ASSIGNMENT 2 FRONT SHEET

Qualification BTEC Level 4 HND Diploma in Business

Unit number and title Unit 4: Leadership and Management (5036)

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Student name Nguyễn Lê Trạng Nguyên Student ID GBD210645

Class GBD1009 Assessor name Dương Thúy Hằng

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Table of Contents
1. Introduction.......................................................................................................................................................... 4

2. The main contents of report ........................................................................................................................... 4

2.1. Motivation in VNG Company ................................................................................................................... 4

2.2. Performance Management ...................................................................................................................... 9
3. Conclusion ........................................................................................................................................................ 13

4. Reference .......................................................................................................................................................... 13

Table of Firgure

Figure 1: Setting goals on Zoho People.................................................................................................................... 11

Figure 2: Following performance of employees on Zoho People .......................................................................... 12
Figure 3: Feedback on Zoho People ......................................................................................................................... 12
Figure 4: Reward on Zoho People ............................................................................................................................ 13
 1. Introduction
This report focuses primarily on motivational strategies for inspiring employees and effective
management techniques to ensure the growth of VNG Company. Specifically, the study explores
motivational theories and motivational strategies at VNG Company. Additionally, the report explains
the main effects and connections between the company's motivational strategy and its performance.
In particular, this report proposes a comprehensive motivational strategy to address all motivational
factors effectively, to improve the performance of VNG Company. Furthermore, the study will analyze
VNG's performance management techniques used in the company-building process and provide
recommendations to enhance VNG's performance management capabilities to ensure continuous
business improvement.

2. The main contents of report

2.1. Motivation in VNG Company
Motivation is widely recognized as a critical element in the success of any organization. According to
DuBrin (2012), motivation is the effort that originates from within a person to achieve results. It has
to do with why employees behave a certain way and do what they do. From an employee's standpoint,
Mitchell (1982) states that motivation represents the extent to which one wants and actively chooses
to engage in specific behaviors. On the other hand, from a management perspective, The Chartered
Management Institute (2015) defines motivation as a process of creating the necessary incentives
and environments to inspire employees to operate at their maximum potential.

Businesses develop motivational strategies based on motivational theories. There are two main types
of theories: content theory and process theory (Mullins & McLean, 2019). The content theory
focuses on determining what motivates employees and identifying employee needs and goals that
businesses can satisfy (Mullins & McLean, 2019). The content theory has three main models: Maslow's
hierarchy of needs model, Herzberg's two-factor theory, and McClelland's achievement motivation
theory. Specifically, Maslow's Hierarchy of Needs model is a hierarchy that matches different levels
of human needs (Mullins & McLean, 2019). According to McLeod (2018), there are five main levels in
Maslow's hierarchy of needs and these levels start from the most basic needs to the most advanced
needs. Maslow's levels of needs are understood in business as follows: Biological & physiological
needs (salaries, pay, friendly working environment, perks, etc); Safety needs (safe working
conditions, job benefits, job security, insurance, health facilities, etc); Social needs (friendly
supervision; professional links, connected work group, etc.); Esteem needs ( job title, high-status job,
feedback from the manager, etc); and Self-actualization needs (challenging job, opportunities for
creativity, achievement in work, advancement in the company, etc). According to Mullins & McLean
(2019), Herzberg's two-factor theory outlines that people are motivated by motivators and hygiene
factors. These two factors support each other to create great work motivation for people: motivation
promotes employee satisfaction and hygiene factors prevent job dissatisfaction. Hygiene factors
include extrinsic requirements like pay grades, job rules, and connections with peers. Motivational
factors in relation to job satisfaction. They address intrinsic needs such as achievement, recognition,
and growth. Employee contentment and career advancement are made possible by motivational
factors. According to Mullins & McLean (2019), McClelland's achievement motivation theory
outlines three needs that significantly influence an individual's behavior: power, affiliation, and
achievement. The need for power concerns people motivated by power, status, and control. The need
for affiliation concerns people who desire to bond and expand relationships. The need for
achievement is the need for some high-achievement motivated people. They want to excel to meet
standards and strive for success.

The process theory deals with how to create motivation. It is concerned with the process, direction,
and how to motivate employees (Mullins & McLean, 2019). There are three typical theories for
process theory: Expectancy theory – Victor Vroom; Equity theory – Stacy Adams and Goal theory –
Edwin Locke. According to Lee (2007), expectancy theory explains that people are motivated thanks
to three beliefs: If employees try their best, they will get high results (Expectancy); when they achieve
high results, they get rewarded (Instruentality) and the reward is of great value to themselves
(Valence). Mullins & McLean (2019) stated that equity theory outlines that employee motivation is
based on fairness. This means that employees expect their contributions (input) to be rewarded
(output). Equity theory outlines that it compares the employee's own input and output and that of
others. Goal theory refers to setting specific goals that will make it easier for people to achieve good
results. That goal is set from two sides, the organization, and the employees (Mullins & McLean, 2019).
There are five fundamentals to goal setting: clarity, challenge, commitment, feedback, and task
complexity (Mullins & McLean, 2019).
There are two typical motivational strategies for employees: financial and non-financial. Armstrong
and Taylor (2020) stated that financial strategies refer to rewards or incentives that are monetary
or measurable (pay, bonus, productivity-linked wage incentive, retirement benefits, profit-sharing,
stock options or co-partnership, etc.). According to Armstrong and Taylor (2020), non-financial
strategies focus on bringing psychological and emotional satisfaction to employees rather than
money (status opportunity, company culture, career advancement, job enrichment, job security,
recognition, etc).

The efforts of employees in the organization greatly affect the performance of the organization. The
more motivated the workforce, the greater the ability of the organization to achieve its goals.
According to Nguyen (2017), employee motivation has 5 impacts on organizational effectiveness. The
first impact is increased performance (Nguyen, 2017). When employees are motivated, they will try
to devote themselves and work hard. Therefore, the performance of employees and the company is
increased. Secondly, motivation will increase employee engagement (Nguyen, 2017). Today
companies are facing employee retention challenges, so creating motivation and a healthy working
environment will help increase the level of engagement between employees and the company.
Thirdly, motivated employees increase creativity, innovation, and problem-solving (Nguyen, 2017).
Because they're always looking for better ways to get things done, self-directed, and problem-solving.
Next, motivation also increases job satisfaction (Nguyen, 2017). Highly motivated employees also
reflect high levels of job satisfaction. More satisfied employees are more efficient, have higher levels
of productivity, and care more about what they're doing. Finally, motivation increases employee well-
being (Nguyen, 2017). Motivated employees show that they are extremely energetic, excited to work,
and have improved physical and mental health. In summary, motivation has a huge impact on
organizational performance. Increasing employee motivation in organizations is extremely
important.

VNG applies both financial and non-financial strategies to motivate employees. According to VNG's
annual report (2021), VNG's financial strategy is very clear and motivates employees. VNG's
employee compensation policy mentions salary and the average income of 23 million/person/month
(VNG, 2021). In addition, employees are entitled to a 13th month's salary on Lunar New Year. VNG's
employees are supported with allowances such as travel expenses, mobile expenses, etc. These
policies reflect VNG's use of Maslow's Hierarchy of Needs model and meet the needs about biological
& physiological needs of employees. In addition, VNG employees are entitled to health insurance and
occupational safety insurance policies. VNG organizes periodic health checks for employees. Thus,
VNG has also met the safety needs of employees. Regarding VNG's non-financial strategy, the company
focuses on building strong relationships between employees in the organization. They are all
reputable and connected. This shows that VNG has also satisfied the social needs of employees in the
business. The most prominent non-financial strategies of VNG are the promotion policy and training
policy. VNG always creates opportunities for development and promotion for each individual and has
issued many promotion policies such as personnel planning policy, personnel rotation policy,
appointment policy, etc (VNG, 2021). It's all based on employee ability, fairness, and transparency. In
addition, 100% of VNG's employees participate in professional skills training, technology training,
additional skills training, etc (VNG, 2021). According to VNG annual report (2021), VNG has built
programs to develop talent and create many development opportunities for employees such as VNG
Code Tour, VNG Tech Fresher (VTF), and Junior Game Designer. VNG believes that developing talents
and putting employees' self-expression needs first will bring many good values to the business. It
showed that VNG has met the highest demand in Maslow's Hierarchy of Needs model. In summary,
VNG has applied Maslow's Hierarchy of Needs model in both financial and non-financial strategies,
which satisfies the needs of employees and motivates them to deliver top performance.

VNG's motivational strategies are closely related to employee motivation and performance. Firstly,
VNG's motivational policies help increase employee satisfaction (Nguyen, 2017). The proof is that
97% of employees think VNG is a reliable place to work (Trong, 2023). The results of this survey show
that VNG is a good company in creating a professional, reliable working environment and bringing
satisfaction to its employees. Secondly, VNG's strategies help retain talent (Nguyen, 2017). The survey
results of GPTW (Global Agency on Workplace Culture, founded in the 1990s in the US) show that
94% of VNG employees feel proud when they tell others about the company (Trong, 2023). This can
be understood as employees feeling proud of their company and willing to promote the company to
others. VNG's motivational strategies not only help improve employee morale but also help retain
talented employees. Thirdly, VNG's motivational strategies add more motivation to employees
(Nguyen,2017). The proof is that VNG has won the title of "Best Workplace in Asia 2020" for 2
consecutive years by HR Asia Magazine (Van, 2020). With that title, VNG can motivate employees in
many different ways. It can increase employee pride and morale as they are part of an organization
that achieves this title. It can also strengthen employees' confidence in the company's quality and
commitment to employees. Finally, VNG strategies increase the company's performance (Nguyen,
2017). The evidence is that VNG's revenue in 2021 increased by 20.6% compared to 2020 (VNG,
2021). This shows that employee performance has grown very strongly. And it helps VNG achieve
good results in business activities. When the satisfaction, motivation, and engagement level of
employees is high, employees will perform better and bring high performance. VNG employees feel
appreciated and they can have more confidence to do better. As a result, employee performance can
be improved, which can lead to increased earnings for the company. In short, VNG's motivational
strategies are an important link to the company's performance. It affects the satisfaction, talent
retention, motivation, and performance of VNG.

The following is a proposal for VNG's motivational strategy to improve the company's performance.
First, VNG is voted by 97% as a reliable workplace, and 96% of employees rate "All employees are
fair in terms of opportunities and treatment", so VNG must always uphold fairness and transparency
in its financial and non-financial strategies (Trong, 2023). The VNG is doing a great job when it comes
to motivating employees financially and non-financially. However, 4% of employees feel that VNG is
unfair. Therefore, VNG needs to be fair to control the loss of motivation. Secondly, VNG must always
invest in building a modern working environment and corporate culture so that VNG can develop
further in the future. Because VNG has won the title "Great Place to Work 2022" (VNG, 2022) and the
title "Best Workplace in Asia 2020" for 2 consecutive years (Van, 2020). Maintaining the achievement
way will help VNG create more motivation for employees, increase its position in the market and
attract more talent. Google is the business from which VNG can learn how to maintain the title of "The
number 1 workplace in the world" for a long time. They invest in the environment, and the corporate
culture to promote the thinking ability, creativity, and motivation of employees. Therefore, VNG can
learn many things about building the working environment of a large company like Google. Finally,
VNG does not have many programs to satisfy the social needs of employees, so the event "VNG and a
day relax" is proposed for VNG. As a technology company, VNG employees have to work with
computers for a long time. This affects not only employee motivation but also health. The event "VNG
and a day relax" allows employees to invite their friends or relatives to join. At the event, employees
will be able to play team games, relax, make friends, etc. In particular, the event will not work but only
create a relaxing mention time after tiring working hours.
 2.2. Performance Management
Performance Management (PM) involves identifying, measuring, assessing, and developing the
performance of both individuals and groups to align performance with organizational goals (Aguinis,
2013). Three main purposes of performance management are strategic - achieving business goals;
administrative- providing information to make decisions about humans (salary, benefits, and
recognition programs); and development - the basis for developing employees' knowledge and skills
(Aguinis, 2013). There are two approaches to performance management: the traditional approach
and the continuous approach. According to O'Boyle (2013), the traditional approach is a top-down
process with a linear and static structure. If the company adopts this approach, employee
performance reviews take place once or twice a year (1 year or 6 months). During the meetings, the
manager shares his conclusions about the quality of the employee's performance against the
standards. The continuous approach is a continuous process throughout the year and employees
receive feedback from many different people, not just from the manager(Mullins & McLean, 2019).
The purpose of the continuous approach is to provide ongoing feedback that helps manage employee
performance effectively(Mullins & McLean, 2019).
VNG leaders use a continuous approach to performance management. According to VNG's annual
report (2021), managers all set goals for projects for the month, quarter, and year. Employees can set
goals for themselves and it makes it easier for employees to achieve higher performance. Besides,
VNG managers always follow up with employees, have regular conversations, and give regular
constructive feedback (VNG, 2021). This will help increase employee engagement, providing just-in-
time guidelines to make it easier for VNG employees to reach their goals. After receiving the feedback,
VNG staff can make new plans to complete the task better. Creating and publishing online games is an
area of VNG, so managers always follow up and give feedback to help designers get the best product
(VNG, 2020). If managers don't make contributions promptly, the final product will have a lot of
editing, be time-consuming, and impact performance. In summary, VNG has applied a continuous
approach to performance management. This is extremely suitable for a technology company like VNG.
It helps to increase employee engagement with the company, creating a civilized and healthy
company culture. The timely feedback of VNG managers does not change the creativity of employees
but only offers the best solutions based on employees' products (VNG, 2021). This not only helps
VNG's employees have more knowledge and skills but also helps them achieve high work
performance. And VNG can easily manage performance.
VNG's relationship-oriented leadership style can influence a company's performance management
and support continuous improvement. The relationship-oriented influences the company's
performance management. It relies on qualitative aspects to manage employee performance. To
manage performance, VNG leaders use access controls that emphasize rewards for employees' efforts
(Mullins & McLean, 2019). Firstly, it creates a favorable working environment for VNG's employees.
VNG's relationship-oriented leadership style emphasizes the relationship between members of the
organization, creating a comfortable working environment that supports interaction and information
sharing among members (VNG, 2021). This can help increase work efficiency and reduce employee
loneliness, stress, and anxiety, thereby positively affecting company performance. Secondly, VNG
receives a lot of input and feedback from employees. In an environment focused on continuous
improvement, need encouragement and support to share employees' ideas and receive feedback to
improve the company's processes and products. A relationship-oriented leadership style can help
ensure that employees feel reputable and motivated to share their ideas and provide input. This style
of employee encourages to contribute ideas and feedback, thereby helping VNG detect problems
quickly and continuously improve (VNG, 2021). Employee input can help a company create new
products and services, improve quality, increase productivity, and increase revenue. In summary,
VNG's relationship-oriented leadership style can help a company strengthen performance
management and support continuous improvement by creating a favorable working environment for
employees and encouraging opinions, and feedback from employees, and creating lasting
partnerships.
The following are recommendations to improve VNG's performance management. Firstly, according
to the analysis above, VNG's relationship-oriented leadership style positively affects the company's
performance management and supports continuous improvement. VNG should continue to effectively
exploit the benefits of this leadership style. However, VNG has to find a balance between focusing on
the relationship and focusing on the task. A leadership style that is too focused on relationships can
lead to distraction and failure to achieve the company's business goals. The evidence shows that VNG
did not achieve the revenue target set by the company, it only achieved 70% of the revenue compared
to the plan in 2020 (VNG, 2020). Therefore, VNG's leaders need to consider and create a work
environment that balances these factors to achieve the best performance in supporting the company's
continuous improvement. Moreover, VNG should apply effective technology. During the research
process, VNG has not yet seen the application of software to manage performance. Technology can be
used to improve performance management, such as Zoho People software designed to improve
employee performance with features that ensure HR processes are streamlined and improved
employee retention (Zoho People, nd). This technology helps measure performance more accurately
and enhances managers' ability to manage performance.
Assigning goals to your employees helps map out specific outcomes for them to strive for while
increasing flexibility and accountability. With Zoho People, you can set goals and see how each team
member is making progress against key results (Zoho People, n.d).

Figure 1: Setting goals on Zoho People

In addition, Zoho People will help managers measure employee progress (Zoho People, n.d). The
software also makes it easy to find the best employees for a given project. Zoho People provides
information on their strengths and weaknesses. As a result, employees can easily develop strengths
and improve weaknesses.
 Figure 2: Following performance of employees on Zoho People

According to Zoho People (n.d), Organizations can conduct assessments exactly the way they want.
Customize scheduled audits and processes that work for you. Self-assessment helps employees better
understand their work, while multi-level reviews help gather feedback from the people they work
with. This helps reduce unconscious management bias and makes evaluation more fair and
meaningful.

Figure 3: Feedback on Zoho People

Zoho People makes managing pay raises simple and efficient. Determine a budget and allocate
percentages for each team. Employees who know their hard work is recognized and valued will stick
around longer. Zoho People's integration with XoxoDay makes it easy for VNG managers to recognize
and reward employees.
 Figure 4: Reward on Zoho People

3. Conclusion
According to the information above, performance management and motivational strategies are
essential to the expansion and ongoing development of businesses, especially VNG. These strategies
can promote employees with creativity and enthusiasm, contributing to the success of the business.
The report provided recommendations for motivational strategies and performance management for
VNG. It will support VNG's continuous improvement.

4. Reference
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model. Library Review.
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Management Practice, 15th edition, Kogan Page.
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