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Ministry of Education and TrainingNational Economics University NEU Business School … Solutions for Motivating Employees at Child Protection and Care Department, Ministry of Labor, Inval

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Ministry of Education and Training

National Economics University

NEU Business School

Solutions for Motivating Employees at Child Protection and Care Department, Ministry of Labor, Invalids and

Social Affairs (MOLISA)

Master of Business Administration Thesis

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Hanoi - 2009

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Ministry of Education and Training

National Economics University

NEU Business School

Solutions for Motivating Employees at Child Protection and Care Department, Ministry of Labor, Invalids and Social

Affairs (MOLISA)

Masters of Business Administration Thesis

Supervisor: Associate Prof Dr …

Hanoi - 2009

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Table of Contents

Acknowledgements 5

Abbreviation 6

List of Figures 7

List of Tables 8

Executive Summary 9

Introduction 12

1 Rational 12

2 The Research Objectives 13

3 The Objects of Research and the Scope 13

4 Research Methodology 14

5 The Limitations of the Research 16

Chapter 1 The Theoretic Framework of Motivation 18

1.1 The Definitions and Related Concepts of Motivation 19

1.1.1 Motivation and Motivating Employee Definitions 19

1.1.2 Definition of Need and Other Related Concepts 20

1.1.3 The Role of Motivating Employees 22

1.2 Some Theories on Employee Motivation 23

1.2.1 The Theory of Maslow’s Hierarchy of Needs 24

1.2.2 The Theory Herzberg’s Two-Factor 26

1.2.3 The Theory X; Y of Mc Gregor 28

1.3 Analyzing the Factors Affect to Motivating Employees 30

1.3.1 Policies and Management Mode 31

1.3.2 Compensation and Other Benefits 31

1.3.3 The Working Conditions 32

1.3.4 The Organization Culture, Information System and Relationships 32

1.3.5 Monitoring and Evaluation of Managers 33

1.3.6 Training and Development Opportunities 33

1.3.7 Self Actualization and Awarding the Employee Achievements 34

1.3.8 Extra- Activities 34

Summary Chapter 1 35

Chapter 2 Analyzing the Current Situation of Motivating Employees at CPCD .37 2.1 Overview of MOLISA and CPCD 37

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2.1.1 Overview of Ministry of Labor, Invalids and Social Affairs 37

2.1.2 Child Protection and Care Department 39

2.2 Characteristics of CPCD Affecting Employee’s Motivation 43

2.2.1 Achievements and Challenges of CPCD 43

2.2.2 The Feature of Work at CPCD Influence to Employee’s Motivation 45

2.2.3 The Requirements of Employees Working at the Department 46

2.3 Analyzing the Current Situations of Employee’s Motivation 47

2.3.1 The Feature of Labor Forces 47

2.3.2 Analyzing the Current Situation of Employee’s Motivation 48

2.4 The Causes of the Situation of Employee’s Motivation 58

Summary Chapter 2 61

Chapter 3 The Solutions of Employee’s Motivation at CPCD, MOLISA 62

3.1 The Solutions of Employee’s Motivation 62

3.1.1 Improve Some Management Policies 62

3.1.2 Considering the Compensation and Benefits Policies 63

3.1.3 Improve the Working Conditions 63

3.1.4 Develop Opportunities for Education and Training 65

3.1.5 Setting up the Communication and Information System 65

3.1.6 Ensuring the Fair and Treatment Towards all Employees 66

3.1.7 Circulate and Diversify the Work- Itself 67

3.1.8 Recognize Achievements in Decision Making 67

3.2 The Conditions to Implement the Solutions 68

3.2.1 The Child Protection and Care Department and MOLISA 68

3.2.2 The employees 68

Summary Chapter 3 69

Conclusion 70

Reference 71

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There are a number of people and organizations that I need to acknowledge for their efforts

in helping reach my study goal It is with their help and support that I was able to compilethis research

I would like to thank my supervisor Associate Prof Dr … I was indeed fortunate to learn

from her as her student and advisee I thank her for the kind of coaching that conveyedboth caring and confidence always Her experience, intellect, and instinct continuallychallenged my direction, speed and compelled me to critically examine each milestonecovered and assess each curve ahead of the research

Thanks go to the NEU Business School Their support and flexibility allowed me to

overcome a number of obstacles including time, distance, and an almost ten year absence

from formal education Furthermore, I would like to thank the members of my Thesis

Committee Their support was paramount to the completion of this study I gratefully

acknowledge the contribution of the NEU Business School Committee The considerable

contributions of members of the committee were important, supportive coaches withdistinctive contributions to my progress in this academic pursuit They are coaches andscientists, who deeply helped and advised me to final the thesis

I am thankful to them all:

The National Economics University;

The NEU Business School;

All my Colleagues.

They helped me progress to finish

Most importantly, I acknowledge the co-operation of many employees and managers whoresponded to the survey and generously gave time to the interviews

Finally, I encountered and noted gratefully, my family and friends, who instilled in me thevalues of honesty and hard work during the research./

Ha Noi, November 30 th 2009

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CPFC Committee of Population, Family and Children

CPCD Child Protection and Care Department

DOLISA Department of Labor, Invalids and Social Affairs

HRM Human Resource Management

MOH Ministry of Health

MOLISA Ministry of Labor, Invalids and Social Affairs

M&E Monitoring and Evaluation

MCST Ministry of Culture, the Sport and Tourism

ULSA University of Labor, Invalids and Social Affairs

UNICEF United Nation Children’s Fund

WTO World Trade Organization

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List of Figures

Figure 1.1 The Needs - Desires - Satisfy Chain 21

Figure 1.2 Hierarchy of Needs 25

Figure 1.3 Two Factors of Need 27

Figure 1.4 The Interrelation between Needs and Motivational Factors 28

Figure 2.1 The Structure of MOLISA 38

Figure 2.2 The Structure of Child Care and Protection Department 43

Figure 2.3 The Labor Structure by Ages 47

Figure 2.4 The Labor Structure by Qualifications 47

Figure 2.5 Desirable Wishes of Staff 58

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List of Tables

Table 2.1 The Features of Labor Force of CPCD 47

Table 2.2 Number of Employees Moved- out the Department 48

Table 2.3 Number of Interviewees by Gender and Ages 49

Table 2.4 The Net- Average Compensation Statistics in 2007 and 2008 53

Table 2.5 The Statistics of the Short-term Training Course in 2007 and 2008 55

Table 2.6 The Results of the Satisfy of Working at the Department……….57

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Executive Summary

Human resource management is an important factor of any organization Each organizationjust can reach its objectives when their employees work effectively, efficiently andcreatively Besides the basic working conditions, the employees only contribute their besteffort to the organization when they get motivation

Thus, motivating employees is the one of the most important priorities of any organization.However, many organizations have not realized that and plan for motivating employee isnot considered as part of overall strategic plan of organization, especially the state agencies

is one of specific examples They consider that they work as missions because they getsalary

In recent years, when Vietnam has jointed World Trade Organization (WTO), there aremore and more job opportunities for everyone in labor market However, the brain drainhas happened and gradually increased year by year The employees have trend to move toother organization in which they hope to have better condition, respect and goodcompensations This issue impacts directly to the service servants who work in thegovernmental agencies The employees, especially the skillful and experienced onesalways consider between state agencies with private sectors as well as foreignorganizations when they have opportunities to change their jobs while others dislike andneglect their work It is possible that the state agencies may know that but they have notyet considered it as an important thing in order to promote, encourage and keep theiremployees commit with the organization The management policies mode becomes themechanism for all agencies from the central to provincial offices

In the fact that, there are a lot of researches to find out the reasons affecting to the workingbehaviors as well as the desire of employees at the government organizations but it wasstill considered as unessential in the overall strategy of the organization The humanmanagement way has been applied as a formula such as after recruited, the employees have

to participate a pre-service servant course, after 3 years the salary will be increased to thenext level….The procedure has been applied so boring to almost of state organization andChild Protection and Care Department is unacceptable

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Child Protection and Care Department (CPCD) has become one of the administrativeagencies of Ministry of Labor, Invalids and Social Affairs (MOLISA) since 2007 TheDepartment’s general responsibilities is supporting the Prime Minister in implementing thestate management functions on child protection and care sector in the whole country based

on the legal system With the new member of MOLISA, Department has to face with thechanges of the restructuring the organization and the socialization trend, the Departmentalso has many difficulties in human management, especially the employees did notenthusing with their performance, many other move out… these issues is affecting theorganization's operation at some certain

The leaders of Department also have not yet considered what factors affecting to theworking behaviors of employees as well as motivation factors to the employees Therefore,how to enhance employee motivation in CPCD is important and essential requirement As

an ex-employee of CPCD, the author is eager to study the factors impact to the workingbehaviors of employees and finding the factors support them working harder Through the

research on “The solution for motivating employees working at Child Protection and

Care Department, MOLISA”, the author showed out the real picture of employee

motivation and saw how the motivation factors influences the working behavior ofemployees, consequently and finally to find out some solutions for enhancing CPCDemployee motivation

Base on some theories have been studied, the author figured out the related factors as atheory frame for researching motivating employees at CPCD The research showed thatmotivation is influenced by both financial and non-financial incentives The mainmotivating factors for employees in CPCD were appreciation by managers, colleagues andpeers, a stable job and income and training opportunities The main discouraging factorswere related to low salaries and difficult working conditions

Activities associated with appreciation such as performance management are currently notoptimally implemented, as employees in CPCD perceive supervision as control, selectionfor training as unclear and unequal, and performance appraisal as not useful And throughthe actual picture, the research also was carried out with an aim to serve CPCD’s leaders infinding appropriate solutions to strengthening their employee’s motivation at work The

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kind of non-financial incentives identified should be taken into consideration whendeveloping human resource management (HRM) strategies from both CPCD andemployees sides.

The author also hopes that these findings and recommendations will be considered as issues that will be applied effectively at

CPCD.

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1 Rational

After re-organizing organizational structure, Child Care and Protection Department(CPCD) became an administrative unit of Ministry of Labor, Invalids and Social Affair(MOLISA) Being the one of Governmental agencies which focus on social work, childprotection and care, the CPCD works as a specific state administration that fulfill all themissions related to children in Vietnam’s territory

Because of the social and public field operation, the budget for operating is funded mainly

by the Government fund, they neither need making profit and not worry about thecompetitiveness between other units in MOLISA as well as other organizations in society.Especially, the Government defined that “Children is the world tomorrow” and it becomesone of the important missions of long-term development strategies Besides, the childrenissues are one of the crucial missions of all over the world It is also interested in by non-governmental organizations as well as international organizations For these reasons,CPCD has a lot of advantages and priorities from the Government and other organizations

in conducting operation

In order to reach the objectives as planed and the targets of society, the system andnetwork of child care and protection work is also consolidated step by step from centre tothe commune

However, in recent years, brain drain has been a serious problem happening in most of theGovernmental agencies and State companies, and CPCD is not an exception, especiallyafter restructuring process Many experienced and skillful employees resigned theirpositions at the department while some of the rest have less enthusiasm for work They go

to the office on time however their work is ineffective and even some office regulations arebrokered

The leaders have already realized these problems and considered that the negativesituations make employees not be interested in working and they have little motivation towork, these problems will probably increase and be more serious if they have no effective

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tool to manage the efforts of the employees and encourage them timely In order to find outthe solution, the leaders have to address many questions, such as: “What are employee’sambition and needs?”, “What is the actual employees’ motivation? And what are factorsinfluencing work motivation?” and “How to motivate employees?”

As a member of the organization and being a member of Administration Unit, I think andtry to figure out solutions for this actual situation With four years working for CPCD andknowledge that I gained from this course, I want to contribute my knowledge to supportthe organization improve the working effectiveness of employees Therefore, I chose thetitle for my research as “Solutions for motivating employees at CPCD, MOLISA”

With the understanding of the employees’ ambition, through this research, I hope myanalyzing and solutions offered will probably be useful to the leaders to overcome theseobstacles, so that the organization can reach its objectives and achievements ofdevelopment goals

2 The Research Objectives

With all the questions of the manager as well as the author, I want to focus on thefollowing objectives:

- To study theories of motivating that refers to the research content;

- To identify factors for motivating of employees at CPCD;

- To analyze actual situation of motivating employees at CPCD, MOLISA and findout the factors affect to the motivating employee at CPCD

- To provide recommendation for solutions for these difficulties that CPCD areconfronted with

3 The Objects of Research and the Scope

The research objects and the scope of the research are:

1 All employees working at CPCD of MOLISA The total of employee is 85 peoplewho graduated at the college and university and they are working in: (1) ChildProtection Unit, (2) Child Care Unit, (3) Child Development and ParticipationSkills Unit, (4) Financial and Planning Unit, (5) Administration Unit and (6)

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Consultancy and Service Communication Unit, (7) Children Funds Unit.

2 Some ex-employees who have worked at Committee of Population, Family andChildren (CPFC) and after some months of organizational restructuring theystopped working for CPCD

3 Objects will not be mentioned: Leaders of MOLISA and CPCD, Safe Guards,Drivers, and services employees

4 Research Methodology

According to available motivating employee studied such as: Maslow’s Hierarchy ofNeeds, HERZBERG’s two factors theory (motivation/Hygiene theory), DOUGLAS’sTheory X and Theory Y… which are the foundation for practicing The research designsthe procedures that included collecting data by structured questionnaire in order to answerresearch objectives Based on all contents will be analyzed in the research, the author willcollect the data through the following methods:

- Semi- Structured Questionnaires: make the survey on 85 employees and interviewin-depth with five employees in order to statistic and understand all the needs,thinking of employees working in CPCD, MOLISA

- In- depth interview: interview in-depth with five employees that including: a leaderteam, a head of child protection unit, a employee at child protection unit, aemployee at child development and participation unit and an ex-employee whostopped working at CPCD

- Direct observation: Because I have been working at the department for 4 years so Ihad opportunities to work with all the employees and I understand what theemployee needs is and what is the motivation Moreover, I also live in recentlychanges situation of CPCD as well as restructuring process and I can haveoverview and understand deeply the actual motivation and spirit of the employeeworking here

Other Data Sources

- The data collected from Report of Committee of Population, Family and Children(CPFC) in 2007

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- The data collected from the Labor and Employment Department and other relevantdepartment as well as Ministry reports and statistic report of CPCD in 2008 afterone year became the member of MOLISA.

Data Collection

Based on many assessments processing recently conducted, I studied the annual assessment of the Department and designed the questionnaires list in order to find theanswers all the questions facing the department as well as MOLISA

self-Here is more detail about the way I implemented survey for these questionnaires:

With the questionnaires of survey, I clarify in to five levels from 1-5 in which:

+ At level 1: actually disagree

+ At level 3: equivalent to many agree and many disagree

+ At level 5: Actually agree

+ At under level 3: The manager need to consider the reason why because may be

he felt unhappy and disappointed with his job

+ At upper level 3: The manager can think that they pleasant with his job

I will carry out many steeps of survey, that including:

Implementing the design and making survey:

1 Design the chat of questionnaires

2 Making test survey

3 Complete the questionnaires

4 Making survey (85 employees are working at Department)

Implementing depth interview (3 employees):

1 Based on the questionnaires, I will carry out depth interview

2 Collect many suggestions to complete

3 Carry out the depth-interview (02 employee are working at the department; 01employee moved out; 01 leader team and ahead of child protection Unit).Total employees will be interviewed is 85 people and depth- interview have to reply to theentire questionnaire

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Processing and Analyzing the Collected Data

Based on all the data collected, I used the quantitative and qualitative methodologies andmodel graph to description, and compare with each other At the same time the MicrosoftOffice Excel has been applied to process the data

At last, I draw out the recommendations or solutions for the problems

5 The Limitations of the Research

The limited point from the research is that, CPCD is a new member

of MOLISA, the structure of the Department has been rearranging for adaptable with actual situation of MOLISA The number of employees at CPCD in this time is not stable However, the research

is carried out seriously and the survey implemented with all employees in the Department Thus, its result will be reflected and

recommended to the organization

In the research, the author only focuses on analyzing the employee motivation at CPCD basing on many theories related to employee motivation such as: Maslow's Hierarchy of Needs, Herzberg’s Two- Factor Theory, Theory X; Y of Mc Gregore, Expectancy Theory From these theories, the author develops a frame theory for study that related closely and directly to employee motivation at CPCD.

That detail as follows:

- Working conditions: it refers to workplace condition, staffing, workingenvironment; working relations

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- Compensation and other benefits

- Reward and recognition

- Staff career development and work itself

Other factors as security, status, personal life, etc will be listed briefly when analyzing thekey factors as mentioned as above However, due to the limitation of the research’sobjectives and scope, I just want to focus on those factors relevant to context The otherfactors should be considered in detail in the other research

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Chapter 1 The Theoretic Framework of

Motivation

Management plays a vital role in developing an organization Success in business not onlybases on intelligent leaders, but also relies on the experience and skill of employees.Moreover, in order to achieve their goals, managers also have to apply the managementtools to control effectively all major relevant factors, which consist of three main factors:Object, tool and labor in which labor is crucial factor in these successes

In the past, managers applied many management tools to force his employee to workharder They punish their employees if they did not work hard and made mistakes.Additionally, managers know that their employees have to obey all orders from hismanagers while they forget encouraging them Consequently, employees become passive.They are not creative in their job, he work like machine and receive small salary from theirmanager Contrary to the managers, the employees do not know the unfair between theircontribution and the salary received

Gradually, these management is not suitable with the modern society when the employeeaware that there is a big distant between their contribution and salary and their life has a lot

of goals and must achieve it

The changes in society make managers have to change their management ways because herealized that they only can reach the goals of management when their employees workmore effectively Thus, the question for managers is “How to attract to their employees toproduce successful results?”, “Which is the way to encourage them? What are theirneeds?” Because forcing them to work harder by paying higher salary and allowance arenot suitable to current situations

In order to answers these questions, managers could not pull their employees to their sidebut they have to understand that “What is motivate factors influence directly to theiremployees?”, “What could they do to help their employees perform better in order toachieve their performance objectives?” and they may consider that “performanceappraisal” is an effective tool for his purposes?

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In this circumstance, the purpose of this part is to clearly define what motivation andmotivating are Additionally, this chapter also deals with the role of motivation andmotivating as well as relevant concepts in the organization and especially management.

1.1 The Definitions and Related Concepts of

“Motivation is defined as the desire or aspiration of people for achieving a goals combinedwith the effort to work towards the organization goals”.

(Source: Ths.Nguyen Van Diem va PGS.TS Nguyen Ngoc Quan-Giao trinh quan tri nhan luc- Dai hoc kinh te quoc dan 2006)

But according to the Business Edge (2005), Work motivation, Youth edition, Ho Chi Minhsaid that: “Motivation is the set of processes that is conscious or unconscious actions thattakes and moves a person toward expected goals”

Motivating employee

And Doctor Nguyen Khac Vien (1995), psychology dictionary, World edition, Hanoi, Heconsidered that: “Motivating is positive processes that implied conscious and unconsciousactions make a person take action and stimulate him to reap his achievements”

Thus, motivating is process of stimulation that making people implement and complete histask to reach his goals The motivating employee may be simple as presents, awards orencouraging words that make the employee solve his contradiction for himself andespecially help him take action to implement his tasks to satisfy his unsatisfied needs

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And other people said that motivating means stimulating somebody to take action byputting his desirable goals Motivating like a mean that urges and encourages somebody towork harder and more effectively Therefore, understanding employee’s felling is veryimportant for every leader Moreover, making good conditions and creating an attractiveenvironment for employees are necessary for organizations because those factors willaffect directly to their behaviors, attitudes and their desires For example, an employeeonly feels satisfied with his desires if his contributions to the organization are highlyappreciated by his manager Meanwhile, others want to work in a professional environmentwhile some others consider having friendship with their co-worker is more important.

As for manager, some people thinks that they can encourage their employees and makethem more concerned and more involved in achieving the goals of his organization Theyare also convinced by the idea that if he pays his employees more money, they aremotivated and committed themselves and working harder As a master of fact, they may beright but sometime their thinking is wrong because each employee has a quite differentneeds and desires

In order to success in human management, managers should understand their employee‘sneeds and feelings Then they have to decide which ones will be motivation for theiremployees

However, those needs and desires will be changed overtime and environment.Furthermore, in different environment those needs will also different Thus, in order toencourage the employees in their work, mangers not only need to understand these needsand desires of their employee and satisfy but also they have to timely satisfy them

Consequently, as description above, it is so complicated for the managers satisfy all theneed of employees in the organization because each of them simply has different goalswith different needs and different periods For this reason, motivating will be thecoordination tools that harmonized all desire and needs between organization and eachindividual at each actual situation It will become a system that concurrently reaches thegoals of organization and the goals of individual employee

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1.1.2 Definition of Need and Other Related

Concepts

Definitions of need

According to Doctor Nguyen Khac Vien (1995), Psychology dictionary, World Publisher,Hanoi “The need is need for existing and developing, if the needs are satisfied, they will be

comfortable and if it are shortages, they will be uncomfortable, stressful and dissatisfied”

In fact that, Need is emotional status of people The expression of need becomes theobjectives of our lives, of course everybody contends to satisfy their needs

Needs was clarified into many different levels and the definition of needs is quitedifference from one person to another The lowest level of needs is called existent need orbasic needs such as: eating, drinking…and the higher levels such as: desires for securityand stability, feeling safe from harm, the desires for self-respect and respect or recognitionfrom others In addition, people have tendency of reaching needs from lowest levels tohighest levels The desire of satisfying those needs make people change their behaviors inwork and further lead them to work hard and effectively

Moreover, the needs never stop It always change and develop to higher level or we canunderstand in difference way is that the need will go from the minimum levels to higherlevels When the basic or lower-level needs are satisfied, higher-level needs becomeoperative At that time a satisfied need is not a motivator new demands will be appear.Therefore, the needs are quite huge in our life

Therefore, Needs mobilize person taking action in order to satisfy According to “HarroldKoontz Cyril Odonnells Heinz Weihrich (1994), he said that:

Figure 1.1 The Needs - Desires - Satisfy Chain

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We can realized that, Need of each person is very different that depend on environmentaround, himself (his ambition; his desire, his goals…) in which environment is one ofmajor factor influence directly For example, a person promote at higher position that willaffect to him because it is a more new challenging to motivate him to implement all therelevant tasks and that will be encouraging others in the organization Thus, the needs isthe cause and effect of behavior systems because the satisfying this need will be themotivation for another needs and event to another persons.

1.1.3 The Role of Motivating Employees

With Employee

Job and successes have an important role in our life; it is said that people spend up to 60percent their life time for working Thus, everybody tend to have objectives for their lifeand of course they will try to find the best way to obtain them Considering that if a seedsows in the fat land, it will have a main crop more abundant than usual Similarly, if peoplework in a good condition, have motivation from managers and fellow – workers, they willget better results

On the other hand, the successes are real motivation people, that is, driving force helpspeople to overcome their difficulties easily

As a result, employee motivation is considering as a good method for manager managetheir employee And by this way, manager can support their employee in doing their tasksbetter In this case, the objectives of organization and the needs of employee will balanced

With the Organization

As mention above, organization always have objectives in the long term and short term Inorder to achieve those objectives, they establish development strategy for all relevantfactors to such as: Human resource, financial resource, marketing… and mobilize them toimplement effectively Among those factors, labor utilization emerges as one of the mostimportant elements that is the foundation for the success

Among those factors, labor utilization emerges as one of the most important elements toachieve successes of an organization Almost managers understand that employeemotivation is very necessary in long run and if they have enthusiastic, experience skillful

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employees who love their organization, the managers will get a lot of successes, because ofthe following reasons:

- Improving the prestige of leaders, attracting and preventing brain drain

- Improving the effective results and reducing the unnecessary costs

- Saving time, all works will be solved quickly and in good orders

- Satisfying needs of society as well as creativeness of employees This will becomethe strong points of the organizations that improve the image and brand name of theorganization

With the Society

As we known, a successful organization has to surmount a lot of social problems, forexample: Reducing unemployment, increasing the social welfare and eliminating socialevils… Moreover, creating more job and attract them to contribute their ability and theirknowledge to the prosperous of society as well as prosperous of organization

In addition, the organization have ever considered as the cells of economy and society, sothat a strong and developed economy will build up a model and civilized society At thesame time, a model society with peace environment also motivates employees working andpromotes employees’ abilities

1.2 Some Theories on Employee Motivation

A long time ago, there are a lot of methods of employee motivation have been developed.The study of work motivation has focused on the manager as well as the employee.Motivation theories show the way to support to manager attempting to become effectiveleaders Thus, in this research the I only want to deal with motivation as the assumptionthat individuals are motivated by satisfy his needs Content theories focus on the needs thatmotivate employee especially in their job

In fact, factors that affect work motivation include individual differences, jobcharacteristics, and organizational practices Individual differences are including personalneeds, values, and attitudes, interests and abilities that people bring to their jobs Jobcharacteristics are the aspects of the position that determine its limitations and challenges.Organizational practices are the rules, human resources policies, managerial practices, andrewards systems of an organization Supervisors must consider how these factors interact

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to affect employee job performance

There are many theories that refer to motivating people but in this research, I only focus onfour theories that refer to three aspect of motivation in working as Individual difference,job characteristic and organization practice And applied as background for my theoryfoundation and recommendations of the problems that include Maslow's Hierarchy ofNeeds; Herzberg's Two-Factor Theory; X and Y theories of Mc Gregoe

1.2.1 The Theory of Maslow’s Hierarchy of Needs

Maslow's Hierarchy of Needs Description

Maslow's Hierarchy of Needs identifies five levels of needs, which are best seen as ahierarchy with the most basic need emerging first and the most sophisticated need last.People move up the hierarchy one level at a time Gratified needs lose their strength andthe next level of needs is activated As basic or lower-level needs are satisfied, higher-levelneeds become operative A satisfied need is not a motivator The most powerful employeeneed is the one that has not been satisfied The five level of need have been described asfollow:

Level I - Physiological needs are the most basic human needs They include food, water,

and comfort The organization helps to satisfy employees' physiological needs by apaycheck

Level II - Safety needs are the desires for security and stability, to feel safe from harm.

The organization helps to satisfy employees' safety needs by benefits ‘

Level III - Social needs are the desires for affiliation They include friendship and

belonging The organization helps to satisfy employees' social needs through sports teams,parties, and celebrations The supervisor can help fulfill social needs by showing directcare and concern for employees

Level IV - Esteem needs are the desires for self-respect and respect or recognition from

others The organization helps to satisfy employees' esteem needs by matching the skillsand abilities of the employee to the job The supervisor can help fulfill esteem needs byshowing workers that their work is appreciated

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Level V - Self-actualization needs are the desires for self-fulfillment and the realization

of the individual's full potential The supervisor can help fulfill self-actualization needs byassigning tasks that challenge employees' minds while drawing on their aptitude andtraining

Figure 1.2 Hierarchy of Needs

(Source: Business Edge (2005), Work Motivation, Youth Edition, HCM)

The affect of Maslow’s Hirarchy of Needs to motivating employees

Through the Maslow’s Hirarchy of Needs, the manager plans to develop his management

tools to match with each group as well as each employee in an organization Because, eachperson has different potential needs and if his needs are not satisfied, it will be affected tohis behaviors Especially, if he has an ambition of promoting to a higher position, he willtry to reach it by working harder Obviously, he will contribute more to the prosperous ofhis organization Moreover, when his need is satisfied, it will not become his motivation.Take the advantage of this case, manager always has maintaining the method in order toencourage his employees who think that they can try his best to satisfy his need.Consequently, manager can reach two goals at the same time: the respect of employees andthe objective or organization, as many people said that “killed two birds with one stone”

Besides, we can recognize that each of us have very different levels needs in differentcircumstances In addition, besides money they received from their work, they also want to

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be respected, to have the right to communication, and have more power… So that themanager should understand what is employees’ needs in order to satisfy and motivatethem Such as:

Physiological needs: (Such as food, sleep, home ): This is the basic needs to maintain

their life Especially, According to Maslow, if these needs are not satisfied at the necessarylevel, others needs shall not be considered And with the employee salary and allowancethey received, they have to pay for all factors the related physiological needs

Safety needs (security of body, of employment, of family…): These needs derived from the

desire to self- protection from other threads or harms With the employee these needs isincluding: health care, social assurance, unemployment benefit …etc All the benefit fromorganization will make them fell safe when they work Many organizations not only careabout the employee but also their family members especially health assurance services,travel services

To love/belonging (social need): These needs derive from inherent desire is belonging to

each group in the community Thus, Develop a strong organization in order to encourageits employee is imperative and highly appreciated Beside the needs of existence and safeemployee also need to be in love, in good relationship (family relationship, friendlyrelationship, colleague relationship…) They want to feel as a part of their family, theirfriend group or their organization

Esteem: When they satisfied the needs of physiological, safe and to be love, they tend to

want to be respected and esteem in their organization These needs will motivate thepeople to have more power, more prestige and status in the society Especially, whenmanager give responsibilities to employee to do their tasks, it means that the managerhelps them to express their ability and their confident in the organization Moreover, themanager needs to have equality behavior with their employee and respect their employeeideas

Self-actualization: These needs motivate people try to do self-improvement In this case,

the manager helps their employees fell that they can control their tasks by themselves andthey have opportunities to solve harder tasks as well as they has career opportunities

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development

1.2.2 The Theory Herzberg’s Two-Factor

Herzberg's Two-Factor Theory Description

Herzberg's Two-Factor Theory describes needs in terms of satisfaction and

dissatisfaction Frederick Herzberg examined motivation in the light of job content andcontest Motivating employees are a two-step process First, provide hygiene and thenmotivators One continuum ranges from no satisfaction-to-satisfaction The othercontinuum ranges from dissatisfaction to no dissatisfaction

Figure 1.3 Two Factors of Need

(Source: Work an the Nature of Man, Crowell Publications 1966)

Satisfaction comes from motivators that are intrinsic or job content, such as achievement,recognition, advancement, responsibility, the work itself, and growth possibilities

Herzberg uses the term motivators for job satisfiers since they involve job content and the

satisfaction that results from them The relationship between all the motivator factors asabove could be explained as follows: The measure of employees’ happiness with hisachievement depends on the recognition, the result of work Moreover it depends on thework itself and the responsibility with their work Moreover, the more responsibility thoseemployees have the more satisfaction of the employee feel The motivators has considered

as improvement and self actualization of employees Thus, they are necessary forsubstantial improvements in work performance and move the employee beyond

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satisfaction to superior performance Motivators correspond to Maslow's higher-levelneeds of esteem and self-actualization.

Dissatisfaction occurs when the following hygiene factors, extrinsic or job context, are notpresent on the job: pay, status, job security, working conditions, company policy, peer

relations, and supervision Herzberg uses the term hygiene for these factors because they

are preventive in nature They will not produce motivation, but they can preventmotivation from occurring Hygiene factors can be considered job stay-ons because theyencourage an employee to stay on a job Once these factors are provided, they do notnecessarily promote motivation; but their absence can create employee dissatisfaction.Hygiene factors correspond to Maslow's physiological, safety, and social needs in that theyare extrinsic, or peripheral, to the job They are present in the work environment of jobcontext

Motivation comes from the employee's feelings of accomplishment or job content ratherthan from the environmental factors or job context Motivators encourage an employee tostrive to do his or her best Job enrichment can be used to meet higher-level needs Toenrich a job, a supervisor can introduce new or more difficult tasks, assign individualsspecialized tasks that enable them to become experts, or grant additional authority toemployees As we referred above, we can compare the interrelation between Maslow’sHierarchy of Needs and Herzberg’s Motivation Hygiene Theory as follow:

Figure 1.4 The Interrelation between Needs and Motivational Factors

(Source: Harold Koontz, Cyril Odonell, Heinz Weihrich (1994), Core Issues of

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Management, Science and Technology Publishing House, Hanoi).

1.2.3 The Theory X; Y of Mc Gregor

Douglas McGregor said that almost management decision always being affected by the thinking of people, he has two assumptions that:

- They do not want to work If they had a choice they would not want to committhemselves to work for the employer in the employer's time They avoid itwherever possible Basically they are self-interested and prefer leisure rather thanworking for someone else

- Because of this, the manager have to use the management tools like pushing andmore direction and control so that they apply adequate effort towards what has to

be achieved Even though he have to provide good rewards - many of their staff arestill disinclined to apply consistently the kinds of effort the organization needs.Many accept the rewards, complain that they need more and yet behave in waysthat are less than fully committed

- Indeed most people prefer to be directed They do not really wish to carry theburden of responsibility indeed they tend to avoid this They have little ambitionand prefer a secure, steady life

McGregor felt that such managerial views led to behaviors and organizational systemswhich relied on rewards, promises, incentives, close supervision, rules and regulations,even threats and sanctions all designed to control workers

Opposite with the assumption of theory X, McGregor believe that If we given the rightconditions for employees, their application of physical and mental effort in work is asnatural as rest or play Work is play, offers satisfactions and meaning

There are alternatives to reliance on external controls, pushing and threats - implied or real.These are not the only means for linking individual effort with organizational objectives Ifpeople feel committed, they will exercise self-direction and self-control in the service ofthe firm's objectives

Their objectives will complement the firm's and commitment is a function of the "intrinsic"rewards associated with their achievement i.e not just extrinsic rewards/punishments

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The affect of Theory X; Y of Mc Gregor to motivating employees

In fact that, many manger use alternative between Theory X and Y based on thecharacteristic of job and their management opinion If the manager believes in himself and

he tend to control all his business, he will apply the theory X in their management way and

he will take action like:

- He himself making decision and never deal with other thinking

- To reach the goals by punishment ways or working in high pressure

- He has high demand with his tasks

- He dislikes lazy and sometime he uses punishment to manage

- He dislikes being criticized

But if the manager have trend to give the power his employee that mean he believe himselfand his employee He hopes that they will reach the goal from their team effort in a goodperformance without controlled and managed He will take his action like:

- Making decision by deal with other thinking and sometime give the power othersand believe on the decision

- Encouraging self-direction and self –control in his task

- Taking opportunities to their employee to develop their skills

- Encouraging working in team and group

As above, I think that each theory has good and bad point that leader can apply the toolsthat they think effectively and appropriated with their business environment In general,applying which management tool depends on the objects, characteristic of employee andmanager as well as situation of the organization

1.3 Analyzing the Factors Affect to Motivating

Employees

Motivating is one of the important methods that most managers always flexibly applied.However, the method of each organization will not be applied at the same way Collectingand applying for difference organization depend on its operating characters, feature oflabor as well as other relevant features of the organizations However, motivating generallyall the methods are applied rely on 3 groups that the author want to clarify, these methods

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In general, the 3 groups above will be clarified in to each factors as follows:

1.3.1 Policies and Management Mode

Each organization has its own plan and strategy that suits with its objectives In order toreach these objective, all the elements have to unify and do not conflict with each other Itmean that management tool system that is completed, sufficient, unified and equal toeverybody in the organization, simultaneously these regulations have to implement strictlyand consistently

Additionally, the manager needs to take care and adjust his management tools forcorresponding to the circumstances and the objectives of the organization It will be reachits goals if the manager understands and manage his organization base on many generalprincipals as follows:

- Encouraging the employee self – direction and self –control and self assessment

- Unifying the objectives of employee and organization

- Helping the employee understands that they will receive benefits which areequivalent to what he have done (the more it is for the employees, the moreemployee are benefited)

- Respecting with employee’s ideas that will be dealt with when the managermaking decision in his business

- Encouraging employees to form team works

- Willing support when the employee faces the difficulties

It is obviously to see that these policies of the organization will firstly and directly affect

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the employee Thus, that is why employees always desires to have an advantaged andfavorable policies that encourage themselves to complete their work.

1.3.2 Compensation and Other Benefits

This is one of aspects related to the physiological needs However, in general that is thefactors that convince the employee work closely together for a long to keep them all themore faithful to the organization The compensation and benefits policies need to be inlinewith the results Because almost the employees are usually compare with each other notonly among the employee in the organization but also other organizations and the averagegeneral society As a result, it will have impact on keeping the policies of the organization

Therefore, the compensation and benefits policies in the organization should be ensuredthe fairness and equity between employees (it will be assessed base on the contribution ofthe employee at difference levels and positions) Because from this issues the employeewill assesses themselves in his organization It will become the factor that encourages theemployees strive to complete his performance

1.3.3 The Working Conditions

Working conditions plays an important role in encouraging the employee Among themworking relation is a key element If the employees have a good relationship at work withall their managers and partners, they will definitely have a better cooperation Therefore,they easily overcome challenges and difficulties that they have to face Besides, anothervital factors affect the employee motivation is working environment Environmentalworking condition here not only aims to atmosphere at the workplace, it also mentions toother facilities work such as equipments, place, social and health assurance that theemployees felt safety when he is the member of this organization and he have peace ofmind to complete his tasks

1.3.4 The Organization Culture, Information System and Relationships

Organizational culture is one of elements motivating employees That element can makethem enjoy his job and love his organization In fact, these factors affects to the social need

of employee Therefore, managers need to understand and create specific culture in the

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organization, for instance:

- Developing the relationship between managers with his employee as well as therelationship among the employees such as polite character, respective, credible…

- Developing the pride with of the job and the organization

- Developing the cooperation, friendliness culture between employees as well asemployees and manager

- Overcoming the difficulties, challenges and sharing failures

- Creating an information system in the organization to ensure that all theinformation related can be informed to the employee on time Moreover, theinformation system can help the employees’ show his ideas and feedback to hismanager And then the manager can discuss and explain his opinion to hisemployee easily

- Besides, creating the direct information system is necessary, that mean theinformation between employee and his manager always contact So that managercan understand and encourage his employees timely Moreover, the performancecan run smoothly

1.3.5 Monitoring and Evaluation of Managers

Monitoring and evaluation (M&E) of manager play an important role in management.However, monitoring and evaluation of manager plans need to be based on the regulationsthat the manager gives more self actualization for his employee By this way, theemployees will fell be respected and self–creative is his tasks

In order to implement this role, the manager should discuss with his employees the way tomanage such as making periodical report to the manager, discussing the way to solve ofdifficulties and sharing the result of each steps of the task…etc

1.3.6 Training and Development Opportunities

According to Herzberg, Training and development opportunities are factors that influencedirectly on the motivation This assessment is very suitable with young employees whenthey consider having more opportunities to raising awareness and to improve their skillsand experience through training opportunities In order to satisfy their employees the

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manager should do:

- Improving employees’ skills through training opportunities are very necessary andimportant in the organization That is, encouraging source for employee has activewith his job; moreover, when they have skills they will complete their job withbetter results and achievements for the organization

- In many cases, employees will fell that they have been respected and they have animportant position in their organization Thus, the manager will keep theiremployee to faithful to the organization and they will contribute more their ability

to the organization successes

- Besides, Manager should assign the task for right employees with his provedcapacity and his skill In many cases, the manager should ask for some additionalinstantly task that help employee can expose his ability and competence in histask

- Supporting employees overcome obstacle and difficulties The manager shouldencourage the employees when they make mistakes, avoid using strict punishmentpolicies to make all things better

1.3.7 Self Actualization and Awarding the Employee Achievements

Employee development often is considered as a key factor to the employees to drive them

in career development It helps the employees have motivation at work because of thepromise promotion or a clear myth of development Nowadays, young generation realizes

it earlier and it also helps them to have a quick successes

Reward and Recognition will make the employee satisfied when the employer takes thosefactors as a priority in promoting the employees Sometimes, those factors are “hot” or

“immediate” encouragements or complements to maintain the employee’s loyalty andefforts at the best

1.3.8 Extra- Activities

Beside completing the tasks, the extra –activities play an vital role in the organizationenvironment as well as the enthusiastic of employees in accomplishing their tasks as party

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committee‘s activities, Youth‘s activities or clubs in organization In addition, theseactivities will mobilize employees and these activities will help the employees haveopportunities to understand each other

All the factors referred above will have a direct impact to employees in organization Theyare satisfied, dissatisfied the factors of motivating employee And in general all thesefactors have been focused by managers and adjusted for more convenient in organization.According to the Jane- Boucher, he has summarized all the above factors asMOTIVATION definition in organization as follows:

- Maximize employee potential;

- Offer opportunities for growth;

- Trust employee;

- Tie employee in company decision;

- Value employee differences;

- Allow for mistake– and support when they face difficulties;

- Throw away threats, punishment and fear;

- Encourage through praise and reward

(Jane Boucher-2006 “How to love the job you hate”, http:www.iee.org)

Motivation is the set of processes that is conscious or unconscious actions that takes andmoves people toward their expected goals Motivation plays an important role not only inindividuals but also in the successful organization

There are many theories refer to motivation, however, most of them based on the general

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principle “People have trend to satisfy his needs from the low level to higher levels.

The Maslow theory: identifies five levels of needs, which are best seen as a hierarchy with

the most basic need emerging first and the most sophisticated need last People move upthe hierarchy one level at a time

The Herzberg theory: Describes needs in terms of satisfaction and dissatisfaction.

Frederick Herzberg examined motivation in the light of job content and contest.Motivating employees is a two-step process First, provide hygiene and then motivators.One continuum ranges from no satisfaction-to-satisfaction The other continuum rangesfrom dissatisfaction to no dissatisfaction

The Mc Gregor: He believe that almost management decision always being affected by

the thinking of people, The theory X: At the managerial views led to behaviors andorganizational systems which relied on rewards, promises, incentives, close supervision,rules and regulations, even threats and sanctions all designed to control workers Otherwhile, the theory Y considered that: If we given the right conditions for employees, theirapplication of physical and mental effort in work is as natural as rest or play Work is play,offers satisfactions and meaning

According to all the theories referred, I want to draw out the groups of factor impactdirectly to the motivating employee in an organization as follows:

1 Individual differences are the personal needs, values, and attitudes, interests andabilities that people bring to their jobs

2 Job characteristics are the aspects of the position that determine its limitations andchallenges

3 Organizational practices are the rules, human resources policies, managerialpractices, and rewards systems of an organization Supervisors must consider howthese factors interact to affect employee job performance

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Chapter 2 Analyzing the Current Situation

of Motivating Employees at CPCD

2.1 Overview of MOLISA and CPCD

2.1.1 Overview of Ministry of Labor, Invalids and Social Affairs

The Ministry of Labor, Invalids and Social Affairs is a Governmental body, performs theState management function on the areas of: employment, vocational training, labor, salary,social insurance (compulsory social insurance, voluntary social insurance andunemployment insurance), occupational safety, the People with Special Contribution to theCountry, social protection, children protection & care, gender equality, social evilprevention (herein after referred to as the area of labor, the People with SpecialContributions to the Country and social affairs), in the whole country; and exercises theState management role to the sector of public services within the responsible scope of theMinistry

With the overload of functions and responsibilities, Ministry of labors, Invalids and socialaffairs have been set up with:

State management Agencies, including: Department of Labor and Salary; Department of

Social Insurance; Department of International Cooperation; Department of GenderEquality; Department of Planning and Finance; Department of Legal Affair; DepartmentPersonnel and organization; Inspectorate; Ministry Office; Department of oversea Labor;Department of occupational Safety and Health; Department of the people with specialcontribution to the country; Department of social Evil prevention; Department ofEmployment; Department of social protection; Department of Child care and protection;Directorate of vocational and training and The Management Board of Labor Abroad

Functional Units, including: The Institute of Labor and social Affairs; The orthopedic –

Rehabilitation Institute; Labor and Social Magazine; Labor and social Affair Informationcentre, Labor and Social Newspaper; Labor and social Magazine, Training school ofofficial, Civil servant on labor and social affairs

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Public service organization: National Institute for Vocational training; University of Labor

and Social Affair; Vocational College of technology; Oversea worker centre; TrainingCentre for Occupational Safety and Health; Technology Centre for orthopedic andRehabilitation; Centre of Industrial Safety Registration; Centre of Rehabilitation andAssistant for Disable Children; Guest House for People with special contribution to thecountry

Local Department: The DOLISA at 64 provinces in the whole country.

Figure 2.1 The Structure of MOLISA

Management Board of MOLISA (Minister and Vice Minister)

Management Board of MOLISA (Minister and Vice Minister)

Local Department

DOLISA at 64 provinces

Department of Labor and

Vocational College of technology

Oversea worker centre

Guest House for People with special contribution to the country

University of Labor and Social Affair

Department of Gender

Equality

Training Centre for Occupational Safety and Health

Centre of Industrial Safety Registration

Technology Centre for orthopedic and Rehabilitation

Labor and Social Magazine

Labor and Social Newspaper

Training school of official

Civil servant on labor and social affairs

Centre of Rehabilitation and Assistant for Disable Children

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2.1.2 Child Protection and Care Department

The foundations of Child Protection and Care Department

In order to reduce overlapping in missions and functions between all the Governmentalagencies, at the session 12 of National Assembly have decided to reform the Governmentstructure for adapting with the new stage of the country This reform has the target toutilize organization mode of the Governmental Agencies

Therefore, at the Resolution No 01/2007/QH12 on 31st July 2007 of National Assembly forrestructuring the Government organization; and the decision no 1001/QD-TTg on 8th

August 2007 of implementing the Resolution, Committee of Population, Family andChildren as well as all the Governmental agencies have been reformed the organizationstructure The population’s area of Committee of Population and Children has been merged

to Ministry of Health (MOH) and the family area joint to the Ministry of Culture, the Sportand Tourism (MCST), while the rest joined to Ministry of Labor, Invalids and SocialAffair (MOLISA)

In which, the child protection and care area has been organized CPCD and became the one

of the Administration Agencies of MOLISA Many Department of Committee ofPopulation, Family and Children including the Children Department, National Funds forChildren, Family and Children newspaper; Center of Consulting and CommunicationDepartment and Project Management Unit Viet Nam-UNICEF became the Units of CPCD

On 15 December 2007, Prime minister has released the decree No 186/2007/CN-CPdefined that The Ministry of Labor - Invalids and Social Affairs is a Governmental body,performs the State management function on the areas of: employment, vocational training,labor, salary, social insurance (compulsory social insurance, voluntary social insurance andunemployment insurance), occupational safety, the People with Special Contribution to theCountry, social protection, children protection & care, gender equality, social evilprevention (herein after referred to as the area of labor, the People with SpecialContributions to the Country and social affairs), in the whole country; and exercises theState management role to the sector of public services within the responsible scope of theMinistry

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