NATIONAL ECONOMICS UNIVERSITY FACULTY OF FOREIGN LANGUAGES ENGLISH FOR BUSINESS DEPARTMENT NGUYEN THU HANG A STUDY ON BUILDING SALARY PAYMENT METHOD ACCORDING TO THE 3P COMPENSATION MODEL IN TECHPRO TECHNOLOGY DEVELOPMENT JOINT-STOCK COMPANY FROM 2018 TO 2019 NATIONAL ECONOMICS UNIVERSITY FACULTY OF FOREIGN LANGUAGES ENGLISH FOR BUSINESS DEPARTMENT SS Ài w b 4 ` rx NGUYEN THU HANG A STUDY ON BUILDING SALARY PAYMENT METHOD ACCORDING TO THE 3P COMPENSATION MODEL IN TECHPRO TECHNOLOGY DEVELOPMENT JOINT-STOCK COMPANY FROM 2018 TO 2019 Ha Noi, June 2020 Nguyễn Thu Hằng — 11161536 — Business English 58A ACKNOWLEDGMENT I would like to acknowledge my gratitude to all those who supported and encouraged me to do my final report. First and foremost, I would like to express my profound gratitude to my supervisor, Assoc. Pham Thi Thanh Thuy, who has guided me with assessment, suggestions, and encouragement toward the completion of this report. Secondly, I would like to thank my colleagues at TECHPRO Tech.
JSC, Hanoi, for their cooperation and comments. I want to give my sincere thanks to Mr. Do Duc Hau — President of TECHPRO Tech. JSC for caring and generating the best conditions for me to access information sources.
Again, without this assistance, this bachelor’s thesis would not have been possible. Lastly, I would like to express my appreciation to all those who directly and indirectly supported me in completing the final report. Nguyễn Thu Hằng — 11161536 — Business English 58A EXECUTIVE SUMMARY In the final report, the author studies the real situation of building the salary payment method according to the 3P compensation model in TECHPRO Tech. JSC in the period of 2018 to 2019.
The thesis aims to systemize theories of salaries and wages for employees, identify the achievements and limitations of building a new salary payment method in the company from 2018 to 2019 and propose some recommendations to further improvement. Therefore, the bachelor’s thesis answers two following questions: Question 1: How the salary payment method was built according to the 3P compensation model in TECHPRO Tech. JSC from 2018 to 2019? Question 2: What are recommendations for further improvement (if any) in the salary payment method according to the 3P compensation model in TECHPRO Tech. JSC? There are two main methods used to collect and process data, which are qualitative and quantitative methods by surveying 60 employees of the company and interviewing experts and managers to get more assessments about the salary payment system and the 3P compensation model.
Excel tool is used to analyze the collected results. JSC has achieved success in using the 3P model. e The company has built a consistent, transparent, and scientific salary payment according to the 3P model. e Salary payment based on the 3P model is relatively fair and reasonable, resulting in encouraging and motivating employees to contribute more for the company.
e The 3P compensation model is applied correctly and effectively. However, the company has some limitations and shortcomings about the number of employees knowing clearly and accurately the 3P model, work performance evaluation and assessment of personal capacity. Based on these findings, the author proposes some suggestions for two main subjects. For employees, they should change their mindsets and perceptions about pay for position, person, and performance by accessing official information and fulfill all assigned tasks.
For managers and leaders, they ought to change the evaluation performance method, build an experienced salary team, focus on legal il Nguyễn Thu Hằng — 11161536 — Business English 58A and financial conditions to implement the 3P model and have a specific roadmap to improve the salary payment system in compliance with the change in awareness of employees to avoid conflicts and directly affect the development of the company. The author desires the above solutions can help the company to improve further the application of the 3P model in the current salary system. 1H Nguyễn Thu Hằng — 11161536 — Business English 58A LIST OF CONTENT ACKNOWLEDGMENTT. HH cọ TH 0 90080 ii LIST OF COINTTENNTT,.
00000604 886 iv LIST OF ABBREVIATIONS. 0G G9 HH TH H04 0000804 vii LIST OF TAB.10 09660910806 viii LIST OF EIGUE. Introduction of the research topic. Aims, research questions and objectives of the Study.
Scope of the Study. Research methodOÌOBY. 6 OVERVIEW OF SALARY AND THE 3P COMPENSATION MODEL. Features and principle Of SŒÏ(ŒT-V.
The importance Of SŒÏ(ŒTJ. Some policies on salary in Vietnamese Ï(4WU. Key Performance Indicator. Definition of Key Performance ÏHÌÏCŒOF.
The importance Of using KẾ Ì. The 3P compensation model ,. Definition of the 3P compensation I1Ođl©ÏL. Principles of building the 3P compensation rmodel.
Pay for Position (PP Ï). Pay for Person (P2). Pay for Performance (P.-- -- cc nh kg ren 14 1. Steps to build a salary payment method according to the 3P l22//1/12/112110/8//10/128PPE0000nn8n8Ẻ.
The importance of using the 3P compensation model in business. The advantages when using the 3P compensation model. 15 IV Nguyễn Thu Hằng — 11161536 — Business English 58A 1. The disadvantages when using the 3P compensation model.
THE REAL SITUATION OF BUILDING AND APPLYING A SALARY PAYMENT METHOD ACCORDING TO THE 3P COMPENSATION MODEL AT TECHPRO TECNOLOGY DEVELOPMENT JOINT-STOCK COMPANY FROM 2018 TO 2019. Overview of TECHPRO Tech. General information of TECHPRO Tech. Missions, visions and COF€ VALUES.
The process offormation and deveÏODII€HÍ. Organizational structure and human resources structure. Organizational SÍTHCÍĂHHTÊ. Functions and duties of the departments.
Salary payment system and salary regulations in TECHPRO Tech. Salary DeH€@[ÏCÍTH€. SH HH net 24 2. The goal of building a salary payment SVSÍ€HH.
Principles for building a salary payment SVSI€HI. Basic salary formula of the COMPANY. The real situation of building and applying a salary payment method according to the 3P compensation model in TECHPRO Tech. JSC from 2018 tO 2Ä(JÍÕ.
Pay for position (P1). Pay for person (ÌP2). The criteria for evaluating empÏoy€€S' competence. Determining pay scale according to employees’ competence.
Pay for performance (ÌP3). ng ng ng 33 2. Evaluating job performance for non-sale eInDÏOy€€S. Evaluating job performance for Sales Departenf.
The salary formula based on the 3P compensation model. Payroll IHI€ÍÏ1Od.1, BASIC SQÍÏ(ŒPY.ĂĂẶ Q1 1k ng 11k kk kg 44 2. cv vn kg kề 44 2. Compensation ANd Deneffits.
cọvà 46 Nguyễn Thu Hằng — 11161536 — Business English 58A 2. Assessing the salary payment method according to the 3P compensation model at TECHPRO Tech. Achievements of building the 3P compensation model. The company builds a consistent, transparent, and scientific salary 2.
The 3P compensation model encourages and motivates employees to contribute more fOr the COHIDQIH. The 3P compensation model is applied correctly and effectively. Limitations of building the 3P compensation model. Not all employees in the company know clearly and specifically about the 3P compensation MOE].
cv kh key 50 2. Limitations on work performance Cvaluation. Assessment of personal competence is unreasonable. Recommendations for emplOyees.
Recommendations for managers and leaders at TECHPRO Tech. Supplementing the criteria for evaluating work performance. Supplementing the criteria for evaluating work performance. Completing the evaluation CYCÏ€.
Being public and transparent in salary formulas and salary scale for 2//7/171/22PEEEREREREREESEEhe. Proposing solutions to improve the conditions and requirements for implementing the 3P compensation I1OđÏGÏ.1, Legal COHHIÍÏOHS. Setting a roadmap for implementation of wage payment according to the 3P compensation Model. cm cv ng 60 CONCLUSIƠN.
G0 cọ cọ THỌ cọ cọ. G0 cọ cọc cọ.10091804 80 67 VI Nguyễn Thu Hằng — 11161536 — Business English 58A LIST OF ABBREVIATIONS Abbreviation Meaning Tech. Development JSC Joint-stock company Dept. Department KPI Key performance indicator Pl Pay for Position P2 Pay for Person P3 Pay for Performance Vii Nguyễn Thu Hằng — 11161536 — Business English 58A LIST OF TABLE Table 2.
Features of human resources in TECHPRO Tech. Job position titles at TECHPRO Tech. Monthly salary based on employees’ qualifications and seniority of the „1. Criteria for evaluating the work performance of employees.
The scale of evaluation criteria for job performance. The general evaluation criteria scale for work performance. The individual competencies evaluation criteria scale for work PeTFOLMANCE. (G0 ST TH nà kh 39 Table 2.
Number of people knowing the salary formula according to the 3P COMpensation MOE]. Improving the evaluation criteria for employees work performance .56 viii Nguyễn Thu Hằng — 11161536 — Business English 58A LIST OF FIGURE Figure 2.1: Logo of TECHPRO Tech.2: The organizational structure of TECHPRO Tech. The reasons for the unreasonable salary coefficient. The reason for inappropriate staff ranking evaluation.
The degree of employees’ satisfaction with monthly salary. The degree of rationality of the current regulation of the company’s 081149109i1501 207787. The degree of rationality of the company current payroll method .47 1X Nguyễn Thu Hằng — 11161536 — Business English 58A INTRODUCTION 1. Introduction of the research topic In Vietnam, enterprises are paying salaries and compensations based on seniority and qualifications.
This salary regime makes wages not associated with the employees’ performance, resulting in losing motivation for employees, especially young talent (Nguyen, T. These are the main reasons for inadequate talent attraction and inefficient operation in companies and businesses. Salary is always the priority concerns of workers and is one of the factors that encourage them to “stick” and contribute more for the business. For businesses, regardless of their type, they need to focus on building a flexible and effective salary payment system (Nguyen, T.
In addition, assessing and considering properly the competence as well as achievements of employees play a vital part in generating motivation and developing businesses. The 3P compensation model includes three criteria which are Paying for Position (P1), Paying for Person (P2) and Paying for Performance (P3), and then combine these three factors to create a salary chart system based on the work results of each person and each department (Tran, T. This is an essential principle when building the 3P approach. Basing on the logical thinking and the time of internship in TECHPRO Tech.
JSC, the author has chosen the topic “A Study on Building Salary Payment Method according to the 3P Compensation Model in TECHPRO Technology Development Joint-stock Company from 2018 to 2019” to implement the final report. The report is the result of the process of exploration, research, and practical surveys. Rationales Paying salary for employees helps the company to have a fair and specific payroll as well as motivate individuals and teams to achieve the company's goals. Therefore, in recent years, TECHPRO Tech.
JSC has focused on building an efficient salary payment system. There are several salary payment approaches applied in businesses, but since 2018, the company has built the 3P compensation model and had an official document policy about this model in 2019. It could be necessary for the company to evaluate the 3P model effectively and propose some solutions to assist employees in receiving a suitable salary based on their Nguyễn Thu Hằng — 11161536 — Business English 58A abilities and aspirations. Therefore, considering the application of the 3P compensation model is one of the current concerns in TECHPRO Tech.
Researching salary has been studied by different authors in different enterprises, especially in Vietnam, such as Nguyen, T. (2015) and so on. However, in the study, the author chooses TECHPRO Tech. JSC to research the 3P compensation model.
First, the research focuses on the real situation of building a salary payment method according to the 3P compensation model to find out the limitations and achievements in the application process. From the assessment, the author proposes some recommendations to improve the application of the 3P compensation model further. Therefore, the author has chosen the topic "A Study on Building Salary Payment Method according to the 3P Compensation Model in TECHPRO Technology Development Joint-stock Company from 2017 to 2019" for her thesis. Aims, research questions and objectives of the study 3.