INTERNATIONAL EXECUTIVE
MASTER OF BUSINESS ADMINISTRATION PROGRAM

THESIS

EMPLOYEE MOTIVATION AT DANANG RAILWAY
MATERIAL ONE MEMBER COMPANY LIMITED

S e p t e m b e r, 2 0 1 3

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ACKNOWLEDGEMENT
Firstly, I would like to express my deeply thanks for all lectures, professors
who have supported, created favorable conditions for me learning, studying,
transferring knowledge and sharing experiences during the last time.
I would like to thank Dr. Dang Ngoc Su for his enthusiast and great support to
provide guidelines for me to complete my thesis.
I also would like to give my special thanks for my leaders, colleagues in DRMC
who have created favorable conditions in the data collection to complete my thesis.
Althought, I have tried all my best to complete the thesis, there still have many
shortcomings. Therefore, I would like to received valuable comments given by the
relevant lectures
Danang, Oct 2013

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TABLE OF CONTENTS
ACKNOWLEDGEMENT.......................................................................................ii

1.2.2.1 Build the equitable and appropriate salary system...........................20
1.2.2.2 Build appropriate reward system.....................................................20
1.2.2.3 Build attractive welfare system........................................................21
1.2.2.4 Training and develop human resource to increase adaptability of
workers with the development of the working environment........................21
1.2.2.5 Create good working environment and conditions...........................22
1.2.2.6 More concern about the development and growth...........................23
1.2.2.7 Corporate culture.............................................................................24
1.2.3 Assess the satisfaction level of employees in the enterprise...................24
1.3 Rationale to create motivation for employees in DRMC.........................25
CHAPTER 2:

THE SITUATION OF THE MOTIVATION WORK FOR

EMPLOYEES IN DRMC....................................................................................27
2.1 Overview DRMC.........................................................................................27
2.1.1 Overview................................................................................................27
2.1.2 Scope of operation..................................................................................27
2.1.3 Business strategy....................................................................................29
2.1.4 Organizational structure.........................................................................30
2.2 General characteristics of the human resource of DRMC.......................33
2.2.1 Gender structure in the company............................................................33
2.2.2 Labor structure by age in the company...................................................34
2.2.3 Labor structure by education background..............................................34
2.3 Business performance in the DRMC.........................................................35
2.4 Motivation works for employees in DRMC..............................................37
2.4.1 Findings from motivation survey in the last time...................................37

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LIST OF ABBREVIATION

Abbreviation
VNR
DRMC

In full word
Viet Nam Railway
Danang Railway Material One-member Company Limited

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LIST OF CHARTS
Page
Table 1.1 two factors theory by F.Herzberg.............................................................16
Table 2.1: Employees by gender in the company....................................................33
Table 2.2: Labor structure by age in the company...................................................34
Table 2.3: Revenue by service of the company........................................................36
Table 2.4: business reults of the DRMC in 3 year (2010 -2012)..............................37
Table 2.5: Assess the satisfaction level by gender and age......................................39
Table 2.6: List of individual and department for the best performance in 2012.......47
Table 2.7: Welfare of DRMC...................................................................................49
Table 2.8: Training results in DRMC.......................................................................54

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high quality workforce, effective performance to promote the strengths of the
business to gain competitive advantage in the market.
To survive and develop in the free market economy, the enterprise is always
towards to the production and business with the high quality and efficiency, and to
achieve that goals, the human resource is the core element. Follow to this
determination, enterprises are looking for the best solutions to have effective usage
of their human resources. However, how to arouse the enthusiasm of workers, using
reasonable and effective exploitation of human resources in business is a very
important issue. Therefore, solution to improve the motivation for employees to
dedicate their capabilities for the enterprise is essential.
In recent years, the company has tried to create motivation for their
employees. However, the motivation for employees still have some shortcomings.
On the other hand, motivation is required to adapt to the regular change of the
working environment. So, the author has selected the topic for the thesis
"Employee motivation at Danang Railway Material One member Company
Limited known as DRMC".

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Research question
Do employees in the DRMC currently have their real motivation in performing
their works or not? If yes, what level do they have?
In reality, do the company leaders have their right perception to the content and
important of the motivation and for what level?
What actions and methods are being taken by the company leaders to improve
motivation for employees? Are they suitable with employees?
What are current shortcomings in creating motivation for employees in the
company as well as the causes of these shortcomings? What are the root causes?
What are essential solutions for improving motivation to get higher results in


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4. Research method
4.1 Research method
To follow the research objectives, the qualitative and descriptive analysis will
be used in this research.
4.2 Data analysis and collection
+ Data:
Primary data: It will be collected through interviews and questionnaire survey
Secondary data: It will be collected from books, referent books and internet …
+ Data process: The collected data will be processed by the Excel and computer
5. Contribution of the thesis
The thesis will systemize theories on the work satisfaction, factors influencing
to the employee’s satisfaction; analyze the motivation situation in the DRMC;
analyze factors influencing to the encouragement and satisfaction of employees.
The important results of the thesis is to propose solutions to improve employee’s
satisfaction to improve the work performance for employees.
6. Thesis structure
Beside the introduction, content, conclusion and reference, the thesis structure
will have three chapters
Chapter 1: Motivation theories for employees in the enterprise.
Chapter 2: Analyze the motivation situation for employees in the DRMC
Chapter 3: Main solutions to improve the motivation for employees in the
DRMC

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“ The motivation of the employees is the internal factors stimulate efforts in
the normal working conditions enabling the productivity and efficiency”2
Expression of motivation is the willingness of effort, passion to work to
achieve the goals of the organization as well as their own.
Maier and Lawler (1973) presented the model of work performance is a
function of ability and motivation. While, the working ability depends on innate
ability, knowledge and skills are gained through working experience and training;
resources to do the job. Motivation is the desire and voluntary of each individual.
From these abovementioned studies, it could be understood: "Motivation is the
internal factors stimulate individual efforts to work with the voluntary desire and to
achieve their own goals and objectives of the organization "
Work motivation is the process to create motivation of individual employee in
working. Therefore, create motivation is understood as the application of policies,


Associate Professor Ph.D. Nguyễn Ngọc Quân and Master Nguyễn Văn Điềm ( 2004) HR Curriculum

publishers society Labor pages 134.
2

Ph.D Bùi Anh Tuấn ( 2003) Organizational Behavior Curriculum Publisher Statistics pages 89.

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solutions, and the appropriate management tools influence to employees to make
their motivation in working thus promoting satisfactory with their work, the desire
and effort to work better to contribute to the organization.
Work motivation for employees is the complex process. At the management
perspective, it is the manager's impact generates the motivation of individuals.

To get motivation for employees, it must find ways to create the motivation.
Thus "motivation is the system of policies, procedures and management practices
impact to employees which is aimed at to get employees motivated to work."
In order to create motivation for employees, it needs to understand the working
purpose of employees so that motivation and work dynamics are created for
employees.
1.1.3 Factors influence to the work motivation
Motivation of employees is not natural appearance which is a combination of
resources and belongs to the employees themselves, living and working
environment of employees. Thus, the dynamic behavior of the employees in the
organization is affected by many factors and can be divided into two groups as
follows:
1.1.3.1 Intrinsic factors
The job description
Employees will be interested, motivated to work when they are appointed to
match with their capacity, have the opportunity to use their knowledge and skills in
work, independent in work and receive feedbacks on the results of work, and have
benefits to complete assigned work. However, along with long time of working, the
job becames familiar with the work, repeated tasks will create boring and leads to
reducing the destructive motivation of employees. So, to ensure the work creates
excitement for employees, managers need to pay attention to the analysis and
design of job description that has been specifically designed, challenging,
responsibilities must be clearly defined, appropriate working arrangements with
competence, excellence of employees so that they can maximize capacity.
Technology

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The technology knowledge is significant impact to the motivation of



as delays in decision making if indecisive leader. The laissez-faire style, the leader
increased autonomy for subordinates by allowing subordinates to make decisions
and reduce the cost of intermediate management, however if subordinates have no
capacity and commitment with the organization, they will bring damage to the
organization.
Each leadership style has its advantages and disadvantages so leaders need to
determine the appropriate style to encourage employees to achieve the organization
goals.
Corporate culture
Corporate culture is created from the overall objectives, policy management,
human relations, working environment, working style, the material and symbolic
e.g. songs, uniform, forms, norms ... create identity, values, beliefs, lifestyles and
ways of action and attitude and behavior of employees. Enterprises that have their
own strong corporate culture will help members to close together, mutual
understanding, independent working, friendly cooperation to achieve goals of the
organization
The human resource management policies: including all aspects from
recruitment, human resource arrangement, staffing, job appraisal, training and
development of human resources, compensation, health and safety policies have a
large impact on the work motivation. The timely and appropriate human resource
management policies is not only help managers having an effective way to achieve
the goals of the organization, but also to ensure the rights as well as expectation of
employees that affect to the motivation of employees. If the worker is working in a
safe environment, get high payment that is appropriate with their performance
result, having opportunities for promotion and learning, to be treated fairly, having
opportunities to promote their strengths ... they will have their commitment with the
company, try all their best to contribute to the company.
Organizational structure


The system of social welfare

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The social welfare system have a role to ensure and support a part of life for
employees after retirement or due to occupational accidents, occupational diseases,
maternity. When the social welfare system is growing, the lives of employees will
be increasingly assured. When employees have the full of their social insurance,
they will feel more secure for their life after retirement, from which they will pay
more attention to their work, they will get high work motivation and efficiency.
The cultural values and national traditions
In European countries such as Britain, the U.S., the individualism is enhanced,
the individual will concern to their interests first and then to their relatives. They
regard the importance of self striving, to assert themselves by their capacity, so the
association and teamwork spirit is not high. While in the East, teamwork is highly
appreciated, cooperation desired, connection, support, and protect each other. This
difference affects to the spirit and attitude of employees. Therefore, it should pay
attention to aspects of cultural values and national traditions in developing the
policy of human resources management
1.1.4 Motivation theories
1.1.4.1 Hierachy of needs by Maslow
According to Abraham Maslow, the basic needs of forming the hierarchy of
needs, the innate need of human being is placed in a series of stages from primitive
to advance. 5 ladder of Maslow's needs is important invent as academic foundation
which is capable of very high practical applications that help managers developing
their leadership perspective for improving the management method.

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become more powerful and decisive impact to the behavior of the employees. So, to
motivate employees, it needs to understand the current level of needs of employees,
then, taking measures is aimed at satisfying their needs to make them enthusiastic
and work harder, buoyed in working and more committed to with the tasks
simultaneously to ensure that the objectives of the organization is met.
1.1.4.2 E.R.G theory by R.Alderfert
E.R.G theory that human action is rooted from needs and pursuing to satisfy
three basic need at the same time:
Existence: it includes physical requirement for survival such as foods, water,
clothing, shelter and other basic needs for the body.
Relatedness: is the demand for relationships and interactions between
individuals in life and in work such as relationship with family members, relations
with supervisors, subordinates and colleagues at work.
Growth: is the need for personal development, is to create to maximize ability.
ERG Theory and Maslow's theory are similar to define hierarchy of needs, and
recognize human needs satisfied by from low to high. However, ERG theory has
reduced to three levels and it is more complicated to go to higher level, and a failure
to meet the high needs will create the drop in satisfied lower needs. So, when
individual cannot satisfy for the personal development, he will seek to return to the
lower needs and aims at to earn more money. So ERG model becomes less rigid
than the hierarchy of needs by Maslow, this means that each individual can flexibly
satisfy their needs depending on their abilities.
ERG theory explains why organizations find different ways to know where is
to stop at the hierarchy of needs thereby encouraging their participation in decisionmaking. Actual management has indicated that the involvement of provide

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comments make employees feel that they have recognized and motivated them in
working.

According to the theory, to motivate for employees, reward should be more
given such as praise, promotion, money to encourage the achievement, efforts of
employees that bring interest for the company. On the other hand, it should limit the
use of punishment as a rebuke, cut benefits for worker’s faults that have or may
have ignored, as not to know the error is temporary or not serious enough to require
to use punishment, give them opportunities for overcoming.
To be able to use these Punishments to encourage employees to work, the
enterprise must perform the following tasks:
Identify specific positive behaviors to guide employees in working at the
same time points out negative behavior that employees should not commit.
Build the punishment associated with the behaviors identified above, however
it should be emphasized in the form of reward rather than punishment.
To inform and explain employees to understand the good and bad behavior,
reward and punishment measures respectively.
The need to reward or punish conduct right after behavior taken place as soon
as possible and it must be conducted fairly, openly
1.1.4.5 Expectancy theory by Victor Vroom.
Victor Vroom has researched and formulated the individual motivation as
follow:

Motivation = Expectancy x Instrumentality x Achievement

Expectancy or relationship - achievement: is the ability that an employee
aware that a certain effort will lead to the level of achievement.
Relationship between achievements - reward: the belief that when the job is
done and achieved a certain performance, employee will be received a reward
commensurate
The attractiveness of the reward: the level of importance that employees place
on the outcome or the potential rewards that they can achieve in their work. This
catalyst means that there is appeal of both the target and needs of employees.

External equity is that employees want to be treated fairly as others. Thus they
tend to make comparation of their benefit with their contribution with others
Individual benefit
Individual benefit

Other’s benefits

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The incentive factors, if there are good resolved, will create work satisfaction
and will motivate employees to work harder, work harder, otherwise if it is not done
well, it will make employees dissatisfied with their work. Employees shall work as
required to achieve their work without excitement, depression, no motivation to
strive to improve of their performance.
Therefore, to create job satisfaction in order to provide incentives for
employees, first the manager should pay attention to maintaining factors prevent
dissatisfaction and create comfortable working conditions for employees. Next, to
impact of incentive factors to create motivation for employees to work through the
analysis to enrich the work content, increase challenges, increase liability, empower
for employees, express recognition of achievements of employees through increased
salary, reward, promotion and other remuneration.
1.1.4.8 Goal theory Edwin Locke
This theory states that intentions to work toward goal is the main source of
work motivation. Through his studies Edwin Locke pointed out that the specific
goals and challenges will lead to better job performance .
Thus in order to have motivation of employees, the following steps should be
taken:
Develop specific goals that are challenging and measurable as this will help
employees better understand the expectations of the organization, they will
determine what needs to be done to achieve goals . At the same time, employees
will work hard with the challenging goals.
Next, the manager needs let employees know that the set objectives are
reasonable, and achievable. To accomplish this it can be explained the goals set out
with employees, attracting them participation in goal setting process, assigning

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