Internship Report Final Version

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FOREIGN TRADE UNIVERSITYFACULTY OF BUSINESS ADMINISTRATION ---------***--------

INTERNSHIP REPORT

MAJOR: INTERNATIONAL BUSINESS ADMINISTRATION

EMPLOYEE SATISFACTION IN KOREAN CONSTRUCTION FIRM MAKE A DREAM OF ACTUALITY (M.D.A)

Student name: Dang Thu Trang Student ID: 1112260014Class: A15 Advanced Program Cohort: K50 Instructor: Pham Thi My Dung

Hanoi, 4th August 2014

TABLE OF CONTENTS

INTRODUCTION- 1 -CHAPTER 1: LITERATURE REVIEW- 2 -1.1.Definition of Employee Satisfaction- 2 -1.2.Importance of Employee Satisfaction- 3 -1.3.Factors determining Employee Satisfaction- 4 -1.4.Measurement of Employee Satisfaction- 8 -CHAPTER 2: CURRENT SITUATION IN CONSTRUCTION FIRM M.D.A- 11 -2.1.Introduction of the company:- 11 -2.2.Analysis of M.D.A case- 13 -2.2.1.Application of determining factors in M.D.A- 13 -2.2.2.Herzbergs Theory application in the case of M.D.A- 17 -2.2.3.An SWOT evaluation of Employee Satisfaction in M.D.A:- 20 -CHAPTER 3: RECOMMENDATION- 23 -3.1.HR Policy- 23 -3.2.Corporate Culture- 24 -3.3.Herzberg Motivator-Hygiene Factors- 24 -SUMMARY- 26 -REFERENCES- 27 -

INTRODUCTION

This report purpose is to fulfill the internship requirement for the Advance Business Administration Program in Foreign Trade University. Moreover, it is also a research paper to show how the student understands of the practical business world. In particular, the main focus of this report will be about employee satisfaction study in one actual Korean enterprise; therefore, to create a firm background for later dissertation purpose. The content of the report covers the students five-week observation of M.D.A Employee Satisfaction in relation with the firm Human Resource (HR) practices and corporate culture. The internship happened from July 16th to July 22nd 2014. During the time, the student has observed and decided to choose Employee Satisfaction as the main topic that she wishes to discuss in her report. Since the number of Korean enterprises doing business in Vietnam is increasing, the need to understand both culture and how to implement HR practice effectively in order to achieve the optimal is essential for each company to realize. Being aware of the situation, the student has taken advantage of the internship opportunity to gain more insight knowledge and later, to build her foundation in human resource learning. Due to the large number of branches that M.D.A Group owns, only M.D.A E&C branch will be considered in this report. In order to gain a closer look on what is the situation of employee satisfaction in the construction firm M.D.A, the student decided to research on the two main factors which are the company HR policy and the cultural mixture of Korean and Vietnamese in the firm. Among popular methods which are commonly used to evaluate job satisfaction such as Theory X & Theory Y, McChellands Theory of Needs, Two Theory Factors, etc Only Herzberg Motivator- Hygiene Theory will be take priority in this report.

CHAPTER 1: LITERATURE REVIEW

As the economy gains momentum and businesses begin expanding once again, employers are recognizing the increasing importance of retaining their talents who are highly performers in the corporation as well as the opportunities that each employee hold in create prospective outcome in productivity and profitability. The key to keeping and raising these valued and potential employees is to maintain a high level of job satisfaction. Therefore, HR professionals play an integral role in ensuring the appeal of the firm working environment. The practices, policies and the programs that the company establishes are the foundation for efforts throughout the organization to maintain high morale and retain, develop staffs. Most people do not leave their employers for one single reason alone. A combination of what happens in the office normally shapes an individuals perceptions about their status in particular and about the company in general. Therefore, the need to identify what is employee satisfaction and gradually advance their HR practice is the most unpleasant challenge that each HR professional has to face in today international business.

1.1. Definition of Employee Satisfaction

In 1976, Locke defines Employee Satisfaction or Job Satisfaction or Employee Attitude as a pleasurable or positive emotional state resulting from the appraisal of ones job or job experiences. However, Schneider and Snyder back in 1975 defined Employee Satisfaction as a personal evaluation of conditions present in the job, or outcomes that arise as a result of having a job. On the other hand, Dressler in 2007 referred that Employee Satisfaction is a positive feeling each employee have towards their jobs resulting from a valuation of its characteristics. A person with high level of job satisfaction holds positive feelings about their jobs, while a person with low level holds negative feelings.Employee Satisfaction thus, has to do with an individuals perception and evaluation of ones job, and this perception is influenced by the persons unique circumstances like needs, values and expectations. Those common facets commonly are the nature of work, supervisions, present pay, promotion opportunities and the relationship within the organization. People will evaluate their jobs on the basic of factors, which they regard as being important to them.

1.2. Importance of Employee Satisfaction

In today business world, employees contribute to the uniqueness and originality of each company, which helps them to distinguish themselves to other competitors. Obviously, Employee Satisfaction implies higher quality of service; furthermore, in other industrial fields or construction, Employee Satisfaction assures higher performance which leads to more effectiveness and efficiency in production and operation. Employee Satisfaction can have impacts on various aspects of HRM such as Job Performance, Customer Satisfaction, Absenteeism and Turnover. Despite the fact that there are some researchers who are in doubt of the relationship between Employee Satisfaction and Job Performance, most of them are convinced that happier workers are more productive workers. In the case of service industry, the relationship between Employee Satisfaction and Customer Satisfaction is almost impossible to ignore since the service provided by the staffs themselves reflects the outcome in consumers emotion. In other non-service industry, the relationship is harder to notice; however, none of the managers can deny its existence since positive attitude at the office does increase the productivity and competencies of the employees. Moreover, Employee Satisfaction plays vital part in drawing and preserving consumer satisfaction and loyalty. Employees are encouraged to create fun and a little weirdness and are given unusual discretion in making customer satisfied; they are encouraged to use their imagination, including sending flowers to disgruntled customers (Robins & Judge, 2013). There is a negative relationship between employee satisfaction and absenteeism. It is more than obvious that dissatisfied employees are expected to have high absence rate, which is not ideal for company operation. They are more likely to miss work or poorly perform tasks or assignments; not to mention, dissatisfied employees absence can also bring out negative impact on other dedicated workers. Lastly, the relationship that job satisfaction having with the company turnover rate is much stronger than that of absenteeism. Exclusively, when employees have high human capital (high education, high ability), job dissatisfaction is more likely to translate into turnover because they have, or perceive, many available alternatives (Robins & Judge, 2013).

1.3. Factors determining Employee Satisfaction

Organizations represent the most complex social structures known today because of their dynamic nature. Employees are one of the role players in the organization, and it is through their involvement and commitment that organization becomes competitive. The relationship between the organization and people is however interdependent in nature (Boeyens, 1985; Kerego & Mthupa, 1997), and both parties may impact on one another ability to achieve positive outcomes. Organizational climate, which is the HR policy and Organizational culture can be promoted as the main factors to facilitate the achievement of Job Satisfaction in accordance with the organization optimal goals. Each elements contributing the organizational climate as well as culture can serve the starting point in diagnosing and influencing such change within the firm.

(1) HR Policy

Each company who wishes to gain promising and sustainable growth must at first serves its internal customers the employee- as they play a crucial role in income guarantee. In another words, Human Resource Policy can be considered as internal marketing tools for managers as well as the overall scale for them in order to increase Employee Satisfaction. Human resource management (HRM) refers to the policies and practices involved in carrying out the human resource aspects of a management position including human resource planning, job analysis, recruitment, selection, orientation, compensation, performance appraisal, training and development, and labor relations (Dressler, 2007). Due to Employee Difference in personalities, gender, abilities, knowledge and needs, they tend to judge the same corporate HRM practice in distinctive attitudes. Depending on the workers perception of the actual HR policy, their reaction will differ, which may lead to satisfaction or dissatisfaction. This result is also referred as the black box problem. The total four part of HR policy which includes Recruitment, Placement & Talent Management, Training & Development, Compensation and Employee Relation can affect employee emotion and perception towards the corporate in different way during specific period of time. Employee recruitment, Placement & Talent Management: Any process for which an organization seeks applicants and attracts potential employee is called recruitment; selection refer to the process by which an organization identifies those applicants with the knowledge, skills, abilities, and other characteristics that will help it achieve its goals (De Cieri & Kramar, 2008, p.30). Employee Training & Development: Training is a means of arming employees with the skills they need to perform their jobs: it is also often deemed to be representative of an employers commitment to their workforce (Storey & Sisson, 1993). Furthermore, Training & Development is also considered as a value added creation to employee at the present time, which promise a huge boost in employee motivation and engagement towards their jobs. Compensation: Pay Structure, Incentives and Benefits: Pay or Salary plays a crucial part in determining employee attitudes. The way people are paid affects the quality of their work, their attitude towards customers, and their willingness to be flexible and learn new skills (Milkovich, Gerhart, & Hannon, 1991). Employee Relations: The general approach to relations with employees can strongly affect a companys potential to gain a competitive advantage (De Cieri & Kramar, 2008, p.63). Clarke also found that employees are more inclined to stay when they have strong relationships with their work colleagues (2001). In another words, strengthen relationships in workplace can enhance employees feelings of belongings, which ensure their commitments and wants to remain longer than they planned. In addition, solid network within the corporation can help nurture the organizational culture and help build the company unique brand recognition as well as its service or customer experience.

(2) Corporate Culture

Corporate Culture is described as a pattern of shared basic assumptions, invented, discovered or developed by a given group, as it learns to cope with its problems of external adaptation and internal integration, that has worked well enough to be considered valid, and therefore, is to be taught to new members of the group as the correct way to perceive, think and feel in relation to those problems (Schien, 1985, p86). In addition, the attitudes each employees have towards the culture of their organization has a direct influence on both their level of motivation and the degree of job satisfaction that they would experience. Even though globalization has nearly standardized working conditions in each corporation, in Asian business world, original country culture is still the dominant factors shaping Corporate Culture, especially in Confucius countries such as South Korea or Japan. There are some characteristics which can be identified in most of Korean enterprises, as the following: Kibun, Emotion or Mood. In Korea, Kibun-the mood is very important since they emphasize constant stability in Kibun and also keeping good Kibun of others. Inhwa, Harmony. Following collectivism, Korean people focus on maintaining harmony. They perceive that a person has duty to show total loyalty to parents and authority figures, leaders, elders etc Korean employees are expected to show respect and obedience towards their employers, managers and supervisors. Power Distance & Hierarchy. Koreans are collectivists, which mostly refer to high power distance & hierarchy. In addition, the high level in power distance also hindrance the reporting system especially when Koreans follow centralized structure, which makes decision-making process less active and effective. Importance of Family Ties and Blood-Based Succession. Family control in Korean corporates is one of the essential characteristics in Korean organizational culture. High-raking positions in the company are mainly hold by the family members. If the company is doing business outside of the country and there is no family member currently working in that branch, those high-ranking positions will be taken by Korean mostly. Gender Inequality. Heavily influenced by Confucianism, women are likely to be underestimated in the society. As Koreans perceive the womens main obligations is to take care of the family, Korean women in particular or female foreigners working in Korean firms can hardly to climb up in the power hierarchy.

1.4. Measurement of Employee Satisfaction

First introduced publicly in 1959, Herzberg new works on The motivation to work offered new perspectives of measuring Employee Satisfaction. In his research paper released at that moment, Herzberg has created the two factor theory including principles of job attitudes, which are commonly known as Hygiene and Motivator factors. He believed that job satisfaction and job dissatisfaction is not the obverse of each other, rather they are best viewed as two separate and parallel continua. As a result, the opposite of job satisfaction is not job satisfaction is NO job satisfaction; the opposite of job dissatisfaction is NO job dissatisfaction.

(1) Hygiene Factors The dissatisfiers serve to provide for the animal side of mans nature which needs to avoid unpleasant environments. This is an intrinsic property of all organisms, which is dictated by the laws of biological evolution. Being more capable, however, will not make man less hungry or thirsty or less concerned on status, money, interpersonal relationships, and hygienic working conditions. The dissatisfiers are called hygiene factors, because primarily they serve to prevent dissatisfaction and they relate to the environment. These factors include: Company Policy and Administration: Policies and Administrative practices suggest that the kind of organization policies and practices of administering the people should be the one that can encourage them to perform well. This practice must consist of all elements as mentioned above in the HR policy section.Supervision: The provision of adequate supervision to workers that will encourage them to be more committed and well aware of their job in the organization. Working Conditions: Working conditions requires an organization to provide a work environment that is conductive for workers to perform well. In that environment, workers can maintain their most basic needs such as safety, survival, clean or even healthy conditions and comfort to work.Salary: Provide salaries and other financial benefits to the workers that will encourage them to be committed to the work in the company. Since money plays an essential part in ones living conditions and survival, salary must be at least sufficient for each worker to maintain their personal life outside work. Work-Life Balance: People need to be given ample space to have their own personal life. Disorder in individuals life could cause huge problems in workers mental or physical condition such as stress. High frequency of stress or mental instability could cause huge decrease in job productivity. Status: The kind of work that people do should be meaningful or be able to able to make them feel of being in a good position. This will help to encourage them to commit their time and efforts to work. Interpersonal relationship with others: Provision of team work dynamics among workers is important to encourage them to place their effort together towards the same purpose. Union or the harmony of the team could bring high efficiency in the work as people cooperate and support each other works. Job security: People should be made to feel secure about their jobs. This helps them to work harder and focus on the work because they do not have to be worried about the loss or the possibility in losing their jobs.

(2) Motivator FactorsThe satisfiers serve to provide for the human need to exercise ones capabilities or the surplus potentiality of the brain as an instrumentality for psychological growth. The experience of growth can only arise when there is opportunity to achieve success in the performance of some task. To be creative requires a creative task. The satisfying aspects of the job are named the motivator factors in order to emphasize the individuals active responsibility for psychological growth in contrast to the passivity which characterizes the avoidance nature of the responses to the hygiene factors. These include: Task achievement: Workers need to feel their job helps them to achieve, their aspirations. This in the end makes them feel a new energy to work and meet other organizational objectives.Recognition for achievement: Workers need to feel that they are recognized by their superiors and the organization for which they work. Recognition makes them feel that they are respected for having done meaningful things, which can encourage workers to work and try harder the next time they are assigned for a new task. Intrinsic interest in the task: Employees need to feel attached or interested in their assignments in order to make their best effort in achieving it. In another words, they asks for challenge in their routine jobs.Increased task responsibility: People want to have a sense of responsibility in what they do; therefore, they can force themselves to search for the best without managers intense supervision. Advancement or occupational growth: People need to grow in their jobs as they perceive it as an opportunity for further promotion. The possibility of occupational growth: Workers need to see prospects of advancement in their jobs. Therefore, they can nurture themselves as a better and completed human beings rather than a mere skillful business tools.

CHAPTER 2: CURRENT SITUATION IN CONSTRUCTION FIRM M.D.A

2.1. Introduction of the company:

Company Contact Information: Head Office Address: 4th and 5th floor, L.O.D Building, 138 Tran Nhan Tong Street, Cau Giay District, Hanoi, Vietnam Official website: http: //mdaenc.com In charge person: Chairman Song In Soo Number of employee in M.D.A E&C: 100 people

Company HistoryMake a Dream of Actuality or M.D.A is Korean invested construction firm which was established in Vietnam in 2006. Since then the company has gradually build its offices and business throughout Vietnam. However, the company size by then was small and limited. Not until 2008, M.D.A expanded its business and opened the second branch, which is M.D.A E&C Company Limited. In 2009, the M.D.A Group established its third branch, M.D.A Electronics. Following, in 2010, M.D.A started the SAVIHA Company Limited, which made M.D.A Construction firm change into M.D.A Group. Since then, the organization has gained various constructing deals and trust in the industry. Until now, M.D.A has taken part in 32 projects including 7 ongoing projects and 2 investment plans in 2014.

Figure2.1. M.D.A Group Branch FunctionsM.D.A GroupFunctions

M.D.A Construction Infrastructure Architecture Design

M.D.A E&CGeneral Construction Design Developing

SANVIHAGeneral Construction Exploiting rocks and natural resourcesProjects on constructing plants

MBICOKorean bricks Production of eco-friendly construction materials

Source: M.D.A Official Brochure

Company Employees

M.D.A E&C Company Limited has been run by Chairman Song In Soo since establishment in 2008. Both Korean and Vietnamese employees are currently working in M.D.A E&C. Most of the employees are university graduates specialized in engineering or relevant fields and fluent in at least one language, Korean or English or both. At the moment, the company has 100 employees in total. Among them, there are approximately 20 Koreans and 80 Vietnamese. Most of the Vietnamese and Korean employees have been working in the company since its founding. In addition, there are few employees, mostly engineers entering the company each year thanks to the increasing projects. Due to the large size of the company organizational chart cannot be displayed in the report and only cited as a source of reference. M.D.A E&C contains

2.2. Analysis of M.D.A case

Different countries have different culture, depending on which corporate culture will differ. However, under the globalization trend of the modern days, corporate culture has gradually become a mixture of several or even various countries traditions as the firm expand its business beyond its border and trade at a global scale. Therefore, the case of each firm in the totally different culture will define unique color for its corporate structure. Without exception, M.D.A is one of the stall examples for the matter, which HR practitioners need to face today.

2.2.1. Application of determining factors in M.D.A

(1) HR Policy

Recruitment, Placement & Talent Management: At the present, M.D.A only focuses on recruiting engineers and translators. During the internship period, M.D.A E&C was looking for 2 vacancies for translators and 1 vacancy for engineers. The most challenging problem that all Korean firms in Vietnam have to face is the lack in qualified translators. Currently finding a candidate specialized in Korean language is difficult since most of them are new graduates or intermediate learners who do not have enough experience in translating and interpreting in construction field. M.D.A currently has 3 interpreters but the workload cannot be met by only three of them since there are 7 ongoing projects, all of which require on-site interpreters for the managers and staffs there. Furthermore, the company mostly use external source to get in touch with potential candidates, which customarily are Facebook employment groups or employment websites. However, this approach appeared to be less effective and limited in resources due to lack of needed information. Like many other Korean enterprises, employment information posts are poorly conducted, which only includes the details and salary or working conditions of the job vacancy but fails to give job seekers the exhaustive data on the company itself. Meanwhile, nowadays, candidates are well aware of the company they would apply and work for. Moreover, the company provides no Talent Management scheme in order to retain and nurture their talent. Especially as the company grows and expands the numbers of ongoing and incoming projects are increasing rapidly, the need to manage and organize human resources to reach their best potential is crucial. Training & Development: M.D.A E&C provides no internal training for employees including both supporting department and engineering department. For new comers of the company, the first thing they need to learn is the basic routine of the office, which are mainly about how to clean the office, how to serve customers or guests with coffee and tea, how to make a photocopy or a scanned paper for others etc Later, new comers will be instructed on their routine works by colleagues who share the same position or status as them. There is one basic rule that is not to ask detailed job or assignment procedure directly from the boss, which could be perceived as rude in Korean manners. In order for further growth in career, each person needs to train and learn specialized knowledge and techniques themselves.

Compensation: Pay Structure, Incentives and Benefit.Figure2.2. M.D.A E&C Pay StructureDeparment Position - ExperienceSalary ( thousandVND)

Supporting Dept. Staff 6,800 ~ 10,000

Company Drivers5,000 ~ 8,000

Team Leader15,000 ~ 22,000

Engineer Dept. Freshmen 3,000

Staff (1-3 year experience) 9,000 ~ 13,000

Staff (3-5 year experience) 15,000

Team Leader 16,000 ~ 30,000

Source: M.D.A E&C (updated in June 2014)

Besides abiding to Vietnam Labor Law, M.D.A also provides other incentives for its employees. In terms of bonus and incentives, the company provides bonus on overtime work as well as project offer signed. In addition, the company offers additional days off for employees on holidays such as Tet, Mid-Autumn or Summer Break. Particularly, Korean staffs are given more 15 days in vacation for home returning. Finally, the firm also pays for employees lunch money, which is 25,000 VND per day for office workers and 75,000 VND per day for site workers.

Employee Relation: Having the advantages of small and medium company size, M.D.A E&C has warm and friendly relationship between Korean managers and the staffs. In addition, despite of the power distance, the age difference between Vietnamese staffs and Korean employers are small, which helps all of them to create more understanding and respectful atmosphere among others. Furthermore, the young Korean managers often joke around their employees, creating positive and relaxing environment for workers to be in.

(2) Corporate Culture

Kibun, Emotion or Mood: Korean managers most of the time manage to keep positive mood in the workplace. Korean team leaders are often found energetic and active in their workplace. Some daily routines are found in Korean workers are coming to work early, having coffee in early morning meetings, etc However, the routines work differently in the case of Vietnamese employee. Most of Vietnamese workers come to work on time, cleaning the office and making coffee for their managers while preparing for the morning work. Few of them pay attention to maintain good kibun or active energy in the workplace. Therefore, in the time while there is no Korean manager in the office, people often fall in silence and passive working state. However, if there is any existence of Korean managers, they tend to make rather noisy but active working atmosphere, which keeps people more awake and focused on their jobs.

Inhwa, Harmony: Harmony is not strong in M.D.A E&C workplace. Unlike Korean people who emphasize mostly on loyalty and respect towards others, Vietnamese staffs tend to evaluate this issue less seriously. There was a case in the Accounting Department when an employee changed the transferring bank account with customers at her own court, which caused lots of catastrophe among the company. In Korean manner this action was totally unreasonable, showing ignorance of the company ethics. In addition, there are numerous confusions occurring due to the managers incorrect assignments while giving specialized tasks for non-engineer employees. These events somewhat imply lack of harmony in the current office environment.

Power Distance and Hierarchy: Since the company is a medium sized firm; therefore, the power distance is not emphasized mostly in the workplace. However, there is still certain power distance between the firm chairman and other ordinary staffs. The reporting order still follows the centralized management style, where all employees must submit their request to their team leaders in order to get the leaders and the chairmans approvals.

Importance of Family Ties and Blood-Based Succession: All the Korean managers in the firm are not in family ties with the chairman, except for the accounting head manager who is the chairman wifes brother. However, in the company organization chart, all of the manager and leader positions are hold by Korean people, which somehow indicates the importance in Korean blood-based ties like the same case in Japanese enterprises. Likewise, every morning M.D.A E&C Korean team leader, department heads and the chairman often have a meeting together, which mostly do not welcome Vietnamese employees to join.

Gender Inequality: In construction firm, the discrimination should not be the main subject since it is a common knowledge that most engineers are male. It can be noted that in M.D.A E&C office in particular, most of male workers are engineers while all female are working in the supporting department such as planning, HR or accounting.

2.2.2. Herzbergs Theory application in the case of M.D.A

(1) Hygiene Factors:

Company Policy and Administration: In M.D.A E&C, managers pay considerable attention towards the company policy and administration. The company emphasizes mostly on their employees punctuality and task complements. Besides, the HR managers will take care of other legal and personal issues regarding the company staffs. However, there is not policy written or even a code of conduct which is essential for each workers to remember. The administration in the office could be easy since the company head office only covers two floors in the building. Conversely, to the engineers who are working at the construction sites, administrative practice could be challenging. Supervision: Due to the lack of human resource and its small size of office, the company provides less in supervision on their workers, which means all the employees are responsible for their own works while the team leaders pay an eye on the work process consistently. Since the office room is small, both employees and managers sit together side by side, which help supervisor to keep record of their employees work as well as adjust if problems happens. Working Conditions: For workers who are required to work in the construction site, the company offers its private drivers to take them to and from the sites. M.D.A also offers great deal in food and drink supply to those workers since working outside the office take much energy and stamina. On the other hand, employees who work in the office, mostly in supporting and designing department, receive different treats on working conditions. In its office, the company uses some part of its space to build a kitchen and eating table for employees. Other appliances such as air-conditioning or heating system are also provided to maintain the most comfortable environment for the staffs to work in. Lastly, the company offers free coffee, tea and noodle in order to assist their employees to remain at the best state to contribute. Salary: In comparison with other Vietnamese medium firms, the salary offered for M.D.A staffs can be considered higher but nearly the same as other Korea invested firms within Vietnam. Personal life of employees is respected and the firm also offers some special days off for employees to take cares of their family when in need. Work-Life Balance: In order to support their employees in gain balancing between the time in and off office. The firm offers many opportunities for them to take days off, which could take up to one moths off with full salary. Family-Friendly benefits are also included in the firms HR policy. The company provides from 12 to 24 weeks of unpaid leave to all workers employed by the companies for the birth of a child, adoption of a child, or care of a seriously ill child, spouse, or family member, with a guarantee of the workers old job or equivalent job upon return. However, in order to avoid workers abuse of the policy, leaves of absence is associated with fewer promotions and small salary increases. Status: The firm supports little in helping the employees to feel their status. The employees usually find no comfort or meaning in doing their job. They also perceive it as a must-done task to do in exchange for the salary they receive. Interpersonal relationship with other: The relationship between Vietnamese workers is good and well harmonized. Despite being a company mixed by both Korean and Vietnamese, M.D.A still can remain good harmony among employers and employees. The managers of the company, who mostly are Korean, are funny and talkative. They wonder around the office in every free time chatting and joking in order to understand their workers better. In return, the Vietnamese staffs are friendly and open to their supervisors; therefore, the company can always retain its good and comfortable atmosphere within the office. Most of the employees working in the office, except for freshmen, have at least two or three year working in the company. They know mostly the inside out of the company and create good relationship with managers. Since approximately two third of the employees are still in their 20s, 30s and single, the atmosphere in the workplace is quite young and cheerful, which is help in creating positive working conditions for workers. The team leaders often show friendliness and care towards their employees except for some occasion the stress was high, driving Korean manager temper short. Moreover, the staff interpersonal relationship with their superiors is also good while they can usually express their desire and demand with their leaders under proper manner. Having culture mixed working environment, both superiors and subordinates are carefully with their reaction in order to avoid conflicts. Job security: Correspondingly, the company post great level of job security. Adopting the life-time job from Japanese corporate culture, the company provides high certainty in employees remaining in the company. In order to keep good workers staying for a long time, the salary policy is also planned to encourage employees with increased number of contribution years in the firm.

(2) Motivator Factors:

Task achievement: The employees confirmed that they have no inspiration from task achievement. Under their perspective, completing the task is a must and have no value added in their life. Recognition of task achievement: For task achievements, the workers are not usually appraised for their dedicated work but be taken for granted as Koreans perceive that good performance is the show of their employee loyalty and commitment towards to the company.Intrinsic interest in the task: The employees do not pose much interest in their works. Most supporting staffs in the planning department complains that they are always assigned with non-specialties works without any explanation or further instruction or mentoring from others, which causes frustration as well as confusion. In long-term basic, this action can cause dissatisfaction and rebel against the manager in particular and the firm in general. Since the work of engineers is overloaded, often other supporting staffs need to assist in more specialized works. However, due to employees lack of knowledge in construction and managers ambiguous order, the assignments are confusing and time-consuming to complete; not to mention, the possibility in having disqualified or incorrect results.Increased task responsibility: Yet, employees are given more task responsibility in their work, which lead them to work more productively and efficiently.Advancement or occupational growth: The company does not emphasize much in employees occupational growth and advancement. NO training or mentoring program is provided for employees to nurture their talent. Not to mention, the firm also has no intention in improving their employees language skills in order to enhance effectiveness; therefore, the staffs still have to struggle every time they communicate with their managers. Meanwhile, the firms translators or interpreters have to suffer from great workload due to the miscommunication as well as paper works. The possibility of occupational growth: As mentioned above, the firm provides very few offers in personal growth; therefore, there is a little chance that employees can receive opportunities in occupational growth. However, they still can take charge of their own promotion by seeking learning opportunities in specialties and other relevant skills outside the job. 2.2.3. An SWOT evaluation of Employee Satisfaction in M.D.A:

(1) Strengths: Like other Korean enterprises, especially construction and manufacturing ones, the company has the main competitive advantages of high salary offerings in accordance with an assurance of long lasting jobs. Although Korean companies have stopped adopting Japanese lifetime hiring; however, they still emphasize on employees commitment to work in the firm for certain period of time in minimum, which is usually 3 to 5 years of working. Also, the high level off pay and benefit relative to that of competitors can ensure M.D.A attractiveness and its high quality under employees perception. The well-designed employee benefit packages, which are bonus and vacations in particular is an effective tool for motivating and retaining employees. In addition, the harmony of the firm, which inhere refers as the relationship among subordinates and superiors is great in M.D.A case which encourage workers to be more inclined to stay in the firm. In another word, strengthened relationships in workplace can enhance employees feelings of belongings, which ensure their commitments and wants to remain longer than they intended. One of the possible reasons for this harmonized atmosphere is the company decline in power hierarchy.

(2) Weaknesses: One of the biggest disadvantages that M.D.A owns is its lacking of well-designed job description. Meanwhile, the job seekers rely on certain data, which certainly comes mostly from company policy in recruiting and job posting. If there is any misunderstanding occurred after the job is offered, it would likely lead to great Employee Dissatisfaction and the chance of turnover could also increase. In addition, M.D.A HR policies make no room for each employees personal growth or promotion for workers who are non-Korean. This action in long term could cause great disappointment among employee since this value added creation promises a huge boost in job motivation and engagement.

(3) Opportunities: It could be nowadays trend is that more and more people are capable of Korean language thanks to the domination of Hallyu trends worldwide. In addition, with the incoming one trade area policy applied for ASEAN countries, the possibly that higher qualified workers from other nations will come to Vietnam and be seeking for a job which could be the potential one that M.D.A has to offer. Especially, with its high wage and satisfactory working conditions, M.D.A can ensure its attractiveness towards promising labor forces which are coming.

(4) Threats: However, the companys promising opportunities are also its threats. Since not only more qualified workers will come to Vietnam but also other enterprises who find opportunities in the countries will also enter the market. Therefore, the business for construction firms in particular will be more competitive. As a result, the company has to come up with better ideas to keep both their customers and employees staying in the same place. Especially, with the companys low level of motivator factors, their likelihood to maintain employee engagement and performance will not be as easy as the day they were. In conclusion, the firm poses more threats that it may face than expected. Its competitive advantages in gaining talents thanks to salary policy could be no longer effective. With its position at the moment, the company has no doubt in attracting talents as well as retaining them. However, as the business competition goes tougher; especially when globalization and one trade zone of ASEAN starts to expand, the strengths that the firm holds will be a basic competency only. Therefore, the firm itself needs to adopt new policy in HR practices in order to retaining and making use of its own labor resources.

CHAPTER 3: RECOMMENDATION

3.1. HR Policy

Recruitment, Placement & Talent Management: It is recommended that the company should pay more at attention to investing in its recruitment channels in order to get access to higher qualified talent pool. In addition, the company could participate in university career fairs that allow them to build talent data base and get more networks. Last but not least, the firm could make sure of their internal referral to earn more talented job seekers who are hard to search outside.

Employee Training & Development: Offering mentoring programs could be a solution for the firms lack of training at the present. However, providing annual training program could be more affordable and easy for implementation. Especially for employees who are willing to pursue higher career path but not be ready for it, training programs are crucial for them to growth. By delivering appreciation and care towards individual needs on growth in each worker, the company can expect more in performance and productivity without spending too much on sourcing talents outside. Furthermore, the company can offer more opportunities for its staffs to take part in international conference on the field for more insight knowledge of the whole business or help them to develop their own career paths.

Compensation: Pay Structure, Incentives and Benefits: In comparison to other criteria in HR policy, Compensation was thoughtfully created. However, the company can offer more attractive benefits regarding medical coverage. Especially to high-performers, the company should show more consideration such as rewards, appraisals or off-site activities.

Employee Relation: In order to strengthen the bonding between team leaders and employees, M.D.A can offer more parties off work. Through that get-together, the company can help employees understand more of its corporate culture and enhance their networks inside the company and maybe outside the company.

3.2. Corporate Culture

Along with combining both Korean and Vietnamese culture into organizational one, the firm should focus more on identifying and building its own version of corporate culture since the current one is dominated by the crowds culture without careful selection. Therefore, many disadvantages can be brought along in the combination process that HR managers are not aware of.

3.3. Herzberg Motivator-Hygiene Factors

Hygiene Factor: According to Herzberg (1987) managers need to eliminate the dissatisfaction by doing some of the following: Fix poor and obstructive company policies Provide effective, supportive and non-intrusive supervision Create and support the culture of respect and dignity for all team members Ensure that wages and salaries are competitive Provide job security Build job status by providing meaningful work for all positions. Above all the actions, the firm should focus more on building well detailed policies and higher job security since Vietnamese people mostly emphasized on stability and well paid salary.

Motivator Factor: Herzberg (1987) added that job enrichment should be considered in motivating people to reach their best job performance. The followings are some recommendation that Herzberg offered to managers: Providing opportunities for achievement Recognizing workers contributions Creating work that is rewarding and that matches the skills and abilities of the employees Giving as much responsibility to each team member as possible Providing opportunities to advance in the company through internal promotions Offering training and development opportunities so that people can pursue the positions they want within the company.

However, the situation is more likely dependable on the nature workforce in each company. M.D.A E&C HR managers should consider more whether the employees are more financially motivated or personal growth motivated in order to offer them the most optimal package. Since Vietnamese workers are highly perceptive of job security and work-life balance, Korean managers should focus more on the financial motivators in order for the workers to pull out their greatest effort. In addition, there small parts in the firm are young workers who also emphasize more on personal growth and achievements. In that case, more trainings and developments or career opportunities are more suitable options for them.

SUMMARY

In generally, this report has pointed out crucial factors and measurements which have influence on Employee Satisfaction. By applying those factors into the case of construction firm M.D.A, the student can gain a more insight view on how actual company deals with HR policies and practices, especially in Korean enterprises. However, the main mistake that M.D.A makes when motivating its people can be found not only in other small and medium companies but also in large organizations. The importance of motivator factors are mostly ignored which in the short term could bring no harm towards the company; however, there is no guarantee that the same situation can happen in the far future. Therefore, in order to getting ahead of the game, each firm needs to be aware of internal improvement, starting from their own personnels.

REFERENCES

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