THAI NGUYEN UNIVERSITY SOUTHERN LUZON STATE UNIVERSITY

Socialist Republic of Vietnam Republic of the Philippines

CUSTOMER PERCEPTION ONEMPLOYEE PERFORMANCE O

AT PROVINCIAL PARTY OFFICE OF HAI DUONG PROVINCE

AS A BASIC FOR SERVICE IMPROVEMENT

A research proposal for the Degree

Master of Business Administration

By

NGUYEN VIET HAI – BENNY

June, 2017
ACKNOWLEDGEMENT

DEDICATION

TABLE OF CONTENTS

LIST OF TABLES

LIST OF FIGURES

ABSTRACT
 CHAPTER I - INTRODUCTION

1.1. Background of the study

Hai Duong province is located in the Red River delta, bordered by 6 provinces

and cities: Bac Ninh, Bac Giang, Quang Ninh, Hai Phong, Thai Binh and Hung Yen.

The road, railway, and waterway transport system is reasonably distributed. There are

many important national traffic routes, such as 5, 18, 183 and provincial and district

roads have been upgraded. It is very convenient for trading and exchanging with the

outside (Hai Duong General Statistics Office)

Hai Duong is located in the tropical monsoon climate, divided into four distinct

seasons (spring, summer, autumn and winter). Average annual rainfall of 1,300 to 1,700

mm. The average temperature is 23.30C; Number of sunshine hours in 1,524 hours;

Relative humidity averages 85 - 87%. Climate weather is favorable for agricultural

production, including food crops, food crops and fruit crops, especially winter-spring

vegetables.

Hai Duong has a natural area of 1,662 km2, divided into two regions: the hilly

and the lowlands. The mountainous area is located in the north of the province,

occupying 11% of the natural area of 13 communes in Chi Linh district and 18

communes in Kinh Mon district. Is a low hilly area suitable for growing fruit trees,

timber trees and short-term industrial plants. The remaining plains account for 89% of

the natural area due to siltation of Thai Binh river, fertile soil suitable for many crops,

producing many crops in the year.

In order to support the industrialization process in Hai Duong, the provincial

government makes sure of sufficient provision of power, medicaiton, bank services,

and other infrastucture to attract tourists, domestic and foreign investors to Hai Duong.
 About economic growth, in the period of 2006 - 2010, Hai Duong province's gross

domestic product (1994 prices) increased quite high, with an average of 9.8% per year.

But still lower than the average increase of 10.9% per year for the period 2001-2005.

The main reason for the impact of the economic downturn and the global financial

crisis started in late 2008 and peaked in the first quarter of 2009. Accordingly, the GDP

of the province in 2009 only reached a low increase (5.9%) over many years. In 2010,

the province's GDP was estimated at 13,450 billion VND, 1.6 times more than 2005.

The province's gross domestic product value per square kilometer (at constant 1994

prices) reached 8.15 billion VND (nationwide 1.66 billion VND). The total provincial

output per capita (real price) reached 17.9 million VND (nationwide 22.5 million

VND).

According to the economic sector, the fastest growth is in the foreign-invested

sector followed by the private sector. These two regions are also likely to recover faster

than the general economy. The growth of the state sector is not only lower than the

average but tends to decrease. Private sector is always the region with the highest

contribution (about 45%) in the increase

By industry, industry and construction contribute the most to overall growth.

Except for 2009 affected by the global financial crisis and economic recession, industry

and construction always achieved double digit growth and contributed to the overall

economic growth of over 50%. While agricultural sector's contribution to overall

growth has been declining, industry and services are gradually increasing between 2006

and 2010, but the pace of change is slow.

The relatively high growth rate of the economy in general and the industry in

particular, together with the high proportion of GDP, show that the contribution of

industry to growth plays a very important role. However, because the economy of Hai
Duong has a low starting point, the quality of growth needs to pay special attention to

meet the requirements of rapid and sustainable development.

Human resources are always considered as important advantages for economic

development of Hai Duong in the period of 2006-2010 and the following years. The

structure of labor reflects the level of human resources and the process of

industrialization of the province.

Due to the good economic growth of Hai Duong, the implementation of poverty

reduction programs, encouraging individuals and households to produce good business,

maintain and diversify their industries, create more jobs. Refreshing the living standard

of people is constantly improved and improved over the years. The rising living

standards are factors that influence the demand for consumption increase, stimulate

investment in production development. As incomes increase, the demand for

investment will increase, economic growth and income increase have a positive impact

on private investment, creating an important effect in the development and expansion

of production and business. Economic development of the province.

According to the theory of NLCT at the macro level, productivity is the most

significant of NLCT. At the provincial level, labor productivity shows productive

performance, which is one of the factors reflecting the business environment, NLCT of

that province. Labor productivity (at constant prices) is low, reflecting poor production

quality and efficiency, and living standard will be less improved. In contrast, high labor

productivity with reasonable incremental capital growth rate (ICOR) is a fundamental

measure of productivity and business growth as well as the quality of growth of a sector

or locality.

Overall, Hai Duong has a very favourable conditions for the development and

industricalization process. That’s why the role of the provincial government and its
administration has become more and more important in controlling, managing and

directing the operation of the socio-economic system. Therefore, the quality and

competency of staff are all the more importance.

1.2. Objectives of the study

The overall objective of the study is to evaluate the performace of staff at Hai

Duong provincial people committee and propose solutions improve their performance.

To achieve that goal, the researcher has contructed a set of sub-objectives below

(1) To identify the profile of wokers at staff at Hai Duong provincial people

committee in terms of

a. Age

b. Gender

c. Marital status

d. Educaitonal background

e. Length of working experience

f. Monthly income

(2) To evaluate the performance of staff at Hai Duong provincial people committee;

(3) To propose solutions to impove the performance of staff at Hai Duong

provincial people committee.

1.3. Significance of the study

Provincial People's Committees – the leading committees of a province - shall

have to abide by the Constitution, laws and documents of superior State agencies and

resolutions of provincial-level People's Councils in order to ensure the implementation

of undertakings, Measures for socio-economic development, consolidation of national

defense and security, and implementation of other policies in the area. The committee

holds tremendous power and responsibilities over the province’s Economy;

Agriculture, forestry and fisheries; Industry; Traffic; Construction, Trade in services;

Education and training; Sports Culture; Social health; Environmental Science; Defense

Security; Ethnic Policy; Laws; and Building government.

Its functions oversee general plannings on socio-economic development, branch

development, urban and rural development within the scope of its management;

elaborate long-term and annual plans on socio-economic development of the province

and submit them to higher office. The resposibility also inculude engaging with central

ministries and agencies in economic zoning; develop programs and projects of central

ministries and branches in the province; organize and inspect the implementation of

tasks assigned to the program or project, ect.

Despite their high responsibilities, there are still stigma on the productivity and

quality of staff at state owned organizations in general and at Hai Duong Provincial

People Committees in particular. There are still complaines about the professionalism,

attitude, and competency of those staff. This can have damaging effect on the

development of Hai Duong in the long run.

Therefore, in order to ensure the stable development and implementation of Hai

Duong, it is essential to impove the performance of staff at Hai Duong provincial people

committe. Eventhough this is a pressing matter there have been no reseach conducted

to find out the cause for this situation and propose a comprehensive set of solutions to

improve the situation. The research, hence, conduct this research emtitled “Evaluating

Employee Performance at Provincial Party Office of Hai Duong Province”

1.4. Scope and delimitation

The research will be carried out at major Industrial zones at Hai Duong provincial

people committee, No 45, Quang Trung Rd, Hai Duong City, Hai Duong Province.
 As the population is relatively small, all staff at at Hai Duong provincial people

committee will be investigated to acquire the needed information for the analysis as

well as the evaluation of employee performance. From this result, the reseacher shall

propose set of solutions which has pactical meaning to the operation of the Hai Duong

provincial people committe

1.5. Definitions of terms

Employee: Any person who is employed for wages in any kind of work, manual

or otherwise, in or in connection with the work of an establishment, and who gets his

wages directly or indirectly from the employer, and includes any person- (i) employed

by or through a contractor in or in connection with the work of the establishment; (ii)

engaged as an apprentice, not being an apprentice engaged under the Apprentices Act,

1961, or under the standing orders of the establishment Provident Fund and

Miscellaneous Provisions Act). In simpler terms, employee means a person appointed

to or borne on the cadre of the staff of the Corporation, other than persons on deputation.

Employee performance: Every organization has been established with certain

objectives to achieve. These objectives can be achieved by utilizing the resources like

men, machines, materials and money. All these resources are important but out of these

the manpower is the most important. It plays an important role in performing tasks for

accomplishing the goals. The question arises that how these resources are utilizes by

manpower. Further, the business environment is changing drastically. The

environmental factors are uncontrollable. These are beyond control of management of

the firms. One has to adjust with the external factors to do the business in the market.

Every environmental factor like social, cultural, legal, political, economic,

technology and competition gets changed very fast. For effective working the

knowledge of these factors is must otherwise the plan will misfire. In present situation
it is difficult to predict about anything. It is uncertain to say that what will happen

tomorrow. Again the need for highly skilled and dedicated manpower is felt who can

give the best output. Nowadays the markets are also very competitive and there is cut

throat competition. For every organization it is difficult to start, survive, stabilize and

excel in the business. The firm that gets the advantage over other competitors through

their talented and dedicated manpower can take the lead in the market. The contribution

of employees on job is the most important factor for development and excellence in

business. The performance of employees on different jobs in close coordination is

needed for success of the unit.

Employees are performing different jobs in an organization depending upon the

nature of the organization. They mainly perform tasks like production, storage,

manufacturing, transportation, marketing, purchasing, distribution, promotion of

business, finance and accounting, human resource, research and public relations. All

these activities are inter-related to achieve the targets. These are to be performed by the

employees properly so they can give their best out put at the job. This will have great

impact on the total production, sales, profit, progress and market position of the

company in the market. Various factors like skills, training, motivation, dedication,

welfare, management policies, fringe benefits, salary and packages, promotion,

communication etc. are responsible to encourage the people to work sincerely and give

their best output. The importance of employees’ performance must be understood by

the management and sincere efforts must be put in that direction. The management of

the company taking timely steps in that direction will be in position to develop and

motivate the people to do so. Finally the company may take the lead the market and

grab the opportunities available in the market.

 CHAPTER 2: REVIEW OF RELATED LITERATURE

2.1. Related literatures and studies

Performance is associated with quantity of output, quality of output, timeliness

of output, presence attendance on the job, efficiency of the work completed [and]

effectiveness of work completed” (Mathis & Jackson 2009).

Employee Performance is the successful completion of tasks by a selected

individual or individuals, as set and measured by a supervisor or organization, to pre-

defined acceptable standards while efficiently and effectively utilizing available

resource within a changing environment.

Aguinis (2009) described that “the definition of performance does not include

the results of an employee’s behavior, but only the behaviors themselves.

Performance is about behavior or what employees do, not about what employees

produce or the outcomes of their work”. Perceived employee performance represents

the general belief of the employee about his behavior and contributions in the success

of organization. Employee performance may be taken in the perspective of three

factors which makes possible to perform better than others, determinants of

performance may be such as “declarative knowledge”, “procedural knowledge” and

“motivation” (McCloy et al., 1994). HR practices have positive impact on

performance of individuals.

Carlson et al. (2006) proposed five human resource management practices that

affect performance which are setting competitive compensation level, training and

development, performance appraisal, recruitment package, and maintaining morale.

Tessema and Soeters (2006) have carried out study on eight HR practices including

recruitment and selection practices, placement practices, training, compensation,

employee performance evaluation, promotion, grievance procedure and pension or

social security in relation with the perceived performance of employees. Therefore, it

is concluded that these HR practices have positive and significant associations with

the perceived performance of employees.

According to some researchers and practitioners, there are certain factors

individually and collectively effect on the performance of employees in a positive or

negative way, including:

Leadership

Leadership is a process whereby an individual influences a group of individuals

to achieve common goals (Northouse, 2007). Leadership style is the combination of

attitude and behavior of a leader, which leads to certain patterns in dealing with the

followers (Dubrin, 2004). The leadership style within an organization has a bearing on

encouraging or inhibiting employee’s performance (Armstrong & Murlis 2004;

Cronje et al 2001).

Coaching

Coaching has become an important technique to improve performance

(Champathes, 2006). It is not a one way communication and proves to be a two way

communications where coaches identify what can be improved and how it can be

improved. Further coaching addresses the belief and behaviors that hinder

performance (Toit, 2007). It can be further seen that coaching is all about helping

someone else

to improve performance (Starr, 2004).

Duvall (1999) defines success as achievement, accomplishment and attainment

which is consequence of empowerment as follows: (1) Individual success in form of

employee’s role performance, (2) Organizational success which is achieved as

members of the organization accomplish collective organizational goals and

objectives, and (3) As organizational members share a mutually beneficial and

satisfying work experience meeting both social and personal growth needs. Further,

empowerment had significant positive correlations with both performance and

satisfaction (Bartram and Casimir, 2007). And specifically empowerment was more

strongly correlated with the in-role performance of followers than with satisfaction

with the leader.

Participation

In Chen and Tjosvold research 2006, they revealed that participation

management is about involving employees in the decision making process where the

employees feel that they have the opportunity to discuss problems and can influence

organizational decisions. The overall impact of participation is increased employee

job performance and low turn-over.

In addition, organizations can act to increase or decrease the levels of these

mediator variables within their personals and potentially strengthen the positive

performance effects of employee participation (Lam et al, 2002). Employee will be

motivated because management considers them as partners in contributing to

organizational success instead of being seen as mere subordinates and therefore will

avoid engaging into counterproductive behaviors hence improved performance

through timely achievement of organizational goals and objectives (Carrel, Kuzmits

& Elbert, 1989).

Organizational Culture

Organizational Culture is common values and behaviors of the people that

considered as a tool leads to the successful achievement of organization goals

(Schein, 1990). Organizational culture is the mindset of people that distinguishes

them from each other, within the organization of outside the organization.
 This includes values, beliefs, and behaviors of the employee’s difference from

the other organization (Hofstede, 1991). Strong culture in the organization is very

helpful to enhance the performance of the

employees that leads to the goal achievement and increase the overall

performance of the organization (Deal and Kennedy, 1982).

According to the Stewart (2010), norms and values of organizational culture

highly effect on those who are directly or indirectly involved with the organization.

These norms are invisible but have a great impact on the performance of employees

and profitability. The most important characteristic is shared value.

A strong organizational culture supports adaptation and develops organization’s

employee performance by motivating employees toward a shared goal and objective;

and finally shaping and channeling employees’ behavior to that specific direction

should be at the top of operational and functional strategies (Daft, 1984). Shared value

of employees is one of the basic components of organizational

culture (Smit and Cronje, 1992; Hellriegel et al, 1998). Schein (1994) clarifies

that value which is a set of social norms that define the rules or framework for social

interaction and communication behaviors of society’s members, is a reflection of

causal culture assumptions. Academics and practitioners argue that the performance

of an organization is dependent on the degree to which the values of the culture are

widely shared (Peters and Waterman, 1982).nSimilarly, it is widely argued that shared

and strongly held values enable management tonpredict employee reactions to certain

strategic options and by reducing these values, the consequences maybe undesirable

(Ogbonna, 1993).

Working Environment
 The influence degree of working environment is the counterpart requirement of

a creative job. Higher job satisfaction and lower intentions to leave were found for

those individuals whose work environment accompanied the creative requirements of

jobs. Enhancing the creative performance of employees has been recommended as

dire for remaining competitive in a dynamic environment and for enhancing the

overall innovations of an organization (Janssen, O. and NW. Van Yperen, 2004).

Working environment can be divided into two components namely physical

and behavioral components. The physical environment consists of elements that relate

to the office occupiers’ ability to physically connect with their office environment.

The behavioral environment consists of components that relate to how well the office

occupiers connect with each other, and the impact the office environment can have

on the behavior of the individual. According to Haynes (2008), the

physical environment with the productivity of its occupants falls into two main

categorie office layout (open-plan verses cellular offices) and office comfort

(matching the office environment to the work processes), and the behavioral

environment represents the two main components namely interaction and distraction.

Motivation

Motivation is a key determinant of job performance and a poorly motivated force

will be costly in terms of excessive staff turnover, higher expenses, negative morale

and increased use of managements’ time (Jobber, 1994). Therefore, management must

know what exactly stimulates their staff so resources arenot misallocated and

dissatisfaction develops among employees (Jobber, 1994). As Green (2000) has

described motivation to be proactive in the sense of; in dealing with employees who are

high performers, motivation is essential, otherwise their performance will decline or

they will simply leave the job. While dealing with low performers, motivation is a
prerequisite; otherwise these mployees will drag results down, lower productivity and

certainly would not leave the organization, as they will have nowhere else to go.

A motivated workforce is essential because the complete participation of

employees will certainly drive the profitability of the organization (Carlsen, 2003),

Darmon (1974) believe motivation is the educating ofnemployees to channel their

efforts towards organizational activities and thus increasing thenperformance of the

said boundary spanning roles. According to Denton (1991), a motivated workforce

will lead to greater understanding, acceptance, commitment to implementation,

understanding of objectives and decision making between management and

employees. There are 6 most important elements of motivation: rewards, pay, profit

sharing, promotion, recognition, job enrichment.

2.2. Conceptual framework

RESPONDENT’S PROFILE
 Age
 Gender
 Educational background
 Marital status
 Length of working experience Analysis
 Monthly income &
Solutions To
Evaluation Increase
RESPONDENT’S EVALUATION
OF EMPLOYEE Employee
PERFORMANCE performance
 Leadership
 Coaching
 Participation
 Organizzational culture
 Working environment
 Motivation
 CHAPTER 3: RESEARCH METHODOLOGY

This chapter presents the design and methodology of the study. It includes

research design, description of respondents, samples and sampling technique, research

instruments, data gathering procedures and statistical treatment.

3.1. Research Design

The study uses the descriptive methods of research design. It describes the profile

of respondents in terms of age, marital status, length of work experience, monthly

income and permanent address.

Objectives

Literature
review

Evalucaton
criteria

Evalution of employee
Profile performance

Solutions

Figure 2.1: Research design

3.2. Locale of the Study

This research will be conducted atin Hai Duong

3.3. Population, Sample Size and Sampling Technique

3.4. Research Instrument

 Questionnaires will be used as the main instrument to collect the data. The

questionnaires include two parts. The first part consists of the profile of the respondents

in terms of age, marital status, length of work experience, monthly income and

permanent address; the second part includes the respondents’ perceptions on factors

affecting employee retention. The respondents will be asked to rate each item following

the 5 – point scale.

3.5. Statistical treatment

The study applies the following statistical treatment;

Frequency, percentage distribution will be used to identify and determine the

profile of the respondents in terms of age, marital status, length of work experience,

monthly income and permanent address.

To interpret the perceptions of the workers on the recruiting and retention

strategies of Hai Duong Shoe Joint Stock Company in Hai Duong province, weighted

means and the 5-point Likert scale will be utilized.

One-way analysis of variance (ANOVA) will be used to determine the significant

differences between the perceptions of the workers.

http://luanvanaz.com/khai-quat-dieu-kien-tu-nhien-kinh-te-xa-hoi-tinh-hai-

duong.html

FACTORS AFFECTING EMPLOYEE RETENTION: EVIDENCE

FROM LITERATURE REVIEW