CHAPTER 2: LITERATURE REVIEW
2.2. The theory of labor motivation and the need to motivate employees
2.2.1. The basic definitions
2.2.1.1. Demand and incentive
Incentive is meant to be willing, determine to attempt at a high level to achieve the objectives of the organization. Demand can be understood as a psychological state of the people when they feel dissatisfied, lack of something.
2.2.1.2. What is motivation?
An organization can only achieve high productivity when it has members working hard and creatively. That depends largely on the manner and method by which managers use to motivate employees. Therefore, according to organizational behavior "labor motivation is the desire and willing of the employees to strengthen efforts towards achieving goals of organization."
Demand and benefit are closely related to each other. There is no demand, there is no benefit; the benefit is an expression of the demand or it is the demand that is the content of benefit. The bigger the benefits are, the more motivation people have to act for the greater benefit and they may sacrifice this benefit to obtain greater benefits. When there is still a gap between demand and benefit, there is a motivation.
2.2.1.3. What is to motivate?
To motivate employees effectively, it depends greatly on the ability of managers.
Therefore, to motivate employees can be understood as all measures of managers apply to employees in order to create incentives for employees in their work (Griffin, 2009).
Motivating employees is the responsibility and objectives of managers. Once employees are motivated to work, they will create the potential ability to improve productivity and work efficiency.
Therefore, it is necessary to implement measures that are consistent with the conditions of the organization, as well as the environment in which the organization operate.
As Vietnam joined WTO, the urgency and sensitivity make employees fell always fully stretched. Therefore, to relieve the tension in the work of the employees is a necessary condition that the organization must do well and care most. When the company creates the the
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attractiveness of jobs, salary, bonuses and working condition, the employees will be engrossed in their work.
2.2.2. The necessary to motivate employees
2.2.2.1. Current situation of motivating employees
The fact shows that the majority of Vietnamese companies do not have a proper way regarding for motivating employees.
2.2.2.2. The necessary of creating motivation for employees
* The roles of labor motivation:
The roles of labor motivation considering in three aspects: employees, the company and society.
* The necessary to build motivation in the company
In the company, motivation is a very determinant factor that makes employees to work well, devote themselves for the company, and it is related closely to the existence and development of the company. There is no company can endure and develop without the contribution of effort and intelligence of the enthusiastic people. Therefore, it is necessary for the company to create motivation for employees.
2.2.3. Factors affecting labor motivation
2.2.3.1. Personal factors of employees
Personal factors of employees that affect labor motivation include:
- The demands and benefits of employees - Personal goals
- Attitude, personal characteristic - Ability - personal capacity - Seniority, working experience
2.2.3.2. Factors of business environment
In term of business environment, there are some factors affect labor motivation as follow - Corporate culture
- The managers and policy system to manage human resource - Working conditions
2.2.3.3. The factors belong to the content and nature of work
Some factors belong to the content and nature of work also affect labor motivation. They are:
- The at
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2.2.4.2. Stacy Adams’ equity theory
Equity is a factor that is particularly concerned by the workers, they always compare what they have contributed to the company with what they receive from the company, and they also compare what they receive with what the others receive.
2.2.4.3. Positive reinforcement of Skinner
This theory aims at changing people's behavior through the impact of the reinforcement. According to this theory, the rewarded behavior tends to be repeated and those acts are not rewarded or penalized will naturally limited. The shorter the time between the moment of reward and punish is, the earlier the behavior changes.
2.2.4.4. Vroom's expectancy theory
This theory believes that motivation depends on the expectations of the employees about their capacity to perform their duties and about their chances to receive desired rewards.
This theory is not only interested in determining the type of needs, but also concerned about the process for individuals to receive the reward.
2.2.4.5. Two factor theory of Herzberg
American theorists - Mr. Frederick Herzberg divided thefactorcreating motivationfor employees into two categories: maintaining factors - belong to the satisfaction outside, and pushingfactors - internal satisfaction.
2.2.4.6. The Goal Setting Theory of Edwin Locke
Edwin Locke showed that the specific objectives and challenges would lead to better job performance; the intention to work towards the goal is the major source of labor motivation [3, 13]. Thus, the specific objectives and challenges will lead to better job performance. Setting aims need to be combined with providing feedback.
2.2.4.7. ERG theory of Relatedness by Rowth
ERG theory explained why the employees always search for higher salaries and better working conditions, even if these conditions were good and met the standards of the labor market. When employees do not feel satisfied with the communication needs and current growth need, they will seek the way to be satisfied.
2.2.4.8. The job characteristics model of Hackman - Oldham
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The job itself has its essential characteristics. These characteristics can make the job exist an intrinsic motivation, and employees will be stimulated to increase productivity depending on each task itself. Therefore, to increase the significance of the work, the company must:
- To increase the diversity of work and enhance the importance of the job - Turn the tasks into opportunities of workers
- To give autonomy to employees
- To have feedback mechanisms quickly and directly to employees