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The research has a root intention, started from manager’s dilemma. In these near years, employee turnover rate is very high (from 20% - near 35% in per head office, branch offices). Expenditure for recruiting new employee is very high. After recruiting, newcomers need probationary process, they maybe pass or fail, even if newcomer fails, the company lost more expenditure for looking for other candidates, for training, etc. By determining factors affect to employee’s loyalty, motivation, employee performance, reducing employee turnover rate, manager hopes the organization operating effectively, especially in human resources ensuring in also quality and quantity manner.
NATIONAL ECONOMICS UNIVERSITY BUSINESS SCHOOL DO NHU VY IMPROVING EMPLOYEE MOTIVATION AT NTT DATA VIETNAM MASTER OF BUSINESS ADMINISTRATION THESIS HANOI - 2018 NATIONAL ECONOMICS UNIVERSITY BUSINESS SCHOOL DO NHU VY IMPROVING EMPLOYEE MOTIVATION AT NTT DATA VIETNAM MASTER OF BUSINESS ADMINISTRATION THESIS SUPERVISOR: ASSOC PROF DR NGUYEN VAN THANG HANOI - 2018 ACKNOWLEDGEMENT Firstly, I would like to thank Assoc Prof Dr Nguyen Van Thang Director of Asia - Pacific Institute of management at Vietnam’s National Economics University He is seasoned, international experienced researcher in business and management, the advisor of this thesis He instructed me how to revise important points briefly, concisely, help enhancing the quality of research I would like to express my gratitude to Assoc Prof Dr Le Lan Huong Director of Business school at Vietnam’s National Economics University She is the manager of my school where I study MBA course, also is my enthusiastic instructor in subject “Business research methodology” She equips me with a theoretical foundation, helped me creating a solid knowledge base in business researching In research proposal reviewing process, I received many constructive comments, valued recommendations, suggestions from research-proposalreviewing sub-committee: Assoc Prof Dr Dao Thi Thanh Lam (also is my instructor in subject “Managing Human Resources”), Assoc Prof Dr Vu Thanh Hung (also my instructor in subject “Business Strategic management”), Assoc Prof Dr Bui Duc Tuan (also Deputy Director of Business school at Vietnam’s National Economics University) I would like to thank many other teachers, officers at Vietnam’s National Economics University who I cannot mention, list out fully I thank to NTT DATA Vietnam Limited company’s officers, employees because they facilitate me about time, suitable workload, help me in work - life - study balance in the thesis research conduction time Of course, I would like to thank my family members: parents, brothers, and sisters who supported me in the time of thesis writing, also in other aspects of my life They facilitate me good conditions support my working, studying, and researching Hanoi, December 2018 Do Nhu Vy TABLE OF CONTENTS ABBREVIATIONS APAC CEO EIT FDI IDE JICA MBA N/A NDVN HR PIF USD SDK Asia - Pacific Chief Executive Officer Enterprise Information Technology Foreign Direct Investment Integrated(/Interactive) Development Environment Japan International Cooperation Agency Master of Business Administration Not answer NTT DATA Vietnam Human resources Public Information Infrastructure United State Dollar Software Development Kit LIST OF TABLES LIST OF FIGURES GLOSSARY Asia - Pacific market region of the NTT DATA corporation, APAC regional headquarter is NTT DATA Asia Pacific Pte Ltd company at Singapore Software Development Kit is typically a set of software development tools that allows the creation of applications for a certain software SDK package, software framework, hardware platform, computer system, video game console, operating system, or similar development platform. (Wikipedia) EXECUTIVE SUMMARY To accomplish organization’s goal, the organization must have human resource, finance resources, facilities, technology, brand name’s reputation, and so on In all type of organization’s resources, human resource is the most important factor A good human resource must have motivated labors Motivation is very important for any organization, especially in enterprise environment, because it allows management to meet the organization’s goals, operating in efficient way Based on good motivation, employees perform their tasks by their best effort, best performance Employee motivation of knowledge workers of high technology fields even became more important In software industry, at the present, Vietnam is in the process of international corporation and integration with many developing also many developed countries in the world, skilled labor demand for software development, information system integration is very high NTT DATA Vietnam (NDVN) is FDI company, the subsidiary of NTT DATA Corporation, and NTT DATA Corporation is the subsidiary of Nippon Telegraph and Telephone - a company ranked 50th in Fortune 2017 Global500 list However, high employee’s turnover rate and low morale at NDVN impact to business operating of NDVN, it is risky for its quality of production and services, also long-term development strategy In few recent years, many NDVN’s employees has left job after short-time working due diverse reasons; A large percentage of employees who left job are experienced specialists Recruiting alternative staffs cannot fill the shortage left by employees who have left work In a long-term development strategy of the company, high turnover rate of employees is risk for business opportunities and maintaining quality of products, services at NDVN Many labor issues need attention from managers at NDVN Based on that premise, research objectives of the study include: + Current employee motivation at NTT DATA Vietnam + Identify factors affect to employee motivation at NTT DATA Vietnam + Suggest solution to improve employee motivation at NTT DATA Vietnam Study of employee motivation plays an important role in attracting and retaining talents for the company This thesis used quantitative research also qualitative research methodology Presence of quantitative research methodology is in-depth interview, then the author detects most influence factors to employee motivation through analyzing interview transcripts Presence of qualitative research methodology is sample choosing, questionnaire designing, analyze survey raw data by statistics methods The author conducts in-depth interviews with ex-employees, current managers and current employees, the results obtained from surveying for 150 current employees working at NDVN (Hanoi, Danang, Hochiminh city branch office) In general, the research’s result points out employee motivation at NDVN did not met board of director’s expecting, which makes employees at NDVN become to dissatisfied, for example: low salary for junior level staffs, new technology is not applied, ineffective training, bias in position appointment, etc Based on the result of study, the researcher has finding that employee motivation at NDVN affected by many factors: Salary and welfare, Leadership behavior, Working condition, Advancement, Autonomy at work, Corporate culture, and Colleagues relationship In order to improve employee motivation, NTT DATA corporation in general and NDVN, in particularly should improve incentive through salary and welfare; concretizing and implementation wage and welfare policy exactly as prescribed Give employee chances applying new technologies in software production for improving factor “Advancement” CHAPTER I INTRODUCTION 1.1 Rationale of the research Motivation function includes activities in human resources manager concerned how to help employees exert themselves at high energy, working with high effort The motivation function is one of the most important yet probably the least understood aspects of the human resources management process Human behavior is always complex Looking for what motivate employees at work is a long-time concern of management, human resources researchers Labor’s motivation plays an important role at any organization because it gains organization’s operating performance To achieve the organization’s goal, the organization must have many resources: capital, technology, good business macro-environment, favorable geographical location, especially, human resources (sometimes it called “human capital” because this factor is too important, equivalent to financial capital) Containing high motivation inside employees, that cause employees work actively, progressive, meticulous, carefully Ensuring organization utilize human resources fully In software industry, information system integration field, Vietnam is in the process of multi-national cooperation and global integration with almost other countries, skilled labor demand in software industry become very high, knowledge workers must work with high motivation for finishing many challenging works Therefore, improving employee motivation has been becoming an urgent demand for many organizations and companies in Vietnam, including NTT DATA Vietnam (NDVN) NTT DATA Vietnam limited company was founded and officially went into operation on 10/2/2008, According to Mr Wantanabe, General director, NDVN’s employees have skills, knowledge enough to development sophisticated, complex information system and/or software for big enterprise also public sector In this study, the atuhor just focus on issues of employee motivation at NTT DATA Vietnam due two reasons The first reason is that issues of employee motivation at NDVN are seriously concerned by management In APPENDIX II QUESTIONAIRE EMPLOYEE MOTIVATION QUESTIONAIRE We conduct a research on employee motivation Firstly, thank you for participating You not need to enter your name and personal information into this questionnaire sheet Let’s fill out the following survey The answer depends on your own point of view The information you provide is kept confidential It does not use for any commercial purpose Please select appropriate answer by marking “x” Your age is …… Gender Male Female Highest qualification College education Bachelor, Engineer (Undergraduate degree) Graduate degree Seniority years at the company is … years How many company trips in a year? time times times Working time is 08:00 - 12:00 and 13:45 - 18:00 from Monday to Friday 08:00 - 12:00 and 13:00 - 17:00 from Monday to Friday 08:00 - 12:00 and 13:00 - 17:00 from Monday to Friday, and 08:00 12:00 Saturday Detail information Please tell us your views on the following aspects Mark x in your selection (each close question has only one answer) Your level of agreement is rated from to 5: = “Strong disagree” = “Disagree” = “Normal” = “Agree” = “Strongly agree” Factor Attribute Working conditions Stability Advanceme nt opportunitie s Corporate culture Level Company supply working facilities (PC, laptop, internet connection, Wi-Fi, dual-screen for programming, licensed software, development tools, SDK, etc.) fully Working room is clean, silence, enough large, non-toxic factors No work over-time I feel comfortable with ancillary services (motor parking, car parking, lunch restaurant, building staff) I don’t worry about losing their jobs The company operates stably and effectively The company often has suitable training courses Learn new technology from applying new technology in new software project I have chance to learn from talent colleagues The company has clear career paths and employee feel satisfaction with evaluation to next ladder on the path I proud of the company brand I recognize that the entire customer partner values the company's brand I appreciate corporate culture The company has a sustainable development strategy I feel the company’s vision and values is suitable The company always product high quality products also services My colleagues are reliable and honest Teamwork operate effectively My colleagues often share, support experience in work also in life My colleagues are comfortable, joyful and sociable Wages paid are worth the effort the employees spend Wages can guarantee the life of staffs and families Reward policies are timely, clear and transparent Salary and Welfare regimes are diverse, complete and welfare correct employee group is entitled I satisfied with the welfare policy of the company Welfare, wages, bonuses paid timely and satisfactory yet? Policy salary, bonus, welfare regime has really care about employees or not? Take risks by creativity and innovation You are asked about number of jobs that fit your capacity Autonomy at Be involved in production planning work Division of labor is reasonable Employees are involved in decisions that affect their work Leaders evaluate employee achievement in terms of equity and recognition Leaders help and support staff to complete the work assigned Leaders provide feedback to help employees Leadership improve job performance behavior Leaders protect the rights of employees Colleagues relationship Leaders believe the ability of employees Leaders are subtle when criticized I interested with current job Motivation I feel good, cheerful and optimistic at work I am willing to working with my best performance I appreciate the incentive policies of the company Thank you for your cooperation! APPENDIX III SUPPLEMENT STEPS IN DATA ANALYSIS Independence variable “Working condition” 1.1 Case Processing Summary Case Processing Summary N % Cases Valid 127 a Excluded Total 130 a Listwise deletion based on all variables in the 97.7 3.1 100.0 procedure 1.2 Reliability statistics Cronbach's Reliability Statistics Cronbach's Alpha Based on Standardized Alpha Items N of Items 833 830 1.3 Item statistics Item Statistics Std Mean 4.20 4.34 4.64 4.24 WO1 WO2 WO3 WO4 Deviation 735 748 698 784 N 127 127 127 127 1.4 Summary Item statistics Summary Item Statistics Maximu m/ Minimu Maximu Mean Item Means Item Varianc es Range Minimu Varianc N of m e Items m m 4.354 4.197 4.638 441 1.105 039 550 487 615 128 1.262 003 InterItem Covaria 303 266 354 088 1.330 001 554 454 678 224 1.495 007 nces InterItem Correlati ons 1.5 Item-Total statistics Scale Cronbach's Mean if Variance if Corrected Squared Alpha if Item Item Item-Total Multiple Item Deleted 13.22 13.08 12.78 13.17 WO1 WO2 WO3 WO4 Item-Total Statistics Scale Deleted Correlation Correlation 3.570 620 391 3.486 640 475 3.364 774 610 3.446 609 403 Deleted 802 794 736 810 1.6 Scale Statistics Mean 17.42 Scale Statistics Variance Std Deviation 5.832 2.415 N of Items Independence variable “Advancement” 2.1 Case Processing Summary Case Processing Summary N % Cases Valid 130 a Excluded Total 130 a Listwise deletion based on all variables in the procedure 2.2 Reliability statistics Reliability Statistics 100.0 100.0 Cronbach's Cronbach's Alpha Based on Standardized Alpha Items N of Items 816 817 2.3 Item statistics Item Statistics Std AD1 AD2 AD3 AD4 Mean 3.15 2.87 2.71 2.94 Deviation 636 719 616 668 N 130 130 130 130 2.4 Inter-item correlation matrix AD1 AD2 AD3 AD4 Inter-Item Correlation Matrix AD1 AD2 AD3 AD4 1.000 601 466 514 601 1.000 526 483 466 526 1.000 578 514 483 578 1.000 2.5 Summary item statistics Summary Item Statistics Minimu Maximu Maximum / Varianc Item Means Inter-Item Correlations Mean 2.915 m 2.708 528 466 m Range 3.146 438 601 135 Minimum 1.162 e 033 1.289 003 N of Items 2.6 Item-total statistics Item-Total Statistics Scale Corrected Scale Mean if AD1 AD2 AD3 AD4 Variance if Item Deleted Item Deleted 8.52 2.748 8.79 2.507 8.95 2.820 8.72 2.682 Item-Total Correlation 641 650 632 629 Squared Cronbach's Multiple Alpha if Item Correlation 432 446 419 419 Deleted 767 764 772 772 4 2.7 Scale statistics Mean 11.66 Scale Statistics Variance Std Deviation 4.505 2.122 N of Items Independence variable “Colleague relationship” 3.1 Case processing summary Case Processing Summary N % Cases Valid 129 99.2 a Excluded Total 130 100.0 a Listwise deletion based on all variables in the procedure 3.2 Reliability statistics Reliability Statistics Cronbach's Alpha Based on Cronbach's Alpha 716 Standardized Items N of Items 717 3.3 Inter-item correlation matrix CR1 CR2 CR3 CR4 Inter-Item Correlation Matrix CR1 CR2 CR3 CR4 1.000 385 352 404 385 1.000 356 427 352 356 1.000 402 404 427 402 1.000 3.4 Summary item statistics Summary Item Statistics Minimu Maximu Maximum / Varianc Item Means Inter-Item Correlations Mean 3.227 m 3.132 388 352 3.5 Item-total statistics m Range 3.411 279 427 075 Minimum 1.089 e 016 1.213 001 N of Items 4 Item-Total Statistics Scale Scale CR1 CR2 CR3 CR4 Cronbach's Mean if Variance if Corrected Squared Alpha if Item Item Item-Total Multiple Item Deleted 9.69 9.78 9.76 9.50 Deleted Correlation Correlation 2.575 492 244 2.676 506 259 2.684 476 229 2.549 541 294 Deleted 662 653 671 632 3.6 Scale statistics Mean 12.91 Scale Statistics Variance Std Deviation 4.257 2.063 N of Items 4 Independence variable “Salary and welfare” 4.1 Case processing summary Case Processing Summary N Cases Valid Excludeda % 129 98.5 1.5 Total 131 100.0 a Listwise deletion based on all variables in the procedure 4.2 Reliability statistics Reliability Statistics Cronbach's Alpha Based on Standardized Cronbach's Alpha 845 Items N of Items 852 4.3 Item statistics Item Statistics Mean Std Deviation 3.24 705 4.29 840 4.62 877 3.12 608 3.09 531 3.17 547 3.09 516 SA1 SA2 SA3 SA4 SA5 SA6 SA7 N 129 129 129 129 129 129 129 4.4 Inter-item correlation matrix Inter-Item Correlation Matrix SA2 SA3 SA4 SA5 292 465 427 363 1.000 764 363 505 764 1.000 465 523 363 465 1.000 453 505 523 453 1.000 420 495 434 542 412 504 417 430 SA1 1.000 292 465 427 363 380 330 SA1 SA2 SA3 SA4 SA5 SA6 SA7 SA6 380 420 495 434 542 1.000 502 SA7 330 412 504 417 430 502 1.000 4.5 Summary item statistics Summary Item Statistics Minimu Maximu Maximum / Varianc Item Means Inter-Item Correlations Mean 3.515 m 3.085 452 292 m Range 4.620 1.535 764 472 Minimum 1.497 e 423 2.619 009 N of Items 4.6 Item-total statistics Scale Mean if Item SA1 SA2 SA3 Item-Total Statistics Scale Corrected Variance if Deleted Item Deleted 21.36 8.968 20.32 7.812 19.98 7.172 Squared Cronbach's Item-Total Multiple Alpha if Item Correlation 495 646 769 Correlation 302 608 682 Deleted 840 819 795 7 SA4 SA5 SA6 SA7 21.49 21.52 21.43 21.52 9.111 9.220 9.216 9.455 565 636 614 578 346 431 422 361 829 822 824 829 4.7 Scale Statistics Scale Statistics Std Mean Variance 24.60 11.553 Deviation N of Items 3.399 Independence variable “Autonomy at work” 5.1 Case processing summary Case Processing Summary N Cases % Valid Excluded a Total 130 99.2 131 100.0 a Listwise deletion based on all variables in the procedure 5.2 Reliability statistics Reliability Statistics Cronbach's Alpha Based on Standardized Cronbach's Alpha 752 Items N of Items 755 5.3 Item statistics Item Statistics Std AU1 AU2 AU3 AU4 Mean 2.56 2.69 3.45 3.15 Deviation 726 595 898 772 N 130 130 130 130 AU5 2.38 761 130 5.4 Inter-item correlation matrix Inter-Item Correlation Matrix AU1 AU2 AU3 AU4 1.000 331 362 370 331 1.000 505 492 362 505 1.000 682 370 492 682 1.000 223 297 291 255 AU1 AU2 AU3 AU4 AU5 AU5 223 297 291 255 1.000 5.5 Summary item statistics Summary Item Statistics Minimu Maximu Maximum / Varianc Item Means Inter-Item Mean 2.848 m 2.385 381 223 Correlations m Range 3.446 1.062 682 Minimum 1.445 e 193 3.056 019 459 5.6 Item-total statistics Scale AU1 AU2 AU3 AU4 AU5 Item-Total Statistics Scale Cronbach's Mean if Variance if Corrected Squared Alpha if Item Item Item-Total Multiple Item Deleted 11.68 11.55 10.79 11.08 11.85 Deleted Correlation Correlation 5.244 427 186 5.289 566 328 4.026 654 516 4.481 646 506 5.397 343 125 Deleted 739 700 652 658 769 5.7 Scale statistics Mean 14.24 Scale Statistics Variance Std Deviation 7.191 2.682 N of Items N of Items 5 Independence variable “Leadership style” 6.1 Case processing summary Case Processing Summary N Cases % 130 Valid Excluded a 99.2 Total 131 100.0 a Listwise deletion based on all variables in the procedure 6.2 Reliability statistics Cronbach's Reliability Statistics Cronbach's Alpha Based on Standardized Alpha Items N of Items 828 829 6.3 Item statistics Item Statistics Mean Std Deviation 3.05 533 3.69 657 3.64 647 3.20 548 3.05 526 3.59 655 LS1 LS2 LS3 LS4 LS5 LS6 N 130 130 130 130 130 130 6.4 Inter-item correlation matrix LS1 LS2 LS3 LS4 LS5 LS6 LS1 1.000 468 349 493 295 241 6.5 Scale statistics Inter-Item Correlation Matrix LS2 LS3 LS4 LS5 468 349 493 295 1.000 612 538 400 612 1.000 446 391 538 446 1.000 478 400 391 478 1.000 517 564 509 370 LS6 241 517 564 509 370 1.000 Mean 20.22 Scale Statistics Variance Std Deviation 6.919 2.630 N of Items Dependence variable “Motivation” 7.1 Case processing summary Case Processing Summary N % Cases Valid 130 99.2 a Excluded Total 131 100.0 a Listwise deletion based on all variables in the procedure 7.2 Reliability statistics Reliability Statistics Cronbach's Alpha Based on Standardized Cronbach's Alpha 850 Items N of Items 859 7.3 Item statistics MO1 MO2 MO3 MO4 Item Statistics Mean Std Deviation 3.15 683 3.27 745 2.86 921 3.15 738 N 130 130 130 130 7.4 Summary item statistics Summary Item Statistics Minimu Maximu Maximum / Varianc Item Means Inter-Item Correlations Mean 3.106 m 2.862 604 495 m Range 3.269 408 680 185 7.5 Item-total statistics Item-Total Statistics Minimum 1.142 e 030 1.373 004 N of Items 4 Scale Mean if Scale Corrected Squared Cronbach's Variance if Item-Total Multiple Alpha if Item Item Deleted Item Deleted MO1 9.28 4.155 MO2 9.15 4.069 MO3 9.56 3.612 MO4 9.28 3.907 7.6 Scale statistics Mean 12.42 Correlation 733 679 629 759 Correlation 560 498 413 581 Scale Statistics Variance Std Deviation 6.665 2.582 Deleted 797 814 850 782 N of Items ... - How is current employee motivation? - What are factors affect to employee motivation at NTT DATA Vietnam? - What are solutions for improving employee motivation at NTT DATA Vietnam? 1.4 Research... objectives of the study include: + Current employee motivation at NTT DATA Vietnam + Identify factors affect to employee motivation at NTT DATA Vietnam + Suggest solution to improve employee motivation. .. Determining current employee motivation - Identify factors affect to employee motivation at NTT DATA Vietnam - Suggest solution to improve employee motivation at NTT DATA Vietnam 1.3 Research