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Figure 3.13: The percent for suitability of section responsibility
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
III.22.214.171.124. 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.126.96.36.199. 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
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.
CHAPTER IV: RECOMMENDATION FOR KAV TO IMPROVE
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
- 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
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
- 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
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