EXECUTIVE SUMMARY Being a factory founded in 1946, after more than 70 years of development, Garment 10 Corporation nowadays is one of the largest company in Vietnam garment industry. Each year, the FOB order which is taken care by Sales department counts for 75% of the company revenue and staff of this department, whose job is merchandiser, has major role in ensuring the FOB order and customer requirements are implied correctly and timely in actuality. A merchandiser should have experience from 3 to 5 years to meet the job requirements and manage the FOB order well. However, the turnover rate of the department in 2016 to 2020 increased from 2% to 10%, and other symptoms of dissatisfaction are founded such as procrastination, boredom and irritability. So the research namely “Job satisfaction of employees at Sales Department of Garment 10 Corporation, JSC” is made to evaluate the degree to which the employees of Sales department are satisfied with their jobs, what is satisfied and what is not. Particularly, the objectives of the thesis are to identify the determinants of job satisfaction of employees in this department, to assess job satisfaction level and find out the root cause of satisfaction or dissatisfaction of Garco10’s staff of sales department, therefore proposing recommendations to improve their job satisfaction. To conduct the research, all staff of the department were asked for their expectation and satisfaction towards 8 dimensions of satisfaction, so both primary data (from questionnaire, interview) and secondary data (including company report, newspaper,…) are collected, in quantitative, qualitative form. In questionnaire, both closed ended questions in Likert scale, and open ended questions are raised, also observation, face to face questionnaires and online questionnaires are used. The data collected are then analyzed in descriptive statistics in table and graphical form. The research shows that within eight dimensions of job satisfaction, the work itself, the amicable and supportive interpersonal relations, safe and convenient working conditions, job security, and supervision are factors that satisfy the staff. On the other hand, the working condition (company software), recognition (KPI and performance appraisal process), salary scheme, interpersonal relations (working SOP), advancement and growth factors still have outstanding shortcomings and needs improvement and more attention from management. To enhance the job satisfaction, the thesis contributes several recommendations including: (1) for working condition, particularly company software in terms of user manuals and rules in creating item code, BOM, PO, material allocation, order closing should be complied strictly; (2) in recognition, KPI and goals setting in both work output and managerial competences, people involved in performance appraisal, job rank should be reviewed and revised; (3) pay level, distribution and salary increase scheme should be taken into account to be more competitive, and have a clearer commitment to staff; (4) for interpersonal relations, working SOP should have more innovation to foresee and solve the job conflict; (5) advancement and growth should be stick with the job rank and job requirement, and give more chances for staff to develop themselves in both working and managerial competences.
INTRODUCTION
Rationale of the study
Garment 10 Corporation (Garco10) is well known as one of the largest and leading enterprises in Vietnam garment industry In the coming years, Vietnam garment industry is expected to benefit from many Free Trade Agreement, but also faces fiercer competition and unfavorable factors So firms want to survive and thrive, they need to be lean, effective and responsive to both opportunities and threats, and human resources quality and stability are crucial to achieve that goal. The higher the employee satisfaction level with their job, the better they perform and the higher the productivity also Thus, in order to sustainably develop and execute firm’s strategy, employee satisfaction is a determinant to be reviewed
At Garment 10 Corporation, the Sales Department plays a crucial role in managing Free On Board (FOB) orders, which account for approximately 75% of the company's revenue and provide employment for thousands of workers The sales staff, known as "merchandisers," serve as a vital link between customers and factories Their responsibilities encompass market research, garment costing, material sourcing and purchasing, price negotiation, and overseeing the time and action plan to ensure material availability Additionally, they coordinate production schedules and address quality claims and inspections, ensuring a smooth operational flow.
A merchandiser plays a crucial role in sales, purchasing, and planning, requiring 3 to 5 years of experience to effectively meet job demands Even minor mistakes can result in significant financial losses for the company, such as air freight costs, bulk rejections, and penalties An experienced merchandiser optimizes garment costing, anticipates potential material issues, and negotiates better prices with suppliers, ultimately enhancing job efficiency and reducing costs For instance, in 2019, a Sales Department team saved approximately 940 million Vietnam Dong by repurposing excess materials for exports and successfully negotiating claims with suppliers.
Between 2016 and 2020, the employee turnover rate in the department rose significantly from 2% to 10% In the first quarter of 2020 alone, eight employees departed, with some having been with the department for four to seven years Additionally, the department is experiencing issues such as procrastination, irritability, and boredom among its remaining staff.
Table 1.1: Sales department’s turnover rate
Number of employee left the department People 2 1 3 7 8
Average number of employee People 45 48 55 65 66
Source: Company internal annual report
The departure of employees from the Sales Department at Garment 10 Corporation, JSC incurs significant costs for the company, including training expenses and potential inefficiencies from inexperienced new hires This study, titled “Job Satisfaction of Employees at Sales Department of Garment 10 Corporation, JSC,” aims to assess the level of job satisfaction among Sales Department employees, identifying factors that contribute to their satisfaction and areas that require improvement.
Research objectives and research questions
By identifying and analyzing the determinants of job satisfaction to Sales Staff of the company, the primary purposes of this study are to:
- Identify the factors impact job satisfaction of staff in Garco10 Sales department
- Assess job satisfaction level and find out the root cause of satisfaction and dissatisfaction of Garco10’s staff of sales department.
- Propose recommendations to improve their job satisfaction
The thesis aims to give answer to three questions as following:
1 What factors affect employee satisfaction at Sales Department of Garco10?
2 How well Garco10 Sales Department employees satisfy with their job and its root causes?
3 How can Garco10 increase their employee job satisfaction?
Research methodology
Utilizing the Hussey and Hussey research process model, the study on "Job Satisfaction of Employees in the Sales Department of Garment 10 Corporation, JSC" is structured into five distinct phases The initial step, which involves determining research objectives, has been discussed in earlier sections of the article.
To establish the theoretical framework, we identified key determinants of job satisfaction from existing research across various industries and countries, ultimately selecting eight critical factors for our research model.
Other steps which are data collection, data analysis and propose recommendation will be clarified in following sections
Determine research objectives Select theoretical framework
The satisfaction degree is researched in December 2020, with the sample of
66 current employees of Sales Department in Garco10 head office in Sai Dong Ward, Long Bien District, Hanoi, and 01 sale manager to see their constrain/ problem in satisfying the employee
The study utilizes a combination of primary data, gathered through employee questionnaires and interviews, alongside secondary data from sources such as company reports, newspapers, and books By collecting both quantitative data for straightforward comparisons and qualitative insights from employees and managers, the research aims to provide a comprehensive understanding of satisfaction levels within the organization.
The questionnaire employs both closed-ended and open-ended questions to gather quantitative and qualitative data For the quantitative aspect, an ordinal or Likert scale is utilized, allowing employees to express their satisfaction levels from 1 (strongly dissatisfied) to 5 (strongly satisfied) Additionally, data collection methods include observation, face-to-face questionnaires, and online surveys using Google Forms.
This study analyses the employee satisfaction at Sales department of Garco10;
Study scope: the research is conducted at Sales department, in Garco10 head office, Sai Dong Ward, Long Bien District, Hanoi
Data collection duration: primary data is collected in December 2020 and the secondary data is from 2016 to 2020
The questionnaire data is analyzed using Microsoft Excel to produce descriptive statistics that summarize the quantitative information This analysis includes the use of tables and graphical representations, such as bar charts and pie charts, along with calculations of mode and mean to effectively illustrate the data's characteristics.
Research structure
This research is structured as following:
Chapter 2: Theoretical background on employee job satisfaction
Chapter 3: Study results on job satisfaction of employees in sales department of Garment 10 Corporation, JSC
Chapter 4: Recommendations to enhance job satisfaction of Garco10 Sales department employees
THEORETICAL BACKGROUND ON JOB SATISFACTION
Definition of job satisfaction
Satisfaction is defined as the degree to which an individual's needs, wants, and desires are fulfilled, as noted by Nancy C Morse (1997) It fundamentally hinges on the alignment between what a person seeks from the world and what they actually receive.
Regarding the job satisfaction, there are several definitions about this term by many authors around the world through time
Job satisfaction, as defined by Hoppock in 1935, encompasses a combination of psychological, physiological, and environmental factors that lead an individual to feel content with their job This perspective highlights both external determinants and internal feelings of employees Vroom's 1964 research further emphasized the significance of the employee's role, framing job satisfaction as the emotional orientation individuals have towards their current work roles Additionally, Davis et al in 1985 described job satisfaction as the degree to which an individual's expectations align with actual rewards, linking it closely to workplace behavior.
2008, job satisfaction is defined as a feeling that appears as a result of the perception that the job enables the material and psychological needs.
Importance of employee job satisfaction
Employee job satisfaction is crucial for fostering stability and loyalty within human resources Numerous studies have explored the significant relationship between employee satisfaction and various aspects of organizational success.
According to Judge et al (1993), employee satisfaction is positively correlated with various factors such as job performance, job involvement, job motivation, life satisfaction, mental health, organizational citizenship behavior, and organizational commitment Conversely, it has a negative relationship with turnover, absenteeism, and perceived stress.
Research from 1994 highlights that higher employee satisfaction leads to a positive cycle of actions, ultimately enhancing a company's performance Similarly, Thrun (2014) emphasizes that job satisfaction is crucial for achieving optimal work results, as satisfied employees are more likely to fully utilize their skills to accomplish their tasks effectively.
Research indicates that companies excelling in employee satisfaction can reduce turnover rates by 50%, enhance customer satisfaction by approximately 95%, and decrease labor costs by 12% (Carpitella, 2003; Harter et al.).
A study conducted in 2002, which analyzed 7,939 business units across 36 organizations, revealed significant positive correlations between employee satisfaction and engagement, and various business outcomes These outcomes included increased profit, enhanced productivity, reduced employee turnover, fewer workplace accidents, and improved customer satisfaction.
Determinants of employee satisfaction
Frederick Herzberg, a prominent motivational theorist, conducted interviews with approximately 200 American accountants and engineers in 1959, identifying two key factors that contribute to job satisfaction: motivators and hygiene factors.
Motivators are essential elements that drive individuals to enhance their work performance and achieve job satisfaction by addressing their intrinsic needs for value and personal growth Key motivators include achievement, recognition, the nature of the work, responsibility, and opportunities for advancement When these factors are fulfilled, employees experience greater job satisfaction and demonstrate improved performance in their roles.
According to Herzberg, hygiene factors, which encompass organizational environment, employee treatment, and workplace conditions, are essential for preventing dissatisfaction among employees However, these factors alone do not lead to true motivation or satisfaction If hygiene factors, such as company policies, supervision, interpersonal relations, working conditions, and salary, are inadequate or poorly managed, employees will likely feel dissatisfied Herzberg emphasizes that, in addition to motivational factors, organizations must ensure fair compensation and suitable working conditions, as motivators will be ineffective without proper hygiene factors in place.
Herzberg's theories emphasize that a sense of achievement arises when employees successfully complete tasks, resolve conflicts, and witness the results of their efforts A fulfilling job should instill a feeling of accomplishment, especially when challenges are met with skill and determination To foster this sense of achievement, it is essential to establish SMART objectives and fair KPIs, ensuring that employees clearly understand their goals and expectations.
Recognition, as defined by Herzberg (1966) and Herzberg et al (1959), encompasses the acknowledgment, praise, or criticism from various stakeholders, including superiors and colleagues Research by Willis-Shattuck et al (2008) highlights that recognition is a crucial driver of employee motivation Systematic reviews indicate that both financial and nonfinancial rewards significantly influence motivation and retention A WorldatWork survey (2008) identified nonmonetary incentives—such as commendations, project involvement, and superior recognition—as more effective than traditional monetary rewards Morell (2011) emphasizes that recognition schemes represent viable strategies for enhancing employee engagement within organizations.
Herzberg (1966) and Herzberg et al (1959) defined the work itself as the job content, and actual performance of a task, causing job satisfaction and dissatisfaction
Hackman and Oldham (1975) emphasize that a job's design, encompassing diverse activities and required skills, can significantly boost employee creativity and adaptability Engaging and meaningful work, paired with mentally stimulating challenges, encourages employees to expand their knowledge and take on responsibilities Ultimately, this fosters greater motivation and dedication in their work.
The nature of work is a crucial factor influencing employee satisfaction, as highlighted by various studies (Herzberg et al., 1959; Hackman and Oldham, 1975; Wong et al., 1998; Judge and Church, 2000) However, research indicates that the intrinsic aspects of a job may have a diminished effect on employees from collectivist cultures (Adigun and Stephenson, 1992; Diener et al., 1995; Huang and Van de Vliert, 2004).
Empowering employees by granting them ownership of their work can significantly enhance motivation and accountability Employers should focus on minimizing excessive oversight while ensuring that employees remain responsible for their outcomes, fostering a sense of pride and commitment to their tasks.
Herzberg highlights the significance of employee authority in the workplace, emphasizing that different generations—such as veterans, baby boomers, Generation X, and Generation Y—hold distinct perceptions of work value and responsibility Understanding these perceptions is crucial for determining job satisfaction Muntaner et al (2006) define autonomy as personal freedom to choose one’s actions, which can be influenced by occupational guidelines, available technologies, and organizational systems Variations in job positions within an organization often correlate with differing levels of authority and autonomy Furthermore, Savery (1996) notes that a lack of responsibility and unchallenging tasks can lead to job dissatisfaction and increased turnover.
Herzberg (1966) and Herzberg et al (1959) defined advancement as a significant change in an employee's status within an organization, distinguishing it from growth opportunities Growth encompasses not only upward mobility but also the enhancement of skills and professional development A study by Rutherford et al (2009) found a negative correlation between emotional exhaustion and employee satisfaction with promotions and advancements, indicating that dissatisfaction in these areas is linked to an increased intention to leave the organization.
From a company's perspective, it's essential to establish promotion opportunities that enable employees to acquire new skills and enhance their personal growth, fostering a sense of improvement and achievement in their professional journey.
2.3.6 Company policies and administrative policies
Herzberg (1966) and Herzberg et al (1959) emphasized that employees' perceptions of organizational regulations, conflict management, communication, and personnel policies significantly impact their job satisfaction Locke (1976) further highlighted that clear policies and procedures are essential for helping employees understand organizational goals, while ambiguity can lead to job dissatisfaction and frustration.
Employees are increasingly concerned about the adequacy and effectiveness of company policies and their administration Purcell & Hutchinson (2007) highlight that the human resources practices and regulations perceived or experienced by employees significantly influence their attitudes and commitment to the organization This is because employees view these practices as a reflection of the company's personal commitment to them.
Supervisory leadership, as defined by Herzberg (1966) and Herzberg et al (1959), emphasizes the importance of a supervisor's skills, their ability to delegate responsibilities, fairness in treatment, and a commitment to teaching subordinates This leadership style plays a vital role in shaping employees' work attitudes and overall job satisfaction.
Employees who resonate with their leaders' styles tend to perform better and experience greater job satisfaction Research indicates that effective leadership significantly influences job satisfaction, as highlighted in studies by Fitriany et al (2011), Bateh & Heyliger (2014), and Sun et al (2016) A 2020 study by Srimindarti et al involving 82 auditors in Indonesia found that friendly, trustworthy, and respectful leaders foster positive work environments Such leaders enhance communication, enabling subordinates to navigate challenges more effectively and fulfill their responsibilities successfully.
Research Model
The research model for employee job satisfaction at Garment 10 Corporation's Sales Department identifies eight key determinants: (1) the work itself, (2) recognition, (3) advancement and growth, (4) supervision, (5) salary, (6) interpersonal relations, (7) job security, and (8) working conditions These factors are defined in accordance with the theories of Herzberg (1966) and Herzberg et al (1959), highlighting their significance in understanding employee satisfaction.
Table 2.1: Variables and items of thesis research model
The work itself Job is important and meaningful Hackman and
Oldham, 1975 Job requires variable knowledge and skills to complete, challenging and provide the opportunities to increase staff creativity and ability
Setting work goals and objectives using the SMART criteria ensures they are specific, measurable, achievable, relevant, and time-bound Clearly defined Key Performance Indicators (KPIs) are established in a reasonable and fair manner Effective communication of these objectives and KPIs between staff and supervisors fosters a transparent performance standard, serving as a reliable basis for performance appraisals.
Herzberg (1966) and Herzberg et al (1959)
Job outcome can be recognized, evaluated accurately by superior, colleague, subordinate and client
Herzberg (1966) and Herzberg et al (1959) Appreciation, financial and nonfinancial reward system provided by management is satisfying
Company chances for promotion, and staff see a clear path to advance their career
Herzberg (1966) and Herzberg et al (1959)
Abilities and skills are enhanced through learning on the job, adequate training courses or job project
Herzberg (1966) and Herzberg et al (1959)
Receive the right amount of responsibility delegation, support and guidance from direct supervisor and confident in the leadership team's competences
Herzberg (1966) and Herzberg et al (1959) Leaders are positive role models, provide continuous feedback to help complete the job, value staff opinion and treat them with trust and
Srimindarti1, Oktaviani, Hardiningsih3, fairly respect Udin (2020) Salary
Salary is paid fairly for staff contribution, bonus and incentives are given adequately, timely, competitively with the industry
Herzberg (1966) and Herzberg et al (1959)
Relationship with my employer and colleague is smooth, receive adequate support and information from team and other department
Herzberg (1966) and Herzberg et al (1959) Job description and responsibilities of each team member/ department are clear and job conflict is rarely
Herzberg (1966) and Herzberg et al (1959) Job security Job is secured as the company business is stable
Herzberg (1966) and Herzberg et al (1959)
The physical working condition is safe, convenient, and not observe or experience any of the discrimination in the company (racial, age, gender discrimination)
Herzberg (1966) and Herzberg et al (1959)
Adequate material, resource and/or equipment to do job well, company hardware and software system can support in work
Herzberg (1966) and Herzberg et al (1959)
JOB SATISFACTION OF EMPLOYEES IN SALES
Introduction to Garment 10 Corporation, JSC
Garment 10 Corporation - Joint Stock Company (Garco 10), a proud member of the Vietnam National Textile and Garment Group (VINATEX), is one of the pioneering firms in Vietnam's garment industry With over 70 years of development, Garco 10 has established itself as a prominent and robust enterprise, specializing in the manufacturing and sale of high-quality garments for men, women, and children in both domestic and international markets The company's products are renowned for their durability and diverse color options, solidifying its reputation in the industry.
Garment 10 Corporation Joint Stock Company
(1)Garment manufacturing and exporting (2)Vocational College
(3)Hospitality (4)Housing and accommodation (5)Fashion retailer
(6)Supermarket chain Joint stock company 765A Nguyen Van Linh Street, Sai Dong ward, Long Bien district, Hanoi, Vietnam
(844) 38276 925 ctmay10@garco10.com.vn www.garco10.vn
3.1.1 Vision, missions and values of Garment 10 Corporation, JSC
Garment 10 Corporation vision is to become a multinational corporation with an exemplary organizational structure culture; primarily focusing on fashion design, apparels manufacturing, and providing complex supply chain management for brands and retailers all over the world
Garment 10 Corporation missions are to become a fashion forward company as well as a successful global brand; and to provide unique, friendly and high- quality garments Garco 10 aims to continuously preserve and popularize the Vietnamese traditional costumes, as well as meet the needs of their stakeholders and further increase our contribution towards the community and society.
Garco10 upholds five core values that guide their operations: Quality, which is fundamental to the company's success; People, as they prioritize the well-being and development of their workforce; and Expertise, through comprehensive training that empowers employees to master all processes.
Productivity – operate a highly effective, lean and fast moving enterprise, and Commitment- dedication to the prosperity of their customers, partners and shareholders
3.1.2 Formation and development of Garment 10 Corporation, JSC
Founded in 1946 in Viet Bac, Northern Vietnam, Garco10 began by producing military uniforms for the Army of Vietnam to aid in the resistance against French colonialism Several factories, including CK1, AK1, and BK1, were consolidated into the Hoang Van Thu factory, which was later renamed X1 In 1952, X1 was rebranded as X10 and relocated to Tay Coc in Phu Tho, eventually evolving into the Garment 10 Joint Stock Company we know today.
Garco10 has evolved over 70 years from a basic bamboo factory to a prominent company employing over 15,000 workers, with 22 factories and operations across six business sectors This remarkable growth highlights the company's significant development in the garment industry.
10 Corporation can be briefed into five below stages:
Stage 1 (from 1946 to 1960): Rising up during the resistance war against the French colonialism
In 1946, following the August 1945 Revolution and in response to Ho Chi Minh's call for national resistance, several ammunition factories were established in the Viet Bac war zone to produce uniforms and essential supplies for the Vietnam Army Six years later, these factories were consolidated into a single entity known as Factory 10 By 1954, after the conclusion of the resistance war, Factory 10 was relocated to Hoi Xa in Hanoi, now part of Sai Dong, Long Bien This strategic location served as a gateway to Hanoi, benefiting from convenient access to the expressway, railway, and airport, while a 20-hectare vacant land provided ample space for multiple factories without disrupting the local farming community.
On July 26, 1956, Factory 40 was merged with Factory 10, which subsequently split to create Factory 20 Factory 20 specialized in producing clothing for senior Army officials in Hanoi, while Factory 10 focused on manufacturing uniforms for lieutenants.
At that time, Factory 10 focused on:
(1) Constructing plant, equipment and machine
(2) Studying experience from other nations, progressing the management system
(4) Taking good care of workers lives
To support the Thuong Lao special campaign, the factory implemented a critical and comprehensive plan, rallying all divisions under the slogan: "All efforts towards production while ensuring worker health." Workers embraced the motto: “Day without hour, week without date, not afraid of dark eyes,” demonstrating their commitment to this essential mission.
Stage 2 (from 1961 to 1975): Pioneer in the formulation of socialism in the North and support battlefield in the South
In 1961, Factory 10 transitioned from government subsidies to independent budgeting under the Ministry of Light Industry, shifting its focus from quantity and delivery for the military to a profit-oriented production model This change led to increased accountability for business performance and detailed financial calculations To adapt, Factory 10 developed its own fabric cutting machines, learned from Chinese firms to design automatic assembly systems and electronic cutters, and improved working conditions through enhanced ventilation, lighting, and safety equipment, all aimed at boosting productivity and product quality.
From 1965 to 1975, Factory 10 independently assessed and priced their products, effectively managing their finances and exceeding state-set goals This strategic approach allowed the factory to enhance production capabilities, focusing efforts on supporting the battlefield in the South to contribute to national unification, despite facing significant risks.
US attack and their planes might bomb the factory anytime, and have to evacuate.
In 1973, after Paris Agreement, US military withdrew, Factory 10 shifted to produce massive number of uniforms for Vietnam army to support national liberation
Stage 3 (from 1976 to 1991): Change to manufacturing for export
After the unification of the country, Factory 10 shifted its production focus from manufacturing uniforms for the Vietnam Army to exporting products, primarily targeting the Soviet Union and Eastern European socialist countries This transition necessitated adherence to more complex and stringent quality standards and manufacturing processes, encompassing meticulous control over product design, color, stitching, and packaging In response to these challenges, Factory 10 implemented several innovative solutions to enhance their production capabilities and meet export requirements.
- Approach to the world market to find potential customers
- Renovate machine and apply modern technology
- Raise responsibility and ability of workers and employees
- Borrow capital from bank and call for investment from customer to facilitate new equipment
To enhance the technical skills of both new and current employees, it is essential to implement specialized training programs Additionally, assigning staff to full-time university courses or remote education opportunities can significantly improve their management capabilities and overall professional development.
From 1975 to 1985, Factory 10 achieved remarkable success by exporting 4 to 5 million shirts annually to socialist countries, averaging a 30% growth each year This impressive performance contributed approximately 5-10% to the national budget annually Additionally, Factory 10 received numerous accolades from agencies and partners for its commitment to quality and timely delivery.
Between 1990 and 1991, the collapse of socialist systems worldwide led to a contraction of export markets in Eastern Europe and the Soviet Union, resulting in production disruptions, material shortages, and unstable employment for workers In response, Factory 10 pivoted to export to capitalist markets, which demanded high standards for product quality, design, and timely delivery To meet these rigorous requirements, the factory modernized its equipment, improved its management systems, and enhanced its workforce capabilities Consequently, they secured contracts with clients from countries such as the Netherlands, South Korea, Japan, Germany, Hong Kong, and Belgium.
Stage 4 (from 1992 to 2004): Comprehensively reform to develop and integratedly head toward global market
Human resource status of Sales Department
Established in 2012, the Sales Department originated from the Planning Department, which primarily managed cut-make-trim orders Over time, the Sales Department was created as a distinct entity to specifically handle Free on Board (FOB) orders.
Each customer brand in Sales department is handled in four processes belongs to four group: Transaction team, Sample team, Purchasing team and
Production/ Export team, with the overall specific obligations and functions below:
- Researching market: analyzing EU, USA, Japan market in terms of market size, preference, macroeconomics factors, and industry factors, especially global retailers characteristics, free trade agreement, price, , …
- Evaluate customer demand, make customer profile, communicate with customers and update customer the order status
- Recording and offering CM/ price by fabric type, garment features, customers, productivity;
- Recording and controlling material price, usage, quality issue
- Making budget plan and costing for each garment styles
- Creating Time and Action Plan of each order, following closely to meet customer requirement on order and ensure factory productivity as well as production continuity.
- Receiving, clarifying and assessing new order requirement, tech pack, size ration and transferring to related department
- Arranging samples and collecting materials for sample making as customer requirement
- Creating Balance of Materials with materials consumption to book materials accordingly
- Following up delivery, shipping terms, unit price, quantity and quality issues, payment with suppliers
- Preparing documents for customs clearance and payment
- Deciding cutting ratio based on actual on hand materials, following up production plan
- Following inspection for new factory assessment or in-line/ final inspection before exporting
- Creating packing list, booking vessel/ flight, and prepare documents (bill, invoice, packing list) for customs clearance/ exporting
- Closing order and reporting the order effectiveness
The Sales Department plays a crucial role in ensuring customer satisfaction while also managing internal operations and maintaining production continuity Acting as a vital link between external clients and internal teams, the department guarantees that orders are processed accurately and on time, thereby enhancing customer satisfaction and ensuring adequate job performance for workers.
Since its establishment, the Sales Department has seen a consistent increase in employee numbers, reflecting the company's growth in revenue, export volume, and customer base However, there has also been a rising trend in voluntary employee departures, with a notable turnover rate of 12.12% recorded in the first quarter of 2020.
Table 3.6: Sales Department human resource status
Average number of employee People 45 48 55 65 66
Number of employee left the department
Number of new employees on board People 6 5 8 17 4
Turnover rate Percentage (%) 4.44 2.08 5.45 10.77 12.12 New employee percentage Percentage (%)
Respondents' profile
This study analyzes the profile of Garco10’s sales staff by examining five key categories: age group, gender, education level, years of experience, and the distance from their homes to the workplace.
Employee’s age are divided into four groups: from 22 to 26 years old, 26 to
A recent survey reveals that the predominant age group in the sales department is 30 to 35 years old, accounting for 40.91% of employees Following closely, those aged 26 to 30 make up 30.30% of the workforce Meanwhile, employees aged 22 to 26 and those over 35 years old represent 12.12% and 16.67%, respectively, of the total employee count.
22-26 years old 26-30 years old 30-35 years old More than 35 years old
Figure 3.6: Age group of Garment 10 Sales department (years old)
In the Garco10 sales department, women make up approximately 74.2% of the workforce, while men represent 25.8% This gender distribution reflects the garment industry's demand for meticulous attention to detail and effective management of daily garment-related tasks, skills in which women often excel.
Figure 3.7: Gender proportion of employees at Garco10 Sales department
In the Garment 10 Sales department, 95.5% of employees hold a university degree, while 4.5% possess a postgraduate qualification This indicates that all staff in the Sales department are well-educated and meet the necessary qualifications for the merchandizer role, which requires at least a college degree.
Figure 3.8: Education level proportion of employees at Garco10 Sales department
A survey of the Sales department at Garco10 reveals that the majority of employees, accounting for 34.85%, possess 5 to 10 years of experience in the garment industry The second largest group consists of staff with less than 3 years of experience, making up 27.27% of the workforce Following this, 22.73% of the sales staff have between 3 to 5 years of experience, while those with over 10 years of experience represent a minimal portion at 15.15%.
The survey results indicate that the Sales Department boasts a highly experienced workforce, with over 70% of employees possessing more than three years of experience, equipping them with the necessary skills and competencies for the merchandiser role.
Figure 3.9: Year of experience of employee in Garco10 sales department
Distance from home to workplace
A recent survey reveals that an overwhelming 95.45% of employees commute between 1-10 km to work, while only 3.03% travel over 20 km The smallest group, comprising just 1.52% of the workforce, lives 10-20 km away from the company Most employees in the Garco10 sales department reside in the Long Bien and Gia Lam areas, benefiting from the proximity to the workplace.
Figure 3.10: Distance from home to workplace of employee in Garco10 sales department
Current situation job satisfaction
The survey assessed employees' perceptions of their jobs, focusing on whether they view their work as important and meaningful It also examined if their roles require diverse knowledge and skills to perform various tasks, present challenges, and offer opportunities for enhancing creativity and capabilities.
A significant 71.21% of employees believe their jobs are important and meaningful, with an average expectation score of 4.29 This need is largely met within their departments, reflected by a satisfaction level of 4.09, where 87.88% of employees expressed satisfaction, 10.61% reported being strongly satisfied, and only 1.52% remained neutral.
A significant 81.82% of employees anticipate their jobs to be challenging enough to utilize their knowledge and skills, with 18.18% expressing a strong expectation for such challenges Additionally, they seek opportunities for professional advancement The overall satisfaction level stands at 4.02, derived from 86.36% of employees reporting satisfaction, 7.58% feeling strongly satisfied, and 6.06% remaining neutral This indicates that the current job conditions relatively align with employee expectations, which average at 4.18.
The role of a merchandizer is crucial as it bridges the gap between internal teams and external clients, translating garment concepts and customer needs into manufacturing orders This position encompasses a range of responsibilities throughout the development process, including sample creation, order confirmation, cost estimation, material procurement, and production management By meticulously overseeing these steps, the merchandizer ensures that customer requirements are fulfilled while maintaining a streamlined and efficient production process.
So to the employee, merchandizer job is regarded to be critical, meaningful and also challenging to optimize their creativity and ability
Figure 3.11: Expectation and satisfaction with the nature of job in Garco10 Sales department
In our survey, we assessed Garco10 staff's expectations and satisfaction regarding job recognition, focusing on their perceptions of how their work is rewarded.
A survey revealed that 68.18% of employees believe their job outcomes are recognized and evaluated accurately by superiors, colleagues, subordinates, and clients, with an average expectation score of 4.32 In terms of satisfaction, 81.82% of respondents expressed satisfaction, while 12.12% felt neutral, and 6.06% reported being strongly satisfied, resulting in a satisfaction level of 3.94 out of 5 This indicates a gap of 0.38 points between expectation and satisfaction levels.
Figure 3.12: Expectation and satisfaction with recognition, appreciation and reward, job objectives and KPI setting of Sales staff in Garco10 Sales department
During in-depth employee interviews, it was revealed that performance evaluations are heavily influenced by team dynamics within specific customer brands Team leaders, members, and customers closely observe individual contributions, while managers and team members from other brands have limited interaction, yet still affect annual appraisals and rewards This leads to a subjective recognition of performance that may not accurately reflect each employee's true contributions.
Staff expressed concerns that the current Key Performance Indicators (KPIs) fail to accurately reflect their job effectiveness, as the outcomes of their manual tasks are difficult to quantify The internal reporting system is not closely aligned with their daily responsibilities and lacks timely updates, resulting in a failure to provide crucial metrics such as cost versus budget, on-time delivery rates, stock levels, and material waste Consequently, these gaps prevent a comprehensive evaluation of job accuracy and timeliness across the department Employees view the existing KPIs as subjective, primarily influenced by fluctuating order revenue and overall profit, without offering detailed insights into individual order effectiveness or their personal performance.
A recent survey revealed that 77.27% of employees feel satisfied with the appreciation and reward system, while only 1.52% expressed dissatisfaction, resulting in an average satisfaction level of 3.76 compared to an expectation level of 4.17 Notably, 83.33% of respondents have expectations regarding these rewards, with 16.67% indicating strong expectations The department offers various rewards, including a year-end bonus known as the 13th month salary, which is determined by individual KPIs, evaluations from direct supervisors, upper management assessments, and overall company performance Additionally, awards such as "Great Staff," "Excellent Staff," and "Professional Staff" provide both financial and non-financial incentives, with selections made through staff voting.
Advancement relates to the change of status or position, meanwhile growth relates to the enhancement in ability, skill and professional
Employees have expressed their expectations for career advancement within the company, with an average expectation score of 4.2—comprised of 77.27% who expect promotions, 21.21% who strongly expect them, and only 1.52% remaining neutral However, their satisfaction regarding these advancement opportunities is notably lower, with a rating of 3.64 Specifically, 65.15% of employees report being satisfied, while 33.33% feel neutral and 1.52% are dissatisfied with the current advancement prospects.
Many respondents expressed concerns about the rarity of promotions and the lack of a clear career path within the company They noted that job positions are not well-defined, lacking specific requirements and competencies that would guide their efforts and contributions For instance, employees with similar skills and facing the same challenges are unsure of the expected performance levels and how their evaluations impact potential promotions This disconnect between employee expectations and satisfaction highlights a significant area for improvement that the firm should address.
Figure 3.13: Expectation and satisfaction with the Advancement and Growth in
Employees have expressed high expectations for training and development opportunities, rating their expectations at 4.2 However, satisfaction with these programs is significantly lower, at 3.45, with 50% of employees feeling satisfied, 45.45% neutral, and 4.55% dissatisfied Notably, 80.30% of employees anticipate further enhancement of their skills through job projects and on-the-job learning provided by the company.
19.70% strongly expect for this factor
Staff members report that training and development courses are infrequent, with on-the-job training being the main source for meeting job requirements They express a desire for more development courses to enhance their skills for both their current roles and future advancement Additionally, they expect to be assigned small projects to gain broader experience and practice, but currently, these opportunities are lacking, resulting in lower satisfaction levels than anticipated.
Supervision, or supervisory leadership style, has a crucial impact on employees work attitude So two below questions were raised to the respondents
Employees expect a balanced delegation of responsibilities, support, and guidance from their direct supervisors, while also having confidence in the leadership team's competencies Their direct supervisors equip them with essential job knowledge and management skills, facilitating adaptation to job requirements and enhancing team performance, ultimately improving overall effectiveness Survey results indicate a close alignment between expectations and satisfaction, with scores of 4.08 and 4.02, respectively Notably, 95.45% of respondents expressed satisfaction, 3.03% reported being strongly satisfied, and only 1.52% felt neutral about their experiences.
The second question explores the expectations and satisfaction levels of employees regarding their leaders, who are viewed as positive role models Employees appreciate continuous feedback, value their opinions, and desire to be treated with trust and respect Overall, this category reflects a satisfactory rating, with an average satisfaction level of 4, compared to an expectation of 4.15.
Figure 3.14: Expectation and satisfaction with Supervision in Garco10 Sales department
Summary of findings
Figure 3.19: Overall expectation of employee in Garco10 Sales department
The survey results indicate that all factors were rated as expected or strongly expected, with scores ranging from 4.11 to 4.28, reflecting only minor differences in the expectations for these factors.
Key factors influencing employee expectations include supervision, job security, working conditions, and opportunities for advancement Additionally, aspects such as the nature of the work, recognition, salary, and interpersonal relationships are also important, albeit with slightly higher expectations It is crucial to address the needs of both groups, as employee expectations range from moderate to strong, highlighting the importance of not overlooking the less emphasized factors while still considering the more prominent ones.
The overall satisfaction level among employees falls within the ranges of "neutral to satisfied" and "satisfied to strongly satisfied," with ratings between 3.55 and 4.12 Factors contributing to the "neutral to satisfied" group include opportunities for advancement and growth, interpersonal relationships, recognition, salary, and working conditions In contrast, the "satisfied to strongly satisfied" group is characterized by high satisfaction in areas such as supervision, the nature of the work, and job security.
Figure 3.20: Overall satisfaction of employee in Garco10 Sales department
The survey results reveal a distinction between two groups concerning the expectation-satisfaction gap: a small gap and a relatively larger gap.
The small gap group, characterized by minimal differences between expectations and satisfaction, encompasses job security, supervision, and the nature of the work itself In the Sales department, the performance of these factors aligns closely with employee expectations.
Figure 3.21: Overall gap between expectation and satisfaction of employee in Garco10
The disparity between expectations and satisfaction is most pronounced in areas such as working conditions, salary, recognition, interpersonal relationships, and opportunities for advancement and growth These critical factors fall within the "Neutral to Satisfied" range on the previously discussed satisfaction scale.
The survey results reveal both the achievements and shortcomings in job satisfaction among staff in Garco10's Sales department, highlighting eight key determinants that influence their overall experience.
Employees express satisfaction with their work due to its meaningful nature and the importance they place on their roles The job demands diverse knowledge and skills to handle various tasks, contributing to mass production Workers can leverage their talents to fulfill garment orders, from understanding customer requirements to actual shipping This challenging environment fosters creativity and offers opportunities for personal and professional growth.
The department fosters a friendly and supportive interpersonal environment, where staff members feel well-treated and enjoy sufficient social interaction Employees appreciate the department's focus on welfare initiatives, including team-building exercises, outdoor activities, and vacation opportunities.
Working condition is safe, convenient, they not observe or experience any of the discrimination in the company in terms of racial, age or gender.
Sales staff feel confident in their job security due to the company's sustainable operations, rooted in a long history of development since 1946 and strong partnerships with customers, suppliers, and garment associations.
Employees express high satisfaction with the support and guidance provided by their supervisors, who are seen as competent leaders and positive role models The leadership team fosters an environment of trust and respect, valuing employee opinions and offering constructive feedback This supportive atmosphere enables employees to learn essential job competencies and management skills from their superiors.
3.5.2 Shortcomings and causes of shortcomings
Employee satisfaction is significantly affected by several key factors, including working conditions, recognition, salary, interpersonal relationships, and opportunities for advancement and growth A growing disparity between employee expectations and actual satisfaction levels can lead to decreased morale and productivity.
Staff dissatisfaction stems from outdated company software that fails to support their work effectively The existing system lacks advanced reporting capabilities, making it difficult for employees to identify problems and summarize information efficiently Consequently, much of the reporting and data collection must be done manually These issues are rooted in both the current system requirements and user practices.
- Material item code are created freely so materials are not well managed
- Material item code are created differently by customer brands so it does not allow combined shipment, material planning and bargaining power
Updating garment styles, BOM, and purchasing orders in the system is not mandatory, which results in a lack of estimated costing This absence of cost data hinders effective order quotations and complicates cost and profit analysis upon order completion.
Material allocation in factories is conducted manually rather than through an automated system, resulting in stock levels being updated only after production This approach leads to inefficient closing steps and inaccuracies in both quantity and cost management.