FACTORS AFFECTING EMPLOYEE PERFORMANCE

EVIDENCE FROM PETROVIETNAM ENGINEERING

CONSULTANCY J.S.C
Le Tran Thach Thao 1 Chiou-shu J. Hwang 2
1 2
9120223 9120223
[email protected] [email protected]

ABSTRACT independent variables, there are 3 factors

including leadership, motivation and training
Recently, most of organizations are fully have direct effects toward employee
aware of the importance of employee performance at the case company PVE.
performance, increasing employee performance
or to find out the ways through which high level Keywords: leadership, motivation, training,
of employees performance can be achieved is employee performance, Vietnam
becoming one of the decisive factors for any
organization success. Managements mission is
to get people together to accomplish corporate
1. MOTIVATION, AIM AND
goals and objectives by using available OBJECTIVES OF RESEARCH
resources efficiently and effectively. Manpower It is important to understand that how the
performance can be increased by putting efforts employee performance or employees job
to factors that enhance the employees behavior of assisting departments, management
motivational level, creativity, job satisfaction levels, and executive leaders impact the
and comfort workplace environment, etc organizational goals in either a positive or
The research aimed to identify and negative way.
measure the level of factors affecting the Employees performance is affected by
effectiveness of the job performance of the numerous factors at work place. This study will
employees working at Petro Vietnam focus on the scenario of oil and gas industry to
Engineering Consultancy J.S.C, through know about factors affecting the performance of
identifying the variables include leadership, employees. It will also highlight how variables
organizational culture, working environment, affect the employees performance either
motivation and training. This study is positive or negative. The aim and key objectives
quantitative in nature and aimed to find out the of this research are as follows:
relationship between above mentioned variables
and employees performance in oil and gas I. To identify and analyze the factors
industry of Vietnam focusing Petro Vietnam that influence employees
Engineering Consultancy J.S.C (PVE) as a performance within an organization,
sample based on 650 employees. including:

The study will be analyzed by applying The relationship between leadership

multiple regression analysis using SPSS and employees performance;
software because there are 5 independent The impact of organizational
variables and their affects have to be seen on culture on employees
the performance of the employees which is the performance;
sole dependent variable. For this purpose data The relationship between working
was collected from PVE with the research environment and employees
sample consisted of 650 employees working at performance;
PVE, where questionnaires designed by the The relationship between
researcher were used to analyze the factors motivation and employees
affecting employee performance. performance;
The relationship between training
The purpose of this study is to investigate and employees performance
existing literature and theory in order to initially II. To identify, analyze and measure the
construct a conceptual framework of factors level of employees work performance
affecting job performance. The results of the in accordance with the influenced
study revealed in a specific case and researcher factors with the collection of data and
concluded that among 5 above-mentioned information within an organization.
III. To establish valid conclusions and 2. LITERATURE REVIEW
recommendations with the identification of
impacts, both positive and negative factors The concept of human resources
on employees work performance within an management and the theoretical of employee
organization. performance will be first reviewed. Secondly,
the researcher will mention some factors
1.1 Brief introduction of case company affecting employee performance through some
PVE academic journals.

Petrovietnam Engineering Consultancy 2.1 The Concept of Human Resource

Joint Stock Company (PVE) was built and Management
grown up in association with the general Employees are resources in organizations,
ongoing development of oil and gas industry. In and as such they need to be trained and
1998, PVEs predecessor was established, and developed properly in order to achieve an
began operation with gradual, consistent organizations goals and expectations (Brewster,
development, have developed subsidiaries for 2007). The initial development of the HRM
the foreseeable future. In 2005, the company concept is based on the effective utilization of
became a Joint Stock Company and transferred people, and to treat them as resources leading to
its organizational structure to Mother the realization of business strategies and
Subsidiary Model in 2011, operating in organizational objectives (Zhu, Warner &
investment and engineering consultancy for oil Rowley, 2007). HRM contributes to create high
and gas, civil and industrial projects. performance work systems by linking various
1.2 PVEs Human Resources employees in different departments in the same
organization (Brewster, 2007). Organizations
From the first days of establishment in use the effectual HRM system to increase their
1998, total manpower of PVE is approximately competitiveness by investing in employee
50 and considerably increased to 650 up to now. development (Sutiyono, 2007).
Pursuant to education level, PVEs manpower is
mostly Bachelor/ Engineering Degree HRM can be defined as The process of
(approximately 70%) and nearly 8% of analyzing and managing an organizations
manpower holds Post-graduate Degree (Master/ human resource needs to ensure satisfaction of
PhD.) as described in below chart: its strategic objectives (Hellriegel, Jackson,
Slocum and Staude, 2008) and The policies
and practices involved in carrying out the
people or human resources aspects of a
management position, including recruitment,
screening, training and appraising (Dessler,
2008).
HRM is a pattern of planned HR
development and activities which affect the
behavior of individuals with the intention of
Figure 1 - PVE's manpower's education enabling organizations to achieve their goals
(Wood, Holman & Stride, 2006). All HR
activities are dependent upon the managers
PVE has owned young and high efforts to formulate and implement the
educated personnel, being considered as its organization strategy (Wei & Lau, 2005). HRM
strengths for potential and sustainable refers to the policies, practices, and systems in
development in the near future in case having organizations for recruiting and developing
suitable professional training and development their employees, as well as influencing their
plan for personnel complying with its behavior, attitudes, and performance to achieve
development strategy. Otherwise, lacking of the organizations goals (Stone, 2008). HRM
experienced superior to be in charge of competency contains an organizations ability to
important positions such as Project Manager, recruit, train and develop, maintain and utilize
Engineering Manager, Top Managersetc. is prospect-oriented employees with their
very challenging for its sustainable growth. capacities in a way that they comply with their
Facing with these challenges, besides other organizations goals (Zaugg & Thom, 2003).
solutions, PVE focuses on improving its current 2.2 The Concept of Employee Performance
competitive ability by paying attention to
improve its employee performance for better Performance is associated with quantity of
organization performance and productivity. output, quality of output, timeliness of output,
presence/ attendance on the job, efficiency of 2004). The leadership style within an
the work completed [and] effectiveness of work organization has a bearing on encouraging or
completed (Mathis & Jackson 2009). inhibiting employees performance (Armstrong
& Murlis 2004; Cronje et al 2001).
Employee Performance is the successful
completion of tasks by a selected individual or 2.3.2 Coaching
individuals, as set and measured by a supervisor
Coaching has become an important
or organization, to pre-defined acceptable
technique to improve performance (Champathes,
standards while efficiently and effectively
2006). It is not a one way communication and
utilizing available resource within a changing
proves to be a two way communications where
environment.
coaches identify what can be improved and how
Aguinis (2009) described that the it can be improved. Further coaching addresses
definition of performance does not include the the belief and behaviors that hinder
results of an employees behavior, but only the performance (Toit, 2007). It can be further seen
behaviors themselves. Performance is about that coaching is all about helping someone else
behavior or what employees do, not about what to improve performance (Starr, 2004).
employees produce or the outcomes of their
2.3.3 Empowerment
work. Perceived employee performance
represents the general belief of the employee Duvall (1999) defines success as
about his behavior and contributions in the achievement, accomplishment and attainment
success of organization. Employee performance which is consequence of empowerment as
may be taken in the perspective of three factors follows: (1) Individual success in form of
which makes possible to perform better than employees role performance, (2)
others, determinants of performance may be Organizational success which is achieved as
such as declarative knowledge, procedural members of the organization accomplish
knowledge and motivation (McCloy et al., collective organizational goals and objectives,
1994). HR practices have positive impact on and (3) As organizational members share a
performance of individuals. mutually beneficial and satisfying work
experience meeting both social and personal
Carlson et al. (2006) proposed five human
growth needs. Further, empowerment had
resource management practices that affect
significant positive correlations with both
performance which are setting competitive
performance and satisfaction (Bartram and
compensation level, training and development,
Casimir, 2007). And specifically empowerment
performance appraisal, recruitment package,
was more strongly correlated with the in-role
and maintaining morale. Tessema and Soeters
performance of followers than with satisfaction
(2006) have carried out study on eight HR
with the leader.
practices including recruitment and selection
practices, placement practices, training, 2.3.4 Participation
compensation, employee performance
In Chen and Tjosvold research 2006, they
evaluation, promotion, grievance procedure and
pension or social security in relation with the revealed that participation management is about
perceived performance of employees. Therefore, involving employees in the decision making
process where the employees feel that they have
it is concluded that these HR practices have
the opportunity to discuss problems and can
positive and significant associations with the
influence organizational decisions. The overall
perceived performance of employees.
impact of participation is increased employee
2.3 Factors Affecting Employee job performance and low turn-over. In addition,
Performance organizations can act to increase or decrease the
levels of these mediator variables within their
According to some researchers and
personals and potentially strengthen the positive
practitioners, there are certain factors
performance effects of employee participation
individually and collectively effect on the
(Lam et al, 2002).
performance of employees in a positive or
negative way, including: Employee will be motivated because
management considers them as partners in
2.3.1 Leadership
contributing to organizational success instead of
Leadership is a process whereby an being seen as mere subordinates and therefore
individual influences a group of individuals to will avoid engaging into counterproductive
achieve common goals (Northouse, 2007). behaviors hence improved performance
Leadership style is the combination of attitude through timely achievement of organizational
and behavior of a leader, which leads to certain goals and objectives (Carrel, Kuzmits & Elbert,
patterns in dealing with the followers (Dubrin, 1989).
 2.3.5 Organizational Culture environment and for enhancing the overall
innovations of an organization (Janssen, O. and
Organizational Culture is common values
NW. Van Yperen, 2004).
and behaviors of the people that considered as a
tool leads to the successful achievement of Working environment can be divided into
organization goals (Schein, 1990). two components namely physical and
Organizational culture is the mindset of people behavioral components. The physical
that distinguishes them from each other, within environment consists of elements that relate to
the organization of outside the organization. the office occupiers ability to physically
This includes values, beliefs, and behaviors of connect with their office environment. The
the employees difference from the other behavioral environment consists of components
organization (Hofstede, 1991). that relate to how well the office occupiers
connect with each other, and the impact the
Strong culture in the organization is very
office environment can have on the behavior of
helpful to enhance the performance of the
the individual. According to Haynes (2008), the
employees that leads to the goal achievement
physical environment with the productivity of
and increase the overall performance of the
its occupants falls into two main categories
organization (Deal and Kennedy, 1982).
office layout (open-plan verses cellular offices)
According to the Stewart (2010), norms and
and office comfort (matching the office
values of organizational culture highly effect on
environment to the work processes), and the
those who are directly or indirectly involved
behavioral environment represents the two main
with the organization. These norms are invisible
components namely interaction and distraction.
but have a great impact on the performance of
employees and profitability. The most important 2.5 Motivation
characteristic is shared value.
Motivation is a key determinant of job
A strong organizational culture supports performance and a poorly motivated force will
adaptation and develops organizations be costly in terms of excessive staff turnover,
employee performance by motivating higher expenses, negative morale and increased
employees toward a shared goal and objective; use of managements time (Jobber, 1994).
and finally shaping and channeling employees Therefore, management must know what
behavior to that specific direction should be at exactly stimulates their staff so resources are
the top of operational and functional strategies not misallocated and dissatisfaction develops
(Daft, 1984). Shared value of employees is one among employees (Jobber, 1994). As Green
of the basic components of organizational (2000) has described motivation to be proactive
culture (Smit and Cronje, 1992; Hellriegel et al, in the sense of; in dealing with employees who
1998). Schein (1994) clarifies that value which are high performers, motivation is essential,
is a set of social norms that define the rules or otherwise their performance will decline or they
framework for social interaction and will simply leave the job. While dealing with
communication behaviors of societys members, low performers, motivation is a prerequisite;
is a reflection of causal culture assumptions. otherwise these employees will drag results
Academics and practitioners argue that the down, lower productivity and certainly would
performance of an organization is dependent on not leave the organization, as they will have
the degree to which the values of the culture are nowhere else to go.
widely shared (Peters and Waterman, 1982).
A motivated workforce is essential
Similarly, it is widely argued that shared and
because the complete participation of
strongly held values enable management to
employees will certainly drive the profitability
predict employee reactions to certain strategic
of the organization (Carlsen, 2003), Darmon
options and by reducing these values, the
(1974) believe motivation is the educating of
consequences maybe undesirable (Ogbonna,
employees to channel their efforts towards
1993).
organizational activities and thus increasing the
2.4 Working Environment performance of the said boundary spanning
roles. According to Denton (1991), a motivated
The influence degree of working
workforce will lead to greater understanding,
environment is the counterpart requirement of a
acceptance, commitment to implementation,
creative job. Higher job satisfaction and lower
understanding of objectives and decision
intentions to leave were found for those
making between management and employees.
individuals whose work environment
There are 6 most important elements of
accompanied the creative requirements of jobs.
motivation: rewards, pay, profit sharing,
Enhancing the creative performance of
promotion, recognition, job enrichment.
employees has been recommended as dire for
remaining competitive in a dynamic
2.6 Training
The developing process of employees
skill in order to improve the performance is
called training (Swanson, 1999). Training is a
type of activity which is planned, systematic
and it results in enhanced level of skill,
knowledge and competency that are necessary
to perform work effectively (Gordon, 1992).
Existing literature presents evidence of an
existence of obvious effects of training and
development on employee performance.
According to Wright & Geroy (2001) notes that
employee competencies change through Figure 1. - Research Framework
effective training programs. Training has been
proved to generate performance improvement
related benefits for the employee as well as for 3.1 Hypothesis
the organization by positively influencing The hypothesis assumes that employee
employee performance through the performance is affected by and dependent on
development of employee knowledge, skills, multiple factors including leadership,
ability, competencies and behavior (Appiah organizational culture, working environment,
2010; Harrison 2000; Guest 1997). motivation and training. This study aims to
Most of managers give training to their figure out the effect of above-mentioned
employees for three main purposes (Belcourt, variables on the performance of employee in
Wright and Saks, 2000), which are (1) to addition to evaluate the level and sphere of
increase productivity or the performance of influence that they contribute toward
employees; (2) to achieve organizational goals; heightened or poor performance of employees
and (3) to invest in employees to succeed in the within an organization.
unpredictable and turbulent business 3.1.1 Relationships between Leadership
environment. There are 3 most important types and Employees Performance.
of training: training needs assessment (TNA),
training contents and delivery approaches, on H1: There is a positive relationship
the job training (OJT). between leadership and employees
performance.
This study is about the leadership attitude
3. RESEARCH FRAMEWORK that affects employee performance. If the
leaders coach, empower or enhance the
Based on the critical review of the
employees participation to the job, the
literature, it is clear that employee performance
employees are willing to work energetically.
can be influenced by several factors, including
The performance of the employees is raised
leadership style, organizational culture,
positively if the control and attitude of leaders
workplace environment, training, motivation,
are interactive and promoting, then the
remuneration, etc
employees work in a betterment of the
The researcher is self-motivated and organization. If the manager is unbiased
self-initiated to complete this research project in towards employees, these organizations
relation to academic, organizational and progress more than others. It is necessary that
personal perspective. Following to reliable manager is unbiased and treats every employee
sources of gaining information through books, without discrimination.
journals, articles, government records or
3.1.2 The effect of Organizational Culture
previous research on the same topics, the
on Employees Performance
researcher developed a Research Framework for
analysis of the five factors significantly H2: There is a positive relationship
affecting the employee performance as between the organizational culture and
described employees performance.
below:
According to this study, the organizational
culture has influences on upgrading the
employees performance. If the environment is
pleasant and comfortable to work, the
employees are encouraged and motivated to
work effectively and efficiently. The good and There is a strong relationship between
competitive organization culture enhances the training and employee performance. As the
performance of the work force. The means of training is giving new or current
organizational culture that the employees can employees the skills they need to perform at
feel like home will support them to work their various jobs (Dessler, 2008) or to help
dedicatedly. The members of the organizations them acquire competencies for the job
are encouraged to work effectively if the completion, in correlations of employees
organizational culture encourages to work performance, training will increase employees
effectively, is strong and motivating. ability to perform on the job in a better way. In
Organizational culture is a reflection of addition, training is supposed to be a
employees performance. It is directly non-financial motivator to reward employees
proportional to the employees performance. for their good performance.
3.1.3 Relationships between Working
Environment and Employees
Performance 4. RESEARCH METHODOLOGY
H3: There is a positive relationship In this thesis, the researcher will use
between the working environment and quantitative method to analyze and study the
employees performance. factors affecting employee performance. This is
a type of research that explaining phenomena
The working environment (including by collecting numerical data that are analyzed
physical and behavioral components), using mathematically based methods (in
depending on the administrative, management, particular statistics) (Creswell, 1994). For the
individuals and interaction patterns between purpose of this study, employee performance is
them philosophy, is a set of characteristics that supposed to be a dependent variable and other
distinguish the organization from others and the factors affecting employee performance are
characteristics of the organizations internal independent ones.
environment results from the interaction
outcome of goals, regulations, rules, procedures 4.1 Instrument of Data Collection
and policies that are applied in the organization For this studys objective, the researchers
and well known by the employees in the choose Questionnaire to collect data one of
organization, moreover directly and indirectly the most common data collection instruments.
affects the individuals behavior and Questionnaires are doubtless one of the primary
performance at work eventually leads to sources of obtaining data in any research
achieve the goals of the organization. endeavor. However, the critical point is that
3.1.4 The effect of Motivation on when designing a questionnaire, the researcher
Employees Performance should ensure that it is valid, reliable and
unambiguous (Richards & Schmidt, 2002).
H4: There is a positive relationship
between motivation and employees The researcher use a series of questions
performance designed to find out required information,
which is filled in by all participants in the
It is very important to motivate employees sample and can be gathered either by written
for increasing their performance. In an questionnaire or online survey in which the
organization where employees are valued for respondents can answer the questionnaire online.
their knowledge, qualification and skills, the The researcher can utilize a high-structured
best employee motivation efforts focus on what questionnaire to improve the validity of the data
employees deem to be important. Employee through controlling the respondents answers
motivation become a crucial factor to increase under research objectives. As Vietnamese
employees longevity, productivity, better moral, culture, people often hesitate to express their
better performance and create better point of view, assessment, feelings or
organization performance. Pay, rewards, profit recommendations straightforward, the
sharing, promotion, recognition, job enrichment, questionnaires will be anonymous or all of the
decisional participation, authority, health respondents names and information would be
insurance etc All these factors can motivate kept confidential. Thus, the respondents may
employees and increase their performance. feel free to give their information or ideas
3.1.5 Relationships between Training and honestly and the reliability of the data collected
Employees Performance is increased. In addition, using this instrument is
to help the researcher to summarize, using
H5: There is a positive relationship supportive tool as data analysis software to
between training and employees performance work out the research and make a report
favorably. respondents and the researcher received 280
answers, no questionnaire is unsatisfactory. A
For the research approach, to collect
total 280 responses were collected is acceptable
relevant data from the right people or
and consistent with the previous research of
respondents within the case study organization,
requesting the minimum sample size for the
the researcher issues 650 questionnaires for the
questionnaire of 23 questions is 23*5 = 115
total employees (respondents) of the case
samples.
company because of particular research area.
Data collection will be done by taking into As described in Table 1, we can see that
account within the case studied organization most of the employees from the survey are
PVE so that maximum results can be obtained. young and mostly in two groups from 18 to 35
A population of 650 employees is targeted and 36 to 55. Within the sample, the largest
sector. For survey, closed ended questionnaire proportion is from 18 to 35 years old, with 171
will be designed to collect data. Questionnaire participants = 61.1%; followed by from 36 to
will be constructed by formulating closed ended 55 years old, with 100 participants = 35.7%;
so that there is maximum margin to know about over 55 year old with 9 participants = 3.2%; no
the effect of leadership, organizational culture, participant is under 18 years old.
working environment, motivation, and training
Table 1. - Frequency results on Demographics
on the performance of employees the case
of participants
company PVE.
4.2 Questionnaire Design Frequency Percent
The questions are designed to be clear and Gender Male 213 76.1
easy to understand. The questionnaires include Female 67 23.9
items to measure the different variables of the Total 280 100.0
research model to study the impact of
leadership, organizational culture, working
environment, motivation and training on Frequency Percent
employee performance. The respondents are Age From 18 to
171 61.1
expected to provide necessary information 35
according to the designed questionnaire From 36 to
100 35.7
consisted of the followings matters: 55
Over 55 9 3.2
I. Leadership (including 3 sub-items)
Total 280 100.0
II. Organizational culture (including 3
sub-items)
III. Working environment (including 5 Frequency Percent
sub-items) Edu College/
215 76.8
IV. Motivation (including 6 sub-items) University
V. Training (including 3 sub-items) Higher
65 23.2
VI. Performance (including 3 sub-items) Education
Total 280 100.0
The questionnaire is included a total of 23
questions and was designed on Likert Scale
type from 1 to 5 such as strongly disagree, Frequency Percent
disagree, neutral, agree, and strongly agree. Position Division/
Respondents answer the given questions by Department
marking the correct and suitable choice. The Manager/ 20 7.1
questionnaire is in bilingual (English and Deputy
Vietnamese) for the best comprehension and Manager
interpretation. Furthermore, respondents need to Team
supplement other related information including Leader/
gender, age group, level of education and job Deputy 25 8.9
position. Team
Leader
4.3 About the Sample
Senior
The population for this study comprised Engineer/
40 14.3
employees in the case company area in Ho Chi Senior
Minh City. With total manpower of PVE as the Executive
population are approximately 650. Accordingly, Engineer/
195 69.6
there are 650 questionnaires are delivered in Executive
paper and online survey method to the
 strongly than working environment.
Frequency Percent
Total 280 100.0
Considering the Education, 215
Table 2 Summary of Hypotheses test results
participants (76.8%) are college/ university
levels and 65 participants (23.2%) are higher Hypothesis Test
education level, indicating that the job result
specification in this company requires at least H1 LEA is positively related to EP Supported
college/ university levels or higher education. H2 CUL is positively related to EP Not
Supported
H3 ENV is positively related to EP Not
5. KEY SUMMARY OF THE Supported
RESEARCH FINDINGS H4 MOV is positively related to EP Supported
With the test results above, there are 3 H5 TRA is positively related to EP Supported
Hypothesis including H1, H4 and H5 are
supported in accordance with the theory
presented Literature Review. The Hypothesis
H2 and H3 are not supported or CUL and ENV 6. CONCLUSIONS
are not positively related to EP.
Employee performance is supposed to be
The Hypothesis H2 is not supported one of the most important factor affecting the
means the relationship between Organizational overall organization performance and the
Culture and Employee Performance is success of the organization in the competitive
inconsiderable at PVE. In the researchers market nowadays. The main purpose of this
observation, this matter is possibly originated thesis is to analyze the factors affecting
from the real situation at PVE case company, employee performance at PVE as the case
due to the fact that PVE has just built and company. Through the data analysis mentioned
popularized the Corporate Culture among the in the above chapters, the researcher figured out
whole organization in 3 recent years, their the general conclusions:
employees have not been aware of the company
culture sufficiently and vice versa, PVEs top Firstly, there are three different main
executives have not adequately launched the factors affecting employee performance at the
Corporate Culture and shared corporate values, case company PVE including: Leadership,
goals and objectives among its employees for Motivation and Training. The study proved that
their best consciousness and performance. leadership style affects employee performance.
Through leaders coach, empowerment or
The Hypothesis H3 is not supported; increasing the employees participation, the
indicating working environment (including employees definitely perform in a better way.
office space/ infrastructure, working tools, Motivating employees for increasing their
co-workers relationship and department performance is one of the most important factor.
working interaction) is unremarkably related Especially the case company PVE, an
with PVE employee performance. The organization where employees are much valued
researcher recognizes some arguments founded for their high-education, knowledge,
on facts of the case company to explain these qualification, skills and experience, the best
results. Established in 1998, PVE has been employee can perform is the best they are
developing its operation for over 15 years, the motivated. Through this study, the researcher
company was equipped professional office emphasize the strong relationship between
space/ infrastructure and sufficient working training and employee performance. Repeating
tools to be qualified with facility requirements the case company which is operating in
of international projects. In addition, as a engineering consultancy in oil and gas industry,
project-driven organization, most of the projects training is a successful technique for better
are executed in project team area under a very employees performance. Practically, training
strict working rules and procedures which are for employee to approach new technology and
approved by top executives and clients. The improve their competencies to be qualified for
organization set up a complete working high-technical and international projects
procedure system among disciplines to control become a very important determinant for
and ensure the departments cooperation enhancing the companys competitive
efficiency. Hence, PVE employee performance advantage in the market and its sustainable
is probably affected by other factors more development.
 Secondly, based on the results analyzed in II. Building empowerment through
Chapter IV, the three factors (leadership, developing a clear mission complying
motivation and training) have mutual with the company strategy (sharing
interactions. They not only affect the employee information, educate employee at all
performance themselves but also affect each levels, foster creativity and risk
other indirectly. For example, training is also taking) to encourage the employee
supposed to be a non-financial motivator to for their best performance in all
reward employee for their good performance. situations and complying with the
Leaders coach and empowerment help to companys goals and objectives by
motivate their subordinates for better their authorized power.
performance. Being trained on the job by direct III. Creating empowerment environment
supervisors helps employee to perform better within the company through:
and participate more in their works. - Get employees involved in selecting
their work assignments and the
method fir accomplishing tasks.
7. RECOMMENDATIONS - Create the environment of
cooperation, information sharing,
According to the above findings of three discussion, and shared ownership
main factors affecting employee performance at of goals.
specific case company PVE, improving - Encourage employees to take
employees performance through improving initiative, make decision, and use
factors affecting their performance should be their knowledge.
considered and the companys management - When problem arise, find out what
levels should consider the following employees think and let them help
recommendations: to design the solutions.
First, owning a qualified and - Stay out of the way; give employees
high-educated workforce is supposed to be the the freedom to put the ideas and
competitive advantage of PVE, therefore, the solutions into practice.
organization should encourage them to perform - Maintain high moral and confidence
better for a better organization performance by by recognizing successes and
leadership style. In the meantime of this encouraging high performance.
research, in accordance with the above test IV. PVE should build up A Leadership
results, leadership style has a positive Competency Development Model
relationship with employee performance which requires the core competency of
through coaching, empowerment and employee each management level according to
participation. PVE leaders should become one the company strategic goals, focusing
of the critical factors to motivate their followers on coaching, empowerment and
to perform beyond expectations by influencing employee engagement. This model can
them to pursue higher and convincing followers be developed to the leadership
to replace their self-interest with organizational assessment criteria to identify potential
interests. Among the sub-items of Leadership, leaders who are most suitable for the
as indicated in Chapter IV, the company should leadership style of the organization,
maintain to empower employee and let them while at the same time assess the
participate or engage more in their work for current leaders and training for
their highest performance through bellowed leadership improvement as well as
recommendations: identifying the Gap in Leadership
competency. This is a progressive
I. Strong commitment from top process to prepare for the transition
executives to have a creative leadership from current leaders to the next
style by training its leaders from each generation of leaders and ensure that a
level to use power effectively, new generation of leaders will be
especially influence others by formed and be able to lead the company
empowering their subordinates to give for better employee performance. After
them authority to complete their work evaluation of leadership capability of
as effective as possible. When a leader the current leaders and identify the
builds a confident, motivated, potential ones, PVE should develop
enthusiastic team working together to training programs pursuant to training
meet the vision of the organization, he/ needs based on the above mentioned
she build a better team and greatly model, including on job training, job
enhance chance to success. rotation, coaching and mentoring by
 Top executives who know best about employees demands time by time, the
the new leadership style directions and researcher have some recommendations
changes in which, people are hereinafter:
empowered and encouraged to
I. PVE should have some survey in
proactively take risks, and challenge
employee satisfaction periodically to
the norm, always be motivated and be
make the decisions of what kinds of
innovative.
motivation should be used and make
V. PVE should concentrate on maintaining
sure that solutions satisfy individual
and improving employee participation
needs.
by employee work engagement, get
II. PVE should motivate its employees
them involved in some important
through rewards by rewarding for
activities of the company. Through
whom improve him/ herself to qualify
employee participation, PVEs
for the job requirements, who are
management levels should set the
complying with the companys
employee the goals to accomplish, give
directions and make them as a visible
them the authority to make decisions,
model for others. Using both formal
solve problems and get involved in
and informal rewards-recognition,
designing and implementing
praise and special assignments that
organizational change.
must be managed to ensure they
Beside that, its necessary for the company consistently support the desired new
to improve and much pay attention to the behaviors. In addition, the company
management levels coach to make the should build the trust within the
employee feel more encourage for their better organization to believe that the effort
performance by the following solutions: will lead to a reward.
III. PVE should build up and upgrade the
I. PVE should train its leader relating to
reward system (including financial and
coach skill including working skill,
non-financial reward) to be equitable
professional knowledge,
and achievable, totally according to the
encouragement, recognition of
rules of that Rewards must be linked
potential strengths of employees to
to performance.
make them work better.
IV. As operating in engineering
II. PVEs top management should
consultancy in oil and gas industry,
consider coaching is one of the most
developing of workforce to assume a
important skills of a leader and suppose
complete scope of work is very
it to be one of the assessment criteria
important for the case company. PVE
for the leaders for their improvement or
should motivate its employee through
promotion.
job design, including job enlargement
III. Creating a culture of coaching within
by putting more variety into a job, job
the organization where employees
rotation by moving employees among
recognize that they are coached in
specialized jobs, fit people to jobs and
every daily activities by anyone,
jobs to people,
especially their direct supervisors.
V. Pay or profit sharing is supposed to be
Second, motivation is one of the most financial factors of motivation. In the
important factors affecting employee researchers observation, this kind of
performance at the case company. As described motivation is important at the case
in descriptive statistics above, most of aspects company but not enough to keep the
of motivation at PVE including rewards, employees at the best, for the
recognition, promotion, job enrichment, pay, employees tend to focus on the
profit sharing have a good impact on employee rewards and not the work itself or only
performance and have been executed well at work well enough to get the rewards.
PVE in the meantime of this research. Most of PVE should combine this kind of
employee answered agree with what the case motivation with the others such as
company works out for them in motivating promotion, recognition, to ensure
employee and encourage them to work better. the effectiveness of motivation on
For further actions, to improve employee employee performance.
performance at PVE, in the researchers
Third, as an engineering consultancy
observation, PVE should remain the present
enterprise in oil and gas industry, required job
kinds of motivation and take further actions
competencies for employees are specific and
relating to employee motivation to adapt to the
training becomes one of the vital factors to
organization changes and suitable for the
enhance the employees capability to perform popularizing the Corporate Culture among the
better. Training factor which is including whole organization. Considering working
training need analysis, training contents and environment, the researcher request for further
methods, on the job training as mentioned research to determine the factor of behavioral
above is the strongest factor that impacts on environment specifically (the behavioral
employee performance at the case company. environment consists of components that relate
This proved the real facts of the case company to how well the office occupiers connect with
that most of PVEs workforces are developed each other, and the impact the office
and qualified by internal training in case there environment can have on the behavior of the
are currently no official advanced training individual (Haynes, 2008)). The future study is
organization specializing in engineering in oil necessary to analyze the affect of this factor to
and gas industry in Vietnam. In order to ensure employee performance at PVE. As the case
the employees performance at the case companys characteristics of high-intelligence
company, based on the above results analysis, workforce and professional physical
the researcher has some suggestions as follows: environment of an engineering company in oil
and gas industry, behavioral environment
I. PVE should compose the official
should be considered.
procedures of training need analysis to
figure out the training demands of
employees that comply with the
companys strategic goals and REFERENCES
objectives to have the Right Train. Aguinis, H. (2009). Performance Management.
II. PVE should create Competency 2nd Edition, Upper Saddle River, NJ,
Development Model for its workforce Pearson Education Inc.
and use it as a reliable measurement Armstrong, M. and Murlis, H.(2004). Reward
for the employees capability management: A hanbook of remuneration
assessment as a part of training need strategy and practice. 5th edition. London:
analysis. Kogan Page Limited.
III. PVE should build up Individual Appiah, C.(2010). Human Resource Strategies
Development Plan for its employees for International Growth. London:
and clear Career Path along with career Routledge
orientation for effective training. Bartram, T. & Casimir, G. (2007). The
IV. Training Contents and Method should relationship between leadership and
be determined by professional experts, follower in-role performance and
technical advisors or department head satisfaction with the leaders: The
of the company to maximize the mediating effects of empowerment and
effectiveness of training. trust in the leader. Leadership and
V. Diversify on job training method Organization Development Journal, 28(1),
including web-based training, project 4 19.
simulation, lesson learned, seminars, Barry, P. Haynes (2008). An Evaluation of the
presentations, on-site training, job Impact of the Office Environment on
rotation, foreign expert training, Productivity. Journal of Facilities, 26 (5/6),
internal training between employees of pp. 178-19.
inter-disciplines, Belcourt, M., Wright, P. C. and Saks, A. M.
VI. PVE should consider to build up a (2000). Managing performance through
systematic training program is being training and development, in Nelson
laid out to train the young engineer Series in Human Resources Management,
including on the job training, one on 2nd Edition.
one mentoring program and monthly Brewster, C. (2007). Comparative HRM:
discussion topics on various technical European views and perspectives. The
field in which engineers must take turn International Journal of Human Resource
to present the key calculation to the Management, 18 (5), 769 787.
whole group of seniors. Carlsen, K. (2003), Sales motivation: one size
does not fit all, Selling, October, pp. 14
In addition, the researcher recognized 15.
several limitations of the current study that is Carlson, D. S., Kacmar, M. K., Wayne, J. H., &
suggested for future research. Regarding Grzywacz, J. G. (2006). Measuring the
organizational culture factor, the researcher positive side of the work-family interface:
recommends to re-analyze this factor to Development and validation of a
evaluate its affect to employee performance at work-family enrichment scale. Journal of
PVE after a suitable period of building and Vocational Behavior, 68 (1), 131 164.
Carrell, R. M., Kuzmits, F. E. & Elbert, N. Silver Lakes, Pretoria. Beekman
F.(1989). Personnel: Human Resource Publishing.
Management. Columbus: Merrill Hellriegel, D., Jackson, S., Slocum, J., and
Publishing Company. Staude, G., (2008). Managing: A
Champathes, M. R. (2006), Coaching for Competency Based Approach. Thomson
performance improvement: The coach Learning Inc.
model. Development and Learning in Hellriegel, D., Slocum, J. W. and Woodman, R.
Organizations, Volume 20, No. 2, pp. 17 W (1998), Organizational Behavior, 8th ed.,
18. South-Western College, Cincinnati, OH.
Chen, Y. F. and Tjosvold, D. (2006). Hofstede, G. (1991). Cultures and Organizations:
Participative leadership by American and Software of the Mind. London, UK:
Chinese managers in China: the role of McGraw-Hill.Janssen, O. and NW. Van
relationships. Journal of Management Yperen, 2004. Employees goal
Studies, 43, 1727 52. orientations, the quality of leader-member
Cheryl King Duvall,(1999). Developing exchange and the outcomes of job
individual freedom to act: Empowerment performance and Job Satisfaction.
in the knowledge organization. Janssen, O. and NW. Van Yperen,(2004).
Participation and Empowerment: An Employees goal orientations, the quality
International Journal, Vol. 7 Iss: 8, pp. of leader-member exchange and the
204 212. outcomes of job performance and Job
Creswell, J. W. (1994). Research design: Satisfaction.
Qualitative, quantitative, and mixed Jobber, D. and Lee, R. (1994), A comparison
method approaches, 2nd Edition. Sage of the perceptions of sales management
Publications International Educational and sales people towards sales force
and Professional Publisher. motivation and demotivation, Journal of
Cronje, G. J. de J., du Toit G.S. and Motlatla, Marketing, 10 (4) May, pp. 325 332.
M.D.C. 2001. Introduction to Business Lam, S. S. K., Yik, M. S. M., & Schaubroeck, J.
Management. 5th edition. Cape Town: (2002). Responses to formal performance
Oxford University Press Southern Africa appraisal feedback: The role of negative
Daft, R. L., & Weick, K. E. (1984). Toward a affectivity. Journal of Applied Psychology,
model of organizations as interpretation 87, 192 201.
systems. Academy of Management Review, Mathis, R. L and Jackson, J. H.(2009). Human
9(2), 284 295. Resource Management. Mason, OH, USA:
Darmon, R. Y. (1974), Salesmans response to South-Western Cengage Learning.
financial incentives: an empirical study, McCloy RA, Campbell JP, Cudeck R. (1994). A
Journal of Marketing Research, 11 (3) confirmatory test of a model of
November, pp 418 426. performance determinants. Journal of
Deal, T. E. & Kennedy, A. A. (1982). Corporate Applied Psychology, 79, 493-505.
Cultures. The Rites and Rituals of Northouse, P. G. (2007). Leadership Theory and
Corporate Life. Addison-Wesley, Reading, Practice. London: Sage Publications.
MA. Ogbonna, E. (1993). Managing Organizational
Denton, D. K. (1991), Whats wrong with Culture: Fantasy or Reality? Human
these employees? Business Horizons, 34 Resource Management Journal, 3(2),
(5) September October, pp. 45 49. 42-54.
Dessler, G. (2008). Human resource Peters, T., & Waterman, R. (1982). In search of
management. 11th. edition. Persons. excellence. New York: Harper & Row.
DuBrin, A. (2004). Leadership: Research Richards, J. C. & Schmidt, R. (2002). Longman
findings, practice and skills. New York: dictionary of language teaching and
Hougton Mifflin. applied linguistics. 3rd. ed. London:
Gordon, B.(1992). Are Canadian firms under Longman.
investing in training? Canadian Business Schein, E. (1990). Organizational Culture.
Economics 1, 1, 25-33. American Psychologist, 45 (2), 109 119.
Green, Thad. (2000), Three Steps to Schein, E.H. (1994) Organizational Psychology,
Motivating Employees, HR Magazine, Prentice-Hall.
November, pp. 155 58. Smit, P. J. and Cronje, G. J de J. (1992),
Guest, D. E. (1997). Human resource Management Principles, Juta, Kenwyn.
management and industrial relations. Starr, J. (2004), The managers role in coaching
Journal of Management Studies 24, 5, overcoming barriers to success.
503-521. Development and Learning in
Harrison, R. (2000). Employee Development. Organizations, Volume 18, No. 2, pp. 9
 12.
Stewart Douglas, (2001). Growing the
Corporate Culture, obtained from
http://www.wachovia.com/foundation/v/in
dex.jsp?vgnextoid=ab411f07760aa110Vgn
VCM1000004b0d1872
RCRD&vgnextfmt=default on July 9th,
2010.
Stone, R. J. (2008). Human Resource
Management (6th edition). John Wiley &
Sons, Australia Ltd.
Sutiyono, W. (2007). Human resource
management in state-owned and private
enterprises in Indonesia. Bulletin of
Indonesian Economic Studies, 43(3), 377
394
Swanson, R. A. (1999), Foundations of
performance improvement and
implications for practice, in R. J. Torraco
(ed.), Performance Improvement: Theory
and Practice (San Francisco, CA:
Berrett-Koehler).
Tessema MT, Soeters JL (2006). Challenges and
practices of HRM in developing countries:
Testing the HRM-performance link in the
Eritrean civil service. Int. J. Hum. Res.,
17(1): 86-105.
Toit, A. D. (2007), Making sense through
coaching. Journal of Management
Development, Volume 26, No. 3, pp. 282
291.
Wei, L. Q., & Lau, C. M. (2005). Market
Orientation, HRM Importance and
Competency: Determinants of strategic
HRM in Chinese firms. The International
Journal of Human Resource Management,
16(10), 1901 1918.
Wood, S., Holman, D., & Stride, C. (2006).
Human resource management and
performance in UK Call Centres. British
Journal of Industrial Relations, 44(1), 99
124.
Wright, P. C., & Geroy G. D. (2001). Human
competency engineering and world class
performance: a cross cultural approach,
Cross Cultural Management: An
International Journal. vol. 8, no. 2, pp.
25-46
Zaugg, R. J., & Thom, N. (2003). Excellence
through implicit competencies: Human
resource management organization
development knowledge creation.
Journal of Change Management, 3(3),
199 211.
Zhu, Y., Warner, M., & Rowley, C. (2007).
Human resource management with Asian
characteristics: a hybrid
people-management system in East Asia.
The International Journal of Human
Resource Management, 18(5), 745 768.