This thesis focus on retaining and motivating human resource in VTN – a state owned companies in telecoms firms.

According to the statistic of William Mercer, a human consultancy firm about the labor market in Viet Nam, the number of employees who gave up their job increase sharply in recent year, from 3,3% in 1998 to 11,9% in 2005 and it is predicted that the number will increase to 20% in 2009. The labor working in business area and non-business are those who tend to change their job most. About 11-14% in 2005 and in 2009, the technical employees and managerial employees will change their jobs most. And according to DDI (Development Dimensions International), there are about 40 to 50% of the talent employees will change their jobs in the next five year. This is meant that the expenditure for recruiting and training will increase about 15% to 30% of the total salary expenditure with the high level of risky. These also lead to the poor in development of an organization and also make that organization go to the failure. And in the telecoms market of Vietnam, the competition is becoming more and more severe. New providers join and share the market. The government has put a higher priority on telecoms development because the telecoms field plays an important role in providing diversified and copious services to comply with all the demand of socio-economic development of the country. The government has implemented policies to further privatize this fast growing sector. As being one of the largest operating enterprise, Vietnam post and telecommunication (VNPT) is a state organization charged with the responsibility of providing, managing and operating all public telecoms and services in Vietnam. The government has also allowed more and more other enterprises to take part in the telecommunication market, such as Viettel, HT mobile, EVN telecoms, S-phone... And due to process of joining WTO, the participation of foreign enterprises in the next few years is committed. This make the competition become more and more highly. With the speed of changing and developing so quickly like that, telecoms field was choose to study about the human resources management. VTN (Vietnam telecoms national) belongs to VNPT and to be one of the biggest companies in telecoms field but over the past years VTN still have to face the problem of losing its employees. More and more talent staffs, especially the technical staffs, gave up their job and applied for another job in competitive organization or in other organization that need telecoms expertise. Every year, the number of employees gave up their job is increasing dramatically. In the past five years, the total number of staff who gave up their jobs and came to work for the competitive organization is 133 and account for about 8% in the total number of organization’s staffs. The staffs who gave up their jobs were almost technical staffs and key engineers and they played very important roles in the organization so their departure caused lots of difficulties for VTN. In telecoms field, in order to get a high skilled staff or a good engineer, the organization must spend much of time and money to train them and give them chances to practice in real situation. Whenever the new employees do any thing, they always need an experience one to be besides them to help them and give them the right instruction. So to have a skilled staff in telecoms field, it needs at least 4 years of training and practicing in real situation. The expenditure for recruiting and training the new employees increase considerably but this is not the most urgent problem facing VTN. The real problem is that the away staffs played a key role in the organization. When they come to other organizations, there is a real shortage in their places. One more problem is that some employees not only work for VTN but also work for other competitive organizations. These employees were trained by VTN and have lots of opportunities to get the new technologies and knowledge and these advantages will be used for the sake of competitive organization not only for VTN. One more problem which is facing VTN now is that there is no strategy of retaining and motivating employees. This seems to be a serious shortage in human resource management. As we know, human resource is a very important asset of an organization. An organization could develop or not completely based on its human resource. Every year, each organization has to spend a great amount of money for recruiting and training the new employee. Being a state owned company in a very important field, VTN, like other state owned companies, still keep the old thinking of management. Almost employees are the relative of the former employees or may be some employees were accepted to work in VTN based on the relationship with a high ranking person. VTN was sponsored and protected by the government so people who are working in VTN do not suffer from the threat of being dismissed. The employees have become lazy and conservative. They don’t seem to be interested in the job and there is no endeavor in the work. Many people do not care about improving their knowledge and skill. The sluggish has become the attitude of many employees and these people just come to work to wait the day by and they may waste their time in having breakfast, drinking coffee and having gossip with each other. Whenever problem occurs, they need a lot of time to solve and even in some cases, they need to have professors come and help them in solving problems. These not only fade away the image of the organization but also decrease the turnover of the organization. The belief of the customers is following decreasing. From the above statistic, it is clear that the relationship of supply and demand in labor market is operating very exciting and the fighting for high skill employees is very tough and is showing through the brain drain. This thesis focus on retaining and motivating human resource in VTN – a state owned companies in telecoms firms.

TABLE OF CONTENTS

ACKNOWLEDGEMENT 3

APPREVIATE TABLE 4

LIST OF TABLE 5

EXECUTIVE SUMMARY 6

INTRODUCTION 8

1 RATIONAL 8

2 OBJECTIVES OF THE PROJECT 10

 Clarifying the need of retaining and motivating employees in VTN 10

 Evaluating the real situation of retaining and motivating employees in VTN 10

 Finding out the reasons of why employees gave up their jobs: 11

 Suggesting some recommendations for the strategy of retaining and motivating employees in VTN 11

3 METHODOLOGY 12

4 SCOPE OF THE PROJECT 13

CHAPTER 1: THEORETICAL FRAMEWORK 14

1.1 THE NATURE OF RETAINING AND MOTIVATING EMPLOYEES. 14 1.1.1 The importance of retaining and motivating employees 14

1.2 SOME TYPICAL MODELS OF RETAINING AND MOTIVATING EMPLOYEES 15

1.2.1 Two factor theory by Frederick Herzberg 15

1.2.2 Maslow’s hierarchy of needs 20

1.2.3 Goal Setting Theory 22

1.3 EXPERIENCE IN RETAINING AND MOTIVATING EMPLOYEES BASED ON J.LESLIE MCKEOWN’S SUGGESTION 26

1.3.1 Five stages in building the strategy of retaining and motivating employees 26

 Stage 1: Imagine the strategy of retaining and motivating employee 26

 Stage 2: Decide the right tools for retaining and motivating employees 31

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 Stage 3: Recruiting for retaining and motivating employees 31

 Stage 4: Making a difference in direction 33

 Stage 5: Persist to the strategy of retaining and motivating employees in working process 35

1.4 LEANING POINTS FROM THE ABOVE THEORIES 36

CHAPTER 2: EVALUATING REALISTIC OF RETAINING AND MOTIVATING IN VTN 37

2.1 GENERAL INTRODUCTION ABOUT THE OPERATION OF VTN 37

2.1.1 Forming and developing 37

2.1.2 Challenging and some key areas to compete 38

2.2 OVERVIEW OVER THE HUMAN RESOURCE OF VTN IN RECENT YEARS 41

2.2.1 The characteristic of human resource in VTN 41

2.2.2 Key points in human resource policy affecting employees 43

2.3 SITUATION OF RETAINING AND MOTIVATING EMPLOYEES IN VTN 45

2.3.1 Situation of resigning and the impact of this situation 45

2.3.2 Analyzing the factors affecting the resigning situation of employees in VTN 46

CHAPTER 3 CONCLUSION AND RECOMMENDATION 58

3.1 CONCLUSION 58

3.2 SOME RECOMMENDATIONS FOR IMPROVEMENT 59

3.2.1 Recruiting for retaining and motivating 59

3.2.2 Changing in salary payment system 61

3.2.3 Allocate the right employee at the right place and assign a clear and specific job, enhancing facility at the workplace 62

3.2.4 Strengthening the corporate culture and the relationship within employees 62

3.2.5 Training program 64

APPENDIXES 65

Appendix 1: Questions using in the interview 65

Appendix 2: Questions using in the surveys 65

ACKNOWLEDGEMENT

First of all, I want to say thank to all the lecturers as well as other members atNEU business school for the past time With all the lectures during the past time, Inow can do well in my work and also can use that knowledge in many fields ofthe life One more important thing is that now I have enough confidence to faceall the difficulties of the life and know how to analyze all the situations in the way

as they are

I owe an enormous debt of gratitude to Doctor Nguyen Quoc Duy who helps me alot in this thesis and always besides me to give me useful advices, guidance inresearch methodology and reading He also gave me a lot of suggestions and gave methe motivation to keep following the course and finish the thesis on time This thesissurely can not finish without the help of him and with so many worthwhile comments

on this thesis he really plays the key factor for the success of the thesis

Besides that I also want to say thank to my colleagues, my friends who are reallyenthusiastic and they also give me lots of information I need so that I could finish thethesis on time

The last but very important is that my beloved family They have given to me lots

of favorable conditions both in physical and mental ways that helps me to follow thecourse I was also given many motivating words from my family that helps me tofollow the course

Ha noi, 2009

NGUYEN HUY TUNG

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APPREVIATE TABLE

NEU National Economics University

IT Information Technology

HRM Human Resource Management

VNPT Vietnam Post and Telecommunications Group

VTN Vietnam Telecoms National

VTN1 Vietnam Telecoms Nation of Zone 1

VTI Vietnam Telecoms International

Viettel Viettel Telecoms

DDI Development Dimensions International

WTO World Trade Organization

NGN Next Generation Network

LIST OF TABLE

Table 1.1 Mallow’s hierarchy of needs

Table 1.2 Example of collecting information

Table 1.3 The differences between the two ways of recruiting

Table 2.1 Number of employees through the years

Table 2.2 The number of employees gave up their jobs throughout the yearsTable 2.3 Market share of telecoms organizations

Table 2.4 Expenditure for recruiting and training throughout the years

Table 2.5 Age and gender of the employees

Table 2.6 Resigning employees according ages:

Table 2.7 Choices of employees about work

Table 2.8 Choices of employees about achievement

Table 2.9 Choices of employees about recognition

Table 2.10 Choices of employees about work

Table 2.11 Choices of employees about work

Table 2.12 Choices of employees about opportunities of advancement

Table 2.13 Choices of employees about work

Table 2.14 Choices of employees about working conditions

Table 2.15 Choices of employees about work

Table 2.16 Choices of employees about work

Table 2.17 Choices of employees about work

Table 2.18 Choices of employees about relationship

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EXECUTIVE SUMMARY

VTN (Vietnam telecoms national) is a state-owned company which belongs toVNPT and was established in 1990 It is responsible for the national telecommunicationnetwork VTN provides core national telecom services: telegraphy, Telex, facsimile, datacommunication and transmission, transmitting national broadcasting and televisionsignals, domestic private leased lines At the beginning, telecoms field is monopolist

by the state but with the process of joining WTO all sectors would have the samecondition and would have the right to do business in all fields Many neworganizations have been set up to do business in telecoms field and they have tocompete fierce with each other New organizations in telecoms field need a lot oftechnical staffs so they have done with their best to lure technical staffs from theother company As a result, in the past five years, VTN has been facing a bigdifficulty in human resource A lot of the company’s employees have leaved thecompany and joined in the competitor’s companies The consequence of VTN is thatthe market share has decreased considerably and there has been a big shortage in highskilled technical staffs Many traditional customers of VTN have changed theiropinion and they no longer use the telecoms services of VTN With so manyproblems like that the author decided to study the thesis about retaining andmotivating employees in VTN

Retaining and motivating employees is very difficult for any organization sothat the author had to collect much information on human resource Besidescollecting the information over the human resource in VTN the author also collectmany theories on human resource management One of the theories about retainingand motivating employees that the author used in this thesis is the two factor theory

by Frederick Herzberg In the theory of Frederick Herzberg he divided all the reasonsaffecting the retaining and motivating employees in to two catalogues so that theauthor also divided the collecting information in to two catalogues There are manyreasons affecting employees so that the author have to make a questionnaires andsurvey that cover all the reasons Many current and former employees had been askedand all of their answers had been recorded All the collected information had been

carefully analyzed to clarify the weak and strong point in the strategy of retaining andmotivating employees in VTN All the answer of the current and former employeeshad been put in a table result and by synthesizing the author showed out manyshortages in the strategy of retaining and motivating employees in VTN Through thestudy the author clearly clarified that the high skilled technical staffs in VTN are themain subjects that the organization should pay much attention and a good strategy ofretaining and motivating employees should be applied for this group of employees.The study also gave out some suggestion on both motivating factors and retainingfactors such as the salary policy, the relationship within the organization…

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1 RATIONEL

According to the statistic of William Mercer, a human consultancy firm aboutthe labor market in Viet Nam, the number of employees who gave up their jobincrease sharply in recent year, from 3,3% in 1998 to 11,9% in 2005 and it ispredicted that the number will increase to 20% in 2009 The labor working inbusiness area and non-business are those who tend to change their job most About11-14% in 2005 and in 2009, the technical employees and managerial employees willchange their jobs most And according to DDI (Development DimensionsInternational), there are about 40 to 50% of the talent employees will change theirjobs in the next five year This is meant that the expenditure for recruiting andtraining will increase about 15% to 30% of the total salary expenditure with the highlevel of risky These also lead to the poor in development of an organization and alsomake that organization go to the failure And in the telecoms market of Vietnam, thecompetition is becoming more and more severe New providers join and share themarket The government has put a higher priority on telecoms development becausethe telecoms field plays an important role in providing diversified and copiousservices to comply with all the demand of socio-economic development of thecountry The government has implemented policies to further privatize this fastgrowing sector As being one of the largest operating enterprise, Vietnam post andtelecommunication (VNPT) is a state organization charged with the responsibility ofproviding, managing and operating all public telecoms and services in Vietnam Thegovernment has also allowed more and more other enterprises to take part in thetelecommunication market, such as Viettel, HT mobile, EVN telecoms, S-phone And due to process of joining WTO, the participation of foreign enterprises in thenext few years is committed This make the competition become more and morehighly With the speed of changing and developing so quickly like that, telecomsfield was choose to study about the human resources management

VTN (Vietnam telecoms national) belongs to VNPT and to be one of thebiggest companies in telecoms field but over the past years VTN still have to face the

problem of losing its employees More and more talent staffs, especially the technicalstaffs, gave up their job and applied for another job in competitive organization or inother organization that need telecoms expertise Every year, the number of employeesgave up their job is increasing dramatically In the past five years, the total number ofstaff who gave up their jobs and came to work for the competitive organization is 133and account for about 8% in the total number of organization’s staffs The staffs whogave up their jobs were almost technical staffs and key engineers and they playedvery important roles in the organization so their departure caused lots of difficultiesfor VTN In telecoms field, in order to get a high skilled staff or a good engineer, theorganization must spend much of time and money to train them and give themchances to practice in real situation Whenever the new employees do any thing, theyalways need an experience one to be besides them to help them and give them theright instruction So to have a skilled staff in telecoms field, it needs at least 4 years

of training and practicing in real situation The expenditure for recruiting and trainingthe new employees increase considerably but this is not the most urgent problemfacing VTN The real problem is that the away staffs played a key role in theorganization When they come to other organizations, there is a real shortage in theirplaces One more problem is that some employees not only work for VTN but alsowork for other competitive organizations These employees were trained by VTN andhave lots of opportunities to get the new technologies and knowledge and theseadvantages will be used for the sake of competitive organization not only for VTN.One more problem which is facing VTN now is that there is no strategy ofretaining and motivating employees This seems to be a serious shortage in humanresource management As we know, human resource is a very important asset of anorganization An organization could develop or not completely based on its humanresource Every year, each organization has to spend a great amount of money forrecruiting and training the new employee Being a state owned company in a veryimportant field, VTN, like other state owned companies, still keep the old thinking ofmanagement Almost employees are the relative of the former employees or may besome employees were accepted to work in VTN based on the relationship with a highranking person VTN was sponsored and protected by the government so people whoare working in VTN do not suffer from the threat of being dismissed The employees

9

have become lazy and conservative They don’t seem to be interested in the job andthere is no endeavor in the work Many people do not care about improving theirknowledge and skill The sluggish has become the attitude of many employees andthese people just come to work to wait the day by and they may waste their time inhaving breakfast, drinking coffee and having gossip with each other Wheneverproblem occurs, they need a lot of time to solve and even in some cases, they need tohave professors come and help them in solving problems These not only fade awaythe image of the organization but also decrease the turnover of the organization Thebelief of the customers is following decreasing.

From the above statistic, it is clear that the relationship of supply and demand inlabor market is operating very exciting and the fighting for high skill employees isvery tough and is showing through the brain drain

This thesis focus on retaining and motivating human resource in VTN – a

state owned companies in telecoms firms.

2 OBJECTIVES OF THE PROJECT.

 Clarifying the need of retaining and motivating employees in VTN

Human resources play a very important role in the development of anorganization They are the key factors and they always lure a lot of attention from themanagers of the organization It is said that the human resources contribute over 60%

in the success of the organization Each year, each organization has to spend a lot ofcapital for recruiting, training When an employee leave the organization, he causes alot of difficulties for the organization and if that employee is the key staff, he evencause the failure for the organization so retaining and motivating employees is veryimportant for an organization For VTN, a stated-own company, because of beingsupported by the government in many years so the board of directors does not caremuch about the importance of retaining and motivating employees From the timethat the government allows other organization to do business in telecoms field, VTNhas to face up the situation of losing its employees to new telecoms organizations.The leaving employees often play important part in VTN so when they give up thejob VTN meets a lot of difficulties in solving the work The market share of VTN isfalling gradually over the past five year and now VTN loose a lot of traditional

customers Competition is now a concept that all the managers of VTN talk about andthe first and the most important thing is to retain employees.

 Evaluating the real situation of retaining and motivating employees in VTN

In order to know the problems of retaining and motivating employees in VTN,the author have to collect a lot of information from the secondary data and primarydata especially from the primary data The author has to make a lot of interviews andmake a lot of surveys with the current and former employees of VTN All theinformation is collected following the suggestion of Frederick Herzberg based on thetwo factors theory This theory divided all the factors into two catalogues and eachcatalogue of factors plays a specific role in the strategy of retaining and motivatingemployees From the analyzing these factors, the author hopes to show out the role ofeach factor and also hopes the organization will find the right way to apply thesefactors in their own business This is very important for the development of VTN.Through surveys and making interview, the author also tries to identify the attitude ofits employees Beside that, the author also tries to identify the expectation of

employees and give out some suggestion to satisfy the expectation of the employees

 Finding out the reasons of why employees gave up their jobs:

Of course, all organizations have to face a fact that their employees, for one

day, will resign from their current position to apply for another in otherorganizations Even in a leading organization the employees still give up their jobbecause changing job is very naturally and but when employees resign from their jobbecame a tendency and the consequence of losing employees cause trouble to theorganization and make the speed of the development of the organization decrease, thework of finding out the reasons and solving it become the key factor for the success

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board of directors in this organization must have a big change in the point of view.However, with all the collected information and from the analyzing these information,the author could find some weak points in the strategy of retaining and motivatingemployees in VTN so that the author still gave out some recommendations with thehope that these recommendations could help the organization.

 The secondary data are collected from the following sources:

+ Public: internet, seminar material, newspaper, etc

+ Report: Organization report, other competitors in telecoms field report

+ Previous thesis and research of retaining and motivating human resource.The secondary data helps the author to get more knowledge on the retaining andmotivating employees The way of retaining and motivating employees that was usedmainly nowadays This data also help the author to know about the real situation inVTN and help the author to evaluate the strength and weakness of VTN

 Primary data

To get the good result, the author made several interviews and surveys with thecurrent employees in VTN as well as other employees who already applied foranother jobs in competitive organization

The survey is based on the questionnaires and the questionnaire is based on the

“two factor theory” It is concentrated on the motivating factors and hygiene factors.After collecting the result, the author set up a table to evaluate the remark ofemployees on each factor and give out the conclusion This information is veryimportant to know about the attitude of the employees

With the current employees, the author will know about their needs and wants.What are they expecting from the organization and what is the real situation in VTN

For the former employees, the interviews will help the author to make acomparison between VTN and other organization to know what is good and bad inVTN This information somehow shows out the shortage of VTN that help the author

to venture some recommendations on the strategy of retaining and motivatingemployees

Because of time and the ability, the author could not collect enough informationfrom all groups of employees in all fields in the organization for analyzing so theauthor just concentrates on some key groups located mostly in VTN1 that influentmuch on the performance of VTN

 Actual scale of the survey:

The survey was carried out on about 130 employees both current employees andformer employees with some key working categories The author also makes someinterviews with employees and all the questions have been carefully designed.However, because of lacking the time and because of the poor cooperation of theinterviewees, the author could not collect enough information for the thesis Onemore difficulty for collecting the information is that the employees sometimes did notwant to share all of their point of views

4 SCOPE OF THE PROJECT

VTN is a stated own enterprises and cover all over the country with the totalnumber of employees is 2670 people In order to make survey and interviewemployees in all fields of the organization, it needs the author to have a wide range ofknowledge, time and capital However, because of lacking in time and ability so theauthor just analyze the situation in VTN based on some key groups The thesis alsobased much on information collecting form the VTN’s secondary data and from thesurveys and interviews with employees who are working and used to work in VTN1.For the solution for this problem the author just concentrates much on the group ofemployees who have the tendency of resigning from their job much The thesis alsofocuses mainly in the factors affecting the attitudes of the employees The suggestedstrategy of retaining and motivating employees is a bit unspecific and to apply thestrategy, there are many aspects need to be considered more

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CHAPTER 1 THEORETICAL FRAMEWORK

1.1 THE NATURE OF RETAINING AND MOTIVATING EMPLOYEES 1.1.1 The importance of retaining and motivating employees

Employee is the key factor deciding the failure and success of an organization.This is becoming more and more important in the world today With the development

of technology, the role of the employee is more important than the part Retainingand motivating employees is a concept that can be understood in many different ways

by many different organizations It is said that there is no common definition for theterm “Retaining and motivating employees” Each organization, each manager willhas its own definition about the term “retaining and motivating employees” If askingten different managers about the meaning of retaining and motivating employees,there are may be ten different answers Hereafter are some definitions that can beconcerned about and the meaning is:

 Preventing employees from leaving the organization and giving them the motivation to pursue the defined objectives of the organization

 Combining the rewards with the benefits with their position.

 Giving special advantage on stock, comforts and other advantages.

 An issue related to our culture and the behavior of people.

All of the above definitions are very different from each other, sometimes thedefinition is very detail but sometimes it is very common Some managers alsoconsider it to be a factor of human resource management, a problem of rewards andbenefits The question arises here is that why a very clearly term like that can have somany meanings and the meaning sometimes seem to be opposite to each other? Theanswer to that question is that retaining and motivating employees is not a set of

actions or means to be applied in every situation An effective strategy of retainingand motivating employee is a big issue of a particular organization

Each organization and business has its own managers and these people are verydifferent from the ways of managing as well as the experience in management so ofcourse their point of view about retaining and motivating employees are verydifferent from each other Even in an organization, the opinion on the strategy ofretaining and motivating employees in each unit may also very different and in oneunit, under the management of a manager, the way of retaining and motivating thisemployee may not suitable with the other employees In general, there is no commontypical rule for the question of how to retain and motivate employee so eachorganization, each manager must learn to set up realistic goals attached to theirorganization to retain employee and choose tactics and strategies to achieve thatgoals and evaluate the success of that goals The last and the most important thing isthat you must learn how to evaluate and adjust target, tactics and strategies ofretaining employee depend on each stage of the organization

Hereafter are the four main opinions that should be popular and should beapplied in the strategy of retaining and motivating employees in organizations andbusinesses

 Organization should understand that changing job is very natural and the manager should learn to control it not to against it.

 There is no strategy that could retain employees

 Employees will only stay at organization that makes them feel that they are at home.

 An effective strategy of retaining and motivating employees should concentrate

on creating an interesting environment

All of the above showing that the most important factor affecting the adjustmentfor the strategy of retaining employee is the long term effect of that strategy and inorder to make this policy take effect, the adjustment of the treatment policy is notenough but a complete solution for each employee is also required and the definition

of retaining and motivating can be understood that to stop employees from leavingthe organization and to energize, direct, sustain their behavior”

1.2 SOME TYPICAL MODELS OF RETAINING AND MOTIVATING EMPLOYEES

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1.2.1 Two factor theory by Frederick Herzberg

According to the theory of Frederick Herzberg, there are two catalogues offactors affecting the attitude of employees The fist catalogue of factors can be calledmotivating factors and the second catalogue of factors can be called hygiene ormaintenance factors The strong point of this theory is that the theory has clearlydivided all the aspects in HR management in to two catalogues of factors Thisapproved to be very effective in retaining and motivating employees and it is veryeasy to apply in organization By comparing all the factors from the theory with thecurrent factors in the organization the board of directors would know what are theweak points and what are the strong points of the organization and they could findways to improve them Sometimes because of lacking the capital, the organizationcould not improve all of its factors in the strategy of retaining and motivatingemployees but they still could concentrate on some necessary factors at someappropriate time

 Motivating factors are related to the internal job factors and these factors can

help the employees to feel satisfy with their job and to have higher motivation Ifthere are no motivating factors in a job, the employee will probably not feel satisfiedwith their work and they hardly work with their most effort The motivating factorscontains many aspects:

a The work itself: There are uncountable jobs in the world today and they are very

different from each other Each job has its own interests and each person like to workdifferent job Of course, a job with high salary, high security and many chances ofpromotions is very important for employee But because of the differences withinjobs so that working conditions are very different The task of the manager is toallocate the right people at the right job and building a love with the job for them.With the love of work, the employees would find themselves good motivations to dothe work well and they also could create many new ideas to do the work in the bestway But how to allocate the right people at the right job and how to make people tolove their jobs is really a big concerns to the managers The task of manager is tomake employees to understand that they are having a good job and their job is uniqueand desirable

b Achievement

The achievement is important for all the people and it is a big motivator for theemployees to work and contribute to the development of the companies If anemployee was assigned with a difficult and unspecific task, he would not know how

to finish this task and he would not find the motivator to finish the task But with adifficult task but it was very specific, the employee would easy to see hisachievement and the more he does the task the more he feel the result of his effortsand that the reason why he want to complete the job in the best way So when themanager assign a task for his employees the task must be specific and must be clear

so that the employees will not misunderstanding They can finish the work in the waythat the managers are expected and when they get the reward due to the achievementthey made, they will have more motivation to do the job

c Recognition: Employees work because of the money but beside that they also

need to be recognized Sometimes the employees willing to work for an organizationwith low salary if this organization could make him understand that his contribution

is highly appreciated The feeling of being one of the factors contributing to thedevelopment of an organization would bring much motivation for the people working

in that organization The recognition of the organization or of the managers wouldhelp the employees to feel that they are useful and significant and this really makethem feel happy

d Responsibility: The responsibility is just a feeling in the employees mind and it

would come to their mind if the manager could appoint them a clear and specificwork This is a special aspect in motivating employees that the organization shouldconcentrate on When an employee feels that the organization is close with them and

he can consider the organization to be his home, of course he will feel theresponsibility to make the organization to be better If an employee understands thathis job can bring success or failure to the organization and he understand that he is avital part of the organization, he will feel his responsibility With the feeling ofresponsibility in doing the work the employees would feel enjoyable, feel love his joband he will try to do the job with his best

e Interest in the job: The interest in the job is a good motivator for the employees

to do the work well so that the organization should care much on this factor If anemployee can not find the interest in the work, he can not get the motivation to work

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and to do the job well It is just like a passion that encourages employee to keepworking All the other aspects now become insignificant, the employee will do theirwork with their best even he get a low salary and he still work even the organizationcan not recognize his contribution to the organization If an employee can not find theinterest in the job, they can not concentrate on the job and can not loyal to theorganization So building the interest in the job and how to build the interest in thejob is very important for the success of an organization

f Opportunities for advancement

People by nature always strive for the development and improvement ofthemselves and no one want to be at one position for the whole life When doing ajob, an employee not only aim at earning money to support their life but he also aim

at improving himself so that he could become perfection and could meet therequirement of high demanding job When they do the work, they always want to dothe work with their best so that the manager could recognize their contribution to theorganization and could understand that they are the key staffs of the organization.These employees would accept a low level of salary for a long time if they see thatthe work brings them the opportunity to improve themselves

 Hygiene or maintenance factors are the factors that come from the outside.

They are related to the external job factors and these factors are often located in theworking environment, in the benefit that the organization brings to its employees If

an organization does not create a good environment for the employees, they may feeldissatisfying and de-motivating and these even can lead to the avoidance of the workand when the employees find out that they can get a better condition when working inanother organization, they will no longer stay with the organization Hygiene factorsalso contain many aspect as follow:

a Company policies: Each company has its own policies and the policies of this

company are very different from the policies of others When employees come to workfor a company he must accept the policies of that company The company policiesalways play important factors in the strategy of retaining employees and motivatingemployees A good company must have good company policies meaning that thepolicies of this company not only aim at the benefit of the company but also aim at thebenefit of the employees Good policies must make employees to feel safe, to feelequitable and to feel being recognized of the organization and the managers Goodpolicies would keep employees to stay with the organization and keep them tocontribute much for the development of the organization The company policies must

be well studied in order to fulfill all the need of the employees

b Working condition: Working condition is one of the most important factors that

decide the attitude of employee Even operating in telecoms field, but not all theemployees have the chance to access internet and update new information In headquarter, this factor could be considered good but in braches office, there is a bigshortage in the facility and the facility often in the poor condition, about ten employeesshare one computer and printer When in the urgent and at the laser time, employeeswant to improve their knowledge but they can not use the computer, can not access theinternet because there is just one computer These really cause the dissatisfaction in theemployee and sometimes to waste the time, the employees will play some foolish game

or gambling

c Job security: Job security can be understood that the organization is working well

in its field and the organization is developing reliably The organization must has astable policy in recruiting and must has a stable policy in compensation so that thesepolicies could make the employees to feel safe and secure when working in theorganization and make them to work at the organization for a long time and make themthink that they are having the jobs for life

d Salary: A transparent payment policy is very important in the strategy of retaining

and motivating employees A good salary payment system must be show out the equity

in the performance evaluation for all the employees These will erase the resent

between employees Of course there is no complete salary payment system because it isvery hard to evaluate the contribution of each employees but a receivable salarypayment system will bring the satisfaction among employees These will motivateemployees to do the work well and bring them the feeling of recognition The salarypayment should be based on the demonstration of competencies, skills and behaviorsthe company identities as critical to achieving its defined goals rather than on theposition These also will encourage employees to improve their own capabilities andupdate further knowledge

The salary payment system should be announced and should be clearly stated forthe whole organization Employees know well about the salary payment system willknow exactly what they have contributed to the organization and how much theyshould received according to their contribution This policy will encourage employees

to more and more improve themselves to do the work well It also increases thecompetition among the employees and motivates them to do the work more Employeeswill also have more creativity at work and they can sure that their creativeness will bewelcome by the organization

e Employee benefits: The benefits that an organization could bring to its employees

are important aspects in motivating employees Of course, each employee will hasdifferent benefits When working in an organization, besides the common benefits,each employee will find for his own benefits The benefits for the employee may be thechance of development, may be the relationship with customer, may be the chance ofupdating knowledge, may be the special privileges that the organization offer Whengetting these benefits, the employees would feel interesting and feel profitable ofworking for the organization so that they would have more motivation to do the work

f Relationships with supervisors and managers, with coworkers and subordinates:

This is an important factor that helps to keep the employees to stay in and work forthe organization In the workplace, sometimes an organization can not fulfill theneed of the employees and make them feel resent and want to change the job, want

to go away and find another job but with the good relationship within the

organization, the employees could forget that desire and stay in the organization No

one can concentrate all the day long on the work so they need someone to talk,someone to share their feeling so building a good relationship within employee isvery important The employee will feel happy and enthusiastic when they come towork because here they can meet many people who understand them and have manythings in common with them.

1.2.2 Maslow’s hierarchy of needs

In the theory of Abraham-Mallow, he showed out that there are five stages in theneed and want of a person and in order to retain and motivate them, an organizationshould fulfill the need of its employees step by step The meaning is that when theemployees are at certain level, he will need some certain things but when they get allthat things, he will seeking for another and the duty of the good manager is to find outthe needs of the employees and find the way to meet that needs In this theory, Mallowshows out that there were 5 levels of need that influent a person’s behavior and they are

in range from the basic need to the highest need The advantage of this theory is that itshowed out the level in the need of people and helped the organization to understandthat each employee should be treated differently The disadvantage of this theory is that

it does not tell to the organization of how to know where is the level of need of itsemployees

Hereafter are five levels of need.

1 Physiological needs: hunger, thirst, shelter, sex and other survival needs

2 Safety needs: Security, stability and protection from physical or emotionalharm

3 Social needs: Social interaction, affection, companionship and friendship

4 Esteem needs: Self-respect, autonomy, achievement, status, recognition andattention

5 Self-actualization needs: Growth, self-fulfillment, and achieving one’s potential

Table 1.1: Mallow’s hierarchy of needs

Self Actualization

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Source: Retaining top employees by J.Leslie McKeown

From the Mallow’s theory, we can see that the lower levels have to be satisfiedfirst and when these needs have been satisfied, the higher need will be satisfied next Mallow’s theory is convenient way to classify needs and has spur managers totake the subject of retaining and motivating employee more serious Its primary valuelies in the recognition of the importance of satisfying all of the above needs and thetheory can be applied in retaining and motivating employee as following:

1 Basic needs: A fair wage, a meal and rest facilities

2 Safety needs: job security, safe working conditions, pension schemes

3 Social needs: met by introducing team work, training and providing socialfacilities like a club or sport member card

4 Self – Esteem needs: This is about how others see us at work and can beprovided for by rewarding staff with status symbols like cars, offices and new job titles.Allowing staff to gain qualifications at work can boost self-esteem too

5 Self-actualization: Achieving your full potential A business must ensure thatpromotion is possible and that there are opportunities to use initiative

All employees will change their needs when the lower levels are satisfied so thatthe managers should be aware of which level needs that the employees need to befulfilled and which needs they strive for

1.2.3 Goal Setting Theory

Goal setting is a powerful way of motivating people In fact, goal setting theory isgenerally accepted as among the most valid and useful motivation theories in industrial

and organizational psychology, human resource management, and organizationalbehavior Many of us have learned - from bosses, seminars, and business articles - toset SMART goals It seems natural to assume that by setting a goal that's Specific,Measurable, Attainable, Relevant, and Time-bound, we will be well on our way toaccomplishing it In the research, Locke showed out that there was a relationshipbetween how difficult and specific a goal was and people's performance of a task Hefound that specific and difficult goals led to better task performance than vague or easygoals If a person was told "Try hard" or "Do your best" he is hardly to finish the work

as expected but if this person was told "Try to get more than 80% correct" or

"Concentrate on beating your best time" he more likely to do the work better thanexpected Having a goal that's too easy is not a motivating force Hard goals are moremotivating than easy goals, because it's much more of an accomplishment to achievesomething that you have to work for In 1990, Locke and Latham published theirseminal work, "A Theory of Goal Setting and Task Performance." In this book, theyreinforced the need to set specific and difficult goals, and they outlined three othercharacteristics of successful goal setting

Five Principles of Goal Setting

To motivate, goals must take into consideration the degree to which each of thefollowing exists:

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expressed as a general instruction, like "Take initiative" - it has limited motivationalvalue To improve the team's performance, set clear goals that use specific andmeasurable standards "Reduce job turnover by 15%" or "Respond to employeesuggestions within 48 hours" are examples of clear goals When using the SMARTacronym to set goals, the organization should ensure that the clarity of the goal bymaking it Specific, Measurable and Time-bound.

 Challenge

One of the most important characteristics of goals is the level of challenge.People are often motivated by achievement, and they'll judge a goal based on thesignificance of the anticipated accomplishment When you know that what you dowill be well received, there's a natural motivation to do a good job Rewardstypically increase for more difficult goals If you believe you'll be well compensated

or otherwise rewarded for achieving a challenging goal that will boost yourenthusiasm and your drive to get it done Setting SMART goals that is relevant andlink closely to the rewards which are given to achieve challenging goals Whensetting goals the manager should make each goal to be a challenge If an assignment

is easy and not viewed as very important - and if you or your employee doesn'texpect the accomplishment to be significant - then the effort may not be impressive.It's important to strike an appropriate balance between a challenging goal and arealistic goal Setting a goal that you'll fail to achieve is possibly more de-motivating than setting a goal that's too easy The need for success and achievement

is strong, therefore people are best motivated by challenging, but realistic, goals.Ensuring that goals are Achievable or Attainable is one of the elements of SMART

 Commitment

Goals must be understood and agreed upon if they are to be effective Employeesare more likely to "buy into" a goal if they feel they were part of creating that goal Thenotion of participative management rests on this idea of involving employees in settinggoals and making decisions One version of SMART - for use when you are workingwith someone else to set their goals - has A and R stand for Agreed and Realisticinstead of Attainable and Relevant Agreed goals lead to commitment This doesn't

mean that every goal has to be negotiated with and approved by employees It doesmean that goals should be consistent and in line with previous expectations andorganizational concerns As long as the employee believes the goal is consistent withthe goals of the company, and believes the person assigning the goal is credible, thenthe commitment should be there Interestingly, goal commitment and difficulty oftenwork together The harder the goal, the more commitment is required If you have aneasy goal, you don't need a lot of motivation to get it done When you're working on adifficult assignment, you will likely encounter challenges that require a deeper source

of inspiration and incentive As you use goal setting in your workplace, make anappropriate effort to include people in their own goal setting Encourage employees todevelop their own goals, and keep them informed about what's happening elsewhere inthe organization This way, they can be sure that their goals are consistent with theoverall vision and purpose that the company seeks

 Feedback

In addition to selecting the right type of goal, an effective goal program must alsoinclude feedback Feedback provides opportunities to clarify expectations, adjust goaldifficulty, and gain recognition It's important to provide benchmark opportunities ortargets, so individuals can determine for themselves how they're doing These regularprogress reports, which measure specific success along the way, are particularlyimportant where it's going to take a long time to reach a goal In these cases, breakdown the goals into smaller chunks, and link feedback to these intermediate milestones.SMART goals are Measurable, and this ensures that clear feedback is possible With all

of goal setting efforts, the manager should make sure that he build in time for providingformal feedback Certainly, informal check-ins are important, and they provide a means

of giving regular encouragement and recognition However, taking the time to sit downand discuss goal performance is a necessary factor in long-term performanceimprovement See our article on Delegation for more on this

 Task Complexity

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The last factor in goal setting theory introduces two more requirements forsuccess For goals or assignments that are highly complex, take special care to ensurethat the work doesn't become too overwhelming People who work in complicated anddemanding roles probably have a high level of motivation already However, they canoften push themselves too hard if measures aren't built into the goal expectations toaccount for the complexity of the task It's therefore important to do the following:

- Give the person sufficient time to meet the goal or improve performance

- Provide enough time for the person to practice or learn what is expected andrequired for success

The whole point of goal setting is to facilitate success Therefore, you want tomake sure that the conditions surrounding the goals don't frustrate or inhibit peoplefrom accomplishing their objectives This reinforces the "Attainable" part of SMART

1.3 EXPERIENCE IN RETAINING AND MOTIVATING EMPLOYEES BASED

ON J.LESLIE MCKEOWN’S SUGGESTION.

1.3.1 Five stages in building the strategy of retaining and motivating employees.

 Stage 1: Imagine the strategy of retaining and motivating employee

In order to give out a right strategy of retaining and motivating employees, it isvery important for the manager to well understand his organization, from the weakpoints to strong points Understanding about which kind of employees that theorganization needs most and which kind of employees that plays important role in thedevelopment of the organization is necessary The best way to well understand theorganization is to take question with employees The right question with the rightanswer will help the manager to know what to do next And questions about all thingsrelated to the work should be kept asking during the working process The knowledgeabout what employees hope of and what they are want to achieve is the bestinformation in setting up a good strategy of retaining and motivating employees andthere are four steps in building the strategy of retaining and motivating employees:

Step 1: Identify the right employee that you want to retaining and motivating:

The first steps in building an effective strategy for retaining and motivatingemployees is to decide which group of employees that the organization will need most.

It seems to be that the organization wants to retain all of its employees but in reality,there is no organization want to retain all of their employees It is because of the fourreasons below:

- There are some cases the employees can leave the organization but do not causeany trouble and even some top employees also can leave the organization because oftheir unorganized characters so all of their contribution can not compare to the damagethat they cause

- A wrong evaluation upon the working environment in an organization or in aspecific unit or applying the strategy of retaining and motivating employees in wrongplaces can make the employees feel bored and up set The employees will think that themanager is deceitful and not understand the real situation

- There are not enough resources for all employees with the hope that someemployees will keep stick with the organization so the best way is to use some limitedresources for some specific key group of employees and these can bring theorganization the best effect

- There are lots of factors affecting the retaining and motivating program It

is difficult and waste of time to truly understand what is happening for allemployees and give out the best solution To fix this problem, the manager shouldsimplify the situation and solve the problems step by step for each group ofemployees will be better

In order to identify the right employees that the organization should retain andmotivate the organization can base on some criterions below?

- A creaking wheel: The most popular and simple way to recognize which group

of employees that the organization need to apply the program of retaining andmotivating is to listen to the requirement of other managers and top leaders

- An obvious shortage: This is a group of employees that always have an

available place for them and this place is very difficult for others to take charge of

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- Specify on financial: there are some group of employees that the organization

will spend lots of money for recruitment and training The bonus and other benefitsrelated to the effect of performance for such group of employees are very high

- Decisive group of employees: This group is very difficult to identify because

they are not in the there above group They are seem to be very normal and seem to beeasy to recruit the new one but in fact when they decide to give up the job, theconsequences they leave behind are so horrible

Step 2: Finding out the reasons of retaining and motivating employees

The reasons for retaining and motivating employees are very important for theorganization in the process of identifying the effect of changing job of each employee

on the performance of the organization Knowing well about the reasons of retainingand motivating employee will give the manager a complete view on this problem.There are often two reasons for this problem:

- Resources: financial expenditure and time to recruit a top employee within somemonths is very high

- Recruiting: it is very difficult to recruit a top employee

Even the two above reasons are reasonable but finding some more reasons inoperating process to concentrate on the strategy of retaining and motivating HR is veryimportant Finding new reasons at this stage will help the organization to arrange theplan of retaining HR and to get a higher result In order to know the affect of changingjob of the key employees, the organization should evaluate the situation on the sake ofthe customers The customers here are may be managers, supervisors, colleagues,suppliers….any one who suffers from the changing job of these employees The mostpopular and the most common question that the organization should ask theircustomers here is “How will you be affected from the changing job of theseemployees” To know the reasons, the managers should begin to investigate by setting

up a draw and put their investigating information in it For each group of employees,the manager should show out the way of identifying the reason for retaining andmotivating them

Table 1.2 Example of collecting information

Staff and targeted groups Ways of identify Reason of retaining themSales and marketing

employees

Discuss with the salemanager and ask the directcustomer

The turnover decreaseconsiderably

Technical employees The expenditure for

recruiting and training isvery high

Brain drain of theorganization

Source: Retaining top employees by J.Leslie McKeown

Step 3: What need to be done to retain and motivate that employees

When the organization could clearly identify which kinds of employees they want

to retain and the reason of retain them, the problem of the organization is now to findway to retain and motivate them The best way is to make questions and interview tofind the exact answer

- Make interview with the former employee: Most managers are familiar with

making interview with former employees or the employees who want to change theirjob This seems to be normal and take effect but in fact it is not necessary To do thisway, the manager should focus on some issue below:

 The reason why the employees working in the organization

 Most employees don’t want to completely give up the relationship with theorganization Sometime they need an introduction or even come back to theorganization so their answer may be not true

 Employee always find for their own excuse of changing job To not be regretabout their choice, they found for themselves reason in new job These may make themanswer the question of former organization in the wrong way

- Let outside people to make the interview: If the manager decides to make

interview with the employees who going to resign from their job, he should not askthem the question like: “Why are you going away?” because most of their answer is sopopular and common and the manager can not know the true reason of why theemployees going away even they are telling the true The question the manager shoulduse here is that “Why aren’t you stay?” The two question seem to have the samemeaning but in fact it different from the nature There are no common, popular answers

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that have been arranged in advance and moreover, the question make employeeconcentrate on their answer Because of all above reasons so if the manger is the one tomake the interview, he can not get the valuable information Even if the manager asksother staffs or HR managers in other department to make the interview, he/she still cannot get the desired information because the away employees think that their formermanager will get that information and almost the away staffs want to keep a goodrelationship with the organization They may need to get a good remark when comeinto new organization or they may come back to the organization one day if the neworganization is not as their thinking So to get the trusted information, let outsidepeople to make the interview and to collect and classify all the answers, tell them tospeak to the employees that the information will be keep confidential.

- Making interview with the employees when they are going in and work and they are going away To know the detail of the information from the employees when

they are going away the organization, it is necessary to have a standard landmark tocompare the answers You can make such a standard landmark like that by making aninterview when recruiting the new ones The outline of the interview for going in andwork employee is quite like outline of the interview for the going away employees Askthe outside professor to make interview with the new employees to find out the reasonthey join the organization and still make sure that the new employees do not know theinterview is being process by the manager’s purpose

- The most important interview: Why do the employees stay in with the organization: It is amazing that this simple but useful method have been neglecting by

most organizations As you know, many organization making interview whenemployee going from the organization to get the reason of it Some organizations evenmaking interview with the new employees to have a basic data to retain and motivateemployees However, there is few organization making interview of “why do you stay

in the organization?” to get the reason of why top employees going away Theinterview of why employee going way the organization often be processed after theproblem happened so even the collected information is trusted, it is still two late

- A sound starting: The interview “why don’t the employees work with the organization?” There is particular case in the strategy of retaining and motivating

employees leading to another interview There is a top employee decide not to work foryour organization Not employ the top employees is a matter in the strategy of retainingand motivating employees and even the employee realize the situation itself There aremany reasons such as: the fame of the organization is low, the workplace is notcomfortable and the salary is not high The most important thing is that you have tofind out the reasons A simple way to solve the problem is to carry out the interview ofwhy you don’t work for our organization Like the above interview, it is necessary toask outside people to conduct the interview and make sure the interview is private

Step4: Giving out a clear and valuable goal for the strategy of retaining and motivating human resource based on the collected information above.

After collecting all needed information now the manager needs to set up goalsthat must be clear and could be qualitative The goal must be concretized so that it willmake easy for the evaluating the performance At this stage, the most important thing is

to concentrate on general goal in your strategy The manager should think about thetactics before give out the goal like putting the wagon ahead the horse The best way tosynthesize all the goals of retaining and motivating employees is to develop an analysistable like the table in some above steps and in this table, the manager must ensure thattarget could be qualitative and clear In this table, the manager should clarify whichgroup of employees that the organization needs to retain and motivate the most At thisstage, the managers should write down any tactics that appears in your mind in theprocess of collecting the information for retaining and motivating employees You alsodon’t need to put you in pressure of set up the total program of retaining andmotivating employees at this stage

 Stage 2: Decide the right tools for retaining and motivating employees.

An effect strategy in retaining and motivating employees needs to have the righttool to gain specific goal There are lots of tools for your organization to be appliedsuch as: prestige policy, salary plan, car, bonus… in order to gain the goal, you mustdecide how to use the tool and the answer will be divide into two part:

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- Compare the result of other organizations that they gain with a specific policy

so that you can evaluate the possible result with your organization

- Use a specific tool in a small area to evaluate the result before using it for thewhole organization

 Stage 3: Recruiting for retaining and motivating employees.

A very important part in the strategy of retaining and motivating employeesdepend much on the recruiting program of your organization Retaining andmotivating employees begins from recruiting process and from creating the image ofthe organization with the publication There are two factors influent the strategy ofretaining and motivating employees:

- The first factor is the way you recruit new employees: at this time, you mustunderstand that there are no one accept one work for the whole life We need to accept

a real situation that employee will change their job one day And retaining work based

on employees not based on the need of employers For employees, priorities that weregiven by organization just play second important role compare to the opportunities ofimproving professional skills and personal development

- The second factor is the impression of your organization on employees duringrecruiting process: An effect strategy of retaining and motivating employee beginsbefore the employees working for the organization Retaining employees begin withthe images, the messages, the impressions which organization create on the market Apotential employee is a member of society He is being impacted by the images of theorganization like other people

To do the business, all the organizations have to recruit the new employees butthere are just some organizations are recruiting for retaining This is the first factoraffecting the strategy of retaining and motivating employees in an organization How torecruit the right people and how to apply the right model of recruiting employee is the firstand the most important factor in the strategy of retaining and motivating employees.Finding the differences between the two ways of recruiting are very important for theorganization to apply the strategy of retaining and motivating employees

Table 1.3: The differences between the two ways of recruiting

Normal recruiting Recruiting for retaining

Based on functions and skills Based on functions, skills

and the integrationWays of

recruiting

Based on the speed and the ability of filling up the position and based on the events

Based on the relationship between employer and employee and base on the operation process

Source: Retaining top employees by J.Leslie McKeown

 Stage 4: Making a difference in direction.

This is very important part in the strategy of retaining and motivating employees

A direction program with the aim at retaining and motivating employees must meet 2short term goals and 3 medium term goals Employees will stay in an organizationwhere they feel as they are at home

- Avoiding introduction A general direction program aims at retaining

employee must clearly clarify between direction and introduction to the organization

At this stage, it is very important for your organization to introduce them to be familiarwith the organization but be careful because this could make them feel bored anduninspired For this, you should use one-way tool of introducing by CD, Website…Anintroduction to the organization include watching production process, paper procedure

in working, introduction to welfare and favor program, instruction to healthcare andsafety individual… these aim at supply tools for employees A direction program pointsout what employees could achieve with the given tools

- Helping employees feel as they are at home This is very important factor

in the strategy of retaining and motivating employees When the new employeescome into your organization, they would feel like a fish out of water and would notfeel comfortable An effect direction program must help employees understand 4below points:

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 What the organization expects of them and what the employees expect of theorganization The direction: The organization pledge to make balance between workand life and help employee understand the value of working time in the organization

 How they could contribute to the value of the organization The direction:giving out the difficult of the organization and ask employee to suggest thepossible solution

 What is the best way of communication among employees The direction:giving new employee organizational chart and introduce them to the one he or she mustwork with much and ask this one to tell new employee the best way of exchange theinformation

 How to quickly fall in line with the organization Ask an experienced staff tohelp the new employee, introduce new employee with other partners and way ofoperating in group

- Recognizing that direction program is the beginning of the retaining employees Direction program changes from last part of recruiting function to the

beginning of retaining employee process Hereafter are some of the necessary factors inthe content of direction program

A working-day between manager and employees to set up the working goal inone year and in the next 3 years

A presentation of training manager about the detail of available sources todevelop career and individual

A presentation of a long time experience employees, showing the mainapproach to career and individual development program during his real working time

A meeting to introduce new employee to the real consultant program oforganization

- Managing the expectation: As we know, a talent employee often chooses an

organization not only based on pledge program but also based on the opportunity ofleaning and developing When being recruited, new employees want to know theability of satisfying their expectation Sometimes the expectations of the newemployees are two high and not reasonable Direction program is the first opportunity

to help employees know about the way the organization fulfill their commitment andthis program also help employees to adjust their expectation following the condition ofthe organization An ineffective direction program will shake the employee’sexpectation and cause an discourage feeling among employees.

- Cultural integration This is one of the best ways in direction program that

aims at retaining and motivating employees Cultural integration showing that there is acommon view between managers and employees so a direction program needs to carryout as below points:

Setting up a standard for employees by explaining the basic values and visions

 Stage 5: Persist to the strategy of retaining and motivating employees in working process.

After recruiting, the relationship between manager and employees is the mostimportant factors in the strategy of retaining and motivating employees The strategywill be impacted if this relation was good and vice versa At this stage, the exchangeinformation between managers and employees will help to improve the mutualrelationship and also help the employees know well about the direction, the vision ofthe organization There are two factors help to make the strategy become effect:

- Managers when guide or direct employees ensure the exactness, achieving thegoal of the organization

- Employees have the chance to improve themselves and can develop overthe time

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At this stage, in order to ensure the effectiveness of the strategy of retaining andmotivating employees, the managers must seriously take care about the employee onthe four below fields:

- Adaptation: This is to help the new employee to familiar with the environment

of the organization

- Integration: This is to help the new employees to familiar with other employees

- Dialogue: This is a chance for the new employees to show themselves with theorganization In this talk, the new employees could discuss about the needs and want,the individual goals…

- Managing the expectation: Most employees will be disillusioned after a shorttime working for the organization because they are often put very high expectation withthe organization This is the right time for the managers to discuss with the newemployees to help them adjust the expectation with the realistic

1.4 LEANING POINTS FROM THE ABOVE THEORIES

In summary, all of the above theories are helpful as a theoretical framework forthe thesis They are showing that in order to get a good strategy of retaining andmotivating employees, an organization should well understand about themselves Eachorganization will have its own strong points and weak points and each organization willhave their own key staffs so the most important thing in retaining employees that anorganization should concentrate on when competing with other organization are:

Changing job is very natural and the manager should learn to control it not toagainst it

There are no perfect strategies that could retain all employees

Organization should identify exactly the right employees that the organizationwant retain and the organization should know exactly the reason of retaining theseemployees

An interesting environment within the organization is a good way of retainingand motivating employee

Making the employees to feel as they are at home would be useful and wouldmake them contribute much for the organization

The managers should know the strong points of the organization to recruit theright employees who are suitable with the organization.

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