Improving petrol stations employees’ motivation a study of petrovietnam oil corporation

UNIVERSITY OF ECONOMICS HO CHI MINH CITY
International School of Business
----------------------------

Nguyen Cao Duc

IMPROVING PETROL STATIONS EMPLOYEES’ MOTIVATION:
A STUDY OF PETROVIETNAM OIL CORPORATION

MASTER OF BUSINESS ADMINISTRATION

Ho Chi Minh City – 2018


UNIVERSITY OF ECONOMICS HO CHI MINH CITY
International School of Business
------------------------------

Nguyen Cao Duc

IMPROVING PETROL STATIONS EMPLOYEES’ MOTIVATION:
A STUDY OF PETROVIETNAM OIL CORPORATION

MASTER OF BUSINESS ADMINISTRATION

SUPERVISOR: Dr. Nguyen Thi Mai Trang

Ho Chi Minh City - 2018


Executive summary

Many researches recently have show that: motivation of employees play a very important
role in business activity. They have pointed out: if the level of motivation is high, the
employee can perform better, the worker can get higher productivity and the company
can achieve business goal and objective effectively. On the opposite, if the motivational
level is low, it could lead to low sales performance, it may weaken the company
performance and thus it can affect business success.
Understanding the significant role of employee motivation, the objective of this thesis
was (1) to find out the impact of employee motivation on organization effectiveness and
productivity, (2) to identify what factors motivating employees at PetrolVietnam Oil
Corporation’s (in short, it would be called PVOIL in this thesis) petrol stations and
examine the major factors that increase motivation of employees the most.
After carefully reviewing many theory regarding employee motivation, I found that: there
are many factors that motivate employees, including both financial factors and nonfinancial factors. There exists a strong relationship between employees’ motivation and
organizational effectiveness. The more motivated the employees are, the more
contribution they bring, thus the more profitable and successful is the business.
The findings of the study revealed that financial factors plays the most important role in
motivating employees at PVOIL petrol stations. The findings are discussed in details in
the research along with suggestions for PVOIL and managers/leaders at PVOIL in order
to increase the employee’s motivational level.


Acknowledgements
I would especially like to show my gratefulness and special thanks to my supervisor –
Dr. Nguyen Thi Mai Trang for all her continuous supports, advices and instructions
through the process of researching and writing this thesis. Without her enthusiastic help,
this thesis could not have been accomplished.
I also would like to show my gratitude to ISB lecturers, my colleagues at work, my
classmates at ISB for their valuable knowledge and continuous support. I also send my
sincere thankfulness to my family for their support and encouragement throughout my

years of study.


TABLE OF CONTENTS
Executive summary
Acknowledgements
1. INTRODUCTION ...................................................................................................... 1
1.1. Company background .......................................................................................... 1
1.2 Company structure, mission and vision ................................................................ 1
2. PROBLEM CONTEXT .............................................................................................. 4
2.1 The labor productivity and motivation in Vietnam ............................................... 4
2.2. The labor productivity at petrol stations owned by PVOIL ................................. 7
2.3. Situations of workers at petrol stations owned by PVOIL.................................. 9
3. PROBLEM VALIDATION ..................................................................................... 14
3.1 Payment and welfare policy ................................................................................ 15
3.2 Working condition and environment .................................................................. 17
3.3 Promotion and career policy ............................................................................... 18
4. CAUSE - EFFECT MAP .......................................................................................... 19
5. CAUSE VALIDATION ........................................................................................... 20
6. ALTERNATIVE SOLUTIONS ............................................................................... 27
6.1.The first alternative solution: Welfare programmes for petrol stations
employees .......................................................................................................... 27
6.2.The second alternative solution: Fair payment policy ........................................ 28
6.3.The third alternative solution: Long-time contribution recognition in payment
policy .................................................................................................................. 30
7. ORGANIZATION OF ACTIONS ........................................................................... 32
8. CONCLUSION ........................................................................................................ 35
9. SUPPORTING INFORMATION............................................................................. 36
APPENDICES .............................................................................................................. 45
REFERENCES ............................................................................................................. 48

LIST OF FIGURES
Figure 1. PVOIL organizational structure ....................................................................... 1
Figure 2. Hertzberg's Two Factor Theory ....................................................................... 6
Figure 3. Number of workers at petrol stations owned by PVOIL ................................. 9
Figure 4. Educational level of workers at petrol stations owned by PVOIL ............... 10
Figure 5. Age classification of workers at PVOIL petrol stations in 2016 ................... 11
Figure 6. Working time for PVOIL of workers at petrol stations up to 2016 ............... 12
Figure 7. Number of newly- recruited of workers at PVOIL petrol station .................. 14
Figure 8. Cause-effect map ............................................................................................ 19
Figure 9. Self-evaluate the motivational level by employee .......................................... 22
Figure 10. Factors affecting workers motivation ..................................................... 23-24

LIST OF TABLES
Table 1. Statistics petrol stations owned by PVOIL from 2008 to 2016 ......................... 2
Table 2. Labor productivity by industry from 2014 to 2016 ............................................ 4
Table 3. Labor productivity of petroleum industry from 2014 to 2016 ........................... 5
Table 4. Statistics of market share and quantity of petrol stations in 2016 ..................... 8
Table 5. Sales volume at petrol stations owned by Petrolimex and PVOIL in 2016 ....... 8
Table 6. Labor productivity at PVOIL and Petrolimex petrol stations ............................ 9
Table 7. Average income of workers at petrol stations .................................................. 13
Table 8. Action plan to improve employee motivation .................................................. 34


1

1. INTRODUCTION
1.1. Company background
PetroVietnam Oil Corporation (PVOIL) is a State-owned Enterprise, established in 2008

with five main functions: Crude Oil Import – Export, International Crude Oil Trading,
Petroleum Products Trading in Domestic (both whole and retail) and International
Marketplaces, Petroleum Products Processing and Bio-fuel Processing and Distribution.
PVOIL’s capital 550 million USD; turnover 2,5 billion USD. Now, it ranks number 2
among oil distributors in Vietnam with its market share is around 22% (the market is
controlled by Petrolimex with 50% market share and Petrolimex is also the biggest
competitor of PVOIL).
1.2. Company structure, mission and vision

Figure 1. PVOIL organizational structure
(Source: PVOIL)


2

At present, PVOIL has more than 3.000 petrol stations, include above 500 COCO
(Company Owned –Company Operated) petrol stations and more than 2.500 DODO
(Dealer owned-Dealer Operated) petrol stations. The number of employees is around
6.000, include 2.500 workers (direct labor force at petrol stations that PVOIL owned)
and 3.500 staff officers.
Total quantity of petroleum distribution (via 3 channel of wholesale to agents, businessto-business contracts (B2B) and retail sales) achieves 3,2 – 3,5 millions m3/ton per year.
With the mission “PVOIL consistently pursues valuable goals in life” and the vision
“PVOIL is to become a leading brand name in Vietnam”, in the future, PVOIL aims to
expand its share of the domestic oil and petrol retail market from 22 percent to at least
35 percent by 2020 through increasing number of petrol stations. To achieve this target,
Mr Cao Hoai Duong, General Director of PVOIL shared that:
Sales retail through channel of petrol stations always play the most important role in our sales
strategy. 75 percent total revenue of PVOIL come from retail sales. PVOIL continues seeking
to increase its number of petrol stations nationwide, especially in small cities and rural areas
along with taking many solutions to increase the sales performance at petrol stations.

Table 1. Statistics petrol stations owned by PVOIL from 2008 to 2016.
Number of
petrol stations
% Growth

2008

2009

2010

2011

2012

2013

2014

2015

2016

82

100

105

243

312

344

464

485

500

22%

5%

131%

28%

10%

35%
5%
3%
(Source: PVOIL)

As can be seen from the Table above, the number of petrol stations owned by PVOIL
increased year by year for the period 2008 – 2016. After 8 years, the number of petrol
stations in 2016 is 6 times bigger than in 2008. PVOIL focus on developing the number

of petrol station nationwide because the retail sales of petroleum products to end-users at
petrol stations plays the most important role in bringing the highest profit and ensuring
the sustainable development for business.


3

All the daily retail at petrol stations of PVOIL is undertaken by the direct labor
workforce-workers. They are front-line employees who contact first with the customers
with their duty is selling products. However, according to the statistics shown in the
company’s report, the labor productivity of workers at petrol stations owned by PVOIL
has a very poor performance compared with the labor productivity of its rival –
Petrolimex.
Ofelia Robescu1 addressed that motivating employees became today an important
objective for organizations that want to remain viable on the market today. Motivation
of human resources in the organization will bring extra performance to the manager that
hopes to reach the organization's goals.
With 50 petrol stations based in Ho Chi Minh City (only 10% total number of PVOIL
petrol stations nationwide), Ho Chi Minh City is one of the most important market in
Vietnam for PVOIL where take account for more than 20% of its sales volume
nationwide. PVOIL always has to face with severe competition from other big oil
companies in this key market. Although the workload of workers at petrol stations in big
city like Ho Chi Minh City often face with many difficulties than others in the remote
area, such as: high work pressure due to the continuously sales activity, unhealthy
working environment, narrow working space, … but there’s seem to be no difference in
interests and benefits of these workers compared with other places. Understanding the
important role of Ho Chi Minh city market as well as the role of retail sales at petrol
station, in this thesis, the motivation of workers at petrol stations located in Ho Chi Minh
City center district owned by PVOIL will be the main objects of the study and to find
what affected the motivation of workers will help to improve the sales performance and

labor productivity of workers at petrol stations owned by PVOIL.


4

2. PROBLEM CONTEXT
2.1. The labor productivity and motivation in Vietnam
According to statistics form General Statistics Office of Vietnam, for the period from
2014 to 2015, the average growth rate of labor productivity is about 6,9 %/year. In the
three main sectors of the economy, Agriculture, forestry and fishery has the lowest labor
productivity, Industrial and construction has the highest labor productivity. Within
Industrial and construction sector, the mining and quarrying has labor productivity 14
times bigger than the average labor productivity of sector.
Table 2. Labor productivity by industry from 2014 to 2016.
Unit: VND million/person
2016
33
2015
31
2014
29

1549

113
120

1696

96

115

1,683

90
116
2014
1,683

2015
1696

2016
1549

Services

90

96

113

Industrial and construction

116

115

120

Agriculture, forestry and fishing

29

31

33

Mining and quarrying

(Source : General Statistics Office of Vietnam)
For petroleum industry in Vietnam, in recent years, petroleum industry always has the
highest contribution to GDP of Vietnam (take account for around 18% of GDP), thus the
labor productivity of petroleum industry always take the leading position nationwide.
However, due to the negative effect from the fluctuation of the world oil price from 2014
to 2016 (the oil price averaged $40.68 per barrel in 2016, down from $49.49/bbl in 2015
and $96.29/bbl in 2014), the revenue of petroleum industry in Vietnam (mainly come


5

from exporting crude oil and selling petroleum products in domestic market) had to suffer
a decrease for three consecutive year 2014 to 2016.
Table 3. Labor productivity of petroleum industry from 2014 to 2016.
2014
2015
2016
Revenue (VND bil)
745.000

560.000
452.500
Number of laborers (people)
70.200
70.000
69.600
Labor productivity (VND bil/person)
10,6
8,0
6,5
(Source : Vietnam National Oil and Gas Group)
As can be seen from the above table, due to the negative effect from the fluctuation of
the world oil price, the revenue of petroleum industry had to suffer a decrease for three
consecutive year 2014 to 2016. Labour productivity is concerned with the amount or
volume of output (revenue) that is obtained from each employee. Labor productivity is
calculated by using the formula:
Labor productivity =

Revenue per period
Number of employees at work

Thus, the labor productivity of petroleum industry in Vietnam has a downward trend
respectively from 2014 to 2016 with a rate of 21,6%/year. The productive use of labour
has a closely link to business efficiency and profitability. Labour productivity need to be
regularly measured and monitored to remain competitiveness of a business.
Regarding the problem of changing in labor productivity, Vietnam National Productivity
Institute (VNPI) indicated in Vietnam Productivity Report 2015

2

that there is a wide

range of the fundamental factors driving Vietnam’s labor productivity, namely structural
change, labor quality, labor market flexibility, facility and infrastructure investment and
scientific and technological development. In addition to these factors, report from VNPI
also confirmed the prominent role of the Productivity Motivation, Productivity
Motivation Programs and support activities to boost labor productivity in the business
sector.


6

To better understand employee motivation, Frederick Herzberg 3 found that the factors
causing job satisfaction were different from those causing job dissatisfaction. He
developed the set of conditions or job characteristics – called Hygiene Factors – prevent
employee dissatisfaction at work, while another set of conditions or job characteristics –
called Motivator Factors – lead to employee motivation.

Figure 2. Hertzberg's Two Factor Theory
(Source: )
So, the ideal solution for employees to do their best are highly motivated and have few
complaints by the combination of both “High Hygiene” and “High Motivation”.
There are many factors affecting the employee motivation in an organization. Ofelia
Robescu et al.

1

also indicated that there is strong support for addressing in which the

money is priority and is an economic factor motivating of human. Ms. Nguyen Thi Hong

Nhung – Human Resources Deputy Manager at PVOIL stated that:
For every employees, salary and welfare policy are always their top concern because this is
their main income. Employees will easily have intention to neglect their duties, to have no
motivation or even to quit their job if their wages are not enough to cover their daily
expenditure and support their family.


7

Besides, workers’ motivation is also affected by working condition and environment.
Mahdi Golara4 indicated that employees in oil and gas companies exposed to various
chemicals and gases produced and used in various segments of activities. These
chemicals and gases caused for occupational diseases of the lungs, skin and other organs,
depending on the duration of exposures. The employees of oil and Gas Company are
facing dizziness, problem of headaches, drowsiness and nausea. These occupational
diseases not only affects the health of the employee but also affects their family and
social life, which includes unsatisfactory or disharmony marital life; and cumulative
stress trauma. The employees of oil and Gas Company are associated with poorer
psychological wellbeing or health, this is to say that the employees tend to experience
high level of stress and depression, dissatisfaction towards job and also sleep disorders.
Thus, workers (the direct labor workforce) often complaint about their working
environment and condition at workplace. Mr Truong Thanh Long-Deputy sales Manager
at Safety-Quality Management Department of PVOIL shared that:
Petroleum products are categorized as a dangerous and toxic products and have many
negative effect on human health. For petroleum company, there is clear and heavy affection
of working condition and environment on employees’ health and thus, their motivation.

2.2. The labor productivity at petrol stations owned by PVOIL
In Vietnam, with the participation of 29 oil distributors, the retail market for petroleum
becomes more and more competitive than ever.

8

Table 4. Statistics of market share and Quantity of petrol stations in 2016.

Petrolimex

Market
share
50%

Quantity of
petrol stations
5.200

Total sales
volume (m3)
8.300.000

Average sales volume per
petrol station (m3)
1.600

PVOIL

22%

3.000

3.300.000

1.100

Saigon Petro

6%

1.000

1.000.000

1.000

Thalexim

5%

1.150

1.000.000

870

Mipec

5%

698

1.000.000

1.430

Others

12%

1,752

2.200.000

1.250

Total

100%

Oil distributor

12.800
16.800.000
1.310
(Source : Petrolimex, PVOIL, Saigon Petro, Thalexim, Mipec)

PVOIL always wants to make its market share higher and higher by many solutions, one
of them is expanding the number and network of petrol stations. However, paying too
much attention to develop “the rapid quantity” has made “the quality” or the sales
performance of each petrol stations of PVOIL not get the expected result.
Table 5. Sales volume at petrol stations owned by Petrolimex and PVOIL in 2016

Company

Quantity

(1)
Petrolimex
PVOIL

(2)
2.500
500

Sales
volume (m3)
(3)
5.000.000
600.000

Average sales volume Average sales volume
per petrol station (m3)
per month (m3)
(4) = (3) / (2)
(5) = (4)/12
2.000
167
1.200
100
(Source : PVOIL, Petrolimex)

As can be seen from Table above, the average sales volume per petrol station of PVOIL

in 2016 is around 100 m3/month. If compared with the average sales of Petrolimex is
around 167 m3/month, the sales volume of PVOIL is just only take account for 67% of
the rival. Ms Le Quynh Trang, Deputy manager at Petroleum products trading
Department of PVOIL indicated that:
Although, the number of our petrol stations increase year by year, the sales volume is not as our
expectation. We see that petrol stations can reach break-even point if only it’s sales volume is
more than 100 m3/month. But, among 500 petrol station owned by PVOIL up to 2016, there is
only 34% or 170 petrol stations reach break-even or make profit (sale volume equal or more


9

than 100 m3/month), the rest with 330 petrol stations (take account for 66%) is not effective
(sales volume under 100 m3/month).

Along with the low sales performance as can be seen above, the labor productivity of
workers at petrol stations owned by PVOIL is very poor too compared with its rival:
Table 6. Labor productivity at PVOIL and Petrolimex petrol stations.
Labor productivity
Petrolimex
PVOIL
% PVOIL vs Petrolimex

2012
28,0
13,4
48%

2013
29,1

17,0
58%

2014
30,5
15,4
50%

Unit: m3/worker/month
2015
2016
Average
33,2
34,3
31
18,2
20,6
16,9
55%
60%
55%
(Source : PVOIL, Petrolimex)

The poor average labor productivity of staffs at PVOIL’s petrol station is just 16,9
m3/worker/month, take account for 55% of Petrolimex with 31 m3/worker/month. There
are many factors that lead to the poor sales performance of employees at PVOIL petrol
station.
2.3. Situations of workers at petrol stations owned by PVOIL

675

1040

1100

1125

1300

1375

765

825

935

1260

2012

2013

2014

2015

2016

Female

675

765

1040

1100

1125

Male

825

935

1260

1300

1375

Female
Male

Figure 3. Number of workers at petrol stations owned by PVOIL
(Source : PVOIL)
Based on the figure from Human Resources Department of PVOIL, the number of
workers at petrol stations during the period from 2012 to 2016 increase year by year. The

increase in the workforce is a result of expanding the market share by opening many new
petrol stations. The number of female workers take account for around 45% the total
workers at the petrol stations. One special thing about the human policy at PVOIL petrol


10

station is that: 100% head of petrol station (person in charge of petrol station) are male,
not female.

Less than high school
460
High school or
equivalent

480

500

340
300

Technical school or
Some College
975

1495

1560

1625

1105

Bachelor's degree
180
45
2012

204
51
2013

276
69
2014

288
72
2015

300
75
2016

Less than high school

300

340

460

480

500

High school or equivalent

975

1105

1495

1560

1625

Technical school or Some College

180

204

276

288

300

Bachelor's degree

45

51

69

72

75

Figure 4. Educational level of workers at petrol stations owned by PVOIL
(Source : PVOIL)
Alam Sageer5 indicated that education plays a significant determinant of employee
satisfaction as it provides an opportunity for developing one’s personality. Education
develops and improvises individual wisdom and evaluation process. The highly educated
employees can understand the situation and assess it positively as they possess
persistence, rationality and thinking power.
Regarding the education of workers at PVOIL petrol station, as can be seen from table
above, most of the workers have low qualification: 85% of workers graduated high school
or less than high school, only 12% workers were trained at the technical school or college
and very small number of workers (with 3%) have Bachelor’s degree. According to the
human resources policy of PVOIL, except the leader of petrol stations must have a
College degree or above, other positions at PVOIL petrol station do not require high
diploma. However, due to the large number of workers having low qualification, it may


11

cost a lot of money for PVOIL to train them to achieved the required skills at work place,
such as communication skill with customers or safety policy.
Ms. Nguyen Thi Hong Nhung – Human Resources Deputy Manager at PVOIL informed
that:
When interviewing, we clearly stated that we do not pay much attention to diploma for the
position of workers at petrol station. But many people with good education background
accept to become a workers at petrol stations. Maybe, they want a temporary job to support
their life or maybe they wish to have opportunity to get higher position with their good
working performance and diploma after working as a workers for a time.
Age from 41-50
4%

Age >50
2%
Age from 18-24
15%

Age from 33-40
45%

Age from 25-32
34%

Figure 5. Age classification of workers at PVOIL petrol stations in 2016
(Source : PVOIL)
Regarding the average age of workers as showed in Figure above, about haft of the
workers are ranging from 18-32, 45% of the workers are from 33-40, and only 6% of the
workers are over 41. It can be seen that, most of workers at petrol stations are young.
This’s maybe the fact, only young people are healthy enough to work at the petrol stations

because they have to work under unhealthy, toxic environment everyday.


12

≥ 8 years

25

From 4 - 7 years

150

From 2 - 4 years

775

From 1 - 2 years

1050

< 1 year

500
0

2016

< 1 year
500

200
From 1 - 2 years
1050

400

600

From 2 - 4 years
775

800

1000

From 4 - 7 years
150

1200

≥ 8 years
25

Figure 6. Working time for PVOIL of workers at petrol stations up to 2016
(Source : PVOIL)
In figure above, thee large number of workers, taking account for 62%, with around 1.550
people, have been working at petrol station for no more than 2 years, 31% (with 775
people) have 2-4 years working at petrol stations and 6% (with 150 people) have 4-7
years experience, and especially with only 1% (25 people) have been working at petrol

station from the date of PVOIL establishment. The short time working at petrol stations
show that, these workers have no retention. This can be seen that, most of the workers
have very few motivation and no intention to work at petrol station for a long time.
The consequence of this shortage retaining workers is becoming one of a major concern
for PVOIL company. Retention can not be achieved without motivation. Ms. Nguyen Thi
Hong Nhung – Human Resources Deputy Manager at PVOIL told that:
We made a statistic based on the data collected from year 2014 to year 2016, we see that
turnover rate on the rise, the average employee turnover rate is 18%. The consequence is
that we have to pay more money for training newly-recruited workers, thus this lead to an
increase in operational cost increase.


13

Table 7. Average income of workers at petrol stations.
Unit: VND million/person/month
Company

Position at petrol station

2012

2013

2014

2015

2016

PVOIL

Manager
Worker

9,2
7,8

8,0
6,6

8,0
6,5

8,0
6,5

8,0
6,5

Manager

8,2

8,5

9,3

9,5

10,2

Petrolimex

Worker

6,8
7,2
7,6
8,1
8,5
(Source : PVOIL, Petrolimex, SaigonPetro)

As above mentions, wages is always the biggest concern of employee at PVOIL. At the
time of 2012, the average income of workers at PVOIL petrol stations was good. Table
7 shows that: during the period 2012 to 2016, the income of employee at Petrolimex’s
petrol station had a tendency to go up, while the income of employee at PVOIL’s petrol
station had a tendency to go down and remained unchanged. Since 2013, PVOIL applied
the new payment policy, in which there was a big decrease in the income of workers. The
new policy payment is based on the position of employees, regardless the qualification,
working experience, time working for PVOIL or the place of living.
Ms. Nguyen Thi Hong Nhung – Human Resources Deputy Manager at PVOIL shared
that:
The new payment policy in 2013 had caused a big concern for workers at petrol stations.
Many workers said that the payment policy is unfair, not competitive and lack of recognition
their contribution in the past and slippage in prices.

If compare with the income of Petrolimex and SaigonPetro for the same position, the
income of PVOIL is lower than around 18-20%. The income of workers at PVOIL is just
the same at the income of labor in other industries (the average income of employed

workers in State sector is around 6 million VND/month in 2016- General Statistics Office
of Vietnam) while they have to work under pressure and unhealthy environment. A lot
of workers felt disappointed and lack of working motivation. This have a negative


14

affection on the number of newly-recruited workers at PVOIL petrol stations from 2012
to 2016 as below.
Ms Vu Anh Tho - staff at PVOIL petrol stations shared that said that:
We feel that we have no recognition from manager. We also feel no satisfy with new
payment policy. Besides, we often feel tired during working hours at petrol station and we
also have occupational disease. We often feel trouble under and no work-life balance. We
have no time for family.

600

345

175 160

180

210

195
105

45
2012

2013

2014

2015

75

Number of workers
recruited to replace
for workers quited
their jobs
Number of workers
recruited for newlyestablished petrol
stations
Linear (Number of
workers recruited to
replace for workers
quited their jobs)

2016

Figure 7. Number of newly- recruited of workers at PVOIL petrol station
(Source : PVOIL)
As can be seen from the Figure above, since 2013, due to the newly-applied policy
payment and due to the lack of motivation, the number of workers at petrol stations
quitted their job increased year by year. And this problem has a tendency to go up. The
Humane Resources Department of PVOIL have to recruit workers not only for newlyestablished petrol stations but also for replacing workers who did quit their job.
3. PROBLEM VALIDATION

Zahra 6 stated that employees are the worthy assets of any organization. Achieving the
objectives of any organization depends on the intelligent management of these worthy
sources. Workforce is the important and effective factor of productivity. If these forces
have full confidence and strong motivation, they will reach the productivity to its highest


15

level. Generally, the most important factor that is effective in labor productivity is
motivation in performing the works.
Srivastava et al.

7

indicated that most workers are not satisfied and motivated in their

jobs. Workers are motivated to perform well when the work is meaningful and
individuals believe they have responsibility for the outcomes of their assigned tasks.
Motivational factors influence the productivity are: Intrinsic/Extrinsic Motivation,
Cognition and Environment.
So, it is very important to identify the reasons for low motivations of employees at
PVOIL petrol station. Initial interviews are conducted with 2 groups: Managers at the
head office of PVOIL and Workers at PVOIL petrol stations. After interviewing and
combining with examining relevant literatures on motivation, the key potential problem
affecting the motivations workers at PVOIL petrol station are:
-

Payment and welfare policy.

-

Working condition and environment.

-

Promotion and career development.
3.1. Payment and welfare policy

Akmal Umar

8

indicated that wage significant affects on work motivation. The higher

wages received by workers, then the workers' work motivation is likely to increase.
Motivation significantly affect performance. The higher the perceived work motivation
of workers, the performance of workers is likely to increase. The higher the perceived
job satisfaction of workers, then the workers' work motivation is likely to increase.
The payment policy of PVOIL that applied for employees is now based on the Key
Performance Index, it means the salary is fix for a position. It will be changed if only you
are promoted to the higher position. It means that the policy is regardless of the degree,
working experience, time working for PVOIL or the place of living.
Ms. Vu Anh Tho – staff at PVOIL petrol stations shared that:


16

The problem is that, the new payment policy make my salary lower than in the past. I receive
nothing just the salary. In the past, my salary was consider to raise after two or three years,
but now, the this will not happen. It is very difficult for me to support my family. I feel so

disappointed and lack of motivation.

Fapohunda 9 explores the connection between work life balance practices and
organizational productivity and whether work life balance practices possibly decreases
employee turnover and absenteeism. Work-life balance it is not a quandary to be
determined once but a constant concern to be managed. For organization goals to be
achieved through the people employed, work-life balance concerns must become a
crucial feature of human resource policy and strategy. Management must build a
profound endorsement of people and their roles, to fashion a satisfying, extraordinary
and self-motivated work environment.
For workers at PVOIL petrol stations, due to the characteristic of job, they have no
welfare policy as people at the office, such as: yearly vacation. Mr Luu Xuan Bac, head
at PVOIL petrol station located in Ho Chi Minh city shared that:
We have to work under unhealthy and unsafely environment. We try our best to contribute
for the development of PVOIL but there is no welfare policy for us. We are not allowed to
join in the yearly vacation or year-end party of PVOIL. We feel that PVOIL welfare policy
do not pay a lot attention to us.

Ms Vu Anh Tho, staff at PVOIL petrol station located in Ho Chi Minh city also shared
that:
We have to work day by day, including Sunday and Holidays. As a woman, I feel that I have
a very little time for my family. I have to ask my mother to take care my newly-born baby
for me during my working time. My time at workplace nearly make up my whole day. I feel
it’s hard to balance between my family and my work.


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3.2. Working condition and environment
Akinyele Samuel Taiwo

10

indicated that employee productivity problems are within

the environment. All efforts targeted toward alleviating employee productivity
problems should be directed at the work environment. Conducive work environment
stimulates creativity of employees that may lead to better methods that would
enhance productivity. Improvement in work environment can lead to higher productivity
of employees and bad working conditions contribute to low productivity of employees.
Mr Truong Thanh Long said that:
Recently, we see that the occupational diseases of workers increase related to lungs, skin,
and other respiratory organs. Employees in oil and gas companies exposed to various
chemicals and gases produced. These chemicals and gases caused for occupational diseases
of the lungs, skin and other organs. This is to say that the employees tend to experience high
level of stress and depression, dissatisfaction towards job and also sleep disorders.

Mahdi Golara 4 indicated that chemicals and gases caused occupational diseases of the
lungs, skin and other organs, depending on the duration of exposures for employees in
oil and gas. Beside, the unhealthy environment, workers at PVOIL petrol station also
have to face with the insecurity at the workplace, such as robbery.
Mr Luu Xuan Bac, head at PVOIL petrol station located in Ho Chi Minh city shared that:
We really feel nervous and insecure when keeping money of petroleum sold at the petrol
station overnight. In the past, there were some robbery and murder at mid-night at other
PVOIL petrol station. Our responsibility regarding keeping money is too big while we have
no rights or no support from company.


18

3.3. Promotion and career policy
Saharuddin, Sulaiman

11

show that the variables of promotion and compensation have

significant and positive impact on job satisfaction, morale and work productivity; job
satisfaction has significant and positive impact on work productivity; and morale has
significant and positive impact on work productivity.
When being asked about the promotion and career development path during the time
working at PVOIL petrol stations, Ms. Vu Anh Tho – staff at PVOIL petrol stations
shared that:
According to normal rule in PVOIL, I know one thing that, only male workers have
opportunity to become head of petrol station. Regardless my effort or contribution, I still
only a staff because I am a woman. Beside, I am just only the temporary worker, there is no
clear promotion path for workers like me.


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4. CAUSE - EFFECT MAP
For the result of initial interview together with workers’ motivation literatures, the cause-effect is developed as
three main groups as follows:

Working condition
and environment
Unhealthy working
environment

Unsafety working
environment

Payment and welfare
policy
No welfare
programe for
employees at
petrol stations
No work-life
balance

No long-time
contribution recognition
in salary payment

Low
sales volume
outcome

Unfair salary
payment

Low workers’
motivation
Gender discrimination
in promotion policy
Not know clearly about
necessary conditions for
promotion

Promotion and career
development
Figure 8. Cause-effect map

Poor
labor
productivity