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LM 2.1
LM 2.1
LM 2.1
INTRODUCTION
A. Theoretical
1. Definition of motivation
As David and Anderzej state (2010), motivation becomes an intellectual way of reaching
conclusions for specific goals and thereby initiating and monitoring them. In the
workplace, workers are considered according to pre-existing assessments and
requirements. The evaluations that come from these reviews have the potential to
stimulate various emotions in employees, thereby affecting their job satisfaction levels.
Overly positive feedback from employees can indicate employee satisfaction, but low
employee ratings can mean dissatisfaction. Employee motivation can come from
external factors (e.g., allowances for good performance) or internal factors, like
someone's desire to continuously improve themselves.
2. Theories of motivation
Maslow determined that human motivation comes from five basic needs: will be
classified into physiological types (water, food, shelter, sleep), safety and security
( work, housing, health), belonging (family, friends, community), self-esteem (respect,
status) and self-actualization (realization of abilities and potential ). As explained by
Sahito and Vaisanen (2017), people's needs can continuously change as they constantly
evolve in their lives.
b, Herzberg’s Two-Factor Theory
Motivational goal setting theory was first introduced in the early 1960s by famous
cognitive psychologist Edwin Locke. From this perspective, there is a tendency toward
more precise and clear goals that provide direction for an individual's efforts to
accomplish a task. Ambitious but achievable goals can keep employees motivated and
actually improve their performance levels; however, the goals will be favorable as long
as the employee and the organization can understand and support each other. This
suggests that managers must be able to identify specific goals as well as aspirational
goals and, therefore, employees need to be involved in the goal-setting process. When
individuals perceive that society's goals are their own goals, they will not hesitate to
participate and make efforts toward these goals (Saari and Judge, 2004).
Money here is a translation word that means financial rewards given by organizations to
motivate and improve employee performance. Examples of incentives are salary
increases, profit sharing, stock options, individual and collective awards, performance-
based pay, vacation and leave payments and more. Successful monetary incentive
programs support organizational goals and policies, encouraging equitable and
consistent delivery of benefits (Groysberg, 2021). The goal is to achieve the desired
level of employee satisfaction, job satisfaction, and productivity by monetary and non-
monetary means (Pfeiffer & Velthuis, 2009).
Not only are the salary and bonuses, Samsung Vietnamers gets a matter of figures but it
is the substance that brings up the workforce and improves their lives at the same time.
Samsung to pay the suitable salary to its workforces in Vietnam according to what
employees contributed and the skills they used in. According to Anh (2024), a software
development engineer earns an average of $96,000 yearly and senior software engineer,
on the other hand, earns up to $135,000 annually. Therefore, he/she can be sure that their
efforts are being appreciated and their salary is truly justified. Additionally, Samsung
Vietnam year-end bonus serves as psychological stimulus for employees to experience
intense competition with each other in a quest for excellence in their jobs. Being the
company that offers employees a $13,265 bonus for their excellent performance, on
average, with senior software engineers reaching an average of $23,750 per year, the
amount is real to the top executives for their outstanding performances. Namely the
NQDC plan that Fidelity explained back in 2017 serves us as a backbone at our
executive benefits program. The HCE (highly compensated employees) management
plan is reserved for a group of privileged management and superlative employees
(HCEs). It is an evident proof that we highly value expertise and excellence and reward
such attributes. Besides his 401(k) plan, the NQDC Plan enhances your ability to
skillfully control the level of your tax liability now, while at the same time offering you
options to increase your savings for retirement or address the needs arising in a short
time. For each of our employees, Samsung offers the ability to make up to a certain limit
of the regular contributions, with which a large part of the retirement savings can be
provided, guaranteed by an overall feeling of loyalty and confidence among the
workforce. Besides, according to Samsung Vietnam, the company would be proud to
contribute to the education of community members. Employees become eligible for the
educational assistance programs if they contribute to the Samsung Money program with
SoFi to cover student loans or the Parent PLUS loans. In addition, they are reimbursed
for educational tuition expenses or professional certifications. The employees will have
their expanded and professional knowledge with the help skills of these benefits.
(Samsung, n.d).
The living condition of employees at the Samsung Vietnam factory is magnified by the
provision of financial benefits plus a series of amenities and welfare provisions which
will have a positive impact on their well-being. The company sets up a complete
execution of competitive salary structure as well as tenure-based fixed salaries. As stated
by Tien & Dana (2020), $300 USD per month is roughly the monthly salary for
employees directly involved in production, with this amount modified depending on
experience and performance level. The Samsung Viet Nam company offers also the
overtime pay - 150% and 200% of the hourly income for the regular days' overtime and
for the weekends' work.
Along with fixed salaries, Samsung Vietnam employees can also contribute their
earnings towards benefits through different bonus plans. Their proposal will be paid with
a given money if the idea is really successful. What is important should be mentioned is
that the company provides attracting bonuses for its employees such as monthly salary
but in Lunar New Year holiday it is 100%, Tet holiday gifts, and rewards for long-term
service and exceptional performance during the year.
Non-monetary remunerations are not cash payouts given to workers for their excellent
performance while being loyal and dedicated to the business. This is because such
awards are highly esteemed as they indicate acknowledgment, appreciation, and the
essence of success. Mayeswood (2006) says that in most cases non-financial rewards
exceed financial rewards in appreciation because they may fill up the employees' needs
for respect and recognition. In the opinion of Aguinis, Joo and Gottfredson (2013), such
awards boast the strongest morale raising effect among all levers of employee
engagement. Nelson (1996) states that non-monetary rewards have a strong link with job
performance and recognition by the supervisor is the most potent motivating factor
among the non-monetary tools.
The life at Samsung Vietnam is orchestrated with many non-monetary benefits that
provide for better quality of life and raise employee satisfaction hugely. The firm's very
appealing PTO time is 20 days a year that goes up with tenure also includes payment of
holidays, which is a benefit to its employees. Employees can also exchange their unused
PTO days for the payment if required. New parents have up to 12 weeks of fully paid
parental leave, which is highly valuable timing associated with such an important life
event. Besides, Samsung Vietnam offers the employees amazing discounts for Samsung
products and services through the Employee Offer Program, improves the highly-
demanding work environment with casual dressing days and provides no cost mobile
phones. Apart from the health benefits, the company added transportation and commuter
benefits that made the employees relieve their financial burden from commuting (Tien &
Dana, 2020).
As one of the determinants, Samsung also provides educational reimbursements on
employees’ tuition and certification fees that are suitable for them to improve their skills
and knowledge, meanwhile. Health and wellness will partly depend on the available
insurance plans for health care, dental care, and vision. Samsung-provided housekeeping
is equipped with amenities of recreation centers, libraries and dining facilities among
others hence the quality of life of workers living in the dormitory is improved (Samsung,
2018). Working closely with Samsung Vietnam and having open communication and
active participation, the company aims to create an enjoyable and collaborative
atmosphere. The employees’ career advancement is aided through a variety of programs
on the organization’s development and mentoring opportunities that ensure there are
clear paths for employees to follow. Such a lasting and multifaceted non-monetary
rewards connotes the dedication of Samsung Vietnam to building a positive and
motivating working environment, therefore, Samsung Vietnam becomes a more
attractive place for people to work in.
1.3 The existing difficulties confronting Samsung and their potential origins
associated with both financial and non-financial incentives will be rephrased.
Samsung's strategy window show financial encouragement expressed through the reward
paid for performance by linking positions and outcomes. Consequently, using financial
incentives as only aids faces difficulties. However, even if financial metrics still stay,
such as revenue and profit, their overuse may hide other important things such as
creativity and individual self-reliance. The employees will be in a situation to rush on
the goals without keeping in mind the quality and innovation that eventually could harm
the long time growth and sustainability (Miner, 2005).
a. Intrinsic Motivation
An intrinsic motivation (IM) denotes it as a more desirable type of engagement with the
action that is self-satisfied or joyful. The core characteristic of IM, as an intrinsic
motivating factor, is its independence from the result, or the behavior outcome itself.
Whereas traditionally the means and the end had been seen as two separate issues, the
idea is that here they become one and the same. Engrossed in what is fun and natural, the
employee can be seen frolicking at the playground without a purpose in mind that is
refreshing (Lisa Legault, 2016).
The value of Intrinsic motivational strategies in achieving the type of workplace that
inspires people, facilitates their professional growth, and promotes job satisfaction is
without question. These programs can be patterned after C-Lab, launched by Samsung
and aimed to enable staff members to submit and develop ideas without needing it to be
first recommended by higher position staff . Such an action in addition to being
innovative but also aids employees in achieving independence in their roles and
therefore they feel motivated by this leading to higher job satisfaction and internal
motivation. Also, providing a learning experience not selected by others through
workshops, seminars, and online wide range of courses make upgrading their skills
possible for employees so that their career growth will be promoted. Setting the clear
career paths and having regularly an open discussion about individual career goals
releases the concept of career advancement which appears following only employee
performance and skills, resulting in the sense of achievement which is a key trigger of
employee commitment. Furthermore, creating a visible and impressive recognition
system, for example, Employee of the Month awards and peer recognition platforms
including "U r Awesome", will guarantee that individuals' work will be always
appreciated and this will eventually enhance the morale of the people. An established
Voice of Employee (VOE) system, which assembles and acts on employee ideas, will
help employees to feel heard and appreciated, boosting their morale. This involves
following up suggestions and providing timely announcements based on their feedback,
thus ensuring creation of emotionally engaging environment in which intrinsic
motivation is the key driver (Jen, n.d).
b. Extrinsic Motivation
According to Lisa Legault (2016), extrinsic motivation (EM) involves behavior driven
by the pursuit of an outcome that is separate from the action itself. In essence, EM is
characterized by its instrumental nature, where the behavior is performed with the aim of
achieving a specific external reward or consequence. For example, a teenager may
engage in household chores like washing dishes to earn an allowance. Similarly, a
student may study diligently for a test in hopes of obtaining a high grade. Extrinsic
motivation encompasses a spectrum ranging from purely external motivations, such as
completing chores for a reward, to entirely internal motivations, such as participating in
eco-friendly practices due to personal beliefs about environmental responsibility.
As Vroom argues, valence stimulation is not limited to simple utility but also
includes conveying the attractiveness and desirability of the expected outcome
(Vroom, 1964). With the need for a workforce with diverse aspirations, Samsung
needs to strive to make organizational goals an integral aspect of their personal
lives, making their work meaningful. means. As a world leader in the consumer
electronics industry, Samsung goes beyond and offers focused career progression
pathways, recognition initiatives and upskilling opportunities for employees so that
they feel empowered and the overall purpose of the company is maintained among
employees (Ilgen, Nebeker & Pritchard, 1981). Samsung builds a culture in which
employees' positive contributions are recognized and appreciated, and employees
feel they belong to the same family, forming a sense of collective intelligence.
Instrumentality:
Expectancy:
Samsung Vietnam must have full confidence in its established strategy for performance
management and continuous improvement to address its unique challenges. Quality
management stands at the heart of Samsung Vietnam's policies. To enhance the existing
quality assurance protocols and ISO-certified systems, Samsung should foster a culture
that champions excellence throughout the organization. This involves empowering
employees to define quality standards and processes, including implementing measures
like the "Line Stop" system to halt production if necessary. By prioritizing quality and
enforcing a zero-defect policy, Samsung instills a commitment to delivering top-tier
products to consumers.
Furthermore, Samsung Vietnam should dedicate significant resources to employee
education and training programs. Strengthening these programs and utilizing technology
for global knowledge sharing will ensure that employees possess the skills and
knowledge needed to drive innovation and performance. This encompasses technical
training, leadership development, and fostering cooperation and teamwork among staff.
Moreover, ensuring workplace safety and compliance with labor laws is imperative.
Recent revelations underscore the importance of addressing employee health and safety
concerns. Samsung must collaborate closely with governmental authorities and
international agencies to rectify existing shortcomings and implement robust
occupational safety and health procedures. This includes providing protected working
hours, adequate break periods, and comprehensive hygiene training, particularly for
high-risk employees.
Moreover, Samsung Vietnam needs a functioning system that will help to track the
progress of its performance management initiatives by establishing specific metrics and
key performance indicators (KPI). This includes continuous monitoring of main quality
indicators such as customers’ satisfactions, defect rates, and ISO 9001 compliance
standards. In addition to the above, the management should set objectives to upskill its
employees and determine the career path of employees, track workplace safety metrics,
and establish performance goals that are consistent with the strategic goals of Samsung.
Through use of these strategies and metrics, Samsung Vietnam could develop more and
more, make sure the collectively satisfied employees, and still remain as a leader in the
technology sector with positive influences on the economy.
Samsung's effective pricing strategy, part of its CRM tactics, offers products across
various price points to accommodate different budgets. Initially, Samsung uses a
"skimming" pricing strategy in its marketing, setting high prices for new products to
attract high-spending customers and quickly recoup investments. Prices are then
gradually lowered to appeal to other segments. CRM is crucial for Samsung, helping it
identify and understand customer needs through data analysis. This allows for
personalized marketing and services, enhancing customer satisfaction and loyalty. CRM
also optimizes customer segmentation, providing insights for better sales decisions and
improving workforce productivity. Overall, CRM is integral to Samsung’s strategy,
strengthening customer relationships and maintaining competitiveness in dynamic
markets.
A key factor underpinning Samsung's strategy is their focus on human capital. The
employer creates employee growth opportunities by way of well furnished training and
provision of sophisticated equipment and tools to them (Armstrong and Baron, 2005).
Such a staff produces well-qualified employee corps that is ready to introduce new
technologies and produce innovative results in a fast-moving economic environment.
Mostly, the Samsung company uses working together as well as cross-functional
cooperation, it can draw on each other knowledge and expertise and solve challenging
situations. efforts such as stringent quality standards and ongoing process enhancements
serve to provide Samsung with a flexible and robust manufacturing system that
consistently leads to superior product quality.
The role of providing an open space for discussion and feedback between the
employees and management, in context, is essential. SAP SuccessFactors makes it
possible by giving space for open discussions, encouraging the organizations'
openness, transparency and intertechnologiness. Promote SAP SuccessFactors
integration is rather than purely a technological upgrade; Samsung is showing now
its readiness in tackling the challenges of the digital age with resilience.
III. Conclusion
The paper addresses Samsung Electronics Vietnam (SEV) 's current challenges
and their underlying causes, as well as proposed solutions for the company's
growth. It covers SEV's case study on performance management, motivating
approaches, performance evaluation, and continuous improvement. These
insights may contribute to the company's future growth and sustainability.
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