(LUẬN văn THẠC sĩ) solution to improve working motivation at fragrance team in luxasia vietnam

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(LUẬN văn THẠC sĩ) solution to improve working motivation at fragrance team in luxasia vietnam

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UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Nguyễn Thùy Linh SOLUTION TO IMPROVE WORKING MOTIVATION AT FRAGRANCE TEAM IN LUXASIA VIETNAM MASTER OF BUSINESS ADMINISTRATION Ho Chi Minh City – Year 2020 TIEU LUAN MOI download : skknchat@gmail.com UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Nguyễn Thùy Linh SOLUTION TO IMPROVE WORKING MOTIVATION AT FRAGRANCE TEAM IN LUXASIA VIETNAM MASTER OF BUSINESS ADMINISTRATION SUPERVISOR: LE THI THANH XUAN Ho Chi Minh City – Year 2020 TIEU LUAN MOI download : skknchat@gmail.com Assignment Cover Sheet Master of Business Student Name NGUYEN THUY LINH Student Number 22180017 Subject Name Thesis Facilitator Dr Le Thi Thanh Xuan Title of Assignment Solution to improve working motivation at Fragrance Team in Luxasia Vietnam Length 64 pages Due Date May 29th, 2020 Date Submitted May 29th, 2020 Declaration:  I hold a copy of this assignment if the original is lost or damaged  I hereby certify that no part of this assignment or product has been copied from any other student’s work or from any other source except where due acknowledgement is made in the assignment  No part of the assignment/product has been written for me by any other person except where collaboration has been authorized by the subject lecturer/tutor concerned  I am aware that this work may be reproduced and submitted to plagiarism detection software programs for the purpose of detecting possible plagiarism (which may retain a copy on its database for future plagiarism checking) Signature: ……………………………………………………………………… Note: An examiner or lecturer/tutor has the right not to mark this assignment if the above declaration has not been signed) TIEU LUAN MOI download : skknchat@gmail.com SOLUTION TO IMPROVE WORKING MOTIVATION AT FRAGRANCE TEAM IN LUXASIA VIETNAM May 29th, 2020 Professor: Dr Le Thi Thanh Xuan TIEU LUAN MOI download : skknchat@gmail.com Contents Chapter 0: Executive Summary Chapter 1: Introduction/ Company Overview Luxasia Group 1.1 General Information 1.2 Vision, Mission and Development Goals in 2020 2 Luxasia Vietnam 2.1 Organization of Luxasia Vietnam 2.2 Development Goals in 2020 Chapter 2: Problem Context Structure of Retail & Operations Department Fragrance Team Business Performance In 2019 Chapter 3: Problem Identification Symptoms Analysis Sales Revenue Decrease Potential Problems 2.1 Competition Between Channels 2.2 Ineffective Marketing Strategy/ Brand Development 10 2.3 High Turnover Rate 11 2.4 Poor Management (Literature) 13 2.5 Store Traffic (Literature) 14 Diagram Of Symptom And Potential Problems 14 Problem Validation 15 Problem Consequences 17 Chapter 4: Cause Validation 19 Potential Causes 19 1.1 High Sales Target 21 1.2 Salary & Benefits (Work Motivation) 22 1.3 Family Reason 25 1.4 Unsatisfactory Work Performance 25 1.5 End of Contract 25 1.6 Poor Supervisor (Direct Manager) 26 1.7 No Process/ Manual (Working Process) 27 TIEU LUAN MOI download : skknchat@gmail.com 2 Initial Cause & Effect Map 28 Cause Validation 28 Final Causes & Effect Map 31 Chapter 5: Solution 32 Alternative Solutions 32 Add more Insurance for Beauty Advisor – Bao Viet Insurance: Healthcare 33 Develop Training Program 35 Solution Validation 37 Solution Implementation 38 3.1 Training Needs Assessment 38 3.2 Objective of application 39 3.3 Cost 40 3.4 Action Plan 40 Conclusion 41 Chapter 6: Supporting Documents 42 Literature Review 42 Research Methodology 42 2.1 Research Approach 42 2.2 Interview 42 Transcript 43 List of Figures / Graphs / Tables 53 Appendix 54 Resignation Form 54 Exit Interview 55 Reference 59 TIEU LUAN MOI download : skknchat@gmail.com Chapter 0: Executive Summary Luxasia Vietnam achieved remarkable achievements in 2019 by the contribution of the whole employees There have been outstanding results of departments like Sales & Marketing Department, Channel Department, Cosmetic team,… However, Fragrance team which contributes nearly 40% of the company's revenue caused a disappointment of a loss of sales revenue and a growth sales decrease within the last years Due to the importance of the performance and also the business growth of Fragrance team as well as the organization, the aim of this research is to search out what the central factor and reason caused the present issues; then to propose solution to resolve the difficulties of Fragrance team The research almost focuses on qualitative approach by in-depth interview with specific employees for analysis Besides, the primary and secondary data were also collected to illustrate for the thesis Based on the information and the in-depth interviews with related employees and managers, the analysis is done with the aim to search out the deeper reasons There are several problems resulting in sales growth decrease at Fragrance team It is defined that High turnover rate is the central problem causing the symptom Moreover, the problem is the result of decrease on work motivation of employees at Fragrance team In many the studies, work motivation is indicated as one of the most important factors which impact on the efficiency of employee performance As a result, work motivation features a direct influence in a proportion way on the result of individual performance and organization business as well as the development of business Therefore, based on the theory, literature review, interviews with managers and selfexperiences, the advice and proposal are proposed with the aim to resolve the present issue and improve the business results of Fragrance team The proposal is raised to apply on Fragrance team which has significant contribution to the sales revenue of the organization Because of characteristic of Retail & Operations Department, there may well be an additional consideration for applying on Cosmetic team with the aim to possess a connection, synchronization and fairness for whole Beauty Advisors TIEU LUAN MOI download : skknchat@gmail.com Chapter 1: Introduction/ Company Overview Luxasia Group 1.1 General Information Luxasia Group was founded since 1986 and has been the leading omni-channel corporation of luxury product and brands in Asia Pacific market The object is to provide brands access to the largest retail market and e-commerce network in the beauty industry Group has made an effort to form a difference to consumers by bringing them the best brands from luxury, prestige to masstige categories Luxasia’s head quarter is founded in Singapore and the group has line-regional representatives of 15 offices like Singapore, Malaysia, Taiwan, Hong Kong, China, India, Indonesia, Philippines, Thailand, Vietnam and Myanmar, Australia … and a team of quite 2,500 talented staffs Luxasia Group is holding distribution rights for over 150 brands including Bvlgari, Guerlain, Hermès, La Prairie, Peter Thomas Roth, Prada, Salvatore Ferragamo, SK-II Additionally, Luxasia Group has successful joint ventures with Elizabeth Arden, LVMH Group, PUIG, and Yves Rocher 1.2 Vision, Mission and Development Goals in 2020 During operations years, Luxasia has achieved the success in developing and growing new brands as well as expanding into world markets Entering a new integration period, the group has taken off general vision and mission forward to the success of business  “Vision: Making a difference in every woman's life  Mission: Asia Pacific’s beauty omni-leader” Source: https://www.luxasia.com/about/ Luxasia has 15 representatives in all over the world and hold the unique distribution of 150 brands including Perfume and Cosmetic With the fast development of market and also the trend of lifestyle, the vision and mission are targeted to attain the share market and to be beauty omni-leader, leading in Asia Pacific market Furthermore, Luxasia Group well knows that Human Resources are the key to drive the organization to the success So, among the overall development goals in 2020, the target is to focus and invest on talented employees The goal shows the board management’s orientation, foresight and attention to key human resources TIEU LUAN MOI download : skknchat@gmail.com Luxasia Vietnam 2.1 Organization of Luxasia Vietnam Phuoc My International (called Luxasia Vietnam) was founded in 2009 and has been one of the leading companies in beauty market in Vietnam So far, Luxasia Vietnam has been the unique distributor of more than 20 well-known brands including fragrance and cosmetic All brands come from masstige to luxury, such as Guerlain, Calvin Klein, Mac Jacobs, Kora, Wet n Wild Products are arranged and distributed at counters and boutiques in most of the shopping malls: Diamond Plaza, Vincom, Takashimaya, Waston, Luxasia Vietnam located at Vincom Dong Khoi, 72 Le Thanh Ton, District 1, Ho Chi Minh City The location is at the center which helps for easily visiting stores and boutiques, controlling and solving problems in a fast way Below is an organization chart of Luxasia Vietnam The chart shows the operations and the scale of business Figure 1.1: Organization structure of Luxasia Vietnam (Internal report of Luxasia Vietnam, 2019) Luxasia Vietnam is being operated by coordinating seven functional departments with more than 120 talents All activities and strategies are forward to the development goals of the company and Group There is a transformation between Luxasia Group and Luxasia Vietnam in running the business Head of Departments will directly report to Country Manager and dotted TIEU LUAN MOI download : skknchat@gmail.com report to Regional Head all activities in Vietnam The operational model brings engagement and connection between local company and regional 2.2 Development Goals in 2020 For the development of Luxasia Vietnam in the year 2020, strategy and target are transferred from Luxasia Group and following as general goals of Group However, there is an adjustment to correspond to Vietnam retail market and business activities of the company In 2020, Luxasia Vietnam sets targets for the growing There is an expansion in beauty market; some new brands belonging to fragrance and cosmetic will be launched Especially, as one of development goal of Group in 2020, Human Resource is the key objective to focus and develop It is recognized that human plays an important role for the development of business and common goal and Group also builds strategy for talents development and retention To drive the Group target, Luxasia Vietnam also builds the strategy which is suitable for employees and for the development of the company in 2020, especially to retailers So, in parallel with economic development, talents development and retention are main goals of the company's this year TIEU LUAN MOI download : skknchat@gmail.com 46 motivation to contribute to company There are - low income, no other reasons: low income, no career path, no career process, family reason… path, process, no family reason The reason why In case an employee does not achieve sales target in - not achieve sales high turnover rate 2-3 months, we will consider to individual training target relates to high sales and follow the results However, in case in next - no changes target? months, there are no changes, we must say sorry Does poor Manager of Team plays an important role in Team - not main problem supervisor high cause engagement and connection between staffs employee However, It is not main problem to high turnover turnover at rate As my management, there is just a case which Fragrance Team? has conflict between employees in a Team Why high turnover Experienced staffs leaved company while new - Experienced staffs rate leads to sales employees have not trained and run work smoothly leaved decrease? as experienced employee Team performance is not - Not productivity productivity as before collected Yes, that’s right We always follow and evaluate As information, there the performance of Team and individual We also are many resigned set KPI for each employee to follow and as case due to target In case employees have bad performance, unsatisfactory work show a bad working behavior and also not performance? follow as guidelines, we will have solutions to improve individual If they not improve, we must say sorry 3.3 Interview with Ms Thuong – Talent & Excitement Manager Ms Thuong has worked at Luxasia Vietnam since September in 2018 with the role of Talent & Excitement Manager She manages all activities and problems related to human resources at Luxasia Vietnam She has around 10-year experiences about human resources jobs before being T&E Manager at Luxasia Vietnam TIEU LUAN MOI download : skknchat@gmail.com 47 Question Answer Coding (Key answer) Ms Van & Ms Thuy In kick-off meeting, problems about high turnover - High turnover rate confirmed that the rate have been focusing In HR data and reports, the … focusing top concern of number of resign employees is increasing and the - Resigned employees Fragrance Team is percentage is higher than the same period last year … Increasing high turnover rate And it is have an uptrend in final months of this - Strategy in 2020 What is your year comment? As strategy in 2020, decreasing turnover rate of rate - Decreasing turnover Retail Team, especially Fragrance Retail Team is top priority of Retail Team and HR Dept Why is it Many permanent staffs leaved their jobs while new - staffs leaved their important? employees have not experiences or knowledge as jobs an experienced employee Training and updating - new employees knowledge for new employees can spend more time - decreasing and costs to train them as an experienced staff performance of Moreover, this can lead to decreasing performance counters of counters; experienced staffs will be cover sales for new employees to achieve the sale target of counter to receive their commission Final, beauty industry has strict characteristics, narrow market, lack of human resources, low educated resource… The number of beauty companies in the beauty industry just more than 10 and lower 15 companies So it is hard to find human resources Why you say that In my opinion, no recognition and no opportunity - motivation no recognition and to develop to BA level make working motivation decreased no promotion make decreased This leads to high turnover rate high turnover? Any reasons lead to No process and everything by manual taking - take more time TIEU LUAN MOI download : skknchat@gmail.com 48 high turnover rate more time of employee These make job running at Fragrance slowly job … running slowly Team? Any reasons lead to In my opinion, managing skill of Manager is - managing skill of high turnover rate important A manager will lead Team to success or Manager Fragrance fail By a case happened at Fragrance Plaza Hung - ….important at Team? Vuong, Manager had conflict with teammates and could not solve problems or competition in a Team So one of recruitment conditions, we have to recruit candidates who are suitable with the culture of company, also characteristic of industry As the termination Retail team has responsible to follow and manage - evaluate individual report, there are Team to show the best performance They will - employee turnover many resigned case observe and evaluate by individual and support to due to improve In case employees could not show better unsatisfactory work performance, a case of employee turnover happens performance How you think? How you think In a working year, we have some cases maternity - maternity leaves about the reason leaves so we need to recruit some temporary to - high season and end of contract replace the employees When the employees back new launches impacting on high to work, the contract will end turnover rate Fragrance - temporary employees of Besides, At high season and new launches, the lack - not main reason team? of human resources requires us to recruit some As report, data is temporary employees to support for events and shown clearly activities of team However, this is not main reason to high turnover rates of Fragrance team Because the cases are required to replace permanent employees in a short term, then, our employees also backed to work How you In my opinion, increasing basic salary could - support a part in TIEU LUAN MOI download : skknchat@gmail.com 49 evaluate about support a part in their life (employees) The their increasing salary solution could push the motivation of employees (employees) for Beauty and it helps us create advantage competitive in - Advisors? recruitment and company branding life push the motivation of employees - create advantage competitive How you It’s good to add more benefits for employees - good evaluate about add However, it should consider carefully because of - should consider more benefits for the approval and application Beauty Advisors? Specific, add healthcare insurance of Bao Viet insurance? How you think Training is one of solutions to improve motivation - improve motivation about applying of employee It could be applied if a plan is detailed apply the solution develop training and carefully designed In my opinion, it could be increasing salary and program? applied the solution increasing salary and develop develop training training program at the same time with the aim to program at the same be more efficient 3.4 time Interview with Ms Van Anh – Business Manager – Fragrance Ms Van Anh has worked at Luxasia Vietnam with the position Business Manager since 2017 She takes responsible for all strategy and all activities of Perfume brands of Luxasia Vietnam Question Answer Coding (Key answer) How evaluate you Luxasia is operating as distributor model, not - Distributor model about principle So marketing strategies and branding - dependent on brand TIEU LUAN MOI download : skknchat@gmail.com 50 marketing activities are dependent on brand principal We principal strategies? receive strategies and implement activities - regional guidelines following as regional guidelines How is thought your Wholesales market is taken into account to expand - Portfolio specific about fragrance market However we have strategy and and detail conflict wholesale policy for wholesales market Portfolio for this causing sales market is specific and detail to avoid conflict to decrease at brand and retail market Fragrance Team? How is the set sales Sales target is set at the beginning of year as target? business of Luxasia Vietnam and regional 3.5 Set at the beginning of year Interview with Ms Hien – Counter Manager With the 10-year working period at Luxasia Vietnam, Ms Hien has gained many experiences in beauty retail industry She started with the positon Senior Beauty Advisor and promoted to Counter Manager for years ago Now, she manages Counter at Takashimaya - the key Counter that contributing huge sales revenue to sales volume of Fragrance team Question Answer Coding (Key answer) How evaluate you Promotion and brand activities are not appealed to - not appealed about customer The program is not as interesting as the - not interesting marketing one of competitor such as Dior, Dolce & Gabbana, strategies of Hermes perfume brands? Why you think When wholesales channel is developed, customer - Customers … not that cause wholesales will not interest in shopping mall They can buy interest in shopping sales products at many sources with lower price decrease of mall - Lower price Fragrance Team? TIEU LUAN MOI download : skknchat@gmail.com 51 Why high sales High sales target but lack of resource makes team - high sales target target leads to sales performance decreased - lack of resource decrease? Why sales target of Sales target of team is not achieved for many Team experienced was months because experienced employees leaved employees leaved decrease? company such as Tra My, Ngoc Nu This makes team productivity decrease How you Salary is lower than other company in industry and - Lower about benefits are not good Some employees are - Incentives ….fine evaluate salary and benefits attracted by salary and benefits of competitors so at Luxasia they leaved job Incentives scheme for employ is Vietnam? fine No opportunities for I think that no development opportunity is not main - no development development and problem leading to much resign employees opportunity is not training the Although we want to be promoted, we know that main problem are problems cause there are many responsibilities go with new title high turnover rate Examples: I take around year to have an of Fragrance opportunity to be promoted Deputy Counter Team? Manager and more than year for Counter How you think Manager Many skills and knowledge need to be about opportunities improved and updated at Luxasia Vietnam? How you Indeed, report sales numbers and bills and update - fine evaluate about sales on system by manual is fine Sometimes high process and the way seasons, we need much time to it Although it to work at takes much time, we are fine because we are not Counters? Process, familiar to use new technique manual jobs? How is working Working environment of Luxasia Vietnam is good - full facilities environment at the The company provides full facilities for our jobs TIEU LUAN MOI download : skknchat@gmail.com 52 counter? What subjects I want to have training classes about sales and sales management you want to have? management I think they’re important for and managers to manage task and staffs 3.6 Interview with Mr Tung – Beauty Advisor at Fragrance Diamond Mr Tung started job since the end of 2017 He is working at Fragrance Counter at Diamond Plaza in Ho Chi Minh City Question Answer Coding (Key answer) How you think At Luxasia Vietnam, there are no programs of - no program of about programs of promotion and recognition to Beauty Advisor promotion promotion and and Many Beauty Advisors worked for over years at recognition recognition to for the same level, then, they leaved and moved to Beauty Advisor employees? competitors with the higher level - move moved to competitors with the higher level How is working We are supported from the company All - Stationaries are environment at the stationaries are provided in full provided in full counter? How you think We were participant in training classes to improve - helpful to my job about training knowledge and skills It is helpful to my job programs at Luxasia for Beauty Advisor? What subjects I want to have training classes about English or - English you want trained? to be communication skill - communication skill TIEU LUAN MOI download : skknchat@gmail.com 53 List of Figures / Graphs / Tables Figure 1.1: Organization structure of Luxasia Vietnam Figure 2.1: Retail & Operations Department structure of Luxasia Vietnam Figure 3.1: Sales contribution by year of Fragrance team Figure 3.2: Total sales of Fragrance team compared to Target by months in 2019 Graph 3.3: Diagram of symptom and potential problems Graph 3.4: Diagram of symptoms and problems (updated) Figure 4.1: Voluntary staff turnover at MNC – Top & Bottom Industries Figure 4.2: Turnover rate of Fragrance Team compared to Retail industry Figure 4.3: Reasons for termination of Fragrance employees Graph 4.4: Initial Causes and Effect Map Graph 4.5: Final Causes & Effect Map Figure 5.1: Herzberg's two-factor model Table 5.2: Estimated cost for Bao Viet insurance Table 5.3: Estimated cost for training courses Figure 5.4: Steps in a Training Needs Assessment Figure 5.5: Action plan for training and development for employees at Fragrance team TIEU LUAN MOI download : skknchat@gmail.com 54 Appendix Resignation Form CÔNG TY TNHH QUỐC TẾ PHƯỚC MỸ PHUOC MY INTERNATIONAL CO.LTD RESIGNATION LETTER ĐƠN XIN NGHỈ VIỆC Full Name/ Họ Tên Gender/ Giới tính Employee Code/ Mã số NV Position/ Chức vụ DOB/ Ngày sinh Joining date/ Ngày gia nhập công ty Application date/ Ngày nộp đơn Department/ Bộ phận Resignation date/ Ngày bắt đầu nghỉ Reason/ Lý xin nghỉ: I will complete all handover before / Mọi công việc tơi bàn giao hồn tất trước ngày: Employee Nhân viên Date/ Ngày: ………………………………………………… Name / Họ tên: ………………………………………………… Approval/ Phê duyệt Agree/ Đồng ý Disagree/ Không đồng ý o Applied date of resignation/ Ngày nghỉ theo đơn o Violation on resigning reason/Vi phạm lý nghỉ o Other day/ Ngày nghỉ k hác o Violation on time of notice/ Vi phạm thời gian báo trước Direct Manager Quản lý trực tiếp T&E Manager Trưởng phòng Nhân Sự Country Manager Giám Đốc Quốc Gia Date/ Ngày : Name / Họ tên : Date/ Ngày : Name / Họ tên : Date/ Ngày : Name / Họ tên : Thời hạn báo trước nộp đơn 30 ngày hợp đồng có thời hạn 45 ngày hợp đồng không thời hạn TIEU LUAN MOI download : skknchat@gmail.com 55 Exit Interview TIEU LUAN MOI download : skknchat@gmail.com 56 TIEU LUAN MOI download : skknchat@gmail.com 57 TIEU LUAN MOI download : skknchat@gmail.com 58 TIEU LUAN MOI download : skknchat@gmail.com 59 Reference Sakuraki RJAS-ÉA Organizational Inertia and Excessive Product Proliferation 2016;70(1):119-31 Leonidou LC, Katsikeas CS, Samiee SJJoBr Marketing strategy determinants of export performance: a meta-analysis 2002;55(1):51-67 Havlíček K, Břečková PJCEBR SIGNIFICANCE AND DIFFERENCES OF MARKETING AND SALES CONTROLLING 2013;2(3) Richardson RJTJoPS, Management S Measuring the impact of turnover on sales 1999:53-66 Wu W-WJEswa Beyond business failure prediction 2010;37(3):2371-6 Milkovich GT, Boudreau JWJI, Boston Human Resource Management, Richard D Irwin 1991 Perdikaki O, Kesavan S, Swaminathan JMJM, Management SO Effect of traffic on sales and conversion rates of retail stores 2012;14(1):145-62 Arnold EJTHCM Managing human resources to improve employee retention 2005;24(2):132-40 Ramlall SJJoAaob A review of employee motivation theories and their implications for employee retention within organizations 2004;5(1/2):52-63 10 Sihag AJIJoPP Factors affecting employee motivation for organizational effectiveness health care employees 2016;7(2):256 11 Hunjet A, Petak D, Kozina GJE, Proceedings SDBo EMPLOYEE MOTIVATION IN PUBLIC ADMINISTRATION 2016:40 12 Deci EL, Ryan RM Conceptualizations of intrinsic motivation and self-determination Intrinsic motivation and self-determination in human behavior: Springer; 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HO CHI MINH CITY International School of Business Nguyễn Thùy Linh SOLUTION TO IMPROVE WORKING MOTIVATION AT FRAGRANCE TEAM IN LUXASIA VIETNAM MASTER OF BUSINESS ADMINISTRATION... motivation topic The motivation was divided into two different categories such as extrinsic motivation and intrinsic motivation( 12) One of the most influential theories having a significant to. .. types such as extrinsic motivation and intrinsic motivation( 12) Especially, as Vallerand RJ(13) mentioned that extrinsically motivations are factors bringing satisfaction and meeting the desire

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