VẤN DỤNG HAI HỌC THUYẾT PHÂN TÍCH ĐỘNG CƠ LÀM VIỆC CỦA NHÂN VIÊN TẠI VIETTEL GROUP The two basic theories of motivation creating by Maslow and Herzberg and the problem of creating incentives for employees in Vietnam enterprises currently” TABLE OF CONTENT: I BACKGROUND II THE THEORY OF MOTIVATION CREATING BY MASLOW AND HERZBERG The Concept of Motivation and Motivation Creating Analyzing the Nature and the Relationship Between the Two Basic Theories of Maslow and Herzberg III THE APPLICATION OF THE TWO THEORIES TO ANALYSE WORKING MOTIVATION OF EMPLOYEES IN VIETTEL GROUP IV CONCLUSION V REFERENCES I BACKGROUND Currently, both national and international economies are facing many difficulties Then enterprises who want to survive and develop in such increasingly competititive environment need to find ways to improve their productivity and business efficiency In particular, labor productivity depends greatly on the motivation of workers If a enterprise know how to motivate its employees, it would not only improve labor productivity, but also make them be loyal to enterprises and contribute more to its business results However, currently, the research on motivation and motivation creating for workers in Vietnamese enterprises has not got adequate attention II THE THEORY OF MOTIVATION CREATING BY MASLOW AND HERZBERG The Concept of Motivation and Motivation Creating 1.1 Motivation There are now many concepts of motivation such as: - Motivation: The desire and voluntary of strengthening all human efforts to achieve a specific purpose and results of the organization - Motivation: An inner factor which stimulates people’s efforts in the good conditions, and produces superior results (Social and Economic Dictionary of Vietnam) - Motivation: The power to create, orientate, and maintain the ways of behavior So there are many different approaches on motivation, but they all show us the nature of motivation to be what stimulates people to act to achieve certain objectives 1.2 Motivation Creating This is an issue of management in every enterprise If managers want to make their companies strong, they must use methods of stimulating the employees, encouraging them to work enthusiastically, and promoting their abilities and creativity in their work process in order to generate high productivity and business efficiency This is the matter of creating motivation for workers in the enterprise It has said that “The success or failure of the company often depends on how proper the company uses their staffs” Analysis of the Nature and the Relationship of the Two Basic Theories of Maslow and Herzberg The access to theory of motivation creating of leading economic experts, psychologists, or theorists of management in the world is a base for Vietnamese entrepreneur to select and apply methods to encourage their employees in the most reasonable way 2.1 Maslow’s Hierarchy of Needs The American psychologists – Abraham Maslow – said that workers have demands arranging in ladder from low to high: physiological needs, safety needs, social needs, needs of being recognized, and self-improvement needs Accordingly, the low-level needs must be satisfied before the higher level demands appear These needs motivate people to perform certain tasks to be fulfilled So, demands become an important driving force and the impact on individual needs will change human behaviors The followings are the performances corresponding to the level of labors’ demand: Needs Performance Survival Food, house, leisure Safe Workplace safety, guaranteed employment, physical safety Social Being a member of an organization, being allowed to exchange, share, and corporate Being Achievements are recognized recognized by rewards, positions, and promotion opportunities Self- Development of talent, career improvement prospects Leaders or managers can use tools or measures to impact on the needs or expectations of their staffs to make them more ardent and committed to the tasks they perform Thus, in order to have the skills of encouraging and motivating employees, managers should study and understand clearly their employees’ needs and have effective measures to meet them This means they need to meet their staffs’ demand appropriately and purposefully For a new staff who is in need of employment and basic income level, the creation of employment opportunity and income for him/her is the matter to be considered at first For a skillful employee who has years working for the company and a lot of working experiences with high salary, his/her need is to get higher position in the organization The assignment of this staff to a higher position will encourage him/her to work more enthusiastically and effectively, etc Currently, there is a fact in Vietnam that many people not want to work in joint ventures despite of high wages paid They just want to work in Vietnamese offices or enterprises for much lower wages This stems from the view that it is hard for employees to ensure the advancement of social status in joint ventures, which means that joint ventures with foreign businesses cannot meet the demand of promotion for these employees For such cases, salary or income is not a good solution to meet their needs but the position they target is Thus, the business owner should consider specific circumstances to apply this theory to discover each staff’s needs, to form, and to develop the skills of motivating employees appropriately 2.2 Herzberg’s Theory of Two-Factor The American theorists in management, Frederick Herzberg, tried to explain the human motivation in a different way He made two sets of factors motivating workers to work and call the first set “maintenance factor” This group works to maintain a good state, preventing the “disease” However, they not make people work better These factors include wages, the management, supervision, and working conditions All workers expected to receive salaries corresponding to their efforts They also expect the company to be managed properly and their working conditions are comfortable When these factors are met, sometimes the workers see it as evidence But without them, they will become disgruntled and therefore, productivity go down The second set of factors includes those that really bring motivation effect They are successes, challenges, responsibilities, promotions, and development The motivating factors are the ones related to job content and the maintenance factors are the ones related to the scope of work In the absence of motivation factors, the workers will express dissatisfaction, laziness, and lack of interest in working These things cause spiritual instability The theory of two factors Maintenance factors Motivation factors Salary and additional welfare Meaningful job Supervision The feeling of completion Working conditions Opportunities for advancement Management policies Recognition of work completion Herzberg observed that in many companies, managers try to improve maintenance elements and expect their subordinates will be more satisfied at work, but they were disappointed He suggested that managers should improve motivating factors if they desire to receive positive responses from workers Herzberg offers a program of diversifying work like a sample to apply his theory of motivating elements This program consists of making the work more challenging by allowing employees to participate more actively and have more control in their work This will give them a sense of completion and being more satisfied Three terms: enrich, expansion, and job rotation is often used interchangeable despite some small differences among them Job expansion includes horizontal extension of the worker’s tasks by doing other similar assignments Enriching work includes expanding the worker’s duties vertically by assigning them some tasks used to be done by their supervisors This allows him/her to self-schedule his own tasks, take more responsibilities, and develop a sense of advancement and growth In job rotation, workers simply changed his job with other workers Rotation, together with changes, breaks monotony Through rotation, workers have opportunities to learn new skills or understand well a new area of a similar operation Upon request, the workers can back up for his colleagues 2.3 The Similarities and Differences between the Two Theories The two basic theories of motivation creating by Maslow and Herzberg have different concepts and approaches to the way of creating motivation for employees According to Maslow, workers have demands arranging in ladder from low to high (physiological needs, safety needs, social needs, being recognized needs and self-improvement needs) To create incentives for employees, managers must know at which step of the need ladder the workers are so that they can use the proper methods to meet the needs Herzberg, on the other hand, believed that there are two elements: maintaining factors (including wages, management, supervision, and working conditions) and motivating factors (including successes, challenges, responsibilities, and promotion and development) When the maintaining elements are satisfied, sometimes the workers see it as evidence But without them, they will become dissatisfied, leading to decreased production And according to Herzberg, in order to motivate employees, motivating factors need to be improved Despite the different concepts and approaches of creating motivation for employees, needs or elements that Maslow and Herzberg raised are both around the issues of ensuring wages, working conditions, recognition, promotion, development, completion, etc of the employees The only difference is that, according to Maslow, motivation for employees can be created by impacting on all factors and needs, depending on each individual while according to Herzberg, managers should only focus on the factors of achievement, responsibility, challenge, advancement, or in other words, should impact on the demand of high level III APPLYING THE TWO THEORIES TO ANALYSE WORKING MOTIVATION OF EMPLOYEES AT VIETTEL GROUP Viettel is a state-owned enterprise of telecommunications under the Ministry of Defense After over 10 years participating Vietnam telecommunications market, Viettel has grown significantly From a small company with less than 200 employees, Viettel has now become a powerful economic group with 26,000 employees Its turnovers in the year 2011 reached nearly $6 billion which took the third place among state-owned economic groups; and its profit of nearly $1 billion was the second highest among them Viettel is the first Vietnamese enterprise which invested abroad successfully There are many factors leading to that miraculous growth, including its various breakthrough in motivating employees: In terms of payment mechanism, Viettel has asked for the government’s approval to implement performance-based payment to create leverage for attracting and retaining high-quality labor force This is usual to a private enterprise, but never happens in a state-owned one before Besides, Viettel also applies “multi-cone” payment mechanism according which experts in a department can be paid equaling to its head; or in a company, chief engineer, chief architect, leading specialists can be paid by the salary of the company’s director It’s this which helps Viettel create motivation for leading experts to be dedicated to research work In terms of organization, rotation, and appointment staff of all levels, Viettel defined specific criteria for all positions from low to high Tests are held annually to select staff for the positions Any employee who see themselves to be qualified can register to take the test, which is rare for a state-owned enterprise in Vietnam Opportunities for promotion, therefore, are divided equally to all; anyone who tries and makes efforts have opportunities for advancement and development In addition, Viettel has fixed rotation times for employees at all levels One often holds a position at a location for no more than 2-3 years For employees, they are rotated from headquarters to branches and vice versa This has made Viettel employees be dynamic, well-adapting to their job Viettel always encourage the employees’ creative spirit For each idea or initiative applied, its owner will be rewarded by 5% of the benefit that it brings Also, collectives and individuals who exceed the business targets are rewarded in both material and spiritual Quarterly and annually, Viettel held celebrations to honor and reward those who successfully completed their tasks Moreover, Viettel also has preferential policies on housing, transportation, and resort every year for its employees It concentrates on building a corporate culture Viettel is the common house where nobody is the number “0” Each staff will contribute as bricks of the common house Viettel’s people who want to bring happiness to their customers need to be happy in that common house first… So, to create incentives its employees, Viettel Group has taken many solutions to make a breakthrough which essentially, affects employees’ needs in appropriate ways And the solutions have brought tremendous efficiency Viettel has succeeded in attracting high-quality human resources in and outside the country, building teams of managers, technicians, and specialists which meet requirements for developing domestically and investing abroad, rising potentials, abilities, and arising employees’ enthusiasm on their job for the development and sustainable growth of Viettel Group III CONCLUSION Vietnam is in the opening stages of integration into the world The level of competition for businesses in all sectors is increasingly heated To survive and grow, enterprises must enhance their competitive strength and improve their productivity as well as the quality of their products and services Especially, the key is to develop human resources and motivate employees There are many views of motivating employees, but the main idea is that the managers must base on the employees’ legitimate demands to create incentives, link the company’s development with its staff’s promotion, and develop a favorable environment for all employees in the company to increase their abilities and capacities IV REFERENCES: - Organizational Behaviors, Statistics Publishing House, 2008 - Introduction to Management – Richard Pettinge http://www.doanhnhan360.com/Desktop.aspx/Quan-ly-360/Quanly/Cac_ly_thuyet_tao_dong_luc/ - http://atb.edu.vn/chi_tiet_lop_hoc/50/Tao-dong-luc-lam-viec-cho-nhanvien.html - http://viettel.com.vn ... needs, needs of being recognized, and self-improvement needs Accordingly, the low-level needs must be satisfied before the higher level demands appear These needs motivate people to perform certain... safety needs, social needs, being recognized needs and self-improvement needs) To create incentives for employees, managers must know at which step of the need ladder the workers are so that they... motivating employees, managers should study and understand clearly their employees’ needs and have effective measures to meet them This means they need to meet their staffs’ demand appropriately and