MINISTRY OF EDUCATION AND TRAINING MINISTRY OF PLANNING AND INVESTMENT
CENTRAL INSTITUTE FOR ECONOMIC MANAGEMENT
PHAN MINH DUC EMPLOYEE MOTIVATION IN STATE-OWNED
ECONOMIC CORPORATIONS IN VIETNAM Major: Economic Management
Code: 9 34 04 10
SUMMARY OF DOCTORAL THESIS OF ECONOMICS HA NOI – 2018
This thesis has been completed at:
Central Institute for Economic Management
Scientific supervisors: Dr. Vo Tri Thanh Dr. Tran Thi Thanh Hong
Reviewer 1: Associate Prof.Dr. Nguyen Viet Vuong
Reviewer 2: Associate Prof.Dr. Mac Van Tien
Reviewer 3: Associate Prof.Dr. Bui Van Huyen
This thesis shall be defended in front of the Institute-level Thesis
Examination Council of Central Institute for Economic
Management at ….. ………………..on …………………….. 2018
This is also stored for referencing in :
- Central Institute for Economic Management library
- National Library, Hanoi
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INTRODUCTION
1. Rationale of the thesis topic
The importance of human resource development to the
national economic growth has been recognised widely. To fruitfully
utilise that resource for the development of the entrepreneurial
community, the practical management process needs to be
professionally implemented in all of the management phases,
including human resource planning, selecting, recruiting, motivating
the employees by orienting, training, developing, performance
appraising, compensating them and their career path nurturing.
With the huge potential and incomparable priorities on the
uses of the resources that the state-owned economic corporations
(SOCs) receive from the Government, the business performance
indicators have not been really satisfactory enough. Typically,
having around 490,000 employees recently, the after-income-tax
profits that the 8/10 of the SOCs (excluding PVN and Viettel) can
generate are of merely 15,000 billion VND. Thus, as per the
productivity, one employee of these 8 SOCs annually can only bring
about 30,612,244 VND in average. This cannot be compared to the
2016 profit generation of the private Vingroup corporation
employees (each of about 125,000,000 VND), so we do realise that
there are still chances to improve the productivity of the SOCs’
employees by motivating their working spirit toward their better
working performance.
Moreover, the 11th and 12th National Congresses of Viet Nam Communist Party have addressed the 3 strategic breakthrough
aspects of the period of 2011 – 2020: “(1) Building the socialism-
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oriented market mechanism with the core of establishing an equal
business environment and administration procedure reform; (2)
Fostering the development of the human resources, especially the
high quality ones, by fundamentally and extensively renovating the
national education, incorporating the human resource development
with the advances and applications of science and technology; (3)
Building an integrated system of infrastructure with some state-of-
the-art sites, focusing on transport and metropolitan areas”.
Therefore, the author has chosen the topic of Employee
motivation in state-owned economic corporations in Vietnam for
his doctorate thesis to help analyse the employee motivation process
in the Vietnam SOCs for a new and more suitable approach to be
proposed.
2. Objectives, meanings of researching the thesis topic
General research objective: Providing an intensive literature
review on motives and employee motivation; on which, the thesis
conducts the examination into the practical situations to propose
solutions to the improvements in Vietnam SOCs’ employee
motivation in either macro-economic or micro-economic
perspectives.
3. Structure of the thesis
Apart from the introduction, conclusion parts, list of
references and the appendices, the thesis has been presented in 4
major chapters of content, including:
Chapter 1 - Literature review on employee motivation in the
state-owned economic corporations
Chapter 2 - Theoretical foundation of employee motivation
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and governmental management of employee motivation in the state-
owned economic corporations
Chapter 3 - Status quo of employee motivation and
governmental management of employee motivation in the state-
owned economic corporations
Chapter 4 - Directions and solutions to employee motivation
and governmental management of employee motivation renovation
in the state-owned economic corporations in the upcoming time
CHAPTER 1. LITERATURE REVIEW ON EMPLOYEE
MOTIVATION IN THE STATE-OWNED ECONOMIC
CORPORATIONS
1.1 Literature review on employee motivation in the state-owned
economic corporations
1.1.1 Published researches abroad
On motives and employee motivation
Raymond N.Cheser (1998) has laid the American employee
motivation on the comparative perspectives for absorbing the
possitive influences from the Japanese business managers. This
research has shown that with the shift from traditional management
methods of the American manufacturers to the Japanese inherited
ones, the employees’ productivity has been improved dramatically.
Afterwards, Ovidiu-Iliuta Dobre (2013) has revealed the fact that in
the current world of open economies with many competitors and
competitive manoeuvres like today, the care that the companies has
put on the employee motivation is a strategically significant long-
term vision.
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On economic corporations and their employees
As for the biggest economy in the world, the giant industrial
economic corporations had become increasingly important as the
pillars of the economic growth since 1905 in the context of rights and
responsibilities being transferred to the businesses, and the institution
of stock exchange market, investment banks and the smooth
movement of capital development.
On governmental management of the economic corporations
In United States of America, the governmental interference
into the production and businesses of the corporations is obvious. In
France, on the other side, is the “invisibe reform”, which takes a long
time to take effects, and in China is the trial-and-error method in
managing the corporations.
On the roles of the government on the employee motivation
of the economic corporations
With the Baltic nations, the enforcement of the adult
employee training activities has been crucial to the adequate
formation of the pool of skilled labour. With the other European
developed countries, the policy focuses are on the application of
active or passive labour policies toward the employment issue in the
economy.
1.1.2 Published domestic researches
On motives and employee motivation
Dao Phu Quy (2010) has done a thorough research into the
hierarchy of needs of A.Maslow, which is widely recognised and
adopted in the economic field of study in general and the
management science in particular. Nguyen Van Hiep, Nguyen Thi
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Quynh (2014) have done 322 valid surveys in the FDI companies in
Dong Nai province, in which the authors have revealed the directly
affecting factors on the workers’ working motives in these types of
enterprises.
On economic corporations and their employees
Tran Dinh Thien and his counterparts (2014) have proved
the necessity of state-owned enterprise structural reform, especially
with the SOCs in Vietnam, because they are possessing huge number
of resources but being inefficient in their businesses. Nguyen
Khuong (2012), on the other side, has shown in his research the
contemporary characteristics of the SOCs with clear development
strategy recommendations.
On governmental management of the economic corporations
Tran Kim Hao and his counterparts (2015) have resulted in
some significant suggestions in their research, including: (i) change
people’s mindset on the economic corporations; (ii) eradicate the
policy discrimination between the economic corporations and the
other kinds of companies; (iii) enforce the adoption of market rules
in the establishment and development of the economic corporations
of all fields; (iv) readjust the economic corporations’ positions and
roles according to the new context; (v) apply the modern, world-class
organisational structure and management expertise in the economic
corporations; (vi) maintain the consistency of administrative control
over the economic corporations, regardless of ownership sources.
On the roles of the government on the employee motivation
of the economic corporations
Le Thi My Linh (2009) has proposed the diverse set of
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solutions to the small and medium enterprises of Vietnam on human
resources management, such as employee motivation-related
contents of issuing policies, strategies for human resource
development, employee training, career development, talent
management, performance appraisal, and corporate culture building.
Afterwards, Luu Duc Hai (2015) also came with valuable
recommendations, including: (i) redefine the high-quality human
resources and high-quality human resources development; (ii) assure
that the high-quality human resource is the breakthrough factor in
Central Party and Government’s perspectives; (iii) set a common list
of criteria in assessing high-quality human resources.
1.1.3 Unsolved issues in the realm of the thesis topic in the
published researches
The published researches have neither mentioned the
profound aspects of employee motivation, especially in the SOCs nor
stated the roles of motivation in developing the high-quality human
resources nor figured out the new and renovative employee
motivation model to bring about the valuable research conclusions
for the circumstances of Vietnam.
1.1.4 Focus of the thesis in solving issues through research
Theoretical model regarding the research approach to the
SOCs of Vietnam; Viewpoints on employee motivation through
policy making; Viewpoints of the labour towards the motivation
policies; Directions in overcoming the existed shortcomings of the
policy-making process and the SOCs' human resource management.
1.2 Directions in solving the research problems of the thesis
1.2.1 Research objectives and research questions of the thesis topic
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Research objectives: Researching and making clear the
theoretical issues and the typical situations in global employee
motivation to form the knowledge background as well as the
empirical lessons to the Vietnam legislators and the SOCs’ leaders;
Researching and making clear the practical situations of employee
motivation process in the SOCs of Vietnam to get a correct view of
the current issues for better analyses and suggestions for overcoming
the shortcomings and weaknesses in the upcoming time;
Incorporating the surveying and document-based methods to analyse
the data for policy recommendations to the governmental
management and corporations’ control over the human resources in
SOCs, heading for renovations in employee motivation process
therein.
Research questions: (1) What are the theoretical issues
regarding motives and motivation?; (2) How is the practical situation
of the governmental management of employee motivation in
Vietnam SOCs?; (3) What are the context, directions and solutions to
the renovation of SOCs' employee motivation process in Vietnam?
1.2.2 Research objects and scope of the thesis topic
The core objects of the research are in the following aspects:
Vietnam SOCs’ human resources management and employee
motivation process; SOCs’ employees, especially the office staffs
and the direct employees in producing and providing the
corporations’ services; the legislation authorities’ labour-policy
points of view; globally known employee motivation-centric human
resource management models and some chosen countries’
institutions and policies regarding the labour market.
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Scopes of research
Contents: The thesis concentrates on motives and employee
motivation (definitions, roles, methods, implementation models) in
all related domestic and international researches. Especially, the
research approaches the employee motivation issues through the
basis of governmental policies. Nevertheless, the practical situations
of employee motivation in Vietnam SOCs are also of high priority in
the thesis. Timing: The thesis is conducted in the years 2014-2017.
However, the practical situations shall be studied in the period of
2009 – 2017 because of the big milestone in pilot establishment,
organisation, operation and management of the Vietnam SOCs since
the promulgation of the Decree No.101/2009/ND-CP of the
Government. Spatial constraints: The SOCs, including parent
companies and member companies in the nation within the related
circumstances of Vietnam; governments and economic corporations
in the continents (Asia, Europe, Africa) for the empirical lessons to
Vietnam state governance.
1.2.3 Research approaches and methods
Research approach
The author has realised the significance of exactly determining
the subjects and objects of the employee motivation process. The
subjects can be the governments, corporations, and even the professional
associations. The objects, on the other side, are the employees of
Vietnam SOCs (almost are office staffs and direct employees in
providing services and products in the research).
Specific research methods
Secondary data collection: The thesis uses popular
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researching methods for working on the secondary sources of
documents that have been published (especially, the legal
documents), such as description, inductive and seductive analyses.
Primary data collection: The questionnaire is for the SOCs’
employees in the cities and provinces (mostly Hanoi and the northern
provinces of Vietnam). The sample size is 896. Duration of the
survey is 2 years, from 2016 to 2017. All collected data from the
survey sample are arranged and analysed manually or by the survey
instruments like Google Doc and the SPSS version 22. The detailed
results are presented in the Appendices of the thesis.
CHAPTER 2. THEORETICAL FOUNDATION OF EMPLOYEE
MOTIVATION AND GOVERNMENTAL MANAGEMENT OF
EMPLOYEE MOTIVATION IN THE STATE-OWNED
ECONOMIC CORPORATIONS
2.1 Briefs on the theoretical foundation of employee motivation
2.1.1 Working motives and motivating employees
Motive is a notion that conveys the reasons for people to
think and behave in some certain ways. Motive plays the role of
explaining the human beings’ actions.
The components of employees’ motivation
The employees’ motivation consists of 2 major parts:
intrinsic and extrinsic ones. The former fosters the employees to
work to satisfy the inner self rather than to meet the outside demands
of some definite results of the latter.
Methods of motivating the employees
Researches have shown that the effectiveness can be decided
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by 3 main factors: working capability; working environment and
working motives. Thus, the methods of motivating the employees are
also based on the requirements that these factors have set forth.
Assessing criteria of the employee motivation outcome
The hierarchy of needs of A.Maslow (1943) can be
considered one of the most widely accepted theories in explaining
the human beings’ motives in the academic world while having few
proving evidences. The popularity of this theory is unquestionable
with the clear and easy-to-use 5 steps of the proposed hierarchy of
A.Maslow. These are also the groups of criteria that help us evaluate
the employee motivation outcome in the SOCs of Vietnam. They are
classified into these below contents: Physiological factors (PH):
monthly/annual income, annual bonus package; working
environment; working infrastructure; Safety factors (SA): working
safety; long-term working position; Trade Union’s activities; Social
factors (SO): colleague relationship; employer relationship;
community connection; Self-esteem factors (ES): satisfaction with
the current working position; organisational appraisal and
recognition; colleagues’ respect; Self-actualisation factors (AC):
studying chances; promotion chances; profession suitability.
2.1.2 Typical theories on working motives and employee motivation
The hierarchy of needs of Abraham Maslow (1943):
considers human beings a crucial socio-economic object always with
the yearn for a happy life. The normal life does not only need and
stop at the physical needs but it also asks for futher mental needs to
be met, including freedom, love and being loved, creation, and
knowledge gathering. While the standards of living become higher,
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the ability to meet the first-tier demands at the bottom of the
hierarchy turns out to be much obvious, and as a consequence the
other higher demands shall definitely require to be satisfied as well.
Two-factor theory of Frederick Herzberg (1959): states that
the hygiene factors should be best tackled by establishing a suitable
mechanism for alleviating the negative feelings inside the
employees’ mind because only they can do that. The possible
solutions are arranged in a descending order of: company policies,
supervision, industrial relations, working conditions and colleague
relationship respectively.
Expectancy value motivation theory of David McClelland
(1961): each person, regardless of gender, culture or age, shall have
demands on achievement, affiliation and power due to their own
motives. Those incentives mostly depend on our culture and real-life
experiences.
Expectancy motivation theory of Victor Vroom (1964):
revolves around the 3 key factors: expectancy (Expectation),
instrumentality (Outcome) and valance (Reward).
Job characteristics theory of Hackman and Oldham (1980):
figures out 5 basic contents of job descriptions that lead to 3 positive
mental states, motivating the employees to work and contribute
better.
2.2 State-owned economic corporations’ employees and
stakeholders in motivating the employees in the state-owned
economic corporations
2.2.1 State-owned economic corporations and the classification of
employees in the state-owned economic corporations
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Decree No.101/2009/ND-CP of the Government, dated
November 2009, has set forth the direction for the establishment of
Vietnam SOCs on the basis of previously formed state-owned
companies and incorporations. Till January 2018, there are 10 SOCs
which are still in operation, including EVN, PVN, Vincomin, VNPT,
Vinatex, Viettel, Vinachem, VRG, Bao Viet and Petrolimex. The
employees in those SOCs can be categorised into different working
positions as below: Managing employees: include both strategic
managers and functional managers of the departments of the
corporations; Direct employees: include those who have high,
medium and low level of professional skills and knowledge due to
their own ability and accumulated certificates and/or degrees;
Indirect employees: include those who work in the offices and
functional departments without managing roles.
2.2.2 Roles of the entities in motivating the employees of the state-
owned economic corporations
The government with the role of the manger in motivating
SOCs’ employees; The government with the role of owner and
invester in motivating SOCs’ employees; Strategic managers with
the role of motivating SOCs’ employees; Functional managers with
the role of motivating SOCs’ employees; Socio-political
organisations and unions in the corporations with the role of
motivating SOCs’ employees.
2.3 Governmental management of state-owned economic
corporations’ employees motivation process
Governmental management of SOCs’ employees motivation
process should be understood as the act of the government in using
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instruments like legal documents, under-law documents, or the use of
human beings in the managing process to create a motivating
working environment for the employees’ creation, activeness and
contributions, heading towards better business performance results in
the corporations.
2.4 International experiences of some governments on the
economic corporations’ employee motivation and lessons learnt
for Vietnam
German case
- Rule-abiding and procedure-following characteristics have
been shown in the German policy on the labour market.
- At a certain economic development phase, the countries normally face with the aging population. At that time, a possible
solution that can be adopted is to complement the domestic human
resources with experienced, skilled and healthy labour from the
outside of the countries.
South African case
- Inequality in recruiting employees that bases on skin color, gender, religious faith or health conditions shall not be acceptable in
a modern and civilised labour market.
- The legislators should frequently supervise and revise the impacts of the policies regarding the labour market to find out the
unbeneficial groups of employees for better compensation.
Chinese case
- Reducing the scope of the businesses of the state-owned
enterprises is an inevitable tendency of development in the world.
- Centralised policy-making and planning system regarding
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labour issues hinders the development of the market greatly.
- The reforms in the labour-related policies can only be implemented if the system of the length of service is replaced by the
objective system of performance-based and competency-based
appraisal.
CHAPTER 3. STATUS QUO OF EMPLOYEE MOTIVATION
AND GOVERNMENTAL MANAGEMENT OF EMPLOYEE
MOTIVATION IN THE STATE-OWNED ECONOMIC
CORPORATIONS
3.1 Overview of the practical situation of labour and employee
motivation in the state-owned economic corporations in Vietnam
3.1.1 Overview of Vietnam state-owned economic corporations
Production: Heavy industry: EVN, Petrolimex, PVN,
Vinachem, Vinacomin and VRG; Service – Information – Finance:
Bao Viet, Viettel and VNPT; Light industry: Vinatex. Market share:
In Vietnam market, we can have a certain statement on the leading
roles of the SOCs in almost all of the main businesses that they are
working in. PVN, Viettel or VNPT are the ones with vast locations
of business with internationalised orientations. On the contrary, some
other corporations have not developed the international market up to
their potential. Finance: Viettel and PVN have emerged as the SOCs
with the most positive financial status among the Vietnam SOCs at
the moment. They have earned high revenue rates and high ratios of
profit/revenue throughout some recent years. Petrolimex, EVN and
Vinacomin, on the other side, are the ones with remarkably high
revenues but with low profit/revenue ratios, which are not up to their
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potential.
3.1.2 Practical situation of labour and employee deployment in the
Vietnam state-owned economic corporations
PVN, Viettel are the two SOCs in Vietnam with the highest
average income for the employees. On the contrary, VRG, Vinatex,
Petrolimex, Vinachem and Vinacomin are in the other end of the list
with the lowest levels of financial compensation to their staff. The
middle group, including EVN, VNPT and Bao Viet, are with the
employees’ average income of 12 – 20 million VND per month.
3.1.3 Practical situation of methods and models in employee
motivation of the Vietnam state-owned economic corporations
The methods of employee motivating in the SOCs have been
merely the right and adequate applications of labour-related laws and
the randomly self-generated ideas of the business leaders (senior and
middle), whereas the community of the employees is let to develop
naturally without any clear directions of the companies.
3.1.4 Practical situation of the roles of the entities in motivating the
employees in Vietnam state-owned economic corporations
The Government: mainly concentrates on the labour-market-
related policy-making role; The strategic leaders: mainly conduct
their orientation process through the subordinate
departments/divisions; The functional managers: mainly take the
instructions from the higher level of management into practice; The
socio-political organisations: mainly carry out their regulated
supervising roles ineffectively over the employee motivation process.
3.1.5 Assessment of employee motivation results of Vietnam state-
owned economic corporations
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On physiological needs; on safety needs; on social needs; on
self-esteem needs; on self-actualisation needs
3.2 Analysis of the pratical situation of governmental
management of employee motivation process in the Vietnam
state-owned economic corporations
3.2.1 Analysis of governmental policies on labour motivation in
Vietnam
Governmental policy on wage system and infrastructure:
Labour Code 2012; Law on cadres and civil servants, No.
22/2008/QH12; Law on officials, No.58/2010/QH12; Decision,
No.1055/QD-TTg; Decree, No.49/2013/ND-CP; Decree,
No.51/2016/ND-CP; Decision, No.58/2015/QD-TTg; Law on
Enterprises 2014; Decree, No.69/2014/ND-CP; Decree,
No.149/2013/ND-CP; Decree, No.101/2014/ND-CP; Law on thrift
practice and waste combat, No.44/2013/QH13; Law,
No.84/2015/QH13.
Governmental policy on job security, labour safety and
insurance: Labour Code 2012; Law on social insurance,
No.58/2014/QH13; Decision, No.2281/QD-TTg; Decision,
No.05/QD-TTg; Law on occupational safety and health,
No.84/2015/QH13; Circular, No.07/2016/TT-BLDTBXH; Decree,
No.39/2016/ND-CP; Decree, No.44/2016/ND-CP; Law,
No.46/2014/QH13; Decree, No.105/2014/ND-CP; Law on
employment, No.38/2013/QH13.
Governmental policy on relationship with colleagues,
employers and community: Law on Trade Union, No.12/2012/QH13;
Labour Code 2012; Decree, No.60/2013/ND-CP; Decree,
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No.91/2015/ND-CP; Law, No.69/2014/QH13.
Governmental policy on commendation and career path:
Law on emulation and commendation, No.15/2003/QH11; Decree,
No.91/2017/ND-CP; Decree, No.91/2015/ND-CP; Decree,
No.87/2015/ND-CP; Labour Code 2012.
Governmental policy on study chances for knowledge
improving and suitable deployment of human resources in terms of
profession and degree: Decision, No.707/QD-TTg; Decree,
No.69/2014/ND-CP; Labour Code 2012; Law on vocational
education, No.74/2014/QH13.
3.2.2 Analysis of employees’ assessment of motivation process of
the Vietnam state-owned economic corporations
Sample description: The research on practical situation of
employee motivation in Vietnam SOCs involves the online survey
with 896 staff who are working for 1 of the 10 SOCs.
Multivariate regression analysis of SOCs’ employee
motivation: The aim of this part is to conduct an anlysis of the
collected data from the SOCs’ employees, using the techniques of
multivariate regression to figure out the connection between
dependent variable, Employee Motivation Status (EMS) and other
independent variables. The EMS variable has been brought about
objectively by counting the average of the data that the employee
respondents have put into the form to describe the levels of
motivation that they are having. This way of calculation has helped
avoid the subjectivity in asking the repondents about their own ideas
on their levels of being motivated after what have been done by the
SOCs to them.
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At first, the credibility of the questions is measured through
the Cronbach’s Alpha (α) testing method, in which 21 credible tested
variables are kept. Then, the exploratory factor analysis (EFA) has
been deployed by using the Principal Component Analysis in
combination with Varimax rotation at the Eigenvalues 1. The
following multivariate regression model is used to analyse the
Vietnam SOCs’ employee motivation:
EMS = β0+ β1PS31+ β2SE12+ β3PS23+ β4SO21+ β5PS33+
β6ES32+ β7SE32+ β8SE33+ β9ES31+ εi
In which, β0, β1, β2, β3, β4, β5, β6, β7, β8, β9 are the constant regression coefficients; and εi is residual (a random independent variable, conformed to a standard distribution with an average of 0 and a constant variance of σ2).
After the SPSS analyses, we have R2 = 0,932; Sig. = 0,000 < 0,05 and all of the VIF <10. Therefore, we come up with a final formula below: EMS = 0.239PH31 + 0.056SA12 + 0.230PH23 ─ 0.025SO21 + 0.18PH33 + 0.208ES32 + 0.14SA32 + 0.185SA33 + 0.177ES31
employee motivation and 3.3 General assessment of governmental management of employee motivation in the Vietnam state-owned economic corporations 3.3.1 Achievements
Working environment with secured occupational safety; Job security has been maintained; Trade Unions’ activities are highly acknowledged; Privacy and private opinions of colleagues are respected 3.3.2 Shortcomings, weaknesses and causes
Employees’ worries about their total income;; Lack of
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creative working environment and recreational venues; Lack of determination in setting up the business strategies; Employees’ little concern about the highest levels of needs 3.3.3 Unsolved issues for the upcoming time
the enterprises;
The income of the SOCs’ employees needs to be improved; there is an urging need of a professional model in motivating the employees of there should be an exclusive mechanism with long-term vision for the employee motivation issues in the SOCs; there needs a clear career path to foster the personal development of the employees. .
CHAPTER 4. DIRECTIONS AND SOLUTIONS TO
EMPLOYEE MOTIVATION AND GOVERNMENTAL
MANAGEMENT OF EMPLOYEE MOTIVATION
RENOVATION IN THE STATE-OWNED ECONOMIC
CORPORATIONS IN THE UPCOMING TIME
4.1 The context of employee motivation in Vietnam state-owned
economic corporations and opportunities and challenges to the
process towards 2030
4.1.1 The context of Vietnam state-owned economic corporations
and potential development towards 2030
In about more than 10 years, we cannot ignore the possible
impacts of the Industry 4.0 on this core type of state-owned
businesses. With a vision toward 2030, the SOCs need to consider all
of the inside and outside challenges to their production and
businesses to overcome if they do not want to stay backward.
4.1.2 Forecasting the labour demands of Vietnam state-owned
economic corporations towards 2030
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As per calculated in the Table 4.1, if we assume that the
annual reduction in the number of employees is of 1.6% (between
2016 and 2015), we have the figures for 2020, 2025 and 2030
correspondingly. However, the quality of these employees will
increasingly go up for the governmental directions in educating the
high-quality human resources, so the motivating and compensating
tasks then will become much more difficult and complex rather than
becoming easier while the number has gone down.
Table 4.1 SOCs’ employee number forecast toward 2030
Unit: Person
No.
Corp.
2015
2016
2020
2025
2030
1
PVN
59,122
60,000
56,251
51,893
47.872
2
Petrolimex
26,638
26,366
24,719
22,803
21.037
3
Vinacomin
117,000
110,631
103,719
95,683
88.269
4
Viettel
25,000
25,835
24,221
22,344
20.613
5
VNPT
39,578
39,198
36,749
33,902
31.275
6
VRG
92,552
90,000
84,377
77,839
71.808
7
Vinatex
85,588
85,979
80,607
74,362
68.600
8
EVN
104,616
106,000
99,377
91,677
84.574
9
Bao Viet
5,467
5,618
5,267
4,859
4.482
10
Vinachem
27,000
23,909
22,415
20,678
19.076
Total
582.561
573,536
537,701
496,040
457,606
N.B. Data have been counted due to the current ratio between 2015 and 2016
(on the assumption of an equal annual reduction of 1.6%).
Source: Author’s compilation (2018)
4.1.3 Opportunities and challenges to the employee motivation
process in Vietnam state-owned economic corporations in the
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upcoming time
Opportunities/Challenges
On meeting physiological needs; on meeting safety needs; on
meeting social needs; on meeting self-esteem needs; on meeting self-
actualisation needs
4.1.4 Opportunities and challenges to the renovation of
governmental management of employee motivation in Vietnam
state-owned economic corporations in the upcoming time
Opportunities: A clear legal framework on labour and labour market has been formed with motivation-related contents for labour in general and the SOCs’ employees in particular; The SOCs are granted special priorities on the use of resources like land, finance, and human capital. This enables them to conduct a better employee motivating scheme than the other types of enterprises.
Challenges: The contents of legal framework on labour, especially on employee motivation process, have not been adequate enough; The criteria, standards on human resources management in general and on employee motivation in particular have not been up to the global standards and unsystematic; The context of Industry 4.0 and socio-economic situations are becoming more and more complicated; There has been no precedent on a professional employee-motivation-centric human resources management model in the SOCs. 4.2 Orientations and solutions to the employee motivation in Vietnam state-owned economic corporations in the upcoming time 4.2.1 Viewpoints and orientations of employee motivation in Vietnam state-owned economic corporations towards 2030
It is crucial to take a thorough review on the smart and state-
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of-the-art management models with the profound applications of information technology of the world and learn from them; The SOCs should be directed to make their human resource information management and announcement to be much more transparent internally. 4.2.2 Solutions to the employee motivation in Vietnam state-owned economic corporations towards 2025
Regarding physiological needs; regarding safety needs; regarding social needs; regarding self-esteem needs; regarding self- actualisation needs
4.3 Orientations and solutions to the renovation of governmental
management of employee motivation in Vietnam state-owned
economic corporations in the upcoming time
4.3.1 Viewpoints and goals of the renovation of governmental
management of employee motivation in Vietnam state-owned
economic corporations
Firstly, perfecting the model of management and supervision
on the SOCs is one of the key goals. Secondy, improving the
institution and legal framework on the organisation and management
of SOCs needs to be considered by the authorities. Thirdly,
renovating the wage and bonus mechanism in combination with
SOCs’ freedom in deciding their productivity-based and
performance-based payroll is the first step in establishing the market-
oriented labour usage in the SOCs. Fourthly, in parallel with
separating the state-owned capital representing function with the
governmental management of the Ministries, Industries is the
renovaiton of enterprises’ management system with more competent
boards of management. Last but not least, the improvement in
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management clarirty, including the transparency in personnel
activities, is the basis for all phases of the SOCs’ employee
motivation process.
4.3.2 Orientations of the renovation of governmental management
of employee motivation in Vietnam state-owned economic
corporations towards 2030
It is important to amend the policies regarding the payroll
and compensation to the employees; There needs to be regulations
and standards on human resource information announcing
procedure, especially the promotion opportunities in all of the SOCs;
It is critical to maintain the Trade Union-related regulations for a
more effective operation.
4.3.3 Solutions to the renovation, fulfillment of governmental
management of employee motivation in Vietnam state-owned
economic corporations towards 2025
- Period of 2018 – 2020: renovating the labour-related policy system, regarding the creative working environment arrangement,
modern working facilities and employees’ rights of privacy.
- Period of 2021 – 2025: renovating the labour-related policy system, focusing on Trade Unions’ activities, recreational venue
setting, working environment with good colleague relationship,
annual compensation package like summer travelling, work safety
equipments and the designation of determined and experienced
leaders of business.
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RECOMMENDATIONS AND CONCLUSION
The thesis has achieved the following results:
First, it has systematised the theoretical foundation of
working motives and working motivation.
Second, it has done a thorough research on practical lessons
of labour-related institution in 3 typical countries globally.
Third, it has done a practical research on the circumstances
of a new issue of employee motivation in current 10 Vietnam SOCs.
Fourth, it has revealed the practical situations of Vietnam
SOCs’ production and businesses in the new context.
Fifth, it has come to a renovated employee-motivation model
for Vietnam SOCs, focusing on 3 major groups of influencing
factors.
About the future research intentions, the author has seen the
existence of some limitations like lacking of researching resources,
knowledge and experiences, which have hindered the testing and
assessing in a wider range on the SOCs’ cases. Within a very limited
time of study, this thesis cannot avoid having mistakes and errors, so
the author would be very grateful if the dear readers could be kind
enough to give out valuable comments for the improvements in the
upcoming researches./.
PUBLICATIONS OF THE AUTHOR 1. Phan Minh Duc, 2014. Human management studies and the encouragement of laborers in organizations and companies. Magazine of Political theories and Communication, Issue 3/2014, pp. 37-39. 2. Phan Minh Duc, 2016. Employee motivation system: a case study of Alexkor and Eskom enterprises (South Africa). Review of Africa and Middle East studies, Issue 10 (134), pp. 55-60.
3. Duong Ngoc Anh, Phan Minh Duc, 2017. Social insurance from the labour motivational perspectives: German experiences and lessons for Vietnam. Labour and Social Affairs review, Issue 553, pp. 29-31. 4. Phan Minh Duc, 2017. Govermental policies towards
labour motivation in China and South Korea: policy suggestions to Vietnam. Asia – Pacific Economic Review, Issue 500, pp. 44-46.
5. Phan Minh Duc, 2017. Employee motivation in German, Chinese and Malaysian corporations: lessons to Vietnam. Journal of Human resource development, Issue 1(52), pp. 53-60. 6. Phan Minh Duc, 2017. Employee motivation
in state-owned corporations of Vietnam: issues to be handled. Journal of Economics and Business Administration, Issue 3, pp. 58-65.
7. Phan Minh Duc, 2017. Labour market policies in Germany, South Africa and Malaysia: lessons to Vietnam. Vietnam Journal of Social science manpower, Issue 10 (53), pp. 107-116.
8. Phan Minh Duc, Duong Ngoc Anh, 2017. Business operations of Vietnam state-owned corporations in the context of the Industry 4.0. Conference proceeding – Quy Nhon University 11/2017, Ho Chi Minh city Economics Publishing House, pp.126-134.
9. Phan Minh Duc, Duong Ngoc Anh, 2018. Constructing Vietnamese State-owned Corporations’ Employee Motivation Model in the Era of Industry 4.0. International Review of Management and Business Research, Vol. 7, Issue 1, pp.94-101.
10. Phan Minh Duc, 2018. Below-standard labour in the sharing economy’s enterprises: case of Vietnam. Journal of Finance and Business Administration, Volume 9 (3/2018), pp. 52-59.
11. Phan Minh Duc, 2018. Status quo of the labour safety and hygiene in the state-owned economic corporations and the policy implications. Labour and Social Affairs review, Issue 572, pp. 52-54.
