Contents
I. Introduction............................................................................................................. 3
II. Task 1.................................................................................................................... 4
1. Motivation theories................................................................................................ 4
a. Expectancy theory.............................................................................................. 4
b. Goal Setting Theory............................................................................................ 4
2. Samsung current situation........................................................................................ 4
3. Intrinsic and extrinsic motivation............................................................................... 5
a. Intrinsic motivation............................................................................................ 6
b. extrinsic motivation............................................................................................ 6
4. Motivational strategies............................................................................................ 7
III. Task 2................................................................................................................. 9
1. Definition............................................................................................................ 9
2. MBO and KPIs..................................................................................................... 9
3. Leadership and management approaches for managing performance supports continuous
improvement............................................................................................................. 10
4. Recommendation to improve performance management.................................................12
IV. Conclusion........................................................................................................ 14
References................................................................................................................... 14
LM
I. Introduction
- This study looks at how management and leadership are applied in practice at
Samsung Electronics Vietnam. We were invited by the CEO to visit Samsung
Electronics Vietnam and conduct a full-scale field study to observe the well-
structured ‘fast lean production’ system. The results of this visit will feed into our
analysis and recommendations to improve the performance management system of
Samsung Electronics Vietnam and create a culture of continual improvement.
II. Task 1
1. Motivation theories
a. Expectancy theory
- According to Victor Vroom’s Expectancy Theory, an individual is motivated by
the anticipated reward that people will receive based on the behavior that they
exhibits. The theory is based on three elements: expectancy, which is the belief
that one’s effort will lead to performance; instrumentality, which is belief that
performance will lead to specific outcomes; and valence, which refers to the value
that a person attaches to a given utility.
- Motivating employees requires making sure they have reason to believe that what
they are working for worth their time, such as expecting good performance from
oneself when they work hard; expecting compensation concerning their efforts and
making sure the reward is worthwhile for them. So, it is necessary to spell out
what links hard work, how well one performs at his job, and the type of pay he
might end up with.
- Effort-Performance Relationship: Make sure employees grasp the way they
perform because of the efforts they should put. This may include having regular
training and development programs.
- Performance-Reward Relationship: Make it clear that performance is rewarded.
The best way to do this is to have a transparent performance review system that
links bonuses directly to performance outcomes.
- Rewards-Value Relationship: Employees should be rewarded for their hard work.
This can be achieved through a combination of in-kind (recognition, satisfaction)
and out-of-pocket (raise, bonuses) (Lawler III, E. E., & Suttle, J. L. 1973).
b. Goal Setting Theory
- The motivation theory called Goal Setting Theory explains that workers are
encouraged to work if they have clear, specific, challenging and achievable goals.
In this regard, the approach is to use a goal-setting mechanism that is detailed in
nature.
- Specific and Clear Goals: Create clear and specific objectives for each employee.
These objectives should clearly define what the employee is expected to achieve
and how the employee will measure their success.
- Challenging Goals: The objectives should be difficult but attainable. Objectives
that are difficult encourage effort, encourage perseverance, and encourage the
implementation of effective methods.
- Goal Commitment: Employees need to be driven to achieve their goals. The best
way to do this is to involve employees in the process of setting goals and to match
their individual goals to organizational goals.
- Feedback: Evaluate goal progress on a regular basis. This allows employees to see
if they’re on the right track or if they need to make changes to their goals or
processes (Jeong, Y. H., Healy, L. C., & McEwan, D. 2023).
2. Samsung current situation
- In Vietnam, Samsung has developed a complete employee benefit policy which
concentrates more on safety, comfort, health and general living conditions of the
workers. A system of buses serving about 60 kilometers from the plant is offered
to all those who are working every day with almost 1,000 buses. Marketing road
safety includes a safety campaign and Motorcycle safety experience room for
training purposes, among others.
- Over 30,000 employees live in dormitories situated within the factories where they
work. These dorms are not only for sleeping, but also for gathering, having fun
and meeting daily needs; they are a hive of activity because they have been fitted
with luxurious furnishings.
- Samsung’s catering system has ensured proper nutrition by running 7 restaurants
with nearly 1,000 cooks who deliver around 120,000 meals to the employees daily.
A monthly meal plan is also available for pregnant women; furthermore, the
company allows them to take half of the sum while on maternity leave for the first
few months.
- Health is the priority. Samsung Vietnam built a medical center with modern
facilities to provide free medical examination and treatment to its employees and
suppliers. Furthermore, the center offers education on reproductive health as well
as counseling sessions for expectant mothers not forgetting consultations on
distribution of contraceptives.
- Samsung Vietnam allows employees to participate in different activities, with over
seventy clubs funded by the company. Employees also enjoy events such as
Family Day, Festival Day, GWP travel program, Sports Day, and Open Day.
- Samsung already has in place support programs, by cooperating with labor unions
in Bac Ninh and Thai Nguyen, for implementing the company’s “Mái ấm công
đoàn” program. Moreover, Samsung has built a CSR Booth – Samsung Warm
Heart Tree for the disadvantaged employees, renovates them under Happy House
Program and supports disadvantaged ward (Samsung newsroom Vietnam, 2023).
3. Intrinsic and extrinsic motivation
- Many practices have been accomplished by the Samsung Electronics Vietnam
(SEV) and Samsung Electronics Vietnam – Thai Nguyen (SEVT) to inspire
employees in a different way and in two different dimensions.
a. Intrinsic motivation
- Internal motivation is an inner drive that is motivated by self-interest or enjoyment
rather than external rewards or punishments.
- There are many ways in which SEV and SEVT encourage internal motivation.
Such companies create an atmosphere that promotes good health and
professionalism, hence guaranteeing employees’ well-being (Fishbach, A., &
Woolley, K. 2022). This generates both pride and happiness that are strong forces
for internal motivation.
- Firms also concentrate on how employees grow, their training, job satisfaction.
Their employees become motivated through intrinsic desire when they are given
chances for personal development that enable learning and success in life (Deci, E.
L., Nezlek, J., & Sheinman, L. 1981).
- Furthermore the Certificate of Merit from the Vietnam General Confederation of
Labor (VNCL) and recognition on “Enterprises for Laborers 2017” list as well can
make employees have more pride and satisfaction about what they do as they will
strive even harder just to make sure that more people notice their efforts—thus
making them work better without anyone asking for it, thereby improving how
committed they are regardless of whether they like their jobs or not.
b. extrinsic motivation
- On the contrary, extrinsic motivation hails from rewards or outcomes from
external sources (Bénabou, R., & Tirole, J. 2003). SEVT, and in fact SEV , has
various advantages which serve as extrinsic motivators. For example, SEV
provides maternal leave guarantees and preferential treatment of expectant
mothers, which could be taken as a reward. They also offer contemporary
accommodation and services like a college hall housing a movie theater, welfare
rooms, supermarket, hair dressing salon, a yoga room, gym.
- Providing better living conditions contributes hugely to employees’ motivation
SEVT has structures aimed at enhancing lives of its employees, with around
68,000 of them and this comprises 550 state-of-the-art vehicles to pick them from
nearby provinces on daily basis.
- In the manner that SEV, SEVT gives wonderful living experiences having one
single dormitory consisting of 26 houses capable of accommodating over 22,000
staff members built in a qualitative way. These are referred to as reward facilities
and can be seen to be a source of motivation for employees to remain within an
organization producing improved performances (Dermer, J. 1975).
4. Motivational strategies
- The integration of Expectancy Theory and Goal Setting Theory provides a
comprehensive framework for motivating individuals in a team setting.
- One way to come up with a motivation strategy that integrates these two theories
is by first giving team members precise and tough targets which they must meet.
For these set targets to be effective they need to be SMART meaning – Specific,
Measurable, Achievable, Relevant and Time-bound (Suttle, J. L. 1973). This is
according to the Goal Setting Theory and it also directs the team members. One
thing the goals ought to be is not only specific but also challenging so that team
members can aim for perfection instead of being average.
- All team members ought to know what is required of them to achieve their
objectives. This involves giving them enough resources and support if they are to
get what they want done properly. The latter serves as an explanation based on
“expectancy” considered under Expectancy Theory, ensuring that team member’s
efforts lead to better performance.
- We are going to link performance to rewards as the third step in our strategy. Team
members need to understand that what they achieve is directly related to the
rewards they get (Svorobovich, L. 2019). Intrinsic rewards for instance involve
bonuses while personal development would be an extrinsic reward example. This
satisfies one part (instrumentality) within expectancy theory where individuals
must be confident enough before they can get any promotions or raise in pay.
- The fourth step is making sure that team members value rewards. The rewards
should be meaningful and valued by the team members (Saari, J. 1990). To do this,
understand what motivates each team member and then tailor the rewards
accordingly. The ‘valence’ of the Expectancy Theory is addressed by this since it
guarantees that team members consider the rewards to be valuable.
- One way to move in our scheme is by giving feedback on a regular basis. Team
members need to be given regular feedback so that they know where they stand in
relation to their goals, as well as areas which should be improved upon. This is in
line with what Goal Setting Theory advocates for, since it stresses that feedback
must be sought after for people to succeed.
- To get the team members to commit themselves, the sixth phase has to do with
building commitment. This will be achieved by engaging them in setting
objectives and establishing an environment that is supportive. Such a strategy is in
line with the Goal Setting Theory, which underlines the significance of goal
commitment.
- The last measure which we are going to perform is encouraging trust in success.
We create a positive atmosphere where the members believe that they can achieve
their objectives (McEwan, D. 2023). By celebrating minor achievements and
giving encouraging comments, they can be achieved. It is consistent with the
expectancy theory as it involves in persuading the team members to believe that
good performance would only be achieved when they put their efforts.
- This strategy comprehensively motivates by using Expectancy Theory and Goal
Setting Theory, takes into account performance process and results and helps to
achieve high performance. It guarantees team members’ understanding of their
assignments, as well as ensuring they are sure their work will be compensated for,
therefore, increasing their motivation for performance. There is no doubt that a
highly efficient team is a motivated team hence this strategy acts as a guideline on
how to create a team that is highly motivated and performs highly.
III. Task 2
1. Definition
- Performance management is like supervision as it helps managers keep track and
access work done by employees. It is a series of activities and programs that are
carried out by companies with the aim of developing their employees in a way that
allows them to discharge their duties with high efficiency (McDermott, M. 2003).
- The process includes setting clear expectations, coming up with individual
objectives and goals that are in line with those of teams as well as organizations,
giving continuous feedback and evaluating the results obtained.
- MBO is the abbreviation for Management by Objectives, which is a strategic
management model designed to enhance the performance of any given
organization through the identification of objectives that are jointly agreed upon
by both management and the employees (Nankervis, A. R., & Compton, R. L.
2006).
- Performance indicators (KPIs) are plainly visible yardsticks used to compare a
company’s overall long-term performance in a finance-related setting. More
precisely, they can be used to measure how a particular company fairs in
comparison to others within the same sector in terms of strategy, finance and
operations (Nankervis, A. R., & Compton, R. L. 2006).
2. MBO and KPIs
- SEV can apply Management by Objectives (MBO) and Key Performance
Indicators (KPI) approaches to manage performance and drive continuous
improvement in different business situations.
- Setting Clear Objectives (MBO): At the start of MBO, it is important to set
definite, clear and attainable goals. Bear in mind that these objectives should
match those of the organization, at large. Assuming SEV wants to achieve its goals
in terms of enhanced efficiency in production, elimination of refuse materials, or
better product quality (Kondrasuk, J. N. 1981).
- Developing Key Performance Indicators (KPIs): After you have established your
goals, you can check SEV’s progress towards these goals using Key Performance
Indicators (KPIs). KPIs must be measurable items with a direct bearing on these
goals. E.g., increasing production efficiency may result in the introduction of a
KPI based upon the number of units produced per hour (Hedges, I. 2004).
- Monitoring and Evaluating Performance: SEV managers have to perform
consistent monitoring and evaluation of performance against predefined KPIs. For
instance, this can entail having weekly discussions with staff on what has been
accomplished, areas that have faced challenges, and possible ways forward. Take
remedial measures where performance is below the expected standard.
- Providing Feedback and Recognition: In managing MBO and KPI, giving
feedback is indeed very important. Therefore, for SEV managers to foster
dedication among their staff members, it is important that they give a recognition
of various achievements attained while posing areas that show how employees
may better their work. This is what can inspire them and make them know how
hence it boost on the accomplishment of their jobs within the organization.
- Reviewing and Adjusting Objectives and KPIs: Goals and key performance
indicators should be dynamic. You must check periodically and adjust them so that
these changes reflect on the business environment, company strategy or employee
roles and responsibilities.
3. Leadership and management approaches for managing performance supports
continuous improvement.
- Lee Kun-Hee, the man who has been responsible for guiding Samsung Electronics
(SEV) forward, has shown us a great example on how leadership as well as
managerial techniques can effectively facilitate constant improvement through use
of Key performance indicators (KPI”s) and Management by objectives (MBO).
One of his big takeways from Japan which made him realize that it had a very
different approach was the tremendous change that occurred within Samsung’s
managerial structure towards quality oriented objectives. This quality orientation
has been captured in their mission statement: “Based on a proficient quality
management framework, we deliver the best products and services tailored to our
client specifications and anticipations” (SEV, 2022).
- Samsung set up its first quality control system by looking at how Japanese firms
did it. But Samsung added some Western strategies such as Six Sigma and TRIZ,
hoping to do a better job than their Japanese rivals too. In integrating disparate
processes and ideas, Samsung has managed to maintain high standards of quality
and profitability heightFor ever.
- Samsung’s approach to management involves the Samsung Production System
(SPS). SPS is another integral part in Samsung’s approach to management which
focuses on speed, flexibility and high quality (Lee, J., Lee, K., & Heo, J. 2015).
Speed and flexibility are the main characteristics of the production line. The
production line integrates cellular manufacturing and modular production systems
in one system, unlike other systems. Samsung uses a flexible production system to
manufacture every product. This assists in creating different kinds of models
needed globally while maintaining high speeds in development and production
hence avoiding delays.
- Samsung has created Quality Management System (QMS) that complies with
international standards like ISO 9001 or IATF16949, and works to fulfill
customer’s wishes without a pause (Heras, I. 2012). These serve as key
performance indicators (KPIs) and enable the company to watch over its own
operations thus remain at the best possible level.
- A good example application of Management by Objectives (MBO) in Samsung is
its merit-oriented personnel system which consists of two systems – one for the
promotion of managers and another for the staff. In this system managers and
employees define clear and achievable objectives and methods for reaching them
while making use of these goals as a way of ensuring that they engage in constant
improvements.
- Employee training is what Samsung considers as crucial for its success. For this
reason, it has put together a comprehensive teaching as well as motivating workers
to perfect programs such as Six Sigma. Six Sigma is made familiar to every
specialist in quality; they start from green belt, black belt up to master black belt
(Woodall, W. H. 2008).
- Samsung’s management leadership techniques as well as employ of KPIs and
MBO have been instrumental in driving conformance improvement in the
organization while fostering quality culture that thrives on creativity and tasks
individuals with constant learning and growth within its ranks. This has produced
better performance, more productivity, and success in general for the company.
Other enterprises eager to monitor performance and enhance progress can obtain
useful information from an analysis of the Samsung case.
4. Recommendation to improve performance management
- Performance management is the ultimate guide for your project. In the State
Employee Vehicle, goals should be formed by the top management to ensure they
correspond with the organization’s annual plan. It ensures that everyone is moving
in the same direction. Once a goal is achieved within a regular performance
management system, this process is highlighted in the software thus allowing
colleagues and supervisors to see them. This creates a sense of achievement
among the staff making them work harder than before.
- Continuous feedback is critical for helping employees develop and improve their
performance. SEV must instigate regular feedback sessions between managers and
employees each year. Employees are encouraged to take control of their
development by gaining a common language for success-feedback. Feedback
sessions help in identifying mistakes and making small improvements in between
them too.
- It is important to extend performance discussions to cover situations other than
just one person. By encouraging team members to think about and set their own
goals, a team is able to assess itself at a higher level. Such an approach makes
people join forces more and guarantees that individual endeavors go in line with
those of a group and a company.
- Future success largely depends on those who manage their teams. They are
advised to not only evaluate skills for the future that their staff should acquire but
also appreciate the past. Forward-looking method ensures proper skill attaining
making those employed capable of coping up the challenges of tomorrow.
- Technology has the capability of greatly improving performance management
processes. To aid in cascading goals, learnings can be drawn from continuous
performance management into year-end reviews and technology can be used to
gain insights and identify issues before they become serious. This would make the
management processes more efficient and effective.
- Those who work in close proximity with employees should make sure that they
provide the kind of information which is required by those who are struggling
daily with other issues and concerns. Such a system should allow subordinates or
colleagues evaluate their colleagues' contributions towards overall goals as well as
personal job success therefore enhancing strategic employee involvement in
organizations’ activities while not neglecting job satisfaction level for individuals.
Peer reviews can also help managers determine from whom specific input might
come based on individual’s experience concerning employee workflow. It provides
an all-around appraisal of a person’s job performance hence encouraging respect
and mutual support among all stakeholders in the company.
IV. Conclusion
- To conclude, the study that was carried out at Samsung Electric Vietnam has
resulted in significant information on how motivational strategies for employees
could be developed, how leadership/management approaches would improve
organization’s performance while making it continuous as well as striving for
perfection even when reaching goals may seem impossible with present resources.
This research’s results may assist Samsung Vietnam Electric in developing
successful motivation tactics and leadership tactics, which ultimately result in
improved organizational performance as well as continuous growth. We hope that
these findings will benefit Samsung Electric Vietnam.
References
- Beatham, S., Anumba, C., Thorpe, T., & Hedges, I. (2004). KPIs: a critical
appraisal of their use in construction. Benchmarking: an international journal,
11(1), 93-117.
- Bénabou, R., & Tirole, J. (2003). Intrinsic and extrinsic motivation. The review of
economic studies, 70(3), 489-520.
- Bidiphar. MS Thesis, Ho Chi Minh University of Economics
- Chau Van Toan (2009). Factors influencing job satisfaction of the office staff in Ho
Chi Minh City”.
- Deci, E. L., Nezlek, J., & Sheinman, L. (1981). Characteristics of the rewarder and
intrinsic motivation of the rewardee. Journal of personality and social psychology,
40(1), 1.
- Dermer, J. (1975). The interrelationship of intrinsic and extrinsic motivation.
Academy of Management Journal, 18(1), 125-129.
- Elin Järnström (2012). Work motivation: A qualitative study that describes what
motivates
- employees with routine-based work tasks to go to work. University of Gothenburg
- Fishbach, A., & Woolley, K. (2022). The structure of intrinsic motivation. Annual
Review of Organizational Psychology and Organizational Behavior, 9, 339-363.
- Jeong, Y. H., Healy, L. C., & McEwan, D. (2023). The application of goal setting
theory to goal setting interventions in sport: A systematic review. International
review of sport and exercise psychology, 16(1), 474-499.
- Jeong, Y. H., Healy, L. C., & McEwan, D. (2023). The application of goal setting
theory to goal setting interventions in sport: A systematic review. International
review of sport and exercise psychology, 16(1), 474-499.
- Kirstein, M. (2010). The role of motivation in human resources: importance of
motivation factors
- Kondrasuk, J. N. (1981). Studies in MBO effectiveness. Academy of Management
Review, 6(3), 419-430.
- Lawler III, E. E., & McDermott, M. (2003). Current performance management
practices. The Journal of Total Rewards, 12(2), 49.
- Lawler III, E. E., & Suttle, J. L. (1973). Expectancy theory and job behavior.
Organizational behavior and human performance, 9(3), 482-503.
- Lawler III, E. E., & Suttle, J. L. (1973). Expectancy theory and job behavior.
Organizational behavior and human performance, 9(3), 482-503.
- Lee, J., Lee, K., & Heo, J. (2015). Supplier partnership strategy and global
competitiveness: A case of Samsung Electronics. Eurasian Journal of Business and
Management, 3(4), 1-12.
- Montgomery, D. C., & Woodall, W. H. (2008). An overview of six sigma.
International Statistical Review/Revue Internationale de Statistique, 329-346.
- MS Thesis, HO Chi Minh University of Economics
- Nankervis, A. R., & Compton, R. L. (2006). Performance management: theory in
practice?. Asia pacific Journal of human resources, 44(1), 83-101.
- [Link]. (n.d.). Samsung Electronics Recognized in Vietnam as One of
the Best Enterprises for Employees. [online] Available at:
[Link]
one-of-the-best-enterprises-for-employees.
- [Link]. (n.d.). Vietnam’s Báo Lao Động Newspaper Recognizes
Samsung Vietnam’s Employee Well-being Efforts. [online] Available at:
[Link]
samsung-vietnams-employee-well-being-efforts.
- Nguyen Thi Kim Anh (2011). Measurement of employees’ job satisfaction at the
Fresenius Kabi
- Nguyen Van Bay (2013). Factors influencing work motivation: a case study at
Joint Stock Company
- No 22, General Logistics Department, Mater thesis, Central Philippines University
- Nykyforenko, V., Kravchenko, V., Zbrytska, T., Kryvtsova, M., & Svorobovich, L.
(2019). Motivational monitoring as a component of effective human resource (HR)
strategy of company. Academy of Strategic Management Journal, 18(2), 1-6.
- Saari, J. (1990). On strategies and methods in company safety work: From
informational to motivational strategies. Journal of Occupational Accidents, 12(1-
3), 107-117.
- Science – Technology and Development, Ho Chi Minh National University Vol 8
(12).
- Tarí, J. J., Molina-Azorín, J. F., & Heras, I. (2012). Benefits of the ISO 9001 and
ISO 14001 standards: A literature review. Journal of Industrial Engineering and
Management (JIEM), 5(2), 297-322.
- Tran Kim Dung (2005). Measurement of job satisfaction within Vietnamese
context”. Journal of
- VietnamPlus (n.d.). How does Samsung Vietnam take care of its employees? |
EMagazine | Vietnam+ (VietnamPlus). [online] VietnamPlus. Available at:
[Link]
[Link].
