THEORY FRAMEWORK ON WORK MOTIVATION,
Concepts on work motivation
Nguyen Van Diem, M.A and Assoc.Prof.Dr Nguyen Ngoc Quan shared that
“Work motivation is defined as the worker’s desire and willingness to improve the efforts to fulfill the organization’s objectives.”
PhD Bui Anh Tuan from the National Economics University unveiled that:
Work motivation refers to the internal factors that drive individuals to engage actively in their tasks, leading to enhanced performance and effectiveness It is characterized by a strong willingness, dedicated effort, and a passion for work, all aimed at achieving both organizational and personal goals.
Personal internal factors are crucial for work motivation, as they drive employees to engage in activities that align with organizational goals While tasks can still be completed without motivation, a lack of motivation can lead to decreased performance and increased disengagement from the organization.
Motivation plays a crucial role in societal development, influenced by specific application regulations When motivation is driven by tangible benefits, it positively impacts work performance and enhances expertise in particular functions.
Concept on work motivation
Work motivation encompasses the strategies and practices employed to inspire employees to perform their tasks effectively, ultimately benefiting both the individual and the organization.
Creating effective work motivation for sales staff at Truong Hai Automobile Joint Stock Company is essential for enhancing productivity and achieving sales targets By implementing strategies that foster a positive work environment, the company can boost employee morale and engagement This includes recognizing achievements, providing incentives, and offering professional development opportunities A motivated sales team is crucial for driving performance and ensuring customer satisfaction, ultimately contributing to the company's overall success in the competitive automotive industry.
Assoc Prof Dr Le Thanh Ha defines work motivation as a set of strategies and behaviors employed by organizations and managers to inspire employees' desire and commitment This motivation encourages employees to exert greater effort and achieve the organization's goals Effective measures may include both financial and non-financial incentives, as well as the overall treatment of employees within the organization.
Work motivation encompasses the strategies and policies implemented by managers to influence employees, fostering higher job satisfaction and encouraging greater contributions to organizations.
Work motivation is not a fixed trait; it fluctuates over time and can vary based on individual circumstances While an employee may exhibit high motivation at one moment, it can diminish in different situations Therefore, it is essential for managers to actively engage and influence their employees to enhance and sustain their work motivation, ultimately driving better performance.
Necessity of motivating employees
Motivating employees is attached with extremely significant role and recognized with high efficiency for the concerned employees, each enterprise and the social benefits
Motivating employees fosters self-improvement and encourages initiative in the workplace When motivated, employees are more inclined to invest effort in learning and enhancing their skills This enthusiasm leads to greater commitment and dedication to their work, resulting in stronger alignment with the company's goals and values Ultimately, a motivated workforce contributes increased value to the organization while also creating opportunities for personal and professional growth.
Motivating improves the organization’s productivity, business performance, cost effectiveness and facilitates the corporate development Moreover, motivating
Creating effective work motivation for sales staff at Truong Hai Automobile Joint Stock Company is essential for fostering employee engagement and loyalty By implementing strategies that enhance motivation, the company can attract and retain top talent, ultimately boosting its competitiveness in the market.
Work motivation is known as a pre-requisite to successfully improve the personal productivity and organizational business performance, facilitating the economy growth, civilized social development and political stability
In short, work motivation for employees is put on the top priority for each manager It is not only a task but also obligation towards their employees.
Work motivation-related theories
Psychologist Abraham Maslow identified a hierarchical structure of employee needs, which includes five key levels: physiological needs, safety needs, love and belongingness, esteem needs, and self-actualization.
Figure 1.1: Maslow’s hierarchy of needs
(Source: Human resources management course books (2012) - Assoc.Prf Le Thanh
Physiological needs are the most fundamental requirements for human survival, encompassing essential aspects such as food, clothing, shelter, and transportation These basic needs form the foundation of human existence and must be met for individuals to thrive.
Creating effective work motivation for sales staff at Truong Hai Automobile Joint Stock Company is essential for enhancing productivity and achieving sales targets Implementing strategies that foster a positive work environment can lead to increased employee engagement and satisfaction By recognizing individual contributions and providing incentives, the company can inspire its sales team to perform at their best Additionally, ongoing training and development opportunities can further motivate staff, ensuring they remain competitive in the automotive market Ultimately, a motivated sales force is key to driving the company's success and growth in the industry.
Next is safety needs which are stable and reliable Persons wish to be protected against uncertainty or self-protection
Love and belongingness are fundamental human needs that emphasize the importance of communication and connection with others These needs involve expressing and accepting feelings, showing care, and sharing love, which are essential for emotional fulfillment and social well-being.
Esteem needs represent a higher level in the hierarchy of human requirements, encompassing the desire for communication and interaction with others, as well as the essential wish for respect and recognition of one’s social status.
The highest hierarchy is self-actualization needs, self-development and self- affirmation needs The persons wish to realize their personal potential They always wish to be more perfect
Maslow's hierarchy of needs illustrates that as lower-level needs are satisfied, higher-level needs become increasingly important Personal fulfillment begins with addressing basic needs, and only once these are met can individuals focus on higher aspirations Although complete satisfaction of all needs is rare, once basic needs are sufficiently fulfilled, they cease to motivate behavior Therefore, managers must understand their employees' positions within this hierarchy to effectively motivate them, tailoring their strategies to meet these needs for optimal results.
Herzberg posited that an individual's personal relationship with their job is crucial, influencing their success based on their attitude towards it He extensively explored the question, "What do you want from your job?" and identified two distinct groups of factors that contribute to job satisfaction and dissatisfaction.
Group 1: Motivational factors include the key factors for job motivation and satisfaction such as: recognition, sense of achievement, job nature, job responsibility and promotion When such factors are absent, the employees shall
Creating work motivation for sales staff at Truong Hai Automobile Joint Stock Company is essential to address issues of dissatisfaction, laziness, and ineffective performance According to Herzberg's theory, these challenges can be linked to "satisfactory factors" that must be addressed to enhance motivation When these factors are effectively satisfied, it leads to increased job satisfaction and improved motivation among employees.
Hygiene factors are essential external elements that influence employee satisfaction and job performance, including management policies, job supervision, salary, interpersonal relationships, working conditions, job security, and stability While high satisfaction with these factors does not inherently motivate employees, their absence can lead to dissatisfaction and demotivation According to Herzberg, these "dissatisfaction factors" highlight the importance of maintaining a supportive work environment to prevent negative outcomes among employees.
(Source: (Nguyen Van Diem, Nguyen Ngoc Quan, 2015)
Understanding the factors that lead to employee dissatisfaction is crucial for managers, as removing these factors alone does not guarantee employee satisfaction To truly motivate and satisfy employees, managers should emphasize hygiene factors such as success, recognition, and appropriate duty assignments While job content contributes to satisfaction, dissatisfaction often stems from the working environment Therefore, effective management requires addressing both the work environment and job responsibilities to drive employee engagement and performance.
Employees are dissatisfied and demotivated
Employees are satisfied and motivated
Ma in ten an ce fact o r En cou ra ge m en t factor
Employees are not dissatisfied and still demotivated
Creating effective work motivation for sales staff at Truong Hai Automobile Joint Stock Company is essential for enhancing performance and achieving sales targets By implementing motivational strategies, the company can foster a more engaged and productive workforce Key factors include recognizing individual achievements, providing competitive incentives, and offering opportunities for professional development A motivated sales team not only drives revenue but also contributes to a positive company culture, ultimately leading to sustained business growth.
1.4.3 Skinner's Reinforcement Theory of Motivation
Skinner assumed that the bonus or punitive tools are used to enhance or restrict the personal behaviors Concretely:
Inherited behaviors tend to be repeated while the non-bonus or punitive behaviors shall be gradually eliminated
The closer the interval between the behavior and bonus and punishment behavior is, the higher the behavior change impact shall be
Punishment restricts the managers’ unexpected behaviors and possibly causes negative enforcement (such as reaction of employees, etc.), hence, it is less effective than the bonus
Managers should apply various methods to award the employees Criticism must be personalized, constructive and integrated with praise or award
To effectively motivate employees, it is essential to enhance their awareness of how their individual contributions lead to desired rewards This can be achieved by combining a system of rewards and consequences while fostering a positive work environment By ensuring that employees feel satisfied with their current roles and supported by both leaders and colleagues, they are more likely to trust in their efforts and the management As a result, this will encourage them to perform at higher levels and engage more enthusiastically in their work.
1.4.4 John Stacey Adams' equity theory
Adams' theory posits that employees evaluate their personal equity by comparing their inputs, or efforts, against the outputs, or rewards, they receive from a task Additionally, they assess their input-output ratio against that of their peers, known as social equity When employees perceive their ratios as equal to those of others, they experience a sense of equity; however, if discrepancies arise, they feel inequity In response to these inequitable conditions, employees are motivated to exert significant effort to restore balance.
The theory suggests that fostering equity within an organization strengthens interpersonal relationships, leading to increased employee motivation and satisfaction, which ultimately enhances loyalty to the organization.
Factors affecting the employees’ work motivation
Employees' feelings towards unexpected job assignments can vary significantly compared to when they receive offers that align with their skills and interests The alignment of a job with an employee's capabilities and passions can greatly enhance their productivity and overall performance When employees are presented with roles that match their strengths, they are more likely to excel, even in routine circumstances Additionally, challenging positions can serve as valuable opportunities for growth Employee satisfaction is also influenced by corporate policies regarding salary, bonuses, allowances, and benefits, which should meet their expectations While some employees prioritize financial compensation, others value job flexibility and travel opportunities Therefore, understanding individual characteristics is essential for creating the most suitable job roles for employees.
Training involves educational activities designed to enable employees to effectively perform their roles and responsibilities This process helps employees master their tasks while enhancing their qualifications and skills, ultimately leading to improved work efficiency and effectiveness.
Promotion in a company signifies the advancement to a significant role, fostering personal growth and elevating the status and influence of employees A well-defined promotion policy supports individual self-actualization and career development, ultimately benefiting both the employee and the organization.
Creating work motivation for sales staff at Truong Hai Automobile Joint Stock Company leads to significant improvements in employee performance Enhanced motivation results in increased capacity, empowering employees and ultimately boosting their remuneration This positive development reflects the company's commitment to fostering a productive work environment.
Training is grouped with promotion because the training ultimately aims to promotion or improvement of employees’ working capacity and performance
Meeting employees' training and development needs enhances their motivation, leading to improved performance and a desire for more challenging tasks and promotion opportunities Consequently, training is essential for achieving an organization’s strategic goals High-quality employees become a competitive advantage for businesses, making it crucial to focus on training and promotion policies to foster personal development.
When employees' basic physical needs are met through their salary, they often seek fulfillment of their social and spiritual needs, particularly through positive interpersonal relationships Working collaboratively within teams, strong job relationships play a crucial role in enhancing employee morale and fostering a supportive atmosphere, which in turn boosts productivity Moreover, the need for effective communication is intertwined with self-respect, necessitating acknowledgment and support from management Employees desire to belong to both formal and informal social groups, as these connections are essential for satisfying their social relationship needs.
Income is the money earned from employment with an enterprise or organization, specifically encompassing basic salary, allowances, and bonuses, whether regular or unexpected It does not include earnings from other types of work unrelated to the primary employer.
Creating effective work motivation for sales staff at Truong Hai Automobile Joint Stock Company is essential for enhancing performance and achieving sales targets This involves implementing a commission structure and other cash-based benefits that are directly linked to the staff's current tasks By fostering an environment that encourages motivation, the company can improve employee engagement and drive sales success.
Labor remuneration poses significant challenges for enterprise managers, who must navigate diverse perspectives and goals when designing payroll systems Typically, enterprises focus on four primary objectives in this process.
Employee acquisition heavily relies on the salary offered by a company, as it is a fundamental factor influencing candidates' employment decisions A higher salary not only attracts potential talent but also enhances the likelihood of successfully acquiring skilled employees.
To effectively retain talent, companies must prioritize internal equity alongside competitive salaries When employees perceive salary disparities within the organization, it can lead to feelings of discomfort, stress, and disengagement, ultimately prompting them to seek opportunities elsewhere.
Effective employee motivation and encouragement are crucial for maintaining productivity When employees perceive that their hard work and achievements are not acknowledged by management, they may become disengaged and inactive in their roles To foster a positive work environment, it is essential for corporate policies to recognize and reward employee efforts, preventing a decline in motivation and performance.
Compliance with legal requirements regarding salaries in enterprises centers on several key aspects: adherence to regulations governing basic salary, working hours and conditions, child labor laws, allowances integrated into salaries, and social welfare regulations, which include provisions for social insurance, illness, disability, and workplace accidents.
How should we do to make salary and bonus become great drive for employees? Some employee motivation measures are recommended as follows:
A fair salary is essential for employees to support themselves and their families at a basic level This fundamental requirement should be prioritized by employers, as it lays the groundwork for a motivated and productive workforce Providing adequate compensation not only meets employees' basic needs but also fosters a positive work environment, encouraging greater engagement and commitment to their roles.
Creating work motivation for sales staff at Truong Hai Automobile Joint Stock Company is essential for enhancing productivity and achieving sales targets Effective motivation strategies can lead to increased employee engagement, improved performance, and higher job satisfaction among the sales team Implementing tailored incentives, recognition programs, and professional development opportunities can foster a positive work environment By prioritizing motivation, Truong Hai can not only boost sales performance but also cultivate a committed and enthusiastic workforce.
RESEARCH METHODOLOGY
Questionnaire survey method
Phỏng vấn thử Tham khảo ý kiến Điều chỉnh bảng hỏi
Figure 2.1: Survey and investigation procedure
Questionnaire design
Questionnaire is designed through steps:
Step 1: Design the questionnaire in accordance with the factors affecting the work motivation, job satisfaction of sale staff
Step 2: Before survey, consult the management, HR department and conduct trial interview with 10 sales staff from Sales Department to verify whether the the questionnaire contents are suitable
Step 3: Correct the questionnaire contents properly before the survey is launched
Conduct trial interview Consult the viewpoint
Creating effective work motivation for sales staff at Truong Hai Automobile Joint Stock Company is essential for enhancing productivity and achieving sales targets Implementing motivational strategies can lead to increased employee satisfaction and engagement, which ultimately drives better performance By fostering a positive work environment and recognizing individual achievements, the company can cultivate a motivated sales team that is committed to success.
Survey and data collection
Prepare the list of sale staff 150 questionnaires were delivered to respondents
Re-collect the responded questionnaires and check whether the questions in the questionnaire are left and the questionnaires are valid
To conduct a comprehensive analysis, gather primary data through questionnaires and interview questions, while also collecting secondary data from the company's financial statements, regulations, by-laws, review reports, treatment policies, welfare regulations, HR reports, and HR change analyses.
Data collection period: From 2015 to 2018 Summarize the results in the questionnaire as analysis and evaluation basis
Interview method
An interview was conducted with both retired and current sales staff of the company to gain deeper insights into areas that were not fully addressed by the questionnaire, serving as a foundation to explain and validate the quantitative data collected in the study.
Data processing method
Collected data was summarized, classified and analyzed; analysis - comparison was conducted to summarize the results.
Research process
Step 1: Study assumption Step 2: Literature review of the study Step 3: Draft scale
Step 4: Primary interview and consultation Step 5: Scale adjustment
Step 6: Official scale Step 7: Survey and investigation Step 8: Data collection and analysis Step 9: Preparation of study report
Study assumption
This study is based on Job Descriptive Index (JDI) scale, including: Job attractiveness, promotion and training, working relationship, income, welfare,
Creating effective work motivation for sales staff at Truong Hai Automobile Joint Stock Company involves implementing robust reward and recognition policies, fostering a positive working environment, and cultivating a strong brand and corporate culture Additionally, leadership style plays a crucial role in measuring employees' job satisfaction, ensuring that staff feel valued and engaged in their roles.
Figure 2.2: Factors affecting the employees’ work motivation
- What are factors affecting the employees’ work motivation?
- How does each factor affect?
- The employees’ work motivation is improved by which way?
EXISTING STATUS OF MOTIVATING SALE STAFF IN
Introduce of Truong Hai Auto Corporation
3.1.1 Overview of Truong Hai Auto Corporation
Coporate name: Truong Hai Auto Corporation (THACO)
Charter capital: USD 750 millions Market capitalization: USD 6 millions Headquarter: 10 Mai Chi Tho, An Loi Dong Ward, District 2,
Employees: 18,000 persons Founder – Chairman: Mr Tran Ba Duong Logo:
Slogan: Improve new – To Future the Future
1997: Established as an Automotive Trading & Services Company Ltd
2004: Started assembling trucks in the new factory (Thaco Truck) in Chu Lai Industrial Park
2007: Established KIA Assembling Factory (Thaco KIA)
2007: Equitized to Truong Hai Auto Corporation
2008: Established Infrastructure Development Company (Thaco IZD)
Creating effective work motivation for sales staff at Truong Hai Automobile Joint Stock Company is essential for enhancing productivity and achieving sales targets Implementing strategies that foster a positive work environment can significantly boost employee morale Recognizing and rewarding performance, providing opportunities for professional development, and ensuring clear communication are key factors in motivating sales teams By focusing on these areas, Truong Hai can cultivate a motivated workforce that drives success and growth within the company.
2011: Established Bus Manufacturing Factory (Thaco Bus) and Mazda
2012: Established Port Operations Company and acquired Special Vehicles
Manufacturing Company (SMT in Korea)
2017: Established Mazda Assembling Factory Mazda largest in Southeast Asia
Multi–industry corporation automobile and mechanics as core bussiness Develop complementary professions including: investment and construction, logistics, agricul ture, commerce and service
Delivering values to customers and society and making substantial contribution to the economy
Creating effective work motivation for sales staff at Truong Hai Automobile Joint Stock Company is essential for enhancing productivity and achieving sales targets Implementing strategies that foster a positive work environment can lead to increased employee satisfaction and performance Key motivational factors include recognition, incentives, and opportunities for professional growth By focusing on these elements, the company can boost morale and drive sales success.
Having good mind and mature:
We are committed to fostering a positive corporate culture that enhances social development and improves the quality of life for our employees and communities Our goal is to establish ourselves as a leading regional industrial group, particularly in automobile manufacturing and its supporting industries, while achieving sustainable growth We aim to contribute significantly to the socio-economic and cultural development of Vietnam and advance the Vietnamese automobile engineering sector.
The Company-labeled culture is developed with great Mind and Mature Accordingly, Mind is the internal cultural force and Mature illustrates the culture via product
DEDICATION: Work wholeheartedly and responsibly with everyone and the company Be responsible for yourself, your family, colleagues, companies and products
Creating effective work motivation for sales staff at Truong Hai Automobile Joint Stock Company is essential for enhancing productivity and achieving sales targets Implementing strategies that foster a positive work environment can significantly boost employee morale Recognizing achievements and providing incentives are key components in motivating sales teams Additionally, offering professional development opportunities ensures that staff remain engaged and committed to their roles By prioritizing employee motivation, Truong Hai can improve overall performance and drive business success.
HONESTY: Be honest with yourself; Take responsibility for any mistake or failure to get the tasks done; Being truthful and ready to defend what is right
INTELLIGENCE: Learn to improve your knowledge, think and act independently; Be creative in your respective fields; Practice the behavior culture
CONFIDENCE: Act confidently for the company development; Be self- confidence in work and communication
RESPECT: Prioritize company interests over the personal interests; respect the collective, customers, supervisors and colleagues through daily behaviors
PRESTIGE Be loyal to the company; keep promise with colleagues and customers;
ENTHUSIASM: Listen patiently to the opinions of supervisors, colleagues, and customers; Be dedicated to work and company’s development; Be kind and loyal to everyone;
CONVENIENCE: Cultivate a favorable and effective collaboration with colleagues in the company; Be friendly to facilitate mutual communication
Creating effective work motivation for sales staff at Truong Hai Automobile Joint Stock Company is essential for enhancing productivity and achieving sales targets By implementing strategies that foster a positive work environment, the company can boost employee morale and engagement This includes recognizing individual achievements, offering competitive incentives, and providing opportunities for professional development Prioritizing communication and feedback will also contribute to a motivated sales team, ultimately driving the company's success in the competitive automotive market.
Creating effective work motivation for sales staff at Truong Hai Automobile Joint Stock Company is essential for enhancing productivity and achieving sales targets By implementing strategies that foster a positive work environment, the company can boost employee morale and engagement Techniques such as recognition programs, performance incentives, and professional development opportunities can significantly impact motivation levels Ultimately, a motivated sales team is crucial for driving success and ensuring the company's competitive edge in the automotive industry.
3.1.9 Business performance results Thaco’s Sales performance
Creating work motivation for sales staff at Truong Hai Automobile Joint Stock Company is essential for enhancing performance and productivity Effective motivation strategies can lead to increased employee satisfaction and engagement, ultimately driving sales success Implementing recognition programs, providing incentives, and fostering a positive work environment are key components in motivating sales teams By prioritizing employee motivation, Truong Hai can achieve its business goals and maintain a competitive edge in the automotive industry.
Existing status on work motivation of sale staff
3.2.1 Salary and salary-based allowances
Salary of sale staff is paid in accordance with the title hierarchy, including positions: Apprentice, sales advisor, sales team leader, Deputy Sales Manager, Sales Manager
Creating effective work motivation for sales staff at Truong Hai Automobile Joint Stock Company is essential for enhancing productivity and achieving sales targets Implementing strategies that foster a positive work environment, recognize employee achievements, and provide opportunities for professional development can significantly boost morale and motivation among the sales team By focusing on these key areas, the company can cultivate a motivated workforce that drives sales performance and contributes to overall business success.
Deputy Sales Manager Main official
Sales staff, excluding the manager, such as the Deputy Sales Manager and Sales Manager, will follow an alternative sales duty schedule at the Automobile Showroom after regular working hours from 5:00 PM to 6:00 PM and on Sundays Employees scheduled to work on Sundays will not receive additional pay but will be compensated with a day off on other working days.
The annual HR review assesses employee performance over the year, identifies necessary training programs, outlines individual development plans, and serves as a foundation for salary increases.
Creating effective work motivation for sales staff at Truong Hai Automobile Joint Stock Company is crucial for enhancing productivity and achieving sales targets By implementing strategic motivational techniques, the company can foster a more engaged and driven workforce Key factors include recognizing employee achievements, providing opportunities for professional development, and establishing a supportive work environment These initiatives not only boost morale but also lead to improved sales performance and customer satisfaction Ultimately, a motivated sales team is essential for the sustained growth and success of Truong Hai Automobile.
Salary = Salary scale by manday + Leave payroll + Salary in the public holidays and New Year Festivals + Allowances
Manday-based salary scale: calculated by number of actual working days in the month
Employees receive their annual leave payment in the month it is applied, amounting to 70% of their salary scale Unused leave days are compensated at the actual salary scale at the year's end Additionally, for every five years of service, employees earn an extra paid leave day.
Payroll in public holidays and New Year Festival:
+ Employees with salary scale less than VND 11 million shall be enjoyed with 50% of salary scale
+ Employees with salary scale over VND 11 million shall be enjoyed with 100% of salary scale
+ Duty allowance: 10%- 20% of salary scale as the case may be
+ Allowance for service length: 5% and 10% of salary scale for
5 -10 years and over 10 years, respectively + Petrol allowance: 25 liters of petrol/month applied for the employees with over 20km distance from home to the Company
Bonus salary is comprised of: 13 th monthly salary bonus and bonus by sale performance
Creating effective work motivation for sales staff at Truong Hai Automobile Joint Stock Company is essential for enhancing productivity and achieving sales targets By implementing motivational strategies tailored to the unique needs of the sales team, the company can foster a positive work environment This approach not only boosts employee morale but also drives performance, leading to increased sales and customer satisfaction Prioritizing motivation in the workplace is crucial for the overall success of Truong Hai Automobile.
13 th monthly salary bonus: The bonus shall be applied, corresponding to the ratings in accordance with the annual ratings (Excellent, Good, Fairy Good, Fairy Average and Average)
+ Applied for positions of: apprentice, sales advisor, sales team leader + Not applied for positions of Sales Manager and Deputy Sales Manager
+ Bonus for Sales Department Bonus is divided to each individual by contribution
Bonus fund = (Bonus norm * Vehicle sales) – Income salary fund
Bonus division to individual = Bonus fund * contribution percent (%)
+ Bonus norm: sales commission per vehicle Such norm is monthly designed by market factor in accordance with the income premise of sales staff from other companies
+ Vehicle sales: it refers to vehicles sold to the customer and liabilities are successfully collected
+ Income salary fund: It refers to total salary actually working by man-day of all sale employees in accordance with the bonus policy
The contribution percentage (%) is determined by individual Key Performance Indicators (KPIs), which encompass various criteria such as sales achievement, customer satisfaction rates, product knowledge, training effectiveness, work attitude, and adherence to company regulations and policies.
Regulations on social insurance, health insurance, severance insurance and maternal treatment are fully complied as prescribed by the State
Annual health examination is organized for all staff and employees
Creating work motivation for sales staff at Truong Hai Automobile Joint Stock Company is essential for enhancing performance and achieving business goals Effective motivational strategies can lead to increased sales, improved employee satisfaction, and a stronger commitment to the company By implementing targeted incentives, fostering a positive work environment, and providing opportunities for professional development, the company can cultivate a motivated sales team that drives success Prioritizing employee motivation not only benefits individual staff members but also contributes to the overall growth and competitiveness of Truong Hai Automobile in the market.
Lunch is offered to ensure the food safety and hygiene and lunch time for the employees
Gifts are delivered on the occasions of the international Women’ Day (8 March) and the Universal Children's Day (1 June)
Entertainment, recreation, tourism and sport activities are not launched by the Company
Compliments are offered to the illness, funeral and wedding occasion as follows:
Contents Trade union member Employee
Cash In kind Cash In kind
Deadth of official and employee
VND 5,000,000 (Payment for last respects to the deceased)
VND 2,000,000 (Payment for last respects to the deceased)
Death of family relative (parents, parents in-law, wife/husband, children)
VND 1,000,000 (Payment for last respects to the deceased)
Creating work motivation for sales staff at Truong Hai Automobile Joint Stock Company is essential for enhancing productivity and achieving sales targets Effective motivation strategies can lead to improved employee engagement and satisfaction, ultimately driving better performance By fostering a positive work environment and recognizing individual contributions, the company can cultivate a motivated sales team that is committed to success Implementing targeted training programs and offering incentives will further support the development of a high-performing workforce.
Support treatment for unexpected difficulties:
Allowances for unexpected difficulties Trade union member Employee
The employee is contracted with fatal disease or disaster, risks, resulting in economic difficulties
The employee's family (wife/husband, natural children, natural parents directly nurtured by the employee) is difficult, risky and contracted with disease, resulting in economic difficulties
Annual award is offered to children of Trade union members and employees with excellent work performance in study and life The award level is VND 1 million/child
The Company implements funeral support regulations aligned with group-based mutual assistance, which is deducted from employees' salaries, alongside its own support policies This assistance extends to parents, parents-in-law, biological children, legal spouses, adopted parents, and legally recognized adopted children.
Less than VND 8 million VND 5,000 million/time
From VND 8 million to less than VND 25 million VND 10,000 million/time
From VND 25 million to less than VND
VND 45 million or more VND 40,000 million/time
Creating effective work motivation for sales staff at Truong Hai Automobile Joint Stock Company is essential for enhancing performance and achieving business goals Implementing motivational strategies can lead to increased productivity and job satisfaction among employees By fostering a positive work environment and recognizing individual contributions, the company can inspire its sales team to excel Furthermore, continuous training and development opportunities will empower staff, ensuring they remain engaged and motivated in their roles Ultimately, prioritizing employee motivation is key to driving sales success at Truong Hai Automobile.
Death of parents, parents in-law, natural children:
Support level = Income salary scale * KPI * Service length coefficient * 70%
Support level = Income salary scale * Service length coefficient * 100%
KPI: Rated by HR evaluation
Service length coefficient: Calculated by the time since date of adhesion to the Company
The background training is held for the new employees, including:
Training course on working environment integration
Training course on working regulations and rules
Knowledge about automobile products and rivals
Creating effective work motivation for sales staff at Truong Hai Automobile Joint Stock Company is crucial for enhancing performance and achieving sales targets Implementing motivational strategies can lead to increased job satisfaction and productivity among employees By fostering a positive work environment and recognizing individual contributions, the company can drive engagement and commitment within its sales team Prioritizing employee motivation not only benefits the workforce but also contributes to the overall success and growth of the organization.
Knowledge about sales and delivery procedure
Sales software use skills and reporting
Ongoing employees receive training and assessments on new product knowledge, marketing strategies, and essential sales soft skills Sales Managers and Deputy Sales Managers undergo comprehensive training in HR management and advanced sales techniques, culminating in certification from recognized professional training institutions.
The employees assigned to overseas study must sign the employment commitment with the Company at least 2 years since the date of course adhesion If
2 year service is not assured, the employees shall compensate for all expenses of the join training course
Moreover, the annual training and issuance of certificate on labor safety and fire safety for all officials and employees by the Company
The development and promotion roadmap for officials and employees has been strategically established from the outset The sales staff will progress through a structured career path, advancing from Sales Advisor to Sales Team Leader, then to Deputy Sales Manager, Sales Manager, Sales Director, and ultimately to Branch Director.
Creating work motivation for sales staff at Truong Hai Automobile Joint Stock Company is essential for enhancing productivity and achieving sales targets Effective motivation strategies can lead to increased employee engagement, job satisfaction, and overall performance By implementing tailored motivational programs, the company can foster a positive work environment that encourages sales staff to excel Continuous training, recognition of achievements, and providing incentives are key elements in driving motivation among sales personnel Ultimately, a motivated sales team contributes significantly to the company's growth and success in the competitive automotive market.
Main findings
Employees are fully provided with working equipment, tools and instruments The working space is well ventilated, comfort and clean
The work performance aims to the overall benefits of the team and group, hence, the working competitiveness and individualization are restricted
Interacting with diverse customers allows employees to build valuable relationships with friends and partners, enhancing both their professional and personal lives However, achieving success in these interactions necessitates strong communication skills and smart engagement strategies.
The colleagues are friendly, open-hearted, and mutual respected and sharing This is considered as the Company’s strengths when the collective and united corporate culture
Figure 3.1: Labor structure by gender of sale staff
(Source: Statistics at Thaco in Ha Noi area)
The Company’s gender-based labor structure unveiled that the number of male sale staff makes up the majority against total sale staff, fulfilling 72%
For the automobile business sector, the Company's gender-based labor structure is completely proper
Creating effective work motivation for sales staff at Truong Hai Automobile Joint Stock Company is essential for enhancing productivity and achieving sales targets By implementing targeted motivational strategies, the company can foster a more engaged workforce This approach not only boosts employee morale but also drives sales performance, ensuring sustained growth in a competitive market Prioritizing motivation within the sales team ultimately leads to improved customer satisfaction and loyalty, contributing to the overall success of the organization.
Figure 3.2: Labor structure by age of sale staff
(Source: Statistics at Thaco in Ha Noi area)
The company's sales team predominantly consists of young professionals, with the majority aged between 25 and 35 years Specifically, individuals aged 25 to 30 represent the largest segment at 52%, followed by those aged 31 to 35, who make up 30% Employees over 35 years old account for 14%, while those under 25 comprise 5% of the workforce.
Figure 3.3: Labor structure by qualification
(Source: Statistics at Thaco in Ha Noi area)
Sale staff qualification is characterized by mainly university, accounting for 82%, next is the postgraduates, accounting for 10% and the colleges accounting for 8%
Creating effective work motivation for sales staff at Truong Hai Automobile Joint Stock Company is essential for enhancing productivity and achieving sales targets By implementing strategies that foster a positive work environment and recognize individual contributions, the company can boost employee morale and engagement Tailored motivational programs, such as performance incentives and professional development opportunities, play a crucial role in driving sales performance Ultimately, a motivated sales team is vital for the success and growth of Truong Hai Automobile in a competitive market.
Figure 3.4: Labor structure by service length
(Source: Statistics at Thaco in Ha Noi area)
The majority of sales staff have a service length of 1-3 years, representing 48% of the workforce, while 37% have been with the company for less than a year This trend indicates that the sales team is predominantly young, suggesting a relatively low level of attachment to the company among employees.
Figure 3.5: Labor structure by income
(Source: Statistics at Thaco in Ha Noi area)
Sale staff’s income mainly varies within the range of VND 16 million - VND
In the income distribution, 20 million VND represents 41% of the total, while the group earning between 11 million and 15 million VND accounts for 30% Notably, the highest income bracket of 26 million to 30 million VND comprises only 3% of the population.
Creating effective work motivation for sales staff at Truong Hai Automobile Joint Stock Company is essential for enhancing productivity and achieving sales targets Implementing motivational strategies can lead to increased employee engagement and job satisfaction By fostering a positive work environment and recognizing individual contributions, the company can boost morale and drive performance Continuous training and development opportunities will also empower sales staff, enabling them to excel in their roles and contribute to the overall success of the organization.
3.3.6 Statistics of factors affecting the work motivation
150 questionnaires were delivered by the author After screening, 120 valid questionnaires were collected with statistic results as follows:
Table 3.1: Sale staff’s evaluation on job attractiveness
1 The job is suitable with your personality and capacity 0.5% 8.3% 29.2% 62.0% 0.0%
2 The job inspires the great passion and interest 0.0% 1.7% 48.3% 50.0% 0.0%
3 Your job is extremely challenging 1.5% 2.5% 20.8% 70.2% 5.0%
4 Your job helps to discover your personal capacity 0.0% 0.8% 40.0% 49.2% 10.0%
5 Proper duty assignment is applied 2.0% 5.2% 30.8% 55.0% 7.0%
(Source: 2018 survey findings of the author)
While most sales staff expressed satisfaction with their current roles, around 50% of respondents indicated a lack of inspiration in their jobs This highlights a critical area for improvement, as enhancing employee motivation is essential for fostering a more engaged and productive workforce.
Creating effective work motivation for sales staff at Truong Hai Automobile Joint Stock Company is essential for enhancing productivity and achieving sales targets Implementing strategies that foster a positive work environment can significantly impact employee performance By focusing on incentives, recognition, and professional development, the company can inspire its sales team to excel Engaging employees through meaningful motivation techniques not only boosts morale but also drives overall business success.
Table 3.2: Sale staff’s evaluation on promotion opportunities and training
Content Very dissatisfied Dissatisfied Unsure Satisfied Very satisfied
Specific development and promotion road map is applied by the Company
Promotion opportunities are always offered to the qualified persons
The promotion opportunities are clear, public and transparent
Training is fully organized to outperform the job and develop the expertise
Training are characterized by proper learners, qualification and contents
Training courses help you to successfully improve the expertise, confidence and smart communication in work handling
(Source: 2018 survey findings of the author)
The highest satisfaction was recorded in the factor that the training is fully, properly organized, accounting for the percent (%) of 53% - 56%
Creating effective work motivation for sales staff at Truong Hai Automobile Joint Stock Company is essential for enhancing productivity and achieving sales targets By implementing strategies that foster a positive work environment, the company can boost employee engagement and satisfaction Key motivational techniques include offering incentives, recognizing achievements, and providing opportunities for professional development These approaches not only improve individual performance but also contribute to the overall success of the organization Prioritizing employee motivation is crucial for maintaining a competitive edge in the automotive industry.
The highest dissatisfaction was recorded for the promotion opportunities, making up nearly 32%
Therefore, the Company should maintain and further improve the training and renovate the management policies to create more promotion opportunities for the employees
Table 3.3: Sale staff’s evaluation on work relationship
Content Very dissatisfied Dissatisfied Unsure Satisfied Very satisfied
The job helps you to enhance the relationships with various friends, colleagues and partners
The job helps you to enhance the relationships with various entrepreneurs, agencies and industries
The job helps you to successfully develop the sustainable relations with friends, colleagues and mutual support in the job and life
(Source: 2018 survey findings of the author)
Over 70% of respondents expressed satisfaction with their working relationships, while less than 2% reported dissatisfaction This indicates that sales staff cultivate significant relationships due to their interactions with diverse customers across various industries The success of these relationships largely relies on the employees' effective communication skills and personal initiative.
Creating effective work motivation for sales staff at Truong Hai Automobile Joint Stock Company is essential for enhancing performance and achieving sales targets Implementing strategies that foster a positive work environment, recognize achievements, and provide incentives can significantly boost employee morale By focusing on clear communication, professional development opportunities, and a supportive culture, the company can cultivate a motivated sales team that drives success Prioritizing employee motivation not only improves sales outcomes but also contributes to overall organizational growth and employee retention.
Table 3.4: Sale staff’s evaluation on income and welfare
Content Very dissatisfied Dissatisfied Unsure Satisfied Very satisfied
Current salary is suitable with your capacity and contributions to the Company
The Company’s business bonus policies are clear, fair and deserved to your achievements
Traveling allowances ensure the actual spending
Treatment policies focus on health, spirit and living demand of the employees
Welfare policies demonstrate the Company’s great concern on its officials and employees
Welfare policies encourage the employee’s long-time attachment to the Company
(Source: 2018 survey findings of the author)
Most of sale staff who was from very dissatisfied to dissatisfied with the Company's bonus, treatment and welfare policies made up 70%
The investigation into the sales staff's concerns highlighted key issues, including the Company's ambiguous bonus policies, the lack of transparency regarding changing sales bonus norms at the outset of vehicle assignments, delays in bonus payment approvals, and the complex methods used for bonus calculations.
The sales department at Truong Hai Automobile Joint Stock Company faced challenges in motivating staff, leading to difficulties in calculating bonuses and total income While the company's welfare policies were clear, they lacked meaningful physical and spiritual value, leaving employee well-being unaddressed There was a need for more team-building activities to enhance employee solidarity and improve productivity Additionally, initiatives such as sports exchanges, seasonal tourism, and birthday gifts were recommended to foster a more supportive work environment These insights formed the basis for proposing enhanced bonus and treatment policies for employees.
Table 3.5: Sale staff’s evaluation on award and recognition policy
Content Very dissatisfied Dissatisfied Unsure Satisfied Very satisfied
Award policy is deserved with the employee’s work performance, achievement and contributions
Award policy is public, clear, transparent and timely
The employee’s working capacity and performance are properly recognized by the leaders
The award and recognition policies are consistently applied by the Company
The Company’s bonus level is suitable with the premise in the automobile business market
(Source: 2018 survey findings of the author)
Creating effective work motivation for sales staff at Truong Hai Automobile Joint Stock Company is essential for enhancing productivity and achieving sales targets By implementing strategic motivation techniques, the company can foster a positive work environment that encourages employee engagement and performance Recognizing individual contributions and providing incentives can significantly boost morale and drive sales success Additionally, ongoing training and development opportunities will empower sales staff to excel in their roles, ultimately benefiting the company's growth and profitability.
Income and welfare
Many automakers implement transparent salary, bonus, and commission structures based on vehicle sales, allowing sales staff to anticipate their income after expenses However, the current bonus policy at this company diverges significantly from industry standards, as bonuses are only awarded when the sales department's bonus fund exceeds total salary costs This creates confusion among sales staff regarding their earnings, which are influenced by the overall salary statistics of the department Consequently, high-performing employees often find their expected income lower than market averages due to offsets from underperforming colleagues, particularly new hires with lower sales capabilities This situation contributes to a talent drain, making it difficult to retain experienced and skilled sales professionals, a trend reflected in the employee age and service length data.
Creating effective work motivation for sales staff at Truong Hai Automobile Joint Stock Company is essential for enhancing performance and achieving sales targets Implementing strategies that foster a positive work environment, recognize achievements, and provide opportunities for professional growth can significantly boost employee morale By focusing on intrinsic and extrinsic motivators, the company can cultivate a motivated workforce that drives sales success and contributes to overall organizational growth.
Employees with service length of less than 1 year are relatively high and the working age is relatively young Many of them are graduates
It is expected that the sale staff should be further motivated to work and be more loyal to the Company by applying some solutions as follows:
To enhance transparency in our bonus policy, we will release the bonus coefficient for each vehicle model along with a monthly sales assignment schedule This monthly coefficient will be adjusted to align with current business conditions, focusing on boosting sales for challenging vehicle models and improving inventory turnover to optimize working capital.
Adjust the bonus calculation method to further motivate the sales task forces: KPI refers to the ratings of sales management criteria of each sale staff, including:
Table 4.1: KPI for evaluating sales activities
Update customer information 7% Conduct data entry as prescribed
Initiate car demo 5% 100% customer is invited to car demo when they visit the showroom
Working Attitude 7% Dedicated, responsible, enthusiastic, obeyed Customer satisfaction index 7% 0% customer claims at employee faults
Full and active involvement into the training courses
Self-training for self-actualization Products knowledge/skills
Working time 6% Adherence to the Company’s regulations and rules KPI = Evaluation criteria coefficient * Fulfillment of each criteria
Creating work motivation for sales staff at Truong Hai Automobile Joint Stock Company is essential for enhancing productivity and achieving sales targets Effective motivation strategies can lead to increased employee satisfaction and performance, fostering a positive work environment By implementing tailored incentive programs and recognizing employee achievements, the company can boost morale and drive sales success Investing in employee development and providing clear career advancement opportunities further strengthens motivation, ensuring that sales staff remain engaged and committed to their roles.
Responsibilities are specified for each division and individual in calculating and submitting the bonus results and payout time
Employees to be on duty on Sunday are paid instead of enjoying a day-off for compensation on other working days
While the welfare contributions may not directly impact employee income, they play a crucial role in shaping workplace morale and loyalty to the company Although the company's welfare policies are clear and transparent, there is a need for a greater emphasis on enhancing employees' well-being and overall quality of life.
Organize the sport clubs such as football, badminton, table tennis, etc., sport exchanges between the clubs twice per year
Apply the Summer vacation for employees to cement the team- building spirit, relax and reproduce the productivity
Offer the full-moon festival gifts to the employees’ children
Deliver the birthday gifts and wishes to the employees
Organize the meeting with the employees’ families on annual family festival
Offer cash bonus on public holidays and New Year Festivals: 30 April, 1 May, National Day 2 September, Calendar New Year Festival
Offer the annual health insurance package for the managerial levels from Manager or higher
Provide preference shares to the employees with service length of over 3 years
Award and recognition policy
Design and promulgate the award policy applied for the employees with excellent performance and renovation contributions to offer the high work performance
Offer the “hot” bonus to the outstanding sale staff
Creating work motivation for sales staff at Truong Hai Automobile Joint Stock Company is essential for enhancing performance and achieving sales targets Effective motivation strategies can lead to increased employee engagement, job satisfaction, and ultimately, higher sales results By fostering a positive work environment and recognizing individual contributions, the company can inspire its sales team to excel Implementing tailored motivational programs that align with employees' needs will not only boost morale but also drive the overall success of the organization.
Deliver the certificate of merits, organize the award ceremony for the outstanding sales members or departments
Prioritize the outperformer to involve in the domestic and overseas in- depth training courses
Job attractiveness
The findings unveiled that many employees feel not inspired and interest in working Therefore, the Company should focus on:
Recruiting and conducting proper duty assignment to be well matched with each employee's personality, capacity and strengths
Conduct the duty assignment with gradual difficulty and complexity to challenge in the work to further develop and inspire the skills and potentials of each employee
Clearly decentralize the authorities and responsibilities for handling job and provide the cross-check tools to enhance the activeness in working of each employee
Promotion opportunities and training
Employees receive comprehensive training in expertise and sales skills, yet opportunities for promotion to managerial positions are limited and difficult to attain The author suggests addressing these challenges to enhance career advancement prospects.
Regularly provide recruitment disclosure for manager position and appeal the internal candidates to apply
To enhance managerial skills during each HR evaluation period, it is essential to strategically plan the levels of management, create a comprehensive training roadmap, and communicate training commitments to employees This approach ensures that all employees are equipped to meet the necessary requirements for advancement to managerial positions.
To enhance organizational effectiveness, it is essential to prioritize specialized training for high-performing employees with strong management potential, in addition to the standard annual professional development courses This focus on targeted training will prepare these individuals for advancement into higher positions within the company.
Creating effective work motivation for sales staff at Truong Hai Automobile Joint Stock Company is essential for enhancing productivity and achieving sales targets Implementing strategies that foster a motivating work environment can lead to improved employee performance and satisfaction By focusing on recognition, rewards, and professional development, the company can cultivate a motivated sales team that drives success and growth Additionally, understanding the unique needs and aspirations of sales staff will help tailor motivational initiatives, ultimately contributing to the overall success of the organization.
Leadership style
To bridge the gap between managers and subordinates, fostering a comfortable environment for employees to share and exchange ideas, leaders should prioritize open communication, encourage feedback, and promote a culture of collaboration.
To foster a successful workplace culture, leaders should prioritize employee engagement beyond the office by participating in activities together This involvement helps build strong associations and demonstrates genuine care for employees' careers, reinforcing the belief that they will achieve success in the near future.
Leaders should avoid harsh criticism when employees make mistakes or fail to achieve expected results Instead, they should remain calm and focus on explaining the situation, highlighting development opportunities and potential for success This approach will motivate and inspire employees, encouraging them to commit to completing their assigned tasks effectively.
Chapter 4 offers recommendations and solutions aimed at enhancing work motivation among Thaco Sales Staff, building on the existing status outlined in Chapter 2 and the key findings discussed in Chapter 3.
Creating effective work motivation for sales staff at Truong Hai Automobile Joint Stock Company is essential for enhancing productivity and achieving sales targets Implementing motivational strategies can lead to improved employee performance and job satisfaction By fostering a positive work environment and recognizing individual contributions, the company can boost morale and encourage a high level of engagement among sales personnel Tailored incentives and ongoing training opportunities further support the development of a motivated sales team, ultimately driving the company's success in a competitive market.
CONCLUSIONS Conclusions of the study
Organizations, including financial institutions, strive for sustainable development while pursuing specific objectives The most valuable asset of any company is its people, who play a crucial role as partners in achieving goals Therefore, enhancing work performance through motivation is an effective strategy for success.
A comprehensive literature review on work motivation among Thaco employees identified eight key factors influencing the motivation of sales staff: job attractiveness, promotion and training opportunities, income and welfare, awards and recognition, leadership style, working environment, work relationships, and brand and corporate culture This study utilized qualitative methods, including questionnaires, surveys, and interviews with 150 sales staff The results revealed that these eight factors significantly affect work motivation, with income, welfare, and recognition policies being the most influential.
According to the findings, some solutions are proposed to improve the work motivation for sale staff as follows:
Adjust the sales commission bonus policy Further promulgate the treatment policies orienting towards the employees' spirit and life
To foster a high-performing workplace, it is essential to promptly implement an award policy for top performers, provide employees with increased opportunities for promotion to managerial roles, and actively engage leaders in organizing team-building activities that strengthen employee relationships.
Every organization has its unique business model, financial resources, and human capital, but the most significant differentiator is its staff Consequently, it is essential for managers to prioritize employee motivation.
Creating work motivation for sales staff at Truong Hai Automobile Joint Stock Company is essential for fostering long-term survival and development Investing in employees not only enhances their performance but also contributes to the company's overall success By prioritizing employee motivation, the company ensures a dedicated workforce that drives sales and sustains growth in a competitive market.
This study is still recorded with certain restrictions, concretely:
This study focuses exclusively on Thaco sales staff in Hanoi City, limiting its practical implications to the surveyed location Consequently, results may vary in different regions A nationwide implementation of this study would allow for a comprehensive analysis and comparison of scales, leading to the development of an improved motivation system and employee orientation.
The respondents are mainly male employees This partially affects the answer reliability
Some respondents failed to spend more time for the survey, hence, the honesty and accuracy of some questionnaires may not be high
The sale staff’s motivation is largely affected by a series of factors, however, only 8 factors are studied hereof due to time restriction of this study
The motivation of Thaco sales staff is influenced by several key factors, including job attractiveness, opportunities for promotion and training, income and welfare benefits, recognition and awards, leadership style, the working environment, interpersonal relationships, as well as the brand and corporate culture.
The study analyzes the factors influencing work motivation by examining employee survey data and interviews, providing valuable insights for Thaco leaders These findings help the company understand employee expectations, enabling them to refine salary, bonus, and welfare policies This strategic approach aims to enhance employee loyalty, enthusiasm, and commitment, ultimately leading to improved work performance.
Creating effective work motivation for sales staff at Truong Hai Automobile Joint Stock Company is essential for enhancing productivity and achieving sales targets By implementing tailored motivational strategies, the company can foster a positive work environment that encourages employee engagement and commitment This approach not only boosts morale but also leads to increased sales performance and customer satisfaction Prioritizing employee motivation is crucial for sustaining long-term success in the competitive automotive industry.
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Creating effective work motivation for sales staff at Truong Hai Automobile Joint Stock Company is essential for enhancing productivity and achieving sales targets Implementing strategies that foster a positive work environment can significantly boost employee morale and engagement By recognizing achievements, providing incentives, and offering professional development opportunities, the company can cultivate a motivated sales team Ultimately, a motivated workforce leads to improved performance and contributes to the overall success of Truong Hai Automobile.
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