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Figure 3.13: The percent for suitability of section responsibility

Figure 3.13: The percent for suitability of section responsibility

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employees. It helps employees to be subjective in management. However, there

is still lack or clearness and concreteness in section responsibility. Employees

may be confused in their scope of job and do not eager to take responsibility.

III.2.3. Conclusion on research result

According to the survey results, the employee motivation in KAV is not

rather good. Some hygience factors are rated by the low satisfied level. They

make employees less motivative during working, results in high turn-over rate,

low commitment to company.

III.2.3.1. The de-motivative factors in KAV

Based on the survey results, the author realized some de-motivative

factors in KAV. These are divided to two main factors: Hygience factors and

Motivation factors

III. Hygience factor

The first de-motivative factor in KAV is salary. The salary is lower than one

in comparison with other companies and employee’s contribution. Salary

increasing policy is not enough effective to encourage employees to stay in

company. Salary ladder with too many levels for each position results in bias in

salary decision and promotion.

Secondly, welfare and other benefit policy are lower than other companies.

It leads to high turn-over in KAV. Employees leave to KAV and look for job in

other companies in the same industrial zone.

Thirdly, the working condition is not good. Although, company arranged

the daily company bus to pick up employees for working, it is still

inconvenient for them especially female staffs to go to work.

Fourthly, an ineffective recruitment may affect negatively select the

suitable employees; achievement of goals; recognition; responsibility; promotion

and growth opportunity…

Fifthly, the performance appraisal is rather bad. The PA procedure is not

standard, only one form for all employees, for all kind of assessments. PA final results

are not informed to employees lead to bias by personal relationship; negative matters

in performance review. Employees do not know obviously their strong/ weak points to

improve their performance. The unclearness in PA affects badly to human resources

decision (promotion, salary increasing, training, task assignment …)

III. Motivation factor

The first de-motivative factor in Motivation factor is Recognition. Due to

some unclearness in PA, recognition has not yet been considered a motivative

factor. There is no reward and achievement policy in KAV. If recognition is


improved, KAV employees can promote their interest in work and be more

enthusiastic to work as well.

Secondly, there is a few growth opportunities in KAV due to a few of

training policies. Employees are not satisfied with current training plan for

further career .path development. Advantage of training programs is to help

employees accumulate practical knowledge, skills including soft-skills; hardskills… to work well and then make them find more joys in jobs.

Thirdly, the work is not really interesting and challenging because of

doing similar job daily. The advantage of assigning specific tasks to employees is

to make employees more professional in job. However, if doing similar job in

long time, they are bored with their job. In fact, all of them like company to

design and assign various jobs. Thus, job enlargement, job enrichment, job

rotation is needed to be done in KAV.

In summary, motivating employees is a way to enhance employee’s

enthusiasms, interest in job. In KAV, some de-motivative factors like

compensation, benefit, working condition, ineffective recruitment,

performance appraisal …affect performance effectiveness and achievement of

goals. Finding proper solutions for this issue helps organization further in

reducing high turn-over rate, building good human resources and having firm

development in future.

III.2.3.2. The motivative factors in KAV

Apart from above de-motivative factors, KAV also have some good

motivative factors.

Firstly, management policy is primarily quite good. Mission of transferring

management authority from Japanese managers to Vietnamese manager is a

priority policy in KAV. This is an incentive for employees to try continuously for

further development in their career.

Secondly, good internal relationships among employees create a good

environment to make employees feel convenient in working, support them much

to overcome difficulties.

In general, working condition in KAV is quite stable. Company policies

are good in theoretical approach. But, in fact, the practice has not yet reached

positive results. The reason is that there are some de-motivation factors exits.

If BOM in KAV can realize strictly their importance to make good

shortcoming, employees will be surely motivated and naturally company will be

successful in its operation.




IV.1. KAV’s orientation for human resources management

- To build human resources with excellent knowledge skills and high

commitment to company.

- To implement persistently modern technical training program to


- To establish working environment for all employees to develop their job

and capacity.

- To make good chance for potential Vietnamese staffs to manage and

control factory operation in Vietnam.

- To build enterprises culture combined Japanese culture and Vietnamese

culture, promote the traditional values of the nation, thereby form the strong

organization for further development.

IV.2. Recommendations for KAV

Based on KAV’s orientation for human resources and de-motivation factors

realized in Chapter III, the author suggest some recommendations for improving

employee motivation in KAV. Firstly, improving performance appraisal system;

secondly, establish clear salary and other benefit system; thirdly, establish an

effective recruitment and clear job’s assignment; fourthly improve the working

condition; fifthly, make more effective reward and recognition policy.

IV.2.1. Improve performance appraisal system

Performance appraisal (PA) is a management tool. It plays an important role

in human resources decision like promotion, salary and reward, training, task

assignment, recognition and achievement. Thus, the accurate PA result is issue

which all organizations are interested in.

PA is a assessment process of employee’s actual performance result in

comparison with previously agreed goals. The current performance status will be

shown through PA. Based on PA results, managers will consider, adjust or apply

methods for final goals.

KAV’s PA system is not good. There is no concrete assessment criteria, no

assessment feedback to employees. Not a few of employees feel disappointed with

performance assessments by their managers. Unequal performance appraisal occurs

by the influence of liking. The managers have much power in assessment. It leads to

bad thing that employees with limited capacity are over-assessed while other skilful

employees are not assessed as much as their capacities. Internal relations become


indirectly worse in a long-term. To have an effective performance appraisal system,

KAV should change its current PA system as follows:

* PA procedure:

PA process includes: assess performance by manager; review performance

assessment by manager, HR manager and General Director; make decision by

General Director.

The new PA procedure is proposed to be as follows:

- Step 1: Identify the assessment criteria

Each manager will discuss directly with employees in same department to

identify the criteria for assessment. In old procedure, no clear and concrete

criteria are mentioned so there are no standard benchmarks to compare to actual

performance results. After discussing, the standards should be understood

obviously by employees and HR to avoid a fact which some departments set

easily achieved criteria, some others set criteria too difficult to reach.

From agreed criteria, PA form is designed to be suitable with characteristics

of task..

- Step 2: Prepare a appraisal report

Employees write a self-review report to rate them and submit to direct

superior. This is not implemented in the old procedure. From employee’s report,

manager will prepare performance assessment by filling designed PA form.

- Step 3: Notice PA results

Upon completing performance rating, many managers dread the performance

appraisal results, particularly if they do not have good news to impart. However, it is

very necessary to make notice PA results to employees. The supervisor should

mention the reasons leading to their rating for performance appraisal. This step

ensures the fair of the supervisor assessment, because when everything is explained

clearly by both employee and supervisor, the bias will be reduced. The supervisor

should give subordinates opportunity to express their comments, even the disagreed

comments on PA results. The managers should be willing to listen all those

comments. If the performance appraisal is under-assessed, the manager should reconsider about performance appraisal initiatively. It is better for both manager and

subordinates to get accurate performance appraisal.

In step 1, assessment criteria are identified by manager and all employees.

However, in practical situation, assessment criteria may be not much suitable and

needed to be changed. So, in a processing of notice PA results, manager can


invite employees to point out their opinions about job design, methods,

environment or supervision… These suggestions are valuable to adjust PA

criteria and useful for human resources management.

In KAV, annual PA or contract signing PA should follow these

procedures. The PA procedures for promotion is needed more detailed with two


- Step 4: Decision for promotion

Based on PA results made by manager of each department, promotion

decision is considered and made by general director and then is informed

officially to employees.

- Step 5: Notice promotion decision

If there is any disagreement on promotion suggestion, reasons should be

explained clearly to employees. This will help employees to understand concretely

why they are or not are promoted, what strong points or weak points are, what they

have to be improved …

* PA period:

In present, KAV have just conducted annual PA (in every April) to all

employees for salary increasing and/ or promotion purpose, probation PA for

employees finishing probation time; contract signing PA for employees starting

labor contract.

Annual PA, which is conducted only one a year, seems to be too long for

both managers and employees to realize the factors resulting in the bad

performance. As mentioned above, PA is not only rating employee’s performance

but also shows employees what they needed to be improved to reach excellent


Therefore, it is better if KAV conduct PA twice a year. Some advantages


(1) Explore the cause of performance problems

(2) Direct attention to the causes of problems

(3) Develop an action plan and empower staff to reach the solution

(4) Direct communication at performance and provide effective feedback.

IV.2.2. Improve salary and other benefit system

The amount of salary, is value of labors ability, is based on performance

results. It consider as hygience factor, but as motivation factor. In the survey,


almost employees are not satisfied with amount of salary in comparison with

internal fairness, with other companies and with their performance. All reduce

employee’s commitment to company. Therefore, improving salary and other

benefit system is a management strategy.

Firstly, establishing clear and concrete salary ladder

Now, KAV implement payment system with 10 salary levels for each

position. Too many levels discourage employee to make efforts for being

promoted. HR and BOM should conduct analysis based on relationships between

amount of basic salary and labor value (knowledge, skills, experience…)

contributing to company. From analysis, KAV should build a salary ladder with 5

levels for each position (One model is applied by almost Japanese production

companies). This salary ladder ensures the clearness of each levels in one

position. New salary ladder should have no overlap between two positions. For

example, amount of salary of level 3 of supervisor is nearly equal to salary of

level 1 of assistant manager.

The difference in salary proves that when employee are placed into higher

level, he must have excellent performance, is responsible in works and make

better contribution to company.

As well as salary, other important part is responsibility allowance. In

theoretical approach, responsibility allowance is followed with assigned position.

Meaning that the higher position is, the higher responsibility also is. Current

salary ladder does not consist of responsibility allowance. It is only regulated by

margin of responsibility allowance. Responsibility allowance for each employee

is decided by HR manager, manager of each department in interview. Thus, it is

easily affected by liking more or less during interview. In order to make good

overcoming, KAV also should have detailed regulations about responsibility

allowance based on responsibility level of each position.

Salary ladder including responsibility allowance should be noticed to

employees officially. It helps employee image salary system, understand which

level they are, and then encourage them to make best effort for future promotion.

Secondly, improving welfare and benefit policy

Welfare and other benefits are other motivation factors make employees

more commitment with the company. They are both financial and non-financial

compensation. There are quite a lot of welfare and benefits in KAV. But, it seems

not to be effective in KAV while other companies also implement the same

benefit policy with better results. Some improving proposals about benefits is


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Figure 3.13: The percent for suitability of section responsibility

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