NATIONAL ECONOMIC UNIVERSITY BUSINESS SCHOOL E-BBA PROGRAM ENHANCING LABOR MOTIVATION IN BAO QUANG COMPANY Bachelor of Business Administration in English (E-BBA) Thesis Supervisor : Mcs. Nguyen Tuan Minh Student : Nguyen Quang Hung Class : E-BBA 7A HANOI, 2019 ACKNOWLEDGEMENT First of all, I want to show my appreciation as well as deepest gratitude to everybody who helps me made this study possible. My special thank go to Mr. Nguyen Tuan Minh, a devoted teacher who supports me most of the time.
I have to say that his guide and instruction have a big impact on inspiring me to make this thesis more logical and smooth. Besides, I would like to thank Mrs. Minh and Mr. Dat, who is the General Directors and Mrs.
Nhung, who is General Accountant of Bao Quang Company because of their enthusiastic support and precious data that they provided. Also, I want to express my gratitude to NEU, BSNEU and their teachers, staffs for generating an ideal studying environment, giving me a lot of knowledge and experience over the course. Finally, I wish to thank all my friends who helped and supported me throughout 3-year period. Student Quang Hung 1 TABLE OF CONTENTS ACKNOWLEDGEMENT.
10 CHAPTER 2 – THEORETICAL FRAMEWORK OF EMPLOYEE MOTIVATION. Concept of labor motivation. Creating labor motivation. Theories of motivation.
Maslow’s Hierarchy of Needs. The Herzberg’s Two-Factor Theory. Theoretical model of labor motivation.26 CHAPTER 3 – THE CURRENT SITUATION OF MOTIVATION IN LABORS AT BAOQUANG LIMITED COMPANY.1 Introduction of company.1 Formation and Development.2 The company structure.3 The features of Human Resource in BQC. The current motivations in BQC.
Evaluating the motivations in BQC.2 Weakness and causes.43 CHAPTER 4 – RECOMMENDATION TO IMPROVE THE MOTIVATION IN BQC.1 The current orientation of BQC.2 The point of view of the author.3 Recommendations for improving.56 3 ABBREVIATION BQC Bao Quang Company HR Human Resource HRM Human Resource Management VND Vietnam Dong 4 LIST OF TABLE Table 3.1 Labor structure according to age.2 Labor structure according to gender.3 Labor structure according to management decentralization.4 Labors’ assessment of work conditions in BQC.4 Labors’ assessment of Relationship in BQC.5 Minimum wage according to position in BQC in 2018.6 Allowance per month of BQC in 2018.7 Labors’ assessment of salary in BQC.8 Labors’ assessment of welfare in BQC.8 Labors’ assessment of welfare in BQC.9 Labors’ assessment of bonus in BQC.10 Labors’ assessment of training program in BQC.43 5 LIST OF FIGURE Figure 1.1 Research process for factors affecting labor motivation in Bao Quang Company.1: Monroe’s motivated sequence.2 Maslow’s Hierarchy of Needs.3 Herzberg’s two-factor theory.4 Relationship between Maslow’s Hierarchy needs and Herzberg’s theory.5 Theoretical model of labor motivation.1 Organizational Structure of Baoquang Limited Company.31 6 EXECUTIVE SUMMARY Nowadays, a variety of companies have to face the challenges stemming from fierce competition as well as the instability of the economic environment in Vietnam and Bao Quang Company is not an exception. In order to survive and develop in such a competitive environment, it is necessary for every company to optimize their HR Management. Bao Quang Company is a firm has 5-year period of forming and developing. The company mainly produces high-quality ceramics.
Until now, the firm has two factories and nearly 400 employees. During the period I was an intern at this firm, I had realized that in recent years, there are some problems in terms of creating motivation. To be more specific, some of the methods that BQC applied to inspire their employees are out-dated and inappropriate to the majority of labors. Base on the results of the research, we can determine the current situation of motivation in BQC.
By using Herzberg’s two-factor theory, the author had assessed 8 factors which influence labors’ motivation: Work conditions, Relationship, Salary, Welfare, Bonus, Training Program and Promotion. After using excel and mean value to analyze the results, we have concluded that the firm has several strengths in this field which are needed to maintain such as work conditions, salary, performance appraisal and bonus. Besides, there are still some weaknesses in the aspects of relationship between labors, welfare, training program and promotion. From the result, the author also proposes some recommendation for the firm to improve the motivation as well as inspire labors to work harder and more efficiently.1 Rationale For every country, people are always the most important and fundamental resource that decides the existence, development as well as creating the position of that country in the world.
For businesses, human resources is a key factor to create strength for businesses. Human resources have a tremendous influence on the economic and social development of a country and the competitiveness of an enterprise. Human resources management is considered as a basic element to meet the strategic objectives of enterprises. In the current stage of development, in the trend of global economic integration, businesses to achieve high efficiency in the production and business process must recognize the role of human resource management.
However, to effectively use human resources is not a simple matter, it requires leaders and managers to have a clear view and to grasp the nature, content of the problem as well as doctrines, management models to be able to find an organization that fits their characteristics and conditions. From there, it is possible to develop all its human resources and potentials. Therefore, to lead their employees successfully, want to give them peace of mind to work, managers must know how to motivate them. Wages must be fair and scientific as the biggest encouragement for employees in the current period.
But in the long term, it is the immaterial stimulation such as the work itself and the environment of the working which would be a great source of encouragement. It also helps employees feel comfortable, proud and enthusiastic. Therefore, the issue of creating motivation in the current period needs to be concerned and invested in a proper and timely manner. Bao Quang Company, a company has five years of forming and developing, has invested a lot of attempts to have two production workshops.
As a production company, the firm’s production quality has been affected considerably by the effectiveness of its human resources, especially labors motivation in workplace. In recent years, the company has made great efforts in creating motivation. However, the company’s motivation still exist many shortcomings and it is still an issue that needs to be solved and solved for the company management. More specifically, the current job satisfaction of the employees is quite low.
Depending on the knowledge that I have learned at National Economics University, especially EBBA program as well as the responsibility of an intern who has worked in the firm for nearly 4 months, the author had decided to 8 choose the research topic; “Enhancing labor motivation in Bao Quang Company” as the thesis of graduation.2 Research Objectives Identifying factors which have an impact on generating motivation in BQC. Analyzing the current situation of the factors above. Suggesting solutions which are practical and possible for BQC to improve the motivation.3 Research Questions In order to achieve the objectives above, there are several questions which have to be answered: What are the key factors influencing the motivation in BQC? What is the current situation of these factors? How the company can improve these factors to generate more motivation in BQC? 1.1 Research process The research process is illustrated as below: Figure 1.1 Research process for factors affecting labor motivation in Bao Quang Company 9 1.2 Data collection In this thesis, we mainly use two kinds which are primary data and secondary data. For primary data: Observation Observation could be seen as a method to collect primary data for studies since it is a purposeful measure of watching and listening to the interaction or phenomenon as it takes place.
To have a brief view of the company and its motivation activities for employees so that the author has decided the particular subjects to observe as follows: - Overall working environment in the factory and in the employees' working areas to understand their working conditions - The behavior and work attitude of employees to assess their demand for encouragement - The communication and relationships between employees and managers Survey: Use questionnaire with 20 questions related to Employee motivation. It was sent for total 76 employees in different production lines. The content of questions focused on their satisfaction of their job in general as well as factors affecting the employee motivation in BQC, especially: - Their salary and other remuneration policies - Performance appraisal - Work conditions - Relationship - Promotion - Training program In-depth Interview: Interview is a method of qualitative research which allows researchers ask opened questions and record the participants’ answers. In-depth interview is often carried out with the deputy director and heads of functional departments in BQC about the actual status of its motivation process and has specifically investigated the employees’ opinions to reach the goals and strategies of this organization Firstly, the author prepares some questions to ask both employees and their manager before moving on the separated interview to find out faithful 10 information.
In particular, primary data was collected from in-depth interviews with 8 individuals in BQC about their evaluation of the working process in the company, their reasons for employees’ job dissatisfaction, and their contribution to boost their motivation. Pham Van Dat – CEO - Ms. Pham Thi Ngoc Minh – CEO - Mrs. Nhung - Head of of Human Resource department - Mr.
Hoang – Head of financial department - Mr. Quang – Head of sales department - Mr Hung – Head of production department. - Two employees, each from a workshop of the firm. Secondary data Gather information from textbooks, essays as well as other scientific research reports on labor motivation.
Collect data on performance state in BQC to analyze the current circumstance of the firm’s motivation activities.3 Data Processing Analysis Analyze the situation of motivation process in the company through analyzing results from questionnaires, interviews. to point out the strengths, limitations and causes. Analysis of references on Employee motivation, the employee's characteristics and motivation theories will help the author to identify activities that affect the motivation of the workforce. Generalization Based on the conceptual synthesis, choose the framework of the topic.
Recapitulate the average financial statement, the data from the questionnaire, monthly labor feedback to see the trend of their changes. Summarize the assessments and analysis of the limitations for employee motivating in the company as the basis for find problem solutions. Comparison Compare the average salary of employees in the company with each other and with employees at other companies in the same area to show the difference in wages and benefits. Compare the results of monthly performance for each departments, especially the production, to evaluate the work efficiency.
Analyzing causes and proposing recommendations to create motivation for the departments having lower performance.5 Thesis structure Chapter 1: Introduction of the Study Chapter 2: Theoretical Framework Chapter 3: The current situation of motivation for labors in BQC Chapter 4: Solutions to improve labor motivation in BQC 12 CHAPTER 2 – THEORETICAL FRAMEWORK OF EMPLOYEE MOTIVATION 2. Concept of labor motivation There are many different concepts about motivation in labor but all have the most basic common points. According to the “Human Resource Management” textbook of Nguyen Van Diem-Nguyen Ngoc Quan (2016), we have a concept which is “Labor motivation is the desire and willingness of workers to enhance efforts to aim for a goal, which results”. Regarding to “Organizational Behavior” textbook of Bui Anh Tuan & Pham Thuy Huong (2016), we also have another concept that is “Labor dynamics are internal factors that motivate people to actively work in conditions that enable high productivity and efficiency.
The expression of motivation is the willingness, effort, and passion to work to achieve the organization's goals as well as the employees themselves.” Overall, the motivation in labor comes from attempt and effort of each employee.