lOMoARcPSD|39475011 NATIONAL ECONOMICS UNIVERSITY BUSINESS SCHOOL NGO THI HUYEN TRANG FACTORS AFFECTING EMPLOYEE MOTIVATION OF A79 JOINT STOCK COMPANY Bachelor of Business Administration in English (E-BBA) Thesis HANOI, 2023 Downloaded by bong bong (bongbong1@gmail.com) lOMoARcPSD|39475011 NATIONAL ECONOMICS UNIVERSITY BUSINESS SCHOOL FACTORS AFFECTING EMPLOYEE MOTIVATION OF A79 JOINT STOCK COMPANY Bachelor of Business Administration in English (E-BBA) Thesis Student : Ngo Thi Huyen Trang Class : EBBA 12. Hoang Vu Hiep HANOI, 2023 Downloaded by bong bong (bongbong1@gmail.com) lOMoARcPSD|39475011 ACKNOWLEDGEMENT On the completion of this bachelor thesis, I have received tremendous support as well as care from many individuals and organizations. The research was also completed based on references from relevant sources such as research reports, articles, and books from international universities, research institutes, and individuals. Furthermore, there is also considerate support from BSNEU lecturers, A79 JSC staff, family, and friends.
First of all, I would like to send the sincerest thanks to PhD. Hoang Vu Hiep who have directly guided and spent a lot of time and efforts to help me in the whole process of completing the thesis. I am really grateful for all the teachers and lecturers of the Business School of National Economics University who have dedicatedly imparted valuable knowledge and helped me in the four years of studying in general and 4 four months of preparing the thesis in particular. I also want to give special thanks to managers at A79 JSC to have allowed my internship and employees who have helped guiding me through the research activities and responding to the surveys and interviews.
Thank you so much. Ngo Thi Huyen Trang Downloaded by bong bong (bongbong1@gmail.com) lOMoARcPSD|39475011 TABLE OF CONTENTS ACKNOWLEDGEMENT ABBREVIATIONS LIST OF TABLES LIST OF FIGURES EXECUTIVE SUMMARY. Data analysis approach.6 CHAPTER 2: LITERATURE REVIEW AND THEORETICAL FRAMEWORK. Definition of Motivation.
The nature of employee motivation. Theoretical framework of Motivation. Hierarchy theory of needs. Two Factor Theory.
Theory of Needs. ERG Theory of Needs. The equity theory. Related Empirical Studies.25 CHAPTER 3: RESEARCH METHODOLOGY.
Secondary data collection.28 Downloaded by bong bong (bongbong1@gmail. Primary data collection. Data collection method. Sampling and data collection.33 CHAPTER 4: OVERVIEW OF A79 JSC AND CURRENT SITUATION OF EMPLOYEE MOTIVATION AT A79 JSC.
Introduction of A79 JSC. Current Situation of A79 JSC. Descriptive Statistic of Respondents. Research results and analysis.
Rating by Cronbach’s Alpha. Exploratory Factor Analysis (EFA). Pearson’s Correlation Test. Linear Regression Analysis Results and Hypotheses Testing.
Summary of findings. Summarize of analysis results. Strengths of A79 JSC. Weaknesses of A79 JSC.54 CHAPTER 5: RECOMMENDATIONS FOR IMPROVING EMPLOYEE MOTIVATION AT A79 JSC.
Improve employee awareness of work itself factors. Improve the company's salary and benefit policies. Improvement regarding development and training policies. Improvement regarding colleagues.
Improvement regarding supervisors and supervisor relationship.61 Downloaded by bong bong (bongbong1@gmail.com) lOMoARcPSD|39475011 ABBREVIATIONS CFA Confirmatory factor analysis C Colleagues DT Development and Training Policies EFA Exploratory factory analysis L Leadership M Employee Motivation JSC Joint Stock Company KMO Kaiser-Meyer-Olkin SB Salary and Benefits WC Working Conditions WI Work itself Downloaded by bong bong (bongbong1@gmail.com) lOMoARcPSD|39475011 LIST OF TABLES Table 2. Summary of Empirical Studie. The measurement scale of “Work itself. The measurement scale of “Development and Training Policies”.
The measurement scale of “Salary and Benefits”. The measurement scale of “Colleagues”. The measurement scale of “Leadership”. The measurement scale of “Working Conditions”.
The measurement scale of “Employee motivation”. Detailed information of A79 JSC. The survey respondent characteristics. Descriptive statistics of Work Itself.
Descriptive Statistics of Development and Training Policies. Descriptive Statistics of Salary and Benefits. Descriptive Statistics of Colleagues. Descriptive Statistics of Leadership.
Descriptive Statistics of Working Conditions. Descriptive Statistics of Employee Motivation. Results of reliability test. KMO and Bartlett's Test.
Rotated Component Matrix.52 Downloaded by bong bong (bongbong1@gmail.com) lOMoARcPSD|39475011 LIST OF FIGURES Figure 2.1: The levels of Maslow hierarchy of needs. Theory about two factors of Herzberg in motivation. Proposed conceptual framework.2: Quantitative Analysis Process.29 Downloaded by bong bong (bongbong1@gmail.com) lOMoARcPSD|39475011 EXECUTIVE SUMMARY Background Information In the contemporary business landscape, characterized by heightened competition, dynamic market demands, and the need for constant innovation, the role of employee motivation in organizational development and success is paramount. Motivation is not merely an individual driver; it serves as a vital force propelling both organizational strength and individual employee progress.
In the face of significant global challenges, such as the impact of the ongoing global pandemic and geopolitical conflicts, workplace motivation emerges not only as a psychological factor but as a guiding force shaping employee behavior. Motivated employees not only navigate challenges positively but also contribute to the creation of a positive, innovative, and energetic work environment. Successful organizations leverage a passionate workforce that not only efficiently performs tasks but also generates innovative ideas, adding substantial value. Recognizing the critical importance of workplace motivation, both for employees and organizational leadership, understanding the factors influencing motivation becomes essential.
This understanding enables the formulation of effective human resource management policies and strategies, fostering sustainable organizational development. Purpose of the Study Commencing from the beginning of 2023, A79 Joint Stock Company (A79 JSC) has encountered significant challenges and market fluctuations, impacting its financial stability. The resulting cost-cutting measures and budget control have had a direct bearing on employee benefits, creating financial uncertainty and diminishing the overall value of the benefits package. Consequently, there has been a noticeable decline in employee motivation and commitment.
This situation, if prolonged, poses the risk of employee resignations and diminished work quality, adversely affecting the company's competitiveness. Considering these challenges, the urgency of maintaining and enhancing employee motivation is paramount for A79 JSC's leadership. Therefore, the chosen research topic, "Factors Affecting Employee Motivation at A79 JSC" aims to identify these factors, evaluate their impact, and propose solutions. The study seeks to provide profound insights into the structure and impact of motivation on organizational performance, offering valuable guidance to address the current challenges and foster sustainable success.
1 Downloaded by bong bong (bongbong1@gmail.com) lOMoARcPSD|39475011 Methods of data gathering The study utilized quantitative tool to collect primary data. The research constructs a questionnaire in the form of a survey which are sent out to employees of A79 JSC to fill the answers. Overview of findings The analysis of employee motivation at A79 JSC reveals a multifaceted landscape. 5 factors influencing motivation include Work itself, Development and Training Policies, Salary and Benefits, Colleagues, and Leadership.
The study's reliability is confirmed by Cronbach's alpha coefficient, while factor analysis identifies Work itself as the most significant motivator. Positive achievements include employees finding their roles fitting well with their abilities, high satisfaction with salary and benefits, strong colleague relations, and effective leadership. However, weaknesses such as limited development opportunities, delayed salary payments, and perceived gaps in advancement opportunities highlight the need for strategic adjustments in human resources and financial management to maintain a resilient and satisfying work environment at A79 JSC. Brief description of recommendations From the analysis results, A79 JSC seems to be having certain operational gaps regarding variables “Work itself, Development and Training Policies, Salary and Benefits, Colleagues, and Leadership”.
Recommendations are given to A79 JSC include: - Optimizing processes, prioritize tasks, conduct regular evaluations, invest in training, and build a flexible team to create a positive work environment. - Optimizing financial management, streamlining payment processes, conducting market salary evaluations, developing flexible welfare policies, improving internal communication, and creating opportunities for salary increases and promotions. - Establishing a clear training strategy, diversify courses, create practical opportunities, provide financial support, implement continuous evaluation, and encourage a self-directed learning mindset. - Fostering a positive work culture, implementing reward and recognition policies, enhancing internal communication, developing a mentorship 2 Downloaded by bong bong (bongbong1@gmail.com) lOMoARcPSD|39475011 program, conducting employee opinion surveys, and implementing team training programs.
- Investing in leadership training programs, foster feedback, and personal support, create an open-door leadership environment, develop recognition and rewards policies for leadership, and implement a comprehensive leadership performance evaluation. 3 Downloaded by bong bong (bongbong1@gmail.com) lOMoARcPSD|39475011 1CHAPTER 1: INTRODUCTION 1. Research rationale Nowadays, as competition intensifies and demands flexibility and innovation, the significance of employee motivation for the development and success of an organization cannot be denied. Motivation is not only an individual drive but also a vital source of energy that propels both organizational strength and individual employee progress.
In the current social and economic landscape facing significant challenges such as the global pandemic's impact, the prolonged conflict between Russia and Ukraine, and persistent global inflation, motivation at work is not merely a psychological factor but also a force shaping and guiding employee behavior in the workplace. Strong motivation not only helps employees overcome difficulties and challenges positively but also creates a positive, innovative, and energetic work environment. Successful organizations often build a passionate workforce community where employees not only perform their tasks efficiently but also contribute innovative ideas, creating added value. The importance of workplace motivation is not only a concern for employees but also a key point for management and organizational leadership.
Understanding the factors influencing motivation enables them to formulate appropriate human resource management policies and strategies, thereby promoting the sustainable development of the organization. In this context, research on "Factors Affecting Employee Motivation" becomes crucial, promising profound insights into the structure and impact of motivation on organizational performance. Starting from the beginning of 2023, facing market challenges and fluctuations, A79 JSC has encountered numerous difficulties in its business operations. These challenges have directly impacted the company's financial situation, leading to cost-cutting measures and budget control.
This has significantly affected employee benefits and welfare policies, creating financial uncertainty for employees, and diminishing the overall value of the benefits package, impacting their quality of life and job satisfaction. Consequently, there has been a considerable decline in employee motivation and commitment. If this situation persists, it may result in employee resignations or inefficient work, diminishing the quality of work and affecting the company's competitiveness in the market. This poses a significant challenge for company 4 Downloaded by bong bong (bongbong1@gmail.com) lOMoARcPSD|39475011 leadership to seek solutions and strategies to maintain and enhance employee motivation, a crucial factor in ensuring the stability and success of the organization during this challenging period.
Recognizing the urgency of the topic, I have chosen the research topic: "Factors Affecting Employee Motivation at A79 JSC" to conduct my study. Research objectives The objectives of the study are as follows: - Synthesize relevant domestic and international research on employee motivation. - Identify factors influencing employee motivation at A79 JSC - Evaluate the impact of each factor on employee motivation at A79 JSC - Propose solutions based on identified factors to enhance employee motivation at A79 JSC 1. Research questions (1) What are the key findings from relevant domestic and international research on employee motivation? (2) Which factors influence the employee motivation of employees at A79 JSC? (3) To what extent do these factors impact the employee motivation of employees? (4) What recommendations should be made to the company management to create effective employee motivation for employees? 1.
Research scope Research object: Factors affecting employee motivation. Scope of space: The study is conducted at A79 JSC in Ha Noi. Scope of time: Primary data are collected within 1 week in November 2023. Data collection Quantitative research was carried out by collecting data through a pre-prepared questionnaire administered via direct surveys.
Questions 1 through 8 of the survey were created to gather respondents' personal data using multiple-choice techniques. The Likert scale will then be used in the study to question participants about their attitudes and plans regarding the brand. They are asked to choose between 5 Downloaded by bong bong (bongbong1@gmail.com) lOMoARcPSD|39475011 ‘strongly agree’ and ‘strongly disagree’ on a scale of 1 to 5, depending on their response (Fisher, 2007, pp. The Likert scale is used from question 7 to question 35, with the intent of learning more about the respondents' behavior.