NATIONAL ECONOMICS UNIVERSITY FACULTY OF FOREIGN LANGUAGES DEPARTMENT OF BUSINESS ENGLISH BUI THI HUONG LAN A STUDY ON SOME EFFECTS OF EMPLOYEE COMPENSATION ON THE WORK MOTIVATION OF SUPPORT DIVISION STAFF AT A JOINT STOCK COMPANY IN VIETNAM AND SOME RECOMMENDATIONS NATIONAL ECONOMICS UNIVERSITY FACULTY OF FOREIGN LANGUAGES DEPARTMENT OF BUSINESS ENGLISH BUI THI HUONG LAN A STUDY ON SOME EFFECTS OF EMPLOYEE COMPENSATION ON THE WORK MOTIVATION OF SUPPORT DIVISION STAFF AT A JOINT STOCK COMPANY IN VIETNAM AND SOME RECOMMENDATIONS Hanoi, April 2023 Bui Thi Huong Lan-11192673-61B Business English ACKNOWLEDGEMENT Firstly, I would like to express my great gratitude to my supervisor, Ass. Pham Thi Thanh Thuy for providing invaluable advice and support. Her dedicated assistance and helpful feedback have significantly enhanced my research paper. I also would like to thank the lecturers at the Faculty of Foreign Languages for facilitating me to fulfill my ideas and complete my research.
Secondly, I want to express my sincere appreciation to Ms. Nguyen Thi Khanh (HR manager) and a team of human resources specialists from Vinhomes Joint Stock Company, who not only gave me an opportunity to intern and experience a professional work environment but also allowed me to access to their data, which was very helpful to me a lot during the process of completing my graduation thesis. Moreover, I would like to thank everyone who responded to the survey questions. Without their assistance, I could not have finished my research.
Last but not least, I am grateful to my family and close friends for their encouragement and support along this trip. They provide me with a lot of inspiration and motivation which help me overcome challenges. Bui Thi Huong Lan-11192673-61B Business English EXECUTIVE SUMMARY Employee motivation is a particularly interesting topic since it not only expresses vitality and adaptability but also has a significant effect on the success or failure of the business. The study aims to analyze the impact of employee compensation on their work motivation with 72 suitable survey samples of Support Division staff at Vinhomes company.
This study used the techniques of exploratory factor analysis and linear regression analysis. The results of the exploratory factor analysis (EFA) indicated that there were 6 influencing factors which are (1) Salary, (2) Benefits, (3) Work, (4) Promotion and Career Opportunities, (5) Working Environment, and (6) Leaders. The results of linear regression analysis identified 4 factors that have a positive impact on work motivation, according to the decreasing level of impact as follows Work, Leaders, Promotion, and Career Opportunities and Benefits. From the research results, the authors have proposed some implications to help the Board of Directors have good policies and solutions to positively affect the working motivation of office staff, contributing to increasing labor productivity and bringing about business efficiency.
il Bui Thi Huong Lan-11192673-61B Business English LIST OF ABBREVIATIONS Abbreviations Explanation ANOVA Analysis of Variance DW Durbin- Watson EFA Exploratory Factor Analysis KMO Kaiser-Meyer-Olkin OLS Ordinal Least Squares SD Support Division Sig Significance level SPSS Statistic Package For The Social Science ill Bui Thi Huong Lan-11192673-61B Business English LIST OF TABLES Table 3.1: Summary of types of compensation affecting to work motivation of staff 27 Table 3.---- 5 5 kg ng 30 Table 4.1: The reliability test results Of Salary .2: The reliability test results of BenefTfS.---+-<ss+ssssesssees 34 Table 4.3: The reliability test results Of WOTK.4: The reliability test results of Work after adJustmen(.5: The reliability test results of Promotion and Career Opportunities .6: The reliability test results of Work condition.7: The reliability test results of Work condition after adjustment .8: The reliability test results of Relationship with leaders and colleagues.9: The reliability test results Of MOfIVAtIOH.10: The KMO test result of the independent variables .11: Rotated component matrix result of independent variables .12: The KMO test result of the dependent variable.13: The result of total variance extracted. ce eeesseeeseceesseeeneeeseeeees 43 Table 4.14: The unrotated matrix result of the dependent variable .15: Summary of variables. - ---- c1 11191 9 1119 1 1 11H ng ng 45 Table 548/00 i10) .18: Table of ANOVA. ng HH ng HH ng ngự 47 Table 4.- 5 6 5 s1 vn HH ng HH ng ni, 48 Table 4.20: Summary of the results of testing the research hypotheses.
51 1V Bui Thi Huong Lan-11192673-61B Business English LIST OF FIGURES Figure 1.1 Organizational structure of Vinhomes ]sC.2 The structure of Support [D1VISIOTI.1: Maslow’s hierarchy of needS.-- -- tt ng ng ni, 22 Figure 2.2: Herzberg’s two-factor theory Of mOfIVAfION.1: Predictable research model .-- s6 xxx EsvEsseksseeseerserse 29 Figure 4.1: Research model after adJustIm€n(.-- «- ««£s«£++£ese+sesseesrs 46 Figure 4.2: Model of the effect of employee compensation on the working motivation of Support Division Staff at Vinhomes JSC.---‹---- «5+ 49 Bui Thi Huong Lan-11192673-61B Business English TABLE OF CONTENTS ACKNOWLEDGEMENT NHƯiẳầẳầồđầđầẳđắaắđáũ. i EXECUTIVE SUMMA RYY.- Ăn HH HH HH ng HH gà nrnưệt il LIST OF ABBREVIA TIONS. HH HH HH nh 11 LIST OF TABLES. - HH HH HH ng HH HH.
iv LIST OF FIGURES 111. The Significance of the SfUdy.--- - x11 SH ng HH Hiệp 1 2. Aims, Objectives and Research Questions of the Study. Scope of the SfUdÌy.
kh HH HT HT HH HH HH nh nh trệt 2 4. HH TH HH HH HH HH 2 CHAPTER 1: AN OVERVIEW OF VINHOMES JOINT STOCK COMPANY AND EMPLOYEE COMPENSATION POLICIES AT VINHOMES. An Overview of Vinhomes JSC oe eeccssesseeeecseessecsseesceseesseesseeseesaeense 4 1. The Development Process and Achievements of Vinhomes.
Corporate Culture at Vinhomes JŠ. The Policies of Employee Compensation for Staff at Vinhomes Company. 10 CHAPTER 2: LITERATURE REVIEẨW. LH HH re 13 2.1 General Theories of Employee Compensation.
The concept of employee compenSaf1OI. The main types of employee compenSafIOn. The General Theory of Motivation for WOFK€fS. The concept Of MOtiVAtION.
Some theories about IOfIVAfIOH.- s6 5 s13 3 ren 21 CHAPTER 3: RESEARCH METHODOLOGY. Exploratory Study to Identify Types of Compensation. Research Model, Proposed Research Hypothesis and Variables. Scale of MeaSUT€IN€TI(.
HH nh r 30 VI Bui Thi Huong Lan-11192673-61B Business English 3. Survey Qu€SfIOTTIA]TC. Data Collection and Processing .- nh HH HT TH HH HH TH Tnhh 31 3. Scale reliability anaÏyS1S.
-- --- c1 S21 SH HH rệt 31 3. Correlation coefficient and linear regression analys1s. 32 CHAPTER 4: DATA ANALYSIS AND MAJOR FINDINGS.1 Types of Employee Compensation Affect the Work Motivation of Support Division Staff at Vinhomes JSC .-- G111 HH HH key 33 4. Likert Scale Reliability Testing.
Exploratory factor analysis and the model adJustment. The analytical results EEA. The model adjustment of research reSuÏfS. Analysis of the Effect of Employee Compensation on the Work Motivation of Support Division Staff at Vinhomes JSC.1 Linear Regression AnaÌÏyS1S.- -- ch HH kg ngư, 51 CHAPTER 5: CONCLUSION AND SOME SUGGESTED SOLUTIONS TO MOTIVATE EMPLOYEES AT VINHOMES JSC.
Summary of EInITBS.- s5 c1 91191191 9 112111 ng ng rh 55 5. Some Recommendations for Improving the Employees Motivation at Mu co,. Limitations and subsequent direction of research.1 Limitations of the ©S€aCHh. Subsequent direction of research.
60 vii Bui Thi Huong Lan-11192673-61B Business English INTRODUCTION 1. The Significance of the Study Any business that engages in production and business operations need to have both human and material resources. The importance of human resources in particular is crucial to the growth of the organization. When people are motivated to work, their performance will achieve higher results, and the turnover rate will be lower.
According to Arman (2009), employees are motivated, they will work 80-90% of performance, and the leave and turnover rate will decrease. Kovach (1995) also pointed out that the biggest problem of managers is to feel exactly the factors that promote employees’ motivation. Therefore, motivation for employees is extremely necessary for business growth. It also makes an important contribution to increasing productivity and quality of labor to help businesses achieve their goals more quickly.
However, in order to retain employees, help them to be motivated to work, be ready to devote and attract talented candidates, the organization must develop suitable employee compensation. Understanding this issue and having appropriate adjustment policies, companies will maintain and develop for a long time and have a foothold in the market. Through the internship at Vinhomes Joint Stock Company, the author is aware that the company has attracted many potential employees but many of them decided to leave the company less than a year later. Recognizing that problem, the author thinks that the company's compensation is facing problems in creating motivation and retaining its personnel.
For the company's growth, it is essential to create motivation for employees in general and Support Division staff in particular. However, in order to have solutions to motivate office staff, the study on employee compensation as well as identify the impact of each factor on the work motivation at the company is indispensable. Because of the practical requirements, the researcher chooses the topic: “A Study on Some Effects of Employee Compensation on the Work Motivation of Support Division Staff at a Joint Stock Company in Vietnam and Some Recommendations” for her graduation project with the desire to improve the efficiency of employees in the company and help them achieve the strategic goals that the company has set. At the same time, the author wants to provide more Bui Thi Huong Lan-11192673-61B Business English experimental evidence for the theoretical foundation of the impact of compensation on the working motivation of the employee.
Aims, Objectives and Research Questions of the Study 2. Aims of the Study The study aims to assess types of employee compensation affecting the motivation of employees in the company and provide some recommendations to promote the motivation of these staff. Research Objectives of the Study (1) Identifying types of employee compensation affecting the working motivation of Support Division staff at Vinhomes JSC (2) Evaluating the impact of employee compensation on the work motivation of Support Division staff at Vinhomes JSC (3) Proposing solutions to improve the motivation of Support Division staff at Vinhomes JSC. Research Questions of the Study Question 1: What types of employee compensation affect the working motivation of Support Division staff at Vinhomes JSC? Question 2: How do the types of employee compensation affect the working motivation of Support Division staff at Vinhomes JSC? Question 3: What are some suggestions to motivate Support Division staff at Vinhomes JSC? 3.
Scope of the Study (1) Research subject: The impact of employee compensation on the working motivation of Support Division staff at Vinhomes JSC. (2) Research scope: Only focuses on the staff of Support Division (3) Contents: Motivation and employee compensation affecting work motivation. (4) Time: From 2020 to 2022. Research Structure The study is divided into five main chapters: Chapter 1: An Overview of Vinhomes Joint Stock Company Bui Thi Huong Lan-11192673-61B Business English This chapter provides general information about Vinhomes Joint Stock Company in terms of the development process, corporate culture and organizational structure; and the policies of employee compensation for staff at Vinhomes.
Chapter 2: Literature Review The chapter two illustrates the fundamental conceptual framework relevant to employee compensation which consists of definitions and the main types. Moreover, this chapter also gave the concept of the term motivation and some popular theories about motivation. Chapter 3: Research Methodology In this chapter, the introduction of participants, as well as the research sample, research model, data gathering methods, and data analysis procedures, would be mentioned. Chapter 4: Data Analysis and Major Findings Based on the survey results, the author synthesizes the collected data, then uses SPSS software to run the application model.
The processing results were provided and then interpreted the factors affecting the work motivation of Support Division staff at Vinhomes Jsc. At the same time, it also shows the level of impact of the factors.