Motivating employees reaseach at the north petro vietnam fertilizer and chemicals joint stock company

UPPSALA UNIVERSITÉT &
VNU UNIVERSITY OF ECONOMICS & BUSINESS
UPPSALA
UNỈVERSITET

_______

MASTER THESIS OF MPPM

MOTIVATING EMPLOYEES RESEARCH AT THE NORTH PETRO VIETNAM
FERTÍLĨZKR AND C H E M IC A L S .IOỈNT STOCK COM PANY

Author: Tran Thanh Binh
Su pervisor: Prof. L ars-T orsten E riksson
L ocaì Su pervisor: P h.D N guven N goe Thang
C lass: MPPM INTAKE 7

Hanoi, January 2015


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ACKNOYVLEDGEMENT
In completion o f this thesis, íìrst o f all I vvould like to express my sincere and
deep gratitude to Prof. Lars-Torsten Eriksson (Uppsala University - Swedcn) and
PhD. Nguyen Ngoe Thang (Vietnam National University), íor their experienced
guidance and valuable suggestions throughout this thesis. I would like to thank you
for their support which kept me motivated throughout the writing and editing this
thesis.
I am also grateíul to the Board o f Directors, the colleagues at North
PetroVietnam Fertilizer and Chemicals Joint Stock Company who spent their

valuable time to ansvver responsibly and thoughtfully the questionaire. Thcretbre,
the data for the rescarch could be collected conveniently.
Pinally, I would like to thank to my teachers, Goveming Board o f University
o f Economics and Business (Vietnam National University), Uppsala ưniveristy
(Sweden); managers and staiTin Centre ofIntemational Training and Education, my
dear triends and my tầmily vvho constantly gave me support and encouragement
during the time the study vvas carried out.


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ABSTRA CT
1. Research title: Motivating Employees - Research at the North Petro Vietnam
Fertilizer and Chemicals Joint Stock Company
2. Level: Final assignment for Master Program in Public Management
3. Author: Tran Thanh Binh
4. Supervisors: Prof. Lars-Torsten Eriksson. Dr. Nguyen Ngoe Thang
5. Date when the thesis is presented: 6th Decemher2014
6. Aim: The study has been conducted so as to tìnd out the problems o f motivating
employees in PVFCCo North based on analyzing the cuưent situation of vvork
motivation. In this light, the study sets to recommend some solutions to improve
work motivation in the company.
7. M ethod: descriptive statistic from the questionaire, sccondary data írom the data
source of thc company.
8. Findings and conclusions:
The study aims at investigating and then dravving conclusions :
- Theoretical basic will

be studied to make clear about the importance o f

motivation.

- After analyzing the current situation o f work motivation in PVFCCo Norlh, I
inysclt' find out some íầtors leading to thc íầct that crcating vvork motivation is
inefficient here. Theretbre, some solutions to stimulate employees at work are
suggestcd as íbllovvs:
• The motivation to employees by tìnancial íầctors : ctTectively reform salary
payment policy by applying volumc \veight in salary calculator or paying
market cadrcs by perfonnance o f tasks, sales and proíìts.
• The motivation to employees hy noníìncial íactores: set up an evaluation
system with the Key Períormance Indicator (KPI) to make sure of equality;
đeíìne the Compctency Dictionary and Competency Model to use as the
background to assess pertbrmance o f individual labor.take training soft skills of
management for mid-level leaders into consideration.
9. Suggestions for futher research:


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A number o f limitations can be disccmed in the studv due to the time
constraints and the limited scope. Firstly, the subject research is only laborer in the
PVFCCo North. Secondly, the solutions are still incomplete. This study thcrefore
can be seen as an introduction for more detailed study to bc carried in the 1'uture by
myself. The next research can be about building up

Competency Dictionary,

Competency Model as a basic to evaluate an individual employee, or develop the
Key Perlbrmance Indicator to ensure the tầimess of monthly/ annually assessment.
10. Contributions of the thesis:
The study has Consolidated the theories on motivation. The results o f the study
can help PVFCCo North have a vievv o f actual situations o f work motivation and
how effective the stimulating methods work. They also point out problems vvhich

should be concemed to change. Some solutions hence are given in order to improve
motivation policy and vvork as the basic for labor management.
11. Keywords: motivation, períbnnance, encouraee, needs, improve


4

TABLE OF CONTENT
ACKNONVLEDGEMENT............................................................................................... ...1
ABSTRACT..............................................................................................................
...2
TABLE OF CONTENT.................................................................................................... 4
LIST OF TABLES............................................................................................................. 6
CHAPTER I: INTRODUCTION................................................................................... ...7
1. Rationale...................................................................................................................... , 7
2. Aims o f the S tu d y ...................................................................................................... ..8
3. Subịects and scope o fth e S tu d y ............................................................................. ..8
4. Method o f the S tu d y .................................................................................................. ..8
4.1. Overview o f document...................................................................................... ..8
4.2. Investigation survey........................................................................................... ...8
5. Structure o f the th e s is ............................................................................................... ..9
CHAPTER II: THEORETICAL BASE ON MOTIVATION CREATION.......... .10
1. Motivation as a company p ro b lem ......................................................................... 10
1.1. Fundamental deíìnitions................................................................................... 10
1.2 The role o f motivation creation........................................................................ 11
2. Motivating í a c to r s ..................................................................................................... 11
2.1 The motivation to employees by íinancial factors......................................... 11
2.2 The motivation to employees by non-financial íầctors................................ 15
3. Motivation theories.................................................................................................... 19
3.1 Abraham M aslow’s Hierarchy o f Nccds ....................................................... 19

3.2 Two Factor Theory o f Prederick H erzbcrg.................................................... 21
3.3 McClelland's Human Motivation Theory ...................................................... 22
3.4 Equity Theory o f Stacy A d a m s ........................................................................ 23
3.5 Expectancy Theory o f Victor Vroom ............................................................. 23
4. Literature review on motivation ............................................................................ 24
CHAPTER III: M ETHODOLOGY............................................................................... 26
1. The basis o f research questions panel.................................................................... 26
2. Research questions construction............................................................................. 27
2.1. Questionnaire and process o f information collection.................................. 27
2.2. Designing research questions........................................................................... 27
2.3. Sam pling.............................................................................................................. 29
2.4. Methodological issues........................................................................................ 29
CHAPTER IV: RESULTS AND DISSCUSSÍONS.................................................... 30
1. The overviexv o f PVFCCo N orth............................................................................ 30
1.1 The process o f fonnation & development and the business períbrmance.. 30


1.2 Organizational Structure 1'unctions and dutics o f parts....................................32
1.3 The utilization oí'resources................................................................................... 34
2. The current situation o f motivation implemcntation at PVFCCo N o r lh ......... 37
2.1 The analysis o f current situation o f motivation implementation...................37
2.2 Inherent p ro b lem s................................................................................................... 46
CHAPTER V: CONCLUSIONS AND RECOMENDATIONS..................................48
1. Solutions..........................................................................................................................48
1.1 Solutions on motivation promotion by íìnancial íầctors............................... 48
1.2 Solutions on motivation promotion by the non-financial..............................49
2. Recommendations......................................................................................................... 50
3. C onclusion...................................................................................................................... 51
REFERENCES........................................................................................................................52
APPENDIX.... ................................................................................................................

54


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LIST O F TABLES
Number
Name of tables

Pages

tables
4.1

Business períbrmance oí' PVFCCo North

31

4.2

Structure ot labor in departments on 01/09/2014

34

4.3

Labor force by level from 2011- 2014

35

4.4

Labor force by age from 2011- 2014

35

4.5

Labor force by gender from 2011- 2014

36

4.6

Results of descriptive statistics for employees’ satisfaction about
their income
Results of descriptive statistics for employees’satisfaction about
working conditions
Results of descriptive statistics for employees, satisfaction about
job charateritics
Results of descriptive statistics f'or employees’ satisfaction about
training and promotion opportunities
Results of descriptive statistics for employees' satisfaction about
leaders
Results of descriptive statistics íòr employees’ satisfaction about
their colleagues
Results of descriptive statistics íor employees’ of work
motivation

40

4.7
4.8
4.9
4.10
4.11
4.12

41
42
43
44
45
46

L IS T O F D R A W IN G S , D IA G R A M S
Numbcr
diagrams

Name of drawings, diagrams

Pages

drawings
2.1

Maslow's hierarchy of needs

21

2.2

Main elements of Expectancy Theory

23

4.1

Average income of laborers over the past years

32

4.2

Organizational diagram of PVFCCo North

33

4.3

The wishes of the employees in PVKCCo North in the future

47


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CHAPTER I: INTRODUCTION
1. R ationale
A great number o f people feel confuscd when fmding thc way to exploit their
potentials themselves though each laborers has their own certain intcrnal resources.
Humans always have the physcal and mental needs to be satisíìed. When laborers’

needs are met.thev wil be encouraged to work harder and harder. If no motivation is
present in an employee, it is difficult for them to attain labor eoals because at that
time the assigned work will be completed without any creativity and effort. As a
result, the work will be considered as a duty to pertorm under the labor
contract....Organization is a group o f laborers in which they vvork tovvards common
goals. The goals are promoting the organization development and creating its
position in the market. Vice versa, in order that laborers vvill receive both íìnancial
and non-íìnancial revvards from the organization, the managers need to create
incentives to promote creativity and job performance of employees. Managers,
therefore, must thoroughly understand the management philosophy, especially the
desire and psychology o f laborers in their organization for the maximum utilization
o f each laborer's value. When each employee become the "boss" o f his own
working process, it mcans that thcy are allovved room to work, fínd the joy, realize
their responsibilities and eíTorts to be more productive. This will enablc hoth parties
to get committed towards the fulfilment o f each other’s needs.
The problem o f how to motivate laborers is increasingly bcing more interested
in the current enterprises. In reality, employees in North PetroVietnam Fertilizer
and Chemicals Joint Stock. Company have been being motivated though the results
are not satisíìed as đesired and vvorkers have not perfonned at their best . A very
hi^h yield does not reílect the true ability o f workers.
From the íầct that I selected the thesis subject: Motivating employees Research at the North PetroVietnam Fertilizer and Chemicals Joint Stock
Company (PVFCCo North) with ambition to offer an insightful understanding of
thc cuưent situation o f work motivation in the company and propose some solutions
to rnotivate laborers contributing to the sustainable and eíTective development o f the
cornpany.


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- Research Qucstions:
The Study will be conducted to answer the following questions:

+ What are the current situations o f work motivation in PVFCCo North?
+ What are the solutions to enhance work motivation for laborers in PVFCCo
North?
2. Aim s o f the Study
The aim ofthis thesis is to summarize the current research fìndings about work
motivation, to analyze the work motivation at PVFCCo North and to propose
activities that can improve the motivation in this company.
3. Subjects and scope o f the Study
- Subịects of the Study: the theoretical issues, practices related to motivation
creation for laborers.
- Scope o f the Study:
+ About content: The content is mainly related to the motivation creation for
laborers in the organization.
+ About time: This study started from June 2014.
+ Abouí space: Suhịect focused on researching and proposing solutions in
ordcr to create vvork motivation for laborers in PVPCCo North.
4. M ethod o f the Study
4.1. Overview of document
Analyze and synthesize the documents related to creating vvorkplace
motivation:
- The role of the human resource management in organizations.
- Theoretical Foundations about creating work motivation for laborers working
in the organization.
- The tools to create motivation for laborers at vvork novv.
4.2. Investigation survey
Base to build questionnaire to research vvork motivation in PVFCCo North:
- The theoretical base on motivation for laborers at vvork in the organization,
and many domestic and overseas researches about job satisfaction as well as
tìnding about the elements to promote the workplace motivation for laborers.

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- Theory of Herzberg and research model o f Smith (1969), vvith the reterence
o f the expcrts in this íìeld.
The motivational í'or laborers working in PVFCCo Nơrth depends on the
following íầctors:
+ Work itsclf
+ Training opportunities and advancement
+ Salary
+ Supervisor support
+ Co-worker relations
The construction o f the questionaire is based on the above five components,
as vvell as the measurement criteria o f each component.
5. Structure o f the thesis
The thcsis consists o f five chapters, speciíìcally:
- CHAPTER I: INTRODUCTION
- CHAPTER II: THEOREOTICAL BASE ON MOTIVATION CREATION.
- CHAPTER III: METHODOLOGY
- CHAPTER IV: RESULTS AND DISSCUSSIONS
- CHAPTER V: CONCLUSIONS AND RECOMMENDATIONS


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C H A PTER II: TH EO R ETIC A L BASE ON M OTIVATIO N C R E A T IO N
1. M otivation as a com p any problem
1.1. Fundamental deíìnitions
a. Needs:
Nced is a psychological phenomcnon oí' human; needs are the requirements,
wishes and aspirations o f people about the materials and spirit to survivc and grow.
Depending on the level o f awareness, livine environment, the psychological and

physical characteristics, diíĩerent people have different needs.
b. Incentỉves
ỉn terms o f economics:
An incentive is the subịective goal o f human activities in order to meet the
demands set forth. The incentive reílects the wants, the needs of people and the
reasons for the actions. Human needs are diverse, including the outstanding needs in
a certain time. The incentive is the strongest demand o f human at a certain time and
this have povver over determining humarvs behaviors. [1]
In terms o f psychology:
A incentive is a rertection o f the obịective world into the human brain. These
images control the human activities to satisíy their needs and teelings.
Human incentive is based on their necds. Needs will become the incentives
when therc are 3 íactors: the wishes, the expectancy; the reality of wishes and
surrounding environment conditions. [1 ]
c. Promotion:
Promotion is the psychological process which occurs due to the purposed and
oriented impact o f the human. in term o f corporate govemance, the promotion is the
targeted impact o f the enterprise to encourage the employees to improve the
achicvements and help them fulfil the missions effectively. [2]
d. Motivation:
Motivation is the desire and willingness o f people in improving their efforts to
achieve the goals or speciíìc outcomes. [2]
e. Motivation creation:
Creating working motivation for employees is understood as all of the govemance
measures applied to the employees in order to create the engine for the employees, to


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encourage thcm to improve their achievements and help thcm íulíìll their jobs

eíTectively. [2]
1.2 The role of motivation creatỉon
Nowadays, the world has changed in all aspects: economy, politics, especially
in the íìeld o f scientiíìc development. Thanks to the explosion o f infoimation
tcchnology Science togethcr with the technical initiatives, a large numher o f the
modem facilities have been successíully lầbricated to use in production process.
The human beings thereíbre has taken a new step forward. Even though machines
are essential needs, human is still a key factor to control these machines.
Accordingly,if the needs o f the people change, the machinery and equipment has no
meaning anymore. Thus, when people join in any organization, except for
satisíaction o f the demand to work and the demand to serve for the society, they
also have many different needs and purposes. Unless they can carry out any đemand
or essential purpose, they may leave the organization to be seIf-employed without
the impact o f the organization. However, if these needs and aspirations are resolved
satisfactorily, they will strive to keep their achievements and devote all their energy
and enthusiasm for the organization.
Motivation creation plays an important and meaningíul role in the success or
íailure o f an cnterprise. An organization or a company, vvith its strengths in all
aspects, but not paying attention to the íĩeld o f motivation creation, cannot fully
exploit its human resources, leading to the ineíĩective quality and diff1culties in
competition with other companies in the market. Consequently, if the organization
wants to succeed, it is necessary for it to focus on creating work motivation to the
employees. Ị3]
2. M otivating factors [4]
2.1 The motivation to employees by íìnancial ĩactors
The motivation to employees by íìnancial factors means using the salary,
bonus, welfare to improve the vvorking achievements o f the employees. The salary,
bonus, welfare is basically understood as: basic salary, bonus, allowances and
welfare, etc. These are the crucial factors o f human, used to vvhich enable them to
aíYord adequate living conditions. Hence, salary, bonus and welfare are used as

levers to stimulate the positivity o f the employees.


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The encouragement to the employees must be implemented at íìrst by thc
reasonable salary, follows the building oí' the policics and regimes to ensure thc
rights and obligations o f the employees. In addition, the mechanism o f revvard and
punishment must be clear.
The mechanism o f reward and punishment is olìten the material because it is
thc clearest and most attracting motivation that the enterprise can bring abont the
employees.
However, the usage o f salary, bonus and welfare need to be implemented
transparently and clearly, if not, it shall cause the dispute betvveen the employees
and the managers, or within employees and shall cause the unexpected impacts.
a. The motivation to employees by salary:
Conventionally, the employees vvork so as to gain salary; however, how to pay
salary to create vvork motivation to the employees is a dilĩicult issue for the employers.
As vve know, although salary is actually not a motivator, when the salary is paid
equally and it ensures the increment o f the re-production. the employees will feel
satisíied and thus, the productivity shall be higher. Researches o f the psychologists
about the speciiìcation o f the demand of salary to the employees have shovvn that the
employees arc only satisíĩcd with the salary whcn it meets the demands:
- Salary must reílect clearly the quantity and quality o f work, reflect the
dedication o f employees for husinesses, and highlights the role o f employees in the
organization. Meanwhile, the salary stimulates the employees to try their best for
the organization.
- Salary must ensure simple reproduction o f working capacity. It means that
the wages must ensure basic expcndilure o f the employees. Whcn the employees
work, they vvould like to generate incomes to support themselves and their íamilies;

therefore, if the cnterprise ensures their life, they will be assured o f working for a
long term for the enterprise.
- Salary payment must be based on the labour targets set íbrth, it reílects the
quantity and quality o f labour that the cmployees contribute to the enterprise. The
labour targets are also used to compare the value o f each employee to the others.
Theretbre, salary becomes the labor motivation when the labour targets create the
balance for the employees.


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- Salary payment must be based on thc technical aspcct of salary and dedication
to the enterprise of the employees. The technical aspcct of salary shows qualification
that cmployees has achicved, and the dedication to the enterprise represents the number
o f protessional experience years, number of seniority ycars in the enterprise. If these
two things arc well done, this will encourage employees to maintain high levels of
eíTorts for their advancement.
- Allowance: Allowance is an amount paid to the etnployees by the employers
hecause Ihey completed the tasks successful or they have to vvork in the toxic
environment. There are a lot o f types o f allowance such as: seniority allowance,
responsibility allowance, transport allowance, toxic and danger allowance, etc. Each
type o f allowance shall be applied to different positions, but they all bring about the
economic benefits for the employees.
The allovvance improves the incomes of the employees, make the employees
feel that they are concemed and exactly evaluated vvith the tasks that they are in
charge of. Moreover, it creates the equality among the employees, between people
vvho works in the toxic environment and the ones who vvork in non-toxic
environinent, between people vvho completed the task and the ones who did not
complete the tasks, etc.
b. The motivation to employees by bonus:
Bonus is a form of financial incentives paid once (usually at the end o f the

month, quarter or year) to pay for thc ability to perĩorm the work o f the employees.
However, the bonus may also be paid extraordinarily to recognize the achievements
o f the employees as early completion o f the prọịect set forlh. Bonus typically
includes:
- Bonus for the employees who outstandingly complete the tasks (exceeding
the regulated quantity and quality o f the products).
- Bonus for saving raw materials, and labor cost.
- Bonus for the employees’ creativities.
- Bonus for speciíic services such as commissions over the sales, the
increment in the progressivity unit, bonus according to salary, etc.
Bonus is a very eíĩective tool to motivate laborers to be more productive and tie
them in the responsibility to the organization. Bonus payment depends on regulations


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of cach enterprise. Bonus can be directly agreed bctwecn tvvo parties ot' the labour
contract. In addition to creating a part of the employees’ incomes, bonus creates vvork
motivation for them. However; the bonus only has thc value to stimulate thc employees
vvhen it satisíìes the following requirements:
- Bonus has to attach directly with the individual contributions o f the employees.
The employees are just really excited when they reach the achievements at work,
then the bonus is a great encouragement for them. Thereíore; only those vvho
achieve the expectations at vvork can receive the bonus to avoid the spread award,
causirm the inequity in the organization.
- Bonus for employees must adhere to the speciíĩc criteria and should be
classiíìed clearly with the markedly different gap to compare among the employees
at the same positions but with the đifferent levels of reward, from that, it can create
engine for the einployees to emulate together.
- Bonus must have the certain value and consumption meaning to the employees

to create the certain stimulation. The value o f the bonus sometimes depends on the
value o f differcnt factors in the goods market in different period. Furthermore, the
level o f bonus is also valuable at nurturing the hope in using it. If the bonus is not
set high enouh, the employees have no idea to use it; thereíore, it cannot create the
psychological stimulation to thc employees, leading to thc problem that the
employees do not try to complete their job in the next tasks.
c. The motivation to eniployees by welfare and services:
Welfầre is the remuneration indirectly paid in íbrm o f íìnancial aid for the life
of the employees. The services for the employees such as: sales off Service, credit
association Service, buying the shares o f the company, education and training aid,

Welfare for the employees includes the non-statutory welfare and statutory
welfare. The non-statutory ones includes vacation, resort, difficulties allowance, and
incentives in holidays, Tet, etc. The statutory ones are regulated by the State such as
sickness, matemity, leave vvith permission and leave for personal issues, etc.
These arc thc indispensable tools to keep employees’ motivation levels high
because it plays an important part in iníluencing to the vvorking spirit o f the


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employees and attaching with the purposes and targcts o f the employees. Labor
\velfare is etTective when it meets the íbllovving requircments:
- The social welfarc is stable according to the certain period and associated
with the result of business and production activities o f the enterprises.
- The social welfare must go with the certain binding conditions between the
employees and their employers.
- The social welfare which is meaningíul to the life of the employees can
stimulate them to work hard.
2.2

The motivation to employees by non-fínancial factors
The non-financial factors are the factors that belong to the psychology o f the

pcople and cannot be quantiíìed such as: ensuring enough jobs for every people;
evaluating exactly the achievements o f the employees; ensuring the equality in
re\vards or punishments at the right time and right place, vvell organizing the
emulation movenients, culture, sports and arts, etc. Creating the motivation for the
employees in term o f spirit means taking the spirital advantages to improve the
positiveness of the ernployees.
To create motivation for the employees by non-financial factors, the enterprise
needs to well implement the following tips:
a. VVorking time and rest time:
Intellectual labour or physical labour, to a ccrtain level, then tired. Working
and resting suitably will help to balance two processes: inhibition and excitemcnt.
The employees’ tension can be relievcd by giving them the proper time to unwind
and get back to a good State of mind for the next pcriod. The daily or weekly
working schedule

must be regulated clearly from the signing date o f the labour

contract. When there is any changes, cmployees must be informed in advance so
that they can arrange their time and shorten the working time and overcome the
nature o f a heavy and hazardous job. This increases the motivation to the
employees.
b. NVorking environment:
- Working condiíions:


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To vvell complete the job, in addition to the vvorking spirit, thc employees need to

bc equipped with tools, supplies, equipment, material base and vehicles. The more
working conditions are equipped, the more labour productivity incrcases.
- Relationship with leaders and colleagues:
When the salary meets the daily basic needs, pcople alvvays require for other
spiritual needs. They are the relationships vvith colleagues and managers.
In any organization, the nature of the relationship depends on the scale and
structure o f that organization. If the scale is small, the relationship among the
members is relatively simple, but if the scale is large, the relationship becomes more
complicated.
Characteristic o f human relationships is the communication activity, including
the activity among the seniors at all levels and employees deriving from the
relationship of managers and staff, and among offícials deriving from relationships
among employees. The more active and regular the activities are, the closer relation
in the company is. A large number of employees after a period o f time work in large
companies vvhere colleagues are less interested each other because o f overcrovvding,
novv prefer working in small companies where people can talk. share ideas and
discuss concems.
The relation activities betvveen leaders and staíT, staff and staíT have the
influence on the effectivcness o f the work. A strong employers and employees
relationship can send the message that the organization concems, helps, supports
and treats íairly with all staff and cadres of the organization. Strong employment
relations can creat a plesant vvorking environment. That urges employees to
exchange the iníbrmation and support each other to help them successíìilly
complete the tasks.
- Organizational culture:
Organizational culture is an extremely important factor in creating work
motivation to the employees. Organizational culture is the conceptions o f value o f
the organization represented by the motto, policies, principles and modes o f the
organization. On the other hand, organizationa! culture is full ofcultural values built
during thc existence and growth process o f the organization. These values become

the conceptions, habits and tradition rooting into the activities o f that organization


17
and dominate thc feelings, vvays o f thinking and behaviors o f the organization
members

in thc pursuit and implementation o f the purposes, as well as the

sustainable đevelopment o f the organization.
The construction o f the contents and style o f organizational culture needs to
concem to the local factors, sectors, development periods, qualities o f cadres and
staíT, etc. The organizational culture must be accepted bỵ all cadres. staff and
considered as the general assets o f the organization.
Organizational culture is the base o f all policies and specific methods in the
production and business o f the organization, dominating the business results oí' the
organization. Therefore, it can be said that the success or íầilure o f the organization
is associated with whether or not the organizational culture with it right meaning.
c. Evaluation of the work períbrmance
Evaluation oí the work períbrmance is one of the signiílcant activities o f human
resources administration in every organization. Through the evaluation o f result
períbrmance, the govemors can make personnel decisions such as training, salary
increment, promotion, and discipline to the employees. Besides, the degree o f
rationality and correctness o f the evaluation system and teedback from evaluation
results to employees has the prominent impact on the moral construction and
development, employees’ attitudc and psychological - social ambience in thc
organization. The appropriate evaluation system will enhance thc employees’
pertormance, urge them to work diligently and generate greater success.
To promote the motivation to the employees, the cvaluation system needs to
ensure the following criteria:

- Suitability: The evaluation system must be suitable to the govcmance goals,
serve for the govemance goals and the evaluation criteria must be suitable to each
o f the evaluation object.
- Susceptibility: The evaluation system must have the measurcment tools vvith
the ability o f distinguishing whether or not the employees fulfil the tasks.
- Reliability: The evaluation system must ensure that all the independent
results o f the evaluation o f all employees must be basically uniíìed.
- Acceptance: The evaluation system must be accepted and supported by the
employees.

ĐẠI HỌC QUỒC GIA HÀ NỘỈ_
TRUNG TẦM THÒNG TIN THƯv»ịf N


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Practicality: In ordcr to implement in the real situation, thc tools o f

evaluation must bc simple, easy to understand and use for the employcrs and the
employees.
d. The Motivation by policies of training and development, improving the
proíessional quality:
In the labour process, people are alvvays exposed to the knovvledge o f the
society, and machines, and the knovvledge oí' these tools does not stop growing.
Therefore, if the employees are not trained and tostered to develop, they vvill
becoine obsolete and outdated. Thus, to enrich the understanding for the employees
and to create excitement in the labor process, the training and development are
necessary issues.

Training is a progress aiming at providing the employees with intbrmation,
skills and understanding about the \vork organization in the company as vvell as the
targets. The training is designed to help and support the employees to continue
contributing to the organization. Training is the leaming progress to help the
employees implement their functions and tasks more ellectively.
Training meets the demand o f the employees. It is one o f the íầctors to
promote vvork motivation. Training helps the employees carry out their tasks bettcr,
improve thcir capacity and reduce the monitor and the accident, etc.
The enterprises need to have the plan to train and íoster their employees about
the culture, professional skills and apply the suitable forms so that all the laborers
can meet all the necessary demands.
In fact, training an employee takes a lot of time and cost o f the enterprise. The
training expense o f enterprises is accounted into the business and production
expense, hence; it affects the beneíìts o f the enterprise. Meanwhile, the enterprises
alvvays face to the difficulties in calculating and quantiíying the benetìts brought by
the training program. The enterprises still vvorry that they will lose their staff afìer
training. However, improving the effectiveness o f training is a long-term effective
investment o f the enterprise. Therefore, the users nced to develop a common
strategy for training and take necessary measures to retain the employees alìter
training.


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3. M otivation theories
The initial trends o f Science research on creating work motivation appeared in
1930 in both educational psychology researches and popular psychology researches.
According to B. Weiner (1990), vvork motivation theories completed and developed
through 3 different periods from 1930 to 1990:
- Period o f Mechanism: 1930-1960.
- Period o f the development o f the awareness: 1960-1970.

- Research on the modem motivation: 1970-1990.
Up to now, there are a lot o f researches which apply the theory with the main
trend is to detect the promotion engine o f the employees and create the working
motivation. And through many different stages, there are different ways o f
accessing to the motivation. Hovvever, the modem way to be used popularly in
course books and research books on engine and motivalion is based on the theories
about creating the working motivation. The theories with the greatest intluence are
classitled as follows:
-

Tool theory: the revvards and punishments are the tools to make the
employees implement the expected actions.

-

Content theory: focusing on the content o f thc motivation. This theory said
that the vvorking motivation is the implementation o f bchavior to satisfy the
needs and identiíy the main needs

aíTecting to the bchavior. The hicrarchy o f

needs is introduced by Moslow (1954), and in the model o f Two-Factor
Theory o f Herzberg (1957) has listed necds regarding the satisíỳing íầctors.
-

Process theory: focus on the psychological process affecting vvorking
motivation, involving expectancy theory (Vroom, 1964), Goal setting theory
(Latham and Locke, 1979) perceptions o f tầimess (Adams, 1965).

3.1 Abraham Maslow’s Hierarchy of Needs [1][3]

Abraham Maslow’s hierarchy o f needs shows that people are promoted by a
lot o f different demands and these human needs can be classiíìed into five
catcgories. These categories can be arranged in hierarchy o f importance:
- Physiological needs: These are the most basic needs o f human beings,
including: food, water, air, etc. In an organization, this problem is reílected through


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the satisíaction o f temperature, air o f the working place and thc salary to maintain
the life o f the employee.
- Safety needs: these are the needs to be free from the threat o f physical and
cmotional harm, violence and to live in an order society. In an organization, these
needs are reAected through the safety in the work, assets and the career, etc.
- Belongingness and love needs: these are the needs

to be recognized by

others in the society, to have ữiends and join in the action groups and to be loved.
In an organization, these needs are expressed the desire to be in good relationship
vvith the colleagues and the members o f the administrative board.
- Esteem needs: these are the demands to have the good image, the admittance
and hieh appreciation from the others. In an organization, the people who have this
need alvvays effort to have the admittance, the higher position and the admittance
for their contribution to the organization.
- Self-actualization needs: these are the highest needs o f people. This need is
towards to unleashing the latent potential o f an individual, from then, they vvill
practice and become more pertect. The needs o f self-improvement can be used in
the organization

by providing the employees with a lot o f development

opportunities by frecdom in creation and the challenges in work.
According to Douglas G.Mook (1995), Maslow’s hierarchy o f needs has thrcc
important implications:
- The higher the position in the diagram is, the more complicated the need of
the peoplc is; and these needs is the nature o f the people.
- The needs arrange in thc order, vvhen a need is satisfied, thc next need shall
appear. However, if a need in any level is not satisíìed, that need still exist and thc
higher need vvill not appear.
- The failure in the meeting the needs creates the disease. Punctional
neurological disorder is a desperate attempt to meet unmet needs.
According to author Micheal Amstrong (2007), Maslow’s hierarchy o f needs
also exists some shortcomings: No reliability in the períbrmance o f experimental
studies; not sure about the clarity o f the results obtained because the different
people have the diíTerent priorities and it is difficult to accept that the development
o f human needs is ascending to the hierarchy.


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Figure 2.1. M aslow’s Hierarchy ofN eeds
3.2T\vo Factor Theory of Frederick Herzberg [3]
Frederick Herzberg has developed a theory o f creatine motivation is the twotactor theory. This theory based on the sentiment that creating motivation is the
result o f many factors, o f vvhich, these íactors create the satisíầction and
dissatistầction. Each

tầctor itselí'includes both ahovc sides depending on how it is

implemented, met to speciíy its nature. This theory is divided into two íaetors to
create thc motivation:

a. Hygiene Factors:
Related to the dissatisfaction o f the cmployees about their work such as:
working conditions, salary, the regimes o f the company, and relationship among
individuals. When the motivational factors are met, the employees becomes
motivated. In contrast, if the hygicne factors are good, it only means that thc
dissatistầction is removed, but not itselt' bring the satisíaction or the etTort in vvork
for people.
b. Motivator Factors:
Factors relatcd to the higher needs including: achievement, recognition,
responsibility and advancement opportunities. F.Herzberg believes that

the

employees vvork normally vvhen motivators are abscnt. but vvhcn motivator factors
are present, the employees are more active and satisíled.
The application o f two-factor theory in vvork is the tvvo-stage process. Pirstly,
the management is tasked to minimize the situations vvhich can cause dissatistầction
for cmployees. Alter the dissatislầction State no longer exists, the tactors creating
ihc satislaction should hc considered.


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Thus, the hygienc factors and the motivator factors show thc difference to the
motivation o f the employees. The hygiene factors are only in the dcmotivate area.
Even though they are improved, they cannot create the motivation and the
satisfaction. The motivator factors must be set out before the employees implement
their vvork.
According to author Micheal Amstrons, (2006), the two-factor theory o f
Ỉ Ierzberg still has two typical weaknesses:
- Herzberg made conclusions from a study limited to engineers and

accountants. The engineers, accountants or other careers may be the challenging
work. Meanwhile the unskilled workers are motivated by salary and other íinancial
benefíts.
- Herzberg's theory did not specily the relation betvveen motivatiors and
satisfaction o f employees. He only íbcused on the study o f the tầctors that makes
employees feel good or uncomfortable.
3.3 McClelland's Human Motivation Theory [3]
According to McClelland, there are three basic motivation needs:
- Needs for power: People with high needs for power would like to control and
inỉluence others. These people always to pursue the leadership position. They are
persuasive, straightforward, practical or demanding, they like teaching and public
speaking.
- Needs for affiliation: The people who have this need often find happiness
when they feel loved and want to avoid pain when they are scparated from a social
group. They always try to maintain the comtbrtable social relation. They want to
have the close and sympathetic íeeling, willingness to help others when these
people have difficulties and vvant to have intiinate relation vvith others.
- Needs for achievement: They have a strong desire to set and accomplish
challenging goals. They are afraid o f failure as well. They vvant to take risks, take
responsibilities on the tasks that they are in charge of and self-control the task. The
people with high achievement alvvays vvant to reccicvc the feedback immediately on
their progress because they feel satisíìed vvhen they well complete the tasks. The
feedback provides them vvith the stimulation to improve their performance or set the
higher goals.


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3.4 Equity Theory of Stacy Adams [3]
Equity Theory focuses on the teeling o f people about how they are trcated in
comparison with others. The belieí in equity theory is that people are encourage to

seek for the social equity in revvards that they bring to their job. People value fair
treatment if they receive the incentives as others at the same level o f the
contribution.
According to Robert Kreiner and Angelo Kinicki (2004), the most general
methods to reduce the untầimess:
- Changing the contribution in work (input): The employees can choose the
increment or reduction o f the contribution to the organization.
- Changing the results (output): The employees can change the outcomes that
they receive.
- Changing the feeling: People can feel an increase in their position related to
work or the reduction o f the value o f the others revvards to aim at bringing the
equity in íeeling.
- Resigning: The implication of the equity theory is to let the managers
understand that their staff can self-evaluate the equity in their revvards in comparing
to the others' revvards. The salary increment or advancement shall have no effect if
it makes the cmployees feel unfair.
3.5 Expectancy Theory of Victor Vroom [3]
Expectancy Theory considers that working motivation depcnds on expectation
o f individuals on their capacity o f implementing tasks and on receipt of desirable
rewards. Expectancy Theory not only pays attention to identiíy types o f demand but
also study process for reward receipt o f individuals.

Figure 2.2 Main elemertís o f Expectancy Theory


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Expectancy Theory bases on thc correlation betwcen individual efforts, the
perfonnance o f individuals and the desirablc rewards. Elements o f the Expectancy
Theory:
- Expectancy E -> P: One’s eíTorts at work will result in desired perfonnance.

In order for this expcctation to achieve it peak, individuals must have their own
ability and experience, necessary tools, machinery and the opportunity o f performing.
- Instrumentality p -> O: Successíul perfonnance will lead to the desirable
outcomes. If Instrumentality p ->

o

is high, individuals will feel more motivated .

- Valence (V): Valence is the output value or the attractiveness o f outcomes
for each individual. If outcomes is available on the great efforts, good work
pcrformance vvithout being respccted, motivation will be lovver. Similarly, if the
outcomes is highly appreciated, the motivation will be stronger.
According to Robert Kreitner & Angelo Kinicki (2004), basic expectancy
frainework has given three conditions that need meeting in order for motivating
behaviors to occur.
- Effort expectation leads to pertormance must be higher than zero. It means
that staffs have to reasonably expect that effort vvill create high períormance.
- Períbnnance expectation leads to outcomes must be higher than zero.
Thereíbre, people should believe that performance will resuit valuable outcomes.
- Total valuc o f potential outcomes relating to people should be positive.
Hcnce, responsihilities o f leaders are to help their subordinates satisíy their
demands and at the same time achieve goals o f the organization. Leaders must fínd
the compatibility among skills, abilities, and needs o f the individuals, determine the
available output from the organization and ensure that each individual has ability
and necessary support to achieve the outcomes.
4. Literature revievv on m otivation [10,13]
Theories o f motivation can be divided to explain the behavior and attitude o f
employees (Rovvley, 1996; Weaver, 1998). These include content theories, based on
the assumption that people have individual needs which motivate their actions, and

theorists such as Maslow (1954), McClelland (1961), Herzberg (1966) and Alderfer
(1969) are renowned for their vvorks in this íìeld. In contrast to content theories,
process thcories identiíìed relations among variables vvhich make up motivation and