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NEW CC Construction Consultants is one of the nations leading consultancy company offering services in architect and engineering design, project management and design & build to private and public organizations of all sizes, especially in FDI industrial projects.
Nowadays, there are more and more construction consultancy companies in Vietnam and the competition is more and more fierce now. The competition is not only in getting project but also in keeping/ attracting qualified human resource as well. Of course, NEW CC cannot be out of that battle, there are many problems related human resource management that the company has to deal with.
In order to compete with other construction consultancy companies and to develop more, NEW CC has to build a good plan/policy to attract and keep the best people. Therefore, NEW CC has to invest to the labor force through knowing how to improve its employee motivation and how to manage its employees to obtain a sustainable productivity. That is why this topic has been chosen. The purpose of this research is to understand more about employee motivation and find the rooms to improve employee motivation at NEW CC.
1.2 PROBLEM STATEMENT AND RATIONALE OF THE RESEARCH
1.2.1 Problem statement of the research
The problem is that NEW CC management board would like to improve employee motivation, so the board really needs the answer of the question "How to Improve Employee Motivation at NEW CC"1.
The answer of above question is a very important input of a process to build a good policy to attract and keep the best people as well as improve the productivity of the company.
1 This is from NEW CC General Director's comments at year-end management board weekly meeting 2011
1.2.2 Rationale of the research
Although NEW CC is well-known in construction consultancy field in HCMC but the fact is that many key persons, especially managers, have left NEW CC in recent years. With the fluctuation of employee number around 90, the Table 1.1 shows that number of job quitting employee in recent years at New CC is quite alarming. It is worse that these persons have gathered to establish new companies with the same scope of business. This has been a headache matter for NEW CC management board recently. Many opinions and arguments have been given to discuss but these are just impulsive feelings without basing on any research results and this issue has been still unanswered. So, this research is useful for one who cares the human resource at NEW CC. The findings will be meaningful for NEW CC as a little contribution to the development at NEW CC. It is important to know the reason of employee quitting at the high rate. It has been said that many employees have left NEW CC due to the lack of motivation. So, this topic is studied to contribute an effective solution to NEW CC's development. To improve employee motivation, it needs to know what factors impact on the employee motivation, what are behind employee actions. After identifying the factors that impact on employee motivation, the way will be founded to improve it.
Number of job quitting employee
Number of total employee (persons)
Percentage of job quitting employee/ total employee (%)
Table 1.1: Number of Job Quitting Employee in Recent Years
1.3 THE OBJECTIVE OF THE RESEARCH
To identify the factors that affect to employee motivation and to select an appropriate model in measuring the employee motivation at NEW CC.
To propose solutions and priority of these to improve the employee motivation at NEW CC.
To evaluate the perspective of these solutions.
1.4 THE SCOPE OF THE TOPIC
This research is for all employees at NEW CC and focused especially on those in design and project management departments. These two departments are the key units at NEW CC.
These questionnaires are for those who are still working at NEW CC and also for those who left NEW CC.
Due to many reasons, the rate of those who left NEW CC joined this research interview is rather small. It is better if this rate is higher than more objective result can be received.
1.6 SUMMARY OF CHAPTER 1
This chapter introduced the problem statement, the rationale, the objectives, the scopes and the limitation of the research. The chapter 2 is to present the literature review with the existing theories of motivation and chosen model as the frame work for this research as well as the factors influencing employee motivation.
The literature review should be prepared well as this is an integral part of entire research process and makes valuable contribution to every operational step. This can be time-consuming, daunting or frustrating but this is also awarding. If this is prepared well then the research can be understood deeper. So, the following headings are the details of literature review of this research.
2.2 DEFINITION OF MOTIVATION
All organizations/companies are concerned with what should be done to achieve sustained high levels of performance through people. This means giving close attention to how individuals/employees can best be motivated through such means as incentives, rewards, leadership and, importantly, the work they do and the organization/company context within which they do that work. The aim is to develop motivation processes and work environments that will ensure that individuals/employees deliver results in conformity with the expectations of management (Armstrong, 2006).
Motivation theory examines the processes of motivation. It explains why people at work behave in the way they carry out in terms of their efforts and the directions they are taking. It describes what organizations can do to encourage individuals/employees to apply their efforts and abilities in ways that will further the achievement of the organization's goals as well as satisfying their own needs (Armstrong, 2006).
In understanding and applying motivation theory, the aim is to achieve added values through people in the sense that the value of their output exceeds the cost of generating it. This can be achieved through discretionary effort. They can do just enough to get away with it, or they can throw themselves into their work and deliver added value. Discretionary effort can be a key component in organizational performance (Armstrong, 2006).
The motivation theory has been studied by many authors from the past till now, and there are many definitions of motivation have been defined. For this research, "motivation is defined as the inner force that drives individuals to accomplish personal and company goals" (James, 1998).
THEORIES OF MOTIVATION
2.3.1 Maslow's Hierarchy of Need (1954)
He suggested that there are five major need categories which apply to people in general, starting from the fundamental physiological needs and leading through a hierarchy of safety, social and esteem needs to the need for self-fulfillment, the highest need of all. Maslow's hierarchy of five levels is as follows:
Figure 2.1: Hierarchy of needs (Maslow, 1954)
1. Physiological - the need for oxygen, water, food and sex.
2. Safety - the need for protection against the deprivation of physiological needs and the danger around.
3. Social - the need for affection, love and acceptance as belonging to a group.
4. Esteem - the need to have a stable, firmly based, high evaluation of oneself (self-esteem) and to have the prestige.
5. Self-actualization - the need to develop potentialities and skills, to become what one believes one is capable of becoming and this is the highest one.
Maslow's theory of motivation states that when a lower need is satisfied, the next highest becomes dominant and the attention is turned to satisfying this higher need. The need for self-fulfillment, however, may never be satisfied. He said that 'man is a wanting animal'; only an unsatisfied need can motivate behavior and the dominant need is the prime motivator of behavior. Psychological development takes place as people have a tendency to move up the hierarchy of needs, but this is not necessarily a straightforward progression. The lower needs still exist, even if temporarily dormant as motivators, and individuals constantly return to previously satisfied needs (Armstrong, 2006).
Maslow's needs hierarchy has an intuitive appeal and has been very influential. But it has not been verified by empirical research and it has been criticized as follows (Sultan, 2004):
In practice, an overlap of needs is occurred. People are driven by many needs simultaneously. Maslow had not considered cultural differences that exist in human needs.
In some cases some people like Bethoven and Van Gogh went out of their way to meet self-actualization needs while still struggling to meet physiological needs.
If one watches the children development, they do strive for self-realization needs as they develop. Maslow's concept of self-actualization needs is very limited, only applying to two percent of the population.
If you consider the case of South Africa former Prime Minister Nelson Mandela, he was determined to achieve his self-actualization needs in a situation where his security and belonging needs were not met.
In our modern job security has become a cause for concern. In this situation employees develop needs for security and self-actualization concurrently.
2.3.2 Herzberg's Two Factor Theory (1959)
Herzberg further modified Maslow's needs theory. He developed this by doing an investigation into the job satisfaction/ dissatisfaction of accountants and engineers. It was assumed that people have the ability to report accurately the conditions that made them satisfied and dissatisfied with their jobs. Consequently, the subjects were asked to tell their interviewers about the times during which they felt exceptionally good and exceptionally bad about their jobs and how long their feelings persisted. It was found that the accounts of 'good' periods most frequently concerned with the content of the job, particularly achievement, recognition, advancement, responsibility, and the work itself. On the other hand, accounts of 'bad' periods most frequently concerned with the context of the job. Company policy and administration, supervision, salary and working conditions more frequently appeared in these 'bad' accounts than in those told about 'good' periods. The main implications of this research, according to Herzberg, are that: the wants of employees are divided into two groups. One group revolves around the needs to develop in one's occupation as a source of personal growth. The second group is as an essential base to the first and is associated with fair treatment in compensation, supervision, working conditions and administrative practices. The individual is not motivated by the fulfillment of the needs of the second group to high levels of job satisfaction and to extra performance on the job. All we can expect from satisfying this second group of needs is the prevention/ limitation of dissatisfaction and poor job performance (Armstrong, 2006).
These groups form the two factors in Herzberg's model:
Hygienes - These were characterized as lower level motivators and included, for example: company policy and administration, supervision, interpersonal relationships, working conditions, salary, and security.
Motivators - These emphasized higher level factors and focused on aspects of work, for example: achievement, recognition for achievement, the work itself, responsibility and growth.
Herzberg's theory is an easily understood approach that suggests that individuals have desires beyond the hygienes and that motivators are very important to them. However, like other theory, there are criticisms for this theory as follows (Sultan, 2004):
Interviewing were only for engineer and accountant groups. These findings may be not applied to other professional groups.
His methodology for conducting research led to such findings finally.
His methodology also lacked of scientific rigor.
Hygiene factors and motivators were varied depending on the types of individuals involved and the nature of the work examined.
Some argue that both job context and content produce both satisfiers and dissatisfiers.
There is no clear evidence to prove that highly satisfied people are also high performers.
2.3.3 Vroom's Expectancy Theory (1964)
One of the popular explanations of motivation was developed by Vroom. The concept of this Vroom's expectancy theory was originally included in the valency-instrumentality-expectancy (VIE) theory. Valency stands for value, instrumentality is the belief that if we do one thing then it will lead to another, and expectancy is the probability that action/effort will lead to an outcome. This concept of expectancy was explained in more detail by Vroom as follows: where an individual chooses between alternatives which involve uncertain outcomes, it seems clearly that his behavior is affected by both his preferences among these outcomes and the degree to which he believes these outcomes to be possible. An expectancy is defined as a temporary belief concerning the likelihood that a particular act will be followed by a particular outcome. Expectancies may be described in terms of their strength. Maximal strength is indicated by subjective certainty that the act will be followed by the outcome, while minimal (or zero) strength is indicated by subjective certainty that the act will not be followed by the outcome (Armstrong, 2006).
The strength of expectations may be based on past experiences, while individuals are frequently presented with new situations - a change in job, payment system, or working conditions imposed by management - where past experience is not an adequate instruction to the implications of the change. In these situations, motivation may be reduced (Armstrong, 2006).
Like others, there are some criticisms of this theory as follows (Sultan, 2004):
This theory has not been supported much by research evidence.
It is a rather complicated theory.
In many working situations individuals do not have choices they want most.
It is not easy to find out how much value is attributed to various outcomes.
It reduces motivation with a logical analysis of value and expectation.
2.3.4 Equity Theory (1965)
Equity theory explains how people's perceptions of how fairly they are treated at work (e.g., amount of the pay raise this year, how well the supervisor treats them, etc.) can influence their motivation. The nature of equity theory is that employees compare their efforts and rewards with those of others in similar work situations. This theory is based on the assumption that individuals are motivated by a desire to be equitably at work.
Four important terms in this theory are:
Person: the individual for whom equity/ inequity is perceived.
Comparison other: any group or persons that Person uses as a referent regarding the ratio of inputs and outcomes.
Inputs: the individual characteristics that Person brings to the job. These may be obtained (e.g., skills, experience, learning) or ascribed (e.g., age, sex, race).
Outcomes: what is received by Person from the job (e.g., recognition, benefit, pay).
Equity is existed when employees perceive that their input (effort) ratios to their outcomes (rewards) are equivalent to other employees' ratios. Inequity is existed when these ratios are not equivalent; an individual's own input ratio to outcomes could be greater than, or less than, that of others. The figure 2.2 illustrates the equity theory of motivation.
Figure 2.2: The Equity Theory of motivation (Ivancevich, 2008)
Like others, there are some criticisms of this theory as follows (Sultan, 2004):
Criticism has been directed to both the assumptions and practical application of equity theory.
The simplicity of the model have been questioned and argued that a number of demographic and psychological variables affect people's perceptions of fairness and interactions with others. Moreover, much of the research supporting the basic propositions of equity theory has been conducted in laboratory settings, and thus has questionable applicability to real-world situations.
Critics have also argued that people may perceive equity/inequity not only in terms of the specific inputs and outcomes of a relationship, but also in terms of the overall system that determines those inputs/outputs. Thus, in a business setting, one may feel that his or her compensation is equitable to other employee', but one may view the entire compensation system as unfair.
2.3.5 Four-Drive Model (Paul R.L. & Nitin N., 2002)
The Four-Drive Model was suggested by Lawrence and Nohria (2002). This model suggests that people are guided by four basic emotional needs, or drives, that are the product of our common evolutionary heritage. They are the drives to acquire (obtain scarce goods, including intangibles such as social status); bond (form connections with individuals/ groups); comprehend (satisfy our curiosity and master the world around); and defend (protect against external threats and promote justice). These above drives underlie everything we do.
"Some of history's most influential thinkers about people behavior - among them Aristotle, Adam Smith, Sigmun Freud, and Abraham Maslow - have struggled to understand its nuances and have taught us a tremendous amount about why people do the things they do. Such luminaries, however, did not have the advantage of knowledge gleaned from modern brain science. Their theories were based on careful and educated investigation, to be sure, but also exclusively on direct observation. Imagine trying to infer how a car works by examining its movements (starting, stopping, accelerating, and turning) without being able to take apart the engine" (Nitin, Boris & Linda, 2008).
Fortunately, this new theory based on new cross-disciplinary research in fields like neuroscience, biology, and evolutionary psychology has allowed us to peek under the hood, so to speak - to learn more about the human brain and to understand what factors underline people action.
220.127.116.11 The drive to acquire
We are all driven to acquire scarce goods that prop our sense of well-being. We experience delight when this drive is fulfilled, discontentment when it is obstructed. This phenomenon is applied not only to physical goods like food, clothing, housing, and money, but also to experiences like travel and entertainment - not to mention events that improve social status, such as being promoted. The drive to acquire tends to be relative (we always compare what we have with what others have) and insatiable (we always want more). This explains why people always care not just about their own compensation packages but about others' as well.
18.104.22.168 The drive to bond
Many animals bond with their parents, kinship group, or tribe, but only humans extend this connection to larger collectives such as organizations, associations, and nations. The drive to bond, when met, is associated with strong positive emotions like love and care and, when not, with negative ones like loneliness and anomie. At work, the drive to bond accounts for the enormous increasing in motivation when employees feel proud of belonging to the organization and for their loss of morale when the institution betrays them. But it is true that the ability to form attachments to larger collectives sometimes leads employees to care more about the organization than about their local group within it.
22.214.171.124 The drive to comprehend
We want very much to make sense of the world around us, to produce theories and accounts - scientific, religious, and cultural - that makes events comprehensible and suggests reasonable actions/ responses. We are frustrated when things seem senseless, and we are invigorated, typically, by the challenging of working out answers. Employees are motivated by jobs that challenge them and enable them to learn and develop, and they are demoralized by those that seem to be monotonous or to lead to a dead end. Talented/ genius employees who feel trapped often leave their companies to find new challenges elsewhere.
126.96.36.199 The drive to defend
We all obviously defend ourselves, our property and accomplishments, our family and friends, and our ideas and beliefs against external threats. This drive is rooted in the basic response common to most animals. In humans, it manifests itself not just as aggressive or defensive behavior, but also as a quest to create institutions that promote justice, that have clear goals/ intentions, and that allow people to express their ideas and opinions. Fulfilling the drive to defend leads to feelings of security and confidence; not fulfilling it produces strong negative emotions like fear and animosity. The drive to defend tells us a lot about people's resistance to change; it is one reason employees can be devastated by the prospect of a merger or acquisition - an especially significant change - even if the deal represents the only hope for an organization's survival. So, for example, one day you might be told you are a high performer and indispensable to the company's success, and the next that you may be let go owing to a restructuring - a direct challenge, in its capriciousness, to your drive to defend. Little wonder that headhunters so frequently target employees during such transitions, when they know that people feel vulnerable and at the mercy of managers who seem to make arbitrary personnel decisions.
Each of the four drives we have described is independent. They cannot be ordered hierarchically or substituted one for another. You cannot just pay your employees a lot and hope they will feel enthusiastic about their work in an organization where bonding is not fostered, or work seems meaningless, or people feel defenseless. Nor is it enough to help people bond as a close team when they are underpaid or toiling away at deathly boring jobs. You can certainly get people to work under such circumstances - they may need the money or have no other current prospects - but you will not get the most out of them, and you risk losing them altogether when a better deal comes along. To fully motivate your employees, all four drives must be addressed.
How to Fulfill the Drives That Motivate Employees
For each of the four emotional drives that employees need to fulfill, organizations have a primary organizational lever to use. The table 2.1 matches each drive with its corresponding lever and lists specific actions organizations can take to make the most of the tools at its disposal.
Table 2.1 Applying Four-Drive Model (Paul & Nitin, 2002)
2.3.6 Selection of application model
After reviewing the theories of many authors in the previous sections, I decided to use the Four-Drive Model as theory framework for this project. There are many reasons behind this decision.
Why other theories have not been selected?
Most of motivation theories had been based on careful and educated investigation (Nitin, Boris & Linda, 2008).
Most of motivation theories did not have the advantage of knowledge gleaned from modern science (Nitin, Boris & Linda, 2008).
There are many criticisms on these theories (refer to item 2.2 - Theories of Motivation of this research).
Why Four-Drive Model has been selected?
The Four-Drive Model is a new theory.
This theory was based on modern science, the development of neuroscience, biology and evolutionary psychology (Nitin, Boris & Linda, 2008).
2.4 FACTORS INFLUENCING EMPLOYEE MOTIVATION
Basing on this Four-Drive Model, I have developed a list of factors that has influence on the employee motivation. They are categorized into four groups as follows:
2.4.1 Reward system (Armstrong, 2006)
As defined by Manus and Graham (2003), total reward 'includes all types of rewards - indirect, direct, intrinsic and extrinsic'. Each aspect of reward, namely base pay, contingent pay, employee benefit and non-financial reward, which include intrinsic reward from the work itself, are linked together and treated as a coherent whole. Total reward combines the impact of the two major categories of reward as defined below and illustrated in Figure 2.3: 1) transactional rewards - tangible rewards which are arisen from transactions between the employer and employee concerning pay and benefit; and 2) relational rewards - intangible rewards concerned with learning and development/ work experience.
Figure 2.3: Model of Total Reward (Armstrong, 2006)
2.4.2 Culture (Armstrong, 2006)
There are many definitions of culture, the following are some of them:
Eldridge and Crombie (1974) The culture of an organization refers to the unique configuration of norms, values, beliefs and ways of behaving that characterize the manner in which groups and individuals combine to get things done.
Deal and Kennedy (1982) Culture is a system of informal rules that spells out how people are to behave most of the time.
Furnham and Gunter (1993) Culture is the commonly held beliefs, attitudes and values that exist in an organization. Put more simply, culture is 'the way we do things around here'.
Organizational culture can be described in terms of values, norms, artifacts and leadership or management style.
Schiffman and Kanuk (1994) state that: 'Values help to determine what we think is right or wrong, what is important and what is desirable' (Armstrong, 2006). Values are beliefs in what is best or good for the organization and what should to happen.
The stronger the values, the more they will impact on behavior. Implicit values that are deeply embedded in the culture of an organization and are reinforced by the behavior of management can be highly influential, while espoused values may have little or no effect. It is 'values in use' - values that drive desirable behavior - that are important.
Values are translated into reality through norms and artifacts as described follows. They may also be expressed through the media of language, rituals, stories and myths.
Norms are the unwritten rules of behavior hat provide informal guidelines on how to behave. Norms tell people what they are supposed to be doing, saying, believing, and even wearing. They are never expressed in writing - if they were, they would be policies/ procedures. They are passed on by word of mouth or behavior and can be enforced by the reactions of people if they are violated.
Artifacts are the visible or tangible aspects of an organization that people hear, see or feel. Artifacts can include such things as the working environment, the tone and language used in letters or memoranda, the manner in which people address each other at meetings or over the telephone, the welcome given to visitors and the way in which telephonists deal with outside calls. Artifacts may be very revealing.
Leadership style, often called management style, is described as the approach managers use to deal with people in their teams.
2.4.3 Job design (Armstrong, 2006)
Job design has been defined by Davis (1966) as: "The specification of the contents, methods, and relationships of jobs in order to satisfy technological and organizational requirements as well as the social and personal requirements of the job holder" (Armstrong, 2006).
Job design has two aims: first, to satisfy the organization's requirements for productivity, operational efficiency and quality of product or service; and second, to satisfy the needs of the individual for interest, challenge and accomplishment, thus providing for 'job engagement' - commitment to carrying out the job well. Clearly, these aims are interrelated and the overall objective of job design is to integrate the needs of the individual with those of the organization.
The process of job design starts from an analysis of what work needs to be done - the tasks that have to be carried out in case the purpose of the organization or an organizational unit is to be achieved. The job designer can then consider how the jobs can be set up to provide the maximum degree of intrinsic motivation for those who have to carry them out with a view to improving performance and productivity. Consideration has also to be given to another important aim of job design: to fulfill the social responsibilities of the organization to people who work in it by improving the quality of working life. The outcome of job design may be a job description although the emphasis today is more on roles and the development of role profiles.
2.4.4 Performance management (Armstrong, 2006)
Performance management can be defined as a systematical process for improving organizational performance by developing the performance of individuals and teams. It is a method of getting better results by understanding and managing performance within an agreed framework of planned goals, standards and competency requirements. Processes exist for establishing shared understanding about what is to be achieved, and for managing and developing people in a way that increases the probability that it will be achieved in the short and longer terms. People are focused on doing the right things by clarifying their goals. It is owned and driven by line management.
Performance management processes have become prominent in recent years as method of providing a more integrated and continuous approach to the management of performance than was provided by previous isolated and often inadequate merit rating or performance appraisal schemes before. Performance management is based on the principle of management by agreement or contract rather than management by command now. Development and the initiation of self-managed learning plans as well as the integration of individual and corporate objectives are emphasized. It can play a major role in providing for an integrated and coherent range of human resource management processes which are mutually supportive and contribute as a whole to improving organizational effectiveness.
The overall aim of performance management is to establish a high performance culture in which people take responsibility for the continuous improvement of business processes and for their own skills and contributions within a framework provided by effective leadership.
Performance appraisal can be defined as the formal assessment and rating of individuals by their managers at an annual review meeting.
Performance appraisal is the process of evaluating how well employees perform their jobs when compared to a set of standards. Such appraisal also has been called employee evaluation, performance review, performance evaluation, and results appraisal.
Performance appraisal has two general uses in organizations, and these roles often are easily conflicts. One role is to measure performance for the purpose of rewarding. Promotions or layoffs might hinge on these ratings. And managers usually meet the difficulties to do this. Another role is the development of individual potential. In that role, the manager is considered more as a counselor than as a judge, and the atmosphere is often different. Emphasis is on recognizing potential and planning employees' growth opportunities and direction.
2.5 SUMMARY OF CHAPTER 2
This chapter is designed to present the literature review with the existing theories of motivation. In conclusion, each researcher had a different look about the factors affected to the employee motivation. However, there is a consistency that in order to let the employee work with motivation then the managers should satisfy some needs for employee. Maslow (1943) suggested that they were: physiological needs, safety needs, social needs, esteem needs and self-actualization. Herzberg (1959) further modified Maslow's needs theory and consolidated down to two areas of needs that motivated employees which were hygiene term and motivator term but still satisfied employee needs finally. This chapter is also designed to present reasons why I decided to choose the Four-Drive Model as the frame work for this research. The next chapter 3 is designed to present the current situation at NEW CC.
CURRENT SITUATION AT NEW CC
In 1996, Dr. Nguyen Ngoc An started CC Engineering Consultant Ltd Co. (CC), with his several close associates. The company then, known as NEW CC (was renamed by early 2000) today, was very small in manpower and number of client with cope of service limited to design of small scale industrial works. Within less than 20 years of operation, NEW CC has now become one of the leading companies providing Engineering Consultant and Project Management service for Industrial Construction in Vietnam. From six staff at the establishment, NEW CC is now home of over 90 skilled and well trained engineers/ staffs and connects to network of qualified partners working on many highly invested and important projects across Vietnam.
In the recent years, NEW CC is pursuing to become the leading company in Vietnam that reaches the regional level of quality and professionalism of its field. The target has been shared between board of directors and all employees.
NEW CC is currently not at top list constructor in comparison with other big company in terms of staff and scale. However, that is also the advantage that company can rely on to go further by focusing on developing capacity and expertise on Engineering Consultant and Project Management for Industrial Construction works which currently receive less investment from other companies..
Thanks to the good relationship with foreign clients of NEW CC directorate, more than 90 percent of our projects come from these clients. Up to 2012, NEW CC has been chosen to implement many important projects such as Project on Development of Infrastructure for VSIP I (Binh Duong), Plywood Processing Factory - Vina Ecoboard (Long An), Cold Storage Lotte - Seaprimexco (Long Hau Industrial Park - Long An); Solid waste processing complex (Da Phuoc - HCMC), Metro Cash & Carry (Can Tho , Da Nang, HCMC), Kirin Acecook (My Phuoc, Binh Duong), Thai Son Irradiation Factory (Tra Noc Industrial Park, Can Tho), Inax Tile Factory (My Xuan Industrial Park, Vung Tau), Morito Manufacturing Plant (Hoa Khanh Industrial Park, Da Nang), Biomin Factory (VSIP II A, Binh Duong)â€¦
The table 3.1 shows NEW CC's important timelines and achievements from the establishment date till now.
CC Construction Consultants Co., Ltd was established with design and supervision consultancy function
The first Project Management service for "Saigon Textile Garment Factory" project at VSIP I Industrial Park
The first Turnkey (Design and Build) service for "Hoa Khanh Textile Garment Factory" project (Hong Kong)
Built and run current NEW CC head office
Design consultants and project management "Vina Ecoboard Plywood Treatment Factory" with investment capital up to $250 millions
Table 3.1: NEW CC's Important Timeline & Achievement
3.2 NEW CC'S VISION AND MISSION
Become leader in the southern of Vietnam in providing Engineering Consultant and Project Management service.
Provide services with international quality, environmental sustainability and beneficiary for investor through standard quality control system and professional consultants and engineers, and partly help to develop qualified human resource for Engineering Consultant and Project Management field in Vietnam.
3.3 COMPANY STRUCTURE
The figure 3.1 shows the high staff number of Design & Project Management departments - two key units at NEW CC now.
Personnel/ Accounting Department
Assistant to General Director
Deputy General Director
Site Management Staff
Office Support Staff
Figure 3. - NEW CC Organization Chart
3.4 HUMAN RESOURCE POLICY
3.4.1 Reward system
Employees receive a fix amount of money as monthly salary. Employees' monthly gross salary will be reviewed on a periodic basis (one time per year) to reward the employees for their accomplishments and contributions to NEW CC's success. The reviews will consider the labor market of Vietnam, employees' performance and business results of the Company. But as usual, the increasing amount for one time is only 500,000 VND.
Each employee receives at least 1-month salary bonus and this should be more if the result of company business is better. As year end 2011, although many companies in this field were in difficulty, but NEW CC business result was better than ever. As the result, each employee received 2-month salary as a bonus.
Every year holiday tourism has been held with rather high fees for all employees. Like this year, Cambodia tour was chosen with the fee for each up to 4,300,000 VND while Thailand tour was for those who had more than 5-year-working for NEW CC with the fee for each up to 8,300,000 VND.
English and technical certificate incentives: NEW CC encourages its employees to upgrade their English level and get valuable certificates (technical certificates, specialized certificates) by the reimbursement of study and exam fee of the course.
Higher education incentive: NEW CC encourages its employees to pursue higher/advanced degrees (ME, MBA and Ph.D.) directly related to their work. The approved candidate will be received time support as well as financial support from the company with the condition to work for the Company a definite time after receiving this.
Sport activity: All employees are encouraged to participate in team sports as sponsored by NEW CC. The team sports are usually organized from one to two times per week and it includes the games such as badminton and football.
The above reward system is rather good compared to other Vietnamese companies in this field. But it not really attractive compared to foreign companies in Viet Nam. And the increasing amount for one time is rather low. Furthermore, it is not so distinguished for key persons who have had a lot of contribution for NEW CC. This is one of the reasons why a large number of employees, especially who have good qualifications, had left NEW CC in the recent years.
One of the most remarkable features at NEW CC is team work. In this field, the success of one project comes from the coordination of all departments in the company. So, team work is a must from the beginning. This is enforced by team leaders through project process. So, working environment at NEW CC is rather friendly with not much jealousness.
In addition, one the most valuable features at NEW CC is "straight talking". At weekly management board, every head of each department can present what can be done to have more innovation. And then, this will be imparted to all employees.
With the above advantages of culture, NEW CC new employees have many conditions to develop their career. But there is still misunderstanding within each department and among departments. This is happened due to the lack of process synchronization. Sometimes the information flow and exchanging are not clear enough. This is an urgent matter to NEW CC now.
3.4.3 Job design
All employees have known well their job description before joining NEW CC. Generally, the job design is ok with all departments except for the project management department, construction department and some positions. It is extraordinary that the position of construction director has still been vacant from 2010 till now. For other companies, this should be a very attractive position but it is not right at NEW CC. That is why some positions at project management department have to hold responsibility at both project management and construction departments as a concurrent post. In the short term this can be acceptable. But in the long term this should be considered so that NEW CC can distinguish the responsibility/ job design between project management and construction departments.
As nothing is perfect and NEW CC is not the exceptional. Some employees feel so dissatisfied with their job at present. This is due to their job descriptions are not so clear. It seems that they are compelled to do chores sometimes. This is usually at subordinate positions. In the long term this should be revised as well.
3.4.4 Performance management
NEW CC is committed to recognizing efforts and achievements of all employees and providing timely, valuable and constructive feedback on their performance to make sure that they can learn and develop with the Company. Performance Appraisal is a tool for the management and its employees to establish and track the employees' performance objectives and to measure their accomplishments.
In course of Performance Appraisal, Director/ Manager will keep notes on critical developments in which his/her colleagues demonstrate either significantly good or poor performance. These notes will be kept on file to be used in the employee's next scheduled Appraisal. Performance Appraisal holds Directors/ Managers responsible for distinguishing levels of performance and meeting salary targets.
As a good Performance Appraisal result, an employee may be promoted or transferred to a more suitable job at NEW CC's department. The salary and related benefits will be in accordance with his/her new position. But sometimes, this cannot satisfy to all employees.
3.5 ADVANTAGE AND DISADVANTAGE OF NEW CC CURRENT SITUATION
With the managing of the founder - Dr. Nguyen Ngoc An, a highly experienced Vietnamese with more than 30 years of education and work covering Vietnam, Thailand, Japanâ€¦- NEW CC staffs have been received many valuable lessons from him. And as the owner of the company, Dr. Nguyen Ngoc An with his hands-on experience of studying and working aboard has made quite a name for New CC in that we never fail to use innovative construction methods and problem-solving approaches to effectively respond to each customer's needs. He is also the lecturer at Civil Engineering Department at University of Polytechnic, Ho Chi Minh City. So, NEW CC has a good relationship with many technical research and development centers of this university. This would be a great benefit for a construction consultancy company like NEW CC.
Almost NEW CC staffs have been recruited from University of Polytechnic, Ho Chi Minh City and University of Architecture, Ho Chi Minh City. So, it is a great benefit that NEWCC has qualified staffs. And from the above figure of NEW CC organization chart, it is easily seen that NEW CC can do all from the beginning till project handing over. This is really competitive compared to others.
Due to the lack of a clear path for employees to develop in the long term, many employees have left NEW CC the recent years. This is a really disadvantage. Then the rate of customers who has not satisfied with our service is higher than before.
3.6 SUMMARY OF CHAPTER 3
This chapter is designed to present current situation at NEW CC, especially focusing on four following categories that will be analyzed in this research. From this, both advantages and disadvantages of NEW CC current situation should be understood. The next chapter 4 is one of the most important parts of this research when it will present the implementation of this research and result.
4.1 RESEARCH METHOD
Both quantitative and quantitative research methods are used for this project.
Following Four-Drive Model, people are guided by four basic emotional needs, or drives, that are the drives to acquire, bond, comprehend and defend. Basing on the Table 2.1 - Applying Four-Drive Model which is mentioned in Chapter 2 and the questionnaire to test this model from the Author (refer to Annex 1), a questionnaire (refer to Annex 2) was designed to do the quantitative survey before doing qualitative survey. Basing on the questionnaire from Author, the questions for each drive are arranged as follows:
Acquire - Reward system
Salary is paid sharply differentiate good performers from average and poor performers
Rewards are tied clearly to performance
Salary is paid as well as competitors
Bond - Culture
In our culture, you can count on others to help you
Our culture values collaboration and teamwork
Our culture encourages the sharing of best practices
Our culture promotes friendship among coworkers
I feel a strong bond to my organization
Comprehend - Job design
My job is important in this organization
My job makes me feel that I'm doing something meaningful
My job makes me feel that I am contributing to my organization
Defend - Performance - management and resource - allocation processes
Our performance management system rewards high performance
Our performance management system is designed to encourage high achievers
Our performance management process is open and transparent
My organization's performance management system is fair
I trust our performance management system
My organization's performance management system helps me to advance quickly
The company communicates appropriate and relevant information about the company to employees on a timely basis
In-depth interviews were chosen for doing quantitative survey. Seven persons were chosen to join this quantitative survey. Information and content of this quantitative survey are mentioned at Annex 3.
After finishing quantitative survey, some issues are suggested to move and some are suggested to add in. And a final questionnaire (Annex 4) is done to do the next qualitative survey.
4.2 DATA COLLECTION
The data in this thesis is collected from two following resources:
Secondary data: NEW CC documents including:
Primary data: survey on NEW CC's employees. The data of survey is collected through questionnaire.
4.3 QUESTIONNAIRE DESIGN
The questions are designed as multiple choice questions. The five-point Likert Scale has been used for the questions. In order to help participants have their decision well, only one meaning is designed for each question.
4.3.2 Questionnaire structure
The questionnaire includes the two parts. Part one includes some questions about the background of information of the participants. The background of information is designed to distinguish the working place, the gender, the age, the marriage status, the period working for this company and the status of still working for this company or not. Part two includes questions to ask participants to rate the level they agree with factors that influent their motivations. The content of this part has been designed based on theories related to employee motivation. The detail of all theories has been described in the chapter 2.
4.3.3 Data analysis method
SPSS software has been used as a tool to support analyzing the data. The final result has been put into graphical charts and tables for easy viewing and analyzing.
The descriptive statistical analysis will be used. The data will be put into charts and tables. We will analyze to have the score/ the mean for each factor. Basing on that result, we will withdraw the conclusions for what factors the company should pay more attention to improve employee motivation. And finally solutions for improving employee motivation will be proposed.
4.4 RESEARCH PROCESS
Conclusion and Recommendation
Figure 1.1: Research process
RESULTS AND SOLUTIONS SUPPOSED
5.1.1 Background information
48 hard copies of this survey were sent out and 45 hard copies were collected. Two copies from these were not used to analyse the result due to the lack of the answers. And 60 soft copies were selected also. So, finally 103 samples were used to analyse the result.
The background information of this survey is as follows:
Chart 4.1: Working place
Chart 4.2: Gender
Chart 4.3: Age
Chart 4.4: Marriage status
Chart 4.5: Working time for this company
Chart 4.6: Still working for this company
There are 103 people participated in my survey. There are 69.90% participants working at office and 30.10% at site (Chart 4.1). About the gender, there are 78.64% participants are male and 21.36% are female (Chart 4.2). Only 14.56% participants are under 25 year old while a the highest ratio of participants with 46.60% are people in 25-30 year old, the rest with 38.83% are people over 30 year old (Chart 4.3). Regarding marriage status, there are 50.49% of participants are married, 49.51% of participants are single (Chart 4.4). For working time, 20.39% of participants have worked for New CC under 1 year, the percentage of participants have worked for New CC from 1 to 3 year and over 3 years are 42.72%, and 36.89% respectively (Chart 4.5). There are 77.67% participants are still working for New CC while 22.33% left New CC already (Chart 4.6).
The five-point Likert Scale has been used for the questions to rate the level staffs agree with factors. Each factor is assigned to the level from 1 (Strongly Disagree) to 5 (Strongly Agree). For each scale of value/ score, the average value/ score will be calculated from these samples. The value of factor influencing on employee motivation will be calculated from the average scale of value/ score in each factor.
This result is examined carefully from heading 4.2.2 to 4.2.5 as follows.
5.1.2 Reward system
The category of reward system factor contains 6 questions related to
Discrimination among good, average and poor performers
Correlation between income and result
Annual salary increasing
Satisfaction with current salary
Below is the Table 4.2 to summarize the survey result on factors in Reward system category.
for this company (year)
for this company
1 - 3
1. Salary is paid sharply differentiate good
performers from average and poor performers
2. Rewards are tied clearly to result
3. Salary is paid as well as competitors
(at the same level)
4. Annual salary increasing is attractive
5. You are satisfied with your current salary
(for ones who have left the company:
salary at the time you left the company)
6. The benefit package (holidays, health care, sport activities,â€¦) is attractive
Table 4.1: Survey result for Reward system factor
From the Table 4.2, only factor of benefit policy is fair (3.63) while the rest is average only (from 2.49 to 3.22). And two lowest scores in this are "Annual salary increasing" (average score: 2.69) and "Satisfaction with current salary" (average score: 2.49) factors. As mentioned at heading 3.4.1, the annual increasing for salary in only 500,000 VND. For the new members, this can be acceptable. But for the above 3-year staffs or for the heads of every department then this is as a funny one - the increasing rate of salary is so low. These should be solved well so that the company can keep its best staffs. The only highlighted point in this part is only the "Benefit policy" (but this is still lower than other part - Culture & Job Design). Again, this could not be satisfied by all. Different from following results, score of each factor of site staffs and office staffs is not the same. This is easily understood then this is a sensitive matter. For period working, almost factor score has the tendency to increase from long period working to short period working. It seems that the longer staffs work for the company, the more needs they need from the company. And all factor scores of ones who are still working for the company are higher than those of ones who left already, but not much different. This should clearly show that the company has some definite improvements already. But it seems that this is not enough cause the total average score of this is rather low in this survey. This result shows that reward system factors are considered important issues to employees and affected to employees' motivation. So, there are many things to be done to improve these factors.
The category of culture factor contains 6 questions related to
Below is the Table 4.3 to summarize the survey result on factors in Culture category.
for this company (year)
for this company
1 - 3
7. The working environment fosters reliance
and friendship among employees
8. Company values collaboration and
9. Company encourages the sharing of best
10. Our culture promotes friendship among
11. Company values honesty
12. Company encourage open debate where
the best ideas win
Table 4.2: Survey result for Culture factor
Culture factor should be the point that New CC is proud of due to it has the highest score (average score : 4.01). As discussion with some members at the quantity step of this survey, it has been found that culture is one of the most wonderful/ memorable point at New CC. And as their information, it is not easy to find a wonderful culture like this at other company. One can not do the project from the beginning till finishing. That is why collaboration, teamwork and others above factors have been encouraged at New CC. As we have fair or high scores for these factors at this category already, so following the author's view, all we need to do is to maintain and develop more these factors.
The category of job design factor contains 6 questions related to
Below is the Table 4.4 to summarize the survey result on factors in Job design category.
for this company (year)
for this company
1 - 3
13. My job is important in this company
14. My job makes me feel that I am doing
15. My job makes me feel that I am
contributing to my company
16. Employees normally do complete tasks
from beginning to end with specific targets
17. Employees can make their own decisions on their tasks
18. Employees have been trained well
Table 4.3: Survey result for Job design factor
Job design is the second one in the score ranking of this survey. "Job importance, Autonomy and Training" are the lowest factors in this Table. Some staffs still be looked as the subordinate or secondary ones. About the "Autonomy" factor, this score should be acceptable due to all staffs should be follow general regulation (some points are strict ones) to fulfill all the tasks well assigned to them. About the "Training" factor, it is quite different with staffs work or not work for New CC any more - the gap here is 0.7. The higher score for ones who are still working at New CC should clearly show that New CC has improved for this point already. The tendency of increasing is for the new members. This for site staffs is also higher than that of office staff due to the site staffs just have some definite course should be trained while office staffs have a variety of training courses. That is why there is rather high gap here: 0.5.
The category of performance management factor contains 7 questions related to
Trust on process
Below is the Table 4.5 to summarize the survey result on factors in Performance management category.
for this company (year)
for this company
Performance Management and
1 - 3
19. Our performance management process is open and transparent
20. My company's performance management system is fair
21. I trust our performance management
22. Information of the company has been
communicated to all employees adequately
in timely manner
23. My company's performance management system helps me to advance quickly
24. Employees' performances have been
improved continuously by receiving coaching and feedbacks regularly on their performance
25. Performance appraisal result is a base
Table 4.4: Survey result for Performance management and resource-allocation process factor
The lowest score of this factor is this study should be an alarming point. This should clearly show that the performance management is not so clear at New CC. And this does not satisfy staffs. So this should be an opportunity for the employees and superiors to discuss and reconsider the formers' ability of work development, or difficulties and advantages that they met during their performance. From this result, almost scores of site staffs are higher than those of office staffs. As above mentioned, each site staff is assigned to one project only, so every thing with them is clearer than that of office staff. For period working,