ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH --------------------- NGUYỄN THỊ DIỆU LINH MOTIVATING THE WORKFORCE AT PVC COMPANY TẠO ĐỘNG LỰC CHO NGƯỜI LAO ĐỘNG TẠI TỔNG CÔNG TY XÂY LẮP DẦU KHÍ (PVC) LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH HÀ NỘI - 2020 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH --------------------- NGUYỄN THỊ DIỆU LINH MOTIVATING THE WORKFORCE AT PVC COMPANY TẠO ĐỘNG LỰC CHO NGƯỜI LAO ĐỘNG TẠI TỔNG CÔNG TY XÂY LẮP DẦU KHÍ (PVC) 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 HUY PHƯƠNG HÀ NỘI - 2020 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.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 Management, and the laws for above-mentioned declaration.
i LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com TABLE OF CONTENTS DECLARATION. i TABLE OF CONTENTS. ii LIST OF TABLE.v LIST OF FIGURES .1 CHAPTER 1: OVERVIEW OF WORK MOTIVATION FOR EMPLOYEES .1 Human resource management and encouragement .2 Goals of human resource management. Theories on work encouragement and motivation through needs.
Maslow’s hierarchy of needs (1908-1970). Frederick Herzberg’s Two-Factor Theory: .McClelland’s theory of satisfied needs:. Douglas McGregor’s X-Y theory: .3 Encouragement through expectation. Encouragement through equity .5 Other applications in encouragement and motivation.
Rewards based on a model that determines the level of income satisfaction. Experience in motivating employees at the business. Enhancement of the role of work motivation. Common shortcomings of work motivation at the businesses .19 Summary of Chapter 1 .20 CHAPTER 2: EVALUATION OF THE CURRENT STATUS OF WORK MOTIVATION AT PVC.
History and important development milestones of PVC .21 ii LUAN VAN CHAT LUONG download : add luanvanchat@agmail.2 Overview of work motivation at PVC .1 Work performance evaluation. Evaluation of current status .1 Survey of Board of Directors:. Factors affecting employee rewards at PVC: .5 Conclusion on issues to be improved by urgency and feasibility .38 Summary of Chapter 2: .40 CHAPTER 3: SOLUTIONS AND RECOMMENDATIONS TO IMPROVE WORK MOTIVATION AT PVC. Improvement of performance evaluation.1 Improvement of performance evaluation process and method.
Establishment of a performance evaluation quality monitoring process: 42 3. Development of evaluation skills of managers .2 Supplementation of reward policies:. Development of achievement-based bonus policies: .2 Supplementation and amendments of reward policies to encourage employees to work at the Corporation for a long time:. Specific actions to positively impact the employee performance and reward evaluation results .1 Collection and analysis of employees’ opinions on human resource management.2 Supplementation of Key Performance Indicators (KPI) .3 Employee encouragement forms.
Implementation of human resource management support activities .1 Communication culture development in the Corporation. Company tradition and emulation movement development: .47 iii LUAN VAN CHAT LUONG download : add luanvanchat@agmail. Using human resource management software:.61 iv LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LIST OF TABLE Table 1.1: Theory X, Theory Y and Theory Z. Error! Bookmark not defined.2: 3 application steps of V.
Vroom’s theory of expectation. Error! Bookmark not defined.3: 8 Main purposes of employee rewards. Error! Bookmark not defined. Table 1-4: Rewards: principles, bases, requirements.
Error! Bookmark not defined. Error! Bookmark not defined.3: Assessment results on performance evaluation Error! Bookmark not defined.4: Spiritual reward evaluation results. Error! Bookmark not defined.5: Compensation evaluation results. Error! Bookmark not defined.
v LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LIST OF FIGURES Figure 1.1: 5 Levels of Maslow’s Hierarchy of Needs. Error! Bookmark not defined. Vroom’s theory of expectation (1964). Error! Bookmark not defined.3: Classification of compensation forms.
Error! Bookmark not defined. Lawler’s model of income satisfaction level. Error! Bookmark not defined.1: Organizational chart of PVC as of March 31, 2018. Error! Bookmark not defined.2: Summary of employee survey results.
Error! Bookmark not defined.3: Summary of employee survey results by rank. Error! Bookmark not defined.4: Summary of employee survey results by Department. Error! Bookmark not defined.5: Evaluation on issues to be improved. Error! Bookmark not defined.
vi LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com vii LUAN VAN CHAT LUONG download : add luanvanchat@agmail. Rationale PetroVietnam Construction Joint Stock Corporation (PVC) is an enterprise with 35- year operational history as of 2018. PVC is also a public enterprise, listed on the stock exchange with PVX code and once warmed the hope of investors. Under the parent company - Vietnam Oil and Gas Group (PetroVietnam)’s resolute decisions on divesting capital from subsidiaries outside the main business lines, PVC has been facing difficulties and making losses since 2012.
A number of units had to be dissolved while PVC was a leading enterprise in the field of petroleum construction, affecting the psychology and confidence of employees. Human resources in general and motivating employees in particular are always a hot issue with many creative solutions in each unit. Human resources in general and work motivation and employee satisfaction in particular are always a hot issue with many creative solutions in each unit. Research objectives - Present scientific and practical basis to propose some solutions to create work motivation at PetroVietnam Construction Joint Stock Corporation (PVC) - Analyze and assess the current status of work motivation at PetroVietnam Construction Joint Stock Corporation (PVC).
Clarify the shortcomings in this work and the need to change it. - Propose work motivation solutions to contribute to implementing the business development orientation of PetroVietnam Construction Joint Stock Corporation (PVC) 3. Research questions To meet the above research objectives, the following research questions need to be answered in the thesis: 1. What models and systems have been mentioned in dealing with the work motivation and dedication of employees? 2.
What are the peculiarities of work motivation for employees in the construction industry (or petroleum)? 1 LUAN VAN CHAT LUONG download : add luanvanchat@agmail. What are the achievements of PVC and what are the limitations of PVC in work encouragement and motivation? 4. What improvements does the Corporation need? 4. Research Subject and Scope - The research subject of this thesis is: Work motivation at PetroVietnam Construction Joint Stock Corporation (PVC) - Research scope: PetroVietnam Construction Joint Stock Company (PVC) Data source Data for the study are taken from two main sources.
Secondary data are collected from industry reports, company reports, annual reports, publications and other related websites. Primary data are collected directly from surveys and selected interviews with a number of internal and external employees. Research methods On-site research is conducted as a basis for learning about and selecting appropriate analytical models and tools before the questionnaire is designed to collect information through social survey methods. About 100 questionnaires are randomly distributed to different groups of employees in the Corporation.
The collected data is processed by excel spreadsheets to obtain meaningful analysis results and exact answers to the above mentioned research questions. Thesis design The Thesis consists of five parts: Part 1: Introduction: Rationale, scope, subject, objectives and expected research findings; Part 2: Summary of theoretical models that can be used to analyze the current status of work motivation for employees in the Corporation. Part 3: Actual survey and analysis results to find out solutions to further improve the work encouragement and motivation activities at PVC. Part 4: Some suggestions to improve work motivation at PVC Part 5: Conclusion 2 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com CHAPTER 1 OVERVIEW OF WORK MOTIVATION FOR EMPLOYEES 1.1 Human resource management and encouragement There are many different concepts of human resource management: According to American Professor Dimock, “Human resource management includes all measures and procedures applied to employees of an organization and resolves all arising cases related to a certain type of work”.
Professor Felix Migro said that “Human resource management is an art of selecting new employees and using existing employees so that each person may reach the maximum labor productivity and quality” Human resource management philosophy: Despite the changes in the labor market and the state’s approach to the economy, an approach that is considered to be the most practical and constructive based on the original ideas of Enid Mumford (1972) and McCarthy and Ellis (1973) were first introduced in 1979, then slightly revised in 2002. The approach states that: In practice, human resource management is considered a series of activities aimed at enabling employees and employer to reach a common agreement on the nature and purpose of the work relation and finally comply with the signed agreement (Torrington and Chapman 1979, page 4). The definition in the 5th revision (2002) is as follows: “Human resource management is a series of activities that firstly enable employees and employer to reach a common agreement on the purpose and nature of the labor relation, secondly ensure that the agreement is fully implemented. 3 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Human resource reward is the process of “taking care of the material and spiritual life of employees so that they can complete their assigned tasks, thereby fulfilling the goals of the enterprise”.1 Encouragement and motivation 1.2 Goals of human resource management The basic goal of any organization is to effectively use human resources for its overall goals.
Therefore, human resource management in enterprises is often oriented with the following basic goals: Social goals: Enterprises operate not only for profit but also for the benefits of society. Human resource management is aimed at attracting talented people, at the same time, consolidate and maintain the quantity and quality of personnel needed to achieve the set goals of the company. Human resource management is aimed at finding out and developing the best methods to effectively use human resources to improve labor productivity, at the same time, facilitate the employees’ continuous development. Human resource management is aimed at motivating employees, creating favorable conditions for them to express, develop and devote their talents to the company, at the same time, help them to attach, devote and loyal to the company.
Theories on work encouragement and motivation through needs The study and application of need theories in human resource management will help managers identify the needs of employees as a basis for developing appropriate reward policies as well as appropriate measures to motivate employees. Maslow’s hierarchy of needs (1908-1970) According to Maslow: - Human behavior is driven by a chain of needs. 1 Vu Thuy Duong & Hoang Van Hai, “Human Resource Management” Textbook, Statistical Publishing House 2008 4 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com - People have special talents that enable them to make independent choices, thus giving them control of their destiny. - Human needs including five (05) categories are arranged in different hierarchies and modeled as follows: Self-actualization Esteem Love/belonging Safety Physiological Figure 1.1: 5 Levels of Maslow’s Hierarchy of Needs Maslow believes that effective leadership and management must be paid attention to meeting the needs of people.
Frederick Herzberg’s Two-Factor Theory: In 1966, Frederick Herzberg wrote the famous book titled “Work and nature of man” about human motivation, he proposed two factors: Motivator factor: achievement, recognition, work itself, responsibility, advancement, growth. All of these things create job satisfaction. Demotivate factor: leads to dissatisfaction if it is not met, does not motivate people to work. For examples, demotivate factor includes organizational policy, work supervision, working conditions, salary, relationships with colleagues, relationships with subordinates.