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Task 1:

Motivation strategy is extremely important and contributes to the success of any


organization, so Phuong Dong also needs a good strategy to bring results at work.
Motivational tactics are techniques that urge an individual to perform in a way that is
related to their goals. Because human behavior is rather difficult, there are several
techniques for encouraging it (Abyad, 2018). In reality, almost any influence that a
person is subjected to has the potential to modify his or her behavior. The phrase
"motivational strategies" refers to the effects on an individual's level of motivation
that are consciously employed in order to produce some form of systematic and long-
term beneficial effect. According to Owenvbiugie (2019), Employee motivation is the
enthusiasm, energy level, commitment and creativity that employees bring to the
organization on a daily basis.

In Sansone's book (2000), the author has developed two types of motivation of two
types:

• Intrinsic motivation - Intrinsically motivated means that an individual is


motivated from within. He/she desires to perform well in the workplace
because the results are consistent with his/her belief system. Thus, an
individual's deeply held beliefs are often the most powerful motivators. Such
individuals exhibit common qualities such as acceptance, curiosity, honor, a
desire to achieve success.

• Extrinsic motivation - Also, extrinsic motivation means that an individual's


motivation is stimulated by external factors - rewards and recognition. As a
result, some people may never be internally motivated and only externally
motivated to work with them to complete the task. Furthermore, research says
extrinsic rewards can sometimes boost a person's willingness to learn a new
skill set.
Regarding Phuong Dong Company, this company applies two motivational strategies:
welfare and training policies.

First about monetary motivation, the company is applying the 3P Pay System policy.
According to Martha's definition, The purpose of monetary incentives is to reward
associates for outstanding performance with money (Martha, 2013). Therefore, the
business believes that monetary rewards are still the main motivation for many people.
Phuong Dong pays employees based on the amount of work they do or the units they
produce. Eastern offers competitive salary, with the application of 3P Pay system,
including 3 components: Position, Performance, Person's competency. Because
businesses develop a detailed performance and competency assessment system, it can
help managers effectively achieve goals at organizational levels and accurately
evaluate job performance. of individuals or units. In addition, Eastern offers a flexible
benefits program that allows employees to choose the benefits that are right for them.
From that, it can be seen that the biggest advantage of this strategy is the fairness and
accuracy in paying salaries and bonuses to employees, and at the same time,
reasonably satisfying the welfare needs.

Second, the motivation applied by the Orient is non-monetary motivation. In addition


to monetary rewards, non-monetary incentives can also take the form of opportunities
for employees who do exceptionally well (Martha, 2013). Examples of nonmonetary
incentives include opportunities for personal growth and development, a pleasant
work environment, paid time off, and a flexible schedule. To detail Phuong Dong's
non-moneytary motivational policies for employees, Maslow's Hierarchy of Needs
should be applied to this situation. Maslow believed that people possess a set of
motivational systems that do not involve rewards or unconscious desires, and that
when one need is met, a person seeks to satisfy the next need (Kiel, 1999). The
Hierarchy of needs, first created in 1954, consists of five motivational needs,
described as hierarchies in a pyramid (Kiel, 1999).
Figure 1 Maslow's Hierachy of Needs

 Physiological needs: these are biological requirements for human survival, for
example: air, food, drink, shelter, clothing, warmth, sex, sleep. If these needs
are not satisfied then the human body cannot function optimally. Maslow
considers physiological needs to be the most important because all other needs
become secondary until these needs are met (Maslow, 1954).

The most visible benefits of Phuong Dong company are free lunch, use of
utility services of the company to rest, early return on Friday afternoon.Safety
need: defense against the elements, safety, protection under the law, composure
in the face of adversity , freedom from anxiety (Maslow, 1954).

 Safety needs: When a person's physical needs are satisfied, their psychological
need for a feeling of protection and security becomes more pressing. A large
portion of the population yearns for a life that is more or less predictable and
under their own control.

Phuong Dong Company provides a full range of comprehensive health care


insurance 24/7, social for employees.
 Belongingnes and love needs: When fundamental needs such as food and
shelter are addressed, the next level of human needs is a sense of belonging and
community. The need for social connection is a motivating factor in human
behavior (Maslow, 1954).

This business has a lot of activities such as team building to engage employees,
giving employees a 5-star resort, in addition to having after-hours clubs, an
area for people to bond, and employees to work. group work and group
naming.

 Esteem need: which Maslow split into two groups: self-esteem (respect, pride,
self-reliance, etc.) and the desire for a good reputation or approbation (e.g.,
status, prestige) (Maslow, 1954).

To demonstrate that the company cares about the esteem needs of its
employees, the company applies a performance appraisal system to recognize
the contributions of subordinates. Mr. Thanh always aims to shake employees'
ears and let the company develop according to its core values.

 Self actualization: maximizing one's capabilities, accomplishing one's


ambitions, pursuing one's own development, and having one's most profound
experiences. He said that the key to success is finding the inner drive to
develop one's full potential.
The employees of the Phuong Dong firm are given the opportunity to take part
in the decision-making process, to work together, and to concentrate on their
own capabilities.

From applying Maslow's Hierarchy of Needs to motivating employees, Phuong Dong


has created certain positive effects. Based on the inherent strengths of Maslow's
Hierarchy of Needs, Phuong Dong company has partially succeeded in motivating
employees, Maslow's theory helps low-level employees feel more secure at work,
employees feel safe and secure at work.
However, there are still some shortcomings in the way to motivate employees within
the company. For example, Team Eagle is led by Tran Minh Quang, his team has not
yet implemented the self actualization part – the highest demand in Maslow's
Hierachy of Needs. This is reflected in the fact that team members cannot change jobs,
cannot play different roles when working together, lack of flexibility and job rotation
is not highly effective. Next, decision-making power largely belongs to the leader,
employees are not heavily involved in the process, but only the leader gives routine
tasks to employees and the requirements they must achieve, showing that the team has
not taken advantage of it. job enrichment.

To propose motivational strategies, the factor theory: Motivation – Hygiene of


Herzberg will be applied. According to Herzberg's two-factor hypothesis, an
environment that is both clean and motivating has a positive effect on employees
(Herzberg, 2005). Happiness at work may be increased with the help of motivators,
while discontentment can be reduced with the help of sanitary factors (Stello, 2011).
The two factors in his research are Motivators and Hygiene factors.
 Hygiene factor: Non-satisfaction-related workplace factors that must be
present to avoid dissatisfaction are referred to as hygiene variables. Salary,
workplace policy, and peer relationships are all hygiene factors.

Phuong Dong Company has quite clear Hygiene factors, such as 3P Plan
System (salary), or employees in the company can choose seats for the group
(work conditipn), or job security.
 Motivators: motivators affect workplace satisfaction. They satisfy demands
like success, recognition, and growth. Motivation boosts job satisfaction and
progress.
Motivators can be referred to as the selected teams that will complete the
target and are responsible for meeting the deadline, demonstrating the
responsibility of the members, or recognizing the employee's achievements
through the system. , Club activities.

However, according to Bevins (2018), Herzberg's two-factor hypothesis does not


create employee satisfaction but converts employee dissatisfaction into short-term
motivation. To complement this hypothesis, Herzberg added four states of Herzberg's
two-factor hypothesis.
 High Hygiene Factor and High Motivation Factor - This is the ideal state
that every manager should strive to achieve. Employees will have high work
motivation, less dissatisfaction with the organization and work.
 High Hygiene Factor and Low Motivation Factor - In this state, employees
have little dissatisfaction with their work, but they will not be highly motivated
to work.

 Low Hygiene Factor and High Motivation Factor - In this state, employees are
highly motivated to work, but they also have a lot of grievances with the organization
and the job.

 Low Hygiene Factor and Low Motivation Factor - This state is clearly a bad
situation, employees are not motivated to work, they also have huge grievances
with the organization and the job.

Because the current situation of Phuong Dong company is the second case High
Hygiene Factor and Low Motivation Factor. Enterprises are very focused on investing
in compensation, control and monitoring the performance of employees. Herzberg has
observed that the pay and working conditions are good, but the work is not interesting.
Simply, employees are only working because of the salary they receive, not wanting
to develop, focus more on work, which is completely consistent with the current
situation. So to maintain long-term motivation, company leaders need to develop more
than motivators need. It can be seen that the general situation in the current company,
managers are too focused on business results that ignore personal needs, leading to the
absence rate is still high, employees disagree with leaders. Eagle team). In other
words, managers should focus on investing and developing long-term motivation,
specifically motivators, thereby helping ensure the most successful possible
achievement of organizational goals in the long run.
Task 2:
1. Performance Appraisal
Theo Cappelli (2018), An employee's performance and value to the company are
measured in these reviews. A performance review is an examination of a worker's
skills, achievements, and development. Reviews of workers' performance can be used
to justify salary increases, incentive payments, or even dismissal, periods of
measurement are often annual, semiannual, or quarterly (Cappelli, 2018)
Dựa vào đề bài, Performance management is based on the idea of "management by
objectives." Using the KPI-BSC performance management method, managers can set
SMART corporate, departmental, and personal goals. At the end of every six months
and at the end of the year, managers can evaluate the performance of both individuals
and work units. KPI (Key Performance Indicator) measures work performance by
showing how well employees, departments, or the company meet goals (Marr, 2012).
And (BSC) Balanced Scorecard is a corporate strategy tool. It aligns goals and
activities with the vision and strategy. Each object's professional features determine its
KPIs' numbers, ratios, quantitative indicators, etc (Marr, 2012).  

2. Performance management

Through performance management, bosses are able to evaluate their workers. The
goal of performance management is to establish a setting in which all employees can
give 100% of their efforts and yet get excellent results (Armstrong, 2000).
Currently, it can be seen that the company is applying MBO for performance
management. According to Peter Drucker (1976), Management by Objectives, or
MBO for short, is a productivity-boosting approach employed by corporations. It is a
strategy in which leadership creates and communicates to employees the company's
long-term objectives, with the ultimate goal of seeing each one completed before
moving on to the next (Drucker, 1976).
3. Continuos Improvement
In a study by Štefanić (2012), the author suggested that Continuous improvement is a
method of identifying areas where work might be done more efficiently and waste
may be reduced. The Kaizen approach has long been employed in business and
industry. As a result, the process has been codified and is now utilized by hundreds of
firms worldwide to uncover cost-cutting. When many of these principles are
combined, the outcome may be quite pleasant (Štefanić, 2012).

Figure 2 Kaizen's Continuous Improvement cycle

4. Suggestion

4.1 Performance Appraisal

However, the KPI-BSC model does have certain drawbacks of its own, the most
glaring of which being the two systems' very inflexible and stereotypical natures. KPIs
and BSC KPIs that are not clearly defined, explicit, and reasonable will have a
detrimental influence on staff, either leading to confusion or discouraging them from
continuing to work toward their goals. This circumstance can very easily result in a
lack of engagement on the part of employees toward the company (Akkermans, 2018).
When this scenario is taken into consideration, the company claims that they make use
of management by objectivity in a very effective and stringent manner; however, there
are still groups of employees who complain and feel pressured about their work;
consequently, it is clear that KPI - BSC results in unnecessarily negative
consequences. Therefore, the recommendation that is provided here is to become more
versatile with the two instruments that were previously mentioned. The organization
does not have to enforce the measure on all of its employees or during the whole
working process; nonetheless, it does need to comprehend the new reality of the
business and the input that employees have given on the approach. that way of
evaluation, which has the potential to bring about long-term consequences rather than
profits in the near term.

4.1 Performance management

Based on the research of Kyriakopoulos (2012), he thinks that the MBO model also
has 3 major problems, which are:

• Set unclear goals

• Time-consuming target appraisal regulations

• Conflict with subordinates about goals

And that is also the problem that Phuong Dong company is facing, specifically in the
3rd problem - Conflict with subordinates about goals. From the provided topic, it can
be seen that the company's employees are having disagreements with the leaders about
the orientation and goals, there is a lack of communication between them and the
employees are weaker in making decisions, leading to Undue negative feedback and
lack of enthusiasm at work in some individuals.

In terms of strengths, Phuong Dong shows that they make good use of the above
theory and bring many benefits from the perspective of the whole company.
Enterprises have clear goals, visions and strategies, their leaders and employees are
well aware of the vision and mission of the whole company, from which business and
work activities are based on that philosophy. can be the harmony between business
ethics and medical ethics.

Therefore, in this proposal, the OKRs method will be considered.

The abbreviation OKRs stands for Objectives and Key Results. Key Results and
Objectives MBO is a goal-setting technique that is similar to but more sophisticated
than OKRs. MBO is built on setting objectives with essential outcomes to be
achieved, which helps the entire firm work towards a single purpose (Doerr, 2018).
OKRs set goals with essential results to be achieved. OKRs are used to define
common goals for a company based on the input of all its members, with the purpose
of pushing all of its members to work together to accomplish the goal.

As for the most prominent features of OKRs, OKRs are designed with a shorter cycle
than MBOs, with goals and progress reviewed at least quarterly, or even monthly.
This allows managers to better track performance, highlighting where adjustments
need to be made to achieve goals. Second, OKRs require much more precise and
quantitative measurements of the set goals. In general, OKRs are much more
transparent than MBOs and tend to be created through group, departmental, even
company-wide discussions. OKRs of all members of the company are clear,
transparent, public and can be reviewed by all members of the company. From that, it
can be seen that the problem of disagreement, disagreement about working methods
and work goals is unlikely to occur in OKRs like the problem that the company is
having. Moreover, consistency, clarity and transparency are indispensable factors for
the company's Continuos Improvement, so OKRs are probably the right solution for
Orient company.
5. References
1. Akkermans, H. A., & Van Oorschot, K. E. (2018). Relevance assumed: a case
study of balanced scorecard development using system dynamics. In System
dynamics (pp. 107-132). Palgrave Macmillan, London.

2. Armstrong, M., & Baron, A. (2000). Performance management. Human


resource management, 69.

3. Bevins, D. T. (2018). Herzberg's two factor theory of motivation: A


generational study.

4. Cappelli, P., & Conyon, M. J. (2018). What do performance appraisals do?.


ILR Review, 71(1), 88-116.

5. Drucker, P. F. (1976). What results should you expect? A users' guide to MBO.
Public Administration Review, 36(1), 12-19.

6. Doerr, J. (2018). Measure what matters: OKRs: The simple idea that drives 10x
growth. Penguin UK.

7. Herzberg, F. (2005). The motivation-hygiene theory. Organizational behavior


one: Essential theories of motivation and leadership, eds JB Miner, ME Sharpe
Inc, New York, 2(4), 61-74.

8. Kyriakopoulos, G. (2012). Half a century of management by objectives


(MBO): A review. African Journal of Business Management, 5(6), 1772-1786.
9. Kiel, J. M. (1999). Reshaping Maslow's hierarchy of needs to reflect today's
educational and managerial philosophies. Journal of Instructional Psychology,
26(3), 167-167.

10. Stello, C. M. (2011). Herzberg’s two-factor theory of job satisfaction: An


integrative literature review. In Unpublished paper presented at the 2011
student research conference: Exploring opportunities in research, policy, and
practice, University of Minnesota Department of Organizational Leadership,
Policy and Development, Minneapolis, MN.

11. Štefanić, N., Tošanović, N., & Hegedić, M. (2012). Kaizen workshop as an
important element of continuous improvement process. International Journal of
Industrial Engineering and Management, 3(2), 93-98.

12. Sansone, C., & Harackiewicz, J. M. (Eds.). (2000). Intrinsic and extrinsic
motivation: The search for optimal motivation and performance. Elsevier.\

13. Maslow, A. H. (1954). A Dynamic Theory of Human Motivation.

14. Martha, H., & Herbert, K. (2013). The impact of monetary and non-monetary
rewards on motivation among lower level employees in selected retail shops.
African Journal of Business Management, 7(38), 3929-3935.

15. Marr, B. (2012). Key Performance Indicators (KPI): The 75 measures every
manager needs to know. Pearson UK.

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