Factors affecting work motivation of employees at operations division of fe credit finance limited company

This research on work motivation was conducted in 2017, with a sample size of 200 employees who are working at the Operations Division of Finance Limited Company FE CREDIT.. company, the

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Ho Chi Minh City, Aug 6th 2017

Author of project

Hong Van Anh

THANK-YOU

First, I would like to sincerely thank the teachers of Hutech and Open University Malaysia for teaching and imparting to me the precious knowledge that underlies the implementation of this project

Second, I would like to thank my instructor Dr Bui Phi Hung who has guided me through the writing process, taken the time to read and comment my drafts and shared his knowledge within the research field

Finally, I would like to thank all the interviewees for answering all my questions,

my dear colleagues for all the sound advices and my beloved family for always listening and supporting me

Many thanks to you all!

Table of Contents

Acknowledgements 3

Thank-you 4

List of charts 7

List of tables 8

Abstract 9

Charter 1 Introduction 10

1.1 Background 10

1.2 Problem statement 10

1.3 Purpose of the study 11

1.4 Contribution of the study 11

1.5 Objective and scope of the study 12

1.6 Research method 12

1.7 Limitations of the study 12

1.8 Dissertation structure overview 13

Charter 2 Literature review and general study 13

2.1 Definition of work motivation 13

2.2 Theory on work motivation 14

2.3 General study 22

2.4 Research model 26

2.5 Components and hypothesis 27

Charter 3 Company background and research methodology 29

3.1 FE CREDIT in brief 29

3.2 Research methodology 40

Charter 4 Research result and discussion 49

4.1 Sample descriptives 49

4.2 Cronbach’s Alpha coefficient analysis 51

4.3 EFA analysis 51

4.4 Regression analysis 55

4.5 Statistics descriptives 56

Charter 5 Conclusion and recommendation 59

5.1 Findings 59

5.2 Recommendations 60

5.3 Further research directions 65

References 66

Appendix 69

List of charts

Chart 2.1: Maslow’s hierarchy of needs 16

Chart 2.2: Herzberg two-factor theory 17

Chart 2.3: Alderfer’s ERG theory 19

Chart 2.4: McGregor’s theory X and theory Y 20

Chart 2.5: McClelland’s acquired needs 21

Chart 2.8: Proposed research model 27

Chart 3.1: Organizational structure of FE CREDIT 35

Chart 3.2: Business structure of FE CREDIT 36

Chart 3.3: Hierarchy of management 37

Chart 3.4: Organizational structure of Operations Division 39

Chart 3.5: Research process (source: the author) 40

List of tables

Table 2.6: Article or review published on motivation 24

Table 2.7: Motivation dimensions 26

Table 3.6: Scale and observational variables 45

Table 4.1: Survey structure 50

Table 4.2: KMO measure 52

Table 4.3: Rotated component matrix 54

Table 4.4: Model summary 55

Table 4.5: Regression 56

Table 4.6: Descriptive Statistics 57

Abstract

Research on motivation has attracted academic and corporate entities over the last two decades Motivation directly links to individual performance that gain to organization performance and as a catalyzer for all individual employees working for an organization to enhance their working performance or to complete task in much better way than they usually do This research on work motivation was conducted in 2017, with a sample size of 200 employees who are working at the Operations Division of Finance Limited Company FE CREDIT

The research model included seven independent variables: Base salary; Training and promotion; Relationship towards leaders; Relationship towards co-workers; Working conditions; Work itself; Benefits and reward

The study has identified seven factors that affect the work motivation of employees The study also found there are differences in perception and evaluation of factors affecting work motivation of different groups of employees

CHARTER 1 – INTRODUCTION

1.1 Background

The process of globalization and international economic integration has been happening fast and drastically and became the trend of development of the world economy In that context, economic development is one of the top strategies and people are an indispensable resource and play a very important role in that development

To increase human productivity in the organization, the work motivation is very important Any organization would like its employees to fulfill their work with high efficiency to contribute to the successful accomplishment of their goals However,

in the team there are always enthusiastic employees with high performance results but there are also ones who are working in sluggishness, lack of interest, indifference to work, even not fulfilling their assigned tasks which lead to low performance results The economists have pointed out the answer to that problem is the work motivation of every individual employee The motivation to work is considered as a strong lever which motivates the employees to work actively, thereby contribute to improve the efficiency of business production of the company

1.2 Problem statement

Nowadays, with the rapid development of consumer credit trends in Vietnam, the human resources of finance companies have rapidly increased in recent years However, the inspiration and motivation for these employees are not as good as the leaders’ expectation There is still a large majority of employees who are passive and have not achieved good results in their assigned work Especially, towards FE CREDIT, currently the market leader in finance industry, with the rapidly expanding human resources and the increasingly intense competition from competitors, pushing motivation for employees is more important than ever

Facing the situation of limitations in creating work motivations at FE CREDIT, especially FE CREDIT's Operations Division which is one of the key blocks of the

company, the “delay” mindset of employees hasn’t been improved while the quality

of work hasn’t been met, this research is conducted to find out the factors that affect the work motivation and how to encourage employees to feel motivated with their job at work Thereby, this research will suggest the Company how to maintain the work motivation of employees and develop these human resources

The questions that need to be solved in the research are:

1 What are the factors that affect the motivation of the employees in Operations Division of FE CREDIT?

2 What is the impact of each factor?

3 How to improve the motivation of employees when these factors are identified?

1.3 Purpose of the study

+ Identify the factors that significantly affect the motivation of employees at the

Operations Division of FE CREDIT Finance Limited Company

+ Quantify the impact of these factors on the motivation of employees at the Operations Division of FE CREDIT Finance Limited Company

+ Apply theory into assessing the company situation of work motivation and propose solutions to boost the motivation of employees at the Operations Division

of FE CREDIT Finance Limited Company

1.4 Contribution of the study

This research was carried out for the purposes of understanding and assessing the situation of work motivation among the employees at Operations Division - FE CREDIT Finance Limited Company, as well as identifying the factors that affects this motivation This research also provides FE CREDIT the insights of factors that bring the motivation to employees From there, they will have the appropriate orientation and policies in using labor in the most effective way in order to create

the expected labor output of the manager and associate employees with long-term dedication to the Company

1.5 Objective and scope of the study

- Place: at Operations Division of FE CREDIT Finance Limited Company

- Objective:

+ Research on work motivation factors only at head office of Operations Division

of FE CREDIT Finance Limited Company (do not research at representative office

+ Time frame of the survey: from May 2017 to June 2017

1.7 Limitations of the study

Firstly, due to limited research time, the author has not been able to carry out depth interviews after quantitative research to find out the "inside" information, the deeper nature of the research conclusions

in-Second, the empirical method of sampling, non-probability, may not fully evaluate the measurement error Consequently, the conclusions may have certain limitations

Third, the research is carried out in a short time so there is not much basis to evaluate changing trends in research

1.8 Dissertation structure overview

Besides the opening and the conclusion, this dissertation includes structure as

below:

Charter 1: Introduction

Charter 2: Literature review and general study

Charter 3: Company background and research method

Charter 4: Research results and discussion

Charter 5: Conclusion and recommendation

In general, Chapter 1 shows the introduction to the reason of research, research objectives, and scope of research and practical meaning of the research Follows is the Chapter 2 which will present the theoretical basis, the theoretical models have been studied before in order to suggest research models and model hypotheses

CHARTER 2 – LITERATURE REVIEW AND GENERAL STUDY

2.1 Definition of work motivation

Motivating employees seems like it should be easy And it is - in theory But while the concept of motivation may be straightforward, motivating employees in real-life situations is far more challenging In fact, there are many different perspectives on work motivation According to Maehr and Meyer, "Motivation is a word that is part

of the popular culture as few other psychological concepts are." Motivation is the reason for people's actions, desires, and needs Motivation is also one's direction to behavior, or what causes a person to want to repeat a behavior A motive is what prompts the person to act in a certain way, or at least develop an inclination for

specific behavior And work motivation "is a set of energetic forces that originate both within as well as beyond an individual's being, to initiate work-related behavior, and to determine its form, direction, intensity, and duration" according to Pinder, C.C (2008)

It is important for organizations to understand and to structure the work environment to encourage productive behaviors and discourage those that are unproductive given work motivation's role in influencing workplace behavior and performance

2.2 Theory on work motivation

The issue of motivation and reward to satisfy the need that help employees stick with the business for long term is a matter that attracts the attention of many executives as well as researchers So far, there have been a lot of research doctrines

on how to motivate employees

For example, the classic theory of motivation was stated by F.W Taylor (1915) that

in order to motivate the employees, the managers must find the best way to teach them work, and use economic incentives such as wages and bonuses to motivate them Abraham Maslow (1943) argued that managers have to understand the needs

of employees and find ways to satisfy those The needs are arranged from low to high, including: survival; security; belonging; importance and self-actualization

According to Douglas McGregor (1956), his human nature theory points out that up

to the nature of X (the people who are lazy at work and do not like to work ) or the nature of Y (the people who like to work and are self-conscious ) of employees to apply the encouraging measures While the theory of Maslow and McGregor was built on the basis of psychological theory, the theory of Herzberg (1976) was built

on the basis of practical knowledge of employees Besides, there are also many other modern theories of motivating employees such as the theory of expectancy, the theory of justice, etc

This research will study only on some typical motivational theories such as the Maslow ladder; Theory X, Y; Herzberg two-factor theory; ERG theory and McClelland theory Through these theories, managers can draw the appropriate incentives to achieve expected behavior among employees

2.2.1 Maslow ’s Hierarchy Of Needs (1943)

It can be said that Maslow's theory of human needs is the dominant theory in the theory of behavior

Abraham Maslow (1908-1970) - American psychologist believes that human beings have five needs in a hierarchy from low to high as follows:

- Physiological needs: eating, resting, sewing, sex (Survival)

- The need for safety: body, life, health, work, property (Security)

- Social needs: engagement, sharing, cooperation, club membership, party (Belonging)

- Recognization demand: remuneration, reward, promotion, reputation, award (Importance)

- The need for self-improvement: knowledge, skills, thinking, want to perfect, develop personality, creativity (Self Actualization)

Five needs are divided into two levels of high and low rank:

- High demand: internal impact, including self-assertion and self-esteem

- Low demand: external impact, social needs, safety needs and material needs

Chart 2.1: Maslow’s hierarchy of needs

Accordingly, low-level needs will normally be met prior to the emergence of higher-level needs However, sometimes, these needs may still arise out of sequence

People always have unmet needs, and these needs motivate them to act to satisfy them Organizations need to recognize the needs of human resources and skillfully use impact measures to make them enthusiastic and dedicated to their work

Humans are motivated to reach higher demands after low-level needs such as physiological needs and safety needs are met This was Maslow's call for increased satisfaction This theory draws one thing: managers who want to motivate anyone need to know what they are on the demand ladder and find ways to satisfy or exceed this demand

2.2.2 Herzberg's Two-Factor Theory (1959)

Frederick Herzberg, the American management theorist, divides motivational factors into two groups: the retention factor (external satisfaction) and the motivational factor (satisfying intrinsic nature)

Chart 2.2: Herzberg two-factor theory The first group (including wages, supervisory management and working conditions) only works to maintain normal working status When these factors are satisfied, sometimes employees consider it natural But without them, they will become

dissatisfied and performance will decrease

The second group (which includes success, promotion, development, challenges and accountability) are really motivating factors

Without the motivational elements, employees will express unhappiness, unhappiness and laziness This causes mental instability According to Herzberg,

instead of trying to improve retention factors, managers should increase motivational factors if motivated by motivation

He argues that a person's personal relationship to work is a fundamental and oriented attitude that can determine the success or failure of the individual According to this doctrine, internal factors related to job satisfaction and external factors lead to dissatisfaction

job-This theory helps managers to identify factors that cause dissatisfaction among employees and thereby seek to eliminate these factors For example, employees may be dissatisfied with their work because their wages are too low, superiors are over-supervised, and relationships with co-workers are not good So managers must find ways to improve salaries, reduce supervision, and build better co-workers However, when disgruntled factors are eliminated, it does not mean that employees will be satisfied If the company wants to motivate employees, make them happy at work, the manager needs to focus on factors such as success, perception, job itself, responsibility and development For example, employees will feel satisfied with their work when they are given the right job and their personality, have the opportunity to study and improve their professional skills

2.2.3 Alderfer's ERG Theory (1969)

This theory was proposed by the scholar of organizational behavior Clayton Alderfer to overcome the problems encountered in Maslow's theory He conducted

a review of Maslow's research He also said that human action is rooted in demand; there are three types of demand as follows:

1 Exists demand: including physiological needs and safety needs

2 Relationship demand: the need for interpersonal relationships, the need for social relationships

3 Development demand: the need for self-expression and self-esteem

Chart 2.3: Alderfer’s ERG theory

He argues that humans are at the same time pursuing all their needs, not just one, as Maslow said Moreover, when a need is hindered they will put their efforts to another need

Unlike Maslow's model, ERG theory refers to the process of regressing failure This process assumes that when we cannot satisfy the higher demand, we will return to lower demand levels As for Maslow, people are still at the level of desire and seeking ways to satisfy this need ERG theory is actually used by managers in the form of employee salaries This means that wages will increase according to the number of employees' skills acquired or the number of jobs completed This form encourages employees to study, improve their skills and develop their career

2.2.4 Douglas McGregor's X-Y Theory

Douglas McGregor gives two contradictory views about humans:

- Theory X assumes that employees do not like to work, lazy, do not like to be responsible and must be forced to do the job

- Theory Y assumes that employees love to work, be creative, responsible and able

to work on their own

Chart 2.4: McGregor’s theory X and theory Y

What can be applied from this doctrine? To answer the question, we need to use Maslow's demand ladder theory The doctrine of X speaks of individuals who are at

a lower level of demand, while the hypothetical doctrine of personal preference is in high demand McGregor believes that the Y theory is more effective than the X theory Thus, he offers the same ideas for employees involved in decision making, designing responsible and challenging jobs, building a good teamwork relationship that motivates employees to the maximum

2.2.5 McClelland Achievement Theory (1988)

This theory focuses on three needs: achievement, power and affiliation

Demand for achievement: A person with a performance need is eager to accomplish challenging goals with his or her own effort, to succeed in the competition, and to receive feedback about the results of their work in a clear way

Demand for power: people with the desire for power want to influence, influence and control resources, and control people if they are beneficial to them

Demand for affiliation: Desire to have a close and friendly relationship with the people around, make people try for friendship, like cooperation rather than competition, the desire to build relationships based on the spirit of mutual understanding

Chart 2.5: McClelland’s acquired needs

Applied in practice, one can realize that individuals with high achievement needs will succeed in corporate operations But having high achievement needs does not necessarily become a good manager, especially in large organizations Since they

are only interested to personally make good without affecting others so they also work well Meanwhile, the need for power and coalition is closely related to management success Managers work best when there is demand for high power and low coalition demands

Another conclusion drawn from this theory is that the need for achievement can be encouraged through training Therefore, organizations can organize training programs to promote the strength of these needs For example, employees may be trained in ways to think for high performance at work, know how to win, know how

to respond to situations Training programs of this type are usually for employees They are doing jobs that require the development of high achievement requirements such as sales In fact, theories X, Y; The two-factor theory; McClelland’s theory of demand is also used by managers in employee involvement programs This program aims to make the most of the employees' capabilities and encourage them to stick with the organization for a long time In particular, let them participate in the management process of the organization, appoint their representatives to join the decision-making group in the company or participate in the process of quality management, share the employees For theory X, Y, this program emphasizes that employees are interested in working, responsible and self-directed, thus requiring them to be involved in the management process For the two-factor theory, the involvement of employees in management and decision-making is an internal motivational factor that helps them develop, feels responsible At the same time, this program also aims to satisfy the needs of employees such as performance needs, respect, recognition and development

2.3 General study on work motivation

Panagiotakopoulos (2013) concluded that factors affecting staff motivation at a period where the financial rewards are kept to the least leads to stimulate employee performance So, management personnel’s responsibility to motivate their employees to work as per the expectation to enhance the organization’s

performance Similarly Dysvik and Kuvaas (2010) concluded that intrinsic motivation was the strongest predictor of turnover intention and relationship between mastery-approach goals and turnover intention was only positive for employees, low in intrinsic motivation The only thing organization needs to do is

to give employees with ample resources and platform to do

As per Kuo (2013) a successful organization must combine the strengths and motivations of internal employees and respond to external changes and demands promptly to show the organization’s value Barney and Steven Elias (2010) found that with extrinsic motivation there exist a significant interaction between job stress, flex time, and country of residence Leaders know that at the heart of every productive and successful business lies a thriving organizational culture and hardworking people collaborate passionately to produce great results (Gignac and Palmer 2011)

Likewise, Malina and Selto (2001) conducted a case study in one corporate setting

by using balance score card (BSC) method and found out that organizational outcomes would be greater if employees are provided with positive motivation Aguinis et al (2013) stated that monetary rewards can be a very powerful determinant of employee motivation and achievement which, in turn, can advance

to important returns in terms of firm-level performance Garg and Rastogi (2006) identified the key issues of job design research and practice to motivate employees’ performance and concluded that a dynamic managerial learning framework is required to enhance employees’ performance to meet global challenges

Vuori and Okkonen (2012) stated that motivation helps to share knowledge through

an intra-organizational social media platform which can help the organization to reach its goals and objectives

As summarized by Park (2010), monetary incentive acts as a stimulus for greater action and inculcates zeal and enthusiasm toward work; it helps an employee in recognition of achievement Likewise, Beretti et al (2013) discussed that monetary

incentives used to build a positive environment and maintain a job interest, which is consistent among the employee and offer a spur or zeal in the employees for better performance

Year No of article or review

published on motivation

% increase in publication

A Current year and

it’s still continuing

publication

Table 2.6: Article or review published on motivation

Sl no Dimension Author(s) No of

citation

Panagiotakopoulos (2013); Williams (2013); Lazazzara and Bombelli (2011); Gegenfurtner et al (2009);

Gegenfurtner et al (2009); Noe (2009);

Rowold (2007); Bell and Ford (2007);

Klein et al (2006); Tai (2006);

Chiaburu and Tekleab (2005);

Kontoghiorghes (2004); Tsai and Tai (2003); Tharenou (2001); Kirkpatrick (2000);Colquitt et al.(2000); Seyler et

al (1998); Kirkpatrick (1996); Facteau

et al.(1995); Cannon-Bowers et al

(1995); Whitehill and McDonald (1993); Clark et al (1993); Mathieu et

al (1992); Baldwin et al (1991)

al (2013); Szczepanowski et al (2013);

Schultz and Brabender (2013);

Pouliakas (2010); Feldman and Lobel (2010); Park (2010); Jain et al (2007);

Rose et al (2007); Zhang and Wu (2004); Linder (1998); Leung et al

(1996); Nelson (1996); Rowley (1996a, b); Kovach (1995)

16

3 Job transfer Azizi and Liang (2013); Swift and

Hwang (2013); Asensio-Cuesta et al

(2012); Casad (2012); Datta and Eriksson (2012); Eguchi (2004); Zhang and Wu (2004); Cosgel and Miceli (1999); Cheng and Brown (1998);

Ichniowski et al (1997)

10

4 Job satisfaction Pantouvakis and Bouranta (2013);

Pravin and Kabir (2011);

Wickramasinghe (2009); Kaliski (2007); Saari and Judge (2004);

Williams et al (2003); Bussing et al

(1999); George and Jones (1997)

8

5 Promotion Steidle et al (2013); Koch and

Nafziger (2012); García et al (2012);

Jung and Kim (2012); Syed et al

(2012) Pravin and Kabir (2011);

Lindner (1998); Kovach (1995)

8

6 Working conditions Cheng et al (2013); Jung and Kim

(2012); Pravin and Kabir (2011);

Dundar et al (2007); Lindner (1998);

Kovach (1995)

6

7 Achievement Hunter et al (2012); Sarkar and

Huang (2012); Satyawadi and Ghosh (2012); Yang and Islam (2012);

Muchiri et al (2012)

5

8 Appreciation Mahazril et al (2012); Kingira and

Mescib (2010); Lindner (1998); Nelson (1996); Kovach (1995)

5

9 Recognition Candi et al (2013); Barton and

Ambrosini (2013); Mahazril et al

(2012); Javernick-Will (2012)

4

10 Job security Yamamoto (2013); Pravin and Kabir

(2011); Zhang and Wu (2004); Cheng and Brown (1998)

4

11 Social opportunities Harvey (2013); Panagiotakopoulos

(2013); Kingira and Mescib (2010);

+ Base salary

+ Training and promotion

+ Relationship towards leaders

+ Relationship towards co-workers

+ Work itself

+ Working conditions

+ Benefits and reward

With the theoretical basis above, the initial research model is summarized as

follows:

Chart 2.8: Proposed research model

2.5 Components and hypotheses

Based on the proposed research model, the hypotheses for the study are as follows:

+ Salary: Base salary is positively correlated with the work motivation of

employees at FE CREDIT Operations Divison

+ Promotion: Training and promotion is positively correlated with the work

motivation of employees at FE CREDIT Operations Division

+ Leaders: Relationship with leaders is positively correlated with the work

motivation of employees at FE CREDIT Operations Division

+ Co-workers: Relationships with co-workers is positively correlated with the work

motivation of employees at FE CREDIT Operations Division

Work motivation

Training and promotion (+) Working

conditions (+)

Work itself (+)

Benefits and reward (+)

+ Work: Work itself is positively correlated with the work motivation of employees

at FE CREDIT Operations Division

+ Conditions: Working conditions are positively correlated with the work

motivation of employees at FE CREDIT Operations Division

+ Bene_rewar: Benefits and reward are positively correlated the work motivation

of employees at FE CREDIT Operations Division

The initial proposed research model with the above variables and theory is as

below:

Motivation = 0 + 1Salary + 2Promotion + 3Leaders + 4Co-workers +

5Work + 6Conditions + 7Bene_rewar

In which:

 Motivation : Work motivation

 Salary : Base salary

 Promotion : Training and promotion

 Leaders : Relationship towards leaders

 Co-workers : Relationship towards co-workers

 Work : Work itself

 Conditions : Working conditions

 Bene_rewar : Benefits and reward

Chapter 2 discusses theoretical foundations and previous studies At the same time, this chapter also provides a model of research that suggests factors influencing the motivation of the FE CREDIT Operations staff The proposed model consists of the following factors: base salary, relationship to leaders, relationship towards co-workers, training and promotion, working conditions, work itself and benefits and reward

Next Chapter 3 will present the research methodology used in the research and brief information about FE CREDIT Finance Limited Company as well as its Operations Division

CHARTER 3 – COMPANY BACKGROUND AND RESEARCH

METHODOLOGY 3.1 FE CREDIT in brief

3.1.1 Company introduction

Vietnamese name:

Công ty Tài chính TNHH MTV Ngân hàng Vi t Nam Th nh V ng – FE CREDIT

 English name : Vietnam Prosperity Bank Finance Limited Company

– FE CREDIT

 Abbreviation : VPB FC – FE CREDIT

 Chartered capital : 1,500,000,000,000 VND

(One thousand five hundred billion dong)

 Head quarter : 2nd Floor, REE Tower No 9, Doan Van Bo, Ward 12,

partners operation around 63 provinces and cities nationwide, serving millions of Vietnamese people through the mortgage loan of products and service

FE Credit was established on November 2nd 2010 with the objective of providing easy and effective financial solutions to customers, which is aimed to meet social demands and solve financial difficulties in order to help improve the quality life of Vietnamese customers

3.1.2 Operational fields

There are 3 main groups of operations: Capital Mobilization; Credit Extension; Others

Capital Mobilization Group:

+ Taking deposit from organizations

+ Issuing certificates of deposit, bills of exchange, bonds

+ Borrowing from SBV, credit institutions

Credit Extension Group:

+ Offering consumer credit

+ Offering discounts, re-discounts

+ Issuing credit cards

+ Receiving entrusted capital

Lending from banks

Lending from financial organizations

Consumer loan Discounts and

re-discount Credit card

Entrusted capital

+ Contributing capital, purchasing shares, foreign exchange trading, giving

financial consultancy and so on

3.1.3 Milestones in development history

 2010

- 02/11/2010: Established Consumer Credit Bank of Vietnam (FE CREDIT)

- Successful development of the first product: Loan – Buy motorcycle on

- Product launch: Cash Loans – One of the key products

- Established direct sales and sell channel through third party partners

- Achieved 150,000 customers, becoming a market leader

 2013

- Product launch: Loans for cell phones, electricity appliances – installment loan

- Expand sales network through business and alliances

 2014

- Acquisition of Vietnam Coal-Mineral Finance Company (VCMF)

- Serve 1,000,000 customers

 2015

- Successfully transformed all business activities into independent legal entity –

Vietnam Prosperity Finance Limited Company (FE CREDIT brand) with new

simple brand identity

- A pioneer in consumer finance credit card debuts

Insurance

agency

Capital contribution, share purchase

Foreign exchange Financial advise

- Expand the online sales channels, mobile apps, and more

- Proudly to be the best Consumer Finance Company in Vietnam 2015 – Global Banking and Finance Review Award

 2016

- More than 14,600 employees are working at FE CREDIT

- Serving 3,300,000 customers

- Expand cooperation with nearly 4,000 partners

- Developed more than 5,800 outlets across the country

- Proudly to be the best Consumer Finance Company in Vietnam 2016 – Global Banking and Finance Review Award

After 7 years of service, FE Credit has placed its position as a trusted, professional and model consumer finance organization towards clients and partners With the aim to bring customers with suitable and most effective products, FE Credit has continuously improved and expanded services, in order to commit its promise: Helping clients overcome financial difficulties to enjoy a prosperous and fulfilled life

3.1.4 Vision

FE CREDIT Vision: “Enable common man in Vietnam to make it much easier to satisfy the consumption needs”

The vision statement answers the question, "What do we want to become?"

Shared vision creates a commonality of interests that can lift workers out of the monotony of daily work and put them into a new world of opportunity and challenge

3.1.5 Mission

FE CREDIT Mission: “Together we elevate common people’s daily lives in Vietnam”

The mission statement answers the question, "What is our business?”

FE CREDIT has a clear mission which helps ensure unanimity of purpose, provide

a basis or for allocating resources, facilitate translation of objectives to work structure and specify organization purpose and translate these purpose to involve cost , time and performance parameters

3.1.6 Commitment

Besides affirming the commitment to provide trusted, optimal, fast and easy consumer finance solutions (FE – Fast & Easy), the meaning of FE today has been extended towards its commitments with:

• CUSTOMERS: Keep their needs FULFILLED through EXCEPTIONAL customer service

• PARTNERS: Continue to provide them FRUITFUL business opportunities and

to EXALT them

• PEOPLE: Build this company into a FAIR and EXCITING workplace

• STAKEHOLDERS: Continue to stay FOCUSED and EFFICIENT in every action

• SOCIETY: Promote FRIENDLY practices while ENRICHING the welfare status of the Vietnamese people

3.1.7 Core values

The guideline FUSO for all actions is the following four core values:

Focus – Unity – Simplicity – Ownership

3.1.8 Key products

There are millions of people having financial difficulties but and cannot access to bank loans throughout Vietnam Hence, FE CREDIT continually develops easy and effective consumer finance products & services – sustainable and safe solutions which are protected by law, to unburden Vietnamese people and realize their

dreams of a better life

• Promote

collective strength for common goals

• Create quick

and easy experiences

compliance

Key products

Personal Cash Loan

Consumer Durable Loan

Credit Card

Two Wheeler Loan

3.1.9 Organizational structure

+ Limited Liability Company Model held by Owner

+ Decision No 18

+ Structured by function

The current CEO of FE CREDIT is Mr Kalidas Ghose The company

organizational structure includes 6 divisions, 9 departments and 1 center as follows:

 6 divisions: Sales, Operations, IT, HR Management, Finance, Risk Management

 9 departments: Business Analytics, Business Development, Business Intelligence Competency, Project Management, Treasury, Legal & Compliance, Marketing, Credit Card Business, Innovation

 1 center: External Affairs

Chart 3.1: Organizational structure of FE CREDIT

Owner - VPB

Board of Director

General Director

Doing Business

6 Divisions

9 Departments

1 Center Board of

Supervisory

Chart 3.2: Business structure of FE CREDIT

CEO

Sales Division Operations Division

IT Division

HR Management Division Finance Division

Risk Management Division Business Analytics Center Business Intelligence Competency Center Business Development Center

Project Management Center Credit Card Business Center Marketing Center

Legal & Compliance Center Innovation Center

Treasury Center External Affairs Center

The operational principles are in the following order:

Chart 3.3: Hierarchy of management Board of Directors:

+ Being authorized representative by the Owner

+ Being the highest management agency on behalf of VPB FC

+ Rights of BoDs: Managing Activities, Operating Activities, Other Activities

CEO

Deputy CEO Division Director Deputy Division Director Center Director Deputy Center Director

Head Unit Head Supervisor Team Leader Senior Specialist Officer Collaborator

Chairman of BoDs:

+ Acting as a legal representative of VPB FC

+ Powers: Rights of legal representative; Rights of Chairman of BoDs

Board of Supervisory:

+ Conducting internal audit, evaluating compliance with law and internal

regulations

+ Powers: Supervising compliance with law and charter; Issuing internal

regulations in order to inspect and supervise

General Director:

+ Being the highest manager of VPB FC

+ Powers: Making decision on daily business affairs; Issuing procedures and

regulations subject to his authority; Recruiting staff subject to his authority

Business Development Strategy Marketing Solutions

Establishing branches, representative offices and non-business units

Chart 3.4: Organizational structure of Operations Division Operations Division:

There are 7 departments and 1 unit under Operations Division, which are

Administration Department, Payment Department, Facilities Department,

Procurement Department, Customer Service Department, Record Management

Department, Operations Process Management Department and Card Operations

Unit

The whole Division has nearly 300 employees, including staff at all office and

center, while the number of employees who works at head office is 235 Customer

service Department and Record Management Department are the two departments

which have this most number of staff On the other hand, Card Operations Unit and

Operations Process Management Department are the two departments which have

the least number of employees

Operations Process Management Department

Procurement Department

Administration Department

Facilities Department

Payment Department

Card Operations Unit

3.2 Research methodology

Chart 3.5: Research process (source: the author)

3.2.1 Preliminary qualitative research

The study applies qualitative research methods to explore, adjust and add observational variables used to measure the 07 concepts in the research model

Participants in qualitative research were selected to meet the below criteria:

- Gender: Male / Female

- Age: From 22 to 45 years old

- Working at FE CREDIT Operations Headquarters

- Ability to understand and understand relevant concepts of motivation

Qualitative data collection tool: use discussion board, including the following sections:

- Criteria Questions: Describe the purpose, nature of the study, and select the appropriate subject for the study to conduct the discussion

Identify the

research

problem

Objective of the study

The scientific basis of the study

Proposed research model

Qualitative research

Adjusted research model

Quantitative research