ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH --------------------- NGUYỄN HỒNG HẠNH MOTIVATING EMPLOYEES AT BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM JSC (BIDV) TẠO ĐỘNG LỰC CHO NGƯỜI LAO ĐỘNG TẠI NGÂN HÀNG THƯƠNG MẠI CỔ PHẦN ĐẦU TƯ VÀ PHÁT TRIỂN VIỆT NAM (BIDV) LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH HÀ NỘI - 2019 TIEU LUAN MOI download : skknchat@gmail.com ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH --------------------- NGUYỄN HỒNG HẠNH MOTIVATING EMPLOYEES AT BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM JSC (BIDV) TẠO ĐỘNG LỰC CHO NGƯỜI LAO ĐỘNG TẠI NGÂN HÀNG THƯƠNG MẠI CỔ PHẦN ĐẦU TƯ VÀ PHÁT TRIỂN VIỆT NAM (BIDV) Chuyên ngành: Quản trị kinh doanh Mã số: 60 34 01 02 LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH NGƯỜI HƯỚNG DẪN KHOA HỌC: TS. TRẦN KIM HÀO HÀ NỘI - 2019 TIEU LUAN MOI download : skknchat@gmail.com DECLARATION The author confirms that the research outcome in the thesis is the result of author‘s independent work during study and research period and it is not yet published in other‘s research and article. The other‘s research result and documentation (extraction, table, figure, formula, and other document) used in the thesis are cited properly and the permission (if required) is given. The author is responsible in front of the Thesis Assessment Committee, Hanoi School of Business, and the laws for above-mentioned declaration.
TIEU LUAN MOI download : skknchat@gmail.com ACKNOWLEDGEMENT First and fore most I offer my sincerest gratitude to all Professors of Hanoi School of Business, Vietnam National University (HSB, VNU) for giving me knowledge that is used as basement for my thesis. I am heartily thankful to my supervisor, Dr. Tran Kim Hao whose precious patience, valuable guidance and support from the initial to the final level enabled me to develop an understanding of the subject, thereby applying knowledge into real cases throughout my thesis. Without his encouragement and effort, this thesis would not have been completed or written.
One simply could not wish for a better or friendlier supervisor. During the implementation process, due to limitations of experience and research time, my thesis has unavoidable mistakes. I would like to receive the comments of the professionals, and friends to complete thesis better./201… > <Nguyen Hong Hanh> TIEU LUAN MOI download : skknchat@gmail.com TABLE OF CONTENT ABBREVIATIONS. i LIST OF TABLES.
ii LIST OF FINGERS.1 CHAPTER 1: THEORY BACKGROUND ON EMPLOYEE MOTIVATION. Overview of motivation. Motivation and employee motivation. Role of employee motivation.
Types of motivation. Maslow's hierarchy of needs theory .2 Two-factor theory of Herzberg. McClelland‘s Achievement Theory. Adams‘s Equity Theory.
Research model for analyzing employee motivation. Experience about motivating employees of some organizations .23 CHAPTER 2: CURRENT SITUATION OF EMPLOYEE MOTIVATION AT BIDV. Overview of BIDV. Labor force structure.
Summary of policies and changes to policies for employees .32 TIEU LUAN MOI download : skknchat@gmail. Analyze and evaluate current situation of employee motivation at BIDV – head office. Analyzing the situation of motivate employees at BIDV .37 Achievement is an important factor to motivate for employees to work better and contribute for the success of the company. Achievement shows successful completion of work, having a good idea or solutions to problems, made revenue for the company… Achievement is at the fourth level in Maslow hierarchy of need, after the physical, safety, and social needs, but it is internal esteem need.
So, it is necessary for all company to makes their employees get achievement in working progress. Evaluate the employee motivation at BIDV .51 CHAPTER 3: RECOMMENDATIONS FOR IMPROVING EMPLOYEE MOTIVATION AT BIDV. Development of BIDV toward 2020. Solutions and recommendations to enhance employee‘s motivation .Determining the needs of employees.
Improving and completing the Key Performance Indicators (KPI). Adjusting the daily workload. Set up the suitable training course and training policy to improve knowledge and skill for employee. Providing promotion opportunities to employees‖.
Setting up the encouragement culture in internal bank itself. Encouraging the employees to motivate themselves. Maintaining and continuously developing BIDV‘s strengths in motivation .74 LIST OF REFERENCE .83 TIEU LUAN MOI download : skknchat@gmail.com ABBREVIATIONS BIDV Bank for Investment and Development of Vietnam JSC HR : Human Resources HRM : Human Resources Management HSB : Hanoi School of Business KPI : Key Performance Indicator KPIs : Key Performance Indicators MBA : Master of Business Administration i TIEU LUAN MOI download : skknchat@gmail.com LIST OF TABLES Table 2.1: Financial performance of BIDV from 2015 to 2017 .2: List of Board of Directors and Management of BIDV .3: BIDV's employee structure in gender .4: BIDV's employee structure in age .5: BIDV's employee structure in qualification .37 ii TIEU LUAN MOI download : skknchat@gmail.com LIST OF FINGERS Figure 0.2: Maslow's Hierarchy of Needs .3: Two factor - theory .1: Organizational structure of BIDV .2: Labor structure of BIDV .6: Employee's assessment about BIDV‘s working conditions .7: Employee's assessment about BIDV‘s supervision .8: Employee‘s assessment about BIDV‘s salary .9: Comparison of average income of banks during the first 6 months of the year 2018 .10: Employees‘ assessment towards BIDV‘s Policy and administration .11: Employees‘ assessment towards BIDV‘s interpersonal relations .12: Employee's assessment towards BIDV‘s job security .13: Employee's assessment toward BIDV‘s achievement .14: Employees‘ assessment towards BIDV‘s recognition .15: Employees‘ assessment towards BIDVs advancement .16: Employees‘ assessment towards BIDV‘s work itself .17: Employees‘ assessment towards BIDV‘s personal growth .18: Overall employees‘ motivation at BIDV .51 iii TIEU LUAN MOI download : skknchat@gmail. Rationale Currently, Human Resource Management is becoming more important because employees and their knowledge are the most important aspect affecting productivity of the organization.
To maintain and develop the human resource and attract the talented employees, motivation is one of the most important tools of Human Resource Management. A reality of Vietnam‘s job market is that not many companies can develop clear strategies and plans to motivate the talented, so after working for a period of time at the company and having obtained certain knowledge, experience and relationships, they‘re willing to quit the current job to apply for another job that offers better welfare and career prospect. Unfortunately, when enterprises lose the talent, they do not only lose employees but also other investments such as training cost, time, customers and even opportunity cost, etc. Thus, the enterprises also need to design motivation systems in order to encourage employees to perform as well as to attract and retain potential candidates.
BIDV was established on 26 April 1957 as Bank for Construction of Vietnam, under the Ministry of Finance. At 01 May 2012, BIDV has successfully equitized, converting into Joint Stock Commercial Bank for Investment and Development of Vietnam. During the years operating in Vietnam, the bank had a lot of achievements and breakthroughs. At the present, BIDV is one of the biggest and strongest banks in Vietnam.
In the recent years, affected by many factors both in outside such as unstable economy, increasing inflation and difficult stock market, BIDV‘s policies just focused on keeping the stable status for both of employees and the bank but not on boosting the employees‘ motivation and morale. And inside, that the bank has some internal problems such as risk in career and human policies has led to the decreasing of many employees both at staff and managers. According to the bank's quarterly financial report for the fourth quarter of 2017 at nearly 20 banks including both private and state-owned banks, three banks saw a sharp drop in the number of employees last year, including BIDV, NCB and SHB. Remarkably, BIDV last year increased the staff expense from 24.8 million dongs per month to 28.6 million 1 TIEU LUAN MOI download : skknchat@gmail.com dongs, up nearly 4 million per month.
Nevertheless, the number of employees here has dropped sharply last year. The bank‘s experienced employee has left, this led to employee becoming more rejuvenated and more inexperienced while it was continuously expanding and recruiting. Hence, to improve productivity, job performance as well as the quality of human resource for BIDV to meet the upcoming challenges, the managers should focus on finding the solutions to solve the existing issue – employee motivation. Therefore, through the topic: “Motivating employees at Bank for Investment and Development of Vietnam JSC”, the researcher focuses on studying current motivation situation of the bank, therefore, giving recommendations to improve employee motivation at BIDV.
Literature review Employee motivation may differ for various people from organization to organization. Studying employee motivation is very necessary in many enterprises and organizations to make them get deeply involved in their jobs. There are many theories about motivating employees in the world for a long time. The researchers have approached to the employee motivation in two ways: the human needs such as Maslow, Herzberg and the employee‘s behaviors such as Adams, Vroom, Skinner and so on.
Inherit the above theories and practices of employee‘s motivation, some studies have point out the motivation factors and the ways to motivate employees. Pink is an author of "Drive – The Surprising Truth About What Motivates Us", which is the best - seller. The content of this book is a new thesis on the motivation of human work in the 21st century, which the author considers that organizations and enterprises have not exploited and properly evaluated its role because of depending too much on the old motivational models. In Drive, he reveals the three elements of true motivation: *Autonomy—the desire to direct our own lives *Mastery—the urge to get better and better at something that matters *Purpose—the yearning to do what we do in the service of something larger than ourselves 2 TIEU LUAN MOI download : skknchat@gmail.com Actually, there should be a combination of all three types of motivation 1.0 under different circumstance.
It is necessary to combine all three types of motivation at the same time. Al Araim, (2013), Exploratory Study on Employees‘ Motivation in The Private Banking Sector, International Journal of Organization Theory and Behavior. The researcher used a framework which contains monthly salary, age of employee, gender of employee, relationship with supervisor, relationship with colleagues, job autonomy, personal financial management skill, education level of employee, experience in banking sector. The results of this study provided some insights into the importance of employees‘ monthly salaries in boosting motivation.
Further, this study showed the positive impact that employees‘ relationship with their colleagues has on motivation. Master thesis: Doan Thi Thanh Tam, (2013); Enhancing Employee Motivation At Anphanam International Co., Ltd, Hanoi, Vietnam. In this thesis, the author used Herzberg‘s motivation model which consisted of Hygiene factors and Motivation factors. She exposed the relationship among 3 models of Maslow, Herzberg, and Adam.
Based on the Herzberg‘s model, the author studied motivation situation at chosen company then proposed suitable recommendations to solve their problems. Besides, the author has also read and researched some studies such as: Tran Thi Thu Ha, head of human resources of Vietnam Joint Stock Commercial Bank for Industry and Trade, motivating employees at Viettinbank; Vu Hong Van, Thai Nguyen university, motivating employees to improve the effective of managing human resources at Song Cong Diesel Limited Compnay and other studies on newspaper, magazine, which is researched on the topic of motivating employees. Aims of research This research aims to achieve the following objectives: To review theoretical background on employee motivation.‖ To identify the dimensions and attributes to analyze employee motivation.‖ To investigate and analyze the current situation of employee motivation at BIDV To propose suitable solutions to enhance motivation for employees at BIDV 3 TIEU LUAN MOI download : skknchat@gmail. Objects of research The research‘s object is studying motivating employees at Bank for Investment and Development of Vietnam JSC (BIDV) and giving recommendations to improve employee motivation policies in short term and long term.