Master of Business administration thesis: Improving employee motivation at NTT DATA Vietnam

NATIONAL ECONOMICS UNIVERSITY
BUSINESS SCHOOL

DO NHU VY

IMPROVING EMPLOYEE MOTIVATION
AT NTT DATA VIETNAM

MASTER OF BUSINESS ADMINISTRATION THESIS

HANOI - 2018


NATIONAL ECONOMICS UNIVERSITY
BUSINESS SCHOOL

DO NHU VY

IMPROVING EMPLOYEE MOTIVATION
AT NTT DATA VIETNAM

MASTER OF BUSINESS ADMINISTRATION THESIS

SUPERVISOR: ASSOC. PROF. DR. NGUYEN VAN THANG

HANOI - 2018


ACKNOWLEDGEMENT
Firstly, I would like to thank Assoc. Prof. Dr. Nguyen Van Thang Director of Asia - Pacific Institute of management at Vietnam’s National
Economics University. He is seasoned, international experienced researcher

in business and management, the advisor of this thesis. He instructed me how
to revise important points briefly, concisely, help enhancing the quality of
research.
I would like to express my gratitude to Assoc. Prof. Dr. Le Lan Huong Director of Business school at Vietnam’s National Economics University. She
is the manager of my school where I study MBA course, also is my
enthusiastic instructor in subject “Business research methodology”. She
equips me with a theoretical foundation, helped me creating a solid knowledge
base in business researching.
In research proposal reviewing process, I received many constructive
comments, valued recommendations, suggestions from research-proposalreviewing sub-committee: Assoc. Prof. Dr. Dao Thi Thanh Lam (also is my
instructor in subject “Managing Human Resources”), Assoc. Prof. Dr. Vu
Thanh Hung (also my instructor in subject “Business Strategic management”),
Assoc. Prof. Dr. Bui Duc Tuan (also Deputy Director of Business school at
Vietnam’s National Economics University).
I would like to thank many other teachers, officers at Vietnam’s National
Economics University who I cannot mention, list out fully.
I thank to NTT DATA Vietnam Limited company’s officers, employees
because they facilitate me about time, suitable workload, help me in work - life
- study balance in the thesis research conduction time.
Of course, I would like to thank my family members: parents, brothers,
and sisters who supported me in the time of thesis writing, also in other
aspects of my life. They facilitate me good conditions support my working,
studying, and researching.
Hanoi, December 2018
Do Nhu Vy


TABLE OF CONTENTS

ABBREVIATIONS
APAC
CEO
EIT
FDI
IDE
JICA
MBA
N/A
NDVN
HR
PIF
USD
SDK

Asia - Pacific
Chief Executive Officer
Enterprise Information Technology
Foreign Direct Investment
Integrated(/Interactive) Development Environment
Japan International Cooperation Agency
Master of Business Administration
Not answer
NTT DATA Vietnam
Human resources 
Public Information Infrastructure
United State Dollar
Software Development Kit

LIST OF TABLES


LIST OF FIGURES

GLOSSARY
Asia - Pacific market region of the NTT DATA corporation,
APAC

regional headquarter is NTT DATA Asia Pacific Pte. Ltd company
at Singapore.
Software Development Kit is typically a set of software development 
tools   that   allows   the   creation   of   applications   for   a   certain   software 

SDK

package,   software   framework,   hardware   platform,   computer   system, 
video   game   console,   operating   system,   or   similar   development 
platform. (Wikipedia)


EXECUTIVE SUMMARY
To accomplish organization’s goal, the organization must have human
resource, finance resources, facilities, technology, brand name’s reputation,
and so on. In all type of organization’s resources, human resource is the most
important factor. A good human resource must have motivated labors.
Motivation is very important for any organization, especially in enterprise
environment, because it allows management to meet the organization’s goals,
operating in efficient way. Based on good motivation, employees perform their
tasks by their best effort, best performance.

Employee motivation of knowledge workers of high technology fields
even became more important. In software industry, at the present, Vietnam is
in the process of international corporation and integration with many
developing also many developed countries in the world, skilled labor demand
for software development, information system integration is very high. NTT
DATA Vietnam (NDVN) is FDI company, the subsidiary of NTT DATA
Corporation, and NTT DATA Corporation is the subsidiary of Nippon Telegraph
and Telephone - a company ranked 50th in Fortune 2017 Global500 list.
However, high employee’s turnover rate and low morale at NDVN impact to
business operating of NDVN, it is risky for its quality of production and
services, also long-term development strategy. In few recent years, many
NDVN’s employees has left job after short-time working due diverse reasons;
A large percentage of employees who left job are experienced specialists.
Recruiting alternative staffs cannot fill the shortage left by employees who
have left work. In a long-term development strategy of the company, high
turnover rate of employees is risk for business opportunities and maintaining
quality of products, services at NDVN.
Many labor issues need attention from managers at NDVN. Based on
that premise, research objectives of the study include:
+ Current employee motivation at NTT DATA Vietnam.
+ Identify factors affect to employee motivation at NTT DATA Vietnam.
+ Suggest solution to improve employee motivation at NTT DATA
Vietnam.


Study of employee motivation plays an important role in attracting and
retaining talents for the company. This thesis used quantitative research also
qualitative

research

methodology.

Presence

of

quantitative

research

methodology is in-depth interview, then the author detects most influence
factors to employee motivation through analyzing interview transcripts.
Presence

of

qualitative

research

methodology

is

sample

choosing,

questionnaire designing, analyze survey raw data by statistics methods.

The author conducts in-depth interviews with 3 ex-employees, 3 current
managers and 3 current employees, the results obtained from surveying for
150 current employees working at NDVN (Hanoi, Danang, Hochiminh city
branch office).
In general, the research’s result points out employee motivation at
NDVN did not met board of director’s expecting, which makes employees at
NDVN become to dissatisfied, for example: low salary for junior level staffs,
new technology is not applied, ineffective training, bias in position
appointment, etc.
Based on the result of study, the researcher has finding that employee
motivation at NDVN affected by many factors: Salary and welfare, Leadership
behavior, Working condition, Advancement, Autonomy at work, Corporate
culture, and Colleagues relationship. In order to improve employee motivation,
NTT DATA corporation in general and NDVN, in particularly should improve
incentive through salary and welfare; concretizing and implementation wage
and welfare policy exactly as prescribed. Give employee chances applying
new technologies in software production for improving factor “Advancement”.


CHAPTER I. INTRODUCTION
1.1. Rationale of the research
Motivation function includes activities in human resources manager
concerned how to help employees exert themselves at high energy, working
with high effort. The motivation function is one of the most important yet
probably the least understood aspects of the human resources management
process. Human behavior is always complex. Looking for what motivate
employees at work is a long-time concern of management, human resources
researchers.
Labor’s motivation plays an important role at any organization because
it gains organization’s operating performance. To achieve the organization’s

goal, the organization must have many resources: capital, technology, good
business macro-environment, favorable geographical location, especially,
human resources (sometimes it called “human capital” because this factor is
too important, equivalent to financial capital). Containing high motivation
inside employees, that cause employees work actively, progressive,
meticulous, carefully. Ensuring organization utilize human resources fully. In
software industry, information system integration field, Vietnam is in the
process of multi-national cooperation and global integration with almost other
countries, skilled labor demand in software industry become very high,
knowledge workers must work with high motivation for finishing many
challenging works.
Therefore, improving employee motivation has been becoming an
urgent demand for many organizations and companies in Vietnam, including
NTT DATA Vietnam (NDVN). NTT DATA Vietnam limited company was
founded and officially went into operation on 10/2/2008, According to Mr.
Wantanabe, General director, NDVN’s employees have skills, knowledge
enough to development sophisticated, complex information system and/or
software for big enterprise also public sector.
In this study, the atuhor just focus on issues of employee motivation at
NTT DATA Vietnam due two reasons. The first reason is that issues of
employee motivation at NDVN are seriously concerned by management. In


fact, NDVN faces low working morale from its employees, reflected in high
employee turnover rate and un-enthusiasm in working: Turnover percentage is
25% in fiscal year 2017. (Hanoi branch 25%, Danang branch 20%, Hochiminh
city 35%). As estimated, 5 managers and 30 staffs in three areas stopped
working in 2017, because they didn’t feel satisfy with NDVN’s incentive policy.
Employees join work with low commitment. They don’t want to participate in
activities what organized by the company, or they are ready to quit if they can

seek for another job which is nearer or with higher salary, etc. Shorter
seniority years, lower working performance, lower loyalty due to lacking
motivation cause low-quality products and information system services. So
NDVN has many problems in managing human resources that affect to
performance of the company directly. Next reason, this research topic is
feasibility for the author in collecting data manner, the author can delivery
survey and author can receive feedback with high returned survey
percentage, because the researcher is also an employee who worked at
NDVN.
At the present, many issues of employee motivation at NTT DATA
Vietnam need solving in a systematic approach. Therefore, I decide to take
the topic: “Improving employee motivation at NTT DATA Vietnam” for my
MBA thesis. The research will give the company’s leaders/managers some
important insights into employee motivation at the company.
The thesis is a science research, also an applied project. Author’s idea
is basing on many previous employee motivation researches (literature
review), has a list of popular factors impact to employee motivation at NDVN,
through in-depth interview a small number of typical cases (a small number of
employees), deciding factors impact to employee motivation in theoretical
framework, decide questionnaire survey, then analyze survey data, hypothesis
testing, make suggestion for manager. The research uses qualitative research
method (in-depth interview) also quantitative research method (analyze
statistic data from survey result). The research is combination of human
resources managing, statistic, labor psychology, etc. based on existing
achievement from previous researches then develop research ideas on reality


at NDVN.
1.2. Research objectives
- Determining current employee motivation.

- Identify factors affect to employee motivation at NTT DATA Vietnam.
- Suggest solution to improve employee motivation at NTT DATA Vietnam.

1.3. Research questions
The research has a root intention, started from manager’s dilemma. In
these near years, employee turnover rate is very high (from 20% - near 35%
in per head office, branch offices). Expenditure for recruiting new employee is
very high. After recruiting, newcomers need probationary process, they maybe
pass or fail, even if newcomer fails, the company lost more expenditure for
looking for other candidates, for training, etc. By determining factors affect to
employee’s loyalty, motivation, employee performance, reducing employee
turnover rate, manager hopes the organization operating effectively, especially
in human resources ensuring in also quality and quantity manner. When
determining factors impact to employee motivation ((In also 3 areas: Hanoi
branch, Danang branch, Hochiminh city branch)?), ordering factors from
highest to lowest impacting is important for suggestion solution for managers.
Research questions are
- How is current employee motivation?
- What are factors affect to employee motivation at NTT DATA Vietnam?
- What are solutions for improving employee motivation at NTT DATA
Vietnam?

1.4. Research methodology
1.4.1. Research process
In general, a research process must go through six steps include
•

Overview of research

•

Research question

•

Theoretical framework


•

Research designing

•

Collect and analyzing data

•

Write research report and publication

(Source: Thang, N.V., 2017, pp. 21)
The author of this thesis inheritances above process, add more detail,
tailoring a little in specific context of the company. (Because the thesis written
does not intent for publication on science journal, therefore purpose
“publication” is not necessary). Conducting in-depth interview before designing
questionnaire, for assuring choosing factors impacts to employee motivation
better. As an applied research, section “executive summary” added.


(Source: author)

1.4.2. Data collection
The author used two types of data include primary data and secondary
data. Primary data collected through in-depth interview with 9 people (6
current employees and 3 ex-employees) and questionnaire. Secondary data
collected from both internal and external resources. External sources include
Internet resources, news paper, articles, agency related to employee
motivation. Internal resources include business report, regulations of the
company to get according information about employee motivation, career
paths, welfare policy, company’s history, and so on.
1.4.3. Data analysis
The research analyze data by using descriptive analysis, correlation
matrix, exploratory factor analysis, reliability analysis on IBM’s SPSS version
23.
1.5. Scope of research
Research conducted on three branches include Hanoi head office,
Danang branch office, Hochiminh city branch office. Research objects are
current employees and new left-job employees (in period 1 year or less than
from the day he/she left job from NDVN).

1.6. Thesis structure
Chapter I: Introduction


Chapter II: Theoretical background on employee motivation
Chapter III: Research design
Chapter IV: Result and discussion
Chapter V: Suggestion for improving employee motivation
And supplement documents are In-depth interview sheet, Questionnaire for
survey, intermediate data analysis result.

CHAPTER II. THEORETICAL BACKGROUND ON
EMPLOYEE MOTIVATION
2.1. Term “motivation”
Motivation is an important topic in managing human resources. In book
“Organizational Behavior” of Kreitner and Kinicki (1998), the term “motivation”
is derived from Latin word “movere” what means “move”. Motivation is “those
psychological process that cause the arousal, direction, and persistence of
voluntary actions that are goal oriented” (Mitchell, T. R. 1982, pp. 81).
Motivation defined as “The processes that account for an individual’s intensity,
direction, and persistence of effort toward attaining a goal.” (Robbins, S. 2001,
pp. 156).
In Oxford Leaner’s Dictionaries, “motivation” is a noun, it means “the
reason why somebody does something or behaves in a particular way” or “the
feeling of wanting to do something, especially something that involves hard
work and effort”. In this definition of the dictionary, “motivation” stood at a
larger context (it is motivation in all tasks, all types of jobs, not just in company
environment) when comparing with the research’s context (at work at NDVN).
Motivation is giving interest, enthusiasm, reasons, motivation or cause a
certain behavior or specific action. The presence of motivation in all official
survival as simple as drinking behavior is motivated by thirsty. Even,
motivation can be something from reward for coercion. School admission is
motivated by a desire to obtain knowledge.
2.2. Literature review
Employee motivation has formed and presences in two directions, there
are employee motivation from inside himself/herself and outside. Intrinsic
motivation is something inside of employees, such as money, physical body,
talent, desire, passion, dreaming. External motivation comes from external
factors what are incentive policy, forcing, jealousy from colleagues, challenge,
and so on. In material perspective, money-earning purpose, social rewarding

or avoiding punishment are few examples of external motivation. Evaluating
personal characteristics is important in studying employee motivation. Few


people have specific characteristics, but others haven’t these.
In book “Contemporary Management”, Gareth R. Jones & Jenifer M.
George defined motivation as “psychological forces that determine a person’s
behavior in an organization, the qualification of a person efforts, and the
extent of a patient.” (Jones, G.R. and George, J.M., Hill, C.W.L. 2003)
Daschler & Ninemeier (1984) written “Motives are a valid state or within
an individual that makes the actions of employees a way designed to achieve
several goals. Taking this broad sense and put it into the context of
supervision of hotel operations, we can say that the motive is what
supervisors do not encourage and influence others to take necessary actions.
Motivation is, in fact, an internal driving force in the creation or personal scope
provides incentive for the employee to take action.”
In 1990, Drummond has been written “Motivation is for individuals and
help explain behavior. Motivation is a complex process inside with three
components: What make individuals behave in certain ways, what is driving
behavior, and what maintains behavior. To meet the needs of the employees is
very difficult because each employee has different charactistics that affect
behavior. These factors must be related organizations the mind is self
concept,

values,

experiences.

They

attitudes,
must

interest,
encourage

emotions,
employees

personality,
through

and
a

life

positive

organizational climate that is motivating.”
In the study, author uses combination of those above definitions that
“Employee motivation can be explained as the driving force that energinzes,
directs and sustains employees toward attaining an organizational goal.”.
Motivation become to important toward society (country, economics),
organization (company), and an individual (employees, staffs, workers).
Creating motivation in per person makes labor productivity higher, when
employees have motivation, employees love his/her job and they willing to
work hard, then good result is personal productivity improved significantly.
Therfore, employees’ productivity increased than wage will raise. At another
perspective, creativity is often promoted if people are comfortable, volunteer

when doing certain job. More engagement with work and the present


company: When labors feel their job are exciting works, they form inside their
commitment to the organization. An additional benefit for employees, when the
work was coordinated, they will see their own efforts to benefit and achieve
work outcome effectively. The good result of work contributes back to improve
employee themselves as a round-trip cycle.
Motivation toward to organization: Human resources in the organization
will be using the most efficient and can optimally exploit the capabilities of
employees and improve business efficiency. Form a valueable asset of the
organization is a team of skilled employees, with passion, with commitment,
engaged with the organization and attract more talented people to work for the
organization. Creating an atmosphere work of work hard, comfortable,
contributing to building company culture helps ehancing brand-name value
and good image of company.
Motivation impacts to society, employee motivation supports per person
accomplish goals, his/her purpose, spiritual life of each person will become
plentiful, live in wealthy, then forming new values to society indirectly. Indirect
labour motivation to build more and more prosperous society more based on
enterprise development. When their needs are met, society members have a
comprehensive living and they become happier, better learning conditions,
better health care.
In 1946, Foreman Facts at Labor Relations Institute of New York has
been created a survey based on questionnaire, then show model factors
impact to employee motivation on industrial workers. This research model
then become popular, many researchers, institutions applied in many different
industries such as:
Research of Kennett S.Kovach (1987) add supplement and given 10
factors motivate employees such as: (1) Joyful job; (2) Fully appreciated

finished works; (3) Autonomy in work; (4) Stability job; (5) High salary; (6)
Promotion and advancement in career; (7) Good working conditions; (8)
Engagement between line-manager and employees; (9) Disciplining in clever,
subtle ways; (10) Supporting from superior to resolve personal issues of
employee. (Kovach, K.A. 1995)


Follow these above researches, many applied researches such as Bob
Nelsson, Balanchard Training & development (1991), Colin P. Silverthorne
(1992), Charles & Mashal (1992), Simons & Enz (1995), Wong, Siu, Tsang
(1999) conduct research in this direction.
The author of this thesis based on existing research and integrated with
in-depth interview process at company, then decide choosing follow factors
(1) Autonomy in work: Follow research “Motivation through the design of
work: Test of a theory” (1976) by JR Hackman and GR Oldham, determine
methodologies of working how to make employees motivated from inside of
job. Employee should understand working process from start to finish, and
they should play a specific important in job, this fact allow employees feel their
responsibilities about their works. Lastly, doing task must assured has
feedback from superior, recognize employee’s achievement, also suggestion,
constructing criticism help employee work better at latter tasks. Therefore,
employee know the real last result of their works.
(2) Salary and welfare: Researcher J. Stacy Adams given negative state of
tension provides the motivation to do something for correcting it. The referent
an employee selects adds to the complexity of “equity theory”. There are four
referent comparisons:
Self-inside
Self-outside
Other-inside
Other-outside

An employee’s experiences in a different position inside
employee’s current organization
An employee’s experiences in a situation or position outside
employee’s current organization
Another individual and/or group of individuals inside
employee’s organization
Another individual and/or group of individuals outside
organization.

Table . Four referent comparisons in Adam's Equity theory
(Source: synthesis from Adams, J.S. 1963)
Employee maybe compare he/she to colleagues, friends, neighbors, or
team-mates in same/other organizations; or even compare their current job to
past jobs. There are 4 moderating variables include level in organization,
gender, amount of education or professionalism, and length of tenure.


Ratio comparisons

Perception

Inequity due to being under-rewarded
Equity
Inequity due to being overrewarded

(Source: Adams, J.S. 1963)
Note: Value represents the employee; and value reprensents relevant
others.
Salary and welfare also affect to physical needs (eating, housing,

dressing, etc.) of employees directly in Maslow’s Hierarchy of needs (Maslow,
A.H. 1943). They are most important factors in research of Tony Simons and
Cathy Enz (1995) at United States, Canada and research of Kwame R.
Charles & Lincoln H. Marshall (1992) at Caribbean. According to Benjamin
Artz’s research “Firm size, performance pay and job satisfaction” (2008),
welfare play an important role in determine level of job satisfaction. In
Herzberg’s Two-factor theory, salary belong to hygiene factors group.
(3) Advancement: In Herzberg’s Two-factor theory, training and advancement
opportunity belong to hygiene factor group. In research of Wong, Siu, Tsang
(1999), training and advancement is the most important factor in hotel staffs in
Hong Kong.
(4) Corporate culture: According to Stephen Overell, 2009, five key factors of
incentive and motivating: Develop corporate’s brand name from inside,
communication values of organization, Good leadership, creating joyful and
challenge working environment, administration in working result and constant
reach excellent. The research of N. Tavassoli (2008) in article “Branding from
the inside out” points out “Conducting brand-name communication and make it


become to lively through human resources make higher profound in
employees, feeling better about common target of organization and higher
motivation level”
(5) Colleagues relationship: Employees need supporting from colleagues
when they need, looking for comfortable, friendly when working together. (Hill,
Charles W.L. & Jones, Gareth R. 2008). Bellingham, 2004 points out,
employees must have the devoting for work at colleagues in order to reach
best working result. Ralph Chami and C. Fullenkamp 2002 in research paper
“Trust and efficiency” point out, colleagues must be reliable persons.
(6) Leadership behavior: In research “The influence of human resource
management practices on the retention of core employees of Australian

organisations: An empirical study” by Janet Cheng Lian Chew in 2004,
employee’s motivation depends on leader’s behaviors, working relationship,
corporate culture and structure, working environment. The result from
research “2012 Global Workforce Study” of Towers Watson, enforcement
opinions about direct superior has strong impact to the cement of employee
with his/her job, company and willingness to contribute to the success of
his/her company.
(7) Stability: Follow Maslow’s Hierarchy of needs, people always looking for
safety, and employees are also. Stability and safety share almost same
characteristics.


(Source: Maslow)
(8) Working conditions: Safety, clean, fully facilities office help employees
have more motivation to finish work, according to the research of Kennett S.
Kovach in 1987.

2.3. Theoretical framework on analyzing employee motivation
Based on literature review and in-depth interview at a specific context,
the author of thesis decides these below factors for the research

(Source: author)

2.4. Attributes for employee motivation analysis
Before deciding factors affect to employee motivation, the author
conducted interview with 6 current employees and 3 ex-employees in near
time. The content of questionnaire for in-depth interview at the appendix.
For specifying the above theoretical points in business reality, I use
many attributes to evaluate per factor. Use a five-level Likert item for

measurement:
+ Strongly disagree
+ Disagree
+ Neither agree nor disagree
+ Agree
+ Strongly agree
- Independence variable: Working conditions
+ Company supply working facilities (PC, laptop, internet connection,
Wi-Fi, dual-screen for programming, licensed software, development
tools, SDK, etc.) fully.
+ Working room is clean, silence, enough large, non-toxic factors.
+ No overtime working.
+ Feel comfortable with ancillary services (motor parking, car parking,
lunch restaurant, building staff).
- Independence variable: Stability
+ Employees don’t worry about losing their jobs.
+ The company operates stably and effectively.
- Independence variable: Advancement
+ The company often has suitable training courses.
+ Learn new technology from applying new technology in new software
project.
+ Employee has chance to learn from talent colleagues.
+ The company has clear career paths and employee feel satisfaction
with evaluation to next ladder on the path.
- Independence variable: Corporate culture
+ Employees are proud of the company brand.
+ Employees recognize that the entire customer partner values the
company's brand.
+ Employees like corporate culture.

+ The company has a sustainable development strategy.
+ Employees feel the company’s vision and values is suitable.


+ The company always product high quality products also services.
- Independence variable: Colleagues relationship
+ Colleagues are reliable and honest.
+ Teamwork operate effectively.
+ Colleagues often share, support experience in work also in life.
+ Colleague are comfortable, joyful and sociable.
- Independence variable: Salary and welfare
+ Wages paid are worth the effort the employees spend.
+ Wages can guarantee the life of staffs and families.
+ Reward policies are timely, clear and transparent.
+ Welfare regime is complete and correct employee group is entitled.
+ Staffs are satisfied with the welfare policy of the company.
+ Welfare, wages, bonuses paid timely and satisfactory yet?
+ Policy salary, bonus, welfare regime has really care about employees
or not?
- Independence variable: Autonomy at work
+ Take risks by creativity and innovation.
+ Employee are asked about number of jobs that fit their capacity
+ Be involved in production planning.
+ Division of labor is reasonable.
+ Employees are involved in decisions that affect their work.
- Independence variable: Leadership behavior
+ Leaders evaluate employee achievement in terms of equity and
recognition.
+ Leaders help and support staff to complete the work assigned.
+ Leaders provide feedback to help employees improve job

performance.
+ Leaders protects the rights of employees.
+ Leaders believe the ability of employees.
+ Leaders is subtle when criticized.
- Dependence variable: Employee motivation
+ Employees are interested in the current job.


+ The staff's attitude is always good, cheerful and optimistic.
+ Staff willing to working with his/her best performance
+ Employees appreciate the incentive policies of the company.