Effective motivation practices that could enhance employee performance in the mining industry in Lao PDR

Abstract

In the real world of business today, the most important and difficult job faced by managers is to manage people. Human resource management (HRM) plays a significant role in terms of sustaining a competitive advantage in different fields of business. One of the critical elements of human resource management is motivating employees in companies. This research focuses on HRM especially employee motivation in the mining sector in Laos. The purpose of this study is to identify factors that influence employee performance, with a specific focus on employees who work in the mining sector in Laos. The study aims to develop suitable motivation practices that can be applied to mining companies in Laos. To achieve this aim, qualitative data was collected through in depth face-to-face interviews with 15 people who hold management and non-management positions from two large mining companies in Lao PDR. The subsequent data analysis and discussion has emphasis on key factors relating to employee performance within the organisation, the value of employee motivation to the organisation, and the motivation approach which can be a solution for the management team to formulate reward systems for mining companies in Laos.

It has been found that managers and employees both agreed that motivation has a positive impact on employee performance. A number of employees are dissatisfied with not only monetary incentives but also other non-financial rewards such as safety, social, supervision and equity. The study suggests a suitable motivation model for the mining sector in Laos to apply for improving the effectiveness of employee performance. Limitations of the research and directions for future research are also provided.