Factors affect employee motivation

Based on the master thesis of MA Bui Minh Thi (2013) about the motivation of employees in Techcombank as well as the literature review in the article : Human resources management which has been written by PhD Tran Thi Van Hoa, the factors affecting employee motivation are classified into the following groups:

2.4.1. Employee’s factors

Labor demand:

Each employee takes part in an organization; he also desires to satisfy himself demand.

Basically, demand system of people can be divided into two types as: material demand

and spiritual demand. Each individual has different demand. Thus, in order to create work motivation, the first important thing is know what do employees want from their undertook work. From there, we can show demand satisfied methods.

Characteristic of Employees:

Characteristic of gender, age, personality, religion…They affect to work behavior of employees. For example: The young people like adventure, creation. The older people are often more mature and cautious…Managers understand about the characteristic of employees and then they can find the better treatment and use their employees.

Capacity and capacity awareness of Employees:

Employee motivation includes all of their knowledge and skills which is suitable with their work. Their skills have been caused congeniality or practicing during working process. Proper assessment of employee’s capacity is basis of managers to use employees the best in company. Each employee feels comfortable when they are assigned to the appropriate work and vice versa. In common, the employee has higher requirement with his work if he has high qualification, ability to work well and perform work quickly and efficiently.

Attitude and opinion of employees with their work and organization:

This is satisfaction of work which it can affect positive or negative direction to employee’s work motivation. The employee motivation will be big if they really want to work long-term in the organization or they have passion to work.

Economic status of Employees:

Different economic status impacts on employees’ demand in work. Income of each employee is assessed different importance and this depends on economic status of each employee. Job with high salary is the main factor created employees’ work motivation in some developing country including Vietnam.

2.4.2. Job’s factors

Feature of each job:

Feature of each job will determine employees’ action. An appropriate job with employees will help them do well and in case inappropriate job causing for employee discontent and uninteresting to do work. However, positive or negative influence depends on the suitable between factors of job and human factors. This suitability will create work motivation and vice versa.

The essential skills to perform work:

Performing work get high efficiency when it is suitable with employees’ skills.

Employee motivation will be created if there is the proper and right assignment with employee’s qualification. Thus, it is so important to identify certain right and clear tasks, responsibilities and standards of performing work for each employee.

Complex and professional level of work:

Each different work requires employees’ knowledge and skill is different. So, Managers have to recognize the possibility to assign tasks for employee properly and having support them when necessary.

Working environment and condition:

Most of working time of employees takes place at company so it is important to make the suitable working environment and condition for employees. This factor has huge influence to employee’s working process in organization or company. Moreover, this influences directly to employee, especially to their psychology, health and safety.

The degree of physical and mental power consumption: With different work has different labor intensity and different degree of physical and mental power. Thus, employees always want to get their worthy thing. Managers need to recognize clearly differences in order to have encouraged methods timely and properly to make work motivation for employees.

2.4.3. Organization’s factors

Administration of human resource policies: such as recruitment, salary, evaluation of work performance, promotion, encouragement… If the policies is stated properly, this make increases work motivation for employees. On the other hand, this makes them uninterested in their work. They just want to maintain current work or even bringing more negative reactions. In the fact, if managers aware the importance of building and completion administration human resource system, the right of employees will be ensured. From there creating strong motivation for them in working long-term in a company and performing work well.

Organizational culture:

Organizational culture is synthesis of factors as: target, assignment, habit, conception of value custom, custom of behavioral standards which formed in organization and shared by organization’s members. Organizational culture plays an important role like encouraged motivation. Each organization has own cultural character would become a bridge between members and organization, creating belief and reinforcing loyalty.

Employees will have work motivation if they feel appropriate and culturally inclusive in organization and vice versa.

Organizational Structure:

Organizational Structure is arrangement parts and units in an organization into a unified whole with clear powers and tasks that aimed to make an advantage environment for each work of each individual and part. All towards completes general target of organization. The reasonable organization structure has impact on work motivation.

Organization structure of business is built properly; responsibilities and powers of work are assigned clearly to each member. From there, managers can evaluate the importance of every position, forming mechanisms of reward and punishment fairly. There is no unity between 3 factors: task, responsibility and power if organizational structure of business is built inappropriately. Since then, leading internal dissent and causing discontent, worried and not create work motivation for employees.

Technology and engineering system:

This factor affects to performing work of employees so that it impacts on their work motivation. The proper Technology and engineering system will allow to bring into full play working capacity of employees. Contrary to the weakness infrastructure will hinder their implementation process. This makes to reduce the implementation of work.

Position of business:

Position of business has big influence to work motivation. Employees will be proud when they work in a prestigious organization and higher position comparing with competitive companies in the sector. As a result, the attention of enhancing position and image of company in order to any employees feel proud of their company.

System of regulations and policies:

System of regulations and policies include regulations, policies about salary, emulation, reward, discipline…The policies greatly impact on employees’ behavior. A system of police is built strictly, detailed, fairly; clearly will strength belief of employee with organization.

2.4.4. The factors of external environment.

Regional and national culture:

Employee will be impacted by value of regional and national culture. When gathering into one organization, individuals will take the values. Difference of regional and national culture will affect to demand, spirit and working attitude of employees.

Therefore, building of the administration human resource police need to considerate the respect of cultural and national value, especially for diversified culture organizations.

State police:

All policies and state law related to labor, they are impacted to employees’ work motivation. The policies of salary, insurance, regulations on paying overtime, personal income tax… will affect to policies of organization and employees’ work motivation.

Economic – political – social conditions:

Economic factors as economic cycles, inflation, local living standard, unemployment level… or factors of political – social stability affect to create work motivation in organizations.

In the period of economic recession unemployment rate increases highly so the work with stable income is the work motivation of employees. However, in the period of economic growth, their work motivation will be different. Employees desire to have higher income or opportunity of study, promotion…

Chapter 3.METHODOLOGY