1

CONTENT

CONTENT .................................................................................................................................... 1

LIST OF TABLES AND FIGURES ............................................................................................. 3

ACKNOWLEDGEMENT ............................................................................................................. 4

INTRODUCTION ......................................................................................................................... 5

CHAPTER 1: COMPANYS OVERVIEW .................................................................................. 6

1.1. Mother company: Petrolimex Gas Corporation JSC ............................................................. 6

1.2. Hai Phong Petrolimex Gas JSC ................................................................................................ 6

1.2.1. Formation: ............................................................................................................ 6

1.2.2. Functions, missions and the role on the market ................................................... 7

1.3. The organizational structure of PGC Hai Phong .................................................................... 9

1.3.1. Main components in companys structure: .......................................................... 9

1.3.2. Administration and human resource office: ....................................................... 10

CHAPTER 2: AN ANALYSIS ON PGC HAI PHONGS EMPLOYEE MOTIVATION MANAGEMENT ........................................................................................................................ 12

2.1. An overview on employee motivation................................................................................... 12

2.2. PGC Hai Phongs main levers of employee motivation: .................................................... 13

2.2.1. Training agenda: ............................................................................................... 13

2.2.2. Employment and support allowances: .............................................................. 14

2.2.3. Work-life balance programs: ............................................................................ 15

2.3. The effectiveness of PGC Hai Phong motivation policies and activities: ........................ 16

2.3.1. Managers point of view: ................................................................................. 16

2.3.2. Employees point of view: ............................................................................... 17

2.4. Distribution of responsibility in motivation management: ................................................. 18

2.4.1. Policy formation and organization: .................................................................. 18

2.4.2. Policy and activity evaluation: ......................................................................... 18

2.4.3. Source of funding: ............................................................................................ 19

2.4.4. Process supervision and communication: ......................................................... 19

2.5. Drawbacks in motivation management in PGC Hai Phong ................................................ 20

2.5.1. Lack of work incentive: .................................................................................... 21

2.5.2. Undefined role of managers: ............................................................................ 21

2.5.3. Low employee participation in decision making and evaluation: .................... 22

CHAPTER 3: RECOMMENDATION FOR IMPROVEMENT ................................................ 23

2

3.1. Workplace culture creation: .................................................................................................... 23

3.1.1. Team collaboration: .......................................................................................... 23

3.1.2. Practice of sharing: ........................................................................................... 24

3.2. Transparent performance-based system of rewards: ........................................................... 24

3.2.1. Assessment of performance: ............................................................................ 25

3.2.2. Linkage of rewards and performance: .............................................................. 25

3.3. Other recommendation: ........................................................................................................... 26

3.3.1. Involvement of different divisions in management: ......................................... 26

3.3.2. Reference to external sources: .......................................................................... 26

CONCLUSION ........................................................................................................................... 27

REFERENCE .............................................................................................................................. 28

APPENDIX ................................................................................................................................. 28

3

LIST OF TABLES AND FIGURES

4

ACKNOWLEDGEMENT

Thanks to the facilitation of the Faculty of Business English, I had the chance to apply my

knowledge during my internship at Hai Phong Petrolimex Gas Company.

During the time of internship, I had encountered many problems. Fortunately, I received a

lot of valuable advice and instruction. This report, therefore, would not have been finished

without the help I was offered.

First and foremost, I would like to express my gratitude towards Ms. Nguyen Thi Diem

Ha. As my instructor, she has been kind to help me identify main issues in the report. Her

advice has been of great value to me and to this final report.

I would like to thank Ms. Cao Thi To, member of the Administration and Human Resources

office in PGC Hai Phong, for her support during my internship experience. She has been

generous in sharing her expertise, evaluating my observation and offering professional

advice.

And of course, to all employees of PGC Hai Phong, I thank you for receiving me and

assisting me in my work. The lessons I have learned at PGC Hai Phong will definitely help

me in my future area.

5

INTRODUCTION

Old school styles of management tend to focus on the accomplishment of tasks, meaning

managers must make sure that their employees work to fulfill all tasks. A successful

company is, therefore, often considered one that generates wealth for its owner and for the

community it belongs to. This is true, but not necessarily all. There are other aspects that

are no less important to a success of a company, one of which is employees sentimental

attachment towards their own workplace.

New styles of management have realized that for an organization to operate successfully

and harmoniously, it is essential that it has motivation policies and activities to boost

employee morale and improve their performance. Although the concept of employee

motivation is rather new for many companies, especially Vietnamese ones, organizations

that successfully adopt those policies and activities are more likely to attract talents.

During my internship, I have a chance to observe how methods of employee motivation

are applied in my company. In the case of PGC Hai Phong, this task is mainly assigned to

the office of administration and human resource, meaning the office will play an important

role in keeping employees at their highest level of morale.

This report will point out some main policies that have been implemented, activities that

have been held in PGC Hai Phong. It will also restate managers and employees

assessment concerning their satisfaction with the policies and activities. The report then

points out some drawbacks that need attention from the company. Finally, the report will

attempt to suggest some methods that can be applied to improve the effect of PGC Hai

Phongs motivation policies (if necessary), or draw the lessons that can be learned from

them.

6

CHAPTER 1: COMPANYS OVERVIEW

1.1. Mother company: Petrolimex Gas Corporation JSC

Petrolimex Gas Corporation JSC, formerly known under the name Petrolimex Gas Joint

Stock Company, was founded in 1992. It officially became a corporation in February 2013,

and is currently operating under the supervision of Vietnam National Petroleum Group. Its

headquarters is now in Dong Da district, Hanoi city.

Since its first days of operation, the company has been focusing on improving the quality

of products and services provided to its customers. The fields of operation include:

- Liquefied petroleum gas import-export,

- Household, commercial and industrial gas sales,

- Gas line installation and maintenance,

- Transportation service

- Real-estate business.

Under its supervision are the five branches, all of which specialize in gas and petroleum

business, providing products and services for people all around Vietnam. The branches are

in Hanoi, Hai Phong, Da Nang, Can Tho and Ho Chi Minh City. Altogether, they make up

around 11% of gas market share of Vietnam.

Petrolimex gas has been awarded as the most trustable gas brand in Vietnam, and is one of

the three gas companies with the highest productivity and market share.

1.2. Hai Phong Petrolimex Gas JSC

1.2.1. Formation:

Hai Phong Petrolimex Gas Joint Stock Company (PGC Hai Phong for short) was initially

founded in 1994 as founded in 2005 as the Sales department of Zone III Gas Company,

serving, a branch of Vietnam National Petroleum Group. It serves as an outlet of its mother

company in distributing products and services in the Eastern North area. In 1997, it was

renamed into Hai Phong Zone III Gas and Petroleum Factory.

7

With the increasing demand for liquefied gas for both household and industrial purposes,

Hai Phong Zone III Gas and Petroleum Factory became more and more involved in the

Northern market, claiming its position as a competitive gas provider. However, due to the

business structure, the factorys operation depends heavily on the policies from its mother

company, making it unable to make timely decisions. Realizing this disadvantage, in 1999,

the factory was renamed into Hai Phong Gas brand, operating half-dependently on its

mother company. In 2003, the control of the company was transferred to Petrolimex Gas

Joint Stock Company, and it became Hai Phong Petrolimex Gas Branch.

Finally, in 2005, in accordance with decision No. 0018/Gas-QD-HDQT, Hai Phong

Petrolimex Gas Company was officially founded, taking charge of the whole market from

Hai Phong to Ha Tinh. In order to do this, it has been granted control of five smaller

subsidiaries in Nghe An, Nam Dinh, Ha Nam, Hai Duong and Quang Ninh. These

subsidiaries operate half-independently, with the same products and services as PGC Hai

Phong.

The companys headquarters is now at No. 20A, Le Hong Phong Street, Hai Phong City.

1.2.2. Functions, missions and the role on the market

a. Functions and missions:

Like its mother company, PGC Hai Phong operates in the field of gas and petroleum. Its

main functions are:

- To moderate sales and services in assigned markets, representing the Corporation

and its name in these markets;

- To generate revenue and interest through sales and service activities;

- And to manage and administer corporations equipment, resource and their use in a

safe, organized and efficient way.

Based on its functions, PGC Hai Phong has been assigned with these following missions:

- Moderate gas import, export, storage and sales process in the area from Hai Phong

to Ha Tinh; maintain control on the need and demand for gas in the market;

8

- Build business strategies and set business goals for each phase;

- Ensure safe use of gas for households and industries, contributing to the

development of the society;

- And create employment, offer a labor force of high quality and work moral.

b. Main products and the role on the market:

Since 2013, PGC Hai Phong has categorized its products and services into 3 main lines:

- Liquefied gas: gas tanks (12kg and 48kg), gas lines (both commercial and

industrial.)

- Accessories: tank valves, vaporizers, regulators.

- Services: installation service, maintenance service, pre-installation advice, gas

refill.

With the business motto Bringing customers trust and satisfaction with high-quality

products and services, the company has committed to:

- Provide products and services of safety and quality;

- Constantly improve the quality assessment system, making the company a

competitive individual;

- And constantly improve the capability of the labor force of the company.

PGC Hai Phong generates around 30% of revenue each year for its mother company, with

16% of market share from Quang Ninh to Ha Tinh. Through the network of wholesale and

retail stores and branches, the company distribute its products and services to both

households and industries, creating the image of an active, creative and enthusiastic

partner. It has established partnership with many brand names, including Hai Duong

Ceramic, Hanoi Ceramic, Hai Phong Glass and Glassware, who monthly use of gas may

amount up to 500 700 tons.

Concerning Hai Phong, in recent years, Petrolimex gas has encountered some competition

from new gas brands, the most significant of which are Shell Gas, Total Gas and Thang

Long Gas. Still, it remains as the most popular brand here, with 27% of total revenue

locally.

9

1.3. The organizational structure of PGC Hai Phong

1.3.1. Main components in companys structure:

The structure at PGC Hai Phong is a functional structure, with each office and department

in charge of a specific aspect in the company.

At the head of the company is the board of directors, with one Director and one Vice-

director. They are the representative of the whole structure, responsible for every activity

and performance of PGC Hai Phong

One step below the ladder is five departments and offices, with each in charge of a

companys aspect. They can be classified into two sections: the service section and the

administrative section. The service section include three departments which offer sales and

technical services for customers. The Industrial gas department and Household and

commercial gas department moderate the sales activities and record sales performance in

all market. The Technical-Sales service department, on the other hand, is in charge of

providing technical service and support for customers.

The administrative section takes care of internal operation. Administration and human

resource office and Accountancy office belong to this section. They operate with other

departments to ensure the smooth operation and communication inside the company.

In order to provide services to consumers, the company also sets up stores and

representative offices around the city, while the branch offices (five subsidiaries in other

provinces) take care of the demand in other regions. Figure 1.1 below describe the structure

of the company.

10

Figure 1.1: PGC Hai Phong's organizational structure

As can be seen from the figure, the board of directors and the five departments and offices

make up PGC Hai Phongs headquarter, while other components operate independently

under the supervision and moderation of the headquarter. As a result, in this report, the

term company will be narrowed down to headquarter, instead of the whole structure.

1.3.2. Administration and human resource office:

Administration and human resource office is one of the five main departments at the PGC

Hai Phongs headquarter. The office currently has one manager, one vice-manager and six

more employees. As the name suggests, the office is responsible for some main aspects

concerning employees and their job.

The first aspect is Administration and task allocation. In other word, the office is in charge

of employee management and recruitment, seeking the source of personnel for the whole

structure. It also has the responsibility to issue company policies, establish employee

profile and archive all company documents.

The aspect of process standardization (or ISO) is rather new to the office, as well as the

whole company. Simply put, the office receives the instructions from its mother company,

and pass them down to all employees, or those they may concern. This aspect used to be a

11

part of administration and task allocation. However, since the former aspect itself includes

a heavy workload, while the volume of instructions received is no less huge, the two aspects

have been separated for easier control.

The final aspect, and also the most important, is Human development. This includes setting

up training agenda, keeping track of employee performance and moderate the relationship

at and outside work. To accomplish this mission, the office must co-ordinate with other

departments and offices on a regular basis. For example, to pass a policies or a decision

concerning financial rewards, it will need to work with the Accountancy office to come up

with a suitable reward level. Another example involves training agenda. To determine the

skills and knowledge that need training, the office must work with the service section to

decide the content of the training process. From these example, it can be said that the

Administration and human resource office has the highest level of interaction with other

parts of the company.

12

CHAPTER 2: AN ANALYSIS ON PGC HAI PHONGS

EMPLOYEE MOTIVATION MANAGEMENT

2.1. An overview on employee motivation

Any employee, upon entering a professional field, would seek to fulfill his or her needs.

These needs may be basic, such as making ends meet, or much more advanced, like

proving ones skills and professions. According to Abraham Maslow, a humans needs can

be classified into five levels, with the more basic ones at the bottom. Those who have one

need fulfilled will attempt to ask for higher levels. Figure 2 describes the Humans

hierarchy of need based on Maslows theory.

Figure 2.1: Maslow's Hierarchy of needs

At the bottom of the hierarchy are the two most basic need - physiological need and safety.

These needs, however easy to be satisfied, are fundamental to all since they allow the

human body and mind to function properly. The higher levels of needs include Belonging

and Esteem, often sought in interpersonal relationships. At the top of the hierarchy is the

Self-actualization need, meaning one tries to develop his or herself to the full potential.

13

At workplace, people tend to look for the fulfillment of the highest levels of need. As a

result, more attention has been paid towards employee motivation and satisfaction.

Companies and organizations realize that their productivity and their success greatly

depend on their peoples willingness to work and to contribute. They have policies,

activities and programs that serve as encouragement, boosting employees morale and thus

work efficiency. This trend is considered a new style of management that has been applied

on an increasingly large scale.

2.2. PGC Hai Phongs main levers of employee motivation:

In order to keep employees motivated, PGC Hai Phong has issued and implemented many

policies, with the Administration and human resource office playing a crucial part in

evaluating their effect. Along with these policies, the company offers activities attempting

to involve employees in the bonding process. Those policies and activities can be

categorized into three types: Training agenda, Reward system (in this report referred to as

employment and support allowances), and Work-life balance programs.

2.2.1. Training agenda:

Training is an essential factor that may decide how well an employee perform. Professional

training is often the first step a company would take to make sure their employees know

what to do. However, the need for improvement is limitless, since a job may develop

beyond what employees have learnt and mastered. As a result, training sessions offered at

the right time may greatly boost their spirit and improve their performance, since these

sessions may provide extra knowledge and skills, opening the way up the career ladder.

In the case of PGC Hai Phong, training is also a regular activity held in the company. Two

forms of training are offered to employees: on-spot training and external training. On-spot

training is mainly held between companys staff to help them get used to the basic aspects

of their job, or to inform all employees of new changes in the work procedure. The trainers

of this form of training are managers or senior employees who have got the experience in

the field being trained. Because of its simplicity, these training sessions require little or no

time for preparation.

14

On the other hand, external training focuses on more advanced skills that help to increase

productivity, thus requiring careful planning and evaluation. Sessions of this form often

welcome employees of the same department, or employees from departments where the

work is closely related. Each session is limited to 20 40 employees, lasting for one or two

days depending on the content of the session. The trainers for these sessions are normally

experts or specialists whose expertise may be of use to the company. For example, the most

recent session on Sales communication was held on the 20th and 21st of July, with the

participation of 33 employees from the sales departments (Household and Commercial gas,

Industrial gas), along with sales clerks of outlets and stores in the city. Its trainer was the

head of the Sales department from PGC Hanoi. The training session proved to be useful,

and received many positive feedbacks from the staff.

Besides these training sessions, senior employees can also participate in courses and

academic programs if they are required for promotion. The cost will be covered or partly

covered by the company.

2.2.2. Employment and support allowances:

Many companies offers huge amount of money as material rewards for employees with

excellent performance. It is often this extra money that highly motivate workers because it

is a sign of recognition from their superiors.

In PGC Hai Phong, however, the material reward system is often referred to as a form of

employment allowance. This is due to the nature of these rewards. They are more of

occasional bonuses than recognition of performance. The occasions for these rewards may

vary from personal, like birthday and professional achievement, to more general occasions

such as national and international holidays. This occasion-based system of

rewards/allowance is applied in most Vietnamese companies. Supporters of this system

believe it promotes the equality between employees, as no one is separated from others,

and the wealth of the company is the result of all individuals inside it.

15

Besides employment allowance, PGC Hai Phong also provides support allowance for

employees whose family have gone through important incidents and events, such as

marriage, birth, illness or funeral. Employees travelling home in other provinces will have

their travel fare covered once a year. Their family will also have the chance to join the staff

in development programs and events at the company, and family members (mainly

children) with outstanding achievement will also receive rewards as a form of indirect

encouragement for employees. The table below lists out the occasions allowances are

given, as well as the level of allocated fund for each occasion.

Table 2.1: Allocation of fund for allowance policies

No. Event Funding (in VND)

1 Solar new year 500.000

2 Lunar new year bonus (Tet holiday) 1.000.000

3 Reunification day and Labor day 500.000

4 Independence day 500.000

5 Women day 200.000

6 Martyrs day 200.000

7 Vietnam Peoples Army day 200.000

8 Marriage gift 500.000

9 Birthday gift 500.000

10 Childrens day 100.000

11 Lunar new year gift 100.000

12 Gifts for children with excellent academic

performance 200.000 2.000.000

13 Sickness support 200.000 5.00.000

14 Maternity allowance 300.000 500.000

15 Funeral offerings 1.000.000 2.000.000

2.2.3. Work-life balance programs:

Work-life, or work-life balance programs, as the name suggests, seek to maintain a balance

between professional work and personal life of all employees. In PGC Hai Phong, these

16

programs are considered an integral part in the companys life. Managers, through these

programs and activities, seek to involve all employees (or as many as possible) in the

company relationship network. It helps to strengthen the bond and understanding between

employees, making them comfortable working with each other.

These programs may have many different forms. Birthdays, for example, are held in the

second Monday of the month for all employees born in that month. The company will have

a small celebration in the morning before starting work, and then after office time, have a

dinner party. Other small-scale programs include new employees welcome, promotion

celebration and Company performance summation.

Holidays and short trips are often held during holiday times and at weekend for all staff.

The trips, at the same time, can serve as a training session. The Communication training

session on July 10th, for instance, was held on the second day of a trip to Do Son beach.

During these trips, employees have a chance to get to know each other, while managers

may understand more about their subordinates personality and hobbies.

Other in-office programs are also worthy noticing. During the World Cup season, the

company has an activity called World Cup premonition where all employees make a bet

on the result of a match. The winning participants will receive a reward in form of salary

bonus, while the losing ones lose nothing. The interesting part is that the company

encourages employees to get together to watch the matches at weekend. When asked about

the motive of this program, its creator said it was to make sure none of the employees

participated in illegal gambling activities.

2.3. The effectiveness of PGC Hai Phong motivation policies and activities:

2.3.1. Managers point of view:

According to Ms. Chinh, head of Administration and human resource office, the motivation

policies of PGC Hai Phong have met the needs of employees. She also states that compared

to other companies and organizations, the amount of rewards and support an employee may

receive here is much higher. Other managers share the same point of view with Ms. Chinh.

17

They especially feel content towards the training agenda, since these sessions and courses

do not only offer universally needed skills, but also specialized knowledge that employers

often seek in their subordinates.

However, they feel that a small portion of employees still feel hesitant to participate in the

programs offered to them. They also share that the number of activities outside office that

involve all employees is still low. They expect to have more activities of such kind in the

future.

2.3.2. Employees point of view:

Interviews with random employees have revealed that the evaluation of PGC Hai Phongs

managers is pretty reliable (See Appendices). Although the interviewees do think there can

be room for improvement, overall, they feel content with what the company has offered

them so far.

Concerning the training agenda and work-life programs, all interviewed employees think

the programs and training sessions are of great use. They also admire the organizers ability

to merge the lessons with recreational activities, making them enjoyable and beneficial at

the same time. However, they feel that more training should be provided, especially for

newcomers to minimize the personal, as well as professional distance between them and

other senior employees.

About the rewards, most of the interviewers actually think these policies are a legitimate

right at work, since they are the ones who generate the companys wealth and maintain the

fund used for the rewards. Still, they admit that the level of rewards they receive is

relatively high, compared to their friends in other institutions and organizations.

Talking about their performance, employees admit they do not feel substantial changes in

their productivity or work quality. Although the morale and work spirit is high, they feel

that they have few incentives to work harder, as the performance is treated as results of

team effort.

18

2.4. Distribution of responsibility in motivation management:

There are many tasks in the process of employee motivation. Although the office of

Administration and Human Resource office is often considered the key factor, it cannot

manage everything on its own. In other words, keeping employees motivated is a shared

responsibility among the entire company.

2.4.1. Policy formation and organization:

Before an official policy is passed or an activity can be organized, the general idea must be

evaluated and approved.

The company encourages all employees to submit new ideas to a representative of the

Administration and Human Office. The office representative, after working out the details

of the idea with it creator, will write a proposal to the board of directors, listing the aims

of the idea, and how it should be implemented. If the board of directors approve the

proposal, the idea may then be brought into practice. The organization of activities is the

main responsibility of the Administration and Human resource office, with the assist from

other departments and offices.

The democratic conduct mentioned above, however, can only be applied to general

activities such as work-life programs. For the other two levers, the responsibility will be

shared between specific individuals who have a grasp of the companys state of

performance. The training agenda is set up by a member of the Administration and Human

Resource office, while the system of employment and support allowances will be decided

by the head of the office along with a representative from the Accounting office. These

agenda and system will also be approved by the board of directors.

2.4.2. Policy and activity evaluation:

After the policy has been sent to every office and departments in the company, the

managers there will have the responsibility to make sure all their subordinates understand

it and follow the instruction. The managers will report to the Administration and human

19

resource office representative, who is also in charge of the policy (or the activity), any

problem arising in the implementation process.

At the end of a month or a period, the entire department and office will have a meeting,

summarizing all activities during the time. This is also the occasion for policy evaluation,

where employees have a chance to speak up about the policies, the activities held in the

company, and how they should be improved. These ideas and comments will be collected

and presented to the board of directors and the representatives of all departments and

offices in a senior meeting. The Administration and human resource office will finally

make a summation of the activities and note down ideas of improvement for other policies.

2.4.3. Source of funding:

There are two main sources of funding for policy implementation and activity organization,

the companys fund and the Labor Union fund. The former comes from revenue and

interest of business activities, and is controlled by the Accounting office. The Labor Union

fund, on the other hand, is controlled by Head of the Administration and Human Resource

office. To maintain the fund, employees will have to extract a small portion of their

monthly salary.

Depending on the type of activities and policies, one or both types of fund will be used.

Training sessions rely 100% on the companys fund, while support allowances are

extracted from the Labor Union fund. Other policies and activities may requires money

from both sources. Holiday trips, birthday celebrations have a 50-50 proportion, while

travelling fare has a portion of 30-70 (30% by the Union fund and 70% by the companys

fund).

2.4.4. Process supervision and communication:

For each policy and activity, the Administration and human resource will assign one

representative to observe the whole process of implementation. This representative acts as

a bridge between his/her office and other employees. He or she will report directly to the

head of the office, and co-report to the board of directors. The board of directors observes

20

the entire process and will only suggest methods of improvement if the representative

inquires them. If not, the improvement methods will be discussed at the end of the

implementation period.

The overall communication process is described in figure 2.2.

Figure 2.2: The communication process in policy implementation

2.5. Drawbacks in motivation management in PGC Hai Phong

The foremost drawback that can be observed in PGC Hai Phong is that the company

consider employee motivation a minor part in the management process. Although keeping

employees motivated is indeed an aspect of a managers job description, to state that it is a

minor one would be an underestimation. Failing to keep workers high-spirited means lack

of incentive, low productivity, even dropping-out. In PGC Hai Phong, the situation has not

reached the critical level. However, it is imperative the company and its staff look at some

drawbacks in their motivation management process.

21

2.5.1. Lack of work incentive:

The system of rewards in PGC Hai Phong, as mentioned above, is in fact a system of

periodic allowances. Because they are given out on fixed occasions with fixed amounts,

employees can foresee coming allowances, thus having no high hope for unexpected

surprises. The fact that they consider these allowances a legitimate right is a further

indication that employees do not see this system a form of encouragement or recognition

of high performance. As a result, it has failed to create incentives for employees to try

harder.

The problem is true to the pay level as well. It is a status-based system, meaning the higher

status one achieves, the higher pay he or she gets. Although this system is reasonable and

is applied widely, when combined with an occasion-based reward system, it takes away

employees motivation. This is the case for most young and inexperienced workers, as well

as some senior workers near retirement age.

2.5.2. Undefined role of managers:

It cannot be denied that managers play an important role in an employees performance.

The style of management, the level of expertise and responsibility managers show may

greatly influence how well employees perform. As a result, managers are often assigned

with missions that require close contacts with employees, which, theoretically, should

include motivating them.

In reality, however, the role of managers in employee motivation at PGC Hai Phong has

not been clearly defined. Due to the distribution of responsibility as above, managers do

not involve much in the decision making process of the companys motivation levers.

While they are supposed to manage the level of motivation employees express, managers

here seem to act only as moderators for activities and programs that have their subordinates

involved. They also serve as the voice of men under their supervision, delivering their ideas

to higher powers. On the outside, one may say this model helps to reduce the responsibility

a manager must held, considering the heavy workload one have to handle. However, it

actually makes it harder for managers, because they have to apply methods of employee

22

motivation that are passed down by people without the best knowledge about their

subordinates.

2.5.3. Low employee participation in decision making and evaluation:

Although PGC Hai Phong encourages employee to submit ideas to their managers, in

reality, most policies and activities originate from the Administration and Human Resource

office, the division in charge of the aspect. Employees also show little interest in policy

and activity evaluation, as they are likely to receive no feedback once they have submitted

comments and recommendations. Submission of ideas through managers and

representatives of the Administration and Human Resource office also causes employees

to be hesitant, as they feel that what they share will be filtered before reaching the board of

directors.

This low rate of participation has caused some troubles for both managers and planners.

First of all, few feedbacks and recommendations means less chance of improvement for

future activities or policies. Constant negligence has also left employees uninterested in

some policies and activities, making them unaware of their true aims, such as in the case

of the allowance system.

To sum up, PGC Hai Phong needs to change its perspective and consider the idea of setting

up a new model of management, which focuses more on employee motivation. In order to

do this, it must first abolish the old way of thinking that motivating employees is a minor

item in the job description of a manager or any other position. Only by carefully observing

the drives to work of employees can the company hope to improve the levers used to keep

them motivated.

23

CHAPTER 3: RECOMMENDATION FOR IMPROVEMENT

An employees motivation can be influenced by many factors. By fulfilling employees

fundamental needs, managers can successfully boost their morale and performance,

creating an effective workplace. For PGC Hai Phong, although the company has been able

to use motivation policies and activities to strengthen internal bond, there is still room for

improvement. Here are some suggestions the company can consider while applying the

methods of employee motivation. These suggestions will help the company to look at

employee motivation in a systematic way, instead of treating it as a minor aspect in the

process of administration. In other words, these may be the answers to the question What

can be done to motivate employees?

3.1. Workplace culture creation:

The most effective way for any organization to maintain strong bond is by creating a culture

that promotes mutual understanding. A culture that is well-built will distinguish a company

from other organizations, making it stand out in the eyes of potential job candidates and

business partners. By having activities that involves employees outside work, such as

birthday celebration or internal trip, PGC Hai Phong has managed to foster the friendship

and reliance among workers, which is the initial step in building a companys culture.

However, that culture must also exist at work, showing in each employees work spirit and

attitude. A company can achieve this with team collaboration and practice of sharing.

3.1.1. Team collaboration:

Due to the fact that the structure of PGC Hai Phong is a functional structure, meaning each

division is specialized in one aspect, the opportunities for employees, especially those from

different departments, are lessened. As a result, misunderstanding may occur when there

is matters that concern two or more divisions. This lack of understanding can be solved by

setting up projects that involve members from different departments and offices. This will

not only encourage employees to learn about others tasks and specialty, but can also help

to form new work habits, since members of the projects may be those who never work

24

together before. It makes employees more flexible and sympathetic towards others, while

helping managers to assess their potential by identifying each members role in the group.

3.1.2. Practice of sharing:

Sharing should be a common practice at any organization. It can bring about great benefits

for employees as individuals, and for the company as a whole. Experience sharing may

serve as a form of training for newcomers. Ideas sharing can promote the use of critical

thinking when evaluating the feasibility of ideas. Thoughts sharing helps to identify

employees difficulties and expectation. Even criticism sharing may bring solutions to a

problems the company is facing. This practice of sharing will give managers and policy

makers a hint on how to run the company effectively.

In the aspect of training, for example, since each department and division has specific tasks

and features that only an insider can understand, it is possible that the Administration and

Human resource office may miss out some important points that affect that department.

Ideas and comments from members of that department should be able to help the planners

identify the aim and the focus of that training session.

Sharing can be practiced in many ways. Meetings, such as performance evaluation or

periodic reviews are the most convenient occasion. When direct sharing as above is not

possible, managers may choose surveys or questionnaires to collect ideas and comments.

Since employees tend to share their troubles among their fellow colleagues, instead of

speaking to their superior, managers can also consider one-on-one talk with an employee

that know well about the situation around the company.

3.2. Transparent performance-based system of rewards:

Transparency is highly valued in the knowledge economy. It is even more important to

maintain the transparency in the implementation of reward policies. An employee will not

simply look at the reason he/she is rewarded. Instead, he or she will want to know why

others are rewarded. What employees often seek in any system of rewards is the level of

fairness, meaning any reward or recognition form should have a reasonable reason

25

behind its existence. PGC Hai Phong has their rewards policies occasion-based, but

another approach can be adopted, which is the performance-based approach, relying on the

management of employee performance. To successfully do this, the company should

consider these steps.

3.2.1. Assessment of performance:

Rating employee performance is one of a key components in the performance

management process (U.S. Office of Personnel Management 2014). Managers should be

able to differentiate a highly efficient employee from a group of good, average and poor

performers. And those that achieve excellent work results deserve recognition. The

assessment of good and poor performances, as a result, will be a solid proof for the fairness

of any reward.

Managers can first establish business plans and goals for the group and for each individual.

By assigning each employee with a specific goal, a sales target for example, managers can

distribute responsibility evenly, allowing employees to demonstrate their attitudes toward

the common goal. During the operation of the task, employees attitudes should also be

observed. The manner in which they approach their tasks may tell if they are responsible

and dedicated to the job. Because attitudes play an important role in the success of any

task, those that fail to show positive behavior should be noted for future review.

Finally, when the process has ended, both managers and employees should join in a session

of overall assessment. Here, they can evaluate if the results of the tasks, such as sales target

or business goals have been met. Along with the behaviors shown, managers can grade

each employees performance and tell good performers from poor ones.

3.2.2. Linkage of rewards and performance:

Rewards policies that tie to performance give employees an incentive to work harder in

order to attain these rewards. Other job benefits, such as holiday, absence, or work

privileges should also be based on how well an employee has performed. With a clear and

transparent performance assessment method, managers should be able to create a

26

competitive work environment, where employees seek to develop and demonstrate

themselves. This will benefit both employees and the organization as a whole.

In conclusion, PGC Hai Phong should consider applying this performance-based method

in order to create a fairer rewards system.

3.3. Other recommendation:

3.3.1. Involvement of different divisions in management:

Direct managers often play the key role in motivating employees. They act as the moderator

of every activity happening around the company, ensuring both work efficiency and

morale. However, the responsibility to keep employees motivated should be shared among

different divisions of a company.

In PGC Hai Phong, there are other parties and divisions that can join the process of

motivation management. Though not officially listed in the company structure, they may

have certain advantages that help them approach and motivate employees in a way direct

managers may fail to do. By sharing the responsibility, each division may focus on its

members, initiating suitable policies and activities that may be favored by employees of

that group. Examples of these divisions and parties are the Youth Union, the Labor Union,

or the Womens Federation.

3.3.2. Reference to external sources:

A great ways for any company to improve their internal state is by learning from external

sources. Even though PGC Hai Phong has done a decent job in keeping its employees

satisfied, there are many other organizations with much more appealing policies that may

attract talents to work for them. Therefore, the company should learn from these

competitors, studying their culture, job compensation, or human development plan.

Many researches on Human motivation and Employee motivation can also be good source

for reference. For example, Maslows theory of human motivation (1943) explains the

levels of need an individual may seek to fulfill. Nitin Nohrias work on the model of

employee motivation (2008) dwelled deeper into explaining the drives that motivate

27

employees to work. By studying these research, PGC Hai Phong and other companies

should be able to identify main issues in creating an effective workplace.

CONCLUSION

Employee motivation may be a new concept in Vietnam, but it has been the focus of many

foreign companies over the years. Targeting on members of their organization, managers

put great effort into building workplace culture, creating a friendly yet competitive

environment that is able to keep employees motivated to work and to mingle. As a result,

the success of a company is no longer solely based on the revenue it generates. A successful

and wanted company, nowadays, must also be one with high community spirit.

Recently, Vietnamworks.com has announced a list of 50 companies that are most wanted

among candidates looking for job in Vietnam. In the list, there were many foreign

companies that base in Vietnam, while others are companies that was founded by

Vietnamese entrepreneurs. Some notable names are Vietjet Air, Citi Bank, VNPT, or RES.

This is an evidence that Vietnamese companies are now rising to the challenge of attracting

talents instead of lagging behind foreign ones. These companies, like PGC Hai Phong, may

encounter problems figuring out what really motivated employees. However, by reducing

the power distance, coming closer to each and every employee, managers and planners

should be able to come up with solutions to their problems.

In conclusion, it is recommended that Vietnamese companies continue to work on their

motivation policies and activities, treating it as an integral part in human development. Not

only will it give them the chance to boost present productivity, but it can also serve as a

future means of attracting recruits. Vietnamese companies should learn from foreign

organizations, identify main difference in business environment and modify their policies

to better suit with local culture.

28

REFERENCE

1. Maslow, AH 1943, A Theory of Human Motivation, Psychological Review,

Brooklyn College, pp. 370-396.

2. Nohrai, N, Groysberg, B, and Lee, LE 2008, Employee motivation: A Powerful new

model, Harvard Business Review, Harvard Business Publishing, New York.

3. U.S Office of Personnel management 2014, Performance Management: Overview and

History, July 2nd 2014, < http://www.opm.gov/policy-data-oversight/performance-

management/overview-history/>.

APPENDIX