IMPROVING THE PERSONNEL REMUNERATION POLICY AT HOANG GIA EDUCATION AND TRADING JOINT STOCK COMPANY (ROYAL CHESS)a

MINISTRY OF EDUCATION AND TRAININGHO CHI MINH CITY UNIVERSITY OF TECHNOLOGY AND EDUCATION GRADUATE THESIS INDUSTRIAL MANAGEMENT MAJOR IMPROVING THE PERSONNEL REMUNERATION POLICY AT HO

MINISTRY OF EDUCATION AND TRAINING

HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY AND EDUCATION

GRADUATE THESIS INDUSTRIAL MANAGEMENT MAJOR

IMPROVING THE PERSONNEL

REMUNERATION POLICY AT HOANG GIA EDUCATION AND TRADING JOINT STOCK

COMPANY (ROYAL CHESS)

SKL 0 0 7 3 8 6

INSTRUCTOR: HA NGUYEN MINH QUAN STUDENT: LE NGUYEN THAO NGUYEN STUDENT ID: 16124048

HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY AND EDUCATION

FACULTY OF HIGH QUALITY TRAINING

NHẬN XÉT CỦA GIÁO VIÊN HƯỚNG DẪN

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NHẬN XÉT CỦA GIÁO VIÊN PHẢN BIỆN

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ACKNOWLEDGMENT

After working at Hoang Gia Education and Trading Joint Stock Company, I have helped her to have a realistic view of the working environment in the business, and also helped me to concretize practical reasoning , contribute to improving their knowledge

In order to achieve such great results today, I would like to express my sincere thanks to the teachers and teachers for imparting valuable knowledge over the past four years Especially, Master Nguyen Ha Minh Quan has guided me to complete this Graduation thesis with all the sense of responsibility and enthusiasm, helping me to be more confident when I come to reality

I would like to express my sincere thanks to the Board of Directors, the Accounting Department for facilitating me to collect data and Ms Tran Thanh Giang has enthusiastically helped me so that I could learn and exchange working and studying experiences in the past

With limited time to work, so this thesis is inevitable I look forward to the comments and further guidance of the teachers, the Board of Directors and the brothers and sisters working at Royal Chess

Finally, I would like to wish our teachers, the Board of Directors and all the brothers and sisters in the company good health and success in life

Student

Le Nguyen Thao Nguyen

LIST OF ABBREVIATIONS

Royal Chess Hoang Gia Education and Trading

Joint Stock Company

LIST OF TABLES

Table 3.1 The human resource situation of Royal Chess in the period 2017-2019 24

Table 3.2 Personnel’s educational background in 2019 25

Table 3.3 Number of personnel needed to recruit in the first three months of 2020 26

Table 3.3 Salary grade of the training department 30

Table 3.5 Royal Chess year-end bonus table for 2019 33

Table 3.6 Types of allowances at Royal Chess 34

Table 3.7 Insurances pay rate for 2019 36

LIST OF FIGURES

Figure 1.1: Company Organization chart 5

Figure 1.2: Business performance of Royal Chess in the period 2017 –2019 8

Figure 2.1 Basic expectancy model (Fred C Lunenburg, 2011) 9

Figure 2.2 Dimensions of Equity (Jeffery, A.M, 2003) 11

Figure 2.1 Components of Employee Remuneration (K Aswathappa, 2013) 13

Figure 2.2 Influencing Factors of Remuneration (K Aswathappa, 2013) 20

TABLE OF CONTENTS

NHẬN XÉT CỦA GIÁO VIÊN HƯỚNG DẪN ii

NHẬN XÉT CỦA GIÁO VIÊN PHẢN BIỆN iii

ACKNOWLEDGMENT iv

LIST OF ABBREVIATIONS v

LIST OF TABLES vi

LIST OF FIGURES vii

TABLE OF CONTENTS viii

INTRODUCTION 1

1 Rationale 1

2 Aim of the study: 1

3 Scope of the study: 2

4 Method of implementing the topic: 2

5 Topic layout 2

CHAPTER 1: OVERVIEW OF THE COMPANY 3

1.1 Introduction about Hoang Gia Education and Trading Joint Stock Company (Royal Chess) 3

1.1.1 The general information 3

1.1.2 Vision, mission and core values 4

1.1.3 Educational system 5

1.1.4 Organizational structure 5

1.1.5 The company's perspective on employees 6

1.1.6 Business performance of Royal Chess 7

CHAPTER 2: THEORETICAL BASIS 9

2.1 The fundamental theories of motivation 9

2.1.1 Vroom’s Expectancy theory 9

2.2.2 Equity theory 10

2.2 Remuneration 11

2.2.1 Definition of remuneration 11

2.2.2 Components of Employee Remuneration 12

2.3 Factors influencing employee remuneration 20

2.3.1 External Factors 21

CHAPTER 3: ACTUAL SITUATION OF PERSONNEL REMUNERATION AT

THE COMPANY 24

3.1 Human resource at the company 24

3.1.1 Labor situation of the company 24

3.1.2 Human resources planning 26

3.1.3 Recruitment and Selection 26

3.2 The actual situation of financial remuneration at Royal Chess 28

3.2.1 Direct financial remuneration 28

3.2.2 Indirect financial remuneration 35

3.3 The situation of non-financial remuneration at Royal Chess 37

3.3.1 Remuneration arises from the work itself 38

3.3.2 Remuneration related to the working environment 38

3.3.3 Remuneration relates to professional training programs 41

3.4 Overall evaluation of remuneration policy at the company 41

3.4.1 Advantages 42

3.4.2 Limit 42

CHAPTER 4: PROPOSED SOLUTIONS TO IMPROVE PERSONNEL REMUNERATION AT ROYAL CHESS 44

4.1 Solutions group of long-term nature 44

4.1.1 Improve business performance 44

4.1.2 Improve the professional qualifications of employees 44

4.1.3 Building corporate culture 45

4.2 Group of specific solutions 45

4.2.1 Salary and bonus solutions 45

4.2.2 Indirect financial Remuneration 48

4.2.3 Solutions for non-financial remuneration 48

CONCLUSION 50

REFERENCES 51

INTRODUCTION

1 Rationale

Human resource remuneration is an important function of human resource management An enterprise with a reasonable personnel compensation policy will bring great effects in encouraging and using human resources effectively, contributing

to the overall success of the company

Hoang Gia Education and Trading Joint Stock Company (Royal Chess) operates

in the field of education A specific area where the human factor is of prime importance, irreplaceable and greatly affects the success of the business Human resources in this field are quite specific, mainly from former professional athletes Nowadays, with the strong development of chess movement not only in the world in general but also in Vietnam in particular, schools from private to public are gradually making chess appear in elective subjects or gifted subjects With the strong development of the chess movement today, especially young tournaments, in the near future requires a considerable amount of work force in this field However, a sad fact

is that most people operating in this field for a long time are limited Therefore, retaining employees as well as creating competitive advantages in the market requires the company to have good remuneration policies to satisfy employees and attract quality human resources in the current period

During the time working at Royal Chess, I found that the compensation for personnel at the company has promoted some advantages, but there are still many limitations to overcome Recognizing the importance of personnel compensation in the survival and development of the company, I decided to choose the topic

"Improving the personnel remuneration policy at Hoang Gia Education and Trading Joint Stock Company (Royal Chess)"

2 Aim of the study:

 Systematize theoretical and practical basis for personnel remuneration

 Analyzing the current situation of personnel remuneration policies at Hoang Gia Education and Trading Joint Stock Company

 Proposing solutions and recommendations to complete the personnel compensation policy of the Company until 2023

3 Scope of the study:

 Time range: The topic is studied based on data collected from field surveys and documents related to the topic from 2017 to 2019, taking 2020 as the year of analysis

 Space range: The subject was researched at the human resources department of Hoang Gia Education and Trading Joint Stock Company Address: 47 Ho Ba Kien, Ward 15, District 10, Ward 12 District 10 Ho Chi Minh

The topic is also expanding the scope of space from the fact finding in some companies operating in chess industry

4 Method of implementing the topic:

 Data collection methods:

- These are necessary information for research issues such as theoretical basis, basic information about Hoang Gia Education and Trading Joint Stock

The graduation thesis report consists of 4 chapters:

Chapter 1: Introducing overview about the company

Chapter 2: Theoretical basis

Chapter 3: Actual situation of personnel remuneration at the company

Chapter 4: Proposing solutions to improve personnel remuneration at Royal Chess

CHAPTER 1: OVERVIEW OF THE COMPANY

1.1 Introduction about Hoang Gia Education and Trading Joint Stock Company (Royal Chess)

1.1.1 The general information

• Head office: 47 Ho Ba Kien, Ward 15, District 10, Ho Chi Minh City

• Abbreviation: Royal Chess

Training a chess player to be a good player is not an easy task In addition, more than that, bringing the benefits of chess to the community is even more difficult However, only when doing both of the above, will chess training be meaningful and truly become a need, a motivation for the development of thinking as well as human development In addition, the chess playing fields at the provincial and city levels are

activities related to chess are still lacking, not commensurate with the development of chess in Vietnam

Therefore, with the motto "Creating passion, developing thinking, training personality", Hoang Gia Trading and Investment Joint Stock Company was born, in order to bring the benefits of international chess tissue to society, especially are children

With a team of enthusiastic staff and teachers, with many years of experience in the training of chess for children, Hoang Gia Trading and Investment Joint Stock Company brings the chess learning environment along with personality training, development people and create playgrounds, chess events useful for society Not only wants to train good chess players, but also through learning chess to develop skills in logical thinking - creativity, analytical skills, planning ability, discipline, and confidence, independence in thinking From there, towards perfecting the human personality

Along with the development of chess subjects, the size of the company is growing and the entire company wants to cooperate with those who love chess, love children and desire to develop education through the intellectual subject

1.1.2 Vision, mission and core values

 Core values

• Chess training goes hand in hand with personality training, human development

• Always directing to the community and society

• Service is always available and quality guaranteed

• Development of human resources with the dedication to education as the foundation, work efficiency as a guide

• Solidarity - Professionalism - Innovation

• Have good professional qualifications

• Be mindful of educating people

Figure 1.1: Company Organization chart

• Source : Administration - Office Dep't

Board of Director

Training Dep't Administration -

Office Dep't

Sale - Marketing Dep't

Accounting Dep't

 Board of Directors: Managing all business activities as well as other daily activities of the company Responsible for the performance of assigned rights and duties Implementing the business plan of the company, proposing the plan of organizational structure and internal management regulations of the company such as appointment, dismissal, demotion of managerial positions in the company

 Administration - Office: Advising the Board of Directors on matters related to personnel, official dispatches, contracts, regulations applicable to the company Besides, this is also the place to plan for recruiting and developing human resources, storing important documents, documents, drafting documents, administrative documents circulating internally, and sending them to customers

 Sales - Marketing Department: Advising leaders on business strategies, planning, and business strategies At the same time supervise and check the quality of work and products of other departments to bring customers high quality services This section has the right to research and propose to business leaders, build PR and marketing strategies for products by stages and customers

 Accounting department: Advice, synthesize, propose ideas, assist the Board of Directors to manage and manage the financial and accounting work as assigned by the General Director This department is responsible for building the company's accounting system, updating and grasping the newly issued tax laws and policies to comply with the law, manage the input costs, the company's output, which is responsible for reporting the company's financial situation to the leadership upon request, resolving salary, bonuses, and revenue management regimes

 Training department: Directly participate in teaching, coordinate with the specialized board to develop lesson plans, improve training programs, teaching and

learning methods, module outlines, and learning materials

1.1.5 The company's perspective on employees

Human resources of the company are invaluable assets, managed in a way that arouses the potentials and capabilities of employees so that they can develop and guide employees to organize their work in an autonomous, professional and

responsible manner Responsibility in the work assigned, creating a dynamic working environment, the best company culture for employees, and the highest profit for the business The policies (salaries, benefits ) of the company are built on the spirit of mutual development, fairness, based on the work and duties of each title, the performance of the individual

1.1.6 Business performance of Royal Chess

Through the Figure of business results of the company in 2017, 2018, 2019, it is found that the company's revenue increased steadily over the three specific years as follows:

In 2018, the increase of VND 2 billion compared to 2017 corresponding to an increase

of 49.7% In 2019, the increase of VND 2.5 billion compared to 2018 corresponds to 41.2% This means that the increase in revenue also shows that cost fluctuations over the years increase The reason is that the number of students of the company increases each year so the company hires more teachers to teach and the cost of hiring additional premises, expenses for running marketing, etc also increased significantly This is not unusual when revenue increases and costs increase Analysis of the unit's after-tax profit shows that the company is quite efficient and cost effective Profit in

2019 increased by 3 times compared to 2017

Figure 1.2: Business performance of Royal Chess in the period

2017 –2019

Source: Accounting Department

CHAPTER 2: THEORETICAL BASIS

2.1 The fundamental theories of motivation

2.1.1 Vroom’s Expectancy theory

Victor Vroom (1964) was the first to develop an expectancy theory with direct application to work settings Vroom’s expectancy theory differs from the content theories of Maslow, Herzberg in that Vroom’s expectancy theory does not provide specific suggestions on what motivates organization members Instead, Vroom’s theory provides a process of cognitive variables that reflects individual differences in work motivation

Lunenburg, F C (2011):

Expectation theory is a cognitive process theory of motivation based on the idea that people believe there are relationships between the effort they put into work, the performance they gain from that effort, and the rewards they receive from their efforts and performance In other words, people will be motivated if they believe that strong effort will lead to good performance and good performance will result in the desired rewards (p.1)

Figure 2.1 Basic expectancy model (Fred C Lunenburg, 2011)

Expectancy is a person’s estimate of the probability that job-related effort will result in a given level of performance Expectancy is based on probabilities and ranges from 0 to 1 If an employee sees no chance that effort will lead to the desired performance level, the expectancy is 0 On the other hand, if the employee is completely certain that the task will be completed, the expectancy has a value of 1

y

Valence

Instrumentality is an individual's estimate of the probability that a given level of task performance will result in different job outcomes As with expectancy, instrumentality ranges from 0 to 1 For example, if an employee sees that a good performance rating will always result in a salary increase, the instrumentality has a value of 1 If there is no perceived relationship between a good performance rating and a salary increase, then the instrumentality is 0

Valence represents the importance of the reward to the person doing the work, is the personal value assigned to the reward received If an employee has a strong preference for attaining a reward, valence is positive At the other extreme, valence is negative And if an employee is indifferent to a reward, valence is 0 The total range is from -1 to +1

Motivation = Expectancy x Instrumentality x Valence

Employees are only encouraged when their awareness of all three concepts or relationships is positive In other words, when they believe that their effort will produce better results, that result will result in worthy reward and that the reward is meaningful and appropriate to their individual goals

Thus, to motivate employees, managers must learn about the individual's thought process to help maximize Expectancy, Instrumentality and Valence to make employees aware of the relationship between effort and results, results with rewards and rewards must meet employee needs

2.2.2 Equity theory

Equity Theory was developed by John Stacey Adams in 1963 to illustrate the possible responses of employees when they feel there is some partiality in the way they are treated or rewarded in the organization The theory emphasizes equity in pay structure of employees’ remuneration

Adams observed that when employees feel that there is inequity in the organization that can lead to lower productivity, higher absenteeism; or employees may limit their performance to a certain extent that they consider commensurate with the type of reward they receive

The remuneration system should meet three types of equity: internal, external and individual

Figure 2.2 Dimensions of Equity (Jeffery, A.M, 2003)

Internal equity involves the perceived fairness of the difference in salaries

between different jobs in an enterprise Since the responsibilities of each job are not the same, there is a corresponding difference in wages among jobs

External equity relates to employees' perceptions of fairness in their

remuneration compared to those outside the enterprise What competitors pay for similar jobs will have an impact on employee motivation, commitment, and performance

Individual equity considers employees' perceptions of the wage difference

between individuals with identical jobs in the same business Seniority is a factor contributing to the difference in remuneration that two individuals in the same organization receive

2.2 Remuneration

2.2.1 Definition of remuneration

Remuneration is an acknowledgment and recognition of an enterprise about the efforts of its employees The process of offsetting the labor costs of employees both physically and mentally (Le Quan, 2008)

According Stone, R.J (2011) remuneration is all extrinsic rewards that employees receive in exchange for their work: composed of the base wage or salary,

Perceptions of Fairness

any incentives or bonuses, and any benefits It also is one of the six most important HRM functions

K Aswathappa (2013) Remuneration is the compensation an employee receives for his or her contribution to the organisation It occupies an important place in the life

of an employee His or her standard of living, status in the society, motivation, loyalty, and productivity depend upon the remuneration he or she receives For the employer too, employee compensation is significant because of its contribution to the cost of production Salary or bonus issues are also the cause of many battles (in the form of strikes and lockouts) between employer and employee

Every organization should have its own remuneration philosophy, which guides the management of monetary and non-monetary benefits It is a set of guiding principles and strategic implications, which are consistent with the goals and development orientation of the business

The remuneration philosophy needs to achieve fairness, consistency and transparency in the payment of remuneration to employees

In addition, remuneration needs to have a long-term perspective on how people should be viewed for what they do and what they receive

2.2.2 Components of Employee Remuneration

Most employees in the organization is entitled to several benefits— both financial as well as non-financial To be specific, typical remuneration of an employee comprises wage and salary, incentives, fringe benefits, perquisites, and non-monetary benefits

Figure 2.1 Components of Employee Remuneration (K Aswathappa, 2013)

2.2.2.1 Financial Remuneration

Financial remuneration refers to any monetary return or nonmonetary service received because of employment There are two kinds: direct remuneration, which is cash payment for work performed, and indirect remuneration, which includes insurance and other non-cash payments Benefits are a form of indirect remuneration

Working environment

Inspiration and value Work/life balance

Indirect Direct

 Wage and Salary

According to ILO ―the term wages means remuneration or earnings, however designated or calculated, capable of being expressed in terms of money and fixed by mutual agreement or by national laws or regulations, which are payable in virtue of a written or unwritten contract of employment by an employer to an employed person for work done or to be done or for services rendered or to be rendered.‖

An enterprise with a reasonable salary policy will bring great benefits in encouraging, using and developing human resources effectively, contributing to the overall success of the business

 Base wages and salaries

Base wages and salaries are the hourly, weekly, or monthly pay that employees receive in exchange for their work In most situations, base wages or salaries make up the largest portion of an employee's total remuneration, are often the focus of the remuneration system in the eyes of employees

Base wages and salaries are often stated in the contract, which is determined based on job complexity, working conditions, skill levels of workers and market prices

Base wages and salaries system often reflect the value and prestige of the entire organization If it is considered fair and equitable, the organization is often seen as a bright spot in the labor market Therefore, it is important that an organization develops and maintains a reasonable salary and base system

 Incentive

Also called ―payments by results‖, incentives are paid in addition to wages and salaries Incentives depend upon productivity, sales, profit, or cost reduction efforts Incentive pay plans attempt to relate pay to performance to reward above-average performance rapidly and directly

To be specific, includes individual incentive schemes, and group incentive programs

 Individual incentive

The primary advantage of the individual incentive system is that the employees can easily see the relationship between what they do and what they get It is usually divided into the following plans:

 Plans Based on Time Saved: Incentive plans based on time saved give

an employee a bonus for reaching a given level of production or output in less than the standard time, which are primarily applicable to production-type jobs

 Plans Based on Commissions: The most popular form of incentive is in sales Many salespeople work on some kind of commission plan, usually based

on sales volume

 Individual Bonuses: A bonus is a reward offered on a one-time basis for high performance, either in cash or in some other form For example, many sales organizations periodically offer prizes, such as trips, for their top salespeople

 Incentives for Managerial Personnel: Stock Options for Managerial Personnel are being quite widely applied in joint stock companies, which give managers an option to buy company stock at a predetermined, fixed price The plans are aimed at encouraging managers to work hard and increase the company's profits, thereby increasing stock prices

 Group Incentive

Because jobs can be interdependent, it is sometimes difficult to isolate and evaluate individual performance Therefore, where a given task demands group effort for completion, incentives are paid to the group as a whole The amount

is later divided among group members on an equitable basis

Incentive pay plans attempt to motivate the affected employees The underlying meaning is to have employees think of themselves as business partners by sharing the financial risks and rewards of doing business

a Indirect remuneration

 Allowance

Salary allowance is the amount of wages paid outside the base salaries It complements the base salaries, compensates employees more when they work in unstable or unfavorable conditions that have not been taken into account when determining the base salaries such as hazardous, dangerous allowances, overtime allowances

Most of the allowances are usually calculated based on assessing the impact of

an unfavorable working environment on the health and comfort of employees at the workplace Allowance is also meant to encourage employees to perform well in difficult, more complex conditions than usual

 Benefits

Employee benefits, sometimes called fringe benefits, are those rewards that organizations provide to employees for being members of the organization, usually not related to employee performance

The types of benefits that workers enjoy are diverse and depend on a variety of factors such as government regulations, the practices of the people, the level of economic development, the financial capacity and specific factors and circumstances

of the business Employee benefits shows the interest of the business to the lives of employees, which stimulates loyal employees, sticking with the business Besides, building a good company image

Employee benefits in enterprises is divided into 2 main types: benefits according

to the law and benefits decided by the enterprise

 Benefits in accordance with the laws of the State: to ensure the rights of workers

to a minimum because they can be in a weaker position than employers can Some examples of benefits under the law such as Social Insurance, Health Insurance, unemployment benefits, etc

 Social Insurance: Social insurance is one of the useful welfare policies for employees Compulsory social insurance regimes include sickness regime; maternity; labor accident and occupational disease insurance; pension regime; death regime

According to the regulations, the compulsory social insurance premium (effective from May 1, 2017) is 25% of the monthly salary stated in the labor contract, in which the employee contribution rate is 8% and employers are 17%

 Health Insurance: Health insurance premium rate from May 1, 2017 is 4.5% of the monthly salary, of which employees pay 1.5% and employers pay 3%

 Unemployment Insurance: Unemployment insurance rate from May 1, 2017 is 2% of the monthly salary, of which employees pay 1% and employers pay 1%

 Labor accident and occupational disease Insurance: Employers pay monthly with 0.5% of salary fund of social insurance of employees form May 1, 2017

 Voluntary benefits: Voluntary benefits are the benefits offered by an

organization depending on the economic capacity of each organization and the leadership's interest in that organization for the life of the employee In addition, it encourages loyal employees to stick with the organization Whether in a high or low position, completing a good job or just average, with a high or low level of skills, and being an employee working in the organization, they will enjoy the benefits of that organization The organization's voluntary benefits include Money or gifts on public holidays; Services for employees such as cafeteria, gym, shuttle bus, child care assistance, financial counseling, tuition refund, etc

Benefits works to support, promote the function and stimulate the potential of employees, and directly affect the profit distribution of the company So when executing personnel compensation, managers need to make the right decisions to both improve employee morale while being cost effective and making changes without many obstacles

2.2.2.2 Non-Financial Remuneration

The monetary values in the reward package are still important, but they are not the only factors Employees in the enterprise not only have the only motivation to work is to make money; they also have other values to pursue In an environment in which motivated and decisive employees will set standards that are ever more stringent for their companies if they are not satisfied both physically and mentally, they will leave and developed elsewhere Therefore, in order to recruit and retain

talented people, non-financial remuneration should be combined with financial remuneration to create a uniformity in corporate remuneration

Non-financial remuneration include those that arise from the work itself and the work environment

a Remuneration arises from the work itself

Work is what takes up one-third of our time, even a quarter of our time Obviously, getting up every morning to prepare and go to work a long way to work is not easy Everyone works for different purposes but most people, although at different levels, focus on satisfying needs such as achievement, recognition, responsibility, influence and personal growth

 Achievement: The need for achievement is the need for competitive success measured against a personal standard of excellence Achievement motivation can be increased by organizations through processes such as job design, performance management, and contributing skill or competency-related pay schemes Meaning that the job must bring a decent income for the employee, consistent with the capacity and effort they have spent

 Recognition: Recognition is one of the most powerful motivators People need to know not only how well they have achieved their objectives at work but also that their achievements are appreciated Recognition can be immediately expressed with praise

or positive feedback Some other forms of recognition such as representing organizations at prestigious events and conferences

Managers who listen and act on group members’ suggestions and, importantly, acknowledge their contributions also manifest recognition Other actions that provide recognition include a promotion, the allocation for a high-end project, job expansion

 Responsibility: People can be motivated by being given more responsibility for their own work This is essential, what empowers and conforms to the concept of intrinsic motivation based on the content of the job This means that employees can apply the skills they value to perform the job and at the same time realize that they have the ability to control and determine how to accomplish these goals

 Personal growth: Most people want to learn and develop beyond their current job Employers can provide potential candidates with the opportunity to receive

training and experience from previous colleagues Excellent individuals are guided and encouraged to achieve careers in accordance with their abilities and aspirations Some examples of such programs are management and leadership, team leadership development, additional skills training, one-on-one coaching and coaching

b Remuneration related to the working environment

Creating a fun, challenging and empowering work environment where individuals can use their ability to do meaningful work for which they are shown appreciation is likely to be a more certain way to enhance motivation and performance

- although creating such an environment can be more difficult and take more time than simply hanging out awards

 Inspiration and values

 Quality of leadership: A comprehensive and inspirational leader will create

a team of passionate people, a team that can overcome all challenges Leadership styles and behaviors have a great impact on the organization's values and behaviors They also play an important role in building and maintaining relationships with employees Since then promote and ensure the performance of employees

 Communication: Not just about the quality of organizational communication, transparency and honesty An important part of organizational communication is the 'voice of the employee' It demonstrates the normal working relationship between employees and their managers, empowers employees directly and indirectly to contribute to decision making within the company and therefore it is closely linked to Other reward factors such as recognition, an opportunity for achievement

 Enabling environment

 Physical environment: Well-designed and organized offices and work areas make a significant difference to employee performance A bleak working environment can deliver bad messages to employees about how the company values its employees and the standards employees expect

 Tools and equipment: We are living in a world where science and

opportunity to work with modern tools and equipment, whether it is the latest lightweight laptop, network or mobile phone In addition to upgrading technology, it also helps employees work more effectively, quickly and easily

 Work/life balance

 People do not leave their lives to work Businesses in the 21st century require employees to work in pressure environments with too much workload, which causes stress and affects the quality of work So building flexible and reasonable working hours is very important

 Social environment: Most employees feel the work environment is too serious and impersonal; they cannot find a sense of belonging Regularly organize outside activities such as dining, relaxation, team building, volunteering

to help employees engage, improve workplace relationships

2.3 Factors influencing employee remuneration

The personnel remuneration system in the enterprise is affected by many related factors, which can be divided into two groups: factors of external environment, factors

of organization - enterprises

Remuneration

Bussiness Strategy

Evaluation Job Employees

Figure 2.2 Influencing Factors of Remuneration (K Aswathappa, 2013)

Labour Market

Cost of living

Labour Unions Legislations

Economy

Society

External Factors

Internal Factors

2.3.1.2 Cost living

This criterion is important during periods of price increases Businesses must maintain a minimum standard of living, ensuring a stable life for workers to focus on work and dedication So many companies include an escalation clause in their pay arrangements whereby dearness allowance levels increase or decrease depending on the fluctuation of the consumer price index (CPI)

2.3.1.3 Labor Unions

This is an organization representing and protecting workers The presence or absence of labor organizations often determines the amount of wages paid to employees In many cases, employers are forced to make concessions under the pressure of labor representatives to determine and modify the wage scale With the support of trade unions, stimulating employees to work is easier and more successful

2.3.1.4 Economy

The growth of the economy directly affects the production and business activities of enterprises, thereby affecting the salaries of workers When a financial crisis and recession hits, businesses may face a difficult situation, having to cut down

on work force and business spending, which directly affects the wages of workers In contrast, when the economy is growing well, businesses are favorable in their business activities, profits increase as a basis for increasing wages of workers