Creating work motivation for sales staffs at truong hai automobile joint stock company

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH --- NGÔ THỊ HIỀN CREATING WORK MOTIVATION FOR SALES STAFFS AT TRUONG HAI AUTOMOBILE JOINT STOCK COMPANY TẠO ĐỘNG LỰC LÀM VIỆC CHO NH

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH

-

NGÔ THỊ HIỀN

CREATING WORK MOTIVATION FOR SALES STAFFS AT TRUONG HAI AUTOMOBILE JOINT STOCK COMPANY

TẠO ĐỘNG LỰC LÀM VIỆC CHO NHÂN VIÊN KINH DOANH

TẠI CÔNG TY CỔ PHẦN Ô TÔ TRƯỜNG HẢI

LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH

HÀ NỘI - 2019

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH

-

NGÔ THỊ HIỀN

CREATING WORK MOTIVATION FOR SALES STAFFS AT TRUONG HAI AUTOMOBILE JOINT STOCK COMPANY

TẠO ĐỘNG LỰC LÀM VIỆC CHO NHÂN VIÊN KINH DOANH

TẠI CÔNG TY CỔ PHẦN Ô TÔ TRƯỜNG HẢI

Chuyên ngành: Quản trị kinh doanh

Mã số: 60 34 01 02

LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH

NGƯỜI HƯỚNG DẪN KHOA HỌC: PGS.TS NGUYỄN NGỌC THẮNG

HÀ NỘI - 2019

DECLARATION

The author confirms that the research outcome in the thesis is the result of author’s independent work during study and research period and it is not yet published in other’s research and article

The other’s research result and documentation (extraction, table, figure, formula, and other document) used in the thesis are cited properly and the permission (if required) is given

The author is responsible in front of the Thesis Assessment Committee, Hanoi School of Business and Management, and the laws for above-mentioned declaration

Date………

LỜI CẢM ƠN

I would like to express my deep gratitude to the Associate Professor - Dr Nguyen Ngoc Thang, who kindly guided and instructed me during the research and completion of this thesis

Thank you very much to all the Hanoi school of Business and Management, Vietnam National University, Hanoi for their dedicated teaching and knowledge transfer during the MBA course

Thank you sincerely to all colleagues, business staff, managers at Truong Hai Automobile Joint Stock Company for facilitating and supporting me in the process

of collecting research data

Wishing you all teachers, all your brothers and sisters with lots of health, lots

of success in work and in life

Sincerely thank!

Date………

Ngô Thị Hiền

TABLE OF CONTENTS

LIST OF TABLE i

LIST OF FIGURE ii

INTRODUCTION 1

CHAPTER 1: THEORY FRAMEWORK ON WORK MOTIVATION, FACTORS AFFECTING THE EMPLOYEES’ WORK MOTIVATION 9

1.1 Concepts on work motivation 9

1.2 Concept on work motivation: 9

1.3 Necessity of motivating employees 10

1.4Work motivation-related theories 11

1.4.1 Abraham Maslow's need theory 11

1.4.2 F Herzberg's two-factor theory 12

1.4.3 Skinner's Reinforcement Theory of Motivation 14

1.4.4 John Stacey Adams' equity theory 14

1.5 Factors affecting the employees’ work motivation 16

1.5.1 Job attractiveness 16

1.5.2 Promotion opportunities and training 16

1.5.3 Work relationship 17

1.5.4 Income 17

1.5.6 Award and recognition policy 20

1.5.7 Working environment 20

1.5.8 Brand and corporate culture 20

1.5.9 Leaderships style 21

1.6 Some enterprises’ experience in work motivation and lesson for Truong Hai Automobile Joint Stock Company 22

1.6.1 Experience of Sai Gon Mechanical Electrical Joint Stock Company 22

1.6.2 Experience of Coca-Cola Beverages Vietnam Limited 23

1.6.3 Lesson for Truong Hai Automobile Joint Stock Company 24

CHAPTER 2: RESEARCH METHODOLOGY 26

2.1 Research methodology 26

2.1.1 Questionnaire survey method 26

2.1.2 Questionnaire design 26

2.1.3 Survey and data collection 27

2.1.4 Interview method 27

2.1.5 Data processing method 27

2.2 Research process 27

2.3 Study assumption 27

2.4 Scale design 28

CHAPTER 3: EXISTING STATUS OF MOTIVATING SALE STAFF IN TRUONG HAI AUTOMOBILE JOINT STOCK COMPANY; MAIN FINDINGS 35

3.1 Introduce of Truong Hai Auto Corporation 35

3.1.1 Overview of Truong Hai Auto Corporation 35

3.1.2 Development process 35

3.1.3 Vision 36

3.1.4 Mission 36

3.1.5 Development strategy milestones 36

3.1.6 Business philosophy 37

3.1.7 Business model 38

3.1.8 Organizational structure 39

3.1.9 Business performance results 40

3.2 Existing status on work motivation of sale staff 41

3.2.1 Salary and salary-based allowances 41

3.2.2 Bonus salary 43

3.2.3 Treatment and welfare regulations 44

3.2.4 Training 47

3.2.5 Promotion opportunities 48

3.2.6 Working environment and corporate culture 49

3.2.7 Work relationship 50

3.3 Main findings 50

3.3.1 Gender characteristics 50

3.3.2 Age characteristics 51

3.3.3 Qualification characteristics 51

3.3.4 Service length characteristics 52

3.3.5 Income characteristics 52

3.3.6 Statistics of factors affecting the work motivation 53

3.4 Contributions of the study 63

CHAPTER 4 65

RECOMMENDATIONS ON IMPROVING WORK MOTIVATION FOR SALE STAFFS AT TRUONG HAI AUTOMOBILE JOINT STOCK COMPANY 65

4.1 Income and welfare 65

4.1.1 Income 65

4.1.2 Welfare 67

4.2 Award and recognition policy 67

4.3 Job attractiveness 68

4.4 Promotion opportunities and training 68

4.5 Leadership style 69

CONCLUSIONS 70

LIST OF REFERENCES 72

LIST OF TABLE

Table 2.1: Personal data 29

Table 2.2: Job attractiveness scale 29

Table 2.3: Promotion opportunities and training scale 30

Table 2.4: Work relationship scale 30

Table 2.5: Income and welfare scale 31

Table 2.6: Award and recognition policy scale 31

Table 2.7: Working environment scale 32

Table 2.8: Brand and corporate culture scale 32

Table 2.9: Leadership style scale 33

Table 2.10: Employees’ work motivation scale 34

Table 3.1: Sale staff’s evaluation on job attractiveness 53

Table 3.2: Sale staff’s evaluation on promotion opportunities and training 54

Table 3.3: Sale staff’s evaluation on work relationship 55

Table 3.4: Sale staff’s evaluation on income and welfare 56

Table 3.5: Sale staff’s evaluation on award and recognition policy 57

Table 3.6: Sale staff’s evaluation on working environment 58

Table 3.7: Sale staff’s evaluation on brand and corporate culture 59

Table 3.8: Sale staff’s evaluation on leadership style 60

Table 3.9: Work motivation and working attitude of employees 62

Table 4.1: KPI for evaluating sales activities 66

LIST OF FIGURE

Figure 1.1: Maslow’s hierarchy of needs 11

Figure 1.2 Two-factor theory 13

Figure 2.1: Survey and investigation procedure 26

Figure 2.2: Factors affecting the employees’ work motivation 28

Figure 3.1: Labor structure by gender of sale staff 50

Figure 3.2: Labor structure by age of sale staff 51

Figure 3.3: Labor structure by qualification 51

Figure 3.4: Labor structure by service length 52

Figure 3.5: Labor structure by income 52

INTRODUCTION

1 Rationale

Human resources are always the most valuable asset of each enterprise In the globalization and economic integration trend, the competitive environment among enterprises has become increasingly severe, requiring enterprises to pay attention to building, developing and training human resources in order to improve their qualification and bring about high work efficiency Work motivation is one of the key determinants of human resources development in every enterprise When the enterprise creates high work motivation for staffs, they will be passionate, inquisitive, creative and willing to contribute to the Enterprise On the contrary, if they do not have motivation, they will work with a modest attitude and not show their maximum ability, leading to lower work efficiency and affecting the overall goal of the Enterprise

In fact, Enterprises have been creating different work motivations for employees However, there are still many inadequacies and their working conditions have not satisfied the requirements of employees, the welfare system is not satisfactory and the working environment is still limited Enterprises attach importance to profits and development objectives but they neglect to encouraging and motivating employees to work and devote all their abilities and capabilities to work for the development goals of the Enterprise

Truong Hai Automobile Joint Stock Company is a leading corporation in Vietnam specializing in manufacturing, assembling and distributing coaches, trucks, buses and also the Number 1 enterprise among Top 500 largest enterprises in Vietnam in 2017 In the current automobile market with increasingly fierce competition between car manufacturers to achieve sales targets, in addition to building and expanding the sales system nationwide, improving the quality of products and services, the car manufacturers also pay attention to reward and welfare policy; training and development of staffs Truong Hai Automobile Joint Stock Company has also paid much attention to building, training and changing

many policies, reward regimes and benefits to encourage, develop and retain sales staffs for 3 recent years However, the sales staffs’ resignation rate is still quite high, up to 40% per year In the above situation, I decided to choose the theme

“Creating work motivation for Sales staffs at Truong Hai Automobile Joint stock company” with the desire to create higher motivation for its employees and help it grow drastically and achieve its strategic objectives in business activities

2 Literature review

Creating work motivation for staffs is one of the factors that have a great impact on the work efficiency as well as the achievement of the goals of an enterprise Motivated employees will be aware of the work they are doing, work hard, love their job and commit to working for the enterprise in a long-term, constantly strive to study and improve their skills, research and find out the ways to

do work effectively

The world’s famous motivation doctrines are:

- Abraham Maslow’s demand theory

- Frederick Herzberg’s two elements theory

- Victo Vroom’s expectation theory

- Stacy Adam’s Justice Theory

These doctrines have been applied in many areas of social life from economics, military, medicine and many other fields

In Vietnam, there are also many monographs, research works, dissertations, scientific articles on work motivation creation such as:

Nguyen Van Diem, Nguyen Ngoc Quan (2015), “Human Resources Management” Textbook, Hanoi National Economics University Publishing House The textbook gives an overview of human resources management; human resource planning and arrangement; work motivation creation; development and evaluation

of human resources; remuneration and benefits; wage and salary management; financial incentives; labor relations; safety and health for workers

Le Thanh Ha, Nguyen Thi Hong, Nguyen Ba Ngoc, Pham Ngoc Thanh (2012), “Human Resources Management” textbook, Hanoi University of Labor and

Social affairs Publishing House The textbook covers the basic issues of human resources use, work motivation creation, human resources training and development Remuneration and welfare for employees and the contents of labor relations in the organization

Vu Thi Uyen (2008), “Creating motivation for managers in state-owned enterprises in Hanoi until 2020” PhD dissertation, National Economics University The dissertation emphasized the role of managers in the enterprise and motivation creation for managers; Analyzed the current status of motivation creation for managers in some enterprises in Hanoi City; thereby giving some solutions to motivate managers in enterprises.”

Nguyen Thi Phuong Lan (2015), “Improving the motivation creation tools for civil servants in state administrative agencies”, PhD dissertation in Public Management, National Academy of Public Administration The dissertation has studied the published scientific works related to motivation creation for staffs in organizations in general and civil servants in the State administrative agencies (SAA) in particular; analyzed and evaluated these scientific works to point out the strengths, weaknesses and gaps in research to build the scientific bases for the theme; researched the current status of work motivation creation for civil servants in the State administrative agencies in Vietnam from 2001 to present; Proposed solutions to improve the work motivation creation tools system for civil servants in the State administrative agencies

Nguyen Thi Phuong Dung (2016), “Work motivation of office staffs in Vietnam”, PhD dissertation, University of Economics, Ho Chi Minh City The author has discovered and measured the factors that make up work motivation of office staffs in Vietnam; Determined the impact of the staffs’ perceptions and beliefs in the organizations and informal relationships at the workplace on work motivation; Developed and tested a theoretical model of the relationship between work motivation and behavioral outcomes based on the social context in Vietnam; Verified the difference in work motivation based on personal characteristics, geographic location and working area The test results of the theoretical model

showed that belief in an organization has a very great influence on the behavioral outcomes of employees In addition, the research also indicated that personal relationships altered the relationship between organizational beliefs and work motivation of employees It not only impacted directly behavioral outcomes but also indirectly through motivation Meanwhile, the previous research suggests that financial rewards are an important factor motivating employees to work This finding contributes to and brings about a new view of scientific theory that not only financial policy but also other factors such as employee’s belief in the organization play an important role in creating their work motivation

Some scientific articles:

Truong Minh Duc, Application of the quantitative model to assess work

motivation creation for employees of ERICSSON Limited Liability Company in Vietnam, Science Journal, Vietnam National University, Hanoi- University of

Economics and Business dated July 02, 2011 The author shows that the effective management and use of labors is always a top concern of Vietnamese enterprises at present The recruitment and arrangement of the right people and the right work is very important but encouraging, motivating and creating work motivation for employees to maximize their intellectual ability is the most critical issue in the use

of labors To motivate employees, managers need to understand their work needs, for what they do work, what motivates them to work hard, thereby finding out the appropriate ways The articles focuses on four key issues: (i) the theoretical issues

of motivation creation, (ii) the research methods for the practical problems of the enterprise, (iii) the regression model survey and (iv) the conclusions and recommendations By applying Maslow’s five needs theory to assess motivation creation for staffs in the Company, the author built the application model

Ngo Hai Anh, some motivational factors for lecturers of Ho Chi Minh

National Academy of Politics, Journal of Political Theory dated July 26, 2016 The

author’s research briefly gives the concepts of motivation, motivation creation for staffs in the organization as well as factors affecting motivation creation for staffs in the organization However, Ho Chi Minh National Academy of Politics is a highly

academic environment with high-quality human resources in society The character

of this environment is training leaders and researchers of political theory, guidelines and policies of the Party and the State Lecturers and researchers are those who directly teach and do scientific research Thus, the author proposes a number of motivational solutions for the workforce at the Academy with particular characteristics To create motivation, the following factors should be considered: income, work, working environment, promotion; for example, for the Academy’s environment, the development of qualifications (academic titles, degrees), the lecturers’ scientific capacities Therefore, it is necessary to create favorable conditions in terms of mechanisms and policies for lecturers and scientists to improve professional qualifications in research

Generally, the researches and articles on work motivation creation refer only

to the most common issues or to one aspect of the issue Some macro-level studies have a wide range of one industry Some researches focus on one or more tools or factors that influence motivation of staffs There are also some researches into creating motivation for civil servants in state agencies in different professions such

as lecturers and state enterprises

In different organizations, motivational tools for employees are also influenced by factors inside and outside the organization Besides, there are currently no researches into creating work motivation for staffs at Truong Hai Automobile Joint Stock Company On that basis, the thesis will inherit the achievements of the previous researches and focus on this work to apply directly to Truong Hai Automobile Joint Stock Company Therefore, the study into “Creating work motivation for sales staff at Truong Hai Automobile Joint Stock Company” is necessary and doesn’t completely coincide with the published researches

- Analyze and assesse the current status of creating work motivation for sales staffs at Truong Hai Automobile Joint Stock Company

- Identify the factors that affect the work motivation of sales staff at Truong Hai Automobile Joint Stock Company

- Propose solutions and recommendations to increase work motivation for staffs and bring efficiency to the Company in the next time

+ Secondary data: from 2014 to 2017

+ Primary data: investigation, survey from June 2018 to July 2018

6 Research methods

6.1 Theory research

Using the methods of analyzing, synthesizing, systematizing materials directly or directly related to motivation and motivation creation to find out the basic materials for forming the theoretical frameworks, theoretical points, arguments and making the conclusions about the research issue

basis of focusing on the factors that influence work motivation and job satisfaction, including salary, bonus, welfare, working environment, training and development opportunity

Number of questionnaires: 150

Conduction time: from 6/2018 to 7/2018

Quantitative results from the questionnaire survey are used as the basis for analyzing and evaluating the work motivation of sales staff in the company

6.2.2 Interview

The interviews are conducted with two subjects who is a resigned sales staffs and a sales staffs working for the Company to clarify what the questionnaire did not fully reflect as the basis for demonstrating the quantitative data obtained

6.3.3 Methods for collecting and processing information

 Secondary information and data:

+ Statistics reported from departments of Truong Hai Auto Joint Stock Company + Methods of analysis synthesized from textbooks, documents, master's theses, doctoral theses, books, magazines and internet media

 Primary information and data:

Primary data is collected through questionnaires, consulted by officials and employees who have been working at Truong Hai Automobile Joint Stock Company, written by the author The questionnaire is designed to include questions directly related to the work of motivating employees The questionnaire is divided into 2 parts: Part 1 aims to identify some personal information for statistics by gender, by age, by education level; Part 2 aims to collect ideas related to work motivation for employees in the Company through 8 factors: attractiveness of work, promotion and training, income and welfare, leadership style, corporate culture brand, relationship in work, working environment, reward recognition

 Data processing methods:

Data collected will be classified, analyzed - synthesized; analysis - compare to summarize results

The author uses the method of general analysis to generalize the theoretical content related to research and give opinions and comments for this research

The comparative method used by the author to clarify the difference of the object of study between periods

Statistical methods are used to analyze data The results were obtained from the questionnaire, after being checked and cleaned, the data were transferred to Excel software to synthesize, tabulate, graph and analyze information The analytical method is based on the percentage of each feedback on the given question Thereby,

it is possible to evaluate the work of creating direct labor motivation of the Company and thereby highlight the advantages and limitations, and propose solutions to overcome limitations

7 Expected design of the thesis

The thesis consists of 3 chapters:

Introduction: Rationale, literature review, research objectives, research objects, research scope, research methods

Chapter 1: Theory framework on work motivation, factors affecting the employees’ work motivation

Chapter 2: Research Methodology

Chapter 3: Existing status of motivation sale staff in Truong Hai Automobile Joint Stock Company; main findings

Chapter 4: Recommendations on improving work motivation for sales staffs

at Truong Hai Automobile Joint Stock Company

Conclusion: Conclusion

List of Tables

References

CHAPTER 1 THEORY FRAMEWORK ON WORK MOTIVATION, FACTORS AFFECTING THE EMPLOYEES’ WORK MOTIVATION

1.1 Concepts on work motivation

Nguyen Van Diem, M.A and Assoc.Prof.Dr Nguyen Ngoc Quan shared that

“Work motivation is defined as the worker’s desire and willingness to improve the efforts to fulfill the organization’s objectives.”

PhD Bui Anh Tuan from the National Economics University unveiled that:

“Work motivation is known as internal factors, motivating the persons to actively work in the allowable context to generate high performance and effectiveness.” Motivation is demonstrated by willingness, efforts and work passion to fulfill the objectives of organization and individual”

Although a series of concepts on work motivation are available, the personal internal factors are recognized as the key motivation It includes the motivated activities to impact the employee demand to facilitate their behavior changes towards the objectives that are oriented by the enterprise The work may be still completed even when the employee is not motivated However if the employee

is demotivated or not motivated, he shall loss his work performance capacity and tend to far away from the organization

In fact, how the motivation is created by which way is depended on specific application regulation as a factor for the society development If motivation is created by benefits, it shall be impacted, excited and enhanced with effective work performance, expertise or specific functions

1.2 Concept on work motivation:

Work motivation refers to activities, (policies, measures, methods, etc.) applied to the employee to motivate them to engage and implement the assigned tasks with the highest performance to bring benefits for themselves and the organization and enterprise (Nguyen Van Diem, Nguyen Ngoc Quan, 2015)

Assoc.Prof.Dr Le Thanh Ha unveiled that: “Work motivating is defined as a collection of measures and behaviors of organization and manager to create the great desire and willingness for the employees to make them pay more efforts and strive to fulfill the objectives set by the organization Possible measures include financial and non-financial levers and the organization’s behavior demonstrated in such organization and how the employee is treated”

Therefore, work motivation may refer to the manager’s application of a set of management policies, measures and methods, affecting the employees to drive them

in the work and obtain a higher job satisfaction and wish to make more contributions to the organizations and enterprises

Work motivation is not inherent in each person It is regularly varied At this point of time, the work motivation is high but relatively or surely unavailable in the employee sometimes In different status and circumstances, the work motivation shall be differently developed For this reason, the manager can intervene and impact the employees to successfully drive their work efforts

1.3 Necessity of motivating employees

Motivating employees is attached with extremely significant role and recognized with high efficiency for the concerned employees, each enterprise and the social benefits

For individuals:

Motivating helps the employees to perfect themselves and have more work initiatives When the employees are motivated, they shall make more efforts to study and draw lesson to improve the knowledge Motivating helps the employees

to work enthusiastically and devoted to their work, then they shall be more associated, whole-hearted and devoted to the enterprise, offering more added values and personal development opportunities

For enterprise:

Motivating improves the organization’s productivity, business performance, cost effectiveness and facilitates the corporate development Moreover, motivating

creates the engagement between the employees and enterprise, retains and attracts

the talents, enhancing the enterprise’s competitiveness

For the society:

Work motivation is known as a pre-requisite to successfully improve the personal productivity and organizational business performance, facilitating the economy growth, civilized social development and political stability

In short, work motivation for employees is put on the top priority for each manager It is not only a task but also obligation towards their employees

1.4Work motivation-related theories

1.4.1 Abraham Maslow's need theory

The psychologist Abraham Maslow revealed that: The employees are characterized by a trapezoid hierarchy of needs, concretely: physiological needs, safety needs, love and belongingness needs, esteem needs and self-actualization needs

Figure 1.1: Maslow’s hierarchy of needs

(Source: Human resources management course books (2012) - Assoc.Prf Le Thanh

Ha - Labor and Social Publisher) Among five needs mentioned above, physiological needs are the most basic needs of the human beings The physiological needs include the most basic and essential needs for the human survival It includes needs of: eating, clothing, accommodation, traveling and others

actualization

Self-Esteem needs

Love and belongingness needs

Safety needs

Physiological needs

Next is safety needs which are stable and reliable Persons wish to be protected against uncertainty or self-protection

Love and belongingness needs are one of the senior needs of the human beings It includes communication and talking with other persons to demonstrate and accept the feelings, caring, needs of sharing the love, etc

The higher hierarchy is esteem needs In addition to the needs to communicate and talk with other person, the persons also wish to be respected and recognized with their social standing

The highest hierarchy is actualization needs, development and affirmation needs The persons wish to realize their personal potential They always wish to be more perfect

self-Maslow unveiled that: In principles, whenever needs among such needs are satisfied, then the next needs shall become the most important one Personal need satisfaction is originated from the lowest needs The top needs only appear when the bottom needs are successfully satisfied Need satisfaction is characterized by bottom-to-top hierarchy Although no needs are fully satisfied in practice, the basically satisfied needs shall not motivate the person any more That is why the manager wants to motivate their employees Firstly, the manager is required to thoroughly understand where such employees stand in the hierarchy of needs, then orient towards their need satisfaction so that the highest result may be obtained by the motivation policy

1.4.2 F Herzberg's two-factor theory

Herzberg assumed that a personal relation with the job is the basic factor and the job success may be decided by the personal attitude towards the job Herzberg thoroughly reviewed the question “What do you want from your job?” Satisfaction and dissatisfaction factors were divided into two groups by Herzberg through his study, concretely:

Group 1: Motivational factors include the key factors for job motivation and

satisfaction such as: recognition, sense of achievement, job nature, job responsibility and promotion When such factors are absent, the employees shall

demonstrate their dissatisfaction, laziness and ineffective working Herzberg assumed that such are “satisfactory factors” for the motivational factors When such factors are successfully satisfied, motivation shall be created, i.e., job satisfaction

Second group: Hygiene factors include the external factors beyond the job,

required to maintain the effective working status and prevent the unexpected outcomes incurred by the employees such as: Enterprise’s management policies and regulations, job supervision, salary, interpersonal relationship, working condition, position and stable job There is a thing to be noted that even when such factors are highly satisfied, no motivation can be made However, when the hygiene factors are not assured, the employees shall be bored, dissatisfied, and demotivated to work It

is so-called as “dissatisfaction factors” that cannot release any job motivation as what referred to by Herzberg

Figure 1.2 Two-factor theory

(Source: (Nguyen Van Diem, Nguyen Ngoc Quan, 2015)

Such theory helps the manager to know which factors causing dissatisfaction for the employee and how to eliminate such factors However when the dissatisfaction factors are removed, it does not mean that the employees are satisfied If it is required to motivate and satisfy the employees, the manager shall focus on hygiene factors such as success, recognition and duty assignment Therefore, the satisfaction reasons are originated from the job contents while the dissatisfaction factors are derived from the working environment That is why in order to drive each employee; both working environment and job must be impacted

1.4.3 Skinner's Reinforcement Theory of Motivation

Skinner assumed that the bonus or punitive tools are used to enhance or restrict the personal behaviors Concretely:

 Inherited behaviors tend to be repeated while the non-bonus or punitive behaviors shall be gradually eliminated

 The closer the interval between the behavior and bonus and punishment behavior is, the higher the behavior change impact shall be

 Punishment restricts the managers’ unexpected behaviors and possibly causes negative enforcement (such as reaction of employees, etc.), hence, it is less effective than the bonus

Managers should apply various methods to award the employees Criticism must be personalized, constructive and integrated with praise or award

It is found that in order to motivate the employees, the employees’ awareness must be improved so that they may see that their personal efforts shall offer the expected bonus In order to do so, in addition to interwoven reward and punishment, the manager must create a good working environment, making the employees to satisfy with the current working status, satisfying with the support from the leaders and colleagues, etc Then, the employees shall be more trusted into their efforts, managers and enthusiastic to work with high performance

1.4.4 John Stacey Adams' equity theory

Adams’ theory assumed that the employees compare what they have spent on a task (input) against those they have received from such task (output) (so-called as personal equity) and then their input-output rate against input-output rate of other persons (so-called as social equity) If their rate is equal to that of other persons, equity status shall be available If such rate is not equal, inequitable status shall be found When the inequitable conditions exist, the employees shall make great efforts

to correct it

According to this theory, if the equity is created in the organization, the interpersonal relationship shall be much more cemented to the organization, the employees shall be motivated and satisfied, and then they shall be much more loyal

and strongly attached to the organization Vice versa, when each individual feels that what he contributes is bigger than that he receives; he is no longer enthusiastic and devoted to the work Then, each individual shall compare and evaluate his contribution and devotion against his received treatment and bonus Three cases may

be occurred as follows:

- First: If the employees assume that they are not well treated and the bonus is not deserved with their efforts, they shall be dissatisfied, resulting in the fact that they shall not work with their highest capacity In the serious case, they may disturb or leave to find a new job

- Second: If the employees believe that they are well treated, the bonus and treatment are deserved to their efforts, they shall maintain their productivity as before

- Third: If the employees recognize that the bonus and treatment are higher than their expected things, they shall work in a a harder and more active manner In this case, however, they tend to reduce the bonus value, disregard the bonus and such bonus shall be meaningless for the long run

In order to create the equity in the organization, the leaders and managers are required to consider and evaluate the equity between what each individual of the organization contributes and his received outcomes and find out every possible measure to balance it Only when the equity is found by each individual, they shall make great effort to work for the overall objectives of the organization

Equity theory requires the balance between giving and receiving The

“balanced benefits and obligations” principle must be respected in each agency and organization When the personal benefits are respected, a great motivation and encouragement shall be created Benefits must be equally distributed by capacity, qualification, efforts, enthusiastic, hardworking, flexibility, personal sacrifice, loyalty, work performance and efficiency, contributions to each organization Benefits received by each individual may be salary, bonus, welfare, favorable studying to improve the qualifications, recognition or promotion, etc

The equity theory requires the managers to pay special attention to the factors governing the employees’ awareness on equity and influence to make the employees have a sound awareness on equity

In short: A series of motivation theories are developed for the employees, revealing various motivation approaches However, a common feature is shared by such theories, concretely: Enhancing the employee motivation leads to increased labor productivity and bigger victories for the organization Therefore, the managers must be more flexible in applying the theories to be well matched with their internal conditions to obtain the best effectiveness, bringing the expected outcomes

1.5 Factors affecting the employees’ work motivation

1.5.1 Job attractiveness

How do employees feel when they receive unexpected job? Vice versa, how

do they feel when an offered job is suitable with their capacity and hobbies? The employees’ labor productivity and performance shall be significantly affected by such issues When a suitable job to be well matched with the employees’ capacity and strength is offered, the employees shall maximize the job even in the most normal status Challenging jobs shall be a good opportunity for the employees The employees shall be more satisfied and contented when the corporate policies such as salary, bonus, allowances and benefits are suitable with their demand However, the material demand is found in every employee Some employees like money, but other loves job freedom and traveling to many places, etc Therefore, personal characteristics must be considered to design the most feasible jobs for the employees

1.5.2 Promotion opportunities and training

Training: refers to studying activities to help the employees to successfully fulfill their assigned functions and missions Such studying makes the employees to master their assigned tasks It includes the studying activities to improve the employee qualification and skills to help them work in a more effective manner

Promotion: refers to the movement to the important position or work in a company Promotion facilitates the personal development, enhances the prestige and power of employees Promotion policy means personal self-actualization Promoted

employees mean that they hit a new progress in work, their capacity is improved and their power and remuneration are also increased

Training is grouped with promotion because the training ultimately aims to promotion or improvement of employees’ working capacity and performance

Satisfaction of employees’ training and development demand shall motivate the employees to outperform, obtain better achievements and wish to be assigned with more challenging tasks with higher promotion opportunities Therefore, training

is considered to be the basic factor to satisfy the organization’s strategic objectives The employee quality becomes one of the enterprises’ competitive advantages Therefore, training and promotion policies should be paid with special attention to enhance the personal development

1.5.3 Work relationship

When salary is satisfied with the basic physical demand, other spiritual demands are often required It includes the friendly intrapersonal communication Employees working for an enterprise not only work alone but in a group That is why, the job relationships are the big factor, significantly affecting the employees Good colleague relationship releases a good group spirit, creating a friendly atmosphere and the company members may help each other to work and others Accordingly, labor productivity is improved Communication demand is often embedded with a part of self-respect Then, it must be externally satisfied by the managers and the self-respect demand is most demonstrated when the employees exist in an organization Hence, they wish to become a member of some social groups, either official or unofficial such as some people work to remarkably facilitate the friend and social relationship demand satisfaction

1.5.4 Income

Income refers to an amount of money obtained from a work done for an enterprise or organization Such income excludes incomes when other works are involved (regardless of enterprise or employer) Accordingly, such income includes basic salary, allowances (if any), bonus, including periodic or unexpected bonus,

commission (if any) and other cash-based benefits directly originated from the main current tasks

Labor remuneration is one of the most challenging issues for the managers of any enterprises Enterprises are often characterized by various viewpoints and objectives when the payroll system is designed Generally, four basic objectives are aimed by the enterprises, including:

Employee acquisition: Salary recommended by the enterprise is one of the most basic factors for candidates to decide whether the employment is taken or not The higher the salary is, the better opportunity of acquiring talent shall be

Talent retaining: In order to successfully retain the talents for the enterprises, high salary is insufficient but the internal equity must be required When it is found that the salary is not equally paid by the enterprise, the employees shall feel discomfort, stress and bored, even leave the enterprise behind

Employee motivation and encouragement: If corporate management policies and activities are taken that the concerned employees recognize that their efforts, hardworking and outperformance are not well treated; they shall not make any efforts, gradually becoming inactivity and passiveness in any tasks launched by the enterprise

Responsiveness to legal requirements: The basic legal issues related to salary

in the enterprises focus on following pillars: Regulations on basic salary, working time and conditions, regulations on child labor, salary-embedded allowances, and regulations on social welfare such as social insurance, illness, materiality, labor accident

How should we do to make salary and bonus become great drive for employees? Some employee motivation measures are recommended as follows:

- Salary-based motivation principles:

Salary must be qualified to reproduce the labor It means that salary must be sufficient for the employees to nurture themselves and their family in the basic level This is the most basic feature to be covered by the employer Then, the basic conditions may be qualified to help the employees to be more motivated in working

Salary must be accounted for 70%-80% of total income of employees Salary must be closely cemented with work volume and quality offered by the employees Then, the equity in social product distribution may be assured As a result, the great trust and effort from employees may be generated because they find that what they are receiving is deserved with what they contribute to the enterprise

- Bonus-based motivation principles:

Bonus must be accounted for 20%-80% of total income of employees If such principle is satisfied by bonus, the employees shall be closely associated with the labor production If the bonus is too high, it shall lead to the fact that the employees follow the bonus, reducing salary motivation in the enterprises

Bonus volume must be meaningful to the life It must satisfy some expectation

of employees The higher the expectation is, the bigger the bonus motivation shall be

Salary and bonus are one of physical factors for the employees Successful application of such policy is one of the key factors to effective employee motivation

1.5.5 Welfare

Welfare refers to the benefits obtained from the enterprise in addition to salary monthly received by the employees Welfare is assigned with great significance in determining the job satisfaction Firstly, welfare is a constituent of remuneration payable to employees Job satisfaction is largely affected by such remuneration Secondly, welfare sometimes replaces the salary In Vietnam, welfare mostly concerned by the employees includes social insurance, health insurance, severance insurance, legal leave, sick leave and leave for personal affairs upon demand, legal benefit protection by trade union, annual traveling, long-term stable employment in the company (without fear of job loss), support for house purchase, company’s share acquisition rights with preference price, etc

Welfare demonstrates the enterprise’s concern to the employees’ life, enhancing the employees’ loyalty and involvement to the enterprise Corporate welfare includes: Social insurance and health insurance; retirement; paid leave, public holiday; lunch paid by enterprise; allowance to employees with many children or difficulties; corporate gift for employees on the occasion of birthday and wedding

Various initiatives on allowances are released, depending on characteristics of each company but it shares an overall purpose, i.e., motivating employees to work and trust in working and having strong attachment to the enterprise

1.5.6 Award and recognition policy

Firstly, a proper salary must be offered to the employees Secondly, extra-work must be paid This means that the expectations must be setup for the basic salary in addition to bonus and clear objectives That makes employees to fulfill the set objectives

Recognition is a great motive Adrian Gostick and Chester Elton are the authors of “The Carrot Principle”, including over 200,000-employee study conducted over 10 years The study unveiled that the most successful managers offer the regular and effective recognition to their employees In fact, it was found that the managers realize the business performance is significantly improved when the employees are well recognized in the award forms with constructive feature, rather than bonus

1.5.7 Working environment

Working environment is always concerned by the employees because it is related to personal convenience and factor to help them outperform the assigned tasks The hazardous, inconvenient and discomfort working environment is not favored by the employees Temperature, lighting, noise and other environmental factors must be suitable Moreover, many employees like working near their home with clean and modern working tools, provided with suitable equipment

Therefore, each working environment and condition remarkably affects the employees, facilitating to create the labor productivity and quality, making the enterprise to obtain higher production and business performance

1.5.8 Brand and corporate culture

The enterprise's brand illustrates the images of internal and external persons It includes employees, partners, shareholders and local community rather than customers Employees are the enterprise’s brand ambassador, while the brand demonstrates the corporate culture that shall be received by the customer In the mind

of customers, the employees are the brand shaper and ambassador who may be positive or negative

Corporate culture is the specific characteristics of each organization; it affects thinking of every member of such organization Corporate culture includes core values, standards, habits, rules and rituals Corporate culture development aims to successfully manage and establish the friendly cooperation relationship between the members in the company, making the company become a working community with cooperation, mutual trust, strong attachment, and friendliness and promotion spirit Accordingly, the general psychology and great trust in company’s success are developed

Corporate culture is assigned with extremely important position and roles in development of each enterprise This is because if the culture factors, languages, materials and information so-called as knowledge are unavailable in the enterprise; such enterprise shall be difficult to survive In the social trends todays, the resources of a company are recorded with persons and the culture is the close link of values of each separate resources Therefore, corporate culture is the intangible assets of each company

1.5.9 Leaderships style

The employees’ working spirit is significantly affected by the leadership style The employees working in the environment where they are always attentively listened and respected shall be convenient and desired to work for long time; vice versa, when the superior always considers his viewpoint is not correct, the stressed and fatigued working environment shall be created, resulting in the fact that the employees discourage to continue devoting, creativeness or working for the enterprise any more

According to K Lewin, an U.S psychologist, there are 3 basic leadership styles: + Arbitrary leadership style: It is characterized by concentration of all powers to the leaders - management by personal will, suppressing the will and initiatives of every member

+ Democratic leadership style: It is characterized by the fact that the manager knows how to distribute his management power, consult the subordinates, put them be involved in initiating the decisions Such leadership style creates favorable conditions for the subordinates to successfully uphold their initiatives, involving in preparing

and launching the plan, creating a positive atmosphere during management + Free leadership style: The manager sketches out the overall plan, less involving in direct direction, assigning to his subordinates and covering other office tasks He only directly works with the managed persons or groups in special circumstances

1.6 Some enterprises’ experience in work motivation and lesson for Truong Hai Automobile Joint Stock Company

1.6.1 Experience of Sai Gon Mechanical Electrical Joint Stock Company

Nguyen Thi Minh Phương (2015), “Work motivation of office staffs in IshigakiVietnam”, Master thesis, University of Social labor As a player with not too long history of development, over 8 years of operation is also a great effort and success of the company In order to do so, the company has also focused on developing human resources and HR motivation, concretely:

Salary: Salary is designed by the assigned tasks and work performance implemented by the employees Semi-annual work performance is reviewed to use as the basis for salary increase through comments and evaluation of the direct managers Salary for fulfillment of assigned tasks is 100% Percent (%) of received salary is depended on % task fulfillment according to the evaluation on personal performance at the end of each month In addition to salary, the satisfactory bonus policies are also applied to motivate its employees Bonus for public holidays and New Year Festivals applied for each employee is VND 200,000/employee and work performance bonus varies within the range of VND 500,000 - VND 1,000,000/task fulfillment As being listed in the stock exchange, the share-based bonus policy is applied and the talent is allowed to acquire the corporate shares with preference price Particularly, the acquisition level reduces 30% - 50% of the Company’s share value as of bonus date After one year of operation, the employee motivation review is held to draw out the conclusions on fulfillment and perfecting the weakness in work motivation in terms of working environment and benefits of the Company

The Company's motivation success obtained in 2013 was described as follows: Average income increased 1.4 times against that in 2012

Average monthly income of 2012 was VND 3,500,000/person/month

Up to 2013, the average income of employees was VND 5,000,000/person/month

The attachment percent (%) of employees also increased higher than that in

2012 Number of retired employees reduced for a half 2012 was recorded with 20 retired employees (due to salary lower than that of new job position) AT the end of

2013, number of retired employees was only 5 persons

Such achievement was successfully obtained by launching the salary-based motivation policies and price deflation of market price that was timely balance with the basic salary to retain the employees, reducing the salary competition offered by the competitors

Moreover, two specific benefits were released by the share-based bonus policies, concretely: Increasing shareholdings, increasing working financial resources

of the Company, creating the Company’s benefits in close attachment with benefits of each person holding the Company's shares, etc This was the new and creative point barely initiated by the Company, resulting in certain successes This is a way recommended for the enterprises to find how to successfully motivate the employees

1.6.2 Experience of Coca-Cola Beverages Vietnam Limited

Nguyen Thi Minh Phương (2015), “Work motivation of office staffs in IshigakiVietnam”, Master thesis, University of Social labor Coca-Cola Beverages Vietnam Limited is known as a 100% investment capital company from Coca-Cola Group, one of the world leading multinational groups As one of big beverages producers with big market share, the employees are also characterized by various age and background The Company is recorded with a young, enthusiastic and dynamic staff, working in the professional environment, being facilitated and offered with the best conditions for the personal development, resulting in high work performance In order to obtain such sustainable development, Coca-Cola Group in general and Coca-Cola Beverages Vietnam Limited in particular extremely outperform the work motivation in the concerned fields, concretely:

Proper duty assignment: Staff is often rotated to various positions to find out the most suitable field for them to retain the talent This helps the Company to be more

facilitated during labor arrangement and obtain the competitive advantages in terms of human resources as well as product quality and selling price

Development of diversified and talent staff: The enterprise pursuits the objectives: creating the good working enterprise where diversified and talent staff is successfully acquired, development and retained Each individual is encouraged to develop the expertise and strength, help any users to enhance their creativeness and enthusiastic in the business activities

Fair working environment: Coca-Cola extremely prohibits child labor in business activities and those launched by the suppliers The fair working environment

is always offered to any members Everyone is provided with the promotion opportunities if his capacity is affirmed

Employee acquisition: When the corporate structure is changed, they strive to openly communicate with employees about what they are doing, why and how it affects The Company also looks for feedback and respond to any questions

A greater concern is paid to the working attitude and feedback from employees Coca-Cola employees may show their viewpoint through various channels Claim handling process is always available for all employees by general contract agreements

Results obtained by Coca-Cola include coverage cover 200 countries, revenue

of US$ 48 billion in 2012, equivalent to a 70th economy in the world, next to Slovenia and Costa Rica In the territory of Vietnam, number of employees working for Coca-Cola Vietnam is over 16,000 persons HR employment and training of Coca-Cola Vietnam are recognized as the precious lesson for the categories to learn and draw out the precious lessons

1.6.3 Lesson for Truong Hai Automobile Joint Stock Company

Motivation experiences from some companies unveiled partial effectiveness of work motivation The lessons are drawn out for Truong Hai Automobile Joint Stock Company, concretely:

In order to create the high quality and stable human resources, the work motivation must be actively launched by the Company

In order to successfully retain the talent, the suitable and standardized salary, bonus and treatment policies must be designed and developed, ensuring the fully physical conditions for the employees, motivating them to work, inspiring the work so that the employees may optimize any working possibilities to obtain the highest performance

Moreover, the close attachment must be created between the employees and company, both physically and spiritually: such as employee benefit must be closely linked with the Company’s business performance The Company’s objectives must be widely disseminated and supported by specific benefits offered to the employees when such objectives are successfully fulfilled It is required to develop the proper award and encouragement system to facilitate the employees to be more creative in working, releasing the reformation initiatives, improving the work performance and product quality

Employees are encouraged to contribute viewpoints and recommend the solutions to develop enterprise, renovate the work and their benefit-related issues, ensuring the democracy in the Company

Summary of Chapter 1: Chapter 1 presents the panorama of literature

review on concepts, factors affecting the work motivation and its related contents Through the theories on job satisfaction of employees released by the Vietnamese and international authors, it is used as the reliable background to analyze the existing status and launch the onsite survey to recommend the work motivation solutions for sales staff in Truong Hai Automobile Joint Stock Company to facilitate the corporate development

CHAPTER 2 RESEARCH METHODOLOGY

2.1 Research methodology

2.1.1 Questionnaire survey method

Survey and investigation procedure

Questionnaire is designed through steps:

Step 1: Design the questionnaire in accordance with the factors affecting the work

motivation, job satisfaction of sale staff

Step 2: Before survey, consult the management, HR department and conduct trial

interview with 10 sales staff from Sales Department to verify whether the the questionnaire contents are suitable

Step 3: Correct the questionnaire contents properly before the survey is launched

2.1.3 Survey and data collection

Prepare the list of sale staff 150 questionnaires were delivered to respondents

Re-collect the responded questionnaires and check whether the questions in the questionnaire are left and the questionnaires are valid

Collect the primary data sources: Questionnaire, interview questions

Collect the secondary data sources: the Company's financial statements, regulations, by-laws, review report, treatment policies, welfare regulations, HR report, HR change analysis

Data collection period: From 2015 to 2018

Summarize the results in the questionnaire as analysis and evaluation basis

2.1.4 Interview method

Interview was conducted for 2 subjects, namely retired and ongoing sale staff

of the Company to further clarify the items fully uncovered by the questionnaire as the basis to explain and prove the quantitative data obtained by the study

2.1.5 Data processing method

Collected data was summarized, classified and analyzed; analysis - comparison was conducted to summarize the results

2.2 Research process

Step 1: Study assumption

Step 2: Literature review of the study

Step 3: Draft scale

Step 4: Primary interview and consultation

Step 5: Scale adjustment

Step 6: Official scale

Step 7: Survey and investigation

Step 8: Data collection and analysis

Step 9: Preparation of study report

2.3 Study assumption

This study is based on Job Descriptive Index (JDI) scale, including: Job attractiveness, promotion and training, working relationship, income, welfare,

reward and recognition policies, working environment, brand and corporate culture, leadership style to measure the employees’ job satisfaction

Figure 2.2: Factors affecting the employees’ work motivation

(Source: author - 2018)

Research questions:

- What are factors affecting the employees’ work motivation?

- How does each factor affect?

- The employees’ work motivation is improved by which way?

2.4 Scale design

Scale used in the questionnaire is mainly 5-point Likert scale, varying from

“Very dissatisfied” to “Very satisfied” The 5-point Likert scale is used to measure the observation variables of independent and dependent variables One of 5 points is selected by the respondent, concretely:

Award, recognition

Working environment

Work relationship Brand, corporate

culture

5 Very satisfied Moreover, the nominal scale is applied in the questionnaire to measure the personal data variables related to the employees such as: full name, gender, age, qualification, service length

Table 2.1: Personal data PERSONAL DATA

Table 2.2: Job attractiveness scale

1 The job is suitable with your personality and capacity 1-2-3-4-5

(Source: author - 2018)

 Promotion opportunities and training

Table 2.3: Promotion opportunities and training scale

6 Specific development and promotion road map is applied by the

7 Promotion opportunities are always offered to the qualified persons 1-2-3-4-5

8 The promotion opportunities are clear, public and transparent 1-2-3-4-5

9 Training is fully organized to outperform the job and develop the

10 Training are characterized by proper learners, qualification and

11 Training courses help you to successfully improve the expertise,

(Source: author - 2018)

 Work relationship

Table 2.4: Work relationship scale

12 The job helps you to enhance the relationships with various

13 The job helps you to enhance the relationships with various

14 The job helps you to successfully develop the sustainable relations

with friends, colleagues and mutual support in the job and life 1-2-3-4-5

(Source: author - 2018)

 Income and welfare

Table 2.5: Income and welfare scale

15 Current salary is suitable with your capacity and contributions to

16 The Company’s business bonus policies are clear, fair and

18 Treatment policies focus on health, spirit and living demand of the

19 Welfare policies demonstrate the Company’s great concern on its

20 Welfare policies encourage the employee’s long-time attachment

(Source: author - 2018)

 Award and recognition policy

Table 2.6: Award and recognition policy scale

21 Award policy is deserved with the employee’s work performance,

22 Award policy is public, clear, transparent and timely 1-2-3-4-5

23 The employee’s working capacity and performance are properly

24 The award and recognition policies are consistently applied by the

25 The Company’s bonus level is suitable with the premise in the

(Source: author - 2018)