PRACTICAL SIGNIFICANCE AND MEASURES

The result of regression analysis shows that staff loyalty depends on these factors: High income; Favorable working conditions; Conformity to organization goals; Management decision; Fair reward system and Empowerment. Moreover, the research also identified the importance of independent variables towards dependent variables as follows: the component Management decision is evaluated as the most influential factor towards staff loyalty, next are Conformity to organization goals, Favorable working conditions, Empowerment, Fair reward system and the last one is High income.

The result of T-test depicts that loyalty between men and women in an enterprise has no differences at all.

ANOVA analysis represents the distinction in loyalty level between college and university groups as well as persons who have university qualification are different from persons who get master’s degrees.

42

According to ANOVA analysis, it can be seen that persons who work as supervisors/experts have distinguish loyalty level compared to persons who are employees. However, supervisors/experts have the same loyalty level as managers.

Additionally, ANOVA analysis shows that the loyalty level of employees working at different kinds of enterprises is the same.

These results help managers to build human resource policies appropriate to allowed conditions. When employees are loyal to the organization, they will help to increase revenue and decrease costs significantly.

5.2.2 Recommending some measures to apply research results

According to research results, we have identified factors affecting staff loyalty such as High income; Favorable working conditions; Conformity to organization goals;

Management decision; Fair reward system and Empowerment. In accordance with these, we conduct some measures to increase efficiency in the management of human resources as below:

First of all, enterprises shall build a competitive salary structure. Based on forms of enterprises, it is required to have survey plans, analyze and identify reasonable incomes.

The income distribution must be attached closely to work characteristics and level of complication. Salary must have close connection with economic development and standard of living. Each year, enterprises shall consider to evaluate and modify salary level reasonably, aiming at increasing employees’ standard of living.

In addition, enterprises shall build a fair, comprehensive and clear salary structure, avoiding the situation that in the same company policies offered to newcomers are completely different than the old ones which create two salary structures. Fairness should be expressed through group fairness, personal fairness and the same working environment. In psychological side, staffs always compare their job performance to the other’s income; therefore, unfair salary paid will make them unsatisfied and also not loyal to companies as well. On the other hand, enterprises shall conduct staff evaluation exactly and scientifically, pay salary based on work capacity and efficiency that are closely attached to conditions and circumstances to complete detailed works.

Secondly, enterprises shall provide staffs with the ideal working environment together with proper means such as fresh and clean working environment, reasonable temperature and light, fairly adequate supportive devices and tools. All will help employees to invest their talents in enterprises. Especially, it is necessary to create the working environment

43

that makes staffs feel safe at work.

Thirdly, enterprises shall build development targets specifically, clearly and convey this message to each employee. This is the work which has the important meaning helping employees to reach targets together with enterprises. Moreover, enterprises shall implement other measures to orient staffs to focus on targets defined by enterprises.

Fourthly, managers shall express their care and support towards employees because caring staff is very important. A good manager shall exploit all capacities and enthusiasm of staffs when working. Together with qualifications, managers shall have prestige to win hearts and minds as well as empathize with staffs and understand staffs’ needs. Human resource managers shall consult employees about handling matters at work and share business information to groups which help employees to see the connection between what they are working and results achieved by companies. With that, staffs will feel highly respected and understand that in the company development, there are always their contributions. Besides, valuing and respecting staffs, human resource managers shall organize entertainment activities to mark special events and try to create friendly environment to make people happy at work and spend time on exploring their families and personal lives as well. Not only shall human resource officers equip necessary knowledge and skills, persons who conduct management works and heads of departments shall implement human resource works in their capacities to impulse and create motivations for junior employees to reach common targets.

Fifthly, enterprises shall consider and conclude fairly and objectively whether employees execute missions exactly to requirements or not, thereby awarding excellent individuals who are worthy due to their contributions when working. Enterprises shall build income distribution system as well as promotion and recommendation policies suitable to employees’ needs because when income distribution is evaluated as fairness based on work needs, skill level of individuals and qualifications of distribution in community etc., it will make employees more satisfied. Furthermore, enterprises shall offer opportunity of promotion to all staffs equally; when employees are aware that decisions to promote in the organization are equal, then they will feel more satisfied.

Finally, enterprises shall create mutual trust environment for both parties. Employees need recognition and respect from managers by giving them the right to make their own decisions, making chances to research, study and contribute to common achievements of enterprises themselves. Managers shall assign works based on strengths and weaknesses

44

of staffs. It is needful to teach staffs required qualifications. Managers shall understand several kinds of works and give rights to employees who can handle well. They are required to recognize that jobs cannot be done when doing them alone. When assigning works to employees, they understand that effective authorization means accepting accompanying unexpected matters. Managers may not receive expected results, however, they need to accept it and accept the mistakes occurred.

5.3 LIMITATIONS AND THE NEXT RESEARCH TRENDS