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GRADUATION THESIS Major: International Business Administration ESTABLISHING A PAY STRUCTURE TO IMPROVE EMPLOYEE ENGAGEMENT AT KIM QUY LIMITED LIABILITY COMPANY ThiNganHang.com ThiNganHang.com
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Table of Contents ACKNOWLEDGEMENT ................................................................................................i ABSTRACT .....................................................................................................................ii LIST OF ABBREVIATION .......................................................................................... iii LIST OF TABLE AND FIGURE ...................................................................................iv CHAPTER 1: INTRODUCTION ....................................................................................1 1.1. Research background:............................................................................................1 1.2. Research objectives ...............................................................................................2 1.3. Research questions.................................................................................................3 1.4. Scope of research ...................................................................................................3 1.5. Structure of the thesis: ...........................................................................................4 CHAPTER 2: LITERATURE REVIEW .........................................................................5 2.1. Overview................................................................................................................5 2.2. Definitions of a pay structure ................................................................................5 2.3. The role of pay structure........................................................................................7 2.3.1. Improving employee engagement and attracting talents.................................7 2.3.2. Motivating and boosting individual and group performance ..........................7 2.4. Factors affecting pay structure...............................................................................8 2.4.1. Legal requirements ..........................................................................................9 2.4.2. Market forces.................................................................................................10 ThiNganHang.com2.5. Types of pay.........................................................................................................2.4.3. Organizational goal .......................................................................................2.5.1. Pay for individual performance.....................................................................101212 2.5.2. Pay for group performance............................................................................15 2.5.3. Pay for organizational performance ..............................................................16 2.6. Establishing a pay structure .................................................................................20 2.6.1. Building up a Job structure............................................................................21 ThiNganHang.com
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2.6.2. Determining Pay-level...................................................................................25 2.7. Requirements of a good pay structure .................................................................29 CHAPTER 3: METHODOLOGY .................................................................................31 3.1. Research methodology.........................................................................................31 3.2. Selecting sample ..................................................................................................32 3.3. Instrumentation ....................................................................................................32 3.3.1. Survey and questionnaire ..............................................................................32 3.3.2. Observation ...................................................................................................33 3.3.3. Unstructured interviewing.............................................................................34 3.4. Data collection .....................................................................................................35 3.5. Method of analysis...............................................................................................36 CHAPTER 4: DATA ANALYSIS ................................................................................37 4.1. Overview of Kim Quy Limited Liability Company ............................................37 4.1.1. General information ......................................................................................37 4.1.2. The organizational structure..........................................................................37 4.1.3. Business characteristics.................................................................................39 4.1.4. Financial statement of Kim Quy in 2013 and 2014 ......................................40 4.1.5. Human resource at Kim Quy Limited Liability Company............................40 4.2. Designing a pay structure at Kim Quy Limited Liability Company ...................42 4.2.1. Establishing a job structure ...........................................................................42 4.2.2. Determining pay-level...................................................................................43 4.3. Assessments .........................................................................................................48 ThiNganHang.com4.4. Analyzing data .....................................................................................................49 4.4.1. The impact pay structure on employees’ satisfaction ...................................49 4.4.2. Impact of pay structure on employees’ thoughts and actions .......................51 CHAPTER 5: RECOMMENDATION AND CONCLUSION .....................................53 5.1. Recommendation .................................................................................................53 5.1.1 Recommendations to motivate employees.....................................................53 5.1.2. Recommendation to improve the quality of pay structure ............................54 ThiNganHang.com
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5.2. Conclusion ...........................................................................................................58 5.3. Limitation of the thesis ........................................................................................59 REFERENCE .................................................................................................................60 Appendix 1: The first part of the survey. .......................................................................62 Appendix 2: The second part of the survey ...................................................................63 Appendix 3: Kim Quy’s financial statement in 2013 and 2014.....................................64 Appendix 4: Kim Quy’s classifying standards for recruiting employees. .....................65 ThiNganHang.com ThiNganHang.com
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ACKNOWLEDGEMENT This graduation thesis is the result of thirteen weeks of research and writing during the spring of 2015. It has been an interesting and learning experience. In fulfilling this thesis, I would like to give my special thanks to many people for their significant help, contribution, and recommendations during my writing process. First and foremost, special mentions and grateful thanks must go to Dr. Nguyen The Anh, my supervisor at Hanoi Foreign Trade University. With his master knowledge and experience in writing thesis, he has wholeheartedly helped me in writing this thesis. I could not have been able to complete this thesis without his positive suggestions and guidance. Secondly, I want to thank all the managers and staffs of Kim Quy Company, for their cooperation that helped and inspired me in writing. Thirdly, I would also like to give my heartfelt thanks to the authors who provided me with valuable books for my thesis. My appreciation is to my family and my friends for their supports and encouragements. Gratefulness is to the readers also, whose feedback will help much in improving the thesis. Hanoi, April 2013 ThiNganHang.comChu Quoc Cong i ThiNganHang.com
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ABSTRACT The purpose of the thesis is to evaluate the pay structure and discuss the impact of this system to the thoughts and actions of employees at Kim Quy Limited Liability Company. After clarifying the insights of the problem, the thesis will aim at generating solutions for the current issues at Kim Quy Limited Liability Company which are seasonal labors and employee engagement. The method of research in the thesis is examining survey and questionnaire to find out the causes of the problems. From that point of view, the researcher can give out suggestions and recommendations for the firm to adjust their pay structure. The graduation project represents the research on pay structure of Kim Quy Limited Liability Company from 2013 to 2014. The result of this work may help boosting the quality of the employees as well as company’s profit, it also broadens researcher’s mind about human resource management and the impact of human resource management to small and medium entrepreneurs. ThiNganHang.com ii ThiNganHang.com
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LIST OF ABBREVIATION ESOP: Employee stock ownership plan Kim Quy Co., Ltd: Kim Quy Limited Liability Company ThiNganHang.com iii ThiNganHang.com
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