recognition and responsibility.

“> Motivation factors

Motivation factors are anes thal dircelly motivate employees ta wark harder (motivators or satisfiers) These are linked to employee motivation and arise from intrinsic, or dependent, conditions of the job itself Factors for satisfaction include

achicvemnent, recognition, responsibilily, work ilsel{, personal growth and advanecrnent

- Achievement: An achicvement is something which somconc has succeeded in

doing, especially after a lot of effort An employee gets achievement when he completes assigned work successfully or las a good idea, brings profit for his organization,

- Recognition: ‘The recognition is a process of giving an employee a certain status within an organizalion This is a very crucial factor lowards an cmployce motivation Recognition describes how the work of an employee is evaluated and how much the appreciation he receives in zetum fiom the organization It

also specifies the way an organization gives its employee the reward and status

- Responsibility:.A.duty ot obligation to satisfactorily perform or complete a task

km creatéd by one's own protnises or circumstances) that one inust fulfill, which ‘Tias a conscqugnt penalty for failure

- The work itself Work j8df weg employees liking and disliking of his or

her job Tl explains whether the job oftemngloyee ws enjoyable or wot

- Personal yrowth: It ineludes not only-tlie likelihood that the individual would

(assigned by someor

be able to move onward and upward within the organization but also a possible situation of growth to improve his own skills and profession Using personal growl as a motivalar involved with rmmagers working harder to change [heir employees think about their jobs, give them supports to make them fo become more capable and make them feel that their jobs are meaningful in order to inake to core Lo work and fecl happy with it,

- Advancement, It is the promotion opportunity of an employee, either proactive pursuit of'a higher ranking or a reward by managers for good performance

Hygiene factors

Hygiene factors are factors that do not give positive satisfaction or lead to higher

motivation, and their absence will lead to dissatisfaction Herzberg used the term

1

“hygiene” in the sense that thess are mamtenanee factors ar dissatisfiers ‘These factors

arc extrinsic 1o work

Hygiene factors are a type of expectation that impact a person's motivation They

ate a type of basic condition that don't increase motivation if they are met but may dramutically dccrzase motivation if they are nol mel

+ Hygiene factors include

Company policies and administration: Administrative policies for employees help employees understand basic rules of the office They are typically presented during an employse’s orientation period A company’s human resources department usually enforces the policies and provides employees with

mistakes,| accidents, aud injurics Poor supcrvisioir removes a very important

part of the employe support process, eliminating the opportunity for reference,

learning, and safety

Working condor “Working jconditions axe at tic! core of paid work and

employitent relaionshifs_ Geherally speaking, iyorking conditions cover a

1

broad range of lopf| nl issues, om working time Qhaws of work, rest

Ï periods, nnỏ work schellss) to rạnnerktion, as well as the physical conditions

Interpersonal relations: A close association between individuals who share common interssis and goals is called interpersonal relationship The relationships of cmployces with their pecrs and supervisors should be appropriate and acceptable There should be no conflict or humiliation.”

Job security It is an assurance that an individual will keep his or her job withoul tho risk of booming onemploysd He will have continuily in

14

employment and it may be fom the terms of a contract of employment, collective bargaining agrzement, or labor legislation thal prevents arbitrary termination, Job security may depend on economy, prevailing business conditions, and the individual's personal capacity

Busically the theory differcntiales the factors between inlrinsic motivators and cxtrinsic motivators, The intrinsic motivators, known as the job content factors, define things that the people actually do in their work; their responsibility and achievements

‘These faclors are the ones thal cam contribule a greal deal to the level of job satisfaction

an employee feels at work The job context factors, on the other hand, are the extrinsic factors that someone as an employee does not have much control over; they relate more

tơ the emiromnơnl in which poople work than to the nature of the work ilsclf Therefore, the basic premise of the Two-Factor Theory 1s that if an employer or manager is trying to increase job satisfaction and ultimately job performance for an employes or coworker, they need to address those factors that effect one’s job

satisfaction The post direct approach is to work on the intrinsic, job content factors

Tị,

2.2.2 Critics of Terzberg's ire factor theory

éd op the ground that it provides an insight into the

Tlervberg’s theory is appréciat

- Not conclusive: Ulerzberg study was limited to the engineers and accountants The critics say that this theory is nol conclusive because ihe professionals or the white collar workers may like responsibility and challenging jobs But the general workers are motivated by pay and other benefits, The effect of hygiene and motivational factors may totally be reverse on some other categorics of people

- Methodology: Another criticism of this theory is directed al the method of

roscnrch and dala collection, The imtervicwers were asked lo report

15

exceptionally good or exceptionally bad job experience ‘This methodology is

defeetive becaus:

such information will always be subjcetive and biased

- Job enrichment: This theory has given too much emphasis on job enrichment and has totally ignored job satisfaction of the workers ile didn’t attach much importance to pay, stalus or interpersonal relationships which are gonerally hdd

as grcat motivators, Keoping in view all these points we can conclude that Herzberg’s theory has been widely read and there will be few people who are nol fimiliar with these recommendations This theory provides valuable guidelines to the managers for structuring their jobs in order to include such factors in the jobs which bring satisfaction

2.2.3 Research related critics of Twa Factor theary

Despite the fact that the Two Factor theory is a satistictory and beneficial

theoretical framework for this stady, it is also impotfant;to look at it through critical lenses in order to ‘aeivifypofaibte implications for the research

Firstly, the Two Factor! theory dates back to 1959, it naturally raises a logitimate

* |

question if the theory is outdated, Is i

till là and i today’s society and business

The society nowadays is different-diomones in the past five decades the when the

theory was introduced It was a’ manufacturing society, where the majority of the jobs available were related io the production of goods Towever, current saciety is characterized as a service socisty, where according to OECD (2005) more than 70% of the employment is in the service sector Therefore, the theory does not fully reflect current conditions Some motivational factors suggested by the ‘I'wo Factor theary are supplemented by additional motivalional factors that better reflect the characteristics of the current society and work conditions But the core idea of the Two Factor theory should maintain relevant in the modern society and current business settings, The focus

of the thesis is to usc the theory to identify suitable factors that motivate employers

Secondly, the critieal evaluation of the ‘Iwo Factor theory relates to the background for conduction of the study Herzberg’s study focuses on the manufacturing industry (production and fabrication for motals) and the study conducted in the thesis foeuses on

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the service sector (banks) ‘There are a number of distinctive features Not all of factors

mentioned im Two factors are relevant and reflec characteris ios of the scrvice industry

Finally, the critical assessment towards the Two Faetor theory relates to the population ‘The two-factor theory developed from data collected by Merzberg from interviews with 203 enginzers and accountants in the Pittsburgh aca, so that male is dominant and motivational factors suggested in the Two Factor theory arc based on the male values ‘he gender distribution among this research population is almost female, which means that different type of factors could be pointed

2.2.4 Conceptual framework

As mentioned above, motivation on the overall performance of employees is very important for many different reasons To identify Gactom thal are inmpostanl when evaluating the motivational levels of employees at the»Card Services Business

Department of Ngo Quyen ‘'ransaction Centre is one of objectives of the research

Iarzberg's Twở-ft

factors so that the job must tr the employees’ skjls and competeneies to the

via Cael Setviees Business Department of Ngo Quyen

liciés and administration, Quality of

Transaction Centre, as follows Bank’s:

Supervision, Working conditions, Salary, Interpersonal relations, Achievement, The

Ee [Theory ig used to analyze both motivators and hygiene

3 THE CURRENT SITUATION OF EMPLOYEE MOTIVATION AT THE CARD SERVICES

BUSINESS DEPARTMENT OF VIETCOMBANK’S

NGO QUYEN TRANSACTION CENTRE

3.1 Overview of Vietcumbank

3.1.1 History of Vietcombank

On May 6th 1952, President iio Chi Minh signed Decree No.15/SL on the

cslublishment of National Bank of Victmam, After resluration of peace in (he North, the establishment of| diplomatic and trad2 relations with, othict countries was put into

consideration Therefore, Foreign Exchange Bureau under the National Bank of

Victnam was established shed dofording to Dosioe No 443/TTg,dated January 20th 1955 of

the Prime Minister to adviseltht Got Goverment on managemesit of foreign currency, gold,

silver, trade and non trad pay in the world, Then: gr October 26th 1961, the

Govermuent isened Decree Be, (7VCP Ho reqeme The Mational Bank of Vietnam into

The State Bank of Vietnain| includitig=de~Forvign Exchange Department, which replaced the former Foreign Exchange Bureau, ‘This was a step forward, paving the way

for establishment of specialized banks and forcign banking operations later on To conform to international practices on foreign banking, operations, on October 30th 1962,

the Council of Ministers issued Decree No 115/CP on the establishment of Bank for

Forcign Trade of Viainarn tasked with forcign exchange trading international payments, international credit, and foreign trade loans, The Bank was also tasked with participating in the management of foreign exchange; contributing to monetary and public properly protection; enhancing and expanding of economic, political relations and cultural exchanges with foreign countries, After a preparation period, on April ist

1963, the Bank for Foreign ‘rade of Viemam was officially put into operation and, singe (tren, the brand of the Bank for Forcign Trady af Vietnam was officially bom

It was the first State-owned bank chosen to go public in the Vietnamese stock

market in 2008 Vietcombank is named as one of the four strongest commercial banks

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in the banking industry together with Agribank, BIDV, and Vietinbank In many years, Vieleombank has bzen iu the major raling lists of “Top 400 banks of the world” (Year 2013-2014) by The Banker magazine, “Top 500 most valuable banking brands of the world” by Brand Finance— a reputed asset valuation consultancy, “lop 100 most inleresting companies in Asian region” by Nikkei Asian Review magazine, or “Best Bank in Vietnam 2015” by Euro money magazine These awards have acknowledged the position of Vietcombank in numerovs operating functions and solidified the goal of sustainable development to be the leader of the market by 2020

From the date of establishment, Vietcombank has contributed enormously to the overall economic development nationally and regionally as the crucial bank of foreign

trade Nonciheless, Victeombank has nol stayed in its comfort zone, the bank nowadays

is becoming more and more diversified in its products to provide a wide range of customer groups with selective services varying ftom traditional activities such as

deposits and loahs, international mading support, project granting service, etc to

bank card services, Intem¢t banking and so on Moreovar, by possessing and investing

ctivitics such as forcign currency exchange, derivative instrument,

constantly into a highly mde information technology, the bank has enstomized its

products to be faster, safcr’arid-more sfiective to retain the cxisting clicnts and attract

statistically by Vietcombank, it has

approximately 14006 coy Joes, 400 different offices wationally, 2 subsidiary

tore potential customers ft éstininted

companies and cementite office abroad, ‘axound 2100 ATM machines all over Vietnam, In addition, the bank is also supported by a network of other 1800 bank offices operating in 176 countries so that it gets more convenient for its customers wherever they are

3.1.2 Business strategy

Vietnamese economy has opened the door to the international business since 1995 which ercated cnormous opportunities for the banking industry to enlarge the scope of commercial banks’ operation, However, in parallel with that, it generated challenging

obstacles (hat force the banks lo continuously revolutionize Ih pselves and adapt lo the fierce markel environment Victeomnbank is nol cxeeplional Over mare than 50 yoars of

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operating, Vistcombank has strived constantly for the sustainable growth and the

overall development of the Vicinarn

economy, The business objective of Vietcombank aimed to achieve in the next few years is

“to filly transform into a nmulti-fimctional bank on the base of international banking practices, mmintain the key player in Vietnamese market, and become ons of top 70 financial institutions in Asia by 2020” (Victeombank annual report of 2014) To make the objective come to tuition, the business strategy should always be followed as the guideline in every move mads by Ihe Board of Direclor to “Bring the success lo customers, Ensure the fature for customers, Convenience in every transaction and commercial activity in the market”

Vietcombank has bs:

trưng lo build a different bmd identity and aiming to become the leading bark in Vietnam in 2030 for years, Thereby, Vietcombanik issues a statement about five basic core values such as reliability standards, innovation, stability, and empathy These claims are very good but they are discrete, lengthy, and forgettable, and thus, it is difficult to convoy all the sngahings to the cmployocs and customers In the’ bg; of 2013, Vietcombank anhowiced a new brand identity

recognition system with cdlmplete chinges in signs, Ing6, slogan, furniture of the

offices, employees’ unites! and it publications,” Ina period of 25 years, Vietcombank has lad a total éf'thfee times bhanging the ‘brand identity In 2010, the bank published ä handbook,

mission, and standards of beFiaviors, with-the pixpose of building its corporate culture

and brand identity, which is Vietconttank brand culture The values that Vietcombank

is aiming are:

ahont its botturk éneluting some factors, ích as vision,

+ Mission: the leaiting bank for Vietnam's prosperity

- Vision: to become a diversified financial group on par with other powerfial financial corporations in the region by 2030

~The image of (ie bank: grcen and prosperous, reliable and modem, fiendly and sharing Vietcombank,

Vietcomhank’s team of professional employees with excettent ability in banking and finance have a good sense for modem and integrated business cnvironment, ctc Thanks to their contribution, Vietcombank remains the primary choice for large corporations, domestic and foreign enterprises as well as millions individual customers

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Table 4 Organizational structure of Vietcombank

Source: Vietcombank's website

3.1.4 Business operation outcomes

In 2017, Vietcombank continued to record outstanding growth and achieved

= The bank allocathd more than VND6.18 trillion for provisioning last year

= Its trading of fob In currencies was worth $45.1 billion, rising by 27.2 per

cent, while transfer of rertuttancds was worth $1.9 billion, up by 14.9 per

+ Profit before wl of 31/42/9012: xeached VND 11,341 billion, up 32.2%

on 31/12/2016, exceeded its target by 73%

= NPI ratio was 1.11%, Tess than 2%,

Asset structure transformed clearly in terms of quality: credit structure shifted to the right direction of increasing the portion of retail credit and gradually reducing wholesale credit; the siructure of deposits moved in line with the development orientation of the Bank fiom wholesal: to retail and the orientation to altract low cost funding, NPI ratio decreased and was below its plan; Capital Adequacy Ratio (CAR) ratio met the SBV’s requirement

Victcombank was ths largest among listed banks by capitalization, with its share

traded at VNDS8,800 each on Friday morning and a market capitalization of nearly $10 billion

Reporting al the bank's 2018 business conference,

General director Phạm Quang Dũng said the results in 2017 were impressive and tar exceeded targets Also,

2

\Vietcombank Chairman Nghiem Xuan ‘Thanh said the bank’s project to restructure and resolve bad debts by 2020 was approved by the State Rank of Vict Nam, targeted to develop Vietcombank into the leading bank in risk management in Viet Nam, as well as

to join the top 100 largest hanks in Asia, and become one of the world’s top 300 financial corporations

The centrat bank also allowed Victcombank to offer shares to forcign investors ina private placement which, Thanh said, if successfully implemented in the first months of

2018 would be a posilive sign Morover, Prime Minister Nguyen Xuan Phuc gave a greenlight to Vietcombank’s plan of opening a subsidiary in Laos

On Jannary 8, Vietcombank announced that it would complete the development of the probabitily of default (PD) wedel in accordanes with Basel 2.With the PD modzt, Vietcombank was getting ready to apply Basel 2, following an advanced internal ratings-based approach

3.1.5 Business orjentation for the year 2018

——I

Continue the motto Is fomntion ị Ị - Effvetivencss wn - Sustainability a and

management orientation Inupvation - Discipline - Respdngjbiliies, the Bank’s system makes best efforts to boost if pReration, success [ally implement the plan following the

management direction of the Gpyerninent-anel the SBV,

Main orientation m some specific fields as follow:

© Business activities

¥ Promote retail credit and low cost finding; diversify the portfolio and reduce loan amount to chlerprise with low profit; foster credit sales together with other banking services

Y Focus on unplementing 3 key areas, pillars in 2018 business operation: Services, Retail, Treasury and Investment,

Y Strengthen the handling process of NPLs, written-off loans,

Y Strongly reform the business segment — treasury, foreign exchange and trade finance

v Continue strengthening the operation of subsidiaries and enhance

investment efficiency

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w länalize the Scheme to transform the ownership structure of the

subsidharies: VCBL., VCRS, corinne divestment al some credit institutions

* Management

Y Strongly implement the transformation projects following their schedule

¥ Lmplement the transformation of Wholesale credit target operating model

¥ Shengthen the inspection and tonitoring activities,

Y Other businesses: Focus on building learning culture, self-training/study, apply the study/training result and examination for staffing; increase the number of training sessions and examination to upgrade staff's quality Speed up the construction and procurement of the Branch’s Office; implement the change of the Bank’s brand recognition Implement social security activities, giving priority to education, healthcare and disaster mitigation Haman Resource Committee advised the BOD policies regarding hunah resources, salary remmneration, bonus and other well fare/ Yemuperation poticies of the Bark

3.1.6 Introduction of Ngo đc Transaction Centre

Mr Nguyen Hoa Binh (2008), Chairman of the Roard of Directors of Victcombank said that “Although having otlicially functioned separately ftom the headquarter for almost three years, the Transaction Centre has proved to be the “big brother” in the VCB’s family Beside normal fictions as a branch with high market share in many fields in Hanoi, it is also the pioneer in policy implementation, naw service launch, as well as other special operations.” ‘'he ‘Transaction Centre is always the leading unit in

Vietcombank’s systern in mobitized capital seule and profits even in difficul time”,

In the centre, most of officers are female, atound at the age of 32 They are mainly working in accounting, administration, finding departments While, the male staff is

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usually in customer departments and responsible for developing the market and

ineres ing sales

Besides the training programs of the whole system, the centre also organized several training courses for its staff such as sales skills, communication skills, selling insurance skills, cle

The centre always takes carc of staff's health such as holding periodic health examinations for employees at large reputable hospitals, buying health insurance ‘tom PICO Insurance Every year, there are summer holidays or meetings for the whole stalt and their thmily to enhance their solidarity among bank officers In addition to fixed salary paid periodically, cash for overtime is paid in fall

3.2 Dimensions and attributes to analyze employee motivation at the

Card Services Busincss Department of Victcombank’s Ngo Quycn

Transaction Centre

Using Herzbetg'smetivation theory mentioned in chhpÌa 2, the model is analyzed

in details with the scale as bible

Strongly disagree Dishgkee | Agree Strongly Agree

Table 5 Measurement variables to analyze employee motivation at the Card Services

Business Department of VCB’s Ngo Quyen Transaction Centre

T Bank’s and administration

1 | The bark’s policies and rules are relevanl and clear cnangh for you

2 | The administrative procedures of the bank arc simple and Giendly snaugh

You feel acceptable with other policies such as sovial insurance, childcare,

3 | pealthcare and other extra activities

I | Quality of supervision

4 | Your supervisor provides you with regular constructive feedback,

5 | You feel acceptable with your supervisor's management style

6 Your supervisor commmmnicates your job performance expectations with you

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8 | Your supervisor is objective and fair enough

IH | Working conditions

9 | The bank has modem and safe working environment,

10 | ‘The bank has clear and Riendiy cultural framework and principle

11_| ‘The bank’s public reputation is good

12 | ‘The bank has suitable regime for working and relaxing time

13 | ‘The bank equips you with full and suitable facilities for your current work

IV | Salary

14_ | Your salary is suitable for your efforts,

15 | Your salary can ensure your current living standards

16 | Vou Geel satisfied with your curent salary

17 | Salary 4 paid filly and lmnoly :

The allbwance of the Tank is suitable amd gnoouraging for the working

8 environment: — Ï ,

19 | The bankaiways rays Ha flex gin for bonus givenat Te holidays, sfc

20 | The bankspohcy on salar salary i ‘bonis is equal dnd reasonable

2I | Your salary is Tia Renmai l ter banks,

¥ | Interpersonal relatos —,

22 | Youare supported by your co-workers when doing your work

23 | Your co-workers are always helpfil and cooperative

24 | You are recognized and respected by your co-workers for your achievements

pg | Employees at the department and the bank always share and communicate on a

friendly and hartmortious basis,

26 | Youcan well cooperate with your co-workers when working

You co-workers ure fidl of eapacily and responsible Io well meal working

2 requirements

28 | You are encouraged by your managers

29 | The manapars always recognize your achievements

qo | ou ate instructed and Girecfed emhusiastically by your managers daring working

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‘You feel satisfied with your managers’ leadership and management style,

32 | Your managers are excellent

VI Achievement

33 | You can earn some profit when you complete the whole or a part ofa job

34 | The bank gives you some bonus on raising ideas to solve problems

35 | You can achieve some reward when generaling money for the bank

36 | ‘The bank has its own official performance appraisal to recognize one’s work

Vo The work itself

37 | Your omrent work makes you proud and respected by the society

38 | Your current work requires you lo use a large amount of professional expertise

39 Your current work affects other mdividuals* works in the organization

40 | Your current work is challenging and interesting

AL | Your eurent work requires you lo be always inmovative

42 | Your eiire work fis you with the (ecling of eoruptotion aid su

Your " work toakes positive conlributiati ig the gencral sales objectives of

# the OrganizaHÐn ¡ 1 al ;

VI | Advancement Tl L |

4 ‘You believe that your work brings you a let of ‘promotion and development

opportunities for yor fume cafe ,

js | Yor ate able to be tpeogrized-ami-gjyen pramotion based on your capacity,

scmorily and achievernciis in work

The bank always promotes the right person for the right duty and the right

* position

47 | The bank has clear promotion and development policy

" ‘You are equally treated in promotion opportunities as compared to other

colleagues at the same working seniority and training qualification

1X | Growth

‘You are supported with favorable conditions to improve your qualification lo he

» able to meet curent work requirements

50 | Yoware funded to attend necessary training courses for your work

1 work that cannot be organized by the bank ‘You afe oriented to aftend the programs to improve your knowledge for your

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3.3.1 Respondents’ profile by years of experience

Most of employees of at the Card Services Business (CSB) Department of

Vietcombank’s Ngo Quyen Transaction Centre have good quality,

The CSB Department has 27.77% of employees with more than 5 year experience

(equal to 20 employees) and they are experienced to manage the tasks and lead the team 58.33% of employees have from 2 ~ 5 year experience (42 employees) and

13.88% of them have less than 2 year experience (10 employees)

At the CSB Department, the employees seem demotivated and get poor performance Therefore, to assess and improve motivation for employees at this

department become critical factors to ensure the development of Vietcombank

3.3.2 Respondents’ profile by age

It can be seen that employees at around 26-31 years old account for the highest proportion at the department, 44 employees (61.11%) Employees at 23-26 years old are

15 (20.83%) Most of employees are so young, hence, they may be smart and willing to deliver the best service quality to its customers However, if they are dissatisfied with their job or demotivate, the effect of department will decrease

Table 6 Respondents’ profile by age

Source: Surveyed by Researcher

3.3.3 Respondents’ profile by gender

As the below diagram, it can be seen that the gender rate is unequal: female rate

(65.27% equal to 47 employees) and male rate (34.72% equal to 25 employees) Due to

the characteristics of service field, male employees mainly are salesmen and team

leaders, while female employees are specialized in contacting and working with customers, so they sit at the department all day

mals female