Organizational behaviour Assignment Final

Motivation at work Group 1 – BA504 This is Assignment of Organizational Behaviour subject from FPT University.This document is research about motivation at work. FPT UNIVERSITY T r ầ n H u y T r u n g Lê Thúy Quỳnh Đỗ Thị Lệ Thủy N g u y ễ n T h ị N g u y ệ t Á n h Đào Ngọc Liên

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Group 1-BA504-FPT 1-BA504-FPT University Organizational Behaviour Assignment: Motivation

Motivation Motiv ation at work GROUP MEMBERS:

Tr ần Huy Trung Lê Thúy Quỳnh Đỗ Thị Lệ Thủy Nguy ễn T.Nguyệt Ánh Đào Ngọc Liên Contents

I.

Background Background......................... ....................................... ........................... ........................... .......................... ......................... ........................ ........... 2 1. Background & profile of the the chosen organization ...................... .......... ...................... ................... ......... 2

II. Introduction ....................... ............ ..................... ...................... ....................... ..................... ...................... ....................... ..................... ............ .. 3 1) Reasons for the selected selected org ..................... .......... ...................... ...................... ....................... ...................... ................. ....... 3 2) Research questions ...................... ........... ..................... ...................... ....................... ..................... ...................... ...................... .......... 4 III.

Literature review ....................... ............ ..................... ...................... ....................... ..................... ...................... ....................... ............. 4

1) Outline the models ...................... ........... ..................... ...................... ....................... ..................... ...................... ...................... .......... 4 2) Raise the debate on the the selected topic ....................... ............ ..................... ...................... ....................... ............. 7 IV.

Research methods ....................... ............ ..................... ...................... ....................... ..................... ...................... ...................... .......... 8

1) Primary data ....................... ........... ...................... ..................... ....................... ...................... ..................... ....................... .................... ........ 8 2) Secondary data ...................... ........... ...................... ...................... ...................... ...................... ...................... ....................... ................ .... 9 V. Findings & analysis...................... ........... ...................... ...................... ...................... ...................... ...................... ...................... .............12 ..12 VI.

Conclusions and Recommendations Recommendations ...................... ........... ...................... ...................... ...................... ...............15 ....15

VII.

REFERENCES ....................... ........... ...................... ..................... ....................... ...................... ..................... ....................... ...................16 .......16


I.

Background 1. Background & profile of the chosen organization

Petrolimex Group Commercial Joint Stock Bank (PG Bank) was formerly Dong Thap Muoi Rural Joint Stock Bank. Dong Thap Muoi Rural Joint Stock Bank’s operation permit was issued by the State Bank’s Governor’s License No. 0045/NH – GP dated November 13, 1992. Accordingly, the bank’s initial charter capital was 700,000,000 VND (seven hundreds million Vietnam dong) and its operating district was Dong Thap province. After 10 years of operation, PG bank‘s organizational system has constantly been strengthened, achieving a steady growth rate with a low overdue debit and an annual business result that always brings about high profits to its shareholders. The bank’s charter capital has now reaches 5,000 million VND, which is seven times higher than the initial charter capital. In an effort to restructure its operation, in July 2005, 2005, Dong Thap Muoi Bank decided to invite new shareholders to participate, making an increase of the charter capital to 90 billion VND. Among the new shareholders shareholders were financially potential and bankingbusiness experienced Vietnam National Petroleum Corporation (Petrolimex) and Sai Gon Security INC (SSI). With the contribution of big shareholders, the bank has made significant progress. In September 2006, the bank


increased its capital to 200 billion VND. Its total asset as of December December 31 st, 2006 was 1,187 billion VND, the outstanding loan was 801 billion VND, the total revenue in 2006 was 69 billion VND and its profit before tax was 17.49 billion VND. The bank, in cooperation with a foreign consultant, consultant, was able a ble to create a long-term development development strategy. It was also successful in the selection and deployment of the core banking software by IFLEX, one o ne of the most modern banking software presently. presently. In March 2007, PG Bank was authorized to be transformed into an urban joint stock bank by State Bank Decision No. 125/QD-NHNN dated January 12, 2007 and to change its name to Petrolimex Group Commercial Joint Stock Bank (PG Bank) by Decision No. 368/QD- NHNN dated February 8, 2007. Accordin A ccordingly, gly, PG bank was licensed to expand its network nation-wide nation -wide and to perform full banking services services including international payment and foreign fo reign currency trading. In May 2007, it was decided at PG Bank Annual Shareholder Conference to increase the Bank’s capital to 500 billion VND in 2007 with a plan to increase the capital to at least 1,000 billion VND in 2008 and at least 3,000 billion in the period from 2008 to 2010. As of May 31, 2007, PG Bank’s total asset was 1,632 billion VND, its outstanding loan was 900 billion VND and the profit before tax was 17,49 billion VND. On June 26, 2007, PG Bank Hanoi Branch was officially inaugurated. This significant significant event did not only denote the emergence of PG Bank in the active banking market of economically imperative imperative Hanoi, but also represented represented the commencement of PG Bank’s development developm ent strategy of branch and transaction offices expansion nationwide. II.

Introduction

1) Reasons for the selected org

In order to stay competitive and maximize profits, an organization organization needs to take the most from its employees while meeting its obligations to shareholders. shar eholders. Therefore, its top managers must consider building policy that will fulfill the continually changing needs of both parties. At a minimum the organization expects expects employees to perform reliably the tasks assigned assigned to them and an d at the standards set for them, and to follow the rules r ules that have been established to govern the workplace. Management often expects


more: that employees take initiative, supervise themselves, themselves, continue to learn new skills, and be responsive to business needs. At a minimum, employees expect their organization to provide fair pay, safe working conditions, conditions, and fair treatment (Beer, Spector, Lawrence, Mills, & Walton, 1984). As a result, motivation plays an important role in encouraging employees in order to increase job performance and benefits for both company and employees. employees. In this research, PETROLIMEX GROUP COMMERCIAL JOINT STOCK BANK (PG ( PG bank) is the organization or ganization that is utilized as the studied object where survey about motivation was conducted. conducted. PG bank is a new bank which has been be en developing rapidly in recen r ecentt years, from a small bank to a well-known well -known organization. To compete with other banks and keep competent employees, it offers many choices for the workforce. 2) Research questions

A survey is undertaken to study about the motivators using in PG bank, their payment system and the level of satisfactory of employees. Researched Researched questions were undertaken based on two typical theories about motivation: Maslow’s Hierarchy Theory and Herzberg’s Two -Factor (Motivation-Hygiene) (Motivation-Hygiene) Theory. Using Maslow’s Hierarchy Theory, study shows the level of motivators which are most effective in office places (PG bank). Herzberg’s Two-Factor Two -Factor (Motivation-Hygiene) (Motivation-Hygiene) Theory is used to investigate the factors that affect employees’ performance in work places, which encourage employees or discourage them. III.

Literature Literatur e review

1) Outline the models

MASLOW`S HIERARCHY OF NEEDS THEORY Human motivation is very important in understanding human behaviour. Motivation is based on people needs and it plays an important role in bringing the best performance and profit for business. The more develop society, the higher people demand. It’s is easy to realize r ealize this if compared to the needs of employers today than that of previous ones. Manual labor need lower demand than high level worker. In the past, people just earn a lot of money to alive, but now they want to have more money to enjo enjo y the wonderful life. Normally, workers spend spend most of their their time on working, but they they need other demand as well. We can see deeply through Maslow’s theory. 


needs. According to him Maslow’s theory is based on the hierarchy of human needs. human behaviour is related r elated to needs. In this theory, Maslow divided into five types of human need arranged in a hierarchy of their priority and importance.

He concluded that when one type of needs is satisfied, it decreases to other motivating factor. The next type of needs in the hierarchy order takes its place. At the lowest level, there will be first type of needs which can be described as basic needs. This will be followed by other types of needs. Physiological Needs Physiological needs needs required to meet basic needs to be able to maintain human life (food, clothing, water, housing, air, water, sleep ...) According to Maslow's theory, if such needs are not satisfied then one's motivation will arise from the quest to satisfy them. Higher needs such as social needs and esteem are not felt until one has met the needs basic to one's bodily functioning. Safety Safety need is the security in order to be protected from the threat of physical and emotional harm. Such needs might be fulfilled by living in a safe area, medical insurance, job security....


According to Maslow's hierarchy, if a person feels that he or she is in harm's way, higher needs will not receive r eceive much attention. attention. Social Needs Once a person has met the lower lo wer level physiological and safety needs, needs, higher level needs become important, the first of which are social needs. Social needs are those represent the interaction with among people, include need for friends, friends, belonging, giving and receiving love Esteem All humans have a need to be respected and to have self-esteem and self-respect. Also known as the belonging need , esteem presents the normal human desire to be accepted and valued by others. People need to engage themselves to gain recognition and have an activity or activities that give the person a sense of contribution, to feel accepted and self-valued, be it in a profession or hobby Once a person feels a sense of "belonging", the need to feel important arises. arises. Esteem needs may be classified as internal or external. Internal esteem needs are those related to self-esteem such as self respect respect and achievement. External esteem needs are those such as social status and recognition. Some esteem needs are self-respect, self-respect, achievement, reputation... Self-Actualization According to Maslow, only a small percentage percentage of the population reaches the level of self-actualization. self-actualization. Self-actualization Self-actualization is the summit of Maslow's hierarchy of needs. needs. It is the quest of reaching one's full potential as a person. Unlike lower level needs, this need is never fully satisfied; as one grows psychologically there are always new opportunities to continue to grow. Self-actualized Self-actualized people tend to have needs such as truth, justice, meaning... Self-actualized Self-actualized persons have frequent occurrences of peak experiences, which are energized moments moments of profound happiness and harmony. 

Motivation-Hygiene Theory:

We will consider as the two factor of Herzberg, unlike the Maslow’s needs, he explains human motivation a completely completely in different ways.Herzberg ways.Herzberg divided into two factors impact on performance work


The following table presents the top six things causing dissatisfaction and the top six things causing satisfaction, listed listed in the t he order of o f higher to lower importance. Factors Affecting Job Attitudes Leading to Dissatisfaction Company policy Supervision Relationship w/Boss Work conditions Salary Relationship w/Peers

Leading to Satisfaction Achievement Recognition Work itself Responsibility Advancement Growth

He put forward two sets of factors that motivate workers and first set is called "maintenance "maintenance factor" include wages, wages, the th e management, supervision and working wo rking conditions. This group works to maintain good condition. This is regard as basic conditions so they do not make people work better. All workers are keen to receive salaries commensurate commensurate with their strength, the company managed properly and their working conditions are comfortable. comfortable. When these elements are satisfied, sometimes sometimes the workers work ers have interpreted it as the course. But without them, they will become discontented discontented and therefore reduced production. 2) Raise the debate on the selected topic

The study of motivation is concerned, with why people behave in a certain way. The basic underlying question is `why do people do what they do? In general terms, motivation can be described as the direction and persistence of action. It is also concerned with why people choose a particular course of action in preference to others, and why they continue with a chosen action, often over a long period, and in the face of difficulties and problems. From a review of motivation theory, We identifies four common characteristics, which underline the definition of motivation. Motivation is typified as an individual phenomenon: Every person is unique and all the major theories of motivation allow for this uniqueness to be demonstrated in one-way or another. Motivation is described, usually, as international: Motivation is assumed to be under the worker’s control, and behaviors that are influenced by motivation, such as effort expended, are seen as choice of action. 

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Group 1-BA504-FPT 1-BA504-FPT University Organizational Behaviour Assignment: Motivation 

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Needs or Expectation

Motivation is multifaceted: The two factors of greatest importance: a) what gets people activated and b) the force of an individual to engage in desired behavior (direction or choice of behavior). The purpose of motivational theories is to predict behavior: Motivation is not the behavior itself, and it is not performance. Motivation concern action and The internal and external forces, which influence a person’s choice of action. Result in

Feedback

Driving force (behaviour or action)

to achieve

Desired goals

Fulfilment

Which provide

Fig. A simple illustration of the basic motivational model

IV.

Research methods

1)

Primary data

The sample study used tells the variability and reliability of the data of the respondents. The procedure used to gather data is the hypotheses and the statistical techniques techniques used to analyze the data Questionnaire The questionnaire was a self-developed self-developed questionnaire that incorporated the following personal personal information of the respondents, respondents, gender, gender, age,job motivation. Work Satisfaction And Motivation Questionnaire The questionnaire consisted of nine dimensions that impact employee satisfaction and motivation. Some Dimensions Of The Questionnaire Q uestionnaire 1. Work content probed the respondents’ feelings about the type of work they do.


2. Payment probed respondents’ satisfaction with their salaries. 3. Promotion probed probed for the opportunity that the organization organization offers offers for promotion. 4. Recognition probed whether the respondent was receiving the recognition and feedback for the jobs they perform. 5. Working conditions conditions were probed as the the fifth factor and looked at opportunity to mix mix with colleagues colleagues and interpersonal relations. 6. Benefits looked at whether the benefits such as pension, medical schemes and leave were satisfactory. satisfactory. 7. Personal probed the respondents’ feelings towards their job. 8. Leadership or supervision probed the level of satisfaction satisfactio n with the manager. 9. General probed if the respondents’ had considered alternative alternati ve employment, and hence their level of satisfaction with the organization. Procedure and Statistical Methods The questionnaire were were distributed among 20 employees employees of an PG bank Agency 2) Secondary data

The results of Europhia Consulting’s Global Career Motivation Survey This survey forms the first part of the Global Logistics HR Survey Series 2007/2008. The Career Motivation Survey received participation from over 1,000 logistics and supply chain professionals from around the world. Motivation to stay with a company long-term One of the key factors companies companies within the sector should be concerned about is that 70% of the logistics and supply chain professionals worldwide wo rldwide are either uncertain whether they want to stay with their current employer or have already decided to move on to a different company. company. This underlines that employee turnover and retention remains one of the major challenges companies face today.

Group 1-BA504-FPT 1-BA504-FPT University Organizational Behaviour Assignment: Motivation Do you intend to stay with your current employer long-term?

30%

34%

yes no not sure 36%

Dissatisfaction Dissatisfaction with salary is a common excuse cited for staff turnover. However, it is rare that salary alone causes the typical typical employee to leave. So what other key factors have to be present in a work wo rk environment for employees to feel valued and remain with their employers? In addition to Career Opportunities, receiving receiving recognition of one’s achievements from the management and a good relationship with co-workers motivate logistics professionals to stay with their employer. Rank Asia

Europe

Americas

1

Career Opportunities 49%

Career Opportunities 61%

Salary 50%

Career Salary 39% Opportunities 47% Management’s Management 3 Recognition 34% Recognition 34% Training & Relationship with Co4 Development 21% workers 26% Motivation to stay with a company long-term 2

Salary 59% Corporate Culture 39% Management Recognition 35%

Although recognition is a decisive decisive factor in retaining employees, 50% of logistics professionals worldwide report that their achievements achievements are not recognised recognised by their management. management. In addition, clear development plans are lacking across all regions, as shown by the survey results. Thus it is not a surprise that more than two thirds of the employees employees have either already decided to change employer or at least consider to move on.


Of great concern is that across all three regions 42% of employees are dissatisfied with their employer. This further illustrates why there is such a high percentage of logistics professionals who considers switching employers. There are several factors that directly d irectly influence employees’ satisfaction with their company (see graph below). All these aspects aspects have a direct relationship relationship with satisfaction and therefore determine whether an employee is motivated m otivated to stay. For example, the more valued and respected employees feel the more satisfied they are with the employer, which makes it more likely that they will stay on. Feeling valued and respected Supporting working conditions Support from the management

Satisfaction

Motivation to stay

Social activities Supportive Supportive co-workers

Increasingly, Increasingly, soft, more personal factors, such as relationships, support and acknowledgement, acknowledgement, rather than hard factors such as remuneration seem seem to determine employee satisfaction. If employees feel good in their work environment, if they are happy and satisfied, satisfied, they will think twice before leaving and starting all over again in a new and unknown workplace. The good news from a company’s point of view is that it does not cost much money to create such an environment, but it makes a significant difference to employees. Moving up or Moving out When employees are asked what the key reasons would be for fo r them to resign from their job, they identify lack of opportunities, opportunities, dissatisfaction with the job scope and lack of challenges as the main aspects. Thus, the motivation to leave is driven by work- and job-scope related aspects. aspects. Logistics and supply chain professionals will either move up or move out. If they are not challenged enough, if they do not see opportunities to develop themselves themselves and move up within the organisation or if their job scope does not expand over time/with performance,


they will feel the urge to leave. Rank Asia Europe 1

Lack of Career Opportunities 48%

2

Better Offer 25%

3 4

Lack of Career Opportunities 42%

Lack of Challenges 26% Dissatisfaction w/ Job Dissatisfaction w/ Job Scope 26% Scope 26% Dissatisfaction w/ Conflict w/ the Salary 22% Management 20%

Americas Dissatisfaction w/ job scope 39% Dissatisfaction w/ culture 39% Lack of Career Opportunities 35% Conflict w/ the Management 26%

Reasons for changing company/employer This suggests that it is crucial for logistics-related companies companies to have a clear development development plan for fo r all their employees and to offer regular r egular review or evaluation sessions to discuss discuss further development as well as current cur rent work satisfaction. Sitting down with employees to discuss discuss the company, their satisfaction, ideas to make their job better etc, will make them feel valued and recognised recognised and will most probably result in additional commitment and loyalty.

V.

Findings & analysis

Table 1.Respondents’ 1.Respondents’ profiles Items

Results

Sex

Female: Male

12 8

Rate (%) 60 40

Age Range

Less than 20 years Between 20-30 years Between 30-40 years Above 40 years

0 15 5 0

0 75 25 0


From the questionnaire results, the following information can be collected collected on respondents’ profiles and characteristics: Most of staffs are 20-30 years old. (75%) The number of male and female is basically equal. Questions Table 2.Questionnaire – 2.Questionnaire – Part one Rate (%) Are you satisfied with the support support of HR department Highly satisfied Satisfied Neutral Dissatisfied Highly dissatisfied

12 (60%) 5 (25%) 3 (15%) 0 (0%) 0(0%)

Management is really interested in motivating the employees? Strongly agree Agree Neutral Disagree Strongly disagree Which types of incentives motivate you more? Financial incentives Non-financial incentives Both

10 (50%) 3 (15%) 5(25%) 1 (5%) 1(5%) (*) 13(65%) 0(0%) 7 (35%)

How far are you satisfied with incentives provided by the organization? Highly satisfied Satisfied Neutral Dissatisfied Highly dissatisfied

12(60%) 5(30%) 2(10%) 1(5%) 0(0%)


Table 3.Questionnaire – 3.Questionnaire – Part two Strong Agree ly agree

Neutra Disagr l ee

Reasonable periodical increase in salary Job security exist in the company

50%

35%

15%

0%

Strong ly disagr ee 0%

25%

65%

5%

5%

0%

Good relationship with co-workers

45%

50%

5%

0%

0%

Effective performance appraisal system Effective promotional opportu opportunities nities in the organization Good safety measures adopted in the organization. Performance appraisal activities are helpful to get motivated Support from the co-worker is helpful to get motivated Company recognize and acknowledge your work

50%

40%

10%

0%

0%

55%

45%

0%

0%

0%

30%

70%

0%

0%

0%

30%

55%

5%

0%

0%

40%

55%

5%

0%

0%

65%

35%

0%

0%

0%

Look at the table above, we can easily see the arrangement arrangement of those th ose element element from the highest to the lower one: 1. Increasing in salary 2. Getting promotion 3. Being recognized 4. Being encourage by words 5. Being comfortable at work 6. The most important thing with staff in PG bank is salary and getting promotion at work.


Rate (%) Do you think that the incentives and other benefits will influence your performance? Influence Not influence No opinion

18(90%) 1(5%) 1(5%)

Does the management involve you in decision making which are connected to your department? Yes No Sometimes

12(65%) 4(20%) 3(15%)

Almost all staffs think that motivation affects to their performance. Looking at the results and the information of people, it is easy to be seen in this survey that most of employees care about the physiology needs and safety needs (salary, promotion) than other kind of needs. needs. We can have an explanation: 



VI.

Most of employees are the youth so their priority is fulfilling their daily lives activities. Vietnam is a developing country so the standard of living is still low, people usually pay more attention to lower motivators. Conclusions and Recommendations

All information and numbers in the survey s urvey let us understand the needs of staffs in the organization. Basically, we can see that PG bank is very good at motivating their staffs, who are satisfied with the human resource department and policy of treatment in company. We can look at the information on survey and easily see that almost staffs put their needs of good salary as the most important thing in their desire. Base on Maslow hierarchy of needs, all of their needs are physiological. Vietnam Vietnam is a developing country; the living standard is low. Therefore, the needs of staffs focus


on the basic things such as salary and constancy in position. In addition, staffs also want to be recognized their own goals According to the satisfaction of staff with their human resource department, the manager seems to use a lot of way to motivate staffs and reduce the pressure. Because PG bank is new bank so that the turnover rate is high, their staffs refused to answer sensitive questions. questions. All answers focus on salary; that means the manager should care more about rewarding for their staff. More reward will motivate staffs work effectively effectively VII.

REFERENCES

Europhia Consulting,Europhia Consulting Global Career Motivation Survey . Sept, 2007. P.R.Datta, Lecturer, marketing and Strategic Management Motivation at Works

Reena Ali and M.Shakil Ahmed ,The Impact Of Reward And Recognition Programs On Employee’s Motivation And Satisfaction

Organizational behaviour Assignment Final

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