Solution for low employee engagement in military joint stock bank survey at ho chi minh city branch

Justify the importance of the chosen problem: Low engagement has an important influence on performance of employee as well as the productivity of organization.. Throughout a process of i

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UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

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HUYNH MINH TRANG

ENGAGEMENT IN MILITARY JOINT- STOCK BANK – SURVEY AT HO CHI MINH CITY BRANCH

MASTER OF BUSINESS ADMINISTRATION

Ho Chi Minh City – Year 2016

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UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

-

HUYNH MINH TRANG

SOLUTION FOR LOW EMPLOYEE

ENGAGEMENT IN MILITARY JOINT- STOCK BANK – SURVEY AT HO CHI MINH CITY BRANCH

ID: 22130080

SUPERVISOR: DR NGUYEN PHONG NGUYEN

Ho Chi Minh City – Year 2016

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TABLE OF CONTENTS

EXECUTIVE SUMMARY 6

CHAPTER 1: PROBLEM DEFINITION 7

1.1 Background of problem 7

1.2 Problem and situation analysis 12

1 2.1 Problem definition: 12

1.2.2 Justify the existence: 13

1.2.3 Justify the importance of the chosen problem: 15

Job performance: 15

Job satisfaction: 16

High intention turnover: 17

CHAPTER 2: CAUSE VALIDATION 18

2.1 Potential causes: 18

Job characteristic 19

Supervisory relations/support 19

Co-worker relations 20

Perceived organizational support: 20

Training and career development: 20

Reward and recognition: 21

Distributive and procedural justice: 21

2.2 Causes justification 24

Supervisor support: 26

Training and career development 27

Rewarding and recognition: 27

Distributive and procedure justice: 28

CHAPTER 3: SOLUTION 30

3.1 Potential alternative solution and solution analysis: 30

Reward and recognition 30

Supervisor relation and support: 32

Training and career development: 33

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Distributive and procedure justice: 34

3.2 Comparison and analysis possible solution: 35

3.3 Action plan 36

3.4 Testing design requirement 38

CHAPTER 4: CONCLUSION 39

CHAPTER 5: SUPPORTING INFORMATION 40

5.1 Scale items and questionnaires: 40

5.2 Survey of level of employee engagement results 46

5.3 List of participation interview and representative transcription 46

5.3.1 List of participants 46

5.3.2 Representative transcription 47

LIST OF REFERENCES 65

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LIST OF FIGURE

Figure 1.1: Problem mess at MB 10

Figure 2.1: Initial cause-effect-map 24

LIST OF TABLES Table 2.1: Potential cause and scale items 22

Table 3.2: Summarize causes and solution 35

Table 3.3: Action plan 37

Table 3.4: Design requirement 38

Table 5.2: Level of employee engagement result 46

Table 5.3: List of participants 46

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SOLUTION FOR LOW EMPLOYEE ENGAGEMENT IN MILITARY JOINT-

STOCK BANK – SURVEY AT HO CHI MINH CITY BRANCH

of MB comes from this area This study bases on the survey doing at Ho Chi Minh City branch

According to the report of MB Board Director, be attention of the high intention turnover, the decreasing of productivity, decreasing the loyalty of traditional customer and difficult for getting new customers are considered as the target of sustainable development Among these issues, the most important target of MB is maintaining and finding good financial customers The research of Ho Chi Minh City branch corporation office reveals that the number of corporate customer in 2014 is 218 customers and in the first three month of 2015 are 176 customers It indicates that the number of corporate customer decrease 19.2% and tend to decrease in the next period The report also indicates that the level of traditional

Besides that, following the financial crisis, there were fluctuations in domestic and international economies, the real estate and securities’ markets are quiet which impact on banking According to the message of Mr Le Huu Duc, the chairperson of the board of directors, the credit growth is low while the bad debt ratio increased sharply as a the result

of the weakening of corporate customers Bank profit decline significantly and weak banks have to be merged In addition, the increasing of loan interest rate and the difficulty of capital mobilization are cause the decreasing in bank profitability With the economic situation, it is not only hard for getting good customers, but helping them to maintain their business in a good mood is also a difficult responsibility

The final problem relates to human resource: low employee engagement Employee is the principal resource of an organization; it helps organization achieves high outcomes and gets

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company goals Employee engagement refers to the interaction between employee and organization Through the interviews with employees and managers, some managers shared that they were complained about working attitude of their employees, employees seem not interested much in their job Employees are easily distracted when working and have low engagement with the organization This issue leads to the low performance of employee Moreover, many employees said that the reward and recognition were not as they expected they felt no enthusiasm for working and have low absorbed in work performance As Ms Thuy states that, these emotions relate to the low engagement, which is the reason of low productivity of employee and low performance Because of the low performance, it is difficult for bank to keep customer’s loyalty

Through the intake and orientation with MB, a problem mess can be drawn to describe the present situation.

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To summarize, in the recent years, MB is facing with three main problems: the low

engagement of employee, the high competition and the difficulty of the economy While

high competition and difficulty of economy are the external problem that the entire banking

industry has to deal with, the low engagement is internal issue The level of engagement is

difference for every bank base on the bank resource and characteristic According to Mr Le

Cong, the general director of MB has stated that, in future, MB will concentrate on human

Loan

interest rate

increase

Difficulty for capital mobilization

Financial crisis

Bad debt ratio increase

Credit

growth is

low

Hard for getting and keeping good customer

High competition

High quality of service

Diversify products

Do not have clearly career development

Unfair of decision making procedure

Figure 1.1: Problem mess at MB

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resource Focusing on Human Resource enhancement that is attached to “training, planning, assessment, rewarding and cultural environment of MB has resulted in high productivity and quality of the employee” It is MB strategy for the next future It is easy to attract employee to participate in the organization but it is difficult to maintain employee working attitude and engagement Making a strong engagement of employee for retaining the sustainable organization for customer is one of the targets of MB Employee’s productivity and quality are considered as an important key for the success of the organization

In the annual report 2014 of the chairman of the board of director, it was emphasized that:

“MB continued to it restructure comprehensively and make many breakthroughs with investments in information technology, and develop many services and products with high-tech content, concentrate on developing MB brand that is community-oriented”, by that, creating high competition ability for MB

With the difficulty of economy problem, MB will combine the collective strength; create momentum for the new period of development Continuing to maintain restructuring and sustainable development is also a necessary step in this current difficulty situation

With the limit of time, organization budget and due to the main strategy of MB, which focuses on enhancing the quality and employee productivity in the present period, this study chooses employee, engagement is the central problem to be solved for improving the productivity and quality of employee at MB

on customer-satisfaction rating scale (Vance, 2006) which will increase the loyalty of customers In addition, employees who have high engagement with their work are more focus on organizational outcomes

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1.2.2 Justify the existence:

For measuring the level of engagement, interview and questionnaire method are used Employees and managers shared their opinions and emotions about their work through the interview questions Furthermore, there are also many interviews with customers, who have been cooperated with MB for many years In the survey, questionnaires are sent out for employees at four banks in the top five for comparing the level of engagement Vietcombank, BIDV, Sacombank and MB are the chosen bank for this survey The reasons for comparing MB with Vietcombank, BIDV and Sacombank are that all of these banks have the similar target which is becoming the biggest and the most profitable in Vietnamese banking industry The total asset, profit, or number of employee at these banks is similar with each other Moreover, all of three above bank are considered as the main competitor of

MB Employees are chosen from different departments and positions of the branch in the scope of District 11, Ho Chi Minh City All the answers are kept secretly, the survey papers are kept anonymous and only used for research purpose Questions relate to the scale item base on the questionnaire established by W B Schaufeli et al (2002) for measuring the level of vigor, dedication, and absorption, which are the characteristic of engagement Questionnaires are made up of 17 items, including six items of vigor scale, 5 items of dedication scale and 6 items of absorption scale All items were scored on the 7 point rating scale ranging from 1 (not agree) to 7 (totally agree) Detail of the questionnaire can be seen

at chapter 5: Supporting information, section 5.1: Scale items and Questionnaires 120 survey papers are sent out for employee at different departments of 4 branches in the chosen bank The number of respondent paper is 94 The average age of employee at banks is 30

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with 88.7% having bachelor degree With the Mean is 3.5, the level of engagement at each bank is 5.5, 4.2, 3.9, 3.3 respectively The level of employee engagement at MB is 3.3, which is the lowest rate among four banks (See table 5.1: Level of employee engagement result for more detail) Employee usually distracted when performing work, and they do not exert all their energy for working and usually avoid working overtime

Besides questionnaire, personal interview is also a good method for employee to share their feeling and emotion about job and the organizational engagement Mr Son, a relationship manager, shared that his working day starts at 7 am by listening many customer phone calls, transferring from Customer Company to the bank and other departments several times for getting documents, signing, and asking for supervisor’s opinion In addition, the policy is not stable; it is difficult for both of employee and customer to follow with the change of bank policies He is not satisfied with his current job and wants to change it when getting a good one

Ms Thuy, a supporting officer said that: “I have to work 12 hours a day! I cannot suffer for this job anymore I do not want to participate in any activity of the bank and do not have enthusiasm for work I am tired because of worrying about customer loans or non-performance loan rate” High workload is also one of the reasons that make her feel exhausted “In addition, the reward and recognition are not interesting; I have been working

5 years however, my salary is as same as the new comers” said by Ms Thuy

Another sharing is from Ms Thu, a teller at MB, “It has changed too much since I have been here four years ago The requirement for my work is higher We have to work overtime to

1.2.3 Justify the importance of the chosen problem:

Low engagement has an important influence on performance of employee as well as the productivity of organization Throughout a process of interview employee and literature review, unless the low employee engagement is enhanced, the organization will face with three big consequences as the low job performance, low employee satisfaction and high intention turnover rate which impact directly on the organization profitability and employee productivity More detail for the deep interviews can be seen at chapter 5: Supporting information, section 5.3.2: Representative transcription

Job performance:

From the result of small interviews, it is seen that, the quality of commitment and productivity at MB have declined strongly Job performance is defined as the aggregated value that employee concentrate both directly and indirectly on organization goals (Borman

& Motowidlo, 1993) According to Anitha (2014, p 313), “Employee performance indicates the financial or non-financial outcome of employee” These outcomes link directly to the

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organizational performance and its success The study also demonstrates the strong significant relationship between engagement and performance The low level of engagement will lead to the reducing of employee performance As a commercial bank, focusing on maintaining and enhancing service quality is the leading strategy for MB five-years planning Thus, to accomplish high organization performance, all employees need to concentrate on the central strategy: increasing and retaining quality of service and productivity as high level Nonetheless, in the interview, most of customers comment that, it

is time for the bank to review its activities and structure Increasing quality of service is also necessary action There are many reasons for the downturn of productivity; however, the central problem that the bank has to deal with can be related to the low level of engagement Many customers explained the reason they did not transfer all their company transactions to

MB is the depression of commitment quality Mr Huy, a chief accountant of Hao Hung Company Limited said that “Time to complete a transaction at MB is getting longer with more paperwork to do than in the past Moreover, there are many mistakes on bank document” One of the main criteria for choosing as the best Retail Bank, which is given by the Global Financial Market Review (GFM), is the service quality and productivity To accomplish the strategy as top retailing Bank, it is necessary to enhance quality of service and productivity by increasing employee engagement

Job satisfaction:

As Locke and Dunnette (1976) stated that job satisfaction is the positive emotion when people appraise their job or job experience Zhu (2012, p 294) summarized that “job

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satisfaction is about whether the job stimulates employee’s pleasant emotions and positive feeling” It measures the feeling and emotion of employee in working The positive feeling relates to the high job satisfaction According to a study of Saks (2006), Job engagement predict job satisfaction Employee who has greater level of engagement in work is more likely to have higher job satisfaction In contrast, low level of engagement can reduce the satisfaction of employee Due to the low level of job satisfaction, employee feels distracted easily from work or has negative feeling about his or her future For this reason, the productivity drop rapidly With the low productivity of employee, the organization’s profitability will decrease quickly

High intention turnover:

The results from B Shuck and Wollard (2010) reveal that the lower level of engagement is more likely to report the higher level of intention to turnover Intention turnover is the consider of an individual about the probability that they will quit their job in the near future said by Carmeli and Weisberg (2006) In the interview, Ms Thuy said that if she had opportunity to find another job, she would quit the current job even if she had higher salary

Mr Son also has the similar answer when sharing about his plan There are six out of nine employees said that they would move to another bank if they have change The loyalty of employee at MB is at the alarm level Based on the data of the human-resource department

of Ho Chi Minh City branch, the turnover rate of the relationship office in the first three months is 21.05% in the comparison with the level of changing job of banking industry which is around 15% based on a Towers Watson survey of Human resource 2015 and

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intends to continue rising With the high rate of turnover, there is unstable of resource at

MB Increasing cost of recruiting new employee and training new staff is reducing organization profit

In summary, it is proposed that low employee engagement is consequence of three major organization outcomes: low organization performance, low job satisfaction, and high intention turnover Continuing to develop stability, increasing quality of commitment for the purposed of keeping good customers is the general target of the bank’s strategy To accomplish these goals, employee engagement is an important factor that needs to be considered carefully The lower employee engagement, the lower performance and job satisfaction organization will be faced Moreover, intention turnover getting higher is another issue of low engagement; it affects the organization profit The interview shows that

MB employee engagement decreases steadily in the recent year is the main reason that affects bank outcome and employee performance Therefore, to enhance the bank outcome and productivity as well as completed the organizational strategy, it is necessary to increase the level of engagement

CHAPTER 2: CAUSE VALIDATION

2.1 Potential causes:

If it is important to figure out the consequences of low employee engagement at MB and the reason for solving that problem, clarifying the causes of the problem is also a necessary and urgent step After examining many relevant literatures on engagement, the potential antecedents that are believed to provide the most understanding are supervisor relation, co-

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worker relation, perceived organizational support, training & career development, reward & recognition and distributive & procedure justice All of these findings are built base on the foundation and engagement models of Saks (2006), W Schaufeli and Salanova (2007), B Shuck and Wollard (2010), Anitha (2014), C Maslach et al (2001)

Job characteristic

When employees do work that is challenging, creative and clearly delineated, they are likely

to experience psychological meaningfulness (Kahn, 1990) Job characteristic provides employees with the room and incentive to bring themselves into work or to be more engaged (Kahn, 1990) Each job characteristic requires different skills, personal discretion, and the opportunity Depending on job characteristic, employees find themselves as inspired for working with all their enthusiasm and engagement

Supervisory relations/support

A study of Kahn (1990) found that supervisory relation was the relationship between employees with their directly manager It may have a dramatic impact on the individual’s perceptions of safety in working environment Supportive actions by manager can enhance employee self-determination and interest in their work These individuals are likely to feel safer to engage themselves in their work The higher-quality relationship with manager, the more positive attitude, behaviour, and engaged employee has (Saks, 2006) There will be a flexible environment where employee is encouraged to try and maybe to fail without fearing the outcomes It would be better to allow employees voice their opinion for enhancing their work (Kahn, 1990)

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Co-worker relations

The study of W B Schaufeli et al (2002) provides that the support from co-worker will heighten the engagement of employee People do not feel safety when they are disconnected from others (Kahn, 1990) and interaction between employees which is supportive and trusting will also help employees feel safer thus engaged themselves higher in their work Edmondson (1999) found that the quality of relationship in work impact on employee’s shared beliefs and support each other

Perceived organizational support:

Perceived organizational support can be defined as an individual’s organization values their contribution and cares about their well-being (Rhoades & Eisenberger, 2002) A study of Saks (2006, p.605) indicates that “Organizational members feel safe in work environment that is characterized by openness and supportiveness” and “perceived organization support predicts both job and organizational engagement” Other Findings of B Shuck and Wollard (2010) recommend that managers should create a possible workplace environment, safe, meaningful and empowering for employee In addition, a finding from B Shuck and Wollard (2010) suggests that it is necessary to offer a supporting and favourable workplace climate that is positive, empowering, safe and meaningful for employee

Training and career development:

Aguinis and Kraiger (2009) believe that training in work organization is suitable for making

a contribution to enhance human well-being and performance in organization as well as society Another finding of Anitha (2014) shows that training and career development are

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considered as a process of engaging employee since it helps employees concentrate on their work Therefore, with a good training and career development, it will have to improve automatically the level of engagement in employees

Reward and recognition:

A study of Christina Maslach, Schaufeli, and Leiter (2001) suggested that lacking of rewards and recognition could lead to burn out, one of the consequences of low engagement Another finding of Kahn (1990) also reports that people are different in their engagement as the perceptions of the benefit they receive from their role performance Therefore, it is expected that employees are more likely to engage themselves at work whenever they can receive a greater amount of reward and recognition for their work

Distributive and procedural justice:

From the study of Thibaut and Walker (1975), procedural justice is considered as the decision enhances fairness judgments of the decision-making procedure It refers to the perceived fairness of means and processes used to determine the amount and distribution of resources Distributive justice is individual’s perception of decision outcome fairness (Colquitt, 2001) The result of a study of Saks (2006) clarifies that employees have high impact on justice in their organization Employee usually has high level of engagement due

to the high perception of fairness relates to the justice in organization

Potential causes of low employee engagement can be summarized as the table below:

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Table 2.1: Potential cause and scale items

(Sims, Szilagyi, & Keller, 1976)

+

Managers Employees

Kahn (1990)

Saks (2006)

Supervisory relations/

support

the relation with one’s directly manager and their support

Information support, Appraisal support, Outside-of-work support

(Rusbasan, 2010)

+

Managers Employees

between employees and their co- workers

Caring, friendly, warm relation, empathy, cooperation, no back

appreciation, respect and support

employees’

organization values their contribution and cares about their well-being

Pay, rank, job enrichment, treatment, reaction of organization to employee’s future illness, mistake, praise and approval (p2)

(Eisenberger, Fasolo, & LaMastro, 1990)

(Danish & Usman, 2010)

+

Employees

procedural justice

enhances fairness judgments of the decision-making procedure

Distributive justice:

The fairness of rewarding employee effort, responsibility, job done well or the education taken into job

Procedural justice:

Frequency of evaluation, supervisor’s knowledge of subordinate’s performance, trust

(Tang & Sarsfield-Baldwin, 1996)

+

Managers Employees

Base on the consequences and potential causes of low engagement at MB, the initial and- effect map

Reward and recognition

Mone, Eisinger, Guggenheim,

Price, and Stine (2011)

Saks (2006)

Perceived organization support

Rhoades and Eisenberger (2002)

Anitha (2014); Saks (2006)

B Shuck and Wollard (2010)

Training and career

development

Aguinis and Kraiger (2009)

Low Employee engagement

High intention turnover

(M B Shuck, Rocco, & Albornoz, 2011)

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3 managers in different departments, who understand clearly the problem as well as the working process and environment at MB Employees and managers are chosen from the supporting office and the sale department, which are considered that having the direct impact on the loyalty of customers The list of participation for interview and interview detail can be seen at chapter 5: Supporting information, section 5.3: List of participation and representative transcription

It can be demonstrated that all these potential causes that mentioned in section 2.1: Potential causes have effect on employee engagement in different level However, as the result of interviews, job characteristic, perceived organizational support, and co-worker relation have weak influence on the engagement of MB staff Ms Quynh share that she has already known she has to work very hard when choosing supporting officer in bank as her job When choosing for working at a bank, employees usually prepare their minds for working hard, dealing with a same problem at same day and usually work overtime Therefore, the level of job characteristic impact on engagement is low

The level of the perceived organizational support also influences engagement Nonetheless, the organization supports employees through its direct supervisor When staff has any requests, first, they have to be accepted by supervisor Supervisor is a connection between employee and the organization Due to this relation, supporting of supervisors can be related

as the supporting of organization

In this society, relation between employee and employee take a heavy side From the interview with employee, the relation between staff at MB is very good, employee helps

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each other in work, and seniors share their experience with the new employees There is also good relationship between employees at different departments Although, the argument between different departments usually happens since the contrasting point of view, however, they always try to figure out the solution that satisfied both of two sides Everyone works in

a harmony atmosphere, which is helping and caring to each other, thus the co- worker relation of MB staff is considered as a good relationship Therefore, the co-worker relation does not influence the engagement The four other causes: supervisor support, training, and career development, reward and recognition, distributive and procedure justice have stronger influence on employee engagement at MB

Supervisor support:

In the interview with almost employees and managers, supervisor support is considered as a strong factor that impact on engagement of MB staff Ms Quynh, a relationship manager said that supervisors are under pressure from many sides such as: pressure from the bank for keeping customers, completing transactions quickly with the high accurately Therefore, they do not give enough support for their employees “Supervisors are too busy to notice their employee’s aspiration or desire”, said by Ms Quynh

The sharing from employees reveals that lacking of social relationship has existed between supervisor and employee All they have is the work connection, so employees are easy to get boring or tired which will lead to the decreasing of engagement Furthermore, Ms Hang,

a supporting officer, shares that, supervisor’s emotion has strong effect on works When supervisors are in good mood, every mistake can be forgiven easily In contrast, everything

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have problem when they are in bad mood Because of the inconsistency in making decision,

it is hard for employee to work and complete a transaction With the same opinion, Mr Sang, a sale officer also said that his supervisor would become understanding and supporting person if she spends more time to listen for listening to her employees

Training and career development

Employees usually work under high pressure and work overtime for getting their job done,

so that, all the training classes are opened on Saturday or Sunday Almost all employees in the interview share that they are not interested much on these classes They feel terrible when they have to take extra classes on the day off There are also programs that do not relate to their work Because of these problems, the quality of training at MB is not high as

it has to In addition, no clearly future orientation is also a factor that has the most influence

on engagement level, especially with the supporting officer “No target” is one of the claims that Ms Hang said It is no clear target for employees to strive, “We just go to the bank, work and then come back home, no enthusiastic, no target” There is also no promising for a pay raise or a promotion for doing a good job According to the result of the interview, it can be indicated that with the supporting officer, career developing is an ambiguous concept The situation seems to be better for the sale employee or other positions

Rewarding and recognition:

According to Ms Thuy, a supervisor of supporting officer, the important cause that impact

on her engagement is the lacking of rewarding and recognition She shares that, the rewarding policy at MB is not good for a supporting officer For example, a successful

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transaction at MB is the consequence of a whole process including the work of both supporting officer and sale employee; however, sale employee is considered as the main role for the success of a transaction Supporting officer role in a transaction is not appreciated “I think there is lacking of recognition and rewarding for employees at the back office position as supporting officer They work very hard but the recognition is not good,

as it should This is one of the reasons impact on the level of high turnover on supporting office” She also shared that, the number of turnover in the recent year at the supporting office is higher than in the past, from 15% in 2014 to 17% in 2015 With other positions,

MB does not have enough compensation programs for encouraging employee performance

Mr Son says that, with the sales officer, the reward were too high to get Each year, there is only two or three competition program for employee to compete to each other as well as to show their abilities However, the reward is too hard to get The program does not encourage employees but it makes them feel depressed and stressed Moreover, the current payment is not separated by level; every employee at the same position has the same salary

A new employee has the same salary with the current ones who have been working for four

or five year This payment creates the unpleasant emotion among the employees since they have been devoted for the organization a lot but they receive the same recognition with the new comers

Distributive and procedure justice:

From the individual conversation with managers, it seems to have problem with the distributive and procedure justice, which needs to enhance fairness judgments of decision-

us what happen in their meeting” Ms Quynh tells that “We can do right things all time, but

if some day, we accidentally have a mistake, that your failure and the supervisors will keep their eyes on you anytime” In addition, as opinions of almost all employees the evaluation depends too much on supervisor feeling, when they like someone; it seems to have a little partial Moreover, in an organization that takes the relationship with others seriously, there

is also some bias toward person who has good relationship with employees at other positions

Due to the limit of time and budget as well as the urgency of the problem, the study concentrates only on the important causes that have high impact on engagement of employee From the result of the interview, employee engagement is influenced the most by the supervisor support, training, and career development, reward and recognition, distributive and procedure justice More details of interview can be seen at chapter 5: Supporting information, section 5.3: List of participation and representative transcription Since there are important reasons that are listed above, supervisor support, training and

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career development, reward and recognition, distributive and procedure justice are considered as the factors that influence on the engagement of employee the most Among four important causes that is listed above, in the urgency situation, this study choose the main cause that is need to solved immediately is the reward and recognition for increasing the engagement of employee quickly

CHAPTER 3: SOLUTION

3.1 Potential alternative solution and solution analysis:

Reward and recognition

Organization may consider to “provide employees with resources and benefit” (Rana, Ardichvili, & Tkachenko, 2014, p.263) When employee gets benefit from organization, they are willing to give back to the bank easily Therefore, it is more likely to have higher level of engagement Vance (2006, p.14) also reveals that “compensation can powerfully influence employee engagement” An organization that has a well-designed compensation plan will have a competitive advantage in comparison with others (Vance, 2006) According

to Kerr and Slocum (1987), there are two types of compensating employee, performance reward, which is evaluation and giving feedback The second type is reward by using bonus, salary increase, promotion, or stock award Each organization has its own reward and recognition system In current situation of MB, employee does not engage much to organization because they think their reward is not enough for what they deserve; it has been a long time for a pay raise Pay-for-performance directly influences employee’s productivity For this payment, staffs learn to trust that they are rewarded for their good

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performance Ms Thao, a manager of Tan Huong subsidiary recommends that, bank needs

to add more bonus programs to promote employee Sales officer are grouped in team Each team is responsible for a specific piece of work Every employee in a team will work together for finding and maintaining their customer After a period, the team with the highest growth index on customer and loans will have the bonus This program can create the ability to work in team of employee They can share experience and help each other to solve their team problem Besides bonus, the bank can increase the engagement of employee by a good compensation policy Based on employee productivity and performance, organization can establish the compensation system that reward for employees who have highest productivity in a month is an example for this compensation Another form of reward is salary increasing, increasing salary is a big issue that is need to consider carefully According to the interview with Ms Thuy, one opinion that she suggests for increasing engagement of employee especially senior staff is rank salary Employee at the same position but receives a different salary The rank of each employee is based on his or her performance and productivity The evaluation for ranking can establish each year to valuate employee by their performance By dividing employee into rank, each rank will have different salary It will help to improve the performance in employee by that increasing their productivity Almost employees are motivated by financial reward, and they are more engaged with organization when they receive the incentive that deserves what they perform Another type to encourage workers to devote their energy to organization is recognition-based awards It helps to force full range of employee performance To create a recognition award, Mr Son suggests that each department should have a proclamation board to praise

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employee for their good performance In the end of every month or every quarter, employee who has the best performance will be honoured in front of staffs and receive a present to encourage for their hard working

Supervisor relation and support:

The practical implication of Saks (2006, p.614) recommends that “An important practical implication for managers is the need for them to understand the importance of social exchange for employee engagement” According to Griffin, Patterson, and West (2001, p.538), “Supervisors play an important role in structuring the work environment and providing information and feedback to employees” A supporting supervisor as a view of

Ms Thuy is a person who has a strong connection with his or her employee, willing to help subordinates all the problems relate to work, willing to listen to employee’s opinions and ideas A studty of Shanock and Eisenberger (2006) indicates that good treatment of supervisors, co-worker may have a favourable exchange relationships between employee and organization Increasing the relation between supervisor and employee is an important element that creates the cohesion of working place Staff and manager will have a strong connection with each other; by that, problems of employee will lead to problems of manager and the supporting of manager for employee will be increased strongly Establishing outdoor activities for relaxing, these activities also help staff, and supervisor get along with each other In addition, it is necessary for employee and manager to spend time to arrange the knowledge relates to work, manager can share their experiences and mistakes for

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employee Through theses time, the relationship of employee and supervisor will closer and learning more experience in their work

Training and career development:

One method to enhance the engagement of employee is changing and restructuring the training and development program According to Vance (2006), training and development is considered as the factor that enhancing engagement For new employee, updating the orientation, adding more organization information, which can can help to explain organization policy and procedure, describe how organization operates for new comers In addition, through the orientation, new employees can understand clearly about organization’s target and know how they can contribute their performance to achieve organization’s mission For current employee, maintaining training is necessary to review their knowledge relating to work Moreover, it also helps staff to enhance their skill to get high productivity in work However, in the present situation, there are many complaints on the quality of training, it takes too much time for training in a working day and employee usually neglect in class As Vance (2006) suggested that to get high benefit from training investments, organization should explore digital technology in training It is a good idea to establish digital classes that satisfying both the need of improving knowledge and convenience in time This study recommends creating online classes, using technology to offer self-spaced which employee can learn at home or learn on their free time These classes not only help to reduce the cost of training but also help employee to manage their time and enhance their knowledge In addition, thus every position have their own