UPPSALA UNIVERSITÉT & VNU UNIVERSITY OF ECONOMICS & BUSINESS UPPSALA _______ UNỈVERSITET MASTER THESIS OF MPPM MOTIVATING EMPLOYEES - RESEARCH AT THE NORTH PETRO VIETNAM FERTÍLĨZKR AND CHEMICALS .IOỈNT STOCK COMPANY Author: Tran Thanh Binh Supervisor: Prof. Lars-Torsten Eriksson Locaì Supervisor: Ph.D Nguven Ngoe Thang Class: MPPM INTAKE 7 Hanoi, January 2015 1 ACKNOYVLEDGEMENT In completion of this thesis, íìrst of all I vvould like to express my sincere and deep gratitude to Prof. Lars-Torsten Eriksson (Uppsala University - Swedcn) and PhD. Nguyen Ngoe Thang (Vietnam National University), íor their experienced guidance and valuable suggestions throughout this thesis.
I would like to thank you for their support which kept me motivated throughout the writing and editing this thesis. I am also grateíul to the Board of Directors, the colleagues at North PetroVietnam Fertilizer and Chemicals Joint Stock Company who spent their valuable time to ansvver responsibly and thoughtfully the questionaire. Thcretbre, the data for the rescarch could be collected conveniently. Pinally, I would like to thank to my teachers, Goveming Board of University of Economics and Business (Vietnam National University), Uppsala ưniveristy (Sweden); managers and staiTin Centre ofIntemational Training and Education, my dear triends and my tầmily vvho constantly gave me support and encouragement during the time the study vvas carried out.
Research title: Motivating Employees - Research at the North Petro Vietnam Fertilizer and Chemicals Joint Stock Company 2. Level: Final assignment for Master Program in Public Management 3. Author: Tran Thanh Binh 4. Lars-Torsten Eriksson.
Nguyen Ngoe Thang 5. Date when the thesis is presented: 6th Decemher2014 6. Aim: The study has been conducted so as to tìnd out the problems of motivating employees in PVFCCo North based on analyzing the cuưent situation of vvork motivation. In this light, the study sets to recommend some solutions to improve work motivation in the company.
Method: descriptive statistic from the questionaire, sccondary data írom the data source of thc company. Findings and conclusions: The study aims at investigating and then dravving conclusions : - Theoretical basic will be studied to make clear about the importance of motivation. - After analyzing the current situation of work motivation in PVFCCo Norlh, I inysclt' find out some íầtors leading to thc íầct that crcating vvork motivation is inefficient here. Theretbre, some solutions to stimulate employees at work are suggestcd as íbllovvs: • The motivation to employees by tìnancial íầctors : ctTectively reform salary payment policy by applying volumc \veight in salary calculator or paying market cadrcs by perfonnance of tasks, sales and proíìts.
• The motivation to employees hy noníìncial íactores: set up an evaluation system with the Key Períormance Indicator (KPI) to make sure of equality; đeíìne the Compctency Dictionary and Competency Model to use as the background to assess pertbrmance of individual labor.take training soft skills of management for mid-level leaders into consideration. Suggestions for futher research: 3 A number of limitations can be disccmed in the studv due to the time constraints and the limited scope. Firstly, the subject research is only laborer in the PVFCCo North. Secondly, the solutions are still incomplete.
This study thcrefore can be seen as an introduction for more detailed study to bc carried in the 1'uture by myself. The next research can be about building up Competency Dictionary, Competency Model as a basic to evaluate an individual employee, or develop the Key Perlbrmance Indicator to ensure the tầimess of monthly/ annually assessment. Contributions of the thesis: The study has Consolidated the theories on motivation. The results of the study can help PVFCCo North have a vievv of actual situations of work motivation and how effective the stimulating methods work.
They also point out problems vvhich should be concemed to change. Some solutions hence are given in order to improve motivation policy and vvork as the basic for labor management. Keywords: motivation, períbnnance, encouraee, needs, improve 4 TABLE OF CONTENT ACKNONVLEDGEMENT.2 TABLE OF CONTENT. 4 LIST OF TABLES.
Aims of the Study. Subịects and scope ofthe Study. Method of the S tu d y. Structure of the thesis .9 CHAPTER II: THEORETICAL BASE ON MOTIVATION CREATION.
Motivation as a company problem. Fundamental deíìnitions.2 The role of motivation creation. Motivating íacto rs .1 The motivation to employees by íinancial factors.2 The motivation to employees by non-financial íầctors.1 Abraham Maslow’s Hierarchy of Nccds .2 Two Factor Theory of Prederick Herzbcrg.3 McClelland's Human Motivation Theory .4 Equity Theory of Stacy A d a m s .5 Expectancy Theory of Victor Vroom. Literature review on motivation.
24 CHAPTER III: METHODOLOGY. The basis o f research questions panel. Research questions construction. Questionnaire and process of information collection.
Designing research questions. 29 CHAPTER IV: RESULTS AND DISSCUSSÍONS. The overviexv of PVFCCo North.1 The process o f fonnation & development and the business períbrmance.2 Organizational Structure 1'unctions and dutics o f parts.3 The utilization oí'resources. The current situation of motivation implemcntation at PVFCCo N orlh .1 The analysis o f current situation of motivation implementation.
46 CHAPTER V: CONCLUSIONS AND RECOMENDATIONS.1 Solutions on motivation promotion by íìnancial íầctors.2 Solutions on motivation promotion by the non-financial. 54 6 LIST OF TABLES Number Name of tables tables Pages 4.1 Business períbrmance oí' PVFCCo North 31 4.2 Structure ot labor in departments on 01/09/2014 34 4.3 Labor force by level from 2011- 2014 35 4.4 Labor force by age from 2011- 2014 35 4.5 Labor force by gender from 2011- 2014 36 4.6 Results of descriptive statistics for employees’ satisfaction about 40 their income 4.7 Results of descriptive statistics for employees’satisfaction about 41 working conditions 4.8 Results of descriptive statistics for employees, satisfaction about 42 job charateritics 4.9 Results of descriptive statistics f'or employees’ satisfaction about 43 training and promotion opportunities 4.10 Results of descriptive statistics for employees' satisfaction about 44 leaders 4.11 Results of descriptive statistics íòr employees’ satisfaction about 45 their colleagues 4.12 Results of descriptive statistics íor employees’ of work 46 motivation LIST OF DRAWINGS, DIAGRAMS Numbcr diagrams Name of drawings, diagrams Pages drawings 2.1 Maslow's hierarchy of needs 21 2.2 Main elements of Expectancy Theory 23 4.1 Average income of laborers over the past years 32 4.2 Organizational diagram of PVFCCo North 33 4.3 The wishes of the employees in PVKCCo North in the future 47 7 CHAPTER I: INTRODUCTION 1. Rationale A great number of people feel confuscd when fmding thc way to exploit their potentials themselves though each laborers has their own certain intcrnal resources. Humans always have the physcal and mental needs to be satisíìed.
When laborers’ needs are met.thev wil be encouraged to work harder and harder. If no motivation is present in an employee, it is difficult for them to attain labor eoals because at that time the assigned work will be completed without any creativity and effort. As a result, the work will be considered as a duty to pertorm under the labor contract.Organization is a group of laborers in which they vvork tovvards common goals. The goals are promoting the organization development and creating its position in the market.
Vice versa, in order that laborers vvill receive both íìnancial and non-íìnancial revvards from the organization, the managers need to create incentives to promote creativity and job performance of employees. Managers, therefore, must thoroughly understand the management philosophy, especially the desire and psychology of laborers in their organization for the maximum utilization o f each laborer's value. When each employee become the "boss" of his own working process, it mcans that thcy are allovved room to work, fínd the joy, realize their responsibilities and eíTorts to be more productive. This will enablc hoth parties to get committed towards the fulfilment of each other’s needs.
The problem of how to motivate laborers is increasingly bcing more interested in the current enterprises. In reality, employees in North PetroVietnam Fertilizer and Chemicals Joint Stock. Company have been being motivated though the results are not satisíìed as đesired and vvorkers have not perfonned at their best. A very hi^h yield does not reílect the true ability of workers.
From the íầct that I selected the thesis subject: Motivating employees - Research at the North PetroVietnam Fertilizer and Chemicals Joint Stock Company (PVFCCo North) with ambition to offer an insightful understanding of thc cuưent situation of work motivation in the company and propose some solutions to rnotivate laborers contributing to the sustainable and eíTective development of the cornpany. 8 - Research Qucstions: The Study will be conducted to answer the following questions: + What are the current situations of work motivation in PVFCCo North? + What are the solutions to enhance work motivation for laborers in PVFCCo North? 2. Aims of the Study The aim ofthis thesis is to summarize the current research fìndings about work motivation, to analyze the work motivation at PVFCCo North and to propose activities that can improve the motivation in this company. Subjects and scope of the Study - Subịects of the Study: the theoretical issues, practices related to motivation creation for laborers.
- Scope of the Study: + About content: The content is mainly related to the motivation creation for laborers in the organization. + About time: This study started from June 2014. + Abouí space: Suhịect focused on researching and proposing solutions in ordcr to create vvork motivation for laborers in PVPCCo North. Method of the Study 4.
Overview of document Analyze and synthesize the documents related to creating vvorkplace motivation: - The role of the human resource management in organizations. - Theoretical Foundations about creating work motivation for laborers working in the organization. - The tools to create motivation for laborers at vvork novv. Investigation survey Base to build questionnaire to research vvork motivation in PVFCCo North: - The theoretical base on motivation for laborers at vvork in the organization, and many domestic and overseas researches about job satisfaction as well as tìnding about the elements to promote the workplace motivation for laborers.
9 - Theory of Herzberg and research model of Smith (1969), vvith the reterence of the expcrts in this íìeld. The motivational í'or laborers working in PVFCCo Nơrth depends on the following íầctors: + Work itsclf + Training opportunities and advancement + Salary + Supervisor support + Co-worker relations The construction of the questionaire is based on the above five components, as vvell as the measurement criteria of each component. Structure of the thesis The thcsis consists of five chapters, speciíìcally: - CHAPTER I: INTRODUCTION - CHAPTER II: THEOREOTICAL BASE ON MOTIVATION CREATION. - CHAPTER III: METHODOLOGY - CHAPTER IV: RESULTS AND DISSCUSSIONS - CHAPTER V: CONCLUSIONS AND RECOMMENDATIONS 10 CHAPTER II: THEORETICAL BASE ON MOTIVATION CREATION 1.
Motivation as a company problem 1. Fundamental deíìnitions a. Needs: Nced is a psychological phenomcnon oí' human; needs are the requirements, wishes and aspirations of people about the materials and spirit to survivc and grow. Depending on the level of awareness, livine environment, the psychological and physical characteristics, diíĩerent people have different needs.
Incentỉves ỉn terms o f economics: An incentive is the subịective goal of human activities in order to meet the demands set forth. The incentive reílects the wants, the needs of people and the reasons for the actions. Human needs are diverse, including the outstanding needs in a certain time. The incentive is the strongest demand of human at a certain time and this have povver over determining humarvs behaviors.
[1] In terms o f psychology: A incentive is a rertection of the obịective world into the human brain. These images control the human activities to satisíy their needs and teelings. Human incentive is based on their necds. Needs will become the incentives when therc are 3 íactors: the wishes, the expectancy; the reality of wishes and surrounding environment conditions.
Promotion: Promotion is the psychological process which occurs due to the purposed and oriented impact of the human. in term of corporate govemance, the promotion is the targeted impact of the enterprise to encourage the employees to improve the achicvements and help them fulfil the missions effectively.